CVS Pharmacy

• New Lease Extension – CVS Corporate has committed to a 5-year lease extension, accompanied by a 7.5% rent increase, reflecting strong confidence in this location’s long-term performance. This comes alongside CVS’s recently announced pivot to a smaller store format – a strategy this location is positioned to support.
• Market Dominance – This CVS operates with a significant competitive advantage as the sole major pharmacy chain in the city of Mathis. With the nearest CVS located 23 miles away and the closest Walgreens 25 miles away, the tenant faces virtually no direct competition. Situated within the Corpus Christi, TX MSA, this location also offers a compelling rent basis of just $10.81/SF – ranking among the lowest in a state with no income tax.
• Passive Lease Structure – Landlord responsibilities are limited to the structural elements of the roof and structure. All other expenses are paid or reimbursed by the tenant making this a low-management investment for a passive investor.
• Investment Grade Tenant – The lease is backed by CVS Health Corporation, one of the largest pharmacy and healthcare companies in the United States. With over 9,300 retail locations nationwide, a Fortune 500 #6 ranking, and more than $400 billion in annual revenue, CVS Health’s investment-grade credit profile delivers institutional-quality income security.
• Attractive City Developments – Mathis City Council have recently invested $30 million in capital improvements surrounding the city as they project a strong population growth for the next 5 years. The city is also on the brink of a major industrial development with the construction of a new rail loop near Interstate 37. This offers unparalleled access to rail transport, facilitating efficient distribution and supply chain operations.