NNN Leased Rite Aid For Sale

NNN Leased  Investments

                                    Credit Enhanced Rite Aid (Ground Lease) | Philadelphia MSA

Asking Price $5,130,434 | CAP Rate 5.75%

                                        950 E. Baltimore Ave | Upper Darby, PA 19050 [map]

Lease Summary

Net Operating income (NOI) $295,000

Rent/Month $24,583

Rentable SF 14,500+/-

Land Area 1.56+/- acres

Tenant Realty Income Pennsylvania Properties Trust

Credit Rating S&P: BBB

Sub-Tenant Rite Aid, a subsidiary of

Rite Aid Corporation

Websites realtyincome.com

riteaid.com

Ownership Type Unsubordinated

Ground Lease

Lease Type NNN

Landlord Responsibilities None

Store Open 2007

Lease Term 20 years

Lease Commencement March, 2007

Lease Expiration March, 2027

Increases $10,000 at each option

Options Eight (8), Five (5) year

Highlights

This is a very rare opportunity to obtain a Rite Aid ground leased property. The tenant is Realty Income Pennsylvania Properties Trust (wholly owned by Realty Income Corporation (NYSE:O, S&P BBB)) and the subtenant is Rite Aid. This structure enables an investor to purchase a highly desirable location, with a very substantial credit enhancement.

•Significantly credit enhanced ground lease investment

•Hard corner signalized intersection

•Store opened in 2007

•32,000 ADT

•Relocation of successful inline store

•15 years left on lease

•14,500+/- SF store

Location Overview

 Contact a Broker

STAN WYRWICZ

Senior Managing Director

(617) 394-8567

mailto:swyrwicz@calkain.com

You may visit our website

www.calkain.com

to view the entire inventory of  available properties.

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Demand for Urban Retail Condominiums

Retail Urban Condominiums News

                           The Rise of Retail Urban Condominiums

Regular visitors to the Calkain website (www.Calkain.com) have seen considerable attention given to documenting over the past 12 months the sale of Triple Net (NNN) retail urban condominiums properties. Demand for credit rated property in the urban core of primary markets has always been strong but we now see inclusion of local, non-credit tenants involving smaller transaction sizes drawn into the mix of investment properties sought by investors. Investors have shown a willingness to pay aggressive caps for urban properties. An increase in mixed use residential condominiums brought about by population movement towards the urban core and a pause in expansion by national retailers has contributed to the wide-ranging demand for  retail  urban condom  properties. Coming on the heels of the recession and the ensuing across-the-board hike in cap rates, this move to retail urban condominiums dense, high traffic urban locations signals where investors want to be over the next decade.

Recently identified as a top niche investment trend by the Urban Land Institute (ULI), mixed-use urban projects have drawn retailers and investors to this asset type even in the current market cycle. Driven by a desire to spend less time in traffic, live in a smaller footprint and work and play within an urban atmosphere, aging boomers and Gen XYZers alike are leaving the edge and making their way back to the city. Developers have capitalized on this trend by coupling high-rise condominium living with easily accessible ground floor retail space. The convenience of these on-hand amenities makes for an attractive lifestyle for local residents and nearby office workers. While not a new phenomenon, the rise in urban mixed-use development meets the market at a very good time.

Unable to find quality assets in a tight market, unable to secure favorable debt for less well known tenants in secondary and tertiary markets, investors are finding that lenders are putting more emphasis on the intrinsic value of the real estate. Urban properties are typically more easily adaptable to alternative uses and are viewed favorably by lenders. Investors seeking passive real estate investments are turning to urban, income-producing condominiums (the new “infill”) of varying types as a suitable component of their investment portfolios. You may have seen the Real Capital Analytics (REA) report where they quoted that there was over $20 billion in retail condominium sales over the past five years. What you may not know is that total only includes transactions of $5 million or greater in size. As the chart below indicates, our own experience proves that there were a significant number of transactions well below REA’s $5 million baseline. Included in the mix of under $5 Million condominiums is a broad array of tenants ranging from companies with Standard and Poors AA+ credit ratings to start up restaurant concepts with personal guarantees. That broad range of tenants is good news for developers and investors alike.

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