What happens if I cannot refinance before CMBS maturity?

The loan transfers to a special servicer who charges workout fees (typically 1-2% of loan balance) and controls the resolution process. Options include loan modification, extension, discounted payoff, or foreclosure. Special servicing is an adversarial process that should be avoided.

My property value has declined since original CMBS — what are my options?

If property value has declined, the new senior loan will be smaller than the existing CMBS payoff. The gap can be filled with mezzanine financing, preferred equity, or additional borrower equity. PeerSense structures these capital stacks to ensure the senior and subordinate pieces work together.

Can I defease my CMBS loan before maturity instead of refinancing?

Yes. Defeasance replaces property collateral with Treasury securities matching remaining payments. This allows you to sell or refinance the property free of the CMBS lien. Defeasance costs vary with rate environment but typically run 2-5% of loan balance. It is most cost-effective when rates have risen since origination.

Is a new CMBS loan the best option for my maturing CMBS?

Not always. If the property is well-located and stabilized, a new CMBS conduit loan at 65% LTV provides the lowest fixed rate with non-recourse terms. But if you plan to sell within 3-5 years, a bank loan with flexible prepayment may be better. If the property needs work, a bridge loan provides renovation runway.

Published: March 31, 2026·Last updated: May 16, 2026·By Ed Freeman, Capital Advisor — PeerSense

What is the best financing for any cre at Varies by exit strategy LTV?

CMBS loans maturing within 6-18 months require proactive refinance planning to avoid special servicing transfer. Options include new CMBS conduit financing, bank refinance, bridge loans, and mezzanine supplements. Starting the refinance process 12-18 months before maturity ensures adequate time for underwriting, appraisal, and potential property repositioning.

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder

Prime: 6.75% 10-Yr Treasury: 4.25% Est. CMBS Range: 6.00% - 12.00% (depending on exit path)as of Mar 19, 2026

Any CRE

CMBS Balloon Maturity Refinance Options

CMBS balloon maturing in 6-18 months? Explore refinance options before your loan transfers to special servicing. New CMBS, bridge, mezzanine, and bank alternatives compared.

Minimum 30-35% equity required. CRE owners with CMBS loans maturing in the next 6-18 months.

Discuss Your Any CRE Deal Call (317) 452-6990

KEY TERMS

Deal Parameters at a Glance

LTV Target

Varies by exit strategy

Est. Rate Range

6.00% - 12.00% (depending on exit path)

Term

5-10 years (new CMBS) / 12-36 months (bridge)

Recourse

Non-recourse (CMBS) / Varies (other options)

DSCR

1.25x minimum (CMBS) / Varies

Closing Speed

45-90 days

Min Loan Size

$2M

Loan Products

CMBS, Bridge, Bank, Mezzanine

FIT ASSESSMENT

When Is This the Right Fit?

Start planning 12-18 months before your CMBS balloon maturity date. If the property is performing well with stable or improving NOI, a new CMBS conduit loan at current rates is the cleanest exit. If property value has declined and the loan is now at higher effective LTV, you may need subordinate capital (mezzanine or preferred equity) to right-size the senior debt. If the property needs renovation or repositioning, a bridge loan provides 12-36 months of runway before permanent refinance. The worst outcome is waiting until 3-6 months before maturity, when options narrow and pricing worsens significantly.

Want the full program overview, current rate sheet, and underwriting matrix? See the CMBS Loans guide →

ADVANTAGES

Key Benefits

Avoid special servicing transfer and associated fees (1-2% of loan balance)

Lock in new 10-year fixed rate before maturity at current market spreads

Bridge financing available if property needs repositioning before permanent refi

Mezzanine can fill gap if property value has declined since original CMBS

PeerSense pre-underwrites refinance options 12-18 months before maturity

ALTERNATIVES

Strategic Alternatives

65% LTV Hotel Refinance After PIP

If your maturing CMBS is on a hotel that has completed a PIP

Learn more

Self-Storage CMBS Bridge Exit

If your maturing CMBS is on a self-storage facility

Learn more

Mixed-Use CMBS 65% LTV

If your maturing CMBS is on a mixed-use property

Learn more

Frequently Asked Questions

12-18 months before maturity. This provides adequate time for property assessment, market analysis, potential repositioning, and lender underwriting. Starting at 6 months creates urgency that limits options and weakens negotiating leverage. At 3 months, you may face special servicing transfer.

See Related Rates by Program

PeerSense covers the full commercial capital stack. Rates and structures across our money pages — updated weekly.

SBA 7(a) & 504

5.50–11.75%

Up to $5M acquisition / real estate / equipment, 10% down

See current rates

Bridge Loans

9.00–14.00%

12–36 mo transitional, SOFR + 470-970 bps, 65-75% LTV

See current rates

DSCR Investor

5.95–8.50%

30-yr fixed rental, qualifies on property cash flow

See current rates

Equipment Financing

5.50–12.00%

Loan, lease, SBA 504, vendor, captive — Section 179 eligible

See current rates

Hotel Financing

5.85–11.75%

CMBS + SBA 504 + bridge + PIP across all flags

See current rates

Mezzanine Debt

11.00–18.00%

Subordinate to senior, $1M–$50M, capital stack fill

See current rates

Private Credit

7.80–18.00%

Non-bank flexibility, unitranche, recap, transitional

See current rates

Invoice Factoring + ABL

0.5–3.5% / 30d

B2B receivables, trucking / staffing / construction / govt

See current rates

No-Doc CRE

7.50–11.50%

Limited-doc commercial, asset-based underwriting

See current rates

Connect with PeerSense — Direct Capital Advisory

PeerSense pre-underwrites every deal before presenting it to our institutional capital sources. With 500+ lender relationships and live market rate intelligence, we match your any cre deal with the right capital source — right now.

Scan Your Deal (30 sec)Tell Us About Your Deal Call (317) 452-6990

No upfront retainer · Fee at closing only · Complimentary initial consultation

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated March 2026.

Disclaimer: The information on this page is provided for educational purposes only and does not constitute financial, legal, or investment advice. Rates, terms, and availability are subject to change based on market conditions, property characteristics, and borrower qualifications. The rate ranges cited reflect approximate market pricing as of March 2026 and may not reflect current conditions at the time of reading. PeerSense is a capital advisory firm, not a lender. We do not originate, fund, or service loans. All financing is provided by third-party lenders subject to their own underwriting criteria and approval processes. Borrowers should consult with qualified financial and legal professionals before making any financing decisions.