Before any owners of the real estate on either side does a dance or panics, the deal is far from closed. Approvals from the government are needed, which may not be an easy task.
For Rite Aid, real estate owners without any close by Walgreens locations, may have made a lot of money. The value of your real estate could have gone up, since Walgreens’s sells at a higher price that Rite Aid’s do.
But I can also tell you there will be a lot of vacancy’s caused by the consolidation, leases will not be renewed, as well it will trigger more vacancy other than the store locations as some other tenants have co-tenancy clauses. To make matters worse, a lot of loans will be put into default, not only if they can’t make the payments. But owners run the risk of loans being put into default or have the service’s lock down the cash and cause a “trigger Period” because of a major tenancy clause in the loan documents, or lower debt service coverage ratios that the loan documents allow.
So you should look at your commercial real estate, analyze it and see if your vulnerable and start to take steps to prepare.
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