CVS Pharmacy | Dallas MSA
4282 Ridge Rd Heath, TX 75032
Price: $5,081,370
Status: Sold
Cap Rate: 4.60%
Year Built: 2015
NOI: $233,743
Lot Size: 1.79 acres
Price Per Foot: $349
SF: 14,366 SF
Remaining Term: 20+ Years
Lease Type: NNN
Property Intro
Lee & Associates and DZ Net Lease Realty, LLC are pleased to exclusively offer for sale the opportunity to acquire the fee simple interest (land & building) in a CVS Pharmacy investment property located in Heath, TX within the Dallas MSA (the “Property”). Constructed in 2015 as a build to suit for CVS, the Property consists of a 14,366-square-foot retail building with drive thru lanes situated on a 1.79-acre parcel.
CVS Pharmacy has 20+ years remaining on a 25-year lease that features (10) 5-year renewal options. The lease is true absolute triple-net (NNN) requiring zero management responsibilities from the landlord and providing an ideal passive income stream backed by an investment grade credit tenant.
investment highlights
- CVS HEALTH CORP: INVESTMENT GRADE CREDIT TENANT (S&P: BBB) • 2ND-LARGEST RETAIL PHARMACY IN THE U.S. • #5 FORTUNE 500 COMPANY
- The subject property is leased to highly desirable national tenant CVS Health Corp. (S&P: BBB). CVS Pharmacy is currently the second largest retail pharmacy in the U.S. behind Walgreens. CVS is part of CVS Health Corporation, which includes CVS Pharmacy with 9,700 retail pharmacies, CVS MinuteClinic with more than 1,100 walk-in health care clinics, CVS Caremark, a leading pharmacy benefits manager with more than 90 million plan members, and CVS Specialty, a dedicated senior pharmacy care business serving more than one million patients per year. In 2020, CVS ranked 5th on the Fortune 500 and 13th on the Fortune Global 500 list with $194.58 billion in annual revenue.
- RARE CVS WITH OVER 20 YEARS REMAINING ON LEASE TERM • ABSOLUTE NNN LEASE • LONG TERM PASSIVE INCOME STREAM • UNDER MARKET RENT • MITIGATED VACANCY RISK
- CVS Pharmacy has 20+ years remaining on a 25-year lease that features (10) 5-year renewal options. The lease is true absolute triple-net (NNN) requiring zero management responsibilities from the landlord and providing an ideal passive income stream backed by an investment grade credit tenant CVS is paying only $16 psf, which is under-market rent compared to other CVS locations nationally, offering future upside for an investor to push rent to Fair Market Value in the Option periods. Additionally, this low rent increases the Tenant’s long-term profitability at this site, mitigating the vacancy risk.
- AFFLUENT DEMOGRAPHICS • EXPLOSIVE POPULATION GROWTH • FASTEST GROWING STATE IN THE U.S.
- The subject property is located within the city of Heath, an affluent and rapidly growing community with an average household income of $187,000 within a 1-mile radius of the subject property. Heath is also located within the Dallas MSA. The surrounding area is projected to see annual population growth of 4.9% by 2025. In fact, the state of Texas was the #1 Population Gainer in the U.S. between 2019-2020, and with the number of companies moving into the state, it is projected to be a top gainer again in the coming years.
- PROXIMITY TO MAJOR MEDICAL CENTERS • EXCELLENT SYNERGY FOR CUSTOMER’S BASE
- The subject property is located three miles south of the Texas Health Hospital, a 61-bed acute medical and surgical center, and west of the Baylor Medical Plaza,, a Level 3 patient centered medical home. Proximity to these facilities provides strong synergy for the Tenant’s customer base and should support the continued success of this CVS Pharmacy location.
- HARD CORNER SIGNALIZED LOCATION (19,000+ CPD COMBINED) • MAIN TRAVEL ARTERY IN/OUT OF HEATH • QUICK ACCESS TO INTERSTATE 30 TO DOWNTOWN DALLAS
- The property is ideally located on the hard corner signalized intersection of Ridge Road & Smirl/Laurence Drive, offering excellent visibility and access to over 19,000 cars per day. The property offers multiple ingress/egress points for easy in/out access and a quick drive thru lane. Ridge Road is a major travel corridor between Heath and Interstate 30, offering easy access to Downtown Dallas.
- LOCATED IN HEATH, TX • ONLY 20 MILES EAST OF DOWNTOWN DALLAS • PART OF DALLAS-FORT WORTH METROPLEX (POP: 5.7 MILLION)
- The subject property is located within the city of Heath, an affluent and rapidly growing community with an average household income of $187,000 within a 1-mile radius of the subject property. Heath is also located just 20 miles east of Dallas. Its proximity to Dallas provides easy access to the business, cultural and entertainment amenities of the city, while its rolling hills and location along the shores of Lavon Lake provide a small-town environment for families. Heath is part of the Dallas-Fort Worth Metroplex, which is the economic and cultural hub of North Texas. With an estimated 2019 population of 7.573 million, it is the most populous MSA in the Southern U.S., the fourth largest in the U.S., and the tenth largest in the Americas. The metropolitan region’s economy is primarily based on banking, commerce, insurance, telecommunications, technology, energy, healthcare, medical research, transportation, and logistics, providing for a diverse and balanced economy for the region
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