Stan Johnson Company Arranges Zero Cash Flow Sale of CVS Pharmacy Portfolio for $19.2 Million

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has announced the sale of a zero cash flow portfolio fully leased to CVS Pharmacy. The four-building, four-state portfolio of retail drugstores totaled more than 56,000 square feet and sold to a private 1031 exchange investor for approximately $19.2 million. Stan Johnson Company’s Josh Pardue and Zach Pool represented the seller, a leading New York City developer.

“We are pleased to have completed a challenging, cross-border CVS portfolio transaction between our New York-based client and an investment fund from Mexico that has deployed significant capital into the net lease sector in recent years,” said Pardue, Senior Director in Stan Johnson Company’s New York City office. “With zero cash flow transactions, the motivations are different than the drivers of traditional net lease transactions. In these transactions, the buyer’s investment focus is typically on wealth preservation and tax strategy, while the seller is traditionally focused on high-yield development, seeking to roll the equity into income-producing real estate.”

The properties were built between 2011 and 2013 with absolute triple net leases in place. The assets featured non-recourse, zero cash flow structured financing that was readily assumable. The following properties were included in the sale:

  • 12751 Nicollet Avenue, Burnsville, MN
  • 400 South Truman Boulevard, Crystal City, MO
  • 101 East Hall of Fame Avenue, Stillwater, OK
  • 2115 Union Avenue, Memphis, TN

“We structured this transaction with a longer contract to allow the seller to secure a quality South Florida multifamily investment property to exchange into,” Pardue added. “We’re pleased to have navigated the nuances between each drastically different investor, accommodating the requirements of all parties and successfully closing on this transaction.”

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About Stan Johnson Company:

Stan Johnson Company is one of the nation’s leading commercial real estate brokerage and advisory firms that focuses on investment sales transactions involving retail, office, industrial, healthcare, and specialty properties. The firm and its affiliates provide acquisition, disposition, sale leaseback, capital markets, and advisory services for institutions, developers, investment funds, corporate occupiers, and private investors across the United States. With a historic focus in the single-tenant net lease sector, Stan Johnson Company is now in its fourth decade of operation and has expanded its service platform in order to better serve its valued clients. The firm has completed more than $40 billion in transactions nationwide and continues to be regarded as the Net Lease Authority® as it focuses on continued growth and expansion into other industry sectors and services.