Buchanan Crossings CVS/pharmacy

Transcription

1 Buchanan Crossings CVS/pharmacy 3130 Buchanan Road, Antioch, CA $10,810,000 PRIDE OF OWNERSHIP 18 YEARS LEFT ON LEASE WITH RARE BUILT-IN INCREASES SITUATED ON ONE OF ANTIOCH S MAIN RETAIL CORRIDORS POPULATION OF ALMOST 157,000+ WITHIN 5 MILES RADIUS MEHRAN FOROUGHI Senior Vice President License ID Number: Direct: mehran.foroughi@colliers.com COLLIERS INTERNATIONAL 3 Park Plaza, 12th Floor Irvine, CA 92614

2 Seller has retained Colliers International as exclusive advisor for the sale of the above referenced property. This Analysis has been prepared to provide summary, unverified, information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained here in is not a substitute for a thorough due diligence investigation, nor does it purport to be all inclusive or to contain all of the information which perspective investors may need or desire. All projections have been developed by Seller, Colliers International and designated sources and are based upon assumptions relating to the general economy, competition and other forces beyond the control of the Seller and are therefore subject to variation. DISCLAIMER Colliers International has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the sizeand square footage of the property and improvements, the presence or absence of contamination substances, PCB s mold or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. No representation is made by Seller or Colliers International as to the accuracy or the completeness of the information contained herein and nothing contained herein is, or shall be replied on as, a promise or representation as to the future performance of the Property. The information contained in this Analysis has been obtained from sources we believe to bereliable; however, Colliers International has not verified, and will not verify, any of the information contained herein, nor has Colliers International conducted any investigation regarding these matters and makes no warranty or representation what so ever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Seller and Colliers International each expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers regarding the Property and/or terminate the discussions with any entity at any time with or without notice. Seller shall have no legal commitment or obligations to any entity reviewing the Investment Offering Memorandum, or making an offer to purchase the Property, unless and until such offer is approved by the Seller, a written agreement for the purchase of the Property has been fully executed, delivered and approved by Seller and its legal counsel and any conditions to Seller s obligations thereunder have been satisfied or waived. By proceeding forward and accepting in this Analysis, you accept the terms set forth above. The term of this agreement shall be for the later of (i) one (1) year, or (ii) until such a time that Seller no longer owns the Property.

3 OFFERING SUMMARY LIST PRICE $10,810,000 CAP RATE 4.7% NOI (Year 1-5) $510,000 INVESTMENT SUMMARY PRICE PER SF $684,65 YEARS REMAINING LEASE GUARANTY PROPERTY SUMMARY ADDRESS COUNTY 18 Years Longs Drug Stores California, LLC 3130 Buchanan Road Antioch, CA Contra Costa County BUILDING SF 15,789 LAND AREA SF 85,116 YEAR BUILT 2015 APN

4 CVS Pharmacy - A Single Tenant Offering We are pleased to offer to qualified investors a newly constructed single tenant NNN investment property that is 100% leased to CVS Pharmacy (NYSE:CVS) in the growing city of Antioch, California. The 20 Year NNN lease expires in November 2035 and includes fixed rental escalations of 6% every 5 years, including all option periods. There are four 5 years renewal options. The building is approximately 15,789 square feet that is situated on acres of land on 3130 Buchanan Road, Antioch, CA PROPERTY OVERVIEW The property in one of Antioch s main retail corridors - is located at the intersection of Buchanan Road and Sommersville Road and is easily accessible to State Highway 4. It is surrounded by a dense residential housing market with over 80,000+ people within 3 miles of subject property and population growth of 3.57% in Surrounding retailers include Macy s, Sears, Forever 21, 24 Hour Fitness, Dollar Tree, Big Lots, 99 Cent Only, Lowe s, Costco, Target, Burlington Coat Factory, Ross, JoAnn s Fabrics, Petsmart, Party City, Big 5 Sporting Goods, Red Lobster, Olive Garden, Outback Steakhouse, and In-N-Out Burger CVS Pharmacy is one of the nation s largest pharmacy chains, with approximately 7,800 stores and employs over 200,000 employees across 45 states, the District of Columbia, and Puerto Rico. This is a great opportunity to invest in a newly constructed single tenant NNN CVS with new 20 years lease, fixed rental increases, and strong fundamentals in the fast growing Antioch market in Southern California.

