--- title: Commercial Financing with a Credit Tenant Lease (CTL Financing) description: If You Have a Credit Tenant and the Lease is Triple Net CTL Financing Terms Are Much Much Better If you are an investor with a prime property lease --- [![c-loans-logo-2025](https://info.c-loans.com/hs-fs/hubfs/images/c-loans-logo-2025.png?width=183&height=86&name=c-loans-logo-2025.png)](https://c-loans.com) [Terms of Use](https://www.c-loans.com/terms-of-use) | [Disclaimer](https://www.c-loans.com/disclaimer) | [Blog](https://info.c-loans.com/) # Commercial Loans and Fun Blog ## [Commercial Financing with a Credit Tenant Lease (CTL Financing)](https://info.c-loans.com/bid/53475/commercial-financing-with-a-credit-tenant-lease-ctl-financing) Posted by [George Blackburne](https://info.c-loans.com/author/george-blackburne) on Tue, Jun 15, 2010 - [Tweet](https://twitter.com/share) *![Bed Bath Beyond](https://info.c-loans.com/hs-fs/hubfs/Bed%20Bath%20Beyond.jpg?width=259&name=Bed%20Bath%20Beyond.jpg)*If you have a credit tenant and the lease is triple net, ***CTL Financing*** terms are much, much better than conventional commercial loan terms. If you are an investor with a prime property leased on a triple net basis to a credit tenant, you can still get terrific commercial financing. (If you need CTL or any other commercial financing right now, please write to me, George Blackburne III - the old man - at [george@blackburne.com](mailto:george@blackburne.com).)   ![Spiderweb](https://info.c-loans.com/hs-fs/hubfs/Spiderweb.jpg?width=341&name=Spiderweb.jpg)   [![New call-to-action](https://no-cache.hubspot.com/cta/default/37671/0e554b32-5c44-4d5f-bdd1-07e96a1be7f9.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/0e554b32-5c44-4d5f-bdd1-07e96a1be7f9)   [![Please Click After Viewing Earn Up to 12% Interest Video](https://no-cache.hubspot.com/cta/default/37671/0bbf9ae8-e889-4421-8c33-3ef892bf2a00.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/0bbf9ae8-e889-4421-8c33-3ef892bf2a00)   A ***credit tenant lease*** is a method of financing real estate. The landlord borrows money to finance the property and pledges as security the rents to be received from the tenant. Usually, the financing is structured as [nonrecourse debt](http://en.wikipedia.org/wiki/Nonrecourse_debt), and the lease is structured as a [triple net lease](http://en.wikipedia.org/wiki/Triple_net_lease).  Credit tenant leases may be created either in sale/leaseback transactions or new purchase transactions. A credit tenant is typically a national company that is rated BBB or higher by Standard & Poors. Examples of national credit tenants include Walgreens, CVS Pharmacies, Petco, Auto Zone, Bed Bath & Beyond, Advance Auto Parts, Lenscrafters, FedEx Kinko's, etc.   [![Submit Your Loan to 750 Commercial Lenders Using C-Loans.com.  It's Free!](https://no-cache.hubspot.com/cta/default/37671/9f0b2bed-fb9b-455d-b8be-17d8f7960a2a.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/9f0b2bed-fb9b-455d-b8be-17d8f7960a2a)   ![Partying](https://info.c-loans.com/hs-fs/hubfs/Partying.jpg?width=395&name=Partying.jpg)   [![Free List of 3,159 Commercial Lenders Sort By Your Own Criteria](https://no-cache.hubspot.com/cta/default/37671/edc33fe8-9d87-477b-bf2f-07a33d3d2d24.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/edc33fe8-9d87-477b-bf2f-07a33d3d2d24)   ***Credit Tenant Lease Financing*** (CTL) is available to borrowers for acquisitions, refinances or the construction of a variety of property types that are tenanted by Investment-Grade rated tenants on long-term Bond, NNN, or ground leases. Acceptable property types include Single Tenant Retail, Corporate Office, Industrial (warehouse distribution) and US Government leased properties. Loans range in size from $3 million up to $300 million or more on single properties or large multi-property portfolios. Minimum debt service coverage ratios range from 1.0x to 1.05x. Surprisingly, there are no traditional restrictions on the LTV; however, the loan-to-value ratio must not exceed 100%.   [![Apply For Preferred Equity or a Commercial Scond Mortgage](https://no-cache.hubspot.com/cta/default/37671/e756b15b-fc7d-410b-bf79-5c96d02682f3.