CVS For Sale
There are a number of different types of CVS properties for sale when compared to other freestanding net leased tenants.
CVS property for sale can range in square footage, tenant operations, building type, lease structure and ownership structure. These factors directly impact the value of any CVS for sale and should be considered in addition to the typical valuation factors of real estate quality and lease term remaining before the options. Some CVS for sale are zero cash flow ownership structures where the entire rental payments go to the lender to pay down the debt giving the landlord zero cash flow during the primary lease term. Many times these CVS properties for sale have a rent holiday for CVS at the end of the primary term before the lease options.
These zero cash flow CVS investments are valued completely differently than the typical CVS for sale. Most CVS for sale are fee simple ownership structures; however, there are some CVS for sale that are infill ground lease structures that may have increases in the primary lease term or have larger increases in the renewal option periods versus a typical CVS lease. Another ownership type that is more prevalent with CVS for sale are the leasehold ownership structures. These CVS properties have a ground owner but then also a leasehold position that can become available for sale.
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Another differentiator between CVS properties for sale is the lease structure.
Some CVS for sale are absolute net with zero landlord responsibilities and other CVS for sale are double net with varying landlord responsibilities. Of the double net CVS property for sale some have roof, structure or parking lot responsibilities and some may have reimbursable expenses pertaining to common areas if located within a shopping center. CVS properties all have varying business operations which directly affect store profitability.
CVS properties for sale have a minute clinic or are 24 hour operations which are preferred by many net lease investors. Most CVS stores for sale have store operating hours until 8 PM to 10 PM. Some CVS stores may have beer, wine or liquor sales as well.These are all smaller factors that help investors value CVS for sale especially when stores sales volumes are not available to the landlord. If a CVS for sale has a few of these positive subtle differences over another CVS for sale then it provides comfort to an investor in the likelihood of CVS remaining as a tenant for years to come.
In addition to these factors, two main drivers in pricing of CVS property for sale are the primary lease term remaining before the renewal options and the real estate quality. CVS for sale that have over 15 years of primary lease term before the options may trade 125 basis points lower or more versus other CVS properties that have less than 5 years of lease term remaining. As with most net leased properties, the main value is the credit strength of the tenant and the lease in place but obviously all investors regardless of property type consider the real estate quality.
The difference with CVS for sale is that an investor must understand the backfill rent per square foot and compare that with the likelihood of CVS renewing the lease to see if they are purchasing the risk at a fair CAP rate. The factors mentioned in this article will allow any investor considering a purchase of a CVS investment a way to gauge value between one CVS for sale versus another CVS for sale when real estate quality is even. Due to these varying factors in CVS properties for sale itās important to work with a broker who has a firm understanding of drugstore properties and who has closed a variety of CVS properties for sale.
Does CVS own real estate?
CVS owns some of their real estate that they have either developed internally or purchased through acquiring another pharmacy chain. Over the years, CVS has sold many locations that they developed through sale leasebacks.
How big is the average CVS?
CVS buildings typically range from 9,000 square feet up to 30,000 square feet. Most CVS freestanding buildings are in the 10,000 square feet to 16,000 square feet range. There are some CVS buildings, mostly in California, that are shopping center anchors or supplementary inline space that are over 20,000 square feet.
- Rite Aid recently executed a 5-year lease extension taking the lease out to 10 years with rental increases in the primary term and the options with minimal landlord responsibilities.
- Only national brand drugstore within 3-mile radius and Placer ranks it the busiest Rite Aid of 6 locations in a 15-mile radius.
- 15 years of operating history with strong customer base including the 3,500 employees of the Ford Flat Rock Assembly Plant located just 3 miles south.
- Rite Aid recently executed a 5-year lease extension taking the lease out to 7+ years with rental increases in the primary term and extension options, including a 9.3% increase at the first extension option.
- Only national brand drugstore within 8-mile radius and only Rite Aid location in a 16-mile radius.
- Across from Ā±348,000 square feet of retail space, adjacent to Grande Lake Healthcare Center with 45 beds and 3 miles from Grand Lake JTD Memorial Hospital with 140 beds.
