— Initial offering to comprise 78 store leases and 21 fee-owned stores and land parcels across 12 states, with additional lease and property dispositions to follow
PHILADELPHIA, Oct. 17, 2023 /PRNewswire/ — A&G Real Estate Partners, in its capacity as real estate advisor to Rite Aid Corporation (the “Company”), today announced plans to market for sale 78 Rite Aid and Bartell Drugs neighborhood pharmacy leases, as well as 21 fee-owned properties, pending approval by the U.S. Bankruptcy Court for the District of New Jersey.
The initial leases and properties are available in private sales, pending court-approval, as part of Rite Aid’s financial restructuring process. As it moves through this process, the Company will continue assessing its property footprint and close additional stores to improve its overall financial performance.
“Rite Aid, which operates more than 2,100 retail pharmacy locations across 17 states, is working collaboratively with its financial stakeholders to reduce its debt and position its business for success,” said Andy Graiser, Co-President of New York-based A&G. “Portfolio optimization is a powerful and essential part of that go-forward strategy.”
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 initial leases are located in the following nine states:
- California (16)
- Maryland (4)
- Michigan (15)
- New Jersey (6)
- New York (14)
- Ohio (1)
- Oregon (1)
- Pennsylvania (12)
- Washington (6 Rite Aid, 3 Bartell Drugs)
In addition, A&G is offering on behalf of the Company 21 fee-owned properties (both stores and land) in the following 11 states:
- Alabama (1)
- California (1)
- Idaho (1)
- Michigan (1)
- New Hampshire (2)
- New Jersey (2)
- New York (3)
- Ohio (3)
- Oregon (1)
- Pennsylvania (5)
- Washington (1)
The owned and leased stores range from 6,400 to 37,154 feet. Some are located in downtowns, strip centers and power centers, while others are freestanding—including high-visibility stores with drive-thru windows.
“In the highly competitive national chain drugstore business, finding prominent, high-quality real estate has always been a top priority, and the locational characteristics of many of Rite Aid’s stores are part of what make this such an extraordinary opportunity for retailers, restaurants and real estate investors,” noted A&G Senior Managing Director Todd Eyler.
“The size ranges of these properties are in high demand among potential replacement users—a list that includes dollar stores, gyms, grocers, specialty discount stores and fast-growing quick-serve restaurants,” said A&G Senior Managing Director Mike Matlat. “We anticipate robust interest from a wide array of retail operators, as well as non-retail medical, health, wellness and service-related businesses.”
As the Company’s restructuring process moves forward in the weeks ahead, A&G will market additional leases, with the total number depending on the outcome of ongoing negotiations between A&G and Rite Aid landlords. The quickly moving plan centers on exiting certain locations to ensure optimal performance of Rite Aid’s real estate footprint.
“Our role also includes advising on lease portfolio optimization as Rite Aid strengthens its overall financial performance by reducing its rent expenses while continuing to meet the needs of its customers, communities and associates,” Graiser said. “As it does so, other retailers and investors will gain access to some strong locations, in many cases with complementary co-tenants, in attractive markets across the United States.”
For additional details, visit https://www.agrep.com/index.php/rite-aid and/or contact Mike Matlat, (631) 465-9508, [email protected], or Todd Eyler, (914) 325-1602, Senior Managing Director, [email protected].
Media Contacts: At Jaffe Communications, Elisa Krantz, (908) 789-0700, [email protected].
SOURCE A&G Real Estate Partners
Originally published at https://www.prnewswire.com/news-releases/ag-announces-plan-to-sell-certain-company-owned-store-leases-and-properties-in-connection-with-rite-aids-financial-restructuring-301958226.html
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