The major drawback of CMBS funds ‘s the challenge of going out the mortgage early. Really, if not all CMBS fund have prepayment penalties, even though specific allow produce fix (using a share based commission to go away the loan), almost every other CMBS fund want defeasance, that requires a borrower purchasing bonds so you’re able to both repay their loan and provide the lending company/investors with a suitable revenue stream to replace they. (more…)
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