CVS PHARMACY
153 CENTRAL AVE, ALBANY, NY 12206
CVS PHARMACY
marketing package TABLE OF CONTENTS 03 Investment Summary 04 Retail Aerial 05 Lease Summary 06 Income & Expense 07 Retail Aerial 08 Rent Schedule 09 Property Photo 10
Retail Aerial
12
Site Plan
13
About the Brand
14
Location Overview
CONTACT INFORMATION
joel cukier
Senior Associate (424) 325-2618
02
153 CENTRAL AVE, ALBANY, NY 12206
CVS PHARMACY
INVESTMENT SUMMARY Tenant Street Address City State Zip GLA Lot Size Year Built
CVS Pharmacy 153 Central Ave Albany NY 12206 18,200 SF*
$
$3,425,000
LIST PRICE
% 6.50% CAP RATE $
$222,625 NET OPERATING INCOME
0.24 AC
Price / SF
$188.19
1940
Rent / SF
$23.43
* CVS: 9,500 SF, Storage: 1,400 SF, Basement: 7,300 SF
40+ Year Tenant Operating History - CVS has been in continuous operation at this site since the 1980’s and has served as the predominant neighborhood drug store. CVS has consistently executed their renewal options and most recently extended their lease out to 10 years, showing their long-term commitment to the site and providing an investor with an option to purchase a well-established, seasoned CVS property. Minimal Landlord Responsibilities - The subject property is currently operating under a Double-Net (NN) lease with the landlord responsible solely for the roof / structure and minimal common area maintenance on the property, thus making this a primarily passive ownership investment. Exceptional Reported Store Sales - CVS has consistently reported very strong store sales at this location, well above the national average, with sales exceeding $9,200,000 annually. Investment Grade Credit with Leading National Pharmacy - The lease is guaranteed by CVS Pharmacy, Inc., an Investment Grade Tenant with a Standard & Poor’s Credit Rating of BBB. CVS is 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
153 CENTRAL AVE, ALBANY, NY 12206
CVS PHARMACY
RETAIL AERIAL
04
153 CENTRAL AVE, ALBANY, NY 12206
CVS PHARMACY
LEASE SUMMARY Lease Type Type of Ownership Original Lease Term
Double-Net (NN) Fee Simple
Real Estate Taxes
Tenant Responsible
Insurance
Tenant Responsible
10 Years
Roof & Structure
Landlord Responsible
Commencement Date
12/05/2019
Lease Guarantor
Corporate
Lease Expiration
12/31/2029
Company Name
CVS
Term Remaining
9+ Years
Increases Options
10% in Each Option Four (4), 5-year
Ownership Years in Business Number of Locations
Public 56 9,800+
Value-Add Opportunity with a Pro Forma 7.77% Cap - The subject property features an additional 8,700+ SF of recently vacant basement and storage area space that can be rented at a conservative rental rate of $5.00 PSF to increase the operating income by an additional $43,500 to further increase the investors return. Heavily Trafficked Urban Street Retail CVS - CVS is centrally located in a dense downtown location at a signalized crosswalk on Central Ave. The subject property benefits from the 17,000+ daily vehicles that pass the site and the large amount of foot-traffic by the surrounding residential neighborhood within walking distance from the property. Excellent Retail Demographics - The property benefits from the dense demographics of over 110,500 people residing within a three-mile radius to the property with an average household income of over $65,000. Proximity to a 734-Bed Hospital - The site is located less than a mile from Albany Hospital, a 734-bed hospital with the region’s largest physicians practice of more than 450 doctors.
