A&G Real Estate Partners, the real estate adviser to Rite Aid Corp., plans to sell a tranche of 92 neighborhood pharmacy leases, including 17 in Pennsylvania, as part of Rite Aid’s financial restructuring process.
“In consultation with A&G, Rite Aid is working to strengthen its overall financial position by reducing its rent expenses and optimizing its portfolio,” Andy Graiser, A&G co-president, 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.”
The leases have more than 10 years of term remaining, including options, and are in stores ranging from 5,000 to 33,548 square-feet. Stores include 53 freestanding locations, 36 stores located in strip or power centers and three in central business districts.
Leases also are being sold in California, Maryland, Michigan, New Jersey, New York, Ohio, and Washington.
This is the second tranche of leases. Transactions are pending approval by the U.S. Bankruptcy Court for the District of New Jersey.
Rite Aid will close stores to optimize its real estate footprint and improve overall financial performance.
The total number of leases A&G will market depends on ongoing negotiations between A&G and Rite Aid landlords.