Rite Aid to sell leases for 17 Pennsylvania properties

78 pharmacies put on market; Palmer site listed for $5.2 million

With its Chapter 11 bankruptcy filed, Rite Aid Corp. is taking its next steps, including putting the leases for 78 of its pharmacies and 21 fee-owned properties up for sale.

A&G Real Estate Partners, which is Rite Aid’s real estate adviser, said that 17 of the properties are in

Pennsylvania.

“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,” said Andy Graiser, co-president of New York-based A&G. “Portfolio optimization is a powerful and essential part of that go-forward strategy.”

The pharmacy chain has been closing down about 500 stores in recent weeks as part of the bankruptcy plan. That includes four locations in the Lehigh Valley.

A location at 2178 Union Blvd., Bethlehem, is scheduled to close Oct. 17. Another at 361 S. Cedar Crest Blvd. in Allentown closed recently.

Two Easton-area locations — 601 S. 25th St., Palmer Township and 901 Northampton St. in the city — were shuttered in September.

None of those stores were on a sales list provided by A&G. Properties listed include one each in Pennsburg, Montgomery County; Pottsville, Schuylkill County; and White Haven, Luzerne County. Five are in Philadelphia and another is in Chester. The rest are in the central and western parts of the state.

The Palmer site has been listed on at least one commercial real estate website for $5.2 million. The 14,575-square-foot building sits on 2.1 acres and its lease expires in January 2026. It has been on the market for about four months.

As Rite Aid’s restructuring process moves forward, A&G said it 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,” A&G said.

The Wall Street Journal reported in September that the company has debts of $3.3 billion and is facing more than 1,000 lawsuits from its handling of opioid prescriptions and its effects on that epidemic.

A&G said sales will be subject to approval by the U.S. Bankruptcy Court for the District of New Jersey.

Rite Aid has 13 remaining locations in the Lehigh Valley.