cvs offering memorandum - ?· offering memorandum ™ cvs ... llc operates as a subsidiary of cvs...

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  • C V S , S h r e v e p o r t , L A | 1

    O F F E R I N G M E M O R A N D U M

    CVS2 7 5 5 H o l l y w o o d A v e n u e | S h r e v e p o r t , L A

    Representative Photo

  • 2 | O f f e r i n g M e m o r a n d u m

    Representative Photo

  • C V S , S h r e v e p o r t , L A | 3

    e x c l u s i v e ly l i s t e d b y

    c o n t e n t s0 4

    0 5

    1 0

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    i n v e s t m e n t h i g h l i g h t s

    f i n a n c i a l O V E R V I E W

    a r e a O V E R V I E W

    t e n a n t o v e r v i e w

    B e a u j . b o xBROKER OF RECORD

    LIC # BROK.0000072286.A-ACTRepresentative Photo

    r a h u l c h h a j e d

    Single Tenant Net Lease

    rahul .chhajed@matthews.comDIR (949) 432-4513MOB (818) 434-1106LIC # 01986299 (CA)

    a r o n c l i n e

    SVP & Senior Director

    aron.c l ine@matthews.comDIR (949) 432-4509MOB (818) 632-0233LIC # 01904371 (CA)

    m i c h a e l m o r e n o

    Senior Associate

    michael .moreno@matthews.comDIR (949) 432-4511 MOB (818) 522-1497 LIC # 01982943 (CA)

  • 4 | O f f e r i n g M e m o r a n d u m

    10,908 SF Freestanding CVS (BBB+ S&P) on Approximately 1.57 Acres

    Primary Lease Term Through 12/31/18 with Four Renewal Options Remaining

    Hard Corner at Signalized Intersection

    Excellent Signage and Visibility

    140,000+ residents within a 5-mile radius

    Building is situated on a 1.57 AC lot

    e x e c u t i v e s u m m a r y

    i n v e s t m e n t h i g h l i g h t sRepresentative Photo

  • C V S , S h r e v e p o r t , L A | 5

    Annualized Operating DataMonthly Rent Annual Rent Cap Rate Increases

    Current - 12/31/2018 $25,320.93 $303,851.10 15.00% 1.70%

    Option 1 $25,775.43 $309,305.10 15.27% 1.70%

    Option 2 $26,229.93 $314,759.10 15.54% 1.70%

    Option 3 $26,684.43 $320,213.10 15.81% 1.70%

    Option 4 $27,138.93 $325,667.10 16.08% 1.70%

    C V S2755 Hollywood AvenueShreveport, LA 71108

    List Price ................................................................................. $2,025,000

    CAP Rate - Current ........................................................................ 15.00%

    Gross Leasable Area ............................................................ 10,908 SF

    Lot Size .................................................................................. 1.57 Acres

    Year Built ..............................................................................................1998

    Tenant Summary

    Tenant Trade Name CVS

    Type of Ownership Fee Simple

    Lease Guarantor Eckerd Corporation

    Lease Type NNN

    Roof and Structure Tenant Responsible

    Original Lease Term 20 Years

    Lease Commencement Date 12/02/1998

    Lease Expiration Date 12/31/2018

    Term Remaining on Lease 1.25 Years

    Increases 1.70%

    Options Four, 5-Year Options

    f i n a n c i a l o v e r v i e w

    * Tenant is not expected to renew the lease*

    Representative Photo

  • 6 | O f f e r i n g M e m o r a n d u m Representative Photo

    t e n a n t o v e r v i e w

  • C V S , S h r e v e p o r t , L A | 7

    Property Name CVS

    Property Type Net Leased Drug Store

    Company Trade Name CVS Health Corporation (NYSE: CVS)

    Ownership Public

    Credit Rating (S&P) BBB+

    No. of Locations 9,700

    No. of Employees 243,000

    Headquartered Woonsocket, Rhode Island

    Web Site www.cvs.com

    Year Founded 1963

    TENANT OVERVIEWCVS Health Corporation, together with its subsidiaries, provides integrated pharmacy health care services. It operates through Pharmacy Services and Retail/LTC segments. The Pharmacy Services segment offers pharmacy benefit management solutions, such as plan design and administration, formulary management, Medicare Part D services, mail order and specialty pharmacy services, retail pharmacy network management services, prescription management systems, clinical services, disease management programs, and medical pharmacy management services. The Retail/LTC segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, personal care products, convenience foods, seasonal merchandise, and greeting cards, as well as provides photo finishing services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. Hook-SupeRx, LLC operates as a subsidiary of CVS Health Corporation and retails drugs in the United States. It is based in Indianapolis, Indiana and does business as CVS

    Pharmacy.

