EXCLUSIVELY LISTED INVESTMENT OFFERING

Transcription

1 EXCLUSIVELY LISTED INVESTMENT OFFERING DAYTONA BEACH, FLORIDA INVESTMENT OPPORTUNITY Exclusively Listed By JASON STUART PONGSRIKUL MANAGING PRINCIPAL Pharma Property Group 5328 Banks Street, Suite B San Diego, CA

2 Property Overview Year Built: 2001 Lot Size: 76,738 Square Feet Building Size: 10,908 Square Feet Investment Highlights STABLE INCOME Rental income guaranteed by CVS parent corporate (S&P BBB+) investment grade Fortune 500 Company with over 7,600 locations. LEASE TERM REMAINING Approximately ten (10) years of primary lease term remaining before the five (5 year) options to follow. LEASE STRUCTURE Double net lease with landlord responsible for roof and structure only. RENT INCREASES Lease provides for rent increases of approximately 2% at each five 5-year option. Please see rent schedule on Page 4. EXTREMELY HIGH TRAFFIC COUNTS Drive-thru pharmacy located on a signalized northeast corner of Beville Road and South Clyde Morris Boulevard with traffic counts over 68,000 vehicles per day. IMMEDIATE RETAIL CORRIDOR Across the street from the subject property lies the The Shoppes at Beville Road (100,000 square feet) anchored by a Publix Super Market with national tenants such as GNC, UPS, Bank of America, Taco Bell and Walgreens. Only two blocks away lies a 198,169 square foot Walmart Supercenter and a 145,207 square foot Sam s Club. Other national retailers in the area include Office Depot, Sears Outlet, Planet Fitness, Advance Auto Parts, Wells Fargo Bank, Bank of America, Discount Tire, Pizza Hut, McDonald s, Subway, Dunkin Donuts, Papa John's Pizza, PNC Bank, and Domino s. STRATEGIC CORNER Walgreens is located directly across the street on the opposite corner making this signalized intersection a strategic corner for both CVS and Walgreens. There are no Rite Aid stores in Florida. DESIRABLE LOCATION The subject property is also located within three miles of the Daytona International Airport and the Daytona Speedway, home to the Daytona 500 and within minutes of the Intracoastal Waterway. page 2

3 Retail Corridor SOUTH NOVA ROAD SOUTH CLYDE MORRIS BOULEVARD - 36, 293 CARS PER DAY SUBJECT PROPERTY BEVILLE ROAD - 31,807 CARS PER DAY RESIDENTIAL COMMUNITIES RESIDENTIAL COMMUNITIES RESIDENTIAL COMMUNITIES NEIGHBORING RETAIL TENANTS The subject property is located on a highly traveled and signalized corner with over 68,000 cars per day. Across the street from the subject property lies the The Shoppes at Beville Road (100,000 square feet) anchored by a Publix Super Market with national tenants such as GNC, UPS, Bank of America, Taco Bell and Walgreens. National retailers nearby within a mile include a 198,169 square foot Walmart Supercenter and a 145,207 square foot Sam s Club. Other national retailers in the area include Office Depot, Sears Outlet, Planet Fitness, Advance Auto Parts, Wells Fargo Bank, Bank of America, Discount Tire, Pizza Hut, McDonald s, Subway, Dunkin Donuts, Papa John's Pizza, PNC Bank, and Domino s. page 3

4 Lease Overview Tenant: CVS PHARMACY, INC. (NYSE: CVS) Landlord Income: CORPORATE GUARANTEE Credit Rating: INVESTMENT GRADE, BBB+ (S&P) Lease Type: DOUBLE NET Landlord is responsible for roof and structure Lease Term: 10 YEARS REMAINING WITH FIVE 5-YEAR OPTIONS TO FOLLOW WITH RENT INCREASES Next Option Begins: MARCH 15, 2026 Location Overview Pricing Price: $5,047,391 CAP Rate: 5.75% CAP Price/SF: $ Monthly Income: $24,185 Annual Income: $290,225 Building Building Square Footage: 10,908 Land Square Footage: 76,738 Rent/Square Foot: $26.60 Year Built: 2001 Rent Schedule TERM dates YEARS RENT Initial Term $290,225 1st Option $295,697 2nd Option $301,133 3rd Option $306,587 4th Option $312,041 5th Option $317,495 DAYTONA BEACH, FLORIDA Daytona Beach is a city in Volusia County, Florida. It lies approximately 51 miles northeast of Orlando, 86 miles southeast of Jacksonville, and 242 miles northwest of Miami. Daytona is also the headquarters for NASCAR and the Mecca for motorsports, hosting the Daytona 500 SUBJECT PROPERTY DAYTONA BEACH where over 200,000 NASCAR fans come to attend the season-opening each year. page 4

