| Purchase Price | $4,180,000 |
|---|---|
| Annual Rental Income | $334,000 |
| Cap Rate | 7.99% |
| Lease Term | 14 Years |
| City | Surprise |
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Walgreens – Surprise, AZ (Phoenix MSA)
This Walgreens Pharmacy located in Surprise, Arizona represents a premier single-tenant net lease investment opportunity. Backed by Walgreens Boots Alliance, a Fortune 500 and investment-grade company, this property features an absolute triple-net (NNN) lease that offers truly passive income with no landlord responsibilities. Strategically positioned within the fast-growing Phoenix MSA, this property is located in one of Arizona’s most dynamic suburban markets, characterized by sustained population growth, expanding healthcare needs, and robust retail development.
Surprise, AZ has emerged as a critical node in the northwestern expansion of Greater Phoenix, benefitting from its proximity to Sun City West, major thoroughfares, and master-planned residential communities. Walgreens’ continued presence in this location is driven by strong demographic demand, healthcare infrastructure, and the city’s appeal to both retirees and young families. This combination of tenant quality, long-term lease security, and exceptional location fundamentals creates a compelling investment offering that appeals to institutional buyers, 1031 exchange investors, family offices, and passive income-focused individuals.
Tenant Overview – Walgreens Boots Alliance
Walgreens Boots Alliance (NASDAQ: WBA) is one of the most established pharmacy and retail healthcare companies in the United States. With more than 8,000 locations nationwide, Walgreens serves millions of Americans with essential healthcare access, offering prescription fulfillment, vaccinations, over-the-counter medication, wellness products, and an expanding suite of clinical services. Walgreens’ longevity and nationwide presence are built upon over a century of consistent retail pharmacy operations.
Over the past decade, Walgreens has shifted toward an integrated healthcare delivery model. This includes its large-scale partnership with VillageMD to co-locate full-service primary care clinics inside hundreds of Walgreens stores across the country. In addition, Walgreens has invested heavily in digital infrastructure, telemedicine, automated prescription fulfillment, and last-mile delivery, helping the company evolve into a hybrid provider of in-person and digital healthcare services.
As a tenant, Walgreens is widely regarded for its credit strength, operational consistency, and lease performance. Walgreens has one of the highest site retention rates in the retail net lease sector, rarely closing locations once established, especially in areas with dense population growth or limited direct pharmacy competition. These factors contribute to Walgreens’ enduring appeal among commercial real estate investors seeking long-term, income-generating properties with reliable tenants and minimal management risk.
Lease Structure – Absolute Triple-Net (NNN)
The lease structure for this Walgreens property in Surprise, AZ is an absolute triple-net lease (NNN), which is considered the gold standard among net lease investments. Under this structure, Walgreens is responsible for 100 percent of operating expenses, including real estate taxes, insurance, maintenance, roof and structure, and any capital improvements required during the lease term. There are no landlord obligations of any kind, making this investment truly passive.
Key lease features include:
The lease provides consistent, contractual income, backed by a publicly traded, investment-grade tenant, and requires no effort or intervention by the owner throughout the lease term.
Surprise, AZ Market Overview – Phoenix Metropolitan Area
Surprise is a rapidly growing city located in Maricopa County, approximately 20 miles northwest of downtown Phoenix. With a population that has more than doubled over the past two decades, Surprise has transitioned from a quiet retirement community into one of the most vibrant suburban markets in Arizona. Today, the city is home to over 150,000 residents and continues to see large-scale residential development, supported by both affordable land and infrastructure expansion.
The city benefits from its proximity to the 303 Loop, US-60, and other major highways connecting it to Phoenix, Glendale, Peoria, and Scottsdale. Surprise serves as a major residential hub for families, retirees, and healthcare workers. Its balanced demographic mix—ranging from Sun City retirees to first-time homeowners—creates sustained demand for essential services like healthcare, pharmacy, grocery, and financial institutions.
The Phoenix MSA remains one of the strongest economic and demographic performers in the country. With no state income tax, a low cost of living, and favorable business climate, the region continues to attract companies in tech, logistics, finance, manufacturing, and healthcare. These job drivers, in turn, fuel long-term housing demand, public infrastructure investment, and ongoing retail expansion in cities like Surprise.
Surprise’s growth is anchored by several long-term trends:
As Surprise continues to expand, Walgreens is perfectly positioned to serve the community’s growing healthcare needs, reinforcing the location’s long-term value as a net lease asset.
Demographics and Consumer Demand
The surrounding trade area for this Walgreens store in Surprise is characterized by robust demographics and expanding consumer needs. The location captures daily traffic from commuters, retirees, and families living in the numerous nearby residential subdivisions.
Demographic highlights within a 5-mile radius include:
These demographics create a steady, resilient customer base for Walgreens and ensure recurring revenue through prescription volume, front-end retail sales, and healthcare services.
Site Features and Retail Corridor Positioning
The property is ideally positioned along a high-traffic commercial corridor in Surprise with direct access to residential neighborhoods and commuter routes. Walgreens benefits from strong visibility, monument signage, and easy access with multiple curb cuts and a signalized intersection nearby.
Site features include:
This combination of location, access, and traffic ensures consistent footfall and site viability, with Walgreens serving as a key destination for both urgent and recurring health-related visits.
Tenant Credit and Financial Profile – Walgreens Boots Alliance
Walgreens Boots Alliance is a publicly traded company with a long-established track record of financial strength, operational continuity, and lease stability. The tenant carries an investment-grade credit rating and has shown ongoing commitment to its retail footprint, especially in growth markets.
Key financial data:
Investors seeking credit-backed income and long-term stability will appreciate Walgreens’ conservative balance sheet, consistent store-level profitability, and resilience across economic cycles. The healthcare and pharmacy sector continues to demonstrate exceptional performance, especially during downturns, due to the essential nature of the services provided.
Investment Highlights
Conclusion
This Walgreens Pharmacy in Surprise, Arizona offers investors the rare opportunity to acquire a high-credit, passive net lease investment in one of the most promising suburban growth corridors of the Phoenix MSA. With a long-term, absolute NNN lease structure, investment-grade tenant backing, and location in a fast-developing area, the asset delivers all the core fundamentals of a secure, long-term hold strategy.
Whether you are a seasoned investor seeking a dependable addition to a net lease portfolio or a 1031 exchange buyer looking for a turnkey, income-producing replacement asset, this Walgreens in Surprise combines quality real estate, tenant strength, and regional growth in a truly hands-off offering.