CVS: Fredericksburg, VA

INVESTMENT OVERVIEW(1,2)

INVESTMENT GRADE TENANT
CVS Health Corporation (NYSE: CVS) has been rated BBB/Stable from Standard & Poors and Baa2/Stable from Moody’s. For FY2020, the company reported $268.7 Billion in Total Revenue and $69.7 Billion Net Worth. They are one of the largest pharmacy health providers in the United States, operating more than 9,900 retail drugstores in the United States, Puerto Rico, and Brazil.

ASSUMABLE NON-RECOURSE DEBT WITH ONLY A 16.7% EQUITY REQUIREMENT(2)
This offering allows an investor to acquire the property with just 16.7% cash down and by assuming the existing, non-recourse financing. The subject property is structured as a zero cash flow offering. The rent, including all scheduled increases for the remining 20-years, match the monthly debt service from the existing financing.

FULLY-AMORTIZING DEBT(2)
The debt fully amortizes thereby eliminating any balloon / refinancing risk.

90% RETURN-TO-EQUITY THROUGH AMORTIZATION IN THE FIRST 5-YEARS OF THE LEASE(2)
The offering allows an investor to recapture 90% of their down payment in the first five years, with the entire down payment recaptured in just over five years through amortization (as a percentage of their initial equity investment, before taxes).

23-YEARS REMAINING ON ORIGINAL 25-YEAR ABSOLUTE NNN LEASE
The Property is 100% leased to CVS Health Corporation on an Absolute NNN basis. There are currently more than 23 years remaining on the original 25-year lease term, which expires in January 2045. The lease provides for ten, five-year renewal options following the initial term.

$141,030 AVERAGE HOUSEHOLD INCOME WITHIN A ONE-MILE RADIUS
The location offers attractive demographics with a strong average household income within a one-mile radius of the property.

ATTRACTIVE RETAIL LOCATION IN HISTORIC FREDERICKSBURG
The property is located with frontage along Plank Road/SR 3 (31,515 VPD), one mile west of Interstate 95 in historic Fredericksburg. The city is situated midway between Washington, D.C. and Richmond, approximately 50 miles from each. Fredericksburg and the surrounding area is home to more than 4,400 acres of Civil War battlefields that draw roughly 1.5 million visitors annually.

LOCATIONS AVAILALBE INDIVIDUALLY OR AS PART OF A LARGER PORTFOLIO

(1) Guarantor, Lease Terms, Building Specifications, Total Amortization, and Percentage Amortization to Equity are estimates. Buyer is responsible for verifying during the Due Diligence process.
(2) Warning-This is a projection model only and in no way guarantees the performance of the subject property. Buyer will need to rely on their internal projections only in determining the suitability of this investment.

IRS Circular 230 Disclosure: Marcus & Millichap and its affiliates do not provide tax advice and nothing contained herein including, without limitation, the provision of the following preliminary cost segregation estimate, should be construed to be tax advice. Please be advised that any discussion of U.S. tax matters contained herein (including any attachments) (I) is not intended or written to be used, and cannot be used, by the recipient of any Information for the purpose of avoiding U.S. tax-related penalties; and (II) was written to support the promotion or marketing of the transaction or other matters addressed herein. Accordingly, any recipient of this marketing brochure should seek advice based on your particular circumstances from an independent tax advisor.

Listing agent: Phil Sambazis
Phone: 858-373-3174
Email: psambazis@mmreis.com

VA Broker of Record: Brian Hosey
Lic #: 0225247494