Loan program
CMBS conduit loans
Fixed-rate, typically non-recourse commercial mortgage loans pooled and sold as commercial mortgage-backed securities.
CMBS (conduit) loans are originated to be pooled into a trust and securitized. They are used for stabilized income properties across most asset classes, including office, retail, hospitality, industrial, self-storage and multifamily.
Typical features
- Fixed rate with 5- or 10-year terms common
- Non-recourse, subject to standard "bad-boy" carve-outs
- Underwritten primarily to property cash flow (DSCR and debt yield)
- Prepayment usually by defeasance or yield maintenance
Considerations
After closing, loans are administered by a master servicer and, if in trouble, a special servicer, which makes modifications and assumptions more process-driven than with a balance-sheet lender. Cash-management and reserve requirements are common.
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Educational information only. Not legal, tax, municipal-advisory, investment or lending advice, and not an offer or commitment to lend or to issue bonds. District rules, thresholds and timelines vary by state and municipality; consult bond counsel and qualified advisors. Calculator outputs are illustrative estimates, not quotes or approvals.
Globus Capital Advisors
Considering CMBS conduit loans?
Globus Capital Advisors, a commercial loan broker, works with bank, agency, CMBS, debt-fund, SBA and bond-market lenders and can tell you whether this structure fits your deal.