Since underwriting criteria is based on the credit of the tenant instead of traditional real estate parameters, CTL financing provides the following benefits
CTL provides source capital for 90% of commercial real estate projects, including: retail stores, hospitals and healthcare facilities, government buildings, office buildings, manufacturing, R&D, and laboratory facilities, college facilities, warehouse facilities, data centers, bank branches, muti-family housing, ground leases, etc.
CTLs can provide loan-to-value (LTV) ratios up to 100 percent, 1.00x to 1.05x minimum debt-service-coverage, nonrecourse financing to the borrower, one-step construction and permanent loan financing, and an amortization that typically corresponds to the initial lease term
Longbow Partners was the lead consulting firm for the creation and passage of the public-private partnership legislation in Texas. Our team members have worked closely with both private companies and responsible governmental entities in advising them on the implementation and benefits of P3s.
Longbow Funds Credit Tenant Lease (CTL) team provides commercial real estate property developers and owners access to the private debt capital markets for single-tenant properties that are subject to long-term leases with creditworthy tenants.
Brett is the founding partner of Longbow Funds. Having worked in accounting, investment banking and state government arenas, Brett offers a broad array of expertise and talents to those in search of low cost of capital. He brings more than 10 years of combined experience to Longbow Funds; an organization which aides companies and individual developers by arranging up to 100% financing for projects.
The underwriting of a CTL loan 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.
Investment grade entities that have a Moody’s rating of Baa3 or a S&P rating of BBB- or hgher. Private companies can be rated as well if their financials are deemed to be equal to investment grade credit.
Any property type can qualify for a CTL loan including drug stores, grocers, retailers, healthcare, office and industrial. Non-traditional CTL’s such as municipal, state and federal government facilities and not-for-profit entities such as colleges, universities, hospitals and charities also qualify.
The payments are based on 30/360.
They are immediately open to prepayment with yield maintenance calculated at the interpolated treasury plus 50 basis points for the remaining average life of the loan.
We may require an upfront fee to accompany any application. All other fees are baked into the interest rate. Any deposits required will be refunded after the closing.
The application and a commitment letter can be issued within 5-7 business days with closing occurring in as little as 45 calendar days.