SINGLE-TENANT NET LEASED FINANCE PROGRAMS
SCOPE Capital Group's debt capabilities extend to generating the most competitive acquisition, bridge, construction, and permanent solutions. This capital is sourced through partnerships with various banks, credit unions, agencies, and insurance companies. SCOPE Capital has arranged financing for many of the country's top real estate investors, owners, and developers.
OVERVIEW
SCOPE Capital Group is pleased to offer its Single Tenant Lease Finance Programs to assist experienced real estate investors with acquisition and refinancing of long-term debt options. The program is designed to assist real estate owners in financing quality net leased real estate throughout the U.S. Special focus is given to smaller transactions ($1 to $5 million) across a wide range of property types and tenancy. While most of the real estate is located in larger metropolitan areas, consideration is also given to assets located in secondary and tertiary markets with market size and economic health of property locale contributing to final loan structures. Loan opportunities are sources, underwritten, approved, and serviced by a highly experienced team of professionals committed to premier customer service and delivery of consistent, reliable execution.
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QUALIFICATIONS
Ideal tenants will have an “investment grade” public debt rating (minimum Baa/BBB-) from Moody’s/Standard & Poor’s. Non-rated companies, franchisees or those with non-investment grade ratings, will also be considered, but subject to a full underwriting. As such, access to current tenant financial reporting in these situations is critical in the final loan evaluation process. Typical minimum size franchisees will operate a minimum of 25 properties and generate minimum annual revenues of $30 million.
GENERAL PARAMETERS
Loan Size // $750,000 to $40,000,000
Property Types// Retail, Office, Medical and Industrial
Loan Term // Typically, 10 Years or less but will consider 15-year terms under certain circumstances.
Loan Pricing // Fixed interest rates based upon the U.S. Treasury Rate for a maturity equal to the requested loan term plus a negotiated spread. Variable interest rate options are also available.
Loan Pricing // Fixed interest rates based upon the U.S. Treasury Rate or SWAP Rate for a maturity equal to the requested laon term plus a negotiated spread. Variable interest rate options are also available. (Libor Adjustable Loans Considered).
Interest Rate Spreads// Pricing Guide - light this in blue to redirect to pricing.
Interest Rate Lock // Interest rates may be locked for 90 days with the acceptance of a term sheet and payment of 1% refundable rate lock deposit.
Recourse Requirements // Loans that involve investment grade tenants are considered on a non-recourse basis, subject to standard carve-outs. Any amortization that extends beyond the remaining primary lease term will require some level of personal recourse to the primary sponsor (s).
Loan Amortization // 5 to 25 years (30-year amortization in certain circumstances)
Prepayment Provisions // Varies on a case by case basis. Open prepayment options are available subject to a certain yield provision. Also, sliding scale structures (Step-Down Prepayment) are considered for the borrower.
Third Party Reports// Appraisal (Appraisals less than 6 months old considered for reassignment). Phase I environmental - waived on case-by case.
Loan To Value// Not to exceed 80% with typical Max LTV at 75% (1.20x DSCR).
Minimum DSCR// 1.20x, if amortization period shorter than 30 years, will consider 1.10x. If seeking a short-term bridge product, will consider lower.
TARGET TENANTS
Walgreens, CVS, FedEx, AutoZone, Fresenius, McDonalds, Dollar General, IHOP, KFC, Chase Bank, Tractor Supply, 7-Eleve, Wawa, Albertson’s, PNC Bank, O’Reilly’s, Buffalo Wild Wings, Burger King, Advance Auto, Wendy’s, Taco Bell, Chipotle, United Pacific, Christian Bro. Automotive, Jack in the Box, Chuck E. Cheese, On the Border, Chuy’s, Caliber Collision, Kum& Go, Olive Garden, Family Dollar, Bob Evans, RaceTrac, Hardee’s, BMO Harris, Del Taco, Goodwill, Outback Steakhouse, Cheddar’s, Bojangles’, Starbucks, Chili’s, Denny’s, Circle K, Murphy Oil, NTB, Goodyear, Bank of America, Krispy Kreme, Arby’s, Hooters, International Car Wash Group, Popeye’s, Gerber Collison
