CMBS Loans for Commercial Properties
A CMBS loan, also known as a conduit loan, is a type of commercial real estate loan that is secured by a first position mortgage on a commercial property. Commercial banks, investment banks, and conduit lenders usually offer CMBS loans to CRE investors looking for higher leverage and lower fixed interest rates.
CMBS loans are held in a separate trust serving as collateral for a mortgage-backed security. These loans are non-recourse, have a fixed interest rate amortized over 25-30 years, and are offered to income producing properties. CMBS loan amounts are from $2,000,000 and up with leverage up to 75%.
General CMBS Loan Terms
CMBS Loan Pros
Competitive rates for long-term financing
Flexible loan sizes
Cash-out refinancing options available