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TRANSCRIPT
OFFERING MEMORANDUM
CONCEPTUAL
For more information, please contact:
Net-Leased Investment
CVS500 11th Street South, Lake Wales (Polk County), FL
Jason DonaldManaging Director+1 813 204 [email protected]
Patrick BermanManaging Director+1 813 204 [email protected]
Todd TolbertAssociate+1 813 204 [email protected]
Cushman & Wakefield
Jason Donald
Managing Director
+1 813 204 5329
Patrick Berman
Managing Director
+1 813 204 5363
Todd Tolbert
Associate
+1 813 204 5350
For more information, pleasecontact
any of the following individuals: Table of ContentsExecutive Summary
Tenant Overview
Location Overview
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Cushman & Wakefield
The Offering
11,220± square foot, freestanding, drug store located at 500 11th Street South, Lake
Wales, Florida 33853
Absolute NNN leased through April 27, 2024
Five 5-year renewal options
Three percent annual base rent escalations during the option periods
Price: $4,232,228 / 6.15% Cap Rate
Property Strengths
Strategically located at a signalized “double going home side” corner
275 feet of frontage on State Road 60 (24,500 VPD)
Florida has no state income tax
Located in a strong medical corridor which includes Lake Wales Medical Center,
DaVita Dialysis and Groves Medical Center
Major retailers in the trade area include Walmart Supercenter, Publix and Winn Dixie
Tenant
CVS Health Corporation is the largest pharmacy health care provider in the U.S.
CVS Caremark is #7 on the Fortune 500 (NYSE: CVS)
The company operates over 9,600 stores and 1,100 “minute clinics”
Standard and Poor’s Credit Rating: BBB+. Moody’s: Baa1. Investment Grade
2016 Operating Revenue: $177 Billion
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Executive Summary
Cushman & Wakefield
Price: $4,232,228 – 6.15% Cap Rate
Location500 South 11th Street, Lake Wales, FL 33853
Lot SizeApproximately 1.80 acres – 78,408 square feet
ImprovementsBuilt in 1999, an 11,220 ± square foot, freestanding CVS Drug Store, with
ample on-site parking.
LeaseTriple Net lease. The Property has been leased to Eckerd / CVS since
1999. The annual base rent is $260,282.04 through April 27, 2024.
Minimum Base Rent escalates by three percent (3%) during the renewal
periods. The lease is triple-net with Tenant responsible for taxes,
insurance, roof, structure, HVAC systems, parking lot and interior
maintenance. There are five 5-year options to renew.
Rent Per Square Foot$23.20 triple net per year - $1.93 net per month (as applied to the net
square footage of the building). Percentage Rent of 2.00% above a natural
break-point.
FinancingThe property will be delivered free and clear; unencumbered by any
financing
Annual Rent
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Lease Years Annual Rent* Return
04-28-99 – 04-27-24 $260,282.04 6.15%
Option 1:
04-28-24: 04-27-2029$265,736.04 6.28%
Option 2:
04-28-29: 04-27-2034$271,190.04 6.41%
Option 3:
04-28-34: 04-27-2039$276,644.04 6.54%
Option 4:
04-28-39: 04-27-2044$282,098.04 6.67%
Option 5:
04-28-44: 04-27-2049$287,552.04 6.79%
CONCEPTUAL
Tenant Overview
Cushman & Wakefield
Tenant
CVS Health Care is #7 among Fortune 500 companies. CVS Health Corporation includes
CVS Pharmacy which operates 9,600+ retail pharmacies, CVS MinuteClinic with more than
1,100 walk-in health care clinics, CVS Caremark, a leading pharmacy benefits manager with
more than 75 million plan members, and CVS Specialty, a dedicated senior pharmacy care
business serving more than one million patients per year, and expanding specialty pharmacy
services.
CVS Health Corporation is a publicly traded company on the New York Stock Exchange and
has been in business for more than 50 years with the start of its first store in Lowell,
Massachusetts. CVS has investment grade credit ratings from S&P: BBB+ and from
Moody’s: Baa1
Tenant (Cont.)