- Rite Aid recently executed a 10-year lease extension with increases in the primary term and extension options, including a 11.7%increase at the first extension option.
- This is an absolute net lease with no landlord responsibilities whatsoever and 20 years of operating history with strong customer base.
- Across from Walgreens making this a strategic location and directly on George Washington Memorial Highway, the only thoroughfare connecting to Norfolk-Virginia Beach-Newport News MSA, one of the strongest military bases in the country.
- Rite Aid recently executed a 10-year lease extension with rental increases in the primary term and extension options, including a 13.3% increase at the first extension option.
- 25 years of operations with strong customer base. No other standalone national retail pharmacies within a 3-mile radius.
- Solid employment base within a 7-mile radius including General Motors, University of Michigan, Hurley Medical Center and Mott Community College.
- Dense Retail & Manufacturing Corridor, 16.2 Million SF of Industrial/Manufacturing Space and 2.4 Million SF of Retail in a 2 Mile Radius
- Furniture Industry/Hosts High Point Market. Largest Furniture Trade Show in the World, Occurs Twice a Year and Draws 140K-180K Visitors Annually
- Thomas Built Bus Headquarters, Leading Manufacturer of School Buses in North America with 1,700 employees (0.7 Mi W)
- High Point University, Located on 430 Acres, Enrolls Ā±6,000 Students and Employs Ā±1,600 Staff (3.5 Mi N)
- Wake Forest Baptist Health High Point Medical Center Full Service Hospital Serving Ā±600,000 Residents, with 351 Beds and 2,100 Employees (4.0 Mi NW)
- Ralph Lauren Call Center & Warehouse Customer Service Center 843,000 SF Facility Employing 2,687 (5.1 Mi NE)
- 15 Year Lease Extension in 2020 Walgreens extended the lease an additional 15 years in 2020 showing commitment to this location
- Exceptionally High Reported Sales Volumes Walgreens is reporting exceptionally high sales volumes at this store
- Target Office Campus & Distribution Nearby Target office campus employs 5,200 in a 330 acre campus and nearby 1,000,000 square foot distribution center
- Affluent Demographic Area Median household income of $96,000 in a 1 mile radius
- 5.7 Million SF of Industrial Space in 5 Mile Radius Several large employers in the area including Medtronic (11,000 employees) and United Health Group (18,000+ employees)
- Absolute NNN lease with no landlord responsibilities whatsoever.
- Just 4 miles north of Ohio State University with over 66,000 students and 29,000 employees.
- Riverside Methodist Hospital is about 3 miles south and has 1,059 beds and 5,800 employees.
- Approximately 366,154 residents within a 5-mile radius.
- New 15 year lease with 5% rental increases every 5 years in the initial term and in the options.
- 20+ year operating history.
- Recent third-party reports will be provided to buyer.
- Absolute net lease with zero landlord responsibilities.
- Across from State Farm Insurance Headquarters with 2.96 Million SF and 15,000 Employees
- OSF St. Joseph Medical Center 1 Mile North with 149 Beds and 1,000 Employees
- Retail Corridor with National Tenants and Ā± 8.7 Million SF of Retail Space in 5-Mi Radius
- Absolute Net Lease with Zero Landlord Responsibilities
- Solid reported Sales with 20+ Year Operating History
- In 2015 Walgreens Agreed to Additional Firm Lease Term to the Original Lease Showing Commitment to this Location.
- Modestly Priced for a Southern California Absolute Net Leased Asset
- Located on One of the Main Intersections in El Centro with Over 44,000 Vehicles Per Day
- Only Walgreens in El Centro and Located at a Strategic Corner with Rite Aid Directly Across the Street Strong Agricultural and Cross-Border Employment/Economic Activity
- Across the Street from Valley Plaza Shopping Center with Tenants such as Sketchers, Grocery Outlet and Starbucks
- Just 1.5 Miles South from Walmart Supercenter, Costco, Lowe's and Target
- El Centro Regional Medical Center is Just 1.5 Miles South with 161 Beds and 700+ Employees
- Attractive assumable financing for a buyer to receive a 8.46% cash on cash return. Interest only financing with 4.84% currently in-place.
