CVS Pharmacy | 13 Years on Lease Term with Rent Bumps
Taylor, AZ
Price: $1,000,000Cap Rate: Building SF: 4,215 SFLot Size: 40,511 SFYear Built: 1988Status: Closed

Investment Highlights: 

Investment Grade Credit Tenant: CVS Health (S&P: BBB+) – Largest Pharmacy Chain in the U.S.  – The property is leased to German Dobson CVS, LLC. CVS (NASDAQ: CVS) is currently the largest pharmacy chain in the United States by number of locations (over 9,700 as of December 31, 2017) and total prescription revenue. CVS Health ranked #8 on the Fortune 500 list in 2017, and reported revenue of $195 billion.

13 Years of Term Remaining – 10% Rent Increases Every 5 Years in Primary & Options – The original 15-year double-net lease commenced in July 2017 and features 10% rent increases every five years in the Primary term and in each of the (3) 5-year Option Periods, providing for excellent income growth over the term.

Located on Outparcel to Basha’s Grocery Anchored Center – Across from Brand New 24-Hour Walmart Supercenter – Excellent Visibility & Access – The property is located on an outparcel in a Basha’s Grocery Store anchored center, with co-tenants including Taco Bell, Pizza Hut, Little Caesar’s, Dollar Tree, Aliberto’s, Hudson’s Furniture, and Simply Sleep Mattress. It is located across from a new 24 hour Walmart Supercenter, with co-tenants Burger King and Circle K, Verizon Wireless, and Swirlz ‘n Whirlz, with future retail planned for other pads and outparcels in the center.

Strategic Location Along Main St/SR-77 – Main Traffic Corridor In/Out of Taylor (14,000+ CPD) – National Retailers Create Strong Draw to the Trade Area – The subject property fronts Main St, which sees traffic counts of 14,068 cars per day. This corridor is the main travel artery in/out of Taylor, carrying travelers to nearby Snowflake, Show Low, the White Mountains, and beyond. This corridor is home to national retailers including Dollar General, O’Reilly, Verizon Wireless, USPS, Giant, and CarQuest, with national restaurants such as Sonic, Subway, and Arby’s, providing for an outstanding draw to the trade area. 

Located in Taylor, One of the Fastest Growing Cities in Northern Arizona – Proximity to White Mountains, Apache-Sitgreaves National Forest – The subject property is located in the town of Taylor, in Navajo County. Taylor lies in a broad valley in east-central Arizona, approximately 120 hours southeast of Flagstaff and 173 miles northeast of Phoenix, and sits at an elevation of 5,640 feet, with the Mogollon Rim to the west and the White Mountains to the south. The mountains form an almost continues barrier protecting Taylor from severe winters and creating a semi-arid climate. The local population has grown dramatically in recent years with prosperous industry, commercial expansion and modern infrastructure. Taylor and its sister-town, Snowflake, are among the fastest growing communities in northeastern Arizona, where their cultural history, mild climate, and exceptional housing and recreational opportunities have come to attract new residents to the area.

Located Within the REAL AZ Corridor, A Region Offering Renewable Energy Assets, Abundant Water Resources, Biomass, Forestry – Source of Jobs, Economic Strength – Taylor is part of the Real AZ Corridor, a region in northern Arizona that spans two counties and nine communities. The region offers abundant water resources, renewable energy assets, biomass and forest industry potential, as well as development opportunities in sectors including renewable energy development and storage; transportation; tourism and entrepreneurship. The region is ripe with alternative energy development, diversified energy production and economic development offering ground-floor opportunity and sky-high potential to businesses in the area. The Real AZ Corridor is home to a growing list of companies and initiatives that are putting the region’s abundant, diversified resources, energy potential and access to work to build a strong economy.


Ryan Barr

rbarr@lee-associates.com
O. 760.448.2446
F. 760.929.9977

Ryan Bennett

rbennett@lee-associates.com
O. 760.448.2449
F. 760.929.9977