CVS PHARMACY Castro Valley, CA - Offering Memorandum - LoopNet
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Offering Memorandum
CVS PHARMACY
Castro Valley, CA
NON-ENDORSEMENT AND DISCLAIMER NOTICE
Confidentiality and Disclaimer
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to
be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other
person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to
provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of
interest in the subject property. The information contained herein is not a substitute for a thorough due diligence
investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with
respect to the income or expenses for the subject property, the future projected financial performance of the
property, the size and square footage of the property and improvements, the presence or absence of contaminating
substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the
improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or
intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure
has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not
verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding
these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the
information provided. All potential buyers must take appropriate measures to verify all of the information set forth
herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017
Marcus & Millichap. All rights reserved.
Non-Endorsement Notice
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in
this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply
affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or
subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for
the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
CVS PHARMACY
Castro Valley, CA
ACT ID Y0380535
NET LEASED DISCLAIMER Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.
CVS PHARMACY – CASTRO VALLEY, CA
CVS PHARMACY
OFFERINGSUMMARY
OFFERING SUMMARY
INVESTMENT OVERVIEW
Marcus & Millichap is pleased to present for sale this approximately 30,343-square foot CVS Pharmacy
located in Castro Valley, California. The property is leased under a rare 25-year NNN lease with 16.6 years
remaining and ten (10) five (5) year options to extend at fair market value. The lease includes a corporate INVESTMENT HIGHLIGHTS
guaranty from CVS Caremark, a stable BBB+ rated company by Standard and Poor's.
The property is located on Castro Valley Boulevard within 10 minutes of the Dublin/Pleasanton BART station.
Traffic drivers within the immediate area include Castro Valley Library, TJ Maxx, Safeway, KFC, Wells Fargo • 16.6 Years Remaining on NNN Lease
Bank and Round Table Pizza.
EXECUTIVE SUMMARY • CVS is Investment Grade; “BBB+” by
Standard & Poor’s
OFFERING SUMMARY
Price $11,000,000
• Fair Market Value Rental Increases
Net Operating Income $578,217 During Option Terms
Capitalization Rate – Current 5.26%
Price / SF $362.52 • Strong Demographics - $90,228 Within a
Rent / SF $19.06 5-Mile Radius
Lease Type NNN
• Traffic Count: 23,800 CPD
Gross Leasable Area 30,343 SF
Year Built / Renovated 1962 / 2008
• Absolutely No Landlord Responsibilities
Lot Size 2.8 acre(s)
NOTES
Tenant has a rent holiday from February 2032 to January 2034.
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CVS PHARMACY – CASTRO VALLEY, CA
OFFERINGSUMMARY
OFFERING SUMMARY
PROPERTY SUMMARY
NOTES
Tenant has a rent holiday from February 2032 to January 2034.
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CVS PHARMACY – CASTRO VALLEY, CA
CVS PHARMACY
PROPERTY NAME
PRICING ANDTENANT
PRICING AND TENANTSUMMARY
SUMMARY
VALUATION
VALUATION MATRIX
MATRIX
CVS Health Corporation (NYSE: CVS) operates retail pharmacy and
pharmacy benefit management businesses in the United States. The
company offers prescription drugs, general merchandise, including over the
counter drugs, beauty products and cosmetics, seasonal merchandise,
greeting cards, convenience foods, and film and photofinishing services.
No. of Locations: 9,900+
It sells its products through CVS or CVS Pharmacy retail stores, as well as
Credit Rating: BBB+
through online retail website CVS.com. The company also offers pharmacy
benefit management services, including mail order pharmacy, specialty
Stock Symbol: CVS
pharmacy, plan, design, and administration, formulary management, and
claims processing services. As of December 31, 2015, it operated over 9,600 Total Revenue: $153 Billion (2015)
retail drugstores, 1,100+ health care clinics, 33 on-site pharmacies, 24 retail
specialty pharmacy stores, 11 specialty mail order pharmacies, 5 mail Net Worth: $37.2 Billion (2015)
service dispensing pharmacies, and 83 branches, as well as 6 centers of
excellence for infusion and internal services. The company was formerly Ownership: Public
known as CVS Caremark Corporation and changed its name to CVS Health
Corporation in September 2014. CVS Health Corporation was founded in Headquarters: Woonsocket, Rhode Island
1892 and is headquartered in Woonsocket, Rhode Island.
