CVS Ground Lease for Sale | The Boulder Group

NET LEASED INVESTMENT OFFERING

www.bouldergroup.com

CVS (Ground Lease)118 East New Circle Road

Lexington, KY 40505



1) Executive Summary

2) Investment Highlights

3) Property Overview

4) Aerial

5) Site Plan

6) Maps

7) TenantProfile

8) Demographic Comparison Report

9) Location Overview

10) Contact Information

TABLE OF CONTENTS

TABLE OF CONTENTS



TheinformationcontainedinthefollowingOfferingMemorandumisproprietaryandstrictlyconfidential.Itisintendedtobe reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person orentitywithoutthewrittenconsentofTheBoulderGroup.ThisOfferingMemorandumhasbeenpreparedtoprovidesummary,unverifiedinformationtoprospectivepurchasers,andtoestablishonlyapreliminarylevelofinterestinthesubjectproperty.Theinformationcontainedhereinisnotasubstituteforathoroughduediligenceinvestigation.TheBoulderGrouphasnotmadeanyinvestigation,andmakesnowarrantyorrepresentation.Theinformationcontainedin this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group hasnotverified,andwillnotverify,anyoftheinformationcontainedherein,norhasTheBoulderGroupconductedanyinvestigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy orcompletenessoftheinformationprovided.Allpotentialbuyersmusttakeappropriatemeasurestoverifyalloftheinformationsetforthherein.

CONFIDENTIALITY & DISCLAIMER

CONFIDENTITALITY & DISCLAIMER



The Boulder Group is pleased to exclusively market for sale a single tenant CVS ground lease property located in Lexington, Kentucky.TheCVSiswelllocatedalongLexington’shighwayloopwhichencompassesthecity.Thebuildingwasrecentlydevelopedin2009atasignalizedintersection.Thereareover20yearsremainingontheCVSgroundleasethatexpiresinJanuary2035andfeaturesrentalescalationsineachrenewaloptionperiod.CVSisapubliclytradedcompany(NYSE:CVS)withamarketcapitalizationinexcessof$89billionandisaninvestmentgraderatedtenant(S&P:BBB+).

The1.86acreCVSpropertyisideallylocatedattheheavilytraffickedsignalizedintersectionofEastNewCircleRoadandNorthLimestoneRoad.This intersectionexperiencestrafficvolumes inexcessof45,000vehiclesperday.NewCircleRoadisLexington’shighwayloopthatroundsthecity.ThepropertyislocatedapproximatelytwomileseastofdowntownLexingtonandthreemileseastoftheUniversityofKentucky(30,000students).TheCVSislocatedlessthan1.5milesfromaccesstoInterstate75/64.ThecorporateheadquartersofLexmarkInternational,aglobalproviderofprintingandimagingproducts,islocatedlessthantwomilesfromtheCVSandemploysover2,600people.FurthercontributingtothestrengthofthisCVSlocationisthatitislocateddownthestreetfromanagingmid-blockWalgreenswithlimitedaccess.TheCVSpropertyisbenefittedbyitsproximitytoWhitakerBankBallpark,homeoftheLexingtonLegendsminorleaguebaseballteam.Theareaisdenselypopulatedwithapproximately80,000peoplelivingwithinathreemileradius.RetailerslocatedintheimmediatevicinityofthepropertyincludeWalmart,Kroger,Staples,PNCBank,Fifth-ThirdBank,andmanyothers.

CVShasover20yearsremainingontheirgroundleasethatexpiresJanuary31,2035.Theleasefeaturessix5-yearre-newaloptionswith5%rentalescalationsineach.CVSisaninvestmentgradetenantwithaStandardandPoor’sratingofBBB+.CVSispubliclytradedontheNewYorkStockExchange(CVS)withamarketcapitalizationinexcessof$89billion.

