Platte City, Missouri (Kansas City MSA) Offering Memorandum Presented by the Patton | Wiles | Fuller Group of Marcus & Millichap Platte City, Missouri (Kansas City MSA) Exclusively Listed by the Patton / Wiles / Fuller Group of Marcus & Millichap: Dustin Javitch Craig Fuller First Vice President Investments Senior Managing Director Net Leased Properties Group National Retail Group Cleveland Office Cleveland Office P: (216) 264-2025 P: (216) 264-2043 [email protected] [email protected] License: OH SAL.2012000193 License: OH SAL.2008001551 Scott Wiles Erin Patton Senior Managing Director Senior Managing Director National Retail Group National Retail Group Cleveland Office Columbus Office P: (216) 264-2026 P: (614) 360-9035 [email protected] [email protected] License: OH SAL.2005013197 License: OH SAL.2004010274 Absolute Net Lease CVS with 14.25 Years Remaining Located in the Kansas City MSA 20-MI Demographics 1301 Platte Falls Road 512,683 Platte City, MO (Kansas City MSA) 64079 Total Population Investment Highlights Location Highlights $85,217 • Absolute Net Lease CVS with 14.25 Years • Affluent Kansas City Suburb | Average Average Household Income Remaining Located in the Kansas City MSA Household Income $108,200 Within a 5-Mile Radius • 2020 Remodel to the New HealthHUB Concept | ~$450,000 in Tenant Paid • Positioned Along Area’s Major Retail & Improvements Traffic Corridor | Easy Access & Excellent Visibility 1.5% • Rare Rental Increases in Renewal Options | 15% in Option 1 | 5% in Options 2 & 3 • Growing Population: Expected Growth Expected 5 Year Growth in the Next Five Years | 87,839 Residents Rate within 1-Mile • Tenant Recently Extended Their Lease Within 10-Miles Showing a Strong Commitment to the Location • Ideally Situated Next to the School Corridor Including Platte County High School, • 13,193 Square Foot All-Brick Construction Platte City Middle School, Siegrist & Paxton 199,745 Building with Double Drive-Thru and Ample Elementary Schools Parking Households • Located Across the Street from Price • CVS Pharmacy is Ranked #7 on the Fortune Chopper and Surrounded by Many other 500 | S&P Investment Grade Credit Rating of National Retailers “BBB” Executive Summary CVSBP Gas Pharmacy Station Offering Price Lease Summary $4,100,000 Legal Tenant Missouri CVS Pharmacy, LLC Amended Lease Date December 10, 2019 Amended Lease Rent CAP Rate 5.50% Lease Type Absolute NNN January 1, 2021 Commencement Date Current Annual Rent $225,600 Roof & Structure Tenant Responsible Lease Expiration Date December 31, 2034 Gross Leasable Area 13,813 Ownership Interest Fee Simple Remaining Lease Term 14.25 Years Price/SF $296.82 Eckerd Corporation / Renewal Options Three, 5-Year Missouri CVS Pharmacy, LLC Guarantor Entity (wholly owned subsidiaries 15% in Option 1; Year Built / Renovated 2002/2020 Rent Increases of CVS Caremark Corp) 5% in Options 2 & 3 Original Lease Right of First Refusal / Lot Size 1.57 AC August 29, 2002 None Commencement Date First Offer Rent Schedule Base Term Annual Rent Monthly Rent Annual Rent/SF Cap Rate 1/1/2021 - 12/31/2034 $225,600 $18,800 $16.33 5.50% Base Term Annual Rent Monthly Rent Annual Rent/SF Cap Rate 1301 Platte Falls Road Option 1 (5 Years) $260,651 $21,721 $18.87 6.36% Platte City, MO (Kansas City MSA) Option 2 (5 Years) $274,464 $22,872 $19.87 6.69% Option 3 (5 Years) $288,277 $24,023 $20.87 7.03% In November 2019, CVS notified the Landlord that they’d be investing between $400,000 to $500,000 to remodel the store to their new HealthHub concept which includes: » Wellness rooms for group events such as health » Greater selection of health-and-wellness screenings, nutritional and lifestyle coaching, and products, including aromatherapy, fitness benefits education essentials, durable medical equipment, sleep apnea products and more; » Expanded services at MinuteClinic, including: services for minor illnesses and injuries; » In-store education and counseling for patients immunizations, wellness and health checks; with chronic conditions, pharmacist-led screening, treatment and monitoring for chronic diabetes education counseling and smart conditions such as high blood pressure and high device coaching for select blood glucose cholesterol; annual diabetic exam and more monitors, smoking cessation plans Investment Overview Marcus & Millichap is pleased to present the CVS Pharmacy located at 1301 Platte Falls Rd in Platte City, Missouri. The property consists of approximately 13,193 square feet of building space and situated on a 1.57-acre parcel. CVS has been operating at this