CMBS shops are using all their know-how in structuring fixed-rate CMBS conduit loans and applying this to bridge loans to capture attractive short-term investment yields and secure an opportunity to provide a fixed-rate CMBS conduit loan once the construction/renovation/repositioning period is … [Read more...] about 6.4.13: CMBS Lenders Offering Bridge Loans for Construction/Renovation/Repositioning
2.22.13: SBA Develops 10-Tab Submission Tool for 7(a) Loans
As part of its continuing effort to provide excellent customer service, the 7(a) Loan Guaranty Processing Center (LGPC) has developed a 10-Tab Submission tool to streamline the submission of all loan applications processed at the LGPC. Historically, the LGPC has accepted loan application packages … [Read more...] about 2.22.13: SBA Develops 10-Tab Submission Tool for 7(a) Loans
8.7.12: July Payoff Report: Percentage of Loans Paying Off Hits New 12-Month Low
The percentage of loans paying off on their balloon date hit a 12-month low last month, according to the just-released Trepp July 2012 Payoff Report. With only 26.3% of loans reaching their balloon date paid off, the July total was well under the 12-month average of 41.6%. (This number simply sums … [Read more...] about 8.7.12: July Payoff Report: Percentage of Loans Paying Off Hits New 12-Month Low
7.13.12: Trepp: Only 28% of Maturing 2007 CMBS Loans Paid Off in Full
According to Trepp, 2007 marked the year that commercial real estate values and the surrounding euphoria peaked. In the five years since, investors have spent countless nights fretting about the weak underwriting, optimistic revenue forecasts and inflated values tied to these loans. Prevailing … [Read more...] about 7.13.12: Trepp: Only 28% of Maturing 2007 CMBS Loans Paid Off in Full
7.9.12: Apparently Discounted Payoffs Are Okay for CMBS Conduit Loans
A detailed read of the 699-page prospectus for the CMBS issue from Jeffries LoanCore, Goldman Sachs and Citigroup (GSMS 12-GCJ7) that closed in June 2012 revealed some interesting facts regarding refinance loans in which the prior lender was being paid off at less than the full amount due. Pages … [Read more...] about 7.9.12: Apparently Discounted Payoffs Are Okay for CMBS Conduit Loans
6.22.12: Characteristics of Hotel Loans in CMBS 2.0
Jim Brett, senior loan underwriter, head closer, CMBS research analyst at ValueXpress and all-around good guy, recently prepared a study of the 222 hospitality loans that have been included in 35 CMBS issues since 2010. The effort discovered trends that can be utilized to advise our hospitality … [Read more...] about 6.22.12: Characteristics of Hotel Loans in CMBS 2.0
5.14.12: Rates on 5-Year CMBS Conduit Loans Worse Than 10-Year Deals
Rates on 5-year CMBS conduit loans are higher than loans with a 10-year term, and the difference between the two appears to be increasing. Normally in commercial lending, when the 5-year Treasury or libor swap rate is lower than the 10-year Treasury or libor swap rate, loan rates on deals with a … [Read more...] about 5.14.12: Rates on 5-Year CMBS Conduit Loans Worse Than 10-Year Deals
5.7.12: Cash Management and CMBS Conduit Loans…Not Perfect Together: Part II
A recent post of ours outlined the insistence on cash management accounts for nearly all CMBS conduit loans. In summary, cash management accounts are set up for each transaction as a bank account in the name of both the borrower and the lender, but it’s primarily under the borrower’s control. … [Read more...] about 5.7.12: Cash Management and CMBS Conduit Loans…Not Perfect Together: Part II
4.30.12: Cash Management and CMBS Conduit Loans…Not Perfect Together
One of the more burdensome structural features of CMBS 2.0 (post-2010 CMBS conduit loans) has been the insistence of cash management accounts for nearly all CMBS conduit loans. In summary, cash management accounts are set up for each transaction as a bank account in the name of both the borrower and … [Read more...] about 4.30.12: Cash Management and CMBS Conduit Loans…Not Perfect Together
2.7.12: What’s Happening to Defaulted CMBS Loans?
Ann Hambly, founder and co-CEO of 1st Service Solutions, an advisor to commercial loan borrowers, recently outlined the resolution of defaulted CMBS loans since 2007 in an interesting article for Northeast Business Journal. Ann notes from 2007 through mid-2011, a total of $82 billion of CMBS loans … [Read more...] about 2.7.12: What’s Happening to Defaulted CMBS Loans?