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CVS Pharmacy (Zero Cash Flow) 1130 W Sunset Drive Waukesha, WI 53189 Net Lease Investment Offering

CVS Pharmacy (Zero Cash Flow)

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Page 1: CVS Pharmacy (Zero Cash Flow)

CVS Pharmacy (Zero Cash Flow)1130 W Sunset DriveWaukesha, WI 53189

Net Lease Investment Offering

Page 2: CVS Pharmacy (Zero Cash Flow)

www.bouldergroup.com | Confidential Offering Memorandum

CVS Pharmacy | Waukesha, WI

Offering SummaryExecutive Summary ................................................................... 1

Investment Highlights ............................................................. 2

Property Overview ...................................................................... 3

Loan Abstract .................................................................................4

Location OverviewPhotographs ................................................................................... 5

Location Aerial ..............................................................................6

Site Plan .............................................................................................. 7

Location Map .................................................................................8

Market OverviewDemographics ..............................................................................9

Market Overviews ..................................................................... 10

Tenant SummaryTenant Profile ................................................................................12

Table of Contents

TABLE OF CONTENTS

Page 3: CVS Pharmacy (Zero Cash Flow)

www.bouldergroup.com | Confidential Offering Memorandum| 1 |

CVS Pharmacy | Waukesha, WIExecutive Summary

EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale a single tenant zero cash flow CVS Pharmacy property located within the Milwaukee MSA in Waukesha, Wisconsin. CVS Pharmacy has been in this location since December 2009. There are over 14 years remaining on the primary term of the lease with ten 5-year renewal options.

The 14,000 square foot CVS Pharmacy benefits from its location near a signalized hard corner along West Sunset Drive (15,600 VPD), is a primary east-west thoroughfare with direct access to West Saint Paul Avenue (21,200 VPD) which leads to downtown Waukesha. The property is located within The Shoppes At Fox River Shopping Mall with anchors such as Pick ‘n Save (Kroger), Target, Hobby Lobby, Old Navy, and T.J. Maxx. Other retailers in the shopping center include Buffalo Wild Wings, Chili’s Grill & Bar, Noodles & Company, O’Reilly Auto Parts, Ross, Starbucks, Ulta Beauty, and Verizon. This location is less than 5 miles from the Waukesha County Airport and only 21 miles west of downtown Milwaukee. There are 94,491 people living within 5 miles of the property with an average household income in excess of $90,190 annually.

The CVS Pharmacy lease expires on January 31, 2035 and features ten 5-year renewal options. CVS Pharmacy is the nation’s largest drugstore chain and total prescription revenue and operates 9,900+ locations in 49 states, the District of Columbia, Puerto Rico and Brazil.

Page 4: CVS Pharmacy (Zero Cash Flow)

www.bouldergroup.com | Confidential Offering Memorandum| 2 |

CVS Pharmacy | Waukesha, WI

INVESTMENT HIGHLIGHTS

■ Zero cash flow investment property with low equity requirement

■ Milwaukee MSA – Ranked #39 in the United States for population size

■ CVS Pharmacy is an investment grade rated tenant (S&P: BBB)

■ Over 14 years remain on the primary term of the lease

■ Absolute NNN – No landlord responsibility

■ Located within The Shoppes At Fox River Shopping Mall with anchors such as Pick ‘n Save (Kroger), Target, Hobby Lobby, Old Navy, and T.J. Maxx

■ Other retailers in the shopping center include Buffalo Wild Wings, Chili’s Grill & Bar, Noodles & Company, O’Reilly Auto Parts, Ross, Starbucks, Ulta Beauty, and Verizon

■ Less than 5 miles from the Waukesha County Airport and only 21 miles west of downtown Milwaukee

■ There are 94,491 people living within 5 miles of the property with an average household income in excess of $90,190 annually

