To Qualify for Credit Tenant Lease (CTL) Finance Tenant Must Have “Investment Grade” Credit Rating

Credit tenant lease finance is an excellent source of capital for the purchase, refinance or development of net leased property. This unique method of lending against single tenant real estate can provide long term, high leverage, fixed rate debt to NNN investors quickly and efficiently, but it is important to realized that not all tenants qualify.

Click Here / Apply for A CTL Loan or call 800-727-5140 x 101

To secure CTL loans the tenant must have an investment grade credit rating from a major rating agency. Bankers have no leeway in this matter.

In order to be considered a “credit tenant” the entity must have a BBB- or better rating from Standard & Poors or a Ba1 rating (or better) from Moody’s.

Sponsors and investors with questions about CTL finance or NNN real estate investing are encouraged to call MasterPlan Capital at 1-800-727-5140 x 101 to speak with an expert or to begin the CTL loan process.

How to apply for a credit tenant lease (CTL) loan.-What Information is Needed for a Quick Yes or No Answer.

The single most important document a banker needs to see in-order to make a loan decision on the purchase, refinance or development of a single tenant, net leased (NNN, NN or bondable) is the lease itself.

The fact is that if the lease passes muster it is very likely a CTL investment banker can originate and close a fixed rate, high leverage (to 100% LTV), fully amortized commercial mortgage loan in under 60 days.

The executed lease will tell the bank several key pieces of information that are critical to a successful CTL loan. This information includes the lease guarantor, the address of the building, the extent of landlord responsibilities (if any), the monthly rent (from which they can accurately calculate the net-operating-income), the square footage of the building, the existence of any required reserves or escrows and a wealth of other valuable information.

Armed with the details that are included in the lease a CTL banker can, very quickly (usually within 48 hours), give a deal sponsor a highly reliable yes or no decision and if, after reading and analyzing the lease, the answer is yes they can count on an extremely high certainty of execution. The lease will also tell the banker the rent commencement date and how much time is left on the lease. This will allow them to check prevailing rates and calculate their maximum loan amount and the term of the mortgage.

The lease tells the bank almost all it needs to know to determine if a deal can be done.

Click Here / Apply for A CTL Loan or call 800-727-5140 x 101

If your deal is viable they will quickly issue you a quote, if you accept the quote you can expect your deal to close in 60 days or less.

Capital Available for Walgreens Mortgage Loans – Commercial Real Estate Investment Banker Earmarks $80mm for Walgreens Credit Tenant Lease (CTL) Loans.

CRE NEWS:
Jan 31, 2012

Commercial mortgage lender and real estate investment banking firm, MasterPlan Capital, has determined its 2012 capacity for credit tenant lease lending against Walgreens stores to be $80,000,000.00. 

Walgreens is a popular tenant among single tenant, triple net (NNN) investors and MasterPlan’s ’12 business plan allocates $80mm in capital for CTL loans for the pharmacy chain.

The firm will consider Walgreens CTL loans with a balance of $3mm or more but prefers portfolios of 3 or more stores with a loan balance of $15mm or better. MasterPlan also noted that it will originate loans against ground leases and construction projects if the numbers work but prefers purchase and refinance loans for fee simple, existing locations. The company’s business plan also revealed that it will shun Walgreens leases with less than 10 years left on them and will instead look to make loans against leases with at least 15 years left on the first leg. 

Walgreens is just one credit mentioned in the firm’s 2012 strategy and their plan noted that it can make loans against almost any tenant that has a long, net (NNN, NN or bondable) lease and an investment grade credit rating (BBB- or better by S&P, Ba1 or better by Moody’s).