CVS

Highlights

• An investor will benefit from a rare 25% rental increase within the first 4 years of ownership, thus boosting the yield to 8.75% based on a 7% going-in cap rate
• CVS is in close proximity to national, daily-needs retailers including Safeway, Food Pavilion, McDonald’s, and Starbucks
• Lynden is part of the Bellingham MSA, and is just 4.7 miles south of the Canadian border; retailers in the Lynden market see cross-border shopping from Canadians, primarily from British Columbia
• The initial term runs through 03/31/2033, and CVS has eight, 5-year extension options
• The Lynden CVS is located on a signalized intersection along Guide Meridian Road, which boasts daily traffic counts that exceed 26,000 VPD
• The offering is a freestanding, single-tenant CVS equipped with a drive-thru, located in Lynden, WA
• The subject property has multiple points of ingress/egress, and benefits from excellent street visibility and ease of access
• The subject property was formerly a Rite Aid, and CVS recently assumed the Absolute NNN lease and along with 63 other former Rite Aid stores in Idaho, Oregon, and Washington; the store is now open and operating with exterior signage upgrades ongoing
• Walgreens does not have a store within the surrounding area, making CVS the go-to pharmacy serving this market
• Washington state does not impose a personal or corporate income tax, providing a strategic advantage to qualified investors
• While in operation as a Rite Aid, the subject property reported strong store sales upwards of ~$11MM as of 2023 (contact broker for details)

Location