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Updated over 4 years ago on . Most recent reply

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29
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Emery Jensen
  • Real Estate Agent
  • San Diego, CA
9
Votes |
29
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4 unit CVS Commercial Real Estate Package

Emery Jensen
  • Real Estate Agent
  • San Diego, CA
Posted

I have been analyzing deals and just found a 4 unit CVS portfolio in 4 different states for sale at 12.3 mil. 27% down at a 6.47 cap rate. The NOI is 800,000. Correct me if I'm wrong but that should come out to 66k a month? P&I should come out to 48k a month. I am assuming the lease is a triple net. Anyways, I was curious is this analysis accurate or am I way off? I appreciate any and all criticism/tips. Thank you ladies and gentlemen. Let me know if you want some more info!

Most Popular Reply

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4,039
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2,376
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Steve Morris
  • Real Estate Broker
  • Portland, OR
2,376
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4,039
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Steve Morris
  • Real Estate Broker
  • Portland, OR
Replied

On these NNN deals, READ THE LEASE. You're paying a premium on a $/SqFt basis and usually, CVS writes its own lease. YOU ARE MAINLY BUYING A LEASE AND ASSOCIATED CASH FLOWS.

This may mean easier outs and rent holidays down the line.  If you don't have a comm broker or you don't understand comm leases, do not trust the listing broker.

As far as CapRate, I guess once you understand the T&Cs, the lease is what it is since it's in existence.  You can accept it, but how does it compare to other similar properties?

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