Commercial Mortgage-Backed Security Loans
McHenry County Law has experience with all types of commercial financing transactions – ranging from traditional commercial mortgage loans to complex and often misunderstood CMBS loans. We provide attentive, knowledgeable legal counsel and the services of an established, dedicated office that has the proven ability to protect your interest through every phase of a commercial real estate transaction.
CMBS loans are a type of commercial mortgage that is bundled into a group of commercial loans, then secured and sold in the secondary market to institutional investors. Such investors could include insurance companies, banks, credit unions, investment advisors, or mutual funds, just to mention a few.
This secondary market offers a great deal of liquidity to the commercial mortgage market and is extremely large. Mortgage-backed securities are typically broken up into different parts with various levels of risk, return and maturities. Lower risk investors such as pension funds take the least amount of risk while higher risk investors such as hedge funds take a higher level of risk.
Often called “Conduit Loans”, CMBS loans typically provide lower fixed rates than standard commercial real estate loans available at banks. The quality of the property, tenant and tenant bond grade all affect the interest rate, as do property location, management, seasoning and property cash-flow.
Are CMBS Conduit Loans right for you?
A few questions to ask yourself:
- Have you personally guaranteed your existing loan?
- Do you have multiple partners who guarantee your current commercial loan?
- Are you aware that most commercial lenders do not allow for unrestricted cash-out?
If the answer is “yes” to any or all of these questions, then you should consider a CMBS.
For those interested in investing in additional commercial real estate, yet are limited on cash, CMBS conduit loans can provide the cash required to invest in other opportunities and do not include a personal guarantee.
A few questions to ask yourself:
- Have you personally guaranteed your existing loan?
- Do you have multiple partners who guarantee your current commercial loan?
- Are you aware that most commercial lenders do not allow for unrestricted cash-out?
If the answer is “yes” to any or all of these questions, then you should consider a CMBS.
For those interested in investing in additional commercial real estate, yet are limited on cash, CMBS conduit loans can provide the cash required to invest in other opportunities and do not include a personal guarantee.
Trusted Real Estate Legal Advisors
McHenry County Law provides a complete range of real estate legal services to our clients that includes advice, legal options, litigation services and document preparation for both commercial and residential needs.
Anyone involved in a commercial real estate transaction has serious money on the table that represents a substantial level of risk. Working with one firm for all your real estate needs can save you time, expense and worry.
McHenry County Law has deep industry relationships and market expertise. Our comprehensive commercial real estate services cover investors of:
- Apartment, condominium, and cooperative properties
- Industrial Facilities
- Office building
- Mixed-use developments
- Retail Centers
- Industrial Properties
- Warehouses
To learn more about the benefits of commercial mortgage-backed security loans, or to discuss your investment plans, real estate development or transactional needs, we welcome you to contact us today for a no obligation, complimentary discussion.