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Offering Memorandum CVS Pharmacy Minneola, Florida

Offering Memorandum CVS Pharmacy...CVS/Pharmacy is currently the largest pharmacy chain in the United States by number of locations and total prescription revenue. As the retail pharmacy

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Page 1: Offering Memorandum CVS Pharmacy...CVS/Pharmacy is currently the largest pharmacy chain in the United States by number of locations and total prescription revenue. As the retail pharmacy

Offering Memorandum

CVS PharmacyMinneola, Florida

Page 2: Offering Memorandum CVS Pharmacy...CVS/Pharmacy is currently the largest pharmacy chain in the United States by number of locations and total prescription revenue. As the retail pharmacy

TABLE OF CONTENTS

• THE OFFERING

• INVESTMENT HIGHLIGHTS

• TENANT OVERVIEW

• AREA OVERVIEW

Andrew Chason, CCIMFirst Vice [email protected] MOB FAX License: AL: 000079317-0

Marcus & Millichap208 North Greeno Rd., Suite B2Fairhope, AL 36532www.marcusmillichap.com

EXCLUSIVELY LISTED BY

(251) 929-7254

(251) 929-7310(205) 965-8250

CVS Pharmacy | Minneola, FL | 2

Page 3: Offering Memorandum CVS Pharmacy...CVS/Pharmacy is currently the largest pharmacy chain in the United States by number of locations and total prescription revenue. As the retail pharmacy

OVERVIEWPROPERTY ADDRESS 814 U.S. HIGHWAY 27 MINNEOLA, FLORIDA

PARCEL ID 072226000200000800

BUILDING SIZE ±14,396 SF

LOT SIZE ±2.09 ACRES

PARKING 85 SPACES

YEAR BUILT 2007

OCCUPANCY 100%

OWNERSHIP LEASED FEE (GROUND LEASE)

RENT ROLL

TENANT LAND SF ANNUAL RENT RENT/SF RENTCOMMENCEMENT LEASE EXPIRATION OPTIONS CHANGES ON CHANGES TO

SCP 2007-C27-510, LLC. ±91,040 SF $141,750 $1.55 6/16/2007 1/31/2033 Six, Five-Year

Option 1Option2Option 3Option 4Option 5Option 6

$148,838$156,279$164,093$172,298$180,913$189,959

Marcus & Millichap is pleased to exclusively offer for sale the CVS/Pharmacy Ground Lease located at 814 U.S. Highway 27 in Minneola, Florida. The site is ±2.09 acres and is located on the northwest corner of U.S. Highway 27 and Lake Minneola Shores (561A). Combined traffic counts at this intersection exceed 38,000 cars per day. The leasehold improvements were constructed in 2007 and consist of a 14,396-square-foot CVS prototype.

CVS signed a 25-year ground lease which commenced in January of 2007 and is set to expire in January of 2033. The lease is absolute NNN in nature with no landlord responsibilities. The rent is fixed during the base term of the lease and features 5 percent rent increases in each of the six, five-year options to renew.

THE OFFERING

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.

PRICING OVERVIEWPURCHASE PRICE $2,700,000

CAP RATE 5.25%

NOI $141,750

PROFORMA

BASE RENTCVS GROUND RENT $141,750

NET OPERATING INCOME $141,750

CVS Pharmacy | Minneola, FL | 3

Page 4: Offering Memorandum CVS Pharmacy...CVS/Pharmacy is currently the largest pharmacy chain in the United States by number of locations and total prescription revenue. As the retail pharmacy

Actual Site

SITE PHOTO

CVS Pharmacy | Minneola, FL | 4This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.

Page 5: Offering Memorandum CVS Pharmacy...CVS/Pharmacy is currently the largest pharmacy chain in the United States by number of locations and total prescription revenue. As the retail pharmacy

Actual Site

SITE PHOTO

CVS Pharmacy | Minneola, FL | 5This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.

Page 6: Offering Memorandum CVS Pharmacy...CVS/Pharmacy is currently the largest pharmacy chain in the United States by number of locations and total prescription revenue. As the retail pharmacy

Actual Site

SITE PHOTO

CVS Pharmacy | Minneola, FL | 6This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.

Page 7: Offering Memorandum CVS Pharmacy...CVS/Pharmacy is currently the largest pharmacy chain in the United States by number of locations and total prescription revenue. As the retail pharmacy

MARKET AERIAL

CVS Pharmacy | Minneola, FL | 7This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.

Page 8: Offering Memorandum CVS Pharmacy...CVS/Pharmacy is currently the largest pharmacy chain in the United States by number of locations and total prescription revenue. As the retail pharmacy

CVS Health Corporation, founded in 1963 and headquarterd in Woonsocket, Rhode Island, with its subsidiaries, provides pharmacy health care services. Operating through Pharmacy Services and Retail/LTC segments. Pharmacy Services segment offers pharmacy benefit management solutions, such as plan design and administration, prescription management systems, clinical services, medical pharmacy management services and more.

