Cap rates on Walgreens and CVS properties remained flat with
the quarter prior at 6.45 percent and 6.7 percent respectively, but cap rates
on restaurants fell 25 basis points to 7.25 percent. Cap rates on McDonald’s
restaurants in particular fell 20 basis points to 4.8 percent, and cap rates on
Dollar General stores fell 15 basis points, to 8.1 percent.
However, few of those properties are trading in the core
markets. Finding a McDonald’s or a Walgreens for sale in a primary market has
“gotten tougher because there is not a lot of new things coming out of the
ground and partly that’s what pushed down cap rates, as well as [the fact that]
interest rates have gotten so low,” says Jonathan W. Hipp, president and CEO ofCalkain Cos., a Reston, Va.-based brokerage and consulting firm specializing in
the net lease sector.
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