📈

CMBS Loans

Securitized commercial mortgages for larger properties

Commercial Mortgage-Backed Securities (CMBS) loans are commercial mortgages that are pooled together and sold as bonds to investors. They offer competitive rates and non-recourse terms for larger stabilized properties, typically $2M and above.

Find CMBS Lenders →
Loan Range
$2000K – $500M
Typical Rate
5.5% - 8%
Down Payment
25-35%
Term
5-10 years (25-30 year amortization)
Closing Time
45-90 days

When is CMBS the right permanent loan, and when is a bank better?

CMBS works best when the asset is already stable, the hold period is long, and non-recourse matters more than future flexibility. The tradeoff is that servicing, prepayment, and transfer requests can be much more rigid after closing than they are with a relationship bank lender.

Before you commit, read CMBS vs. Bank Loans. It breaks down when a bank term sheet beats CMBS even at a slightly higher rate, especially if you may sell, recapitalize, or change the plan before maturity.

If the property is stable but the senior proceeds still leave a gap, that is when borrowers start comparing extra equity with a mezzanine layer. The coupon is higher, but it can be a cleaner way to reach the leverage target than rewriting the whole permanent execution.

🎯 Best For

  • Large stabilized properties
  • Borrowers wanting non-recourse
  • Properties in major markets
  • Long-term investors

✅ Advantages

  • Non-recourse (no personal guarantee)
  • Competitive rates
  • Higher leverage possible
  • Rate lock at application

⚠️ Considerations

  • Inflexible after closing
  • Expensive prepayment (defeasance/yield maintenance)
  • Cannot modify property or lease without servicer approval
  • Minimum loan size $2M+

What are the requirements for CMBS loans?

  • Stabilized property
  • DSCR ≥ 1.25
  • LTV ≤ 75%
  • Property in acceptable market
  • No major deferred maintenance

Frequently asked questions about cmbs loans

What does non-recourse mean?
Non-recourse means the lender can only go after the property if you default — not your personal assets. CMBS loans are typically non-recourse with standard 'bad boy' carve-outs for fraud, misrepresentation, or environmental issues.
Can I pay off a CMBS loan early?
Yes, but it's expensive. CMBS loans use defeasance or yield maintenance for prepayment, which can cost hundreds of thousands of dollars. Plan to hold through the full term.

Are you a lender offering cmbs loans?

Aloan helps commercial lenders underwrite CMBS deals faster with AI-powered analysis. Reduce turnaround from weeks to minutes.

Exploring loan origination systems? Browse the LOS Directory.

Learn About Aloan →

Find CMBS Lenders for Your Deal

Tell us about your property and we'll match you with lenders offering cmbs loans.

Get Matched - Free →