Investment Grade
Investment Grade is a bond rating. We made it a capital and real estate strategy.
Are your investments making the grade?
Investment grade is a credit rating of BBB- / Baa3 or higher, the credit-quality threshold used to classify bonds, corporate debt, real estate tenants, and capital structures. Ratings of BBB-/Baa3 or above are considered lower default risk; anything below is speculative grade, also known as high yield or junk. We apply this same credit framework to every asset class covered on this site.
We specialize in providing direct ownership investment opportunities that meet rigorous standards of creditworthiness and stability. These opportunities are tailored to individual investors, limited partners, general partners, and institutions.
Investment Grade Capital
Our capital solutions are focused exclusively on Commercial Real Estate (CRE) Debt, tailored to meet the complex needs of our clients. We offer rate and term refinancing, cash-out refinancing, and acquisition loans across all CRE sectors. We deliver competitive, flexible solutions designed to maximize the financial leverage and returns on your real estate assets. Whether you are looking to secure the best possible rate for a purchase or refinance, we streamline the process to help you achieve your capital objectives.
Commercial Asset Classes We Fund
Refinance Rate & Term or Cash Out Refinance, Acquisitions Loans. Through Investment Grade Capital, a service of Investment Grade LLC, we match your request with lenders active in your property type and loan size, so you can compare rates, terms and covenants side by side. Email team@investmentgrade.com.
NNN
Single tenant net lease financing for investment grade, non-investment grade and franchise tenants. From Retail to QSR, Quick Service Restaurants to Automotive to Banks to Pharmacies. Browse our tenant ratings database for credit-backed NNN examples.
Multi Family
Loans for all Apartment Building types, from Co-Op to Condo to Garden to Mid Rise to Town Homes, including Mixed Use, Active Adult, Student Housing, Affordable & Workforce Housing, Build to Rent
Industrial
Funding Flex Space / R&D to Manufacturing, Heavy Industrial, Warehouse, Bulk Distribution & Warehouse Cold Storage. *Also structuring Sales-Leasebacks for select Industrial NNN tenants.
Healthcare
Loans for Specialty Care, Urgent Care, Ambulatory Surgery Centers, Dialysis Clinics, Dental Clinics, Medical Offices, Assisted Living, Inpatient Facilities, Outpatient Facilities, Skilled Nursing, Memory Care *Also structuring Sales-Leasebacks and Build To Suit Expansion for select Healthcare NNN tenants
Hospitality
Refinance, Cash Out & Acquisition Loans for Flagged/Unflagged Conversions, Flagged/Unflagged Full Service, Flagged/Unflagged Limited Service, Flagged/Unflagged Suite Extended Stays. Micro Resorts and Campgrounds. See our hospitality NNN guide.
Special Use
Financing & Refinancing Automotive NNN, Auto Body/Service & Repair, Auto Dealerships, Car Washes, Gas Stations, Convenience Stores, Day Care Facilities, Restaurants, Single Family Home Portfolios
Investment Grade Real Estate
Acquisitions
Our acquisitions focus is centered around delivering investment opportunities that meet the highest standards of security and performance. We offer:
- Investment Grade NNN Credit Tenants: We specialize in acquiring properties leased to creditworthy, investment-grade tenants on triple net (NNN) leases. These properties offer a stable and predictable income stream, supported by well-established corporations that assume the majority of operational expenses. Explore investment opportunities that prioritize financial strength and dependability by reviewing our investment grade tenant ratings database and current NNN cap rate analysis.
- Institutional Grade Multifamily: We target off-market multifamily properties with 50+ units, specifically those that align with institutional-grade investment standards. Our acquisitions team sources these opportunities through owner and broker relationships, often before they reach the open market. Each property is vetted for quality, durability of income and fit with institutional underwriting standards before it is presented to investors.
Dispositions
Investment Grade provides a streamlined and effective solution for property dispositions, covering both on-market and off-market transactions, with Broker of Record co-listing partnerships in all 50 states. Our commission rates start from 1% for mid-market commercial real estate assets from $2M to $20M+, offering competitive pricing whether you’re looking to sell an asset quietly off-market or to gain maximum exposure through broad marketing efforts. Our aim is to help your asset reach its highest potential value through market knowledge and a broad buyer network.
Exchanges
Take advantage of our expertise in 1031 Exchanges to defer capital gains and maximize your investment returns. We assist investors in navigating the complexities of the 1031 exchange process, allowing for a seamless transition from one investment property to another. We work alongside your qualified intermediary and tax advisors to identify replacement property that fits your 45 and 180 day exchange deadlines, with an investment grade focus on quality assets and long-term value.
Syndications
Does your syndication “make the grade”? Our Syndication Grading service provides in-depth analysis for Limited Partners (LPs), focusing on the alignment between investor interests, deal economics, and sponsor execution. We assess whether your syndication meets the standards institutional investors expect. With a focus on transparency, financial stability, and market viability, our grading process helps investors (limited partners) evaluate syndicated real estate properties and funds.
