Often a borrower wants a quick answer on whether a hotel is eligible for a CMBS conduit loan without providing much information. A way to make a quick assessment is to look at TripAdvisor reviews. But before that, the first step in making an assessment is to “google” the address and look at the … [Read more...] about 4.11.18: A Quick Test to Determine Hotel Eligibility for a CMBS Conduit Loan
3.16.18: Competition Is Fierce for CMBS Conduit Loans
CMBS conduit lenders are aggressively cutting loan spreads and loosening loan structure to win business amid a shortage of good-quality CMBS conduit loans. For the better part of a year, most CMBS conduit lenders are bidding low-leverage large loans at breakeven spreads in order be able to … [Read more...] about 3.16.18: Competition Is Fierce for CMBS Conduit Loans
2.2.18: IMPORTANT UPDATE: Fixed-Cost Program Available for CMBS Conduit Loans
Unrestricted cash-out and no personal guarantees are compelling features of CMBS conduit loans. To make CMBS conduit loans even more attractive, a “fixed cost” option is now available for loans between $2 million and $10 million. Furthermore, loan structure has been eased, creating a more … [Read more...] about 2.2.18: IMPORTANT UPDATE: Fixed-Cost Program Available for CMBS Conduit Loans
9.12.17: CMBS Conduit Loan Rates Stable as CMBS Spreads Remain Steady
CMBS conduit loan borrowers are finding calm waters as spreads on CMBS securities have been stable at attractive levels for most of 2017 to date. In addition, the 10-year Swap rate, the benchmark index for setting interest rates on CMBS conduit loans, has remained in a relatively narrow range of … [Read more...] about 9.12.17: CMBS Conduit Loan Rates Stable as CMBS Spreads Remain Steady
8.14.17: Which Hotel Brands Are Eligible for CMBS Conduit Loans?
Most borrowers are aware that hotel properties are eligible for CMBS conduit loans. However, some sponsors mistakenly believe that all hotels are eligible for CMBS conduit loans, but that is not true. In general, independent hotels that are not operated under a nationally recognized franchise brand … [Read more...] about 8.14.17: Which Hotel Brands Are Eligible for CMBS Conduit Loans?
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
7.7.17: 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
6.23.17: Don’t Forget: CMBS Conduit Loan Rates Are Listed on Our Website
CMBS conduit loan rates are listed on our website at valuexpress.com every Monday. To access our CMBS conduit loan rate sheet from the ValueXpress home page, click on “Loan Rate Sheet,” which is located at the lower right corner of the home page. On the new page that appears, you will be instructed … [Read more...] about 6.23.17: Don’t Forget: CMBS Conduit Loan Rates Are Listed on Our Website
5.9.17: CMBS Conduit Loan Volume Increasing
More borrowers are securing CMBS conduit loans as we progress in 2017, as evidenced by trends in the issuance of CMBS conduit securities. CMBS conduit issuance of $15.2 billion in the first quarter of 2017 fell short of the $19.2 billion for the same period in 2016. However, volume has picked up, … [Read more...] about 5.9.17: CMBS Conduit Loan Volume Increasing