- Located at merge of freeways I-69 and I-2. Both interstates have a combined traffic count of over 150,000 vehicles per day.
- Surrounded by national retail tenants, Ā±3.2 million square feet of retail space within 1 mile radius including Valley Vista Mall (651,000 SF) and Bass Pro Shop (150,000 SF).
- Strong cross-border economy with the Free Trade Bridge 13 miles away, a full US Customs facility accommodating 75 commercial trucks simultaneously.
- Strong reported sales volumes.
- Absolute Net Lease with Ā±8.5 years remaining.
- Across from a Rite Aid and there is no other stand-alone national brand drugstore for 11 miles.
- MyMichigan Medical Center with 96 Beds is located across the street.
- Three senior housing communities within one mile of Walgreens.
- Income guaranteed by Walgreens Corporation with over 8,900 locations.
- 20+ year operating history of being a solid performing location with strong front end reported sales volumes that have been trending upwards.
- Absolute net lease with no landlord responsibilities whatsoever.
- Store is dark but will produce over $2,000,000 of income over the remaining 6.5 years of lease term. Lease buyout is available from Walgreens. Landlord is also open to sublease the building.
- Property can be purchased free and clear of debt or by a debt assumption.
- Highly visible Hwy- 18 and just 5 miles E of I-15. Highway 18 is the main thoroughfare through Apple Valley, part of San Bernardino County.
- One block from Apple Valley Town Hall, Civic Center Park, Apple Valley Police Department, the Apple Valley Conference Center and the San Bernardino County Library
- New 15 year lease with 5% rental increases every 5 years in the initial term and in the options.
- 15+ year operating history.
- Recent third-party reports will be provided to buyer.
- Absolute net lease with zero landlord responsibilities.
- Walgreens LabCorp site , one of only 600 locations nationwide.
- Adjacent to Jacksonville State University's 459 acre campus with Ā±9,633 students and Ā±534 staff.
- Jacksonville population has almost doubled since 2000 due to continued growth and development of JSU.
- Located on Highway 21, the main thoroughfare to Jacksonville State University (VPD 30,000).
- New 15 year lease with 5% rental increases every 5 years in the initial term and in the options.
- 20+ year operating history.
- Recent third-party reports will be provided to buyer.
- Absolute net lease with zero landlord responsibilities.
- Large distribution facility presence in the region as Springfield is a connecting city to Dayton and Columbus from Interstate 70.
- Prime Ohio Industrial Parks I & II nearby including 2.17M square feet employing nearly 3,000.
- Limited Competition, Only Walgreens in Talladega, Alabama with the Next Store 15 Miles Away
- One Half Mile to Citizens Baptist Medical Center, 122-Bed Hospital with Over $60 Million Economic Impact on the Community
- Alabama Institute for the Deaf and Blind Located one half mile away and serves over 36,000 K-12 Students and Employs Ā±1,020 People Throughout the State
- Talladega Speedway Tourism Draw, 175,000 Spectator Capacity Track with Economic Impact of $420M and Adds Ā±7,955 Jobs in the Region (14 Miles N)
- 4.9 Million SF Honda Lincoln Assembly Plant, $2 Billion Plant with 4,500 Employees on over 1,350 Acres (16 Miles N)
- Two miles from Fisher Titus Medical Center, a 99-bed hospital with 700 medical staff.
- Only Walgreens serving immediate region, next closest Walgreens is 24 miles away.
- NASA'S Neil Armstrong Test Facility, 6,400 acre area with highly skilled workforce (9 miles north).
- One half mile to Huron County offices, approximately 400 county staff work in the county offices.
- Manufacturing companies in the region, almost 7,000 residents in the city are employed in the manufacturing sector.
- New 15 year lease with 5% rental increases every 5 years in the initial term and in the options.
- 17+ year operating history.
- Recent third-party reports will be provided to buyer.
- Absolute net lease with zero landlord responsibilities.
