CVS Parmacy

5400 E Carefree Hwy, Carefree, AZ

NNN CVS Pharmacy in Phoenix msa

Chris Peters | cpeters@capitalpacific.com (415) 274-2703 CA DRE#: 01339983

Zeb Ripple | zripple@capitalpacific.com (415) 274-2702CA DRE#: 01242540

Chris Kostanecki | ck@capitalpacific.com (415) 274-2701 CA DRE#: 01002010

In Association with: Jessie Zahn, AZ Licensed Broker(480) 214.5088 Ext. 101 Email: jzahn@ciadvisor.com

NNN CVS - WELL LOCATED AT THE HARD CORNER OF A HEAVILY TRAFFICKED INTERSECTION IN PHOENIX MSA

INVESTMENT HIGHLIGHTS:

> Assumable, Non-Recourse Loan (must be assumed) with rapid principal pay-down through 2023 > 9+ Years remaining on initial term of lease, and four 5-year options

LOCATION HIGHLIGHTS: > CVS is located at the hard corner of the Carefree Highway and North Cave Creek Road, an intersection that sees more than 43,000 cars a day

> The subject property is a pad to Lowe’s Home Improvement Center. Other nation retailers in the area include Walmart, The Home Depot, Harris Bank, and Starbucks

> The subject property benefits from strong demographics with 41,000 people living within a 5-mile radius with average household incomes in excess of $120,000

PROPERTY HIGHLIGHTS: > Appealing architectural design as mandated by strict Carefree guidelines

> High barriers of entry in this market

> Long term absolute net lease with 9 years remaining and rent increases in each of the four 5-year options

> Tenant pays all expenses including real estate taxes, most insurance and all maintenance

Investment HighlightsPRICE . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,157,529CAP RATE . . . . . . . . . . . . . . . . . . . . . . . . 7 .00%CASH ON CASH RETURN . . . . . . . . . . . . . . . . 4.38%

RENTABLE SF . . . . . . . . . . . . . . . . . . . . . . . . . . 13,813 SF

LAND AREA . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.79 Acres

YEAR BUILT . . . . . . . . . . . . . . . . . . . . . . . . . . . 2003

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E Carefree Highway

E Lone Mountain Road

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E Westland Road

Black Mountain Elementary

Desert Willow Elementary

Foothills Academy

Cactus Shadows High School

Quality Interactive Montessori School

Foothills Academy Elementary Prep School

Bella Vista College Prepartory

THE SHOPS AT DOVE VALLEY

•Ray’sPizza•CorporateYoga Wellness•Churchillsof Cave Creek•Heart&Soul• Leslie’sPoolmart•Pinky’sNails•AbadiDental Care•Consignofthe Times•Paws&Claws

TERRAVITA SHOPPING CENTER

EL PEDREGAL AT THE BOULDERS

THE SUMMIT AT SCOTTSDALE

FREEDOM FITNESS PLAZA

•ArizonaSkiesAnimal Hospital•SalonT•PhysicalTherapy

PHOENIX

23,200 DAILY

20,7

62 D

AILY

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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Income & Expense

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Price: $6,157,529 Outstanding Principal Balance (as of 7/01/14) $4,285,326 Capitalization Rate: 7.00% Interest Rate 5.52%Less: Amortization 221/2 Total Est. Potential Cash Flow Sweep: $94,757 Term 10Loan Assumption App Fee: $25,000 Due Date 7/1/2023Effective Price: $6,037,772 Lender RAIT FundingEffective Capitalization Rate: 7.14% Net Operating Income $431,027 Price Per Square Foot: $445.78 Debt Service ($345,843)Down Payment 30.4% $1,872,203 Insurance Reserve ($3,226)Loan Amount 69.6% $4,285,326 Pre-Tax Cash Flow $81,958 Total Rentable Area (SF): 13,813 Debt Coverage Ratio 1.25 Lot Size (AC): 2.79 INCOME Per Square Foot Pre-Tax Leveraged Cash-on-cash Return 4.38%Scheduled Rent $431,027 Principal Paydown (Year 1 of Ownership) $110,062 Effective Gross Income $431,027 Total Return $192,020

EXPENSE Yield 10.26%

Taxes NNN $0 Insurance NNN $0 Cash Flow Sweep Analysis:Total Operating Expenses NNN $0 Lease Expiration: 7/24/2023NET OPERATING INCOME $431,027 Outside Notice Date: 10/23/2022

