Most CMBS conduit loan programs start at $5 million. A few will consider $3 million. But ValueXpress can provide CMBS conduit loans as low as $1.5 million. A few examples of recently closed small balance CMBS conduit loans can be found here and here. How is ValueXpress able to provide small balance CMBS conduit loans when other cannot?
The primary reasons for a lack of CMBS conduit lender interest in small balance CMBS conduit loans are transaction costs and loan profitability. Since the rating agencies require a full-narrative appraisal completed by an MAI certified appraiser, a Property Condition Assessment (PCA) and an Environmental Site Assessment (ESA) for every CMBS conduit loan, these costs can be 1% or more of the loan amount on a small balance transaction, which is excessive. ValueXpress has mitigated this concern through its “fixed-fee” CMBS conduit loan program. This program fixes the appraisal, PCA, ESA and lender legal charges (which can be high cost as well) at $25,000. For details on the program, click here.
The “fixed-program” has made small balance CMBS loans economical for borrowers. For a free, no obligation CMBS conduit loan quote for the fixed fee program, contact Mike Sneden, Dennis Suh or Gary Unkel.