05
153 CENTRAL AVE, ALBANY, NY 12206
FINANCIAL ANALYSIS
INCOME AND EXPENSE INCOME
CURRENT
PRO FORMA
CVS
$229,599
$229,599
Storage ($5.00 / SF)
-
$7,000
Basement ($5.00 / SF)
-
$36,500
Expense Reinbursements
-
-
Gross Potential Income
$229,599
$273,099
Effective Gross Income
$229,599
$273,099
EXPENSES
CURRENT
PRO FORMA
Property Taxes
$744
$744
Insurance
$825
$825
CAM
$3,750
$3,750
Utilities
$1,655
$1,655
Total Expenses
$6,974
$6,974
$222,625
$266,125
6.50%
7.77%
Net Operating Income Cap Rate
06
CVS PHARMACY
RETAIL AERIAL
07
153 CENTRAL AVE, ALBANY, NY 12206
CVS PHARMACY
RENT SCHEDULE Period
Term
Annual Rent
Monthly Rent
Expenses
Increases
CAP Rate
Current - 12/31/2029
Base Term
$229,599.96
$19,133.33
$6,974
-
6.50%
10%
7.17%
01/01/2030 - 12/31/2034
1st Option
$252,559.92
$21,046.66
$6,974+/-
01/01/2035 - 12/31/2039
2nd Option
$277,815.96
$23,151.33
$6,974+/-
10%
7.91%
10%
8.72%
10%
9.61%
01/01/2040 - 12/31/2044
3rd Option
$305,597.52
$25,466.46
$6,974+/-
01/01/2045 - 12/31/2049
4th Option
$336,157.32
$28,013.11
$6,974+/-
08
153 CENTRAL AVE, ALBANY, NY 12206
CVS PHARMACY
Property Photo
09
153 CENTRAL AVE, ALBANY, NY 12206
CVS PHARMACY
RETAIL AERIAL
10
153 CENTRAL AVE, ALBANY, NY 12206
CVS PHARMACY
RETAIL AERIAL
11
153 CENTRAL AVE, ALBANY, NY 12206
CVS PHARMACY
SITE PLAN
12
153 CENTRAL AVE, ALBANY, NY 12206
CVS PHARMACY
ABOUT THE BRAND CVS Pharmacy 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 & healthier-for-you food choices. CVS Pharmacy is subsidiary of the American retail & health care company CVS Health. CVS Health is a pharmacy company helping people on their path to better health.
9,800+
BBB
$256.8 Billion
290,000
NUMBER OF LOCATIONS
$
S&P CREDIT RATING
ANNUAL REVENUE
EMPLOYEES
CVS Health to Hire 50,000 in Response to Coronavirus Demand CVS is on a hiring spree to help meet increasing customer demand in wake of the 2020 pandemic. The pharmacy chain is planning to add more employees nationwide as part of what officials call the “most ambitious” hiring it will make yet. This is the largest hiring spree that the company has undergone in its history as it looks to keep up with customer demand for prescription delivery and in-store sales. Prescription delivery is up nearly 300 percent since CVS waived fees earlier this month as the company hopes to make an impact within the community amidst the pandemic. CVS Health Reports Full-Year 2019 Results • • • •
13
Total revenues increased 32.0% to $256.8 billion GAAP operating income increased to $12.0 billion Adjusted operating income increased 36.2% to $15.3 billion GAAP diluted earnings per share from continuing operations of $5.08
153 CENTRAL AVE, ALBANY, NY 12206
CVS PHARMACY
LOCATION OVERVIEW Albany, NY Albany is the capital of the U.S. state of New York and the seat and largest city of Albany County. Albany is located on the west bank of the Hudson River approximately 10 miles (16 km) south of its confluence with the Mohawk River and approximately 135 miles (220 km) north of New York City. Albany is known for its rich history, commerce, culture, architecture, and institutions of higher education. Albany constitutes the economic and cultural core of the Capital District of New York State, which comprises the Albany–Schenectady–Troy, NY Metropolitan Statistical Area, including the nearby cities and suburbs of Troy, Schenectady, and Saratoga Springs. As of the 2019 estimate, the population of Albany was 96,460. Discover downtown Albany’s booming craft beverage industry, must-see attractions and vibrant culture. Revel in the region’s rich history with world-class museums, historic homes and fascinating architecture. Explore beyond the city limits for scenic views and thrilling outdoor adventures in the Helderberg Hilltowns. Albany County is a destination that is beyond conventional.
