CVS Pharmacy Offering Memorandum - 1074 North State Road 267 | Avon, IN - Stan Johnson Company
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Representative Photo
Offering Memorandum
CVS Pharmacy
1074 North State Road 267 | Avon, IN
Confidential Disclaimer
This Confidential Memorandum has been prepared by Stan Johnson Company (“SJC”) and is being furnished
to you solely for the purpose of your review of the commercial property located at 1074 North State Road 267
| Avon, IN (the “Property”). The material contained in this Offering Memorandum shall be used for the purposes
of evaluating the Property for acquisition and shall not be used for any purpose or made available to any other
person without the express written consent of Stan Johnson Company (“Broker”).
Offered Exclusively by
By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information
contained herein and any other information you will be receiving in connection with this transaction, whether
oral, written or in any other form (collectively, the “Materials”), is confidential; (2) you will not reproduce the
Confidential Memorandum in whole or in part; (3) if you do not wish to pursue this matter, you will return
this Confidential Memorandum to SJC as soon as practicable together with all other materials relating to the
Jason W. Powell, CCIM
Property which you may have received from SJC; and (4) any proposed actions by you which are inconsistent in
Director
any manner with the foregoing agreements will require the prior written consent of SJC. jpowell@stanjohnsonco.com
P: +1 404.823.6754
This Confidential Memorandum has been prepared by SJC, based upon certain information pertaining to the
Property and any information obtained from SJC to assist interested parties in making their own evaluation
of the Property is offered on a no representation or warranty provision other than customary warranties Tyler Molleson
of title and is sold on an “as-is, where-is” basis and with all faults. The material and transaction does not Associate
purport to be all inclusive. This Confidential Memorandum contains descriptive materials, financial information tmolleson@stanjohnsonco.com
and other data compiled for the convenience of parties interested in the Property. The Materials are being P: +1 404.823.6760
delivered by SJC to prospective investors with the understanding that it is not all inclusive and that it is
qualified in its entirety by independent investigation by prospective investors of those matters which they
deem appropriate in evaluating this offering without reliance upon SJC, the Broker or any of their respective
affiliates or any of the information set out in the Materials. Neither SJC, the Broker, nor any of their respective
affiliates have independently verified any of the information contained herein or in any of the Materials, and no In Association With:
representations or warranties as to the accuracy or completeness thereof or of any other kind whatsoever are Brad Feller
made or intended and none should be inferred. IN Broker #RB14026515
SJC, for itself and its affiliates of the Property, expressly disclaim any and all liability for statements or
representations, express or implied, contained herein or for omissions from the Materials or for any other Stan Johnson Company
written, oral or other format of communication transmitted to a prospective investor in the course of its 3340 Peachtree Road NE | Suite 650
evaluation of the proposed transaction. All summaries and discussions of documentation and/or financial Atlanta, Georgia 30326
information contained herein are qualified in their entirety by reference to the actual documents and/or financial 404.823.6360
statements, which upon request may be made available. The terms and conditions described herein are subject
to change without notice. stanjohnsonco.com
This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely
a solicitation of interest with respect to the investment described herein. The Confidential Memorandum does
not constitute an offer of security. The investment described herein may be financed or withdrawn from the
market, without prior notice. By accepting this Confidential Memorandum you agree to release SJC and hold it
harmless from any kind of claim, expense, or liability arising out of your discovery or purchase of the Property.
SJC reserves the right to request the return of the Materials at any time. Ownership of the Property reserves the
right to negotiate with one or more prospective investors at any time.
The Offering Purchase Price: $3,786,731
Cap Rate: 6.70%
Stan Johnson Company is pleased to offer for sale to qualified investors
the opportunity to acquire a CVS Pharmacy located in Avon, Indiana.
Property Summary
CVS has a long term lease on this property providing approximately Address: 1074 North State Road 267 | Avon, IN
fifteen (15) years of base term remaining. The corporate-guaranteed lease Building Size (SF): +/- 11,000 SF
features a triple net (NNN) lease with ten (10), five (5) year options.
Land Area (Acres): +/- 2.24 Acres
The subject property is located in a strong retail corridor, with strong Lease Type: NNN
demographics. Avon, IN boasts a median household income of $66,458 NOI: $253,711
and a population of 95,139 within a five (5) mile radius.
Investment Highlights
Superior Credit Tenant – CVS, the largest U.S. Pharmacy, presently has High Yield Opportunity/Rent Holiday – This property includes a three
over 7,911 drugstores in the United States and Puerto Rico. CVS has a BBB+ (3) year rent holiday from 1/2028 to 1/2031 during which the landlord
investment-grade rating from Standard & Poor’s with a net worth of $37.95 continues to have zero responsibilities, but CVS does not pay the landlord
billion. rent. The rent holiday allows investors to buy at a higher cap rate today,
thus boosting the overall projected return. At a 6.70% cap, the cap rate
Absolute Net Lease – Offering includes an absolute net lease structure for this CVS property is approximately 1.00% above market. This high
with zero landlord responsibilities. All expenses, including repairs to the yield on the front end enables investors to get their return on investment
building, roof & parking lot, are paid by CVS. front loaded and buy the property at a lower price per square foot when
compared to similar properties in the 5%’s cap range.
Long Term Lease – The property is operating under a long term lease with
CVS with approximately 15 years remaining.
