Nationwide construction build to suit loan 100% financing:
- Up to 100% construction loan financing for triple net properties supported by financially strong tenants. The “as completed” loan to value must be 80% or less. Sample tenants, QuikTrip, WAWA, Social Security Administration, Sprint, DaVita, Chuy’s, 7-Eleven, Dollar General, Dutch Bros Coffee, Sherwin-Williams, Family Dollar and Dollar Tree, Wendy’s (corporate), Wild Forks, Advance Auto Parts, Caliber Collision, Pollo-Campero, Starbucks, Chick-Filet, Chipotle, Sheetz, ABC Supply, Shak-Shack, Torchy’s. Raising Canes, Hooters, EOS Fitness, Floor & Décor, Costa Vida.
- Build To Suit 100% construction loan to costs size: $1 million to over $50 million, nationwide.
- Interest rates range from 8.5% to 12.0%.
- Terms typically for a Build To Suit 100% loan of costs for a Build To Suit , two years with a one-year extension option.
- The exit strategy is to sale the property or refinance. See the link for details on CTL Financing.
- Recourse and non-recourse construction loans are available – a financially strong party or entity must provide a completion guaranty. If the borrower elected to go with a non-recourse loan once the certificate of occupancy has been issued and the tenant has accepted the property, the completion guaranty will burn-off with typical limited recourse remaining. These limited recourse provisions are often known as “bad boy” carve-outs. These “bad boy” provisions normally include fraud, waste, misappropriation of proceeds, environmental and bankruptcy. For example, if the borrower committed fraud in enticing the lender to make a loan that resulted in a loss to the lender, the lender would have the legal right to go after the guaranty to recoup the loss if a result of the fraud.
- Amortization: Typically, interest only during the construction period.
- High leverage Build To Suit 100% construction loan of costs include single-tenant, multi-tenant, multiple pads and can include a raw land component.
- Property types for a Build To Suit 100% construction loan to suit 100% Loan include Retail, Office, Industrial, Healthcare and GSA.
- Tenant Credit Ratings: Can include rated and unrated credit. Financial statements on the tenant will be a requirement. This can include leases from the Parent Corporation or from a major Franchisee (Public or Private).
- Timing to close: generally, 45 to 50 days once a full package is submitted.
- For acquisitions sale-leaseback, joint venture capital is also available up to 80%. Equity size starts at $1 million up to $50 million.
- Caffrey & Company LLC can help place the perm loan with an institutional lender once completed and the tenant is in a paying rent.
On our web site you can read about specific loan products: www.caffreyloans.com/loan-products, offered by Freddie Mac, Fannie Mae, HUD/FHA, Commercial Mortgage Back Securities (CMBS) and other loan products. Want more details on sample interest rates for apartment check out Interest Rates for Apartment Loans also on our web site: www.caffreyloans.com/apartment-loans.