WASHINGTON, DC - Now that CMBS shops have been active for several quarters, lending trends for this cycle are becoming more structured and aggressive than ever before. That, at least, is the observation of locally-based Cassidy Turley VP John Campanella, who recently helped secure $46.5 million in interest-only financing from a CMBS lender for Georgetown Center in the District and a $172-million bridge financing package for Republic Properties Corp. for 25 Massachusetts Ave. on Capitol Hill.

In particular, the latter deal was impressively structured, Campanella says. “Briefly, it was a recap of existing financing on a property that was 65% leased. We were able to replace the entire capital stack with competitive senior and mezz financing at a fabulous price.”

Campanella is watching CMBS transactions fall along the lines of what he secured for Georgetown Center. “The loan and underwriting is conservative but the ability to structure, such as providing interest-only financing, is far better," he explains. Pricing is also very aggressive, now, for both five-and 10-year loans, with competition often driving price points. Campanella says that was the case with the Georgetown Center transaction, for which a number of CMBS shops competed. “That really drove pricing.”