CVS/Pharmacy is currently the largest pharmacy chain in the United States by number of locations and total prescription revenue. As the retail pharmacy division of CVS Health, it ranks as the seventh largest United States corporation according to Fortune 500.

OWNERSHIP PUBLIC

REVENUE $185 BILLION

HEADQUARTERED WOONSOCKET, RHODE ISLAND

YEAR FOUNDED 1963

WEBSITE WWW.CVS.COM

TENANT OVERVIEW

CVS

CVS Pharmacy | Minneola, FL | 8This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.

Page 9: Offering Memorandum CVS Pharmacy...CVS/Pharmacy is currently the largest pharmacy chain in the United States by number of locations and total prescription revenue. As the retail pharmacy

LEASE SUMMARY

CVS Pharmacy | Minneola, FL | 9

TENANT LEGAL NAME SCP 2007-C27-510, LLC

GUARANTOR CVS Caremark Corporation

LEASE COMMENCEMENT January 12, 2007

RENT COMMENCEMENT June 16, 2007

LEASE EXPIRATION January 31, 2033

BASE TERM 25 Years

TERM REMAINING 14+ Years

RENT ESCALATIONS 5 Percent in Each Option

EXTENSION OPTIONS Six, Five-Year Options

TAXES Tenant pays all taxes directly to taxing authority.

INSURANCE Tenant shall maintain at its expense general liability insurance in the amount of $2,000,000. Tenant shall also maintain an all-risk insurance policy for all buildings and improvements.

UTILITIES Tenant pays all utilities.

LANDLORD RESPONSIBILITIES None

TENANT RESPONSIBILITIES Tenant, at its own cost and expense, shall keep and maintain the premises in good repair and first class condition.

RIGHT OF FIRST OPTION Tenant shall have thirty (30) days from receipt of the sales notice to exercise its ROFO.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.

Page 10: Offering Memorandum CVS Pharmacy...CVS/Pharmacy is currently the largest pharmacy chain in the United States by number of locations and total prescription revenue. As the retail pharmacy

AREA OVERVIEW

MINNEOLA, FLORIDA

Part of the Orlando–Kissimmee–Sanford MSA, the city of Minneola, meaning “much water”, is home to picturesque trails leading to the local waters of Lake County, Florida. Ranked safest place to live in Lake County and Central Florida’s mild winters contribute to Minneola’s appeal, making it a very desirable place to reside.

Enormous expansion efforts, both residential and commercial, continue to yield considerable population growth. Main corridor, Highway 27 intersects the city, providing convenient access to multiple bordering cities. Offering a country setting with the convenience of an International Airport, multiple tourist attractions and a major metropolitan city only a short distance away.

CVS Pharmacy | Minneola, FL | 10This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.

Page 11: Offering Memorandum CVS Pharmacy...CVS/Pharmacy is currently the largest pharmacy chain in the United States by number of locations and total prescription revenue. As the retail pharmacy

REGIONAL MAP

CVS Pharmacy | Minneola, FL | 11This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.

Page 12: Offering Memorandum CVS Pharmacy...CVS/Pharmacy is currently the largest pharmacy chain in the United States by number of locations and total prescription revenue. As the retail pharmacy

LOCAL MAP

CVS Pharmacy | Minneola, FL | 12This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.

Page 13: Offering Memorandum CVS Pharmacy...CVS/Pharmacy is currently the largest pharmacy chain in the United States by number of locations and total prescription revenue. As the retail pharmacy

PROPERTY NAME

MARKETING TEAM

CVS GROUND LEASE

DEMOGRAPHICS

Source: © 2017 Experian

Created on August 2018

POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection

Total Population 6,528 32,054 68,163

2017 Estimate

Total Population 5,211 26,511 56,737

2010 Census

Total Population 4,637 23,929 49,914

2000 Census

Total Population 2,777 13,235 25,429

Current Daytime Population

2017 Estimate 4,358 26,717 52,822

HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection

Total Households 2,264 11,204 24,424

2017 Estimate

Total Households 1,780 9,045 20,080

Average (Mean) Household Size 2.88 2.71 2.72

2010 Census

Total Households 1,597 8,254 17,808

2000 Census

Total Households 987 4,830 9,222

Occupied Units

2022 Projection 2,264 11,204 24,424

2017 Estimate 1,894 9,762 21,854

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate

$150,000 or More 4.40% 4.63% 6.02%

$100,000 - $149,000 14.64% 13.42% 13.99%

$75,000 - $99,999 15.53% 14.64% 15.55%

$50,000 - $74,999 24.42% 22.34% 22.70%

$35,000 - $49,999 15.74% 14.43% 14.12%

Under $35,000 25.27% 30.54% 27.61%

Average Household Income $70,305 $66,792 $71,391

Median Household Income $58,304 $55,443 $58,540

Per Capita Income $24,018 $22,952 $25,605

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure $66,040 $63,568 $65,854

Consumer Expenditure Top 10Categories

Housing $17,690 $17,011 $17,584

Transportation $13,940 $13,198 $13,596

Shelter $10,305 $9,888 $10,178

Food $6,896 $6,572 $6,775

Personal Insurance and Pensions $5,646 $5,361 $5,698

Health Care $4,093 $4,030 $4,295

Utilities $3,819 $3,670 $3,788

Entertainment $3,242 $3,192 $3,459

Apparel $2,248 $2,031 $2,083Household Furnishings and Equipment $1,726 $1,642 $1,734

POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age

2017 Estimate Total Population 5,211 26,511 56,737

Under 20 31.09% 26.66% 25.95%

20 to 34 Years 17.89% 19.69% 18.45%

35 to 39 Years 7.47% 6.73% 6.52%

40 to 49 Years 14.85% 14.33% 14.72%

50 to 64 Years 17.49% 17.87% 19.17%

Age 65+ 11.19% 14.71% 15.19%

Median Age 35.70 37.73 39.33

Population 25+ by Education Level

2017 Estimate Population Age 25+ 3,305 17,739 38,480

Elementary (0-8) 2.44% 2.64% 2.56%

Some High School (9-11) 4.67% 5.68% 5.81%

High School Graduate (12) 30.04% 28.81% 28.92%

Some College (13-15) 23.39% 24.95% 25.01%

Associate Degree Only 12.74% 11.87% 11.21%

Bachelors Degree Only 17.98% 17.00% 17.71%

Graduate Degree 7.93% 7.87% 7.93%

CVS Pharmacy | Minneola, FL | 13

Page 14: Offering Memorandum CVS Pharmacy...CVS/Pharmacy is currently the largest pharmacy chain in the United States by number of locations and total prescription revenue. As the retail pharmacy

IncomeIn 2017, the median household income for your selected geography is$58,304, compare this to the US average which is currently $56,286.The median household income for your area has changed by 12.78%since 2000. It is estimated that the median household income in yourarea will be $64,654 five years from now, which represents a changeof 10.89% from the current year.

The current year per capita income in your area is $24,018, comparethis to the US average, which is $30,982. The current year averagehousehold income in your area is $70,305, compare this to the USaverage which is $81,217.

PopulationIn 2017, the population in your selected geography is 5,211. Thepopulation has changed by 87.65% since 2000. It is estimated thatthe population in your area will be 6,528.00 five years from now,which represents a change of 25.27% from the current year. Thecurrent population is 48.05% male and 51.95% female. The medianage of the population in your area is 35.70, compare this to the USaverage which is 37.83. The population density in your area is1,660.24 people per square mile.

HouseholdsThere are currently 1,780 households in your selected geography. Thenumber of households has changed by 80.34% since 2000. It isestimated that the number of households in your area will be 2,264five years from now, which represents a change of 27.19% from thecurrent year. The average household size in your area is 2.88 persons.

EmploymentIn 2017, there are 1,033 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that63.35% of employees are employed in white-collar occupations inthis geography, and 36.65% are employed in blue-collar occupations.In 2017, unemployment in this area is 4.39%. In 2000, the averagetime traveled to work was 31.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows:72.55% White, 12.47% Black, 0.06% Native American and 3.08%Asian/Pacific Islander. Compare these to US averages which are:70.42% White, 12.85% Black, 0.19% Native American and 5.53%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 23.78% of the current yearpopulation in your selected area. Compare this to the US average of17.88%.

PROPERTY NAME

MARKETING TEAM

CVS GROUND LEASE

HousingThe median housing value in your area was $191,313 in 2017,compare this to the US average of $193,953. In 2000, there were 837owner occupied housing units in your area and there were 150 renteroccupied housing units in your area. The median rent at the time was$583.

Source: © 2017 Experian

DEMOGRAPHICS

CVS Pharmacy | Minneola, FL | 14

Page 15: Offering Memorandum CVS Pharmacy...CVS/Pharmacy is currently the largest pharmacy chain in the United States by number of locations and total prescription revenue. As the retail pharmacy

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap RealEstate Investment Services of Florida, Inc. ("Marcus & Millichap") and should not be made available to any other person or entity without the written consent of Marcus & Millichap. ThisMarketing Brochure 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. Marcus & Millichap has not made any investigation, and makes no warranty or representation,with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements,the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or thefinancial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this MarketingBrochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor hasMarcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the informationprovided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real EstateInvestment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo orname is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

CVS GROUND LEASEMinneola, FLACT ID Z0870014

Ryan NeeBroker of RecordTel: (954) 245-3400Email: [email protected]: FL BK3154667

CVS Pharmacy | Minneola, FL | 15

Page 16: Offering Memorandum CVS Pharmacy...CVS/Pharmacy is currently the largest pharmacy chain in the United States by number of locations and total prescription revenue. As the retail pharmacy

N E T L E A S E D D I S C L A I M E R

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and willnot verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee,warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information beforecompleting any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus &Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performanceof this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine toyour satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legaland financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is nota guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set basedon a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and anyguarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or inwhole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conductinghis/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating areplacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potentialreplacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost,expense, or liability arising out of your investigation and/or purchase of this net leased property.

CVS Pharmacy | Minneola, FL | 16