Rite Aid Corp. v. Otis

OPINION OF THE COURT

Egan Jr., J.

Petitioner is the lessee under a 20-year triple net lease of a free-standing retail pharmacy located near exit 11 of Interstate 87 in the Town of Malta, Saratoga County. A local developer purchased the parcel upon which the pharmacy is situated in 2004, entered into a build-to-suit arrangement with Eckerd Corporation—petitioner’s predecessor in interest—and thereafter constructed the 13,813-square-foot building at a cost of roughly $2.5 million. In August 2005, the developer sold the property to an income investor for approximately $3.6 million and, insofar as…