Providing clients with CTL Financing, Ground Lease Financing and other long-term high-leverage structured finance solutions for real estate of all asset classes and geographies
Who we are
- Team of dedicated investment bankers focused on delivering custom-tailored financing solutions for each client’s specific situation. Whether you are looking to fund an acqusition, finance new construction or refinance an existing asset, JLL’s Structured Finance team can help you devise the optimal capital stack based on your individual needs.
- We are a market leader in lease-backed private placement financing. As part of JLL’s licensed broker-dealer, JLL Securities, LLC (“JLLS”), we are a fully integrated, multi-disciplined team that specializes in devising capitalization strategies for credit and structured finance products.
- Our team leverages a broad lender network of several hundred institutional investors to deliver the best financing solution available to our clients.
- With over 70 years of combined experience, we are a team of commercial real estate, investment banking, and fixed-income sales and trading specialists that are uniquely positioned to provide our clients with customized financing solutions not readily available through traditional real estate intermediaries.
- All our financing solutions are structured in-house and placed directly into the private placement market by our licensed investment banking professionals, which provides our clients with a greater level of transparency and smoother closing process.
- As the #1 originator for structured finance transactions (MBA 2021 rankings), JLL’s 3,000+ capital market professionals complete more than [$1.4 billion] in transactions every day. This enables us to provide our clients with real-time pricing of senior debt, mezzanine financing and preferred equity, leading to the most competitive terms for our clients.
What we do
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
- 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
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