CMBS conduit lending delivers the lowest cost of capital for stabilized commercial properties. At 65% LTV or lower, your deal is "CMBS-ready" — qualifying for the most competitive rates, maximum cash-out potential, and fully non-recourse terms that protect your personal assets.
PeerSense specializes in well-capitalized refinances and acquisitions. Minimum 30–35% equity required. Fully assumable loans available.
A 65% LTV CMBS loan requires stabilized occupancy (85%+), a minimum 1.25x DSCR, experienced sponsorship with net worth of at least 25% of the loan amount, and 5% liquidity. At this leverage, CMBS conduits offer non-recourse, fixed-rate, 10-year terms with the lowest available spreads in commercial real estate. Loans are fully assumable.
Written by Ed Freeman, Capital Advisory — PeerSense. Updated March 2026.
Commercial Mortgage-Backed Securities (CMBS) loans are commercial real estate loans originated by conduit lenders, pooled together, and sold to investors as bonds. For borrowers, CMBS offers non-recourse, fixed-rate financing on stabilized commercial properties at competitive spreads — often the most efficient permanent capital available for institutional-quality assets.
CMBS loans are typically non-recourse, meaning the borrower's personal assets are not at risk beyond standard "bad boy" carve-outs. The property is the primary collateral.
Lock in 5, 7, or 10-year fixed rates with predictable debt service. CMBS spreads are typically tighter than balance sheet lenders on stabilized assets.
CMBS conduits lend on deals from $5M to $500M+ across all major property types. Portfolio and single-asset executions are both available.
From stabilized acquisitions to bridge-to-conduit takeouts, PeerSense matches your deal with the right conduit execution.
Acquiring a performing commercial property with in-place cash flow. CMBS conduits compete aggressively on stabilized assets with strong DSCR and occupancy.
Consolidate or refinance multiple commercial properties through a single CMBS execution. Ideal for borrowers looking to optimize their capital stack across a portfolio.
Refinance an existing commercial mortgage at maturity or to capture improved property performance. CMBS offers competitive long-term fixed rates on stabilized assets.
Transitioning from bridge or construction financing into permanent CMBS debt. PeerSense structures the bridge with the conduit takeout in mind from day one.
Extract equity from stabilized commercial assets while locking in long-term fixed-rate financing. CMBS lenders will underwrite to current property performance.
Properties nearing stabilization that need permanent financing lined up. We work with conduits early to ensure a smooth transition from value-add to permanent capital.
CMBS conduit loans are structured for stabilized commercial properties with predictable cash flow. Here is what to expect:
Single-asset and portfolio executions across all major commercial property types
Sweet spot for conduit pricing. Higher leverage available on strong assets with experienced sponsors
Well-capitalized borrowers with 25–40% equity receive the most competitive conduit terms
Fixed-rate terms with 25–30 year amortization schedules. Interest-only periods available
Conduit CMBS fixed rates. 6.25% is best case for experienced sponsors at 60% LTV on stabilized trophy assets. Most conduit deals price in the 7-9% range depending on property type, occupancy, LTV, and sponsor track record
Standard non-recourse with customary "bad boy" carve-out guarantees
CMBS loans use defeasance (replacing property collateral with Treasury bonds) for early exits. In high-rate environments, negative defeasance can actually benefit borrowers financially
CMBS loans are fully assumable — buyers can take over your low-rate loan at sale, which is a major selling point in high-rate environments and can increase your property value
Because CMBS loans are securitized into bonds, they cannot simply be paid off early — bondholders expect a set interest stream. Defeasance is the process of replacing the real estate collateral with U.S. Treasury bonds that replicate the remaining payment schedule, freeing the property for sale or refinance before maturity.
In high-rate environments (2024–2026), negative defeasance can turn a penalty into a profit — the cost of purchasing the required Treasury bonds may be lower than the loan's principal balance. The process requires a successor borrower entity and specialized counsel, but for well-capitalized sponsors, it is a proven path to early exit. PeerSense structures every conduit execution with your hold period and exit strategy in mind.