■ Submarket vacancy of 3.8%

■ 2.14% population growth expected in the next 5 years

Investment Highlights

Page 5: CVS Pharmacy (Zero Cash Flow)

www.bouldergroup.com | Confidential Offering Memorandum| 3 |

CVS Pharmacy | Waukesha, WI

PROPERTY OVERVIEW

Price: $4,446,577

Equity Requirement: $550,000

Lease Commencement Date: 12/22/2009

Lease Expiration Date: 1/31/2035*

NOI: $341,919.60

Renewal Options: Ten 5-year

Rental Escalations:Opt 1-2: $307,727.64 - Fixed

Opt 3-10: FMV**

Lease Type: NNN – Absolute

Tenant: CVS Pharmacy

Year Built: 2009

Building Size: 14,000 SF

Land Size: 1.58 AC

Property Overview

*Rental holiday from 2/2032-1/2035

** The first two years of the 3rd renewal option will be 101% of fair market rental value as determined by an appraiser. Starting in the 3rd year of the 3rd option rent adjusts to 100% of fair market rental value as determined by an appraiser.

Page 6: CVS Pharmacy (Zero Cash Flow)

www.bouldergroup.com | Confidential Offering Memorandum| 4 |

CVS Pharmacy | Waukesha, WI

LOAN ABSTRACT

Loan Abstract

1st Mortgage – Fully Amortizing

2nd Mortgage

Balance (As of Feb 2021) $2,555,054.78 $1,341,522.24

Interest Rate 7.507% 8.5305%

Start Date 12/22/2009 10/10/2010

Loan Maturity Date 1/10/2032 1/1/2035

Monthly Debt Service $28,493.30 $0

Balloon Balance $0 $4,050,514.35

Page 7: CVS Pharmacy (Zero Cash Flow)

www.bouldergroup.com | Confidential Offering Memorandum| 5 |

CVS Pharmacy | Waukesha, WIPhotographs

Page 8: CVS Pharmacy (Zero Cash Flow)

www.bouldergroup.com | Confidential Offering Memorandum| 6 |

CVS Pharmacy | Waukesha, WILocation Aerial

Page 9: CVS Pharmacy (Zero Cash Flow)

www.bouldergroup.com | Confidential Offering Memorandum| 7 |

CVS Pharmacy | Waukesha, WISite Plan

Page 10: CVS Pharmacy (Zero Cash Flow)

www.bouldergroup.com | Confidential Offering Memorandum| 8 |

CVS Pharmacy | Waukesha, WILocation Map

WaukeshaWaukesha

Page 11: CVS Pharmacy (Zero Cash Flow)

www.bouldergroup.com | Confidential Offering Memorandum| 9 |

CVS Pharmacy | Waukesha, WI

3-Mile 5-Mile 7-Mile

Total Population: 62,840 94,491 143,598

Total Households: 25,083 38,052 57,846

3-Mile 5-Mile 7-Mile

Average Household Income: $62,903 $69,201 $77,392

Median Household Income: $81,991 $90,190 $102,108

Population Income

DEMOGRAPHICS

Demographics

Page 12: CVS Pharmacy (Zero Cash Flow)

www.bouldergroup.com | Confidential Offering Memorandum| 10 |

CVS Pharmacy | Waukesha, WI

City ofWaukesha, Wisconsin

Waukesha is a city in and the county seat of Waukesha County, Wisconsin, United States. It is part of the Milwaukee metropolitan area. Its population was 70,718 at the 2010 census. The city is adjacent to the Village of Waukesha. I-94, U.S. 18, WIS-59, WIS-164, and WIS-318 creates a beltway bypass around Downtown Waukesha.

The original founders of Waukesha consisted entirely of settlers from New England, particularly Connecticut, rural Massachusetts, Vermont, New Hampshire and Maine, as well some from upstate New York who were born to parents who had migrated to that region from New England shortly after the American Revolution. These people were “Yankee” settlers, that is to say they were descended from the English Puritans who settled New England in the 1600s. They were part of a wave of New England farmers who headed west into what was then the wilds of the Northwest Territory during the early 1800s. Most of them arrived as a result of the completion of the Erie Canal as well as the end of the Black Hawk War.

