LendingfINANCING THE NEXT GENERATION OF STNL REAL ESTATE OPPORTUNITIES
Smart Lending for Single-Tenant Real Estate Investors
Verlaine Capital offers financing to support the underserved market demand and liquidity gap many STNL (Single Tenant Net Lease) developers and investors are experiencing. The Verlaine Capital Stable Income Fund’s loan products are segmented into four categories – Construction, Bridge, Permanent and Special Situation – each designed with flexible structures to accommodate a range of borrower needs.
Construction Loans
Verlaine Capital originates loans to experienced investors and STNL developers focused on delivering credit-anchored retail assets
Designed for ground-up development, construction loans will offer funding on an initial and future basis with a loan sizing of up to 100% loan-to-cost (LTC). Loan sizes range from $500,000 to $10,000,000 with term durations of 12–24 months. The loans may be floating or fixed, benchmarked to SOFR or U.S. Treasuries (UST), and carry a floor rate of 9.50%. Interest is typically paid-in-kind (PIK), with no deposit required and first-lien positioning. Amortization is structured as interest-only (IO) throughout the term and extension periods.
Permanent Loans
Permanent loans offer longer terms (12–36 months), targeting stabilized assets. Loan sizing and rate benchmarks are consistent with the other products. Interest is structured to be fully current, ensuring predictable cash flow for investors. This product is well-suited for income-generating assets with strong tenant covenants. Loan are non-recourse.
Special Situation Loans
Structured to meet unique or time-sensitive borrower needs, special situation loans include more bespoke underwriting.
Key terms include:
- Loan amounts: $500,000 to $5,000,000
- Floor rate: 11.50% (reflecting higher complexity or risk)
- Interest structure: may include full PIK interest, hybrid structures, or flexible repayment mechanisms
- Positioning: deal-specific, allowing Verlaine to assess risk-adjusted returns on a case-by-case basis
- Recourse: non-recourse
These loans are designed for flexibility, enabling creative solutions that address specialized borrower requirements and unique project timelines.
VERLAINE CAPITAL PRINCIPALS
Verlaine Capital seeks to foster long term relationships with investors, tenants, clients, and service providers. We also actively pursue philanthropic endeavors with a focus on pediatric health, a cause dear to the principals and their families.
