Rite Aid Corp. recently announced plans to market for sale an additional tranche of neighborhood pharmacy leases, pending approval by the U.S. Bankruptcy Court for the District of New Jersey, according to A&G Real Estate Partners, which is acting as an adviser to the struggling drugstore chain.
The latest grouping comprises 79 store leases (including six in New Jersey) that will be made available in private sales, pending court approval. This tranche follows the 92 store leases that became available on Nov. 15.
To date, A&G has marketed 180 Rite Aid and Bartell Drugs leases, 73 of which have been removed due to a sale or rejection of the lease.
In connection with 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 process, Rite Aid continues to assess its property portfolio and may close additional stores to optimize its real estate footprint and improve its overall financial performance.
Including options, all leases being marketed by Rite Aid — the third-largest drugstore chain in the U.S. — boast more than 10 years of remaining term. The newly available leases are located in the following 11 states:
- California (11)
- Connecticut (5)
- Maryland (1)
- Michigan (11)
- New Jersey (6)
- New York (3)
- Ohio (9)
- Oregon (4)
- Pennsylvania (11)
- Virginia (7)
- Washington (11)
Within this new grouping of available leases, the stores range from 5,502 to 31,468 square feet. The highly visible sites include 53 freestanding locations (41 of which offer attached one- or two-lane drive-throughs). Nineteen stores are located in strip or power centers, and seven are in central business districts.
Meanwhile, A&G continues to market previously announced Rite Aid leases and fee-owned properties.
“The fee-owned properties have generated strong interest among investors and operators across the country,” Andy Graiser, co-president of New York-based A&G, said. “We continue to entertain offers on these locations.”
As the company’s restructuring process moves forward, A&G may 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.”
