CVS Drugstore
New
For Sale
$5,070,560
4300 Dixie Highway Waterford, Waterford, MI 48329
Corporate-guaranteed CVS tenancy is structured as an absolute NNN lease with approximately eight years remaining.
Property Size12,900 SF
Days on Market2
Property Features for 4300 Dixie Highway Waterford
General Information
Standard status
Active
Size
12,900 SF
Property subtype
Retail
Site & Location
Traffic Count
44,000 vehicles/day
Road Access
Yes
Building Details
Building Size
12,900 SF
Year Built
2009
Listing Agency:
CP Partners
Listed By:
Zeb Ripple · License #CalDRE #01242540
(415) 274-2702
Source:
Cppcre
Added: Sep 22
Last Checked: Sep 22 at 1:49PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of CP Partners
Investment Insights
Based on property information with market context.
Built in 2009, the property is occupied by CVS under a 25-year corporate absolute NNN lease with approximately 8 years remaining and no rent holiday. The agreement includes 10% rental escalations every 5 years through the option periods, and the tenant carries an S&P rating of BBB.
The property is positioned at the intersection of Dixie Highway and Sashabaw Road in Waterford Township, directly along Dixie Highway. Combined daily traffic at the intersection exceeds 44,000 VPD. Multiple points of ingress and egress, along with dedicated left-hand turn lanes, support site access.
The surrounding 5-mile radius includes more than 139,000 residents and average household incomes of $111,000. CVS operates more than 9,900 locations across 49 states, providing the lease with a corporate investment-grade tenant.
The property is positioned at the intersection of Dixie Highway and Sashabaw Road in Waterford Township, directly along Dixie Highway. Combined daily traffic at the intersection exceeds 44,000 VPD. Multiple points of ingress and egress, along with dedicated left-hand turn lanes, support site access.
The surrounding 5-mile radius includes more than 139,000 residents and average household incomes of $111,000. CVS operates more than 9,900 locations across 49 states, providing the lease with a corporate investment-grade tenant.
Key Highlights
- 25‑year corporate absolute NNN lease with approximately 8 years remaining
- CVS corporate guarantee with S&P rating of BBB
- 10% rental escalations every 5 years through the option periods
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$194,769
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.84%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,895,380
$3.9M
Cap Rate 7%
$2,782,414
$2.8M
Cap Rate 9%
$2,164,100
$2.2M
Market Conditions
NOI Build-Up for 12,900 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$278.6K $21.60/SF
− Vacancy
−$18.9K −$1.47/SF
EGI
$259.7K $20.13/SF
− OpEx
−$64.9K −$5.03/SF
NOI
$194.8K $15.10/SF
Area
Oakland County, MI
Vacancy
6.80%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,895,380
Cap Rate 7%
$2,782,414
Cap Rate 9%
$2,164,100
Alternative Uses
Best Use
Specialty Retail
$2.78M
$2.43M – $3.25M
NOI $194,769 @ 7.0% cap · market cap 3.84%
Second Best
Retail
$1.98M
$1.74M – $2.31M
NOI $138,809 @ 7.0% cap · market cap 2.74%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
44,000 VPD
Traffic count
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
599
Businesses Nearby
37k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 62%
Dining 38%
Taco Bell
Dining
11,467 visits/mo
0.4 miles
Genisys Credit Union
Shops & Services
7,746 visits/mo
0.0 miles
Family Dollar
Shops & Services
5,922 visits/mo
0.5 miles
BP
Shops & Services
5,162 visits/mo
0.5 miles
Chase Bank
Shops & Services
3,910 visits/mo
0.5 miles
Demographics for 48329, MI
24,391
Population
10,249
Households
2.4
Avg Household Size
45
Median Age
29%
College-Educated
94%
High-School Grad
10.3 sq mi
ZIP Area
2,368
Density / Sq Mi
$85,777
Median Household Income
$48,837
Median Earnings
$1,323
Median Rent
$245,800
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Similar Off Market Nearby
- CVS Pharmacy — 4300 Dixie Hwy, Waterford Twp, MI 48329
- Mark R. Comes, RPh — 4350 Dixie Hwy, Waterford Twp, MI 48329
- Hanadi Thomas — Rite Aid Pharmacy, 4350 Dixie Hwy, Waterford Twp, MI 48329
- Restorative Compounding Pharmacy + Wellness — 4450 Dixie Hwy Suite A, Waterford Twp, MI 48329
- Pritesh Patel, RPH — 4800 Dixie Hwy, Waterford Twp, MI 48329
Frequently Asked Questions
What type of property is this?
Drug store - Corporate-guaranteed CVS tenancy is structured as an absolute NNN lease with approximately eight years remaining.
Where is this drug store located?
The property is located at 4300 Dixie Highway Waterford Waterford, MI.
What is the asking price?
The asking price for this property is $5,070,560.
What are key features of this property?
This property features: 25‑year corporate absolute NNN lease with approximately 8 years remaining; CVS corporate guarantee with S&P rating of BBB; 10% rental escalations every 5 years through the option periods