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/e756b15b-fc7d-410b-bf79-5c96d02682f3)   ![Business-1](https://info.c-loans.com/hs-fs/hubfs/Business-1.jpg?width=438&name=Business-1.jpg)   [![Free Commercial Loan Placement Kit](https://no-cache.hubspot.com/cta/default/37671/882eb54a-a8b4-4c38-a2ed-605338b6f07a.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/882eb54a-a8b4-4c38-a2ed-605338b6f07a)   These CTL loans are made on a fixed rate basis at a market spread over matching United States Treasuries (UST's). The loan term will often, but not always, match the term of the underlying lease (coterminous).  What this means is that if there are 18 years left on your credit tenant lease, lenders will sometimes - but not always - amortize their loans over 18 years.   "But George, won't the short term of the loan making the monthly payments much too large?"  You would think so, but the interest rate on CTL loans are soooo low that most deals cash flow comfortably.  --- If you need CTL or any other commercial financing right now, please write to me, George Blackburne III - the old man - at [george@blackburne.com](mailto:george@blackburne.com)  I get 1,300 emails per day (really), and I don't want to miss your email.  Would you please make the Subject Line read, "CTL Financing"?  Thanks!   [![Free List of 200 Commercial Lenders](https://no-cache.hubspot.com/cta/default/37671/3da67ca8-0ae4-4537-a365-87388c9287a1.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/3da67ca8-0ae4-4537-a365-87388c9287a1)   ![GoFundMe-1](https://info.c-loans.com/hs-fs/hubfs/GoFundMe-1.jpg?width=480&name=GoFundMe-1.jpg)   [![Are You a Developer?  Is Your Construction Lender Requiring More Equity?](https://no-cache.hubspot.com/cta/default/37671/0af0620a-006a-4de1-9b37-cb9e915d3122.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/0af0620a-006a-4de1-9b37-cb9e915d3122)   [![Subscribe To Blog](https://no-cache.hubspot.com/cta/default/37671/7636800d-cf5e-48c6-88cb-f71c131eb6ee.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/7636800d-cf5e-48c6-88cb-f71c131eb6ee)     Topics: [credit tenant financing](https://info.c-loans.com/topic/credit-tenant-financing), [credit tenant loan](https://info.c-loans.com/topic/credit-tenant-loan), [CTL financing](https://info.c-loans.com/topic/ctl-financing), [CTL loan](https://info.c-loans.com/topic/ctl-loan), [triple net lease financing](https://info.c-loans.com/topic/triple-net-lease-financing) ### George Blackburne III Owner of C-Loans, Inc. ![George Blackburne III C-Loans Owner](https://info.c-loans.com/hs-fs/hubfs/George%20Head%20Shot%20Small%205%20by%207%20copy.jpg?width=158&name=George%20Head%20Shot%20Small%205%20by%207%20copy.jpg) ### Subscribe via E-mail ### Connect with C-Loans ## [![Get the Latest Scoop on C-Loans Inc.](https://no-cache.hubspot.com/cta/default/37671/bacfb58b-143e-40d7-b126-33c182b5b90b.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/bacfb58b-143e-40d7-b126-33c182b5b90b) C-Loans.com® is sponsored by  C-Loans, Inc. — For more information, contact Tom Blackburne 555 University Ave., Suite 150, Sacramento, CA 95825 Telephone: (916) 338-3232 x 317 * Tom Blackburne in Indiana: (574) 210-6686 * Fax: (916) 338-2328 Real Estate Broker -- California Department of Real Estate -- License Number 01330173 Arizona Dept. of Financial Institutions – License Number 0909472 The Florida Mortgage Brokers License Number: 0708758 [Read our many client Success Stories](https://c-loans.com/mortgage-brokers-overview/success-stories/) » © 2025 C-Loans, Inc. All rights reserved. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "George Blackburne", "url" : "https://info.c-loans.com/author/george-blackburne" }, "dateModified" : "2019-03-22T22:33:57.797Z", "datePublished" : "2010-06-15T19:37:00.000Z", "headline" : "Commercial Financing with a Credit Tenant Lease (CTL Financing)", "mainEntityOfPage" : { "@id" : "https://info.c-loans.com/bid/53475/commercial-financing-with-a-credit-tenant-lease-ctl-financing", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://info.c-loans.com/hubfs/c-loans-logo-2025.png" }, "name" : "C-Loans, Inc." } } ```