X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

GREENVILLE, PA-Greenville Commercial Properties LP has sold the newly completed 11,157-sf single-tenant building at 335 Main St. for $4.4 million. The property has a new 20-year absolute-net lease with Rite Aid under an agreement that includes six options of five years each.

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

“We were pleased to get a cash buyer,” Zang tells GlobeSt.com. The property was listed in Nov. 2007, and after just two weeks, the M&M team had a letter of intent from the buyer. The buyer signed 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 other Rite Aid locations for sale in Pennsylvania and New York. The cap rates are high on these units in comparison with CVS and Walgreen’s locations. Despite a shake-up in Rite Aid’s credit right now, most investors are looking at the chain’s fundamentals.”

Among the fundamentals, he says, is the question: “Would this make a good location for another drug chain?,” which is generally answered in the affirmative. The 335 Main St. property is a relocation of a Rite Aid unit a few blocks away. It is the only national pharmacy chain in town, which Zang says “is consistent with Rite Aid’s approach to dominating small town markets in Pennsylvania.” The closest CVS and Walgreen’s are about a 20-minute drive away.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.