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Rite Aid NNN in Washington, PA

1396 W Chestnut St, Washington, PA 15301, USA
$7,130,569

Description

Marcus & Millichap is pleased to present for sale this Net-Leased Rite Aid located at 1396 West Chestnut Street, Washington, Pennsylvania in Washington County, just a short 30 minute drive South of downtown Pittsburgh, PA. The subject property consists of 13,813 square feet that is situated on a very large 2.5 acre parcel of land with two, full service pharmacy drive-thru windows and a Rite Aid Wellness Clinic within the store. This Rite Aid benefits from the strategic location just off Interstate 70 and Chestnut Street (US – 40) at the very busy signalized intersection of Chestnut Street and Franklin Farms Road with over 20,000 vehicles per day. There are over 45,000 full time residents in the immediate market area with an average household income exceeding $67,000, annually. There is no direct Walgreen’s competition in the area; the closest Walgreen’s is 1.4 miles away at the opposite end of Washington and has a significantly lower traffic count than this asset. This property benefits from exposure to Interstate 70 with over 100,000 vehicles per day. The sixty foot sign is ideally located at the parking lot near the intersection, maximizing the exposure of this Rite-Aid. There are 6.2 years remaining on the original 20-year, Absolute Net Lease (NNN) where the landlord has no responsibilities to the property. The offering provides a flat initial term with one and a half percent increases in each of the two five-year option periods. This property is well positioned just off interstate 70 and has a sixty foot Highway sign that is grandfathered in from a previous hotel sign that is visible from the highway. There are numerous National retailers in the immediate area including; Bob Evans, Denny’s, Wendy’s Auto Zone, 7 Eleven, McDonald’s, Taco Bell and Pizza Hut to name a few. Rite Aid ranks third (behind Walgreen’s and CVS) in the US retail drugstore business, with more than 4,600 drugstores in more than 30 states and the District of Columbia. Rite Aid stores generate roughly 70 percent of their sales from filling prescriptions, while the rest comes from selling health and beauty aids, convenience foods, greeting cards, and more, including some 3,500 Rite Aid brand private-label products. More than 60 percent of all Rite Aid stores are freestanding and over half have drive-thru pharmacies. The company was founded in 1962 and is in negotiations of being purchased by pharmacy leader Walgreen’s Boots Alliance.

 

■ CORPORATELY GUARANTEED BY RITE AID (NYSE: RAD)
■ S&P B CREDIT RATING
■ OVER SIX YEARS REMAINING ON THE INITIAL TERM
■ 30 MILES SOUTH OF DOWNTOWN PITTSBURGH, PA
■ LOCATED AT SIGNALIZED INTERSECTION WITH 60 FOOT HIGHWAY SIGN
■ CLOSE PROXIMITY TO ADVANCED SURGICAL HOSPITAL AND ALLEGHENY
GENERAL HOSPITAL

  • Address: 1396 W Chestnut St
  • City: Washington
  • State/county: Pennsylvania
  • Zip/Postal Code: 15301
  • Country: United States

Detail

  • Price: $7,130,569

Additional details

  • CAP Rate: 6.50%
  • NOI: $463,487

Features