The interest rates, proceeds and terms from conduit lenders have become very aggressive and advantageous, creating significant refinancing opportunities. This is also the time to consider defeasance on an existing loan to take advantage of this market. Defeasance is currently not the laborious process it has been in the past, as there are a few excellent firms we recommend that do the procedural heavy lifting.
The debt yields to size a conduit loan have dropped to as low as 8.0% to 8.5% and with a mezz from the senior lender the proceeds could size to as low as 7.0% debt yield.
Interest only options are often available as well as significant structuring for specific issues.
NEBO has identified stand out lenders that we would like to show your deals to as they give phenomenal service and results.