CREDIT TENANT FINANCING

We can provide high leverage financing for investment grade tenants. The following are ratings used to determine investment grade status.

Investment Grade Non-investment Grade

AAA

BB

AA

B

A

NR (not rated)

BBB

 

Examples of Investment Grade firms:

Costco A
CVS A
Detroit Edison BBB+

Diageo, PLC

Burger King
A+
Dillards BBB-
Eastman Kodak Co. A+

Examples of Non-Investment Grade firms:

K-Mart Corp. BB+  
Ohio Edison Co. BB+ Positive
Owens-Illinois, Inc. BB  
Pep Boys BB-  
Saks, Inc. BB+  
Sea Containers, Ltd. BB+ Negative

OPTIONS BASED ON NNN LEASE TYPE 

Loan To Value

80-100%

NNN

80-90%

NNN/ABSOLUTE

90-95%

Borrower should have a NNN  lease with tenant.


TWO TYPES OF NNN LEASES

NNN - all expenses except roof and structure paid by tenant.

80-90% LTV

NNN / ABSOLUTE BONDABLE - all expenses paid by tenant

90-95% LTV

A NNN lease requires less maintenance by the borrower.  The tenant pays all related expenses and the lease is usually long term (15+ years).

Public companies want Credit Tenant Financing because they do not want an added asset on their balance sheet.  They prefer to lease rather than purchase property.
11755 Wilshire Blvd., Suite 1250, Los Angeles, CA 90025
Tel: (310) 826-5559
info@portfolioservices.com