BOCA RATON, FL—Affiliates of locally-based real estate investment firm The Herrick Company Inc. has acquired 44 retail properties net leased to CVS Caremark in 18 states from private equity firm Fortress Investment Group LLC for a purchase price of approximately $190 million.
The CVS leases in the portfolio each have 25 years remaining on the term, the company states. The portfolio's breakdown of locations is: Pennsylvania (7), Virginia (7), Michigan (3), Georgia (3), Ohio (3), Iowa (2), Indiana (2), Kentucky (2), Minnesota (2), North Carolina (2), New Hampshire (2), Wisconsin (2), North Carolina (2), Alabama (1), Florida (1), Illinois (1), North Dakota (1), and Maryland (1).
A consortium of capital sources provided debt financing for the acquisition under a private placement arrangement, Herrick Co. states in its announcement.
“In real estate, there are few investment opportunities as desirable as properties that are leased on a triple net basis by creditworthy tenants such as CVS,” says Norton Herrick, chairman of The Herrick Company. “As we actively seek out additional investment opportunities that fit our requirements, we're intently focused on acquiring this type of stable, low-management-intensive property in the retail, industrial and office sectors.”
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