WHAT IS CTL CREDIT TENANT LEASE LLC?

 

   CTL Credit Tenant Lease LLC was established by a Developer, Contractor, and major United States Underwriter of Corporate Securities. This is a "Turnkey" solution for major companies. Real Property and Development needs. Services are offered on a comprehensive turnkey basis or a-la-carte. Please find bios and contact information for team members.

 

WHAT IS A CTL TRANSACTION?

 

   The underwriting of a CTL is primarily based on the underlying credit of the tenant with fundamental real estate analysis being secondary.  While the real estate is pledged as security, the loan is viewed as a bond rather than a real estate loan.

 

WHO CAN OWN THE UNDERLING REAL ESTATE IN A CTL TRANSACTION?

 

  The underlying real estate should be owned by a bankrupt remote single purpose entities such as an LLC

WHO IS THE CREDIT?

 

  Investment grade entities with a Moody’s rating of Baa or a S&P rating of BBB-  or higher are qualifiers. Private companies can be rated as well if their financials are on par with investment grade credit. Other tenants credit may be considered for other none rated Loan or lease back transactions.

 

CAN A CTL TRANSACTION HAVE A DRAW DOWN PROVISION ?

 

  Yes

 

WHAT PROPERTY TYPES QUALIFY FOR A CTL TRANSACTION?

  Any property type can qualify for a CTL transaction: Office, grocers, drug stores, construction camps, corporate housing, industrial, special use, hotels, healthcare, and a full spectrum of retailers.

 

CAN GOVERNMENT AND NOT-FOR-PROFITS USE A CTL TRANSACTION.

 

  Yes, federal, state, municipal, quasi governmental authorities, and not-for- profits such as colleges, universities, hospitals and charities also qualify.

 

WHAT ARE THE CHARACTERISTICS OF A CTL TRANSACTION?

CAN YOU USE FULL SERVICE LEASES IN A CTL TRANSACTION?

 

   Yes, but debt coverage ratios can increase dramatically, and could require special reserves and impound accounts. Triple net leases are best auited.

 

HOW IS THE LEASE RATE DETERMINED?

 

   The lease rate is priced using a spread over the interpolated treasury for the calculated average life of lease and corresponding loan. The lease rate can be fixed or have rental escalations over the term of the lease. The spread is determined based on the quality of credit, size of transaction, lease structure and overall transaction structure.

 

CAN YOU INCLUDE NEW CONSTRUCTION AND CONSTRUCTION INTEREST IN A CTL TRANSACTION?

 

   Yes, as long as there is a date certain on the underlying lease, other requirements on the contractor will be taken into consideration, such as bonding requirements.

 

ARE CTL TRANSACTIONS PREPAYABLE?

 

   Yes prepayments can be incorporated into the transaction, with yield maintenance calculated at the interpolated treasury plus an appropriate spread over remaining average life of the lease and corresponding loan.

 

WHAT ARE THE COSTS OF A CTL TRANSACTION?

 

   CTL costs are similar to a bond issue, as well as required third party reports such as MAI appraisals and environmental reports.

 

HOW LONG DOES IT TAKE TO CLOSE A CTL TRANSACTION?

 

   Once the underlying lease is signed and approved by underwriters council, the transaction can close shortly after third party reports are complete and standard closing documents have been received.  This process can take between 15-60 days, depending on the complexities of the specific transaction.

 

DO WE HAVE TO USE YOUR ARCHITECTS, CONTRACTORS, DEVELOPERS INORDER TO DO A CTL TRANSACTION?

 

   No, we offer the following services:

 

ARE THERE UP FRONT FEES TO CTL LLC  FOR PREPARING ESTIMATES AND PROPOSALS?

 

   NO, CTL LLC. only engages with  pre-selected companies. Our structures  offer massive cost savings to our institutional clients.

 

WHAT ABOUT PROPERTIES IN SECONDARY OR TERTIARY MARKETS FOREIGN COUNTRIES?

 

   Since CTL leases rely primarily on the credit of the tenant and not the underlying real estate, CTL leases and  financing are an excellent choice for those properties located in markets where traditional sale or financing is not available.

 

WHAT ABOUT SPECIAL USE, HIGH LTV AND HIGH DOLLAR PER SF PROJECTS?

 

Properties with credit tenants where a borrower with high loan-to-value and /or high loan-per-square foot requirements on properties with credit tenants can utilize with CTL leases, as the underwriting criteria based on the tenant’s investment grade rating versus the real estate. CTL loan to values (LTV’s) are not restricted the typical limitations of LTV’s of conventional real estate lenders.

 

WHY CTL LLC.?

 

   CTL LLC. Is a comprehensive solution for major companies, by combining the developers fees, construction management fees, general contractor overhead and profit, design fees, property management fees and pre development costs into one pool. There are significant savings at each level, thus eliminating development risk, and creating a cost saving model that will allow tenants and companies to pay below market rents for their space requirements, while satisfying criteria for averting not creating capital leases.

 

WHAT SIZE DEALS CAN CTL LLC. COMPLETE?