CVS - Iowa City, IA
7.50% Cap Rate | Nearly 6 Years Remaining on Absolute NNN Lease | Ten 5-Year Renewal Options
Marketing description
Marcus & Millichap is pleased to offer for sale the fee simple interest in a 15,236-square-foot drive-through pharmacy (the Property) in Iowa City, IA, in which CVS has nearly 6 years remaining on its corporately guaranteed absolute net lease. The lease features ten 5-year renewal options with rent adjustments to fair market value starting in 2042 to offset inflation.
Located on Muscatine Avenue across from a Hy-Vee supermarket, the CVS parcel features frontage on three streets. CVS sits one mile south of Iowa City High School and one mile north of an industrial area that includes Procter & Gamble’s expanding Oral-B site and an Amazon distribution center that was refinanced for $20 million in 2025.
With a campus sprawling across both banks of the Iowa River, the 31,563-student University of Iowa and over-20,000-employee University of Iowa Health Care system anchor the local economy, which achieved an $8 billion county GDP in 2019.
Ranked No. 5 on the Fortune 500 List, CVS Health (NYSE: CVS) is a leading healthcare company operating approximately 9,000 retail pharmacies and employing over 300,000 people including 27,000 community pharmacists. CVS Health reported $402.1 billion in revenues in 2025 and recently announced an AI-technology partnership with Google.
This property offers the ease and security of an absolute net lease with renewal options as well as the long-term potential of a large corner parcel in a growing college town.
Investment highlights
- Nearly 6 Years Remaining on Corporately Guaranteed Absolute Net Lease
- Ten 5-Year Renewal Options With Rent Adjusted to Fair Market Value Starting in 2042
- On 17,600+ AADT Intersection Across from Hy-Vee Supermarket and Maverik Fuel Station
- Only 1.9 Miles Southeast of 31,563-Student University of Iowa Via Muscatine Avenue
- Just 0.9 Miles to Procter & Gamble’s 600-Employee Oral-B Site, Where a $150 Million Expansion Will Open in Late 2027
- 113,743 Daytime Population and $83,768 Average Household Income Within 3 Miles
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