Commercial Mortgage Loans – The Benefits of Credit Tenant Lease Financing

What does Credit Tenant lease finance means?

A Credit tenant lease is mainly taken by those who need to finance their real estate. According to this lease, the owner will borrow cash for financing their assets or property and this property will in turn be used as a security for paying of the rent to the tenants. The structure of the financing is termed as a non course debt and the lease is termed as a triple net lease.  New city financial (https://newcityfinancial.com/) will help the borrowers in making the right choice of getting the credit tenant lease finance approved.

Benefits of credit tenant lease financing:

Usually people adapted to traditional financial products but since they are now aware of the rise in the commercial mortgage loans and the advantages of getting a credit tenant lease, they have shifted to the alternative. By applying for the lease finance, an individual can enjoy a low interest rate and a high value for the loan. These kinds of investments are very similar to corporate bonds and therefore institutional investors and institutional vendors can easily be contacted by the borrowers. There is a possibility that a 100 percent financing is possible to the Loan to Value principle rate on the total loan applied for. The developers may use this type of leasing option for their projects for combining construction and for permanent finance. Moreover, the most advantageous part of getting a credit tenant lease financing is that the owner need not pledge to the equity interest to the lender. However, it should be noted that the expectations by the financial institutions and the insurance companies will be quite high so the borrower should try to meet their expectations.

The type of property that may be eligible for applying for credit tenant lease financing includes:

  • Data centers
  • Bank branches
  • Warehouses and distribution facilities
  • ground leases
  • retail
  • hospitals and healthcare facilities
  • headquarters and office buildings
  • government facilities
  • manufacturing and R&D facilities
  • educational projects