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

 

CVS FINANCING

CTL Financing for CVS Lease


PROGRAM BENEFITS

  • With the assistance of CVS Financing (through a CTL Financing Structure), allows investment in CVS which according to the rating agencies, should be a safe investment.

  • Up to 97% LOAN-TO-VALUE with sufficient rent (minimum 1.01 debt coverage). Typically, for purchases, the Loan-to-Value is significantly lower than 97% due to the minimum debt coverage. For developers out of construction, the Loan-to-Value is generally closer to 100% Loan-to-Value depending on the debt coverage.

  • VERY COMPETITIVE 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: $5,000,000 minimum-No Maximum
GEOGRAPHICS: National, U.S. Territories and Puerto Rico
PROPERTY TYPE: Retail stores including ground only financing (i.e. CVS on a ground lease)
MINIMUM LEASE TERM: Generally works best with a 25 year lease. However, it could be a fit for shorter term leases depending on the rent, costs and borrower's goals.
LOAN TERM: Co-terminus with the lease term remaining (up to 25 years for a 25 year firm term lease)
AMORTIZATION: Co-terminus with lease term remaining.
FIXED RATES: Very competitive rates. Rate locked at Loan Commitment (typically 3 weeks after Loan Application is signed)
POINTS: Par
DEBT SERVICE: 1.00-1.01 for triple net lease (1.05 for double net lease). Note that CVS often attempts double net leases and even some modified gross leases, so it is best for the borrower to review the lease prior to contacting Amerifund.
LOAN-TO-VALUE: Up to 97% with sufficient rent (minimum 1.01 debt coverage). Typically, for purchases, the Loan-to-Value is significantly lower than 97% due to the minimum debt coverage. For developers out of construction, the Loan-to-Value is generally closer to 100% Loan-to-Value depending on the debt coverage.
LOAN-TO-COST: No restrictions - THIS IS ONE OF THE PROGRAM'S NICHES.
ASSUMABLE: Upon buyer approval and 1% fee (along with title and legal)
PREPAYMENT:

Yield Maintenance (U.S. Treasuries plus 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 weeks for a decision and if approved, a loan commitment is issued immediately and the rate lock occurs.

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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