CVS - NNN Jennings Louisiana 1204 Elton Rd 13,348 SF Retail Building Jennings, LA 70546 $3,800,000 ($284.69/SF) 6.25% Cap Rate

For sale is a fee simple interest in the single-tenant CVS Pharmacy located in Jennings, LA (the “Property”). CVS Pharmacy is operating under an absolute NNN lease expiring January 31, 2041. The annual rent is $237,506 with ten (10), five (5) year renewal options. Jennings is 40 minutes from Lafayette and 90 minutes from Baton Rouge, LA.
Traffic counts at this intersection are over 34,500 cars per day, and it is on the dominant commercial corridor in Jennings.
The Property consists of over 1.5 acres, outparcel to a Dollar General anchored retail center. The 13,348 square-foot CVS Pharmacy was built in 2015. The property is synergistically located less than 1-mile from the Jennings American Legion Hospital.
The lease is absolute net; the landlord has zero responsibilities. CVS operates almost 10,000 locations in the US and employs approximately 260,000 employees, generating over $170 billion in total revenue. CVS Health has an investment grade credit rating by all major rating agencies including a BBB+ rating with a stable outlook from Standard & Poor’s Rating Services. The lease has no “rent holidays”.
INVESTMENT HIGHLIGHTS:
-Fair Market Value Options: Many CVS investments have minimal rent increases, and if market rent in an area outpaces the rent increases, the CVS owner’s cash flow doesn’t keep up. Assuming 2.0% annual inflation over the current rent, this CVS’s first fair market value option could be over $456,000 per year, a 92% increase in rental income to the Owner.
-Drive-Thru: This store features a convenient Drive-Thru pharmacy window, offering convenient pick up for customer prescriptions.
-Investment Grade Tenant: The lease is fully guaranteed by CVS Health Corporation, one of the world’s most valuable brands and ranked #4 on the Fortune 500 list. CVS Health has an investment grade credit rating by all major rating agencies including a BBB+ rating with stable outlook from Standard & Poor’s.
-Long-Term Operator: The Property has housed CVS since 2015, and with options their tenancy can extend to 2091.
-Major Retail Corridor: CVS is operating at one the busiest commercial intersections in Jennings, with traffic counts over 26,000 cars per day.