| Purchase Price | $3,930,000 |
|---|---|
| Annual Rental Income | $316,000 |
| Cap Rate | 8.04% |
| Lease Term | 10.6 Years |
| City | Dover |
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Walgreens – Dover, Delaware
The single-tenant Walgreens Pharmacy in Dover, Delaware presents a rare opportunity to acquire an institutional-grade net lease asset backed by Walgreens Boots Alliance—one of the most established and recognizable tenants in the United States. With an absolute triple-net (NNN) lease in place, this property offers passive, management-free income supported by a corporate guarantee from an investment-grade tenant. Located in Dover, the capital of Delaware and the second-largest city in the state, this Walgreens benefits from strong demographics, central positioning in a healthcare-focused market, and consistent prescription-driven foot traffic.
This asset is ideal for investors seeking stable yield, long-term cash flow, and minimal risk exposure in an essential retail sector. Whether used as a 1031 exchange replacement property, a cornerstone in a passive portfolio, or a credit-anchored income source for estate planning or institutional allocation, this Walgreens location offers all the hallmarks of a premier net lease investment.
Tenant Overview – Walgreens Boots Alliance
Walgreens Boots Alliance (NASDAQ: WBA) operates one of the most extensive pharmacy retail networks in the United States. With over 8,000 domestic locations and a footprint that reaches more than 25 countries, the company serves millions of customers through essential healthcare services, retail wellness products, immunizations, and pharmaceutical fulfillment. Walgreens is a key player in the national healthcare infrastructure and is one of the most sought-after tenants in the single-tenant net lease market.
What makes Walgreens such a durable and preferred tenant for investors is its essential service model and investment-grade credit profile. The company’s business is largely driven by prescription volume, repeat customer interaction, and an increasing role in local healthcare delivery through partnerships with providers such as VillageMD. Walgreens locations are not easily replaced, relocated, or downsized, contributing to high tenant retention and consistent lease renewal activity.
From an investment perspective, Walgreens offers:
This location in Dover, DE fits the company’s prototypical real estate profile—freestanding, accessible, and centrally positioned within a high-demand healthcare corridor.
Lease Structure – Absolute NNN Lease
The lease structure on this Walgreens is an absolute triple-net lease (NNN), which is considered the most investor-friendly and passive form of real estate ownership. The tenant, Walgreens Boots Alliance, is responsible for all operational expenses associated with the property, including:
The landlord has no financial or operational responsibilities, making this an ideal asset for buyers seeking consistent income with minimal complexity. The property functions as a fixed-income vehicle with real estate-backed security and corporate credit support.
Additional lease highlights typically include:
This lease profile attracts high-net-worth individuals, family offices, REITs, and private equity funds seeking durable yield from essential-use tenants.
Dover, Delaware – Market Overview
Dover is the capital of Delaware and the core city within Kent County. As the second-largest city in the state, it serves as a regional center for government, education, healthcare, and commerce. The city is home to Delaware State University, Dover Air Force Base, Bayhealth Medical Center, and a wide variety of state-level administrative offices and courts.
Located approximately halfway between Wilmington, DE and the beaches of southern Delaware, Dover has become a central hub of activity for both full-time residents and transient populations tied to the military, education, and tourism sectors. Its geographic position, favorable tax environment, and continued public and private investment make it a resilient and economically stable community for net lease retail assets.
Key economic drivers in Dover include:
These factors support long-term stability in the market and consistent demand for prescription and wellness services. Walgreens’ strong presence in Dover underscores its strategic importance to the region’s healthcare delivery.
Demographics and Consumer Profile
The demographics surrounding this Walgreens location in Dover provide consistent, long-term demand for pharmacy services. Within a 5-mile radius:
With an aging U.S. population and rising demand for local access to prescriptions and immunizations, Walgreens continues to benefit from demographic tailwinds. The pharmacy’s convenience, insurance processing capabilities, and clinical offerings ensure that foot traffic remains high and prescription volumes stable.
Retail Corridor and Site Features
The Walgreens in Dover is strategically located on a major arterial road with excellent visibility, strong traffic counts, and signalized access. The freestanding building includes a drive-thru pharmacy window, consistent with Walgreens’ national prototype, and is surrounded by complementary uses including grocery stores, urgent care clinics, fast food, and financial institutions.
Typical property features include:
These site fundamentals support tenant performance and long-term lease retention. Walgreens’ consistent performance in this location reflects both real estate strength and business model alignment.
Walgreens Boots Alliance – Credit Profile
Walgreens Boots Alliance is a publicly traded Fortune 500 company with a long-standing reputation for financial strength and operational consistency.
Corporate data includes:
As the retail pharmacy industry evolves, Walgreens continues to adapt its model with more emphasis on wellness services, clinical care, and insurance partnerships. The company’s aggressive capital allocation into co-located clinics and digital systems further secures its long-term viability and demand from a changing healthcare consumer.
Investment Summary
Conclusion
The Walgreens in Dover, Delaware provides investors with a low-risk, passive income-producing property in a stable, healthcare-driven market. With an absolute NNN lease in place and a corporate guarantee from a Fortune 500 company, this investment offers all the hallmarks of a best-in-class net lease opportunity.
Its strategic positioning within Delaware’s capital city, proximity to military and healthcare institutions, and surrounding residential demand make it a resilient long-term hold for any portfolio. Whether you are completing a 1031 exchange or seeking a durable income stream in the net lease space, this Walgreens is an ideal fit.