Credit Tenant Lease financing (CTL) to borrowers for acquisitions, refinance or construction of a variety of property types that are tenanted by investment-grade rated tenants.
CTL financing is a powerful tool that maximizes the financing on your commercial real estate properties leased to investment-grade tenants for either existing or to-be-built properties. Acceptable property types include Single Tenant Retail, Corporate Office, Industrial (warehouse distribution) and Government leased properties.
While traditional commercial real estate loans are written against the value of the land, as well as the credit and business record of the borrower, Credit Tenant Lease financing primarily emphasizes the credit quality of the tenant and lease structure in order to establish a cost of borrowing. Investment-grade tenant loans tend to price and trade like bonds in the capital markets. Pricing for non-investment grade and non-rated tenants requires additional analysis to include, among other risks, the value of the real estate asset.
With our lending partners, Lendmark can arrange CTL loans ranging in size from $1 million up to $50 million or more on single properties or large multi-property portfolios. Available in North America & selected International.
Typical transactions often include the following credit tenants:
Retail including drug, home improvement, grocery, big box and convenience stores and bank branches
Government including U.S. Federal (G.S.A., V.A., F.B.I., etc.), municipal (states, cities, counties) and quasi-governmental (authorities, park districts, etc.)
Institutional including healthcare (medical offices, administrative buildings, clinics), education (universities, colleges) and cultural
Corporate including single-tenant offices, manufacturing facilities, distribution centers and data centers
Non-rated or below investment-grade credits available on a case-by-case basis.
Funding available up to 100% of total development costs for developers constructing single-tenant retail developments from $1 million to $25 million.
There is no need for the developer to raise or contribute equity, or secure bank construction financing, because our lender provides up to 100% LTC construction financing. The developer receives typical development fees and profit, as opposed to the earnings received in straight fee development deals.