SOLD – Net Leased CVS (Kaplan, Louisiana)

Overview

• Fully Amortizing Assumable Loan: This offering includes a twenty-two (22) year self-amortizing loan which means the debt on the property is scheduled to be completely paid off from the CVS rental payments in year twenty-two (22) of the twenty-five (25) year initial lease term for CVS.
• Absolute Net Lease: This offering includes an absolute net lease structure with zero landlord responsibilities. All expenses, including repairs to the building, roof, and parking lot are borne by CVS.
• Low Equity Requirement: The ZCF structure enables an investor to utilize the tenant’s investment grade tenant with a high leverage, non-recourse fully amortizing loan. It also allows an investor to purchase a premier drugstore tenant using a significantly lower amount of equity than what is usually required.
• Long term “bond style” Investment: This structure fits well for 1031 exchange needs and estate planning goals – ideal asset to form a trust with.
• Benefits of Tax Deductions: The ZCF structure enables qualified investors to take deductions for depreciation and interest and offset other income using a relatively small amount of equity.
• Low Purchase Price: This offering includes a purchase price per square foot that is significantly lower than most of the recently sold CVS and Walgreens stores built during this timeframe.
• Superior Credit Tenant: CVS originated in 1963, the second largest U.S. Pharmacy presently has over 7300 drugstores in the United States and Puerto Rico. Currently, CVS has a BBB+ Investment grade rating from Standard & Poor’s with a market capitalization value of approximately $61BB.