BOCA RATON, FLA. — The Herrick Company has acquired 44 properties throughout the U.S., all of which are triple-net-leased to CVS Caremark (NYSE: CVS), for a purchase price of $190 million. All of the CVS leases have 25 years remaining on the term.
“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, Herrick’s chairman and CEO. “As we actively seek out additional investment opportunities that fit our requirements, we're intently focused on acquiring this type of stable, non-management-intensive property in the retail, industrial and office sectors.”
The debt to finance this acquisition was provided by a consortium of capital sources under a private placement arrangement. Affiliates of The Herrick Company purchased the CVS portfolio from private equity firm Fortress Investment Group LLC.
“As demonstrated by this latest transaction, our firm's ability to close quickly on investment targets puts us at a distinct advantage in today's highly competitive marketplace,” continues Herrick, who is best known as a movie producer with such works as 2013’s Lone Solider to his name.
The Herrick Company is a real estate investment firm with offices in Boca Raton, Fla.; Cedar Knolls, N.J.; and Norwalk, Conn. The company primarily invests in single-tenant, long-term, net-leased assets in the retail, office and industrial sectors that are occupied by credit tenants, as well as hotels in major cities and prime undeveloped oceanfront and intercoastal land sites in Southeast Florida.
Herrick also builds and acquires green energy-related projects that utilize domestic, renewable fuel sources like biomass to produce electricity and alternative fuels, as well as building supplies. The company focuses on projects with power purchase agreements of 20 years or more.
Since 1960, the company has completed income property transactions that are valued at more than $3 billion. Herrick acts strictly as a principal and keeps its capital immediately available, should an opportunity happen to arise. The firm typically closes within 45 days.
Headquartered in Woonsocket, R.I., CVS Caremark is the largest pharmacy healthcare provider in the United States. The company operates approximately 68,000 retail pharmacies, including CVS/pharmacy stores and more than 800 MinuteClinic locations.
CVS maintains about 200,000 employees in 45 states, the District of Columbia and Puerto Rico. The company’s stock price closed at $73.07 per share on April 24, up from $57.94 per share a year ago.
— Nellie Day