Built to Suit Financing

Capital Stack in Commercial Real Estate

Capital Stack in Commercial Real Estate

In commercial real estate finance, the capital stack is the legal organization of all the layers of debt that are used to purchase, build, or renovate a piece of real estate. The position of a piece of debt in a property’s capital stack determines what the order that lender will repaid in the case of a borrower default or bankruptcy.

Built to Suit in Commercial Real Estate

Built to Suit in Commercial Real Estate

In a built to suit lease, a developer builds a property specifically for the use of one tenant. Generally, a tenant will locate a developer who is willing to purchase or ground lease land (or already owns land), and is willing to engage in a built-to-suit transaction.