Thomas Company is pleased to announce the closing of CVS retail asset in Springfield, MA. The list price was $4.42 million. The transaction was for the leasehold interest, meaning only the building’s improvements were sold. The investment-grade credit of the tenant allowed the buyer to maximize LTV, replace a significant amount of debt from their exchange, while generating a higher yield than on a fee simple acquisition.
Highlights
- MANAGEMENT-FREE OWNERSHIP: The Tenant recently executed a 19-year absolute net lease (NNN) with no Landlord responsibilities whatsoever. The Tenant is responsible for all management and maintenance of the asset.
- LEASEHOLD INTEREST: The transaction was for the leasehold interest only, allowing the buyer to depreciate 100% of their cost basis.