5.11.20: CMBS CONDUIT LOAN ORIGINATIONS RESUME

VXoffice — Tue, 12 May 2020 16:23:15 +0000

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.

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4.23.10: Morgan Stanley to Resume CMBS Lending

admin — Fri, 23 Apr 2010 00:00:00 +0000

According to Commercial Mortgage Alert, Morgan Stanley is getting back in the game. The bank, which was the dominant bookrunner of commercial MBS transactions through much of the 2000s, disbanded its real estate origination group in 2008 after the market crashed. The buzz is that Morgan Stanley has allocated capital for originations, although it’s not known how much. The bank presumably would have to staff up the CMBS operation, which once numbered more than 200 but was cut to a skeleton crew. The return of Morgan Stanley is a further sign that Wall Street players think securitization is poised for a rebound. Morgan Stanley was the leading CMBS underwriter as the market took off over the last decade. It was the top global bookrunner of CMBS transactions in 1999-2007 in all but one year. The company established itself as the leading underwriter for lenders that didn’t have broker-dealer arms, such as insurance companies, and set up two leading CMBS brands for those clients: “IQ” and “TOP.” In addition, Morgan Stanley was itself a leading originator of CMBS loans. In 2007, it contributed $13.8 billion of commercial mortgages to U.S. securitizations, ranking fifth in the industry.

“We purchase a lot of ‘IQ’ and ‘TOP’ CMBS,” commented Michael Sneden. “Morgan Stanley underwrote higher quality, lower leveraged CMBS that recovered quickly when CMBS began to rally in 2009. Having Morgan back in the market is another milestone in the recovery for CMBS originations.”

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5.11.20: CMBS CONDUIT LOAN ORIGINATIONS RESUME

4.23.10: Morgan Stanley to Resume CMBS Lending