Walgreens NNN Investment
For Sale
Contact for pricing
10870 Overseas Hwy, Marathon, FL 33050
Absolute NNN leased Walgreens in Marathon, Florida with zero landlord responsibilities.
Property Size16,904 SF
Price / SF$453.74
Days on Market629
Property Features for 10870 Overseas Hwy
General Information
Standard status
Active
Size
16,904 SF
Property subtype
Retail
Zoning
MU
Building Details
Year Built
1996
Listing Agency:
SRS Real Estate Partners Tampa
(480) 221-4221
Listed By:
Patrick Nutt · License #BK3120739
Source:
Crexi
Added: Nov 20, 2024
Changed: Aug 11
Last Checked: Aug 11 at 10:43AM
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 SRS Real Estate Partners Tampa
Investment Insights
Based on property information with market context.
This is an opportunity to acquire a fee simple interest in an absolute NNN leased Walgreens investment property in Marathon, Florida. Walgreens recently signed a new 15-year lease with four 5-year options to extend, demonstrating commitment to the location. The lease includes 5% rental increases every 5 years throughout the initial term and at the beginning of each option period. The lease is absolute NNN with zero landlord responsibilities. Walgreens operates nearly 9,000 retail locations across the U.S. and Puerto Rico, serving nearly 9 million customers and patients daily. The property is located at the signalized corner of Overseas Hwy and 109th St Gulf, with a combined traffic count of 31,000 vehicles per day. It is situated in a dense retail corridor near national tenants, including Bealls, Sherwin-Williams, Dunkin’, Circle K, Tire Kingdom, Hampton Inn, and Advance Auto Parts. The asset benefits from proximity to Florida Keys Marathon Airport, increasing consumer traffic. The property features visibility via street frontage and a pylon sign. The 5-mile trade area is supported by over 10,000 residents and 6,000 employees. Residents within a 1-mile radius have an average household income of $133,248. The property size is 16,904 square feet.
Key Highlights
- Absolute NNN lease with zero landlord responsibilities, providing a management‑free investment.
- Brand new 15‑year lease with Walgreens, Inc., with 4 (5‑year) options to extend, indicating long‑term commitment.
- Located at a signalized, hard corner intersection with high traffic volume (31,000 VPD).
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
$261,522
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
3.41%
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%
$5,230,440
$5.2M
Cap Rate 7%
$3,736,029
$3.7M
Cap Rate 9%
$2,905,800
$2.9M
Market Conditions
NOI Build-Up for 16,904 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
$365.1K $21.60/SF
− Vacancy
−$16.4K −$0.97/SF
EGI
$348.7K $20.63/SF
− OpEx
−$87.2K −$5.16/SF
NOI
$261.5K $15.47/SF
Area
Monroe County, FL
Vacancy
4.50%
Lease Rate
$21.60 /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%
$5,230,440
Cap Rate 7%
$3,736,029
Cap Rate 9%
$2,905,800
Alternative Uses
Best Use
Specialty Retail
$3.74M
$3.27M – $4.36M
NOI $261,522 @ 7.0% cap · market cap 3.41%
Second Best
Retail
$3.28M
$2.87M – $3.82M
NOI $229,263 @ 7.0% cap · market cap 2.99%
Theoretical Best
Office A
$6.80M
$5.95M – $7.93M
NOI $475,963 @ 7.0% cap · market cap 6.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
547
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 33050, FL
10,479
Population
7,314
Households
1.4
Avg Household Size
50
Median Age
34%
College-Educated
90%
High-School Grad
9.1 sq mi
ZIP Area
1,152
Density / Sq Mi
$83,243
Median Household Income
$40,006
Median Earnings
$1,611
Median Rent
$705,600
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Walgreens Pharmacy — 10870 Overseas Hwy, Marathon, FL 33050
- Walgreens — 10980 3rd Avenue Gulf, Marathon, FL 33050
- Jerry W. Kuntz, RPh — 10870 Overseas Hwy, Marathon, FL 33050
- Laura I. Diaz-Jane, PharmD — 10870 Overseas Hwy, Marathon, FL 33050
- Kendahl Burnett — 10870 Overseas Hwy, Marathon, FL 33050
Frequently Asked Questions
What type of property is this?
Drug store - Absolute NNN leased Walgreens in Marathon, Florida with zero landlord responsibilities.
Where is this drug store located?
The property is located at 10870 Overseas Hwy Marathon, FL.
What is the asking price?
The asking price for this property is $7,670,000.
What are key features of this property?
This property features: Absolute NNN lease with zero landlord responsibilities, providing a management‑free investment.; Brand new 15‑year lease with Walgreens, Inc., with 4 (5‑year) options to extend, indicating long‑term commitment.; Located at a **signalized, hard corner intersection with high traffic volume (31,000 VPD).**
