Single-Tenant Walgreens
For Sale
Contact for pricing
7039 Mechanicsville Turnpike, Mechanicsville, VA 23111
Absolute triple-net leased Walgreens on a signalized corner with prominent frontage and dual access points.
Property Size14,470 SF
Price / SF$436.15
Days on Market96
Property Features for 7039 Mechanicsville Turnpike
General Information
Standard status
Active
Size
14,470 SF
Property subtype
Retail
Lease Type
Absolute Net
Investment Type
Net Lease
Net Operating Income
$568,000
Additional Details
Highway Access
Yes
Building Details
Year Built
2011
Buildings
1
Stories
1
Units
1
Tenancy
Single
Listing Agency:
Horvath & Tremblay Alexandria
Listed By:
Kyle Danielson · License #9538605
Source:
Crexi
Added: Jun 16
Changed: Sep 12
Last Checked: Sep 19 at 9:18AM
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 Horvath & Tremblay Alexandria
Investment Insights
Based on property information with market context.
This is a single-tenant Walgreens pharmacy offered for sale on an absolute triple-net basis. The property has been occupied by Walgreens since construction in 2011 and features a long remaining lease term of 10+ years, along with ten (10) 5-year renewal options. As an absolute NNN structure, the lease is designed to shift responsibility for ongoing property expenses to the tenant.
The site is located on a highly visible corner at the signalized intersection of Lee Davis Road and Mechanicsville Turnpike (US Route 360). The property benefits from prominent frontage and dual access points, supporting consumer accessibility and exposure throughout the Mechanicsville trade area. It is positioned as an outparcel to Hanover Village, a regional shopping destination anchored by Aldi and Tractor Supply Co, and the property sits immediately adjacent to Publix. The broader corridor includes a concentration of national retailers, restaurants, service businesses, and nearby schools, with surrounding residential development contributing to consistent local activity.
For buyers seeking an income-oriented, single-tenant retail asset with a long-dated absolute NNN lease, this Walgreens offers a durable operating setup at a signalized intersection within a retail-focused shopping center environment. Tenant continuity is supported by Walgreens’ established presence since 2011 and the available renewal options, while regional connectivity is enhanced by convenient access to Interstate 295 (approximately 1.25 miles away) and proximity to Downtown Richmond (about 8.5 miles southwest).
The site is located on a highly visible corner at the signalized intersection of Lee Davis Road and Mechanicsville Turnpike (US Route 360). The property benefits from prominent frontage and dual access points, supporting consumer accessibility and exposure throughout the Mechanicsville trade area. It is positioned as an outparcel to Hanover Village, a regional shopping destination anchored by Aldi and Tractor Supply Co, and the property sits immediately adjacent to Publix. The broader corridor includes a concentration of national retailers, restaurants, service businesses, and nearby schools, with surrounding residential development contributing to consistent local activity.
For buyers seeking an income-oriented, single-tenant retail asset with a long-dated absolute NNN lease, this Walgreens offers a durable operating setup at a signalized intersection within a retail-focused shopping center environment. Tenant continuity is supported by Walgreens’ established presence since 2011 and the available renewal options, while regional connectivity is enhanced by convenient access to Interstate 295 (approximately 1.25 miles away) and proximity to Downtown Richmond (about 8.5 miles southwest).
Key Highlights
- Single‑tenant Absolute NNN leased Walgreens built in 2011
- Tenant has been in place since 2011 with 10+ years remaining on the lease and ten (10), 5‑year renewal options
- Signalized corner location at the intersection of Lee Davis Road and Mechanicsville Turnpike (US Route 360)
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
$186,945
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
2.96%
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%
$3,738,900
$3.7M
Cap Rate 7%
$2,670,643
$2.7M
Cap Rate 9%
$2,077,167
$2.1M
Market Conditions
NOI Build-Up for 14,470 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
$260.5K $18.00/SF
− Vacancy
−$11.2K −$0.77/SF
EGI
$249.3K $17.23/SF
− OpEx
−$62.3K −$4.31/SF
NOI
$186.9K $12.92/SF
Area
Hanover County, VA
Vacancy
4.30%
Lease Rate
$18.00 /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%
$3,738,900
Cap Rate 7%
$2,670,643
Cap Rate 9%
$2,077,167
Alternative Uses
Best Use
Specialty Retail
$2.67M
$2.34M – $3.12M
NOI $186,945 @ 7.0% cap · market cap 2.96%
Second Best
Retail
$2.13M
$1.86M – $2.48M
NOI $148,896 @ 7.0% cap · market cap 2.36%
Theoretical Best
Office A
$4.36M
$3.81M – $5.08M
NOI $304,987 @ 7.0% cap · market cap 4.83%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
563
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 23111, VA
38,151
Population
15,773
Households
2.4
Avg Household Size
43
Median Age
34%
College-Educated
95%
High-School Grad
77.2 sq mi
ZIP Area
494
Density / Sq Mi
$96,736
Median Household Income
$52,106
Median Earnings
$1,558
Median Rent
$324,600
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in South region
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Frequently Asked Questions
What type of property is this?
Drug store - Absolute triple-net leased Walgreens on a signalized corner with prominent frontage and dual access points.
Where is this drug store located?
The property is located at 7039 Mechanicsville Turnpike Mechanicsville, VA.
What is the asking price?
The asking price for this property is $6,311,111.
What are key features of this property?
This property features: Single‑tenant Absolute NNN leased Walgreens built in 2011; Tenant has been in place since 2011 with 10+ years remaining on the lease and ten (10), 5‑year renewal options; Signalized corner location at the intersection of Lee Davis Road and Mechanicsville Turnpike (US Route 360)
