Retail loan packages and lender matching
Retail lending turns on who the tenants are and whether they will stay. A grocery-anchored center and a vacant strip are both called retail, and they are funded by different lenders. Getting the box right is most of the work.
What lenders scrutinize on retail.
Anchor and tenant mix
Grocery, pharmacy and service tenants versus soft-goods retail. The anchor's lease term matters as much as its name.
Co-tenancy and kick-out clauses
Clauses that let tenants reduce rent or leave if an anchor goes dark.
Tenant sales and occupancy cost
Where reported, tenant sales show whether rents are sustainable.
Rollover and credit
Lease expirations during the term and the credit of the tenants holding the most rent.
What goes in the package
- Rent roll with lease expirations
- Lease abstracts for anchors and major tenants
- T-12 operating statement and CAM reconciliations
- Tenant sales reports where available
- Site plan
- Appraisal
- Sponsor bio and track record
- Property photos and aerials
Metrics lenders size on
| DSCR | Often 1.25x–1.45xVaries by lender, loan program and market. |
| LTV | Often 60%–70%Varies by lender, loan program and market. |
| Debt yield | Often 8%–11%Varies by lender, loan program and market. |
Illustrative ranges, not a quote or a commitment from any lender.
Questions
What do lenders focus on for retail loans?
Anchor strength and lease term, co-tenancy clauses, tenant rollover, and whether rents are supported by tenant sales.
Does Dori support retail deals?
Yes. Retail is a supported property type.
Why does retail matching need the real box?
Retail covers very different risk profiles. Scoring each lender on asset class, size, leverage, coverage and geography filters out lenders who will not touch the deal.
One closed deal covers the year.
Start on the introductory rate and see a package come out of a real deal this week.