Prime CVS Pharmacy Absolute NNN Ground Lease | Farmington Hills, MI

An extraordinary commercial real estate investment opportunity in the affluent suburban Detroit submarket of Farmington Hills, Michigan. Offered at $5,950,000 ($450/SF), this standalone 13,210-square-foot CVS Pharmacy sits on a 1.23-acre prime hard-corner parcel. Fully backed by CVS Health corporate credit, this passive net-lease investment generates a stable $357,000 annual Net Operating Income (NOI) at a solid 6.00% cap rate with zero landlord management responsibilities.

Investment Specifications & Financial Summary

• Purchase Price: $5,950,000 ($450 / SF)

• Cap Rate: 6.00%

• Annual Net Operating Income (NOI): $357,000

• Tenant: CVS Pharmacy (Corporate Guarantee)

• Building Size: 13,210 Net Rentable SF (Modern 2008 Construction)

• Lot Size: 1.230 Acres

• Tenancy & Occupancy: 100% Single-Tenant

• Lease Structure: Absolute NNN Ground Lease (Zero Landlord Responsibilities)

• Lease Expiration: January 31, 2035 (8.4 Years Remaining)

• Renewal Options: Five (5) Five-Year Extension Options

• Rent Escalations: 5% Rent Increases in Option Periods

Corporate Credit & Passive Absolute NNN Structure

This property represents the gold standard in passive real estate ownership. Featuring an Absolute NNN Ground Lease structure, the tenant is entirely responsible for all property expenses, maintenance, and structural upkeep:

• Zero Landlord Maintenance: CVS pays directly for roof, structure, parking lot resurfacing, HVAC, taxes, insurance, and all operating expenses, delivering 100% passive cash flow.

• Investment-Grade Corporate Credit: Backed by CVS Pharmacy, one of the nation’s largest healthcare operators featuring over 9,100 locations nationwide and annual revenues exceeding $370 Billion.

• Contractual Inflation Protection: Built-in 5% rental increases during each of the five 5-year renewal option periods provide steady long-term income growth.

Strategic Hard-Corner Location & High Traffic Counts

Positioned along one of Metro Detroit’s most sought-after retail corridors, the property enjoys high visibility, multi-lane access, and continuous consumer traffic:

• Prime Intersection Exposure: Located directly on Orchard Lake Road (32,115 VPD) near 13 Mile Road (14,815 VPD), capturing combined traffic counts approaching 47,000 vehicles daily.

• Modern Prototype: Purpose-built in 2008 to CVS’s exact operational standards, featuring drive-thru pharmacy lanes, dedicated ingress/egress, high-profile pylon signage, and ample on-site parking.

High-Income Suburban Detroit Demographics

Farmington Hills is widely recognized as one of Oakland County’s most economically resilient communities. The property benefits from exceptional neighborhood density and strong area purchasing power:

Demographics Profile:

• 1-Mile Radius: 6,698 Residents | $130,300 Average Household Income

• 3-Mile Radius: 59,510 Residents | $135,220 Average Household Income

• 5-Mile Radius: 168,740 Residents | $139,450 Average Household Income

Key Investment Highlights

• 100% Passive Absolute NNN Ground Lease with zero landlord obligations.

• 6.00% Cap Rate delivering $357,000 in passive annual NOI.

• Investment-Grade Tenant backed by CVS Health corporate credit.

• 8.4 Years Remaining on firm lease term through January 2035 plus five 5-year options.

• Strategic Hard-Corner Site along Orchard Lake Rd (32,115+ VPD).

• Affluent Oakland County Location with average household incomes exceeding $139K.