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: September 7, 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: 4.78% Est. CMBS Range: 6.00% - 12.00% (depending on exit path)as of Sep 7, 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.

Talk to PeerSense 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

$10 million and up

Loan Products

CMBS, Bridge, Bank, Mezzanine

Indicative only, as of September 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

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. Indicative levels that lenders in our network have been pricing across these programs, as of September 1, 2026.

Originator warehouse

$100M a month

Focus $100 million a month. Will look at $10 million a month. $10 million is not the focus.

See current rates

Invoice Factoring

0.5–3.5% / 30d

B2B invoices from $20 million a month. Advance 80 to 95 percent of face.

See current rates

Bridge Loans

9.00–14.00%

$10 million and up. Cash in about 35 percent. Name the takeout first.

See current rates

Data Center

CRS to 89%

$1 billion to $30 billion plus. Signed or guaranteed hyperscaler lease.

See current rates

Contracted revenue sale

Up to 89%

15 year lease signed or guaranteed by a hyperscaler. Size follows the lease.

See current rates

Hotel Financing

Hotel is search only. Public floor $10 million and up. Cash in about 35 percent.

See current rates

Private Credit

7.80–18.00%

Non-bank flexibility. Public CRE floor $10 million and up.

See current rates

SBA 7(a) & 504

Search path. Not a growth lane on this desk.

See current rates

DSCR Investor

Search path. Public CRE floor $10 million and up.

See current rates

Connect with PeerSense, Direct Capital Advisory

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

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Fee at closing only · Complimentary initial consultation

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated September 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 September 2026 and may not reflect current conditions at the time of reading. PeerSense sources capital through a curated network of commercial lenders and capital sources. 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.