Credit Tenant Lease (CTL) transactions are structured as private placement bonds that primarily focus on the creditworthiness of the tenant and the lease structure and secondarily on the property type, quality and location of the real estate.
Loan Underwriting:
- Up to 100% LTV
- 1.00 to 1.05x DSCR
- 0% vacancy allowance
- Minimal deduction for annual trustee fee
- Investment grade or equivalent tenants
- All property types financed
- Non real estate collateral financed
Loan Types and Lease Structures:
- Leased fee interests in real estate
- Leased fee interests in ground leases
- Leasehold interests with unsubordinated ground leases
- Lease can be Modified Gross, NN, NNN or Bondable
- Leases with remaining terms of 15 years or longer
Loan Terms:
- $2 to 500 million
- 30/360 interest calculation
- Fully amortizing fixed rate 15/15, 20/20, 25/25 up to 30/30
- Balloon payments with and without residual value insurance
- Rate lock upon commitment
- Yield maintenance at U.S. Treasuries plus 50 bps