1ST SERVICE SOLUTIONS AGENDA CMBS Assumptions CMBS Maturity - - PowerPoint PPT Presentation

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1ST SERVICE SOLUTIONS AGENDA CMBS Assumptions CMBS Maturity - - PowerPoint PPT Presentation

Mar 10, 2023 267 likes •433 views

Presentation prepared for: Presented by: Ann Hambly, Founder and CEO 1ST SERVICE SOLUTIONS AGENDA CMBS Assumptions CMBS Maturity Market Update Performing Loan Requests WHAT THINGS ARE CONSIDERED WHEN UNDERWRITING AN

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1ST SERVICE SOLUTIONS

Presented by: Ann Hambly, Founder and CEO Presentation prepared for:

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AGENDA

  • CMBS Assumptions

  • CMBS Maturity Market Update

  • Performing Loan Requests
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CMBS ASSUMPTION

WHAT THINGS ARE CONSIDERED WHEN UNDERWRITING AN ASSUMPTION?

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CMBS ASSUMPTIONS

CURRENT PROPOSED

Sponsor Property Manager Guarantor(s) Net Worth & Liquidity

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TIMING

P&S

30-45 Initial Conditions

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CMBS MATURITY MARKET

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2015 CMBS MATURITIES (BY LTV)

  • $86.9 Billion
  • 8,231 Loans
as reported by Morningstar

100+% 90-100% 80-90% Below 80%

Loan to Value

23% = Trouble Paying Off

As of 12/2014

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REALITY AS OF JULY 2015

Average Payoff Rate = 84% / 16% “trouble” paying off

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REASONS FOR BETTER THAN EXPECTED PAYOFF RATES

  • Low interest rates

  • Availability of capital for higher leveraged deals

  • Competition of capital providers
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2016 CMBS MATURITIES (BY LTV)

100+% 80-100% 70-80% 50-70% <50% Not Valued

Loan to Value

$128.07 Billion

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2017 CMBS MATURITIES (BY LTV)

100+% 80-100% 70-80% 50-70% <50% Not Valued

Loan to Value

  • $123.99 Billion
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MATURITY DATE = PAYOFF DATE

Defeasance Extension Open Period Forbearance M a t u r i t y D a t e 90 Days 60 Days

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PROMISSORY NOTE

  • Late Charge: If any part of the Debt (hereinafter defined) is

not actually received by Lender by close of business on the fifth (5th) day after the date on which it was due. Borrower shall pay to Lender an amount (the "Late Charge") equal to the lesser of five percent (5%) of such unpaid portion of the missed payment or the maximum amount permitted by applicable law, to defray the expenses incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss of the use of such delinquent payment. All such Late Charges shall be automatically due and payable without notice or demand and shall be secured by the Security Instrument and the Other Security Documents.

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PERFORMING LOAN REQUESTS

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PERFORMING LOAN REQUEST

  • Types
  • Release of portion of collateral
  • Change of property manager
  • Release of reserves for anything other than specified in loan documents
  • Addition of a gas station – grocery anchored retail

  • REMIC prohibited on performing loans
  • Secondary financing
  • Waive or reduce prepayment penalty
  • Waive defeasance
  • Release a guarantor
  • Uncross loans
  • Release a material portion of the collateral

  • Best to have in the loan documents up front!

  • Servicer’s motivations
  • Best interest of the CMBS Trust
  • Fees
  • Anything in it for us?
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www.1stsss.com

CONTACT US

Ann Hambly

Founder & CEO Phone: (817) 756-7220 Email: ahambly@1stsss.com

Greg Dahms

CMBS Borrower Advocate Phone: (903) 571-7527 Email: gdahms@1stsss.com