CVS Pharmacy Distribution Center, Fredericksburg, Virginia

A 487,897 square foot CVS Pharmacy distribution center in Fredericksburg, Virginia has traded, in a transaction arranged by Thomas Company. The facility at 500 Lansdowne Road sits on 39.4 acres within the Washington, D.C. MSA and was offered at approximately $29.4 million, or roughly $60 per square foot. The sale closed in January 2026. Thomas Company served as exclusive sell-side advisor and sourced the buyer.

The property is one of CVS Health’s primary regional distribution hubs for the Mid-Atlantic. It is subject to a bondable absolute NNN lease with CVS Distribution, Inc., guaranteed by CVS Health Corporation (S&P: BBB), with approximately eleven years of remaining primary term and ten five-year renewal options. In-place rent sits well below market for the Fredericksburg industrial submarket, giving the tenant a strong economic case to exercise those options and supporting the long-term credit profile.

The asset was offered with the assumption of in-place non-recourse CTL financing at a rate materially below current CTL market pricing, structured as a near zero cash flow investment. Value in a structure like this comes from loan amortization, depreciation, and back-end residual rather than current yield. The property had been offered previously through a broad institutional marketing process, and Thomas Company was engaged to approach it differently, reframing the offering around structural fit and taking it directly to buyers underwriting on those terms.

Thomas Company identified a 1031 exchange investor from its relationship network whose replacement timing and equity requirement aligned with the structure, and coordinated loan assumption mechanics with the CTL lender, including a paydown and readvance feature that preserved exchange equity requirements while leaving the loan intact. The transaction closed within the buyer’s exchange windows. The seller is a long-tenured Thomas Company client specializing in credit tenant lease investments.

Zero cash flow and CTL transactions turn on precise buyer identification rather than broad market exposure. Thomas Company continues to focus on structurally complex net lease assignments of this type.

For more information on similar investment opportunities, please contact Jeffrey Thomas at Thomas Company.