REAL ESTATES FORUM

Types of Credit Tenant Lease Financing



Credit Tenant Lease Financing
Debt service coverage as low as 1.05 x rent
Loan-to-value ratios of 90% or less
Retail, industrial or office property types in any location
considered
Borrower responsible for MAI appraisal; Phase 1 and engineering
reports from pre-approved consultants
Escrow for landlord maintenance and any lease responsibilities
not covered by tenant
Specialty insurance to cover casualty and condemnation risk is
generally not required

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Bond or Absolute Net Leases
Debt service coverage as low as 1.0 x rent
Loan-to-value ratios up to 100%
All property types, uses and locations
Borrower responsible for Phase 1 environmental from pre-approved
consultants
Direct corporate obligations funded similarly
Transaction ratings not required

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Build-To-Suit 100% Construction Financing
Build to suit properties pre-leased to credit tenants
100% financing available
Greater than 100% financing available based on present value
of rent increases
Pre-development funds available for high quality tenant
leases on Absolute Leases
Construction loan rolling into permanent loan
All property types, uses and locations
Lease must be bond or absolute net lease
Preferred lease terms of 10, 15, and 20 years

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Credit Tenant Loans Qualifications
Public or private companies
National or regional in operation
Rated investment grade (BBB/Baa2 or better) by public debt
rating service such as Standard & Poors or Moodys--public
debt ratings are preferred, but not required.
Minimum tangible net worth of $50 million
Five years of audited financial statements available for review

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Credit Tenant Loans Parameters
Loans of $2 million and above
Rate lock at application
30/360 interest rate calculation
Full amortization or covered balloon exposure at maturity
Good faith deposit refundable at loan closing
Special purpose entity borrower preferred but not mandatory
Closings generally handled utilizing in-house staff, local
counsel as needed depending on size and complexity of the
transaction
Open to prepayment from origination with yield maintenance
Transfer/assumption rights allowed subject to lenders review
and approval
Examples of Tenants Financed Under This Program
Wal-Mart, Amoco Oil, Circuit City, CVS Corp., Tandy, TJMax,
Nationsbank, Bridgestone/Firestone, Pep Boys, Chase Manhattan,
Stop & Shop, Mobile Oil, BlueCross/Blue Shield, Federal Express,
Key Bank, US Post Office, Lowes Companies, Exxon, Walgreen,
Food Lion, McDonalds, Sears, Winn Dixie, Home Depot,
Wellpoint, Georgia Baptist Hospital.

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Loan Submission Checklist
Listed below is a checklist for initial items required to
evaluate your loan request so that we may provide a Letter
of Interest* (LOI) or you may apply online.
Purpose of Loan
Use of Funds
Description of Property
Site Description
3 Years Historical Operating Statements on the Property
Current Year To Date (YTD) Operating Statement
Lease Summary/Rent Roll
Purchase Price or Original Cost
Timing Requirements To Fund Loan
Significant Improvements made to Property
Required Improvements necessary, if any
Color Photos
Resume/background on borrowers
Existing lender, rate & term


Fritz Cadet @ Heinch Lending Group
fritz cadet@yahoo.com