The Deal Story - CVS (Mahopac, NY)

In October of 2021, I had the opportunity to quarterback the acquisition of a NN-leased CVS asset in Mahopac, NY. We worked directly with the seller, a NY-based family.


This property was a strong acquisition target for Ocean Block Capital for a variety of reasons. This CVS is in the heart of a town with strong demographics that is just north of New York City. In addition to its strategic position within the Mahopac market, the asset is situated on a healthy lot size that sees above-average traffic counts. Beyond the real estate itself, CVS is an investment-grade tenant and has been deemed an essential business, further strengthening the long-term outlook of the asset.


Despite its attractive qualities, this asset did involve some challenges. Most notably, the building does not feature a drive-thru component. The importance of a drive-thru was highlighted during the pandemic as it allowed customers to access necessities while maintaining a safe social distance. For many net lease investors, this has the potential to be a deal-breaker, however, I was able to get our team comfortable with the asset through creative underwriting and rigorous market research. 


The ownership group was a small family that was divesting a portion of their portfolio. Prior to this transaction, their priority was finalizing a separate sale so I maintained a strong relationship with the seller for nearly two years until the family was finally in a position to move forward with a sale of this asset. 


As we navigated through one of the most uncertain and volatile periods of time (COVID-19), I maintained consistent contact with the seller and was transparent with our underwriting process and valuation methodology. As soon as the family was prepared to move forward, we executed the closing process in a smooth and efficient manner. Despite being an essential business, this deal required a great deal of creative thinking and problem solving, given the complications affecting the market, the lack of mobility, and the owners’ situation.


In the end, the transaction was a success for both the purchaser and the seller. At Ocean Block Capital, we value owning strategically positioned properties in compelling markets, such as Mahopac. The inherent risks to this property may have discouraged other investors, but our ability to reposition riskier assets allows us to unlock value where others may be unable to. Furthermore, we are very pleased to add another asset so close to home to the portfolio.