The acquired portfolio totals 260,786 sf, consists of 21 newer stores with drive-through formats and traded in a direct deal between buyer and seller. Michael Katz, president of REF Advisory LLC, which serves as Rite Aid's financial adviser for sale-leaseback transactions, says the drug store chain was attracted to the deal because of its competitive economics, the reduced closing costs involved, and other advantages offered by the transaction.
Howard Sands, founding principal of Corporate Partners, reports that the properties are in Alabama, California, Maryland, Michigan, New Jersey, Ohio, Pennsylvania, Tennessee and Utah. "The stores are all strong performers," Sands says.
Rite Aid Corp. is one of the nation's largest drug store chains with annual revenues of $16.6 billion and approximately 3,400 stores in 28 states and the District of Columbia.
Corporate Partners Capital Group specializes in the acquisition and financing of corporate real estate. The principals of Corporate Partners have structured sale-leaseback transactions with Circuit City, EDS, Limited Brands and Sierra Health Services and build-to-suit/take-outs with various developers. In 2003 Corporate Partners acquired a 31-property portfolio of auto part stores secured by long term leases with CSK Auto and O'Reilly Automotive.
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