4 unit CVS Commercial Real Estate Package
I have been analyzing deals and just found a 4 unit CVS portfolio in 4 different states for sale at 12.3 mil. 27% down at a 6.47 cap rate. The NOI is 800,000. Correct me if I'm wrong but that should come out to 66k a month? P&I should come out to 48k a month. I am assuming the lease is a triple net. Anyways, I was curious is this analysis accurate or am I way off? I appreciate any and all criticism/tips. Thank you ladies and gentlemen. Let me know if you want some more info!
Most Popular Reply
On these NNN deals, READ THE LEASE. You're paying a premium on a $/SqFt basis and usually, CVS writes its own lease. YOU ARE MAINLY BUYING A LEASE AND ASSOCIATED CASH FLOWS.
This may mean easier outs and rent holidays down the line. If you don't have a comm broker or you don't understand comm leases, do not trust the listing broker.
As far as CapRate, I guess once you understand the T&Cs, the lease is what it is since it's in existence. You can accept it, but how does it compare to other similar properties?