434 Racetrack RD NE
CVS - Huge Store Sales Numbers | 9+ Years Plus Options & Increases
Marketing description
CBRE is pleased to present for sale CVS Pharmacy located at 434 Racetrack Road NE in Fort Walton Beach, Okaloosa County, approximately 50 miles east of Pensacola and just minutes from Florida's renowned Emerald Coast beaches.
CVS Pharmacy is one of the nation's most recognized and trusted pharmacy and convenience retail brands, operating thousands of locations across all 50 states. The company's long-standing market presence, essential-use business model, and focus on prescription services, health & wellness, and everyday convenience items have established it as a highly resilient tenant within the retail real estate sector.
The property is strategically positioned along Racetrack Road NE, a key local thoroughfare with strong daily traffic counts and convenient access to surrounding residential neighborhoods, retail centers, and service destinations. This busy corridor serves as an important connector providing exceptional visibility and accessibility for both local residents and pass-through traffic throughout the day.
Fort Walton Beach benefits from the presence of two major military installations: Eglin Air Force Base and Hurlburt Field, which collectively support tens of thousands of active-duty personnel, civilian employees, contractors, and their families. Eglin AFB alone is one of the largest Air Force installations in the world and serves as a critical economic engine for the entire region, providing a stable year-round population base that sets this market apart from many other seasonal coastal communities.
In addition to its strong military presence, Fort Walton Beach is part of Florida's famed Emerald Coast and sits just minutes from the Gulf of Mexico and neighboring Destin, one of the state's premier tourism destinations. The region attracts millions of visitors annually, supporting consistent demand for convenience retail and daily-needs shopping.
For investors seeking a truly passive income stream secured by Fortune 500 credit, this Fort Walton Beach CVS delivers exactly that: nothing to manage, no landlord obligations to absorb, and decades of renewal optionality still on the table in one of Florida's most resilient coastal markets.
Investment highlights
- Investment-Grade Credit Guaranty from CVS Health Corporation (S&P: BBB) The lease is guaranteed at the corporate level by CVS Health Corporation, one of the largest pharmacy and healthcare companies in the United States with over 9,000 retail locations nationwide. CVS Health's investment-grade credit profile provides institutional-quality income security backed by an enterprise with over $370 billion in revenue.
- True NNN Structure with Zero Landlord Obligations Per the Fourth Amendment executed July 15, 2025, all landlord repair and maintenance obligations have been eliminated. CVS pays real estate taxes directly to the taxing authority, maintains all mechanical systems (HVAC), exterior facilities (parking, driveways, sidewalks), and carries full property and liability insurance. This is a completely passive income stream.
- 9.3 Years of Remaining Term with 10 Additional 5-Year Renewal Options The current lease term extends through July 31, 2035, providing 9.3 years of guaranteed income. Beyond that, CVS holds 10 additional 5-year renewal periods with escalating rents, providing long-term optionality for any hold scenario. Maximum potential lease duration: 59 years from today.
- Accelerating Store Sales at a 3.29% Occupancy Cost Ratio This location generated $10,104,295 in gross sales in FY2025 (12 months ended August 2025), a 7.6% increase over the prior year and 20.0% cumulative growth over three years. At $724 per square foot in annual revenue and an occupancy cost ratio of just 3.29%, CVS has an exceptional economic incentive to continue operating from this location well into its renewal terms.
- The Lease Prohibits Any Competing Drug Store Or Prescription Drug Sales Operation Within 1,000 Feet of the Property
- Trophy Location | A+ Real Estate Grade with Multiple Access Points
- Ideally Located Near a Major Signalized Intersection
- Perfectly Situated at the Junction of Eglin Parkway - the Direct Route to Eglin Air Force Base, and Racetrack Road
- High Traffic Retail Corridor with 79,000 Combined Average Daily Traffic Count
- Exceptional Sightline, Visibility, Exposure & Signage
- The Adjacent Publix Anchor Generates ~49,985 Monthly Visits, CVS ~24,168 Visits. Together, the Two Anchors Draw Over 74,000 Combined Monthly Visits, Making This One of the Most Active Retail Corners in Fort Walton Beach
- Tourism and Seasonal Traffic Influx with Nearly 8 Million Annual Visitors Travel to the Destin-Fort Walton Beach Region with Direct Spending of $734M
- Fort Walton Beach Named 'Destination of the Year-2026' by Expedia, Marking it a Top Emerging Travel Hotspot
- Location Offers Strategic Connectivity to US-98 and Coastal Markets
- A Military-Driven Consumer Base of Tens of Thousands Provides Year-Round Demand
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