on behalf of a credit tenant that will lease
the building upon completion under a long-term net lease. Typically, the developer
desires to sell the property once completed,
but finds the market for construction
financing onerous to navigate in the current
economy. As a result, the project is difficult
to get off the ground.
Under CapLease’s Construction to
Acquisition Program, CapLease will partner
with well-established developers and
provide cost-competitive construction
financing to complete the build-to-suit
project. When construction is complete,
CapLease will buy the property from the
developer at a pre-set price.
“This is a program designed to provide very
efficient construction financing to merchant
builders,” notes Gary Landriau, Senior Vice
President of Investments, “and it is also
results in a forward purchase for the benefit
of both the developer and CapLease. The
developer is assured of construction
financing sufficient to construct the project
and will earn a development fee plus profit
for completing the project. Caplease
benefits from being able to buy the
completed net-leased building on a forward
purchase at an attractive price.”
; A guaranteed maximum price
contract with a bonded general
contractor.
; A construction schedule of 6 to 15
months.
; A willingness to sell the completed
project to CapLease at completion
(note that this is not a construction
lending program).
If you are interested in CapLease’s
Construction to Acquisition Program for one
of your projects, please contact your
originator or CapLease at 212.217.6300.
Receive our newsletter:
If you would like to receive our newsletter in
the future, please provide us with your
contact information by clicking on:
http://www.caplease.com/signup
CapLease recently negotiated a
Construction to Acquisition contract with a
developer for a warehouse project in
Louisiana, Kentucky.
Since the program requirements and
documentation are well-defined, we can
provide an efficient and timely solution to
qualified developers with a build-to-suit
opportunity. General program requirements
include having:
; All site permits and zoning approvals.
; An acceptable long-term net lease
with a credit tenant rated BB or
better.
1065 Avenue of the Americas, New York, NY 10018 | Tel: 212-217-6300 | Fax 212-217-6301 |
www.caplease.com
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