Defeasance is most commonly seen on prepayments of securitized CMBS loans. Rather than a simple prepayment calculation, the defeasance is really a substitution of collateral. A portfolio of securities, usually Treasurys, replaces the underlying real estate as the collateral and provides the payments to cover the debt service.
The Pensford defeasance team is comprised of experienced professionals with more than 1,000 defeasances totaling more than $10B. We’ve worked on defeasances across the spectrum of size and complexity, from multi-property defeasances for an IPO to single asset financings. We guide our clients through the entire defeasance transaction, ensuring a seamless closing at the lowest possible cost.
Unlike our competitors, we never pay a referral fee to a Servicer. And unlike our competitors, we always share any residual value from the portfolio with our clients. We provide full transparency and will never have a conflict of interest with a client.
We know that closing the defeasance is critical to your refinance or sale. Pensford delivers a smooth closing at the lowest cost possible, allowing you to focus on the other important aspects of the transaction.