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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. Commercial Investment Capital Group (CICG) also has programs for CTL tenants that are below investment grade. 

  • Debt service coverage is as low as 1.00
  • 100% Construction financing available for "build to suit"
  • No loan to value constraints
  • No deductions for management or vacancy
  • No cost per square foot constraints
  • Pre-development funds available on case by case projects
  • Buyers available for credit tenant leased properties
  • Tenants with a credit rating of BBB- or better

Credit Tenant Loans Qualifications

  • Public or private companies
  • National or regional in operation
  • Rated investment grade (BBB-/Baa3 or better) by public debt rating service such as Standard & Poor's or Moody's-public debt ratings are preferred, but not required
  • Minimum tangible net worth of $50MM
  • Five years of audited financial statements available for review

Credit Tenant Loans Parameters

  • Loans of $2MM and above
  • Rate lock at application
  • 30/360 interest rate calculation
  • Full amortization or covered ballon exposure at maturity
  • Good faith deposit refundable at loan closing
  • Special purpose entity borrower preferred but not mandatory
  • Closings generally handled utilizing in-house staff, local counsel as needed depending on size and complexity of the transaction
  • Open to prepayment from origination with yield maintenance
  • Transfer/assumption rights allowed subject to lender's review and approval

Examples of Tenants Financed Under This Program

  • Walmart
  • Amoco
  • Circuit City
  • CVS Corp.
  • Chase Manhattan
  • TJMax
  • Home Depot
  • Walgreen
  • McDonald's
  • Pep Boys
  • Mobile Oil
  • Sears
  • Dollar General
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