PetMed Express Inc. Announces $37M Sale‑Leaseback of HQ

What Happened On July 23, 2026 PetMed Express, Inc., through its wholly owned subsidiary 420 South Congress Avenue, LLC, entered into a Commercial Contract (with an Addendum) to sell the properties at 410 and 420 South Congress Avenue, Delray Beach, FL to Redfearn Capital Acquisitions, LLC for an aggregate purchase price of $37.0 million. The agreement contemplates a sale of the properties and a simultaneous leaseback of the portion currently occupied by the company (the Company Property). The lease (to be negotiated during the buyer’s Due Diligence Period) will cover 100,519 square feet at 420 South Congress Avenue, commence at Closing, and have an initial term of 120 months (10 years).

Key Details

• Purchase price: $37.0 million; Buyer deposits: $0.5M within 3 business days of contract and $1.7M after due diligence (held in escrow).
• Due Diligence Period: up to 30 days from contract date, extendable by buyer up to 45 days; Closing is 30 days after end of due diligence.
• Lease summary (Addendum terms): base rent $15.25/sf in year one, increasing 3.5% annually; triple‑net lease; three consecutive 5‑year extension options; tenant responsible for operating costs (with property management fees capped at 4% of gross rent).
• Additional lease terms: prepayment of the third year’s base rent and a security deposit equal to one year’s rent (subject to possible reduction); capital improvements and reserves to be excluded from operating expenses per negotiated exclusions.

Why It Matters This transaction would monetize PetMed’s Delray Beach real estate (including its principal executive office) while keeping the company in the same space under a long‑term lease. If completed, the deal provides near‑term cash proceeds but replaces property ownership with a contractual rent obligation and pass‑through operating costs, which will affect future cash flow and operating expense treatment. The sale is not final until the buyer’s due diligence is complete and the Lease is negotiated and executed at Closing; either party can terminate if the lease is not agreed prior to the end of due diligence. PetMed issued a related press release the same day.