CMBS delivers the lowest cost of capital for stabilized commercial real estate. But if your deal isn't CMBS-ready today, PeerSense has 500+ capital sources to get you there. The choice between conduit and bridge financing depends on your asset's current position — not where it's going.
| Feature | CMBS / Conduit | Bridge Loan |
|---|---|---|
| Best For | Stabilized assets with predictable cash flow | Transitional, value-add, or distressed assets |
| Rate Type | Fixed rate (5, 7, or 10 year) | Floating rate (SOFR + spread) |
| Rate Range | 6.25%–9% (conduit fixed) | 8%–15% (floating, all-in) |
| Term | 5–10 years with 25–30yr amortization | 12–36 months, interest-only |
| LTV | 60–75% (most competitive at 60–65%) | 65–80% (up to 85% with mezz) |
| Recourse | Non-recourse (bad boy carve-outs only) | Often recourse or partial recourse |
| Prepayment | Defeasance or yield maintenance (costly) | Flexible — often open after 6–12 months |
| Closing Speed | 45–90 days | 14–30 days |
| Borrower Requirements | Net worth ≥ 25% of loan, liquidity ≥ 5%, CRE track record | Varies widely — asset-focused underwriting |
| Exit Strategy | Hold through maturity (defeasance to exit early) | Refinance into permanent debt or sell |
CMBS conduit loans are designed for stabilized commercial properties generating predictable cash flow. If your property has strong occupancy (typically 85%+ for conduit execution), established tenants with remaining lease term, and you plan to hold for 5–10 years, conduit financing delivers the lowest cost of capital available for commercial real estate outside of agency multifamily.
The non-recourse structure is particularly valuable for borrowers with significant personal wealth who want to limit their exposure to individual assets. Unlike bank loans where your entire balance sheet is at risk, CMBS limits your liability to the property itself (plus standard bad boy carve-outs for fraud, misrepresentation, and voluntary bankruptcy).
The tradeoff is flexibility. Once a CMBS loan is securitized and sold to bondholders, the servicer has limited ability to modify terms. Prepayment is expensive (defeasance can cost 5–15% of the outstanding balance depending on the rate environment). Supplemental financing requires servicer approval. And any property-level changes that affect the collateral — even tenant improvements — may need to go through special servicing.
Bridge loans are short-term capital for properties that are not yet stabilized — or for borrowers who need speed that conduit execution cannot provide. If you are acquiring a property that needs renovation, repositioning, lease-up, or management turnaround, a bridge loan provides the 12–36 months of runway needed to execute the business plan before transitioning into permanent financing.
Bridge rates are significantly higher than conduit rates — typically 8% to 15% all-in depending on the deal, the borrower, and the lender. But bridge loans offer something CMBS cannot: flexibility. Most bridge loans are open for prepayment after a short lockout period (6–12 months), meaning you can refinance into cheaper permanent debt the moment the property stabilizes. The interest-only payment structure also preserves cash flow during the value-add period when the property may not yet generate enough NOI to support an amortizing payment.
Many of the strongest CMBS deals PeerSense places start as bridge loans. The bridge provides the capital to acquire, renovate, and stabilize. Once the property hits conduit underwriting thresholds — typically 85%+ occupancy, 1.25x+ DSCR, and a clean trailing-twelve operating history — we transition the asset into permanent CMBS financing at a fraction of the bridge rate. This bridge-to-conduit pipeline is one of the most efficient capital structures in commercial real estate.
The most sophisticated borrowers think about bridge and conduit as two phases of the same transaction — not separate financing events. PeerSense structures bridge loans with the conduit takeout in mind from day one. This means:
This approach is how experienced operators consistently achieve below-market permanent financing: they use bridge capital to create value, then lock in long-term CMBS rates on a now-stabilized asset that underwrites significantly better than it did at acquisition.
If you occupy 51%+ of the building, an SBA 504 offers a 25-year fixed rate that CMBS cannot match. Ideal for owner-users in medical, industrial, or retail who want maximum term certainty.
Learn about SBA 504At 65% LTV but with upcoming vacancy or renovation? Bridge first, CMBS in 12 months. Stabilize with flexible short-term capital, then lock in permanent non-recourse rates.
Explore bridge optionsPlanning to sell in 3 years? A conventional bank loan at 65% LTV avoids defeasance penalties entirely. Cheaper to exit than CMBS when your hold period is short.
Discuss your timelineThe single most common question borrowers ask is "what rate can I get?" The honest answer: it depends on who you are, how much you're putting down, and which lender you're talking to. PeerSense regularly sees rate quotes vary by 5–9 percentage points on the exact same property.
After working across hundreds of commercial real estate financing scenarios, the pattern is clear: down payment and borrower experience are the two largest drivers of your interest rate. Everything else — property type, market, occupancy, lease structure — matters, but these two factors determine which tier of lending you qualify for.
A borrower contributing 35–40% equity with a track record of owning and operating similar commercial properties will consistently receive rate quotes 3–5% lower than a borrower putting 20–25% down with no prior CRE experience. That difference on a $10 million loan is $300,000 to $500,000 per year in interest expense. Over a 10-year hold period, the experienced, well-capitalized borrower saves $3 million to $5 million — on the same property.