    GEOGRAPHIC REACHCVS drugstores span across 49 U.S. states, the District of Columbia, Brazil and Puerto Rico. The company also operates Longs Drugs banner in California, Hawaii,

    Nevada and Arizona. Around 1,000 store locations throughout 31 states and in Washington D.C. also have Minute Clinics.

    STRATEGY

    CVS continues to evolve from being a general pharmacy store, expanding into more specialty fields of the fast-growing healthcare market. The companys Retail

    Pharmacy Store Development plan, which focuses on entering new markets, adding stores in existing markets, and relocating stores to more convenient sites, has

    been essential for business growth and in keeping up with Walgreens. CVS has been successful in its ventures for its store count has increased from 7,388 stores

    at the end of 2011 to nearly 9,700 stores today. In addition to opening new stores, CVS has made efforts to increase sales at existing ones. Prescription drugs

    account for more than two-thirds of its sales, and the retailer is attempting to grow revenues from over-the-counter medications and general merchandise through

    its growing private-label product offering.

  • 8 | O f f e r i n g M e m o r a n d u m

    t h e o f f e r i n g

    Property Name CVS

    Property Address 2755 Hollywood Avenue

    Shreveport, LA 71108

    Assessors Parcel Number 171422-076-0001-00

    Site DescriptionNumber of Stories One

    Gross Leasable Area (GLA) 10,908 SF

    Lot Size 1.57 Acres (68,346 SF)

    Type of Ownership NNN

    Parking 65 Surface Spaces

    Parking Ratio 5.96 : 1,000 SF

    p a r c e l m a p

    Hollywood Ave 11,000 ADT

    p r o p e r t y o v e r v i e w

  • C V S , S h r e v e p o r t , L A | 9

    s u r r o u n d i n g t e n a n t s

  • 1 0 | O f f e r i n g M e m o r a n d u m

    d e m o g r a p h i c sPOPULATION 1 Mile 3 Mile 5 Mile

    2022 Projection 10,483 65,110 140,304

    2017 Estimate 10,691 66,619 142,389

    2010 Census 11,249 70,495 148,278

    2000 Census 11,277 77,821 154,820

    HOUSEHOLDS 1 Mile 3 Mile 5 Mile

    2022 Projection 3,716 25,699 58,859

    2017 Estimate 3,771 26,036 59,258

    INCOME 1 Mile 3 Mile 5 Mile

    2017 Est. Average Household Income

    $35,616 $48,229 $56,965

    S h r e v e p o r t, L A

    As the th i rd - larges t c i t y in the s tate of Louis iana and the seat of Caddo Par ish , Shrevepor t ex tends a long the Red River. Shrevepor t was once a major p layer in Uni ted States o i l business , and at one t ime could boas t Standard Oi l of Louis iana as a local ly based company. Recent ly, Shrevepor t has largely t ransi t ioned in to a ser v ice economy speci f ica l ly wi th in the gaming indus t r y and tour ism.

    a r e a o v e r v i e w

  • C V S , S h r e v e p o r t , L A | 1 1

    e c o n o m i c d e v e l o p m e n t

    The Shrevepor t- Bossier Ci t y was recent ly named as a growing area for the technology indus t r y by technology magazine Innovat ion and Tech Today. The recent increase in tech indus t r y jobs through employers such as CSR A and Eate l has put the area on a shor t l i s t of p laces to watch . The growing number of technology and IT companies located in the region has created near ly 3 ,000 new tech jobs in the las t few years .

    In addi t ion to the tech grow th, the region has seen an increase of For tune 500 companies l ike Centur yLink and IBM to technology s tar t -ups such as CyberReef Solut ions . Shrevepor t a l lows those who l i ve there to work v i r tua l ly any where.

    Shrevepor t- Bossier Ci t y MSA is the commercia l and cul tura l center of the t r i - s tate area where Arkansas , Louis iana and Texas meet . Shrevepor t is home to the Barksdale A i r Force base, which consis t s of the A i r Force G lobal St r ike Command,Eighth A i r Force and Second Bomb Wing and suppor t s the local economy wi th over 12,300 employees and an annual economic impac t of near ly $1 b i l l ion . Home to four r iverboat cas inos/hote ls as wel l as Harrahs Louis iana Downs, prov id ing s tab le employment oppor tuni t ies as wel l as an ample tour is t populat ion .

    t o p e m p l o y e r s

    1 . Barksdale A i r Force Base

    2. Caddo Publ ic Schools

    3. State of Louis iana

    4. Univers i t y Heal th

    5. Wi l l i s - Knighton Heal th Sys tem

    6. Bossier Par ish School Sys tem

    7. Ci t y of Shrevepor t

    8. Wal - Mar t /Sams Stores

    9. Chr is tus Schumper t Heal th Sys tem

    10. Harrahs /Horseshoe Casinos

  • This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of CVS located at 2755 Hollywood Avenue, Shreveport, LA 71108 (Property) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may de

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