From Heartland Real Estate Business , July 2012
WHY CMBS REMAINS SO VITAL
Conduit lenders help fill a need balance-sheet lenders often can’t.
By Matt Valley
Although it will take a few more years for the commercial mortgage-backed securities (CMBS) market to fully recover from the effects of a severe recession and lax lending practices that dealt it a major blow, securitized financing remains an important option for borrowers, say industry experts.
One defining trait of CMBS finance is that it covers a broad swath of the market. Conduit lenders not only do deals with major borrowers who own trophy assets in big cities, but they also provide capital to small and medium-sized borrowers who own Class B and C properties in secondary and tertiary markets. Other debt sources are often hesitant to do so.
Read on for quotes from 1st Service Solutions founder and co-CEO Ann Hambly . . .