Loan Product
CMBS Loans & Life Company Permanent: $5M to $500M+ Long Term Fixed Rate.
Once a property is stabilized, the right permanent loan locks in your lowest cost of capital for years. Outside of agency multifamily, the two main institutional permanent products are CMBS and life company loans. CMBS is non recourse, fixed rate, higher leverage, and works on most property types. Life company debt is the cheapest fixed rate available. Lower leverage. Longest terms. The institutional sweet spot is $10M and up. Placement runs through every major Wall Street CMBS conduit desk and the active US life insurance lender bench.
When It's the Right Tool
- Asset is stabilized with 12+ months of trailing operating history.
- You want to lock in long term fixed rate, non recourse debt.
- You are refinancing out of bridge, construction, or maturing CMBS.
- You want higher leverage than a life company will give (CMBS).
- You want the cheapest fixed rate available and you are okay with lower leverage (life company).
What the Network Covers
- CMBS conduit ($5M to $250M)
- Life company permanent ($5M to $500M+)
- All major asset classes: multifamily, office, retail, industrial, hospitality, mixed use
- 10 year fixed rate non recourse
- Long fixed terms (15 to 25 years) through life cos
- Refinance out of construction or bridge into permanent
Loan Snapshot
- Loan Amounts
- $5M to $500M+ across the network
- Typical Sweet Spot
- $10M+
- LTV / LTC
- Program dependent
- Term
- 10 year fixed standard CMBS; 15 to 25 year fixed life company
- Recourse
- Non recourse with standard carve outs
- Closing Time
- 45 to 90 days typical
- Property Types
- Multifamily, office, retail, industrial, hospitality, mixed use
- Geography
- Nationwide, drawn from the 200 plus active capital source network
- Rates
- Rates depend on the deal. Submit your file or jump on a call and I will give you a real number.
Rates depend on the deal. Submit your file or jump on a call and I'll get you a real number.
CMBS vs. Life Company. How I Pick.
CMBS: higher leverage, non recourse, broad asset class flexibility, with defeasance prepay and rigid servicing. Best when you need maximum proceeds. Life Company: lower leverage, but the lowest fixed rates, the longest terms, and flexible servicing. Best when long term hold and lowest cost of capital matter most.
Frequently Asked Questions
What is a CMBS loan?
A CMBS (Commercial Mortgage Backed Securities) loan is a non-recourse, fixed rate, long term commercial real estate loan that gets pooled with other loans and sold as bonds to investors. Standard terms: 10 year fixed rate, 30 year amortization, non recourse with bad-boy carve outs. Available on most stabilized commercial property types from $5M to $250M+.
What is the difference between CMBS and life insurance company loans?
CMBS offers higher leverage (up to 75% LTV) on a wider asset class set, but with rigid servicing and defeasance prepay. Life insurance company loans give you the lowest fixed rates and longest terms (15 to 25 years) at lower leverage (typically 60 to 65% LTV) with much more flexible servicing. We quote both side by side.
Are CMBS loans non recourse?
Yes. Standard CMBS loans are non recourse to the borrower with carve-outs for fraud, environmental contamination, voluntary bankruptcy filing, and unauthorized property transfers. This is one of the main reasons institutional sponsors choose CMBS over bank debt for stabilized assets.
What property types qualify for CMBS?
CMBS works on stabilized multifamily, office, retail, industrial, hospitality, mixed use, and self storage. Hotels and retail get more conservative pricing. Multifamily borrowers usually go agency before CMBS. Office is selectively done depending on tenant mix and market.
How long does a CMBS loan take to close?
CMBS conduit typically closes in 45 to 90 days from signed application. Life insurance company permanent runs the same timeline. Both require a stabilized asset with 12+ months of trailing operating history.
Ready when you are.
Send me your file or pick up the phone. I answer 7 days a week.