The land under Longs Drugs in Haleiwa has recently sold for $7 million.
According to an announcement from Cushman & Wakefield ChaneyBrooks, the 1.31-acre site has a long-term ground lease to Longs Drugs, owned by parent company CVS Health. The 17,060 square foot building underwent extensive renovations in 2009 when Longs assumed the lease, according to the firm.
Joseph Haas and Andrew Starn of Cushman & Wakefield ChaneyBrooks and Michael Tanaka and Ross Segawa of Realty 2000, Inc., led the sales effort while Rock Tang, also with Cushman & Wakefield ChaneyBrooks, represented the unnamed buyer, a local investor.
“We received a lot of interest for the property,” said Haas in a statement. “This type of single-tenant net-leased offering is rare and highly-coveted, especially when leased to a national credit tenant such as Longs Drugs (CVS).”
Haas, the firm’s managing director, reiterated those sentiments in a phone call with Pacific Business News.
With a triple net lease, tenants pay for all expenses associated with the property, he said.
“It’s common on the Mainland but very unusual in Hawaii,” Haas said. “[There are] very few single-tenant triple net properties.”
These are “very highly prized” investments.
“Haleiwa has high barriers to entry due to the scarcity of commercial zoned land and lack of new development,” Starn said in a statement. “This, coupled with the NNN lease and strength of Longs, enabled us to secure a full price offer prior to putting the property on the market.”
According to Haas, the sale closed Sept. 13 and the lease expires in 2049. He did not identify the buyer but said it was a real estate trust.
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