CMBS Loans and Assumability

In most cases, CMBS loans are fully assumable, though a small fee must often be paid. This is a huge advantage for CMBS borrowers, since one of the main disadvantages of CMBS financing is the difficulty of exiting the loan early. So, instead of having to pay a prepayment penalty such as yield maintenance, or having to purchase bonds as part of defeasance strategy, a borrower can simply hand the loan off to someone else, provided they’re willing to take it.