Rite Aid filed for bankruptcy protection in October.
A&G Real Estate Advisors is selling additional store leases in connection with Rite’s Aid’s restructuring.
A&G is selling additional store leases in connection with the restructuring of Rite Aid.
Acting in its capacity as real estate advisor to Rite Aid, which declared bankruptcy in October, A&G is selling a second tranche of neighborhood pharmacy leases, pending approval by the U.S. Bankruptcy Court for the District of New Jersey. The tranche is comprised of 92 leases which will be available in private sales as part of the retailer’s financial restructuring process.
Including options, all the leases being marketed by Rite Aid boast more than 10 years of remaining term. The newly available leases are located in the following eight states:
•New Jersey (7)
•New York (11)
•Washington (6 Bartell Drugs, 4 Rite Aid)
The stores range from 5,000 sq. ft. to 33,548 sq.ft. The 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.
“The lack of new build of this type of product is driving demand for these leases,” said Andy Graiser, co-President of New York-based A&G. “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.”
As Rite Aid’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.”