ValueXpress is pleased to announce that the minimum loan size for its CMBS conduit program has been reduced to $5 million in the Northeast and South to Virginia. The program provides for 5-year fixed-rate, non-recourse loans secured by anchored shopping centers, urban/suburban office buildings and multi-tenant industrial properties. The Northeast is preferred because the lender may elect to hold the loans in portfolio and is experienced in originating commercial loans in these markets. Properties should be high-quality assets located in primary or secondary markets. “When we rolled out our CMBS program in the beginning of November, I knew the $10-million minimum loan amount was going to exclude a lot of quality properties,” commented Michael Sneden, Executive Vice President of ValueXpress, “but I knew that eventually the minimum loan amount would be reduced. I am just surprised how quickly it happened.” He continued, “Back in 2007 and prior, we were originating conduit loans as small as $1 million, and I look forward to our $5-million program going nationwide, followed by more decreases in the minimum loan balance requirement, allowing even more properties obtain CMBS conduit loans in 2010.” Target borrowers for the program are existing conduit loan borrowers facing maturing loans and new borrowers seeking attractive non-recourse financing.
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