Leverage… Leverage… Leverage… The CMBS Market is Very Active
When looking for leverage and long-term financing options, the CMBS market is still the place to go for non-recourse financing. Conduit lenders are actively lending up to 75% LTV on multifamily, office, retail, industrial, & hospitality assets. Leverage will depend on asset type, with lenders being most aggressive on multifamily and industrial with retail and office not far behind. Hospitality will see the most conservative underwriting with leverage tapping out around 65% LTV. Pricing will be driven by leverage & in-place debt yield with the strongest opportunities being priced in the mid to high 4’s on a ten-year fixed rate with up to a thirty-year amortization.
Lenders will be looking for debt-yields north of 8% on all assets, with the exception of hospitality. Hospitality will require 10% + debt-yields with most deals being funded with debt-yields north of 10.5%.
Arriba Capital’s CMBS Product:
Loan Amount: $3MM - $75MM
LTV: Up to 75%
Term: 10-15 years (fixed)
Amortization: 25-30 years
Rate: 4.5% - 5.5%
Property Types: Multifamily, Office, Retail, Industrial, & Hospitality
Lending Area: Nationwide