Walgreens NNN Loans: 5.75% – 6.50% Non-Recourse 10-Year Fixed CMBS
PeerSense structures non-recourse CMBS conduit financing on Walgreens-anchored NNN single-tenant retail properties at 5.75%–6.50% 10-year fixed. Walgreens Boots Alliance carries BBB credit rating from S&P Global Ratings (Q1 2026). Corporate-guarantee deals qualify for 70%–75% LTV and 1.25x DSCR; 1031 exchange-ready execution within 180-day window.
10-yr / 15-yr / 20-yr lease terms · corporate guarantee · BBB-rated parent · 13,500–14,500 SF prototype · 1031 exchange ready · nationwide availability.
Last updated: ·By Ed Freeman, Capital Advisor — PeerSense
What are typical Walgreens NNN financing rates?
Walgreens NNN financing rates are 5.75%–6.50% on 10-year fixed non-recourse CMBS in April 2026. Corporate-guarantee Walgreens with 10+ year remaining lease prices 5.75%–6.25%. Max LTV 70%–75%, min DSCR 1.25x. Typical cap rates 5.50%–6.25%. Walgreens Boots Alliance parent corporation carries BBB rating from S&P (Q1 2026) — a notch below A-rated CVS and several notches below AA-rated Chase / Walmart.
Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated April 2026. Credit rating sourced from S&P Global Ratings Q1 2026 reports.
Walgreens — Credit Profile & NNN Investment Characteristics
Walgreens Boots Alliance (NASDAQ: WBA) is the second-largest U.S. pharmacy retailer behind CVS Health, operating ~8,700 U.S. stores as of Q1 2026. The company reports annual revenue north of $140B and maintains an investment-grade BBB rating from S&P Global Ratings, though the outlook has trended negative through 2024–2026 due to operational restructuring, reimbursement pressure, and the 2024–2027 store optimization program announced to close ~1,200 underperforming locations.
Walgreens' standard NNN lease structure is 15 years base term with 4–6 five-year renewal options, making the fully extended lease term up to 45 years. The corporate guarantee is provided by Walgreen Co. (the primary U.S. operating subsidiary), with Walgreens Boots Alliance as the ultimate parent. Lease terms include fixed-rent base payments with periodic bumps (typically 10% at renewal options), full NNN operating expense pass-through, and quiet-enjoyment protections favorable to the landlord.
For NNN financing purposes, Walgreens remains one of the most widely-financed credit tenants in U.S. commercial real estate — CMBS conduits, life insurance companies, and specialty NNN lenders all actively lend on Walgreens-anchored properties. The key underwriting questions in 2026: (1) is the specific property on Walgreens' closure list, (2) remaining lease term and any recent extensions, (3) store-level sales and rent-to-sales ratio, and (4) the sponsor's 1031 exchange timeline if applicable.
Walgreens NNN vs. Peer Credit Tenants — How Walgreens Prices
Every NNN lender underwrites the tenant first, the real estate second. Here's how Walgreens compares to peer credit tenants in April 2026 pricing — rate, LTV, DSCR, typical cap rate, and max loan size.
