FOR SALE
CVS PHARMACY CA & TXPROPERTIES SOLD INDIVIDUALLY OR AS A PORTFOLIO
BAKERSFIELD, CA
BURLESON, TX
BASTROP, TX
LEANDER, TX
The 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 Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.
This Marketing 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. Kidder Mathews 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 the financial 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 Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.
KIDDER.COM
JORDAN UTTAL
[email protected] N° 01512755
EXCLUSIVELY LISTED BY
01EXECUTIVE SUMMARY
The OfferingInvestment HighlightsOffering Summary
02PROPERTY OVERVIEW
9628 Rosedale Hwy, Bakersfield, CA1421 SW Wilshire Blvd, Burleson, TX1671 State Hwy E, Bastrop, TX500 N Bagdad Rd, Leander, TX
03TENANT OVERVIEW
CVS Health
JASON GRIBIN
[email protected] N° 01819611
TERESA CORDOVA
[email protected] N° 02104073
TABLE OF CONTENTS
3CVS PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS
THE OFFERING
Kidder Mathews is pleased to exclusively offer for sale a portfolio of four well located CVS Pharmacy stores across two states, California and Texas, totaling ±52,289 square feet of retail space. Each property is leased on an absolute triple net basis, with CVS responsible for all repairs and maintenance. These assets may be sold individually or as a portfolio.
EXECUTIVE SUMMARY
OFFERING SUMMARY
Address Price Cap
9628 Rosedale Hwy $9,756,995 6.15%
1421 SW Wilshire Blvd $5,513,775 6.34%
1671 State Hwy 71 E $4,400,705 6.58%
500 N Bagdad Rd $4,507,575 6.34%
Portfolio Summary $24,179,049 6.31%
9628 ROSEDALE HWY
1421 SW WILSHIRE BLVD
*PROPERTIES CAN BE SOLD INDIVIDUALLY OR AS A PORTFOLIO
INVESTMENT HIGHLIGHTS
Corporate Credit
CVS Health Corporation (S&P: BBB+, NYSE: CVS) together with its subsidiaries is one of the largest pharmacy health providers in the United States operating more than 9,700 retail drugstores in the United States, Puerto Rico and Brazil. CVS has the strongest credit profile amongst the three largest drug stores (S&P Ratings for Walgreens and Rite Aid are BBB and B respectively).
Absolute NNN
CVS pays for all operating expenses such as Taxes, Insurance, Maintenance, roof and structure. No Landlord responsibilities - Ideal for 1031 or out of state investors.
Prototype Store Format
All properties are prototype store format with a drive-thru and located on a signalized intersection.
Long Term Investment
There are approximately 16 years remaining on the initial 26-year original lease term. CVS has two 5 year options at 90% of prior rent, then eight 5 year options at FMV, along with a rent holiday for the last three years of the lease.
Free & Clear
Properties delivered free & clear, allowing investors to take advantage of attractive new financing options.
1671 STATE HWY 71 E
500 N BAGDAD RD CVS PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 4
5CVS PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS
02THE
PROPERTIES9628 ROSEDALE HWY, BAKERSFIELD, CA
1421 SW WILSHIRE BLVD, BURLESON, TX
1671 STATE HWY 71 E, BASTROP, TX
500 N BAGDAD RD, LEANDER, TX
KEY FACTS
Address 9628 Rosedale HwyBakersfield, CA 93311
Tenant CVS/Caremark
Lease Guarantor Corporate
Lease Type Absolute NNN
Lease Begin December 17, 2010
Initial Term Expiration January 31, 2036
Term Remaining ±16 years
NOI $600,430.44
Total SF 14,744 SF
Lot Size 1.28 AC
Year Built 2010
Options Two, 5-year at 90% of prior rentEight, 5-year at FMV
Rent Holiday Last 3 years of initial lease term
RENT SCHEDULE
Lease Term Monthly rent
Current - Jan 31, 2033 $50,035.87
Feb 1, 2033 - Jan 31, 2036 Rent holiday
9628 ROSEDALE HWY
$9,756,995
PRICE
6.15%
CAP RATE
ACTUAL PROPERTY PHOTOS CVS PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 6
7CVS PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS
BAKERSFIELD, CA
Bakersfield is a growing, vibrant community that is home to approximately 380,000 residents and making it the 52nd-most populous city in the United States of America and the 9th-most populous city in California.
The property is situated on the corner of Rosedale Hwy and Calloway Drive near national/credit tenants such as: Target, Michaels, Kohl’s, Krispy Kreme, Dollar Tree, Smart & Final, Chilli’s, Tractor Supply Co., The Shops at the Promenade, and more.
