European, investor buys CVS drug store

European, investor buys CVS drug store

BUYER: Saiano LLC (principal: Federico Hurth), Naples

SELLER: Pelican Bay Developments I Inc.

PROPERTY: 5296 Tamiami Trail N., Naples

PRICE: $5 million

PREVIOUS PRICE: $2.1 million, October 1997

LAW FIRM ON DEED: Shumaker Loop & Kendrick LLP, Tampa

PLANS, DESCRIPTION: Swiss investor Federico Hurth purchased an 11,200-square-foot CVS drug store on Tamiami Trail near Laurel Oak Drive for $5 million.

The purchase price equated to $446 per square foot of building space. Drug store operator CVS Caremark has a triple net lease on the property through at least the next nine years.

David J. Stevens of Investment Properties Corp. handled the transaction.

“I found it refreshing that that this was somewhat of a traditional investment,” Stevens says. “It wasn't a short sale or a foreclosure. There wasn't any blood in the water. It was just a high-quality net-lease investment. It's very nice to say that this was based on the investment stream and the market value.”

The purchase price equated to slightly more than an 8% capitalization rate. The acquisition was paid in a mixture of cash and the assumption of an existing loan with a prepayment penalty.

Hurth, who also owns a home in Naples, is a passive real estate investor who looks for long-term, stable tenants.