site since 2002 and recently extended their lease early for an additional 10 years providing a total remaining term The property has great access and visibility at the intersections of of over 14 years. The lease includes three, five-year Branch Street, Kentucky Avenue and Platte Falls Road. The property renewal options which include a fifteen percent rental increase in the first option and five percent increases in is ideally situated next to the Platte City school corridor which the remaining options. The lease is absolute NNN with includes Platte County High School, Platte City Middle School, the Tenant responsible for structure, roof, parking lot, Siegrist & Paxton Elementary Schools and Northland Career Center. HVAC, common area maintenance, real estate taxes, Platte City is an affluence suburb located approximately 20 miles insurance and utilities. Southeast of Kansas City. 8 Property Physical Details Parking +/- 66 Spaces Available Framing Steel Parking Ratio 4.78 : 1,000 SF Exterior Masonry Topography Level Parking Surface Asphalt Zoning Commercial Roof Modified Bitumin Number of Tax Parcels One HVAC Roof Mounted Parcel Number(s) 17-3.0-06-200-002-003-001 Fire Protection To Code Foundation Concrete Slab Utilities All Local Providers Parcel Number Parcel Map 17-3.0-06-200-002-003-001 12 CVS Stats Woonsocket, RI Headquarters Public Ownership Tenant Overview 290,000 Employees CVS Pharmacy, the retail division of CVS Health, is America’s leading retail pharmacy with over 7,800 CVS/pharmacy and Longs Drugs stores. CVS Pharmacy is reinventing pharmacy to help people on their path to better health by providing the most accessible and personalized expertise, both in its stores and online at CVS.com. 730+ Retail Locations More than 26,000 CVS pharmacists dispense prescriptions and provide services such as flu vaccinations as well as face-to-face patient counseling with respect to adherence to drug therapies, closing gaps in care, and more cost effective therapies. Our integrated pharmacy services model enables us to enhance access to care while helping to lower overall health $134.128 Billion care costs and improve health outcomes. Revenue CVS Pharmacy is proud to be the first national pharmacy to end the sale of tobacco and the first pharmacy in the nation to receive the Community Pharmacy accreditation from URAC, the leading health care accreditation organization that establishes quality standards for the health care 77.619B industry. Market Cap CVS/minute clinic, CVS/specialty and CVS/caremark, CVS Health is creating a unique integrated model that increases access to quality care, delivers better health outcomes and lowers overall health care costs. Regional Map Population 1-MI 10-MI 20-MI Households 1-MI 10-MI 20-MI 2020 Estimate 4,515 87,839 512,683 2020 Estimate 1,839 32,279 199,745 Total Population Total Households 2025 Projection 4,508 91,183 531,342 2025 Projection 1,881 33,726 208,779 Total Population Total Households 2010 Census 4,155 79,229 463,201 2010 Census 1,676 28,909 179,238 Total Population Total Households 2020 Owner Occupied 939 19,724 127,296 Total Households Households by Income 1-MI 10-MI 20-MI 2020 Renter Occupied 899 12,556 72,449 Total Households Population By Age 2020 Estimate Total Population 4,515 87,839 512,683 Under 20 Years 27.6% 26.5% 26.8% Households by Income 1-MI 10-MI 20-MI 20 - 24 Years 5.7% 6.1% 5.9% 25 - 34 Years 15.0% 14.9% 14.8% 2020 Estimate 35 - 44 Years 17.6% 15.4% 13.9% Under - $25,000 8.5% 14.6% 16.7% 45 - 54 Years 12.4% 12.9% 12.6% $25,000 - $34,999 4.1% 8.1% 8.8% 55 - 64 Years 10.2% 11.7% 12.4% $35,000 - $49,999 10.0% 11.4% 13.0% 65+ Years 11.5% 12.5% 13.7% $50,000 - $74,999 19.7% 16.9% 18.2% Demographics Median Age 35.9 36.6 36.7 $75,000 - $99,999 25.2% 16.3% 15.0% $100,000 - $124,999 17.5% 12.1% 11.3% Population 25+ by Education Level $125,000 - $149,999 6.7% 7.0% 6.0% 2020 Estimate Population Age 25+ 3,011 59,272 345,058 $150,000 or More 8.3% 13.5% 11.0% Elementary (0-8) 1.3% 1.4% 2.7% Some High School (9-11) 4.8% 5.3% 6.3% Average Household Income $87,095 $92,934 $85,217 High School Graduate (12) 26.6% 26.8% 27.5% Median Household Income $82,619 $73,488 $65,554 Associates Degree Only 8.9% 7.6% 8.1% Bachelors Degree Only 18.3% 20.6% 20.0% Graduate Degree 14.1% 13.9% 10.9% Some College, No Degree 25.8% 23.8% 23.3% Population by Gender 2020 Estimate Total Population 4,515 87,839 512,683 Female Population 2,244 41,343 256,337 Male Population 2,271 46,496 256,347 CONFIDENTIALITY AGREEMENT The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap.