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

 

STATE GOVERNMENT FINANCING

CTL Financing for State Government Lease

(State Government Lease Financing)

Please Contact Amerifund for a Quote


PROGRAM BENEFITS

  • With the assistance of State Government Financing (through a CTL Financing Structure), allows investment in a State Government lease that most would consider the safest commercial real estate investment. Like death and taxes, State Governments will always exist. Retail tenants come and go...even the big ones that are "A" rated can fail like Ames Department Stores did 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 State 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. If the State Government requires an early lease termination "Appropriations Clause", then one of the following is needed: (1) a "Friendly Appropriations Clause" wherein if the legislature voted down funding for the specific State agency, the entire agency would have to close down in order to terminate the subject lease (cannot single out subject State lease), (2) the State occupant would need to reaffirm in the SNDA that it will solicit the legislature for funded throughout the term of the lease or (3) add 25 basis points to the interest rate.
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 and retail. With Balloon Insurance, the interest rate increases 10 basis points (no increase for loans of $50 million+).
FIXED RATES: Very competitive rates. Rate locked at Loan Commitment (typically 3-4 weeks after Loan Application is signed).
POINTS: Par
DEBT SERVICE: 1.00 for triple net lease, 1.05 for double net or gross lease
LOAN-TO-VALUE: Up to 97%
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 3-4 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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