CVS Distribution Center 500 Lansdowne Road Fredericksburg, VA 22408
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www.TheKaseGroup.com CVS Distribution Center 500 Lansdowne Road Fredericksburg, VA 22408 $25,800,000 Long Term Absolute Bond Net Lease Zero Landlord Responsibilities Investment Grade Credit | S&P Rating of BBB+ Washington D.C. Metropolitan Area Presented By: Kase Abusharkh 252 Abigail Circle Danville, CA 94506 (925)348-1844 The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Table of Contents 1 Financial Analysis 2 Tenant Corporate Stock Information 3 Tenant Corporate Growth Summary 4 Area Demographics Summary 5 Additional Site Information 6 Property Photos The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 1 . Financial Analysis Executive Summary CVS Distribution Center 500 Lansdowne Road Fredericksburg, VA 22408 List Price $25,800,000 Price per S.F. $52.88 CAP 6.01 % Building S.F. 487,897 No. of Dock High Doors 65 Land Acres 39.40 CVS Distribution Center Cross Street Shannon Drive Tax Parcel Number 024-A-00-102A Market Washington D.C. MSA Sub Market Spotsylvania County Year Built 1985 Year Renovated 1995 Roof Type Standing Seam Roof Zoning Type Commercial No. of Buildings 1 Percent Office Space 3.00 % Mezzanine Yes HVAC Yes Freeway Access Yes Rail Access Yes Airport Access Yes No. of Stories 1 Clear Height 39 Feet Sprinkler Type Wet Pipe ESFR Property Descriptions Area The property is located immediately south of the City of Fredericksburg in Spotsylvania County. Spotsylvania is one of Virginia's fastest-growing counties, largely because of its location along Interstate 95, midway between the United States capital of Washington D.C. and the state capital of Richmond. Both capital cities are about 50 miles distant. Interstate Highway 95 is the major north/south freeway through the Fredericksburg area and provides direct access to Washington, D.C., New York and New England to the north, and Richmond and Miami to the south. Another major north/south thoroughfare serving Fredericksburg is U.S. Highway 1, which generally parallels Interstate Highway 95. The major southeast/northwest freeway is U.S. Highway 1, which generally parallel Interstate Highway 95. Three major airports are within a 60-minute drive of the Fredericksburg Region- Dulles International, Ronald Reagan Washington National and Richmond International. Construction The construction includes insulated metal panels and concrete tilt-wall exterior walls and reinforced steel framing. There are adequate driveways, parking and loading areas. The property is attractively landscaped compared to other properties in the area. The superstructure for both phases of the facility consists of open web joist girders. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Electrical Exterior lighting is provided by 1000 watt or equivalent metal halide wall pack fixtures mounted on the building at 200 foot intervals and pole lights mounted at 500 foot intervals around the perimeter of the site. All electrical wiring is assumed to be in compliance with local codes. Property The subject property is an improved a single-tenant warehouse/distribution building that comprises of a gross building area of 487,897 square feet. The gross building area includes a finished-out mezzanine area and a second story office area. The majority of the building is utilized for warehouse or distribution space. Approximately 13,858 square feet (or 3% of the total square footage) are utilized for either office or cafeteria space. The original portion of the facility, comprising of approximately 478,697 square feet, was constructed in 1985. The addition was completed in 1995. According to the existing survey, the subject land parcel has a frontage of 1,474.64 lineal feet along the east side of Lansdowne Road. The site has average visibility from Lansdowne Road, and has adequate access to the local highway system. Access to the property is provided via a single curb cut along Lansdowne Road. The site also features 2,194.94 lineal feet of frontage along the west side of the CSX Railroad right-of-way. Renovation There was a 9,200 square-foot addition to the structure in 1995. Parking There are adequate driveways, parking and loading areas. The facility has 65 truck doors associated with bays. On-site parking includes 436 automobile spaces, as well as 106 trailer spaces. Major Tenants CVS Corporation (NYSE: CVS) signed a Bond Net Lease with an initial term of 22 years commencing on November 29, 2001 and expiring on January 31, 2024. 