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Commercial Real Estate Underwriting and Consulting

CMBS B-Piece Case Study


B-Piece Investor


New Issue CMBS pool. Loans included a crossed portfolio of 20+ properties that were all the same asset classification. Client was seeking a cost effective method to analyze the crossed loan. All other loans secured by single properties. Collateral type included hotel, regional mall, multi-family, office, manufactured housing and retail.


Client’s underwriting model. 21 days.

▪Exceder Scope of Work:

Standard single property loans:

  • Reviewed all property level data, third party reports and Issuer Asset Summary Reports (ASR).
  • Compiled published market studies from various sources.
  • Interviewed local sale and leasing brokers for market color, leasing and sales trends and comparable data.
  • Developed sale rental comparables not included in the appraisal.
  • Completed site inspections including photographing sale and rental comparables.
  • Identified property level issues/questions/data requests and submit to Client and Issuer.
  • Developed an underwritten Net Cash Flow and underwritten Value based on all available property, loan and market data.
  • Reconciled major differences between Exceder’s underwritten cash flow and value to the Issuer/Appraiser’s conclusions.
  • Verified loan terms as outlined in ASRs with Loan Documents as loans closed.
  • Complete Client’s model.
  • Participated in a roll-up call where each loan, property and Exceder’s underwriting was discussed.
  • Crossed Portfolio.
  • Identified the critical properties in the portfolio (highest allocated loan balance; highest Issuer DSCR’s; highest LTV; highest loan PSF; etc)
  • Reviewed all property level data, third party reports and Issuer ASRs for all properties.
  • Compiled published market studies from various sources.
  • Developed sale and rent comparables for the critical properties.
  • Completed site inspection of critical properties.
  • Developed and completed a modified underwriting model with a concluded underwritten NCF and Value for each property in the portfolio based on market data.
  • Roll-up of the individual conclusions to a portfolio level.
  • Modified process saved the client 50% of the cost of the standard underwriting process for the portfolio.

Project was delivered commencing day 14 and 100% complete by day 20.