A Better 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.
The investment grade credit tenant is a kind of company that is able to have an investment grade rating from the rating agency. 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. 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. The most important thing that 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. It is actually the states and the cities that are the participants that have ranked 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. To be a non recourse to the owner of the property is one way to be able to structure the loans. 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 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. 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. 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.
For the property owners that are in need of the loans at the soonest possible time can in fact avail of the investment grade credit tenants. The investment grade credit tenants will be able to avail of the benefits.