cvs/pharmacy - cushman & wakefield of san diego, inc....8 cushman & wakefield cvs/pharmacy ....

OFFERING MEMORANDUM

CVS/pharmacy1100 FLOWER MOUND ROAD | DALLAS (FLOWER MOUND) . TEXAS

NATIONAL NET LEASE GROUP | OFFERING MEMORANDUM

BRANDON PRICECapital Markets858 558 [email protected]

BLAKE TAGMYERDirector858 558 [email protected]

INVESTMENT SUMMARY

TENANT OVERVIEW

MARKET OVERVIEW

010203

Listed in conjunction with Texas Broker of Record: Ran Holman, Managing Principal Cushman & Wakefield of Texas, Inc.

TRAVIS TRAUTVETTERExecutive Managing Director858 558 [email protected]

CVS/pharmacy . DALLAS (FLOWER MOUND) TEXAS 5CUSHMAN & WAKEFIELD4

THE SUBJECT PROPERT Y IS A 13,013 SQUARE FOOT CVS LOCATED IN FLOWER MOUND, TE XAS. CVS SIGNED A 25 YEAR LEASE WHICH COMMENCED IN 2006, LEAVING APPROXIMATELY 15 YEARS REMAINING ON THE TENANT’S INITIAL LEASE TERM.

The lease is absolute net providing for zero landlord responsibilities. CVS, which is publicly traded on the New York Stock Exchange under the ticker symbol “CVS”, has a current BBB+ credit rating by Standard & Poor’s and reported annual revenues in excess of $177 billion in 2016.

Located at the signalized intersection of Flower Mound Road and Morriss Road, the subject property is positioned directly across from The Pines of Flower Mound, a 139,000 square foot retail center anchored by Kroger which recently underwent a full renovation in 2014. The immediate area is undergoing continued development with a new 37,600 square foot retail center developed in 2016 directly across Morriss Road from the CVS. Over half of the spaces in that center were leased prior to the start of construction. CVS is accessible via both of the traffic corridors which experience combined daily traffic counts in excess of 38,500 vehicles. This densely populated area is home to over 95,000 residents within a three mile radius and boasts an average household income in excess of $133,000 within a one mile radius, a figure which is over 170 percent above the national average.

INVESTMENTOFFERING


INVESTMENTHIGHLIGHTS

A B S O L U T E NE T L E A S E S T R U C T UR E Zero landlord responsibilities for operating or capital expenses

C O R P O R AT E B AC K E D LO N G T E R M L E A S ECVS signed a 25 year lease in 2006 leaving approximately 15 years remaining on the initial lease term

B B B + C R E D I T R AT IN G BY S TA NDA R D & P O O R ’S Tenant is publicly traded on the NYSE and reported annual revenues in excess of $177 billion in 2016

E X T R E ME LY A F F L UE N T C O MMUNI T YAverage household income within a one mile radius exceeds $133,000

S T R O N G R E TA IL C O R RID O R W I T H C O N T INUE D D E V E LO P ME N TDirectly across from 139,000 square foot Kroger anchored center and 37,600 square foot newly developed center in 2016

SI GN A L IZ E D H A R D C O R NE R LO C AT I O N W I T H D RI V E-T HR U A ND MINU T E C L INI C Combined daily traffic counts exceed 38,500 vehicles

D E N S E LY P O P U L AT E D A R E A O F D F W Over 95,000 residents within three mile radius


Note: Tenant's lease contains a three year rent holiday at the end of the initial lease term. Seller is offering a credit to Buyer at closing to offset rent holiday. Calculation above is reflective of the NPV of rent holiday at a 6.00% discount rate.

