CMBS Loans for Mixed-Use Properties

If you’re looking for a CMBS loan for a mixed-use property, you’ve come to the right place. Across the country, mixed-used properties are on the rise, as developers and tenants alike see the benefits of combining working, shopping, and living in one efficient, well-designed space. Mixed-use developments can vary greatly in size and scope, from large apartment buildings with a bevy of stores underneath, to small mixed-use properties with only a few commercial tenants. No matter what kind of mixed-use property you want to finance, CMBS.Loans has the experience and connections to help.

Common Uses for CMBS Mixed-Use Property Loans

When it comes to mixed-use properties, CMBS loans can help individual investors, real estate companies, and entrepreneurs get the financing they need to achieve their goals. In particular, borrowers often use CMBS loans to:

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  • Acquire a mixed-use property: If you want to purchase a mixed-use property, but may not have the greatest credit— or an incredibly high net worth, a CMBS loan could be a great way to do it.

  • Get a cash-out refinance: If you currently have a lot of equity in a mixed-use property, a CMBS loan could be a great way to take some of it out. Fortunately for borrowers, CMBS loans don’t have many limits on taking cash out, so as long as you continue meet the loan’s minimum LTV requirements, you can typically get as much cash as you want.

  • Refinance their loan with a longer term or better rates: If your current mortgage has a higher interest rate than you’d like, or, if you’re about to face an upcoming balloon payment, getting CMBS refinancing can help you reduce your interest rate and/or extend your loan term, helping reduce the financial pressure on your property.

CMBS Loan Terms for Mixed-Use Developments

Standard CMBS loan terms for mixed-use properties usually include:

  • Loan Size: $2 million minimum, no maximum

  • Loan Terms: 5-10 year fixed-rate terms with amortizations of 25-30 years

  • Eligible Properties: High-quality mixed-use properties in desirable locations

  • Leverage: 80% maximum LTV/1.25-1.35x DSCR

  • Pricing: Typically based on LTV and DSCR

  • Assumability: CMBS mixed-use property loans are typically fully assumable, though a fee may apply

  • Prepayment Penalties: Defeasance or yield maintenance

  • Recourse: Typically non-recourse with standard bad-boy carveouts

  • Commercial Space: Most lenders have commercial space limits that vary from 25%-75%, though these are usually negotiable

  • Appraisals: Required, to be paid for by the borrower

  • Rate locks: Available at commitment, 30-day rate locks may also be available with lender approval

  • Occupancy requirements: Typically 85-90%

Get a Free Mixed-Use Property Loan Quote Today

If you’re looking for an mixed-use building or commercial property loan from $2,000,000 and up, simply click the button below for a fast, easy, and free quote from an experienced CMBS loan expert. You can also email us any time at loans@cmbs.loans.