CHICAGO—Envoy Net Lease Partners, LLC has just started a new national lending program that will provide up to 100% loan-to-cost financing for developers, retail and restaurant companies ready to launch ground lease developments. The Chicago-based company is the first lender, at least since the 2008 crash, to offer 100% financing, far more than any bank.
“Banks pretty much will not do a loan-to-cost above 80%,” Ralph N. Cram, president of Envoy, tells GlobeSt.com, forcing developers to seek an equity partner for the remaining funds — a route that adds substantial costs while taking away control.
“Our goal is to make ground lease transactions easier and less expensive than ever before,” says Cram. “We can be a more aggressive lender than banks, which are prohibited by regulation from providing this high a level of financing for ground leases even though they're historically one of the safest forms of construction loans.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
