Walgreens

Walgreens – Cherry Hill, New Jersey (Philadelphia Metro Area)

This single-tenant Walgreens in Cherry Hill, New Jersey offers a rare opportunity to acquire an absolute triple-net (NNN) lease investment in a core suburban market within the greater Philadelphia metropolitan area. The property is leased to Walgreens Boots Alliance, a Fortune 500 company and one of the most well-established tenants in the net lease sector. Backed by a corporate guarantee and featuring a zero-landlord-responsibility lease structure, this investment provides a passive, long-term income stream anchored by a nationally recognized healthcare and retail provider.

Cherry Hill is one of South Jersey’s most affluent and desirable communities, offering strong demographics, excellent transportation infrastructure, and dense population. The property’s location benefits from high visibility, strong traffic counts, and a surrounding trade area that includes residential neighborhoods, medical centers, and retail shopping destinations.

This asset is ideal for private investors, institutional buyers, family offices, and 1031 exchange purchasers seeking durable cash flow, tenant stability, and real estate located in a high-barrier-to-entry, densely populated suburban corridor.

Tenant Overview – Walgreens Boots Alliance

Walgreens Boots Alliance (NASDAQ: WBA) is one of the most established and widely respected healthcare retailers in the United States. Operating more than 8,000 locations nationwide, Walgreens serves millions of Americans each day through a combination of prescription drug fulfillment, vaccinations, healthcare consultations, and convenience retail offerings. The company is currently undergoing a strategic expansion into full-service healthcare delivery by co-locating primary care services at its retail sites through partnerships with companies such as VillageMD and CareCentrix.

From an investor perspective, Walgreens remains one of the most sought-after tenants in the single-tenant NNN space due to the following attributes:

• Corporate credit guarantee with investment-grade rating (S&P: BBB)
• National brand recognition and consumer loyalty
• Recession-resistant, essential-service business model
• Long-term lease structures with renewal options
• High probability of tenant retention upon lease expiration
• In-place infrastructure and footprint for future healthcare expansion

This Cherry Hill location fits well within Walgreens’ corporate strategy of operating in affluent suburban neighborhoods with nearby healthcare facilities, schools, and daily commuter traffic.

Lease Structure – Absolute Triple-Net (NNN)

The Walgreens property is subject to an absolute triple-net lease, meaning the tenant is responsible for all aspects of operating and maintaining the property. This lease structure eliminates all landlord obligations and provides investors with predictable, contractually obligated income backed by Walgreens Boots Alliance.

Under this structure, Walgreens is responsible for:

• Real estate taxes
• Insurance
• Property maintenance, including roof and structural repairs
• Site maintenance, landscaping, and capital expenditures
• Utilities and CAM charges

This “hands-off” lease profile appeals to a wide variety of investor types, particularly those seeking wealth preservation, estate planning simplicity, and mailbox money-style returns. It is especially attractive to:

• 1031 exchange buyers
• Investors approaching retirement
• Family trusts or generational wealth vehicles
• Institutional capital seeking fixed-income alternatives
• REITs focused on stabilized healthcare-related retail assets

The absolute NNN lease provides stability during economic volatility and removes the typical operational headaches associated with multi-tenant or landlord-managed properties.

Market Overview – Cherry Hill, NJ (Philadelphia Metro)

Cherry Hill is one of the most affluent and well-established suburbs of Philadelphia, located just 10 miles east of Center City via the Benjamin Franklin Bridge. With a population of over 74,000 and a median household income of more than $100,000, Cherry Hill is a highly desirable suburban community in Camden County, New Jersey. It serves as a commercial hub for the South Jersey region and draws shoppers, patients, and commuters from nearby towns such as Haddonfield, Marlton, Voorhees, and Moorestown.

