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.”

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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