cvs/pharmacy - cushman & wakefield of · pdf fileof the real estate described herein. ......

CVS/PHARMACY BILLINGS | MONTANA

*ACTUAL BUILDING PHOTO

CUSHMAN & WAKEFIELD 3

4 THE OFFERING

Investment SummaryInvestment HighlightsArea Maps

12 FINANCIAL ANALYSIS

Rent RollBase Rent Schedule

14 TENANT OVERVIEW

Tenant Overview

16 MARKET OVERVIEW

Location OverviewPopulation Demographics

CVS PHARMACYBILLINGS | MT

No warranty or representation, expressed or implied, is made as to the accuracy of the information contained herein, and same is submitted subject to errors omissions, change of price, rental or other conditions, withdrawal without notice, and to any specific listing conditions, imposed by our principals.

The depiction in the included photograph of any person, entity, sign, logo or property, other than Cushman & Wakefield’s (C&W) client and the property offered by C&W, is incidental only, and is not intended to connote any affiliation, connection, association, sponsorship or approval by or between that which is incidentally depicted and C&W or its client.

Table of Contents

The material contained in this Offering Memorandum is confidential and for the purpose of considering the purchase of the Real Estate described herein. It is subject to the terms and provisions of the Confidentiality Agreement signed by the recipient of this material, and is not to be used for any purpose or made available to any other person without the express written consent of Cushman & Wakefield of San Diego, Inc. (“Broker”).

This Offering Memorandum was prepared by Broker solely for the use of prospective purchasers of the Billings CVS (the “Real Estate”). Neither Broker, Owner nor any of their respective officers, employees or agents, make any representation or warranty, express or implied, as to the completeness or the accuracy of the material contained in the Offering Memorandum or any of its contents, and no legal commitments or obligations shall arise by reason of this package or any of its contents.

Prospective purchasers of the Real Estate are advised (i) that changes may have occurred in the condition of the Real Estate since the time of this Offering Memorandum or the financial statements therein were prepared and that (ii) all financial projections are provided for general reference purposes only in that they are based on assumptions relating to the general economy, competition, and other factors beyond the control of Broker and, therefore, are subject to material variation. Prospective purchasers of the Real Estate are advised and encouraged to conduct their own comprehensive review and analysis of the Real Estate.

The Offering Memorandum is a solicitation of interest only and is not an offer to sell the Real Estate. The Owner and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Real Estate, and expressly reserve the right, at their sole discretion, to terminate discussions with any entity at any time with or without notice.

This Offering Memorandum is confidential. By accepting the Offering Memorandum, you agree (i) that you hold and treat the Offering Memorandum and its contents in the strictest confidence, (ii) that you will not photocopy or duplicate any part of the Offering Memorandum, (iii) that you will not disclose the Offering Memorandum or any of its contents to any other entity without the prior written authorization of Broker, and (iv) that you will not use the Offering Memorandum in any fashion or manner detrimental to the interest of the Owner or Broker.

EXCLUSIVELY LISTED BY:

TRAVIS TRAUTVETTER Executive Director National Net Lease Group (858) 558-5609 - Direct [email protected] CA License No. 01449419

JAY PATEL Director National Net Lease Group (858) 558-5610 - Direct [email protected] CA License No. 01512624

BLAKE TAGMYER Capital MarketsNational Net Lease Group (858) 558-5670 - Direct [email protected] CA License No. 01912759

BRANDON PRICE Capital MarketsNational Net Lease Group (858) 558-5673 - Direct [email protected] CA License No. 01822998

*REPRESENTATIVE BUILDING PHOTO*ACTUAL BUILDING PHOTO

*Listed in Conjunction with George Warmer, Montana Broker of Record



4

The OfferingINVESTMENT SUMMARYThe subject property is a CVS Pharmacy located in Billings, Montana. CVS signed a 25-year lease which commenced in December of 2009, leaving approximately 20 years remaining on the initial lease term. This absolute net lease provides 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 $139 billion in 2014.

Located at the signalized intersection of Grand Avenue and North 24th Street West, the subject property is positioned along two of the area’s main traffic and retail corridors. The property is situated just north of Rimrock Mall, a 650,000 square foot regional mall anchored by Dillard’s, Herberger’s, JC Penney and Wynnsong Cinemas. Other retailers in the surrounding vicinity include Target, TJ Maxx, Lowes, Home Depot, and many more. This densely populated area is home to over 96,000 residents within a five mile radius.

