It's true that everything in California is bigger and glitzier than the rest of the nation.
To prove that point, a private investor just paid $10.7 million or $1,368 per square foot for a 7,830-square-foot site at the heavily trafficked Santa Monica Boulevard and Highland Avenue in Hollywood, CA.
A new Walgreens is under construction on the site at 1050 North Highland Ave. The store is scheduled to be completed in spring 2011. A Del Taco restaurant formerly sat on the pad.
Walgreens will lease the premises from the investor-owner at an undisclosed rental rate. His name was not disclosed in a press release from Marcus & Millichap Real Estate Services Inc. which brokered the transaction.
CoStar and Real Capital Analytics confirm to Marcus & Millichap the deal represents the highest price per square foot for a single-tenant net-leased drugstore building in the United States this year.
Mark Thiel, a senior associate in the firm's San Diego office, represented the buyer.
Thiel says one factor that contributed to the record per-square-foot price was that the property is located on a prime Hollywood corner where a a Del Taco once stood.
"We closed the transaction pre-completion" of the project, Thiel says.