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

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

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