Its a no brainer when it comes to lending on Single Tenant Investment grade Retail. CMBS lenders are eagerly lending up to 75% LTVs. We funded a CMBS loan on a CVS property located in MA. as part of a 1031 exchange for our client at the end of February. The best part was the 159 basis point spread over the 10 year Swap rate, minimal fees and closing in only 18 days.
There are those that prefer not to use CMBS financing, as they believe that the underwriting requirements are to demanding. However, common sense underwriting seems to be playing more of a role in the CMBS market as of late.
CMBS loans have become more available and easier to underwrite in recent months and as rates climb, they become a more competitive choice for commercial financing.