Drive-Through Absolute NNN
For Sale
Contact for pricing
1634 E HIGHLAND AVE, San Bernardino, CA 92404
Leased-fee Walgreens with drive-thru, corporate guarantee, and absolute NNN structure with zero landlord responsibilities.
Property Size14,418 SF
Price / SF$348.18
Days on Market158
Property Features for 1634 E HIGHLAND AVE
General Information
Standard status
Active
Size
14,418 SF
Total Parking Spaces
74
Property subtype
Retail
Occupancy
100%
Lease Type
NNN
Net Operating Income
$389,028
Building Details
Year Built
2003
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
CBRE - Orange County
Listed By:
Arthur Flores · License #CA 01423821
(949) 725-8625
Source:
Crexi
Added: Apr 10
Changed: Sep 10
Last Checked: Sep 13 at 3:59AM
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 CBRE - Orange County
Investment Insights
Based on property information with market context.
SRS National Net Lease Group presents the leased fee interest in a Walgreens absolute NNN, ground-leased investment property featuring a drive-thru. The lease is corporate guaranteed and structured as absolute NNN with zero landlord responsibilities.
The property is located at 1634 E Highland Ave, San Bernardino, CA 92404. Walgreens has approximately 4 years remaining in the initial lease term, with 7 (5-year) option periods to extend.
The next 10% rental increase for Walgreens is scheduled to take effect in July 2022 at the beginning of the next option period. The offering is priced based off the July 2022 rent.
The property is located at 1634 E Highland Ave, San Bernardino, CA 92404. Walgreens has approximately 4 years remaining in the initial lease term, with 7 (5-year) option periods to extend.
The next 10% rental increase for Walgreens is scheduled to take effect in July 2022 at the beginning of the next option period. The offering is priced based off the July 2022 rent.
Key Highlights
- Leased‑fee Walgreens investment in San Bernardino, CA with drive‑thru
- Absolute NNN ground lease with zero landlord responsibilities
- Corporate‑guaranteed lease with approximately 4 years remaining in the initial term
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
$194,979
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
3.88%
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%
$3,899,580
$3.9M
Cap Rate 7%
$2,785,414
$2.8M
Cap Rate 9%
$2,166,433
$2.2M
Market Conditions
NOI Build-Up for 14,418 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
$297.6K $20.64/SF
− Vacancy
−$19.0K −$1.32/SF
EGI
$278.5K $19.32/SF
− OpEx
−$83.6K −$5.80/SF
NOI
$195.0K $13.52/SF
Area
San Bernardino, CA
Vacancy
6.40%
Lease Rate
$20.64 /SF/Yr
Expense Ratio
30.00%
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%
$3,899,580
Cap Rate 7%
$2,785,414
Cap Rate 9%
$2,166,433
Alternative Uses
Best Use
Retail
$2.79M
$2.44M – $3.25M
NOI $194,979 @ 7.0% cap · market cap 3.88%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.34M
$3.80M – $5.07M
NOI $303,955 @ 7.0% cap · market cap 6.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
910
Businesses Nearby
353k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 47%
Shops & Services 24%
Groceries 23%
Home Improvements & Furnishings 4%
Stater Bros. Markets
Groceries
44,306 visits/mo
0.2 miles
McDonald's
Dining
41,389 visits/mo
0.1 miles
Cardenas Market
Groceries
38,502 visits/mo
0.5 miles
dd's DISCOUNTS
Shops & Services
26,485 visits/mo
0.1 miles
Bank of America
Shops & Services
21,954 visits/mo
0.4 miles
Demographics for 92404, CA
64,270
Population
19,403
Households
3.3
Avg Household Size
31
Median Age
10%
College-Educated
72%
High-School Grad
31.6 sq mi
ZIP Area
2,034
Density / Sq Mi
$66,173
Median Household Income
$36,237
Median Earnings
$1,386
Median Rent
$383,700
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Leased-fee Walgreens with drive-thru, corporate guarantee, and absolute NNN structure with zero landlord responsibilities.
Where is this nnn property located?
The property is located at 1634 E HIGHLAND AVE San Bernardino, CA.
What is the asking price?
The asking price for this property is $5,020,000.
What are key features of this property?
This property features: Leased‑fee Walgreens investment in San Bernardino, CA with drive‑thru; Absolute NNN ground lease with zero landlord responsibilities; Corporate‑guaranteed lease with approximately 4 years remaining in the initial term
