cvs 6 unit portfolio - matthews › wp-content › uploads › 2017 › 05 › cvs-zero-ca… · 6...

O f f e r i n g M e m o r a n d u m | 1

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Representative Photo

Mesquite, Texas Wyoming, Michigan

CVS 6 Unit Zero Cash Flow Portfolio

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BILL PEDERSENNational Drug Store Specialist

bi l l [email protected] (949) 432-4501MOB (831 ) 246-0646LIC NO. 01975700

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KYLE MATTHEWSChairman & CEO

[email protected] NO. 01469842

Exclusively Listed By

KYLE MATTHEWSBROKER OF RECORD (TX)

License No. 678067

GILLIAN GREENFIELDBROKER OF RECORD (WV)

License No. WV0026307

KYLE MATTHEWSBROKER OF RECORD (VA)

License No. 226027771

KARL NORWOODBROKER OF RECORD (NH)

License No. 6788

DON MORTENSONBROKER OF RECORD (AZ)

License No. LC635678000

KYLE MATTHEWSBROKER OF RECORD (MI)

L icense No. 6505399495

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4 Investment Summary 7 The OfferingsMesquite, Texas.............................8Gilford, New Hampshire..............10Dunbar, West Virginia..................12Lynchburg, Virginia.......................14Surprise, Arizona...........................16Wyoming, Michigan......................18

6 Tenant Report

Table of Contents

5 Financial Highlights

4 4 | C V S 6 U n i t P o r t f o l i o

Investment Summary

Bill Pedersen and Kyle Matthews of Matthews Real Estate Investment Services are pleased to offer for sale a portfolio of six zero cash flow CVS. All subject properties are 100% leased to CVS Pharmacy and are operating under absolute NNN leases. The portfolio must be kept together, stores cannot be sold off individually.

Investment Overview

• Zero Cash Flow Financing: Individual loans on each property; coterminous and assumable zero cash flow debt with a second mortgage in place

• No Phantom Income: Interest payments on second mortgage are greater than principal payments for the remainder of the term

• High leverage: Only a 12% equity requirement

• Absolute NNN Leases: Zero landlord responsibilities

• Original 25 year Leases: ±11.75 years remaining on original term plus 10 renewal options

• Strong Locations for Ideal 1031 Exchange Properties

• Strong Credit Tenant Investment grade credit (S&P Rated BBB+, Moody’s Baa1), second largest retail pharmacy in the US with over 9,600 locations, Fortune 500 company - Ranked #7 in 2016, CVS Health is the largest retailer of prescription drugs and the second-largest pharmacy benefits manager in the U.S.

Investment HighlightsWyoming, Michigan

Dunbar, West Virginia

5O f f e r i n g M e m o r a n d u m | 5

Financial Highlights

CVS Surprise, AZ

CVSWyoming, MI

CVS Gilford, NH

CVSMesquite, TX

CVSLynchburg, VA

CVSDunbar, WV

Portfolio

CVS Store No. 5477 8306 863 5869 4285 4244

List Price $3,680,375 $2,980,566 $2,837,165 $3,075,610 $2,988,242 $2,501,574 $18,063,533

% over debt 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00%

Equity required $394,326 $319,346 $303,982 $329,530 $320,169 $268,026 $1,935,379

Financial Information - 1st Mortgage & MezzTotal Outstanding Principal Balance (as of 10/10/2017)

$3,286,049 $2,661,219 $2,533,183 $2,746,080 $2,668,074 $2,233,549 $16,128,155

Maturity Date 1/10/2026 1/10/2026 1/10/2026 1/10/2026 1/10/2026 1/10/2026

Balloon Payment $3,230,325 $2,616,091 $2,490,226 $2,669,511 $2,622,829 $2,195,671 $15,824,654

Balloon Due Date 1/31/2029 1/31/2029 1/31/2029 1/31/2029 1/31/2029 1/31/2029

Rent HolidayThree (3) year rent holiday beginning

1/10/26

Three (3) year rent holiday beginning

1/10/26


1/10/26


1/10/26


1/10/26


1/10/26

Lease Information

Base Rent $285,056 $230,853 $219,747 $238,215 $231,448 $193,754 $1,399,073

Rent Commencement 1/10/2004 2/10/2004 2/10/2004 2/10/2004 2/10/2004 2/10/2004

Lease Expiration 1/31/2029 1/31/2029 1/31/2029 1/31/2029 1/31/2029 1/31/2029

Remaining Lease Term (years)

