Partial releases when one loan covers several commercial properties

A sponsor who owns three leased buildings sometimes wants one loan instead of three. Wikipedia's article on the blanket mortgage, which is the target of the 'blanket loan' title, opened October 28, 2026, defines a blanket mortgage or blanket loan as a mortgage used to fund the purchase of more than one piece of real property. It says that once a parcel is sold, a portion of the mortgage is released and the rest remains. It contrasts that with a due-on-sale clause that can call the entire debt due when secured property is sold. A release clause, in the article's words, allows the sale of portions of the secured property and a corresponding partial repayment. Those sentences are the useful part. The article then illustrates them with builders who buy tracts, subdivide, and sell houses one at a time. Land development and construction of homes are not products arranged on this page. This note is general information. It is not tax advice, legal advice, or an appraisal. A CPA, an attorney, or the other professional named in the note decides how the rule applies to a given property.

For an investor-owned retail center, a warehouse, an office, or an apartment property of five or more units, the same mechanical idea can appear in a portfolio loan: several properties secure one note, and the documents say what happens if you sell one. How the release price is set is a negotiation in those documents. This note will not print a percentage, a formula, or a minimum. A lawyer reads the clause. A lender may also discuss whether another property can be substituted, and whether a default on one property is a default on all of them. Those are cross-default and substitution questions. They were not given numbers in the Wikipedia article, so none are invented here.

When separate loans are the cleaner file

One loan is simpler to close and can be what a lender offers. It is a poor fit when the properties should be free to be sold on different days, when they are in different states with different counsel, or when one weak asset would let the lender accelerate the healthy ones. Separate loans cost more to close and may be the point. The portfolio version of a refinance, for Arizona collateral, is Arizona portfolio refinance. A loan that crosses a state line is multi-state portfolios. Prepayment that shows up when you release or pay off early is yield maintenance and defeasance. Ongoing tests after closing are commercial loan covenants.

One-to-four-unit houses and residential portfolios are outside this note even though the Wikipedia illustration is houses. Do not bring a scattered-site rental-home pool to this page and call it commercial.

Who does not set your release price

Capital Market Funds arranges financing with the lender that will hold or place the loan. It does not publish a release schedule and it is not your attorney. Capital Market Funds is not a Fannie Mae DUS lender. If an agency loan on five-or-more-unit apartments allows a release, that permission is in the agency lender's documents, not in a sentence here.

The office is 7373 E Doubletree Ranch Rd #255, Scottsdale, AZ 85258. The phone is (480) 495-8072. Capital Market Funds, LLC - CBK-2007014 - Commercial Mortgage Banker and NMLS 1445066.