UP TO 100% FINANCING FOR CONSTRUCTION LOANS.
Envoy developer client Tom English, founder of Tom English Retail Real Estate, talks about the challenges of finding a financing partner for smaller build-to-suit projects under $10 million. Then he found Envoy, his go-to capital provider for 11 projects and counting.
Envoy's highly leveraged construction loan program for net lease properties offers experienced developers and corporate users up to 100% LTC financing for single-tenant, build-to-suit properties.
Unlike many financing programs, including those offered by REITS, Envoy's doesn’t require the developer to sell the property immediately following construction. Instead, the developer retains control of the property simply by paying off the construction loan and paying an exit fee. For many developers, this program represents the lowest-cost option for capital when compared to third-party equity and traditional bank construction debt.
Below are brief case studies on recent Envoy-financed construction projects for Goodwill Industries and Sleep Number:
Net lease, single tenant development
- Credit tenants*
- Minimum 10-year lease term
- NNN lease structure
- Fully entitled, shovel ready
- Less than 12-month development period
Development cost per property (minimum):
- Build to Suit: $1,250,000
Experienced development companies:
- Minimum 1-year track record with tenant
- Preferred developer status
*Other non-credit tenants on a case by case basis.
DEAL STRUCTURE DETAILS
Up to 100% loan to project cost
- 85% LTV "as completed"
- 1.01 debt coverage ratio
Single asset construction loans:
- Maximum 24-month term
- Minimum interest period: 7 months
- Fixed-rate interest
- Fees: origination and exit