Two different Rite Aid pharmacies in Delaware have been put on the market by their owners in recent weeks, both seeking to fetch millions in investment sales.
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The Rite Aid location at 399 New London Road. PHOTO COURTESY OF CBRE[/caption]
The location at 399 New London Road in Newark is asking about $3.7 million for the 10,900-square-foot store built in 1999. That represents a cap rate of 7%.
Rite Aid recently signed a 10-year lease extension at the roughly 2-acre location, which it renovated in recent years, and has two, five-year renewal options with built-in rent increases, according to CBRE, the real estate brokerage representing the owner, Paul & Dorothy Watcher trustees.
Meanwhile, the Rite Aid location at 3801 N. Market St. in Wilmington is up for sale for about $2.5 million for the nearly 11,200-square-foot pharmacy also built in 1999. That represents a cap rate of 8%.
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The Rite Aid location at 3801 N. Market St. in Wilmington. PHOTO COURTESY OF FORTIS[/caption]
Rite Aid recently agreed to a five-year lease extension at the roughly 1-acre location that will expire Nov. 30, 2023, with four, five-year renewal options with built-in 10% rent increases, according to Fortis Net Lease, the brokerage representing the owner, a limited liability corporation connected to Pittsburgh-based Kamin Realty Co.
Both stores are double-net leases, meaning the tenant will cover taxes and utilities while the landlord will be responsible for maintenance.
Rite Aid, ranked No. 107 in the 2019 Fortune 500 list of the largest U.S. corporations by total revenue, operates nearly 2,500 stores in 18 states, primarily on the East Coast. It has 39 stores in Delaware.
By Jacob Owens
jowens@delawarebusinesstimes.com
