cvs pharmacy - loopnet...to acquire approximately 1.92+/- acres on ditch & 146th st in...

CVS PharmacyWestfield, IN

A Net Lease Investment Opportunity

Confidential Offering MemorandumRepresentative Photo

The information contained in this Offering Memorandum is confidential, furnished solely for the purpose of review by a prospective purchaser of Ditch Road & 146th Street, Westfield, IN 46074 (the “Property”) and is not to be used for any other purpose or made available to any other person without the express written consent of The Net Lease Group, LLC. (“NLG”). The material is based in part upon information supplied by Owner and in part upon information obtained by The Net Lease Group from sources it deems reasonably reliable. Summaries of any documents are not intended to be comprehen-sive or all inclusive but rather only an outline of some of the provisions contained therein. No warranty or representation, expressed or implied, is made by Owner, The Net Lease Group, or any of their re-spective affiliates as to the accuracy or completeness of the information contained herein or any other written or oral communication transmitted to a prospective purchaser in the course of its evaluation of the Property. No legal liability is assumed or implied in connection with the information or such other communications. Without limiting the generality of the foregoing, the information shall not be deemed a representation of the state of affairs of the Property or constitute an indication that there has been no change in the business or affairs of the Property since the date of preparation of the information. Prospective purchasers should make their own projections and conclusions without reliance upon the materials contained herein and conduct their own independent due diligence, including engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the site. This Offering Memorandum was prepared by The Net Lease Group and has been reviewed by the Owner. It contains select information pertaining to the Property and does not purport to be all inclusive or to contain all of the information which a prospective purchaser may desire. All financial projections are provided for general reference purposes only and are based on assumptions relating to the general economy, competition and other factors beyond control and, therefore, are subject to material change or variation. An opportunity to inspect the Property will be made available to qualified prospective purchasers. In this Offering Memorandum, certain documents and other materials are described in summa-ry form. The summaries do not purport to be complete nor, necessarily, accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to independently review all documents. This Offering Memorandum is subject to prior placement, errors, omissions, changes or with-drawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Property by The Net Lease Group or the Owner. Each prospective purchaser is to rely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Property described herein. This Offering Memorandum is subject to prior placement, errors, omissions, changes or with-drawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Property by The Net Lease Group or the Owner. Each prospective purchaser is to rely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Property described herein. This Offering Memorandum is the property of The Net Lease Group and may be used only by parties approved by The Net Lease Group and Owner. The Property is privately offered and, by accepting delivery of this Offering Memorandum, the party in possession hereof agrees (i) to return it to The Net Lease Group immediately upon request of The Net Lease Group or Owner and (ii) that this Offering Memorandum and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Offering Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of The Net Lease Group and Owner. The terms and conditions set forth above apply to this Offering Memorandum in its entirety.

CONFIDENTIALITY & RESTRICTED USE AGREEMENT EXCLUSIVELY MARKETED BYEsmael HillManaging [email protected]

Philip WickstromManaging [email protected]

Troy [email protected]

Maxwell SchlesingerAssociate404.551.2013mschlesinger@thenetleasegroup.com

3350 Riverwood Parkway, Suite 700Atlanta, GA 30339

thenetleasegroup.com

TABLE OF CONTENTS

Executive Summary............................1 The Offering Investment Highlights

Financial Overview.............................3 Offering & Financial Summary

Tenant Overview.................................4

Property Overview.............................7 Site Plan Market Aerials

Market Overview................................11

Demographics....................................12

Representative Photo

The Net Lease Group exclusively presents the opportunity to acquire approximately 1.92+/- acres on Ditch & 146th St in Westfield, IN leased to Hook–Superx, LLC, and guaranteed by CVS Caremark Corporation. When completed, CVS will occupy and operate a newly constructed 12,900 SF 24-Hour service freestanding facility with drive-thru. CVS executed a double net (NN) 25-year lease with five (5) 5-year options to renew. The Landlord is responsible for repairs and maintenance of the roof, foundation, structure, exterior walls, plumbing, and utility lines.

The offering consists of a fee simple interest in 1.92+/- acres leased to CVS which provides an investor with the opportunity to own an institutional quality asset one hundred percent (100%) leased to an investment grade company that provides a dependable and predictable income throughout the lease term.

EXECUTIVE SUMMARY

THE OFFERING

PURCHASE PRICE: $8,606,000CAP RATE: 5.00%


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EXECUTIVE SUMMARYINVESTMENT HIGHLIGHTS

CORPORATE GUARANTY The Lease is guaranteed by CVS Health Corporation (NYSE: CVS), an investment grade tenant (S&P: BBB+/Stable) with Annual Revenues exceeding $153.3 Billion.

