Posts Tagged ‘ctl’

Dollar General is Now “Investment Grade” – Eligible for CTL Finance

January 30, 2013

Attention Net Lease Investors, Owners, and Developers .  Dollar General is Now “Investment Grade” and  Eligible for CTL Finance.

Thanks to a recent upgrade Dollar General is now an investment grade corporate entity.

Now that DG is a “Credit Tenant” purchase, development and refinance of DG stores can be financed using Credit Tenant Lease (CTL) lending methods.

MasterPlan Capital can offer long-term (coterminous with the lease), high leverage (to 100% LTV or 100% LTC subject to a DSCR of ~1.05x), fixed rate, non-recourse, CTL loans against existing or planned (with executed lease) Dollar General locations.

Minimum deal size:    3 or more stores, $10mm

Minimum lease term: 10 years

Must be “stand alone” locations

Must be “net” leased. (NN, NNN or bondable)

Contact us or Apply for a CTL loan Online using our simple, one page, inquiry form.

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

February 17, 2012

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.

February 3, 2012

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.

February 1, 2012

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).

MasterPlan Capital Sharpens Focus in 2012; CTL Lending, Bridge Loans and Mortgages on Income Producing Commercial Property to be Emphasized

January 19, 2012

January 3, 2012
Greenwich CT

FOR IMMEDIATE RELEASE:

MasterPlan Capital Sharpens Focus in 2012

Commercial real estate investment banking firm, MasterPlan Capital, has disclosed its 2012 business strategy. In a written statement to clients, employees and investors the firm noted that it will concentrate its efforts on credit tenant lease finance, private bridge lending and commercial mortgage lending against income producing commercial real estate. MasterPlan will deemphasize it’s participation in joint ventures and other forms of equity finance and will not consider land or development loans except for triple net leased projects or for existing clients of the firm.

Regarding credit tenant lease (CTL) loans for triple net leased (NNN), single tenant assets the statement read, in part:

“CTL finance has been one of the healthiest sectors of commercial real estate finance and promises to remain to be strong well into the future. Net lease investors have realized that locking in today’s low rates for the long term is a smart business move. CTL offers them a fixed rate, fully amortized, non-recourse commercial mortgage with terms (coterminous with the lease) to 30 years. MasterPlan Capital can provide these income investors with the absolute lowest rates in the industry and can offer them a very high degree of certainty of execution. In-short, no CTL banker is more competitive in pricing or dependable in closing deals.”

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

The firm also commented on private bridge lending:

“As the economy slowly improves more competitors are entering the short-term, bridge loan space. We intend to compete aggressively for the best deals without subjecting our investors to undue risk. That-is-to-say, in certain instances we might lower our lending rates but won’t increase our loan-to-value (LTV) ratios, won’t offer non-recourse bridge loans and won’t do deals for the sake of doing deals.”

The statement noted that the firm intends to continue originating commercial mortgage loans against income producing commercial real estate:

“Income producing commercial real estate mortgage loans such-as loans against multi-family assets, leased up office properties and light industrial buildings will continue to be a bread-and-butter, activity for the firm.”

The firm went on to explain why it is moving away from joint ventures, equity finance and land and development loans:

“Other forms of structured finance such as joint ventures and equity finance offer the potential for high returns to our company but are very taxing on the time and workload of our people and our third party service providers. We have determined that our valuable time is better spent on our core businesses. As-for lending against land and for construction and development, we will continue making these types of loans against unimproved real estate that is net leased to a single investment grade tenant and for existing clients of our firm but otherwise will no longer be accepting applications for land loans.”

About MasterPlan Capital LLC:

MasterPlan Capital is dynamic, privately held commercial real estate investment banking firm offering credit tenant lease (CTL) loans, commercial mortgage loans and asset management services to commercial real estate investors and owners in the lower 48 states. Clients and prospective borrowers can apply for financing at the firms web site (http://www.masterplancapital.com)  or by calling 1-800-727-5140.

Developers can use credit tenant lease (CTL) finance to fund construction of new NNN leased real estate – This article Outlines 2 Simple Methods

October 18, 2011

Investors and developers of single tenant net leased real estate know the benefits of NNN investing. This unique type of real estate can provide a safe and dependable stream of monthly income for decades to come.

