Freestanding Fee Simple Absolute NNN Zero Landlord Responsibility Corporate Guaranteed CVS Pharmacy. The tenant has 15.5 years remaining on their initial term with 10 (5-year) options to extend demonstrating their commitment to the site; the first 2-years of the first option period is at 101% of FMV, then the rent is 100% of FMV for each option period (fixed for each 5-year term starting in 2047). The lease is corporate guaranteed by CVS Health Corporation and is absolute NNN with zero landlord responsibilities, making it a management-free investment opportunity for a passive investor. CVS Pharmacy is strategically located at the signalized, hard corner intersection with traffic counts of 16,601 on N West Ave and 20,867 on W Shields Ave, averaging a combined ±37,468 vehicles per day. The site is equipped with a large pylon sign and drive-thru pharmacy, providing excellent visibility and convenience for customers. Additionally, the building is located within a major retail corridor and is surrounded by a strong mix of quality tenants such as Starbucks, Vallarta Supermarket, Pizza Hut, Metro by T-Mobile, and Me-N-Ed's Pizza Parlor. Moreover, Fresno City College (24,377 Students) is located less than 3-miles of the subject property, providing a direct consumer base. The 5-mile trade area is supported by more than 133,388 residents spending an average of $2,620,250,544 and 162,139 daytime employees. Residents within 3-mile of the subject property feature a healthy average household income of $65,084. This safe and secure deal houses a corporate tenant on only $36.36/SF/YEAR rent, making them an extremely profitable and lucrative location. As a build-to-suit in 2011, CVS has continued a long term occupancy with various recent tenant improvements including a newly remodeled interior, freshly updated amenities, and a pristine exterior with lush landscaping and like-new feel. The 14,093 SF building sits across from Bank of America/99 C Only/Western Dental and is conveniently located in the center of town. With 65.5 years left in the options through January 2087, this property will experience a dramatic increase in NOI with market rent. Great opportunity for a long term investor looking for a corporate guarantee and a Tenant who pays expenses direct. Unique buyer credit offering: There is a zero cash flow/section 467 loan component (maturity is Jan 2034), a rent holiday starting Def 2034, and a defeasance loan that must be assumed. The seller is willing to credit the rent holiday of Feb 2034 – Jan 2037 in the amount of $1,537,250.40, making this a wash (prepaid rent 12.5 years early). Further, in consideration of the buyer assuming the existing loan at 5.926% interest, the seller is willing to credit $165,000 to buy down the interest rate; said credit will offset the difference between the current and assumed interest rates. With the CVS market cap rate at 5.45% and this deal at a 6.45% (1% variance), and the $165K interest rate credit (0.299% variance), the realized interest rate for a buyer would be ~1.299% lower than the current rate of 5.926%, making this deal comparable to an assumed loan interest rate of 4.627%. With the total buyer credit of $1,702,250.40 from the seller, the required down payment injection is $1,733,074.86. Ideal Long Term Growth Investment Opportunity for a appreciation value-add investor to acquire this deal with a cash injection of only $1.733M or $122/SF.
« show less
Retail Space
© 2008-2024 Rofo.com. All rights reserved.