CVS Pharmacy Shreveport, LA

offering memorandum.
CVS Pharmacy
Shreveport, LA
ALL STAR
BOWLING LANES
/ Mans
field R
d (32,1
05 AAD
T)
Summers Grove Shopping Center
NAP
Parking & Access
Rights
oo
rial L
dust
ns In
u
o
K
rt
W Be
$4,287,000
5.40% CAP Rate
••25-Year NNN Lease with Corporate Guaranty
••
S&P Rated “BBB+”
••Rental Escalations in the Options
••
~24 Years Remaining
p (20
,389
T)
AAD
••Located at a High-Traffic Intersection
••
••
20,389 AADT on Bert Kouns Industrial Loop
32,105 AADT on Mansfield Rd
This property is listed in conjunction with Louisiana-licensed real estate broker Beau Box Commercial Real Estate. www.maffiateam.com
Confidentiality & Disclosure
Cornish & Carey Commercial Newmark Knight Frank (“Broker”) has been retained on an exclusive basis to market the property
described herein (“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute the enclosed information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title
and tenant lease information may be made available upon request following the mutual execution of a letter of intent or contract to
purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase
based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and
such other matters as the Seller deems appropriate.
The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of
the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person without the
express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that
a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and
has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners,
shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own
investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections
contained in the pro forma.
Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to
accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed
to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto.
Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information.
Michael Maffia
Senior Managing Director
415.445.5144
[email protected]
Lic #01340853
Putnam Daily
VP/Transaction Manager
415.445.5107
[email protected]
Lic #01750064
901 Mariners Island Boulevard, Suite 120 • San Mateo, CA 94404 • Tel 415.373.4060 • Fax 415.373.4060 • www.maffiateam.com
Table of Contents
•Property Information........................................................................................................................1
•Tenant Information.......................................................................................................................... 2
•About the Area................................................................................................................................ 3
•Site Plans....................................................................................................................................... 4
•Aerials............................................................................................................................................ 5
•Location Maps................................................................................................................................ 8
•Demographics............................................................................................................................... 11
Property Information
Location
The property is located at 9194 Mansfield Road in Shreveport, Louisiana.
Lot Size
Approximately 0.871 acres, or 37,941 square feet.
Improvements
Construction completed in 1997 of an approximately 10,908 square foot drugstore with prescription drive-thru for CVS
Pharmacy. There is ample parking on site, with 80 parking spaces.
Lease
Leased to Louisiana CVS Pharmacy, L.L.C., and guaranteed by CVS Caremark Corporation, for 25 years from October, 1,
2012, to September 30, 2037 by way of a recent amendment and extension, at an initial annual net rent of $231,500. There
are five 5-year options to renew the lease, with the rent increasing by 5% at the commencement of each option. The lease
is triple net, with the tenant responsible for taxes, insurance, and all maintenance, including roof and structure.
Rent Schedule
Years
1-25
26-30 (Option 1)
31-35 (Option 2)
36-40 (Option 3)
41-45 (Option 4)
46-50 (Option 5)
Price
$4,287,000 (5.40% Return)
Financing
The property will be delivered free and clear of permanent financing.
Annual Rent
$231,500
$243,075
$255,228
$267,990
$281,389
$295,459
Return
5.40%
5.67%
5.95%
6.25%
6.56%
6.89%
1
Tenant Information
CVS Caremark Corporation (NYSE: “CVS”), operates as a pharmacy services company in the United States.
The company’s Pharmacy Services segment provides a range of pharmacy benefit management services, including mail
order pharmacy services, specialty pharmacy services, plan design and administration, formulary management, and
claims processing; and drug benefits to eligible beneficiaries under the Federal Government’s Medicare Part D program.
This segment primarily serves employers, insurance companies, unions, government employee groups, managed care
organizations and other sponsors of health benefit plans, and individuals. As of December 31, 2010, it operated 44
retail specialty pharmacy stores, 18 specialty mail order pharmacies, and 4 mail service pharmacies located in 25 states,
Puerto Rico, and the District of Columbia. This segment operates business under the CVS Caremark Pharmacy Services,
Caremark, CVS Caremark, CarePlus CVS/pharmacy, CarePlus, RxAmerica, Accordant, and TheraCom names.