11.75 11.75 11.75 11.75 11.75 11.75

Renewal Options Ten (10) five (5) year extension periods

(at FMV)

Ten (10) five (5) year extension periods

(at FMV)


(at FMV)


(at FMV)


(at FMV)


(at FMV)

Year Built 2006 TBD 2003 2003 2003 2003

GLA (SF) 13,069 TBD TBD 13,091 12,200 11,500

Land (AC) 2.04 0.95 2.97 1.52 1.13 1.25


Property Name CVS

Property Type Net Leased Drug Store

Company Trade Name CVS Health Corporation (NYSE: CVS)

Ownership Public

Credit Rating (S&P) BBB+

No. of Locations ± 9,700

No. of Employees ± 243,000

Headquartered Woonsocket, Rhode Island

Website www.cvs.com

Year Founded 1963

TENANT OVERVIEWCVS Health Corporation, together with its subsidiaries, provides integrated pharmacy health care services. It operates through Pharmacy Services and Retail/LTC segments. The Pharmacy Services segment offers pharmacy benefit management solutions, such as plan design and administration, formulary management, Medicare Part D services, mail order and specialty pharmacy services, retail pharmacy network management services, prescription management systems, clinical services, disease management programs, and medical pharmacy management services. The Retail/LTC segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, personal care products, convenience foods, seasonal merchandise, and greeting cards, as well as provides photo finishing services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. Hook-SupeRx, LLC operates as a subsidiary of CVS Health Corporation and retails drugs in the United States. It is

based in Indianapolis, Indiana and does business as CVS Pharmacy.

GEOGRAPHIC REACHCVS drugstores span across 49 U.S. states, the District of Columbia, Brazil and Puerto Rico. The company also operates Longs Drugs banner in California, Hawaii, Nevada and Arizona. Around 1,000 store locations throughout 31 states

and in Washington D.C. also have Minute Clinics.

STRATEGY

CVS continues to evolve from being a general pharmacy store, expanding into

more specialty fields of the fast-growing healthcare market. The company’s

Retail Pharmacy Store Development plan, which focuses on entering new

markets, adding stores in existing markets, and relocating stores to more

convenient sites, has been essential for business growth and in keeping up with

Walgreens. CVS has been successful in its ventures for its store count has

increased from 7,388 stores at the end of 2011 to nearly 9,700 stores today. In

addition to opening new stores, CVS has made efforts to increase sales at

existing ones. Prescription drugs account for more than two-thirds of its sales,

and the retailer is attempting to grow revenues from over-the-counter

medications and general merchandise through its growing private-label product

offering.

Tenant Report


Wyoming, Michigan

The Offerings


1413 Oates DriveMesquite, TX 75150

Actual Site

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 14,262 147,735 330,109

2017 Estimate 13,378 138,993 310,252

2010 Census 12,369 129,187 287,638

2000 Census 11,307 123,491 274,912

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 5,730 51,376 116,776

2017 Estimate 5,392 48,478 110,051

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$63,286 $65,135 $64,930


PROPERTY ADDRESS1413 Oates Drive

LOCATIONMesquite, Texas

BUILDING AREA (GLA) ± 13,091 SF

LAND AREA± 1.52 Acres

YEAR BUILT2003

NUMBER OF STORIES1

APN38-14290-005-01R-00-00

ZONINGTBD

PARKING66 Spaces

PARKING RATIO5.04/1,000 SF

Physical Description

TENANT TRADE NAMECVS

TYPE OF OWNERSHIPFee Simple

LEASE GUARANTORCorporate

LEASE TYPEAbsolute NNN

ROOF AND STRUCTURETenant Responsible

ORIGINAL LEASE TERM25 Years

TERM REMAINING± 11.75 Years

INCREASESFair Market Value (In Options)

