Highlights

• Rite Aid has 10% Rental Increases Every Five Years
• Assumable Financing In-Place Until 2016
• 18% Cash-on-Cash Return Beginning February 2009

• Management-Free Upper Manhattan Retail Opportunity
• Leasehold Interest - 100% Depreciable
• Tremendous Foot Traffic Location

Description

The subject property is a 10,500-square foot Rite Aid Drug Store. It is a 41-year leasehold. This single-tenant Rite Aid is part of a two-story, 27,439-square foot retail property, which also features a restaurant, discount store and furniture store. Rite Aid is on a 20-year NN lease with 10 percent rent bumps every five years along with four five-year options to renew. This is a corporate guaranteed lease that began in 2005, and is a relocation site for Rite Aid. This investment allows for 100 percent depreciation because it is a leasehold interest, thus allowing for a strong cash flow. Beginning February 2009, investors can realize an 18 percent return on their equity. A new investor can recoup 100 percent of his/her investment within the first six years of ownership.

The Rite Aid is located at the three-way intersection of Amsterdam Avenue, St. Nicholas Avenue and 162nd Street in Upper Manhattan's Washington Heights neighborhood. The subject offering is directly on top of the 163rd-Amsterdam stop on the C train. The entrance to the C train is next door to Rite Aid's entrance, within the same property. Rite Aid has 85 feet of frontage on Amsterdam Avenue, and 97 feet of frontage on 162nd Street.