TYSONS CORNER, VA—A CVS here has traded for a record-breakingprice of $24.7 million, and a sub 5 caprate. It is difficult to find a similar comp elsewhere inthe country at this price point, Calkain Cos. CEO JonathanHipp tells GlobeSt.com. Simply put, he says, "at 4.97%this probably the lowest cap rate ever for a CVS in this pricerange."

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The seller of the CVS is a joint venture between a localdeveloper and a national REIT. The buyer was a joint venturebetween a Middle Eastern group and GaryRappaport.

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Hipp, along with Andrew Fallon andJonathan Florin represented the sellers.

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The sale price per building square foot and price per acrebreaks another recent market record-the$1,672 per square foot trade of the Starbucks building inWashington, DC, earlier this year, which was alsobrokered by Calkain.

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The CVS is uniquely positioned, which explains some, but not allof the drivers behind the sale. Located at 8117 LeesburgPike, it is the only drugstore, much less freestandingdrugstore, to serve the Tysons Corner, which has become a city inits own rights.

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Tysons Corner is home to 117,000 daytime workers and 20,000full-time residents. It also hosts about 6-million-square feet ofretail and 27 million square feet of office.

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In the bigger picture, the trade also illustrates the strongdemand for net-lease real estate occupied by investment-gradetenants. Buyers are willing to pay aggressive cap rates forbuildings they plan to own long term," Hipp says. The ground leasefor this CVS is a bondable income stream at 25 years of primaryterm with a 26% rent increase in the 16th lease year.

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