| Metric | Details |
|---|---|
| Entity / Legal Name | Oak Street Health, Inc. and subsidiaries such as Oak Street Health LLC (indirect subsidiaries of CVS Health Corporation) |
| Parent Company | CVS Health (NYSE: CVS) |
| Credit Ratings (parent CVS Health Corporation long-term debt) | S&P: BBB (Stable) / Moody’s: Baa3 (Stable) / Fitch: BBB (Negative); no verified rating for Oak Street Health itself |
| Investment Grade Status | Parent Rated Investment Grade (CVS Health Corp.); confirm the lease guarantor |
| Sector | Healthcare / Value-Based Primary Care |
| US Location Count | CVS Health’s Health Services segment leases 246 primary care centers across 27 states (CVS Form 10-K for 2025) |
| Median asking cap rate | Too few Oak Street Health listings with an asking cap rate to report a median |
| Lease Term | Varies by lease; confirm the remaining term in the lease |
| Guarantee Type | Varies by lease; confirm the tenant entity and any guarantor |
| Building Size | Varies; CVS’s Health Services segment leases 246 primary care centers totaling about 2.2 million SF, about 8,900 SF on average (CVS Form 10-K for 2025) |
Oak Street Health Business Overview & NNN Investment Profile
Oak Street Health is a value-based primary care provider for Medicare-eligible adults; CVS Health reports that its Health Services segment leases 246 primary care centers across 27 states (Form 10-K for 2025). Oak Street was founded in 2012 and is based in Chicago (Oak Street Health Form 10-K for 2022). CVS reports that it operates in value-based care primarily through its Oak Street Health centers and contracts with health plans and CMS to generate medical cost savings and assume full financial risk for its patients (Form 10-K for 2025). On May 2, 2023, CVS Health completed its acquisition of Oak Street Health, which CVS had announced at an enterprise value of approximately $10.6 billion, making it a wholly owned subsidiary of CVS Health (CVS Form 8-K, May 2, 2023).
CVS describes Oak Street’s centers as retail-like, community-based centers; its Health Services segment’s 246 leased primary care centers total about 2.2 million square feet, or about 8,900 square feet on average (Form 10-K for 2025). Oak Street reported more than 90% of its centers in medically underserved census tracts (Form 10-K for 2022). As of December 31, 2022, about 42% of Oak Street’s patients were also Medicaid enrollees, and its care model included behavioral health and social determinant support (Form 10-K for 2022). Lease terms and guarantees vary by property; since the 2023 acquisition, Oak Street has been owned by CVS Health, whose long-term debt ratings are investment grade.
We have no verified public credit rating for Oak Street Health itself. Oak Street is a wholly owned subsidiary of CVS Health (NYSE: CVS), whose long-term debt ratings (S&P BBB (Stable), Moody’s Baa3 (Stable), Fitch BBB (Negative)) are investment grade. Those ratings support an Oak Street lease only where CVS Health Corporation signs or guarantees it. CVS Health reported total revenues of $402.1 billion for 2025. However, NNN investors must carefully evaluate the specific guarantee structure on each Oak Street lease: some leases may be guaranteed by the Oak Street Health entity rather than directly by CVS Health Corporation, which could carry different credit implications. Additionally, CVS reports that in the third quarter of 2025 it determined it would close certain existing Oak Street Health clinics in 2026 and reduce the number of new primary care clinics it opens in 2026 and annually thereafter (Form 10-K for 2025).
Why Oak Street Health Matters for NNN Investors
Oak Street uses a value-based care model: CVS says it integrates population health analytics, social support services and primary care into the care model and contracts with health plans and CMS to generate medical cost savings (Form 10-K for 2025). Demand for facilities built for this model depends in part on Medicare reimbursement and on CVS’s plans, which call for fewer new primary care clinics in 2026 and annually thereafter. Oak Street has described its centers as providing community spaces for seniors to gather (Form 10-K for 2022).
CVS ownership supports an Oak Street lease only where CVS Health Corporation signs or guarantees it. CVS reports that its Health Care Delivery reporting unit continued to experience challenges in 2025, including persistent elevated utilization levels, and that Omnicare, LLC, a CVS subsidiary that conducted long-term care pharmacy operations, initiated Chapter 11 proceedings on September 22, 2025 (Form 10-K for 2025). Owners whose Oak Street leases CVS guarantees should follow CVS’s filings. Confirm whether a specific center is affected by the planned 2026 closures before buying.
