CMBS Commercial Loans
Published 12-19-2018

CMBS Commercial Loans

CMBS loans can be used for the purchase or refinance for Commercial Real Estate properties, including Hotels, Industrial, Office, Multi-family, Medical, Mixed-Use, Retail, and Self-Storage

Like all the other loans we offer at CLD, this type of loan is secured by a first-position mortgage on a commercial real estate property and is particularly popular among commercial real estate investors seeking non-recourse loans.

Although conduit lenders have reverted back more prudent credit decisions that mitigate risk of default, CMBS loans have more flexible underwriting guidelines than conventional or agency loans.

This means that Commercial Real Estate Investors that cannot meet the more stringent conventional liquidity and net worth guidelines are still able to invest at attractive terms.

At CLD, the minimum loan amount for a CMBS product is $2M with no maximum loan amount. Max leverage is typically 75% with a minimum debt yield of 7 to 8%. Term lengths typically run between 5-10 years with some exceptions made for longer or shorter terms, while the amortization I usually between 20-30 years unless requested shorter. Loans are always non-recourse except for the standard “bad boy” carve outs and has defeasance or yield maintenance prepayment provisions. Interest-only may also be available on select properties for 1-10 years.

For More information on CMBS Loans please visit our CMBS Loans page.

About the Author

Leanne is a JD/MBA and works as a Managing Director for Commercial Loan Direct, specializing in large balance transactions, portfolio loans, and complex financing structures. When not negotiating the best deals for her clients, you can find Leanne in the yoga studio or snowboarding up in the Rockies.