Multiple CMBS conduit loan originators have recently announced lower spreads for low leverage transactions on higher balance loan amounts, generally greater than $10 million. A typical announcement we just received from one of our partners:
As an additional programmatic expansion to our lending platform of fixed and floating rate CMBS loans, we are actively originating low leverage (approximately 50% LTV) fixed-rate non-recourse conduit loans on quality real estate (retail, office, multifamily, industrial) in the following interest rate ranges:
5-year fixed rate loans: 3.50%,
7-year fixed rate loans: 4.00%, and
10-year fixed rate loans: 4.50%
As a valued partner, I look forward to providing custom-tailored financing solutions for ValueXpress clients from any of our product offerings including our attractively priced low leverage loan program.
“An additional benefit for ValueXpress clients is since we have completed over $100 million in CMBS conduit loans with this investor, it has agreed to provide this special pricing on low leverage loan as small as $5 million,” said Michael D. Sneden, Executive Vice President at ValueXpress LLC. “Since our average loan size is $7-$8 million, this is an added bonus for our clients.”