Investment Grade Rating Scale
The investment grade threshold is BBB‑/Baa3. It is the minimum long-term rating from S&P Global Ratings, Moody’s or Fitch for a bond issuer, REIT or company to be classed as investment grade. A rating belongs to the specific entity that was rated, not to every lease, property or franchise location tied to its brand.
| Rating Tier | S&P / Fitch | Moody’s | What It Signals |
|---|---|---|---|
| Prime | AAA | Aaa | Highest credit quality, minimal default risk |
| High Grade | AA+, AA, AA‑ | Aa1 to Aa3 | Very strong capacity to meet obligations |
| Upper Medium | A+, A, A‑ | A1 to A3 | Strong capacity, more sensitive to economic change |
| Lower Medium | BBB+, BBB | Baa1, Baa2 | Adequate capacity, more exposed to downturns |
| Minimum Investment Grade (cutoff) | BBB‑ | Baa3 | Lowest rating still classed as investment grade |
| Non-Investment Grade | BB+ and below | Ba1 and below | Speculative grade, also called high yield or junk |
Examples: Rated Entities Behind Common NNN Tenants
Each row names the entity that carries the rating, shows the current S&P and Moody’s ratings from our verified tenant ratings database, and gives the date we last checked them against agency rating actions and issuer filings.
| Tenant | Rated Entity | S&P | Moody’s | Status | Verification |
|---|---|---|---|---|---|
| 7-Eleven | 7-Eleven, Inc. | A- | Baa2 | investment grade | Ratings checked September 27, 2026 |
| Amazon | Amazon.com, Inc. | AA | A1 | investment grade | Ratings checked September 27, 2026 |
| Apple | Apple Inc. | AA+ | Aaa | investment grade | Ratings checked September 27, 2026 |
| AutoZone | AutoZone, Inc. | BBB | Baa1 | investment grade | Ratings checked September 27, 2026 |
| CVS | CVS Health Corporation | BBB | Baa3 | investment grade | Ratings checked September 27, 2026 |
| Dollar General | Dollar General Corporation | BBB | Baa3 | investment grade | Ratings checked September 27, 2026 |
| The Home Depot | The Home Depot, Inc. | A | A2 | investment grade | Ratings checked September 27, 2026 |
| JPMorgan Chase | JPMorgan Chase & Co. | AA- | Aa2 | investment grade | Ratings checked September 27, 2026 |
| Lowe’s | Lowe’s Companies, Inc. | BBB+ | Baa1 | investment grade | Ratings checked September 27, 2026 |
| McDonald’s | McDonald’s Corporation | BBB+ | Baa1 | investment grade | Ratings checked September 27, 2026 |
| O’Reilly Auto Parts | O’Reilly Automotive, Inc. | BBB | Baa1 | investment grade | Ratings checked September 27, 2026 |
| Starbucks | Starbucks Corporation | BBB+ | Baa1 | investment grade | Ratings checked September 27, 2026 |
| Target | Target Corporation | A | A2 | investment grade | Ratings checked September 27, 2026 |
| Verizon | Verizon Communications Inc. | BBB+ | Baa1 | investment grade | Ratings checked September 27, 2026 |
| Walmart | Walmart Inc. | AA | Aa2 | investment grade | Ratings checked September 27, 2026 |
| Taco Bell | Yum! Brands, Inc. (parent company) | BB+ | Ba2 | not investment grade | Ratings checked September 27, 2026 |
Ratings apply to the rated entity named, not to an individual lease. A franchisee, subsidiary or single-purpose lease is investment grade only when the tenant or lease guarantor named in the lease carries the rating, as the Taco Bell row shows. See the full investment grade credit tenant ratings table for every tenant, rated entity and source.
Investment Grade: Frequently Asked Questions
What investors and researchers ask most about investment grade ratings, bonds, and real estate.
What is investment grade?
Investment grade refers to bonds, debt securities, companies, and real estate investments with credit ratings of BBB-/Baa3 or above from major agencies (S&P, Moody’s, Fitch). These carry relatively low default risk. InvestmentGrade.com specializes in NNN real estate: commercial properties occupied by investment grade credit tenants on long-term triple net leases.
What rating is considered investment grade?
BBB- or higher (S&P/Fitch) and Baa3 or higher (Moody’s) are considered investment grade. The scale runs from AAA (Prime, highest) down to BBB-/Baa3 (lowest investment grade). Any rating of BB+/Ba1 or below is non-investment grade, also called speculative grade or high yield.
Is BBB- investment grade?
Yes. BBB- (S&P/Fitch) and Baa3 (Moody’s) are the minimum investment grade ratings. BBB and above are comfortably investment grade. NNN tenants like Starbucks (BBB+), Dollar General (BBB), and CVS (BBB) all carry investment grade status. Walgreens is a useful contrast: it is now privately held and carries no public investment grade rating, which is one reason its NNN cap rates sit above rated pharmacy peers.
What is investment grade real estate?
Investment grade real estate refers to commercial properties leased to tenants with investment grade tenant ratings (BBB-/Baa3 or above). The most common form is a NNN (triple net) lease property: the tenant pays rent plus taxes, insurance, and maintenance, so the landlord’s income rests on the credit of the tenant or guarantor named in the lease. A corporate rating covers a lease only when that rated company is the tenant or guarantor. Examples of rated tenants: McDonald’s, Starbucks, CVS, Dollar General, AutoZone.
What is the difference between investment grade and high yield bonds?
Investment grade bonds (BBB-/Baa3 and above) carry lower default risk and lower yields. High yield bonds, also called junk bonds, are rated BB+/Ba1 or below, carry higher default risk, and offer higher yields to compensate. The investment grade credit spread is the extra yield investment grade bonds pay over Treasury bonds of similar maturity. The gap between high yield and investment grade yields is a separate measure, and both are widely watched indicators of market risk. InvestmentGrade.com uses the same credit framework when evaluating NNN tenants. See investment grade vs. high-yield bonds for the full comparison.