CVS - Dunkirk, NY

Long-Term Lease Extension: CVS has operated at this location since 2000 and, in 2014, executed a 25-year lease extension, underscoring the tenant’s long-standing commitment to the site and strong continued confidence in the location’s continued performance.
Exclusive Pharmacy Presence: As the only national chain drugstore within a 16-mile radius, this location serves the greater Dunkirk/Fredonia region and has further strengthened its market position following the closure of the adjacent Walgreens in 2022. The property is well positioned as the area’s dominant full-service pharmacy provider for more than 25,000 residents within a five-mile radius, with only limited competition from Walmart and Tops over in Fredonia.
Rental Escalations: The lease features 5% rental increases every five years throughout the option periods, providing built-in income growth and a measure of inflation protection over the hold period.
Integrated Healthcare Location: CVS benefits from proximity to key healthcare providers, including Brooks Memorial Hospital, The Chautauqua Center, and Dunkirk Pediatrics, reinforcing the property’s role as a primary prescription destination with consistent healthcare-driven consumer traffic.
Proximity To University: The property is located approximately two miles north of the State University of New York at Fredonia, a historic institution founded in 1826 and one of the oldest colleges in New York. With approximately 3,100 students and recent positive enrollment trends, including a 10% increase in first-year students and meaningful growth in graduate enrollment, the university supports demand from students, faculty, and staff.
Investment Grade Credit Tenant: The lease is guaranteed by CVS Health Corporation, a Fortune 500 pharmaceutical and health services company ranked #5, with an S&P credit rating of BBB and an approximate $96 billion market capitalization. In periods of economic uncertainty, investment-grade tenancy is often viewed favorably as investors place increased emphasis on credit quality, stability, and liquidity.

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Cory Rosenthal