Financing NNN building with national / NASDAQ tenant w/o A rating

[Cody L.]

So I've bought lots of commercial property. Financing hasn't been a problem. Janky apartments? No prob, my local banks will finance me all day long Clean apartments? No prob, Freddie small balance will finance all day long. NNN deals with local tenants? No prob, local bank. NNN deals with national A+ rated tenants: no problem for several lenders. Here is one I'm having problems with: it's a new building with a NNN renter (and Guarenteed lease) but since they're not A rated, normal lenders I've used seem to be passing. Anyone have experience buying/financing these types of deals? What type of lender would find this to be in their wheelhouse? Life co? CMBS?

[Cody L.]

Originally posted by @Don Konipol:

@Cody L., come on Cody, did you forget about me or just not thrilled with paying my rates?  LOL

lol, this deal wouldn't work with rates above, say, even 5%. It's a ultra conservative NNN deal. Just over 6 CAP. Just looking to park some of my cash into more of a mailbox money option. At, say, 6.5% you need a rate around 4.5% -- MAYBE 5%, for it to DCR 1.25x with any leverage due to principle payback.

Where I would use hard money is if I needed help with a second. Say it's a $10m deal and I was hoping for 75% LTV but could only find 60%. I wouldn't have $4m to put down but I might have $3m. So I'd need a $1m loan. But again, even for that if the rate was more than 8-9% it simply woulnd't be worth it to me.

I've been spoiled by cheap money.  Even my 5% stuff seems high now.  I just modified one of my 5% loans (5 year local bank with 2 years left) to have another 5 years and changed the rate to 4.5%.  They did that because they knew I'd refi and close the loan if they didn't mod