Leases for Three Manhattan Rite Aid Stores Head to Auction
As part of Rite Aid’s Chapter 11 filing, the Philadelphia, PA-based pharmacy chain is scheduled in July to auction off “dozens of leases for local retail locations.” A total of 33 of the 178 New York State stores are located in New York City, which will all close on June 4th. Among the 33 citywide stores, 13 are in Queens, 12 in Brooklyn, 4 in the Bronx, 3 in Manhattan, and 1 in Staten Island; and a combined total of 527 workers are affected according to the New York State Worker Adjustment and Retraining Notification (WARN) notices filed May 23, 2025. Below are reported details from marketing material by A&G Real Estate of the three Manhattan stores:
- 81 First Avenue in the East Village offers 8,500 square feet under a current lease that extends until January 2032. The current gross annual rent is $627,000.
- 534 Hudson Street in the West Village offers 10,900 square feet under a current lease that expires in November 2029. The store located on the southeast corner of Charles Street spreads across the entire retail component at the base of the mixed-use condominium. The current gross annual rent is $953,000.
- 4046 Broadway in Upper Manhattan’s Washington Heights neighborhood offers 9,400 square feet of a single-floor retail property that also includes a Citibank branch and a McDonald’s restaurant. Rite Aid’s lease extends through the end of 2028 and the current gross annual rent is $592,000.
The recent commencement of Rite Aid’s voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey is reportedly part of an effort of “pursuing a strategic and value-maximizing sale process for substantially all of its assets,” according to reported statements by Rite Aid in early May. The filing comes about 8 months after the company emerged with 1,300 stores from a previous October 2023 Chapter 11 filing, which “did little to resolve the chain’s issues” despite the “erasing of roughly $2 billion in debt” per a May 5th news release. On May 15th, a news release by CVS Health indicated that in a bankruptcy court approved bidding process, CVS Health “has agreed to acquire the prescription files of 625 Rite Aid pharmacies across 15 states in areas that CVS serves, as well as acquire and operate 64 Rite Aid stores in Idaho, Oregon and Washington,” which at the time of the news release remained subject to court approval.
Source: https://www.costar.com/article/489486290/rite-aid-looks-to-sell-stores-in-second-chapter-11-filing