5 Regional Aerial ATLANTIC OCEAN UC FLORIDA DAYTONA BEACH DAYTONA BEACH HALIFAX RIVER DAYTONA BEACH SHORES INDIGO LAKES GOLF CLUB DAYTONA INTERNATIONAL SPEEDWAY DAYTONA BEACH GOLF CLUB DAYTONA BEACH INTERNATIONAL AIRPORT SUBJECT PROPERTY SOUTH DAYTONA THE CLUB AT PELICAN BAY AREA DESCRIPTION The subject property is also located in the Daytona Beach, just three miles from the Daytona International Airport with approximately 500,000 boardings annually. Adjacent to the Daytona International Airport is renowned Daytona Speedway, home to the Daytona 500, the signature race of NASCAR. This 180-acre facility hosts multiple races, concerts and community events annually and in 2016 completed a $400 million dollar renovation. Daytona Beach recently reopened the Daytona Beach Pier, an historic attraction after a $5 million restoration with nearby roller coaster, ferris wheel on the Boardwalk Amusement park. page 5

6 Property Photos PARKING AND ENTRANCE OFF BEVILLE ROAD TO THE SOUTH DRIVE THRU PHARMACY ON NORTH SIDE OF BUILDING FRONT PARKING OFF S. CLYDE MORRIS BLVD. TO THE WEST NORTH ENTRANCE OFF S. CLYDE MORRIS BLVD. TO THE NORTH page 6

7 Property Photos (continued) DRIVEWAY EAST OF THE PROPERTY SOUTH ENTRANCE TO DRIVE-THRU OFF BEVILLE ROAD PUBLIX SUPER MARKET ACROSS THE STREET TO THE WEST WALGREENS ACROSS THE STREET TO THE WEST WALMART SUPERCENTER AND SAM'S CLUB ONE BLOCK EAST OFFICE DEPOT THREE BLOCKS TO THE EAST page 7

8 Location by State CA 861 OR 1 WA 1 NV 85 ID 0 UT 2 MT 14 WY 0 CO 1 AZ 140 NM 15 ND 6 SD 0 NE 18 KS 36 TX 593 OK 53 MN 58 IA 18 MO 79 AR 1 LA 109 WI 46 IL 278 MS 50 MN 250 IN 297 TN 136 AL 156 KY 65 OH 319 GA 319 WV 50 PA 408 SC 195 VA 271 NC 314 NY 472 VT 5 NH 41 NJ 280 MD 172 DC 59 ME 22 RI CT DE 12 MA 358 FL 718 HI 55 PR 20 AK 0 US VIRGIN ISLANDS 0 Alabama 156 Idaho 0 Mississippi 50 Oklahoma 53 West Virginia 50 Alaska 0 Illinois 278 Missouri 79 Oregon 1 Wisconsin 46 Arizona 140 Indiana 297 Montana 14 Pennsylvania 408 Wyoming 0 Arkansas 1 Iowa 18 Nebraska 18 Rhode Island 63 Puerto Rico 20 California 861 Kansas 36 Nevada 85 South Carolina 195 US Virgin Islands 0 Colorado 1 Kentucky 65 New Hampshire 41 South Dakota 0 Connecticut 150 Louisiana 109 New Jersey 280 Tennessee 136 Delaware 12 Maine 22 New Mexico 15 Texas 593 Washington DC 59 Maryland 172 New York 472 Utah 2 Florida 718 Massachusetts 358 North Carolina 314 Vermont 5 Georgia 319 Michigan 250 North Dakota 6 Virginia 271 Hawaii 55 Minnesota 58 Ohio 319 Washington 1 Total 7672 page 8

