Credit Tenant Transaction - What Is It?

What does "credit tenant transaction" mean as opposed to "multi tenant"?

Comments(3)

  • commercialking4th January, 2005

    Well, a little more context would help but some commercial transactions are underwritten on the credit of the chief (or sole) tenant. If, for example, I am building a store which is leased long-term to a single tenant (say a Walgreens) then the lender will look at that tenant's creditworthiness as the primary underwriting guideline in doing the loan.

    On the other hand, if I were building a strip center with mulitple tenants (even if I had a Walgreens as the anchor) then the lender would underwrite the shopping center on more general "multi-tenant" guidelines which means the primary underwriting concern would be the rentability of the location if one or more of those tenants were to move out.

    Is that helpful, and does it appear to answer the question in the context in which the terms are used?

  • lassitermarketing5th January, 2005

    That's exactly what I was looking for - thanks!

  • commercialking10th January, 2005

    Glad to help.

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