Understanding CMBS Loans / Conduit Mortgages

For more information about CMBS commercial loans please visit us at https://www.commercialloandirect.com/....

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 in depth information please visit us at https://www.commercialloandirect.com.

You may contact us at 800-687-0797

CLD Capital, Inc.
3399 Peachtree Rd NE
Suite 1750
Atlanta, GA 30326