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Single tenant CVS for sale


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Single tenant CVS for sale

  1. 1. NET LEASED INVESTMENT OFFERING CVS 108 Park RoadPleasant Grove, AL (Birmingham MSA)
  2. 2. TABLE OF CONTENTS NET LEASED INVESTMENT OFFERING TABLE OF CONTENTS1) Confidentiality & Disclaimer2) Executive Summary3) Property Overview4) Aerial5) Site Plan6) Map7) Tenant Profile8) Demographic Comparison Report9) Location Overview10) Contact Information
  3. 3. CONFIDENTIALITY & DISCLAIMER NET LEASED INVESTMENT OFFERING CONFIDENTIALITY CONFIDENTIALITY & DISCLAIMERThe information contained in the following Offering Memorandum is proprietary and strictly confidential. It isintended to be reviewed only by the party receiving it from The Boulder Group and should not be made available toany other person or entity without the written consent of The Boulder Group. This Offering Memorandum has beenprepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminarylevel of interest in the subject property. The information contained herein is not a substitute for a thorough duediligence investigation. The Boulder Group has not made any investigation, and makes no warranty orrepresentation. The information contained in this Offering Memorandum has been obtained from sources webelieve to be reliable; however, The Boulder Group has not verified, and will not verify, any of the informationcontained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes nowarranty or representation whatsoever regarding the accuracy or completeness of the information provided. Allpotential buyers must take appropriate measures to verify all of the information set forth herein.
  4. 4. EXECUTIVE SUMMARY NET LEASED INVESTMENT OFFERING EXECUTIVE SUMMARYThe Boulder Group is pleased to exclusively market for sale a single tenant net leased CVS property located in theBirmingham MSA. The 10,125 square foot CVS property was built in 2000. The lease features a 5% rental escalation inthe primary term as well as escalations in each of the four option periods. This is a proven location for CVS as thelocation has a strong sales history with a low rent to sales ratio. Store sales at this location have increased 9.5% from2009-2011.The property is located along Park Road and has multiple points of ingress and egress on both Park and Pleasant GroveRoads. The Arbors at Ellington, a 40 unit senior housing community is located less than one-quarter mile from theproperty. Additionally, U.S. Steel’s Fairfield Works and Fairfield Tubular Operations are located in close proximity to theproperty. Fairfield Works is comprised of both steelmaking and finishing facilities. The plan employs approximately 1,500workers at the mill and creates 2.4 million tons of raw steel each year. The Fairfield Works plant has helped keepunemployment in the greater Birmingham area at 6.6%, below the United State average.The original CVS lease term was for 20 years with four 5-year renewal options and the lease expires in May 2020. CVS isa publicly traded company on the New York Stock Exchange (CVS), with a market capitalization of $58 billion. CVS is aninvestment grade rated company with a Standard & Poor’s rating of BBB+.INVESTMENT HIGHLIGHTS• Located within the Birmingham MSA• Rare 5% rental escalation in the primary term of the lease• Strong rent to sales ratio• Investment grade company with an S&P Rating of BBB+• Over 150,000 people living within five miles of the property• Rental escalations in the option periods• Unemployment in the Birmingham metro is 6.6%, which is below the national average
  5. 5. PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING PROPERTY OVERVIEWPrice: $3,400,000Cap Rate: 7.54%Rent Schedule: NOI Escalation Date $ 256,521 $ 269,348 6/1/2015 $ 277,428 6/1/2020 (Option 1) $ 285,751 6/1/2025 (Option 2) $ 294,323 6/1/2030 (Option 3) $ 303,153 6/1/2035 (Option 4)Renewal Options: Four 5-YearLease Commencement Date: June 1, 2000Lease Expiration Date: May 31, 2020Tenant: CVSCredit Rating: BBB+Year Built 2000Lease Type: NNRentable Square Feet: 10,125 SFLand Size: 30,927 SF
  9. 9. TENANT PROFILE NET LEASED INVESTMENT OFFERING TENANT PROFILECVS is engaged in the retail drugstore business. As of September 2011, the Company operated 7,304 locations in41 states and Puerto Rico. CVS is the nations second-largest drugstore chain and the third-largest pharmacybenefits manager. As a retail division of CVS Caremark, CVS retail locations sell prescription drugs and a wide varietyof general merchandise including over-the-counter medication, beauty products and cosmetics, film and photofinishing services, seasonal merchandise and convenience foods. CVS also offers healthcare services through theirMinuteClinic locations, most of which are located within their stores. CVS is headquartered in Woonsocket, RhodeIsland and was founded in 1963.Website: www.cvs.comNumber of Locations: 7,304Stock Symbol: CVS : NYSEStandard & Poor’s Rating: BBB+Market Capitalization: $58 BillionEmployees: 80,000
  10. 10. DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING DEMOGRAPHIC COMPARISON REPORTPopulation 3-mi. 5-mi. 7-miTotal Population 30,745 94,256 162,784Total Households 11,311 36,275 62,948IncomeMedian Household Income $32,437 $39,975 $41,944Average Household Income $41,802 $56,008 $58,171
  11. 11. LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING LOCATION OVERVIEW Pleasant Grove is located in Jefferson County, Alabama and suburb of Birmingham. At the 2010 U.S. census the population of Pleasant Grove was 10,110. Jefferson County is the most populous county in Alabama. At the time of the 2010 census, the population of Jefferson County was 658,466. Jefferson County is the principal and most populous county in the Birmingham metropolitan area. Birmingham is the largest city in Alabama. At the time of the 2010 U.S. Census, Birmingham had a population of 212,237 and the Birmingham-Hoover Metropolitan Area had a population of about 1,128,047. The Birmingham MSA contains 25% of Alabama’s total population. The steel industry plays a large role in the local economy of Birmingham. Steel products manufacturers American Cast Iron Pipe Company and McWane are based in the city and several of the nations largest steelmakers, including CMC Steel, U.S. Steel, and Nucor, also have a major presence in Birmingham. In recent years, localsteel companies have announced about $100 million worth of investment in expansions and new plants in andaround the city. Vulcan Materials Company, a major provider of crushed stone, sand, and gravel used inconstruction, is also based in Birmingham. Additionally, Birmingham has grown in the bio-technology andmedical research sectors due to the University of Alabama at Birmingham (UAB) and its adjacent hospital. UAB isnow the areas largest employer and the second largest in Alabama with a workforce of about 18,750. Healthcare services provider HealthSouth, Surgical Care Affiliates and Diagnostic Health Corporation are alsoheadquartered in the city.
  12. 12. CONTACT INFORMATION NET LEASED INVESTMENT OFFERING CONTACT INFORMATION 666 Dundee Road Suite 1801 Northbrook, IL 60062Randy Blankstein Jimmy GoodmanPresident Partner847.562.0003