CVS/PHARMACY GROUND LEASE

Transcription

1 Investment Property Offering $4,636,364 CVS/PHARMACY GROUND LEASE Hayes Road and Hall Road, Charter Township of Clinton, MI Presented By: Kase Abusharkh DRE# Abigail Circle Danville, CA (925) Offering Highlights 100% Fee Simple Ground Lease New 25 Year Absolute Net Lease S&P Rated BBB+ Investment Grade Credit Scheduled 10% Rental Increases 01/12/2012 All Sperry Van Ness Offices Independently Owned and Operated.

2 Table of Contents 1 Financial Analysis Executive Summary Investment Information Rent Roll Summary 2 Additional Information

3 All Sperry Van Ness Offices Independently Owned and Operated. 1. Financial Analysis

4 Executive Summary CVS/PHARMACY GROUND LEASE Hayes Road and Hall Road Charter Township of Clinton, MI List Price $4,636,364 Price Per GLA $71.01 Price per S.F. $ CAP 5.50 % GLA 65,295 Building S.F. 13,013 Percent Occupied % Land Acres 1.50 New CVS Ground Lease Cross Street Hall Road Market Detroit MSA Sub Market Sterling Heights Year Built 2012 Building Class A Location Class A No. of Buildings 1 HVAC Yes Corner Yes No.Tenants 1 No. Stories 1 Property Descriptions Construction New Class A quality improvements slated for completion Summer Parking The asset is adequately parked. Ingress/Egress The property provides for excellent ingress and egress. Major Tenants CVS/pharmacy (commonly called CVS) is the second largest pharmacy chain in the United States with approximately 7,027 stores in 45 states and Puerto Rico. As the retail pharmacy division of CVS Caremark, it sells prescription drugs and a wide assortment of general merchandise, including over-the-counter drugs, beauty products and cosmetics, film and photo finishing services, seasonal merchandise, greeting cards and convenience foods through their CVS/pharmacy and Longs Drugs retail stores and online through CVS.com. It also provides healthcare services through its MinuteClinic healthcare clinics as well as their Diabetes Care Centers. Most of these clinics are located within CVS stores. The company's stock is traded on the New York Stock Exchange under the ticker CVS. CVS Caremark maintains a Standard & Poor's BBB+ investment grade credit rating.

5 Area The Charter Township of Clinton, usually referred to as Clinton Township, is a charter township of Macomb County, Michigan. It is a part of Metropolitan Detroit. As of the 2010 census, the township had a total population of 96,796, and is Michigan's most populous township. It is also the tenth largest municipality in Michigan. The site sits close to the adjacent Sterling Heights, MI, also in Macomb County. Sterling Heights is one of Detroit's core suburbs. As of the 2010 census, the city had a total population of 129,699. It is the second largest suburb in Metro Detroit, and the fourth largest city in Michigan. Property This is a rare opportunity to purchase a 25 year absolute net leased CVS/pharmacy ground lease with scheduled 10% rental increases every 10 years, years 1-20, 10% increase years 21-25, and 10% increases in each of the 10-5 year option periods. This is a relocation of an existing store with established sales history and customer base.

6 Investment Information CVS/PHARMACY GROUND LEASE Hayes Road and Hall Road Charter Township of Clinton, MI Listing Price $4,636, CAP 5.50 % 2022 CAP 6.05 % Price Per S.F. $ Price Per GLA $71.01 GLA 65,295 Building S.F. 13,013 Percent Occupied % Land Acres Net Operating Income $255,000 $280,500 $308,550 $339,405 Highlights 100% Fee Simple Ground Lease New 25 Year Absolute Net Lease S&P Rated BBB+ Investment Grade Credit Scheduled 10% Rental Increases

7 Rent Roll Summary Tenant Name Start Date End Date Occupied S.F. Annual Rent S.F. Occupied Rent % of Total Escalations / Options / Comments CVS/pharmacy 6/1/2012 5/31/ ,295 $3.91 $255, % Rent increases 10% every 10 years in years 1-20, 10% years and 10% in each of the 10-5 year option periods. Tenant has 10-5 year options to renew. Total 65,295 $255, % All Sperry Van Ness Offices Independently Owned and Operated.

8 2. Additional Information All Sperry Van Ness Offices Independently Owned and Operated.

9 Tenant Overview CVS Caremark Corporation (NYSE: CVS) is an integrated pharmacy services provider, combining a United States pharmaceutical services company with a U.S. pharmacy chain. CVS Caremark provides pharmacy services through its approximately 7,027 CVS/pharmacy stores; its pharmacy benefit management, mail order and specialty pharmacy division, Caremark Pharmacy Services; its retail- based health clinic subsidiary, MinuteClinic; and its online pharmacy, CVS.com. CVS Caremark Corporation is chartered in Delaware, and is headquartered in Woonsocket, Rhode Island, where its pharmacy business is also headquartered. The pharmacy services business is headquartered in Nashville, Tennessee. The company was #19 in the 2009 Fortune 500 list of the largest companies in the US, and is the largest company that has operations solely in the United States. CVS Caremark has two operating segments: CVS/pharmacy and Caremark Pharmacy Services. CVS/pharmacy is one of the nation's largest retail pharmacy chains, with approximately 7,027 stores across 45 states. With more than 40 years in the retail pharmacy industry, CVS/pharmacy generates over 68% of its revenue from the pharmacy business. CVS/pharmacy fills more than one of every seven retail prescriptions in America, and one of every five in their own markets. Their ExtraCare program boasts over 50 million cardholders, making it the largest retail loyalty program in the country. Caremark Pharmacy Services, one of the nation's leading pharmacy benefit management (PBM) companies, provides comprehensive prescription benefit management services to over 2,000 health plans, including corporations, managed care organizations, insurance companies, unions and government entities. With net revenue of approximately $37 billion (including approximately $5.8 billion of retail copayments) in 2006, they are also one of the largest PBMs. Caremark operates a national retail pharmacy network with over 60,000 participating pharmacies, as well as 11 mail service pharmacies. Its call centers have been recognized for customer satisfaction excellence by J.D. Power & Associates (J.D. Power & Associates is also a client of Caremark). Caremark operates over 70 specialty pharmacies, which have been accredited by the Joint Commission. The National Committee for Quality Assurance has also accredited its disease management programs through Accordant. CVS had 2009 revenues of over $98 billion. The company's stock is traded on the New York Stock Exchange under the ticker CVS. CVS Caremark maintains a Standard & Poor's BBB+ investment grade credit rating. For more detailed information, please visit the Company s website at

10 Aerial Photo All Sperry Van Ness Offices Independently Owned and Operated.

11 Location Map All Sperry Van Ness Offices Independently Owned and Operated.