5 Rite Aid Portfolio

5 Rite Aid Portfolio - WA

• Increased portfolio value by 22.2% and owner’s equity by 29.1%
• Renegotiated the leases with Rite Aid on behalf of the owner
• Through industry relationships and market research, we identified and strengthened our client’s negotiation position
• Increased term by 10 years

We approached the owner/developer of 5 Rite Aid properties in WA to offer advice in increasing value of their assets through renegotiation of the Rite Aid leases. Understanding the dynamics of drugstore operations through our relationship with Rite Aid, Inc., we knew we could create a win-win situation for both landlord and tenant. The goal was to provide the owner with extra lease term for a very attractive delay of rental escalations by the extra time that as given on the lease. We managed to negotiate a deal that was better than what Rite Aid was giving other landlords, effectively achieving a 27% increase in disposition value and a 42% increase in equity, giving the landlord immense flexibility moving forward.