CTL financing provides borrowers and occupiers a source of long-term, fixed-rate financing on a non-recourse basis. Agnostic to traditional real estate attributes, this type of financing focuses on the financial profile of the lessee, which works with public corporations, private companies and not-for-profit institutions alike.
This option often results in a cheaper cost of capital made available to borrowers than other forms of real estate financing. Loans can be custom tailored based upon borrower's needs and can provide financing terms up to 30+ years with balloon structures available. CTL financing typically ranges from $10 million to $500 million with no ceiling on loan amount. Diverging from conventional real estate loan metrics, CTL financing allows for debt service coverage ratios as tight as 1.0X with max loan-to-value of 100%.
While this all sounds attractive, how do you know
when you should consider CTL financing?
Learn more about why this funding option is ideal in our current economic climate
JLL executed credit analysis, construction management, project coordination and bond structuring / placements to secure $333 million in financing for Zurich American Insurance Company.
To finance two state-of-the-art medical facilities, JLL executed consulting, lease structuring / advisory services, bond structuring and placement and closing coordination.
Seeking a source of acquisition financing for an outpatient surgery and oncology medical facility, JLL executed lease restructuring and financial and credit analysis to prove the strength of the tenant and ensure the transaction's marketability.
For the construction of a highly specialized, state-of-the art biomedical research facility, JLL structured the transaction, acquired an NAIC-1 rating, provided lease structuring advisory to all parties and placed the CTL financing with institutional fixed income investors for the new owner.
Seeking a source of acquisition financing for two paid parking properties, JLL helped secure a source of financing that minimizes the amount of required equity.
The developer desired long-term, fixed-rate construction-to-permanent financing to fund the Privatization Initiative, as well as provide a return on equity during the term of the Ground Lease. JLLS structured the public-private partnership, provided ratings advisory, lease advisory and bond structuring and placement.
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