CVS | 13 Yrs Remaining | 5% Rent Inc

The Snyder Carlton National Net Lease Team is pleased to offer for sale a single-tenant CVS Pharmacy equipped with a Health HUB and Minute Clinic. The subject property is located at 2501 Warren Rd., Indiana, PA. CVS Pharmacy recently extended their lease by an additional 5-year term, leaving 13 years of contractual term remaining. This is an absolute NNN lease structure with zero landlord obligations. The freestanding 11,945 SF building was constructed in 2009 and is situated on a 1.89-acre lot. There are six, five-year options remaining, with 5% rental increases in each of the remaining option periods 
(options 1-6). 

The property is located at the hard, signalized intersection of Warren Rd. and Indian Springs Rd. and benefits from being located across the street from Town Fair Plaza (anchored by Giant Eagle Supermarket and Lowe’s) and Indiana Mall (anchored by Kohl’s, Harbor Freight Tools, JC Penney, Dunham’s Sports, and Rural King). Both Indiana University of Pennsylvania and Indiana Regional Medical Center are within close proximity to the subject property. This CVS is the only freestanding drugstore in the city of Indiana, PA. There is no competition from Walgreens or Rite Aid. The only other drugstores in the city are Giant Eagle Supermarket, Walmart Pharmacy, and Martin’s Food & Drugstore. 

This is an excellent opportunity to acquire a well-located CVS Pharmacy with 13 years of term remaining on an absolute NNN Lease. This passive investment offers long-term stability of cash flow with rent increases in the option periods. The in-place rent of $289,806 is below average for similar footprint drugstore buildings. This location benefits from being equipped with a Health HUB and Minute Clinic (added services offered by CVS). In addition to the conservative in-place rent, there is very minimal drugstore competition in the city as there are no freestanding Walgreens, Rite Aid, or other CVS in Indiana, PA. CVS Pharmacy has a current investment-grade credit rating of Baa3 Stable (Moody’s) and BBB Negative (S&P). CVS Pharmacy is publicly traded on the NYSE (NYSE: CVS).  There are approximately 32,400 people with an average household income of $83,422 within a 5-mile radius.

Available