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Pharma Property Group is pleased to market for sale the CVS property located at 148 Route 137 Harwich, Massachusetts ("The Property"). CVS has had a long successful operating history at this location (±25 years) and will be exercising their second option at their scheduled rent increase on January 31st 2024.
The Property has exceptionally high sales volumes as demonstrated by the additional percentage rent that CVS has been paying for numerous years. Sales have increased since 2020 and the additional rent paid by CVS has increased 25%-35% each year since 2020. Projected percentage rent to be paid in 2023 is $184,000 and the pricing of the Property is based on an NOI of the base rent and the average of the last two years in additional percentage rent of $158,000. CVS also pays the landlord a 7.5% administration fee as additional rent which is not included in the NOI when calculating the list price.
The Property allows for an investor to achieve a higher yield for a 6 year CVS lease while having minimal lease renewal risk when considering the long operating history, exceptional sales volumes, lack of surrounding competition (no other freestanding CVS or Walgreens for over 5 miles). There is also additional upside with scheduled rental increases every 5 years to the base rent and future potential increased percentage rent with the upward trajectory of the sales volumes.
Harwich is located on the popular Cape Cod Peninsula, the desired vacation destination, bringing nearly 23 million domestic and international visitors to the area in 2022, accounting for nearly $24.2 billion in direct spending. The Property is strategically situated, being the only stand-alone national brand drugstore in a 5-mile radius that supports an average household income of over $114,000.
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