CMBS
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CMBS, or commercial mortgage-backed security, financing involves nonrecourse loans which are pooled into securities, then sold on the secondary market to investors. These types of loans, also known as conduit loans, generally allow for low interest rates and high leverage, and are available for a variety of assets, including most types of industrial real estate.
A CMBS loan is focused far more on the asset and its income potential instead of the borrower. For this reason, lenders are able to consider borrowers with potential credit or legal issues — even a recent bankruptcy. This type of financing typically closes faster and with less administrative hassle.
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