One method to increase CMBS conduit loan originations is to provide bridge loans on assets that are eligible for CMBS conduit loans, but are temporarily underperforming. Typical situations are properties that may be in lease-up, perhaps in conjunction with a rehabilitation program that will make the … [Read more...] about 7.31.17: ValueXpress Actively Pursuing Bridge Loans
Archives for July 2017
7.26.17: Today’s Blue Light Special … a Refund of Your CMBS Good Faith Deposit at Closing
With the potential demise of Kmart the old “Blue Light Special” may become a thing of the past. Kmart became known for its "Blue Light Specials" that occurred at surprise moments when a store worker would light up a mobile police light and offer a discount in a specific department of the store, … [Read more...] about 7.26.17: Today’s Blue Light Special … a Refund of Your CMBS Good Faith Deposit at Closing
7.21.17: “Loan Sizing” Accurately Determines Loan Amounts for CMBS Conduit Loans …
We are in the business of providing loan quotes for CMBS conduit loans. To do this requires loan sizing. Here’s the detailed method we use: CMBS conduit loans are based on the amount of property cash flow. To determine the maximum loan amount that can be offered to a borrower, CMBS loan … [Read more...] about 7.21.17: “Loan Sizing” Accurately Determines Loan Amounts for CMBS Conduit Loans …
7.18.17: … While Using Debt Yield Allows for a Quick Size of a CMBS Conduit Loan
When time does not permit for a detailed loan sizing analysis, a reasonably accurate shortcut method can roughly determine the maximum CMBS conduit loan amount that can be offered to a borrower. The method utilizes a metric called “debt yield,” which is defined as the property net cash flow for the … [Read more...] about 7.18.17: … While Using Debt Yield Allows for a Quick Size of a CMBS Conduit Loan
7.12.17: Document All Tank Removals Please
We recently had to work through an environmental issue on a transaction because of shoddy work by a firm that completed the prior Phase I Environmental Site Assessment (ESA) and lack of documentation on the removal of an underground storage tank that occurred prior to 1992. The story starts with the … [Read more...] about 7.12.17: Document All Tank Removals Please
7.7.17: Pace of CMBS Conduit Loan Originations on Par with a Year Earlier
CMBS conduit loan originations at midyear are on pace with a year earlier, as measured by CMBS securities issuance. CMBS conduit issuance as of June 30, 2017 totaled $38.8 billion compared with $30.7 billion a year earlier. After a slow start to 2017, volume picked up in the second quarter. CMBS … [Read more...] about 7.7.17: Pace of CMBS Conduit Loan Originations on Par with a Year Earlier
7.3.17: Gross Profit Margins Now Transparent for CMBS Issues
Risk-retention rules have made the accurate calculation of gross profit margins for CMBS issues possible. Although the results do not include transaction expenses, the gross profit indications are more accurate than previous methods to “reverse engineer” the pricing results of the public bonds and … [Read more...] about 7.3.17: Gross Profit Margins Now Transparent for CMBS Issues