Our solution
Today, TKL brings value to tenants and landlords alike; the aftermath of the COVID-19 pandemic has seen borrowing costs go up across the board, landlords getting lower LTVs on their properties, and tenants demanding increasing TI allowances to offset their opportunity cost as investment hurdle rates rise. By taking both landlords and tenants out of the business of funding TI, we are plugging a major gap in the capital stacks of class A office across the United States.
Investment-grade credit tenants
With TKL, you can finance your entire TI build-out cost, regardless of how small or large your excess costs are beyond the space lease TI allowance. We take a “best-efforts” approach to secure you the lowest cost of funds available in the market, and aim to take you from start to finish in 16 to 20 weeks.
BBB- to BBB+
10 years: ~7.8%
15 years: ~7.5%
20 years: ~7.2%
A- to A+
10 years: ~7.8%
15 years: ~7.5%
20 years: ~7.2%
AA- to AA+
10 years: ~7.8%
15 years: ~7.5%
20 years: ~7.2%
If you have already placed your TI into service and want to take it off your balance sheet, we will arrange a sale-leaseback financing through your landlord which will put cash in your pocket and amortize the remaining value over the rest of the lease term, just like a new lease TKL.
High-yield credit or unrated tenants
We are committed to solving your TI problem, period. We are more than happy to work closely with you to find a solution which will enable all parties to fulfill their goals. Whether your firm is a high-yield credit or unrated by any of the major agencies, our rapport with institutional lenders means that we are uniquely positioned to deliver customized financing solutions like a secured TKL, partial amortization with a rent balloon, and more.
Get in touch with us, and we will help you figure out the right path to save your cash.
Class A office landlords
With rents declining and plenty of anchor tenants downsizing, landlords cannot afford to allocate precious capital to tenant improvements, especially in the short-term. Simultaneously, offering a sizable TI package can make the difference between signing or missing out on a big tenant. TKL offers value to landlords in three ways: (i) helps lease up space by offering turn-key TI at rates lower than competing landlords (ii) completely removes you from the TI business, if you so desire, by financing the portion of TI that would have otherwise been the space lease TI allowance (iii) allows you to book depreciation and brings savings on tax on a net present value basis. TKL can also capitalize leasing commissions into the TI lease.
We can work with you to identify clients across your class A office portfolio, captive or prospective, and offer them turn-key TI. Standardizing this process will significantly bolster new leasing efforts.