CVS Pharmacy is the second largest pharmacy chain after Walgreens in the United States, with more than 7,600 stores, and is the second largest U.S. pharmacy based on total prescription revenue. As the retail pharmacy division of CVS Health, it ranks as the 12th largest company in the world according to Fortune 500 in 2014.

CVS PHARMACY - BILLINGS, MONTANAPRICE $10,469,112NOI $549,629.40CAP RATE 5.25%TENANT CVS PharmacyADDRESS 2402 Grand Avenue, Billings, MT YEAR BUILT 2009BUILDING SIZE 13,225 SFPARCEL SIZE 1.4 Acres +/- RENT INCREASES During Option PeriodsOWNERSHIP TYPE Fee SimpleLEASE TYPE Absolute NetLEASE TERM 25 YearsLEASE TERM REMAINING 20 YearsLEASE COMMENCEMENT 12/22/2009LEASE EXPIRATION 01/31/2035OPTIONS TO RENEW Ten (10), Five-Year Options


*Pricing shown above reflects property being delivered free and clear. However, there is existing zero cash flow debt which can be assumed at Purchaser’s election. Please contact listing broker for further details on the in-place debt.

IMPERIAL VALLEYGSA PORTFOLIO

INVESTMENT HIGHLIGHTS

6

Absolute Net Lease Structure Zero Landlord responsibilities for operating or capital expenses.

Corporate-Backed Long Term Lease CVS signed a 25-year lease in December of 2009 leaving approximately 20 years remaining on the initial lease term.

BBB+ Credit Rating by Standard & Poor's Tenant is publicly traded on the NYSE and reported annual revenues in excess of $139 billion in 2014.



Just North of Rimrock Mall The state’s largest regional mall consists of 650,000 square feet. Anchor tenants include Dillard’s, JC Penney, Herberger’s and Wynnsong Cinemas.

Densely Populated Area Over 96,000 residents within a five-mile Radius.

Signalized Hard Corner Location with Drive-Thru Property provides ingress and egress along both Grand Avenue and North 24th Street.


CUSHMAN & WAKEFELD 9 8

MONTANA STATE UNIVERSITY

BILLINGS

RIVERFRONTPARK



ST. VINCENT HOSPITAL

ROCKY MOUNTAINCOLLEGE



AREA MAP & NEARBY DESTINATIONS

DRIVING DISTANCE TO NEARBY DESTINATIONS

DESTINATIONRimrock Mall 1.5 Miles 4 MinutesRocky Mountain College 1.9 Miles 5 MinutesDowntown Billings 3.5 Miles 9 MinutesSt. Vincent Hospital 3.6 Miles 9 MinutesMontana State University Billings 3.8 Miles 9 MinutesBillings Logan International Airport 5.3 Miles 13 MinutesBozeman, Montana 141 Miles 2 HoursYellowstone National Park 169 Miles 2.5 HoursHelena, Montana 238 Miles 3.5 Hours

MONTANA STATE UNIVERSITY

BILLINGSROCKY

MOUNTAIN COLLEGE


ST. VINCENT HOSPITAL

DOWNTOWN BILLINGS



RENT ROLL

TENANT SQUARE FEET

LEASECOMMENCE

LEASEEXPIRE

ANNUALBASE RENT

MONTHLY BASE RENT

RENT INCREASES LEASE TYPE

CVS Pharmacy 13,225 12/22/2009 01/31/2035 $549,629.40 $45,802.45 See Schedule Below

NNN

TOTAL: 13,225

12

1. Tenant has ten (10), five-year options to renew the lease.2. Tenant’s lease contains a provision whereby Tenant does not pay rent during the final three years of their initial lease term. At list price, Seller will escrow or credit buyer the net present value of rent during the final three year period.

