Northmarq’s Commercial Investment Sales teams arrange sales of 3 CVS locations

Northmarq’s Tulsa and Atlanta Commercial Investment Sales teams led by David Annett and Tyler Molleson successfully arranged the sales of three CVS stores combining for over $21 million located in:

• Midland, Michigan (1015 S. Saginaw Rd.)
• Waterford, Michigan (4995 Highland Rd.)
• Renton, Washington (10712 SE Carr Rd.)

Northmarq represented the seller, the Velmeir Companies, for each of the properties as a part of a strategic shift of their investments into other development projects. The buyer of the Midland location is Gelo Investments LLC. The buyer of the Renton property was SJ Land Management. They were both 1031 exchange investors identified through Northmarq’s proprietary marketing process.

“We have had the pleasure of working with The Velmeir Companies for the better part of seven years, and we are grateful for the continued confidence in us to help them enact their investment plans over those years,” said Annett.

“Marketing these assets in a challenging interest rate environment and with the current pharmacy headwinds made pricing these assets correctly very important,” Molleson said. “There is nearly three years of inventory on the market of CVS product, so getting these to stand out was our greatest challenge. Thankfully, the real estate quality, in the case of Renton, and the lease term remaining paired with offering cap rate on Midland allowed us to get plenty of eyes on the properties as we were selling them. Thankfully, the performance of the store at Waterford allowed us to place the property with a very close client on the buy side, avoiding marketing the property altogether.”

Built in 2016, the CVS in Midland is a 13,600-sq.-ft. single tenant retail space featuring a drive thru and 56 parking spaces. The lease has over 16 years remaining on its initial 25-year lease.

The Waterford CVS, built in 2002, is a 9,926-sq.-ft. single tenant retail, triple net lease property located a block from M-59 with access to Pontiac and Interstate 75 servicing Detroit.

Built in 2014, the CVS in Renton (Seattle MSA) is a 16,273-sq.-ft. single tenant space. The triple net lease property, which has 16 years remaining of its original 25-year term. The property is one of the top performing CVS stores in the US according to Placer AI.