Bakersfield is a city near the southern end of the San Joaquin Valley in Kern County, California. It is roughly equidistant between Fresno and Los Angeles, 110 mi (180 km) to the north and south respectively. The city’s population was 347,483 at the 2010 census, making it the 9th largest city in California and the 51st largest city in the United States. Bakersfield’s historic and primary industries have related to Kern County’s two main industries, oil and agriculture. Kern County in 2013 was the most oil productive county in the US. Kern County is a part of the highly productive San Joaquin Valley, and ranks in the top five most productive agricultural counties in the nation. The city serves as the home for both corporate and regional headquarters of companies engaged in these industries. The population in 2016 was already up over 8% from the census data taken in 2010. Based on the past growth of this city, the population is only expected to continue to grow and will soon hit the next milestone of 400,000 residents.
2,146# OF BUILDINGS
23.6M SFTOTAL INVENTORY
93K SFYTD NET ABSORPTION
1.1M SFNET DELIVERIES (2014–2018)
6.1%TOTAL VACANCY
RETAIL MARKET STATISTICS
1-mile 3-mile 5-milePopulation
2019 Estimate 8,999 85,838 208,471
2024 Projections 9,317 89,177 217,302
Growth 2019–2024 0.70% 0.80% 0.80%
Households
2019 Estimate 3,306 30,636 76,773
2019 Avg HH Income $107,588 $120,917 $102,027
Avg Daytime Demos 8,779 57,688 153,456
DEMOGRAPHICS
SUBJECT PROPERTY
ROSEDALE HWY
MEACHAM RD
EL
TO
RO
VIE
JO
RD
CO
FF
EE
RD
CA
LLO
WA
Y D
R
CL
AY
PA
TR
ICK
FAR
R W
AY
27,084 AADT
32,906 AADT
CVS PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 8
9CVS PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS
KEY FACTS
Address 1421 SW Wilshire BlvdBurleson, TX 76028
Tenant CVS/Caremark
Lease Guarantor Corporate
Lease Type Absolute NNN
Lease Begin December 17, 2010
Initial Term Expiration January 31, 2036
Term Remaining ±16 years
NOI $349,488.48
Total SF 12,324 SF
Lot Size 1.62 AC
Year Built 2010
Options Two, 5-year at 90% of prior rentEight, 5-year at FMV
Rent Holiday Last 3 years of initial lease term
RENT SCHEDULE
Lease Term Monthly rent
Current - Jan 31, 2033 $29,124.04
Feb 1, 2033 - Jan 31, 2036 Rent holiday
1421 SW WILSHIRE BLVD
$5,513,775
PRICE
6.34%
CAP RATE
SUBJECT PROPERTY
10CVS PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS
BURLESON, TX
BURLESON, TX
This is an excellent investment opportunity to purchase an investment grade tenant with a corporate guaranteed lease in a tax-free state. It is situated on the corner of SW Wilshire Blvd. and SE John Jones Dr. that is near major retail tenants such as: Target, Chick-fil-A, Starbucks, Office Depot, Wendy’s, Panda Express, and more. Burleson is a city in Johnson and Tarrant counties in the U.S. state of Texas. It is a suburb of Fort Worth. As of the 2010 census it had a population of 36,690, and in 2017, it had an estimated population of 46,145.Burleson has seen the job market increased by 2.6% over the last year. Future job growth over the next ten years is predicted to be 43.0%, which is higher than the US average of 33.5%.
DALLAS-FORT WORTH-ARLINGTON MSA
The Dallas–Fort Worth Metroplex's population is 7,539,711 according to the U.S. Census Bureau’s 2018 population estimates, making it the most populous metropolitan area in both Texas and the South, the fourth-largest in the U.S., and the tenth-largest in the Americas. In 2016, Dallas–Fort Worth ascended to the number one spot in the nation in year-over-year population growth. The region’s economy is primarily based on banking, commerce, telecommunications, technology, energy, healthcare and medical research, and transportation and logistics. In 2019, Dallas–Fort Worth is home to 25 Fortune 500 companies, the third-largest concentration of Fortune 500 companies in the United States behind New York City and Chicago. In 2016, the metropolitan economy surpassed Houston to become the fourth-largest in the nation. Currently the region boasts a GDP of just over $613.4 billion in 2019. As such, the metropolitan area’s economy is ranked the 10th largest in the world.
