Sarasota-led investment group buys Palmetto Walgreens building

BUYER: GST Palmetto LLC (principal: Steven Guerrazzi as trustee), Sarasota
SELLER: Harry Todd and B.J. Weeks Partnership (29% interest) and 13540 North Florida Avenue Partnership (71%)
PROPERTY: 930 W. Eighth Ave., Palmetto
PRICE: $3.05 million
PREVIOUS PRICE: $3.38 million, August 2002
LAW FIRM ON DEED: Foley & Lardner LLP, Tampa

PLANS, DESCRIPTION: Investment entity GST Palmetto LLC, led by Steven Guerrazzi as trustee, purchased a 15,120-square-foot drug store building for $3.05 million.

The price equated to $202 per square foot. That figure is higher than the two-year average price per square foot for retail space ($146) in the Tampa Bay area, according to the CoStar Group.

The building was constructed in 2000 for Walgreen Co., which has leased and occupied it since. The drug store giant has seven years remaining on its triple-net lease, which obligates it to pay the store's property taxes, utilities, insurance, maintenance and repairs.

Located on a 1.3-acre parcel at the southeast corner of U.S. 41 and 10th Street, the property features 65 parking spaces.

Based on a published net operating income of $281,000, the purchase price equated to an annual payoff ratio (capitalization rate) of 9%.

Jag Grewal of Ian Black Real Estate handled the transaction.