Post on 15-Aug-2020
transcript
PHARMACYCVSMEM
ORA
NDUM
CVS | St. Paul, MN
OFFER
ING
sean@nnnadvisory.com
CA LIC #01438647
Sean O’SheaManaging Principal
(310) 433-8851
Stephen DombrovskiSuntide Commercial Realty, Inc MN Broker of Record
Table of Contents
The O’Shea Net Lease Advisory
CVS | St. Paul, MN
Pricing & Financial AnalysisBrand OverviewInvestment Overview
Property DescriptionBirds Eye Tenant Map Aerial MapCity Map
DemographicsDemographics ReportCity Overview
EXCLUSIVELY LISTED BY: Sean O’SheaManaging Principal (310) 433-8851
The O’Shea Net Lease Advisory
CVS | St. Paul, MN
CVS Health Corporate 'Best-in-Class’
CVS Health Corporation (formerly CVS Caremark Corp.) together with its subsidiaries is one of the largest pharmacy health care providers in the United States; with integrated offerings across the entire spectrum of pharmacy care. CVS is unique among the big three retail drugstore chains (Walgreen’s, Rite Aid, CVS), in that is operates its own pharmacy benefit management (”PBM”), and is thus, an integrated pharmacy health care provider. CVS’s offerings include pharmacy benefit management services; mail order, retail and specialty pharmacy; disease management programs; and retail clinics. CVS operates drugstores throughout the U.S., the District of Columbia, and Puerto Rico. As of December 31, 2014, CVS operated 7,599 retail locations. Its stores sell prescription drugs, as well as other products such as nonprescription medications, health and beauty aids, and cosmetics. The company also operates the nation’s largest medical care clinic, with 900 MinuteClinic® health care clinics throughout the country. MinuteClinics® are sta�ed by nurse practioners and physician assistants, who utilize nationally recognized protocols to diagnose and treat minor health conditions, perform health screenings, monitor chronic conditions, and deliver vaccinations. CVS expects to grow MinuteClinic® 1,500 locations in more than 35 states by 2017.
Existing retail stores range in size from approximately 5,000 to 25,000 square feet, although most new stores range in size from approximately 8,000 to 13,000 square feet and typically include a drive-thru pharmacy. During 2014, CVS �lled approximately 734 million retail prescriptions, or approximately 21% of the U.S. retail pharmacy market. As of December 31, 2014, CVS operated 900 retail health care clinics in 31 states and the District of Columbia under the MinuteClinic® name, the vast majority of which are located within CVS/pharmacy stores. There were 24 million patient visits, nationally.
The quarterly dividend increased by 38 percent in 2013 and the company recently announced another 22 percent increase for 2014, which marks the 11th consecutive year of increases.
CVS is strongly positioned to take full advantage of the upcoming ‘Generic Wave’ due to its integrated systems with Caremark for pharmacy bene�t management (”PBM”) for 2015 and beyond.
Brand Overview
03
Investment Overview
The O’Shea Net Lease Advisory
LocationAsking Price (Rent Credit)
810 Maryland Ave E, St. Paul, MN 55106
$4,577,029
Debt Status
Lease Expires
CVS | St. Paul, MN
RareOption Periods
04
5.25%
1/31/2030
Option 1 @ $320,652 (33% increase) Options 2 -10 @ FMV
Rent Holiday* 3 Years (Year 23 - 25)
Free & Clear
Lease Type
Building Size
Absolute NNN
15,460 ± SFCap Rate
NOI $240,294.24
Adjusted Net Price (w/ Credit) $3,856,146
6.23%Adjusted Net Cap Rate (w/ Credit)
Full Credit (for Rent Holiday) $720,882 Year Built 2004
The O’Shea Net Lease Advisory
05
Bird’s Eye
CVS | St. Paul, MN
Arcade St