Walgreens BBB (S&P) | CVS Health A- (S&P) | 7-Eleven A (Moody's) | Dollar General BBB- | Rite Aid (post-BK) Unrated | |
|---|---|---|---|---|---|
| CMBS Rate (10-yr Fixed) | 5.75% – 6.50% | 5.75% – 6.25% | 5.85% – 6.35% | 6.50% – 7.25% | 7.50% – 9.25% |
| Max LTV | 70% – 75% | 70% – 75% | 70% – 75% | 65% – 70% | 55% – 65% |
| Min DSCR | 1.25x | 1.25x | 1.30x | 1.35x | 1.45x |
| Typical Cap Rate (Purchase) | 5.50% – 6.25% | 5.25% – 5.75% | 5.50% – 6.25% | 6.50% – 7.50% | 8.50% – 10.00% |
| Remaining Lease Preferred | 10+ years | 10+ years | 10+ years | 10+ years (15-yr base) | 5+ years post-bankruptcy reaffirmation |
| Guarantor Structure | Corporate parent (Walgreens Boots Alliance) | Corporate parent (CVS Health) | Corporate parent | Corporate parent (Dollar General) | Individual / operating co. — no parent guarantee |
| Primary Capital Source | CMBS conduit · life co. | CMBS conduit · life co. | CMBS conduit · life co. | CMBS · credit tenant lease specialist | Bank · specialty credit · private |
| 1031 Exchange Suitability | Excellent (most popular 1031 target) | Excellent | Excellent | Good (verify tax jurisdiction) | Fair (not preferred) |
| Typical Loan Size | $2M – $15M | $2M – $15M | $1.5M – $8M | $800K – $5M | $500K – $4M |
CMBS Rate (10-yr Fixed)Walgreens: 5.75% – 6.50%
- WalgreensBBB (S&P)
- 5.75% – 6.50%
- CVS HealthA- (S&P)
- 5.75% – 6.25%
- 7-ElevenA (Moody's)
- 5.85% – 6.35%
- Dollar GeneralBBB-
- 6.50% – 7.25%
- Rite Aid (post-BK)Unrated
- 7.50% – 9.25%
Max LTVWalgreens: 70% – 75%
- WalgreensBBB (S&P)
- 70% – 75%
- CVS HealthA- (S&P)
- 70% – 75%
- 7-ElevenA (Moody's)
- 70% – 75%
- Dollar GeneralBBB-
- 65% – 70%
- Rite Aid (post-BK)Unrated
- 55% – 65%
Min DSCRWalgreens: 1.25x
- WalgreensBBB (S&P)
- 1.25x
- CVS HealthA- (S&P)
- 1.25x
- 7-ElevenA (Moody's)
- 1.30x
- Dollar GeneralBBB-
- 1.35x
- Rite Aid (post-BK)Unrated
- 1.45x
Typical Cap Rate (Purchase)Walgreens: 5.50% – 6.25%
- WalgreensBBB (S&P)
- 5.50% – 6.25%
- CVS HealthA- (S&P)
- 5.25% – 5.75%
- 7-ElevenA (Moody's)
- 5.50% – 6.25%
- Dollar GeneralBBB-
- 6.50% – 7.50%
- Rite Aid (post-BK)Unrated
- 8.50% – 10.00%
Remaining Lease PreferredWalgreens: 10+ years
- WalgreensBBB (S&P)
- 10+ years
- CVS HealthA- (S&P)
- 10+ years
- 7-ElevenA (Moody's)
- 10+ years
- Dollar GeneralBBB-
- 10+ years (15-yr base)
- Rite Aid (post-BK)Unrated
- 5+ years post-bankruptcy reaffirmation
Guarantor StructureWalgreens: Corporate parent (Walgreens Boots Alliance)
- WalgreensBBB (S&P)
- Corporate parent (Walgreens Boots Alliance)
- CVS HealthA- (S&P)
- Corporate parent (CVS Health)
- 7-ElevenA (Moody's)
- Corporate parent
- Dollar GeneralBBB-
- Corporate parent (Dollar General)
- Rite Aid (post-BK)Unrated
- Individual / operating co. — no parent guarantee
Primary Capital SourceWalgreens: CMBS conduit · life co.
- WalgreensBBB (S&P)
- CMBS conduit · life co.
- CVS HealthA- (S&P)
- CMBS conduit · life co.
- 7-ElevenA (Moody's)
- CMBS conduit · life co.
