Single Tenant CVS (S&P: BBB) with Drive-Thru
Jerseyville, IL
The Opportunity
Summary
- Price: $5,250,000
- Cap Rate: 6.25%
- NOI: $328,145
- Tenant/Guarantor: Highland Park CVS, LLC / CVS Health Corporation
- Lease Type: Fee Simple: NN
- Building Size: 11,945 SF
- Parcel Size: 1.49 Acres
- Year Built: 2015
- Remaining Lease Term: 16+ Years
- Options: Five (5), Five (5) Year Options
- Rental Increases: 5.67% Next Option
Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple interest in a single tenant property leased to CVS Pharmacy, (the “Property”) in Jerseyville, the largest city and the county seat of Jersey County, Illinois. CVS operates on a double-net (NN) lease guaranteed by CVS Health Corporation with over 16 years of firm term remaining and rental increases in each of the options, with the next increase being 5.67%. CVS sits at the corner of the signalized intersection between S. State Street and E. Carpenter Street where the property benefits from excellent visibility from the combined 25,000 VPD. The property also features a drive-thru for prescription pick-up and drop-off. This location boasts four (4) modes of ingress and egress, all from different streets allowing easy access for their patrons. Jerseyville is located approximately 20 miles east and 15 miles north of the Mississippi River and the Illinois-Missouri state border. The 5-mile area surrounding the property boasts an average household income of over $115,000.
CVS Pharmacy is a leading American retail pharmacy company which holds an investment grade credit rating of BBB (S&P). CVS Health’s most recent financials show that Q3 2024 revenues increased to $95.4 billion, up 6.3% compared to prior year. Within the same period, the Pharmacy and Consumer Wellness segment total revenues increased 12.3% to $32.4 billion, driven by increased prescription volume, including increased contributions from vaccinations, and pharmacy drug mix.
Investment Highlights:
Tenant
CVS is the largest healthcare provider in the U.S. with more than 300,000 employees, including 40,000 physicians and over 9,000 retail locations in 49 states, the District of Columbia and Puerto Rico. CVS serves over 100 million customers a day selling 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 and online through CVS.com. It also provides healthcare services through its more than 1,100 Minute Clinic medical clinics as well as their Diabetes Care Centers. Most of these clinics are located within CVS stores. The Minute Clinic boasts over 50 million patient visits. Additionally, CVS has an Extra Care membership program with over 62 million members that allows them to get coupons and instant savings as well as earn Extra Bucks rewards on everyday purchases.
In December of 2017, CVS Health announced its merger with Aetna. Aetna is one of the nation’s leading diversified health care benefits companies. Since then, they have continued to an unmet need in the current health care system by presenting a unique opportunity to redefine access to high-quality care in lower cost, local settings whether in the community, at home, or through digital tools. Together, CVS Health and Aetna are a trusted community partner who help consumers better manage the cost of the health care they need. The combined company is well positioned to more effectively meet the health needs of many more people.
CVS Health’s most recent financials show that Q3 2024 revenues increased to $95.4 billion, up 6.3% compared to prior year. Within the same period, the Pharmacy and Consumer Wellness segment total revenues increased 12.3% to $32.4 billion, driven by increased prescription volume, including increased contributions from vaccinations, and pharmacy drug mix. The tenant is a subsidiary of CVS Pharmacy, a leading American retail pharmacy company which holds an investment grade credit rating of BBB (S&P).
