CMBS non-recourse loan rates look attractive in this market
With two more rate hikes expected this year and possibly three the
next, the 10 year fixed rates offered by the banks are going up.
However, as opposed to the PRIME index, the Treasury and the Swap
indexes have been remaining low which means the 10 year fixed rate
offered of the CMBS non-recourse loans is fairly attractive at this
point. The AVERAGE 10 year fixed rates are expected to be as follows:
For debt yields of about 12: about 4.9%
For debt yields of about 10.5 to 11: about 5% to 5.25%
for debt yields of 13 and higher: about 4.35% to 4.5%
All these rates are subject to full underwriting approvals. The index
used here is assumed to be 2.4%. You may contact me to go over the
financials and to calculate the Debt Yield.
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