- Growing Ohio industrial/manufacturing hub with 69 Acre Lee Industrial Park nearby.
- 1.8 miles from recently developed Elwood Aluminum $72M manufacturing plant (150,000 SF).
- New 15 year lease with 5% rental increases every 5 years in the initial term and in the options.
- 16+ year operating history.
- Recent third-party reports will be provided to buyer.
- Absolute net lease with zero landlord responsibilities.
- Adjacent to Mosquito Lake State Park with 3,000,000 visitors annually.
- Large trade radius with limited competition, no other Walgreens, CVS or Rite Aid besides the immediate corner for 5 miles.
- Near Lakeview High School and Middle/Elementary Schools, Ā±2000 combined students and faculty.
- New 15 year lease with 5% rental increases every 5 years in the initial term and in the options.
- Recent third-party reports will be provided to buyer.
- Absolute net lease with zero landlord responsibilities.
- Only Walgreens in a Ā±4 mile radius.
- Across from Kroger anchored center, next closest major grocery store is Ā±6 miles away.
- Former Walgreens building for sale available for owner/user or redevelopment.
- In the heart of Woodruff on Hwy 221/Main Street across from city hall, library and fire department.
- Within 1 mile of Woodruff High, Woodruff Middle and Woodruff Elementary with total of 2,152 students.
- Near Michelinās largest North America distribution center and only BMW assembly facility in the US.
Recently Sold Drugstores
- Located on Hwy-580 one of the main thoroughfares connecting western Tampa to the Tampa International Airport and downtown Tampa.
- Ā Near HCA Florida West Hospital with 515 beds and the Mease Countryside Hospital with 300 beds.
- Just 3.5 miles southeast from Tampa Bay Downs which has approximately 24 million visitors annually.
- Outparcel to Target anchored Rolling Acres Plaza in main retail corridor across from Home Depot.
- Two miles from UF Health The Villages Hospital with 307 beds and approximately 1,161 employees.
- Located just south of The Villages, a collection of retirement neighborhoods in central Florida.
- Located in main retail corridor with 7.9M square feet of retail space within 3 miles.
- Approximately 316,993 residents within a 5-mile radius.
- Zoned RCC in Clackamas County with various development opportunities such as retail, multi-family and office.
- Absolute net lease with zero landlord responsibilities and history of solid sales.
- Ā±7.5 million square feet of retail space and Ā±5.2 million square feet of office space in a 3-mile radius.
- High traffic intersection with Ā±92,000 vehicles per day and over 200,000 residents in a 5-mile radius.
- Chesapeake Regional Medical Center hospital is located Ā±2 miles south with 310 beds and Ā±3,000 employees.
- Dense economic region with 7M square feet of retail space, 3M square feet of office space and 2,600 multi-family units within a 3-mile radius.
- Heavily trafficked intersection with traffic count of over 40,000 vehicles per day.
- Affluent neighborhood with about $140,000 household income within a 1-mile radius.
- Located in an infill area on main retail corridor leading directly into Downtown Baton Rouge.
- Located on signalized SEC of Florida Blvd. & Lobdell Blvd. with a combined traffic count of Ā±77,903 VPD.
- Subject property is an outparcel to a 725,000 SF office park on 5.15 acres.
- Philadelphia MSA location with over 6,100,000 residents and 20 miles SE of downtown Philadelphia.
- East of The Shoppes at Cross keys shopping mall on main thoroughfare of retail corridor.
- Walgreens signed a new lease extension showing commitment to this location.
- Walgreens reports exceptional sales volumes at this store located in the Los Angeles MSA.
- Affluent HH income in a 5-mi radius of Ā±$110k and located at a corner with conbined traffic of Ā±60k VPD.
- Four medical facilities totaling 665 beds are located within a 2.1 mile radius of the subject property.
- 24-Hr store and pharmacy reporting exceptional annual sales with Ā±13 yrs. remaining on an absolute net lease.
- Walgreens closed the Rite Aid across the street shifting much of that customer base to the subject property.
