Investment Grade Credit Tenant: CVS Health (S&P: BBB+) – The property is leased to CVS, which is currently the largest pharmacy chain in the United States by number of locations (over 9,700 as of December 31, 2016) and a reported revenue of $177.5 billion.
Absolute NNN Lease – Rent Increases Every 5 Years – CVS Pharmacy’s 20-year triple-net (NNN) lease has 14+ years remaining on the term and features rent increases every 5 years, offering an investor a strong hedge against inflation. In addition, the Landlord has zero management responsibilities. The tenant pays for taxes and insurance while maintaining the roof, structure, and HVAC.
Located on Hard Corner Signalized Intersection – Improvements to E. Boronda Rd – The subject property is located on the hard corner signalized intersection of E. Boronda Rd & Natividad Rd, which sees combined traffic counts of 37,000+ cars per day. Extensive improvements are being made to East Boronda Rd between Hemingway Dr to San Juan Grade Rd., widening it into a four-lane roadway with landscaped median, and bike lanes. As part of the widening/improvements, roundabouts will be constructed along East Boronda Road at the major intersections, including one at Natividad Road in front of the subject property.
Co-Anchor Within Shaker Square Shopping Center – Excellent Retail Synergy – The CVS Pharmacy is a co-anchor in the Shaker Square Center, a 97,000 square foot shopping center with co-tenants that include El Super, McDonald’s, 7-Eleven, Pizza Factory, Wells Fargo Bank, Subway, and Great Clips. The center offers excellent retail synergy and draws a diverse mix of retail traffic from the surrounding area.
Area of Extensive Growth – 11,000+ New Housing Units Planned Adjacent to Site – New Lowes Anchored Center Nearby – The subject property is located in North Salinas, which is seeing extensive growth and is an area poised for new development, with 11,700 new homes (1,500 new homes per year over the next 8 years) that will be built north and east of the center spanning from San Juan Grade Rd to Williams Rd in the South. A new Lowes-anchored Gateway Center project is under construction at the intersection of E. Boronda Rd & San Juan Grade Rd. This approximately 200,000+ square foot shopping center will feature the 121,000 square foot Lowes home improvement center along with a 31,500 square foot garden center, as well as five smaller retail/services buildings, and two retail buildings ranging from 3,500-15,000 square feet
Located in Agriculture-Dominant Salinas – Proximity to Monterey & Pacific Ocean – The subject property is located in Salinas, the county seat of Monterey County, and the agricultural jewel of the Salinas Valley. Located just 10 miles east of the Pacific Ocean, the area’s marine climate fuels a fuels a $2 billion agriculture industry, supplying 80% of the country’s lettuce and artichokes, along with many other crops. Salinas is located just 19 miles northeast of the coastal city of Monterey, which is approximately 115 miles south of San Francisco and 350 miles north of Los Angeles. Known for its abundance and diversity of marine life, an approximate 4 million visitors come to Monterey to see the sea lions, sea otters, harbor seals, pelicans and dolphins that inhabit the area. The area’s diverse attractions, dramatic coastline, historic architecture, and access to marine wildlife all combine to drive this vibrant economy.