1700 McHenry Ave, Modesto, CA 95350 For Sale

SRS National Net Lease Group is pleased to offer the opportunity to acquire the leasehold interest (building ownership) in an absolute NNN leased, investment grade (S&P: BBB), 24-hour, freestanding CVS investment property located in Modesto, CA. The tenant has approximately 9 years of firm term remaining with 1 (1-year) and 6 (5-year) options to extend, demonstrating their long-term commitment to the site. The lease is absolute NNN with zero landlord responsibilities making it an ideal, management-free investment opportunity for a passive investor. CVS is America’s leading retail pharmacy and has more than 9,000 retail pharmacy locations, more than 1,000 walk-in and primary care medical clinics, a leading pharmacy benefits manager with approximately 90 million plan members, and a dedicated senior pharmacy care business serving more than 800,000 patients per year. The site is ideally positioned as the only 24-hour pharmacy in the trade area and recently acquired the prescriptions from the former Rite Aid pharmacy directly across the street, effectively capturing displaced demand and solidifying its role as the primary pharmacy destination in the market. Lastly, the asset can be purchased free and clear or with the assumption of CTL zero cash flow financing, which also includes a paydown/readvance feature allowing 1031 investors to pull cash out from the transaction (see page 17 for more details).

CVS is strategically located at the signalized, hard corner intersection of McHenry Ave and E Briggsmore Ave which supports over 81,000 vehicles per day. Furthermore, the site benefits from nearby on/off ramp access to State Highway 99 (147,500 VPD), making this an ideal centralized location with easy commutes. The site is located in the heart of the McHenry and Briggsmore corridor, Modesto’s premier retail corridor with the deepest national tenant base and strongest traffic metrics. Moreover, the site is ideally positioned adjacent to Doctors Medical Center (461 beds) and one mile west of Memorial Medical Center (423 beds), providing a direct consumer base from which to draw. In addition, the site is located in a Sprouts anchored shopping center and is adjacent to Briggsmore Shopping Center, a 237,000 SF community center with a strong tenant lineup that includes Burlington, Safeway, and more. Other nearby national/credit tenants include Target, Marshalls, Walmart Supercenter, Hobby Lobby, Ross, See’s Candies, and more. In addition, the property is adjacent to See’s Candies, one of the most selective national specialty retailers, serving as a clear endorsement of the trade area’s strength. Strong tenant synergy increases consumer draw to the immediate subject trade area and promotes crossover tenant exposure to the site. Lastly, the asset is within close proximity of multiple apartment complexes including Stoneybrook (166 units), Greenbriar Villas (240 units), Chardonnay Ridge (115 units), and more. The dense, 5-mile subject trade area is supported by more than 278,000 residents and 110,000 daytime employees who earn an above average household income of more than $104,000.