An OfficeMax in Southeast Texas with a Triple Net (NNN) Ground Lease had an issue. First, it was in a tertiary market and not in a major market area. Second, it had a shorter lease term than what everyone in the marketplace was comfortable with.

This would qualify for our USDA loan program because it would be in a USDA-eligible area and we at least had 1:1 collateral coverage. We provided a 30-year loan for $7 Million with only a Personal Guarantee (PG) from the guarantor and a corporate guarantee on the lease.

Incase you were wondering, 97% of U.S. land mass is eligible for a loan from the USDA for $2 million to $25 million as long as you operate in a community of 50,000 or fewer!