Asking Price
Sq. Footage 13,225
NOI Net Operating Income
Cap Rate 5.20%

Attributes

Year Built 2017
Lease Type NNN
Current / Passing Rent
Lease Expiration 2043-01-31
Remaining Term 23 years
Tenant CVS Health
Guarantor CVS Health
Lot Size 2.51 ACRES

Property Description

JLL is pleased to offer for sale the fee-simple interest in a single-tenant CVS Pharmacy (the “Property”, or “Asset”) in El Centro, California. The Property was built in 2017 and is leased to CVS, a leading retail pharmacy chain with over 9,900 locations across the United States and $194 billion in annual revenue. The absolute triple-net lease features over 23 years of remaining lease term, a corporate guaranty from CVS Health Corporation (S&P ‘BBB’), ten, five-year renewal options, and absolutely zero landlord responsibilities. Strategically located on the hard corner of Imperial Avenue and Aurora Drive with no nationally recognized retail pharmacies in a one-mile radius, the Property possesses unrivaled market share and excellent exposure along a highly-trafficked thoroughfare.

The Property is subject to assumable CTL financing, creating a substantial tax shelter against earned income from other investments. This offering presents a unique opportunity to acquire a recently-constructed building leased to an investment-grade tenant on an absolute triple-net lease, while requiring minimal equity due to in-place financing.


Investment Highlights

Long-term absolute triple-net lease with over 23 years of primary lease term remaining and absolutely zero landlord responsibilities

Leased to CVS, the largest retail pharmacy chain in the United States by revenue with $195 billion in annual sales and over 9,900 retail locations

Corporate guaranty from CVS Health Corporation offers an investment-grade ‘BBB’ credit rating from Standard & Poor’s and greater security to the underlying rental payments

Strategically positioned within highly-trafficked retail thoroughfare with 27,500 vehicles passing on a daily basis and no nationally-branded retail pharmacies within a one-mile radius, providing excellent exposure and very limited market competition

Attractive in-place CTL financing generates passive losses that enable investors to offset or reduce passive income, therefore reducing investor’s tax liability

Pay-down re-advance feature allows 1031 exchange buyers to satisfy equity and debt portions of their exchange and extract excess equity over the required purchase equity without tax liability


Adam Friedlander
Adam Friedlander
VP, Capital Markets
Licensed in
CA - 1806555

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