Vacant Eckerd Store Trades for Premium $246 Per SF

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SUGAR HILL, GA-Pecos Management LLC of Atlanta has acquired a vacant 11,336-sf Eckerd drug store site from Suwanee Sun Properties Ltd. of Boca Raton, FL for $2.78 million or about $246 per sf. The per-sf price is believed by area brokers to be one of the highest per-sf price for a retail property this year in Metro Atlanta. The purchase price represents a 7.3% cap rate.

The sale was completed just as Kangaroo Bobs LLC of Kennesaw was subleasing the nine-year-old property for use as a children’s play and party center at 5900 Suwanee Dam Rd., Marcus & Millichap broker Tim Giambrone tells GlobeSt.com. Kangaroo Bobs operates a similar business at 4335 Bells Ferry Rd. in Kennesaw.

Giambrone didn’t disclose terms of the sublease. The property had 12 years remaining on Eckerd’s triple-net lease which also included 2% rent increases every five years, the broker says. The average asking base rent range is $8.79 to $9.47 per sf.

“This property represents an excellent investment” because it is located on a corner lot, across the street from a Publix “in an area with above average demographics and significant population growth of 30% in the last five years,” Giambrone says. “The new tenant simply adds another dimension to the options available to the buyer at the end of the Eckerd’s lease.”