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Credit Tenant
Financing
Credit Tenant Lease (CTL)
financing is a powerful tool to maximize the financing on your
commercial real estate properties leased to investment grade tenants for
either existing or to-be-built properties. Financial Advantage also has
programs for CTL tenants that are below investment grade. Please see
Single Tenant
Properties.
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Debt service coverage is as low as 1.003
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100% Construction financing available for "Build-To-Suit"
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No loan to value constraints
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No deductions for management or vacancy
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No cost per square foot constraints
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Pre-development funds available on case by case projects
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Buyers Available For Credit Tenant Leased Properties
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Tenants with a credit rating of BBB--or better
Credit Tenant Loans
Qualifications
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Public or private
companies
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National or
regional in operation
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Rated investment
grade (BBB/Baa2 or better) by public debt rating service such as
Standard & Poor's or Moody's--public debt ratings are preferred, but
not required.
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Minimum tangible
net worth of $50 million
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Five years of
audited financial statements available for review
Rating Agencies
Credit Tenant Loans Parameters
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Loans of $2
million and above
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Rate lock at
application
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30/360 interest
rate calculation
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Full amortization
or covered balloon exposure at maturity
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Good faith
deposit refundable at loan closing
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Special purpose
entity borrower preferred but not mandatory
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Closings
generally handled utilizing in-house staff, local counsel as needed
depending on size and complexity of the transaction
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Open to
prepayment from origination with yield maintenance
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Transfer/assumption rights allowed subject to lender's review and
approval
Examples of Tenants Financed Under This Program
Wal-Mart, Amoco
Oil, Circuit City, CVS Corp., Tandy, TJMax, Nationsbank,
Bridgestone/Firestone, Pep Boys, Chase Manhattan, Stop & Shop,
Mobile Oil, BlueCross/Blue Shield, Federal Express, Key Bank, US
Post Office, Lowe's Companies, Exxon, Walgreen, Food Lion,
McDonald's, Sears, Winn Dixie, Home Depot, Wellpoint, Georgia
Baptist Hospital.
Please contact an Account Executive
Rate and
terms subject to change without notice |
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