INVESTMENT HIGHLIGHTS

• Located in the city of Lexington• Long term ground lease with over 20 years remaining•Investmentgradetenant(S&P:BBB+)•PremierelocationalongLexington’shighwayloop(NewCircleRoad)• Rental escalations in each renewal option•Locatedataheavilytraffickedsignalizedintersection(45,000VPD)•CloseproximitytotheworldheadquartersofLexmarkInternational (2,600+employees)•Recentlyconstructed(2009)•Nolandlordresponsibilities

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY



PROPERTY OVERVIEW

PROPERTY OVERVIEW

Price: $3,950,000

CapRate: 4.81%

RentSchedule: NOI Escalation Date

$190,000 $199,500 2/1/35(Option1) $209,475 2/1/40(Option2) $219,949 2/1/45(Option3) $230,946 2/1/50(Option4) $242,494 2/1/55(Option5) $254,618 2/1/60(Option6)

LeaseCommencementDate: October 2, 2009

LeaseExpirationDate: January 31, 2035

Tenant: CVS

CreditRating: BBB+

RentalEscalations: 5% in Each Option

RenewalOptions: Six5-Year

YearBuilt: 2009

LeaseType: Ground Lease

BuildingSize: 13,225SF

LandSize: 1.86acres



AERIAL

AERIAL

38,000 VPD

E. NEW CIRCLE ROAD

87,000 VPDTO INTERSTATE 75/64

7,000 VPD

N. LIMESTO

NE STREET

WORLD HEADQUARTERS

N



SITE PLAN

SITE PLAN

N

NORTH LIMESTONE

EAST NEW

CIRCLE ROAD



MAPS

MAPS

NewCircleRoad

NewCircleRoad

NewCircleRoad

NewCircleRoad

NewCircleRoad

NewCircleRoad



CVSisengagedintheretaildrugstorebusiness.TheCompanyoperates7,600locationsin45statesandPuertoRico. CVS is the nation’s second-largest drugstore chain and the third-largest pharmacy benefitsmanager.As a retail division of CVS Caremark, CVS retail locations sell prescription drugs and a wide variety of general merchandiseincludingover-the-countermedication,beautyproductsandcosmetics,filmandphotofinishingservices, seasonalmerchandise and convenience foods. CVS also offers healthcare services through theirMinuteClinic locations,mostofwhichare locatedwithin their stores.CVS isheadquartered inWoonsocket,RhodeIslandandwasfoundedin1963.

CVSisapubliclytradedcompanyontheNewYorkStockExchange,CVS,withamarketcapitalizationinexcessof$89.5billion.CVSisaninvestmentgraderatedtenantwithaStandard&Poor’sratingofBBB+.

Website: www.cvs.comNumberofLocations: 7,600StockSymbol: CVS:NYSEStandard&Poor’sRating: BBB+MarketCapitalization: $89billionNumberofEmployees: 130,000

TENANT PROFILE

TENANT PROFILE



Population 1-mi 3-mi 5-mi

Total Population 10,946 77,333 166,180Total Households 4,538 32,733 70,591

Income

Average Household Income $49,366 $48,871 $57,668

DEMOGRAPHIC COMPARISON REPORT

DEMOGRAPHIC COMPARISON REPORT



Lexingtonisthesecond-largestcityinKentuckyandthe61stlargestcityintheUnitedStates.Knownasthe“HorseCapitaloftheWorld”,itislocatedintheheartofKentucky’sBluegrassRegion.Lexingtonhad a 2013 US Census estimated population of 308,428 people and a combined statistical area population in excess of 705,000 people. With its abundance of government and technology jobs,Lexingtonhasoneofthenation’smoststableeconomies.Lexingtonhasbeendescribedashaving“afortifiedeconomy,strong inmanufacturing, technologyandentrepreneurialsupport,benefiting fromadiverse,balancedbusinessbase”.LexingtonisthehomeoftheUniversityofKentucky,whichhasanenrollmentofapproximately30,000studentsandemploysover14,000people.Othersignificant

employers includeLexmark,Xerox,Kroger,Amazon.com,LockheedMartin,KentuckyOneHealth,and theFayetteCountyPublicSchools.

The northeast border of Lexington has direct access to Interstate 64 and Interstate 75, however freeways do not run through downtown.Instead,Lexingtonhastwobeltways;NewCircleRoad(inner)andMano’WarBoulevard(outer),andnumerousarterialhighways/U.S.routesradiatefromdowntowntothesurroundingsuburbsandsmalltowns.

www.lexingtonky.gov

LOCATION OVERVIEW

LOCATION OVERVIEW



CONTACT INFORMATION

CONTACT INFORMATION

666 Dundee Road, Suite 1801Northbrook,IL60062

Randy [email protected]

Jimmy [email protected]

CVS Ground Lease for Sale | The Boulder Group

Real Estate

Transcript of CVS Ground Lease for Sale | The Boulder Group