401# OF BUILDINGS
4.5M SFTOTAL INVENTORY
-9.3K SFYTD NET ABSORPTION
522K SFNET DELIVERIES (2014–2018)
2.0%TOTAL VACANCY
RETAIL MARKET STATISTICS
1-mile 3-mile 5-milePopulation
2019 Estimate 5,922 41,269 87,932
2024 Projections 6,664 46,254 96,868
Growth 2019–2024 2.50% 2.40% 2.00%
Households
2019 Estimate 2,095 14,739 31,034
2019 Avg HH Income $87,954 $94,267 $93,957
Avg Daytime Demos 2,675 10,744 25,203
DEMOGRAPHICS
ELK DR
SUBJECT PROPERTY
174
731
731174
22,908 AADT
SW W
ILSH
IRE B
LVD
9,779 AADT
SE
JO
HN
JO
NE
S D
R
CVS PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 11
KEY FACTS
Address 1671 State Hwy 71 EBastrop, TX 78602
Tenant CVS/Caremark
Lease Guarantor Corporate
Lease Type Absolute NNN
Lease Begin December 17, 2010
Initial Term Expiration January 31, 2036
Term Remaining ±16 years
NOI $289,769.52
Total SF 12,010 SF
Lot Size 1.73 AC
Year Built 2015
Options Two, 5-year at 90% of prior rentEight, 5-year at FMV
Rent Holiday Last 3 years of initial lease term
RENT SCHEDULE
Lease Term Monthly rent
Current - Jan 31, 2033 $24,147.46
Feb 1, 2033 - Jan 31, 2036 Rent holiday
1671 STATE HWY 71 E
$4,400,705
PRICE
6.58%
CAP RATE
CVS PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 12
13CVS PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS
BASTROP, TX
BASTROP, TX
This is an excellent investment opportunity to purchase an investment grade tenant with a corporate guaranteed lease in a tax-free state. This property is located at the corner of a signalized intersection along State Highway 21 and State Highway 95 E (VPD: 31,222). Bastrop is a city and the county seat of Bastrop County, Texas, United States. It is located about 30 mi southeast of Austin, it is part of the Greater Austin metropolitan area. Bastrop, Texas's estimated population is 9,420 according to the most recent United States census estimates. Bastrop real estate appreciated 54.81% over the last ten years, which is an average annual home appreciation rate of 4.47%, putting Bastrop in the top 10% nationally for real estate appreciation.
AUSTIN-ROUND ROCK MSA
Greater Austin has a diverse economy heavily anchored by government activities and education. High-tech firms, particularly related to semiconductors and software, are also important economic pillars. The five-county MSA had a gross domestic product of $90.9 billion in 2011, making it the 35th largest metropolitan economy in the U.S. The metropolitan area is centered on the City of Austin the fourth-largest city in Texas and the 11th-largest city in the United States with a population of 950,715 people. Austin’s largest suburbs are Round Rock, Cedar Park, Georgetown, San Marcos and Pflugerville.
484# OF BUILDINGS
3.78M SFTOTAL INVENTORY
6.1K SFYTD NET ABSORPTION
397K SFNET DELIVERIES (2014–2018)
3.4%TOTAL VACANCY
RETAIL MARKET STATISTICS
1-mile 3-mile 5-milePopulation
2019 Estimate 2,229 13,420 19,896
2024 Projections 2,488 15,043 22,307
Growth 2019–2024 2.30% 2.40% 2.40%
Households
2019 Estimate 795 4,818 6,827
2019 Avg HH Income $62,590 $66,758 $67,292
Avg Daytime Demos 4,370 8,426 9,109
DEMOGRAPHICS
SUBJECT PROPERTY
CHESTNUT STCHESTNUT ST
FAY
ET
TE
ST
FARM ST
MA
IN ST
PE
CA
N S
T
JA
CK
SO
N S
T
BUSINESS PARK DR
TE
CH
NO
LOG
Y D
R
LOV
ER
S L
N
BASTROP COUNTY SHERIFF'S OFFICE
BASTROP YOUTH SOCCER FIELDS
BASTROP COUNTY COURT HOUSE
BASTROP COUNTY MUSEUM &
VISITOR CENTER
BASTROP OPERA HOUSE
BASTROP TAX ASSESSOR/COLLECTOR
Lost PinesLost PinesPaint & BodyPaint & Body
45,448 AADT
2,014 AADT
CVS PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 14
KEY FACTS
Address 500 N Bagdad RdLeander, TX 78641
Tenant CVS/Caremark
Lease Guarantor Corporate
Lease Type Absolute NNN
Lease Begin December 17, 2010
Initial Term Expiration January 31, 2036
Term Remaining ±16 years
NOI $285,710.88
Total SF 13,211 SF
Lot Size 1.75 AC
Year Built 2010
Options Two, 5-year at 90% of prior rentEight, 5-year at FMV
Rent Holiday Last 3 years of initial lease term
RENT SCHEDULE
Lease Term Monthly rent
Current - Jan 31, 2033 $23,809.24
Feb 1, 2033 - Jan 31, 2036 Rent holiday
500 N BAGDAD RD
$4,507,575
PRICE
6.34%
CAP RATE
CVS PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 15
16CVS PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS
LEANDER, TX
LEANDER, TX
This is an excellent investment opportunity to purchase an investment grade tenant with a corporate guaranteed lease in a tax-free state. This property is located at the corner of a signalized intersection along State Highway 21 and State Highway 95 E (VPD: 31,222). Bastrop is a city and the county seat of Bastrop County, Texas, United States. It is located about 30 mi southeast of Austin, it is part of the Greater Austin metropolitan area. Bastrop, Texas's estimated population is 9,420 according to the most recent United States census estimates. Bastrop real estate appreciated 54.81% over the last ten years, which is an average annual home appreciation rate of 4.47%, putting Bastrop in the top 10% nationally for real estate appreciation.