Website: www.cvs.com
On December 31, 2015, CVS Health Corporation reported total revenue of
$153.29 billion, net income of $5.23 billion, and a net worth in excess of
$37.19 billion. CVS currently holds a Standard & Poor’s credit rating of
BBB+/ Stable.
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CVS PHARMACY – CASTRO VALLEY, CA
PROPERTY
CVS PHARMACY
NAME
PRICING LOCATION
AND TENANT
REGIONAL
PRICING AND SUMMARY
OVERVIEW
VALUATION MATRIX
AND LOCAL
VALUATION MAP
MATRIX
3667 Castro Valley Blvd, Castro Valley, CA 94546
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CVS PHARMACY – CASTRO VALLEY, CA
AERIAL PHOTO
8
CVS PHARMACY - CASTRO VALLEY, CA
8 COMPARABLES MAP
CVS PHARMACY - CASTRO VALLEY, CA
(SUBJECT)
1 CVS - NN Lease
2 CVS
3 CVS
4 CVS
SALES COMPARABLES
9
CVS PHARMACY - CASTRO VALLEY, CA
PROPERTY NAME
COMPARABLES
MARKETING TEAM
SALES COMPARABLES
CVS - NN LEASE CVS
CVS PHARMACY - CASTRO VALLEY, CA 5200 UNIVERSITY PKWY, SAN BERNARDINO, CA, 92407 135 PIERCE ST, DALY CITY, CA, 94015
3667 CASTRO VALLEY BLVD, CASTRO VALLEY, CA, 94546 1 2
rentpropertyname1 rentpropertyname1 rentpropertyname1
SUBJECT PROPERTY Close Of Escrow 6/21/2016 Close Of Escrow 9/27/2016
Asking Price $11,000,000 Days On Market 661 Sales Price $7,671,000
Price/SF $362.52 Sales Price $6,576,500 Price/SF $529.03
CAP Rate 5.26% Price/SF $431.22 CAP Rate 5.63%
GLA 30,343 SF CAP Rate 5.65% GLA 14,500 SF
Year Built 1962 GLA 15,251 SF Year Built 2013
Lease Term Remaining 16.6 Years Year Built 2002 Lease Term Remaining 23 Years
rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1
10CVS PHARMACY - CASTRO VALLEY, CA
PROPERTY NAME
COMPARABLES
MARKETING TEAM
SALES COMPARABLES
CVS CVS
4501 W SLAUSON AVE, LOS ANGELES, CA, 90043 26059 MISSION BLVD, HAYWARD, CA, 94544
3 4
rentpropertyname1 rentpropertyname1 rentpropertyname1
Close Of Escrow 2/28/2017 Close Of Escrow 8/25/2016
Days On Market 35 Days On Market 255
Sales Price $7,550,000 Sales Price $8,670,000
Price/SF $461.32 Price/SF $597.93
CAP Rate 4.64% CAP Rate 4.80%
GLA 16,366 SF GLA 14,500 SF
Year Built 2002 Year Built 2015
rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1
11CVS PHARMACY – CASTRO VALLEY, CA
PROPERTY NAME
DEMOGRAPHICS
MARKETING TEAM
Created on June 2017
POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles
2021 Projection Total Average Household Retail
$70,143 $71,246 $71,977
Expenditure
Total Population 27,770 164,586 347,104 Consumer Expenditure Top 10
2016 Estimate Categories
Total Population 27,636 162,139 342,261 Housing $21,345 $21,685 $21,737
2010 Census Shelter $14,261 $14,472 $14,484
Total Population 26,151 149,963 317,944 Transportation $11,216 $11,729 $11,930
2000 Census Food $7,436 $7,644 $7,725
Total Population 26,171 146,898 308,955 Personal Insurance and Pensions $6,624 $6,980 $7,047
Current Daytime Population Health Care $4,285 $4,256 $4,343
2016 Estimate 25,101 112,230 267,708 Utilities $3,435 $3,505 $3,535
HOUSEHOLDS 1 Miles 3 Miles 5 Miles Entertainment $2,743 $2,754 $2,755
2021 Projection Cash Contributions $1,913 $1,814 $1,892
Total Households 10,712 57,279 115,922 Apparel $1,770 $1,814 $1,821
2016 Estimate POPULATION PROFILE 1 Miles 3 Miles 5 Miles
Total Households 10,675 56,428 114,282 Population By Age
Average (Mean) Household Size 2.47 2.78 2.88 2016 Estimate Total Population 27,636 162,139 342,261
2010 Census Under 20 23.62% 25.31% 25.04%
Total Households 10,047 52,607 107,267 20 to 34 Years 19.98% 22.29% 22.32%
2000 Census 35 to 39 Years 6.78% 6.99% 6.92%
Total Households 10,371 52,579 107,658 40 to 49 Years 14.39% 13.79% 13.69%
Occupied Units 50 to 64 Years 20.70% 19.70% 19.47%
2021 Projection 10,712 57,279 115,922 Age 65+ 14.53% 11.91% 12.56%
