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CMBS Loans
CMBS Loans - Features:
Eligible Properties:
Multifamily, Office, Warehouse, Industrial, Mixed Use, Retail, Medical, Healthcare, and Self Storage
Minimum Loan Amount:
$2,000,000
Interest Rate:
Competitive Fixed Rates
Loan Term:
5, 7, and 10-year fixed
Amortization:
25-30 year amortization with up to 10 years of interest-only available in select instances
Recourse:
Non-recourse except industry-standard carve-outs
Prepayment:
Depends on the deal but typically Defeasance or Yield Maintenance
CMBS loans (Commercial Mortgage-Backed Securities) offer several benefits. Listed below is a detailed look at these advantages:
- Access to Capital:
- Large Loan Amounts: Provide substantial amounts of capital, which is particularly beneficial for financing large commercial properties or projects.
- Broad Investor Base: Borrowers can tap into a wide pool of capital from institutional and individual investors through the securitization process.
- Non-Recourse Financing:
- Limited Personal Liability: Many are non-recourse, meaning that the borrower’s liability is limited to the property itself. In the event of default, the lender can only seize the property and cannot pursue the borrower’s personal assets.
- Predictable Payments:
- Fixed Interest Rates: CMBS loans often come with fixed interest rates, providing borrowers with predictable and stable monthly payments throughout the loan term.
- Long Loan Terms:
- Extended Amortization: CMBS loans typically have longer terms, ranging from 5 to 10 years. This extended period can help borrowers manage their cash flow and plan for the future.
- Interest-Only Periods:
- Cash Flow Management: Some CMBS loans offer interest-only periods at the beginning of the loan term, allowing borrowers to conserve cash for other uses before beginning amortization.
Whether you’re a novice investor or an experienced property owner, understanding these aspects can help you make informed decisions about financing your commercial real estate ventures.
Explore the diverse range of commercial real estate and small business loan programs available at Groves Capital by clicking, or tapping the loan programs link. Discover what sets Groves Capital apart in the realm of commercial real estate financing, and find out how our unique approach can benefit your business and financial needs.