CMBS loans are a type of commercial real estate that is secured by a first-position mortgage on a commercial property. These loans are packaged and sold by conduit lenders, commercial banks, investment banks, or syndicates of banks. CMBS loans are a great way for lenders to provide an additional loan product to borrowers while at the same time maintaining their liquidity position. We can offer you the most competitive rates with no up-front fees and reduced financing costs.
For CMBS loans, conduit lenders have reverted back more prudent credit decisions that mitigate risk of default. They’re requiring more detailed borrower and property information and are paying closer attention to any discrepancies in the underwriting process.
The minimum loan amount for CMBS is $2M and there is no maximum loan amount. Max LTV for CMBS runs around 75%. Term Length is usually between 5-10 years while the amortization is also falling between 20-30 years. CMBS loans also allow Commercial Real Estate Investors that cannot usually meet stringent conventional liquidity and net worth guidelines to be able to invest in commercial real estate. CMBS loans can be used for the purchase or refinance for Commercial Real Estate properties. Properties that fall under the CMBS category are—Hotels, Industrial, Office, Multi-family, Medical, Mixed-Use, Retail, and Self-Storage.