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Wawa | CVS Pharmacy | Two Pad Site Offering | Under-Market Ground Lease Rates

10901a Bustleton Ave, Philadelphia, PA 19116

Listing Price: $10,338,824

Cap Rate
4.57%
Tenant Name
Wawa | CVS Pharmacy
Years Remaining On Lease
20.0
Guarantor
Corporate Guarantee
Rentable SF
1
Lease Type
NNN Ground Lease
Rent Per Square Feet
$472,100.00

Investment Overview

This two-tenant offering provides investment-grade credit and diversification from two esteemed brands. Wawa Inc., agreed to recently recast its lease to a new 20-year NNN ground lease with four, five-year renewal options. CVS has more than 11 years remaining on its NNN ground lease with structured rental increases in the option periods. The first option features a 21 percent increase, while the remaining four, five-year options include 10 percent increases. The Tenants’ structured rental increases provide an excellent hedge against inflation. Both leases were executed in 2007, almost 15 years ago before land and construction prices rapidly escalated. As a result, this offers an investor the ability to purchase well-below the price point of comparable offerings on the market today.

Investment Highlights

  • Two Esteemed Investment-Grade Brands
  • Under-Market Ground Lease Rates
  • Prominent 3.01-Acre Signalized Corner Parcel (22,359 VPD)
  • Highly Dense Philadelphia Location; Wawa's Hometown

Broker of Record

  • Sean Beuche

    Vice President/Regional Manager

    (215) 531-7000

    License(s) PA: RM424190

    Pennsylvania

Auto Service - Gas-Conv

Wawa | CVS Pharmacy | Two Pad Site Offering | Under-Market Ground Lease Rates

Listing Price: $10,338,824

Cap Rate
4.57%
Tenant Name
Wawa | CVS Pharmacy
Years Remaining On Lease
20.0
Guarantor
Corporate Guarantee
Rentable SF
1
Lease Type
NNN Ground Lease
Rent Per Square Feet
$472,100.00

Investment Highlights

  • Two Esteemed Investment-Grade Brands
  • Under-Market Ground Lease Rates
  • Prominent 3.01-Acre Signalized Corner Parcel (22,359 VPD)
  • Highly Dense Philadelphia Location; Wawa's Hometown

Investment Overview

This two-tenant offering provides investment-grade credit and diversification from two esteemed brands. Wawa Inc., agreed to recently recast its lease to a new 20-year NNN ground lease with four, five-year renewal options. CVS has more than 11 years remaining on its NNN ground lease with structured rental increases in the option periods. The first option features a 21 percent increase, while the remaining four, five-year options include 10 percent increases. The Tenants’ structured rental increases provide an excellent hedge against inflation. Both leases were executed in 2007, almost 15 years ago before land and construction prices rapidly escalated. As a result, this offers an investor the ability to purchase well-below the price point of comparable offerings on the market today.

Broker of Record

  • Sean Beuche

    Vice President/Regional Manager

    (215) 531-7000

    License(s): PA: RM424190

    Pennsylvania

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