CVS 1801 WEST FIFTH ST PLAINVIEW, TX 79072

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1 CVS 1801 WEST FIFTH ST PLAINVIEW, TX O F F E R I N G M E M O R A N D U M 1

2 C V S 5 P R O P E R T Y P O R T F O L I O OTHER PROPERTIES AVAILABLE AS A PORTFOLIO OR INDIVIDUALLY CLICK HERE FOR THE OM 101 N AIRPORT RD, JASPER, AL TERM:14.25 ANNUAL NOI: $369, EFFECTIVE CAP RATE: 6.26% EFFECTIVE PRICE: $5,902,921 CLICK HERE FOR THE OM 360 DINGENS ST, BUFFALO, NY TERM:14.25 ANNUAL NOI: $259, EFFECTIVE CAP RATE: 6.26% EFFECTIVE PRICE: $4,146,647 CLICK HERE FOR THE OM US HWY #29, CHATHAM, VA TERM:14.25 ANNUAL NOI: $231, EFFECTIVE CAP RATE: 6.26% EFFECTIVE PRICE: $3,699,773 CLICK HERE FOR THE OM CLICK HERE FOR THE OM 1801 WEST FIFTH ST, PLAINVIEW,TX TERM:14.25 ANNUAL NOI: $215, EFFECTIVE CAP RATE: 6.26% EFFECTIVE PRICE: $3,439, HILLSIDE RD, AMARILLO, TX TERM:14.25 ANNUAL NOI $252, EFFECTIVE CAP RATE: 6.26% EFFECTIVE PRICE: $4,036,965 2 TOTAL: ANNUAL NOI: $1,328,908 EFFECTIVE PRICE: $21,225,743 EFFECTIVE CAP: 6.26%

3 CVS 1801 WEST FIFTH ST PLAINVIEW,TX T A B L E O F C O N T E N T S 04 INVESTMENT SUMMARY 09 TENANT OVERVIEW 06 FINANCIAL ANALYSIS 12 AREA OVERVIEW EXCLUSIVELY LISTED BY BREANNA RUSK Associate DIR: (949) MOB: (714) BREANNA.RUSK@MATTHEWS.COM Lic No (CA) BILL PEDERSEN Senior Associate DIR: (949) MOB: (831) BILL.PEDERSEN@MATTHEWS.COM Lic No (CA) KYLE MATTHEWS BROKER OF RECORD LIC #

4 04 I N V E S T M E N T HIGHLIGHTS

5 5 INVESTMENT HIGHLIGHTS NPV- rent credit for 3-year rent holiday ($305,559) Strong Credit Tenant- Investment grade credit (S&P Rated BBB+, Moody s Baa1), second largest retail pharmacy in the US with over 9,600 locations, Fortune 500 company Ranked # 7 in 2017, CVS Health is the largest retailer of prescription drugs and the second largest pharmacy benefits manager in the US Nationally Recognized Investment Grade Tenancy- lease is fully guaranteed by CVS Health (S&P s BBB+; Moody s: Baaa1). The company is ranked 7th on the Fortune Absolute NNN- Corporate Guaranteed Lease Structure and Ease of Management Tremendous Lease Term Remaining- Over 14 years remaining in Initial Term plus 50 years of options One Mile from Wayland Baptist University with enrollment of almost 4,000 students Portfolio or Individual- Property available as part of a portfolio or as an individual listing Prototype CVS Store Format- with drive-thru constructed in 2006 The only CVS in Plainview allowing for complete market share Desired Hard Corner location at busy intersection with daily traffic counts exceeding 17,000 Family friendly community home to Llano Estacado Museum, parks, hiking trails, and other recreation outlets

6 06 F I N A N C I A L A N A L Y S I S 6

7 LIST PRICE $3,744,998 ANNUALIZED OPERATING DATA LIST CAP NPV RENT CREDIT EFFECTIVE PRICE EFFECTIVE CAP 5.75% $305,559 $3,439, % Monthly Rent Annual Rent Rent/SF Current - 1/31/2029 $17, $215, $18.03 Rent Holiday - 2/1/2029 to 1/31/ Option 1 $16, $193, $16.22 Option 2 $16, $193, $16.22 Options 3-10 FMV FMV FMV RENT HOLIDAY NET PRESENT VALUE CALCULATION Rent Holiday Assumptions Total Fixed Rent Holiday Periods 36 Annual Discount Rate* 5.75% Total Fixed Rent Holiday Value $646,012 Total Rent Holiday Present Value $305,559 *Annual Discount Rate is equal to the list cap rate, and will be adjusted to reflect cap rate at closing. TENANT SUMMARY DEBT QUOTE Loan Amount 65% LTV Interest Rate 4.30% Term 10 Years Amortization 25 Years Loan quote provided by Barrington Capital based on market conditions at this time. Actual rates and terms will vary based on market conditions at closing. Please contact Brian Krebs at the information below: Tenant Trade Name Type of Ownership Lease Guarantor Lease Type Roof and Structure Original Lease Term CVS Fee Simple Corporate NNN Tenant Responsible 25 Years Brian Krebs: (949) or brian.krebs@barringtoncorp.com Rent Commencement Date 12/1/2006 Lease Expiration Date 1/31/2032 Term Remaining on Lease Options Years 10 x 5 Year Options 7

