Walgreens NNN Investment
For Sale
$7,980,000
1086 West Arrow Highway, San Dimas, CA 91773
Freestanding Walgreens with drive-thru, long-term lease, and high visibility.
Property Size15,160 SF
Price / SF$526.39
Days on Market260
Property Features for 1086 West Arrow Highway
General Information
Standard status
Active
Size
15,160 SF
Property subtype
Retail
Building Details
Building Size
15,160 SF
Year Built
2001
Listing Agency:
NAI Capital - Orange County
(714) 349-3547
Listed By:
Steve Liu · License #CalDRE #01323150
(714) 349-3547
Source:
Naiglobal
Added: Nov 21, 2025
Changed: Aug 8
Last Checked: Aug 8 at 12:10PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of NAI Capital - Orange County
Investment Insights
Based on property information with market context.
This freestanding, single-tenant property is leased to Walgreens and features an absolute NNN lease structure. The property has been operational as a Walgreens location for nearly 30 years and includes a drive-thru pharmacy. The building, constructed in 2001, encompasses 15,160 square feet and is situated on a 2.04-acre lot. Located at the southeast corner of Arrow Highway and Lone Hill Avenue, the site benefits from high traffic volume, with over 54,000 cars per day. The property shares a parking lot with the Fitness Plaza, a 20,000 square foot strip center, and is across the street from the San Dimas Plaza, a 200,000 square foot community center anchored by Smart & Final Extra, Harbor Freight, and TJ Maxx. The location offers convenient access to State Route 57 via the West Arrow Highway exit. The property is located in an affluent neighborhood with high average household incomes. The location also offers close proximity to other major retailers such as Walmart, Big-5, Costco, Target, Trader Joe’s, Home Depot, Lowe’s, Boot Barn, and Planet Fitness. Easy access to 57, 10 & 210 Freeways. The property is located in San Dimas, which offers industrial, commercial, and residential living. New freeways will benefit the City since it is in a fortunate position to take advantage of this easy access to markets.
Key Highlights
- Absolute NNN lease with zero landlord responsibilities, ideal for passive investors.
- Walgreens is the tenant, a national credit corporate guarantor (NASDAQ: WBA).
- Almost 30‑year operating history at this location (since 1996).
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$359,367
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.50%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$7,187,340
$7.2M
Cap Rate 7%
$5,133,814
$5.1M
Cap Rate 9%
$3,992,967
$4.0M
Market Conditions
NOI Build-Up for 15,160 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$513.0K $33.84/SF
− Vacancy
−$33.9K −$2.23/SF
EGI
$479.2K $31.61/SF
− OpEx
−$119.8K −$7.90/SF
NOI
$359.4K $23.70/SF
Area
Los Angeles County, CA
Vacancy
6.60%
Lease Rate
$33.84 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$7,187,340
Cap Rate 7%
$5,133,814
Cap Rate 9%
$3,992,967
Alternative Uses
Best Use
Specialty Retail
$5.13M
$4.49M – $5.99M
NOI $359,367 @ 7.0% cap · market cap 4.50%
Second Best
Retail
$4.79M
$4.19M – $5.59M
NOI $335,409 @ 7.0% cap · market cap 4.20%
Theoretical Best
Office A
$8.12M
$7.10M – $9.47M
NOI $568,162 @ 7.0% cap · market cap 7.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
974
Businesses Nearby
528k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 26%
Superstores 25%
Shops & Services 19%
Apparel 16%
Target
Superstores
129,805 visits/mo
0.5 miles
T.J. Maxx
Apparel
51,006 visits/mo
0.4 miles
Stater Bros. Markets
Groceries
34,149 visits/mo
0.3 miles
Starbucks
Dining
28,355 visits/mo
0.3 miles
Smart & Final
Groceries
27,900 visits/mo
0.3 miles
Demographics for 91773, CA
34,592
Population
12,363
Households
2.8
Avg Household Size
44
Median Age
40%
College-Educated
93%
High-School Grad
15.0 sq mi
ZIP Area
2,306
Density / Sq Mi
$105,926
Median Household Income
$51,673
Median Earnings
$2,232
Median Rent
$754,700
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- San Dimas Pharmacy — 1330 W Covina Blvd # 100, San Dimas, CA 91773
- Advanced Infusion — 466 W Arrow Hwy, San Dimas, CA 91773
- Stephen S. Lau, PharmD — 1330 W Covina Blvd, San Dimas, CA 91773
- Miracle Glide & More — 1245 W Cienega Ave #44, San Dimas, CA 91773
- Shih Ping Chen — 1330 W Covina Blvd # 100, San Dimas, CA 917733200
Frequently Asked Questions
What type of property is this?
Drug store - Freestanding Walgreens with drive-thru, long-term lease, and high visibility.
Where is this drug store located?
The property is located at 1086 West Arrow Highway San Dimas, CA.
What is the asking price?
The asking price for this property is $7,980,000.
What are key features of this property?
This property features: Absolute NNN lease with zero landlord responsibilities, ideal for passive investors.; Walgreens is the tenant, a national credit corporate guarantor (NASDAQ: WBA).; Almost 30‑year operating history at this location (since 1996).
