What are typical bridge to CMBS savings?

Bridge rates 9.00 to 12.00% IO vs. CMBS 5.85 to 7.10% (10 year fixed amortizing). On $20M loan, bridge at 10.5% IO = $2.1M/yr interest. CMBS at 6.5% with 25 yr amort = $1.35M/yr debt service ($1.30M interest + $50K principal year 1). Carry savings $750K/yr + principal reduction begins. Compounded across 10 year CMBS hold = $7.5M+ undiscounted savings + $1.5M+ principal reduction. Refinance pays for itself within 12 to 18 months.

When does the bridge to CMBS refi NOT work?

When stabilization fails: occupancy below 90%, NOI below underwriting pro forma, property condition below C4, sponsor FICO drift, or operating business issues for hotels. CMBS demands 12+ months trailing stabilized NOI before underwriting permanent debt. If stabilization isn't achieved, sponsor either extends bridge (extension fees stack), accepts a wider rate program, or sells the property. Pre clearance with PeerSense before bridge close establishes realistic stabilization milestones + take out path.

Can I get cash out on the CMBS take out?

Yes, CMBS allows up to 75% cash out LTV (vs. 80% on rate and term refi). On $30M post stabilization appraisal: 75% × $30M = $22.5M new CMBS loan. If bridge balance is $18M, cash out proceeds $4.5M (minus closing costs ~3% = ~$4M net to sponsor). Cash out is the equity recycling mechanic that lets institutional sponsors deploy capital across multiple acquisitions. Most non recourse + cash out flexibility is what makes CMBS the preferred take out vs. bank or institutional portfolio.

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Your Deal

Property TypeCurrent Bridge Balance

Bridge Rate (%)

Accrued Bridge Interest + Extension Fees

Post PIP / Post Stabilization Trailing 12 Mo NOI

Post PIP As Completed Appraised Value

CMBS Closing Costs (%)

Multifamily CMBS specs: DSCR 1.25x, LTV 75%, Debt Yield 7.5 to 8.0%, Rate 5.65% (May 2026)

CMBS Take Out

Maximum CMBS Loan (LTV binds)

$24.00M

By DSCR

$25.68M

By LTV

$24.00M

By Debt Yield

$30.00M

Bridge Payoff (balance + accrued)

$18.50M

Closing Costs

$720K

Cash to Sponsor

$4.78M

Annual Carry Savings (Bridge IO → CMBS)

$6K

Bridge $1.80M − CMBS $1.79M = annual savings

About these figures

Rate, spread, leverage and term levels shown here are indicative. They reflect general conditions among direct capital sources as of October 1, 2026 and describe what the market has recently supported, not an outcome available to any specific borrower.

Actual pricing, leverage and terms are determined by the lender through underwriting, once full transaction materials have been reviewed. Nothing shown here is a quote, a commitment, an offer of credit or a guarantee.

PeerSense is a capital advisory firm. We source capital through a curated network of commercial lenders and capital sources. Every credit decision belongs to the lender.

Market conditions move. Figures may change without notice, and a level that cleared last quarter may not clear today. What these terms mean.

See the CMBS Graduation Strategy →

Indicative. Final CMBS sizing depends on full 3 constraint underwriting + conduit pool composition + sponsor profile.

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The Bridge to CMBS Capital Stack Pattern

Bridge to CMBS is the institutional default for $5M+ commercial real estate. Sponsor acquires with 12 to 36 month bridge debt at 9.00 to 12.00% IO during value add or lease up, then refinances into 10 year fixed CMBS conduit at 5.85 to 7.10% non recourse upon stabilization. The carry savings + cash out flexibility + non recourse structure delivers institutional capital efficiency.

3 Constraint Underwriting

CMBS conduits run three tests on every deal: DSCR (1.25 to 1.40x by property type), LTV (65 to 75%), Debt Yield (7.5 to 11.0% by property type). The smallest result is your maximum loan. Multifamily often binds on debt yield at low cap rates. Office often binds on LTV at conservative caps. Hotel binds on debt yield at 10 to 11%. Pre running all three before formal CMBS submission avoids late process restructure.

Have a bridge maturing in the next 12 months?

PeerSense pre clears the 3 constraint underwriting against current conduit pool composition before formal CMBS submission. Pre cleared post stabilization files close 14 to 28 days faster + price 25 to 50 bps tighter.

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