Structured Finance

CTL financing is a type of mortgage financing that is structured as non-recourse to the borrower, delivered as a high-leverage debt product with a long-term fixed rate. This debt product focuses primarily on the credit strength of the tenant and the structure of the lease. While it is most relevant for individual properties with investment-grade tenants under long-term net leases (15+ years), it can be applied to all properties leased to tenants with or without a public credit rating.

As a market leader in CTL financing, JLL specializes in long-term debt financing solutions for net lease properties with tenants of all types.

Some highlights of our CTL Financing program include:
 

• High leverage, up to 100% LTV and minimum DSC of 1.00x
• Fixed-rate long-term financing vehicle
• Non-recourse loans
• Single source of construction-to-permanent financing
• Agnostic to traditional real estate fundamentals
• Interest rate is based primarily on the creditworthiness of the tenant
• Flexible amortization schedules

Ground Lease Financing is a source of debt financing which can unlock long-term intrinsic land value for owners, developers and buyers. This type of financing works on developed or to-be-developed land for both single and multi-tenant property types, across all asset types, in both primary and secondary markets. Borrowers can also use this concept for land bifurcation strategies, owning both the leasehold and leased fee estate, to increase the overall leverage profile and/or customize equity returns.

Some highlights of our Ground Lease Financing program include:
 

• Maintain ownership of land
• Tax advantaged strategy to avoid capital gains
• Max leverage (up to 100% LTV) of the leased fee estate
• Long-term (up to 40+ year), fixed-rate financing vehicle
• Non-recourse
• Securitization of a ground lease
• Credit rating is derived from the structure, cash flows and security position, as opposed to the credit worthiness of the tenant(s)

Structured debt products can be utilized as a source of non-recourse, high-leverage (up to 100%) financing funded through the U.S. private placement market. These debt products are best applicable to properties under long-term leases. Structured debt financing differs from other forms of commercial mortgage financing in that the underwriting places less emphasis on real estate attributes such as location, construction type and value. Instead, the focus is on the credit strength of the tenant and transaction, as well as the format of the lease.

Some highlights of our Structured Debt Financing program include:

• Up to 100% LTV and 1.00x debt service coverage based on NNN lease quality.
• Provides long-term fixed-rate debt (coterminous with lease) with maximum loan terms of 30 to 40+ years.
• Finance all types of estates including fee simple, leasehold, condominium, and air rights.
• Provide certain sponsors with a single execution, fixed rate construction-to-permanent financing vehicle.
• Non-recourse financing (except for recourse carve-out guarantee).
• Debt is highly assumable.

Types of Structured Debt Financing available:

• Asset-Backed Securitizations (SASB and Property Portfolios)
• Rated Note Financing
• Credit-Backed Mezzanine Financing
• Tenant Improvement Financing
• Equipment Financing
• Energy Credit Financing
• Tax Credit Financing