CVS completes $29 Million Sale Leaseback of 8 Stores

Pacific Business News (Honolulu) - Sept 15, 2003

Honolulu, Hawaii-based Persis Corp. has completed a $29 million sale-leaseback transaction of eight new retail properties in five states with public traded CVS Corp.

CVS Corp. developed the properties, then sold them to Persis to satisfy the requirements of a 1031 exchange. In exchange, CVS signed 25-year absolute net leases for all of the properties. Under the terms, the landlord is not responsible for repair, maintenance, replacement or other property expenses.

Persis CEO Michael Pfeffer said the company was pleased with the risk profile of the investment. 'A sale-leaseback transaction with the tenant allowed us to achieve our yield requirements in a highly priced commercial real estate market,' said Easton Manson of Persis Asset Advisors. 'The term of the lease and credit of the tenant also allowed our lender, CSFirstBoston, to maximize the liquidity available to Persis.'

Persis has slowed its acquisitions due to high prices and a lower yielding commercial real estate market. Persis is a privately held family company established in Honolulu in 1856. The company owns and manages more than 2 million square feet of distribution, office and retail facilities nationwide. Sphere: Related Content