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Beaverton, OR, United States, 2005/08/18 - Pacific Security Capital, a commercial loans expert, addresses why Commercial Mortgage Backed Securities (CMBS) loans make sense for commercial loan borrowers - PacificSecurityCapital.com
Pacific Security Capital (“PSC”), a leading commercial real estate investment bank, headquartered in Beaverton, Oregon, explains why Commercial Mortgage Backed Securities (CMBS) loans make sense for commercial real estate borrowers.
Mike Myatt, executive managing director with Pacific Security Capital, provides his insight: “It has been our experience that many commercial borrowers tend to shy away from the CMBS markets due to what amounts to a general lack of understanding of the conduit world.”
Without a doubt, conduit financing provides the best pricing available in the market for permanent loans and also affords the borrower the ability to climb the leverage curve in an aggressive fashion.
There is also a misconception that CMBS financing involves a higher degree of complexity and therefore is more difficult to work through the closing process. Pacific Security Capital closes transactions in the agency, life company and CMBS world, and of the three, Pacific Security Capital believes there is more certainty of execution with less complexity in the conduit financing world than either of the other two arenas.
Myatt adds that “the only real issue that could surface as a complicating factor is dealing with operating issues that run afoul of loan covenants, post securitization, as dealing with the sub-servicer or master-servicer can at times provide some difficulty. However, the key to navigating the CMBS world is in understanding the process going in, so that you can create the proper loan structure and manage your transactional risk.”
About Pacific Security Capital
Pacific Security Capital (pacificsecuritycapital.com) is a leading commercial real estate investment bank providing commercial real estate loans, structured finance, investment sales, development and advisory services. The combination of direct lending, advisory, intermediary, corporate and professional services, syndication and acquisition services consistently allow PSC to rank among the leaders in the industry. PSC is headquartered in Beaverton, Oregon with other offices in major markets in North American and Europe.