CVS Ground Lease for Sale | The Boulder Group
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Transcript of CVS Ground Lease for Sale | The Boulder Group
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
CVS (Ground Lease)118 East New Circle Road
Lexington, KY 40505
NET LEASED INVESTMENT OFFERING
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1) Executive Summary
2) Investment Highlights
3) Property Overview
4) Aerial
5) Site Plan
6) Maps
7) TenantProfile
8) Demographic Comparison Report
9) Location Overview
10) Contact Information
TABLE OF CONTENTS
TABLE OF CONTENTS
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TheinformationcontainedinthefollowingOfferingMemorandumisproprietaryandstrictlyconfidential.Itisintendedtobe reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person orentitywithoutthewrittenconsentofTheBoulderGroup.ThisOfferingMemorandumhasbeenpreparedtoprovidesummary,unverifiedinformationtoprospectivepurchasers,andtoestablishonlyapreliminarylevelofinterestinthesubjectproperty.Theinformationcontainedhereinisnotasubstituteforathoroughduediligenceinvestigation.TheBoulderGrouphasnotmadeanyinvestigation,andmakesnowarrantyorrepresentation.Theinformationcontainedin this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group hasnotverified,andwillnotverify,anyoftheinformationcontainedherein,norhasTheBoulderGroupconductedanyinvestigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy orcompletenessoftheinformationprovided.Allpotentialbuyersmusttakeappropriatemeasurestoverifyalloftheinformationsetforthherein.
CONFIDENTIALITY & DISCLAIMER
CONFIDENTITALITY & DISCLAIMER
NET LEASED INVESTMENT OFFERING
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The Boulder Group is pleased to exclusively market for sale a single tenant CVS ground lease property located in Lexington, Kentucky.TheCVSiswelllocatedalongLexington’shighwayloopwhichencompassesthecity.Thebuildingwasrecentlydevelopedin2009atasignalizedintersection.Thereareover20yearsremainingontheCVSgroundleasethatexpiresinJanuary2035andfeaturesrentalescalationsineachrenewaloptionperiod.CVSisapubliclytradedcompany(NYSE:CVS)withamarketcapitalizationinexcessof$89billionandisaninvestmentgraderatedtenant(S&P:BBB+).
The1.86acreCVSpropertyisideallylocatedattheheavilytraffickedsignalizedintersectionofEastNewCircleRoadandNorthLimestoneRoad.This intersectionexperiencestrafficvolumes inexcessof45,000vehiclesperday.NewCircleRoadisLexington’shighwayloopthatroundsthecity.ThepropertyislocatedapproximatelytwomileseastofdowntownLexingtonandthreemileseastoftheUniversityofKentucky(30,000students).TheCVSislocatedlessthan1.5milesfromaccesstoInterstate75/64.ThecorporateheadquartersofLexmarkInternational,aglobalproviderofprintingandimagingproducts,islocatedlessthantwomilesfromtheCVSandemploysover2,600people.FurthercontributingtothestrengthofthisCVSlocationisthatitislocateddownthestreetfromanagingmid-blockWalgreenswithlimitedaccess.TheCVSpropertyisbenefittedbyitsproximitytoWhitakerBankBallpark,homeoftheLexingtonLegendsminorleaguebaseballteam.Theareaisdenselypopulatedwithapproximately80,000peoplelivingwithinathreemileradius.RetailerslocatedintheimmediatevicinityofthepropertyincludeWalmart,Kroger,Staples,PNCBank,Fifth-ThirdBank,andmanyothers.
CVShasover20yearsremainingontheirgroundleasethatexpiresJanuary31,2035.Theleasefeaturessix5-yearre-newaloptionswith5%rentalescalationsineach.CVSisaninvestmentgradetenantwithaStandardandPoor’sratingofBBB+.CVSispubliclytradedontheNewYorkStockExchange(CVS)withamarketcapitalizationinexcessof$89billion.
