10.9.13: ValueXpress Enters New Relationship for Small Balance CMBS Loans

ValueXpress recently cemented a relationship with a CMBS lender to originate CMBS loans as small as $2 million. The program features the typical terms of larger CMBS loans and is eligible for all the asset classes covered by larger loans, including multifamily, office, retail, industrial, self-storage and hospitality. In addition, transaction fees are lower than on larger loans, but not quite at the $12,000-$15,000 level that was prevalent in the CMBS conduit loan market prior to the CMBS market collapse in 2008.

“We have been very active in CMBS loans of more than $3 million, but this new lower threshold will allow an additional segment of the market to access CMBS conduit loans,” said Michael D. Sneden, Executive Vice President at ValueXpress. “We had a former partner that allowed CMBS conduit loans to $1 million, but the underwriting standards were tougher than $5-million CMBS conduit loans, so volume was low. This relationship should prove to be much more effective,” said Sneden.

“We are also working with another potential partner on a small-balance securitized loan product that will allow for relaxed prepayment penalties and less structure than CMBS loans, in exchange for a higher interest rate,” said Jim Brett, head of loan underwriting at ValueXpress. “We hope to report more details on this program in the near future.”

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

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