Located at 417 Chartiers Street, Bridgeville, Pennsylvania, this Net Leased Rite Aid property consists of a 13,813 sq.ft building that sits on a 1.72-acre parcel of land, having a full-service pharmacy drive-thru window and a Rite Aid Wellness Clinic within the store. The subject property is situated in Allegheny County, which is less than a fifteen-minute drive from South East of downtown Pittsburgh, PA. It is ideally positioned at the signalized intersection of Washington Street and Charles Street, close to Interstate 79 at the entrance to Bridgeville, which sees a traffic count of more than 70,000 vehicles per day. With the closest Walgreen’s situated four miles away in Carnegie, PA, there is no direct Walgreen’s competition in the area. The current 21-year absolute net lease has more than 7.6 years remaining, which includes no landlord responsibilities. The offering includes a flat initial term, plus one and a half percent hike in each of the two five-year option periods. Several national retailers are also present in the surrounding, near Interstate 79, including ALDI, McDonald’s, Brentwood Bank, Starbucks, Chipotle, Jimmy Johns, and Midas Automotive. The immediate area has a population of over 155,000 residents with an average annual household income of over $109,000.
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.
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