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Drug Store

CVS

581 Highland Ave, Cheshire, CT 06410

Listing Price: $5,619,360

Cap Rate
5.00%
Tenant Name
Royal Ahold
Years Remaining On Lease
3.9
Gross SF
17,690
Guarantor
Corporate Guarantee
Rentable SF
17,690
Price/Gross SF
$317.66
Lease Type
NNN Ground Lease
Rent Per Square Feet
$15.88

Investment Overview

Marcus & Millichap is pleased to present the exclusive offering for a Royal Ahold ground lease in Cheshire, CT. Royal Ahold has leased the 2.05 acre lot since 2000 and sub-leases the space to CVS Pharmacy and Cheshire Wine and Spirits. The sub-tenants have operated here without any rent concessions and have renewed their leases multiple times since opening for business nearly 20 years ago. This 17,690 SF property features a large parking lot with 80 spaces, multiple modes of ingress/egress on both Highland Avenue and Maple Avenue, as well as a drive through lane for CVS and their pharmacy.
The lease is structured that the minimum rent paid by Royal Ahold to the landlord is $240,000 per year, as well as a profit sharing of 50% of the total rent paid by the tenants above $240,000 each year. Currently, CVS and Cheshire Wine and Spirits pay a total rent of $321,936 for their spaces which results in an additional rental payment of $40,968 to the landlord. The ground lease owner is collecting a below market rent for this location which provides upside in the future upon securing both the land and the building at the expiration of the lease term. The rental stream paid to the ground owner will grow over time as the rent paid by each sub-tenant increases. Furthermore, the ground owner has the investment grade backing of Royal Ahold securing its rental payment, with another investment grade tenant in CVS as a sub-tenant. This is a very protected investment in an extremely affluent area of Connecticut with local household incomes exceeding $152,000 per year. Cheshire, CT is also an underserved retail market which has proven to be a benefit to both of these tenants as evidenced by the multiple lease extensions.

Investment Highlights

  • Located in Cheshires Main Retail Corridor
  • Strong Academic Presence - Four Schools Within a Two-Mile Radius
  • Immediate Access to Healthcare - Less Than Five Miles From Gaylord Hospital

Exclusively Listed By

Broker of Record

  • John Krueger

    Vice President / Regional Manager

    (203) 672-3300

    License(s) CT: REB.0752012

    Connecticut

Listing Price: $5,619,360

Cap Rate
5.00%
Tenant Name
Royal Ahold
Years Remaining On Lease
3.9
Gross SF
17,690
Guarantor
Corporate Guarantee
Rentable SF
17,690
Price/Gross SF
$317.66
Lease Type
NNN Ground Lease
Rent Per Square Feet
$15.88

Investment Highlights

  • Located in Cheshires Main Retail Corridor
  • Strong Academic Presence - Four Schools Within a Two-Mile Radius
  • Immediate Access to Healthcare - Less Than Five Miles From Gaylord Hospital

Investment Overview

Marcus & Millichap is pleased to present the exclusive offering for a Royal Ahold ground lease in Cheshire, CT. Royal Ahold has leased the 2.05 acre lot since 2000 and sub-leases the space to CVS Pharmacy and Cheshire Wine and Spirits. The sub-tenants have operated here without any rent concessions and have renewed their leases multiple times since opening for business nearly 20 years ago. This 17,690 SF property features a large parking lot with 80 spaces, multiple modes of ingress/egress on both Highland Avenue and Maple Avenue, as well as a drive through lane for CVS and their pharmacy.
The lease is structured that the minimum rent paid by Royal Ahold to the landlord is $240,000 per year, as well as a profit sharing of 50% of the total rent paid by the tenants above $240,000 each year. Currently, CVS and Cheshire Wine and Spirits pay a total rent of $321,936 for their spaces which results in an additional rental payment of $40,968 to the landlord. The ground lease owner is collecting a below market rent for this location which provides upside in the future upon securing both the land and the building at the expiration of the lease term. The rental stream paid to the ground owner will grow over time as the rent paid by each sub-tenant increases. Furthermore, the ground owner has the investment grade backing of Royal Ahold securing its rental payment, with another investment grade tenant in CVS as a sub-tenant. This is a very protected investment in an extremely affluent area of Connecticut with local household incomes exceeding $152,000 per year. Cheshire, CT is also an underserved retail market which has proven to be a benefit to both of these tenants as evidenced by the multiple lease extensions.

Exclusively Listed By

Broker of Record

  • John Krueger

    Vice President / Regional Manager

    (203) 672-3300

    License(s): CT: REB.0752012

    Connecticut

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