CVS Pharmacy • Avon, IN 3
Lease Abstract
Tenant: CVS
Guarantor: CVS Health Corporation (NYSE: CVS)
Address: 1074 North State Road 267, Avon, IN
Building Size: +/- 11,000 SF
Land Area: +/- 2.24 Acres
Subject Property
Year Built: 2005
Rent Commencement: December 10, 2005
Lease Expiration: January 31, 2031
Annual Rent: $253,711/year fixed
Renewal Options: Ten (10), Five (5) Year Options
Landlord Expenses: NNN - No Landlord responsibility
Subject Property
CVS Pharmacy • Avon, IN 4
Rent Schedule Renewal Options
Year Annual Rent Option Annual Rent
1 $253,711 1 $228,339
2 $253,711 2 $228,339
3 $253,711 3 Fair Market Value
4 $253,711 4 Fair Market Value
5 $253,711 5 Fair Market Value
6 $253,711 6 Fair Market Value
7 $253,711 7 Fair Market Value
8 $253,711 8 Fair Market Value
9 $253,711 9 Fair Market Value
10 $253,711 10 Fair Market Value
11 (Current) $253,711
12 $253,711
13 $253,711
14 $253,711
15 $253,711
16 $253,711
17 $253,711
18 $253,711
19 $253,711
20 $253,711
21 $253,711
22 $253,711
23 (Rent Holiday) $0
24 (Rent Holiday) $0
25 (Rent Holiday) $0
CVS Pharmacy • Avon, IN 5
Tenant Overview
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. It sells its products
through CVS or CVS Pharmacy retail stores,
as well as through online retail website CVS.
com. The company also offers pharmacy
benefit management services, including
mail order pharmacy, specialty pharmacy,
plan, design, and administration, formulary
management, and claims processing services.
As of September 30, 2015, it operated 7,911
retail drugstores, 1,020 health care clinics,
33 onsite pharmacies, 24 retail specialty
pharmacy stores, 11 specialty mail order
pharmacies, 5 mail service dispensing
pharmacies, and 83 branches for infusion
and enteral services, including approximately
73 ambulatory infusion suites and 6 centers
of excellence. The company was formerly
known as CVS Caremark Corporation and
changed its name to CVS Health Corporation
in September 2014. CVS Health Corporation
was founded in 1892 and is headquartered in
Woonsocket, Rhode Island.
For FY2014, ended December 31, 2014,
CVS Health Corporation had total revenue
of $139.37 billion and net income of $4.65
billion. As of September 30, 2015, CVS had
total assets of $92.36 billion, EBITDA of $11.19
billion and a net worth in excess of $37.95
billion. CVS currently holds a Standard &
Poor’s credit rating of BBB+/ Stable.
CVS Pharmacy • Avon, IN 6
Representative PhotoTHE GODDARD
SCHOOL
Location Overview
Avon is a town in Washington Township,
Hendricks County, Indiana. The population AVON STATION
MEDICAL CENTER
was 12,446 at the 2010 Census.
Incorporated in 1995, the Town of Avon
is located five miles west of Indianapolis AVON FIRE
DEPT.
and is ten minutes away from Indianapolis
International Airport. Avon is the only Tree
City USA Community in Hendricks County
and prides itself in the preservation of the
natural environment. Avon is the home of four
IVY TECH
star schools and has a rich musical tradition COMMUNITY COLLEGE AVON MIDDLE
that includes three national championships US SCHOOL
LKQ HW
and eleven state championships for the Avon Y-
High School Marching Band. 3 6(
38
,9
61
The 82.5 acre Avon Town Hall Park offers VP
amenities including walking trails, nine D)
acre lake, two ponds, fishing, shelters, 3
playgrounds, natural walking paths, 18 hole
disc golf course, free WIFI, 2 outdoor table
tennis tables with free paddles and ball
available for use. It is also the home of the
Angel of Hope statue to remember children
that have passed away and the Military and
)
PD
Public Safety Memorial. It is home to the
V
49
Avon Relay for Life, Angel of Hope Ceremony,
,0
Model Boat Spring Regatta, Fall Outdoor
25
.(
Concert, WWII Memorial Car Show, Avon
E
V
Community Heritage Festival Talent Show
A
N
and the Spring Art Show.
O
V
A
Major retailers in the immediate area include
TH
R
Meijer’s, Menard’s, Lowe’s, Super Target,
O
N
Walmart, Dick’s Sporting Goods, Barnes and
Noble, and Starbucks.
SEDemographics
1074 IN-267 | Avon, IN 46123 0 - 1 mi. 0 - 3 mi. 0 - 5 mi.
Population
2015 Population 6,659 32,982 95,139
2020 Population 7,284 36,238 102,648
2010-2015 Annual Rate 1.76% 1.99% 1.35%
2015-2020 Annual Rate 1.81% 1.90% 1.53%
Households
2015 Total Households 2,489 11,964 34,759
2020 Total Households 2,730 13,148 37,473
2010-2015 Annual Rate 1.84% 1.99% 1.31%
2015-2020 Annual Rate 1.87% 1.91% 1.52%
2015 Average Household Income $97,749 $90,593 $79,059
2015 Median Household Income $85,958 $80,499 $66,458
NOffered Exclusively by
Jason W. Powell, CCIM
Director going beyond
jpowell@stanjohnsonco.com
P: +1 404.823.6754
Tyler Molleson
Associate
tmolleson@stanjohnsonco.com
P: +1 404.823.6760
In Association With:
Brad Feller
IN Broker #RB14026515
Stan Johnson Company
3340 Peachtree Road NE | Suite 650
Atlanta, Georgia 30326
404.823.6360
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 price or conditions, or withdrawal
without notices.You can also read
