CMBS Loan Forms and Documents
Having the right loan documents and forms is a must if you want to apply for a CMBS loan. These will provide your lender with specific information about you, the borrower, as well as the property itself. Below, you’ll find standard forms/templates available for download, including a PFS (personal financial statement), an SREO (schedule of real estate owned), a rent roll, and a last 3-years operating budget and pro forma, among others.
Since CMBS financing can be used to finance both multifamily and purely commercial properties (i.e. office, retail, industrial, etc.), we’ve included forms for each of these property types below, when appropriate.
Borrower Forms and Templates
Click to Download a PFS (Personal Financial Statement) Template
A PFS, or personal financial statement, is designed to give a lender the ability to estimate the financial strength of the principal borrower or borrowers. It lists a borrower’s assets and liabilities as well as their total net worth. Unlike banks, HUD, and agency lenders, there aren’t strict net worth and liquidity requirements for CMBS, but borrowers will still need to have a reasonable amount of assets (often varying based upon the borrower’s experience and loan’s leverage).
Click to Download an SREO (Schedule of Real Estate Owned) Template
An SREO, or schedule of real estate owned, lists all other real estate investments that a borrower owns, including information such as the estimated value of the property, the current NOI, the current outstanding loan balance, and other important financial information.
Click to Download an Organizational Chart
An “org chart,” or organizational chart, visually depicts how a borrowing entity is structured. In commercial real estate, organizational structures can sometimes be complex, particularly if joint ventures, trusts, or mezzanine debt/preferred equity are involved. The org chart makes it easy for everyone to understand exactly how everything is laid out, reducing confusion for everyone involved.
Property Forms and Templates
An operating statement is perhaps the most important property-related document you will need as a borrower. This is also referred to as a profit and loss (P&L) statement. This document allows one to figure out a property’s net operating income, or NOI, and its DSCR (debt service coverage ratio), as it lays out a property’s income and expenses. For multifamily properties, a specific type of P&L document is required: a trailing 12 month, or “T-12” statement, which shows the property’s income and expenses for the last 12 months.
While a T-12 is a great place to start, it generally isn’t sufficient on its own. It generally needs to be augmented with a last 3-years P&L, which looks back at all income and expenses over the previous 3 years. This document will also include a stabilized budget, which estimates the property’s budget for the next 12 months.
A rent roll is a document that lists every tenant currently paying rent on a property. It includes information such as lease start and end dates, which (if any) tenants are behind on their rent, as well as any rental concessions provided to tenants, if they exist. A rent roll is one of the most effective ways for a lender to calculate the risk that a property poses as collateral for a CMBS loan. A lease expiration schedule is another important document, which often accompanies a rent roll. A lease expiration schedule shows when each lease will expire and what percentage of the property’s total leasable area each lease represents. This is generally only required for commercial properties, and is included below in our commercial property rent roll template.
Finally, a sources and uses (S&U) form is generally required. It lays out each of the sources of capital for a project, as well as each of the uses of capital. In general, these much match exactly.