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Credit Tenant Lease​

Customized, long-term, fixed-rate financing
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OVERVIEW

OVERVIEW

Credit Tenant Lease​

Credit Tenant Lease (“CTL”) Financing is a method of financing real estate in which the landlord/owner borrows money to finance the development or purchase of a property and pledges as security rent to be received from the tenant and a mortgage on the property.​

CTLs are hybrid financings consisting of elements of corporate finance and real estate finance, resulting in a long-term, highly leveraged, customized loan. Unlike a typical commercial real estate loan which is underwritten and sized based on the property value, CTLs are sized based on the underlying lessee’s credit rating, lease structure, and rental payments.​

Learn more about why New Balance chose to work with us to finance their new LEED-certified headquarters.

Typical size, structure, uses, and benefits ▼

Typical size

  • $25 million - $100+ million​
  • Up to 100% loan-to-value​
  • Proceeds based on present value of future rent payments under the lease

Structural characteristics

  • Sale / leaseback of corporate headquarters, office buildings, warehouses, distribution centers, or retail stores​
  • Maturities of up to 20+ years with custom amortization schedules​
  • Below investment grade on a case-by-case basis​
  • Long-term, fixed-rate debt​

Typical uses

  • Financing for operationally essential assets​
  • Capability to fund in local currency​
  • Investment grade long-term, fixed-rate debt​
  • Construction-to-permanent financing for corporate or government credit tenants

Issuer benefits

  • Ability to receive capital and structure complex transactions for corporate and government credit tenants​
  • Ability to borrow in a variety of foreign currencies​
  • One-stop-shop capability for construction-to-permanent financing​
  • No requirement for agency rating​
  • Quick and efficient execution​

Case Study

See All Case Studies
New Balance:​ A greener future
New Balance's new global headquarters upholds their promise to keep pushing forward and commit to service. Lease Financing was an ideal way to secure funds for construction.
“Our new headquarters is a space where our associates can thrive and the brand can continue to grow and fulfil its promise to push forward and deliver the best in innovative footwear and apparel.”​
Get the Full Story

Case Study

New Balance:​ A greener future
New Balance's new global headquarters upholds their promise to keep pushing forward and commit to service. Lease Financing was an ideal way to secure funds for construction.
“Our new headquarters is a space where our associates can thrive and the brand can continue to grow and fulfil its promise to push forward and deliver the best in innovative footwear and apparel.”​
See The Full StorySee all case studiesSee The Full Story

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Who we work with

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“We take a collaborative and creative approach to financing; I think our partners see a lot of value in that unique approach.”
Elyssa McMullen Managing Director
“We take a collaborative and creative approach to financing; I think our partners see a lot of value in that unique approach.”
Elyssa McMullen Managing Director

OUR Team

With representatives around the world, finding the right person is easy.
who you can work with

OUR Team

Meet our team

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Caity McLaughlin headshot
Caity McLaughlin
Vice President
+1.973.367.5378
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Credit Tenant Lease
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Elyssa McMullen headshot
Elyssa McMullen
Senior Vice President
+1.973.802.6386
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Credit Tenant Lease
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Bill Pappas headshot
William Pappas
Managing Director
+1.973.367.3049
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Infrastructure & Credit Tenant Lease
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Insights

Learn more about CTLs
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