CVS | Zero Cash Flow Investment
Effort, PA
Price: $6,267,195Cap Rate: ZCFBuilding SF: 13,225 SFLot Size: 2.45 AcresYear Built: 2011Status: Under Contract

Investment Highlights: 

Investment Grade Credit Tenant: CVS Health (S&P: BBB+) – The property is leased to CVS, which is part of the CVS Health Corporation which, together with its subsidiaries, has an investment grade credit rating of BBB+/Stable by Standard & Poor’s. CVS is currently the largest pharmacy chain in the United States with over 9,700 locations and a reported revenue of $177.5 billion.

Long Term Bondable Absolute NNN Lease – CVS has nearly 20 years remaining on their initial 25-year lease term and features ten (10) 5-year renewal option periods. The bondable absolute triple-net (NNN) lease offers the Landlord zero management responsibilities.

Zero Cash Flow Loan Structure – Desirable Paydown/Re-Advance Feature – Zero-cash flow structure with readily assumable, non-recourse loan currently in place. This structure is ideal for tax deferred 1031/1033 exchange buyers or traditional investors seeking passive losses that might be used to offset income from other real estate investments.  The paydown/re-advance feature is available in the current assumable loan allowing a 1031 investor to easily match their debt & equity requirement with an option to extract additional equity through re-finance.

Located on Hard Corner Signalized Intersection – Proximity to Martz Bus Trailways Park & Ride – The subject property is located on the signalized hard corner intersection of PA State Route 115 & State Rd, offering excellent visibility and signage with multiple access points into the property. There is an adjacent pad site featuring Dunkin’ Donuts and Domino’s Pizza. Surrounding retailers also include Sonoco, Exxon, Dollar General, Subway, and Wayne Bank.  Additionally, the CVS property ideally sits across from the future Martz Bus Trailways Park & Ride, where hundreds of daily commuters heading to NYC will park their vehicles.

Future Town Center Location – Across from Mount Effort Plaza Planned Redevelopment Project – The subject property is located across from Mount Effort Plaza, a multi-tenant strip center. Mount Effort Plaza has been approved for a 15-acre, 110,000 square foot redevelopment which will be developed over two phases. The project will be anchored by a 45,000-square foot Gerrity’s grocery store as well as additional commercial and retail buildings including a standalone restaurant, a daycare center, a Martz Bus park and ride location, and a Monroe County Transit Authority bus shelter.

Gateway to Pocono Mountains, Pocono Raceway – Major Tourism Destination  – Effort, Pennsylvania is located in the growing Pocono Mountain resort area of Northeastern Pennsylvania. The Pocono Mountains are a popular recreational destination for local and regional visitors. The Pocono Mountains Visitors Bureau reports that this four-season resort region receives more than 25 million visitors each year, representing more than $3 billion of commerce and supporting over 35% of the region’s workforce. The Poconos have been a tourist draw for more than a century and now feature numerous resorts, camping, casinos, horse racing, auto racing at Pocono Raceway, snow skiing, and fishing in the lakes that dot the area. 


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