Single and Credit Tenant Lease Financing

1. CTL Bond Loan (PDF Version)    



Collateral                         First deed of trust (Mortgage) on the property being financed, assignment of leases and rents and/or guarantee from credit tenant.


Loan Types                      Immediate funding, permanent, fixed rate loans.  A construction loan can be combined with the permanent loan with the use of a letter of 
                                              credit, allowing the interest rate to be fixed at the beginning of the construction period (see our
Construction Funded Forward Program). 
Forward commitments with a fixed interest rate may be available on a case-by-case basis depending on the lease and the credit being


Property Types               Single tenant properties occupied by tenants that are typically investment grade (S&P BBB-, Moody’s Baa3 or shadow rated NAIC 2) or better. 
Properties occupied by tenants not rated or rated below investment grade (BB+ and lower) may be financed on a case-by-case 
                                            basis.  Almost any property type can be financed under this program.


Locations Considered     Nationwide and selective international locations considered.


Lease Requirements       Bond net, triple net or double net leases (landlord responsibilities will be reserved and/or insured).  Lease payment hard lockbox required.


Ownership                        Must be a bankruptcy-remote special purpose entity (SPE), typically a LLC. 


Loan Amounts                 $2,500,000 and up. 


DCR / LTV                      1.00x to 1.05x depending on tenant rating and lease terms and conditions / Up to 97% of appraised value.  No loan to cost 
                                             restrictions - can exceed 100% of cost.


Interest Rate                    Fixed interest rate for the loan term, locked at commitment.


Expenses                          Third party reports (appraisal, environmental, survey, title, and credit); lender’s legal fees; property inspection and underwriting fee
                                             of $2,500, trustee fee of $4,000 and up, depending on the size of the transaction.


Term                                 Term of financing is coterminous with initial lease term, typically 10-30 years.  Shorter terms are available on certain   assets qualifying under our balloon loan programs.


Amortization                  Typically fully amortizing over the lease term on a 30/360 basis, though an amortization period longer than the lease term may be 
                                              available under our balloon loan programs. 


Guaranty                         Non-recourse except for standard non-recourse carve-outs (fraud, misrepresentation, environmental, etc)


Reserves                          Tax, insurance, and/or structural/maintenance reserves may be required depending on the lease.  Reserves are typically waived for NNN
                                              leases.  Cash or Letter of Credit holdbacks may be required for landlord warranty and project completion and punchlist items.


Prepayment                     Prepayment is generally open for the loan term with a yield maintenance prepayment premium payable thereafter that is based on U.S.     Treasuries + 50 basis points.

CTL Bond Loan Program Details (click on title for PDF file):

a.    Guidelines for Acceptable CTL Variances
b.    Processing and Funding Timeline
c.    Construction Funded Forward Program
d.    Third Party Reports
e.    Casualty and Condemnation Insurance
f.     Environmental Insurance
g.    Residual Value Insurance (RVI)
h.   Closing Documents and Opinions
i.    Title and Survey Requirements
j.    Special Purpose Entity Requirments
k.   Closing Checklist