CMCC manages senior mortgage funds for institutional clients and other long-term investors looking for safe, reliable returns. These funds target first mortgage investments on revenue- producing properties in major urban centres. Typical real estate being financed includes:
- Retail plazas
- Urban storefront (often with apartments above)
- Nursing homes
- Retirement homes
- Industrial building
- Office buildings
These funds will normally require geographic diversification and diversification by type of real estate. No loan will normally account for more than 5%-10% of the total fund.
Each loan will be less than or equal to 75% of appraised value, and have a minimum of 1.20:1 debt service coverage in place. Mortgages generally have 5-10 year terms, and have amortization periods of 20-30 years.
Mortgage origination comes from CMCC’s three offices across Canada, with five underwriters, three of whom have a minimum of 25 years of lending experience. Prior to joining CMCC, those underwriters previously held positions as vice president or higher at major financial institutions. By having highly qualified and experienced local underwriters on the ground in the major urban centers of Ontario, Alberta and British Columbia, we believe that we can more quickly identify, evaluate and fund high quality mortgage opportunities than our competition.
In short, CMCC has the unique ability to provide an institutional investor with a well underwritten and diversified portfolio of mortgages across Canada. CMCC has recently been awarded a mandate from a pension fund advisor to source and manage a $150 million mortgage portfolio in Ontario and western Canada.