108 Park Rd
Pleasant Grove, AL 35127
CVS: 14 Yrs Left | 5.75% CAP | Birmingham MSA · Retail Property For Sale

Marcus & Millichap, on behalf of ownership as its exclusive advisor, is pleased to market for sale CVS Pharmacy in Pleasant Grove, Alabama. The subject property measures 10,125-square feet and is situated on 1.32 acres. CVS was built-to-suit in 2000 and occupies a freestanding prototypical masonry building with drive-thru. CVS signed an original 20-year lease, and in 2012 amended the lease to extended base term through January 2033, effectively extending the base lease term by 14 years approximately 6 years in advance. The lease currently provides the prospective purchaser with 14 years of base term remaining, with five, 5-year options thereafter. The landlord is responsible for roof and structure, and also for common area maintenance - albeit with full reimbursement for non-capital items plus payment of a five percent administrative fee from tenant. CVS is responsible for the balance of the expense responsibilities at the site. The lease has a full corporate guaranty from publicly-traded CVS Health Corporation (NYSE: CVS), which carries Moody’s “Baa2” investment-grade credit. CVS was ranked #7 on the 2018 Fortune 500, and posted 2017 revenue of $185 billion and net income of $6.6 billion. Additionally, on November 28, 2018, CVS closed its $69 billion acquisition of health insurer Aetna, creating a new heath care giant with significant synergies to be realized in merging CVS’ 9,800 pharmacies with Aetna’s 22 million insurance customers. CVS Pharmacy is located along just north of the signalized intersection of Park Road and Pleasant Grove Road, with two curb cuts to each street that make the property extremely accessible for traffic in every direction. Traffic counts at the intersection are strong with 10,056 cars per day, and prominent tenants at the intersection include Dollar General, BB&T Bank, Jack’s, Merle Norman, Chevron, and Subway. The subject property is the only national pharmacy chain in the City of Pleasant Grove, with a population of 10,110. Pleasant Grove is a suburb of Birmingham situated just 10 miles (15-minute drive) west of Downtown. It was recently ranked as a “Top 3 Place to Raise a Family in Alabama in 2019” per a recent survey of crime, school quality, proximity to major cities, percentage of households with children, and family-friendly amenities. The Birmingham metropolitan area is the largest in Alabama and a top 50 metro in the U.S., with a population of 1.15 million.