Located at 811 North Main Street, Jamestown, New York, this Net Leased Rite Aid property consists of a 13,813 sq.ft building that sits on a massive 1.54-acre parcel of land, including a full-service pharmacy drive-thru window and a Rite Aid Wellness Clinic within the store. The subject property is situated in Chautauqua County, which is less than an hour’s drive due East of Erie, PA, and one hour drive South from Buffalo. Buffalo has a wealthy population, having an average annual household income of more than $51,000. The property is strategically positioned at the signalized intersection of North Main Street and West 8th Street. Another Rite Aid pharmacy is located across town at 50 S Main Street. It is opposite to a Walgreens (10 Prospect Street) and a CVS store (195 Main Street). The current 20-year absolute net lease has almost 6.7 years remaining with no landlord responsibilities. The offering provides a flat initial term, including a 2 percent hike in each of the four – five year option periods. This Rite Aid property sees a traffic count of more than 17,000 vehicles per day and has three different ingresses and egresses. Several national and local retailers are also present in the surrounding, including 7 Eleven, Friendly’s, CVS, Tim Horton’s, Cricket Wireless, TOPS Friendly’s Grocery Market, and Aaron’s Rents.
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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