Rite Aid 2016 Annual Report Download - page 29

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We own our corporate headquarters, which is located in a 213,000 square foot building at
30 Hunter Lane, Camp Hill, Pennsylvania 17011. We lease 558,000 square feet of space in various
buildings near Harrisburg, Pennsylvania for document warehousing use and additional administrative
personnel. We own additional buildings near Harrisburg, Pennsylvania which total 111,000 square feet
and house our model store and additional administrative personnel.
We operate the following distribution centers and satellite distribution locations, which we own or
lease as indicated:
Owned or Approximate
Location Leased Square Footage
Poca, West Virginia ............................. Owned 255,000
Perryman, Maryland ............................. Owned 885,000
Perryman, Maryland(1) ........................... Leased 262,000
Tuscaloosa, Alabama ............................. Owned 230,000
Cottondale, Alabama(1) .......................... Leased 224,000
Pontiac, Michigan ............................... Owned 325,000
Woodland, California ............................ Owned 513,000
Woodland, California(1) .......................... Leased 200,000
Wilsonville, Oregon ............................. Leased 547,000
Lancaster, California ............................. Owned 914,000
Charlotte, North Carolina ......................... Owned 585,500
Charlotte, North Carolina(1) ....................... Leased 291,000
Dayville, Connecticut ............................ Owned 460,000
Liverpool, New York ............................. Owned 828,000
Philadelphia, Pennsylvania ......................... Owned 245,000
Philadelphia, Pennsylvania(1) ....................... Leased 415,000
(1) Satellite distribution locations.
The original terms of the leases for our distribution centers and satellite distribution locations
range from 5 to 20 years. In addition to minimum rental payments, certain distribution centers require
tax reimbursement, maintenance and insurance. Most leases contain renewal options, some of which
involve rent increases. Although from time to time, we may be near capacity at some of our
distribution facilities, particularly at our older facilities, we believe that the capacity of our facilities is
adequate.
We are leasing a new 900,000 square foot distribution center in Spartanburg, South Carolina (the
‘‘Southeast DC’’). The Southeast DC lease agreement has an initial term of 15 years with subsequent
renewal options. In addition to minimum rental payments, we are also required to reimburse the
landlord for taxes, maintenance and insurance. The Southeast DC is expected to start servicing stores
in the first half of Fiscal 2017. Once operational, we plan on consolidating our Charlotte, North
Carolina, Tuscaloosa, Alabama and Poca, West Virginia distribution centers into the Southeast DC,
which will service approximately 1,000 stores in the southeastern United States.
We also own a 55,600 square foot ice cream manufacturing facility and lease a 32,000 square foot
storage facility located in El Monte, California.
As a result of our April 2014 acquisition of RediClinic, we lease approximately 19,600 square feet
in 35 HEB grocery stores in Texas under a master lease agreement that contains various renewal
options through 2024.
As a result of our June 24, 2015 acquisition of EnvisionRx, we lease approximately 242,000 square
feet of space in various buildings primarily in Twinsburg, Ohio for additional administrative personnel.
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