37340 5 Mile Rd
Livonia, MI 48154
CVS GL 15 Yr-Hard Corner 38K VPD-$100K AHHI · Retail Property For Sale

Marcus & Millichap, on behalf of ownership as its exclusive advisor, is pleased to present CVS Pharmacy Ground Lease in Livonia, Michigan. The subject property measures 13,810-squarefeet and is situated on 2.10 acres. CVS was built-to-suit in 2008 and occupies a freestanding prototypical masonry building with a double drive-thru. CVS is bound by the original 25-year absolute triple-net ground lease that expires in January 2033, providing the prospective purchaser with 14.5 years of base term remaining. As an absolute triple-net lease, the landlord has zero responsibilities in maintaining the building or grounds, with CVS self-maintaining the common areas and insurance policies, and paying real estate taxes direct to the county. The subject property is superior to many other CVS properties on the market, as the lease does not have a rent holiday, and each of the ten, five-year options feature a five percent rent increase. Additionally, the current in-place rent is exceptionally cheap for a newer construction pharmacy at only $15.39 per square foot, providing exceptionally low basis for the prospective purchaser for hard corner real estate with high intrinsic value. The lease carries a full corporate guaranty from CVS Caremark Corporation, which was re-named CVS Health corporation in September 2014, and is publicly traded with a current market capitalization of $68 billion. CVS was ranked #7 on the 2017 Fortune 500, and posted 2017 revenue of $185 billion and net income of $6.6 billion. Additionally, CVS is in the process of acquiring Aetna for $69 billion, which would net significant synergies in merging CVS’ 9,800 pharmacies with Aetna’s 22 million insurance customers. CVS Pharmacy is located at the signalized intersection of Five Mile Road and Newburgh Road, in the large Detroit suburb of Livonia. Combined traffic counts are strong, with 37,663 cars per day at the intersection, and 202,809 cars per day on Interstate 275, with exit ramps one mile to the northwest and southwest. Within the immediate vicinity of the subject property there are several medical, educational, and nursing facilities, the largest being the St. Mary Mercy Livonia Hospital, which is a Trinity Health-owned hospital. St. Mary Mercy is a full service 304-bed acute care hospital that provides comprehensive care including a 24-hour emergency department, general medicine, inpatient and outpatient surgery, physical medicine and rehab, intensive care, oncology, cardiology, geriatrics, women’s services and more. Trinity Health by far the largest health system in Michigan and the Metro Detroit area, and is one of the largest multi-institutional Catholic healthcare delivery systems in the nation with 93 hospitals in 22 states, and annual revenue of $17.6 billion. Other sizable facilities nearby include Angela Hospice Home Care, Marywood Nursing Care Center, Felician Sisters Convent, Felician Sisters Senior Clergy Village, Lakes Urgent Care Livonia, St. Edith Catholic Church & High School, Madonna University, Montessori Center of Our Lady, and St. Mary Child Care Center. Located in a dense infill area, surrounding demographics are excellent, with 11,421 residents within one mile, 64,718 residents within three miles, and 215,430 residents within five miles. Average household income is well above the national average, at nearly $100,000 within three miles, and above $96,000 and $92,000 within one and five-mile radii, respectively. Prominent national retailers in the immediate vicinity include Planet Fitness, Tim Hortons, Dollar Tree, Cottage Inn Pizza, Comerica Bank, Subway, and BP Gas to name a few. Livonia is one of the largest Detroit suburbs, with a city population of 96,942. Detroit anchors the second largest metropolitan area in the Midwest with a population of 4.3 million.