Freestanding CVS Pharmacy Ground
For Sale
Contact for pricing
Pending
5305 Montana Ave, El Paso, TX 79903
Long-term NNN leased CVS Pharmacy in El Paso, Texas.
Property Size9,516 SF
Lot Size1.30 Acres
Days on Market138
Property Features for 5305 Montana Ave
General Information
Standard status
Pending
Size
9,516 SF
Lot size
1.30 Acres
Property subtype
Retail
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Net Lease
Net Operating Income
$187,000
Building Details
Year Built
2017
Tenancy
Single
Listing Agency:
Cushman & Wakefield - San Francisco, California
Listed By:
Christopher Sheldon · License #CA 01806345
Source:
Crexi
Added: Mar 27
Changed: Aug 8
Last Checked: Aug 10 at 1:23PM
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 Cushman & Wakefield - San Francisco, California
Investment Insights
Based on property information with market context.
This commercial real estate offering features a long-term absolute NNN leased CVS Pharmacy ground lease investment opportunity in El Paso, Texas. Completed in 2017, the property includes a 1.30-acre parcel improved with a 9,516 square-foot freestanding CVS Pharmacy with a drive-thru. The property is ground leased to CVS Pharmacy through January 31, 2043, with nine five-year renewal options, each including 10% rent increases. The lease is absolute net (NNN), with the tenant responsible for all taxes, insurance, and maintenance, including roof and structure. The property is strategically located at the high-traffic signalized intersection of Montana Avenue and Chelsea Street, with combined traffic counts exceeding 27,100 vehicles per day. It is also located less than 2 miles from the Bridge of the Americas (BOTA). Montana Avenue is a major east-west arterial connecting East El Paso with the broader regional transportation network, while Interstate 10 and US Highway 54 (Patriot Fwy) provide direct access to Downtown El Paso, Fort Bliss, El Paso International Airport, and the U.S.–Mexico border. The immediate area includes multiple shopping centers anchored by Target, Costco, Albertson’s, and Kohl’s, and numerous auto dealerships for Ford, Chevrolet, Nissan, Kia, BMW, Audi and Toyota. Neighboring tenants at the intersection include Walgreen’s, Dutch Bros, Albertson’s, Wingstop, Jack in the Box, Subway, and Pizza Hut.
Key Highlights
- Long‑term absolute NNN ground lease with CVS Pharmacy through January 31, 2043.
- Located at a high‑traffic, signalized intersection with over 27,100 VPD.
- Features nine (9) five‑year renewal options with 10% rent increases at the start of each option.
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
$141,826
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
3.95%
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%
$2,836,520
$2.8M
Cap Rate 7%
$2,026,086
$2.0M
Cap Rate 9%
$1,575,844
$1.6M
Market Conditions
NOI Build-Up for 9,516 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
$205.5K $21.60/SF
− Vacancy
−$16.4K −$1.73/SF
EGI
$189.1K $19.87/SF
− OpEx
−$47.3K −$4.97/SF
NOI
$141.8K $14.90/SF
Area
El Paso, TX
Vacancy
8.00%
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%
$2,836,520
Cap Rate 7%
$2,026,086
Cap Rate 9%
$1,575,844
Alternative Uses
Best Use
Specialty Retail
$2.03M
$1.77M – $2.36M
NOI $141,826 @ 7.0% cap · market cap 3.95%
Second Best
Retail
$1.54M
$1.35M – $1.80M
NOI $107,911 @ 7.0% cap · market cap 3.00%
Theoretical Best
Office A
$2.39M
$2.09M – $2.79M
NOI $167,114 @ 7.0% cap · market cap 4.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,431
Businesses Nearby
168k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 45%
Shops & Services 27%
Groceries 24%
Home Improvements & Furnishings 3%
McDonald's
Dining
45,606 visits/mo
0.4 miles
Food King
Groceries
36,643 visits/mo
0.3 miles
Dollar Tree
Shops & Services
16,031 visits/mo
0.2 miles
Burger King
Dining
11,485 visits/mo
0.4 miles
Dollar General
Shops & Services
7,891 visits/mo
0.4 miles
Demographics for 79903, TX
16,425
Population
6,708
Households
2.4
Avg Household Size
44
Median Age
16%
College-Educated
74%
High-School Grad
3.0 sq mi
ZIP Area
5,475
Density / Sq Mi
$38,294
Median Household Income
$24,288
Median Earnings
$883
Median Rent
$118,300
Median Home Value
Market
Vacancy Rate% for Retail in El Paso, TX
Questions? Ask Rey
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Similar Off Market Nearby
- University Medical Center of El Paso - Main Campus Pharmacy — 4824 Alberta Ave, El Paso, TX 79905
- American Star pharmacy — 6028 Surety Dr ste a, El Paso, TX 79905
- Christopher Medlin — 4815 Alameda Ave, El Paso, TX 799052705
- The Nutrition Station — 5736 Trowbridge Dr, El Paso, TX 79925
- VIVRI USA. EL PASO, TEXAS (CENI) — 5858 Gtwy Blvd E Suite 4, El Paso, TX 79905
Frequently Asked Questions
What type of property is this?
Drug store - Long-term NNN leased CVS Pharmacy in El Paso, Texas.
Where is this drug store located?
The property is located at 5305 Montana Ave El Paso, TX.
What is the asking price?
The asking price for this property is $3,595,000.
What are key features of this property?
This property features: Long‑term absolute NNN ground lease with CVS Pharmacy through January 31, 2043.; Located at a high‑traffic, signalized intersection with over 27,100 VPD.; Features nine (9) five‑year renewal options with 10% rent increases at the start of each option.
