http://lendmarkbrokerage.com/commercial/credit%20tenant%20lease.html
Lendmark Mortgage Brokerage Corporation is a private company incorporated under the laws of British Columbia, Canada. Founded by Grace Brewster, Lendmark is a North American real estate finance consulting firm and a boutique licensed mortgage brokerage specializing in helping clients in commercial real estate projects loans and mortgage finance. We provide acquisition financing and consulting services to a variety of commercial real estate clients. By leveraging our skill sets, relationships, and experience in the real estate finance industry - we become a highly value added component to real estate.
Capital is a critical need for real estate and a key benefit of real estate ownership is the ability to enhance returns by utilizing leverage. We have been involved in the arranging of strategic financing of real estate acquisitions and the refinancing of properties owned. Services have ranged from working through various real estate financing sources to identify optimal financing alternatives, to negotiation of loan terms and documents through managing the loan closing process.
Lendmark™ is an independent registered mortgage brokerage in the Province of British Columbia with License # X300234. The founder is a license mortgage broker and REALTOR®.
Our network of lenders consists of Canadian and U.S. Commercial mortgage lenders. Relationship within our network includes banks, credit unions, trust companies, life insurance companies, pension funds, private lenders, commercial mortgage conduits and other institutional real estate lenders and brokers in North America.
!.Credit Tenant lease
SERVICES
Lendmark provides flexible and tailored Credit Tenant Lease financing solutions. Through the years, we have built strategic relationships with numerous institutional investors and non-bank lenders who offer Credit Tenant Lease lending programs for Commercial Real Estate Investors.
Credit Tenant Lease financing (CTL) to borrowers for acquisitions, refinance or construction of a variety of property types that are tenanted by investment-grade rated tenants.
CTL financing is a powerful tool that maximizes the financing on your commercial real estate properties leased to investment-grade tenants for either existing or to-be-built properties. Acceptable property types include Single Tenant Retail, Corporate Office, Industrial (warehouse distribution) and Government leased properties.
While traditional commercial real estate loans are written against the value of the land, as well as the credit and business record of the borrower, Credit Tenant Lease financing primarily emphasizes the credit quality of the tenant and lease structure in order to establish a cost of borrowing. Investment-grade tenant loans tend to price and trade like bonds in the capital markets. Pricing for non-investment grade and non-rated tenants requires additional analysis to include, among other risks, the value of the real estate asset.
With our lending partners, Lendmark can arrange CTL loans ranging in size from $1 million up to $50 million or more on single properties or large multi-property portfolios. Available in North America & selected International.
Typical transactions often include the following credit tenants:
Retail including drug, home improvement, grocery, big box and convenience stores and bank branches
Government including U.S. Federal (G.S.A., V.A., F.B.I., etc.), municipal (states, cities, counties) and quasi-governmental (authorities, park districts, etc.)
Institutional including healthcare (medical offices, administrative buildings, clinics), education (universities, colleges) and cultural
Corporate including single-tenant offices, manufacturing facilities, distribution centers and data centers
Non-rated or below investment-grade credits available on a case-by-case basis.
CREATIVE DEVELOPER 100% LTC CONSTRUCTION FINANCING
Funding available up to 100% of total development costs for developers constructing single-tenant retail developments from $1 million to $25 million.
There is no need for the developer to raise or contribute equity, or secure bank construction financing, because our lender provides up to 100% LTC construction financing. The developer receives typical development fees and profit, as opposed to the earnings received in straight fee development deals.
Credit Tenant Lease.
AN ACTIVE INVESTOR IN CREDIT TENANT LEASE TRANSACTIONS ACROSS A VARIETY OF ASSET TYPES.
CHARACTERISTICS.
Credit tenant lease transactions provide property developers and owners, including corporations and government institutions, with the ability to fully capitalize on the lease rental stream from a single tenant occupied property. This financing vehicle allows the tenant to maintain control of their property while providing off balance sheet financing.
We provide long term fixed rate debt financing for vital real estate assets. Credit Tenant Lease transactions are structured and evaluated as corporate bonds rather than traditional mortgage loans, and we base our analysis primarily on the credit quality of the tenant.
TRANSACTION STRUCTURE.
- Size: Typical investment from $25 million to $150 million
- Maturity: Up to 30 years
- Repayments: Fully amortizing payment structures
- Documentation: As is typical for a credit tenant lease
TYPES OF PROPERTIES CAN INCLUDE.
- Headquarters / office buildings
- Manufacturing, R&D, and laboratory facilities
- Distribution and warehouse facilities
- University / college facilities
- Retail stores
- Government buildings
Note: Transaction characteristics and structure may vary.