Major Tourist Destination CVS is located less than a mile from the state capital and the heart of Downtown Albany, a major tourist attraction with several popular cultural destinations including the Empire State Plaza and underground shopping concourse, The New York State Museum and The Albany Institute of History and Art. Walking Distance to Washington Park Washington Park, the city’s premier park, is located less than a half mile from this CVS. The 81-acre park offers a playground, tennis courts, basketball courts and is the site of many festivals and gatherings. Neighboring Universities and Schools The subject property is located within walking distance of the University at Albany Downtown Campus and four elementary schools.
14
153 CENTRAL AVE, ALBANY, NY 12206
CVS PHARMACY
LOCATION OVERvIEW 1.
New York State Capitol Building State St. and, Washington Ave, Albany, NY 12224 0.8 MILES FROM SUBJECT PROPERTY
2. New York State Museum 222 Madison Ave, Albany, NY 12230 1.1 MILES FROM SUBJECT PROPERTY
3. USS SLATER 1 Quay St, Albany, NY 12202 1.9 MILES FROM SUBJECT PROPERTY
4. Washington Park 35 Willett St, Albany, NY 12210 0.5 MILES FROM SUBJECT PROPERTY
5. Albany Institute of History & Art 125 Washington Ave, Albany, NY 12210 0.9 MILES FROM SUBJECT PROPERTY
6. The Egg Agency Building 1, S Mall Arterial, Albany, NY 12203 1.6 MILES FROM SUBJECT PROPERTY
15
153 CENTRAL AVE, ALBANY, NY 12206
CVS PHARMACY
LOCATION OVERvIEW
01 NEW YORK STATE CAPITOL BUILDING
The capitol building is part of the Empire State Plaza complex on State St.
02 NEW YORK STATE MUSEUM
This museum houses arts & artifacts in prehistoric & historic timelines.
04 WASHINGTON PARK
The 81-acre park was created during the 1870s-80s by Calvert Vaux.
16
03 USS SLATER
a Cannon-class destroyer escort that served in the United States Navy.
05 ALBANY INSTITUTE OF HISTORY & ART
Founded in 1791, it is among the oldest museums in the United States.
06 THE EGG
Home to the Sinopoli Dance Company, a dance performing arts group.
153 CENTRAL AVE, ALBANY, NY 12206
CVS PHARMACY
DEMOGRAPHICS POPULATION
1-Mile
3-Mile
5-Mile
2025 Projection
32,945
108,139
185,184
2020 Estimate
33,235
108,874
185,562
2010 Census
34,304
111,369
185,235
1-Mile
3-Mile
5-Mile
2025 Projection
14,581
47,633
76,944
2020 Estimate
14,721
47,973
77,123
15,259
49,181
77,230
Average Income
$54,491
$69,345
$80,642
Median Income
$34,564
$49,322
$59,498
HOUSEHOLDS
2010 Census
Albany, NY The Capital City is lively and energetic, balancing its historic and legislative roots with a vibrant metropolitan atmosphere. You will always find something to do here whether you prefer outdoor recreation, cultural activities, shopping, or academic pursuits. The city of Albany and the Capital Region offer countless opportunities for personal and professional growth. Their uniqueness stems from the ability to offer residents and visitors world class cultural venues in a metropolitan setting side by side with outdoor recreational activities in beautiful and scenic surroundings.
17
153 CENTRAL AVE, ALBANY, NY 12206
CVS PHARMACY
DISCLAIMER
The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. & R. Scott Burdett (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto. The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants. A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.
CONFIDENTIALITY This Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.
RELEASE This Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.
NON-ENDORSEMENT Broker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.
18
www.jamescapitaladvisors.com
@jamescapitaladvisors
CVS PHARMACY
CONTACT INFORMATION CONTACT
joel cukier
Senior Associate (424) 325-2618 joel@jamescapitaladvisors.com CA RE Lic. 02005095 BROKER OF RECORD
R. Scott Burdett
Flaum Management Company, Inc (585) 546-4866 sburdett@flaummgt.com NY RE Lic #: 10301213057 CORP. Lic #: 109926090
James Capital Advisors, Inc.
www.jamescapitaladvisors.com
@jamescapitaladvisors