American Trust Corporation

Credit Tenant Lease Loans – Minimum $2,000,000

Qualifications: Existing, stabilized, income-producing properties housing investment-grade credit tenants with a credit rating of “BBB” with stable outlook or better.

Tenants rated "BBB-" with a stable outlook by both S&P and Moody’s will be considered on a very selective basis.

Cannot finance non-rated companies regardless of the strength of their financials without a shadow rating.

Property Types: Office, Retail, Industrial

Term: Up to 25 years.

Index: U.S. Treasury or Swap Index correlating to the average life of the remaining lease term.

Amortization: Fully amortizing and coterminous with the remaining lease term.

Balloons structured by exception and required residual value insurance and an MAI appraisal.

Average Life: 15/15 deal has 9 year average life; use interpolated 9-year U.S. Treasury or interpolated 9-year Swap Rate index.

20/20 deal has 12-year average life: use interpolated 12-year U.S. Treasury or interpolated 12-year Swap Rate index.

25/25 deal has 15-year average life; use interpolated 15-year U.S. Treasury or interpolated 15-year Swap Rate index.

Residual Value Insurance (RVI): Required for transactions structure with balloons.

Rate Lock: 45-day forward rate lock available after execution of Loan Commitment and payment of a 1% commitment fee.

Borrower is required to pay 0.25% rate lock fee and post 1% rate lock deposit to cover hedging costs. Rate lock deposit will be returned to borrower at closing unless needed to cover hedging costs.

The cost of maintaining the hedge paid by borrower is approximately 0.25% for each 45-day period. Severe market swings or adverse market conditions would require using the rate lock deposit to cover hedging costs.

Loan-to-Value: Maximum 100% LTV.

Minimum DSCR: Office 1.00x, Retail 1.00x, Industrial 1.00x

Lease Type: Bondable (no landlord obligations), NNN (landlord only responsible for roof and structural repair), NN (landlord responsible for significant portion of operating expenses).
Bond Lease Insurance: Required to the extent that the lease contains termination rights arising from condemnation or casualty.

Typical Closing: 45-60 days from receipt of executed application and the Good Faith Deposit.

Good Faith Deposit (Collected at application):
$25,000 (standard expense)

Standard Expenses
Application Fee: $2,500 (non-refundable)
Phase I: $2,500
Engineering: $2,500
MAI Appraisal: $5,000 (LTV Constraint is 100%)
Legal: $7,500
Total: $22,500

Additional Expenses
RVI: 5% of balloon amount
Rate Lock Fee: 0.25% of loan amount

These expenses are approximate and subject to change based on loan size. They represent American Trust Corporations actual out-of-pocket expenses. Any portion of the good faith deposit not used will be returned to the borrower at closing.

Recourse: Non-recourse except for standard carve-outs for "bad boy" acts and environmental.

Required Reports: Phase I Environmental Assessment Report, Physical Condition Assessment Report, MAI Appraisal (if balloon payment is structured)

All reports to be ordered by American Trust Corporation and prepared by approved vendors only.

Assignment/Assumption: One-time option only with American Trust Corporations consent and payment of 1.00% fee (based on outstanding principal loan balance) and American Trust Corporations transaction costs.

Lockout: None

Prepayment: Defeasance only.

On-Going Reserves/Escrows: None

Reserves: Letter of credit or upfront cash reserve sized to meet any landlord obligations for non-bondable leases.

Application Fee: $2,500 non-refundable inspection/loan processing fee payable to American Trust Corporation with the loan application, will be credited to origination fee at closing

