Boston, MA (PressExposure) September 30, 2009 -- MasterPlan Capital LLC, a commercial real estate investment banking firm, announced today the rollout of its new Credit Tenant Lease (CTL) commercial mortgage platform.
The CTL program will be used to quickly and efficiently finance retail, office and warehouse properties that are triple net leased (NNN) to a single tenant that posses an "investment grade" credit rating from Standard & Poors and Moodys.
CTL commercial mortgage loans are underwritten primarily based on the credit strength of the buildings tenant and the structure of the lease agreement rather than traditional notions of real estate value and borrower credit.
CTL loans can be used for purchases or refinance transactions and construction-to-permanent loans will also be available. MasterPlan Capital can originate loans up to 100% of the value of the underlying real estate (100% LTV) and makes no restrictions on loan-to-cost for construction-to-permanent financing (100% LTC). The required debt-service-coverage ratio is 1.01%.
The non-recourse commercial mortgages will be fixed rate long term, fully amortized loans and are funded by private placement mortgage bonds. Rates will be based on the US Treasury Bond plus a small spread and terms and amortizations will be co-terminus with the lease up to 25 years.
The firm noted: "We are proud to be able to expand our product offerings during this challenging credit market. Our CTL financing program is an excellent alternative to traditional commercial real estate loans for investors and developers seeking long term fixed rate loans for their single tenant, triple net lease buildings. There is absolutely no lack of liquidity for borrowers with solid credit tenants."
Some of the most popular investment grade tenants are the Federal Government, Government Agencies, State Governments, Walgreens, CVS, Wal-Mart, Lowes, Home Depot and Ahold. But many more credit tenants can qualify for CTL financing.