Albertsons’ Rite Aid acquisition is creating a unique absolute triple net lease investment opportunity. On February 20, Albertsons—one of the nation’s largest grocery retailers—announced that it will purchase a portion of publicly traded Rite Aid, creating a new corporate entity valued at $24 billion. Rite Aid pharmacies will be branded within Albertsons locations, and a combined company will operate standalone Rite Aid pharmacies.
This news reinforces the health of the grocery retail space: despite grocery market disruption due to online retailers and delivery services, this merger helps cement the value of physical supermarket locations. Investment properties with grocery retail tenants have historically been one of the safest, technology-proof spaces due to the nature of its commodity goods.
Now is the time to break into a rare opportunity in this industry. Albertsons selling their real estate assets demonstrates their focus on the grocery facet of their business, and they’re continuing to expand their number of retail locations to become a leader through overall market presence.
With Albertsons’ focus on providing top service in the grocery retail space, you can invest in their real estate backed by their commitment to leading the supermarket industry. This also ensures property investors a healthy single tenant already occupying these locations.
While comparable assets would include flat leases, these brand-new absolute triple net lease properties with a 20-year initial term have set rent increases guaranteed by Albertsons. This is a rare opportunity to acquire a noteworthy, leading grocery operation as a tenant.
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