Maryland Ave E
Rose Ave
The O’Shea Net Lease Advisory
06
Surrounding Retailers
CVS | St. Paul, MN
Arcade Animal Hospital
Liberty Tax Services
Community Dental Care - St. Paul
The O’Shea Net Lease Advisory
07
City Map
CVS | St. Paul, MN
The O’Shea Net Lease Advisory
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City Map
CVS | St. Paul, MN
St. Paul
Minneapolis
The O’Shea Net Lease Advisory
City Map
09 CVS | St. Paul, MN
2004
15,460 SF
General Retail
Year Built:
GLA:
Building Type:
Secondary: Drug Store
Radius 1 Mile 3 Mile 5 Mile
Population
2023 Projection 24,940 155,772 346,879
2018 Estimate 24,137 150,084 334,836
2010 Census 23,006 139,276 314,477
Growth 2018 - 2023 3.33% 3.79% 3.60%
Growth 2010 - 2018 4.92% 7.76% 6.47%
2018 Population by Hispanic Origin 3,263 18,043 34,795
2018 Population 24,137 150,084 334,836
White 10,095 41.82% 70,383 46.90% 199,707 59.64%
Black 3,587 14.86% 26,379 17.58% 53,390 15.95%
Am. Indian & Alaskan 507 2.10% 2,358 1.57% 4,235 1.26%
Asian 8,783 36.39% 44,337 29.54% 63,806 19.06%
Hawaiian & Pacific Island 29 0.12% 142 0.09% 352 0.11%
Other 1,136 4.71% 6,484 4.32% 13,345 3.99%
U.S. Armed Forces 8 50 88
Households
2023 Projection 7,778 56,610 135,705
2018 Estimate 7,534 54,460 130,990
2010 Census 7,220 50,084 123,037
Growth 2018 - 2023 3.24% 3.95% 3.60%
Growth 2010 - 2018 4.35% 8.74% 6.46%
Owner Occupied 4,242 56.30% 27,001 49.58% 73,374 56.01%
Renter Occupied 3,292 43.70% 27,459 50.42% 57,616 43.99%
2018 Households by HH Income 7,533 54,461 130,990
Income: <$25,000 1,964 26.07% 15,325 28.14% 29,476 22.50%
Income: $25,000 - $50,000 1,968 26.13% 14,177 26.03% 31,909 24.36%
Income: $50,000 - $75,000 1,513 20.08% 10,092 18.53% 24,914 19.02%
Income: $75,000 - $100,000 966 12.82% 6,327 11.62% 16,459 12.57%
Income: $100,000 - $125,000 451 5.99% 3,752 6.89% 10,523 8.03%
Income: $125,000 - $150,000 258 3.42% 2,102 3.86% 7,278 5.56%
Income: $150,000 - $200,000 319 4.23% 1,777 3.26% 6,156 4.70%
Income: $200,000+ 94 1.25% 909 1.67% 4,275 3.26%
2018 Avg Household Income $59,568 $58,912 $69,947
2018 Med Household Income $47,793 $45,433 $53,779
The O’Shea Net Lease Advisory
10CVS | St. Paul, MN
Demographics
Saint Paul, the state capital of Minnesota, forms the "Twin Cities" with neighboring Minneapolis. It’s home to the Science Museum of Minnesota, with its dinosaur specimens and immersive theater. The Minnesota History Center has interactive exhibits about the region's history. Nearby is the beaux arts Cathedral of Saint Paul. The Cass Gilbert–designed Minnesota State Capitol features paintings of Civil War scenes.
As of the census of 2010, there were 285,068 people, 111,001 households, and 59,689 families residing in the city. The racial makeup of the city was 60.1% white, 15.7% African American, 1.1% Native American, 15.0% Asian, 0.1% Pacific Islander, 3.9% from other races, and 4.2% from two or more races. Hispanic or Latino people of any race were 9.6% of the population.
Major corporations headquartered in Saint Paul include Ecolab, a chemical and cleaning product company which was named in 2008 by the Minneapolis / St. Paul Business Journal as the eighth best place to work in the Twin Cites for companies with 1,000 full-time Minnesota employees and Securian Financial Group Inc.
The O’Shea Net Lease Advisory
CVS | St. Paul, MN
City Overview
11
CVS | St. Paul, MNOffering Memorandum | 810 Maryland Ave E St. Paul, MN 55106
Sean O’Shea Managing Principal(310) 433-8851sean@nnnadvisory.com
CA LIC #01438647 Stephen DombrovskiSuntide Commercial Realty, IncMN Broker of Record