Type of CRE owners (CMBS) looking for Bridge Loans?
Hey guys, one of the many jobs at the small CRE company I work at is to sell bridge loans for a lender who retained us to sell for him.

My question is, what types of CRE owners, specifically owners with  CMBS debt, would be looking for bridge financing? What type of value to debt ratio would I consider? Tenant rollover? I mention CMBS because we have many data resources we use related to CMBS. I have a good idea of the type of owner to find but id appreciate some thoughts. Anyone have experience in this area?
[{"id": "dfsllmp", "text": "What type of bridge money are you looking to put out (loan size, term, rate, fees, recourse, etc.)? Depending on your answer you may need to adjust your marketing strategy.\n\nSince you referenced CMBS refinance, I assume you're looking for cash flowing assets that can't be refinanced in the current CMBS market due to any number of reasons including imminent major tenant rollover, leverage constraints, poor occupancy, or all of the above. If you have access to Trepp, you can look for deals that fit the above scenarios and try reaching out to the sponsor to see if they're looking for bridge money to take out the CMBS debt and manage whatever risk is preventing CMBS refinance.   There is a lot of money chasing those deals right now and depending on the source of your capital it may be a waste of time.", "replies": [{"id": "dfsnxtl", "text": "Loan Size: $1mm to $10mm,\nTerm: 1 - 3 years,\nRate: 12% to 15% hybrid,\nFees: 2%,\nNon-Recourse,\nLTV: 75%,\nProperty Type: Retail.\n\nIs it just me or are those really unrealistic numbers??\n\nI use Morningstar CMBS ratings with all of the loan data and it is great. Thats not the problem, the problem is finding someone who actually would accept those terms when it comes to a NON-RECOURSE loan default. And you're right, there is SO much money out there chasing these deals, we have people knocking on our door everyday to get to our clients we are helping with debt restructure/capital placements. I don't know what angle I can take to get an edge in this super competitive market right now with these type of debt structures.", "replies": [{"id": "dfsptnc", "text": "I'll be honest with you here - I work in Commercial Banking, C&amp;I mainly and for the most part rarely deal with CRE (so if I say something stupid forgive me). But from what I hear from our CRE dept (we were looking at an investor real estate deal in Orange County, CA) our bank has really soured on retail in the western US. So I don't know if we're in line with market or what but our head of CRE basically said it's got to be recourse, 10.5%+ debt yield, max 60% LTV. I guess we're only looking at absolutely slam dunk, class A, retail.", "replies": [{"id": "dfsqbx0", "text": "Wow, those are pretty strict parameters, but its completely reasonable. Retail store closures were crazy in 2016 and we'll see more of the same in 2017.", "replies": [{"id": "dfsqr64", "text": "I suspect we will - though I believe we still have appetite for industrial and I think office is a little more selective.", "replies": [{"id": "dfsqti9", "text": "Suburban office is dying too and industrial with low clearing height is struggling but still some demand. High tech, modern industrial is all the rage right now, it makes sense the way tech is transforming everything in CRE. ", "replies": [], "depth": 6}], "depth": 5}, {"id": "dg6y3mv", "text": "Just remembered this after something we got sent from our CEO...Our CEO just basically distributed an article from WSJ about retail. It was strange though because it wasn't an \"official\" corporate email, it was sent to all senior management with the instruction - send to all subordinates. So now it's reached pretty much everyone, not just CRE. The title is \"Retail Landlords are now finding harder to get a loan\". You might want to check it out if you're interested in how retail is viewed in banking now.\n\nThe article isn't that remarkable (other than the 90% decrease in value of a mall) but might be interesting. I'm assuming retail (for us at least) is basically no go for us now. I think it's a slight shame because I think some of the new \"experiential\" retail in Southern California is really quite cool. (Pacific City, Anaheim Packing District, etc.) but I guess those are more flat out restaurant spaces.", "replies": [{"id": "dg8tfli", "text": "Its amazing to see some of these appraisal reductions that these malls are receiving. We had a client with 3 malls valued at $36MM 10 years ago, valued at $13MM today, which is high for 3 malls, today, actually. Another mall in Vermont was worth $100MM+ and now worth about $20MM. I will check out the article, thank you. Luckily, the lender is looking for retail properties to lend on.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "dfsutoe", "text": "Those rates are high for senior loans. I am on the opposite end of the bridge lending spectrum so maybe I just don't see the types of deals that would be willing to pay those rates.\n\nHonestly if I were you I would be looking for a better lender to source deals for. It's not a bad business if you market yourself  widely as a bridge / distress guy and can deliver, but it's not much fun if you never make any money. \n\n\n", "replies": [{"id": "dftqn8w", "text": "Yeah, I prioritized other lenders above him before, but one of my managers got him to pay us to source deals for him. So, I'm kind of obligated, due to said manager, to look for deals for him. It's tough.", "replies": [{"id": "dfu70hm", "text": "I hear you. Is your capital ok with medical MJ distributors or dispensaries as tenants? Most institutional lenders won't touch properties that have any MJ on site and those deals end up with maturity issues. That could be an angle for you if you can get those loans done. I've seen a handful of requests in Vegas where the landlord signed a dispensary without checking with the servicer and then they don't want to / can't get rid of the tenant in time to refinance with traditional capital. \n\nOtherwise I would focus efforts on retail in tertiary markets with substantial vacancy. \n\nGood luck!", "replies": [{"id": "dfu8ekv", "text": "Interesting anglr. Thanks man.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]