CVS Pharmacy (Ground Lease) - Prospect Park, Pennsylvania Offering Memorandum - Stan Johnson Company
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Subject Property Offering Memorandum CVS Pharmacy (Ground Lease) Prospect Park, Pennsylvania Absolute Net Lease | 3-Mile Population of 121k+
Confidentiality and Restricted Use Agreement
This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for your
consideration of the opportunity to acquire the commercial property described herein (the “Property”). This
COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner,
without prior written authorization and consent of SJC.
This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This
COM contains descriptive materials, financial information and other data compiled by SJC for the convenience
of parties who may be interested in the Property. Such information is not all inclusive and is not represented to
include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has
not independently verified any of the information contained herein and makes no representations or warranties
of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation
and/or financial information contained herein are qualified in their entirety by reference to the actual documents
and/or financial statements, which upon request may be made available. An interested party must conduct its
own independent investigation and verification of any information the party deems material to consideration of
the opportunity, or otherwise appropriate, without reliance upon SJC.
The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the
right to negotiate with any number of interested parties at any time. The Property is offered and sold by its
owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any
customary warranties of title.
BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information
you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any Offered Exclusively by
other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and
claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request
by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the
Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals,
Tom Georges
you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees,
representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or
Associate Director
related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not marketing@stanjohnsonco.com
provide this COM or any of the Information to any other party unless you first obtain such party’s acceptance PA Lic #ABR002166
and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such
party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of
these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief
and specific performance, in connection with such a violation and shall not be required to post a bond when
Stan Johnson Company
obtaining such relief.
180 Madison Ave, Suite 1500
New York City, NY 10016
(646) 778-5560
www.stanjohnsonco.com
The Offering Purchase Price: $2,580,000
Stan Johnson Company is pleased to offer for sale the fee simple land
Cap Rate: 5.00%
in the property located at 702 Chester Pike in Prospect Park, PA. The
land is absolute net leased for a primary term of 10 years, with 51 years
of renewal options and 10% rent increases every 10 years. CVS Pharmacy
occupies 100% of the property.
The property is 100% occupied by CVS Health Corporation under a long-
term lease with no Landlord responsibilities whatsoever. The property is
Investment Highlights
situated just 10 miles from Philadelphia center and surrounding retailers
include McDonald's, Subway, Dunkin' Donuts and Wawa. Numerous 100% Occupied by CVS
schools and Taylor Hospital, a 105-bed medical center, are located in the Property is occupied by CVS Health Corporation (NYSE: CVS), an
surrounding two-mile radius. investment-grade tenant with a net worth in excess of $34 billion and an
S&P rating of BBB+/Stable.
For the twelve month period ended June 30, 2016, CVS Health
Corporation reported total revenue of $166.7 billion, net income of $4.8
61-Year Lease with Rent Increases
billion and a net worth in excess of $34.7 billion. CVS currently holds a
The Investor is purchasing the fee simple interest in the land subject to a
Standard & Poor’s credit rating of BBB+/Stable. 61-year, absolute net ground lease with 10% rent increases every 10 years
(see rent schedule for details).
Superior Visibility & Accessibility
Property is positioned at the signalized intersection of Chester Pike and
Summit Avenue and includes several access points.
Excellent Location
The property is situated just 10 miles from Philadelphia center.
Surrounding retailers include McDonald's, Subway, Dunkin' Donuts and
Wawa, with numerous schools and the 105-bed Taylor Hospital in the
surrounding two-mile radius.
Strong Demographics
Property benefits from a population of over 121,000 and an average
household income of more than $74,000 within three miles.
CVS Pharmacy - Prospect Park, PA 3
Subject Property
Untitled layer
Ground Lease Ground Rent
Abstract Schedule
702 Chester Pike, Prospect Park, PA Years Dates Annual Rent
Type Drive Thru 1 - 10 May 2017 - April 2027 $129,000
Hard Corner Intersection Yes 11 - 20 May 2027 - April 2037 $141,900
Acres +/- 1.07 21 - 30 May 2037 - April 2047 $156,090
Lease Commencement Upon sale of property 31 - 40 May 2047 - April 2057 $171,699
Primary Term 10 years 41 - 50 May 2057 - April 2067 $188,869
4 renewal options at 10 51 - 61 May 2067 - April 2078 $207,756
Renewal Terms years each, and 1 renewal
option at 11 years
Lease Expiration April 2078
Term Remaining 61 years (approximately)
Rental Increases 10% every 10 years
Absolute NNN - No
Expenses
Landlord Responsibilities
Ground Improvements Summary
The Ground Lessee is the owner of the building improvements leased to CVS Pharmacy
under an absolute net lease. Payment of the Ground Lease rent will be made directly
Improvements from CVS to the Ground Lessor. Any amounts paid by CVS to the Ground Lessor in
Reversion excess of the ground rent due will be remitted to the Ground Lessee In the event the
Ground Lessee defaults on the Ground Lease, ownership of the building improvements
and the CVS lease will automatically revert to the Ground Lessor for $0 consideration.
Building +/- 12,000 SF
Tenant CVS Health Corporation
Initial term expires January 2023. CVS has 10 renewal options at 5 years each (renewals
CVS Lease Term
extend to January 2073).
