| Purchase Price | $4,620,000 |
|---|---|
| Annual Rental Income | $317,400 |
| Cap Rate | 6.87% |
| Lease Term | 7 Years |
| City | Hendersonville |
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CVS Pharmacy – Hendersonville, TN (Nashville MSA)
This CVS Pharmacy in Hendersonville, Tennessee is backed by a long-term absolute triple-net lease with CVS Health, a Fortune 500 and investment-grade tenant. Located within the rapidly growing Nashville metropolitan area, this single-tenant retail asset offers passive, stable income supported by one of the most reliable and essential tenants in the healthcare and convenience retail space.
Tenant Overview – CVS Health
CVS Pharmacy is the retail pharmacy division of CVS Health (NYSE: CVS), the nation’s largest pharmacy chain and a leader in integrated healthcare services. With over 9,000 locations across the United States, CVS provides a comprehensive range of essential offerings including prescription medication, vaccinations, wellness screenings, over-the-counter products, and MinuteClinic walk-in services. The brand has increasingly positioned itself as a neighborhood healthcare hub.
CVS Health has expanded its reach through a combination of insurance services, retail clinics, and virtual care platforms, creating a fully integrated healthcare experience. Its strong consumer loyalty, national footprint, and evolving service model reinforce the brand’s long-term retail presence and operational resilience.
Lease Structure – Absolute Triple-Net
The CVS lease in Hendersonville is structured as an absolute triple-net (NNN) lease. Under this structure, the tenant is responsible for all operating expenses, including property taxes, insurance, maintenance, and capital repairs—resulting in zero landlord obligations. This type of lease provides truly passive income and is especially attractive for investors seeking:
The lease features fixed rental increases and renewal options, creating predictable revenue and long-term security.
Hendersonville Market Overview – Nashville MSA
Hendersonville is one of the most desirable and fastest-growing suburbs in the Nashville metropolitan area. Located just northeast of downtown Nashville in Sumner County, Hendersonville is known for its strong schools, high quality of life, and access to recreational amenities such as Old Hickory Lake. The area has seen significant residential development and has become a hub for families, professionals, and retirees seeking suburban lifestyle within commuting distance to Nashville.
The broader Nashville MSA is one of the most dynamic growth markets in the country, driven by a booming job market, favorable tax environment, and diverse economic base including healthcare, education, technology, and music industries. Hendersonville benefits directly from these macro trends while maintaining its own identity as a desirable suburban market with strong local demographics.
Demographics and Economic Drivers
Hendersonville offers robust demographic and economic fundamentals that support the success of essential retail tenants like CVS:
These characteristics contribute to a stable consumer base with consistent demand for pharmacy services, over-the-counter health products, and walk-in care—making CVS an indispensable part of the local retail landscape.
Retail Location and Site Attributes
This CVS Pharmacy is strategically located along a high-traffic retail corridor in Hendersonville, benefiting from strong visibility and ease of access. The property is positioned near major intersections and surrounded by residential neighborhoods, medical offices, grocery-anchored centers, and schools.
Additional site advantages include:
In suburban markets like Hendersonville, CVS stores are well-positioned to serve as the go-to healthcare and convenience retail provider, supported by predictable consumer demand.
Tenant Credit Profile and Investment Quality
CVS Health is one of the most financially secure tenants in the single-tenant net lease space. The company maintains investment-grade credit ratings, generates over $300 billion in annual revenue, and continues to expand its service offerings in both physical and digital formats.
As a tenant, CVS exhibits:
Investors benefit from both the credit strength of CVS and the essential nature of the services it provides, making it a recession-resistant and durable source of income.
Investment Highlights
Conclusion
The CVS Pharmacy in Hendersonville, TN offers an excellent opportunity to acquire a passive, income-producing net lease property in a top-performing Tennessee market. Backed by a corporate lease from CVS Health, this investment features a desirable absolute NNN structure, strong demographics, and long-term location fundamentals. With rising consumer demand for retail healthcare and pharmacy services, and the continued expansion of the Nashville MSA, this property is positioned for both stability and value preservation in any market cycle.