CMBS / Conduit Loans

What are people seeing for terms on Conduit loans lately? Looking at a park and for my assumptions I want properly price in debt service.

I would expect a spread over the 10-year treasury of about 320 bps, which puts you at mid to high 5’s.

Despite the 10y spike, Libor hasn’t moved all that much. Just got quoted 4.75 from a major bank on a $2mm 10yr fixed cmbs. I’m going the recourse route which is far more attractive (I don’t have LPs).

Depending on the size of your deal, you would be looking at a spread of 280-325bps over the 10yr treasury, which is currently at 2.55% (all-in rate +/- 5.5%). You can budget a 10yr term, 30yr AM in your model, and possibly 1-3 years of I/O depending on the quality and location.

Also, if the park easily qualifies for a CMBS loan, there may be a path to a Fannie Mae or Freddie Mac loan.

Let me know if you have anymore questions.

Chris San Jose
Yale Capital Advisors
Head of Lending Operations