In one sentence
A development where a property is constructed to a specific tenant's requirements under a pre-signed long-term lease.
The longer version
In a build-to-suit, a developer builds a property tailored to a committed tenant, who signs a long-term lease before or during construction. The pre-leased, often credit-tenant, income de-risks the development.
Build-to-suit lending combines construction risk with the strength of a pre-signed lease, so diligence spans both the construction package and the tenant's credit and lease terms.
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