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 …
4.10.17: Hoteliers Should Use CMBS Loans to Finance PIPs
Competition among hotel franchises is fierce. Franchisors are continually updating the interior and exterior designs for new hotels that become part of their franchise. This updating is often referred to as the latest “prototype” or “brand standard.” Properties that were franchised 10-15 years ago … [Read more...] about 4.10.17: Hoteliers Should Use CMBS Loans to Finance PIPs
3.31.17: Small-Balance CMBS Loans Still Available
ValueXpress is making a market in small-balance CMBS loans as an accommodation to new and existing customers, while most CMBS conduit lenders have minimums of $3 million and even $5 million in some instances. “With a push to close more self-storage and small-balance single-tenant loans such as drug … [Read more...] about 3.31.17: Small-Balance CMBS Loans Still Available
3.28.17: Underlying Co-op Loans Fit in CMBS
Underlying co-op loans tend to be lower leverage and are highly desired in CMBS. The loans are a niche product mainly because not many residential properties are under a cooperative form of ownership outside the New York metropolitan area. A residential cooperative, or co-op, is a legal entity, … [Read more...] about 3.28.17: Underlying Co-op Loans Fit in CMBS
6.28.16: Kroll Reports on John Q. Hammonds’ Bankruptcy Effect on Its CMBS Loans
On June 28, John Q. Hammons Hotels & Resorts announced that the Revocable Trust of John Q. Hammons (JQH Trust) and its related affiliates (the affiliated group) have filed voluntary petitions in order to restructure under Chapter 11 of the U.S. Bankruptcy Code. The affiliated group includes the … [Read more...] about 6.28.16: Kroll Reports on John Q. Hammonds’ Bankruptcy Effect on Its CMBS Loans
5.13.16: How Drugstore Loans Are Viewed in CMBS
A significant amount of drugstore loans are in CMBS, and they are dominated by stores leased to the top three U.S. drugstore chains: Walgreens, CVS and Rite-Aid. All of the drugstores are corporately operated (no franchises). Few, if any, drugstore buildings are owned by the three chains. The real … [Read more...] about 5.13.16: How Drugstore Loans Are Viewed in CMBS
3.4.16: 5-Year Fixed-Rate CMBS Loans (No B-Buyer Approval Needed!)
ValueXpress has started origination of 5-year fixed-rate CMBS conduit loans with a partner. The loans will be held on the partner’s balance sheet until volatility in the CMBS market subsides. The 5-year fixed-rate program features interest rates in the 5.5% area and is available for all typical CMBS … [Read more...] about 3.4.16: 5-Year Fixed-Rate CMBS Loans (No B-Buyer Approval Needed!)
4.28.15: Who Holds the Most Commercial Loans?
The winner is commercial banks, which held $1.67 billion in commercial real estate debt at year-end 2014, according to data from the Federal Reserve Board. The amount of commercial real estate debt held by banks represents 49.5% of the $3.38 billion of total outstanding loans. CMBS is a distant … [Read more...] about 4.28.15: Who Holds the Most Commercial Loans?
4.13.15: Is Credit Quality Eroding for CMBS Conduit Loans
Last March we reported on deteriorating credit quality based on data provided by the rating agency Kroll. At that time, Kroll reported gradual deterioration over the prior year in underwriting standards for the 20 largest loans in Kroll-rated transactions, particularly at the lower end of the range. … [Read more...] about 4.13.15: Is Credit Quality Eroding for CMBS Conduit Loans
4.3.15: Franchise Expirations Becoming a Headache for CMBS Conduit Hotel Loans
The buyers of the most risky CMBS securities, sometime referred to as the “b-buyers,” have laid down some pretty strict guidelines for the remaining minimum term for franchise agreements on hotels to be eligible for CMBS conduit loans. As the buyers of the most risky CMBS securities, the b-buyers … [Read more...] about 4.3.15: Franchise Expirations Becoming a Headache for CMBS Conduit Hotel Loans