Boston, MA (PressExposure) March 01, 2011 -- In a memo to clients and associates, MasterPlan Capital LLC, a commercial real estate investment banking firm, recently announced that it will no longer be accepting applications for financing gas stations and other environmentally suspect types of real estate. Instead the firm will devote more time and resources to their credit tenant lease (CTL) financing platform.
The memo said, in part: : "A recent review of our business practices found that we were simply spending too much time reviewing applications and working on loans that had very little potential of ever being funded or, if funded, would not be productive. As-a-result we are adjusting our focus and, from-now-on, will devote our time and resources only to lending and investing activities that have proven effective for us".
The company will not longer accept applications for loans against gas stations, dry cleaners, brown field projects or other reclamation projects. Further, other than investment grades, single tenant, triple net (NNN) leased real estate, MasterPlan will not accept loans against unimproved land or for ground up construction projects.
The memo went on: "The effects of the credit crisis can still be felt in our industry. Beating the bushes trying to drum up capital for certain types of projects has been a drain on our productivity. On-the-other-hand there is plenty of liquidity available to make loans against credit worthy, NNN tenants in stand alone buildings. As-a-result we will be concentrating more on our CTL business".
The firm will honor any outstanding loan commitments for loans against the discontinued property types but, effective immediately, will not consider new applications.