NEW LONG-TERM LEASE 25-year double net (NN) lease which commences June 16, 2018 and expires January 16, 2044 with five (5) 5-year options to renew.

NEW CONSTRUCTION The newly constructed building is anticipated to be completed in January 2018.

PREDICTABLE PASSIVE INCOME The CVS lease is NN. The Landlord is solely responsible for the Roof and Structural elements. The Tenant is responsible for all CAM, Taxes, Insurance and Utilities as well as repair to the HVAC and Parking Lot.

STRONG DEMOGRAPHICS Over 50,000 full-time residents reside within a 3-mile radius of the property and over 108,000 full-time residents reside within a 5-mile radius. The Average Household Income within a 3-mile radius exceeds $144,000 and the 36% of the population in a 3-mile radius are above the age of 45.


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FINANCIAL OVERVIEW

THE LEASEThis newly constructed CVS has an initial 25-year lease term, plus five (5) five-year renewal options. The store is expected to be delivered to the tenant in January, 2018. The double net (NN) lease requires the tenant to pay for real estate taxes*, property maintenance, and insurance. The landlord has financial responsibility for foundation, roof, structure, exterior walls, plumbing pipes, and utility lines.

CVS pays initial base annual rent equal to $430,300 with rental increase of 5% in each option period. The lease is guaranteed by CVS Caremark Corporation.

* increases in taxes attributable to a sale shall be the responsibility of the landlord.

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TENANT OVERVIEWRepresentative Photo

TENANT SUMMARYCVS Health Corporation (NYSE: CVS), headquartered in Woonsocket, Rhode Island is the largest pharmacy health care provider in the United States.

CVS Health is a pharmacy innovation company helping people on their path to better health. Through its more than 9,600 retail pharmacies, more than 1,100 walk-in medical clinics, a leading pharmacy benefits manager with more than 80 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, and expanding specialty pharmacy services, the Company enables people, businesses and communities to manage health in more affordable and effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs.

CVS stores sell prescription drugs, as well as other products such as nonprescription medications, health and beauty aids, and cosmetics. The company also operates the largest network of acute medical care clinics via 1,100 MinuteClinic health care clinics throughout the U.S. MinuteClinics are staffed by nurse practitioners and physician assistants utilizing recognized protocols to diagnose and treat minor health conditions, perform health screenings, monitor chronic conditions, and provide vaccinations. CVS expects to expand MinuteClinic to 1,500 locations in more than 35 states by 2017.

In June 2015, CVS announced the $1.9 billion purchase of Target’s pharmacy business. The acquisition increased CVS’s store count to 9,500+ locations and added west coast metro areas to CVS’s footprint, including Portland, Seattle, Denver and Salt Lake City.

During the three months ended September 30, 2016, the Company opened 48 new retail stores. In addition, the Company relocated 11 retail stores. As of September 30, 2016, the Company operated 9,694 retail stores, including pharmacies in Target stores, in 49 states, the District of Columbia, Puerto Rico and Brazil.

Find more information about how CVS Health is shaping the future of health at https://www.cvshealth.com. 4

TENANT OVERVIEWTENANT FACTS & FIGURES


9,690+ PHARMACY STORE LOCATIONS CVS Pharmacy has more than 9,690 retail drug stores in 49 states, the District of Columbia, Puerto Rico and Brazil and is currently located in 98 of the top 100 drugstore markets.

1,100+ MINUTECLINIC LOCATIONS CVS Health has more than 1,100 MinuteClinic locations in 33 states and Washington, D.C.

243,000+ EMPLOYEES CVS Health employs more than 243,000 colleagues across all 50 states, Washington, D.C., Puerto Rico andBrazil.

30,000+ PHARMACISTS CVS Health employs more than 30,000 pharmacists across our company.

1.9 BILLION PRESCRIPTIONS CVS Health fills or manages 1.9 billion prescriptions each year and has captured 39% of past 5-year market prescription growth.

31+ MILLION MINUTECLINIC PATIENT VISITS Our MinuteClinic nurse practitioners have seen more than 31 million patients to date, with a 95 percent customer satisfaction rating.

5 MILLION CUSTOMERS SERVED DAILY Every day, CVS Pharmacy serves 5 million customers in our retail pharmacies across the country.

