CVS Pharmacy | North Webster, IN | Basis-Driven
~20% Below Market Rent | 2021 Lease Reset | Investment Grade Credit | High Seasonal Demand
Marketing description
Basis-Driven Investment with Long-Term Control & Downside Protection
SAB Capital is pleased to present the exclusive offering of a single-tenant, net-leased CVS Pharmacy located in North Webster, Indiana. The Property is secured by CVS Health Corporation, an investment-grade rated tenant (S&P: BBB / Moody’s: Baa2), and benefits from a recently executed lease amendment in 2021 that reestablished a new 20-year primary term, providing approximately 15 years of remaining lease term and long-term income stability.
The investment is structured as an absolute net lease, offering a truly passive ownership experience with zero landlord responsibilities. CVS is responsible for all operating expenses, including taxes, insurance, and maintenance, delivering durable, bond-like cash flow backed by one of the nation’s leading pharmacy operators.
What differentiates this opportunity is its below-market rent profile. The property is leased at $100,100 annually ($9.93/SF), representing a meaningful discount to prevailing market rents of approximately $12/SF. This creates an embedded margin of safety and positions the asset for long-term upside, whether through mark-to-market potential or enhanced residual value. Unlike many net lease investments that trade at or above market rents, this offering provides a basis-driven investment thesis with both downside protection and future optionality.
The Property is strategically situated on ±1.59 acres with dual frontage along S Main Street (State Road 13) and Effie Mae Street, offering strong visibility and accessibility in a proven retail corridor. CVS has successfully operated at this location for over 20 years, reinforcing the site’s viability and importance as a local healthcare and convenience retail destination.
This offering presents investors with the rare opportunity to acquire a long-term, investment-grade net lease with a recent lease reset, below-market rent, and strong underlying real estate fundamentals. The combination of passive income, tenant credit quality, and favorable basis positions the asset as a compelling addition to both income-focused and value-oriented portfolios.
Investment highlights
- Seasonal Demand Driven by Webster Lake Tourism | Property benefits from significant summer population inflows associated with Webster Lake, driving increased retail demand and supporting store performance beyond base demographics.
- Long-Term Absolute Net Lease to Investment Grade Credit| CVS Health Corporation (S&P: BBB / Moody’s: Baa2) guarantees the lease, providing durable, investment-grade income backed by the nation’s leading pharmacy operator.
- Recent Lease Reset Extending Term Through 2041 | The 2021 lease amendment reestablished a 20-year primary term, delivering ±15 years of remaining lease term and eliminating near-term rollover risk.
- Below-Market Rent with Embedded Upside| The property is leased at $100,100 annually ($9.93/SF), representing a meaningful discount to market rents of approximately $12/SF. This below-market basis provides a built-in mark-to-market opportunity and enhances long-term residual value.
- True Passive Income | The lease is structured as an absolute net lease with zero landlord responsibilities, insulating ownership from operating expenses, capital expenditures, and inflationary cost pressures.
- Mission-Critical Location with 20+ Year Operating History| CVS has successfully operated at this location since 2003, demonstrating long-term commitment and reinforcing the site’s role as a critical healthcare and convenience retail hub.
- Strong Site Fundamentals with Excellent Accessibility| Situated on ±1.59 acres with dual frontage along S Main Street (State Road 13) and Effie Mae Street, the property benefits from strong visibility and accessibility with traffic counts of 10,262 VPD.
- High-Functioning Retail Prototype with Drive-Thru | The ±10,083 SF freestanding building includes a drive-thru pharmacy and ±62 parking spaces (~6.1/1,000 SF), supporting efficient operations and consistent customer demand.
Listing Contacts
Valuation Calculator
Valuation Metrics
Map
Broker Selected Comps View More Comps
Property History
Tax History
Similar Properties
Is there information that looks off?
