RITE AID Wilmington, Delaware 8 0 0 W E S T 4 T H S T R E E T W I L M I N G T O N, D E L A W A R E E X C L U S I V E L Y L I S T E D B Y :
INVESTMENT OVERVIEW Marcus and Millichap is pleased to present this Rite Aid Leasehold in Wilmington, Delaware; 32 Miles southwest of Philadelphia. THE SUBJECT PROPERTY HAS MORE THAN EIGHT YEARS REMAINING ON A TRIPLE-NET (NNN) LEASE WITH ZERO LANDLORD RESPONSIBILITIES. THE LEASE IS CORPORATELY GUARANTEED BY RITE AID CORPORATION. The subject property is located along West Fourth Street, a high traffic thoroughfare with more than 15,700 vehicles per day (VPD). The surrounding area sees more than 100,000 vehicles per day. This Rite Aid benefits from being in a dense retail corridor with more than one million square feet of retail within five miles. The surrounding market is undergoing significant capital commitment with more than $1.2 billion in development permits within the subject asset s zip code. Additionally, the subject property is nearby Saint Francis Hospital, with more than 180 staffed beds. Additional national retailers in the immediate vicinity include: Rent-A-Center, McDonald s, Family Dollar, Starbucks, Speedway, Taco Bell, BJ s Wholesale, Dollar Tree, Auto Zone, Party City, Wendy s, Wawa, ACME, and many more. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z0332164
RITE AID WILMINGTON, DELAWARE
INVESTMENT HIGHLIGHTS 8+ YEARS ON TRIPLE-NET (NNN) More Than Eight Years Remaining on a Triple-Net (NNN) Lease Zero Landlord Responsibilities (Ground Lease Coterminous) 8, 5-Year Extension Options The Leasehold Interest is Fully Depreciable CORPORATE GUARANTY Corporate Guaranty NYSE: RAD S&P: B HIGH TRAFFIC LOCATION High Traffic Thoroughfare More Than 11,500 Vehicles Per Day Along W 4th Street More Than 100,000 Vehicles Per Day within Half-Mile of Subject Asset IDEAL LOCATION & STRONG DEMOGRAPHICS Significant Capital Commitment More Than $1.2 Billion in Development Permits in Subject Asset Zip Code Nearby Hospitals 1 Mile from Saint Francis Hospital with More Than 180 Staffed Beds Dense Retail Corridor More Than 1 Million Square Feet of Retail Within Five Miles
FINANCIAL OVERVIEW 800 WEST 4TH STREET WILMINGTON, DELAWARE 19801 PRICE $2,937,600 CAP RATE 9.50% NOI $279,070 PRICE PER SQUARE FOOT $262.90 RENT PER SQUARE FOOT $24.97 YEAR BUILT 2007 APPROXIMATE LOT SIZE.3 Acres GROSS LEASEABLE AREA 11,174 TYPE OF OWNERSHIP Leasehold ANNUALIZED OPERATING DATA BASE RENT ANNUAL RENT MONTHLY RENT 3/1/2007 2/28/2027 $279,070.00 $23,255.83 OPTIONS 3/1/2027 2/28/2032 $306,977.00 $25,581.42 10% 3/1/2032 2/28/2037 $337,674.70 $28,139.56 10% 3/1/2037 2/28/2042 $371,442.17 $30,953.51 10% 3/1/2042 2/28/2047 $408,586.39 $34,048.87 10% 3/1/2047 2/28/2052 $449,445.03 $37,453.75 10% 3/1/2052 2/28/2057 $494,389.53 $41,199.13 10% This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z0332164
LEASE SUMMARY LEASE COMMENCEMENT DATE 3/1/2007 LEASE EXPIRATION DATE 2/28/2027 LEASE TERM 20 Years TERM REMAINING 8+ Years INCREASES In Options OPTIONS TO RENEW 8, 5-Year This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z0332164
TENANT OVERVIEW Rite Aid began in 1962, opening its first store in Scranton, Pennsylvania; it was called Thrift D Discount Center. After several years of growth, Rite Aid adopted its current name and debuted as a public company in 1968. In late 2015, Walgreens announced it would acquire Rite Aid for $9.4 billion pending approval. However, on June 29th, 2017, over fear of antitrust regulations, Walgreens Boots Alliance announced it would buy roughly half of Rite Aid s stores for $5.18 billion. On September 19th, 2017 the Federal Trade Commission approved a fourth deal agreement to purchase Rite Aid with 1, 932 stores for$4.38 billion total. Rite Aid Corporation is a retail drugstore chain in the United States and a Fortune 500 company. It is headquarter in East Pennsboro Township, Cumberland County, Pennsylvania, near Camp Hill. The company s segments include retail pharmacy and pharmacy services. The company operates under the Rite Aid Name. It operates approximately 2,691 stores in over 30 states across the country and in the district of Columbia. Rite Aid is the largest drugstore chain on the East coast and the third largest in the United States, employing roughly 890,000 associates. The company is publicly traded on the New York Stock Exchange under the ticker symbol RAD. TENANT PROFILE TENANT TRADE NAME Rite Aid OWNERSHIP Public TENANT Rite Aid Corporation LEASE GUARANTOR Rite Aid Corporation NUMBER OF LOCATIONS 2,600+ Locations HEADQUARTERED Camp Hill, Pennslyvania This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z0332164
ABOUT WILMINGTON Wilmington is the most populous city in the state of Delaware. The city was built on the site of Fort Christinia, the first Swedish settlement in North America. It is at the confluence of the Christinia River and Brandywine River, near where the Christina flows into the Delaware river. It is the county seat of New Castle Countty and one of the major cities in the Delaware Valley metropolitan area. Much of Wilmington s economy is based on its status as the most populous and readily accessible city in Delaware, a state that made itself attractive to corporations with business-friendly financial laws and a longstanding reputation for a fair and effective judicial system. Contributing to the economic health of the downtown and Wilmington Riverfront regions has been the presence of Wilmington Station, through which 665,000 people passed in 2009. Wilmington has become a national financial center for the credit card industry, largely tdue to regulations. Wilmington s other notable industries include insurance, retail banking, branch of M&T Bank and legal services. Top employers in the area include Bank of America, Walmart, Comcast, Amtrak, St. Francis Hospital, PNC Financial Services Group, and many more. Wilmington has many museums, galleries, and gardens to enjoy, as well as many ethnic festivals and other events throughout the year. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2018 Marcus & Millichap. Activity ID# Z0332164
1-Mile 3-Mile 5-Mile 1-Mile 3-Mile 5-Mile 1-Mile 3-Mile 5-Mile 2010 Population 36,587 111,645 186,023 2010 Households 15,380 44,525 73,398 2018 Population 37,178 112,975 186,261 2018 Households 15,623 45,166 73,662 2023 Population 37,717 114,527 188,366 2023 Households 15,851 45,813 74,537 2018 Average HH Income 2018 Median HH Income 2018 Per Capita Income $54,793 $67,358 $76,344 $35,693 $46,024 $55,082 $23,025 $26,929 $30,192
MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.
EXCLUSIVELY LISTED BY: - AND - 9 8 5 B E L M O N T S T R E E T B R O C K T O N, M A S S A C H U S E T T S 0 2 3 0 1 BROKER OF RECORD: DONALD MACLAREN, JR DELAWARE LICENSE: R2-0002461