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. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Investment Information CVS Distribution Center 500 Lansdowne Road Fredericksburg, VA 22408 Listing Price $25,800,000 Building S.F. 487,897 Actual CAP 6.01 % No. of Dock High Doors 65 Land Acres 39.40 Annualized Operating Data Actual Net Income $1,549,566 Highlights Long Term Absolute Bond Net Lease Zero Landlord Responsibilities Investment Grade Credit | S&P Rating of BBB+ Washington D.C. Metropolitan Area The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. www.svn.com Rent Roll Summary Tenant Name Start Date End Date Occupied Annual Occupied Escalations / Options / Comments S.F. Rent S.F. Rent CVS Corporation 11/29/2001 1/31/2024 487,897 $3.18 $1,549,566 There are ten renewal options. Lease rate is flat for the initial term. Annual rent for first two option periods (2/1/2024-5/31/2033) is $1,394,609. The next eight renewal options have terms of five years each and fixed annual rent of $1,394,609 as long as building satisfies 80% economic life test and 20% fair market value test. If either test fails, annual rent is set at 101% of fair market rent for the then current and one subsequent renewal term and at 100% of fair market rent for any remaining renewal terms. Total 487,897 $1,549,566 The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 1 . Financial Analysis 2 . CVS Corp. Stock Information Company Stock Information CVS Corporation (Public, NYSE:CVS) $30.04 Open: 29.83 Mkt Cap: 24.74B P/E: 18.62 High: 30.53 52Wk High: 36.14 F P/E: 15.18 +0.43 (1.45%) Low: 29.66 52Wk Low: 26.06 Beta: 1.06 Dec 6, 4:01PM ET Vol: 16.23M Avg Vol: 18.13M EPS: 1.59 Related Companies Caremark Rx, Inc. CMX 49.59 +0.71 (1.45%) BioScrip Inc. BIOS 3.75 -0.31 (-7.64%) Longs Drug Stores Corp. LDG 41.97 +0.13 (0.31%) Nyer Medical Group, Inc. NYER 2.28 -0.16 (-6.56%) Familymeds Group Inc. FMRX 2.69 +0.04 (1.40%) Allion Healthcare, Inc. ALLI 5.80 -0.10 (-1.69%) Walgreen Company WAG 43.66 +0.50 (1.16%) drugstore.com, inc. DSCM 3.44 -0.05 (-1.43%) Option Care, Inc. OPTN 14.51 -0.07 (-0.48%) Rite Aid Corporation RAD 5.11 +0.31 (6.46%) Financials (In millions of USD) Quarterly Annual Annual Income Statement (Sep '06) (2005) (2005) Total Revenue 11,206.90 37,006.20 30,594.30 Gross Profit 3,080.30 9,901.20 8,031.20 Operating Income 536.80 2,019.50 1,454.70 The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Net Income 284.20 1,224.70 918.80 Balance Sheet Total Current Assets 9,943.10 8,392.70 7,919.50 Total Assets 21,127.40 15,283.40 14,546.80 Total Current Liabilities 7,616.20 4,583.90 4,858.80 Total Liabilities 11,693.00 6,952.20 7,559.60 Total Equity 9,434.40 8,331.20 6,987.20 Cash Flow Net Income/Starting Line 284.20 1,224.70 918.80 Cash from Operating 269.60 1,612.10 914.20 Cash from Investing -658.60 -911.60 -3,163.30 Cash from Financing 251.30 -579.40 1,798.20 Net Change in Cash -137.70 121.10 -450.90 Key Stats & Ratios Quarterly Annual Annual (Sep '06) (2005) (TTM) Net Profit Margin 2.54% 3.31% 3.27% Operating Margin 4.79% 5.46% 5.53% EBITD Margin - 7.05% 7.19% Return on Average Assets 5.50% 8.21% 7.47% Return on Average Equity 12.45% 16.29% 15.86% Employees 148,000 - - Summary CVS Corporation operates in the retail drugstore industry in the United States with 5,471 retail and specialty pharmacy stores in 37 states and the District of Columbia. The Company sells prescription drugs and an assortment of general merchandise, including over-the-counter drugs, beauty products and cosmetics, film and photofinishing services, seasonal merchandise, greeting cards and convenience foods, through its CVS/pharmacy retail stores and online through CVS.com. It also provides pharmacy benefit management, mail order services and specialty pharmacy services through PharmaCare Management Services and PharmaCare Pharmacy stores.