| Purchase Price | $4,450,000 |
|---|---|
| Annual Rental Income | $336,000 |
| Cap Rate | 7.55% |
| Lease Term | 13 Years |
| City | Kingsport |
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Walgreens – Kingsport, TN
This Walgreens property in Kingsport, Tennessee offers a prime opportunity to acquire a single-tenant, net lease investment backed by Walgreens Boots Alliance, a Fortune 500 company and one of the largest pharmacy retailers in the United States. With a long-term absolute triple-net (NNN) lease in place, this property delivers passive, stable income with zero landlord responsibilities. Located in a high-traffic retail corridor within a strong East Tennessee market, this asset is ideal for investors seeking a reliable, recession-resistant income stream supported by corporate credit.
Tenant Overview – Walgreens Boots Alliance
Walgreens, a subsidiary of Walgreens Boots Alliance (NASDAQ: WBA), operates more than 8,000 locations across the United States. It is one of the most well-known and trusted names in retail pharmacy, offering prescription medications, health and wellness products, immunizations, over-the-counter goods, and convenience items. Walgreens stores serve as critical community healthcare access points and provide high-frequency, essential services that support long-term customer retention and consistent in-store traffic.
As part of its strategy, Walgreens continues to integrate more health-focused offerings, including partnerships with VillageMD for in-store primary care clinics, and digital pharmacy and telehealth services. This diversification positions Walgreens for long-term success in evolving retail and healthcare environments.
Lease Structure – Absolute Triple-Net
The Kingsport Walgreens property is secured by an absolute triple-net lease, with the tenant responsible for all expenses, including real estate taxes, insurance, common area maintenance, and capital repairs. This lease structure ensures:
This property is ideally suited for 1031 exchange investors, family offices, and passive income-focused buyers looking for stable returns and reliable performance from a nationally recognized tenant.
Kingsport Market Overview – Tri-Cities Region of East Tennessee
Kingsport is a key economic and residential hub in northeastern Tennessee, forming part of the Tri-Cities area alongside Johnson City and Bristol. The region benefits from a diversified economy supported by manufacturing, healthcare, education, and logistics. Kingsport is home to Eastman Chemical Company, one of the largest employers in the state, as well as a network of regional hospitals and medical providers that serve a broad multi-county area.
Kingsport’s strong transportation infrastructure, workforce availability, and relatively low cost of living continue to attract new residents and businesses. Located along Interstate 26 and U.S. Route 11W, the city enjoys connectivity to surrounding rural communities, providing steady consumer traffic and a loyal retail base.
Demographic and Economic Strength
Kingsport and the surrounding region offer strong market fundamentals that support a Walgreens location:
With an aging population and consistent demand for prescription and healthcare services, Walgreens serves a vital role in the community. Its store format, drive-thru access, and national brand strength position it well for long-term operational success in markets like Kingsport.
Retail Corridor and Site Attributes
The Walgreens property is located along a well-established retail and commuter corridor in Kingsport, benefiting from high visibility, strong signage, and easy access. It is surrounded by residential neighborhoods, schools, medical clinics, grocery stores, and complementary national tenants—creating a consistent flow of foot traffic and customer volume.
Site advantages include:
This location functions as both a convenience destination and a healthcare provider, reinforcing its importance to the surrounding community and further securing its value as a net lease investment.
Tenant Credit Profile
Walgreens Boots Alliance is a publicly traded company with a long track record of financial performance and lease reliability. With annual revenues exceeding $130 billion and a consistent presence in both urban and suburban markets, Walgreens remains one of the most secure tenants in the net lease space.
Key credit and investment highlights include:
Investment Highlights
Conclusion
The Walgreens Pharmacy in Kingsport, TN presents a high-quality, low-risk net lease investment opportunity anchored by one of the nation’s leading pharmacy chains. With an absolute NNN lease, investment-grade corporate guarantee, and location in a strong healthcare-driven market, this asset offers secure, passive cash flow and long-term real estate value. Investors seeking stability, zero management obligations, and essential-service tenancy will find this Walgreens property a compelling addition to any net lease portfolio.