The company’s Retail Pharmacy segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, seasonal merchandise, greeting cards, and convenience foods through its pharmacy retail stores and online, as well
as offers film and photo finishing, and health care services. As of December 31, 2012, the company operated 7,458 retail
drugstores, 640 MinuteClinic locations, 31 retail specialty pharmacy stores, 12 specialty mail order pharmacies, and 5
mail order pharmacies. It has a strategic alliance with Alere, L.L.C. for the management of disease management program
offerings that cover chronic diseases, such as asthma, diabetes, congestive heart failure, and coronary artery disease.
For the third quarter ended September 30, 2013, CVS Caremark Corporation reported revenue of $93.979 billion with net
income of $2.746 billion and total stockholder equity of $38.534 billion. The company is rated “BBB+” by Standard &
Poor’s and is ranked #18 on the 2012 Fortune 500.
2
About the Area
Site Information
The property is located on the northwest corner of West Bert Kouns Industrial Loop and Mansfield Road, both of which
are major thoroughfares in Shreveport. The average annual daily traffic on Bert Kouns Industrial Loop near the property
is 20,389 vehicles and 32,105 vehicles directly in front of the property on Mansfield Road.
In the immediate vicinity is the Summers Grove Shopping Center, anchored by Stage Department Store and Dollar Tree.
Other retailers in the area include Payless Shoe Source, Burger King, Arby’s, Direct Buy, Popeye’s Chicken, Kroger, H&R
Block, Whataburger, Capital One, and Sonic. Just south of the property is a Brookshire’s Grocery Store, Subway, Blockbuster Express, Regions Bank, Walgreens, Waffle House, and Papa John’s Pizza. Three blocks north of the property is the
Southside Village Shopping Center anchored by Big Lots and Aaron’s and near this center is a Lowe’s Home Improvement.
Just a few blocks east of the property is the local Willis-Knighton South Hospital, a locally-owned and operated healthcare organization. The property is also located within a one mile radius of three local schools.
General Overview
Shreveport is the third largest city in Louisiana. It is the official government seat of Caddo Parish and extends along the
Red River into neighboring Bossier Parish. The population in Shreveport exceeds 200,000 people and the ShreveportBossier City MSA population exceeds 439,800 people (2010 Census). The Shreveport-Bossier City MSA ranks the 117th in
the United States, according to the United States Census. Shreveport is the economic center for business and tourism in
a 200-mile wide region along the borders of Arkansas, Louisiana, and Texas.
3
Site Plan
NAP
PARKING &
ACCESS RIGHTS
10,908 SF
PYLON
SIGN
/M
AN
S
FIE
L
DR
D
NAP
PARKING &
ACCESS RIGHTS
PYLON
SIGN
W BERT KOUNS INDUSTRIAL LOOP
4
Aerial | Close-Up View
Aerial | Midrange View
field R
d (32,1
05 A
ADT)
ALL STAR
BOWLING LANES
/ Mans
Summers Grove Shopping Center
NAP
Parking & Access
Rights
r
W Be
oo
rial L
t
s
u
d
ns In
t Kou
p (2
9 AA
0,38
DT)
Aerial | Distant View
p Expy
/ Inner Loo
Southside Village Shopping Center
Willis-Knighton
South Hospital
5
2,10
d (3
dR
fi el
ans
/M
ALL STAR
BOWLING LANES
Summers Grove Shopping Center
T)
AAD
W
s In
oun
K
rt
Be
P
ial
str
du
y (2
kw
T)
AD
9A
8
0,3
Southwest
Corporate
Center
7
Location Map
Site
Location Map
Site
