James Capital Advisors, Inc. Cvs Pharmacy - Beaumont, Tx Marketing Package
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CVS PHARMACY - BEAUMONT, TX JAMES CAPITAL ADVISORS, INC. CVS PHARMACY - BEAUMONT, TX MARKETING PACKAGE CVS PHARMACY 6850 Eastex Fwy Beaumont, TX 77708 CONTENTS PAGE Investment Summary 03 Finance Memorandum 04 Lease Summary 05 Rent Schedule 06 Retail Aerial 07 Site Plan 09 About the Brand 10 Location Overview 11 CONTACT INFORMATION tony anderson Director, Net Lease (424) 325-2615 02 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX INVESTMENT SUMMARY Tenant CVS Pharmacy $4,403,346 Street Address 6850 Eastex Fwy PURCHASE PRICE $4.4M City Beaumont 4.90% State TX CAP RATE 4.90% Zip 77708 $215,764 GLA 12,974 SF NET OPERATING INCOME$215K Lot Size 1.42 AC Price / SF $339.40 Year Built 2005 Rent / SF $16.63 True Passive Investment - This property is subject to a brand new 20-year Absolute Net (NNN) lease (18+ years remaining), which provides passive investment to the landlord and holds the tenant responsible for all maintenance and expenses. Recent Lease Extension - CVS extended its lease term for a full 20 years prior to the expiration of its base-term; showing unparalleled commitment to the site. CVS only extends for 20-year leases on their top-performing stores nationwide. No Income Tax State - Texas is one of several states with no state income tax. Investors that live in non-income tax states can benefit from higher post-tax dollars. Investment Grade Tenant with Strong Corporate Guarantee - The tenant’s parent company, CVS Health Corporation, has an S&P credit rating of BBB and is the second largest pharmacy health care provider in the United States. Corporate Lease with Leading National Pharmacy - The lease is with CVS Pharmacy, Inc., a leading national retail pharmacy company with more than 9,800 locations in the United States and over 1,100 walk-in medical clinics. 03 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX FINANCING MEMORANDUM TRUST. EXPERIENCE. EXECUTION. CASH ON CASH RETURN YEAR 1 $ $2,862,175 Our expertise brings extensive lending relationships PROPOSED LOAN 65% Buyer Equity $1,541,171 (35%) and market knowledge to your unique loan Loan Amount $2,862,175 (65%) assignment. % 3.87% James Capital focuses on customized financing INTEREST RATE Debt Service -$161,410 solutions for every deal and client. we assure your Pre-Tax Cash Flow (3.53%) financing assignment stays on track. 30 Years $54,354 AMORTIZATION Principle Reduction $51,552 Total Return $105,906 (6.87%) $ $4,403,346 10 Years TOTAL PURCHASE PRICE TERM DCR 1.34 04 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX LEASE SUMMARY Lease Type Absolute Net (NNN) Real Estate Taxes Tenant Responsible Type of Ownership Fee Simple Insurance Tenant Responsible Original Lease Term 20 Years Roof & Structure Tenant Responsible Commencement Date 6/25/2018 ROFR 20 Days Lease Expiration 6/30/2038 Lease Guarantor Corporate Term Remaining 18+ Years Company Name CVS Pharmacy Increases 3% in Each Option Ownership Public Options Nine (9), 5-Year Number of Locations 9,828 Recent Acquisition of Aetna - The recent merger between CVS Health and Aetna is expected to create a healthcare behemoth with $240 billion in annual revenue and strong synergies with CVS and Aetna’s 22 million customers. Strategically Located - Strategically positioned near the heavily trafficked State Highway 105 with average daily traffic counts exceeding 85,000 vehicles per day. Site Accessibility - Multiple ingress/egress access points at a signalized intersection that allows for easy access to the property. Surrounding National Retailers - Surrounding national tenants include Walmart, Lowe’s, Target, Hobby Lobby, Starbucks, McDonald’s, Sherwin Williams, Harbor Freight, Burlington, Northern Tool, Academy Sports, etc. Economic Community Drivers - The Port of Beaumont is a key transportation hub in the state of Texas creating more than 12,000 direct, indirect, induced and related user jobs, according to a 2015 economic impact study. With annual economic activity exceeding $1.8 billion and more than $111 million being contributed to the economy via re-spending and local consumption, the Port of Beaumont’s economic impact can be felt on a national level and global level. 