Direct construction financing for developers building for national and regional tenants with signed leases.
Net Lease Construction Loans: Up to 100% Loan-to-Cost
Radar Net Lease is a direct lender that provides construction loans of up to 100% of project cost to net lease developers nationwide.
Loans run from $1 million to more than $50 million at fixed rates starting at 9.50%, with terms of 12 to 24 months. We lend on build-to-suits, ground leases and redevelopments for both single and multi-tenant projects. Since 2019 Radar has closed more than 225 net lease transactions totaling over $1.1 billion.
Loan-to-Cost
Up to 100%
Fixed Rate From
9.50%
Term
12–24 Months
Fastest Close
2 Weeks
Construction Loan Terms
Loan Size
$1 million to $50 million+; most loans are under $10 million
Loan-to-Cost
Up to 100%
Loan-to-Value
Up to 80%
Interest Rate
Fixed, starting at 9.50%
Origination / Exit Fees
1% and 1%
Term
12 to 24 months
Prepayment
No prepayment penalty; minimum interest applies
Time to Close
As fast as two weeks; typically 30 days
Project Types
Build-to-Suit, Ground Lease, Redevelopment
Property Types
Retail, Industrial, Medical (Single and Multi-Tenant)
Tenant Credit
Public & Private; Corporate & Franchisee
Geographic Scope
Nationwide
Draws
Reviewed and funded in-house
Legal Fees
Paid by the borrower
Who These Loans Are For
Radar lends to merchant builders and repeat developers who have a signed lease, or a lease close to signing, with a national or regional tenant. A typical borrower builds several net lease projects a year and wants to preserve equity by partnering with an all-in-one capital source.
Banks often decline these loans because the project is small, the borrower entity is new, the developer is out of the bank’s footprint, or the requested loan-to-cost is above the bank’s limit. Radar underwrites the lease, the tenant, the real estate, and the developer’s track record.
What We Need to Quote
- Signed lease, or the letter of intent and draft lease
- Tenant name and the entity guaranteeing the lease (corporate or franchisee)
- Development budget, including land, hard costs, soft costs and any tenant allowance
- Site address, land contract and closing date
- Construction schedule and general contractor, if selected
- Developer background and a list of completed projects
- Planned exit: sale, refinance or forward takeout
How It Works
01
Term Sheet
Send the lease or letter of intent, the budget and the site information. Radar’s principals review the deal and issue a term sheet.
02
Underwriting & Closing
Radar orders third-party reports and works with counsel to close. Loans typically close in 30 days and can close in as little as two weeks.
03
Construction Draws
Radar’s in-house team reviews and funds draws against the approved budget as work is completed.
04
Takeout
The loan is repaid when the completed property is sold or refinanced. Radar can also buy the finished property through a forward takeout agreed before construction starts.
Why Developers Use Radar
Agility
Decisions come from the principals, so unusual structures get a direct answer.
Reliability
Radar is a direct lender, and most of our loans are made to developers we have lent to before.
Transparency
Terms are set out in the term sheet and loans are serviced in-house.
Efficiency
One capital partner for construction and takeout across many projects.
Tenants We Finance
Radar has made construction loans on projects leased to Caliber Collision, Dutch Bros, Starbucks, Wawa, Chipotle, Chick-fil-A, Taco Bell, 7-Eleven, Raising Cane’s, Fifth Third Bank, Tractor Supply, Whole Foods and Sprouts, among more than 95 tenants. Radar is an independent lender and is not affiliated with or endorsed by any tenant named here.
Featured Construction Loans
Frequently Asked Questions
What is a net lease construction loan?
A net lease construction loan is a short-term loan that pays for the land and construction of a property that is already leased to a tenant under a long-term NNN lease, where the tenant pays taxes, insurance and maintenance. The lender provides funding in the form of draws, and the loan is repaid when the finished property is sold or refinanced.
How does 100% loan-to-cost financing work?
Radar lends up to 100% of total project cost, as long as the loan does not exceed 80% of the value of the completed, leased property. A net lease build-to-suit is usually worth more than it cost to build, so many projects fit both limits. Rates are fixed and start at 9.50%, with a 1% origination fee and a 1% exit fee.
What is the difference between loan-to-cost and loan-to-value?
Loan-to-cost (LTC) is the loan divided by the total cost to buy the land and build the project. Loan-to-value (LTV) is the loan divided by what the finished, leased property is worth. A net lease build-to-suit is usually worth more than it cost to build, so a loan can be 100% of cost and still be well below 100% of value.
What is the minimum and maximum loan size?
Radar’s construction loans start at $1 million and go above $50 million. Most are under $10 million, which is the size of a typical single-tenant build-to-suit.
How fast can you close?
Radar typically closes a net lease construction loan in 30 days and can close in as little as two weeks when the lease, budget and third-party reports are ready.
Do you lend on franchisee leases or only corporate leases?
Radar lends on both. We finance projects leased to public and private companies, with corporate or franchisee guaranties.
Can you finance a ground lease development?
Yes. Radar has financed ground lease projects for tenants including Chick-fil-A and Wawa.
Can you finance a multi-tenant project?
Yes. Radar has financed multi-tenant projects ranging from smaller strip centers to larger power centers.
Do I have to sell the property when construction is finished?
No. The loan can be repaid from a sale or a refinance. Developers who want a committed exit can arrange a forward takeout, where Radar agrees before construction to buy the completed property.