Long Beach, CA - Rite Aid

Description:

SRS National Net Lease Group is pleased to present the rare opportunity to acquire the fee simple interest (land & building) in an extremely rare absolute NNN leased, Rite Aid trophy investment property located in Long Beach, CA. The building features brand new construction and features a two (2) lane drive-thru, providing ease and convenience to customers. The tenant, Thrifty Payless, Inc., d.b.a Rite Aid, signed a brand new 20-year absolute NNN lease with 6 (5-year) options to extend. The lease features rare inter-term rental increases of 5% in Year 11, Year 21, Year 31 and a fair market rent (FMR) determined by appraisal for years 41-50. The lease is corporate guaranteed and is absolute NNN with zero landlord responsibilities. The asset is currently under construction and is expected to be open to the public by November 2017.

The subject site is located at the heavily trafficked signalized, irreplaceable hard corner intersection of Ximeno Ave and Pacific Coast Highway/CA State Route 1 (combined 42,000 VPD), a major retail thoroughfare traveling along the coast of California. The subject site has excellent visibility and access with multiple points of ingress and egress on both adjacent streets. The asset is a relocation of a proven, strong store from an interior, inline space off PCH to a free-standing location with drive thru directly on PCH. As a result, Rite Aid is poised to benefit from its new location off PCH and as part of the Long Beach “Circle Area”, a dense retail corridor with dozens of nearby national/credit tenants. Some of the nearby national/credit tenants include Staples, Ralphs, Ross Dress for Less, Vons, Marshalls, LA Fitness, AutoZone, Pep Boys and luxury car dealerships Audi and Porsche increasing consumer traffic and crossover shopping to the area. The site will also benefit from a number of new, high profile developments, including the adjacent new Carl’s Jr, Chase Bank, Wells Fargo and Chick-Fil-A. The 5-mile trade area is supported by a dense population of approximately 514,000 with an average household income of $85,000.