Credit Tenant Lease Bond Finance

Credit Tenant Lease (CTL) transactions are structured as private placement bonds that focus primarily on the creditworthiness of the tenant and the strength of the lease structure and secondarily on the property type, location and quality of improvements.

Loan Underwriting:

  • Up to 100% LTV / no constraint on loan-to-cost
  • Minimum 1.00x to 1.05x DSCR
  • 0% vacancy allowance
  • Minimal expense deductions (annual trustee fee and any lessor expenses)
  • Investment grade or equivalent tenants
  • All property types financed
  • Non-real estate collateral can also be financed (i.e. equipment, tenant improvements, etc.)

Loan Types and Lease Structures:

  • Leased fee interests in real estate comprised of land and improvements
  • Leased fee interests in ground leases
  • Leasehold interests with either subordinated or unsubordinated ground leases
  • Lease can be Modified Gross, NN (double net), NNN (triple net) or Bondable
  • Leases with remaining terms of typically 10 to 30 years or longer

Loan Terms:

cornell
Ithaca, NY

$50,878,000

Fixed rate construction-to-permanent CTL Private Placement Bond financing.