Ann Arbor Walgreens construction to start in 2010 at Jackson and Maple
Agree Realty Corp. said that it plans to complete construction of a free-standing drugstore at the corner of Jackson and Maple roads by fall 2010.
The store - named during the city planning process as a Walgreens - will replace several vacant commercial buildings, including the former Schlotszky's Deli and KFC, near the southeast corner. The site is just north of the West Stadium merger into Maple and east of Westgate Mall.
Agree Realty [NYSE: ADC] appears to have leased the land from the owners of the five buildings. Agree representatives could not be reached this morning.
The plans for the store started in the city approval process in mid-2007, when the property owners and Agree officials sought to have the city vacate an alley behind a small retail center south of the site with frontage on Maple Road.
"They needed to go through the alley vacation process," said city planner Matt Kowalski. "That, in effect, held it up."
The site plans were submitted in June 2008, then approved earlier this year after an easement was created to give the nearby retail tenants access from the back of the Walgreens site to Maple, Collingwood and Abbot streets, Kowalski said. Agree, a Farmington Hills-based real estate investment trust, owns, manages and develops properties that are primarily single tenant properties leased to major retail tenants and neighborhood community shopping centers.
According to its most recent public filing, Agree's top three tenants are: â€¢ Walgreens - 29.8 percent of its portfolio, representing $10.2 million in base rent. â€¢ Borders - 28.9 percent of its portfolio, representing $9.93 million in base rent. â€¢ Kmart - 11.2 percent of its portfolio, representing $3.8 million in base rent.
As of this morning, the company's market cap was $198 million. It posted third-quarter revenue of $9.2 million.
"We seek high-quality development opportunities for national tenants that provide strong return on investment as well as reduced development risk," said Joey Agree, President of Agree Realty, in a press release.
"This project should be an excellent addition to our expanding portfolio of net leased properties. We continue to execute on projects that fit within our long-term investment strategy."