ValueXpress is putting the final touches on a fixed-fee CMBS conduit loan program for small-balance CMBS conduit loans with a banking partner. Applications are being accepted now and transactions are expected to close within 60 days. The program caps transaction costs at $25,000 and is available for all eligible CMBS conduit loan asset classes except hotels. The program targets CMBS conduit loans in the $2-$5 million range.
“Those of us with grey hair (or, in my case, no hair) may remember the small-balance, fixed-fee CMBS conduit loan programs sponsored by Credit Suisse and the LaSalle Select program from the pre-2007 era,” recalls Michael D. Sneden, Executive Vice President at ValueXpress. “We did over 100 transactions in the LaSalle program that capped fees at $15,000. It was very cost effective for small-balance borrowers and the streamlined diligence and non-negotiable loan documentation allowed the program to be very borrower-friendly. This helped first-time and less-sophisticated CMBS borrowers greatly.”
“We are very active in the $2-$10 million CMBS conduit loan origination market and the return of a fixed-fee program is welcome news,” commented Gary Unkel, Senior Loan Originator at ValueXpress. “The high cost and complex legal/property diligence has been a deterrent for small-balance borrowers seeking CMBS conduit loans. This new program should be attractive to cost-conscious borrowers and allow us to better compete with community banks that typically have lower transaction costs.”