Location Map
Site
Demographics
9194 Mansfield Rd
Shreveport, LA 71118
Market Profile
9194 Mansfield Rd, Shreveport, LA, 71118
Ring: 1 mile radius
Population Summary
2000 Total Population
2010 Total Population
2012 Total Population
2012 Group Quarters
2017 Total Population
2012-2017 Annual Rate
Household Summary
2000 Households
2000 Average Household Size
2010 Households
2010 Average Household Size
2012 Households
2012 Average Household Size
2017 Households
2017 Average Household Size
2012-2017 Annual Rate
2010 Families
2010 Average Family Size
2012 Families
2012 Average Family Size
2017 Families
2017 Average Family Size
2012-2017 Annual Rate
Housing Unit Summary
2000 Housing Units
Owner Occupied Housing Units
Renter Occupied Housing Units
Vacant Housing Units
2010 Housing Units
Owner Occupied Housing Units
Renter Occupied Housing Units
Vacant Housing Units
2012 Housing Units
Owner Occupied Housing Units
Renter Occupied Housing Units
Vacant Housing Units
2017 Housing Units
Owner Occupied Housing Units
Renter Occupied Housing Units
Vacant Housing Units
Median Household Income
2012
2017
Median Home Value
2012
2017
Per Capita Income
2012
2017
Median Age
2010
2012
2017
Latitude: 32.40246
Longitude: -93.80414
1 mile
3 miles
5 miles
9,370
9,462
9,374
319
9,274
-0.21%
38,339
38,809
38,948
649
39,376
0.22%
93,992
92,881
92,880
1,066
93,408
0.11%
3,961
2.33
3,819
2.39
3,761
2.41
3,758
2.38
-0.02%
2,480
2.95
2,411
2.95
2,395
2.94
-0.14%
14,733
2.57
15,136
2.52
15,131
2.53
15,480
2.50
0.46%
10,356
3.03
10,242
3.04
10,422
3.02
0.35%
35,366
2.63
36,135
2.54
36,001
2.55
36,652
2.52
0.36%
24,172
3.10
23,814
3.10
24,113
3.09
0.25%
4,150
52.4%
43.1%
4.6%
15,524
62.8%
32.1%
5.1%
38,564
57.4%
34.3%
8.3%
4,014
52.9%
42.3%
4.9%
4,007
50.5%
43.4%
6.1%
4,013
51.3%
42.4%
6.4%
16,003
59.2%
35.4%
5.4%
16,087
57.0%
37.0%
5.9%
16,366
57.7%
36.8%
5.4%
39,470
53.0%
38.5%
8.4%
39,480
51.0%
40.2%
8.8%
39,854
51.9%
40.1%
8.0%
$36,764
$41,063
$37,805
$43,274
$32,190
$37,241
$132,758
$140,101
$136,143
$145,201
$120,064
$132,604
$19,294
$21,206
$19,630
$21,618
$18,733
$21,019
34.6
34.7
35.4
34.6
34.7
35.3
34.5
34.6
35.3
Data Note: Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households.
Persons in families include the householder and persons related to the householder by birth, marriage, or adoption. Per Capita Income represents the income received by
all persons aged 15 years and over divided by the total population.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
11
Market Profile
Demographics
9194 Mansfield Rd
Shreveport, LA 71118
9194 Mansfield Rd, Shreveport, LA, 71118
Ring: 5 mile radius
Latitude: 32.40246
Longitude: -93.80414
1 mile
3 miles
5 miles
3,761
15.4%
15,131
14.8%
36,001
21.9%
16.2%
15.1%
20.0%
17.7%
10.3%
16.0%
14.9%
17.3%
18.1%
10.6%
17.1%
14.2%
14.6%
14.5%
8.1%
4.4%
0.5%
0.3%
$44,990
6.3%
1.3%
0.7%
$48,890
6.5%
1.6%
1.6%
$47,223
3,758
14.9%
12.6%
15,480
14.3%
12.5%
36,652
21.5%
13.4%
12.9%
19.3%
21.9%
12.2%
12.6%
16.8%
22.2%
12.4%
12.3%
14.3%
18.0%
9.7%
5.1%
0.7%
0.4%
$49,071
7.1%
1.5%
0.7%
$53,328
7.3%
1.8%
1.7%
$52,422
2,023
0.6%
20.3%
9,174
3.0%
21.8%
20,127
12.4%
28.7%
$100,000 - $149,999
$150,000 - $199,999
$200,000 - $249,999
44.5%
23.8%
7.9%
34.8%
22.9%
10.3%
22.2%
15.8%
8.5%
$250,000 - $299,999
$300,000 - $399,999
2.2%
0.7%
3.8%
2.5%
3.9%
4.2%
$400,000 - $499,999
$500,000 - $749,999
$750,000 - $999,999
0.0%
0.0%
0.0%
0.6%
0.2%
