8 Cap Walgreens - Good Sales and Location 3948 State Route 281

HMX Realty Advisors exclusively presents for sale a Walgreens located in Cortland NY at the intersection of Route 281 and Route 222. The property has excellent access and visibility. There are 8.1 years remaining on an absolute triple net lease. The store reports consistent sales and has a low estimated rent to sales ratio of 6.6%. Route 281 is a major retail corridor. The store is open from 8am to 8pm and offers Covid Testing, Photo, Drive Thru, FedEx Onsite and Western Union. This is part of a three property re-priced Walgreens portfolio, and the portfolio flyer is linked. The properties are located in Rochester, Syracuse and Cortland NY.
Area retailers include Grand Union Supermarket, Harbor Freight, and Pet Supplies Plus. Rite Aid is across the intersection in an inferior location. Having both pharmacies operating at this crossroads speaks to the strategic location.
A Walmart Supercenter, Price Chopper and Lowe’s are located south on Route 281 as are many national retailers, auto dealerships and QSRs including McDonalds, KFC and Burger King.
The lease is for 75 years, with termination options starting at year 25 (2/29/2032). The lease is flat with no rent increases which creates significant leasehold value over 75 years. Walgreens can terminate the lease with six months notice after year 25. The lease also contains a percentage rent clause which, while not currently “in the money,” could provide important inflation protection in future years.
Located 1.1 miles from the property is SUNY Cortland, also known as State University of New York at Cortland. It has a 191 acres campus with total undergraduate enrollment of 5,994 and over 1,000 employees as of fall 2022. It specializes in teacher education programs and certification in nearly every subject.
Guthrie Cortland Medical Center is 1.4 miles from the property. It has over 700 employees. It is a 162-bed acute care facility with an attached 80-bed residential care facility. The center’s staff includes 300 providers representing 12 medical fields and 10 specialties.
Major employers in Cortland are Suit-Kote Corporation with 750 employees, Marietta Corporation – 700, and Cortland County Government - over 600, In addition to being the county seat Cortland is known for the manufacture of milling machines, medical instruments, textiles, and electrical components. International exporting is an integral part of many of the corporations in the area.