Winick Realty Group has lost one of its largest clients, Duane Reade, to SRS Real Estate Partners, industry sources told Commercial Observer.
SRS’ Patrick Smith in New York and Matthew Alexander in San Francisco were tapped to run the account for Duane Reade, a subsidiary of the Walgreen Company.
“It’s consistency, it’s efficiency and making sure they are on strategy in all markets,” said a source on condition of anonymity. In addition, a couple of sources said, Winick is a purely local firm and Walgreens likely wants to benefit from SRS’ national and global reach.
When addressing the significance of the loss of Duane Reade as a client, another industry pro noted that Jeff Winick, head of Winick, “built his company on [Duane Reade].”
SRS, a global retail brokerage with 22 offices which got its start as Staubach Company in 1986, already handles leasing for Walgreens. There are fewer than 100 Walgreens drugstores and more than 250 Duane Reades in the city. Duane Reade opened its first location in 1960 on Broadway between Duane and Reade Streets, Winick’s website indicates.
“SRS is going to be a broker for all of our stores including Walgreens and Duane Reade,” Phil Caruso, a spokesman for Walgreens, confirmed.
Deerfield, Ill.-based Walgreens announced in February 2010 the $1.1 billion acquisition of rival drugstore chain Duane Reade Holdings in an effort to extend its reach into New York City.
Winick declined to comment and Duane Reade didn’t immediately respond to requests for comment. A spokeswoman for SRS said she couldn’t comment and directed this reporter to Messrs. Smith and Alexander. Mr. Smith declined to comment.
Update: This story was edited to include a comment from Walgreens.