Walgreens Completes Sale-Leaseback of Headquarters
Walgreen Co. completed the sale of six office buildings in its Deerfield headquarters complex to Realty Income as part of an effort to free cash to invest in its stores and other parts of its business.
The nation’s largest drugstore chain said it sold the low-slung office buildings on the south side of Lake-Cook Road, which comprise 574,605 square feet on 38 acres, with an agreement to lease back the space long term.
“We’re going to continue to use those buildings; it doesn’t really change how we use them or mean we’re moving anyone around,” said Michael Polzin, a Walgreen spokesman. “It’s pretty much just a financial transaction and nothing beyond that.”
Though neither Walgreen nor Jones Lang would disclose a purchase price, an industry source pegged it at about $85 million. It’s unclear how much Walgreen will pay Realty Income in rent.
The sale does not include all of the company’s property in its Deerfield complex. Its top executives and others have offices on the north side of Lake-Cook Road. Walgreen said in April it was seeking a buyer for the property.
Source: Chicago Tribune, October 08, 2013 By Peter Frost