11.16.12: Low Rates Spur Surge in CMBS Loan Applications

With CMBS loan rates approaching historic lows, ValueXpress is seeing a surge in new loan applications.  Loan activity is often high as year-end approaches, and in combination with low rates, fourth-quarter loan activity is expected to be extraordinary.

“We started November with 13 loans under application, many of which were signed up in October; subsequently, we added 3 more in the first week of November, for a combined total of about $100 million,” said Michael D. Sneden, Executive Vice President of ValueXpress.  “We closed a portfolio of 3 loans yesterday for $20 million, and we have another 7 loans totaling approximately $40 million scheduled to close before the end of November. And the balance of the loans is expected to close in December.”

The surge in loan applications arises from very attractive loan rates.  Loan rates are trending down; they are currently in the 4.0-4.5% area for 10-year fixed-rate CMBS loans secured by commercial properties and 5.0% for hotel properties.  Fannie Mae loans for multifamily properties are even lower, under 4.0% for a 10-year term.

“The loans I am processing are 80% CMBS conduit loans, 15% Fannie Mae multifamily loans and a few community bank portfolio loans,” noted Jim Brett, Chief Underwriter at ValueXpress. “We are processing a significant amount of CMBS conduit hospitality loans in addition to retail and industrial properties.”

ValueXpress is working overtime to maintain closing schedules while continuing to deliver its typical high level of service to its clients.  The company expects all transactions to be completed within the time frames required by its clients.

This entry was posted in CMBS, CMBS Conduit Loans, Commercial Mortgage-Backed Securities, Commercial Real Estate Loans, Michael D. Sneden, News & Recent Closings and tagged , , , , , , , , , . Bookmark the permalink.

One Response to 11.16.12: Low Rates Spur Surge in CMBS Loan Applications

  1. Pingback: 11.12.12: ValueXpress Teams Up with RBM Financial on Loan Diligence | ValueXpress News

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