July 2022

Thomas Company Negotiates Sale of 47-Property CVS Portfolio

Exterior of a CVS pharmacy store at twilight, featuring a well-lit facade with large windows and signage, part of the 47-property CVS portfolio sale.

Thomas Company is pleased to announce the completed individual sales of a 47-property CVS portfolio. The properties were offered as highly leveraged zero-cash-flow investments, with attractively priced loans on each property that will fully-amortize prior to the expiration of each lease. Each property is leased on a bondable triple-net basis, with CVS responsible for all repair and maintenance.

All stores are recently constructed or have been recently renovated and are located throughout the U.S in 22 states. Combined, the properties total more than 571,465 square feet of retail space. The credit of CVS and the fully amortizing nature of the loans allowed lenders to underwrite the assets with much higher leverage ratios than typical real estate investments. The high amount of leverage required far less equity to be invested and generate annual passive losses that work to offset taxable income from other investments.

As of March 2022, CVS operated over 9,900 retail locations in the United States, Puerto Rico, and Brazil. Its stores sell prescription drugs and front- end products such as non-prescription medications, health and beauty aids, and cosmetics. The company also operates the nation’s largest chain of health care clinics, with 1,100 MinuteClinic outlets throughout the country. MinuteClinics are staffed by nurse practitioners and physician assistants who utilize nationally recognized protocols to diagnose and treat minor health conditions, perform health screenings, monitor chronic conditions, and deliver vaccinations.