CMBS debt is still playingsecond fiddle to life companies on retail deals, but in specificdeals CMBS just works better. The unnamed owner of two neighborhoodretail centers has secured two loans totaling $31 million torefinance the properties, which are located in Aliso Viejo andWestlake Village. The borrower secured the funds through a CMBScompany because they had specific issues that made themincompatible with life insurance companies.

"We originally sought to do these deals with a life companybecause they were low leverage, but there were two issues for thelife companies," Sharon Kline, EVP atCBRE, tells GlobeSt.com. "First, the propertieswere shadow-anchored centers, so there was no security. The otherissue was that the borrower wanted 10 years interest only, becauseit was low leverage. I talked to several life companies, and thatwasn't going to work for them." Kline secured the finds on behalfof the borrower along with her colleague, MarinaMassari of CBRE.

When Kline did take the assets to the CMBS market, there was alot of interest. "When we went to the CMBS market, I only went to ahandful of companies, and those were not issues for CMBS," shesays. "CCRE flew out to meet with me and the borrowers, and thatsealed the deal. They also had the best spreads and low interestrates."