Commercial Mortgage Backed Securities
When it comes to loans which do not fit inside the “agency box,” or which necessitate a speedier closing process with less red tape and additional emphasis on property revenue than the borrower or even the curb-appeal of the multifamily venture, CMBS financing is the ideal match. Rates are aggressive, leverage is sensible, and the procedure is significantly more earnings focused. CMBS loans are readily available for many commercial properties including office buildings, retail centers, apartment buildings, industrial properties, and so much more.
Call us today toll-free at (833) APT-LEND to consult with a multifamily CMBS loan expert, or complete this form to arrange for a complimentary assessment.
Sample CMBS Terms For Apartment and Commercial Property Loans
Size: $3 million and up
Term: 5, 7, and 10 year fixed
Interest Rates: 4.90% (on the 10 year)
Starting at 200bps over relative treasury
Amortization: 30 years
Maximum LTV: 75%
Minimum DSCR: 1.25
Minimum Debt Yield: 8.7%
Recourse: Non-recourse with standard “bad boy” carve-outs
Reserves: Taxes, insurance, replacement reserve and leasing costs
Prepayment: Defeasance or yield maintenance
- Self Storage
- Manufactured Housing
- Student Housing
- Attractive fixed rates for long term loans.
- Can go up to 75% LTV.
- Wide range of loan size.
- Will consider non-Class “A” assets.
- Provides cash out refinancing.
- Less autonomy in the operation of the property and limited flexibility to deviate from the terms of the loan documents.
- Difficulty in releasing collateral.
- Expensive to exit.
- Reserves required.