Welcome to the EN Capital newsletter where we promote different capital sources such as private lenders, family offices and equity funds in addition to general capital markets news. We’re also promoting the new alternative investment conference series called Uncorrelated, EN Capital is a partner in certain Uncorrelated events.

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CMBS Alternative for Attractive Perm Debt

A lot of property owners come to us looking for the best possible terms on a perm loan for a stabilized asset. In many cases the highest possible leverage and maximum cash-out would come from a CMBS loan. However, it’s not uncommon as a broker to hear a string of colorful words followed by a dial-tone when you suggest CMBS.

This is because the application process for a CMBS loan can be tedious and annoying (I once had a borrower have to write memo’s explaining speeding tickets), the rate is locked just before closing so the final rate on the loan can be different than what was originally quoted and prepayment options are either defeasance or yield maintenance - both can be very expensive. Additionally CMBS loans are securitized, sold into the public bond market and serviced by an entity that is not the original lender. Dealing with a special servicer is on the short list of things that guaranteed to make someone lose their mind.

This is why we’re happy to announce that a well established Balance Sheet Lender is offering a competitive alternative to CMBS loans for attractive term debt. While their loans look similar to conduit debt there’s several key differences:

1. Straight forward application process

2. They service all their loans for the full term - no dealing with a special servicer

3. Rate is locked at application - no re-trading right before closing

Lending Criteria:

• Loan Amount: $7M – $75M

• Property Type: Multifamily, Retail, Industrial, Office, Hotel & Self Storage

• LTV: Determined by Debt Coverage

• Pricing: Comparable to CMBS

• Rate Lock: At Application

• Term: 5-10 Years

• Recourse: Non-Recourse

• Geography: Nationwide

• Servicing: In-House

• Prepayment: Flexible around 5,4,3,2,1 or similar

TLDR: CMBS Light. Think of this lender as offering all the benefits of CMBS with less brain damage during the application and better service during the term. (Tastes Great, Less Filling?)

If you’re pursuing a term loan and would like a CMBS alternative, click the button:

• We’ve been building this email list this since 2017 and we’re up to 39,000+ professionals focused on the capital markets for alternative investments such as commercial real estate, the space industry, renewable energy, LATAM deals and utilizing Data-as-an-Asset. So you’re in good company.

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• EN Capital is NOT a broker dealer and does not sell securities

• EN Capital is capital advisory firm / intermediary and NOT a direct capital source. Seriously, every time we sent out an email someone replies and gets pissy when they realize we’re intermediaries and not direct lenders. It’s clear on our website, LinkedIn and emails. We don’t know how to make it more obvious. Don’t be that guy.

Be sure to connect with EN Capital on Linkedin. and visit our website here.

Nathan Whigham
President
CA DRE Broker License: 01793655

EN Capital Contact Info:
www.encapital.com
[email protected]
Direct Line: 310-465-9253