What are Commercial Mortgage-Backed Securities (CMBS)?

CMBS are fixed-income investment products that are collateralized by mortgages on commercial properties rather than residential real estate. CMBS can provide liquidity to real estate investors and commercial lenders alike. A CMBS Loan, also known as Conduit Loan, can offer less of a pre-payment risk than residential mortgage-backed securities (RMBS), as the term on commercial mortgages is generally fixed. These kind of loans are unique in that they allow an owner to have predictability as to his/her debt service obligations over an extended period of time. At Hart Advisors we help our clients to success through CMBS Loans Assumptions and educate all parties regarding assumption process and expectations.

Who needs a CMBS Loan?

CMBS loans can be used by private and public real estates investors and developers who work with properties such as hospitals, apartments, hotels, warehouses, offices, commercial premises or any other type of space required by a company or business.

How to get a CMBS Loan

We have a team of experts who can advise you on Loan Modifications/Restructuring, CMBS Loan Assumptions, Commercial Loan Financing, Asset Management, Loan Acquisitions and Dispositions and Equity Placement just by filling up our form here. You'll get personal advising so we can discuss your options.

How does Hart Advisors works

We have a 100% success rate thanks to the processes we have built over the years. At Hart we foresee and respond to typical servicer’s requests, anticipate and overcome servicer obstacles, keep all information confidential allowing the facilitation of a faster close and work business to business rather than attorney to attorney reduces legal fees.

What are the requirements for CMBS?

At Hart Advisors we guide our customers through the process and have knowledge of possible required reserves and provide resolutions reviewing all of the loan documents to determine potential obstacles (i.e. cash management, reserves, net worth and liquidity requirement, etc.) Some of the typical Assumption Requirements of buyer are:

  • Net worth of proposed buyer and replacement guarantor(s) should be equal to or greater than loan amount.
  • Acceptable liquidity should be equal to one year of debt service, at a minimum.
  • Experienced with similar property types.
  • Adequate property management experience if not using national third party firm.
  • If non-U.S. Citizen, must have other U.S. owned assets and cash held in the States.

Getting a CMBS loan can be a long process but at Hart Advisors we reduce typical 150 day minimum approval process to 60-90 days, and possibly less. We also anticipate and overcome servicer obstacles to ensure success.

What services do we offer at Hart Advisors?

In addition to our Loan Advisory services, we also offer:

  • Restructure and/or Recaptilization: Resolve over-leveraged loans and/or non-performing loans through a variety of possible solutions (discounted payoff, short sale, AB structure, deed in lieu of foreclosure, etc.)
  • Extension of Maturing Loans (short term or long term): Facilitate the extension or forbearance of the loan to allow for sufficient time to close of refinance without triggering default interest and late fees.

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