COMMENTS

ANNUAL BASE RENT

MONTHLY BASE RENT

Current - July 31, 2034 $549,629.40 $45,802.45Option 1 (5 Years) $494,666.52 $41,222.21Option 2 (5 Years) $494,666.52 $41,222.21Option 3 (5 Years) Fair Market Value Fair Market ValueOption 4 (5 Years) Fair Market Value Fair Market ValueOption 5 (5 Years) Fair Market Value Fair Market ValueOption 6 (5 Years) Fair Market Value Fair Market ValueOption 7 (5 Years) Fair Market Value Fair Market ValueOption 8 (5 Years) Fair Market Value Fair Market ValueOption 9 (5 Years) Fair Market Value Fair Market ValueOption 10 (5 Years) Fair Market Value Fair Market Value

BASE RENT SCHEDULE

Financial Analysis




14

Tenant OverviewCVS PHARMACY

CVS Pharmacy is the second largest pharmacy chain after Walgreens in the United States, with more than 7,600 stores, and is the second largest U.S. pharmacy based on total prescription revenue. As the retail pharmacy division of CVS Health, it ranks as the 12th largest company in the world according to Fortune 500 in 2014.CVS Pharmacy's leading competitor Walgreens ranked 37th.

CVS 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 as well as online through CVS.com. It also provides healthcare services through its more than 600 MinuteClinic medical clinics as well as their Diabetes Care Centers. Most of these clinics are located within CVS stores.

CVS is incorporated in Delaware and is based in Woonsocket, Rhode Island. As of 2008, CVS Caremark was the largest for-profit employer in Rhode Island. It was founded on Merrimack Street in Lowell, Massachusetts, in 1963, under the name Consumer Value Store.

COURTS INDEPENDENT OF INS, THE AGENCY CHARGED WITH ENFORCEMENT OF FEDERAL IMMIGRATION LAWS. THE OFFICE OF THE CHIEF ADMINISTRATIVE HEARING OFFICER (OCAHO) WAS ADDED IN 1987.

TENANT SUMMARYTENANT TRADE NAME CVS Pharmacy

LEASE GUARANTOR Corporate

OWNERSHIP Public (NYSE: CVS)ANNUAL REVENUE $139.36 BillionCORPORATE HEADQUARTERS Woonsocket, Rhode IslandNET WORTH $37.95 BillionCREDIT RATING BBB+ (Standard & Poor's)NO. OF STORES 7,600WEBSITE www.cvs.com

#12 in Fortune 500 Rankings

$139 BillionAnnual Revenues in Excess of $139 Billion (2014)

7,600+Over 7,600 Locations Nationwide



IMPERIAL VALLEYGSA PORTFOLIO

1616



Billings, Montana

Forbes Ranks Billings #40 for "Best Small Places for Business and Careers".#40

Forbes Ranks Billings #53 for Job Growth.

Billings Clinic 3,133St. Vincent Healthcare 2,100School District #2 1,920Stillwater Mining Company 1,574Avitus Group 932Wal Mart 905City of Billings 892Yellowstone County 750Montana State University Billings 620St. Johns Lutheran Home 597

MAJOR EMPLOYERS POPULATIONThe Billings MSA is comprised of the cities of Billings, Lockwood, Red Lodge as well as many surrounding unincorporated areas. It is located in the southern portion of Montana, containing both Carbon and Yellowstone counties. The metro’s population is 166,010 as of 2015 and is expected to increase by 4.9% over the next five years. Billings is the largest metropolitan area between Fargo, ND and Spokane, WA.

GEOGRAPHY & CLIMATEThe city of Billings is located on a 500-foot cliff overlooking Yellowstone Six mountain ranges, including the Bighorn Mountains, are located nearby. With its semi-arid climate, Billings has hot summers and cold winters. Snowfall averages 22 inches per year.

ECONOMYBillings is the central retail, business, and transportation hub for the largest trade area in the United States. The trade area encompasses 500,000 people in Montana, northern Wyoming, and western parts of North and South Dakota. Billings is home to many corporate headquarters in a variety of industries: KOA, First Interstate Bank, Waggoners Trucking, and CTA Architects & Engineers. Fortune 500 companies with operations in the MSA include Wells Fargo, Target Corporation, and Exxon/Mobil. Innovative tax incentive programs and low labor costs make the area attractive to companies.Billings’ primary economic driver is the Bakken Shale Formation. This natural resource provides the ideal location for coal, oil, and shale mining as well as wind farming. Energy companies such as Nabors, SM Energy, and Sanjel have corporate headquarters and offices in Billings. Other important industries in the Billings region are transportation/logistics, manufacturing, data centers, and healthcare.

EDUCATION24 elementary, four middle, and three high schools serve the city of Billings. Three universities are located within the area: Montana State University Billings (MSU-B), Rocky Mountain College, and Yellowstone Baptist College. MSU-B is located in downtown Billings and has enrollment of approximately 5,000 students.