But securing a construction loan for any commercial real estate has been exceedingly difficult over the last four years.

The President of MasterPlan Capital LLC, Glenn Fydenkevez, has written an interesting and informative article outlining two ways CTL loans can be used for ground-up construction financing.

Click Our Logo to Apply for A Credit Tenant Lease (CTL) Loan

The two methods are, A CTL loan coupled with a Stand-by Letter of Credit, and a Forward Commitment for a CTL loan. If you develop NNN real estate or are considering undertaking a net leased, single tenant building project, this piece will be worth your time.

READ THE ARTICLE HERE or you may contact us with any questions you may have on CTL or other aspects of commercial real estate finance.

Money Available for Walgreens Credit Tenant Lease (CTL) Loans – Special Low Rates for Loans against Portfolios (3+ Locations, $15MM+ Loan Balance)

September 19, 2011

Commercial real estate investment banking firm, MasterPlan Capital LLC is actively seeking to fund credit tenant lease (CTL) loans against stand alone, net leased, Walgreens stores. The firm has significant but limited liquidity for Walgreens loans and specifically is looking to make loans of $15MM or more against portfolios of 3 or more Walgreens locations that can be cross collateralized. Sponsors, owners, developers and investors can inquire or apply for CTL financing online or may call 800-727-5140 xtn 1.

Loan:                 First Position Commercial Mortgage
Recourse:          Nonrecourse
Type:                  Fixed Rate, Full/Self Amortizing
Rate:                   Interpolated US Treasury Rate + Margin
Minimum:         $3MM (prefer $15MM+)
LTV:                    To 100% (subject to DSCR)
DSCR:                  1x-1.05x 
Term:                   Co-Terminus with Lease
Assumable:         Yes
Time to Close:      45-60 Days
Funding:                Private Placement Bonds

Financing is Available for Walgreens Portfolios – Capital for Credit Tenant Lease (CTL) Loans against Multiple Walgreens Locations – Special Pricing (Low Rates) for 3+ Stores, $15MM+ Loans

August 15, 2011

Commercial real estate investment banking firm, MasterPlan Capital, has a significant, but limited amount of capital available to fund credit tenant lease (CTL) loans for the purchase, refinance and construction of multiple Walgreens stores.

Sponsors with 3 or more Walgreens locations ($15MM+) who are willing to cross collateralize the properties will find current interest rates extremely attractive.

The firm notes that Walgreens financing remains tentative, due to over saturation of Walgreens debt in investors portfolios, but is available as-of right now.

Property owners, builders and investors can apply for a CTL loan on line or can call 800-727-5140 xtn # 1 for a phone consultation.

Why Credit Tenant Lease (CTL) Loans Have Been Closing While Traditional Lending has Faltered

August 5, 2011

Throughout the credit and liquidity crisis that started several years ago and continues today, credit tenant lease (CTL) lending has remained relatively healthy. Indeed, CTL has been a welcomed bright spot in commercial real estate finance. CTL bankers never lost their appetite for originating loans and never lacked the liquidity it takes to fund them.

Why is it that CTL finance is able to thrive while almost all other forms of lending continue to struggle? There are several factors that contribute to the resiliency of CTL.

First is the fact that CTL loans are only made against real estate that is net leased (triple net [NNN], double net [NN] or bondable) on a long term basis to a single very stable, very strong corporate tenant. To qualify for a CTL loan a building or plot of land must be net leased to what is known as an “investment grade” or “credit” tenant. A credit tenant is one that enjoys a credit rating of BBB+ or better from the rating agency Standard & Poors and/or Ba1 or better from Moody’s. Because CTL loans only deal with strong tenants there is less risk to lenders and, subsequently, deals are easier to close.

Click Our Logo to Apply for A Credit Tenant Lease (CTL) Loan

Another factor that contributes to the strength of the CTL market is the fact that virtually all CTL loans are non-recourse. The borrowers finances will be checked out to see if they have enough money to pay any required closing costs but borrowers are not underwritten and won’t be on the hook if a loan defaults. Because lenders are not overly concerned with the financial strength of the borrower there are less things that can crop up and derail the lending process. Basically, if the lease and the tenant pass muster a loan will close.

