Opening of Ace Hardwood Store. Loan provided by Commercial Loan Direct.
Written by Leane Eicoff| December 19, 2018
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.
What Clients Say About Us
Fernando and Leanne are amazing. I had many small businesses that need refinancing over the years. I have met many Brokers and there is always a catch. ALWAYS!… Use them! Once you do you will work with them forever
- Nirav Patel
If you searching for a great experience Commercial Loan Direct is the place. Leanne took care of me and honestly had the greatest experience. She handled all of my needs in a smooth and timely manner listened and addressed any concerns I had about the process and was very patient. I can be quite a handful at times and Leanne was so professional and kind hearted. I'd 100% recommend this company. Thank you again.
- Vincent Arias
We were in unfamiliar territory when it came to refinancing. Commercial Loan Direct streamlined the whole process for us. Leann connected us with lenders that were the right fit for us. The money and time we saved was so worth it. I highly recommend them
- Rita Pisarski
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