Walgreens turnkey deal - Posted by Zita

Posted by ray@lcorn on August 25, 2003 at 08:30:02:


I assume you’re probably connected with the church and trying to help market the property? You might want to consider listing the site at www.loopnet.com

That is the largest commercial property listing site on the net.

Good luck,


Walgreens turnkey deal - Posted by Zita

Posted by Zita on July 25, 2003 at 15:33:52:

I am working a proposal for this Tenant for a Land and building Purchase turnkey. What major components should I consider besides Developer Fee; Building Cost and Land Cost? I am getting contractor’s quotes but I am afraid I am leaving some relevant costs aside.

Re: Walgreens turnkey deal - Posted by ray@lcorn

Posted by ray@lcorn on July 26, 2003 at 10:42:07:


Since you’re asking the question I will assume that you’re not familiar with the Walgreens process. They know within pennies what their building costs, and will tell you which contractor will qualify to build it in your market. They also specify the developer fee, and you (or the approved developer) won’t get a penny more. The only wild card is land cost and site prep, and they will control that through the lease amount.

The first hurdle is site approval by Walgreens… do you have that? Is the site under your control? If not, then you’re at risk to lose the deal to an experienced developer. It is not uncommon for Walgreens to play two or three developers (and sites) against each other in one market in order to get the best deal. If you contact the RE department at WG they may give you the name of a developer or have them call you. Unless you are an experienced developer they will not approve you to build the store.

After site approval, the real fun starts. Negotiating the lease with these folks is a learning experience for everyone. Tip: Don’t try it without legal counsel, preferrably in Chicago, preferrably with prior Walgreens experience.

You’re in one of the most cutthroat areas of the RE biz… tread carefully.


Re: Site Available - Posted by Bill Evers

Posted by Bill Evers on August 23, 2003 at 16:52:42:

Christ Memorial Lutheran Church is looking sell it’s corner site at 9712 Tesson Ferry Rd. St. Louis, MO 63123. Senior Pastor Rev. Gregory Smith. 314-631-0304

Re: Walgreens turnkey deal - Posted by Zita

Posted by Zita on July 26, 2003 at 12:09:46:

We develop housing projects for the last 20 years. We have no experience with retailers or shopping centers . The site is approved by them and under our control. We have construction permits and sketches for a 96,000 neighborhood strip mall. We will be proposing various alternatives. Among them a turnkey purchase (land & building) and lease. I already contacted RE at Walgreens and am working with various contractors. I know the building cost and developer fees but want to make sure that I do not miss other aspects that come out with this specific Tenant when estimating my price to them…, any additional thoughts? or is this just beginning?