2016 Estimate 10,731 56,946 115,126 Median Age 39.72 36.66 36.85
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles Population 25+ by Education Level
2016 Estimate 2016 Estimate Population Age 25+ 19,563 110,897 234,372
$150,000 or More 10.47% 11.32% 10.55% Elementary (0-8) 3.51% 7.03% 7.41%
$100,000 - $149,000 16.38% 16.40% 17.30% Some High School (9-11) 4.72% 7.16% 7.79%
$75,000 - $99,999 13.61% 13.45% 14.29% High School Graduate (12) 27.68% 25.98% 26.42%
$50,000 - $74,999 18.22% 17.23% 17.46% Some College (13-15) 25.21% 22.12% 21.91%
$35,000 - $49,999 12.61% 12.73% 12.44% Associate Degree Only 8.85% 7.95% 7.59%
Under $35,000 26.78% 25.99% 25.49% Bachelors Degree Only 19.99% 18.98% 19.01%
Average Household Income $85,814 $92,477 $90,228 Graduate Degree 8.20% 8.20% 7.23%
Median Household Income $63,628 $65,516 $66,679
Per Capita Income $33,588 $32,507 $30,410
Source: © 2016 Experian
12CVS PHARMACY - CASTRO VALLEY, CA
PROPERTY NAME
DEMOGRAPHICS
MARKETING TEAM
Population Race and Ethnicity
In 2016, the population in your selected geography is 27,636. The The current year racial makeup of your selected area is as follows:
population has changed by 5.60% since 2000. It is estimated that the 55.86% White, 8.20% Black, 1.05% Native American and 17.57%
population in your area will be 27,770.00 five years from now, which Asian/Pacific Islander. Compare these to US averages which are:
represents a change of 0.48% from the current year. The current 70.77% White, 12.80% Black, 0.19% Native American and 5.36%
population is 47.77% male and 52.23% female. The median age of Asian/Pacific Islander. People of Hispanic origin are counted
the population in your area is 39.72, compare this to the US average independently of race.
which is 37.68. The population density in your area is 8,788.25 people
per square mile. People of Hispanic origin make up 23.23% of the current year
population in your selected area. Compare this to the US average of
17.65%.
Households Housing
There are currently 10,675 households in your selected geography. The median housing value in your area was $463,290 in 2016,
The number of households has changed by 2.93% since 2000. It is compare this to the US average of $187,181. In 2000, there were
estimated that the number of households in your area will be 10,712 5,246 owner occupied housing units in your area and there were
five years from now, which represents a change of 0.35% from the 5,125 renter occupied housing units in your area. The median rent at
current year. The average household size in your area is 2.47 persons. the time was $889.
Income Employment
In 2016, the median household income for your selected geography is In 2016, there are 8,198 employees in your selected area, this is also
$63,628, compare this to the US average which is currently $54,505. known as the daytime population. The 2000 Census revealed that
The median household income for your area has changed by 21.05% 65.59% of employees are employed in white-collar occupations in
since 2000. It is estimated that the median household income in your this geography, and 34.55% are employed in blue-collar occupations.
area will be $75,045 five years from now, which represents a change In 2016, unemployment in this area is 6.42%. In 2000, the average
of 17.94% from the current year. time traveled to work was 32.00 minutes.
The current year per capita income in your area is $33,588, compare
this to the US average, which is $29,962. The current year average
household income in your area is $85,814, compare this to the US
average which is $78,425.
Source: © 2016 Experian
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