OFFERING MEMORANDUM CVS 1036 E Forsyth Street Americus, GA Representative Photo CVS, Americus GA 1
Representative Photo contents 03 EXECUTIVE SUMMARY 04 06 08 12 Financial OVERVIEW Lease Abstract tenant overview area OVERVIEW exclusively listed by bill pedersen National Drug Store Specialist Bill.Pedersen@matthews.com DIR (949) 432-4501 MOB (831) 246-0646 LIC # 01975700 (CA) Kyle B Matthews Chairman & CEO Kyle.Matthews@matthews.com DIR (310) 919-5757 MOB (310) 622-3161 LIC # 01469842 (CA) KYLE MATTHEWS BROKER OF RECORD LIC # 363764 2 Offering Memorandum
executive summary offering summary Bill Pedersen and Kyle Matthews of Matthews Real Estate Investment Services are pleased to offer, to qualified investors, a long-term CVS ground lease in Americus, GA. CVS is paying low rent making the location a secure long term investment. This is one of the few CVS currently on the market with 10% rent increases in the initial term providing a strong hedge against inflation. The CVS is strategically located in the center of Americus with excellent visibility and accessibility. Americus is an established market in south Georgia and this is the only CVS within 21-miles. investment highlights Rare 10% Rent Increases in Initial Term CVS has 10% rent increases every 5-years in the initial term and throughout the renewal periods a strong hedge against inflation Extremely Low Rent CVS is only paying $102,850 annually in rent making this location incredibly attractive to the tenant Absolute NNN Ground Lease Zero landlord responsibilities Long Term Lease 15 years remaining on the original 25-year lease with five (5) five (5) year renewal options Prototype Store Format 2006 construction and the latest prototype building with a drive-thru pharmacy Excellent Real Estate Fundamentals Only CVS within a 21-mile radius, Americus is an established community in South Georgia and is the home of Habitat for Humanity s international headquarters Excellent Retail Synergy Retail corridor includes: Food Lion, Walgreens, Taco Bell, Wendy s, Subway, Krystal, Wells Fargo, Advance Auto Parts, Hibbett Sports, Burger King, O Reilly Auto Parts, Aaron s, Hardee s, McDonald s, Rite Aid and more Investment Grade Credit Tenant CVS Health has investment grade credit (S&P Rated BBB+, Moody s Baa1). CVS is the second largest retail pharmacy in the US with over 9,600 locations, is the largest retailer of prescription drugs, and the second-largest pharmacy benefits manager in the U.S. CVS Health is a Fortune 500 company - Ranked #7 in 2016 CVS, Americus GA 3
financial overview 4 Offering Memorandum
CVS 1036 E Forsyth Street, Americus, GA 31709 List Price...$1,870,000 CAP Rate - Current...5.50% Gross Leasable Area...± 12,206 SF Year Built... 2006 Store Number...4672-02 Annualized Operating Data Monthly Rent Annual Rent CAP Rate Current $8,570.83 $102,850.00 5.50% Years 16-20 $9,427.92 $113,135.00 6.05% Years 21-25 $10,370.71 $124,448.50 6.66% First Renewal Period $11,407.78 $136,893.35 7.32% Second Renewal Period $12,548.56 $150,582.69 8.05% Third Renewal Period $13,803.41 $165,640.95 8.86% Fourth Renewal Period $15,183.75 $182,205.05 9.74% Fifth Renewal Period $16,702.13 $200,425.55 10.72% Tenant Summary Tenant Trade Name CVS Type of Ownership Ground Lease Lease Guarantor Corporate Lease Type Absolute NNN Ground Lease Landlord Responsibilities None Original Lease Term 25 Years Lease Commencement Date 8/4/2006 Rent Commencement Date 1/31/2007 Lease Expiration Date 1/31/2032 Term Remaining on Lease ± 14.75 Years Increases 10% every five (5) years Options Five (5) five (5) year options Drive Thru Yes Representative Photo CVS, Americus GA 5
lease abstract Tenant: CVS GA 4672 L.L.C. Guarantor: Corporate Store number: 4672-02 Address: 1036 E Forsyth St, Americus, GA 31709 Size: 1.66 Acres Lease Type: Ground lease Date of Lease: February 22, 2006, amended February 23, 2006 Lease Commencement: August 4, 2006 Rent Commencement: January 31, 2007 Lease Expiration: January 31, 2032 Lease Term: Renewal Options: Twenty-five (25) years Five (5) five (5) year options Current Annual Rent: $102,850.00 Rent Increases: Option Rent: Real Estate Taxes: Maintenance and Repairs: Utilities: Tenant Assignment and Subletting: Right of First Refusal January 31, 2022: $113,135.00 January 31, 2027: $124,448.50 First renewal period: $136,893.35 Second renewal period: $150,582.69 Third renewal period: $165,640.95 Fourth renewal period: $182,205.05 Fifth renewal period: $200,425.55 Landlord pays all taxes, tenant reimburses for pro rata share Tenant, at its own cost and expense, kept and maintained in repair and good condition, all buildings and improvements upon the premises Tenant pays for all utilities Tenant may assign, transfer, or sublease the lease (premises) upon landlord s prior written consent Thirty (30) days 6 Offering Memorandum
