1650 Menoher Blvd, Johnstown, PA 15905

Newmontis is proud to offer for sale a fee simple interest in the single-tenant CVS Pharmacy located in Johnstown, PA (the “Property”). CVS Pharmacy is operating under an absolute NNN lease expiring January 31, 2041. The annual rent is $227,079 with ten (10), five (5) year renewal options. Starting with the third option, the rent may increase to “Fair Market Value”– a rare trait for a corporate drugstore lease.
With monthly base rent of only $1.39/SF and Fair Market Value options, this CVS presents current income stability and a long-term appreciation opportunity.
The Property consists of over 1.8 acres and an architecturally distinct 13,627 square-foot CVS Pharmacy built in 2015. The property is about 60 miles from Pittsburgh and is prominently positioned on the signalized intersection of Goucher Street and Menoher Boulevard.
The lease is absolute net; the landlord has zero responsibilities. CVS operates almost 10,000 locations in the US and employs approximately 260,000 employees, generating over $170 billion in total revenue. CVS Health has an investment grade credit rating by all major rating agencies including a BBB+ rating with a stable outlook from Standard & Poor’s Rating Services. The lease has no “rent holidays”.
INVESTMENT HIGHLIGHTS:
-Fair Market Value Options: Many CVS investments have minimal rent increases, and if market rent in an area outpaces the rent increases, the CVS owner’s cash flow doesn’t keep up. Assuming 2.0% annual inflation over the current rent, this CVS’s first fair market value option could be over $430,000 per year, a 92% increase in rental income to the Owner.
-Build to Suit: This store was purpose-built for CVS, and they specifically selected this intersection for their location.
-Investment Grade Tenant: The lease is fully guaranteed by CVS Health Corporation, one of the world’s most valuable brands and ranked #4 on the Fortune 500 list. CVS Health has an investment grade credit rating by all major rating agencies including a BBB+ rating with stable outlook from Standard & Poor’s.
-Long-Term Operator: The Property has housed CVS since 2015, and with options their tenancy can extend to 2091
-Major Retail Corridor: CVS is operating at the intersection of Goucher St. and Menoher Blvd., which sees traffic counts of over 16,000 vehicles per day.