Waterstone Defeasance Closes on the Defeasance of a $9.0 Million CMBS Loan
CHARLOTTE, NC: Waterstone Defeasance recently closed a defeasance transaction for a $9.0 million CMBS loan, secured by a Multifamily property in Haverhill, Massachusetts. 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.
“This defeasance involved a refinance, where the client wanted to unlock equity and lock in a lower rate. The defeasance expense was spread over the life of the new note, while for tax purposes the expense of the defeasance cost could be taken in the current tax year,” 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.
John Felter, Managing Director – 561.352.6551
Brian Pedersen, Director – 704.926.6533