Origination Fee: 1% of loan amount

What We Do

Lending Programs

Property Types

Application Forms

Global Financing Solutions

Short Term Commercial

Float to Fixed

Small Loan Programs

Hard Money Loans

Credit Tenant Financing

Mezzanine

Multifamily

Office

Health Care Financing

Hotel & Resort Financing

Auto, Marine & Equipment Financing

Mobile Home Park

FHA & Fannie Mae Products

Self Storage

Retail

Industrial

SBA Programs

Factoring and Business Finance

Small and Rural Hospital Finance

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	Credit Tenant Lease Loans – Minimum $2,000,000 Qualifications: Existing, stabilized, income-producing properties housing investment-grade credit tenants with a credit rating of “BBB” with stable outlook or better. Tenants rated "BBB-" with a stable outlook by both S&P and Moody’s will be considered on a very selective basis. Cannot finance non-rated companies regardless of the strength of their financials without a shadow rating. Property Types: Office, Retail, Industrial Term: Up to 25 years. Index: U.S. Treasury or Swap Index correlating to the average life of the remaining lease term. Amortization: Fully amortizing and coterminous with the remaining lease term. Balloons structured by exception and required residual value insurance and an MAI appraisal. Average Life: 15/15 deal has 9 year average life; use interpolated 9-year U.S. Treasury or interpolated 9-year Swap Rate index. 20/20 deal has 12-year average life: use interpolated 12-year U.S. Treasury or interpolated 12-year Swap Rate index. 25/25 deal has 15-year average life; use interpolated 15-year U.S. Treasury or interpolated 15-year Swap Rate index. Residual Value Insurance (RVI): Required for transactions structure with balloons. Rate Lock: 45-day forward rate lock available after execution of Loan Commitment and payment of a 1% commitment fee. Borrower is required to pay 0.25% rate lock fee and post 1% rate lock deposit to cover hedging costs. Rate lock deposit will be returned to borrower at closing unless needed to cover hedging costs. The cost of maintaining the hedge paid by borrower is approximately 0.25% for each 45-day period. Severe market swings or adverse market conditions would require using the rate lock deposit to cover hedging costs. Loan-to-Value: Maximum 100% LTV. Minimum DSCR: Office 1.00x, Retail 1.00x, Industrial 1.00x Lease Type: Bondable (no landlord obligations), NNN (landlord only responsible for roof and structural repair), NN (landlord responsible for significant portion of operating expenses). Bond Lease Insurance: Required to the extent that the lease contains termination rights arising from condemnation or casualty. Typical Closing: 45-60 days from receipt of executed application and the Good Faith Deposit. Good Faith Deposit (Collected at application): $25,000 (standard expense) Standard Expenses Application Fee: $2,500 (non-refundable) Phase I: $2,500 Engineering: $2,500 MAI Appraisal: $5,000 (LTV Constraint is 100%) Legal: $7,500 Total: $22,500 Additional Expenses RVI: 5% of balloon amount Rate Lock Fee: 0.25% of loan amount These expenses are approximate and subject to change based on loan size. They represent American Trust Corporations actual out-of-pocket expenses. Any portion of the good faith deposit not used will be returned to the borrower at closing. Recourse: Non-recourse except for standard carve-outs for "bad boy" acts and environmental. Required Reports: Phase I Environmental Assessment Report, Physical Condition Assessment Report, MAI Appraisal (if balloon payment is structured) All reports to be ordered by American Trust Corporation and prepared by approved vendors only. Assignment/Assumption: One-time option only with American Trust Corporations consent and payment of 1.00% fee (based on outstanding principal loan balance) and American Trust Corporations transaction costs. Lockout: None Prepayment: Defeasance only. On-Going Reserves/Escrows: None Reserves: Letter of credit or upfront cash reserve sized to meet any landlord obligations for non-bondable leases. Application Fee: $2,500 non-refundable inspection/loan processing fee payable to American Trust Corporation with the loan application, will be credited to origination fee at closing Origination Fee: 1% of loan amount
		What We Do Lending Programs Property Types Application Forms

		Global Financing Solutions Short Term Commercial Float to Fixed Small Loan Programs Hard Money Loans Credit Tenant Financing Mezzanine Multifamily Office Health Care Financing Hotel & Resort Financing Auto, Marine & Equipment Financing Mobile Home Park FHA & Fannie Mae Products Self Storage Retail Industrial SBA Programs Factoring and Business Finance Small and Rural Hospital Finance


Privacy Policy