| Purchase Price | $3,920,000 |
|---|---|
| Annual Rental Income | $313,920 |
| Cap Rate | 8.00% |
| Lease Term | 9 Years |
| City | Schenectady |
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Walgreens – Schenectady, NY (Albany MSA)
This Walgreens Pharmacy located in Schenectady, New York, presents a unique opportunity to acquire a single-tenant, net lease property backed by Walgreens Boots Alliance, one of the largest and most recognized pharmacy operators in the United States. The property is secured by an absolute triple-net (NNN) lease with zero landlord responsibilities, offering investors long-term, passive cash flow anchored by an investment-grade tenant in a densely populated and economically stable metropolitan market.
Located within the Albany-Schenectady-Troy Metropolitan Statistical Area (MSA), this property benefits from strong demographic fundamentals, a stable regional economy, and high demand for healthcare services. Schenectady is a critical node in New York’s Capital Region, home to leading healthcare systems, higher education institutions, major employers in the energy and defense sectors, and a growing population of retirees and working professionals. These factors combine to create a sustained need for pharmaceutical and convenience retail services—core offerings delivered consistently by Walgreens.
This opportunity aligns with the objectives of 1031 exchange buyers, passive real estate investors, private capital groups, and trusts seeking stable income, dependable credit tenancy, and real estate with lasting relevance in an established northeastern market.
Tenant Overview – Walgreens Boots Alliance
Walgreens Boots Alliance (NASDAQ: WBA) is a global leader in retail pharmacy, operating over 8,000 locations in the United States alone. The company provides essential services, including prescription medication, over-the-counter healthcare products, immunizations, telehealth services, and general retail items. Walgreens plays a critical role in delivering local access to healthcare in both suburban and urban communities across the country.
The company has consistently adapted to changes in consumer behavior, regulatory frameworks, and the evolving healthcare landscape. Through its partnership with VillageMD, Walgreens is integrating full-service primary care clinics inside select store locations, expanding its role as a healthcare destination. The company is also investing in digital platforms, last-mile delivery, and AI-powered prescription fulfillment systems to enhance customer experience and drive operational efficiency.
Walgreens has one of the highest site retention rates among national tenants in the net lease space. Its stores generate reliable customer traffic and recurring revenue from prescription services, immunizations, front-end retail, and seasonal offerings. Walgreens is viewed by the investment community as a gold-standard net lease tenant due to its creditworthiness, national presence, and recession-resistant business model.
Lease Structure – Absolute Triple-Net (NNN)
The Walgreens in Schenectady operates under an absolute NNN lease. This lease structure offers true passive ownership with no property management responsibilities. The tenant is responsible for all aspects of property operation, including:
This lease model provides the investor with long-term, stable income that is contractually guaranteed by one of the nation’s largest publicly traded pharmacy retailers. Walgreens’ long-term approach to occupancy, coupled with strong lease covenants, ensures predictability and consistency in income.
Additional benefits of the lease include:
This investment structure is especially attractive for investors seeking low-risk, management-free income.
Schenectady, NY – Regional Overview
Schenectady is part of the Albany-Schenectady-Troy MSA, commonly known as New York’s Capital Region. The area is home to the state capital, a diverse economic base, and a population exceeding 1.1 million people. Schenectady itself is a city of historical and economic significance, formerly known for its leadership in manufacturing and now thriving in healthcare, education, and technology.
The Capital Region is a center for state and federal employment, as well as home to institutions such as Albany Medical Center, General Electric, GlobalFoundries, and several state universities and community colleges. These drivers help support economic resilience and a steady demand for healthcare, retail, and housing.
Schenectady has experienced steady urban revitalization, including residential redevelopment, retail corridor modernization, and public infrastructure investment. Located just minutes from downtown Albany, the area benefits from excellent connectivity via Interstate 90, Amtrak, and regional airports. This access ensures a wide consumer reach for essential service retailers like Walgreens.
Local Demand Drivers and Consumer Profile
The population in Schenectady and the surrounding Albany MSA supports long-term demand for essential retail, particularly in the healthcare and pharmaceutical sectors.
Demographic strengths include:
These characteristics position Walgreens to continue serving the community with core services such as prescription fulfillment, immunizations, wellness products, and basic household retail needs.
The store also benefits from its accessibility and convenience. With a drive-thru pharmacy and large parking lot, Walgreens is able to efficiently serve both quick-stop customers and long-term prescription clientele. Its location within a mixed-use corridor ensures steady vehicular and pedestrian traffic throughout the week.
Retail Corridor and Site Characteristics
The subject property is situated along a major commercial corridor with excellent visibility, signage, and ingress/egress. It is surrounded by national retailers, financial institutions, and quick-service restaurants, creating a natural retail ecosystem that drives repeat visits.
Site attributes include:
These features ensure long-term tenant success and site viability. Walgreens’ corporate strategy places emphasis on location quality, ease of access, and community integration—all present in this offering.
Corporate Credit Profile – Walgreens Boots Alliance
Walgreens Boots Alliance is an investment-grade, publicly traded company with a consistent history of financial performance and lease reliability.
Key financial indicators:
Walgreens’ strong balance sheet, diversified revenue sources, and healthcare innovation roadmap provide investors with peace of mind when evaluating its net lease offerings. Walgreens is not only recession-resistant but positioned to grow in relevance as consumer preferences shift toward accessible, neighborhood-based healthcare.
Investment Highlights
Conclusion
The Walgreens Pharmacy located in Schenectady, New York presents a rare opportunity to acquire a passive, income-producing net lease asset with investment-grade credit in one of the most stable and well-established markets in the Northeast. With a corporate-guaranteed absolute NNN lease, no landlord obligations, and a long-term presence in a community that depends on accessible healthcare services, this offering provides a compelling mix of security, simplicity, and credit strength.
Whether you are seeking a 1031 exchange replacement, estate planning vehicle, or long-term wealth preservation investment, this Walgreens in the Albany MSA offers all the critical fundamentals: quality real estate, credit tenancy, market stability, and fully passive ownership.