Dean Zang and Mark Taylor of the Taylor-Zang retail group in thePhiladelphia office of Marcus & Millichap, and Thomas Gormanand Matthew Gorman of the Gorman retail group in the same office,represented both the seller and the buyer. The buyer is Deer ParkRealty Co. LLC, based in Deer Park, NY, which paid cash in a 1031exchange.


"We were pleased to get a cash buyer," Zang tells property was listed in Nov. 2007, and after just two weeks, theM&M team had a letter of intent from the buyer. The buyersigned an agreement of sale and went to closing within 51 days.


The sale price represents a 7.2% cap rate and $394.37 per sf."As far as we're concerned, it's an excellent cap rate," says Zang."This is an active market for Rite Aid, and we have several otherRite Aid locations for sale in Pennsylvania and New York. The caprates are high on these units in comparison with CVS and Walgreen'slocations. Despite a shake-up in Rite Aid's credit right now, mostinvestors are looking at the chain's fundamentals."


Among the fundamentals, he says, is the question: "Would thismake a good location for another drug chain?," which is generallyanswered in the affirmative. The 335 Main St. property is arelocation of a Rite Aid unit a few blocks away. It is the onlynational pharmacy chain in town, which Zang says "is consistentwith Rite Aid's approach to dominating small town markets inPennsylvania." The closest CVS and Walgreen's are about a 20-minutedrive away.

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