Single Tenant CVS Pharmacy with Drive-Thru
Cortland, NY
The Opportunity
Summary
- Price: $2,790,000
- Cap Rate: 7.00%
- NOI: $195,296
- Lease Type: Fee Simple: NN
- Tenant / Guarantor: CVS Albany, LLC / CVS Corporation
- Building Size: 10,125 SF
- Parcel Size: 1.04 Acres
- Year Built: 1998
- Remaining Lease Term: 4+ Years
- Options: Three (3), Five (5) Year Options
- Rental Increases: 8.00% Each Option Period
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 Cortland, the county seat of Cortland County, New York. CVS Pharmacy has a drive-thru and a long operating history, as CVS has been open at its location for over twenty-six (26) years, creating an identity within the Cortland market. During their latest renewal, CVS combined renewal options and extended their term ten (10) years, demonstrating their commitment to the location. CVS Pharmacy has three (3), five (5) year options remaining which include eight percent (8%) rental increases at the beginning of each option. CVS Pharmacy is less than one (1) mile from Cortland Surgical Center and less than two (2) miles from Guthrie Medical Center home to 242 beds, including a 162-bed acute care facility with an attached 80-bed residential care facility that serves the community of Cortland, NY. CVS Pharmacy is backed by a corporate guarantee, which comes with an investment grade credit rating of BBB (S&P), providing more security to the investment. CVS is located along Port Watson Street, a major local thoroughfare that is home to over 16,000 vehicles per day. Additionally, it is half of a mile from multiple institutions including SUNY Cortland which has over 6,900 students enrolled and about 1,400 faculty and Cortland Junior and Senior High School, home to another 1,200 students. 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
Ownership: PUBLIC (NYSE: CVS)
Credit Rating: BBB (S&P)
Headquarters: WOONSOCKET, RI
# of Locations: 9,000+
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 ExtraCare 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).