Cash Flow Sweep Start: 7/1/2020Days Between: 844Per Diem Cash Flow: $224.54

Total Est. Potential Cash Flow Sweep: $189,515 Loan Assumption App Fee: $25,000

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TENANT INFO LEASE TERMS RENT SUMMARY

Tenant Name Sq. Ft. Term Current Rent

Monthly Rent

Yearly Rent

Monthly Rent/FT

Yearly Rent/FT

CVS 13,813 7/25/2003 7/24/2023 $431,027 $35,919 $431,027 $2.60 $31.20

Option 1 7/25/2023 7/24/2028 $36,495 $437,934 $2.64 $31.70

Option 2 7/25/2028 7/24/2033 $37,070 $444,840 $2.68 $32.20

Option 3 7/25/2033 7/24/2038 $37,646 $451,747 $2.73 $32.70

Option 4 7/25/2038 7/24/2043 $38,221 $458,653 $2.77 $33.20

Totals: 13,813 $431,027 $35,919 $431,027 $2.60 $31.20

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Rent Roll

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ABOUT CVSCVS Caremark Corporation, together with its subsidiaries, provides integrated pharmacy health care services in the United States. The company’s Pharmacy Services segment offers pharmacy benefit management services, including plan design and administration, formulary management, discounted drug purchase arrangements, Medicare Part D services, mail order and specialty pharmacy services, retail pharmacy network management services, prescription management systems, clinical services, and disease management services. It primarily serves employers, insurance companies, unions, government employee groups, managed care organizations and other sponsors of health benefit plans, and individuals. This segment operates its business under the CVS Caremark Pharmacy Services, Caremark, CVS Caremark, CarePlus CVS/pharmacy, RxAmerica, and Accordant names. Its Retail Pharmacy segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, seasonal merchandise, greeting cards, and convenience foods, as well as provides photo finishing services. This segment sells its products through retail drugstores; online retail pharmacy Website CVS.com; onsite pharmacy stores; and retail health care clinics. The company also offers infusion services.

As of December 31, 2012, CVS Caremark operated 7,458 retail drugstores, 640 MinuteClinic locations, 31 retail specialty pharmacy stores, 12 specialty mail order pharmacies, and 5 mail order pharmacies. The company was founded in 1892 and is based in Woonsocket, Rhode Island.

CVS ranked #13 in the Fortune 500 in 2013.

2012 REVENUE $123 .13 Billion

NUMBER OF LOCATIONS 7,400+

NUMBER OF EMPLOYEES 203,000

CVS Pharmacy

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Photos

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Surrounding Retail

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CVS

Regional Map

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The town of Carefree, settled in the foothills of the Sonoran Desert amid lush terrain and ancient boulders, offers refuge from the larger cities of Phoenix and Scottsdale to the south. The majestic beauty of Black Mountain dominates the horizon with spectacular homes perfectly camouflaged amongst the massive boulders and rock formations. Carefree has evolved over the years into an eclectic mix of boutiques, restaurants and galleries. At the town center is the historic Carefree Sundial, the town’s landmark inspiring the quote “Carefree, where the sun marks time.” Strolling the retail district, one can easily walk to all the charming independent merchants and local services. Spanish Village features a beautiful courtyard with shopping and dining al fresco. The Carefree Galleria building plays host to artists, home décor stores and one of a kind boutiques.

Demographics Top Employers in Maricopa County

Carefree, AZ

Population 1 Mile 3 Miles 5 Miles

2010 Population 2,070 19,288 39,8992013 Population 2,146 19,981 41,1112018 Population (Projection) 2,313 21,422 43,883

2013 Income

2013 Average Household Income $113,672 $118,891 $121,8042013 Median Household Income $97,912 $100,445 $101,789

Employer # of Employees (Approx)

State of Arizona 49,800

Wal-Mart Stores Inc 30,634

Banner Health 24,825

City of Phoenix 15,100

Wells Fargo 13,308

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Copyright © 2013 [Capital Pacific Real Estate Brokerage Company]

Chris Peters | cpeters@capitalpacific.com (415) 274-2703 CA DRE#: 01339983

Zeb Ripple | zripple@capitalpacific.com (415) 274-2702CA DRE#: 01242540

Chris Kostanecki | ck@capitalpacific.com (415) 274-2701 CA DRE#: 01002010

Copyright © 2014 [Capital Pacific Real Estate Brokerage Company]

In Association with: Jessie Zahn, AZ Licensed Broker(480) 214.5088 Ext. 101 Email: jzahn@ciadvisor.com

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