Amerifund Commercial Corp.

FEATURED FINANCING

CTL Financing Programs for Single Tenants

GOVERNMENT SINGLE TENANT LEASE

RETAIL SINGLE TENANT LEASE

OTHER INVESTMENT GRADE
TENANT TYPES CONSIDERED

  • Healthcare

  • Financial Institutions

  • Industrials

  • Insurance

  • Utilities

To Consider Other Types Contact Us

 

COUNTY GOVERNMENT FINANCING

CTL Financing for County Government Lease

(County Government Lease Financing)

Please Contact Amerifund for a Quote


PROGRAM BENEFITS

  • With the assistance of County Government Financing (through a CTL Financing Structure), allows investment in a County Government lease that most would consider one of the safest commercial real estate investment. Like death and taxes, County Governments will always exist. Retail tenants come and go...even the big ones that are "A" rated can fail like Ames Department Stores did in 1990-1991 after its purchase of Zayres stores. Many Kmart landlords took major hits when Kmart filed for Chapter 11, prior to Sears purchase of KMart.

  • Up to 97% LOAN-TO-VALUE with sufficient rent and lease term

  • VERY COMPETITIVE LONG-TERM, FIXED INTEREST RATES

  • NON-RECOURSE (standard-carveouts)

  • NO LOAN-TO-COST RESTRICTIONS (with sufficient rent and lease term, allows borrowers to cash-out and still enjoy some cash flow from ownership along with the build-up of equity throughout the loan term)

  • NEW CONSTRUCTION. Permanent loans funds on an interest-only basis before construction begins based on issuance of a letter of credit from an acceptable bank. The borrower invests the permanent loan funds into the bank issuing the letter of credit. The borrower earns interest on the unused portion of the permanent loan from the letter of credit bank structured as a series of staggered bank CDs matching the construction budget's monthly draws. Forward Commitments are also considered.

PROGRAM SUMMARY

LOAN SIZE: Minimum Loan: $5 million-No Maximum
GEOGRAPHICS: National including Alaska, Hawaii, all US Territories and Puerto Rico
PROPERTY TYPES: Any property type including dirt
GOVERNMENT TYPES: All essential agencies of the County Government
MINIMUM LEASE TERM: Typically, the Bond Financing Program works best with 10+ years remaining on the lease, but less than 10 year terms can be considered for the right lease and borrower.
LOAN TERM: Co-terminus with lease
AMORTIZATION: Co-terminus with lease term remaining or a "hang-out" equal to the amount of Balloon Insurance that can be purchased at closing (one time premium of 5-7% of the balloon amount plus premium taxes)...which is typically $10-20 a square foot for distribution facilities and $25-85 a square foot for office. With Balloon Insurance, the interest rate increases 10 basis points (no increase for loans of $50 million+).
FIXED RATES: Very competitive rates. Rates are locked at issuance of a Loan Commitment which typically takes 3-4 weeks after Loan Application is issued by Amerifund.
POINTS: Par
DEBT SERVICE: 1.00 debt coverage if a triple net lease.

1.05 debt coverage if double net or gross lease.
LOAN-TO-VALUE: Up to 97%
LOAN-TO-COST: No restrictions. THIS IS ONE OF THE NICHES OF THE PROGRAM.
ASSUMABLE: Upon buyer approval and 1% fee (along with title and legal)
PREPAYMENT: Yield Maintenance (US Treasuries + 50 basis points), TBD minimum.
TIMING: Loan Application is generally issued by Amerifund within 48 hours once required initial documentaiton has been submitted and reviewed.

Once Borrower signs the Loan Application, the package is then presented to potential bond purchasers. It generally takes 3-4 weeks for a decision and if approved, a loan commitment is issued.

Closing generally occurs within 1-2 days after receipt of third party reports and borrower closing documents.

The total process typically takes 60 days.

Rates and terms subject to change without notice

 

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