Single Tenant Loan

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Single Tenant Properties

We have many lenders low interest rates and can quickly close on a single tenant loan. The lease terms as well as the financial strength of the tenant will be important factors in determining the final loan terms.  If the tenant is not a publicly held company, please try to obtain copies of their most recent year end financial statements.  If you are early in the actual lease negotiations, we might be able to offer some language to be incorporated in the lease that will aid in placing the best CTL loan for you.   We have numerous examples of language that many tenants have accepted and allowed on other transactions that will help when closing on a single tenant loan.  You can see sample interest rates on our web site at: Sample Commercial Real Estate Rates

Go dark value

If you are looking for some general rules on how much you can borrow start by asking what will this property be worth with the tenant gone (dark) and all income has ceased.  What would you be willing to pay for this dark building today?  Then revert back to unimproved land value and you might be close to how the lender will back into the balloon balance at the end of the remaining lease term.  All of the lenders will assume the tenant will not extend or renew the lease.

Debt Service Coverage ratio:

We have lenders than can get down to a 1.05x debt service coverage ratio, this leaves very little net cash flow.  Below is a list of tenants that our lenders are looking for:

7-Eleven; Aaron Rents, Advance Auto; Ahold; Food Lion; Aldi; AT&T; Auto Zone; BB&T corporation; Bed Bath & Beyond; Big Lots; BJ Restaurants; Buffalo Wild Wings; CarMax; Casey’s General Stores; Chik-Fil-A; Circle K; Costco; Dick’s Sporting Goods; FedEx; Firestone (recourse); Genuine Parts; GSA (US Government); H-E-B Grocery; Home Depot, Hobby Lobby; Hy-Vee; Kohl’s; Kroger; Lowe’s; Major Oil Company Service stations – corporate stores only; McDonald’s (corporate); O’Reilly’s (must see lease before quote); Panda Express; Panaera Bread; Publix; QuikTrip; RaceTrac; Red Robin Gourmet Burgers; Ross Stores (review lease first); Sheetz; Sherwin Williams; sprouts; Starbucks; Two Farm (Royal Farms); TD Bank; Target; Texas Roadhouse; TJX; Tractor Supply; Trader Joes; Ultra Salon Cosmetics & Fragrance; Verizon; WAWA; Walgreens; Wal-Mart; Whole Foods; Yum Brands.

For companies you can find their financial statement through SEC filings  .  Below is an excellent link you can use when searching for companies that publically report their financial statements:

Click here for SEC updates

 


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.

Have a question please contact
Mike Caffrey
Telephone: (913) 402-7077
Mike@CaffreyLoans.com
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