| Purchase Price | $6,100,000 |
|---|---|
| Annual Rental Income | $320,850 |
| Cap Rate | 5.26% |
| Lease Term | 18 Years |
| City | Spanish Fork |
"*" indicates required fields
CVS Pharmacy – Spanish Fork, UT
This CVS Pharmacy property located in Spanish Fork, Utah is secured by a long-term absolute triple-net (NNN) lease with CVS Health, a Fortune 500 healthcare leader and one of the nation’s largest pharmacy chains. The investment offers passive, predictable income, backed by a credit-rated tenant in a high-growth Utah market.
Tenant Overview
CVS Pharmacy, a subsidiary of CVS Health (NYSE: CVS), operates over 9,000 retail locations across the United States. The company is a nationally recognized brand providing essential health services such as prescription fulfillment, vaccinations, retail health clinics, and a broad assortment of front-end retail items including personal care, over-the-counter medications, and convenience groceries. As the healthcare landscape continues to evolve, CVS is expanding its in-store medical offerings, reinforcing its long-term relevance.
Lease Structure
The property is encumbered by an absolute triple-net lease, in which the tenant assumes full responsibility for taxes, insurance, maintenance, and capital repairs. This structure allows investors to enjoy a completely passive income stream with minimal landlord oversight. Long initial lease terms with extension options are standard for CVS assets, offering income stability and reduced rollover risk.
Spanish Fork Market Overview
Spanish Fork is part of the Provo-Orem metropolitan area in Utah County, one of the fastest-growing regions in the state. Located just 50 miles south of Salt Lake City, the city has transformed from a rural town to a booming suburban community. It benefits from rapid population growth, family-friendly neighborhoods, top-rated schools, and an expanding local economy anchored by healthcare, education, and technology.
Demographics & Growth Trends
The population of Spanish Fork has grown significantly over the past decade, with a current population exceeding 45,000. The city boasts high household incomes, a young median age, and strong employment levels. These demographic tailwinds support consistent demand for healthcare and convenience-based retail services, making CVS an integral part of the community’s retail infrastructure.
Essential Retail Role
CVS is a key destination for Spanish Fork residents seeking affordable healthcare, prescriptions, and daily essentials in one stop. The brand benefits from frequent, necessity-driven visits, creating a consistent stream of foot traffic. As a provider of both medical services and retail goods, CVS fulfills multiple consumer needs and maintains resilience across economic cycles.
Tenant Strength & Investment Security
CVS Health is an investment-grade tenant with strong operating performance, a diversified healthcare platform, and a long history of lease renewal across various markets. Its strategy of integrating retail, pharmacy, and primary care services positions it for continued success in growing suburban communities like Spanish Fork.
Investment Highlights