Cap Rate Analysis & Pricing for Oak Street Health NNN Properties
Live asking cap rates for Oak Street Health and comparable tenants:
| Tenant | S&P / Moody’s | Median asking cap rate | Middle half of listings | Listings | Median vs. 10-year Treasury |
|---|---|---|---|---|---|
| CVS | BBB / Baa3 | 6.50% | 6.00% to 7.15% | 149 | +126 bps |
| Concentra | BB / n/a | 6.57% | 6.26% to 6.85% | 6 | +133 bps |
| DaVita | BB / n/a | 6.75% | 6.15% to 7.30% | 37 | +151 bps |
Active listings InvestmentGrade.com tracks with an asking cap rate (stated in the listing, or computed from its stated income and price when no rate is stated), listings last observed October 12, 2026. Asking cap rates are not closed-sale cap rates. The middle half is the range from the 25th to the 75th percentile of listings. The 10-year Treasury yield is 5.24% as of October 1, 2026 (FRED series DGS10). Ratings are the agency ratings in our ratings database for the entity shown, which may be a parent company; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company and is shown on each tenant page. A rating applies to a lease only if the rated entity signs or guarantees it, so confirm the tenant and any guarantor in the lease. n/a means no verified rating is on file. Not shown because fewer than 3 active listings with a published cap rate were observed: Oak Street Health.
The median asking price of the Oak Street Health listings we track is $4.36M; pricing depends on the center size, market, and lease terms. Longer remaining terms and stronger markets can support higher pricing; compare each center with current listings.
| Comparable Healthcare NNN Tenant | S&P / Moody’s |
|---|---|
| CVS Health (Parent) | BBB/Baa3 |
| Concentra Urgent Care | BB |
| DaVita Dialysis | BB |
We have no verified public credit rating for Oak Street Health itself. It is a wholly owned subsidiary of CVS Health, whose long-term debt is rated S&P BBB / Moody’s Baa3; those parent ratings are investment grade. The specific guarantee structure on each lease determines whether the full CVS Health credit applies or whether the obligation sits at the Oak Street entity level.
What asking cap rates do Oak Street Health NNN properties show?
Too few Oak Street Health listings with an asking cap rate are active to report a median; the live table on this page shows comparable tenants. Pricing for a specific property depends on the remaining lease term, rent level, location and lease guarantor, and asking cap rates are not closed-sale cap rates.
Oak Street Health Net Lease Property: Buying, Selling and Financing
Buying: We find on-market and off-market Oak Street Health properties, review the lease and the tenant’s credit, and compare pricing with current listings. On the majority of transactions, there is no separate fee to you as the buyer; the listing broker pays a cooperating commission.
Selling: We can prepare an opinion of value from current listings and recent sales and, when it fits your goals, run a confidential sale to private investors, family offices and institutional buyers. See our guide to off-market sales.
Financing: Investment Grade Capital, a service of Investment Grade LLC, matches buyers and owners with lenders for acquisitions and refinancing.
1031 exchanges: Tell us your identification and closing deadlines so we can plan the search around them.
Request an NNN investment consultation or email team@investmentgrade.com.
Related NNN Tenants
- Ascension
- Aspen Dental
- Athletico
- BioLife Plasma
- Concentra
- Corewell Health
- CSL Plasma
- DaVita Dialysis
- EyeCare Partners
- Fresenius
- Grifols
- Henry Ford Health
- HCA Healthcare
- Heartland Dental
- Mary Washington Healthcare
- McLaren Health Care
- Piedmont Healthcare
- Sparrow Health
- Trinity Health
- U of M Health
- University of Pittsburgh Medical Center (UPMC)
- Acadia Healthcare
- AFC Urgent Care
- ATI Physical Therapy
- CityMD / Summit Health
- Encompass Health
- Fast Pace Urgent Care
- MedExpress Urgent Care
- MyEyeDr
- NextCare Urgent Care
- Octapharma Plasma
- Pacific Dental Services
- Select Physical Therapy
- Smile Brands
- VCA Animal Hospitals
- WellNow Urgent Care
- Banfield Pet Hospital
- Labcorp
- National Vision
- Quest Diagnostics
1031 buyer benchmark: compare the healthcare credit before chasing yield
For 1031 replacement-property decisions, where replacement property must be identified within 45 days after the relinquished property is transferred (IRC 1031(a)(3)), Oak Street Health should be benchmarked against both the healthcare credit peer set and the broader NNN cap-rate market, not viewed as just another medical tenant. Start with the best investment grade NNN tenants for 1031 exchange shortlist, then compare current pricing against the 2026 NNN cap-rate framework.
The practical screen is simple: confirm the lease obligor, parent guarantee, remaining term, rent bumps, facility reuse, and whether the cap-rate spread compensates you for any market or facility-level risk. For healthcare NNN buyers, credit quality is the starting point; real estate reuse and exit liquidity still decide whether the replacement property belongs on the ID list.
Oak Street Health NNN Properties Observed For Sale
2 active Oak Street Health net lease listings observed across public listing sources, most recently Oct 9, 2026. Asking figures as published by the listing party.
| Location | Asking Price | Cap Rate | Building SF | Term Left | |
|---|---|---|---|---|---|
| Kansas City, KS | $3,997,241 | 7.25% | 8,400 | 14.2 yrs | View listing |
| Indianapolis, IN | $4,714,286 | 7.00% | 12,424 | 12.3 yrs | View listing |
Search all 2 observed Oak Street Health listings and the full NNN inventory
Market observations aggregated from listing broker materials; not offerings by Investment Grade Income Property, LP. Buyer representation available on a cooperating commission basis. Information deemed reliable but not guaranteed.
