CHARLOTTE, NC: Waterstone Defeasance recently closed a defeasance transaction for a $7.3 million Freddie Mac loan, secured by a multifamily property in Milpitas, CA. Waterstone guided the owners through the defeasance process coinciding with the owners’ refinance of their loan.
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.
“The defeasance industry has been dominated by multifamily transactions – both refinances and sales. This transaction was a refinance where the borrower wanted to lock in new low rate long term financing. They were exiting a Freddie Mac securitized loan and receiving new financing from a local bank. Local banks continue to be aggressive with their rates and offer a lot of upside to borrowers.” – Addison McMillan, Director with 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.
Please contact us today with any questions regarding defeasance or to request a quote.