9 Company Summary * Credit Rating: S&P: BBB+ Stable Moody s: Baa1 Stable Trade Symbol: CVS (NYSE) Headquarters: Woonsocket, RI Number of Locations: Over 7,600 Employees: 208,000 Tenant History CVS pharmacy is the second largest pharmacy retail chain in the United States. CVS is incorporated in Delaware and based in Woonsocket, Rhode Island. CVS was founded in 1963 under the name Consumer Value Store and later changed its name to CVS Corporation in During the 1990 s the parent company changed its name from Melville Corporation to CVS Corporation and decided to focus entirely on CVS by selling of its non-pharmacy businesses such as Marshalls, Footaction/Footstar, Linens n Things, and Kay-Bee Toys. CVS used much of their capital from divesting in non-pharmacy businesses to reinvest into the pharmacy sector and have increased their national footprint primarily from acquiring competing pharmacy chains. From 1997 to 2008, CVS had purchased over 4,800 drugstore locations through acquisitions of competing pharmacy chains. CVS has also made a concerted effort to establish strategic business units by acquiring Nashville based Caremark Rx Inc., a pharmacy benefits manager (PBM), and by acquiring Minneapolis based Minute Clinic which pioneers health clinics in over 600 of CVS stores. Its PBM wing provides $76 billion in net revenues through services to over 2,000 health plans for corporations, insurance companies, unions and government entities. During 2014, CVS boldly announced they would cease to sell any tobacco products moving forward costing the chain roughly $2 billion in annual revenues. Notable Acquisitions In 1990, CVS acquired the 490 store People Drug which established the company in new mid- Atlantic markets including Washington D.C., Pennsylvania, Maryland and Virginia. In 1997, CVS nearly tripled its 1,400 stores after purchasing the 2,500 store Revco chain thereby adding locations throughout Ohio, mid-atlantic and the southeast. In 2004, CVS purchased 1,268 Eckerd drugstores throughout Florida, Texas and other southern states. On January 23rd, 2006 CVS announced that it agreed to acquire the freestanding drugstores of Albertsons and the deal included 700 stores trading under the Osco Drug and Sav-On Drug banners located primarily in the Midwestern and southwestern United States with the concentration of stores in southern California and the Chicago area. CVS last major acquisition was in 2008 when they purchased Longs Drugs which had over 400 stores in California and Hawaii. *CVS company information received from CVS investor relations. page 9

10 Demographic Snapshot 2015 Total Population Average Age 9,453 1 Mile 57,805 3 Miles 120,451 5 Miles Mile Miles Miles Median Household Inc 2015 Total Households $29,823 1 Mile $31,885 3 Miles $33,086 5 Miles 4,116 1 Mile 25,923 3 Miles 54,796 5 Miles Disclaimer: This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage, age, distances, lot size, store opening dates, demographic information, aerial information, tenant information & store operating information are approximate. Buyer and their representatives understands that Walgreens tenant information was gathered by sources deemed to be reliable including Walgreens public quarterly and annual reports. Demographic information was provided by Nielsen Information Systems. By accepting this package, buyer and their representatives must verify the information and bears all risk for any inaccuracies. page 10

11 Investment Property Recap 1350 BEVILLE ROA Lot Size: 76,738 Square Feet Building Size: 10,908 Square Feet Lease Overview Tenant: CVS Pharmacy, Inc. (NYSE: CVS) Landlord Income: Corporate Guarantee Credit Rating: Investment Grade, BBB+ (S&P) Lease Type: Double net lease. Landlord responsible for roof and structure. Lease Term: 10 Years remaining with 5 (5 year) options to follow Rental Rate Increases: Approximately 2% rental increase each five-year option term Next Option Begins: March 15, 2026 Pricing Asking Price: $5,047,391 Asking CAP Rate: 5.75% Monthly Income: $24,185 Annual Income: $290,225 page 11

12 5328 Banks Street, Suite B San Diego, California Managing Principal Fax: CA DRE Lic. # Listed in Association with FL DRE Lic. BK Property Analysis