Representative Photo CVS, Americus GA 7 Tenant Name, City, State 7
Representative Photo tenant overview 8 Offering Memorandum
Property Name CVS Property Type Net Leased Drug Store Company Trade Name CVS Health Corporation (NYSE: CVS) Ownership Public Credit Rating (S&P) BBB+ No. of Locations ± 9,700 No. of Employees ± 243,000 Headquartered Woonsocket, Rhode Island Website www.cvs.com Year Founded 1963 TENANT OVERVIEW 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, as well as provides photo finishing services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. Hook-SupeRx, LLC operates as a subsidiary of CVS Health Corporation and retails drugs in the United States. It is based in Indianapolis, Indiana and does business as CVS Pharmacy. GEOGRAPHIC REACH 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. STRATEGY CVS continues to evolve from being a general pharmacy store, expanding into more specialty 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 Walgreens. CVS has been successful in its ventures for its store count has increased from 7,388 stores at the end of 2011 to nearly 9,700 stores today. In addition to opening new stores, CVS has made efforts to increase sales at existing ones. Prescription drugs account for more than two-thirds of its sales, and the retailer is attempting to grow revenues from over-the-counter medications and general merchandise through its growing private-label product offering. CVS, Americus GA 9
the offering parcel map Property Name Property Address CVS 1036 E Forsyth Street, Americus, GA Assessor s Parcel Number 063-16-6704 Site Description Number of Stories One Year Built 2006 Gross Leasable Area (GLA) Lot Size Type of Ownership ± 12,206 SF 1.66 acres NNN Mayo Street ±9,000 ADT Oceanside Blvd ± 31,792 E Forsyth Street ±27,000 ADT College Blvd ± 40,116 10 Offering Memorandum
surrounding tenants CVS, Americus GA 11
area overview AMERICUS demographics POPULATION 3 Mile 5 Mile 10 Mile 2022 Projection 21,882 23,707 26,566 2017 Estimate 22,363 24,236 27,114 2010 Census 24,085 26,137 29,189 2000 Census 23,832 25,989 28,935 HOUSEHOLDS 3 Mile 5 Mile 10 Mile 2022 Projection 8,204 8,883 9,964 2017 Estimate 8,309 9,004 10,090 2010 Census 8,772 9,527 10,670 INCOME 3 Mile 5 Mile 10 Mile 2017 Est. Average Household Income $66,815 $67,348 $70,858 12 Offering Memorandum
Americus, Georgia Americus is a city in Sumter County, Georgia. Americus is an exciting town and is the home of Habitat for Humanity s International headquarters, the famous Windsor Hotel, the Fuller Center for Housing international headquarters, The Rosalynn Carter Institute for Caregiving, Glover Foods and many more wellknown organizations. Americus is rich in history and culture and offers a variety of social opportunities including theaters, dining, sport activities and churches for residents. The town also prides itself in education, as it is home to two institutions of higher learning Georgia Southwestern State University and South Georgia Technical College-Main Campus Americus is approximately nine miles east of Plains and 150 miles south of Atlanta, in the middle of a triangle formed by Albany, Columbus, and Macon, sixteen miles west of the Flint River. Americus is decorated with historical architectural design, rows of boutique shops and unique restaurants featuring anything from five star cuisines to fantastic home-cooked traditional southern fare. attractions TOP EMPLOYERS Attractions include the Andersonville National Historic Site, Brickyard Plantation Golf Club & RV Park, Georgia Rural Telephone Museum, Habitat for Humanity/Global Village and Discovery Center, Plains Historic Inn & Antiques, Rylander Theatre, SAM Shortline Excursion Train, Thirteenth Colony Distilleries, and the historic Best Western plus Windsor Hotel. Sumter County Schools Eaton Cooper Lighting Habitat for Humanity Wal-Mart Phoebe Sumter Medical Center CVS, Americus GA 13
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of CVS located at 1036 E Forsyth Street, Americus, GA ( Property ). It has been prepared by Matthews Real Estate Investment Services. 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 Real Estate Investment Services. 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 Real Estate Investment Services 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 Real Estate Investment Services 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.
exclusively listed by bill pedersen National Drug Store Specialist Bill.Pedersen@matthews.com DIR (949) 432-4501 MOB (831) 246-0646 LIC # 01975700 (CA) Kyle B Matthews Chairman & CEO Kyle.Matthews@matthews.com DIR (310) 919-5757 MOB (310) 622-3161 LIC # 01469842 (CA) KYLE MATTHEWS BROKER OF RECORD LIC # 363764 CVS 1036 E Forsyth Street Americus, GA CVS, Americus GA 15