CTL is a very straight forward process. Experienced CTL bankers know what will work and what will not. Because the private placement bonds that fund CTL loans are sold to insurance companies, pension funds, trusts and commercial banks, there are very strict criteria for qualification with no wiggle room or discretion allowed. Most CTL lenders will be able to tell you if a deal is doable after just one reading of the lease and they only accept deals they know they can get funded. If a CTL banker issues a letter of intent or term sheet for a deal, you can count on financing with a very high degree of confidence.
The standardized nature of CTL loans means that borrowers can get a definitive yes or no very quickly, and if the answer is yes they can count on funding.

Finally, the last reason for the relative health of the CTL market is that CTL lending and net lease investing is not necessarily correlated with traditional lending or regular real estate investing.

CTL lending is, in reality, a specialized form of commercial real estate investment banking. Investment bankers that make CTL loans fund deals by creating securities and selling them to investors, not by loaning capital or selling mortgages to Fannie Mae or Freddie Mac the way banks do.

Net lease investing (especially single tenant, NNN lease) is not the same as traditional real estate investing. In-fact net lease investing is actually a sophisticated form of fixed income investing. Traditional real estate investing typically involves running and managing a property or otherwise adding value to a transaction (such as refurbishing). Most net lease investors don’t have any landlord responsibilities or any physical or emotional connection to the real estate at all; most have never even visited the buildings they own. They buy and hold for the monthly income that a lease produces; they look at their real estate the same way other income investors look at bonds.

All this is to say that net lease investing and the CTL finance that goes along with it is a niche market and is much less affected by liquidity problems at banks or the ups and downs of the traditional real estate markets. This non-correlation allowed the CTL finance sector to continue to grow and thrive while the rest of the world experienced a severe shortage of capital.

There is no liquidity crunch in CTL finance. Investors with property that is net (NNN, NN or bondable) leased on a long term basis to a single, investment grade tenant will find that they have a dependable source of capital available to buy, refinance or build their real estate projects.

Read More Articles on Commercial Real Estate Finance –  Click Here – And Here

 

The Benefits of Credit Tenant Lease (CTL) Loans for Single Tenant, NNN Leased Real Estate

July 13, 2011
Credit tenant lease (CTL) lending has several distinct advantages over traditional commercial mortgage lending. No one type of financing is right for every situation but CTL should be considered whenever investors are buying, refinancing or building single tenant real estate that is , net leased (triple net (NNN), double net (NN) or bondable) to investment grade tenants.

Non Recourse – The sponsor / borrower is not underwritten and will not be on the hook if a loans defaults. If the tenant and the lease pass muster, the loan will close.

Click Our Logo to Apply for A Credit Tenant Lease (CTL) Loan

Speed – CTL loans have been known to close in 45 days from start to finish (60 days is typical). Conventional commercial mortgages can take 90-180 days to fund and close.

High Leverage – CTL bankers place no restrictions on loan-to-value (LTV) or loan-to-cost (LTC). If the debt service is covered (1-1.05x debt-service-coverage-ratio [DSCR]) by the rent CTL lenders will lend up to 100% LTV or LTC. CTL, without question, offers the highest loan balances in the commercial mortgage industry.

Fixed Rate – Rates on CTL loans are generally fixed for the entire life of the deal.

Self Amortizing – CTL mortgages are fully amortized with a term that is co-terminus with the lease. Borrowers won’t have to worry about coming up with large balloon payments or refinancing every 3, 5, 7 or 10 years.

Straight Forward Process – If the tenant is investment grade (BBB+ or better by S&P or Ba1 or better by Moody’s, or the equivalent), the property is stand-alone, single tenant and the deal carries a long term, net lease, CTL offers a very, very high degree of financing certainty.

Liquidity – There is no shortage of liquidity in the CTL sector of the commercial mortgage lending industry. Billions of dollars are available right now to finance single tenant, net leased, credit tenant real estate and bankers are actually eager to lend.