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CMBS Financing

Conduit, SASB, and CRE CLO structures for stabilized commercial real estate.

The CMBS market provides long-term, non-recourse, fixed-rate financing for stabilized commercial real estate — often at the most competitive rates available for certain asset types and deal sizes. For sponsors who want to lock in fixed rates, maximize proceeds on a stabilized asset, or exit a transitional loan, CMBS conduit financing is a core tool in the capital stack arsenal.

CMBS carries layers of structural complexity that bank debt does not: servicer relationships, reserve waterfall mechanics, cash management lockboxes, and defeasance or yield maintenance prepayment penalties. LTG guides sponsors through these mechanics and identifies the conduit lenders whose operational requirements won't become deal friction after closing — because CMBS servicer experience is as important as the rate.

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Conduit vs. SASB — When Each Makes Sense

Single-asset single-borrower (SASB) CMBS structures are available for larger transactions (typically $50M+) and offer substantially more flexibility on structure, reserve mechanics, and post-closing operations than conduit. For deals below $50M, conduit remains the dominant CMBS structure. CRE CLO vehicles — managed by debt funds — provide floating-rate securitized financing for transitional assets.

LTG accesses all three channels. For each deal, we advise sponsors on whether CMBS is the right execution path, which conduit or SASB structure fits the asset, and how the post-closing mechanics compare to bank or life company alternatives. The right answer depends on asset type, hold period, leverage need, and the sponsor's operational priorities.

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Typical Deal Parameters

Loan Size	$5M (conduit) to $500M+ (SASB)
Leverage	Up to 75% LTV
Rate	Fixed (conduit/SASB); floating (CRE CLO)
Term	5, 7, or 10 years (conduit); flexible (SASB/CLO)
Recourse	Non-recourse with limited carve-outs
Prepayment	Defeasance or yield maintenance; step-down on some programs