CMBS

Capital Sources

Largo has been working with CMBS or “Conduit” lenders since its inception in the early 90’s. Throughout that period Largo has closed loans with nearly every CMBS originator and has a unique expertise in managing the process.

In addition, conduits can provide long-term interest-only options during the term of the loan. These loans are highly structured and require on-going operating covenants. Conduits primarily quote loans with 10 year terms and 30 year amortizations. The appetite for 5 and 7 year loans can fluctuate.

All income producing properties

5, 7 & 10 year terms/30 year amortization

Non-recourse

Loan-to-value up to 75%, mezzanine financing acceptable

Rate locked at closing

Priced over swap or treasury (greater of)

Full leverage

Interest-only available

On-going debt service operating covenants ~1.25X DSC

Require reserves and cash management (hard, soft and springing lockbox)

Par loans

Defeasance prepayment

Debt yield focused (NOI/loan amount)

Third party servicer, master servicer and special servicer

“Warehouse” lender – sell off loan to various investors and maintain minimal ownership strip

Property vs. borrower focused

Select Transactions

Multi-Family

Syracuse, NY

$2,400,000

Multi-Family

Buffalo, NY

$13,500,000

Multi-Family

Buffalo, NY

$8,500,000

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