Government Leased Properties
Commercial Real Estate Developers that built hotels and shopping centers in the past are now applying to get contracts on the construction of court houses, government office buildings and post offices. Many Investors who are involved in owning commercial real estate are now lining up for the dependable income that comes from owning commercial real estate that is leased by the Government.
There are some advantages to investing in Commercial real estate that is leased by the government.
The U.S. Government has never missed a rent payment. Currently the Government still enjoys the highest possible credit rating.
Another advantage (which is extremely important) that makes Commercial real estate that is leased by the government more attractive now is the simple fact that financing is readily available at Loanrise.
We have a specialized lending platform called credit tenant lease (CTL) financing makes getting a loan against a government building relatively simple. Our CTL financing is underwritten based on the strength of the tenant and the structure of the lease rather than the creditworthiness of the borrower and the appraised value of the real property.
CTL loans are generally long term, possibly non-recourse, and fixed rate commercial mortgage loans. Our credit tenant lease (CTL) financing holds the lease and the income it produces as the primary collateral against the loan.