Good Day Pharmacy

Loveland, Colorado

Offering Materials

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Offering Highlights

$1,900,000 | 6.72% Cap Rate | 6,185 SF Net Lease Medical Office

LC Real Estate Group is pleased to present the opportunity to purchase a multi-tenant net lease medical office building anchored by a long standing regional pharmacy with new ten year lease and a corporate guarantee known as Good Day Pharmacy.
The Good Day Pharmacy building located in a highly desirable area of central Loveland on the southwest corner of North Boise Avenue and East 21st Street, directly across the street from McKee Medical Center, a major area hospital operated by Banner Health. East Eisenhower Boulevard,
with traffic counts of over 39,000 per day, is the main east-west six lane arterial road that connects Interstate 25 to the east and US Highway 287 to the west and is due south of the property.
Good Day Pharmacy building is a 6,185 SF two-story medical office building constructed in 1984 and has been updated several times during the life of the building. Good Day Pharmacy leases 2,600 SF of space and has occupied the building since 1988 along with Loveland Youth Clinic, which leases 3,585 SF of space and has occupied the building since 2003.

  • Good Day Pharmacy is a long term tenant of more than thirty four (34) years at property, with recently signed new ten (10) year lease
  • Strong corporate guarantee from Good Day Pharmacy, a large privately owned regional pharmacy established in 1986 with eleven locations across Northern Colorado and more than $37 million in sales in 2021
  • Good Day Pharmacy annual rent of $58,108 ($22.35/SF NNN) years one (1) through five (5) with 2.0%annual increases years six (6) through ten (10)
  • Good Day Pharmacy has two (2) five (5) year options with 2.0% annual increases
  •  Loveland Youth Clinic a long term tenant of more than nineteen (19) years at property provides pediatric healthcare services and has been in business since 1975
  • Loveland Youth Clinic annual rent of $53,085 ($14.81/SF NNN) on an informal month to month lease since 2013 with historical 4.0% annual increases
  • Owner missed billing Loveland Youth Clinic a prior rent increase and has a fourteen (14) month repayment agreement from May 2022 through July 2023 for $17,481 or $1,248 per month
  • Leases are Triple Net (NNN) lease structure with limited landlord responsibilities for capital repair & replacement of roof, structure, parking lot, and HVAC and tenant responsible for ongoing repairs & maintenance

Capitalization (Cap) Rate:

  • 6.72% Capitalization Rate on Current Income
  • 7.19% Year 10 Capitalization Rate

Unleveraged Internal Rate of Return (IRR):

  • 6.8% 5 Year Unleveraged IRR
  • 7.8% 10 Year Unleveraged IRR

Leveraged Equity Multiple:

  • 1.69x 6 Year
  • 2.50x 10 Year
Nathan Klein

Nathan Klein

Senior Partner
Managing Broker

(970) 222-2473
Wayne Lewis

Wayne Lewis

Senior Partner
Senior Broker

(970) 440-3250