M&T Bank : Real Estate Capital Markets
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Real Estate Capital Markets

Debt Placement
At M&T, the Commercial Real Estate Capital Markets Group places commercial mortgage debt with secondary market investor sources. Investor sources who work with M&T include, Insurance Companies, Wall Street conduits and other financial institutions who provide long-term financing for the acquisition, refinance and renovation of income producing commercial properties. Properties are generally completed, existing and stabilized properties.

Eligible Properties

Multifamily, mobile home parks, retail, industrial, office, hotels and elderly housing.

Loan Size

$2 million and higher.

Recourse Liability

No personal recourse required, except for standard carve-outs for fraud, environmental issues, or neglect of the physical property structure.


10 year terms with balloons. Shorter term financing and fully amortizing loans available upon request.


20 to 30 years; based on effective age of the property and the refinance risk estimated at the end of the desired term.

Maximum Loan-to-Value (LTV)

 75% - 80% of MAI appraised value (Conduit)
65% - 75% of MAI appraised value (Life Company)
(Investment grade credit deals at up to 100% LTV)

Minimum Debt Service Coverage

1.20 to 1.25 times
(Investment grade credit deals at 1.01 -1.05x, depending on lease quality)

Interest Rate

Fixed rates quoted as spread over corresponding specified Treasury Bond yield. The spread is a function of the location, quality and income characteristics of the property as well as any credit enhancements. Variable rates available upon request.


Conduits: tax, insurance and replacement reserve escrows for all property types. Office, Industrial and Retail property types also require a tenant improvement/leasing commission reserve based on lease rollover risk. Life Cos: typically waive escrows.


Assumable in the sole discretion of lender after payment of a 1% fee.

Prepayment Premiums

Typically locked out for half of the loan term, with yield maintenance of a minimum of 1% thereafter.

Origination fee

Based on the loan size, typically 1.0% of loan amount.

Transaction Costs

Estimated at $15,000 to pay for MAI appraisal, a Phase 1 Environmental report, and a property condition survey. This estimate does not include the cost of survey and title work, legal fees or other closing expenses.

Whole Loan Purchases and Sales When market conditions warrant it, CRE Capital Markets also coordinates the purchase of CRE whole loans or participations on New York State properties from outside financial institutions. These purchases are typically structured as variable rate, senior positions at attractive yields.To find out more, please send us an email, call M&T's Commercial Service Team at 1-800-724-2240, or contact your M&T Relationship Manager.
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