CVS PHARMACY 13 PORT WATSON ST, CORTLAND, NEW YORK & 345 MAIN ST, JOHNSON CITY, NEW YORK Lake Ontario ¤£11 FULTON
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TWO SINGLE TENANT CVS PHARMACIES LOCATED IN NEW YORK CORTLAND, NY JOHNSON CITY, NY CVS PHARMACY 13 PORT WATSON ST, CORTLAND, NEW YORK & 345 MAIN ST, JOHNSON CITY, NEW YORK Lake Ontario ¤£11 FULTON GREECE IRONDEQUOIT ROME 81 Oneida Lake INVESTMENT ADVISORS ROCHESTER MARC MANDEL490 BRIGHTON ONEIDA ¦¨§490 UTICA Managing Director SYRACUSE 90 484.532.4212 CORTLAND, NY BATAVIA AUBURN [email protected] FARMINGTON ¤£20 ¤£20A STEVE SCHRENK ¤£20A Director 484.532.4213 [email protected] CORTLAND 390¦¨§390 DEBT ADVISOR ¦¨§8181 MIKE PAGNIUCCI ITHACA Director ONEONTA 484.532.4172 88 ¦¨§8686 [email protected] CORNING BINGHAMTON OLEAN ELMIRA 86 NEW YORK JOHNSONPENNSYLVANIA CITY, NY 81 ¤£6 ¤£11 Holliday Fenoglio Fowler, L.P. (“HFF”), a New York licensed real estate broker. This Offering Memorandum has been prepared by HFF for use by a limited number of recipients. All information contained herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective ¤£209 equity holders, officers, employees and agents makes any representations or warranties, expressed or implied, as to the accuracy or completeness of the information contained herein. Further, the Offering Memorandum does not constitute a representation that no change in the business or affairs of the property¤£15 or the Owner has occurred since the ¤£date220 of the preparation of the Offering Memorandum. All analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the recipient. HFF and Owner and their respective officers, directors, employees, equity holders and agents expressly disclaim any and all liability that may be based upon or relate to the use of the information contained in this Offering Memorandum. Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors. Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived. The recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained in the Offering Memorandum, which is a matter of public record, or is provided from sources available to the public (b) the Recipient, the Recipient’s employees, agents and consultants (collectively, the “need to know parties”) will hold and treat it in the strictest of confidence, and the Recipient and the need to know parties will not, directly or indirectly, disclose or permit anyone else to disclose its contents to any other person, firm, or entity without the prior written authorization of HFF and the Owner, and (c) the Recipient and the need to know parties will not use or permit to be used this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner or HFF or for any purpose other than use in considering whether to purchase the property. The Recipient and the need to know parties agree to keep this Offering Memorandum and all confidential information contained herein permanently confidential and further agree to use this Offering Memorandum for the purpose set forth above. If the Recipient has no interest in the property, or if in the future the Recipient or owner discontinue such negotiations, the Recipient will return this Offering Memorandum to HFF. Lake Ontario ¤£11 FULTON GREECE IRONDEQUOIT ROME 81 Oneida Lake ROCHESTER 490 BRIGHTON ONEIDA ¦¨§490 SYRACUSE UTICA 90 BATAVIA FARMINGTON AUBURN ¤£20 ¤£20A ¤£20A CORTLAND 390¦¨§390 ¦¨§8181 ITHACA ONEONTA 88 ¦¨§8686 CORNING BINGHAMTON OLEAN ELMIRA 86 NEW YORK PENNSYLVANIA 81 ¤£6 ¤£11 ¤£209 JOHNSON CITY, NY ¤£15 ¤£220 INVESTMENT SUMMARY CVS PHARMACY | JOHNSON CITY & CORTLAND | NEW YORK · · · INVESTMENT SUMMARY Holliday Fenoglio Fowler, L.P. (“HFF”) Net Lease Advisory is pleased to exclusively offer a premier net lease opportunity to acquire Two CVS Pharmacies (the “Properties”) with 10 and 5 years of remaining lease term, located in upstate NY. Both locations have been at their respective locations since 1998 and recently both locations signed lease extensions showing long term commitment to the sites. The Properties currently have financing in place giving the purchaser an option to assume the current loan. CVS is the largest healthcare provider in the U.S. with more than 250,000 employees and over 9,700 stores. CVS Pharmacy serves over 5 million customers a day and has a market cap of over $74 billion. CVS sells prescription drugs and a wide assortment of general merchandise, including over-the-counter drugs, beauty products and cosmetics, film and photo finishing services, seasonal merchandise, greeting cards, and convenience foods through their CVS Pharmacy and Longs Drugs retail stores and online through CVS.com. It also provides healthcare services through its more than 1,100 Minute Clinic medical clinics as well as their Diabetes Care Centers. Offers are encouraged on a portfolio and individual basis. 