5 – 16 – 13
Wall Street is actively expanding their platform and structures to attract a higher production volume. GSP is receiving qualified terms from one CMBS originator quoting five year fixed rate, amortized over 30 years down to a 9% debt yield for commercial, sub-9% for multifamily. The loan will open to prepayment without penalty for the last two years for a 30 basis-point increase in spread. A three year zero-prepayment can be structured for an additional 60 basis point premium. Five year transactions are currently priced at 3.75% before the pre-payment premium add-on.