redit Tenant Lease Financing:
Credit Tenant Lease (CTL) financing is a $2-3 billion a year component in today's
commercial real estate market. While traditional real estate loans are written
against the value of the land, as well as the credit and business record of the borrower,
CTL financing primarily emphasizes the credit quality of the tenant and lease
structure in order to establish a cost of borrowing.
Investment grade tenant loans tend to price and trade like bonds in the capital
markets. Pricing for non-investment grade and non-rated tenants require additional
analysis to include, among other risks, the value of the real estate asset.
CTL financing generally has several advantages over traditional real estate
financing including, tighter pricing, lower debt service coverage ratios, maximum
loan proceeds and greater liquidity. Today, CTL financing is a valuable source of
capital and an effective use of the debt capital markets for:
Industry Leader: First Oxford has been a leader in the net lease business for over
30 years. The Company's own portfolio consists of predominately credit tenant net
leased industrial, retail and office buildings, making First Oxford one of the
largest privately owned companies in the US engaged primarily in the corporate net
lease real estate business.
- acquisition financing
- permanent financing
- equity withdrawal
- additional working capital
- refinancing term maturities.
Underwriting Expertise: First Oxford has worked extensively with both public and
private companies, and across the spectrum of investment grade, below-investment
grade and non-rated tenants. First Oxford's national presence, acquisition
experience and access to capital allow the Company to effectively execute both
single property and multiple property transactions.
Tenant Credit Characteristics: First Oxford focuses on strong or improving
credit quality tenants. The Company assesses a tenant's operating history,
potential for growth, recognized business franchises and market presence, as well
as the property's strategic importance to the corporate tenant. In addition to
its strong credit analysis capabilities, First Oxford has the expertise and
experience to evaluate real estate risk and successfully structure transactions
involving below-investment grade and non-rated tenants.
Secondary Market Maker: As a mortgage banker since 1976, First Oxford works
closely with several hundred insurance companies, pension funds, commercial
banks and savings institutions. In addition to originating CTL loans, First
Oxford is an active player in the secondary CTL market.