Walgreens Workout Specialty Group

Slatt Capital, a full-service commercial mortgage banking firm headquartered in California, has recently formed an emergency Workout Specialty Group (WSG) for any loans affected by the Walgreens Boots Alliance tenant credit downgrade that was recently announced by Moody’s Investor Service in December 2023. The affected loans have language within their loan agreement that requires the loan servicer to trigger Cash Management Agreement (CMA) language in loans backed by Commercial Mortgage Backed Securities (CMBS).

The net effect of such an action is that cash flow on that property can be placed into a highly restricted Cash Management Account, otherwise known as a “lockbox,” which can only be cured by an upgrade to the tenant’s credit rating. It is undetermined if or when such a restoration of Walgreens Boots Alliance can be expected.

If you suspect your loan is one of these affected, or if you’ve already received a notification of the Cash Management Agreement trigger, please contact one of our dedicated WSG specialists to evaluate your options.

Options may include:

  • Very low prepay defeasance negotiations on existing loans
  • Refinance to a new loan without credit rating restrictions
  • Collateral substitution negotiation, readiness for assumption, or other special servicing options
  • Referral to qualified investment sales professionals to help sell the property


Please Provide the Following for Expedited Assistance:

  1. Current Walgreens Loan Agreement
  2. Most Recent Three (3) Years of Walgreens Store Sales Reports
  3. Your Personal Financial Statement (Any Form Will Do)
Commercial_Mortgage_Banker - Michael-Kaplan Commercial_Mortgage_Banker - Cody_Charfauros
Michael Kaplan
Cody Charfauros
Principal/Managing Director