CMBS Loans Explained: What is a CMBS Loan?
CMBS loans have become an increasingly popular way for commercial real estate developers and investors to get the capital they need to succeed.
A CMBS loan, or commercial mortgage-backed security loan, is a form of financing for a commercial real estate property. It’s also known as a conduit loan, and the lenders that provide these CMBS conduit loans are known as conduit lenders.
What sets CMBS loans apart from traditional commercial mortgage loans is that lenders don’t keep the loans they originate. They’re ultimately sold as CMBS bonds in bundles to investors, a process known as securitization.
Which types of properties are CMBS eligible?
Wondering whether a CMBS loan could be useful for your unique project? Commercial mortgage-backed securities can be used for the full range of commercial real estate projects, including:
- Self-storage facilities
- Industrial property
- Parking facilities
- Mobile home parks
- Hospitals and healthcare properties
How do CMBS Loans Work?
When you enter into a traditional commercial loan, you agree to pay back the original lender at a specified interest rate and period. But in a CMBS loan, your loan is packaged with others like it and bundled into a trust. This trust is known as a real estate mortgage investment conduit (REMIC), and it gets turned into a series of bonds and then sold to real estate investors. This is called securitization.
News / Articles
NASA plans to prove its next Moon landing is real using blockchain - Cointelegraph Read moreMon, 25 Sep 2023 20:57:07 GMT
UK fintech Cygnetise raises £2.5M for blockchain-based signatory management solution - Tech.eu Read moreSun, 24 Sep 2023 23:05:05 GMT
Quantum Blockchain Shares Slip After 1H Report, No News on Court Actions - MarketWatch Read moreTue, 26 Sep 2023 08:25:00 GMT
NASA plans to use blockchain to store data on the moon - Interesting Engineering Read moreSat, 23 Sep 2023 16:39:00 GMT