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9 09 T E N A N T O V E R V I E W 9

10 10 CVS CVS Health Corporation, together with its subsidiaries, provides integrated pharmacy health care services. It operates through Pharmacy Services and Retail/LTC segments. The Pharmacy Services segment offers pharmacy benefit management solutions, such as plan design and administration, formulary management, Medicare Part D services, mail order and specialty pharmacy services, retail pharmacy network management services, prescription management systems, clinical services, disease management programs, and medical pharmacy management services. The Retail/LTC segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, personal care products, convenience foods, seasonal merchandise, and greeting cards, and provides photo finishing services. CVS drugstores span across 49 U.S. states, the District of Columbia, Brazil, and Puerto Rico. The company also operates Longs Drugs banner in California, Hawaii, Nevada, and Arizona. Around 1,000 store locations throughout 31 states and in Washington D.C. also have Minute Clinics. CVS continues to evolve from being a general pharmacy store, expanding into more specialized fields of the fast-growing healthcare market. The company s Retail Pharmacy Store Development plan, which focuses on entering new markets, adding stores in existing markets, and relocating stores to more convenient sites, has been essential for business growth and in keeping up with competitors. CVS HEALTH CORPORATION (NYSE: CVS) HEADQUARTERED WOONSOCKET, RHODE ISLAND NO. OF EMPLOYEES ± 243,000 WEBSITE CREDIT RATING (S&P) BBB+ NET INCOME ±$5.32B # OF LOCATIONS ±9,700 YEAR FOUNDED 1963

11 11 CVS LEASE ABSTRACT Tenant: CVS Pharmacy,Inc, a Rhode Island Corporation Guarantor: Corporate Address: CVS Store No CVS Corporation, a Delaware Corporation One CVS Drive Woonsocket, RI Building Size: 11,945 SF Date of Lease: November 15, 2006 Occupancy Date: October 29, 2006 Rent Commencement: December 1, 2006 Lease Commencement: December 1, 2006 Lease Expiration: January 31, 2032 Original Lease Term: Twenty-Five (25) years from Rent Commencement plus any months necessary to have the term expire on the next January 31st* Current Rent: $215, Extension Periods: Required Advance Notice of Exercise of Renewal Options: Repairs and Maintenance: Real Estate Taxes: Insurance: Ten (10) extension periods of five (5) years each Option 1: $193, Option 2: $193, Options 3-10: 1 st year of the third option equal to 101% Fair Market Value. Fair Market Value for the remaining. Six (6) months prior to the expiration of the then-current term. This lease is a triple net lease and all costs, expenses, and obligations relating to the premises shall be paid by Tenant. Tenant to pay all Tax authorities, all real estate taxes and all assessments. Landlord is responsible for the preparation and filing of taxes in a timely manner. Tenant shall maintain All-Risk and General Liability insurance for the Building and name the Landlord as and additional insured party. Utilities: Tenant Assignment and Subletting: Right of First Refusal: Tenant to pay for all utilities consumed by it in the Premises Tenant shall have the right to assign the Lease, or to sublet the whole or any part of the Premises provided Landlord s consent Only during Extension Periods

12 12 A R E A O V E R V I E W 12

13 PLAINVIEW, TX Plainview is the county seat of Hale County, Texas. Plainview is a family-friendly welcoming community with parks, hiking and biking trails, a golf course and other outdoor recreation outlets. Plainview is also home to the Museum of the Llano Estacado which teaches the history of northwest Texas and Eastern New Mexico. Plainview is the home of the main campus for Wayland Baptist University. The University is a part of Plainview First, a coordinating board of economic development. Other members of the board include South Plains College, Covenant Hospital Plainview, Plainview / Hale County Economic Development Corporation, Hale County, Plainview Chamber of Commerce, Plainview Independent School District, Ports to Plains and the City of Plainview. These organizations teaming up creates a variety of industry, retail, and tourism to the town. DEMOGRAPHICS POPULATION 1 Mile 3 Mile 5 Mile 2022 Projection 6,279 22,794 25, Estimate 6,391 23,074 26, Census 6,880 24,592 27, Census 6,695 24,587 27,511 HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2022 Projection 2,080 7,789 8, Estimate 2,118 7,874 8, Census 2,288 8,381 8,752 INCOME 1 Mile 3 Mile 5 Mile 2017 Est. Average Household Income $56,484 $55,038 $55,304 13

