Located at 159 Butler Road, Kittanning, Pennsylvania, this Net-Leased Rite Aid property consists of a 13,813 sq.ft building that sits on a 1.24-acre parcel of land and includes a full-service pharmacy drive-thru window and a Rite Aid Wellness Clinic within the store. The subject property is situated in Armstrong County, which is less than a 40-minute drive North East of downtown Pittsburgh, PA. It is strategically positioned in front of Butler Road, which is the main thoroughfare through Kittanning and has many national retailers, including SUNOCO, 84 Lumber, BP, Auto Zone, and McDonald’s. The immediate market area has a population of more than 21,000 residents, having an average annual household income of more than $53,000. The current 20-year lease has more than 7.6 years remaining and includes no landlord responsibilities. The offering provides a flat initial term, including a 2 percent hike in each of the two five-year option periods. In the two miles area, this is the only major pharmacy. The closest Walgreens is located 23 miles away in New Kensington, PA, which means there is no direct Walgreen’s competition in the area.
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 –