What are typical bridge-to-CMBS savings?

Bridge rates 9.00-12.00% IO vs. CMBS 5.85-7.10% (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 12-18 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 life-co.

Bridge-to-CMBS Payoff Calculator — Free Tool

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 7.5-8.0%, 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

See the CMBS Graduation Strategy →

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

Your Bridge-to-CMBS Plan Result Is Ready

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We'll match your stabilized NOI + asset class to the CMBS conduits in our network and send back indicative spreads + LTV.

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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 12-36 month bridge debt at 9.00-12.00% IO during value-add or lease-up, then refinances into 10-year fixed CMBS conduit at 5.85-7.10% 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 (1.25-1.40x by property type), LTV (65-75%), Debt Yield (7.5-11.0% 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 10-11%. 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 14-28 days faster + price 25-50 bps tighter.

Today's CMBS Rates