5 Address 3130 Buchanan Road, Antioch, CA Lease Year 1 to 5 (Nov. 2015) Lease Year 6 to 10 (Nov. 2020) Lease Year 11 to 15 (Nov. 2025) Lease Year 16 to 20 (Nov. 2030) Option #1 (Nov. 2035) Option #2 (Nov. 2040) Option #3 (Nov. 2045) Option #4 (Nov. 2050) Rent Income $510,000 $540,600 $573,036 $607,418 $643,863 $682,495 $723,445 $766,851 Expense Recovery NNN NNN NNN NNN NNN NNN NNN NNN Total Projected Expenses NNN NNN NNN NNN NNN NNN NNN NNN Total Net Operating Income $510,000 $540,600 $573,036 $607,418 $643,863 $682,495 $723,445 $766,851 Sale Price: $10,810,000 $10,810,000 $10,810,000 $10,810,000 $10,810,000 $10,810,000 $10,810,000 $10,810,000 RENT ROLL Cap Rate 4.72% 5.00% 5.30% 5.62% 5.96% 6.31% 6.69% 7.09% Building Sq. Ft. 15,789 15,789 15,789 15,789 15,789 15,789 15,789 15,789 Price Per Sq. Ft. $ $ $ $ $ $ $ $ Land Sq. Ft. 85,116 85,116 85,116 85,116 85,116 85,116 85,116 85,116 Price Per Sq. Ft. (land) $ $ $ $ $ $ $ $ % Down Payment $5,405,000 $5,405,000 50% Loan Amount $5,405,000 $5,405,000 Total Net Operating Income $510,000 $540,600 Debt Service ($319,072) ($319,072) Cash Flow $190,928 $221,528 Cash on Cash 3.53% 4.10% Principal Reduction (Avg. 5 years) $91,121 $103,488 Cash Flow with Principal Reduction $282,049 $325,016 Cash on Cash Principal Reduction 5.22% 6.01% New Loan - Financing Assumptions: Interest rate is assumed to be 4.25% with 30 yr. amortization

6 Name Sq. Ft. November 2015 Rent per Annual Monthly Rent Sq. Ft. Lease Commencement Term CVS Pharmacy 15,789 $510,000 $42,500 $32.30 Nov Years Lease Notes 6% Rent Increase Every 5 Years Lease Type NNN Option Four (4) five (5) year options Rent Schedule Annual Monthly Rent Per Sq. Ft Commencement Date RENT ROLL Lease Year 1 through 5 Lease Year 6 through 10 Lease Year 11 through 15 Lease Year 16 through 20 $510,000 $42,500 $32.30 $540,600 $45,050 $34.24 $573,036 $47,753 $36.29 $607,418 $50,618 $38.47 Nov-15 Nov-20 Nov-25 Nov-30 First Option - 5 Years $643,863 $53,655 $40.78 Nov-35 Second Option - 5 Years $682,495 $56,875 $43.23 Nov-40 Third Option - 5 Years $723,445 $60,287 $45.82 Nov-45 Fourth Option - 5 Years $766,851 $63,904 $48.57 Nov-50

7 CVS Pharmacy is the second largest pharmacy chain in the United States, with more than 7,600 stores, and is the second largest US pharmacy based on total prescription revenue. As the retail pharmacy division of CVS Caremaker, it ranks as the 10th largest company in the United States according to Fortune 500 in CVS Pharmacy s leading competitor Walgreens ranked 35th. CVS sells 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 and beverages through their CVS Pharmacy and Longs Drugs retail stores and online through CVS.com. It also provides healthcare services through its more than 640 Minute Clinic medical clinics as well as their Diabetes Care Centers. Most of these clinics are located within CVS stores. TENANT OVERVIEW CVS is uniquely positioned to engage plan members in behaviors that improve their health and to lower overall health care costs for health plans, plan sponsors, and their members. CVS Caremark is a market leader in mail order pharmacy, retail pharmacy, specialty pharmacy, and retail clinics, and is a leading provider in Medicare Part D Prescription Drug Plans. As one of the country s largest pharmacy benefits managers, they provide access to a network of approximately 68,000 pharmacies, including more than 7,800 CVS/pharmacy stores that provide unparalleled service and capabilities. Their stores fill nearly one in five retail prescriptions nationwide, and have the #1 or #2 market share in 20 of the top 25 U.S. drugstore markets. CVS Caremark employs over 217,000 associates in 45 states, the District of Columbia, and Puerto Rico. At year-end they operated 7,458 retail drugstores, 640 Minute Clinic locations, 31 retail specialty pharmacy stores, 12 specialty mail order pharmacies and four mail order pharmacies as well as CVS.com and Caremark.com web sites. CVS Caremark was named as one of the most reputable companies in the United States, according to the 2011 Most Reputable Companies list published by Forbes Magazine in partnership with the Reputation Institute.