OptionsTen (10), Five (5) Year Options

Tenant Summary

CVS STORE NUMBER5869

MINUTE CLINICYes

DRIVE-THRUYes

24 HOUR STORENo

CVS Store Information

Actual Site

10 1 0 | C V S 6 U n i t P o r t f o l i o

1371 Lakeshore DriveGilford, NH 03249



2022 Projection 1,198 16,978 24,908

2017 Estimate 1,185 16,805 24,710

2010 Census 1,180 16,687 24,643

2000 Census 1,236 16,818 24,518


2022 Projection 552 7,518 10,807

2017 Estimate 540 7,376 10,644



$84,745 $80,031 $80,911

11O f f e r i n g M e m o r a n d u m | 1 1

PROPERTY ADDRESS1371 Lakeshore Drive

LOCATIONGilford, New Hampshire

BUILDING AREA (GLA) TBD


YEAR BUILT2003

NUMBER OF STORIES1

APNGIFL M:201 B:033 L:00

ZONINGTBD

PARKING76 Spaces

PARKING RATIOTBD





LEASE TYPENNN






Tenant Summary

CVS STORE NUMBER863

MINUTE CLINICNo

DRIVE-THRUYes

24 HOUR STORENo




121 10th StreetDunbar, West Virginia 25064

Actual Site


2022 Projection 9,273 26,814 61,831

2017 Estimate 9,555 27,269 63,113

2010 Census 10,124 28,093 65,461

2000 Census 10,743 28,795 67,525


2022 Projection 4,386 12,141 27,391

2017 Estimate 4,519 12,319 27,890



$53,296 $57,897 $62,659


PROPERTY ADDRESS121 10th Street

LOCATIONDunbar, West Virginia



YEAR BUILT2003

NUMBER OF STORIES1

APN20-26- 12-0335.0000

ZONINGTBD

PARKING50 Spaces






LEASE TYPENNN






Tenant Summary


MINUTE CLINICNo

DRIVE-THRUYes

24 HOUR STORENo


Actual Site


21550 Timberlake RoadLynchburg, VA 24502



2022 Projection 5,933 34,221 70,708

2017 Estimate 5,731 32,383 66,582

2010 Census 5,542 29,891 60,823

2000 Census 4,843 24,064 45,778


2022 Projection 2,548 14,480 26,357

2017 Estimate 2,456 13,705 24,834



$58,747 $68,135 $69,875


PROPERTY ADDRESS21550 Timberlake Road

LOCATIONLynchburg, Virginia



YEAR BUILT2003

NUMBER OF STORIES1

APN21A 1 5

ZONINGB-GC, C

PARKING54 Spaces






LEASE TYPENNN






Tenant Summary


MINUTE CLINICNo

DRIVE-THRUYes

24 HOUR STOREYes




13870 West Greenway RoadSurprise, AZ 85374



2022 Projection 19,631 132,643 252,948

2017 Estimate 17,615 120,194 230,678

2010 Census 14,494 100,624 195,334

2000 Census 1,507 37,330 85,632


2022 Projection 6,002 45,512 100,442

2017 Estimate 5,466 41,689 92,712



$73,183 $65,801 $64,166


PROPERTY ADDRESS13870 West Greenway Road

LOCATIONSurprise, Arizona



YEAR BUILT2006

NUMBER OF STORIES1

APN501-16-987

ZONINGTBD

PARKING58 Spaces






LEASE TYPENNN






Tenant Summary


MINUTE CLINICNo

DRIVE-THRUYes

24 HOUR STORENo




2375 28th Street SWWyoming, MI 49519

Actual Site


2022 Projection 12,486 87,522 251,952

2017 Estimate 11,732 82,973 238,530

2010 Census 10,762 77,594 220,125

2000 Census 9,743 73,430 200,082


2022 Projection 5,480 35,984 100,892

2017 Estimate 5,154 34,178 95,755



$65,738 $77,299 $82,526


2375 28th Street SWWyoming, MI 49519

PROPERTY ADDRESS2375 28th Street SW

LOCATIONWyoming, Michigan

BUILDING AREA (GLA) TBD


YEAR BUILT2003

NUMBER OF STORIES1

APN41-17-10-359-017

ZONINGTBD

PARKING40 Spaces

PARKING RATIOTBD





LEASE TYPENNN






Tenant Summary


MINUTE CLINICNo

DRIVE-THRUYes

24 HOUR STORENo


Actual Site


This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of the CVS Properties in this portfolio. I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T


BILL PEDERSENNational Drug Store Specialist

bi l l [email protected] (949) 432-4501MOB (831 ) 246-0646LIC NO. 01975700

KYLE MATTHEWSBROKER OF RECORD (TX)

License No. 678067

GILLIAN GREENFIELDBROKER OF RECORD (WV)

License No. WV0026307

KYLE MATTHEWSBROKER OF RECORD (VA)

License No. 226027771

KARL NORWOODBROKER OF RECORD (NH)

License No. 6788

KYLE MATTHEWSChairman & CEO

[email protected] NO. 01469842

DON MORTENSONBROKER OF RECORD (AZ)

License No. LC635678000

KYLE MATTHEWSBROKER OF RECORD (MI)

L icense No. 6505399495

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