CMBS

OVERVIEW

Ready Capital’s CMBS lending program offers a fixed-rate mortgage execution strategy for commercial real estate investors seeking competitive pricing with loan structures tailored to the unique characteristics of their properties.

Ready Capital’s nationwide team of CMBS product specialists is committed to providing quick feedback on all loan submissions and focuses on obtaining upfront credit approvals to ensure speed and certainty of execution. Moreover, Ready Capital serves as the B piece investor and Directing Certificate Holder (DCH) for all of its CMBS originations, setting it apart from competing programs and allowing for a wide variety of creative credit solutions.

image
$27,500,000
Refinance
CMBS
R.V. Park/Self Storage
10 Year Term
Multiple locations, TX
image
$11,250,000
Refinance
CMBS
Industrial
10 Year Term
Los Angeles, CA
image
$6,600,000
Refinance
CMBS
Retail
10 Year Term
Metro Detroit, MI
image
$6,000,000
Refinance
CMBS
Industrial
10 Year Term
St. Louis, MO
image
$2,800,000
Acquisition
CMBS
Multi-family
10 Year Term
Jacksonville, FL
CRITERIA

PRODUCT OVERVIEW

  • Loan size from $2MM up to $45MM (may consider larger sizes for select assets and portfolios)
  • Acquisition, refinance, and recapitalization
  • Terms 5, 7 and 10 years
  • Up to 80% LTV
  • Non-recourse with standard carve-outs
  • Yield maintenance or defeasance
  • Minimum Debt Service Coverage for Multifamily: 1.20x
  • Minimum Debt Service Coverage for Commercial: 1.30x
  • Minimum Debt Yield for Multifamily: 7%
  • Minimum Debt Yield for Commercial: 9% to 12%
  • Full term and partial interest-only considered on a case-by-case basis
  • Amortization 25-30 years
  • Origination fee at par
  • Single purpose entity required
  • TI/LC and Capital Expenditure reserves structured on a deal-by-deal basis
  • Springing or in-place lockbox/cash management
Ready Capital Announces Strong Q1 Results for Freddie Mac Business
01/31/2022

Commercial Lender Builds on Outstanding 2020 Results

Ready Capital announced strong results for its Freddie Mac Small Balance Loan (SBL) business during the first quarter, extending into 2021 the increased volume of deals seen by the company in 2020. During the first quarter of 2021, Ready Capital closed 62 Freddie Mac SBL and small multifamily Bridge-to-Agency loans totaling $164 million in funding, with a pipeline of over $225 million. The recent quarter’s result builds on the company’s success during calendar year 2020, during which Ready Capital had closed 192 Freddie Mac SBL and small multifamily Bridge-to-Agency loans totaling $545 million in funding.

“The market demand for the Freddie Mac SBL product continued to be elevated into the first quarter of 2021 with approximately $1.4 billion in permanent and small multifamily bridge financing requests, capping off a strong 2020 despite headwinds from the pandemic,” said Anuj Gupta, President of Commercial Real Estate Lending at Ready Capital. “Furthermore approximately 71% of our production to date meets the criteria for mission-driven, affordability housing, aligning us with the long-term goals of the Agencies.”

In addition to announcing the volume of transactions, Ready Capital also highlighted the geographic diversification of the deals closed by its national lending team. During the first quarter of 2021, the company funded a significant volume of transactions in California, Illinois, Texas, and Colorado and closed additional deals in 10 more states.

 

 

 

 

Premier Transactions

Ready Capital closed $164 million during the first quarter of 2021 and $545 million during 2020 in Freddie Mac SBL and small multifamily Bridge-to-Agency loans. Individual deals ranged in size from $1 million to $7.5 million with terms ranging from 1 years to 20 years. Average LTV for the Freddie Mac SBL loans was approximately 65.

Portfolio name Number of deals in portfolio Sum of balance (millions) Notes
Portfolio 1 12 $40.0 Cash Out Refinance

Partial IO, 7 Year term

Southern California

Portfolio 2 3 $15.5 Purchase

Amortizing, 10 Year term

Chicago and suburbs

Portfolio 3 2 $4.4 Cash Out Refinance

Partial IO, 10 Year term

San Diego area

Portfolio 4 2 $2.4 Purchase

Amortizing, 10 Year term

San Diego area

Portfolio 5 2 $2.5 Purchase and Cash Out Refinance

Amortizing, 10 Year term

Greater Seattle

 

 

Large Balance Deals Balance (millions) Notes
Loan 1 $5.0 Purchase

Amortizing, 10 Year term

Arizona, very small market

Loan 2 $4.2 Purchase

Partial IO, 10 Year term

Dallas area

Loan 3 $3.5 Cash Out Refinance

Amortizing 7 Year term

Portland, Oregon region

SOCIAL MEDIA

Stay ahead in a rapidly changing environment.

Click below and follow us on social media for all the latest updates from Ready Capital, including recent deal transactions and thought leadership in commercial lending.

FOLLOW READY CAPITAL ON SOCIAL MEDIA

linkedin
SUBMIT A REQUEST

Connect with us and request a quote to see what product best fits your needs. A product representative will be in touch with you shortly.