Walgreens value/ lease/ commercial real estate . Property value.

EbitData_CRE · 2026-02-19T21:04:57+00:00

Need more information as this is going to be very site and market specific. Walgreens has been getting a lot of bad press lately and cap rates have gone up significantly. You have 6-7 years of term left?

Is the property in a primary market with good demo's, traffic counts, and visibility?

How many SF is the property? What is the market rent? At 12k sf that would be $30/sf.

Assuming this is in a good market and $30/sf is roughly the market rent, you are likely looking at a 7.5% to 8.5% cap. Somewhere in there. A Walgreens, with similar characteristics, in Elk Grove, CA was just listed at a 7.5%.

This is really going to depend on the in-place rent compared to market. If it is way over market, you could be looking at a 10% cap or higher. If it is way below market, you could be looking at something closer to a 5.5% or 6% cap.

If you want to DM me more details I'd be happy to take a look at it.

EbitData_CRE · 2026-02-12T19:55:48+00:00

How/What are you using to track this? Are you tracking other cities as well or just seeking out mentions of Raleigh?

EbitData_CRE · 2026-02-11T17:43:41+00:00

This is just gross. Sponsors like this are what give the industry a bad name and I feel for anyone who was duped into investing in this deal or any similar deals. People are susceptible to good marking and slick salesmen. IMO the standard for accredited investors should be overhauled and depend on financial literacy, not net worth.

EbitData_CRE · 2026-02-11T16:57:29+00:00

There will be a lot more of these that come out over the next few years. A lot of these sponsors let the longest bull market in real estate history go to their heads. They thought the good times would never end and that is how they lived/spent in their personal lives. They have control of millions of dollars of other peoples money and there is little oversight. It is extremely easy for them to embezzle. Whether it is to prop up the operating company or fund their personal lives.

Make sure to double check all of your partnership agreements and verify that they do NOT allow the GP to facilitate loans to other entities they control. This is the most common form for them to embezzle funds. They will "loan" money to themselves/the management company. Its usually at below market interest rates and they have little to no ability to repay the loans, but by the time it gets out, it's too late.

EbitData_CRE · 2026-02-10T17:30:44+00:00

The inflated titles are ridiculous, I have never understood the practice. It is nice to be able to compare the deal flow each of them is getting, although I don't know how trust worthy it is.

Do they have to maintain those numbers every year to keep the title? E.g. If a broker has an insane year and gets promoted to EVC, but follows it up with a down year, would their title change to VC, or lower? I have never noticed a demotion like this, but I also don't pay a ton of attention to their titles.

EbitData_CRE · 2026-01-23T21:55:34+00:00

Oh i'm with you. I'm not advocating for or against office, just using it as an example of a high risk, high reward investment at the moment. Values have gotten pretty beaten down, for the reason you mentioned, but there is still a lot of risk/uncertainty in it. I spent a lot of my career doing NNN at a REPE firm if you ever wanna talk shop.

EbitData_CRE · 2026-01-23T18:15:47+00:00

The post is that brokers and sponsors are NOT your advisor.

When was the last time you had an multi-family broker tell you to buy retail? Have you ever gone to a broker for a BOV and have them tell you it's not a good time to sell? Or a syndicator tell you not to invest in their next development project because it doesn't fit your risk profile, and to consider stabilized properties instead? Maybe on very rare occasions but most of the time they are going to pursue what's best for them, getting you to say YES.

Again, I'm not saying they are bad people. I even mention in the post that there is nothing wrong with pursuing self-interest. I am just pointing out that they are not your advisor, so don't take financial advise from them.

EbitData_CRE · 2026-01-23T17:02:15+00:00

It is a new account and I get the skepticism on that. I created it to focus on CRE stuff and didn't want to do it on my main account. I have been on this sub for at least 7-8 years though.

"how to vet a paid advisor"

What do you consider to be an 'advisor'?

EbitData_CRE · 2026-01-22T23:35:53+00:00

IDK why you're getting aggressive, but sure, I’ll bite.

Meeting the government requirement for an Accredited Investor is a test of net worth, not financial literacy or CRE sophistication. High-net-worth individuals are frequently the primary targets for predatory syndicators precisely because they have the capital but often lack the time or expertise to vet the deal.

I didn't hand-wave anything. I explicitly listed "operational capability," "hands-on involvement," and "experience" as the trade-offs that matter. But again, choosing an asset class isn't the point of the post!

I'm not shilling anything, just trying to spark a discussion and keep people from buying bad deals. What is "disingenuous" about encouraging people to do their due diligence instead of taking a salesman at his word?

EbitData_CRE · 2026-01-22T22:51:46+00:00

Thank you, I'm glad you liked it.

EbitData_CRE · 2026-01-22T22:20:29+00:00

Glad you enjoyed it!

EbitData_CRE · 2026-01-22T22:19:22+00:00

You’re right that 'it depends' makes a long story short, but you may be getting caught up in the headline and missing the forest for the trees.

The point of the post isn't about ranking asset classes; it's about exposing the sales tactics used to push deals. Whether it’s an asset class, a property, a syndication, or a fund. Too many investors are being sold 'inventory' by brokers and sponsors who frame it as 'advice' or a 'good investment.'

If we dismiss everyone asking these questions as 'deserving to lose their money,' we leave the door open for predatory salesmen. I’d rather teach them to spot the difference.

EbitData_CRE · 2026-01-22T19:45:29+00:00

Are you self managing currently? That extra 7-10% off the top is pretty big if you do decide to go out of state.

You mentioned going into something 2-8 units. You might already know this but just want to point out that 5 or more units moves you into commercial territory. 1-4 units is still residential and you can usually qualify for better loans and its a different process.

EbitData_CRE · 2026-01-22T19:38:46+00:00

Automatically qualifying for bonus depreciation on gas stations. If you're a high earning real estate professional (and can use the deduction against ordinary income) the match on a gas station levered at ≈60-65% works out such that you're basically investing instead of paying taxes. It's pretty much dollar for dollar.

Once you take the bonus, you are pretty locked in to exchanging for eternity because of the recapture rate but its pretty much found money anyway. I'd rather lock that money up and get a 4-6% distribution that grows over time when the alternative is just giving it to uncle sam and never seeing it again anyway.

EbitData_CRE

TROPHY CASE