Single Asset Single Borrower (SASB) CMBS Loans: What You Need to Know

Single Asset Single Borrower (SASB) CMBS Loans: What You Need to Know

SASB CMBS transactions involve the securitization of a single loan, which is typically collateralized by one, very large property. Single Asset Single Borrower transactions are typically based on loans of at least $200 million, and often range up to $800 million to $1 billion+. While most are collateralized by one property, SASB loans can also be collateralized by a group of cross-collateralized/cross-defaulted properties all owned by the same borrower (much like a Fannie Mae Bulk Delivery Loan or Fannie Mae Credit Facility financing, though with much less flexibility).

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CMBS Spreads: What You Need to Know

CMBS Spreads: What You Need to Know

A CMBS spread, also referred to as a CMBS credit spread, is the difference between the interest rate of a CMBS loan and the current U.S. Treasury rate. Right now (as of February 2019), the 10-year U.S. Treasury rate us 2.69%, so, with most CMBS loan rates ranging from 4.30% to 5.00%, spreads are generally between 1.60% and 2.30%. Spreads compensate a lender for their risk, as well as provide for any profit that the lender will make as a result of the CMBS transaction.

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