Credit Tenant Lease Financing
Credit Tenant Lease Financing (CTL)
Typical transactions often include the following credit tenants:
Retail: drug, pharmacy, home improvement, grocery, big box, convenience stores, bank branches
Government: U.S. Federal, municipal, and quasi-governmental (authorities, park districts, etc.)
Institutional: healthcare, medical offices, administrative buildings, clinics, college, universities
Corporate: single-tenant offices, manufacturing facilities, distribution centers and data centers, Non-rated or below investment-grade credits
While traditional real estate loans are written against the value of the land, the credit, and business record of the borrower, CTL financing emphasizes the credit quality of the tenant and lease structure in order to establish the loan structure. CTL financing generally has several advantages over traditional real estate financing including, tighter pricing, lower debt service coverage ratios, maximum loan proceeds, and greater liquidity.
Today, CTL financing is a valuable source of capital and an effective use of the debt.
The Madison Group offers loan programs designed specifically for credit tenant lease financing nationwide. Our financial team will work with you to prepare a loan package, and obtain competitive rates and flexible terms to meet your investment goals. Loan terms offered are dependent on state, population, loan DSC and LTV. Our team will be able to work within these guidelines to ensure that you receive the best rates and terms that are crafted to your specific situation. Our goal is to assist you in building and maintaining your financial portfolio with our different mortgage programs. Allow us to use our expertise and knowledge to assist you in acquiring or refinancing your commercial property.
Loan Program Information
|Loan Limits||$1,000,000 Minimum|
|Rates||Competitive market pricing. Fixed or floating rates|
|Terms||Fixed Rate 15/15, 20/20, 25/25 up to 30/30|
|Amortization||25 to 30 Year Amortization|
|Prepayment||Several options including no prepayment penalty|
|Recourse||Nonrecourse available (subject to standard carve outs)|
|DSC||Debt coverage as low as1.0 to 1.05 |
|LTV||80% LTV/LTC Maximum and higher|
|Assumable||Yes to a qualified borrower.|
|Property types||Single Tenant Retail, Corporate Office, Industrial (warehouse
distribution), U.S. Government leased properties, large multi-property