Overview
Marcus & Millichap's Dougherty Team is offering 270 S Courtland Street in East Stroudsburg, Pennsylvania, a corporate-guaranteed CVS Pharmacy on an absolute NNN lease, priced at $3,250,000, a 5.33% cap rate on $173,170 in net operating income (reflecting the scheduled February 2027 rent increase). The 26,376 SF building with a drive-thru pharmacy sits on a 2.90-acre parcel with 140 parking spaces. CVS has operated here since 2002, and the lease has 15.4 years remaining through January 2042, with 10% rent increases every five years and two 5-year renewal options that could extend occupancy to 2052. The landlord has no responsibilities: the tenant covers taxes, insurance, CAM, roof, structure, parking lot, and HVAC. In-place rent of $6.57/SF is well below comparable CVS rents, and the large lot gives the site value as a covered land play with long-term redevelopment potential. The store is near Pocono Plaza, East Stroudsburg University, Lehigh Valley Hospital–Pocono, and I-80 (53,000 VPD), in a trade area supported by the Pocono Mountains' year-round tourism and a growing base of full-time residents.
Investment Highlights
COVERED LAND PLAY | BELOW-MARKET RENT | SIGNIFICANT UPSIDE POTENTIAL
• Large 2.90-acre parcel supporting a 26,376 SF building offers a rare covered land play, with redevelopment potential and additional sublease space to add tenant synergy down the line
• In-place rent of just $6.57/SF is dramatically below the comp set average of $20-21/SF for closed and on-market CVS sale comps nationally – substantial embedded rent growth potential as the lease resets
15.4-YEAR LEASE TERM REMAINING | RARE 10% RENTAL INCREASES
• Long-term income visibility through January 2042, with two additional 5-year renewal options extending potential occupancy through 2052
• Rent increases by 10% every 5 years throughout the remaining term and all option periods – a compelling, contractual inflation hedge
INVESTMENT-GRADE, ABSOLUTE NNN LEASE | 20+ YEAR OPERATING HISTORY
• Corporate-guaranteed lease backed by CVS Pharmacy, LLC (BBB, S&P) on an Absolute NNN basis – zero landlord responsibilities across taxes, insurance, CAM, roof, structure, parking lot, and HVAC
• CVS has operated at this location since 2002, demonstrating over two decades of proven commitment to the site and submarket
THRIVING RETAIL CORRIDOR | HIGH-PERFORMING NATIONAL TENANTS
• Positioned near Pocono Plaza (2 million annual visitors) featuring Giant (Top 6% nationally), Dollar Tree (Top 10% nationally), and Burger King (Top 15% nationally)
• Surrounded by additional top-tier national performers including Walmart, HomeGoods (Top 10% nationally), Wendy’s (Top 3% nationally), and Dairy Queen (Top 15% nationally)
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