Posts Tagged ‘Walgreens’

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

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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.

Hanley Investment Group Moves 5 Walgreens Locations for $35MM

May 3, 2011

April was a good month for Hanley Investment Group Real Estate Advisors.

Among other transactions Hanley sold five Walgreens pharmacies for gross proceeds to their clients of over thirty five million dollars.

Retailtraffic.com has the story.

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Realty Income to buy Diverse Net Lease Portfolio for $544mm

April 1, 2011

The REIT Realty Income Corp (NYSE:O), is under contract to buy a portfolio of 33 single tenant, NNN leased properties for $544,000.000.00

In keeping with the firms core business discipline, much of the lease income being acquired will come from retailers, however several office, distribution and even manufacturing assets are included in the deal.

The portfolio is diversified across seventeen states and comprises 3.8mm sq/ft of leasable space.

Retail tenants include movie theaters leased to AMC, Cinemark and Regal and pharmacies leased to Walgreens. Tenants leasing office space include T-Mobile, Novus International and Solae. FedEx, International Paper and Caterpillar are among the tenants in the portfolio with leased distribution facilities. Manufacturing plants NNN leased to Coca-Cola and MeadWestvaco are also included in the deal.

There is about $291mm in debt currently encumbering the portfolio. Realty Income will pay off the lion’s share (~$223mm) right after the deal closes the remaining (~$68mm) will be dealt with some time in the future when existing yield maintenance per-payment penalties are more manageable.

The transaction is expected to close late in the first half of this year.

For Information on credit tenant lease (CTL) loans or to apply for CTL or other commercial real estate  financing click here or call Glenn Fydnekevez at 800-727-5140 x 101

Walgreens Beats Profit Estimates – Shares Rally

December 23, 2010

Via Proactiveinvestors :

Despite an inventory write-down and restructuring costs, Walgreen’s (NYSE:WAG) first quarter beat analyst estimates as gross margins increased. 

First quarter profit for the drug store chain increased nearly 19% year-over-year to $580 million, or 62 cents per diluted share. Restructuring costs related to the company’s affected its bottom line by about 3 cents per diluted share. 

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For the quarter ended November 30, total sales increased 6% year-over-year to $17.3 billion while same store sales edged up by 0.8%.  Prescription sales, which makes up about 66% of sales for the quarter, climbed 5.3% overall and 0.9% at stores opened for at least a year.  

The results trumped analyst estimates of a profit of 54 cents on revenues of $17.30 billion. 

“Our performance was driven by our continued focus on gross profit margins, cost control and the strategic slowing of our new store openings. As a result of improved merchandising, including promotions and pricing, we saw significant increases in gross profit margins in the front end, “said Greg Wasson, CEO of Walgreens.

Gross margins increased 80 basis points compared to the year-ago period to 28.5%.

During the quarter, Walgreens provided about 5.6 million flu shots, making it the largest flu shot provider in the U.S. beside the federal government.  But the number was less than expected, prompting the firm to take a 2 cents per diluted share inventory write-down.

During the quarter, the company opened or acquired about 121 new drugstores. 

Looking ahead, the company cautioned that “persistent high unemployment makes this a challenging retail environment during the holiday season”.  Christmas sales and the flu season are often key drivers for the company’s second quarter results.

As of 12:58 pm EST, the company’s shares have rallied 7% to trade at $39.49.

Walgreens Buys The Broughton Street Medicine Mart

December 21, 2010

A longtime Orangeburg franchised pharmacy has been sold to a national drug store chain.

The Broughton Street Medicine Mart was sold to Walgreens Dec. 11.

Former Medicine Mart owner Pat Wooten said Walgreens approached him in the summer and made him an offer he could not refuse.

“I had debated it a good while and thought it was time,” Wooten said. “I am not getting any younger.”

Wooten is now serving as a pharmacist at the Walgreens on the corner of Broughton Street and John C. Calhoun Drive.

Wooten said he enjoyed having his own store but said Walgreens reputation is stellar.

“From a business standpoint it was the right thing to do,” Wooten said, noting that financially the Medicine Mart was ‘holding its own.’

But with uncertainty in healthcare reform and the third-party payment system, Wooten said he thought it was time to try something new.

