Rite Aid Files for Chapter 11 Bankruptcy

Estimated read time: 3 minutes and 25 seconds

Notable Sale: Zack Hilgendorf of Quantum Real Estate Adivors, just sold this Whataburger in Snellville, GA:

• Price: $3,090,000 @ 4.77% CAP

TRAPPIN’ AINT EAZY

Rite Aid has reached a deal with creditors to evaluate its retail footprint and close underperforming locations. (Read Here)

Financial challenges: Rite Aid has been grappling with slowing sales, mounting debt, and lawsuits alleging its role in the nation's opioid epidemic. The company reported a decline in revenue and widened net losses in its most recent quarter, leading to a lowered fiscal outlook for 2024.

💰 THE MONEY SHOT

Competitive pressures: Rite Aid has faced difficulties competing with larger rivals like CVS and Walgreens, as well as the rise of online retail giants like Amazon. The company has struggled to keep up with the industry's shift towards a healthcare focus and faces intense competition for key products.

For a contact list of Rite Aid property owners reply “Rite Aid List” to this email.

SAY CHEESE…CAKE

Cheesecake Factory’s site selection strategy focuses on opening restaurants in malls with a strong customer base, contributing to its success. (Read Here)

Cheesecake Factory's performance: The casual dining chain has experienced significant growth in recent years, with sales increasing by nearly 23% from 2017 to 2022 and a 5.5% increase in unit count. Its popularity among consumers is attributed to its elaborate restaurants and diverse menu.

💰 THE MONEY SHOT

Site selection strategy: Cheesecake Factory's success is not solely responsible for revived mall fortunes, but rather a testament to its strategic approach. The chain prefers to open restaurants in malls that are already performing well, ensuring a steady stream of customers.

For a contact list of Cheesecake Factory property owners reply “Cheesecake List” to this email.

WHERE THE PARTY AT

Party City has successfully completed its restructuring process and has emerged from Chapter 11 bankruptcy. (Read Here)

Strengthened capital structure: Party City's restructuring plan, approved by the U.S. Bankruptcy Court for the Southern District of Texas, has eliminated nearly $1 billion in debt, improved liquidity, and optimized the store portfolio by negotiating better lease terms and closing less productive stores.

💰 THE MONEY SHOT

Moving forward with 800 locations: Following the bankruptcy proceedings, Party City will continue operating with approximately 800 locations nationwide, after closing about 60 stores. The company's equity value will be turned over to lenders who supported the restructuring.

For a contact list of Party City property owners reply “Party City List” to this email.

TRIPLE NET TENDIES

🧠 Thought Leader: Don McMinn of M&M shares his takeaways from NY Interface Net Lease

👂 Ear Hustle: Karly Iacono of CBRE talks retail growth, resiliency, adaptability

💎 Web Gem: Daniel Herrold of Northmarq shares backlog inventory of Dutch Bros, Chipotle, and Starbucks

NET LEASE NUGGIES

• Domino's Q3 Performance: Overcoming Challenges and Projecting Growth

• Savvy Sliders Expands to Dallas: With 35 locations and counting, Savvy Sliders is the fastest-growing slider brand in America.

• Mr Gatti’s Pizza opens a new location in Fort Worth. The franchise owner plans to open more locations.

• Starbird opens 13th location in Los Angeles: The restaurant plans to grow in California, Oregon, Washington, Nevada, Utah, Colorado, Arizona, Texas, Illinois, and Florida.

• Bank Profits Soar, but Commercial Real Estate Remains a Threat: Big banks such as JPMorgan Chase, Wells Fargo, and Citigroup reported significant profits and revenue increases in the third quarter. However, concerns arise regarding the future of commercial real estate, as banks cite potential risks from defaulting loans.

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