CMBS

Commercial mortgage-backed securities are marketed through Wall Street investment banks. CMBS lenders make individual loans to investors which are then packaged and sold as securities. In certain market cycles they will provide rates and terms that are competitive with Agency Lenders.

Common Terms

Loan Amount: Above $2MM
Term: 5, 7, and 10 year
Amortization: 30 years
Loan to Value: Up to 80%
Pricing: Based on relative US Treasury. Fixed and variable rates available
Occupancy: 80% plus depending on market
Recourse Requirements: Non-Recourse
DSCR Requirement: 1.25x for standard markets and or 1.20x for top markets

Exit Options:
Assumption: Fully assumable
Pre Payment: Defeasance
Supplemental Debt: Available 12 months from date of closing of first loan
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