A&G Real Estate Partners, in its capacity as real estate advisor to Rite Aid Corporation, announced plans to market for sale a second tranche of neighborhood pharmacy leases, pending approval by the U.S. Bankruptcy Court for the District of New Jersey.
The tranche comprises 92 leases, which will be available in private sales, pending court approval, as part of Rite Aid’s financial restructuring process. The company is working collaboratively with its financial stakeholders to reduce its debt and better position its business for long-term success. As part of this, Rite Aid is continuing to assess its property portfolio and will close additional stores to optimize its real estate footprint and improve its overall financial performance. This newest grouping of leases follows A&G’s prior offerings announced on Oct. 17, 2023.
“The lack of new build of this type of product is driving demand for these leases,” Andy Graiser, co-president of A&G, said. “We continue to be pleased by the strong interest we are receiving across the country from potential replacement users.”
Including options, all leases being marketed by Rite Aid—the third-largest drugstore chain in the United States—boast more than 10 years of remaining term. The newly available leases are located in the following eight states:
- California (17)
- Maryland (6)
- Michigan (22)
- New Jersey (7)
- New York (11)
- Ohio (2)
- Pennsylvania (17)
- Washington (6 Bartell Drugs, 4 Rite Aid)
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The stores range from 5,000 to 33,548 square feet. The highly visible sites include 53 freestanding locations, all but nine of which offer attached one- or two-lane drive-throughs, as well as 36 stores located in strip or power centers. Three of the locations are in central business districts.
As the company’s restructuring process moves forward, A&G will market additional leases, with the total number depending on the outcome of ongoing negotiations between A&G and Rite Aid landlords.
“In consultation with A&G, Rite Aid is working to strengthen its overall financial position by reducing its rent expenses and optimizing its portfolio,” Graiser said. “As it does so, other retailers and investors are now able to acquire leases and properties that once were out of reach locations, in attractive markets across the United States.”
