Conduit execution

CMBS Loans

Fixed-rate, non-recourse conduit debt for cash-flowing assets, sized on the property's income rather than the sponsor's balance sheet. That includes the $3–15 million small-balance space most CMBS desks pass on.

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At a glance

Indicative program terms.

Loan size	$3,000,000 – $100,000,000+ (small-balance programs from ~$3M)
Leverage	Up to ~75% LTV
Rate	Fixed, typically priced over swaps/Treasuries; 5-, 7-, and 10-year terms (10-year most common)
Amortization	25–30 years; full-term and partial interest-only available
Recourse	Non-recourse with standard carve-outs
Prepayment	Defeasance or yield maintenance
Underwriting	Asset cash-flow driven; flexible on sponsor net worth, credit events, and property 'story'
Eligible assets	Stabilized multifamily, office, retail, industrial, self-storage, hospitality, mixed-use

Indicative of conduit programs generally; structure and pricing vary by pool, tranche appetite, and market conditions at securitization.

Why CMBS earns its place

CMBS is the execution for sponsors who want maximum proceeds and non-recourse on a cash-flowing asset, especially when the sponsor profile doesn't fit bank or agency boxes. Conduit lenders underwrite the property first: strong in-place cash flow can carry a deal that a bank would decline on sponsor liquidity or a past credit event. Cash-out is generally more flexible than agency alternatives.

The small-balance gap we fill

Most CMBS originators chase $20 million-plus loans; the $3–15 million band gets ignored or badly executed. We know which conduit desks actively want small-balance product, how they're pricing it, and how to package a smaller deal so it's treated like an institutional one.

Know the trade-offs going in

CMBS debt is securitized: your loan is serviced by a master servicer, structural flexibility after closing is limited, and prepayment means defeasance or yield maintenance. For a stable, long-hold asset those constraints are usually cheap relative to the pricing and proceeds. But they're real, and we model them against agency, bank, and life company alternatives before you sign anything.

Questions

Common questions.

What makes a deal a good CMBS candidate?

Stabilized occupancy, clean in-place cash flow, and a sponsor who values proceeds and non-recourse over post-closing flexibility. Story deals and lease-up plays generally fit bridge or bank executions better.

Can I get a CMBS loan after a bankruptcy or foreclosure?

Often, yes. Conduit underwriting is asset-driven, and seasoned credit events that would kill a bank deal can be manageable in CMBS with the right desk and packaging. It is deal-specific; we'll give you a straight read.

How does prepayment work on CMBS loans?

Through defeasance (replacing the loan's cash flows with government securities) or yield maintenance, rather than a simple step-down penalty. If you may sell early, we model that cost up front, and may steer you to a different execution.

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