CVS Pharmacy

Retail-Commercial for Sale
Catylist Listing ID: 30610639
Building Size (RSF): 13,314 SF
Sale Price: $1,828,750
Unit Price: $137.36 PSF
Property Use Type: Investment
Building Name: CVS Pharmacy
Sale Terms: Other
Cap Rate: 6.0%
Last Updated: 9/17/2020

Overview / Comments

The subject opportunity is a CVS ground lease with 10 years remaining on initial 25 year term, requires no landlord responsibilities and located in one of Metro-Detroit’s fastest growing communities, Shelby Twp. The tenant is paying a rate of $7.85/psf, which will escalate at several points during the existing lease term and option periods. The proforma cap rate is based on an upcoming rental rate increase. CVS generated $257 billion in revenue with $12 billion in operating income in 2019. CVS is currently rated BBB by Standard & Poor’s and Baa2 by Moody’s. The current rental rate is 40% below market, a significant upside to the new landlord if the tenant ever decides to vacate. Given the location, deal size, cap rate, asset quality, strength of the guarantor, and under market lease rate, the subject property provides an ideal opportunity for a 1031 exchange investor.

Additional Details

Nearest MSA: Detroit-Warren-Dearborn
County: Macomb
Submarket/Township: Macomb West
Tax ID/APN: 23-07-09-478-033
Property Located Between: 24 Mile Road
Traffic/Vehicle Count: 16,447
Year Built: 2006
Construction/Siding: Brick
Parking Description: Ample Parking
Heat Source: Other
Air Conditioning: Other

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 5,703 70,958 198,596
Median Age: 40.62 41.86 40.36
Households: 2,087 26,526 76,825
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