Rockland Commercial

222 N Sepulveda Blvd STE 2000

El Segundo, CA 90245


P : [800]572-4080
F : [310]622-4186








Home > Credit Tenant Lease Financing


Credit Tenant Loan

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