CVS PHARMACY OFFERING MEMORANDUM NET LEASE INVESTMENT 900 North J.K. Powell Boulevard Whiteville, NC 28472 JOE GRAHAM Senior Vice President 919.831.8196 [email protected] Part of the CBRE affiliate network INVESTMENT SUMMARY *Representative image of CVS location 900 North J.K. Powell Blvd LOCATION 900 North J.K. Powell Blvd LOCATION Whiteville, NC 28472 BUILDING SIZE 10,055 SF PURCHASELOT SIZE PRICE $3,002,5001.68 AC CAPPURCHASE RATE PRICE $3,002,5006.2% CAP RATE 6.2% LEASE SUMMARY TENANT Revco Discount Drug Centers, Inc. GUARANTOR CVS Corporation LEASE TYPE NN LEASE EXPIRATION 1/31/2027 RENT $186,150 OPTIONS TO EXTEND (6) 5-YEAR OPTIONS OPTION 1 $191,735 OPTION 2 $197,487 OPTION 3 $203,411 OPTION 4 $209,541 OPTION 5 $215,799 OPTION 6 $222,273 OFFERING MEMORANDUM CVS PHARMACY 2 TENANT OVERVIEW CVS Pharmacy Size matters to CVS Health Corp. (formerly CVS Caremark), the nation’s #2 der pharmacies, and four mail order dispensing pharmacies. It also operated drugstore chain and a leading pharmacy benefits manager with nearly 65 more than 85 medical branches, most of which are ambulatory infusion sites, million plan members. With more than 7,800 retail and specialty drugstores but also include specialist infusion and enteral service facilities. Its other of- under the CVS, Navarro, and Longs Drug banners, it trails rival Walgreen ferings include plan design and administration, formulary management, dis- (8,300) in store count. In addition to its pharmacy operations, the company counted drug purchase arrangements, and a slew of other services. All told, sells retail items, and runs a prescription management company, Caremark the division fills more than 930 million prescriptions per year. Pharmacy Services. The growing company also offers walk-in health services through its retail network of MinuteClinics that are located in more than 900 CVS’s better-known Retail Pharmacy segment generates more than 40% of CVS stores. In mid-2015, it acquired Omnicare in a $12.7 billion mega deal. sales, and operates a network of more than 7,800 retail drugstores, more than 970 MinuteClinic locations, and online operations (CVS.com and Na- CVS Health operates through two main segments: Pharmacy Services and varro.com). The pharmacy accounts for more than two-thirds of sales in this Retail Pharmacy. segment, but the company also sells other “front store” retail merchandise. Additionally, CVS’ fast-growing MinuteClinics, which are primarily located in Pharmacy Services, which accounts for nearly 60% of sales, is the company’s CVS stores, are staffed by nurse practitioners and physician assistants who prescription benefits management (PBM) division. It dispenses drugs through treat minor conditions, perform health screenings, and deliver vaccinations; nearly 30 retail specialty pharmacy stores, more than 10 specialty mail or- some locations also treat chronic conditions. *Representative image of CVS location Source: http://www.vault.com/company-profiles/retail/cvs-pharmacy,-inc/company-overview.aspx OFFERING MEMORANDUM CVS PHARMACY 3 LOCATION MAP CVS PHARMACY © 2015 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either CBRE Limited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient may deem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced. Layout ID:L05 MapId:3174836 OFFERING MEMORANDUM CVS PHARMACY 4 SURROUNDING RETAIL 0.3 miles SUBJECT PROPERTY Whiteville Primary School Columbus Regional Columbus County Hospital Courthouse 0.7 miles Whiteville High School TO WILMINGTON 47.0 miles OFFERING MEMORANDUM CVS PHARMACY 5 PROPERTY SURVEY OFFERING MEMORANDUM CVS PHARMACY 6 DEMOGRAPHIC PROFILE 1 MILE RADIUS 3 MILE RADIUS 5 MILE RADIUS 7 MILE RADIUS 2015 Estimated Population 3,489 7,822 13,181 19,827 2020 Projected Population 3,503 7,906 13,315 20,021 2010 Census Population 3,535 7,871 13,268 19,978 2000 Census Population 3,392 7,331 12,127 19,112 Percent Pop. Change: 2010-2015 -1.3% -0.6% -0.7% -0.8% Percent Pop. Change: 2015-2020 0.4% 1.1% 1.0% 1.0% POPULATION 2015 Est. Median Age 42.0 41.9 41.3 41.2 2015 Est. Average Age 42.0 41.6 41.1 40.9 1 MILE RADIUS 3 MILE RADIUS 5 MILE RADIUS 7 MILE RADIUS 2015 Estimated Households 1,408 3,324 5,213 7,971 2020 Projected Households 1,430 3,392 5,315 8,119 2010 Census Households 1,409 3,309 5,191 7,944 2000 Census Households 1,382 3,094 4,869 7,535 Percent HH Change: 2010-2015 0.0% 0.5% 0.4% 0.3% HOUSEHOLDS Percent HH Change: 2015-2020 1.5% 2.0% 2.0% 1.9% 2015 Est. Average HH Size 2.2 2.3 2.3 2.4 1 MILE RADIUS 3 MILE RADIUS 5 MILE RADIUS 7 MILE RADIUS 2015 Est. Average HH Income $44,330 $44,512 $44,812 $45,951 2020 Proj. Average HH Income $44,938 $45,195 $45,488 $47,172 2000 Census Avg. HH Income $45,932 $45,304 $40,978 $38,934 2015 Est. Median HH Income $29,907 $30,606 $31,513 $32,591 INCOME 2015 Per Capita Income $17,895 $18,916 $17,723 $18,474 OFFERING MEMORANDUM CVS PHARMACY 7 *Representative image of CVS location OFFERING MEMORANDUM CVS PHARMACY NET LEASE INVESTMENT 900 North J.K. Powell Boulevard Whiteville, NC 28472 For more information, please contact: JOE GRAHAM, CCIM Senior Vice President 919.831.8196 [email protected] © 2015 CB Richard Ellis-Raleigh, LLC, a Delaware limited liability company. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. .