Costar - April 13, 2009
An investor taking title as Rende LLC acquired the Rite-Aid store at 2175 Dixwell Ave. in Hamden, CT, from Sovereign RA 2 LLC for a little more than $3 million, or $135 per square foot.
The 22,522-square-foot retail building was built in 2002. Rite-Aid fully occupies the property, which was previously a Brooks drugstore.
Kase Abusharkh of Sperry Van Ness represented the seller.
April 15th, 2009 at 8:41 pm
You are doing an outstanding job with propertyjump.com! It’s inforamtive, fresh and upbeat.
Regarding this sale, was it possible that what was acquired was a ground lease only? Seems to be a low price/SF even for a Rite Aid yet one at 22,500SF and built in 2002.
April 16th, 2009 at 9:57 am
Thanks.. Buying a Rite-Aid right now is high risk beacause of their financial position. A buyer should get a high return beacuse of this. Check out this article -http://www.propertyjump.com/?p=371 . Seems like there is a lot of them on the market now
April 17th, 2009 at 8:28 am
Agreed on how the Rite Aid properties are stacking up Noah. But what does the broker report or deed say whether it was for the Land and Building or just a ground lease?
Otherwise at a conceptual 9% cap rate and at $135/SF overall SP it’s suggesting a base rent NNN in the range of $12/SF +/-? Is that reasonable?
Anyone close to this sale property care to weigh in?
April 17th, 2009 at 11:06 am
according to costar it was the land and building. If the rent was $12 SF NNN that would be very low for that location. I just did a retail lease at a less busy location for $20 SF NNN
June 2nd, 2009 at 7:36 am
Hi, good post. I have been wondering about this issue,so thanks for posting.
June 16th, 2009 at 12:22 am
Hi. I like the way you write. Will you post some more articles?
March 12th, 2010 at 10:36 am
Does anyone have 2006 and 2007 cap data for the Danbury area for retail structures containing from 10,000 to 18,000 sq feet?
thanks in advance.