Pharma Property Group Exclusively Listed Rite Aid Portfolio Totaling $14.7M
We are pleased to announce that PPG has listed four Rite Aid properties located in Michigan, Virginia and Ohio. “Each property has had recent lease extensions taking out the primary lease terms to 2030 to 2034. There are rental increases in both the primary lease terms and at each five-year option,” stated Jason Pongsrikul, Managing Principal of Pharma Property Group.
“This portfolio is available individually or on a portfolio basis and allows an investor to purchase a diversified mix of Rite Aid properties that have reasonable rent levels. Each property is priced in the $3,000,000 range to $5,000,000 range and are located at main and main corners within their respective markets,” explained Mr. Pongsrikul.
“The recent lease extensions and 15 plus year operating history at each location shows Rite Aid’s commitment to the stores allowing for an investor to minimize the lease renewal risk at the option periods. The aggregate asking CAP rate for the portfolio is around 150 to 175 basis points above where interest rates are giving healthy cash flow until the leases are up for renewal in the next seven to ten years,” stated Mr. Pongsrikul.
“Our experience in drugstore property sales and our relationship with drugstore tenants have allowed our clients to see all the options while considering a lease restructure. We have consulted on a number of drugstore lease restructures which gives us the insight to advise our client’s correctly when modifying their drugstore leases for an upcoming sale, refinance or long-term hold,” said Mr. Pongsrikul.
Pharma Property Group (PPG) has over $2 Billion in closing transaction experience and specializes in providing commercial real estate services to landlords who own properties occupied by Walgreens, CVS and Rite Aid. Pharma Property Group is one of the top brokerage firms in the country in drugstore property closing volume and has an unparalleled drugstore marketing platform providing access to the largest pool of drugstore landlords in the nation.
Jason Pongsrikul, Managing Principal
Pharma Property Group
1979 Chicago Street
San Diego, CA 92110
Office: (858) 860-6591