8 SITE PLAN (NAP) PAD A (NAP) PAD B (NAP) * * SHOPS E (NAP) * BUCHANAN ROAD Strip Center (NAP) SOMERSVILLE ROAD * Proposed development Pad A, B, and Shops E (strip center) investment opportunities available in Buchanan Crossings

9 Grocery Outlet (NAP) - Grocery Co-tenant and located behind CVS CO-TENANTS (NAP) Newly Developed Strip Center (NAP) - 3 spaces up for lease and located in front of CVS. Subway has started their business.

10 AERIAL MAP Delta Fair Blvd Delta View Apartments Century Blvd Auto Center Drive Chateau Mobile Home Park Somersville Road Vista Diablo Mobile Estates Buchanan Road * Drawn borders are to be used as a reference tool only. Exact dimmensions to be confirmed by Buyer.

11 Antioch, California, located in the East Bay region of San Francisco Bay Area along the San Joaquin-Sacramento River Delta, is the second largest city in Contra Costa County and a suburb of San Francisco and Oakland. It is just off of Highway 4, the major easteast highway serving an average of 112,000 vehicles a day. With a population of over 108,000 people, Antioch has become the heart of Eastern Contra Costa County, offering a variety of employment shopping, and vast recreational activities. AREA OVERVIEW In 2014, Antioch was granted to prepare a Downtown Specific Plan to redevelop Downtown Antioch, also known as Rivertown. It will focus on economic revitalization by encouraging a balanced mix of jobs and housing that will work together to bring new interest in living, shopping, dining, working, and playing in Downtown Antioch. Along with high population growth, Antioch is one of the few Bay Area communities that offer affordable housing. As a result, the area has attracted an influx of new arrivals. To accommodate this, the city is adding a BART station which will help people to conveniently commute to and from San Francisco and Oakland area for work. The State Route 4 widening project was also completed in In addition, the pace of development in Antioch has spurred activity for financial and insurance institutions, contractors, and other types of service-oriented businesses. The increased de-velopment has created increased employments in schools, hospi-tals, and other local service sectors. Reference:

12 LOCATOR MAP Driving Directions From US-101 S (San Francisco) Merge onto US-101 S Merge ontio I-80 E Continue onto I-580 E Merge onto CA-24E Exit right on Ygnacio Valley Rd Turn right on Buchanon Rd Destination will be on the left 1.3 mi 8.8 mi 13.8 mi 0.6 mi 12.8 mi 2.7 mi

13 REGIONAL MAP CVS Pharmacy Antioch, CA Subject Property is 1 hour from San Francisco and 6 hours from Los Angeles

14 DEMOGRAPHICS POPULATION 1-MILE 3-MILE 5-MILE Projected Population (2020) 14,781 87, ,682 Estimated Population (2015) 14,167 84, ,058 Census Population (2010) 13,596 81, ,412 Growth % 3.57% 5.83% Growth % 3.89% 5.49% 2015 AGE OF POPULATION 1-MILE 3-MILE 5-MILE Average Age Median Age HOUSEHOLDS 1-MILE 3-MILE 5-MILE Projected Population (2020) 5,029 29,430 52,350 Estimated Population (2015) 4,801 28,145 49,532 Census Population (2010) 4,580 26,895 46,873 Growth % 4.65% 5.67% Growth % 4.56% 5.69% INCOME STATISTICS 1-MILE 3-MILE 5-MILE Average Household Income $63,442 $67,702 $75,450 Median Household Income $50,586 $53,010 $59,945 POPULATION BY RACE 1-MILE 3-MILE 5-MILE White Alone 2,367 14,243 24,759 Black or African American Alone ,030 American Indian and Alaska Native Alone Asian Alone Native Hawaiian & Other Pacific Islander Alone Some Other Race Alone 2,545 16,227 28,340 Two or More Races 534 3,179 5,553 Not Hispanic or Latino 8,447 49,107 95,951 Hispanic or Latino 5,720 35,016 61,107

15 DEMOGRAPHIC MAP CVS Pharmacy Antioch, CA

16 DEMOGRAPHIC MAP CVS Pharmacy Antioch, CA

17 Exclusively Listed By: MEHRAN FOROUGHI Senior Vice President License ID Number: Direct: COLLIERS INTERNATIONAL 3 Park Plaza, Suite 1200 Irvine, CA 92614