Today, Waukesha’s largest employers include GE Healthcare, Waukesha Memorial Hospital, and Generac Power Systems.

www.waukesha-wi.gov

Market Overview

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CVS Pharmacy | Waukesha, WI

MSA ofMilwaukee, Wisconsin

Milwaukee is the largest city in the state of Wisconsin and the fifth-largest city in the Midwestern United States. The seat of Milwaukee County, it is on Lake Michigan’s western shore. Ranked by its estimated 2018 population, Milwaukee was the 31st largest city in the United States. The city’s estimated population in 2019 was 590,157. Milwaukee is the main cultural and economic center of the Milwaukee metropolitan area which had a population of 2,043,904 in the 2014 census estimate. It is the fourth-most densely populated metropolitan area in the Midwest, surpassed only by Chicago, Minneapolis-St. Paul and Detroit, respectively. Milwaukee is considered a “Gamma -”global city as categorized by the Globalization and World Cities Research Network with a regional GDP of over $105 billion.

The first recorded inhabitants of the Milwaukee area are the Algonquin and Siouan peoples. French Catholic Jesuits, who ministered to Native Americans and fur traders, were the first Europeans to pass through the area. In 1818, the French Canadian explorer Solomon Juneau established a permanent settlement, and in 1846, Juneau’s town combined with two neighboring towns to incorporate as the city of Milwaukee. Large numbers of German immigrants arrived during the late 1840s, after the German revolutions, with Poles and other eastern European immigrants arriving in the following decades. Milwaukee is known for its brewing traditions that began with the German immigrants.

Beginning in the early 21st century, the city has been undergoing its largest construction boom since the 1960s. Major new additions to the city in the past two decades include the Milwaukee Riverwalk, the Wisconsin Center, Miller Park, The Hop (streetcar system), an expansion to the Milwaukee Art Museum, Milwaukee Repertory Theater, and Pier Wisconsin, as well as major renovations to the UW–Milwaukee Panther Arena. The Fiserv Forum opened in late 2018 and hosts sporting events and concerts. Summerfest, the largest music festival in the world, is also a large economic engine and cultural attraction for the city. In 2018, Milwaukee was named “The Coolest City in the Midwest” by Vogue magazine

https://city.milwaukee.gov/home

Market Overview

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CVS Pharmacy | Waukesha, WITenant Overview

CVS Pharmacy

CVS Pharmacy is engaged in the retail drugstore business. The Company operates 9,900+ locations in 49 states, the District of Columbia, Puerto Rico and Brazil. CVS Pharmacy is the nation’s drugstore chain and total prescription revenue. As a retail division of CVS Caremark, CVS Pharmacy retail locations sell prescription drugs and a wide variety of general merchandise including over-the-counter medication, beauty products and cosmetics, film and photo finishing services, seasonal merchandise and convenience foods. CVS Pharmacy also offers healthcare services through their MinuteClinic locations, most of which are located within their stores. CVS is headquartered in Woonsocket, Rhode Island and was founded in 1963.

CVS Pharmacy is a publicly traded company on the New York Stock Exchange (Symbol: CVS) with a market capitalization in excess of $71 billion. CVS is an investment grade rated tenant with a Standard & Poor’s rating of BBB+.

Website: www.cvs.comFounded: 1963Number of Locations: 9,900+Number of Employees: 240,000+Stock Symbol: CVS (New York Stock Exchange)Standard & Poor’s Rating: Investment Grade: BBB+ Headquarters: Woonsocket, Rhode Island

Page 15: CVS Pharmacy (Zero Cash Flow)

John FeeneySenior Vice [email protected]

EXLUSIVELY LISTED BY:

Randy [email protected]

The Boulder Group3520 Lake Avenue, Suite 203Wilmette, Illinois 60091

www.bouldergroup.com

CONFIDENTIALITY & DISCLAIMERThe information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.

This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.