222 N Sepulveda Blvd STE 2000

Credit Tenant loan maximizes the financing opportunities for existing or to-be-built properties leased to investment grade tenants. Credit tenant financing emphasizes the credit quality of 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 require additional analysis to determine the value of the real estate asset.

Features

• Debt service coverage is as low as 1.003
• 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

Requirements

• Public or private companies
• National or regional in operation
• Rated investment grade (BBB/Baa2 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 $50 million
• Five years of audited financial statements available for review

Structure

• Loans of $2 million and above
• Rate lock at application
• 30/360 interest rate calculation
• Full amortization or covered balloon 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