New Walgreens - Rare California Central Coast Opportunity
10% Rent Increases Every 5 Years | Strong Fundamentals - Market Rent & Below Replacement Cost
Marketing description
- New 11 Year net lease with minimal landlord responsibilities
- Rare 10% rent increases every five years throughout the lease
- Rare Central Coast California net lease investment opportunity – extremely high barriers to entry
- Strong fundamentals with market rent at $15/SF/Yr and below replacement cost at $250/SF
- The first new Walgreens to open in California in a decade, quickly backfilling the Rite Aid vacancy, signifying exceedingly high confidence in the location
- One of only two Walgreens locations in San Luis Obispo County, and the only major corporate pharmacy within a fourteen-mile radius
- Affluent demographics with an average household income over $124,000 within a five-mile radius and population of 25,978
- Located just off California’s iconic Highway 1 (35,000 VPD) that connects Morro Bay to Carmel along California’s Central Coast
- Walgreens was taken private by Sycamore Partners in 2025 after reporting annual revenue of $147 billion in 2024
- Walgreens was ranked #25 on the Fortune 500 list in 2025
Investment highlights
Cushman & Wakefield's Net Lease Group is pleased to exclusively offer for sale a new Walgreens (former Rite Aid) in Morro Bay, California. The property consists of a new ±23,643 square foot retail store leased to Walgreens Co. with a new 11-year lease with 10% rent increases every 5 years that commenced in June 2026.
The Walgreens property is located in the Albertson’s-anchored Cypress Plaza shopping center on Quintana Road just off world famous California Highway 1 (35,000 VPD) in Morro Bay, California – an extremely high barrier to entry market on California’s Central Coast. Other national tenants in Cypress Plaza include McDonald’s, Subway, Round Table Pizza, O’Reilly Auto Parts, Burger King, and UPS. The property is part of the primary daily needs retail and commercial corridor in Morro Bay along Quintana Road that also includes an AutoZone and Dollar Tree anchored shopping center. Adjacent to Cypress Plaza are several medical office buildings, including the Central Coast Optometric Center and Urgent Care of Morro Bay, along with the Morro Bay Fire Department, Community Center, Library, and California Department of Social Services office. One block east of the property is Morro Bay Boulevard, a major thoroughfare through downtown Morro Bay, and the on/off ramps to Highway 1. The property is 3 minutes from the Morro Bay Embarcadero, 15 minutes from US 101 and San Luis Obispo, and 25 minutes from the San Luis Obispo County Airport.
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