Debt Capital Markets

Selected Transactions 

Credit Tenant Leases



The Credit Tenant Lease (CTL) Product Group at William Blair & Company provides private debt capital raising services for clients that own single-tenant commercial real estate. The CTL product allows our clients to fully leverage/monetize the lease rental stream related to a specific property. The CTL structure is typically favored over conventional real estate financing, as borrowers can access higher leverage. Since the formation of the CTL Product Group in 1997, the group has closed in excess of 450 transactions representing about $3 billion in volume.

Typical CTL property types:Typical CTL characteristics:
  • Retail stores
  • Bank branches
  • Headquarters/office buildings
  • Commercial buildings
  • Distribution centers
  • Manufacturing facilities
  • R&D/laboratory facilities
  • Health care facilities
  • University facilities
  • Municipal facilities
  • Viewed as a bond versus a real estate loan
  • Financing is based on underlying credit of tenant
  • Leases generally have little or no landlord responsibilities
  • Landlord responsibilities or lease termination risk can be mitigated through reserves or insurance policies
  • Up to 100% Loan to Value
  • Financing is coterminous with initial lease term
  • 1.00x - 1.05x debt service coverage
  • Can underwrite fixed rent bumps during initial lease term
  • One-stop construction and permanent loan financing
Click for our List of Tenants Financed (PDF).

Click to request our most recent Credit List.

Selected Transactions

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$35,000,000 $27,059,000 $23,402,000
Amcol International Commonwealth of Pennsylvania Department of Environmental Protection Walgreen Co.
1 Headquarter Facility 
1 Office and Lab Building 		 6 Stores 
     
     
     
 
$6,504,000 $5,636,000 $4,406,000
RBC Centura Bank Lowe's Cos. Inc. Webster Bank

1 Branch Bank 
1 Store 
1 Branch Bank 
     
     
     
 
$3,408,000 $111,432,000 $27,399,000
Citizens Bank of Pennsylvania "AA-" Healthcare System (Texas) Walgreen Co.

1 Branch Bank 
1 Hospital, Medical Office Building, and Parking Garage 
9 Stores 
     
     
     
 
<<Prev  Next>>   | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 |

Contact

Michael Kalt
312.364.8040
MKalt@williamblair.com
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