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Public-record case study

Walgreens Thatcher Woods: parking lot capex pass-through case study

A public-record retail lease case study showing ~$18,746 in apparent overcharges from parking lot resurfacing and curb replacement billed through CAM.

Walgreen Co.2021 statementNNN leaseRetail

Apparent overcharge

$18,746

Findings

2

High confidence

$18,746

Source

SEC EDGAR, Walgreen Co. 10-K Exhibit 10 retail lease
Parking Lot Full Resurfacing was billed at $185,000 building-wide.
Concrete Curb & Gutter Replacement added $42,500 building-wide.
Both line items were labeled as CapEx in the reconciliation.
The pipeline flagged approximately $18,746 in apparent overcharges across 2 findings.

What happened

Walgreens leased 15,503 square feet at Thatcher Woods Center (188,213 SF GLA) under a lease that excludes capital expenditures and puts parking lot maintenance on the landlord. The 2021 CAM statement still passed through a full parking lot resurfacing project and concrete curb replacement as if they were ordinary operating costs. At the corrected 8.24% pro-rata share (15,503 SF / 188,213 SF), the total apparent overcharge is approximately $18,746.

Findings from the pipeline

Rule 2: Excluded Service Charges

high confidence

$15,244

'Parking Lot Full Resurfacing (CapEx)' is classified as capex and falls within the capital expense pool excluded by the lease. [scaled to tenant share: 8.2400%]

Lease evidence

CAM charges shall not include capital expenditures, including but not limited to parking lot resurfacing, roof replacement, structural repairs, or any item required to be capitalized under generally accepted accounting principles. Section 5.6(b).

Section 5.6(b)

Statement references

  • Parking Lot Full Resurfacing (CapEx)

Rule 2: Excluded Service Charges

high confidence

$3,502

'Concrete Curb & Gutter Replacement (CapEx)' is classified as capex and falls within the capital expense pool excluded by the lease. [scaled to tenant share: 8.2400%]

Lease evidence

CAM charges shall not include capital expenditures, including but not limited to parking lot resurfacing, roof replacement, structural repairs, or any item required to be capitalized under generally accepted accounting principles. Section 5.6(b).

Section 5.6(b)

Statement references

  • Concrete Curb & Gutter Replacement (CapEx)

Lease evidence

  • Section 5.6(b) excludes capital expenditures from CAM.
  • Parking lot resurfacing is called out explicitly as an excluded capital item.
  • The lease assigns parking lot maintenance to the landlord.
  • Corrected tenant share: 8.24% (15,503 SF / 188,213 SF Thatcher Woods Center GLA).

Why this matters

Parking lot work is one of the most common places landlords blur the line between maintenance and capital replacement. A sealcoat or patch job may belong in CAM. A full resurfacing project usually does not. When the lease also assigns parking lot responsibility to the landlord, the overcharge argument gets even stronger.

Dispute letter draft excerpt

CAM Reconciliation Statement Review - Thatcher Woods Center | Lease Year 2021. The review flagged approximately $18,746 in parking lot resurfacing and curb replacement charges billed through CAM.

Related Resources

Lease languageCapital expenditures in CAM chargesIndustry guideRetail CAM overcharges guideDetection guideExcluded service charge guide
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Public-record note

This page summarizes public-record documents and CAMAudit output for educational and marketing purposes. It does not imply endorsement by CVS, Target, or any third party. Readers should review the underlying lease, statement, and dispute timeline for their own facts.

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Recovery of past CAM overcharges depends on your specific lease terms, including any audit rights deadlines or ‘binding and conclusive’ provisions, and on applicable state law. State statute of limitations periods apply to written contracts and range from 3 to 10 years; your actual lookback window may be shorter based on your lease. CAMAudit is a document analysis platform, not a law firm, and nothing on this site constitutes legal advice. Consult a licensed real estate attorney before initiating any dispute or legal proceeding.

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