13 PORT WATSON ST 345 MAIN ST CORTLAND, NY JOHNSON CITY, NY $3,175,551 $3,488,400 ASKING PRICE ASKING PRICE CORTLAND, NY 6.15% 6.75% CAP RATE CAP RATE $195,288 $235,467 NOI NOI 10 Years 5 Years REMAINING LEASE TERM JOHNSON CITY, NY REMAINING LEASE TERM 4 INVESTMENT SUmmary CVS PHARMACY | · · · ASSUMABLE FINANCING ASSUMABLE DEBT LENDER TYPE RATES AS OF 10/30/2018 WELLS FARGO (CMBS) LTV/Loan Balance: $3,990,000 5 Yr. Treasury 2.921% Rate Type: Fixed-rate 7 Yr. Treasury 3.009% Monthly Debt Service Payment: $21,770 10 Yr. Treasury 3.086% Interest Rate (as of 10/30/2018): 4.695% Loan Maturity Date 8/06/2025 5 Yr. Swap 3.073% Term: 6 Yrs, 11 Mos remaining 7 Yr. Swap 3.096% Amort: 30 Years 10 Yr. Swap 3.154% Interest Calculation: Act/360 Recourse: Non-recourse Prepayment Penalty: Defeasance INDICATIVE FINANCING TERMS LENDER TYPE BANK CMBS LTV/Loan Balance: 70% 70% 70% 75% Rate Type: Fixed-rate Fixed-rate Fixed-rate Fixed-rate Spread: 1.75% 1.75% 1.95% 2.00% Index: 5 Yr. Treasury 7 Yr. Treasury 10 Yr. Swap 10 Yr. Swap Interest Rate (as of 10/30/2018): 4.67% 4.76% 5.10% 5.15% Term: 5 Years 7 Years 10 Years 10 Years Interest-only: - - 2-3 Years - Amort: 30 Years 30 Years Interest Calculation: Act/360 Act/360 Recourse: Non-recourse Non-recourse Prepayment Penalty: Swap Breakage of Stepdown Defeasance | CVS PHARMACY INVESTMENT SUmmary 5 CORTLAND, NY TENANT OVERVIEW CVS PHARMACY | JOHNSON CITY & CORTLAND | NEW YORK · · · CVS is the largest healthcare provider in the U.S. with more than 250,000 employees and over 9,700 stores. CVS Pharmacy serves over 5 million customers a day and has a market cap of over $74 billion. CVS sells prescription CORPORATE OVERVIEW drugs and a wide assortment of general merchandise, including over-the-counter drugs, beauty products and cosmetics, film and photo finishing services, seasonal merchandise, greeting cards, and convenience foods through Headquarters Woonsocket, RI their CVS Pharmacy and Longs Drugs retail stores and online through CVS.com. It also provides healthcare services through its more than 1,100 Minute Clinic medical clinics as well as their Diabetes Care Centers. Most of these clinics are located within CVS stores. The Minute Clinic boasts 34,000,000 patient visits annually and records $40 Ticker CVS (NYSE) billion in specialty drug revenue. CVS operates through the following segments: Pharmacy Services, Retail or Long Term Care, and Corporate. The company was founded by Stanley P. Goldstein and Ralph Hoagland in 1963 and is headquartered in Woonsocket, RI. In December CVS Health announced that its merger with Aetna. Aetna is one of the nation’s leading diversified Baa1 health care benefits companies. This transaction fills an unmet need in the current health care system and presents MOODY’S CREDIT RATING a unique opportunity to redefine access to high-quality care in lower cost, local settings whether in the community, at home, or through digital tools. “This is the next step in our journey, positioning the combined company to dramatically further empower consumers. Together with CVS Health, we will better understand our members’ 9,700 health goals, guide them through the health care system and help them achieve their best health,” said Mark T. LOCATIONS IN THE UNITED STATES Bertolini, Aetna chairman and CEO. Together, CVS Health and Aetna will be a trusted community partner who will help consumers better manage the cost of the health care they need. The combined company will also be well positioned to more effectively meet the $77.55 BILLION health needs of many more people. MARKET CAP AS OF 9/2018 www.cvs.com | CVS PHARMACY TENANT OVErviEW 7 CORTLAND, NY CVS PHARMACY 13 PORT WATSON STREET | CORTLAND | NEW YORK · · · CVS CORTLAND INVESTMENT HIGHLIGHTS The Property is located on Port Open since 1998 at this location, Watson St with exposure to over Minimal deferred maintenance at this Corporate Guaranteed CVS 15,880 VPD and is entrenched in a the property due to the all brick Pharmacy features 10 years neighborhood