Investment Grade CVS Absolute Net Ground Lease for Sale

Highlights:

• Investment Grade Tenant - Moody's rating: Baa2;
• S & P - as of December 2024, credit rating of BBB outlook is stable!
• Primary Term thru January 31, 2042 with ten (10) five (5) year options to extend;
• 10% rental increases at the beginning of each five year option;
• Building renovated by CVS for their use in 2016;
• 39,583 sf lot with cross easement rights to adjacent shopping center - Campus Pointe Mall;
• Parking lot was re-paved and re-striped in 2019;
• Three points of ingress/egress into overall shopping center;
• Single lane "drive thru" access;
• Traffic counts at this lighted intersection are close to 40k cpd;
• Extended store hours from 7:00 am to 12:00 am, Monday through Sunday;
• CVS acquired Aetna, the nation's 3rd largest health insurer in terms of membership in 2018/2019.

Description:

Approximately 16.5 years left on an ABSOLUTE NET GROUND LEASE with CVS at a fabulous corner location across from a main entrance to Western Michigan University. The significant growth projected within a 1 mile radius over the next 5 years in addition to all of the drug store traffic generated by the 17,835 plus students attending college across the street make this a solid real estate investment. CVS operates 9,600 traditional retail locations and over 900 stores that include Minute Clinics, it's primary Care Clinics. CVS is the largest drug store chain with the Top Pharmacy as ranked by prescription drug market share as of end of Qtr. 1 2025 totaling approximately 33.80%. As of end of 2024, global revenue totaled $372.8 Billion. In 2024 CVS was ranked 6th on the Fortune 500 and 10th on the Fortune Global 500. In 2024, Fortune also ranked CVS Health the 32nd most admired companies in worldwide

This hard corner property is located at the lighted western entry to Western Michigan University ("WMU") campus serving approximately 22,500 total students (2019). The adjacent campus encompasses about 1300 acres with degree programs at both the undergraduate and graduate levels ranking it 2nd among Michigan's 15 public universities in the number of bachelor programs offered. At $1.6B, WMU's economic impact is greater than Michigan's entire $1.4B budget line for all state universities. In addition to WMU, Kalamazoo is home to Kalamzaoo College and Kalamazoo Valley Community College, a two-year community college. With a population of more than 335,340, Kalamazoo is the 6th largest metropolitan area in Michigan and is home to the Stryker Corporation, the former Upjohn Company now part of the Pfizer Corporation as well as the global headquarters of Zoetis, the world's largest producer of medicine and vaccinations for pets and livestock. This CVS is immediately located near many new multi-story apartment and student housing complexes as well as many national retailers and businesses such as Costco, Save-A-Lot, At Home, Trader Joe's, Office Depot, PetSmart, Dunham's Sports, Lowe's, Kohl's, Harbor Freight Tools, Zeigler Auto Group including Dodge, Honda, Chrysler, and BMW, Aldi, Buffalo Wild Wings, McDonald's, Taco Bell, Starbucks, Domino's, Applebee's, Tim Horton's, Verizon and many more.

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