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