Credit Tenant Loan CTL:
Single Tenant and Credit Tenant Loans: Many lenders are focused on single tenant lease loans. Some lenders would like to see the amortization align with the primary lease term. All of the lenders will assume the tenant will not exercise any option to extend the lease. Some lenders will consider a small balloon balance extending the loan amortization for 5 to 7-years beyond the primary lease term.
If you need a longer amortization for your credit tenant loan then we can move away from the non-recourse lenders to recourse lenders where the principal(s) is providing credit support and agreeing to make payments beyond the lease term should the property go dark.
Underlying Real Estate Value:
Therefore, when considering the acquisition of a single tenant property try to estimate the value of the real estate at lease expiration as dark. In some cases lenders will limit the balloon balance at the end of the lease term to the unimproved land value. There is no easy way to determine the land value without an appraisal or obtaining a professional opinion of value. So when working with single tenant properties supported by long term leases from tenants that can show strong financial strength the loan to value can be less of a concern with the focus turning on how much will the lease payment support (after landlord expense) in the form of loan payments keeping the balloon balance in mind.
Checkout the current interest rates on our web site, we update these rates each business day: Current Commercial Real Estate Interest Rates
Single Tenant Sample Tenants:
As of February 2017 we have compiled a list of single tenants that our lenders would like to provide financing for. If you wish we can send you a simple calculator to back into the maximum amount the lease payment would support given different interest rates. Please email: Mike@CaffreyLoans.com for this calculator or use the calculator found on our web site. Some tenants have provisions in the lease that create underwriting issues for the lender. If you are early in negotiations and the lease could still be modified, please contact us early to offer suggested changes to the lease that we know specific lenders have agreed to in the past. Standard and Poors allows you to check ratings from free.
Aaron Rents Major Oil Company Service Stations (Corporate Stores Only)
Advance Auto McDonald’s (Corporate)
Ahold/Food Lion O’Reilly’s (review lease)
Aldi Panda Express
AT&T Panera Bread
BB&T corporation (exception basis) QuikTrip **
Bed Bath & Beyond RaceTrac
Big Lots Red Robin Gourmet Burgers
BJ Restaurants Ross Stores (review lease)
Buffalo Wild Wings Sheetz
Carmax Sherwin Williams
Casey’s General Stores Sprouts
Circle K Two Farms (Royal Farms)
Costco TD Bank (exception basis)
Dick’s Sporting Goods Texas Roadhouse
Firestone (Recourse) Tractor Supply
Genuine Parts Trader Joes
GSA (US Gov) Ulta Salon Cosmetics & Fragrance
H-E-B Grocery Verizon
Hobby Lobby WAWA
Home Depot Walgreen
Kohl’s Whole Foods
Kroger Yum Brands
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.