Commercial real estate developers and owners turn to us as a trusted leader in credit tenant lease (CTL) financing. We have structured and originated about 500 CTL transactions totaling more than $3.3 billion over the past 15 years.
CTL financing allows commercial real estate property developers and owners to fully leverage the lease rental stream from a single-tenant property. Because the CTL structure is viewed as a bond (credit) rather than a real estate loan, spreads and interest rates are based on the credit of the tenant instead of traditional real estate underwriting criteria. CTL transactions provide:
- Loan-to-value (LTV) ratios of up to 100 percent
- No limit on loan dollars per square foot
- 1.00x to 1.05x minimum debt-service coverage
- Nonrecourse financing to the borrower
- Amortization that typically corresponds to the initial lease term or can also be structured with a longer amortization/balloo
Other CTL structuring features can accommodate:
- One-stop construction and permanent loan financing
- Mitigation of non-credit risks of the lease through insurance policies, escrows, or reserves
- Properties in secondary and tertiary markets
- Power centers, shopping centers, or mixed-use developments anchored by credit tenants
- Condominiumized projects
CTL transactions are used to provide financing for a wide range of property types that are typically leased by investment-grade tenants. View a list of tenants we have financed on a CTL basis. CTL transactions can be applied to the following property types:
- Retail stores
- Hospitals and healthcare facilities
- Government buildings
- Headquarters/Office buildings
- Manufacturing, R&D, and laboratory facilities
- University/College facilities
- Distribution and warehouse facilities
- Data centers
- Bank branches
- Ground leases
Credit Tenant Lease Pricing Quote and Credit List Request Form