Rite Aid’s real estate advisor has plans to sell almost 100 pharmacy leases tied to the retailer, following Rite Aid’s announcement last month that it will file for bankruptcy due to mountains of debt largely caused by opioid lawsuits.
A&G Real Estate Partners announced its intention to market for sale a second portion of leases — 92 in all — pending U.S. Bankruptcy Court approval.
The Philadelphia-based Rite Aid is still assessing its real estate footprint and more store closures could be announced at a later date.
The leases span eight states: Michigan (22), Pennsylvania (17), California (17), New York (11), New Jersey (seven), Maryland (six), Washington State (six), and Ohio (2).
The stores range in size from 5,000 square feet to just over 33,500 square feet.
“The lack of new build of this type of product is driving demand for these leases,” said Andy Graiser, co-president of New York-based A&G. “We continue to be pleased by the strong interest we are receiving across the country from potential replacement users.”
Rite Aid first announced it would close 154 stores, but that number has since been increased to 178.
Rite Aid filed for Chapter 11 bankruptcy in mid-October as it attempts to dig out from under billions of dollars in debt mainly caused by opioid lawsuits.
The Chapter 11 filing allows the Philadelphia-based retailer to restructure its debt, which sits at $3.3 billion. Lenders have agreed to provide $3.45 billion in debt relief.
