Harrison Net Lease Capital

New Listing: 9Yr | 6.50% Cap | Burger King on the Space Coast (FL)

1455 N Courtenay Pkwy, Merritt Island, FL 32953 | Crexi.com Retail property for sale at 1455 N Courtenay Pkwy, Merritt Island, FL 32953. Visit Crexi.com to read property details & contact the listing broker.

-Rite Aid Corp. is reportedly gearing up for a Chapter 11 bankruptcy filing in response to lawsuits accusing the drugstore chain of contributing to the opioid crisis.

-The bankruptcy move is aimed at addressing the company's substantial $3.3 billion debt load and its legal challenges related to the alleged oversupply of prescription painkillers.

-Rite Aid, a regional player with over 2,330 stores across 17 U.S. states, faces lawsuits for its purported role in fueling the opioid epidemic, joining other pharmacy chains in the same predicament.

-Amidst a backdrop of legal actions against various industry players, Rite Aid has not yet reached a nationwide settlement, unlike others who have collectively paid over $50 billion to resolve similar claims.

-This development raises questions for single tenant net lease investors in the commercial real estate sector, particularly those with properties leased to Rite Aid. How might this impending bankruptcy and legal turmoil impact the stability and future prospects of their real estate investments?

Rite Aid Preparing to File for Bankruptcy Rite Aid Corp. is preparing to file for bankruptcy in coming weeks to address lawsuits the drugstore chain is facing over its alleged role in the sale of opioids, The Wall Street Journal reported Friday.

My clients who own Fast Food single tenant net lease properties ask me all the time: "What do you think these (stores) will look like in 5,10,20 years?"

I never pretend to have a crystal ball, so my professional opinion is that this new design from Chick-fil-a, as well as the Taco Bell Defy model in Brooklyn Park, MN, provide us with some clarity to that question.

You can imagine:
-Pulling up in your self-driving car
-Digital AI-avatars take your order at the kiosk
-Robots cook and fulfill your order

The implications all these factors have on the underlying real estate are immense.

See Chick-fil-A's wild new restaurant design with a drive-thru that runs through the middle of the building One concept has four drive-thru lanes that flow below an elevated building with a large kitchen. A walk-up only store opens in 2024 in New York City.

"The fast-food giant estimates that around 300-400 U.S. restaurants will close in 2023."

The issues are not new and they run deep. Burger King is just one example in the QSR (fast food) space. We will see more of this with other brands moving forward who will shutter under performing stores as they restructure and reposition themselves to remain competitive.

Burger King is Cracking Down on Underperforming Franchisees | QSR magazine There are several components to a franchisor-franchisee relationship, but RBI chairman Patrick Doyle described it in the simplest of terms—operators are the customer. The company sells a business model and works to increase the average profitability while the franchisees aim to be better than aver...