INVESTMENT OFFERING

SAB Capital, is pleased to present the exclusive offering of a single-tenant, net-leased CVS Pharmacy located in North Webster, Indiana. The Property is secured by CVS Health Corporation, an investment-grade rated tenant (S&P: BBB / Moody’s: Baa2), and benefits from a recently executed lease amendment in 2021 that reestablished a new 20-year primary term, providing approximately 15 years of remaining lease term and long-term income stability.

The investment is structured as an absolute net lease, offering a truly passive ownership experience with zero landlord responsibilities. CVS is responsible for all operating expenses, including taxes, insurance, and maintenance, delivering durable, bond-like cash flow backed by one of the nation’s leading pharmacy operators.

What differentiates this opportunity is its below-market rent profile. The property is leased at $100,100 annually ($9.93/SF), representing a meaningful discount to prevailing market rents of approximately $12/SF. This creates an embedded margin of safety and positions the asset for longterm upside, whether through mark-to-market potential or enhanced residual value. Unlike many net lease investments that trade at or above market rents, this offering provides a basis-driven investment thesis with both downside protection and future optionality.

The Property is strategically situated on ±1.59 acres with dual frontage along S Main Street (State Road 13) and Effie Mae Street, offering strong visibility and accessibility in a proven retail corridor. CVS has successfully operated at this location for over 20 years, reinforcing the site’s viability and importance as a local healthcare and convenience retail destination.

This offering presents investors with the rare opportunity to acquire a long-term, investment-grade net lease with a recent lease reset, below-market rent, and strong underlying real estate fundamentals. The combination of passive income, tenant credit quality, and favorable basis positions the asset as a compelling addition to both income-focused and value-oriented portfolios.

• Long-Term Absolute Net Lease to Investment Grade Credit
  • CVS Health Corporation (S&P: BBB / Moody’s: Baa2) guarantees the lease, providing durable,
    investment-grade income backed by the nation’s leading pharmacy operator.
• Recent Lease Reset Extending Term Through 2041
  • The 2021 lease amendment reestablished a 20-year primary term, delivering ±15 years of
    remaining lease term and eliminating near-term rollover risk.
• Below-Market Rent with Embedded Upside
  • The property is leased at $100,100 annually ($9.93/SF), representing a meaningful discount
    to market rents of approximately $12/SF. This below-market basis provides a built-in markto-
    market opportunity and enhances long-term residual value.
• True Passive Income
  • The lease is structured as an absolute net lease with zero landlord responsibilities, insulating
    ownership from operating expenses, capital expenditures, and inflationary cost pressures.
• Mission-Critical Location with 20+ Year Operating History
  • CVS has successfully operated at this location since 2003, demonstrating long-term
    commitment and reinforcing the site’s role as a critical healthcare and convenience retail hub.
• Strong Site Fundamentals with Excellent Accessibility
  • Situated on ±1.59 acres with dual frontage along S Main Street (State Road 13) and Effie
    Mae Street, the property benefits from strong visibility and accessibility with traffic counts of
    10,262 VPD.
• High-Functioning Retail Prototype with Drive-Thru
  • The ±10,083 SF freestanding building includes a drive-thru pharmacy and ±62 parking spaces
    (~6.1/1,000 SF), supporting efficient operations and consistent customer demand.
• Seasonal Demand Driven by Webster Lake Tourism
  • Property benefits from significant summer population inflows associated with Webster
    Lake, driving increased retail demand and supporting store performance beyond base
    demographics.