AUSTIN-ROUND ROCK MSA
Greater Austin has a diverse economy heavily anchored by government activities and education. High-tech firms, particularly related to semiconductors and software, are also important economic pillars. The five-county MSA had a gross domestic product of $90.9 billion in 2011, making it the 35th largest metropolitan economy in the U.S. The metropolitan area is centered on the City of Austin the fourth-largest city in Texas and the 11th-largest city in the United States with a population of 950,715 people. Austin’s largest suburbs are Round Rock, Cedar Park, Georgetown, San Marcos and Pflugerville.
148# OF BUILDINGS
1.5M SFTOTAL INVENTORY
-13.9K SFYTD NET ABSORPTION
494K SFNET DELIVERIES (2014–2018)
6.4%TOTAL VACANCY
RETAIL MARKET STATISTICS
1-mile 3-mile 5-milePopulation
2019 Estimate 17,117 54,837 95,291
2024 Projections 20,241 64,387 112,423
Growth 2019–2024 3.70% 3.50% 3.60%
Households
2019 Estimate 5,072 16,856 30,084
2019 Avg HH Income $68,410 $84,623 $90,744
Avg Daytime Demos 987 11,007 23,976
DEMOGRAPHICS
SUBJECT PROPERTY
HERO WAY W
SU
NN
Y B
RO
OK
DR
N CREEK BLVD
DE
ER
CR
EE
K LN
RIV
ER
WA
Y LN
WATERFALL AVE
N B
AG
DA
D R
D
BAGDAD ELEMENTARY SCHOOL
LITTLE HUGS CHILDCARE
5,177 AADT
7,737 AADT
CVS PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 17
18CVS PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS
03TENANT
OVERVIEWCVS HEALTH
CVS HEALTH
CVS Pharmacy is a publicly traded company on the New York Stock Exchange (Symbol: CVS) with a market capitalization in excess of $80 billion. CVS is an investment grade rated tenant with a Standard & Poor’s rating of BBB+. The company has launched assertive growth plans in recent quarters. CVS is currently the only integrated pharmacy healthcare company with the capability to have an influence on consumers, payors, and providers with innovative resolutions. They have a profound outlook of their diverse needs through their unique integrated model, and are bringing them innovative solutions that help increase access to quality care, deliver better health outcomes and lower overall health care costs.
TENANT OVERVIEW
MARKET LEADING TENANT
CVS Health Corporation is engaged in the retail drugstore business. The company operates 9,800+ locations in 49 states, the District of Columbia, Puerto Rico and Brazil. CVS Pharmacy is the nation’s drugstore chain and total prescription revenue. CVS is headquartered in Woonsocket, Rhode Island and was founded in 1963.
COMPANY OVERVIEW
CVS HEALTH COMPANYPARENT COMPANY
CVSNYSE
BBB+ / STABLECREDIT RATING (S&P)
$184.7BTOTAL REVENUE (2017)
203,000TOTAL EMPLOYEES
WOONSOCKET, RIHEADQUARTERS
VIEW WEBSITE
In December of 2017, CVS announced it would buy Aetna for more than $69 billion. This acquisition would combine CVS’ drugstores and pharmacy benefits manager platform with Aetna’s insurance business. This merger brings together two complementary businesses with unique capabilities, the goal being to reshape the consumer health care experience, putting people at the center of health care delivery to ensure they have access to high-quality, more affordable care.
CVS PORTFOLIO OFFERING MEMORANDUM KIDDER MATHEWS 19
KIDDER.COM
EXCLUSIVELY REPRESENTED BY
JORDAN UTTAL
[email protected] N° 01512755
JASON GRIBIN
[email protected] N° 01819611
TERESA CORDOVA
[email protected] N° 02104073