Zero Cash Flow | St. Louis MSA | Absolute NNN CVS
CVS Pharmacy Absolute NNN | 9141 Olive Boulevard, Olivette, MO 63132 | $5,500,000 | 10.75% In-Place
Marketing description
Manor Real Estate is pleased to exclusively offer for sale CVS Pharmacy Store #5670, a 13,712 SF single-tenant absolute NNN investment property located on a 3.0-acre signalized corner in Olivette, Missouri. The property is offered at $5,500,000, representing a 10.75% in-place cap rate on current NOI of $591,182 per year.
This is a structured zero-coupon investment — not a current-income vehicle. Phase 1 rent is sized to match CMBS debt service exactly, producing zero net cash flow to the investor through January 2032 by design. Buyers seeking current distributions should not pursue this offering. Buyers targeting long-horizon equity accumulation, mortgage paydown by a Fortune 10 tenant, and significant depreciation benefits will find this structure compelling.
The deal features an assumable CMBS loan of approximately $2.78M at 7.507% fixed interest, fully amortizing to $0 by January 2032 — with CVS rent covering 100% of debt service. A 36-month rent abatement follows (February 2032–January 2035) during which CVS continues to pay all property operating costs. Beginning February 2035, unencumbered NNN income of $532,064/yr commences with no debt and no landlord obligations.
The guaranty is a full corporate guarantee from CVS Caremark Corporation (NYSE: CVS), rated investment-grade by S&P (BBB) and Moody's (Baa3), surviving any assignment. CVS pays all taxes, insurance, roof, structure, HVAC, and maintenance — the landlord holds title and nothing more.
The property sits at the epicenter of one of St. Louis County's most active development corridors, with $250M+ of new retail and residential construction underway including Costco, Target, Dierbergs, and 400+ luxury apartment units.
Offered exclusively by Manor Real Estate | Eddie Cherry, CCIM | 314.322.2510 | [email protected]
CA required prior to financial disclosure. All-cash, 1031 exchange, and assumable mortgage basis accepted.
Investment highlights
1. Investment-Grade Corporate Guaranty — CVS Caremark Corporation (NYSE: CVS) Full corporate guaranty from CVS Caremark Corp., rated BBB/Baa3 by S&P and Moody's. One of America's largest companies by revenue, with $370B+ annually. Guaranty survives any assignment.
2. Absolute NNN — Zero Landlord Obligations CVS is contractually responsible for all real estate taxes (~$97K/yr), insurance, roof, structure, HVAC, utilities, and parking lot maintenance. Landlord's sole obligation: hold title.
3. Assumable CMBS Loan — ~$2.78M at 7.507% Fixed, Maturing January 2032 Buyer assumes existing institutional debt with no new lender relationship required. CVS rent covers 100% of debt service on a 1:1 basis through loan maturity. Required equity at list price: approximately $2.71M.
4. Structured Zero-Coupon Design — Disclosed & By Design This is not a traditional income property. Phase 1 rent ($591,182/yr) is sized to match CMBS debt service exactly, resulting in zero net cash flow to the investor through January 2032. This structure was intentional at origination. Investors seeking current distributions should look elsewhere; investors targeting back-end equity accumulation and tax efficiency will recognize the design.
5. Debt-Free Ownership by January 2032 — Then $532,064/yr NNN from February 2035 The loan fully amortizes to $0 concurrent with the start of a 36-month rent abatement (Feb 2032–Jan 2035). During the abatement, CVS continues paying all property expenses. Beginning February 2035, unencumbered NNN income of $532,064/yr commences — no debt, no landlord obligations.
6. ~9 Years of Remaining Guaranteed Term | Two 5-Year Extension Options Initial lease term runs through January 31, 2035, with maximum possible term extending to January 31, 2085. ROFR applies to extension periods only — does not encumber the current sale.
7. Significant Depreciation Benefit Available to Buyer 13,712 SF single-tenant retail building on 3.0 acres, placed in service 2009. Cost segregation study potential for accelerated depreciation in Year 1. Consult your tax advisor regarding bonus depreciation and §1250 recapture implications.
8. Premier Olivette/Ladue Corridor Trade Area — $250M+ Active Development Signalized corner at Olive Boulevard (18,960 VPD) and N. Price Road. Immediately adjacent to Costco (opened 2025), Target (opening 2026), Dierbergs (opening 2026), Market at Olive, Olive Crossing, and 400+ new luxury apartment units. Ladue School District submarket.
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