CHARLOTTE, NC: Waterstone Defeasance recently closed a defeasance transaction for a $25.2 million CMBS loan.  The loan was secured by a portfolio consisting of industrial and warehouse properties in Massachusetts.  Waterstone guided the owners through the defeasance process coinciding with the owners’ sale of one of the properties and the refinancing of the loan for the remaining three properties.

As the defeasance consultant, Waterstone managed the activities of the numerous parties involved with the transaction in order to meet the borrower’s closing schedule. Parties associated with a defeasance transaction typically include the servicer, servicer’s counsel, borrower, borrower’s counsel, securities broker, custodian, accountant, rating agencies, and the successor borrower.

“I think what makes this interesting is that the economics of the transaction inevitability drive the defeasance analysis.  In this case, because the underlying assets were going to be used as a development site, it drove the cost / benefit discussion and ultimately the decision,” said John Felter, Managing Director at Waterstone.

About Waterstone Defeasance

Waterstone Defeasance, LLC is an independent consulting firm specializing in assisting commercial real estate borrowers through the defeasance process.  Since 2005, Waterstone has assisted owners and their advisors achieve the lowest possible defeasance costs.  Waterstone has developed an industry-leading online defeasance calculator so clients can get a quick defeasance estimate on their website (defeasanceservices.com).  Headquartered in Charlotte, North Carolina, the company also has offices in New York, Dallas, and Irvine.

Contacts:

John Felter, Managing Director – 561.352.6551

Brian Pedersen, Managing Director – 704.926.6533

DefeasanceServices.com