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

 

GSA FINANCING

CTL Financing for GSA Lease

(Federal Government Lease Financing)

Please Contact Amerifund for a Quote


PROGRAM BENEFITS

  • GSA Financing, through a CTL Financing Structure, allows investment in a Federal Government lease or GSA lease that most would consider the safest commercial real estate investment. Like death and taxes, the Federal 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. One-time closing for construction-to-perm financing. Forward Commitments are also considered.


PROGRAM SUMMARY

LOAN SIZE: $5 million minimum-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 Federal 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 approximately 5-5.5% 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: 1.05 debt coverage after 2% management, $.25 sq.ft. annual replacement reserve and annual Trustee's Fee. If Form 1217 shows more than 2% management and $.25 sq.ft. annual replacement reserve, the 1217 numbers will be underwritten.
LOAN-TO-VALUE: Up to 97%
LOAN-TO-COST: No restrictions. Typically developers receive more than 100% of costs, if developed right (sufficient rent and lease term). Prior to a GSA developer bidding on a project, Amerifund can back into the rent required to achieve 100% of costs financing for a GSA developer based on the Bond Financing Program.

Purchasers need to buy at the right price to make it work at 100%+. In today's market, Purchasers will have a difficult time getting to 100%+ as sellers have a certain "nut" to crack.
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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