- Dollar GeneralBBB-
- CMBS · credit tenant lease specialist
- Rite Aid (post-BK)Unrated
- Bank · specialty credit · private
1031 Exchange SuitabilityWalgreens: Excellent (most popular 1031 target)
- WalgreensBBB (S&P)
- Excellent (most popular 1031 target)
- CVS HealthA- (S&P)
- Excellent
- 7-ElevenA (Moody's)
- Excellent
- Dollar GeneralBBB-
- Good (verify tax jurisdiction)
- Rite Aid (post-BK)Unrated
- Fair (not preferred)
Typical Loan SizeWalgreens: $2M – $15M
- WalgreensBBB (S&P)
- $2M – $15M
- CVS HealthA- (S&P)
- $2M – $15M
- 7-ElevenA (Moody's)
- $1.5M – $8M
- Dollar GeneralBBB-
- $800K – $5M
- Rite Aid (post-BK)Unrated
- $500K – $4M
Program criteria current as of April 2026.
Tenant credit ratings sourced from S&P Global Ratings Q1 2026 public tenant reports. Actual pricing varies based on lease-remaining-term (WALT), rent-to-sales ratios, tenant improvement reserves, corporate vs. franchisee guarantee structure, and sub-market. Rate premiums shown are indicative — individual CMBS conduit spreads vary by originator, securitization schedule, and market volatility at rate lock.
Walgreens NNN Deal Patterns We Structure
1031 Exchange Walgreens Acquisition
You've identified a corporate-guarantee Walgreens with 10+ year remaining lease term inside a 1031 exchange. We close within the 180-day window, coordinate rate lock with your qualified intermediary, and pre-screen for closure-list risk. Typical purchase price $3M–$8M with 70%–75% LTV CMBS.
Walgreens CMBS Maturity Refinance
Your original Walgreens NNN CMBS is maturing. We check: corporate-guarantee still in place, closure-list clearance, remaining lease term adequate for new 10-year CMBS, and trailing NOI supports 1.25x+ DSCR. New CMBS likely prices 75–150 bps wider than your original vintage due to rating drift.
Walgreens Portfolio (3–10 Properties)
You own or are acquiring a 3–10 property Walgreens portfolio. Portfolio CMBS structures reduce concentration risk haircuts and improve execution economics vs. individual-property financing. Typical blended CMBS rate 25–50 bps inside single-property pricing at comparable LTV.
Recently-Extended Walgreens Refinance
Your Walgreens tenant recently executed a 5–10 year lease extension (exercising options or negotiating new base term). Refinance into new CMBS at improved pricing — the extended WALT unlocks lower spreads and higher LTV availability. Ideal pattern for cash-out if the property has appreciated.
Walgreens with Closure-List Clearance
Pre-screening every Walgreens deal against the current 2024–2027 closure optimization list is mandatory. We verify directly with Walgreens' real estate team (or via closure-list data providers) that the specific property is not flagged. Flagged properties trigger bridge or private credit alternatives vs. CMBS.
Walgreens NNN Financing — Frequently Asked Questions
What are typical Walgreens NNN financing rates?+
Walgreens NNN rates are 5.75%–6.50% on 10-year fixed non-recourse CMBS in April 2026. Corporate-guarantee Walgreens with 10+ year remaining lease prices at the tight end (5.75%–6.25%). Shorter lease terms (5–10 years) or Rite Aid-rebranded / franchise-owned properties price 25–75 bps wider.
What is Walgreens' credit rating in 2026?+
Walgreens Boots Alliance (parent company) carries BBB rating from S&P Global Ratings as of Q1 2026, with stable-to-negative outlook. Corporate-guaranteed Walgreens leases price as strong BBB credit-tenant NNN — tighter than Dollar General or 7-Eleven but wider than AA-rated tenants like Chase or Walmart. Monitor credit rating shifts quarterly as Walgreens restructures its retail footprint.
Does Walgreens still sign new corporate-guaranteed NNN leases?+
Yes, but Walgreens is closing underperforming stores as part of its 2024–2027 strategic review. New corporate-guaranteed leases are typically 15–20 years with 4–6 five-year renewal options. For financing, prefer properties with recently extended leases (post-2023), no closure announcement, and strong store-level sales (ideally verified via rent-to-sales ratio 5% or lower).
