CMBS Financing for Multiple Properties

Unlike some types of commercial real estate financing, CMBS loans aren’t limited to single properties. If you or your company owns a portfolio of income generating properties, such as apartment buildings, hotels, industrial buildings, parking garages, or mobile home parks, a CMBS loan could be a great way to get the financing you need. And, since CMBS portfolio loans use multiple properties as collateral, they can often be significantly larger than single-property CMBS loans. For example, in June 2018, J.P. Morgan Chase issued $1 billion of CMBS financing for a portfolio of more than 300 La Quinta hotel properties. And, in July 2018, Deutsche Bank, Goldman Sachs and J.P. Morgan Chase joined forces to issue Greenfield Partners, a private equity real estate investment firm, a $270 million CMBS loan for a portfolio of 69 office properties. In some cases, CMBS loans may even be available to investors who own a large portfolio of rental homes, however, this type of CMBS financing is somewhat rare, as it’s considerably riskier than other types of CMBS lending.