CVS DISTRIBUTION CENTER

Transcription

1 Investment Property Offering $36,680,000 CVS DISTRIBUTION CENTER th Avenue, Vero Beach, FL Presented By: Kase Abusharkh 252 Abigail Circle Danville, CA (925) Offering Highlights 25 Yr Absolute Bond Net Lease with 24 Yrs Left Zero Landlord Responsibilities Investment Grade Credit Tenant S&P Rated BBB+ Credit - NYSE: CVS 06/08/2008

2 Table of Contents 1 Financial Analysis Executive Summary Investment Information Financial Summary Rent Roll Summary 2 Additional Information Pictures

3 1. Financial Analysis

4 Executive Summary CVS DISTRIBUTION CENTER th Avenue Vero Beach, FL List Price $36,680,000 Price per S.F. $88.81 Building S.F. 413,000 Land Acres CVS Distribution Center Cross Street 26th Street Tax Parcel Number Market Florida Treasure (East) Coast Sub Market Sebastian-Vero Beach MSA Year Built 2005 Zoning Type PD HVAC Yes Freeway Access Yes Rail Access No Airport Access Yes No. of Stories 1 Building Class A Location Class A Rentable S.F. 413,000 Property Descriptions Area Vero Beach is a city in Indian River County, Florida. According to the U.S. Census Bureau's 2006 estimates, the city had a population of 19,916. It is the county seat of Indian River County. Vero Beach is a Principal City of the Sebastian-Vero Beach Metropolitan Statistical Area, which is home to approximately 130,100 people. Vero Beach may be best known as the location of Dodgertown, where the Los Angeles Dodgers Major League Baseball Team has held its spring training camp since 1948, and where the minor league Vero Beach Devil Rays play during the regular season. Piper Aircraft Inc. builds aircraft in Vero Beach. Major industries include citrus fruit packing and tourism. Tourists are attracted to the city s tropical climate. Vero Beach is known for its outstanding beaches. Part of Florida's Treasure Coast, the beaches combine excellent sand quality with significant surf and tidal action. Vero Beach also holds some of Florida's most exclusive private clubs. Property This is an opportunity to purchase the fee simple interest in this 413,000+/- square-foot regional distribution center sitting on a /- acre site leased to CVS Corporation. The long-term bond net lease requires absolutely zero landlord responsibilities. There are ten successive five year lease renewal options at the same lease rate that is currently in effect. The property will be offered with attractive, below-market existing debt with a 19% equity requirement that must be assumed. Parking Abundant on-site parking on this 49+ acre site for both cars and semi trucks with in and out-bound shipments.

5 Major Tenants CVS Corporation (NYSE: CVS) signed a Bond Net Lease with an initial term of 25 years commencing on November 1, 2006 and expiring on October 31, CVS has been in operation for over 40 years. There are about 6,200 stores in 43 states, 14 distribution centers (including the subject property), regional business offices, and a Store Support Center in Woonsocket, RI which is also the site of CVS corporate headquarters. The CVS Corporation is well positioned to continue that growth and introduce quality service to a diverse group of new customers in communities and neighborhoods across the country.

6 CVS DISTRIBUTION CENTER th Avenue Vero Beach, FL Investment Information Listing Price $36,680,000 Price Per S.F. $88.81 Building S.F. 413,000 Land Acres Loan Amount $29,750,000 Down Payment $6,930,000 Loan Description Existing debt must be assumed. It is 10 year interest only loan with a fixed rate of 5.52% due in December Estimated Annualized Operating Data Actual Net Operating Income $2,129,154 Less Loan Payment $1,665,110 Pre-Tax Cash Flow $464,044 Cash on Cash Return 6.70 % Highlights 25 Yr Absolute Bond Net Lease with 24 Yrs Left Zero Landlord Responsibilities Investment Grade Credit Tenant S&P Rated BBB+ Credit - NYSE: CVS

7 Financial Summary Estimated Annualized Operating Data Actual Net Operating Income $2,129,154 Less Loan Payment $1,665,110 Pre-Tax Cash Flow $464,044 Cash on Cash Return 6.70 % Existing Financial Summary Exisiting Financing Loan Amount $29,750,000 Interest Rate 5.52% Annual Payment $1,665,110 Loan Type Interest Only Terms and Description Existing debt must be assumed. It is 10 year interest only loan with a fixed rate of 5.52% amortized over 30 years due in 2016.

8 Rent Roll Summary Tenant Name Start Date End Date Occupied S.F. Annual Rent S.F. Occupied Rent % of Total Escalations / Options / Comments CVS Corporation 11/1/ /31/ ,000 $5.16 $2,129, % Rent is flat through initial lease term. Ten (5) year options to renew. Rent is flat through all of the option periods. Total 413,000 $2,129, %

9 2. Additional Information

10 Company Growth Some highlights of the growth of CVS Corporation: 2006: CVS acquires 700 stand-alone Sav-On and Osco drugstores from Albertsons, making CVS/pharmacy #1 in fast-growing Southern California and enhancing its presence in key Midwest markets. 2005: CVS/pharmacy ends the year as the largest pharmacy retailer in America, with more than 5,400 locations in 34 states and Washington D.C. CVS/pharmacy serves more than 400 million customers. 2004: CVS completes its acquisition of 1,268 Eckerd Stores and Eckerd Health Services, Eckerd s PBM/Mail-order pharmacy business, increasing its store count to more than 5,000 locations and becoming America s leading pharmacy retailer. CVS/pharmacy announces entry into California. CVS ProCare becomes part of PharmaCare. 2003: CVS celebrates its 40th anniversary, and announces its planned entry into the Minneapolis / St. Paul, Minn. Market. The company s Extra Care loyalty card program ends the year with more than 44 million cardholders. 2002: CVS continues to grow, announcing its plans to enter the Texas market with stores targeted for high-population-growth markets such as Dallas and Houston. Also in the plans the company s first locations in Phoenix and Las Vegas. 2001: CVS/pharmacy introduces the ExtraCare Card, becoming the first national pharmacy retailer to launch a loyalty card program. CVS records annual sales exceeding $22 billion, and continues to expand into diverse, high-growth markets in Central and South Florida. 2000: CVS announces plans to enter the Chicago market and continue expansion in Florida with stores slated for Fort Lauderdale and Orlando. The company acquires Stadtlander pharmacy, making CVS ProCare the largest specialty pharmacy in the U.S. at the time. 1999: Tom Ryan is named chairman of CVS Corporation, succeeding company cofounder Stanley Goldstein.

