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Your asset is only as strong as your tenant. LeaseShield is the hedge — a small, defined annual premium that converts tenant-credit tail risk into a contractual lump-sum payout if your tenant files for bankruptcy. Built for the moments that matter, from refinances and lender reviews to credit downgrades and hold-vs-sell decisions.
A credit-tenant NNN asset carries two premiums: the rent is priced above market, and the cap rate is compressed below where the dirt would otherwise trade. Both are priced off the tenant's credit — and both unwind the day the tenant files. When they do, three distinct losses hit at once, none of them covered by traditional property or casualty insurance.
$83K+ over a typical 4-month dark period. The lease is rejected and income stops on day one — while taxes, insurance, and the mortgage continue.
$150K–$250K out of pocket per asset. Tenant improvements, leasing commissions, legal, and carrying costs — all before the first new rent dollar.
$1.5M+ of value destroyed on a 10K SF box. Rent resets to market and capitalizes — at a 7% cap, every $1 of lost rent erases ~$14 of value. It never resets.
In bankruptcy, your lease can be rejected overnight — collapsing the income and the cap rate at the same moment, before you can act.
Tenant credit risk becomes urgent at specific points in the life of a property — not at the conceptual level. LeaseShield is built to slot into those moments as the mitigant that unlocks the next step.
Loans are maturing into a higher-rate, tighter-credit market. A hedged lease cash flow can be the difference between a clean refinance and a capital call.
Trigger: loan maturity, DSCR stressLenders are pushing for stronger recourse, reduced proceeds, or extra structure around single-tenant credit. LeaseShield meets the bar without restructuring the loan.
Trigger: recourse carve-outs, proceeds haircutWatchlisted tenants, downgraded credits, and weakening sectors quietly drain value. Targeted protection stops the bleed before it shows up in year-end marks.
Trigger: downgrade, negative watch, sector stressIf a sale clears your number, sell. If not, hold — but hold with protection. LeaseShield reshapes the economics of holding a concentrated credit position through a cycle.
Trigger: disposition review, bid gap, cap rate wideningThe pattern is consistent: adoption happens when there is a deal on the table. Refinance, sale, portfolio review, credit committee. That's where LeaseShield does its work.
Banks, insurers, and credit funds actively hedge their credit exposure. LeaseShield brings similar tools to private commercial property investors.
Every major financial institution manages credit risk as a core discipline. When a bank holds a loan, they don't just hope the borrower pays — they hedge. When an insurer underwrites a policy, they reinsure. When a credit fund takes a position, they define their downside.
You're managing a credit position like a professional — whether you realize it or not.
As a commercial property owner with a single-tenant net lease, your entire income stream depends on one counterparty's creditworthiness. That's a concentrated credit position. LeaseShield gives you access to the same kind of hedging tools that institutions have used for decades.
Every major lender manages portfolio credit risk through hedging instruments. Your lease exposure is no different.
Even insurance companies protect themselves against concentrated exposure. It's standard risk management.
Professional credit investors never take unlimited downside risk. They structure protection into every position.
Understanding the downside helps you prepare for it. Here's what tenant credit events look like in practice.
Bankruptcy reorganization
Default while remaining in space
Credit quality deterioration
of tenant credit risk falls entirely on you as the property owner
A small annual premium protects significant asset value and income
Tenant credit doesn't just affect income — it drives property value. Stabilizing cash flow can preserve or enhance your asset's worth.
The creditworthiness of your tenant is the single largest factor in your property's capitalization rate and market value.
Even the perception of credit deterioration can widen cap rate spreads, reducing your property's appraised value and limiting financing options.
LeaseShield is not just protection against loss — it's a cap rate defense strategy that can preserve or enhance the value of your investment.
A straightforward hedge, structured around live transactions and institutional underwriting timelines.
Bring us the asset and tenant. We evaluate the credit, lease, and deal context, then size coverage to the specific risk.
Indicative pricing in 24–48 hoursYou receive a term sheet defining the coverage amount, trigger event, payout mechanics, term, and premium — clear and contractual.
Full structuring in 5–7 business daysOn a defined credit event — bankruptcy filing or lease rejection — you receive a predetermined lump sum. No claims process, no discretionary review.
Coverage placed before closeIf your tenant files for bankruptcy, you get paid. A small, known annual premium buys a contractual lump-sum payout — typically 25–50× that premium — sized to substantially offset the value loss. This isn't just protection; it's value preservation and cap rate defense.
Your payout is a specific, contractually defined lump sum tied to a defined credit event — not claims adjusters, not deductibles, not exclusions.
No ambiguity. No discretion. Pre-defined credit events, contractual payout structures, and transparent terms agreed upfront.
Specific, objective triggers tied to your tenant's credit profile — no subjective judgment calls.
Payment amounts and conditions are defined upfront. When a credit event occurs, the payout is automatic.
