Three CVS Pharmacy buildings in Central Florida were sold in the past few weeks in the $4-million to $5-million-plus range, all to South Florida-based LLC investors.
Those high price tags bought the purchasers more than the building and land. CVS prefers to lease its stores, offering long-term leases with guaranteed revenue, along with rent escalation clauses that make them good investments.
"CVS is a solid credit-worthy tenant," said Alejandro E. Jordan, a South Florida real estate attorney who handled the acquisition of a CVS in the Four Corners area of Lake County, at 1640 U.S. Highway 27, for $5.8 million based on documents recorded Oct. 12. RP and HA LLC in Miami sold the property to Clermont Concepts LLC. The last time that CVS was sold it fetched $4 million in 2013, according to property records.
"My client is an investor, and having a passive investment in which you have a stable, steady income that you can count on, with rent increases built into the leases, that makes it really attractive," Jordan said.
Another investment plus is that the buildings are single-tenant, so you don't have to worry about managing a lot of tenants' comings and goings, and CVS takes care of the buildings' maintenance, he said.
"Single tenant, no management responsibilities for the owner of the land, that is very attractive for someone who is not actually in Florida," he said. "Usually the rule is that you need to be in driving distance of your investment."
The fact that the CVS stores are in Florida is also a plus, said Jordan.
Florida commercial real estate is extremely attractive, not only to foreign investors, but also to domestic investors who are out of state, because of Florida's favorable tax rates compared to other states including New York, which is where Jordan's CVS investors are from, he said.
A second CVS also recently sold in Lake County in Clermont at 4405 S. Highway 27.
It was sold by Consolidated-Tomoka Land to New Mid Town Studios LLC in Miami for $4.2 million. Gino A. Tozzi, the registered agent for New Mid Town Studios, did not return calls, nor did Consolidated-Tomoka Land.
GrowthSpotter reported on Oct. 5 that Indigo Development and Indigo Sanford LLC sold a Sanford CVS store at 4639 W. 1st St. for $5.175 million to NNN Florida LLC.
The registered agent for the buyer of the Sanford store was also listed as a Miami Beach resident, Marilyn Neuchat. Listed online as the owner of a fitness salon, she id not respond to calls for comment.
Teresa Burney is a correspondent for GrowthSpotter.com and can be reached at 352-455-1955 or at email@example.com