Monday, January 31, 2011

Marcus & Millichap Arranges Sale of 13 CVS Drugstores in 11 States to Cole Real Estate Investments


 PHILADELPHIA ,PA Jan. 31, 2011 - Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, announced that it has arranged the sale of a portfolio of 13 single-tenant net-leased CVS drugstores nationwide to Cole Real Estate Investments (Cole) of Phoenix, one of the nation’s most active buyers of high-quality, income-producing commercial real estate assets, for approximately $70.1 million.

 The properties are located in 11 states including California, Florida, Georgia, Kansas, Minnesota, Mississippi, New Jersey, New York, Oklahoma, South Carolina and Texas.

(Top left photo of  CVS Pharmacy at 14240 Tamiami Trail North, Naples, Fla.).


All of the properties in the 174,000-square-foot portfolio are new stores, opened in 2009 and 2010, and are subject to 24-year triple-net leases.

Dean Zang, (top right photo)  vice president investments; Mark Taylor, (middle left photo) vice president investments; and Chris Munley, senior associate, are the Marcus & Millichap brokers, based in the firm’s Philadelphia office, who represented the seller in the transaction. Chad Adams, director of acquisitions, represented Cole.
“We are pleased to acquire a prime portfolio of CVS properties, which exactly fits the parameters of our conservative acquisition strategy, focused on income-producing ‘necessity retail’ properties, long-term leased to creditworthy tenants,  and providing a stable flow of income for our investors,” said Kim Kundrak (lower right photo), senior vice president and chief acquisitions officer for sing-tenant retail at Cole.

Zang explained, “This portfolio sale demonstrates that investors are increasing their transactions nationwide. As cap rates continue to compress for Class A assets, we will see acquisition volume increase in the B and C sector moving into 2011.”

“Single-tenant properties net-leased to national credit tenants such as CVS are in high demand among investors,” added Taylor.

 “This trend is expected to continue in 2011 as well-capitalized private investors and REITs with strong balance sheets continue to acquire assets. These particular CVS assets each have 24 years of lease term remaining, further strengthening their intrinsic, long-term value.”

Additional Marcus & Millichap investment professionals providing representation on these transactions were: J.D. Parker, broker of record (BOR) for New York State; Tim Speck, BOR for Texas; Solomon Poretsky, BOR for Minnesota; Adam Christofferson, BOR for Kansas; Bill Buford, BOR for South Carolina; John Leonard, BOR for Georgia; Greg Matus, BOR for Florida; and David Bohanon, BOR for Oklahoma.

Contact: Stacey Corso, Public Relations Manager, (925) 953-1716

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