FINANCIALHIGHLIGHTS

13,013 SF RENTABLE BUILDING AREA

$6,231,219 EFFECTIVE PRICE

15 YEARS LEASE TERM REMAINING

5.96% EFFECTIVE CAP RATE

L E AS E T Y P E Absolute Net

L E AS E GUA R A N TO R Corporate Guarantee

OW N E R S H I P T Y P E Fee Simple

Y E A R B U I LT 2006

L E AS E C O M M E N C E M E N T 12/1/2006

L E AS E E X P I R AT I O N 1/31/2032

LOT S I Z E 2.951 Acres +/-

R E N E WA L O P T I O N S Ten 5-Year Options

R E N T I N C R E AS E S Between Options

BASE RENT SCHEDULEP E R I O D A N N UA L BAS E R E N T M O N T H LY BAS E R E N T

Current - 1/31/2032 $371,487.24 $30,957.27

Option 1 (5 Years) $334,338.60 $27,861.55

Option 2 (5 Years) $334,338.60 $27,861.55

Options 3 - 10 Fair Market Value Fair Market Value

P R I C E $6,754,313

CA P R AT E 5.50%

N P V O F R E N T H O L I DAY $523,095

E F F EC T I V E P R I C E $6,231,219

E F F EC T I V E CA P R AT E 5.96%


PORTFOLIOOVERVIEW

AS S E TS A R E AVA I L A B L E I N D I V I D UA L LY O R AS A P O R T FO L I O

P O R T F O L I O

LOCATION REMAINING LEASE TERM PRICE CAP RATE

01 | Buffalo NY 15 Years $8,547,789 6.02%

02 | Phoenix AZ 15 Years $7,624,002 6.02%

03 | Austin TX 15 Years $7,167,168 6.08%

04 | Winchester VA 15 Years $6,862,679 6.14%

05 | Columbus IN 15 Years $6,861,271 6.20%

06 | McDonough GA 16 Years $6,322,265 6.11%

07 | Flower Mound TX 15 Years $6,231,219 5.96%

08 | Phoenix AZ 15 Years $4,858,495 5.96%

09 | Kansas City MO 15 Years $4,856,944 6.14%

10 | Roanoke VA 15 Years $4,636,319 6.14%

11 | Silsbee TX 15 Years $4,355,776 6.32%

12 | Castle Hayne NC 16 Years $4,161,111 6.32%

13 | Abilene TX 15 Years $4,033,660 6.14%

14 | Green Bay WI 15 Years $3,906,547 6.14%

15 | Blakely GA 15 Years $2,813,777 6.55%

Note: Pricing reflected above is based on effective price and cap rates accounting for the NPV credit.

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www.cvshealth.us

CVS HEALTH CORPORATION, TOGETHER WITH ITS SUBSIDIARIES, PROVIDES INTEGRATED PHARMACY HEALTH CARE SERVICES.

It operates through Pharmacy Services and Retail/LTC segments. The Pharmacy Services segment offers pharmacy benefit management solutions, such as plan design and administration, formulary management, Medicare Part D services, mail order and specialty pharmacy services, retail pharmacy network management services, prescription management systems, clinical services, disease management programs, and medical pharmacy management services. This segment serves employers, insurance companies, unions, government employee groups, health plans, managed Medicaid plans and plans offered on public and private exchanges, other sponsors of health benefit plans, and individuals under the CVS Caremark Pharmacy Services, Caremark, CVS Caremark, CarePlus CVS Pharmacy, CVS Specialty, Accordant, SilverScript, NovoLogix, Coram, Navarro Health Services, and Advanced Care Scripts names.

As of December 31, 2015, it operated 24 retail specialty pharmacy stores, 11 specialty mail order pharmacies and 5 mail order dispensing pharmacies, and 83 branches for infusion and enteral services. The Retail/LTC segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, personal care products, convenience foods, seasonal merchandise, and greeting cards, as well as provides photo finishing services. It operates 9,655 retail stores in 49 states, the District of Columbia, Puerto Rico, and Brazil primarily under the CVS Pharmacy, CVS, Longs Drugs, Navarro Discount Pharmacy, and Drogaria Onofre names; online retail pharmacy Websites; and 32 onsite pharmacy stores, long-term care pharmacy operations, and retail health care clinics.

The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was founded in 1892 and is headquartered in Woonsocket, Rhode Island.

TENANTOVERVIEW

OWNERSHIPPublic

TICKER SYMBOLCVS (NYSE)

CREDIT RATINGBaa1 (Moodys)

# OF EMPLOYEES155,000

$82.43BILLION

M A R K E T C A P

$177.53BILLION

R E V E N U E


CENTRALLY LOCATED IN NORTH TE XAS NEAR THE DALL AS-FORT WORTH METROPLE X, FLOWER MOUND IS A FAMILY-ORIENTED COMMUNIT Y THAT PRIDES ITSELF ON MAINTAINING A SMALL TOWN ATMOSPHERE WHILE EMBRACING AND FOSTERING A DYNAMIC ECONOMIC DEVELOPMENT ENVIRONMENT.

Flower Mound’s strategic central location, low tax rate, excellent school system, and unsurpassed quality of life continue to garner national recognition and highlight the community as a premier business destination. The close proximity to DFW International and Alliance Airports has greatly influenced economic conditions in Flower Mound. Development and business activity is thriving.

More than 1,000 businesses, including many major employers and national firms, call Flower Mound home and are supported by an active Chamber of Commerce.

MARKETOVERVIEW


Flower Mound is located primarily in southern Denton County, approximately 28 miles northwest of downtown Dallas, 25 miles northeast of Fort Worth, and three miles north of the Dallas / Fort Worth (DFW) International Airport.

