Flexible, long-term lease of a Rite Aid warehouse and distribution center hits the market in connection with financial restructuring of nation’s third-largest drugstore chain.

PHILADELPHIA, Jan. 31, 2024 /PRNewswire/ — A&G Real Estate Partners, in its capacity as real estate advisor to Rite Aid Corporation (“Rite Aid” or the “Company”), today announced that it is now accepting offers for the sale and assignment of a flexible, below-market lease for a large warehouse and distribution center in Sacramento, pending approval by the U.S. Bankruptcy Court for the District of New Jersey.

The 513,067-square-foot facility is located at 1755 East Beamer Street in Woodland, California. This property is situated approximately 20 miles northwest of downtown Sacramento and 10 miles west of Sacramento International Airport (SMF), providing easy access to all points of the compass.

“With its favorable terms and below-market rent structure, this net lease represents a tremendous opportunity for a wide array of industrial real estate users and third party logistics companies to acquire long term control over a flexible and cost effective distribution facility servicing the West Coast,” said Emilio Amendola, Co-President of A&G Real Estate Partners and leader of A&G’s Real Estate Sales division. 

The industrial facility boasts ceiling heights of 35 to 55 feet, 110 dock doors with loading on two sides, abundant car and trailer parking, and convenient access to major highways.

The lease offers:

• A total of 57 years of remaining control, including option terms;
• Below-market rent and fixed annual increases through both the remaining fixed term and option terms;
• Tenant right to assign or sublease the space without landlord’s consent; and
• Tenant right of first offer and first refusal for purchase.

The lease commenced on Jan. 12, 2021, and continues until Jan. 11, 2041, with annual 2.15% rent increases. “These are incredibly favorable lease terms given the hockey stick-shaped demand that we have seen for industrial real estate in recent years, especially in major West Coast distribution hubs such as Sacramento,” Amendola noted.

“This facility is located directly off of I-5, which runs through Woodland and provides great North-South access,” said Joe McKeska, a Principal with A&G. “Additionally, the site is very close to State Route 113, which connects Woodland with I-80, providing strong East-West access. It’s a very strong location for a warehouse and distribution facility.”

In connection with its financial restructuring, Rite Aid is working collaboratively with its financial stakeholders to optimize its real estate footprint, reduce its debt and better position its business for long-term success.

For additional details, please visit https://www.agrep.com/rite-aid and/or contact Emilio Amendola, (631) 465-9507, [email protected]; Joe McKeska (708) 769-5039, [email protected]; Mike Matlat, (631) 465-9508, [email protected].

Media Contacts: At Jaffe Communications, Elisa Krantz, (908) 789-0700, 372284@email4pr.com

SOURCE A&G Real Estate Partners