- Adjacent to Atrium Health Hospital (157-beds) full service hospital.
- One of the best performing Rite Aid stores in the Midwest.
- Rite Aid added 10 years to the initial lease term in June of 2015 with six (5 year) options and increases.
- Roof was replaced in 2015 with a 20-year transferable warranty. Building exterior was also renovated.
- Walgreens has 14 years remaining with ten (5-year) options to extend on an absolute net lease.
- Located directly across the street from a CVS making this a strategic corner for Walgreens.
- Atrium Health Hospital is 2.9 mi away with 101 beds and a 24/7 emergency department.
- Walgreens extended lease to a firm 15-yrs in August 2022 showing commitment to this location.
- Walgreens is reporting strong sales at this store that has a 15-year operating history.
- Virginia Beach has a population of Ā±1,500,000 and is the most populous city in VA.
- Near Ā±23.6M SF of retail space and adjacent to 128K SF center anchored by Lion Food who renewed for 10 yrs.
- CVS has agreed to new 15-year lease with 10 (5-year) options with 5% increases in the options.
- Near 44-bed Central Harnett Hospital and only national brand drugstore in Lillington.
- Centrally located between Fayetteville and Raleigh along Highway 210.
- Lillington is the county seat of Harnett County who employ almost 54,000 employees.
- Absolute net lease with 12 years remaining.
- Affluent area with solid incomes of over $110,000 in 1-mile radius.
- Part of the Virginia Beach-Norfolk-Newport News, VA-NC MSA with over 1,800,000 residents.
- South of Naval Station Norfolk with more than 82,000 active duty personnel and 39,000 civilians.
- Affluent infill location 19 mi. from downtown Chicago, avg. HH income is $112,272 and 260,961 residents in a 5-mi radius.
- Recently extended lease, total of 20 yrs. remaining before the 8 (5-year) options, NNN, 2.5% increases in the options.
- Located 1.4 mi. from Advocate Good Samaritan Hospital with 333 beds and over 3,600 doctors and staff on the signalized SEC of Roosevelt Rd. & S. Westmore Meyers Rd. with a combined traffic count of Ā±66,355 VPD.
- Located blocks from the Medical District of Memphis with four major hospitals totaling approximately 6.5 million square feet of medical space within a three mile radius.
- Located 2.5 miles outside of downtown Memphis and is part of the Memphis MSA with a population of over 1,340,000 residents.
- Across the street from a Kroger shopping center and near I-69 with traffic counts of over 124,706 VPD.
- High traffic count of 63,111 cars per day and located 3 miles from Highway 99 with approximately 137,000 cars per day.
- Wells Fargo subleases a portion of the space on an absolute net lease basis for an opportunity of supplemental income.
- Average HH income in a 1-mile radius is $79,529, in a 3-mile radius it is $83,335 and $77,942 in a 5-mile radius with a population of 251,698 in a five-mile radius.
- One of only Ā±400 Walgreens locations with an in-store healthcare clinic.
- Directly across the street from CVS making this a strategic location for both Walgreens and CVS.
- Surrounded by residential neighborhoods and located at Exit 246 of Interstate 10 Ā±12 miles northwest of downtown Tucson. Average household income is $90,069 in a three-mile radius and $83,659 in a five-mile radius and 281,588 in a ten-mile radius.
- Subject property is located in a two-mile radius of three different hospitals.
- Located in a retail hub with approximately 1.8 million square feet of retail space.
- 50 miles north of Tampa along at the central coast Gulf of Mexico.
- Five mile radius population is 82,480 and household income is $60.598.
- Approx. 13 yrs. of term remaining before 10 (5-year) options, double net lease, landlord responsible for parking only.
- The lease allows for five percent (5%) rental increases in each of the ten (five-year) options.
- The lease structure for this asset does not include a rent holiday.
- Located less than 0.2 of a mile from Russell Medical, a not-for-profit acute care hospital.
- Only national chain drugstore in Alexander City, next nearest Walgreens or CVS over 13 miles away.
- 14+ years of term remaining on an absolute net lease with eleven 5-year options to extend.
