When to consider CMBS
CMBS can be an option for stabilized income-producing properties. Compare it with portfolio lenders based on the property, loan amount, cash flow and ownership plan.
Understand the loan after closing
The loan is generally serviced under a securitization structure. Consent requests, cash management, reporting and modifications can operate differently from a relationship bank loan. Review those provisions before signing.
Prepayment deserves early attention
Defeasance, yield maintenance, lockout periods and open periods affect flexibility. The appropriate comparison uses your expected exit date and the actual proposed documents.
What affects proceeds
Lender underwriting of income, expenses, tenant rollover and property risks determines cash flow available to support debt. Reserves and cash management requirements can also affect the borrower’s usable proceeds.
What to send us
Rent roll, operating statements, lease expirations, property condition information, current debt and your plans for ownership and any future sale.
How we arrange financing · Compare term sheets · Documents lenders request
Read the operating provisions before choosing the coupon
A property may have enough income to support the requested loan while also facing a major lease expiration during the term. Reserve requirements, cash-management triggers and conditions for releasing funds can change how much operating flexibility the owner actually has.
We compare those provisions with the expected leasing and ownership plan, alongside the quoted rate and proceeds. The goal is to understand the loan the owner will manage after closing, including how consent requests and an eventual sale or refinance would be handled.