The buyers of the most risky bonds in the CMBS structure (commonly referred to as the b-buyer) have the right to review all the loans in a CMBS pool in which they buy the bonds in the riskiest position. As part of the review, the b-buyer has the opportunity to “kick-out” of the pool or request price … [Read more...] about 9.29.14: Franchise Expirations an Issue for CMBS Conduit Loans
7.1.14: Sizing Cheat Sheet for Non-Recourse Hotel Construction Loans
We recently had a conference call with our non-recourse construction lender who laid out a nifty concept to perform a "rough and dirty" loan sizing for hotel construction loans. ValueXpress will be converting these instructions into a simple model that can be found on our website. As a refresher, … [Read more...] about 7.1.14: Sizing Cheat Sheet for Non-Recourse Hotel Construction Loans
5.21.14: Dicier CMBS Conduit Loans Result in More Subordination
In response to eroding collateral quality, rating agencies recently have been boosting credit-enhancement requirements -- with the result that subordination levels on junior triple-A CMBS have moved closer to the standard 30% threshold for super-senior AAA-rated CMBS. On May 21st, Deutsche Bank and … [Read more...] about 5.21.14: Dicier CMBS Conduit Loans Result in More Subordination
5.12.14: Non-Recourse Construction Loans Are Back!
In another sign of real estate investors looking for opportunities for investment, financial services companies are beginning to offer non-recourse construction/rehabilitation loans for typical CMBS-quality assets. CMBS-quality assets are preferred as the expected exit strategy is a fixed-rate CMBS … [Read more...] about 5.12.14: Non-Recourse Construction Loans Are Back!
AAHOA Alert! 4.28.14: CMBS Conduit Loans Available in Small Markets
ValueXpress can obtain CMBS conduit loans for AAHOA members who own limited and full-service hotels in small markets. “Traditionally, CMBS conduit lenders do not like small markets and will not make hotel loans there,” notes Michael D. Sneden, Executive Vice President at ValueXpress. “But through … [Read more...] about AAHOA Alert! 4.28.14: CMBS Conduit Loans Available in Small Markets
AAHOA Alert! 4.24.14: AAHOA Borrowers Use Cash-Out Proceeds from CMBS Conduit Loans to Grow
Since 2011 when the CMBS conduit loan market resumed, ValueXpress has made approximately $200 million in CMBS conduit loans to AAHOA members who refinanced approximately $140 million of debt. This means that $60 million of equity was returned to borrowers, most of which was reinvested in additional … [Read more...] about AAHOA Alert! 4.24.14: AAHOA Borrowers Use Cash-Out Proceeds from CMBS Conduit Loans to Grow
4.23.14: Who Holds the Most Commercial Loans?
The winner is commercial banks, which held $1.57 billion in commercial real estate debt at year-end 2013, according to data from the Federal Reserve Board. The amount of commercial real estate debt held by banks represents 48.9% of the $3.20 billion of total outstanding loans. CMBS is a distant … [Read more...] about 4.23.14: Who Holds the Most Commercial Loans?
4.9.14: Fixed-Rate SBA 7(a) Loans Becoming More Prevalent
The attractive premium income achieved by selling the guaranteed portion of variable rate SBA 7(a) loans has kept fixed-rate 7(a) loans from becoming a significant portion of overall 7(a) loan origination. SBA lenders have been known to suggest to borrowers that fixed-rate 7(a) loans “don’t exist.” … [Read more...] about 4.9.14: Fixed-Rate SBA 7(a) Loans Becoming More Prevalent
2.13.14: Wells Research Supports Weaker Underwriting Metrics in CMBS Loans
Jim Brett, head of CMBS analytics at ValueXpress, was recently lamenting, “Mike, I feel like the CMBS deals are more aggressive than last year. The underwriting and asset quality just doesn’t feel as good, except for a deal here and there. If I looked at the trailing credit metrics, I wonder what I … [Read more...] about 2.13.14: Wells Research Supports Weaker Underwriting Metrics in CMBS Loans
7.26.13: Small Balance, Higher Leverage CMBS Loans Available
Higher leverage CMBS conduit loans are now available for small balance (greater than $5 million) transactions utilizing a first mortgage and mezzanine loan combination that is seamless to the borrower. Leverage can be up to 75% for hospitality properties and 80% for commercial/multifamily … [Read more...] about 7.26.13: Small Balance, Higher Leverage CMBS Loans Available