CVS Lease Current Rent $129,024
CVS Lease Renewal Rent $273,240 (Options 1 – 3), FMV (Options 4 – 10)
CVS Pharmacy - Prospect Park, PA 4
CVS Health Corporation
CVS Health Corporation (NYSE: CVS), headquartered in Woonsocket, Rhode Company Profile
Island, is the largest pharmacy health care provider in the United States with
integrated offerings across the entire spectrum of pharmacy care. CVS is No. of Locations: 9,700
focused on enhancing access to care, lowering overall health care costs for
plan members and payors, and improving health outcomes. Credit Rating: BBB+/Stable (S&P)
Stock Symbol: NYSE: CVS
Through its more than 9,700 retail locations, 1,100 walk-in medical clinics, a
leading pharmacy benefits manager with nearly 90 million plan members, Total Revenue: $177.53 billion*
a dedicated senior pharmacy care business serving more than one million
patients per year, expanding specialty pharmacy services, and a leading Net Worth: $36.83 billion*
stand-alone Medicare Part D prescription drug plan, the company enables
Tenant Business: Retail/Pharmacy
people, businesses and communities to manage health in more affordable
and effective ways. Headquarters: Woonsocket, RI
In December 2015, CVS Health completed a $1.9 billion agreement to take Website: www.cvshealth.com
over Target’s (NYSE: TGT) pharmacy and clinic businesses. The deal brought
1,672 new pharmacies into CVS Health, expanding its retail footprint by more *As of 12/31/2016
than 20%. The company has rebranded all of these pharmacies under the
CVS/pharmacy name.
For the twelve month period ended December 31, 2016, CVS Health
Corporation had total revenue of $177.53 billion, net income of $5.32 billion
and a net worth in excess of $36.83 billion. CVS currently holds a Standard &
Poor’s credit rating of BBB+/Stable.
9,700 CVS/pharmacy Stores 31M+ MinuteClinic Visits 70M ExtraCare Members
CVS/pharmacy has over 9,700 retail drug stores CVS MinuteClinic nurse practitioners have seen Their loyalty card program, ExtraCare, is the
and is currently located in 98 of the top 100 more than 31 million patients to date, with a 95 largest retail savings and rewards program with
drugstore markets. percent customer satisfaction rating. more than 70 million active member households.
243,000 Colleagues 30,000 Pharmacists 1.9B Prescriptions
CVS Health employs over 243,000 colleagues in CVS Health employs more than 30,000 CVS Health fills or manages 1.9 billion
all 50 states, the District of Columbia, Puerto Rico pharmacists across the company. prescriptions each year and has captured 39% of
and Brazil. past 5-year market prescription growth.
CVS Pharmacy - Prospect Park, PA 5
Location Overview
Prospect Park is a borough in Delaware County, Pennsylvania. Slightly less The center of economic activity in Pennsylvania, Philadelphia is home to the
than a one square mile in area, it is the home of just under 7,000 residents. headquarters of seven Fortune 1000 companies. Financial activities account
Prospect Park is located 10 miles from the center of Philadelphia, a short for the largest sector of the metropolitan area's economy, and it is one of the
20-minute trip on the commuter rail system. Philadelphia International largest health education and research centers in the United States. Some of
Airport is a 10-minute drive away, and I-95 is less than two miles south. the area's largest companies include cable television and internet provider
Comcast, insurance companies Colonial Penn, CIGNA, Independence
Prospect Park is part of the nationally recognized Interboro School District; Blue Cross, energy company Sunoco, food services company Aramark
three main campuses for the school district are within one mile of the subject and Crown, chemical makers Rohm and Haas and FMC, pharmaceutical
property. The subject property is also less than 1.5 miles from Taylor Hospital, company GlaxoSmithKline, Boeing Rotorcraft Systems, and automotive parts
a 105-bed not-for-profit hospital that admits more than 7,000 patients and retailer Pep Boys. Philadelphia's largest private employer is the University
receives 28,000 Emergency Department visits each year. of Pennsylvania followed by the Children's Hospital of Philadelphia. A study
commissioned by the city's government projected 40,000 jobs to be added
Philadelphia is the largest city in Pennsylvania and the fifth-most populous
to the city by 2035.
in the United States, with an estimated population of more than 1.5 million.
The city is the economic and cultural anchor of the Delaware Valley, a Philadelphia has the third-largest student concentration on the East Coast,
metropolitan area home to 7.2 million people. Philadelphia is known for its with over 120,000 college and university students enrolled within the city
arts, culture, and history, attracting over 39 million domestic tourists annually, and nearly 300,000 in the metropolitan area.
generating $10 billion in economic impact.
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CVS Pharmacy - Prospect Park, PA 7
Demographics
702 Chester Pike, Prospect Park, PA 0 - 1 mi. 0 - 3 mi. 0 - 5 mi.
Population
2016 Population 21,871 121,311 318,163
2021 Population 21,948 122,343 321,113
2010-2016 Annual Rate -0.06% 0.10% 0.14%
2016-2021 Annual Rate 0.07% 0.17% 0.18%
Households
2016 Total Households 8,667 47,369 120,029
2021 Total Households 8,670 47,607 120,701
2010-2016 Annual Rate -0.14% 0.00% 0.02%
2016-2021 Annual Rate 0.01% 0.10% 0.11%
2016 Average Household Income $71,734 $74,077 $72,526
2016-2021 Annual Rate 2.13% 1.86% 1.69%
2016 Median Household Income $60,167 $58,238 $54,466
2016-2021 Annual Rate 3.41% 2.58% 2.17%
CVS Pharmacy - Prospect Park, PA 8
Subject Property Photos
CVS Pharmacy - Prospect Park, PA 9
going beyond
Tom Georges
Associate Director
marketing@stanjohnsonco.com
PA Lic #ABR002166
Stan Johnson Company
180 Madison Ave, Suite 1500
New York City, NY 10016
(646) 778-5560
www.stanjohnsonco.com
The information contained herein was obtained from sources believed reliable, however,
Stan Johnson Company makes no guaranties, warranties or representations as to the
completeness thereof. The presentation of this property for sale, rent or exchange is
submitted subject to errors, omissions, change of CVS
pricePharmacy - Prospect
or conditions, Park, PA 10
or withdrawal
without notices.You can also read