CVS sells prescription drugs and a wide assortment of general
merchandise, including over-the-counter drugs, beauty products and
cosmetics, personal care products, convenience foods, photo
finishing, seasonal merchandise and greeting cards. With the recent
acquisition of Omnicare, CVS now distributes pharmaceuticals, related
pharmacy consulting and other ancillary services to chronic care
facilities and healthcare providers.
CVS is a market leader in the following sectors: Mail Order Pharmacy,
Retail Pharmacy, Specialty Pharmacy, Retail Medical Clinics, Medical
Part D Prescription Drug Plans and Pharmacy Benefits Manager.
In December 2015, CVS added approximately 1,670 pharmacies
through the acquisition of the pharmacies of Target Corporation.
Corporate Headquarters
One CVS Drive
Woonsocket, Rhode Island 02895
800-746-7287
www.cvs.com
Tenant Overview
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Cushman & Wakefield
Location Overview
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Prime Location
Situated at the southwest corner of State Road 60 and South 11th
Street, the Property enjoys a highly accessible and central location to
serve the Lake Wales area. The Property is located along a major
commercial corridor, in close proximity to Lake Wales Medical
Center, DaVita Dialysis and Groves Medical Center. The average
daily traffic count on State Road 60 is 24,500 vehicles per day.
CVS is well-positioned in a dynamic suburban location in the center
of Lake Wales, FL. Lake Wales is located twenty miles southeast of
Lakeland, FL and 40 miles east of Tampa, FL The property is
situated two miles east of U.S. Highway 27 and five miles southeast
of Eagle Ridge Mall (625,000 SF). CVS shares the intersection of
State Road 60 and 11th Street with Bank of America, Polk State
College: Arts Center and Royal Palm Orthopedics Center. There
are 17,092 residents and 7,836 employees within a 3-mile radius.
Retail sales are in excess of $223 million dollars, drug store sales
are $11.3+ million, within a 3-mile radius.
Demographic Overview
Demographics 1 Mile Radius 3 Mile Radius
Population 3,467 17,092
Daytime Pop (employees) 1,724 7,836
Average HH Income $48,649 $48,624
Median HH Income $36,036 $34,089
Median Age 40.8 39.3
Drug Store Sales (2016) $2.4 Million $11.3 Million
Retail Sales (2016) $44.3 Million $223 Million
Location Overview
Cushman & Wakefield
Location Overview
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3-MILE LOCATION MAP
Cushman & Wakefield
Location Overview
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SUBJECT PROPERTY
Cushman & Wakefield
Location Overview
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AREA OVERVIEW
Cushman & Wakefield
Location Overview
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LAKE WALES AREA OVERVIEW
Lake Wales is located in the center of Florida’s
peninsula, 40 miles east of Tampa and 40 miles
south of Orlando. Well-positioned in Central
Florida, with a low cost of living, excellent
regional access and a high-quality of life, the
Lake Wales area offers outstanding
opportunities for economic growth. The
intersection of U.S. HWY 27 (2 miles west of the
subject property) and S.R. 60 is a heavily-
trafficked distribution hub, from which goods are
transported throughout Florida and beyond.
The citrus industry, tourism, real estate,
healthcare, light manufacturing, distribution and
educational facilities are important components
of the area’s economy. The economy is
becoming more diversified with the
establishment of new businesses including
Kegel Company (bowling equipment
manufacturer), a blueberry winery and Lake
Wales Commerce and Technology Park (164
acres). Eagle Ridge Mall (625,000 SF: JC
Penney, Dillard’s and Regal Cinemas) is located
five miles north east of CVS.
Residents and visitors have a variety of retail
options – from the downtown commercial district,
to Scenic Highway (S.R. 17), to the S.R. 60
corridor, to Eagle Ridge Mall. New commercial
development locating near the Eagle Ridge Mall
includes the Shoppes on the Ridge, Bob Evans,
Chili’s, Home Depot, Lowes, Dunkin Donuts,
Anytime Fitness, Dairy Queen and Kohl’s. Lake
Wales has two new hotels – Hampton Inn &
Suites and Holiday Inn Express – located on
U.S. HWY 27.
Cushman & Wakefield
For more information, please contact:
Jason DonaldManaging Director+1 813 204 5329
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CONCEPTUAL
Patrick BermanManaging Director+1 813 204 [email protected]
Todd TolbertAssociate+1 813 204 [email protected]