| Purchase Price | $3,850,000 |
|---|---|
| Annual Rental Income | $313,500 |
| Cap Rate | 8.14% |
| Lease Term | 10.7 Years |
| City | Scranton |
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Walgreens – Scranton, Pennsylvania
This single-tenant Walgreens Pharmacy in Scranton, Pennsylvania presents a unique investment opportunity in one of northeastern Pennsylvania’s most enduring healthcare and retail markets. Backed by a corporate lease from Walgreens Boots Alliance, one of the largest and most recognizable pharmacy chains in the country, this property offers stable, long-term income through an absolute triple-net (NNN) lease. The property requires zero landlord responsibilities and is ideal for investors seeking passive, recession-resistant cash flow from a nationally recognized, investment-grade tenant.
Scranton, a historic city within the Scranton–Wilkes-Barre–Hazleton Metropolitan Statistical Area (MSA), has evolved from its industrial roots into a regional healthcare, education, and retail hub. Walgreens, with its essential service model and deeply integrated community presence, is uniquely positioned to serve the healthcare needs of this growing and aging population. The site benefits from strong traffic patterns, access to major roadways, and proximity to dense residential neighborhoods and critical infrastructure.
With a secure lease, excellent demographics, and a tenant operating in a resilient sector, this Walgreens is well-suited for 1031 exchange buyers, long-term hold strategies, trust investment vehicles, and private capital seeking stability and dependable returns.
Tenant Overview – Walgreens Boots Alliance
Walgreens Boots Alliance (NASDAQ: WBA) is one of the leading names in U.S. retail pharmacy and a dominant force in the global healthcare and wellness industry. With more than 8,000 retail locations across the United States and operations in over 25 countries, the company has become synonymous with convenient, accessible health services.
Walgreens provides a comprehensive range of offerings including prescription drugs, over-the-counter medications, health and beauty items, immunizations, chronic disease management, and basic clinical services. Through strategic initiatives such as the partnership with VillageMD, Walgreens is rapidly transitioning its stores into hybrid wellness centers, incorporating full-service primary care to supplement its existing retail pharmacy model.
As a net lease tenant, Walgreens is prized for:
This Walgreens location in Scranton represents the type of long-standing store Walgreens favors—well-located in a high-traffic corridor, supported by residential demand, and embedded in a community with long-term healthcare needs.
Lease Structure – Absolute NNN Lease
The property is secured by an absolute triple-net (NNN) lease, offering pure passive income with no landlord duties. Under this structure, Walgreens is responsible for all operating expenses, including:
This lease model provides true hands-off ownership, making it ideal for 1031 exchange replacement property buyers, estate planners, and institutional or individual investors focused on yield consistency and minimal risk.
Additional lease features:
Scranton, PA – Market Overview
Scranton, the county seat of Lackawanna County, is the sixth-largest city in Pennsylvania and part of the Scranton–Wilkes-Barre–Hazleton MSA. The region’s economy has transitioned from manufacturing and rail to healthcare, education, finance, and logistics. Major employers include Commonwealth Health, Geisinger Health System, the University of Scranton, and numerous regional banks and distribution centers.
Scranton benefits from its strategic position near Interstates 81, 84, and 380, which connect it to New York City, Philadelphia, and the broader Mid-Atlantic corridor. This connectivity supports a stable labor force, commuter accessibility, and consistent demand for services.
The city is home to numerous educational institutions, hospitals, and senior care facilities—all of which contribute to the healthcare needs that Walgreens serves. Additionally, its revitalized downtown, growing residential developments, and steady in-migration of retirees contribute to the area’s economic resilience and demand for pharmaceutical services.
Demographic Strengths
Within a 5-mile radius of the subject property, the area features:
Scranton’s demographic profile aligns well with Walgreens’ national strategy, which targets communities with long-term pharmacy needs and stable, middle-income populations.
Retail Corridor and Property Characteristics
The property is located on a highly visible retail corridor that draws daily traffic from commuters, residents, and regional visitors. Walgreens benefits from signalized access, monument signage, and strong visibility from nearby intersections. It operates as a freestanding building consistent with Walgreens’ prototype, offering drive-thru pharmacy services and ample surface parking.
The site is surrounded by complementary national and regional tenants, including grocery stores, banks, discount retailers, urgent care clinics, and quick-service restaurants—supporting consistent daily foot traffic.
Property features:
These attributes enhance the tenant’s operational success and reinforce long-term site viability, which is a key driver in Walgreens’ lease renewal decisions.
Walgreens Credit Profile
As a publicly traded Fortune 500 company, Walgreens Boots Alliance carries an investment-grade credit rating and is widely regarded as one of the most dependable tenants in the net lease industry.
Key financial highlights:
Walgreens’ performance in recent years has highlighted its resilience during economic downturns, health crises, and changes in consumer behavior. Its critical role in vaccine distribution, chronic care management, and prescription delivery has further cemented its place as a must-have tenant in any net lease portfolio.
Investment Summary
Conclusion
The Walgreens Pharmacy in Scranton, Pennsylvania offers a highly desirable combination of passive income, creditworthy tenancy, and essential-use real estate in a stable, northeastern U.S. market. The property’s absolute NNN lease structure, investment-grade tenant, and healthcare-centric location provide the foundation for long-term income generation and minimal ownership risk.
As demand for accessible healthcare services continues to grow and the U.S. population ages, Walgreens remains at the forefront of retail-based medical care. This property allows investors to capitalize on those macro trends through a low-maintenance, dependable net lease investment.