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Credit tenant loan (CTL) financing is an attractive debt financing solution for owners and developers of single tenant properties leased to investment grade tenants.

A credit tenant loan is a type of high leverage, long-term debt financing for single-tenant commercial real estate leased to investment grade tenants via a long-term lease. Credit tenant loans are sized by discounting all of the rent payments due under the lease. Since CTL financing relies on the credit of the tenant, lenders are not constrained by loan-to-value or dollar per sq. ft.

CTL loans can be used to finance build-to-suit developments. In these cases, the borrower locks into one loan with one, fixed interest rate, therefore eliminating interest rate risk and the risk of refinancing with permanent a take-out loan.

Please refer to our Introduction to Credit Tenant Loan Financing guide for additional details.

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