Commercial Real Estate Loan
$5,000,000 to $100,000,000
CMBS loans, depending on market, property characteristics and client preferences, offer an attractive alternative to agency loan products. With the addition of the CMBS lending platform, City Capital Realty is uniquely positioned in the marketplace to offer a full spectrum of financing options for commercial real estate loans.
A CMBS Loan is a commercial real estate loan that is secured by a first-position mortgage on a commercial property. These loans are packaged and sold by Conduit Lenders, commercial banks, investment banks, or syndicates of banks. A CMBS Loan has a fixed interest rate and is typically amortized over 30 years, with a balloon payment due at the end of the term. Because the loans are not held on the Conduit Lender’s balance sheet, CMBS Loans are a great way for these lenders to provide an additional loan product to Borrowers while at the same time maintaining their liquidity position. Because of the more flexible underwriting guidelines, CMBS Loans also allow CRE investors that cannot usually meet stringent conventional liquidity and net worth guidelines to be able to invest in commercial real estate.
We represent and manage funds for private investors and private pension plans. The funds we manage are invested into the mortgages we originate for our Borrowers. We employ an experienced staff of professionals to process, fund and service our Borrower’s mortgage loans.
We really want to help our Borrowers achieve their intended goals. We are persistent and determined to rise above any and all obstacles in our quest of funding our Borrower’s loan. We are passionate about our business and our borrowers can see it.
We are CMBS Commercial Loan specialist located in Los Angeles, California that is dedicated to providing the best mortgage loan programs to Borrowers. We offer extremely competitive rates and terms while providing prompt and professional service. We are always available to answer any questions or to assist our Borrowers at any time. We think outside of the box and we are always willing to go the extra mile. We focus on solutions not problems.
We represent and manage funds for private investors and private pension plans. The funds we manage are invested into the mortgages we originate for our Borrowers. We employ an experienced staff of professionals to process, fund and service our Borrower’s mortgage loans.
We really want to help our Borrowers achieve their intended goals. We are persistent and determined to rise above any and all obstacles in our quest of funding our Borrower’s loan. We are passionate about our business and our borrowers can see it.
Borrower’s financial resources and experience play important role
CMBS Loan Terms Include:
- $5,000,000 to $100,000,000
- 10 Year Fixed Rate
- Nationwide Financing
- 60 Days Funding
- Term 30/10
- LTV 75%
- DCR 1.25X Min
- None- Recourse
- Yield Maintenance
- First Mortgage
Property Types:
- Hotel
- Industrial
- Medical
- Multifamily
- Mixed-Use
- Retail
- Self-Storage
- Warehouse
Loan Types:
- Conduit Loan (Investment)
- Insurance Financing (Investment)
- Multifamily Financing (Investment)
- Hotel Financing (Investment)
- FHA Financing – Hospitals or Senior Care
CMBS Conduit Commercial Loan Program Guidelines
| Property Types | Stabilized property types including Office, Retail, Industrial, Multi-Family and Hotel. Self-Storage and Mobile Home Parks Will be considered on a case-by-case basis |
|---|---|
| Loan-to-Value | Up to 75% of appraisal value. |
| Loan Size | $5,000,000 to $100,000,000 |
| Loan Term | Up to 10 years |
| DSCR | 1.25x Minimum. |
| Rates | Depends to location & quality of property. |
| Origination Fee | 1.00% of loan amount. |
| Locations | Nationwide funding. |
| Personal Guarantee | Non-recourse subject to standard carveouts. |
| Prepayment | Defeasance or yield maintenance. |
| Assumability | Permitted subject to lender approval and assumption fee. |
| Impounds | Taxes, insurance, tenant improvements, replacement reserves. |
| Borrower Entity | Single purpose entity |
| Reserves | Tax, Insurance and Replacement Reserves required |
| Preliminary Submission | Include the following in your request for a conduit Commercial loan. Property description and location map. Representative color photographs. Current year operating budget. Current rent roll and year-to-date operating statement. Operating history – prior 2 years, if available. Sponsor resume. |
FAQs
Our Most Frequently Asked Questions
Yes, debt service coverage is one of the key factors contributing to whether a commercial loan is approved
Usually, the magical number is 20% minimum equity in the property. This relates to a loan to value that is no higher than 80%. There are some exceptions that apply (two properties can be cross-collateralized).
Usually, residential mortgages take about 45 days to close while the more involved commercial process takes around 60 days from beginning to end.
All lenders will want to see:
- Three years of individual and business tax returns
- Statements that detail improvements or expenses incurred by the property
- A current rent roll of any apartment building
- Personal financial statements for all partners
Most commercial loans do have a “pre-pay penalty.” This penalty is instilled if a loan is paid in full or prior to the outlined terms. Commercial loans carry a prepayment penalty for four of the first five years.
A residential mortgage only applies to residential property (no greater than four units per building). A commercial mortgage is utilized to secure financing for a larger spectrum of properties. A residential loan process is standardized by established guidelines, but the commercial loan varies depending on individual lenders.
A broker can aid you in understanding the transient nature of the mortgage market. The broker’s fee will be more than made up in the insight they can provide in steering you away from mistakes. Since they work with mortgages on a regular basis, they will be able to offer their expertise and better be able to explain the numbers.
Use the time between accepting a lender’s offer and receiving the commitment to your advantage by tackling as many obstacles as possible:
- Once you have accepted the offer, order the title searches.
- Find out the lender’s requirements for the ALTA survey (this process could take up to 4-6 weeks, so do not sleep on the process.
- Make sure you have a long-term sense of what you will do with the property.
All professionals will say to move as many things into the “completed” list from the “to do” list. Some processes are very time consuming and should be immediately addressed.
Suggestions:
- Do not focus on the absolute bottom when choosing an interest rate. Focus on the monthly/annual payment being in your range.
- Stick with one broker. Do not work with multiple brokers.
- Address any issues (tax escrows, lender’s calculation method, timing, etc.) before you make your initial deposit.
- When it is time to refinance, consider using a different lender or at least find out what they can do for you. The nature of the industry is not static, so it is always good practice to see what others have to offer from time to time.
Why Choose City Capital Realty?
Download Forms
