17651 Redland Rd
Derwood, MD 20855

Marcus & Millichap, on behalf of ownership, is pleased to exclusively offer the ground leased interest in this CVS pharmacy (NYSE:CVS) located in Derwood, Maryland, an affluent Washington, D.C. sub-market. This newly constructed CVS is a relocation from an inline space in the neighboring Red Mill Shopping Center. The inline store was rumored to be doing strong sales volume, and one can expect sales will only increase in this more prominent location which will feature a drive-thru. The Tenant is subject to a new 25-year NNN ground lease that features a 12 percent rental increase in the 1st option period and 10 percent rental increases in the four option periods thereafter; a preferred feature. The lease is guaranteed by CVS Health Corporation, who is investment grade, rated “BBB” by Standard & Poor’s. CVS Health Corporation is currently the largest pharmacy chain in the United States and ranks as the seventh largest Corporation by Fortune 500. The Property is strategically positioned at the signalized intersection of MD Route 115 and Redland Road, a high traffic location that averages more than 33,000 vehicles per day. The newly constructed store occupies a large 1.22-acre corner parcel with prominent visibility and access from both Route 115 and Redland Road. It is noteworthy that single-tenant new construction opportunities such as this are rare in Montgomery County, and the larger D.C. metro area. Land costs are prohibitive and time frames for new development to occur commonly runs 24-48 months from project initiation. Store is projected to open February of 2019. The Tenant is adjacent to the formerly mentioned Red Mill Shopping Center, a 43,400-square foot center with nationally recognized retailers McDonald’s, Subway, Allstate, The UPS Store and Verizon Wireless, and surrounded by a dense residential concentration of 2,132 households in the one-mile radius. Townhomes and other commercial uses immediately surround the site as the area is infill and mature. This area of Montgomery County is situated 24 miles north of Washington, DC. It has benefited from the opening of the Inter-County Connector (ICC) in 2011 which facilitates east-west traffic between Interstate-95 and Interstate-270, both spokes off the Capital Beltway. The immediate three-mile submarket features 80,750 people and an average household income of $137,445. It has seen significant population growth (11%) since 2000, and is projected to increase nearly six percent in the next five years. Greater Montgomery County is the most populous county in the state, home to over 1 million residents. It features major federal employers National Institutes of Health, U.S. Food & Drug Administration and Bethesda Naval Hospital, and private employers Marriot International and Lockheed Martin which provide a significant amount of revenue for the county. As one of the most affluent counties in the country, ranked the #19th by Median Household Income, Montgomery County also has the highest percentage of residents over 25 years of age who hold a Bachelor’s Degree or higher.