The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant CVS ground lease located at 118 East New Circle Road in Lexington, KY for $3,500,000.
The 1.86 acre CVS property is ideally located at the heavily trafficked signalized intersection of East New Circle Road and North Limestone Road. This intersection experiences traffic volumes in excess of 45,000 vehicles per day. The property is located approximately two miles east of downtown Lexington and three miles east of the University of Kentucky (30,000 students). The CVS is located less than 1.5 miles from access to Interstate 75/64. The corporate headquarters of Lexmark International, a global provider of printing and imaging products, is located less than two miles from the CVS and employs over 2,600 people. Further contributing to the strength of this CVS location is that it is located down the street from an aging mid-block Walgreens with limited access.
Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a private investor from the Northeast. The purchaser was a 1031 Exchange investor located in Texas.
CVS has approximately 20 years remaining on their ground lease that expires January 31, 2035. The lease features six 5-year renewal options with 5% rental escalations in each. CVS is an investment grade rated tenant with a Standard and Poor’s rating of BBB+.
“Properties featuring long term leases to investment grade rated tenants remain at the forefront of investor demand.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Well located single tenant assets with solid real estate fundamentals continue to be in the greatest demand.”
