
A&G Real Estate Partners in New York revealed plans to sell 15 Michigan Rite Aid drug store neighborhood pharmacy leases, as well as one Michigan fee-owned property, pending approval by the U.S. Bankruptcy Court for the District of New Jersey.
The sales will result in the closure of the 16 Rite Aid stores, the locations of which were not disclosed.
But on Oct. 17, the bankruptcy court released a list 54 under performing stores that would close (and could be leased or sold) around the country, including 19 in Michigan:
924 W. Main St., Fremont
507 N Lafayette St., Greenville
715 S. Clinton St., Grand Ledge
15250 24 Mile, Macomb
102 N. Centerville Road, Sturgis
109 N. Whittemore St., St. Johns
47300 Pontiac Trail, Wixom
35250 S. Gratiot Ave., Clinton Township
51037 Van Dyke Ave., Shelby Township
3100 E. Michigan Ave., Jackson
9155 Telegraph Road, Taylor
1243 U.S. 31 South, Manistee
2701 S. Cedar St., Lansing
29447 Ford Road, Garden City
2838 E. Court St., Flint
1900 E. Eight Mile, Detroit
36485 Garfield Road, Clinton Township
25922 Middlebelt Road, Farmington Hills
1124 N. Ballenger Highway, Flint
The initial leases and properties are available in private sales, as part of Rite Aid’s financial restructuring process. As it moves through this process, the company will continue assessing its property footprint and close additional stores to improve its overall financial performance.
“Rite Aid, which operates more than 2,100 retail pharmacy locations across 17 states, is working collaboratively with its financial stakeholders to reduce its debt and position its business for success,” says Andy Graiser, co-president of A&G. “Portfolio optimization is a powerful and essential part of that go-forward strategy.”
Other states affected by initial leases sales include California, Maryland, New Jersey, New York, Ohio, Oregon, Pennsylvania, and Washington.
In addition to the Michigan location, A&G is offering on behalf of the company 21 fee-owned properties (both stores and land) in Alabama, California, Idaho, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, and Washington.
The owned and leased stores range from 6,400 to 37,154 square feet. Some are located in downtown areas, strip malls, and power centers, while others are freestanding — including high-visibility stores with drive-thru windows.
“In the highly competitive national chain drugstore business, finding prominent, high-quality real estate has always been a top priority, and the locational characteristics of many of Rite Aid’s stores are part of what make this such an extraordinary opportunity for retailers, restaurants and real estate investors,” says Todd Eyler, senior managing director for A&G.
As the company’s restructuring process moves forward in the weeks ahead, A&G will market additional leases, with the total number depending on the outcome of ongoing negotiations between A&G and Rite Aid landlords. The quickly moving plan centers on exiting certain locations to ensure optimal performance of Rite Aid’s real estate footprint.