CWCapital launches new programs through Capital Markets Group

Michael Berman

Needham, MA CWCapital, a vertically integrated, full-service national lender to the commercial and multifamily real estate industries, today announced the introduction of two new lending programs being offered through its Capital Markets Group. The new loan programs offer non-recourse financing for both fixed and floating rate debt structures.

The fixed-rate program offers highly competitive pricing for five and seven year maturities up to 75% LTV (70% for hotels) with attractive prepayment terms. It will target quality office, retail, industrial, multifamily and full service hotel deals in the $10 million to $35 million size range, with larger loans considered. It also offers a 30-day early rate lock with no Material Adverse Change clause.

The floating-rate program is designed for borrowers with stable cash flowing properties who want non-recourse debt up to 75% LTV (70% for hotels) with more prepayment optionality than available in fixed-rate products. The floating-rate program targets loans for the same property types in the $10 to $35 million range. It offers 3+1+1 maturity schedules with only 12 months of lockout.

With respect to both loan programs, each loan is assumable, and for exceptional quality loans, mezzanine financing may be available through CWCapital.

These programs are available immediately and will position CW very favorably in a market where many conduit lenders have halted lending operations. CW's vertically integrated platform and partnership with the Caisse de depot et placement du Quebec, their AAA-rated parent company, have made these programs possible, as the loans will be on the balance sheet of a Caisse subsidiary.

"In the current market, it's a tremendous advantage to have a AAA-rated parent company," said Michael Berman, president of CWCapital. "The fact that we're able to introduce new products in a challenging environment speaks to the success of our vertical integration strategy. We have the expertise and experience to guide borrowers and investors through choppy times."

Tammy Heyman, senior managing director for CW's Capital Markets Group reiterated that the firm is actively marketing these programs. "We saw a need in the current market for creative and attractive financing solutions with certainty of execution. We worked, with our parent the Caisse, to create an immediate solution in these unprecedented times. We are fortunate to have a business structure that allows us to offer balance sheet lending through our parent, and are pleased to now be offering what we think are two very competitive financing alternatives."

Chip Brown, production director CW's Capital Markets Group further commented on the programs' terms. "Our innovative programs offer the ability to finance higher quality, stable assets at higher leverage levels and with greater prepayment flexibility than many of our competitors. More importantly, these balance sheet products give us tremendous control of delivery, which is really what CWCapital was designed to do."

CW's vertical integration strategy, in which it retains the risk of its loans and control of major servicing decisions, benefits borrowers even more today as borrowers seek certainty and the desire for their lender to be there before and after the loan closing.

In addition to launching these innovative loan products, the firm continues to see tremendous volume in Fannie Mae, Freddie Mac and HUD loan programs and plans to introduce a new approach to their conduit lending program in the coming weeks.