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CMBS Loans​

CMBS

CMBS stands for Commercial Mortgage Backed Securities. It is a type of security backed by commercial properties that are “securitized” into a pool and then transferred to a trust. The trust issues a series of bonds that are sold to investors. These loans are almost always issued by Wall Street investment banks like Goldman Sachs.

Sound confusing? Don’t worry, we’ll help you determine whether a CMBS loan is right for your hotel transaction.

Benefits of a CMBS loan for the purchase or refinance of a hotel property:

  • Low Rates and fixed term
  • Non-recourse
  • 30-year amortization
  • CMBS loans are assumable
  • Larger loan amounts
Questions about CMBS Loans?
Speak with a CMBS expert now by calling
866-994-6835.

Commercial Mortgage-Backed Security Loans

If you are a hotel or motel business owner and need financing for your enterprise, we are here to help. Our loans will help you with building, buying, or refinancing a hotel property. With all of the hotel loans to choose from, one of our most popular is the CMBS loan.

What are CMBS Loans?

CMBS loans are fixed-rate, high-leverage, non-recourse financing for commercial real estate investors. These loans are also known as conduit loans, and they have emerged as one of the most popular forms of commercial real estate financing in the last few years.

CMBS stands for Commercial Mortgage-Backed Security. They are pooled with other similar loans, packaged into bonds, and then sold to investors on the secondary market. CMBS loans are known for their lenient credit requirements and have fixed rates of 5, 7, or 10 years. At Hotelloans.com, we are experts in CMBS loans and can offer you some of the best rates on the market.

CMBS are popular because they work so well with many different types of business. In addition to hotel and motel financing, CMBS loans can be put to use for office, retail, apartment, mixed-use, mobile home parks, and more.

A CMBS loan is a type of security backed by commercial properties that are “securitized” into a pool, and then they are transferred to a trust. The trust then issues a series of bonds sold to investors. Such loans are almost always issued by Wall Street investment banks.

Let Our Experts Guide You Through CMBS Loans

There is a lot to know when it comes to a CMBS loan, and our hotel loan specialists have a deep understanding of it all. We do a lot of behind-the-scenes maneuvering for you with our knowledge of prepayment considerations, including defeasance and yield maintenance. In our experience, the commercial real estate market can be very complicated, and in recent years there has become more to know than the average investor has time for.

Partner with someone who is an expert when it comes to loans. We only do hotel loans, and the only people we work with are in the business of hotel financing. It is also important to know that not all CMBS loans are created equal and that terms, spreads, leverage, prepayment penalties, and property valuation considerations all vary with every lender. You need a market lender who has no conflict of interest.

We are strictly about finding you the right loan for your hotel or motel. We have extensive lender relationships, and we secure financing for the acquisition, construction, or repositioning of hotel properties throughout the country. We offer you the best rates and terms.

We function only as a financial intermediary and do not service our own loans because we believe that creates a huge conflict of interest. We keep it simple for you and easy on your wallet. We do not spend hours servicing loans, only leveraging our database of lenders to drive down loan costs, spreads, and prepayment costs for our borrowers.

CMBS General Subordinate Debt Terms

  • Loan Amount: $1,000,000 and up
  • Collateral: Existing cash-flowing commercial property with CMBS or Agency senior debt
  • Term: Coterminous with the senior (1-10)
  • Location: Nationwide
  • Leverage: Up to 75%

CMBS/Conduit senior loans do not usually allow for recorded junior or subordinate debt to sit behind them. This is where creative structures come into play to help owners or operators to raise working capital, replace subordinate debt, or recapture additional capital when selling the underlying collateral via a loan assumption.

Let Us Take Your Hotel Properties to the Next Level

Some intermediaries help their borrowers to source conduit loans for strictly traditional property types, such as office buildings or apartments, but not us. At Hotelloans.com, our loans are all about hospitality properties and finding our clients loans for hotels, motels, and other lodging facilities.

The benefits for CMBS hotel loans are why you should be looking into this innovative financing. They offer:

  • Low rates and fixed term
  • Non-recourse
  • 30-year amortization
  • CMBS loans are assumable
  • Larger loan amounts

Every type of loan available for commercial real estate is different and there is much to know. Many lenders do not fully understand the loans they are offering. Hotel finance can be challenging and when things are not done right, they often lead to delays, and many times, failures. Do not let your money be lost, partner with us, as we know hotel loans like no other.

Our integrity says it all. Our commitment to quality is second to no one. Contact us today to find a CMBS loan that is right for you.

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