With the potential demise of Kmart the old “Blue Light Special” may become a thing of the past. Kmart became known for its “Blue Light Specials” that occurred at surprise moments when a store worker would light up a mobile police light and offer a discount in a specific department of the store, while announcing the discounted special over the store’s public address system.
Well, we have the current version of a “Blue Light Special” going on in the CMBS conduit loan world. To increase originations one of our partners is offering an expense credit at closing of $25,000. The way the program works is a borrower will send in the typical deposit of $35,000-$45,000 along with the executed Term Sheet. At closing, the settlement statement will reflect a credit of $25,000 against transaction costs.
The credit will offset the cost of third-party reports and a big chunk of the lender’s legal charges. This is quite a deal, and the promotion applies to all Term Sheets executed by Labor Day.