Walgreens developer snags Republic Road site

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|ret|by Eric Olson

|ret|SBJ Reporter

|ret|eolson@sbj.net

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|ret|A Colorado development group has acquired property in southeast Springfield with the intent of building a Walgreens drugstore.

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|ret|Bencor LLC of Colorado Springs, Colo., represented by Springfield Realtor Scott F. Harrell, closed Jan. 14 on property at the northwest corner of Republic Road and Fremont Ave.

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|ret|The site is home to Uncle Bentley's Pub |amp| Lounge and three other tenants in the adjoining center: Crooke Pet Clinic, All Star Satellite Systems and dentist Thomas Saitta. The tenants have nine months to vacate, said Jon Gorski, Bencor partner and in-house lawyer.

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|ret|Bencor specializes in developing Walgreens drugstores it has built more than 100 in the last 10 years and leases to Walgreen Co., a Deerfield, Ill.-based, publicly owned chain. Walgreens, with more than 4,000 drugstores nationwide and $32.5 billion in sales last fiscal year, leases approximately 80 percent of its stores, according to corporate spokesperson Carol Hively. The new store is likely to open in summer 2005.

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|ret|Bencor plans to demolish the existing center and break ground in late fall. It typically takes six months to construct a Walgreens store, Gorski said. Historically, Gorski said Walgreens takes one or two months for infill, which would mean a summer 2005 opening.

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|ret|Bencor also is constructing a Walgreens in Republic, which is to be complete in April.

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|ret|Gorski said Bencor often sells Walgreens properties to investors once established. The company currently has five stores under contract for sale.

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|ret|Gorski said Walgreens dictates where the company builds. |quot|Walgreens typically gives us an area they would like us to find a good corner,|quot| he said. |quot|This was just an area that needed service.|quot|

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|ret|The inner workings of the deal date back to 2002, when Harrell approached Uncle Bentley's owner Jack Horton with Bencor's offer to purchase. Horton also is principal of Hixson Properties LLC, which owns the land and building for Uncle Bentley's and the other three tenants.

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|ret|However, there was a problem: Hixson Properties' parcel, at 0.75 acres, was not large enough for a Walgreens store and parking. That's where Rod Hughs steps in. Hughs owned a small parcel immediately west of Uncle Bentley's fronting Republic Road, and Bencor needed that land to make the deal happen. A second offer was made to Hughs. The offers were contingent on city approval to combine the two properties, Horton said.

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|ret||quot|Rod Hughs and I both sold our properties to the buyer,|quot| Horton said. Realtor Todd Chambers represented Hughs.

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|ret|Neither sellers nor the buyer would disclose the purchase prices. According to the Greene County Assessor's Office, Hixon Properties' parcel appraised for $500,100 in 2003.

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|ret|While Horton is not thrilled about moving, he said the money was too good to turn down. He has run Uncle Bentley's in that location for 23 years.

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|ret||quot|Together these two properties were worth more than they ever could have been separately,|quot| he said. |quot|It made financial sense to do it, even though I would have much rather stayed here.|quot|

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|ret|Horton said he is looking to keep the neighborhood bar in southeast Springfield. He has until October.

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|ret|Hughs also owns a parcel to the north of Bencor's corner lot and plans to develop 16,000 square feet of office and retail space there. He said he hopes to break ground this spring.

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