Credit Tenant Lease Financing | The Madison Group

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Credit Tenant Lease Financing (CTL)

Commercial real estate investors are challenged by the time it takes to source a quality loan for their unique investment strategy.  The Madison Group works for you to arrange alternative loan options from the nation’s top lenders, so you will feel confident that you have chosen the optimal financing for your long term investment goals.

The Madison Group is a nationwide leader in providing commercial real estate capital for credit tenant lease financing (CTL). CTL financing is an excellent method of securing a quality yield with reduced risk. Our clients benefit from competitive loan terms for acquisition, refinance, or recapitalization of CTL assets.

We can finance the following credit tenants:

Retail: drug, pharmacy, home improvement, grocery, big box, convenience stores, bank branches, US Federal Buildings, local government, municipal, and quasi-governmental (authorities, park districts, etc.) 

Institutional: healthcare, medical offices, administrative buildings, clinics, college, universities
Corporate: single-tenant offices, manufacturing facilities, distribution centers and data centers

While traditional real estate loans are written against the value of the land, the credit, and business record of the borrower, CTL financing emphasizes the credit quality of the tenant and lease structure in order to establish the loan structure. CTL financing generally has several advantages over traditional real estate financing including, tighter pricing, lower debt service coverage ratios, maximum loan proceeds, and greater liquidity. 

Loan Program Information

Loan limits$1,000,000 Minimum
RatesCompetitive market pricing. Fixed or floating rates
TermsFixed Rate 15/15, 20/20, 25/25 up to 30/30
Amortization25 to 30 Year Amortization
PrepaymentSeveral options including no prepayment penalty
RecourseNonrecourse available (subject to standard carve outs)
DSCDebt coverage as low as1.0 to 1.05 
LTV80% LTV/LTC Maximum and higher
AssumableYes to a qualified borrower.
Property typesSingle tenant retail, Corporate office, Industrial (warehouse distribution), U.S. Government leased properties, large multi-property portfolios
Geographic areasMost States

How you benefit from working with TMG:

·       ·         Create greater cash flow and save time sourcing rates and terms that increase your cash flow
·         We fully analyze your transaction so you avoid pitfalls and costly surprises
·        Receive offers from more than one source
·         Accessing multiple lending programs/institutions/lenders for financing options that fit your needs
·         Assistance every step of the way with our team of experienced commercial real estate lending professionals

Call us today!