Once your protection is in place, there's nothing to monitor, adjust, or manage. It works automatically.
Every element — coverage, cost, duration, triggers — is disclosed and agreed upon before you commit.
LeaseShield protection is capitalized by an internationally recognized, publicly traded, rated Wall Street bank — bringing the credibility of institutional credit markets to private investors. Each transaction is structured through a dedicated SPV, and the capital sits on the bank's own balance sheet. The counterparty name is disclosed under NDA.
Capital is committed by an internationally recognized, publicly traded, investment-grade Wall Street bank — not a startup balance sheet. Name disclosed under NDA.
Protection capital sits on the counterparty bank's own balance sheet — not in unfunded promises. Each deal is structured through a dedicated SPV, the same legal architecture used across institutional credit markets.
Issued as a security swap or credit-linked note to accredited investors — modeled on the same credit-derivative frameworks global institutions use to manage billions in exposure every day.
A subsidiary of HCS focused on credit protection for net-lease real estate, founded by Marc Porzecanski and Fred Bin.
Founders bring 25+ years structuring esoteric and complex financial instruments, providing the structuring, administration, and capital-markets relationships behind every transaction.
One of the largest commercial real estate capital advisory platforms in North America, the exclusive distribution partner for LeaseShield through its credit-tenant brokerage team.
Move from single-asset thinking to portfolio-level risk management. Layer protection selectively where it matters most.
Spread your risk across your portfolio rather than concentrating it in a single tenant's credit profile.
Layer protection where risk is highest. Not every property needs coverage — focus on your most concentrated exposures.
Tailor coverage to your specific needs — choose the tenants, terms, and exposure levels that make sense for your portfolio.
Illustrative example. Actual coverage depends on qualification.
Clean, intuitive economics. No hidden fees, no margin calls, no mark-to-market. Just defined cost and defined protection.
Protect millions in rent exposure for a known annual cost. No surprises, no escalators, no hidden charges.
Unlike other financial hedges, there are no margin calls and no mark-to-market. Your cost is fixed from day one.
If a qualifying credit event occurs, the payout amount is defined in your contract. No claims process, no adjusters.
Each stakeholder in a single-tenant asset sees credit risk differently — and reaches for a hedge at a different moment. LeaseShield speaks to each on their own terms.
You bought the asset for predictable cash flow and a disciplined exit. A credit event puts both at risk at the same time.
At refinance, lenders are pulling back on single-tenant credit. Protection can be the mitigant that preserves proceeds and limits sponsor recourse.
Single-tenant exposure is a credit position. LeaseShield lets credit teams lean into deals where the asset is strong but the tenant needs a mitigant — and defend existing portfolios as credits migrate.
LeaseShield is a new category for many investors. Here's what it is — and what it isn't.
No. This is not property or casualty insurance. It is a credit protection contract — entirely different in structure, trigger, and payout.
No. This protection does not depend on physical damage, fire, flood, or any casualty event. It is tied solely to tenant credit.
No. You don't need to believe your tenant will fail. This is protection, not prediction. The same way you insure a building you hope never burns down.
No. This is risk management — the same approach banks and institutional investors use. It is hedging an existing exposure, not creating a new one.
The macro environment has shifted. Credit conditions are tightening, retail is evolving, and the window for proactive protection is narrowing.
The retail landscape is changing rapidly. E-commerce pressure, shifting consumer behavior, and store closures are reshaping the sector.
Pharmacy and big-box retailers face margin compression, PBM battles, and reimbursement cuts that directly impact creditworthiness.
Higher interest rates and a more selective lending environment mean credit stress is more likely and refinancing harder.
Lenders are increasingly scrutinizing tenant credit quality. Demonstrating hedged risk can strengthen your financing position.
Meaningful adoption doesn't come from reading about credit hedging. It comes from using it inside an actual refinance, sale, or portfolio review. LeaseShield is designed to live inside the deal file — priced, modeled, and documented alongside the transaction it's meant to support.
Introduced alongside the loan application or LOI — priced, sized, and scoped before the deal is papered, so credit mitigation is on the table from day one.
Coverage is modeled into DSCR, debt yield, and proceeds analysis — so the hedge shows up in the same numbers the credit committee is already reviewing.
Applied across watchlists and expiring leases in batches — so owners, lenders, and advisors can triage concentration systematically instead of asset-by-asset.
Paired with the offering memorandum to defend cap rate and broaden the buyer pool — turning a credit concern into a quantified, transferable hedge.
If you're structuring refinances, sale processes, or credit reviews where single-tenant exposure is the sticking point, LeaseShield is designed to be introduced inside your workflow — not pushed around it. We work with intermediaries to embed coverage at the moment clients actually make the decision.
Partner With UsFind out if your property and tenant are eligible for LeaseShield. Our team will walk you through how it works.
You've already taken the credit risk. LeaseShield helps you manage it.