Description

A focused course, tailored for you

The Drugstore Net-Lease Underwriting Discipline

A working method for pricing single-tenant drugstore deals when the tenant credit story keeps moving under you.

You finish a BOV at a 6.50 cap on a strong-store CVS, and by the time the seller calls back the buyer's broker has circled three closures within ten miles and reset the conversation to 7.00. You need to be the one who saw the closure pattern first, scored the store, and walked the seller through the defensible number, before the buyer's analyst does.

$199 one-time

Tailored to your situation. Access within 24 hours. 30-day money-back.

Includes a hand-built implementation playbook delivered alongside course access, generated for your specific situation.

Why this course

Single-tenant drugstore investment sales used to be a credit-and-coverage exercise. Now it is a store-rationalisation exercise wearing a credit-and-coverage hat. The Rite Aid bankruptcy reshaped pricing on every Walgreens and CVS deal for eighteen months. The next round of Walgreens store closures will do it again. The cap-rate that holds at close is the one the seller can defend with a store-specific narrative, not a tenant-wide credit rating, and that narrative has to be in the BOV from the start.

The discipline that holds the number is methodical: read the latest tenant 10-Q and earnings call for the store-rationalisation signals the press release leaves out, score the specific asset against the closure pattern, model the lease assumption mechanics under a bankruptcy scenario, and price the residual real-estate value as a backstop. Each of those is a teachable skill. Most of the deals losing fifty to seventy-five basis points at the eleventh hour are losing them because one of those four steps was skipped or done off the cuff.

What you walk away with

Read a drugstore tenant 10-Q and earnings call for the store-rationalisation signals that move pricing, separately from the headline credit rating.
Score a specific store against the closure pattern using location, format, lease economics, and corporate footprint signals.
Build a cap-rate justification inside the BOV that anticipates the buyer's store-specific pushback rather than reacting to it.
Model lease assumption mechanics under a bankruptcy or rejection scenario and explain the residual real-estate backstop.
Hand the seller a one-page narrative that holds the number on the call when the buyer's broker circles three nearby closures.

The 12 modules

Module 1. What the cap-rate conversation actually turns on now

Why drugstore pricing has moved from tenant-credit comparables to store-specific rationalisation reads. The structural shift after Rite Aid, what changed in the Walgreens footprint, what CVS's HealthHUB strategy implies for store-level survival. The shape of the BOV conversation you should expect from a sophisticated buyer's broker, and the four artefacts that decide whether the seller calls you back or shops the asset.

Module 2. Reading the tenant 10-Q for store-rationalisation signals

How to skim the latest drugstore tenant 10-Q in twenty minutes and pull the three or four numbers that actually predict store closures: same-store sales by format, lease-expiration ladder, impairment charges by region, and pharmacy script trends. Worked example on the most recent CVS and Walgreens filings, with annotated pages showing exactly which sentences to circle and which to ignore.

Module 3. Reading the earnings call for closure-list intent

The earnings call language that precedes a store-closure announcement by one to two quarters. Specific phrasing patterns from prior Walgreens, CVS, and Rite Aid calls that mapped onto actual closure lists. How to translate analyst-question answers into a forward read on the chain's rationalisation appetite. A scoring rubric you run against the next earnings call before the BOV goes out.

Module 4. Scoring a specific store against the closure pattern

A repeatable scoring sheet for any single drugstore: trade-area demographics, format vintage, store size relative to corporate average, proximity of competing stores in the same banner, neighbouring tenant mix, lease economics relative to local market rent. Worked through on three real assets, showing how a high-cap-rate deal scores as defensible and a tight-cap-rate deal scores as exposed.

Module 5. Lease structure as the second-order signal

How to read the lease itself for closure risk: base-term remaining, option structure, rent bumps, percentage rent triggers, exclusives, co-tenancy clauses, and assignment language. Why an extended-term deal with aggressive bumps can score worse than a shorter-term deal with flat rent. Specific lease provisions that move pricing materially and the ones brokers commonly over-weight.

Module 6. Modelling the bankruptcy and rejection scenario

How a Section 365 rejection actually plays out for a single-tenant drugstore asset: cure rights, administrative-claim treatment, rejection-damage caps, and the timeline a seller should plan for. A worked model showing residual real-estate value under three scenarios, with the inputs a buyer's IC will probe. The point is not to predict bankruptcy; it is to price the backstop confidently when a buyer raises it.

Module 7. Writing the cap-rate justification that survives the IC memo

The two-page cap-rate justification that goes inside the OM. Structure: store-specific score, tenant-credit read, lease-structure read, residual real-estate floor, comparable transactions filtered for similar exposure. Why the standard tenant-wide credit paragraph loses on a sophisticated buyer's IC and what to put in its place. Annotated example built around a real strong-store BOV.

Module 8. Handling the buyer's analyst when they pull the closure list

The script for the call where the buyer's broker says they have circled three closures within ten miles. What to concede, what to push back on, and how to redirect the conversation to the store-specific score you already built into the BOV. A short worksheet for the seller-side broker to run the call from, rather than receive it. Includes the three most common analyst angles and the one-line response that holds each.

Module 9. Telling the seller the truth about the number, early

Why the deals that lose seventy-five basis points at the eleventh hour are usually the deals where the BOV was priced for the seller's expectations rather than the buyer's read. How to have the cap-rate conversation with the seller at the BOV stage, using the store-specific score as the lever rather than a generic credit warning. The wording that keeps the listing and the wording that loses it, with worked examples from both outcomes.

