CVS/Walgreens Portfolio...Too Good to Be True?

[Account Closed]

A broker recently sent me a list of sevral CVS and Walgreens properties for sale throughout the U.S. I'm currently eyeing several of the CVS properties, but they just seem too good to be true. All the Walgreens are listed for over $5M (that makes sense), a few of the CVS are listed at ~$3.4, but many of them are around $1M, some even less and that seems suspicious.

All are absolute NNN corporate leases with 15+ years on the lease with fairly large lots and CAPs above 5%. A few of them are in areas that aren't that great but the rest seem to be in decent locations.

What's the deal here? Most of the the Walgreens and CVS I've seen are going for at least $3M, trying to figure out why these are going for so much less. Anyone have any idea?

[Chris Seveney]

Wesam S. I believe you are buying the ground and the building and cvs holds the lease for 15 years. Also check if the building is on a ground lease. I do not believe your buying a cvs you are buying s building where cvs is the tenant. I would check that.
Then like any retail you have to check the lease - what’s included - who pays CAM etc.