Credit Tenant Lease

Grandbridge Real Estate Capital provides competitive 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 on long-term Bond, NNN, NN or ground leases.

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 U.S. Government leased properties.

  • Credit Tenant Lease (CTL) Financing
  • Debt coverage as low as 1.0 to 1.05,
  • Loans in excess of cost allowed,
  • Loan term matches lease term,
  • Extended term beyond primary lease possible,
  • Amortization can match increases in lease payments for maximum dollars, and
  • 95% LTV Max.

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.

Grandbridge structures CTL loans ranging in size from $1 million up to $50 million or more on single properties or large multi-property portfolios. Minimum debt service coverage ratios range from 1.0x to 1.05x, with loan-to-value not to exceed 95% LTV.

Mobile, AL
$4,500,000
7 Acres
New Construction
Insurance Company