Module 10. Working the marketing process around tenant news

What to do when a store-closure list drops mid-marketing. The forty-eight-hour playbook: re-score the asset, draft a one-page seller note, prepare the revised buyer Q&A, decide whether to repackage or hold. Three real-world scenarios worked through, including a Rite Aid-list drop, a Walgreens optimisation announcement, and a CVS footprint reset. Includes the seller-call structure that keeps the listing alive through the news cycle.

Module 11. Residual real-estate as the backstop story

How to price the dirt and the box independently from the tenant story, and how to put that valuation in front of a buyer's IC. Comparable land sales, demising costs, second-generation use scenarios for a typical 13,000 to 15,000 square-foot drugstore box. Worked examples for suburban infill, secondary market, and tertiary market assets. The residual-floor calculation that gives a sophisticated buyer permission to underwrite to a tighter cap.

Module 12. Building the desk practice around the discipline

How to turn the methodology from a single-deal habit into a desk-level practice. The weekly tenant-news scan, the monthly portfolio re-score, the quarterly listings review against current closure data. The internal templates to share with junior analysts so the BOVs going out under the team's name carry the same discipline. The conversation to have with senior brokers about why this approach lengthens the cycle but materially raises the close ratio.

How this addresses your situation

Specific modules that map to what you said you are dealing with.

You have a BOV due Friday on a strong-store CVS in a secondary market, and you want the cap rate to hold through the buyer's IC.

Walgreens just announced another optimisation round, and you have three active drugstore listings that need re-scoring before the seller calls.

A buyer's broker sent over a closure-list spreadsheet at four on a Tuesday, and you need a credible response ready before the call at ten on Wednesday.

A senior broker on the team is taking the desk into more drugstore deal flow, and you want a shared methodology before the volume picks up.

What you get with this course

Twelve text-based modules, each with a worked example drawn from real drugstore deals.
Downloadable templates: the store-rationalisation score sheet, the lease-structure score sheet, the cap-rate justification two-pager, the seller-call worksheet, the forty-eight-hour news-cycle playbook.
A hand-built implementation playbook tailored to the recipient's typical asset profile (banner, market tier, deal size).
Access in the Art of Service learning environment, self-paced, no expiry.
30-day money-back if the methodology does not change how the next BOV is priced.

What you will have in hand by Day 1, Week 1, Month 1

Within 24 hours: account in the Art of Service learning environment is provisioned and the tailored implementation playbook is delivered alongside it.

First week: modules one through four, building the read on the tenant and the store.

Second week: modules five through eight, building the BOV-level justification and the buyer-call discipline.

Third week: modules nine through twelve, building the seller relationship and the desk-level practice.

Before and after

Before

You react to the buyer's store-closure spreadsheet on the call. The seller hears the cap rate widening in real time, and the listing either renegotiates or walks.

After

The store-specific score is in the BOV the seller signs. The buyer's analyst opens the closure-list spreadsheet, finds it already addressed in the cap-rate justification, and the conversation moves to the residual-floor calculation rather than a price reset.

What happens if you do not address this

Drugstore credit news will keep moving against the desk through the next several quarters. Each unaddressed closure announcement that hits an active listing is fifty to seventy-five basis points of cap-rate erosion on that deal, plus a harder seller relationship on the next one. The desk that keeps pricing to last year's tenant-credit assumptions loses listings to the desk that prices to this quarter's store-rationalisation read.

Who it is for

A Senior Associate or Associate on a net-lease investment sales team whose deal flow is meaningfully exposed to drugstore tenants. You price BOVs, you handle the seller call when the buyer comes back with pushback, and you write the cap-rate justification that goes into the OM. You are the person the senior broker turns to when the buyer's analyst sends over a store-closure spreadsheet at four on a Tuesday.

Who this is NOT for. Not for ground-up developers, not for property management, not for residential investment sales, not for capital markets debt brokers. Not for anyone whose drugstore exposure is limited to one or two deals a year. The course assumes you are pricing drugstore single-tenant deals as a regular part of the desk.

How it arrives

Text-based course in the Art of Service learning environment, plus downloadable templates and worked examples for every module, plus the hand-built implementation playbook delivered alongside course access.

Time investment. About fifteen to twenty hours total across the twelve modules. Most associates run it across three weeks at four to six hours a week, slotted around live deal flow. The templates are designed to be used on a current BOV from the first module forward.

Why $199 is the right number

Free industry research from the major brokerage research desks gives the macro read on drugstore consolidation but stops short of a working method an associate can run on a specific asset. Net-lease conferences give peer conversation but no documented methodology. A senior broker on the team can mentor the discipline over years; this course compresses that into three weeks of structured practice with downloadable artefacts.

FAQ

Is this just for CVS and Walgreens?

The methodology applies to any single-tenant drugstore: CVS, Walgreens, Rite Aid where still operating, regional chains. The worked examples lean on the two largest because they generate the most current deal flow and the most pricing-relevant news.

I am pricing dollar-store and other single-tenant deals too. Does this help there?

The store-rationalisation framework transfers directly to dollar-store and other single-tenant retail credit work. The drugstore worked examples make the method concrete; the discipline is portable. The tailored implementation playbook can be built around your full single-tenant mix if you let us know up front.

How current are the worked examples?

The 10-Q and earnings-call worked examples use the most recent filings available at the time of your enrolment. The methodology is built to apply to the next filing and the one after that, not to a snapshot.

Who fulfils the implementation playbook?

Gerard Blokdyk at the Art of Service hand-builds it from your account profile and the asset mix you are pricing most. It arrives within 24 hours of enrolment.

What is the refund policy?

30-day money-back if the methodology does not change how the next BOV is priced on the desk.

30-day money-back guarantee. If after a week of working through the materials this is not what you needed, reply to the receipt email and a full refund is processed. No questions, no forms.

Within 24 hours your account in the learning environment is provisioned and the tailored implementation playbook is delivered alongside it.