Plan around the servicing structure
Post-closing decisions may require more parties and documentation than a balance-sheet loan.
Stabilized / securitized
CMBS Financing
Permanent financing evaluated around cash flow, servicing requirements and exit costs.
Explore representative terms
01 / Program overview
Where it fits.
A CMBS loan is originated for securitization into commercial mortgage-backed securities. It may fit a stabilized property with a defined hold period. Because servicing and approvals follow the securitized structure, future modifications, cash management and early repayment need careful attention at origination.
Suitable transactions
- Acquire or refinance a cash-flowing commercial asset.
- Compare nonrecourse permanent financing alternatives.
- Finance a longer hold with a clear view of the exit costs.
What we evaluate
- Sustainable income, tenant rollover and lender-adjusted net cash flow.
- Debt yield, debt-service coverage and appraised value.
- Cash-management triggers, reserves and special-servicing provisions.
02 / Market guide
Representative
Market Terms
A starting point for evaluating the structure. Final terms depend on the property, sponsor, business plan and capital provider.
Discuss your scenario| Parameter | Guideline / consideration |
|---|---|
| Loan size | Sized to the property and conduit program. Cash flow, valuation and debt yield determine proceeds. |
| LTV | Subject to property-level underwriting. Coverage and debt yield may constrain proceeds before leverage. |
| LTC | Usually secondary to stabilized value and cash flow. Acquisition cost and cash-out remain part of underwriting. |
| Term / extensions | Commonly 5, 7 or 10 years. Extensions are not assumed. |
| DSCR / debt yield | Set by the conduit lender and property risk. Request both sizing calculations rather than assuming one universal threshold. |
| Pricing / benchmark | Fixed; typically Treasury or swap benchmark plus spread. Confirm rate-lock and securitization conditions. |
| Amortization / interest only | 25–30 years; partial or full interest only may be available. |
| Recourse | Nonrecourse with carve-outs. Review the full guarantee and single-purpose entity requirements. |
| Prepayment | Defeasance or yield maintenance. Confirm lockout and open periods. |
| Reserves / cash management | Asset-specific escrows and cash-trap provisions. Review leasing, capital expenditures, taxes and insurance. |
| Closing timeframe | Established after the initial review. Reports, documentation, approvals and the transaction schedule determine timing; no guaranteed closing period. |
| Eligible properties | Stabilized commercial and multifamily properties. Sector eligibility and lender appetite vary. |
| Geography | Location reviewed with the capital provider. Property location and capital-provider coverage are reviewed early in the process. |
Representative terms are subject to market conditions, underwriting and lender or investor approval. Actual proceeds and structure depend on the transaction.
03 / Structure matters
Look beyond
the headline.
Prepayment is a structural choice
Defeasance and yield maintenance can change the economics of an early sale or refinance.
Start with the property
Let’s discuss the next step.
Share the property type, business plan and timing. We’ll use that context to evaluate the capital strategy.
Discuss CMBS Financing