Waterstone Capital Advisors Announces New Present Value Payment Program

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Waterstone Capital Advisors, LLC an established defeasance consulting firm, has just announced their financial product, whereby commercial real estate borrowers can receive a present value cash payment for their share of the residual float from a CMBS loan at the closing of a defeasance transaction.

We were one of the first to inform the industry of the hidden value in a defeasance transaction, and to share this hidden revenue with our clients

Waterstone Capital Advisors, LLC an established defeasance consulting firm, has just announced their financial product, whereby commercial real estate borrowers can receive a present value cash payment for their share of the residual float from a CMBS loan at the closing of a defeasance transaction. This program allows commercial mortgage borrowers to monetize their share of the future residual value of their defeased CMBS loan. Waterstone Capital Advisors is changing the rules in the CMBS defeasance industry once again by offering to pay their clients for the right to act as the successor borrower in the defeasance transaction.

Waterstone Capital Advisors recently wrote a check for over $200,000.00 to one of their clients who took advantage of a unique defeasance opportunity, which enabled them to recoup all third-party expenses associated with the defeasance and put money back in their pocket.

Defeasance is a process commercial real estate borrowers may need to go through if they are selling their property encumbered by conduit debt, or refinancing their CMBS loan. It is the process that releases the mortgage from the loan and allows the borrower to close the related sale or refinance transaction.

Since its founding in 2004, Waterstone Capital Advisors has taken a transparent approach to the CMBS defeasance process. "We were one of the first to inform the industry of the hidden value in a defeasance transaction, and to share this hidden revenue with our clients," Mike Schoenstein said, a principal at the firm. "Now, we are writing checks to our clients for their share of this hidden value at closing -- not several years in the future." The defeasance consultant, or its affiliate, can be the beneficiary of substantial income after a defeasance transaction has closed. "Our company discloses this additional revenue opportunity to our clients, and shares this value with them at closing of the defeasance, or at maturity of the loan," he added.

Although the steps to complete a defeasance transaction do not vary much, what does vary is disclosure about the 'back-end' revenue generated by the defeasance consultant, or its affiliate. In addition to the fee a borrower will pay the consultant to shepherd them through the process (typically $15,000) the consultant can generate additional revenue for its benefit.

To-date, Waterstone Capital Advisors has paid over $1,000,000 to its various defeasance clients at closing, and has committed to return in excess of $5,000,000 to others clients at maturity of the loans.

Call us to talk about your deal today at 877.845.4564, or visit our web site at http://www.waterstonecap.com.

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Olivia Neeley
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