By Linda Taaffe

Walgreens Drug Stores plans to finalize the purchase of five local leases from McWhorter’s stationery stores this month, including the Los Altos site at 303 Second St.

Other McWhorter’s leases include stores in Menlo Park, Redwood City, Sunnyvale and Cupertino.

The national pharmacy chain bid on the leases during a liquidation auction in San Francisco last Thursday, said Carol Hively, a corporate spokeswoman for Walgreens.

Hively would not say how much Walgreens was offering for the five leases.

Daniel Hanley, property manager and share holder in the Duc Han Corp., which owns the Second Street site, said he had intended to bid on the McWhorter’s lease and regain control of the building, but when he arrived at the auction, he discovered that the lease was no longer on the auction block.

“We were very surprised. We didn’t think (Walgreens) was a player,” Hanley said.

If the deal is successful, Walgreens plans to open pharmacies at each of the sites, Hively said.

Los Altos Planning Director James Walgren was investigating whether Walgreens would need a permit to occupy the space.

Under city law, a retail operation that is over 3,500 square feet requires a conditional use permit, he said. This gives the city some control over “big box” chain stores, he said.

The city granted McWhorter’s a conditional use permit when it opened at the Second Street site, which is 12,000 square feet, Walgren said.

“It is my belief that the use permit runs with the lease and can be transferred,” he said.

Hanley said the Second Street property lease is good for another 20 years.

McWhorter’s parent company, U.S. Office Products, filed for bankruptcy in June. The store is scheduled to close Aug. 30.