The Basic Guide to Investment Grade Credit Tenants
The first thing that you need to know about the investment grade credit tenants is that this is a special financing offer for the landlords.
The investment grade credit tenant is a kind of company that is able to have an investment grade rating from the rating agency. If there is a property that is rented by the credit tenant then what will happen is that the lenders will offer a special financing. This is the kind of special financing that focuses on the value and the tenant in its lease payments in the future. The focus of the investment grade tenants is not on the credit of the landlord or the real estate.
The rating of the tenant will as a matter of fact be the basis of the lenders of investment grade tenants. To sell the institutional investors and securitize the loans is the reason why this is done. A rating of at the very least a BBB- is what you need to know about the investment grade. There are a lot of investors that would invest in similar products and bonds as well. The participants that are able to rank in the investment grade credit tenants are the states and cities as well.
The long term loans can as a matter of fact be availed of by the landlords when they have investment grade credit tenants. They can make use of the loans to refinance the property or purchase 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. This will mean that the threat of personal liability will be removed. The reason why this can happen is because of the fact that the underwriters will be relying on the lease value.
To be able to obtain the direct financing is as a matter of fact what the investment grade credit tenants can also do. The best way in order to be able to avail of this is to be able to enter the sale leaseback transaction. To be able to sell and lease to an investor is what the lender with an investment grade credit tenants can do. What happens now is that the property owner will be able to earn cash on favorable terms. This also means that they now have the opportunity to have a higher loan to value. When it comes to the traditional real estate loan, you will actually not be able to find this in here.
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. The investment grade credit tenants will be able to avail of the benefits.
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