14 14 Lubbock, TX Lubbock has grown into a vibrant and bustling city. While many things have changed since its incorporation in 1909, one thing has remained the same: Lubbock continues to be known for the charm and hospitality of its people. Today Lubbock is the crossroads of culture in West Texas. It is the hub of art exhibits, award winning wineries, live music, theatrical performances and more. Thanks to its thriving and increasingly diverse art and culture scene, Lubbock attracts millions of visitors each and every year. Lubbock is not only a cultural hub, but an economic hub as well. Lubbock houses an agriculture-industrial complex and acts as a center for petroleum, engineering products, and cottonseed oil. Texas Tech is the largest employer in Lubbock and plays a major role in the research of wind, soil, and water energy that has a strong influence in Lubbock. Additional fields that act as major industries include healthcare, educational services, construction, manufacturing, accommodation and food services, government, and professional, scientific, and technical services. Top Employers

15 Texas Tech University TEXAS TECH UNIVERSITY Texas Tech University is a public institution located in the heart of Lubbock. Today, the TTU System consists of four component institutions and operates at multiple campuses and academic sites across the state and globe. 29,237 STUDENTS EMERGED AS ONE OF THE TOP PUBLIC UNIVERSITY SYSTEMS LUBBOCK MUSEUMS Museums like the Buddy Holly Center and the West Texas Walk of Fame, are lasting proof of the thriving musical talent developing in Lubbock. The other museums in Lubbock, such as the American Wind Power Museum, the National Ranching Heritage Center, the Museum of Texas Tech University or the Silent Wings Museum, all tell a unique story that grasps the attention of visitors and take you on a journey through history. American Wind Power Museum THOUSANDS O F V I S I T O R S EACH YEAR FROM ACROSS THE WORLD 15

16 16 SURROUNDING TENANTS

17 Information About Brokerage Services Texas law requires all real estate license holders to give the following informaɵon about brokerage services to prospecɵve buyers, tenants, sellers and landlords TYPES OF REAL ESTATE LICENSE HOLDERS:. A BROKER is responsible for all brokerage acɵviɵes, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all others, including the broker s own interests; Inform the client of any material informaɵon about the property or transacɵon received by the broker; Answer the client s quesɵons and present any offer to or counter-offer from the client; and Treat all parɵes to a real estate transacɵon honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a wriʃen lisɵng to sell or property management agreement. An owner's agent must perform the broker s minimum duɵes above and must inform the owner of any material informaɵon about the property or transacɵon known by the agent, including informaɵon disclosed to the agent or subagent by the buyer or buyer s agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a wriʃen representaɵon agreement. A buyer's agent must perform the broker s minimum duɵes above and must inform the buyer of any material informaɵon about the property or transacɵon known by the agent, including informaɵon disclosed to the agent by the seller or seller s agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parɵes the broker must first obtain the wriʃen agreement of each party to the transacɵon. The wriʃen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaɵons as an intermediary. A broker who acts as an intermediary: Must treat all parɵes to the transacɵon imparɵally and fairly; May, with the parɵes' wriʃen consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instrucɵons of each party to the transacɵon. Must not, unless specifically authorized in wriɵng to do so by the party, disclose: ᴑ that the owner will accept a price less than the wriʃen asking price; ᴑ ᴑ that the buyer/tenant will pay a price greater than the price submiʃed in a wriʃen offer; and any confidenɵal informaɵon or any other informaɵon that a party specifically instructs the broker in wriɵng not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transacɵon without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: The broker s duɵes and responsibiliɵes to you, and your obligaɵons under the representaɵon agreement. Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This noɵce is being provided for informaɵon purposes. It does not create an obligaɵon for you to use the broker s services. Please acknowledge receipt of this noɵce below and retain a copy for your records. Kyle Matthews/Matthews Retail Group Inc kyle.matthews@matthews.com (310) Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Phone Kyle Matthews kyle.matthews@matthews.com (310) Designated Broker of Firm License No. Phone Licensed Supervisor of Sales Agent/ Associate License No. Phone Sales Agent/Associate s Name License No. Phone Regulated by the Texas Real Estate Commission Buyer/Tenant/Seller/Landlord Initials Date InformaƟon available at IABS

18 18 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of CVS located at 1801 West Fifth Street, Plainview TX ( Property ). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

19 CVS W e s t F i f t h S t PLAINVIEW, TX O F F E R I N G M E M O R A N D U M EXCLUSIVELY LISTED BY BREANNA RUSK Associate DIR: (949) MOB: (714) BREANNA.RUSK@MATTHEWS.COM Lic No (CA) BILL PEDERSEN Senior Associate DIR: (949) MOB: (831) BILL.PEDERSEN@MATTHEWS.COM Lic No (CA) KYLE MATTHEWS BROKER OF RECORD LIC #