14115 EAST SAM HOUSTON PARKWAY NORTH | HOUSTON, TX 77044 Pharma Property Group | 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com EXCLUSIVELY LISTED houston msa INVESTMENT OFFERING JASON STUART PONGSRIKUL Managing Principal CA DRE Lic. 01918332 Direct: 619-297-0055 x302 [email protected]Listed in association with WILLIAM LEE RUSSELL Broker of Record TX DRE Lic. 361025 Direct: 512.422.1397 [email protected]CHRIS BARRY Associate CA DRE Lic. 2018350 Direct: 619.297.0055 x 305 [email protected]
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14115 EAST SAM HOUSTON PARKWAY NORTH | HOUSTON, TX 77044
Pharma Property Group | 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com
E X C L U S I V E L Y L I S T E D h o u s t o n m s a I N V E S T M E N T O F F E R I N G
14115 EAST SAM HOUSTON PARKWAY NORTHHOUSTON, TX 77044
Investment HighlightsSTABLE INCOMERental income guaranteed by CVS parent corporate (S&P BBB+) investment grade Fortune 500 Company with over 7,900 locations. TRAFFIC COUNTSThe subject property is located at the on/off ramp of Sam Houston Parkway at West Lake Houston Parkway with traffic counts of approximately 70,000 cars per day.
LEASE TERM AND RENT INCREASESThere are approximately 15 years left on the initial lease term before the six (5-year) options to renew beginning 2033. This is an absolute net lease with no landlord responsibilities and rent increases in the options.
AREA DESCRIPTIONThe subject property is located approximately twenty miles northeast from downtown Houston in an affluent suburb directly off the Sam Houston Parkway toll road. The property is adjacent to Memorial Hermann Convenient Care Center, a clinic offering medical appointments outside normal medical office hours. Also a block away is the Summer Creek High School with approximately 2,500 students enrolled.
SURROUNDING RETAIL CORRIDORNational retail and local tenants within a 1/2 mile include: Kroger
Marketplace Chevron Western Union Chase Bank Old Navy T-Mobile
Dick's Sporting Goods
Carls Jr. Five Guys Ross Dress for
Less PetSmart
The Home Depot
Michaels Starbucks H-E-B Grocery Whataburger
DEMOGRAPHICSAverage household income is $136,921 in a one mile radius, $114,489 in a three mile radius, and $101,806 in a five mile radius. Total one mile population count is 3,422 residents, 36,692 residents in a three mile radius, and there are 124,186 residents in a five mile radius.
BUYER CREDITPricing is based on higher rent that commences in November of 2019. Buyer will be credited an amount of $17,415 per year until the rent increases in 2019.
summer creek high school
n o rth sa m h o u sto n pa r kway east - 37,6 63 ca rs per day
west lake houston parkway - 32,8
24 car
s pe r day
SUBJECT PROPERTY
page 3Jason Stuart PongsrikulManaging Principal, Pharma Property Group
14115 EAST SAM HOUSTON PARKWAY NORTHHOUSTON, TX 77044
The subject property is located approximately twenty miles northeast from downtown Houston in an affluent suburb directly off the Sam Houston Parkway toll road. The property is adjacent to Memorial Hermann Convenient Care Center, a clinic offering medical appointments outside normal medical office hours. Directly behind the property is Westlake Market place anchored by Krogers, Burlington Coat Factory and Ross Dress for Less. A block away is the Summer Creek High School with approximately 2,500 students enrolled. Some other area draws include:
AREA DESCRIPTION
Location Aerial
Future site of Lone Star College Technology Center with approximately 2,500 Students and San Jacinto College with approximately 10,000 students just blocks away.
George Bush Intercontinental Airport, with over 42 million passengers in 2016.
Lake Houston, an approximately 12,000 acre wildlife preserve and public fishing area.
FMC Technologies' 1,000,000 office park with approximately 1,800 employees directly to the south.
Future site of Generation Park is a new 4,000 acre master planned office and industrial commercial development just southeast of the subject property.
Golf Club of Houston, home of the Shell Houston Open and part of the PGA Tour.
Lindsay/Lyons Park and Sports Complex, a 136-acre facility with baseball, football, soccer fields and multiple playgrounds and picnic areas.
george bush intercontinental
airport
SUBJECT PROPERTYdowntown
houston20 miles
page 5Jason Stuart PongsrikulManaging Principal, Pharma Property Group
14115 EAST SAM HOUSTON PARKWAY NORTHHOUSTON, TX 77044
Demographic Snapshot | 2017
33.70
32.10
32.20
3 Mile
s
1 Mile
5 Mile
s
Average Age3,4
22
32,55
6
111,40
25 M
iles
3 Mile
s
1 Mile
Total Population
1,114
10,37
1
34,71
95 M
iles
3 Mile
s
1 Mile
Total Households
$136
,921
$114,
489
$101
,806
3 Mile
s
1 Mile
5 Mile
s
Average Household Inc
Disclaimer: This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage, age, distances, lot size, store opening dates, demographic information, aerial information, tenant information & store operating information are approximate.
Buyer and their representatives understands that CVS tenant information was gathered by sources deemed to be reliable including CVS public quarterly and annual reports. Demographic information was provided by Nielsen Information Systems.
By accepting this package, buyer and their representatives must verify the information and bears all risk for any inaccuracies.
14115 EAST SAM HOUSTON PARKWAY NORTHHOUSTON, TX 77044
Company Summary*
Tenant HistoryCVS pharmacy is the second largest pharmacy retail chain in the United States. CVS is incorporated in Delaware and based in Woonsocket, Rhode Island. CVS was founded in 1963 under the name Consumer Value Store and later changed its name to CVS Corporation in 1996.
During the 1990’s the parent company changed its name from Melville Corporation to CVS Corporation and decided to focus entirely on CVS by selling of its non-pharmacy businesses such as Marshalls, Footaction/Footstar, Linens ‘n’ Things, and Kay-Bee Toys.
CVS used much of their capital from divesting in non-pharmacy businesses to reinvest into the pharmacy sector and have increased their national footprint primarily from acquiring competing pharmacy chains. From 1997 to 2008, CVS had purchased over 4,800 drugstore locations through acquisitions of competing pharmacy chains.
CVS has also made a concerted effort to establish strategic business units by acquiring Nashville based Caremark Rx Inc., a pharmacy benefits manager (PBM), and by acquiring Minneapolis based Minute Clinic which pioneers health clinics in over 600 of CVS stores. Its PBM wing provides $76 billion in net revenues through services to over 2,000 health plans for corporations, insurance companies, unions and government entities.
During 2014, CVS boldly announced they would cease to sell any tobacco products moving forward costing the chain roughly $2 billion in annual revenues.
Notable Acquisitions In 1990, CVS acquired the 490 store People Drug which established the company in new mid-Atlantic markets including Washington D.C., Pennsylvania, Maryland and Virginia. In 1997, CVS nearly tripled its 1,400 stores after purchasing the 2,500 store Revco chain thereby adding locations throughout Ohio, mid-Atlantic and the southeast. In 2004, CVS purchased 1,268 Eckerd drugstores throughout Florida, Texas and other southern states.
On January 23rd, 2006 CVS announced that it agreed to acquire the freestanding drugstores of Albertsons and the deal included 700 stores trading under the Osco Drug and Sav-On Drug banners located primarily in the Midwestern and southwestern United States with the concentration of stores in southern California and the Chicago area. CVS last major acquisition was in 2008 when they purchased Longs Drugs which had over 400 stores in California and Hawaii. *CVS company information received from CVS investor relations.
