CMBS loan originators resumed issuing Term Sheets for new CMBS conduit loans after Goldman Sachs and Citigroup priced a CMBS offering that received strong investor demand. The success of the Goldman-Citi deal restored confidence that the CMBS market is recovering from the effects of COVID-19.
“We are seeking CMBS conduit loans for properties that have been relatively unaffected by the virus,” said Michael Sneden, Executive Vice President at ValueXpress. “This cohort includes multifamily, manufactured housing communities (MHC), self-storage, industrial, office and drugstores.” Retail remains on pause until tenant rent payment patterns can be established, and hotels loans are not available due to the disruption in travel from the outbreak. Loan amounts start at $2 million. Rates on CMBS conduit loans for the eligible asset classes are in the 4.25%-4.50% area. For current rates, click here.
“As an example, we recently received a $3.2-million approval for a 66-pad manufactured housing community located in Oregon. The community was developed in 1996 as a 54-pad development and was recently expanded to 66 homes,” noted Sneden. The community is 100% occupied with double-wide homes. The expansion added significant value and the new loan will result in over $2 million in cash-out proceeds to the owner. The loan is scheduled to close at the end of June.