$40 BILLION IN SPECIALTY DRUG REVENUE CVS Health includes the largest U.S. specialty pharmacy with $40 billion in revenue.

2016 HIGHLIGHTS Net revenues increased 15.8% to $177.5 billion

GAAP diluted EPS from continuing operations of $4.91

Adjusted EPS of $5.84, an increase of 13.2%

Cash flow from operations of $10.1 billion; free cash flow of $8.1 billion

Board of Directors authorized an 18% increase in quarterly common stock cash dividend to $0.50 per share effective in 2017. This increase equates to an annual dividend rate of $2.00 per share.

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TENANT OVERVIEWCVS BUSINESS LINES

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PROPERTY OVERVIEW

The newly constructed 12,900 SF CVS building sits on 1.92+/- acres, well located on the Northeast corner of Ditch Rd and 146th Street, 18 miles North of downtown Indianapolis in Westfield, IN in Hamilton County the most affluent county in Indiana. Ditch Rd connects with Interstate 465 which encircles the city of Indianapolis and provides access to the surrounding commercial area and its communities.

The neighboring city of Carmel, IN is very active with medical and health institutions. Carmel has over 50 medical locations which will be serviced by this CVS for its prescription medications. Most notable of these locations is Indiana University Health North Hospital which has provided leading family-centered care to Hamilton County residents since 2005.

The Subject property is situated just off the market’s main retail/commercial corridor in Westfield. Several national retailers surround the subject property including Target, Walmart, Lowe’s, Best Buy, Kroger, Whole Foods, The Fresh Market, Aldi, Kohl’s, Office Max, LA Fitness, Stein Mart, and PetSmart. Restaurants include Starbucks, Dunkin’ Donuts, Applebee’s, Buffalo Wild Wings, Chili’s, Ted’s Montana Grill, Chipotle, Arby’s, Five Guys, and Red Robin.

The surrounding market within a 3-mile radius supports approximately 52,000 people with an average household income exceeding $144,000 annually.

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SITE PLAN

PROPERTY OVERVIEW

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MARKET AERIAL

PROPERTY OVERVIEW

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MEDICAL TRADE AREALPROPERTY OVERVIEW

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MARKET OVERVIEWWestfield, IN, and Hamilton County sit within the Indianapolis Metropolitan Area which includes 11 counties in the state of Indiana and contains a population of 1,971,274 people. CNN Money Magazine has named the City of Westfield one of the top 50 “Best Places to Live” for 2013. Westfield is the only Indiana community to make the list, which focuses on “America’s Best Small Towns.” Overall, Westfield ranked fifth in the Midwest and 18th in the nation. The City of Westfield was named 2016 Best Small City in America by WalletHub. WalletHub compared 1,268 cities with populations between 25,000 and 100,000 based on several indicators that included housing costs, school-system quality and quality of life.

In 2014 Westfield, IN invested $45 million into Grand Park the united states largest mixed-use youth sports complex with the idea that youth sports will become the city’s primary industry. Grand Park is a destination like no other and located 5 miles north of the subject property. The thoughtfully designed 400-acre Grand Park Sports Campus features 26 baseball and softball diamonds, 31 multipurpose fields for soccer, football, rugby, field hockey and lacrosse as well as two indoor facilities to accommodate year-round play for a variety of sports. In its first three months of operation the park hosted nearly 400,000 visitors from 48 states and Canada. Officials estimate that 800,000 people will visit the complex during the first full year of operation. Grand Park released the 2015 Economic Impact Report: In its second year of operations, the economic impact more than doubled from $66.4 million in 2014 to $147.7 million in 2015.

The neighboring city of Carmel, IN is highly active in the health care field with over 50 medical clinics and hospitals in the area. Most notable of these locations is University of Indiana Health’s North Hospital. As a full-service hospital for adults and children with an attached medical office building, IU Health North Hospital includes 189 all-private patient rooms, including private NICU and PICU rooms, 16 technologically advanced surgical suites with a focus on non- and minimally-invasive procedures, and services ranging from cardiovascular care to radiology.

IU Health North Hospital

Grand Park

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DEMOGRAPHICS


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3350 Riverwood Parkway, Suite 700Atlanta, GA 30339

thenetleasegroup.com


EXCLUSIVELY MARKETED BYEsmael HillManaging [email protected]

Philip WickstromManaging [email protected]

Troy [email protected]

Maxwell SchlesingerAssociate404.551.2013mschlesinger@thenetleasegroup.com

cvs pharmacy - loopnet...to acquire approximately 1.92+/- acres on ditch & 146th st in...

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