Located at 163 West 26th Street, Erie, Pennsylvania, in Erie County, this Net-Leased Rite Aid property consists of an 11,367 sq.ft building that sits on a 1.08-acre parcel of land that includes a full-service pharmacy drive-through window and a Rite Aid Wellness Clinic within the store. The subject property is adjacent to Saint Vincent Hospital that has 400 beds. It is ideally positioned at the signalized intersection of West 26th Street and Sassafras Street. It is the only Drug Store in proximity to St Vincent Hospital, which is another reason for the Pharmacy’s thriving business. The current 20-year lease has 5.6 years remaining on the recent five-year extension. It is a double-net (NN) lease, which means the landlord is responsible for roof and structure maintenance. The offering includes a flat initial term, plus a 5 percent hike in each of the six five-year option periods.
Rite Aid is the third-largest drugstore business in the United States, second only to Walgreen’s and CVS. The company operates over 4,600 drugstores in more than 30 states and the District of Columbia. Out of total revenue, the company generates 70 percent of its sales through filling prescriptions, and the rest of the income comes from selling health and beauty aids, convenience foods, greeting cards, and more that also includes around 3,500 Rite Aid brand private-label products. More than 60 percent of Rite Aid stores are freestanding buildings, with half of them having drive-thru pharmacies. Founded in 1962, Rite Aid is currently in the negotiation terms with Walgreen’s Boots Alliance for the latter purchasing it.
This investment property is suitable for a 1031 exchange.
Property Details –