Single Asset Single Borrower Financing
Highly customizable set of solutions structured around conventional mortgage capital needs for income producing CRE.
Single Asset Single Borrower Financing (SASB)
SASB Overview
Traditional CRE Mortgage
Financing structured as a traditional first mortgage, typically as an interest only instrument, either fixed or floating.
Additional flexibility
Ability to offer a tailored product to fit our client’s needs with option to iterate on structure, term, and other key deal variables.
Allows for an iterative experience and a dynamic ability to assess different points of efficiency within the marketplace.
Size
Typically, $75mm - $500mm with capability to do $1b+
Term
Typically, 3 – 10 years
Asset Types
Stabilized retail, industrial, office, hotel, multifamily, hospitality, self-storage, data centers, student housing and other CRE asset types (case by case)
Geography
Primary and major secondary markets
Security
First mortgage on fee simple interest
Pricing
Competitive to CMBS spreads
Fixed/Floating
Both available
Leverage
Up to 75%
Amortization
Various (typically I/O or 30-year amortization)
Prepayment
Customized per sponsor business plan (including early par call optionality)
Early Rate lock
Available
Rating Agency
Yes
Subordinate Debt
Permitted (mezz debt/equity, preferred equity)
Key U/W Metrics
Stabilized debt yield typically in range of 8-13%*
Loan Servicing
Mesirow' dedicated loan servicing program
Mesirow Risk Retention/Balance Sheet
In many instances, Mesirow will commit its balance sheet and often hold first loss positions. Mesirow may also offer to support additional tranches/classes as well in an effort to deliver execution certainty for the client.
products & contract types
Industrial
Data centers
Office
Retail
Mixed use
Student housing
Multifamily
Self-storage
Other alternative CRE asset types (case by case)
- Distribution and depth of market coverage
- Distributed across multiple segments of the debt capital markets (private placement, commercial mortgage backed securities, commercial mortgage loan)
- Packaging the underlying credit story behind the rent roll
- Ability to provide liquidity / balance sheet access when needed
- Mesirow maintains a servicing role post-closing, providing clients with an ongoing “relationship bank”
How is Mesirow’s SASB different from that of CMBS? Other SASB?
Deal size, collaboration, transparency and post-closing experience are the key distinguishing factors.
Does Mesirow provide liquidity on these undertakings?
Yes, Mesirow is able to provide liquidity both vertically and horizontally. Customarily Mesirow will buy the first loss / risk retention piece but in many instances may participate in other tranches as well.
“Mesirow offers borrower clients a unique approach to SASB financing centered around high touchpoint, transparency and customization”
Andrew Minkus, Senior Managing Director