The Town is a master-planned community that encompasses approximately 46 square miles with a population of approximately 69,062. Flower Mound ranks No. 2 in the nation on CNN Money Magazine's 2014 "Best places to find a new job" list, No. 12 nationally and No. 1 in the State of Texas on CNN Money Magazine's "Top earning towns" list, and No. 9 in the nation and No. 1 in Texas on 24/7 Wall St.'s "Best places to live" rankings. With more than 3 million square feet of commercial space added to the Lakeside Business District in the past two years, top requested retailers and restaurants opening monthly, and over 1,500 jobs added in the last 12 months, Flower Mound is 'the Place to Be' in North Texas and beyond. 2016 1 Mile 3 Miles 5 Miles

Total Population 12,610 95,042 218,200

Median Age 39.3 35.7 35.4

Housing Units:

Total Housing Units 4,184 33,199 80,758

Occupied Housing Units 100.0% 99.6% 99.3%

Vacant Housing Units 0.0% 0.4% 0.7%

Household Income:

Income $0 - $49,999 12.07% 25.05% 28.13%

$50,000 - $99,999 29.45% 32.83% 31.38%

$100,000 + 58.48% 42.13% 40.49%

Avg Household Income $133,381 $110,140 $110,935

AREADEMOGRAPHICS

WITHIN 5 MILES218,000+ RESIDENTS

WITHIN 5 MILES$110,935 AVG INCOME

2021 1 Mile 3 Miles 5 MilesTotal Population 12,339 99,557 233,062

Median Age 40.0 36.5 36.3

Housing Units:

Total Housing Units 1,095 35,008 86,824

Occupied Housing Units 100.0% 99.7% 99.4%

Vacant Housing Units 0.0% 0.3% 0.6%

Household Income:

Income $0 - $49,999 9.22% 21.23% 24.01%

$50,000 - $99,999 22.48% 27.45% 27.22%

$100,000 + 68.29% 51.33% 48.77%

Avg Household Income $150,544 $125,681 $126,653


AREAAMENITIES

AmericasD r iv e• In SM

FLOWER MOUND ROAD

MORRIS ROAD

FLOWER MOUND ROAD

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CUSHMAN & WAKEFIELD20

This Offering Memorandum is confidential and is furnished to prospective purchasers of the Property described herein subject to the terms of the Confidentiality Agreement previously provided to and executed by such prospective purchasers. This Memorandum is intended solely to assist prospective purchasers in their evaluation of the Property and their consideration of whether to purchase the Property. It is not to be used for any other purpose or made available to any other person without the prior written consent of the Seller of the Property.

This Memorandum was prepared on the basis of information available to the Seller and to Cushman & Wakefield, Inc., the Seller’s exclusive agent in connection with the sale of the Property. It contains pertinent information about the Property and the surrounding area but it does not contain all the information necessary for a complete evaluation of the Property. The projected cash flow and other financial information contained herein are for reference only.

Although the information contained in this Memorandum is believed to be accurate and reliable, neither the Seller nor its exclusive agent guarantees its accuracy or completeness. Because of the foregoing and because the Property will be sold on an “as is” basis, prospective purchasers should make their own independent assessments, investigations, and projections regarding the Property. Although additional material, which may include engineering, environmental, or other reports, may be provided to certain prospective purchasers as appropriate, such parties should confer with their own engineering and environmental experts, counsel, accountants and other advisors.

The Seller expressly reserves the right, in its sole discretion, to reject any offer to purchase the Property or to terminate any negotiations with any party at any time, with or without notice. The Seller shall have no legal commitment or obligation to any prospective purchaser unless and until a written Purchase and Sale Agreement has been fully executed and delivered and any and all conditions to the Seller’s obligations thereunder have been fully satisfied or waived.

The Seller is responsible for any commission due its agent in connection with a sale of the Property. The Seller shall not be responsible for any commission claimed by any other agent or broker in connection with a sale of the Property. No other party, including the Seller’s exclusive agent, is authorized to make any representation or agreement on behalf of the Seller. This Memorandum remains the property of the Seller and its exclusive agent and may be used only by parties approved by the Seller and its exclusive agent. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as provided herein and as permitted by the express terms of the Confidentiality Agreement.

STATEMENT OF CONFIDENTIALITY + CONDITIONS

BRANDON PRICECapital Markets858 558 [email protected]

BLAKE TAGMYERDirector858 558 [email protected]

TRAVIS TRAUTVETTERExecutive Managing Director858 558 [email protected]

DOWNLOAD A PRINTABLE VERSION HERE

https://www.dropbox.com/s/v18bsl6yhykxvgj/CVS%20Flower%20Mound%20OM.pdf?dl=0

cvs/pharmacy - cushman & wakefield of san diego, inc....8 cushman & wakefield cvs/pharmacy ....

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