Freestanding Net-Leased Pharmacy
For Sale
Contact for pricing
837 West Arrow Highway, Covina, CA 91722
Freestanding flex R&D property in a single-tenant net lease, supported by ample parking and freeway access.
Property Size9,600 SF
Lot Size0.77 Acres
Price / SF$389.38
Days on Market104
Property Features for 837 West Arrow Highway
General Information
Standard status
Active
Size
9,600 SF
Total Parking Spaces
24
Lot size
0.77 Acres
Property subtype
Retail, Industrial
Zoning
CM
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$233,626
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Business Included
Yes
Building Details
Year Built
1982
Year Renovated
2012
Buildings
1
Tenancy
Single
Listing Agency:
Marcus & Millichap - Los Angeles
Listed By:
Ara Rostamian · License #CA 01814678
(213) 943-1781
Source:
Crexi
Added: Jun 11
Changed: Sep 18
Last Checked: Sep 21 at 7:26AM
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 Marcus & Millichap - Los Angeles
Investment Insights
Based on property information with market context.
Offered for sale is a single-tenant, net-leased Polaris Pharmacy property featuring a freestanding ±9,600-square-foot flex R&D building on approximately 10.77 acres. The facility is configured to be functional and adaptable, with a layout that can support a range of commercial applications. The net lease is currently in place with Polaris Pharmacy Services, and the lease includes approximately two years of remaining term. Rental payments also include 4% annual increases, aligning lease economics with periodic growth.
The property is located at 837 West Arrow Highway in Covina, California, positioned along the Arrow Highway corridor in the San Gabriel Valley. Tenant and visitor access is supported by 24 surface parking spaces. Regional connectivity is aided by convenient access to I-10, SR-57, and I-210, supporting distribution and operational reach across Los Angeles County and the Inland Empire.
For buyers and operators seeking a healthcare-aligned real estate profile, the property’s existing pharmacy tenancy and flexible-use building configuration may fit healthcare, laboratory, office, flex industrial, and specialty commercial operations, subject to applicable requirements. The combination of a single-tenant net lease, a freestanding flex R&D structure, and on-site parking can appeal to investors looking for straightforward operational control within a long-term care and specialty pharmacy framework.
The property is located at 837 West Arrow Highway in Covina, California, positioned along the Arrow Highway corridor in the San Gabriel Valley. Tenant and visitor access is supported by 24 surface parking spaces. Regional connectivity is aided by convenient access to I-10, SR-57, and I-210, supporting distribution and operational reach across Los Angeles County and the Inland Empire.
For buyers and operators seeking a healthcare-aligned real estate profile, the property’s existing pharmacy tenancy and flexible-use building configuration may fit healthcare, laboratory, office, flex industrial, and specialty commercial operations, subject to applicable requirements. The combination of a single-tenant net lease, a freestanding flex R&D structure, and on-site parking can appeal to investors looking for straightforward operational control within a long-term care and specialty pharmacy framework.
Key Highlights
- Single‑tenant, net‑leased Polaris Pharmacy property at 837 W Arrow Highway in Glendora, CA
- Freestanding ±19,600 SF flex R&D building on approx. 0.77 acres; built in 1982
- Lease to Polaris Pharmacy Services with approx. two years remaining term and 4% annual rental increases
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
$227,567
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
6.09%
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%
$4,551,340
$4.6M
Cap Rate 7%
$3,250,957
$3.3M
Cap Rate 9%
$2,528,522
$2.5M
Market Conditions
NOI Build-Up for 9,600 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
$324.9K $33.84/SF
− Vacancy
−$21.4K −$2.23/SF
EGI
$303.4K $31.61/SF
− OpEx
−$75.9K −$7.90/SF
NOI
$227.6K $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%
$4,551,340
Cap Rate 7%
$3,250,957
Cap Rate 9%
$2,528,522
Alternative Uses
Best Use
Specialty Retail
$3.25M
$2.84M – $3.79M
NOI $227,567 @ 7.0% cap · market cap 6.09%
Second Best
Retail
$3.03M
$2.65M – $3.54M
NOI $212,396 @ 7.0% cap · market cap 5.68%
Theoretical Best
Office A
$5.14M
$4.50M – $6.00M
NOI $359,786 @ 7.0% cap · market cap 9.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
Turnkey business
Opportunity
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
757
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 91722, CA
36,111
Population
10,340
Households
3.5
Avg Household Size
38
Median Age
23%
College-Educated
82%
High-School Grad
4.1 sq mi
ZIP Area
8,808
Density / Sq Mi
$98,033
Median Household Income
$39,738
Median Earnings
$2,039
Median Rent
$626,100
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 Industrial in West region
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- Polaris Pharmacy Services LTC — 760 Arrow Grand Cir, Covina, CA 91722
Frequently Asked Questions
What type of property is this?
Drug store - Freestanding flex R&D property in a single-tenant net lease, supported by ample parking and freeway access.
Where is this drug store located?
The property is located at 837 West Arrow Highway Covina, CA.
What is the asking price?
The asking price for this property is $3,738,010.
What are key features of this property?
This property features: Single‑tenant, net‑leased Polaris Pharmacy property at 837 W Arrow Highway in Glendora, CA; Freestanding ±19,600 SF flex R&D building on approx. 0.77 acres; built in 1982; Lease to Polaris Pharmacy Services with approx. two years remaining term and 4% annual rental increases