TRANSPORTATIONBillings Logan International Airport is located near downtown Billings and serves nearly 400,000 passengers annually. Interstate 90 connects Billings with much of the northern United States including New York and Washington. Other roadways in Billings include Highways 3, 87, and 312. Bus service in Billings is provided by Billings METropolitan Transit and serve 5,000 passengers daily.

LIFESTYLE & ENTERTAINMENTAs a former railroad boom town, Billings is full of “Wild West” history. Lewis & Clark, Calamity Jane, and Sitting Bull were all integral to the region’s history and are honored at many museums and history centers throughout the city. With six mountain ranges within a few hours’ drive, recreation opportunities are plentiful in the region, including the Bighorn Canyon National Recreation Area and the Little Bighorn Battlefield National Monument. Additionally, the park system in Billings provides many programs, education, and open space for residents. Culminating in 2012, Billings had upgraded its trail system which now provides 36 miles of scenic hiking and biking trails, some of which overlook the beautiful Yellowstone River Valley.

Fortune 500 Companies with a Presence in the Area Include Wells Fargo, Target Corporation, and Exxon/Mobil.

Forbes Ranks Billings #51 for Education.#51

#53

The Market

1818 CUSHMAN & WAKEFIELD 19

IMPERIAL VALLEYGSA PORTFOLIOCVS PHARMACYBILLINGS | MT


POPULATION DEMOGRAPHICS 3 MILES 5 MILES 10 MILES

POPULATION

2014 Estimated Total Population 63,735 96,113 132,181

2019 Forecast Total Population 66,216 100,280 138,8972000 Census Population 56,782 83,028 109,6382010 Census Population 61,730 92,697 126,556Population Growth 2000 to 2010 8.72% 11.65% 15.43%Population Growth 2010 to 2014 3.25% 3.69% 4.45%Forecast Population Growth 2014 to 2019 3.89% 4.33% 5.08%HOUSEHOLDS

2014 Estimated Total Households 28,200 40,985 54,8762019 Forecast Total Households 29,548 43,074 57,9622000 Census Total Households 24,399 34,804 44,6452010 Census Total Households 27,023 39,168 52,213Household Growth 2000 to 2010 10.76% 12.54% 16.95%Household Growth 2010 to 2014 4.35% 4.64% 5.10%Forecast Household Growth 2014 to 2019 4.78% 5.10% 5.62%2014 Percent Owner Occupied Housing Units 64.96% 63.75% 66.84%2014 Percent Renter Occupied Housing Units 35.04% 36.25% 33.16%2014 Estimated Median Home Value $191,211 $192,199 $192,803INCOME

2014 Estimated Households by Income $0 - $14,999 3,914 5,921 7,419 $15,000 - $24,999 3,300 5,307 6,887 $25,000 - $34,999 3,235 4,519 6,086 $35,000 - $49,999 4,312 6,166 8,364 $50,000 - $74,999 5,707 7,766 10,537 $75,000 - $99,999 3,181 4,631 6,438 $100,000 - $124,999 1,787 2,523 3,666 $125,000 - $149,999 992 1,399 1,955 $150,000 - $199,999 961 1,401 1,882 $200,000 - $499,999 704 1,151 1,421 $500,000 + 107 202 222

2014 Estimated Average Household Income $62,872 $63,304 $63,456


EXCLUSIVELY LISTED BY:

BRANDON PRICE Capital MarketsNational Net Lease Group (858) 558-5673 - Direct [email protected] CA License No. 01822998 JAY PATEL Director National Net Lease Group (858) 558-5610 - Direct [email protected] CA License No. 01512624

BLAKE TAGMYER Capital MarketsNational Net Lease Group (858) 558-5670 - Direct [email protected] CA License No. 01912759

TRAVIS TRAUTVETTER Executive DirectorNational Net Lease Group (858) 558-5609 - Direct [email protected] CA License No. 01329963

Cushman & Wakefield of San Diego, Inc. CA License No. 1329963 4747 Executive Drive, 9th Floor San Diego, CA 92121 www.cushmanwakefield.com


*Listed in Conjunction with George Warmer, Montana Broker of Record

cvs/pharmacy - cushman & wakefield of · pdf fileof the real estate described herein. ......

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