CREDIT TENANT LEASE (CTL) FEATURES

CTL’s are the most frequently-employed structures facilitated by Serra

They are priced much lower than conventional real estate financing structures and are generally competitive with bond offerings, including tax-exempt municipal financings, while offering significantly more flexibility than public bonds

Maximum Leverage/Maximum Efficiency

  • Financing structures maximize leverage – 100% project financing including related TI, automation and FF&E costs; not constrained by loan-to-value or loan-to-cost

Fixed Rate/Fully Amortizing

  • Pricing based on corporate debt spread of investment grade tenant (or comparable credit entity); rate fixed for term of financing with full amortization

Cost of Capital Determinants

  • Credit of entity
  • Term of repayment
  • Asset class and essentiality of use
  • Pricing spread comparable to senior debt pricing of borrower, guarantor or tenant

Transaction Size

  • Normally $10MM to $500MM
Dallas Construction Scaffolding

Can source and finance rapidly — 30 to 75 days; generally 45 days

Serra not only provides financing but will monitor development, construction, asset management and serve as owner/borrower as required by the tenant or deal structure; full control ultimately rests with tenant

BORROWER BENEFITS

Customer Goal Achievement

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