0.0%
2.0%
1.6%
0.4%
0.0%
$139,211
0.0%
$147,246
0.3%
$151,024
2,058
0.3%
9,450
2.1%
20,675
9.5%
16.1%
41.9%
29.5%
9.3%
2.1%
0.7%
0.0%
0.0%
0.0%
0.0%
$145,682
18.7%
32.3%
27.8%
12.2%
3.8%
2.4%
0.5%
0.2%
0.0%
0.0%
$153,393
26.7%
21.2%
19.6%
10.3%
4.0%
4.4%
1.9%
1.7%
0.5%
0.3%
$159,806
2012 Households by Income
Household Income Base
<$15,000
$15,000
$25,000
$35,000
$50,000
$75,000
-
$24,999
$34,999
$49,999
$74,999
$99,999
$100,000 - $149,999
$150,000 - $199,999
$200,000+
Average Household Income
2017 Households by Income
Household Income Base
<$15,000
$15,000 - $24,999
$25,000
$35,000
$50,000
$75,000
-
$34,999
$49,999
$74,999
$99,999
$100,000 - $149,999
$150,000 - $199,999
$200,000+
Average Household Income
2012 Owner Occupied Housing Units by Value
Total
<$50,000
$50,000 - $99,999
$1,000,000 +
Average Home Value
2017 Owner Occupied Housing Units by Value
Total
<$50,000
$50,000 - $99,999
$100,000 - $149,999
$150,000 - $199,999
$200,000 - $249,999
$250,000 - $299,999
$300,000 - $399,999
$400,000 - $499,999
$500,000 - $749,999
$750,000 - $999,999
$1,000,000 +
Average Home Value
12
Data Note: Income represents the preceding year, expressed in current dollars. Household income includes wage and salary earnings, interest dividends, net rents,
pensions, SSI and welfare payments, child support, and alimony.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
Market Profile
Demographics
9194 Mansfield Rd
Shreveport, LA 71118
9194 Mansfield Rd, Shreveport, LA, 71118
Ring: 5 mile radius
Latitude: 32.40246
Longitude: -93.80414
1 mile
3 miles
5 miles
9,462
7.6%
38,811
7.3%
92,882
7.6%
5-9
10 - 14
15 - 24
25 - 34
35 - 44
7.3%
7.0%
13.4%
15.3%
12.4%
7.4%
7.4%
14.0%
14.4%
12.5%
7.5%
7.3%
14.5%
13.8%
11.6%
45
55
65
75
85
11.0%
9.6%
7.7%
5.8%
2.9%
12.8%
10.5%
6.9%
4.8%
1.9%
13.4%
11.1%
6.8%
4.5%
1.9%
74.4%
73.5%
73.2%
9,374
7.6%
38,949
7.3%
92,881
7.6%
5-9
10 - 14
15 - 24
25 - 34
35 - 44
7.2%
6.8%
13.2%
15.5%
12.0%
7.4%
7.3%
13.8%
14.7%
12.1%
7.4%
7.2%
14.3%
14.0%
11.3%
45
55
65
75
85
10.7%
10.0%
8.1%
5.8%
2.9%
12.4%
11.0%
7.4%
4.8%
2.0%
13.0%
11.5%
7.2%
4.5%
2.0%
74.8%
73.9%
73.6%
2010 Population by Age
Total
0-4
- 54
- 64
- 74
- 84
+
18 +
2012 Population by Age
Total
0-4
- 54
- 64
- 74
- 84
+
18 +
2017 Population by Age
Total
9,274
39,376
93,408
0-4
5-9
10 - 14
7.6%
7.1%
6.8%
7.3%
7.3%
7.3%
7.6%
7.4%
7.2%
15 - 24
25 - 34
12.3%
15.5%
12.9%
14.8%
13.3%
14.1%
35 - 44
45 - 54
55 - 64
11.6%
9.9%
10.4%
11.8%
11.4%
11.4%
11.0%
12.0%
12.0%
65 - 74
75 - 84
85 +
18 +
9.6%
6.0%
3.0%
75.1%
8.7%
5.0%
2.0%
74.1%
8.6%
4.7%
2.1%
73.7%
4,225
5,237
17,726
21,083
42,732
50,149
4,196
5,178
17,817
21,131
42,805
50,074
4,157
5,117
18,026
21,350
43,081
50,326
2010 Population by Sex
Males
Females
2012 Population by Sex
Males
Females
2017 Population by Sex
Males
Females
13
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
Market Profile
Demographics
9194 Mansfield Rd
Shreveport, LA 71118
9194 Mansfield Rd, Shreveport, LA, 71118
Ring: 5 mile radius
2010 Population by Race/Ethnicity
Total
White Alone
Black Alone
American Indian Alone
Asian Alone
Pacific Islander Alone
Some Other Race Alone
Two or More Races
Hispanic Origin
Diversity Index
2012 Population by Race/Ethnicity
Total
White Alone
Black Alone
American Indian Alone
Asian Alone
Pacific Islander Alone
Some Other Race Alone
Two or More Races
Hispanic Origin
Diversity Index
2017 Population by Race/Ethnicity
Total
