Walgreens - Nogales AZ
Retail | 8.83% CAP | 14,490 SqFt
Marketing description
Experience a prime investment opportunity at the 1959 N Grand in Nogales, AZ. Priced at $3,600,000 with a solid NOI of $318,000 and an impressive Cap Rate of 8.83%, this property offers a lucrative lease with ten 5-year renewal options. The true NNN lease type ensures zero landlord duties, providing a hassle-free investment. Situated at a hard corner on the main retail artery, this property benefits from being a gateway for cross-border shoppers, with limited competition in the area. Additionally, the property is strategically located near Walmart Supercenter and Carondelet Holy Cross Hospital, ensuring a steady flow of consumer traffic. With recent infrastructure upgrades and thriving local economy as Arizona's leading gateway for Mexican produce, this investment promises great potential. Don't miss out on this exclusive regional opportunity with solid cash-on-cash returns and positive leverage. Contact us to discuss flexible deal terms and secure your investment in this high-demand location.
Investment highlights
Consistent front of house sales over 3 million per year year.
Recent infrastructure upgrades: A $134M SR-189 improvement added flyover ramps and grade separations to speed trade and reduce congestion—benefiting adjacent retailers via smoother, higher throughput traffic.
Anchor neighbors that drive trips: Nearby demand generators include Walmart Supercenter (100 W White Park Dr) and Carondelet Holy Cross Hospital (1171 W Target Range Rd), feeding recurring pharmacy/OTC and convenience trips.
Produce-trade hub economy: Nogales is Arizona’s leading gateway for Mexican produce; fresh fruits & vegetables became the highest-value import category (> $3.4B, 2020), with the local industry supporting >4,000 jobs and ~$438M total economic impact—a stable, year-round employment base that underpins retail spend.
Seller is flexible on deal terms and timing and will accommodate a first quarter 2026 Closing.
Hard corner, main retail artery: The store sits at the NW corner of Grand Ave & Mariposa (SR-189) the city’s prime surface street retail corridor and direct connector to I-19.
Binational catchment: The store benefits from proximity to
Nogales, Sonora (pop. ~265k, 2020) —multiplying daytime
population and retail draw beyond the ~20k residents on the U.S. side.
Gateway for cross border shoppers: Incoming pedestrian crossings at Nogales rose ~11% in 2024 to ~3.26 million,
supporting consistent binational retail demand.
Limited Competition: Nearest Walgreens 40+ Miles Away: The subject property enjoys a protected trade area with no other Walgreens within approximately 40-43 miles. The next closest store is located in Green Valley, AZ — about a 42 minute drive north - giving this location an exclusive regional customer base and reinforcing long-term sales stability due to limited brand overlap and strong local demand capture.
Statewide ripple effects: The Nogales produce supply chain supports ~4,927 Arizona jobs, $944M in output, and $362M in labor income, further broadening the store’s customer base through logistics and distribution payrolls.
Growing purchasing power locally: Median household income in Nogales rose ~11%YoY to $40,745 in 2023, signaling improving consumer capacity for prescriptions, front-end health/beauty, and convenience baskets.
Strategic corridor status: SR-189 is part of the CANAMEX trade corridor, anchoring long-term relevance of the intersection for goods flow and service demand.
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