05 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX RENT SCHEDULE PERIOD TERM ANNUAL RENT MONTLY RENT INCREASE CAP RATE 06/25/2018 - 06/30/2038 Base Term $215,763.75 $17,980.31 - 4.90% 06/30/2038 - 07/1/2043 1st Option $222,236.66 $18,519.72 3% 5.05% 07/1/2043 - 06/30/2048 2nd Option $228,903.76 $19,075.31 3% 5.20% 06/30/2048 - 07/1/2053 3rd Option $235,770.88 $19,647.57 3% 5.35% 07/1/2053 - 06/30/2058 4th Option $242,844.01 $20,237.00 3% 5.51% 06/30/2058 - 07/1/2063 5th Option $250,129.33 $20,844.11 3% 5.68% 07/1/2063 - 06/30/2068 6th Option $257,633.21 $21,469.43 3% 5.85% 06/30/2068 - 07/1/2073 7th Option $265,362.21 $22,113.52 3% 6.03% 07/1/2073 - 06/30/2078 8th Option $273,323.07 $22,776.92 3% 6.21% 06/30/2078 - 07/1/2083 9th Option $281,522.76 $23,460.23 3% 6.39% 06 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX RETAIL AERIAL 07 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX RETAIL AERIAL 08 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX SITE PLAN 09 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX ABOUT THE BRAND CVS Pharmacy is the largest retail pharmacy in the United States, filling more than one billion prescriptions each year. CVS retail stores feature thousands of items including organics and naturals, innovations in beauty and health, and healthier-for-you food choices. CVS Pharmacy is subsidiary of the American retail and health care company CVS Health. CVS Health is a pharmacy innovation company helping people on their path to better health. Through its more than 9,800 retail locations, 1,100+ walk-in medical clinics, a leading pharmacy benefits manager with more than 94 million plan members, a dedicated senior pharmacy care business serving more than one million patients per year, expanding specialty pharmacy services, and a leading stand-alone Medicare Part D prescription drug plan, the company enables people, businesses and communities to manage health in more affordable and effective ways. The company’s unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. CVS Health Reports First Quarter Results • Revenues increased 34.8% to $61.6 B • GAAP operating income increased 34.8% to $2.7B • GAAP diluted earnings per share of $1.09 • Adjusted operating income increased 56.8% to $3.6B • Generated cash flow from operations of $1.9 Billion • Adjusted EPS (a) of $1.62 A New Approach to Health Care CVS will open 1,500 HealthHUB stores by the end of 2021 that offer an expanded range of health services and wellness products for everyday care and chronic conditions. HealthHubs offer a wider variety of health care services than traditional CVS pharmacies. Additional features include a wider selection of health products, more personalized pharmacy support, expanded MinuteClinic services, in-store community programming and a concierge team for customer assistance. Available nights and weekends. All from a team of care professionals. All in one place. 10 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX LOCATION OVERVIEW Beaumont, TX Beaumont, Texas is home to astonishing biodiversity and historical significance. Travelers come from long distances to enjoy Southeast Texas’ outdoor opportunities including fishing, hunting, birding, paddling & holding live alligators. On the border of Louisiana but thoroughly Texan, Beaumont embraces both brisket and crawfish. The community was once called home by musicians like George Jones and Janis Joplin, artists like Robert Rauschenberg and actors like G.W. Bailey to have a vibrant entertainment and arts community. Situated perfectly in the middle of the Texas Gulf coast, Beaumont is a city in the county seat of Jefferson County, Texas, in the United States within the Beaumont–Port Arthur MSA. Locals commonly refer to this area as the Golden Triangle, referencing the larger cities in the region - Beaumont, Port Arthur and Orange. Smaller cities include Port Neches, Nederland, Groves, Vidor and Bridge City. Beaumont was founded as a town in 1835. The pioneer settlement had an economy based on the development of lumber, farming, and port industries. Beaumont, TX Spindletop Gusher A big change occurred in 1901 with the Spindletop gusher, which demonstrated that a huge oil field lay underneath and adjacent to the city. The discovery of oil created a new destiny for this farming and lumber town, transforming it into a center of culture and refinement built on the riches of black gold. With Spindletop, several energy companies developed in Beaumont, and some continue. The area rapidly developed as one of the major petro-chemical refining areas in the country. Colleges & Universities Beaumont houses many educational institutions that ripple immense impact throughout the community. Home to more than 14,000 students, Lamar University sits on a 270-acre campus just a short drive from Beaumont’s downtown museum and entertainment district. Lamar Institute of Technology (LIT) provides a curriculum consisting of more than 50 degree and certificate programs covering a wide range of career and technical educational opportunities. LIT is just a quick drive from Beaumont’s dining and nightlife opportunities as well as a wide variety of outdoor activities. Lamar University 11 6850 EASTEX FWY, BEAUMONT, TX 77708 CVS PHARMACY - BEAUMONT, TX LOCATION OVERVIEW 1.