Chewy Inc. | National RX Script Validation & 3621 Fern Valley Rd 25,274 SF Flex Building Louisville, KY 40219 $6,449,715 ($255.19/SF) 8% Cap Rate

Marcus & Millichap is pleased to present a mission-critical pharmacy script validation, call center, and training facility leased to Chewy, Inc. (NYSE: CHWY) under a corporate-guaranteed lease with approximately 3.25 years remaining on the initial term and two five-year renewal options. The lease features 2.5% annual rent escalations and a modified gross structure with utility pass-throughs and expense reimbursements above the 2019 base year.
Located at 3621 Fern Valley Rd, Louisville, KY, this facility serves as Chewy’s national intake and clinical validation hub. It processes almost all physical hard-copy prescriptions mailed by pet owners (excluding gabapentin), performing required clinical outreach and VCPR verification as the regulatory gatekeeper before orders proceed to fulfillment. This critical first step supports Chewy’s highest-margin compounded pharmaceuticals segment, a key driver of its projected $12.3 billion FY2025 revenue.
Wall Street Analyst Outlook: Analysts remain overwhelmingly bullish on Chewy, frequently citing high-margin pharmaceuticals and healthcare services as the core driver of expected outperformance. Morgan Stanley named Chewy a “Top Pick” (Summer 2025), highlighting healthcare expansion as a “structural accelerant” with a bull-case target implying up to 70% upside. J.P. Morgan maintained an “Overweight” rating, noting the strategic shift toward higher-margin healthcare revenue. Bank of America reiterated its “Buy” rating, emphasizing the $40 billion pet healthcare market as a major long-term catalyst.
Located near Interstate 65 (200,000 vehicles daily) and a signalized intersection (52,000 vehicles daily) in a densely populated trade area, the property benefits from strong regional access and logistics fundamentals.