Waterstone Defeasance Closes a Transaction for Multi-Family Property in Denver
Waterstone Defeasance, LLC recently closed a defeasance transaction involving a CMBS loan. The $10 million loan, originated in 2013, was secured by Infinity Flats, a multi-family property in Denver, Colorado. The original loan was securitized in the FREMF 2013-K27 pool, with a 3.690% coupon, and is scheduled to mature in December 2022. Waterstone guided the owners through the defeasance process which was driven by the sale of the property.
The Waterstone team representing the owner was led by Carol Tillman and Brian Pedersen.
What is Defeasance?
Defeasance is a substitution of collateral in which a portfolio of government securities replaces the real estate as the collateral for a commercial loan. Redemption of principal and interest from the securities pays remaining debt service, so the promissory note technically remains in place but is repaid from the proceeds of the securities purchased. The securities are typically purchased with a portion of the proceeds of a sale or refinance, so the defeasance transaction is usually coordinated with a related real estate transaction. Most fixed-rate conduit/CMBS loans originated since 1998 have defeasance provisions written into the loan documents.
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 hundreds of 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/calculator). Headquartered in Charlotte, North Carolina, the company also has offices in New York, Dallas, and Atlanta.
8720 Red Oak Blvd., Suite 300
Charlotte, NC 28217
Contact: Carol Tillman
Contact: Steve Hall
232 Madison Ave., Suite 600
New York, NY 10016
Contact: John Felter
Contact: Mike Schoenstein