Credit Tenant Leases

Providing 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.

Credit Tenant LeasesCommercial real estate developers and owners turn to us as a trusted leader in credit tenant lease (CTL) financing. We have structured and originated over 500 CTL transactions totaling more than $4 billion over the past 16 years.

CTL financing allows commercial real estate property developers and owners to fully leverage the lease rental stream from a single-tenant property. Because the CTL structure is viewed as a bond (credit) rather than a real estate loan, spreads and interest rates are based on the credit of the tenant instead of traditional real estate underwriting criteria. CTL transactions provide:

  • Loan-to-value (LTV) ratios of up to 100 percent
  • No limit on loan dollars per square foot
  • 1.00x to 1.05x minimum debt-service coverage
  • Nonrecourse financing to the borrower
  • One-step construction and permanent loan financing 
  • Amortization that typically corresponds to the initial lease term or can also be structured with a longer amortization/balloon

CTL transactions are used to provide financing for a wide range of property types that are typically leased by investment-grade tenants. CTL transactions can be applied to the following property types:

  • Retail stores
  • Hospitals and healthcare facilities
  • Government buildings
  • Headquarters/Office buildings
  • Manufacturing, R&D, and laboratory facilities
  • University/College facilities
  • Distribution and warehouse facilities
  • Data centers
  • Bank branches
  • Ground leases

Credit Tenant Lease Pricing Quote and Credit List Request Form

Michael Kalt

Michael Kalt
Head of Credit Tenant Lease Group
+1 312 364 8040
mkalt@williamblair.com

Featured Successes


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