Rite Aid – High-Performing Recently Extended

87 Main Street, Massena, NY, USA

$2,592,000 · 7.25% · 11.5 · NN

Offering Memorandum

Exclusively Offered by

Niko Micin

Investment Analyst
niko@agmnetlease.com
206.210.5208

Investment Highlights

  • CORPORATE GUARANTY – The lease is guaranteed by Rite Aid Corporation (NYSE: “RAD”), one of the nation’s leading drugstore chains. 
  • LOW AND REPLACEABLE RENT – Rite Aid is paying only $17.22/SF in rent, which is 20% below an NY Rite Aid average. 
  • STRONG STORE PERFORMANCE – The store has very strong economics due to its high performance and low rent, which prompted Rite Aid to execute a favorable lease extension 
  • 10-YEAR LEASE EXTENSION WITH RENTAL ESCALATIONS – While Rite Aid usually extends the lease for 10 years with substantial rent reduction, as well as flat rent, this store received an extension with 5% rental escalation in year six and a 21% escalation in the first option 
  • MINIMAL LANLDORD RESPONSIBILITY – Property is subject to a NN lease with minimal landlord responsibilities 
  • HIGH VISIBILITY – Located on a hard corner signalized intersection of heavily trafficked North State Street (17,000 ADT) and Churchill Road (12,000 ADT) with a total of approximately 9,000 vehicles passing daily.  
  • ESTABLISHED CUSTOMER BASE – Rite Aid has been operating at this location for over 20 years and has an established customer base. 
  • DRIVE THRU – Property is equipped with a double drive-thru, which accounts for 20%+ of total sales in drugstores.  
  • RECENT UPGRADE – this store was a part of a limited number of strong performing stores nationwide for an aesthetic uplift, which commenced on October 15