North Palm Beach, Florida – Credit Tenant Loans and Credit Tenant Lease Financing are available for your Net Lease Properties acquisitions. Each Credit Tenant Lease (CTL) property must be legally separated from any adjacent property declaration. A credit tenant loan (CTL) is a commercial real estate loan whereas it is secured by the obligation of a single investment grade company to pay debt service by means of rental payments. Typically a long-term net lease will be present and have at least 12 years remaining on the initial lease term under a high quality lease.
The Credit Tenant Loan is based on a credit tenant lease with a qualifying rating. A Credit Tenant should be rated BBB- (S&P) or Baa3 (Moody’s) or better. Certain tenants rated BB may also qualify for credit tenant financing.
Some Tenants who may qualify for Credit Tenant Loans are Wal-Mart, CVS, TJMax, Pep Boys, Chase Manhattan, Federal Express, Lowe’s Companies, Walgreen, McDonald’s, Sears, and Home Depot.