11 The company announces its intentions to enter Florida, with stores initially planned for the Tampa market. CVS/pharmacy launches CVS.com, the first fully integrated online pharmacy in the U.S. 1998: CVS acquires 200 stores from Arbor Drugs of Michigan to bring its store total to 4,100 across 24 states. The transaction gives our company its first stores in Michigan and the instant lead in the highly competitive Detroit market. In addition, the deal gives CVS/pharmacy a 450,000-square-foot distribution center in Novi, Mich. 1997: CVS completes its acquisition of more than 2,500 stores from Revco the largest acquisition in the history of the U.S. retail pharmacy industry. The acquisition of Revco gives CVS key drugstore locations primarily in the Midwest and Southeast. CVS ProCare is established as a specialty pharmacy subsidiary of CVS. 1996: Following the restructuring of Melville, CVS Corporation becomes a standalone company trading on the New York Stock Exchange under the CVS ticker. Stanley Goldstein is the company's first chairman. 1994: In January, Tom Ryan is named president and CEO of CVS/pharmacy. Ryan began working for CVS/pharmacy in 1978 as a pharmacist. CVS launches PharmaCare, a pharmacy benefit management company providing a wide range of services to employers and insurers. 1993: CVS/pharmacy completes the chain-wide transition to point-of-sale scanning. 1990: CVS acquires 500-store Peoples Drug, which establishes the company in new mid-atlantic markets including Washington, D.C., Pennsylvania, Maryland and Virginia. 1988: CVS/pharmacy celebrates its 25th anniversary, finishing the year with nearly 750 stores and sales of about $1.6 billion. 1987: Stanley Goldstein takes over as chairman and CEO of Melville Corporation. 1986: CVS co-founder Stanley Goldstein is named president and COO of Melville Corporation. 1985: CVS reaches $1 billion in annual sales. 1984: Senior vice president of marketing Harvey Rosenthal is named president and CEO of CVS. He succeeds Stan Goldstein, who is named executive vice president of Melville Corporation. CVS serves more than 178 million customers. 1981: CVS breaks ground on the Store Support Center in Woonsocket, RI.

12 1980: CVS/pharmacy becomes the 15th largest pharmacy chain in the U.S. with 408 stores and $414 million in sales. 1978: CVS finds success and differentiates itself from the competition by opening small health and beauty aids stores in enclosed shopping malls. 1977: CVS acquires the 36-store New Jersey-based Mack Drug chain. 1974: CVS achieves $100 million in annual sales. 1972: CVS nearly doubles in size with its acquisition of 84 Clinton Drug and Discount Stores. The purchase introduced CVS to the Midwest with stores in Michigan and Indiana. 1970: CVS operates 100 stores in New England and the Northeast. 1969: CVS is sold to Melville Corporation. 1967: CVS begins operation of its first stores with pharmacy departments, opening locations in Warwick and Cumberland, R.I. 1964: The chain grows to 17 stores. The original CVS logo is developed (CVS banner inside a shield, with the words Consumer Value Stores below) and displayed on store exteriors for the first time. 1963: The first CVS store, selling health and beauty products, is founded in Lowell, Mass. by brothers Stanley and Sidney Goldstein and partner Ralph Hoagland. CVS stands for Consumer Value Stores. Copyright CVS/pharmacy

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20 th Avenue Vero Beach, FL Demographics Report 1.00 Mile Ring 3.00 Mile Ring 5.00 Mile Ring POPULATION 1990 Population 54 5,069 9, Population 86 5,960 11,117 % Population Change % % % 2006 Total Population 107 7,129 13, Total Population 126 8,039 15,053 % Population Change % % % % Population Change % % % 2006 Total Households 47 4,064 6, Total Households 59 4,629 7,800 % Households Change % % % % Households Change % % % 2006 White Population 76 6,763 12, Black Population American Indian/Alaska Native Asian/Hawaiian/Pacific Islander Other Population (Incl 2+ Races) Hispanic Population Non-Hispanic Population 61 6,908 12, Per Capita Income $22,911 $30,397 $29, Median Household Income $33,499 $33,578 $33, Average Household Income $52,159 $53,322 $57, Household Income < $10, Household Income $10,000-$14, Household Income $15,000-$19, Household Income $20,000-$24, Household Income $25,000-$29, Household Income $30,000-$34, Household Income $35,000-$39, Household Income $40,000-$44, Household Income $45,000-$49, Household Income $50,000-$59, Household Income $60,000-$74, Household Income $75,000-$99, Household Income $100,000-$124, Household Income $125,000-$149,

21 2006 Household Income $150,000-$199, Household Income $200,000-$249, Household Income $250,000-$499, Household Income $500, Average Household Size Total Owner Occupied Housing Units 36 3,417 5, Total Renter Occupied Housing Units , Total Daytime Population 504 7,718 16, Total Daytime Work Population 151 2,674 7, Total Establishments HOUSEHOLDS 1990 Households 24 2,619 4, Households 35 3,211 5,524 % Households Change % % %