Friedman Real Estate and Taconic Capital Advisors have acquired a 1.23 million square foot industrial portfolio for $46 million in a joint venture. The four-property portfolio, located in Waterford, Michigan and Liverpool, New York, was purchased from Rite Aid Corp. as a structured sale-leaseback.

The portfolio consists of 744,000 square feet across two distribution centers at 7245 Henry Clay Blvd. and 4577 Buckley Road in Liverpool, New York; a 407,000-square-foot distribution center located at 5400 Perry Drive in Waterford, Michigan, and an 87,000-square-foot vacant industrial building at 7189 Henry Clay Blvd., also in Liverpool. As part of the transaction, the joint venture also purchased more than 50 acres of land for possible future expansion and development.

The distribution centers were originally built by Michigan-based Perry Drugs and New York-based Fay's Drugs, which were acquired by Rite Aid Corporation. Rite Aid will continue to utilize three of the four buildings as distribution centers for its Midwest and East Coast e-commerce platform operations.