CVS Health

Anaheim, CA


A1/A2 Pari-passu CTL Private Placement Bond financing.
  • 29-year CVS lease for an air space parcel on the first floor of a five-story hotel
  • 2 pari-passu notes: 29-year A1 Note and 22-year A2 Note
  • Lease contained landlord obligations (M&R, structural, insurance, taxes) for entire project - project declaration was amended and hotel owner assumed responsibility and cost for these obligations
  • Tenant may abate rent or terminate lease in event of casualty, condemnation or loss of parking
  • Use of 1.05x DSCR, gap and rent loss insurance, reserves and limited personal recourse to mitigate risks