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A Basic Knowledge on Investment Grade Credit Tenants

A special financing offer for the landlords is what is called as the investment grade credit tenants and this is what you need to know first.

Another thing that you need to know about the investment grade credit tenant is that this is a company that receives 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. The focus of the special financing is as a matter of fact 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.

The rating of the tenant will as a matter of fact be the basis of the lenders of investment grade tenants. The main reason as to why this is being done is so that it will be possible to sell the institutional investors and securitize the loans. 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.

Most of the time, the landlords that have investment grade credit tenants are able to avail of long term loans. To be able to refinance the property or even buy a property are some of the options that they have for the loans. 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. At the end of the day, pushing through with this option will now mean that the personal liability of the landlord will now 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. A higher loan to value is as a matter of fact what they can also have. What you need to know about this is that you will not be able to find this 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. The investment grade credit tenants will be able to avail of the benefits.