Commercial Defeasance Facilitates $29 Million Defeasance in Five Days For an Office...

Commercial Defeasance Facilitates $29 Million Defeasance in Five Days For an
Office Building in Beverly Hills

BEVERLY HILLS, Calif., Oct. 23 /PRNewswire/ -- Commercial Defeasance, LLC
recently facilitated a $29.3 million defeasance transaction on a premier high-
rise office building in Beverly Hills, CA. A defeasance usually takes 30-45
days to complete, but this transaction was completed in just five days
including rating agency review. The transaction allowed the Beverly Hills
company to refinance the 99,904 sq. foot property with Washington Mutual Bank.
The owners were represented by Parklane Investments and George Smith Partners.
Farzin Emrani, of George Smith Partners, said, "Commercial Defeasance
played a pivotal role in helping us close a large loan in a very short time
frame. The transaction needed to close in five days including obtaining rating
agency approval. We knew that Commercial Defeasance's experience and knowledge
of the process would guarantee an on time closing."
Adam Coleman, Deal Manager at Commercial Defeasance, said, "This
transaction was a clear example of how the current economic turmoil can impact
the timing of a defeasance transaction. Everyone working on this deal knew
that if we weren't able to get everything closed in less than a week, the
refinance might fall through. It was gratifying to be able to leverage our
knowledge, experience and responsiveness to achieve our customer's closing
goals.
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 all 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 Commercial Defeasance, LLC
Commercial Defeasance, LLC is the market leader in commercial real estate
loan defeasance. The company actively manages all aspects of the 30 day
defeasance process, so the borrower and the borrower's attorney and broker can
focus on the related real estate transaction with confidence that the
defeasance will close on time. Commercial Defeasance has continuously led the
defeasance market since pioneering the CMBS defeasance business in 2000. The
company has facilitated thousands of defeasance transactions in the United
States and Canada for all property types. Custom Hedging Solutions, LLC, an
affiliate, also facilitates hedging transactions to mitigate interest rate
exposure and lock-in the cost of the defeasance portfolio. For more
information or a free defeasance cost estimate, please visit
www.defeasewithease.com or call 1-800-624-4779.
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Jason Kelley
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SOURCE Commercial Defeasance, LLC

Janell Otis, VP of Marketing of Commercial Defeasance, +1-704-248-2609,
jotis@cdfllc.com