Waterstone Defeasance, LLC Facilitates Defeasance of $50 Million CMBS Loan

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Waterstone Defeasance

Jul 14, 2013, 03:00 ET

Charlotte, NC (PRWEB) July 14, 2013 -- As the defeasance consultant, Waterstone managed the activities of numerous parties involved with the defeasance transaction to meet Lionstone’s required closing schedule. Parties associated with a defeasance transaction typically include the servicer, servicer’s counsel, borrower, borrower’s counsel, securities broker and custodian, accountant, rating agencies, and the successor borrower. “Managing the defeasance process requires strong project management skills, as well as relationships in the government bond broker/dealer community” said Brian Pedersen, as defeasance consultant for Waterstone. “Although this was a large high profile loan, the defeasance closed smoothly and on time”, Pedersen noted.

John Enerson, Vice President of The Lionstone Group said “Brian Pedersen and the Waterstone team did an exceptional job of managing the defeasance process on our behalf. They made it so easy we at Lionstone really did not have to do much work.”

What is Defeasance?
In commercial real estate, defeasance is a process a borrower may need to go through when selling property or refinancing a loan encumbered by CMBS debt. Defeasance is a substitution of collateral activity where a portfolio of government securities are purchased from new loan proceeds, and the cash flow from these securities are used to satisfy the remaining debt service of the existing CMBS loan. Upon closing of the defeasance, the mortgage is released and the property can now be encumbered by the mortgage from the new takeout debt.

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 Defeasance has defeased hundreds of CMBS loans, and has developed an industry leading revenue sharing program with its clients.

Mike Schoenstein, Waterstone Defeasance, (704) 926-6502, [email protected]