“It was not like my ship was sinking,” he said. – READ THE REST HERE

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Credit Tenant Lease (CTL) Lending is Alive and Well

November 18, 2010

Why Credit Tenant Lease (CTL) Loans Are Closing While Other Financing Is Stalled
By Vincent Remealto, MasterPlan Capital LLC

In today’s volatile commercial real estate lending environment, people want to know what’s working and what’s not.

While there is an ongoing liquidity crisis for land loans and most development projects, we are seeing some loosening in funding for income producing commercial buildings with cash flow that covers the debt service. In particular, one bright spot has been credit tenant lease financing or CTL lending.

CTL loans are a unique kind of commercial mortgage that is designed to finance commercial real estate that is triple net leased (NNN) on a long-term basis to an investment grade tenant. CTL financing is a highly specialized type of commercial real estate investment banking and is generally not offered by typical banks or brokers.

The CTL segment of the real estate finance industry is relatively healthy compared to traditional commercial mortgage lending. In-fact, once CTL term sheet is drawn up and agreed, to it is exceedingly rare that a banker fails to fund the loan and close the deal.

There are several important reasons that CTL loans are closing at a brisk pace while other loans are being rejected or never reaching the closing table.

Unlike standard commercial mortgages, CTL loans are non-recourse loans that are primarily backed by the terms of the lease and the strength of the tenant rather than the financial wherewithal of the borrower and the intrinsic value of the real estate. In-short, if the lease and the tenant pass muster, the loan will close.

CTL loans can be originated with up-to a 100% loan-to-value (LTV) ratio that is subject to a very small debt-service-coverage ratio of about 1.01. These relaxed ratios make it easier for cash strapped investors to come up with the cash necessary to get a deal done.

Also, CTL loans are funded by the investment bank issuing and selling corporate bonds in the private placement market. The investment grade bond market has remained remarkably strong throughout this recession and funding loans in this manner is much easier than trying to pry money away from a bank or an insurance company.

Because CTL loans are only written against buildings NNN leased to strong tenants, it is much easier to get purchase, refinance and even construction & development loans funded and closed. All that is necessary is an investment grade tenant, such-as Walgreens, Wal-Mart, Target, or the US Government and a triple net lease that spans at-least 10 years.

This debt crisis and the corresponding recession have been painful for everyone especially for real estate investors in-need of dependable financing. The pain continues in many sectors but credit tenant lease financing remains strong and reliable.

The author Vincent Remealto, is an analyst for MasterPlan Capital LLC.  About MasterPlan Capital: MasterPlan Capital LLC is a dynamic, privately held commercial real estate investment banking firm offering commercial mortgage loans, credit tenant lease (CTL) financing and other services to commercial real estate investors in the lower 48 states. Clients can apply for a commercial mortgage online. All inquires will receive prompt, professional service.

The Credit Tenant Lease Lending Process Explained by an Expert

June 16, 2010

Credit Tenant Lease (CTL) Lending – An Expert Explains the Process

Credit Tenant Lease (CTL) Lending – An Expert Explains the Process
By Vincent Remealto

Credit tenant lease (CTL) financing is a unique and highly specialized type of lending designed to fund the purchase, refinance or construction of real estate that is triple net leased (NNN) to a single investment grade tenant.

The CTL process is quite different from traditional commercial mortgage lending. The lease rather than the real estate itself is the primary collateral that backs the loan and the lending process is in reality an investment banking transaction.

Qualifying the Tenant

The fist step in the CTL process is to determine whether or not a given tenant will qualify. The company that backs the lease is required to be “investment grade”. This simply means that they need a good credit rating by one of the major rating agencies. For example any company rated BBB+ or higher by Standard & Poors should be eligible. The drug store chain Walgreen’s is an example of a typical credit tenant, Walmart and Home depot also credit worthy firms that are big in the NNN space.

Analyzing the Lease

Next the banker will want to do a comprehensive analysis of the lease. They must understand the exact extent of the landlord’s responsibilities (if any) and calculate the value of the building based on the income it will generate. They will also check to make sure the length of the lease period conforms to their CTL criteria. They will scour the document for any provisions or clauses that might undermine their ability to perfect a security interest in the property.