This is why PeerSense structures deals before submitting to lenders. The right capital stack — the right combination of equity, senior debt, and potentially mezzanine or preferred equity — can move your effective rate by several percentage points. We have seen the same $15 million hotel deal quoted at 6.5% by one conduit and 14% by a bridge lender. Both quotes were accurate for the borrower profile they were underwriting to — the difference was how the deal was structured and presented.
In CMBS lending, your equity contribution is the single strongest signal of deal quality. Conduit lenders pool loans into securities and sell them to bond investors. Those investors price risk — and the less equity in a deal, the higher the risk of loss to the bond pool.
Notice the inflection point at 30%. Below 30% equity, you start leaving conduit territory entirely. Most CMBS conduits want 25% minimum, but the borrowers who receive the best pricing are consistently at 35% or higher. The difference between 25% down and 35% down on a $10M acquisition is $1M more equity — but it can save you $200,000+ per year in interest. Over a 10-year hold, that $1M of additional equity saves $2M+ in financing costs. The math is unambiguous.
Experience is the second variable that moves rates dramatically. CMBS conduits underwrite the borrower as well as the property. A sponsor who has owned and operated similar commercial assets — same property type, same approximate size, in the same or comparable markets — receives materially better terms than a first-time buyer.
What conduits mean by "experience" is specific:
For borrowers who lack experience but have strong equity positions, PeerSense often recommends bringing on a co-sponsor or key principal with the required track record. This can move a deal from bridge pricing (10–14%) into conduit pricing (7–8%) — the co-sponsor addition alone can save hundreds of thousands annually on a $10M+ deal.
PeerSense submits every qualifying deal to multiple capital sources simultaneously — conduit lenders, balance sheet banks, life companies, debt funds, and bridge lenders. The spread we see on identical deals is routinely 5–9 percentage points. This is not because some lenders are overcharging. It is because different capital sources serve different risk profiles.
A CMBS conduit quoting 6.5% is pricing for a stabilized, low-risk, long-term hold by an experienced sponsor with significant equity. A bridge lender quoting 14% on the same property is pricing for a transitional execution with higher leverage, shorter term, and more borrower flexibility. Both are accurate prices for what they are offering.
The advisory value is in determining which capital source is the right fit for your specific situation — and structuring the deal to access the most competitive tier available. A borrower who does not know the landscape may accept a 12% bridge quote without realizing the same deal qualifies for 7.5% conduit execution with a modest restructuring of the equity stack.
This is exactly what PeerSense does. We do not lend — we structure. Our compensation is a referral fee established upfront in a written agreement, paid at closing. No retainers, no consulting fees. The initial consultation and deal assessment are complimentary.
No retainers. Referral fee at closing. Initial consultation is complimentary.
CMBS conduits lend across all major commercial real estate asset classes. Conduit appetite varies by quarter — PeerSense tracks which conduits are actively pricing each property type.
CMBS is not a single lender — it is a market. Navigating it requires knowing who is active, what they are pricing, and how to structure your deal for the best execution.
PeerSense maintains active relationships with CMBS conduits across the market. Instead of approaching one lender, your deal is evaluated against the full landscape of available capital.
Conduit appetite shifts quarterly based on bond market conditions, portfolio concentration, and investor demand. We track which conduits are actively lending on which property types — and at what spreads.
CMBS execution requires precise structuring around defeasance, reserves, lockbox provisions, and SPE requirements. PeerSense ensures your deal is structured to optimize terms before it reaches a conduit.
For transitional assets, we structure bridge financing with the permanent conduit takeout in mind from inception. This eliminates refinance risk and ensures a clean handoff.
Our deal packages meet conduit underwriting standards from the first submission. Complete financials, property-level analysis, and borrower profiles — presented the way conduit desks expect to see them.
PeerSense charges no retainers and no consulting fees. Our compensation is established upfront and paid at closing. The initial consultation is complimentary.
Three steps from initial conversation to term sheet. PeerSense handles the conduit outreach, structuring, and negotiation.
Share property details, financials, borrower profile, and timeline. A brief conversation is typically enough for us to assess conduit fit.
PeerSense identifies which CMBS conduits are actively pricing your property type and deal size. We present your deal to the best-fit conduits simultaneously.
Receive competitive term sheets from conduit lenders. We negotiate on your behalf to optimize spread, structure, and flexibility — then guide you through closing.
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Use short-term bridge capital to stabilize, then exit into permanent CMBS.
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65%+ LTV. Non-recourse. Fixed rate. PeerSense connects you directly with the conduits pricing your property type — no mass submissions, no runaround. One call to see if CMBS fits your deal.
500+ capital sources · No upfront retainer · Referral fee at closing only