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CHEWY INC. - PHARMACY COMPOUNDING - Mission C 3621 Fern Valley Rd 25,274 SF Flex Building Louisville, KY 40219 $10,584,900 CAD ($418.81 CAD/SF) 6.80% Cap Rate
INVESTMENT HIGHLIGHTS
- Corporate-guaranteed lease to Chewy (NYSE: CHWY) with 3.5 years remaining, 2.5% bump, 2x5 renewal options. | MG Lease w/ 2019 Base Year Expense Stops
- Strategically located in KY, with favorable mail-order pharmacy laws enable Chewy to distribute Compounded Veterinary Medications across the USA.
- Chewy holds expansion rights for an additional 10,000 SF, supporting future growth as the nation’s #1 pet pharmacy.
- Mission-critical facility - Chewy’s exclusive Compounding Pharmacy and call center; supports the company’s highest-margin business segment
- Adjacent to UPS Worldport, processing 400,000+ packages per hour—ideal for time-sensitive pharmaceutical fulfillment.
- Located near I-65 and a high-traffic intersection (200,000+ VPD) in Louisville—one of the top three U.S. office markets with sub-6.0% vacancy.
EXECUTIVE SUMMARY
Serving as Chewy’s core compounding pharmacy, the facility plays a key role in the company’s growing pharmacy operations, aided by Kentucky’s participation in the FDA's 503A MOU enabling higher interstate shipments of compounded pet medications, positioning it perfectly for this role. The location also carries a PCAB accreditation, a rare distinction for exceptional quality and safety in veterinary compounding, increases switching costs and tenant stickiness. With Chewy’s pharmacy segment now a major contributor to its projected $12.3 billion FY2025 revenue, this property is a key long-term asset providing specialized infrastructure and compliance. A substantial value-add potential (12-15% IRR) comes from Chewy’s option to expand by 10,000 square feet, highly probable given the building’s geography, state regulations and home base for the highest-margin segment of their business.
Located near Interstate 65 (200,000 vehicles daily) and a signalized intersection (52,000 vehicles daily) in a bustling, densely populated trade area, the property gains from Louisville’s top-three U.S. office market status with sub-6.0% vacancy, reflecting strong regional fundamentals.
PROPERTY FACTS
MAJOR TENANTS
- TENANT
- INDUSTRY
- SF OCCUPIED
- RENT/SF
- LEASE TYPE
- LEASE END
-
- Services
- 25,274 SF
- -
- Modified Gross
- Apr 2029
Chewy's mission is to be the most trusted and convenient destination for pet parents (and partners) everywhere. They view pets as family and are obsessed with meeting their needs and exceeding customer expectations through every interaction. Launched in 2011, Chewy offers the personalized service of a neighborhood pet store alongside the convenience and speed of e-commerce. Customers love shopping their wide selection of products, including their Private brands and prescription Rx food and Rx medication products, which they offer at competitive prices, fast 1-2 day shipping and around-the-clock convenience that only e-commerce can offer. As an e-commerce company, product innovation drives their operations, and their team is constantly striving to find new and better ways to improve customers’ experience. From an easy to navigate website and highly rated mobile apps, to detailed order tracking and personalized “Pet Profile” features, they are transforming the way pet parents shop.
| TENANT | INDUSTRY | SF OCCUPIED | RENT/SF | LEASE TYPE | LEASE END | |
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Services | 25,274 SF | - | Modified Gross | Apr 2029 |
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CHEWY INC. - PHARMACY COMPOUNDING - Mission C | 3621 Fern Valley Rd
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