100% FINANCING FOR GROUND LEASE DEVELOPMENTS.
Envoy's ground lease loan program offers experienced developers and corporate users up to 100% LTC financing for ground lease acquisition and development.
Unlike other lenders, Envoy has the flexibility to fully fund ground lease loans (whereas traditional banks finance up to just 85% of the cost) and requires no back-end profit participation. The developer retains 100% control of the property, and 100% of the profit after paying off the loan. For many developers, this program represents the lowest-cost option for capital when compared to third-party equity and traditional bank debt.
Envoy can fund project loans for 100% of actual hard and soft construction cost (including interest carry), up to $5.0 million per property.
- Net lease, single tenant development
- Preferred projects:
- Credit tenants*
- Minimum 10-year lease term
- NNN lease structure
- Fully entitled, shovel ready
- Less than 12-month development period
- Signed lease at closing
- Development cost per property (minimum): $500,000
- Experienced developer
*Other non-credit tenants on a case by case basis.
DEAL STRUCTURE DETAILS
- Up to 100% loan to project cost (no developer fees)
- 80% LTV "as completed"
- Maximum 18-month term
- Prime-based interest
- Fees: origination and exit
- No back-end participation
- Minimum interest period: 7 months