Transcript
Page 1: CVS PHARMACY OFFERING MEMORANDUM

CVS PHARMACYNET LEASE INVESTMENT

900 North J.K. Powell BoulevardWhiteville, NC 28472

OFFERING MEMORANDUM

JOE GRAHAMSenior Vice [email protected] Part of the CBRE affiliate network

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OFFERING MEMORANDUM CVS PHARMACY 2

INVESTMENT SUMMARY

TENANT Revco Discount Drug Centers, Inc.

GUARANTOR CVS Corporation

LEASE TYPE NN

LEASE EXPIRATION 1/31/2027

RENT $186,150

LOCATION 900 North J.K. Powell BlvdWhiteville, NC 28472

BUILDING SIZE 10,055 SF

PURCHASE PRICE $3,002,500

CAP RATE 6.2%

LEASE SUMMARY

(6) 5-YEAR OPTIONS

OPTION 1 $191,735

OPTION 2 $197,487

OPTION 3 $203,411

OPTION 4 $209,541

OPTION 5 $215,799

OPTION 6 $222,273

OPTIONS TO EXTEND

LOCATION 900 North J.K. Powell BlvdWhiteville, NC 28472

BUILDING SIZE 10,055 SF

LOT SIZE 1.68 AC

PURCHASE PRICE $3,002,500

CAP RATE 6.2%

*Representative image of CVS location

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OFFERING MEMORANDUM CVS PHARMACY 3

TENANT OVERVIEW

Size matters to CVS Health Corp. (formerly CVS Caremark), the nation’s #2 drugstore chain and a leading pharmacy benefits manager with nearly 65 million plan members. With more than 7,800 retail and specialty drugstores under the CVS, Navarro, and Longs Drug banners, it trails rival Walgreen (8,300) in store count. In addition to its pharmacy operations, the company sells retail items, and runs a prescription management company, Caremark Pharmacy Services. The growing company also offers walk-in health services through its retail network of MinuteClinics that are located in more than 900 CVS stores. In mid-2015, it acquired Omnicare in a $12.7 billion mega deal.

CVS Health operates through two main segments: Pharmacy Services and Retail Pharmacy.

Pharmacy Services, which accounts for nearly 60% of sales, is the company’s prescription benefits management (PBM) division. It dispenses drugs through nearly 30 retail specialty pharmacy stores, more than 10 specialty mail or-

der pharmacies, and four mail order dispensing pharmacies. It also operated more than 85 medical branches, most of which are ambulatory infusion sites, but also include specialist infusion and enteral service facilities. Its other of-ferings include plan design and administration, formulary management, dis-counted drug purchase arrangements, and a slew of other services. All told, the division fills more than 930 million prescriptions per year.

CVS’s better-known Retail Pharmacy segment generates more than 40% of sales, and operates a network of more than 7,800 retail drugstores, more than 970 MinuteClinic locations, and online operations (CVS.com and Na-varro.com). The pharmacy accounts for more than two-thirds of sales in this segment, but the company also sells other “front store” retail merchandise. Additionally, CVS’ fast-growing MinuteClinics, which are primarily located in CVS stores, are staffed by nurse practitioners and physician assistants who treat minor conditions, perform health screenings, and deliver vaccinations; some locations also treat chronic conditions.

*Representative image of CVS location

CVS Pharmacy

Source: http://www.vault.com/company-profiles/retail/cvs-pharmacy,-inc/company-overview.aspx

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OFFERING MEMORANDUM CVS PHARMACY 4

LOCATION MAP

© 2015 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either CBRE Limited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBREneither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient may deem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. TheInformation is protected by copyright and shall be fully enforced.

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CVS PHARMACY

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OFFERING MEMORANDUM CVS PHARMACY 5

SURROUNDING RETAILSURROUNDING RETAIL

Whiteville High School

Columbus County Courthouse

0.3 miles

TO WILMINGTON47.0 miles

Whiteville Primary School

SUBJECT PROPERTY

Columbus Regional Hospital0.7 miles

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OFFERING MEMORANDUM CVS PHARMACY 6

PROPERTY SURVEY

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OFFERING MEMORANDUM CVS PHARMACY 7

DEMOGRAPHIC PROFILE

1 MILE RADIUS 3 MILE RADIUS 5 MILE RADIUS 7 MILE RADIUS

2015 Estimated Population 3,489 7,822 13,181 19,827

2020 Projected Population 3,503 7,906 13,315 20,021

2010 Census Population 3,535 7,871 13,268 19,978

2000 Census Population 3,392 7,331 12,127 19,112

Percent Pop. Change: 2010-2015 -1.3% -0.6% -0.7% -0.8%

Percent Pop. Change: 2015-2020 0.4% 1.1% 1.0% 1.0%

2015 Est. Median Age 42.0 41.9 41.3 41.2

2015 Est. Average Age 42.0 41.6 41.1 40.9

PO

PU

LATI

ON

1 MILE RADIUS 3 MILE RADIUS 5 MILE RADIUS 7 MILE RADIUS

2015 Estimated Households 1,408 3,324 5,213 7,971

2020 Projected Households 1,430 3,392 5,315 8,119

2010 Census Households 1,409 3,309 5,191 7,944

2000 Census Households 1,382 3,094 4,869 7,535

Percent HH Change: 2010-2015 0.0% 0.5% 0.4% 0.3%

Percent HH Change: 2015-2020 1.5% 2.0% 2.0% 1.9%

2015 Est. Average HH Size 2.2 2.3 2.3 2.4

HO

US

EH

OLD

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1 MILE RADIUS 3 MILE RADIUS 5 MILE RADIUS 7 MILE RADIUS

2015 Est. Average HH Income $44,330 $44,512 $44,812 $45,951

2020 Proj. Average HH Income $44,938 $45,195 $45,488 $47,172

2000 Census Avg. HH Income $45,932 $45,304 $40,978 $38,934

2015 Est. Median HH Income $29,907 $30,606 $31,513 $32,591

2015 Per Capita Income $17,895 $18,916 $17,723 $18,474

INC

OM

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Page 8: CVS PHARMACY OFFERING MEMORANDUM

JOE GRAHAM, CCIMSenior Vice President

[email protected]

For more information, please contact:

© 2015 CB Richard Ellis-Raleigh, LLC, a Delaware limited liability company. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

*Representative image of CVS location

OFFERING MEMORANDUM

CVS PHARMACYNET LEASE INVESTMENT

900 North J.K. Powell BoulevardWhiteville, NC 28472


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