CVS Pharmacy
Decherd, Tennessee

The Opportunity: CVS Pharmacy was acquired in November 2013 at an acquisition price of $2.0 million. It served as a single-tenant net lease (“STNL”) property in a strong retail location to syndicate to 1031 exchange investors.

Result: The property sold in June 2014 at a sales price of $2.75 million, generating an estimated internal rate of return (IRR) of 11%.

Investment Summary

Asset Type: Retail
Asset Size: 12,000 sf; 0.96 acres of land
Year of Construction: 1985
Acquired: 100% ownership interest in November 2013
Sold: June 2014

Property Highlights

  • Acquired at a 7.0% initial cap rate
  • Strong retail location under long-term lease to an investment-grade tenant
  • This STNL property was purchased as a component of a program to syndicate interests in the property to 1031 investors in a Delaware statutory trust (“DST”) structure.
  • The property was ultimately sold to a single 1031 investor for a profit in less than seven months.
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