What LTV can I get on a Walgreens NNN loan?+
Walgreens NNN LTV: 70%–75% on corporate-guarantee with 10+ year WALT. 65%–70% on shorter lease terms. Max LTV depends on remaining lease term — CMBS conduits stress-test re-leasing risk if lease expires during the 10-year loan term. 1031 exchange buyers often qualify for the top of the LTV band given the extended hold horizon.
How do Walgreens closure announcements affect financing?+
Walgreens' 2024–2027 store closure program affects lender appetite. If the specific property is listed for closure or flagged in Walgreens' real estate optimization program, CMBS conduits may decline or require dark-value underwriting (the property's value if Walgreens vacates). Pre-screen each deal against the current closure list during LOI — a critical step we handle for every Walgreens NNN deal we structure.
Can I refinance my maturing Walgreens NNN CMBS loan?+
Yes, if (1) Walgreens corporate guarantee is still in place (not Rite Aid-reassigned or franchisee-assigned), (2) the property is not on a closure list, (3) remaining lease term supports 10-year new CMBS (ideally 10+ years or a recent 5+ year extension), and (4) trailing NOI supports 1.25x+ DSCR. Credit rating has drifted negatively since 2020 so new CMBS refinance pricing may be 75–150 bps wider than your original vintage.
Is Walgreens NNN 1031 exchange friendly?+
Yes — Walgreens NNN is among the most common 1031 exchange replacement property types due to BBB credit-tenant status, passive income profile, 15-year+ lease structures, and nationwide availability. Deals close inside the 180-day exchange window; we coordinate rate lock with your qualified intermediary. Favor properties with 10+ year WALT to maximize 10-year CMBS execution and minimize re-leasing risk underwriting.
What's the typical Walgreens NNN deal size?+
Typical Walgreens NNN property is $3M–$8M purchase price (13,500–14,500 SF building on 1.0–1.5 acre corner lot). Loan size typically $2M–$6M at 70%–75% LTV. Larger urban infill or Chicago-area Walgreens (flagship locations) can reach $10M–$15M+ loan size. Portfolio deals (3–10 Walgreens properties) are structured as single-pool CMBS at improved economics.
Deals We Fund
Representative deal profiles showing our typical financing structures and terms.
$12M Hilton-Flag Hotel — Charlotte, NC
6.75% fixed | 65% LTV | 52-day close
$8M Value-Add Multifamily — Tampa, FL
SOFR +395 | 75% LTC | 14-day close
$6.5M Mixed-Use Development — Austin, TX
80% LTC | Interest-only | 18-mo term
$2.8M QSR Franchise — 3 Units — Indianapolis, IN
Prime +2.75% | 25-yr term | 10% down
$3.2M/mo Manufacturing AR — Cleveland, OH
1.5% factor fee | 90% advance | 48-hr funding
$1.8M 6-Unit Rental Portfolio — Phoenix, AZ
7.25% | 75% LTV | No income docs | 1.25x DSCR
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Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated April 2026.
Disclaimer: Walgreens NNN financing rates, terms, and availability are subject to change based on tenant credit rating, remaining lease term, property condition, sponsor qualifications, and market conditions. Tenant credit ratings change over time; figures in this guide reflect Q1 2026 S&P Global Ratings. Rate ranges quoted reflect approximate April 2026 CMBS conduit pricing and may not reflect current market conditions at the time of reading. Walgreens corporate and franchisee lease structures vary — pricing outcomes are tenant- and lease-specific. PeerSense is a capital advisory firm, not a lender. We do not originate, fund, or service loans. All financing is provided by third-party lenders subject to their own underwriting criteria and approval processes. This page is not an endorsement or sponsorship of Walgreens or its parent corporation.