Executing an Application

Only after the tenant and the lease pass muster will the borrower formally apply for a CTL mortgage. The application details the loan amount, the interest rate, the term of the loan and makes a good faith effort at estimating loan expenses. If everything is in order the borrower signs the application and places a deposit with the bank.

Underwriting the Loan

After the application and deposit are received the banker will begin underwriting the loan. Third party reports such as appraisals, environmental reports and title work are ordered and the numbers are crunched. The borrower’s finances are also scrutinized during underwriting. CTL loans are non-recourse but the bank will verify that the sponsor has the financial wherewithal to get the deal done.

Issuing a Private Placement Mortgage Bond to Fund the Loan

The investment bank will issue a new private placement mortgage backed bond and link it to the target property. They fund the loan by selling the bond to fixed income investors.

Issuing the Loan Commitment

Once the mortgage bond is sold the loan is fully funded and the banker will issue a formal and binding loan commitment. Exact and final terms will be spelled out and locked in. The borrower will be asked to accept or decline the loan.

Closing

If the commitment is signed by the borrower, the closing and dispersing of the funds can happen as fast as lawyers can draw up documents and schedule a closing date. All the paperwork is reviewed and signed, the mortgage is recorded and the deal is wrapped up.

CTL loans can be completed from-start-to-finish in as little as 45 days, but 60 days is the typical time frame.

MasterPlan Capital LLCCommercial Mortgage Loans – Private and Institutionally Funded – CTL Loans From $3mm – Equity Financing – Asset Management – Simple, 1 Page Commercial Mortgage Application Online – Prompt, Professional Service – The author, Vincent Remealto, is a commercial real estate valuation and underwriting analyst for MasterPlan Capital.

Article Source: http://EzineArticles.com/?expert=Vincent_Remealto

http://EzineArticles.com/?Credit-Tenant-Lease-(CTL)-Lending—An-Expert-Explains-the-Process&id=4466680

Walgreens Credit Tenant Lease (CTL) Lending Back-on-Track

May 5, 2010

Late last year I reported that credit tenant lease financing for Walgreens stores was becoming increasingly hard to find. The shortage was not because Walgreens was not credit worthy nor was it due to the credit crunch that has gripped the banking industry for the last 20 months. Walgreens CTL loans were unavailable due to their extreme popularity and incredible demand.

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CTL loans are funded by investment bankers who issue private placement mortgage backed bonds and sell them to fixed income investors. The investors, mostly insurance companies, endowments and retirement funds, had purchased so many Walgreens bonds that they were full to capacity and could not take on anymore Walgreens debt. At the time I described Walgreens as a “victim of its own success”.

Well I’m happy to report that, for now, CTL lenders are once again lending against new and existing Walgreens stores as-well-as Walgreens development projects.

Followers of WAG know that the drug store chain has drastically curtailed their expansion plans. This slowdown in new store openings has in-turn, reduced the demand for new Walgreens mortgage bonds and has helped alleviate the CTL logjam that was preventing banks from underwriting WAG deals.

The stock market recovery has also contributed to the new-found liquidity in Walgreens mortgage debt. As the market grows so-to does the portfolios of the investors who buy WAG paper. The corresponding increase in the value of their portfolios has mitigated the problem of being overweight WAG bonds allowing them back into the market.

Also Walgreens bond buyers have raised their interest rate requirements slightly to account for the additional risk to their funds. This small risk premium is not due to a credit problem with Walgreens, but is derived from the disproportionately large Walgreens positions they hold.

So the combination of the slowdown in the Walgreens expansion, the rising stock market and a modest interest rate hike, have made Walgreens CTL lending possible again. This is truly good news for commercial real estate investors and bankers alike, but I’d recommend that those looking to finance a Walgreens purchase, refinance or construction project strike while the iron is hot. CTL financing is dependable, long-term, high leverage, non-recourse financing, but, as we saw during the last quarter of last year, Walgreens CTL loans can be discontinued without notice.

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Commercial Mortgage Lender; MasterPlan Capital LLC – Commercial Mortgage Loans from $1mm+, CTL loans against NNN leased properties from $3mm+. Apply for a commercial mortgage online.