Credit Tenant Loans

A trusted leader in Credit Tenant Loan (CTL) financing. Waterway specializes in long-term debt financing for single-tenant properties with investment-grade tenants. Real estate developers, investment firms and owners partner with us to acquire, construct or refinance properties.

Highlights of our CTL program include:

  • High leverage, up to 100% LTV and minimum DSC of 1.00x
  • Non-recourse loans
  • Construction and permanent financing
  • Domestic and international properties in primary, secondary and tertiary markets
  • Fixed-rate long-term financing
  • Interest rate is based primarily on the creditworthiness of the tenant

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Sale-Leaseback Financing

Monetize a single property or multiple properties with Waterway Capital’s sale-leaseback financing program. Our sale-leaseback financing program represents a flexible and accretive financing option for public and private companies and government entities.

The advantages of our sale-leaseback financing platform include:

  • Immediate access to capital
  • Unlocks market value from otherwise illiquid assets and allows the company to redeploy capital into core operations
  • Company maintains complete operational control of the property
  • Lease terms and financing structure are tailored in order to align with the company’s overall business strategy
  • Provides an alternative source of long-term capital to match the life of the asset
  • Can be structured as a CTL depending on the creditworthiness of the occupant
  • Structured as a sale to an external third party or internally to a special purpose entity (SPE)
  • Limited or no covenants required

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Commercial Real Estate Acquisition / Investment

Investing with our partners in quality real estate. Waterway Family Funds, an affiliate of Waterway Capital, LLC, partners with developers, owners and corporate clients to invest in real estate. Drawing on our extensive experience managing private equity funds, we manage the entire investment process.

Waterway Family Funds is the ideal investment partner due to its:

  • Track record of closing transactions quickly and efficiently
  • Deep understanding of the capital and real estate markets, which allows us to offer advantageous pricing to clients and third-party sellers
  • Breadth of experience acquiring properties and portfolios across all asset types

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Structured Debt Products

Rated, structured debt products offer an alternative to traditional real estate financing. Waterway Capital also has experience financing commercial real estate projects through various structured debt products. These transactions receive an investment grade rating based primarily on the structure of the transaction, as opposed to the creditworthiness of the tenant.

Because of the rated nature of the structure, this type of financing provides capital for transactions that might not otherwise be able to obtain traditional financing, including:

  • Real estate loans with uncovered balloons or uninsured extended amortization
  • Rated debt financing for ground leases underlying commercial properties
  • On-campus student housing

We also source debt financing for non-real estate projects that have fixed, long-term contractual payments from an investment grade credit such as:

  • Equipment financing
  • Installment purchase contract financing
  • Assignment receivables financing

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Ground Lease Financing

Debt financing for developers and owners of land underlying commercial real estate. Waterway Capital provides financing for developers and owners of land underlying properties across primary and secondary markets, including offices, hotels, medical facilities and seniors housing. Our custom solutions span single- and multi-tenant properties and allow real estate owners to unlock the value of the ground and leasehold improvements through bifurcation to maximize leverage.

Typical ground lease financing characteristics include:

  • Securitization of a ground lease (borrower has a leased fee interest in the land)
  • Non-recourse
  • Credit rating is derived from the structure, cash flows and security position, as opposed to the credit worthiness of the tenant(s)
  • Up to 40-year fixed rate financing
  • Full leverage with LTV up to 100% of the leased fee estate

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Build-to-Suit Development Financing

One-stop construction and permanent loan financing for to-be-built properties leased to credit tenants.

Advantages include:

  • Assistance with the lesase negotiations to ensure that the lease is acceptable to institutional investors
  • Ability to calculate rental rate required to achieve a certain budget
  • One fixed interest rate which is locked prior to construction
  • Ability to finance up to 100% loan-to-value and above 100% loan-to-cost
  • Domestic and international properties

Related Transactions