White Alone
Black Alone
American Indian Alone
Asian Alone
Pacific Islander Alone
Some Other Race Alone
Two or More Races
Hispanic Origin
Diversity Index
2010 Population by Relationship and Household Type
Total
In Households
In Family Households
Householder
Spouse
Child
Other relative
Nonrelative
In Nonfamily Households
In Group Quarters
Institutionalized Population
Noninstitutionalized Population
Latitude: 32.40246
Longitude: -93.80414
1 mile
3 miles
5 miles
9,462
54.5%
38,809
47.9%
92,882
35.7%
40.0%
0.6%
2.1%
0.0%
1.0%
47.9%
0.5%
1.2%
0.0%
1.0%
60.9%
0.4%
0.8%
0.0%
0.8%
1.7%
2.7%
56.7
1.5%
2.4%
56.3
1.4%
2.1%
52.2
9,373
53.6%
38,949
47.1%
92,880
35.4%
40.3%
0.6%
2.4%
0.0%
1.1%
48.3%
0.5%
1.4%
0.0%
1.1%
60.8%
0.4%
0.9%
0.0%
0.9%
1.9%
3.0%
57.6
1.6%
2.7%
56.9
1.5%
2.3%
52.7
9,275
51.6%
39,375
45.3%
93,408
34.5%
40.8%
0.8%
3.0%
0.0%
1.5%
49.0%
0.6%
1.7%
0.0%
1.4%
60.8%
0.5%
1.2%
0.0%
1.2%
2.3%
4.0%
59.9
1.9%
3.5%
58.5
1.8%
3.0%
54.0
9,462
96.6%
79.9%
26.3%
15.3%
38,809
98.3%
83.6%
26.8%
15.8%
92,881
98.9%
83.6%
26.0%
13.6%
32.1%
3.5%
2.7%
34.4%
4.0%
2.7%
36.2%
4.9%
2.9%
16.7%
3.4%
14.7%
1.7%
15.2%
1.1%
3.3%
0.1%
1.7%
0.0%
1.1%
0.0%
14
Data Note: Persons of Hispanic Origin may be of any race. The Diversity Index measures the probability that two people from the same area will be from different
race/ethnic groups.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
Market Profile
Demographics
9194 Mansfield Rd
Shreveport, LA 71118
9194 Mansfield Rd, Shreveport, LA, 71118
Ring: 5 mile radius
2010 Households by Type
Total
Households with 1 Person
Households with 2+ People
Family Households
Husband-wife Families
With Related Children
Other Family (No Spouse Present)
Other Family with Male Householder
With Related Children
Other Family with Female Householder
With Related Children
Nonfamily Households
All Households with Children
Multigenerational Households
Unmarried Partner Households
Male-female
Same-sex
2010 Households by Size
Total
1 Person Household
2 Person Household
3 Person Household
4 Person Household
5 Person Household
6 Person Household
7 + Person Household
2010 Households by Tenure and Mortgage Status
Total
Owner Occupied
Owned with a Mortgage/Loan
Owned Free and Clear
Renter Occupied
Latitude: 32.40246
Longitude: -93.80414
1 mile
3 miles
5 miles
3,819
30.1%
69.9%
64.9%
37.7%
16.9%
27.2%
5.1%
3.2%
22.1%
15,136
26.8%
73.2%
68.4%
40.3%
17.4%
28.1%
5.3%
3.4%
22.7%
36,135
28.2%
71.8%
66.9%
34.9%
14.8%
32.0%
6.1%
3.5%
25.9%
16.0%
4.9%
16.5%
4.8%
18.1%
4.9%
36.7%
37.8%
36.9%
4.1%
7.3%
6.4%
0.9%
5.2%
7.1%
6.4%
0.7%
6.6%
7.3%
6.6%
0.7%
3,819
30.1%
31.9%
19.2%
11.1%
5.1%
1.6%
1.0%
15,136
26.8%
32.4%
18.8%
12.7%
5.8%
2.2%
1.3%
36,135
28.2%
31.0%
17.9%
12.5%
6.1%
2.6%
1.8%
3,819
55.6%
39.0%
16.6%
44.4%
15,136
62.6%
45.4%
17.2%
37.4%
36,135
57.9%
37.5%
20.4%
42.1%
Data Note: Households with children include any households with people under age 18, related or not. Multigenerational households are families with 3 or more parentchild relationships. Unmarried partner households are usually classified as nonfamily households unless there is another member of the household related to the
householder. Multigenerational and unmarried partner households are reported only to the tract level. Esri estimated block group data, which is used to estimate
polygons or non-standard geography.
Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.
15