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WASHINGTON, PA-In a 1031 Exchange, John Tsern of Newport Coast, CA paid $5.9 million for Rite Aid locations here and in Erie. The seller is Frank Neely of Weirton, WV.

The 11,060-sf unit located at 1001 Jefferson Ave. here traded for $3.9 million at a 7.1% cap rate, according to Brad Nathanson, senior associate of the Marcus & Millichap national retail group. He is based in the Philadelphia office and represented the seller in both transactions, while Cesar Talavera of the company’s Las Vegas office procured the buyer.

The Washington unit “ranks in the top 10% of the country for Rite Aid,” Nathanson says, “and produces in excess of $700 sale per sf a year.” The drug store has 14 years remaining on its lease, which has built-in incremental increases.

The Erie location is an 11,325-sf unit at 1709 Liberty Place, near W. 12th St., a main artery. It traded for $2 million at a 7.72% cap rate, according to Nathanson, and 10 years remain on the Rite Aid lease.

In an unrelated transaction, Nathanson represented the seller and procured the buyer for a 22,948-sf Advance Auto Parts location in Trooper. This traded for nearly $2.5 million, “$75,000 above list,” he says, at a cap rate of 7.9%. The identity of the seller is undisclosed, and the buyer, a local investor, is identified only by the name of the property.

“The buyer took advantage of a property where rent is 49% below the market, and the location is on a great commercial corridor,” Nathanson says. The current rent is $8.50 per sf, and market is $13 per sf, he tells GlobeSt.com. “Advance Auto has one year remaining on its lease, and the buyer is repositioning the real estate to obtain a new lease from Advance and another from Dollar General.”

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