South American Fund buys CVS pharmacy store

BUYER: Holiday LLC (principal: Linda Gossett), Plantation
SELLER: Holiday Sun Properties Ltd LLLP
PROPERTY: 2513 U.S. 19, Holiday
PRICE: $2.61 million
PREVIOUS PRICE: $2.1 million, September 1997

PLANS, DESCRIPTION:
A South American fund purchased a 10,397-square-foot freestanding drugstore for $2.61 million.

The price equated to $251 per square foot. That figure is higher than the two-year average price per square foot for retail space ($146) in the Tampa Bay area, according to the CoStar Group.

The building was leased to CVS Caremark Corp. for the next 2.5 years. The triple-net lease obligates the drugstore company to pay for all real estate taxes, insurance, maintenance, repairs and utilities.

Rafeal Wright and Jonathan Graber of Franklin Street represented the seller, Holiday Sun Properties Ltd. LLLP.

The purchase price equated to a payoff ratio based on income (capitalization rate) of about 7.5%.

“The reason the cap was so high was the short-term remaining on the lease,” Graber says. “If there had been 10 years remaining, this would have been a 6% cap.”

Graber says over the past six months, the inventory for net-leased investments has continued to decline primarily because of high demand and the lack of new supply.