Loan sizes: $500,000 to unlimited
Interest only or amortization
Loans can be structured to include an interest reserve
Joint Venture/Equity Partner
Credit Tenant Lease Financing
Real Estate Development Project
Sale Leaseback Financing
Line of Credit
Sale-leaseback transactions provide the lessee company with a source of capital that is an alternative to other financing sources such as corporate borrowing, mortgaging real property or selling shares of common stock.
Sale-leaseback financing is a form of financing in which a company sells its commercial real estate for cash and simultaneously signs a long-term lease with the buyer/investor. Sale-leaseback transactions provide the lessee company with a source of capital that is an alternative to other financing sources such as corporate borrowing, mortgaging real property or selling shares of common stock.
A company is able to convert the value of real estate assets into working capital it can use to:
Reinvest in the core competencies of its business
Purchase Price: $5 million to $500 million
Locations: North America, Europe, Asia and South America
Property Types: Industrial, office, warehouse distribution, self storage, hotels, retails and special use assets such as theaters and school.
• Immediate access to capital
• 100% market value realization of otherwise illiquid assets
• Potential to keep transaction off balance sheet
• Continued operational control of facilities
• Increased Return on Assets (ROA)
• Increased Return on Invested Capital (ROIC)
INNOVATION FINANCING FOR
• Debt reduction
• Mergers & Acquisitions
• Leveraged/management buyouts
• Corporate restructuring/exit financing
• Acquiring additional facilities, technology and equipment to grow the business
• Constructing new facilities
• Transition out of a synthetic lease, mortgage or other binding debt instrument
• Matching long-term assets with long-term liabilities
• Increased borrowing capacity through strengthened balance sheet
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.