Key attributes of the Cherry Hill market include:

• Proximity to Philadelphia via major commuter routes such as I-295, Route 70, and Route 38
• Strong public school system and family-oriented neighborhoods
• Access to major hospitals including Jefferson Health, Cooper University Health Care, and Virtua Health
• Significant employment base in healthcare, education, insurance, and retail
• Dense retail environment anchored by the Cherry Hill Mall and major national tenants
• Served by NJ Transit bus lines and PATCO Speedline for regional commuter access

Cherry Hill is frequently ranked among the best places to live in New Jersey, and its established neighborhoods, retail corridors, and medical infrastructure create a strong base of recurring pharmacy and healthcare demand. Walgreens has a long history of success in markets like Cherry Hill due to a consistent customer base, high prescription volume, and strong brand loyalty.

Demographics and Demand Drivers

Within a 5-mile radius of this Walgreens location:

• Population exceeds 275,000 residents
• Median household income is well above the national average
• High concentration of aging residents and baby boomers requiring chronic condition management and prescriptions
• A well-insured population through employer-based, private, and public health plans
• Close proximity to multiple urgent care centers, medical practices, senior living communities, and specialists
• Commuter flow from Cherry Hill to Philadelphia drives consistent weekday traffic

The combination of strong purchasing power, density, and healthcare reliance makes Cherry Hill an ideal market for an essential retailer like Walgreens. Prescription demand is bolstered by the area’s demographics, while walk-in traffic is supported by surrounding retail and convenience services.

Property and Site Features

This freestanding Walgreens building features all the hallmarks of the brand’s preferred prototype, with strategic site planning that enhances customer accessibility and long-term tenant viability. Typical Walgreens site features include:

• Drive-thru pharmacy window for convenience and prescription efficiency
• High-visibility pylon or monument signage facing a major traffic corridor
• Ample surface parking for customer convenience
• ADA-compliant accessibility and modern site layout
• Signalized intersection or corner positioning for ingress and egress
• Proximity to synergistic tenants including grocery, QSR, banking, and medical offices

Located along a main retail corridor in Cherry Hill, this Walgreens benefits from daily exposure to thousands of vehicles and consistent foot traffic from nearby schools, homes, and healthcare offices.

Corporate Overview – Walgreens Boots Alliance

Walgreens remains a stalwart in the pharmacy and healthcare space with operations across the U.S. and internationally. As it continues to evolve, the company is placing greater emphasis on integrated healthcare delivery, telemedicine, and pharmacy technology. These innovations are supported by the company’s robust brick-and-mortar network.

Key financial and operational highlights:

• Publicly traded under ticker symbol WBA
• Annual revenues over $130 billion
• More than 225,000 employees
• Strategic alliances with VillageMD and other healthcare operators
• 8,000+ domestic store locations
• BBB investment-grade credit rating from Standard & Poor’s

This continued evolution ensures the long-term relevance of Walgreens locations and improves tenant stickiness by making retail pharmacy sites indispensable parts of the community healthcare system.

Investment Highlights

• Absolute NNN lease – zero landlord obligations
• Corporate lease guarantee from Walgreens Boots Alliance
• Long-term passive income with strong credit backing
• Located in Cherry Hill, NJ – a dense, affluent Philadelphia suburb
• Essential-service tenant with recession-resistant performance history
• Strategic corner or arterial retail corridor location
• Strong traffic counts and complementary co-tenancy
• High consumer demand driven by local demographics and medical infrastructure
• Ideal for 1031 exchange buyers, estate planning, or income-focused portfolios

Conclusion

The Walgreens property in Cherry Hill, New Jersey is a prime example of high-quality net lease real estate: credit-backed, passive, and located in an infill, high-barrier-to-entry market. With strong demographic support, proximity to Philadelphia, and a proven tenant that offers essential daily services, this investment offers long-term stability and attractive yield.

As demand for community-based healthcare continues to rise and investors look for secure income vehicles with minimal management requirements, properties like this Walgreens will remain highly desirable. Whether for 1031 exchange, generational wealth preservation, or institutional portfolio diversification, this asset offers the full package of security, location, and tenant performance.