A Basic Knowledge on Investment Grade Credit Tenants
The very first thing that you should know about the investment grade credit tenants is that this is a special offer of finances for the landlords.
There is a rating agency that gives an investment grade rating for the company called as the investment grade credit tenant. A special financing will be provided by the lender when there is a credit tenant that will rent on a property. This is the kind of special financing that focuses on the value and the tenant in its lease payments in the future. Actually, the focus of these investment grade tenants is not on the credit of the landlord and not on the real estate as well.
What you need to know about the lenders of the investment grade tenants is that it will based on the rating of the tenant. To sell the institutional investors and securitize the loans is the reason why this is done. What you need to know about the investment grade is that the rating has to be at least BBB-. There is one thing that you need to know about the investors and that is the fact that they would gladly invest in similar products and bonds as well. As a matter of fact, the states and cities rank as well as participants in the investment grade credit tenants.
The long term loans can as a matter of fact be availed of by the landlords when they have investment grade credit tenants. When they have the loans, they have the option to be able to refinance the property or even buy a property. When it comes to the loans they can actually be structured in a way that it will now be non recourse to the owner of the property. What will happen if one will push through with this option is that the personal liability of the landlord will be removed. The underwriters will be able to rely on the lease value which is why this can be possible.
To be able to obtain the direct financing is as a matter of fact what the investment grade credit tenants can also do. To enter into the sale leaseback transaction is as a matter of fact how this can be done. The lender that has an investment grade credit tenants now has the power to be able to sell and lease to an investor. In terms of favorable terms, the property owner will now be able to earn cash. They will also be able to have a higher loan to value. This is something that you cannot find in the traditional commercial real estate loan.
The investment grade credit tenants can actually be availed of by the property owners that are in need of loans at the soonest possible time. There is a great deal of benefits that people can enjoy with the investment grade credit tenants.
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