INVESTMENT HIGHLIGHTS
• Located in the city of Lexington• Long term ground lease with over 20 years remaining•Investmentgradetenant(S&P:BBB+)•PremierelocationalongLexington’shighwayloop(NewCircleRoad)• Rental escalations in each renewal option•Locatedataheavilytraffickedsignalizedintersection(45,000VPD)•CloseproximitytotheworldheadquartersofLexmarkInternational (2,600+employees)•Recentlyconstructed(2009)•Nolandlordresponsibilities
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
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PROPERTY OVERVIEW
PROPERTY OVERVIEW
Price: $3,950,000
CapRate: 4.81%
RentSchedule: NOI Escalation Date
$190,000 $199,500 2/1/35(Option1) $209,475 2/1/40(Option2) $219,949 2/1/45(Option3) $230,946 2/1/50(Option4) $242,494 2/1/55(Option5) $254,618 2/1/60(Option6)
LeaseCommencementDate: October 2, 2009
LeaseExpirationDate: January 31, 2035
Tenant: CVS
CreditRating: BBB+
RentalEscalations: 5% in Each Option
RenewalOptions: Six5-Year
YearBuilt: 2009
LeaseType: Ground Lease
BuildingSize: 13,225SF
LandSize: 1.86acres
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AERIAL
AERIAL
38,000 VPD
E. NEW CIRCLE ROAD
87,000 VPDTO INTERSTATE 75/64
7,000 VPD
N. LIMESTO
NE STREET
WORLD HEADQUARTERS
N
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SITE PLAN
SITE PLAN
N
NORTH LIMESTONE
EAST NEW
CIRCLE ROAD
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MAPS
MAPS
NewCircleRoad
NewCircleRoad
NewCircleRoad
NewCircleRoad
NewCircleRoad
NewCircleRoad
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CVSisengagedintheretaildrugstorebusiness.TheCompanyoperates7,600locationsin45statesandPuertoRico. CVS is the nation’s second-largest drugstore chain and the third-largest pharmacy benefitsmanager.As a retail division of CVS Caremark, CVS retail locations sell prescription drugs and a wide variety of general merchandiseincludingover-the-countermedication,beautyproductsandcosmetics,filmandphotofinishingservices, seasonalmerchandise and convenience foods. CVS also offers healthcare services through theirMinuteClinic locations,mostofwhichare locatedwithin their stores.CVS isheadquartered inWoonsocket,RhodeIslandandwasfoundedin1963.
CVSisapubliclytradedcompanyontheNewYorkStockExchange,CVS,withamarketcapitalizationinexcessof$89.5billion.CVSisaninvestmentgraderatedtenantwithaStandard&Poor’sratingofBBB+.
Website: www.cvs.comNumberofLocations: 7,600StockSymbol: CVS:NYSEStandard&Poor’sRating: BBB+MarketCapitalization: $89billionNumberofEmployees: 130,000
TENANT PROFILE
TENANT PROFILE
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Population 1-mi 3-mi 5-mi
Total Population 10,946 77,333 166,180Total Households 4,538 32,733 70,591
Income
Average Household Income $49,366 $48,871 $57,668
DEMOGRAPHIC COMPARISON REPORT
DEMOGRAPHIC COMPARISON REPORT
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Lexingtonisthesecond-largestcityinKentuckyandthe61stlargestcityintheUnitedStates.Knownasthe“HorseCapitaloftheWorld”,itislocatedintheheartofKentucky’sBluegrassRegion.Lexingtonhad a 2013 US Census estimated population of 308,428 people and a combined statistical area population in excess of 705,000 people. With its abundance of government and technology jobs,Lexingtonhasoneofthenation’smoststableeconomies.Lexingtonhasbeendescribedashaving“afortifiedeconomy,strong inmanufacturing, technologyandentrepreneurialsupport,benefiting fromadiverse,balancedbusinessbase”.LexingtonisthehomeoftheUniversityofKentucky,whichhasanenrollmentofapproximately30,000studentsandemploysover14,000people.Othersignificant
employers includeLexmark,Xerox,Kroger,Amazon.com,LockheedMartin,KentuckyOneHealth,and theFayetteCountyPublicSchools.
The northeast border of Lexington has direct access to Interstate 64 and Interstate 75, however freeways do not run through downtown.Instead,Lexingtonhastwobeltways;NewCircleRoad(inner)andMano’WarBoulevard(outer),andnumerousarterialhighways/U.S.routesradiatefromdowntowntothesurroundingsuburbsandsmalltowns.
www.lexingtonky.gov
LOCATION OVERVIEW
LOCATION OVERVIEW
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CONTACT INFORMATION
CONTACT INFORMATION
666 Dundee Road, Suite 1801Northbrook,IL60062
Randy [email protected]
Jimmy [email protected]