| Purchase Price | $5,900,000 |
|---|---|
| Annual Rental Income | $318,500 |
| Cap Rate | 5.40% |
| Lease Term | 18 Years |
| City | Prattville |
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CVS Pharmacy – Prattville, AL
This CVS Pharmacy property located in Prattville, Alabama is backed by a long-term absolute net lease with one of the most established healthcare retailers in the United States. The asset offers passive, bond-like income and is supported by a corporate guarantee from CVS Health, a Fortune 500 company and one of the nation’s leading pharmacy chains.
Tenant Overview
CVS Pharmacy is a subsidiary of CVS Health (NYSE: CVS), a vertically integrated healthcare services provider with over 9,000 retail pharmacy locations nationwide. CVS offers a full range of prescription services, over-the-counter medications, convenience items, seasonal merchandise, and basic groceries. With a proven track record of profitability and a national brand presence, CVS remains one of the most secure tenants in the net lease market.
Lease Structure
The property operates under an absolute triple-net (NNN) lease, with the tenant responsible for all expenses, including taxes, insurance, and maintenance. There are no landlord responsibilities, making this a true passive-income investment. Leases with CVS often include long initial terms with multiple options to renew, offering stability and long-term cash flow predictability.
Prattville Market Overview
Prattville is a fast-growing suburb of Montgomery, located in Autauga and Elmore counties. Known as “The Fountain City,” it has seen steady residential and commercial growth due to its quality of life, low cost of living, and proximity to major employment centers. Prattville serves as a regional retail and healthcare hub, benefiting from strong traffic and consistent demand for pharmacy services.
Demographics & Demand Drivers
The city has a population of over 37,000 residents and continues to grow as families, retirees, and young professionals migrate into the area. The median household income in Prattville is above the Alabama average, and the population is well-insured and healthcare-conscious. CVS is well positioned to serve a diverse mix of consumers including families, seniors, and commuters, making the store a high-frequency retail destination.
Retail Importance & Community Role
As a provider of both essential healthcare services and front-end retail, CVS plays a critical role in the Prattville community. With prescription demand and over-the-counter health needs remaining stable regardless of economic cycles, the tenant’s business model supports consistent customer traffic. Additionally, CVS stores often serve as anchor tenants in neighborhood retail corridors, drawing steady foot traffic and contributing to the vibrancy of the surrounding area.
Tenant Credit & Operational Security
CVS Health is an investment-grade rated company with deep operational resources and strong real estate fundamentals. The company continues to innovate its retail footprint through healthcare integration, ensuring long-term relevancy. Its long-term lease commitment, corporate backing, and essential business model provide strong income reliability for landlords.
Investment Highlights