Your Credit Builds
Your Landlord’s Wealth.

It Should Build Yours.

There is an enormous industry built around leveraging an investment-grade tenant’s balance sheet to improve the terms of mortgage financing for the tenant’s landlord. CTL+ changes that equation. We structure transactions that return a meaningful share of that value to the tenant.

THE CHALLENGE

Mission-Critical
Facilities. Zero Leverage
at Renewal

Companies that operate large-scale distribution and logistics facilities face a recurring problem. The properties most critical to their operations — purpose-built, high-clear-height buildings in supply-constrained markets — are also the properties where landlords have the most pricing power. When leases expire, tenants face a stark choice: absorb dramatic rent increases, relocate at enormous cost, or negotiate from a position where the other side knows exactly how much pain each alternative involves.

The problem is most acute when a property is being marketed for sale. A new owner acquiring at today’s pricing will be focused on capturing the full mark-to-market at lease expiration. The tenant — whose credit made the financing possible in the first place — captures none of that upside.

THE CTL+ CONCEPT

Share in the Value Your
Balance Sheet Creates

In a conventional credit tenant lease, the landlord pledges the lease and rent stream to a lender as collateral, and the lender underwrites the loan based on the creditworthiness of the tenant. This allows the landlord to obtain financing on terms that would not be available for a conventionally underwritten mortgage. All of the economic benefit flows to the landlord.

CTL+ restructures that arrangement so that a meaningful share of the benefit flows back to the tenant — in the form of below-market rent, a favorable purchase opportunity, and long-term cost certainty. The landlord still earns an attractive return. The tenant simply participates in the value that its own balance sheet creates.

CTL+ does not require the tenant to buy anything, borrow anything, or change its capital structure. It is a lease — structured to return value that currently flows entirely to the other side of the table.

KEY BENEFITS

What CTL+ Delivers

Future Purchase Opportunity

A purchase option at a strike price determined at the outset using a conservative appreciation formula. Over a multi-decade horizon, the expected gap between the option price and actual market value is substantial.

Operating Lease Treatment

Structured to qualify for operating lease accounting. The tenant avoids the balance sheet impact of a direct acquisition while retaining all the economic benefits of long-term occupancy and a future purchase path.

Mission-Critical 
Asset Control

Uninterrupted control of specialized facilities for two decades or more. No risk that a future landlord repositions the property, declines to renew, or sells to an owner whose interests are not aligned with yours.

Below-Market Rent Locked 
for Decades

NNN rent set at a significant discount to current market levels, with modest predetermined annual escalations, for a term of 20 to 25 years. In markets where rents have been growing at double-digit rates, the savings compound every year.

IDEAL CANDIDATES

Where CTL+ Works Best

CTL+ is most compelling for facilities that share several characteristics:

  • The facility is mission-critical, with significant tenant investment in the space and high displacement costs

  • The tenant has an investment-grade credit rating


  • The property is in a supply-constrained market where rents are rising faster than general inflation

  • The current lease is approaching expiration or the property is being marketed for sale


For tenants with multiple facilities that meet these criteria, CTL+ can be deployed programmatically across a portfolio.

GET IN TOUCH

Explore Whether CTL+
Fits Your Portfolio

We welcome a confidential conversation about how CTL+ could apply to your facilities. We are prepared to provide a detailed financial analysis tailored to specific properties you identify.