Commercial Defeasance Structures $28 Million Transaction for Concert Real Estate Corporation of Vancouver



    VANCOUVER, British Columbia, Nov. 26 /CNW/ -- Commercial Defeasance, LLC
recently facilitated a $28,400,000 multi-property Canadian defeasance
transaction for Concert Real Estate Corporation, a real estate development and
ownership company based in Vancouver, British Columbia. They defeased three
loans secured by class B industrial and office properties located in Ontario.
The first loan included a 271,000 sq. foot industrial property and 64,000 sq.
ft. office building located at 6625-6705 Tomken Rd. Mississauga, Ontario. The
second loan was for a 320,000 sq. ft. industrial building located at 75
Rexdale Blvd. in Mississauga, Ontario. The third loan was for an 80,900 sq.
ft. industrial property and 50,400 sq. ft. office building at 80-90 Centurian
Drive in Markham, Ontario. The defeasances enabled Concert Real Estate
Corporation to refinance the property with Bank of Montreal for $52,625,000.
    Lionel Wazny, Chief Financial Officer of Concert Real Estate Corporation
said, "Jon Davis and his team made this one of the simplest financial
transactions I have participated in during my 25 years in the real estate
industry. All I had to do was sit back and watch. The process took only 2
weeks and was handled in a very professional manner."
    Jon Davis, Deal Manager, of Commercial Defeasance said, "The vendor and
purchaser needed to close this portfolio quickly with a simultaneous
assumption/defeasance structure. The multi-loan defeasance was a complex task,
but thanks to the experience of our dedicated team and all the parties working
well together we met everyone's expectations on the closing date."
    
    What is Defeasance?
    
    Many fixed-rate conduit/CMBS loans originated since 1999 in Canada do not
have any rights of repayment or yield maintenance provisions and instead
require borrowers to defease in order to sell or refinance their property. Put
simply, defeasance is a substitution of collateral. Typically, the borrower
pledges to the lender a portfolio of government bonds sufficient to make all
remaining debt service payments. Once the bonds are pledged to the servicer
and delivered to an institutional securities intermediary who will hold the
bonds for the benefit of the loan servicer, the servicer will instruct the
lender to discharge the mortgage/charge of record.
    
    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 borrowers and their 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 from million dollar single loan transactions to
billion dollar multi-loan transactions coordinated with multiple loan
servicers and rating agencies to close on the same day. For more information
or a free defeasance cost estimate, please visit www.defeasewithease.com or
call 1-800-624-4779.

    Available Topic Expert(s): For information on the listed expert(s), click
appropriate link. Jason Kelley
http://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=66918 John
Hosmer http://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=66854




For further information:

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

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COMMERCIAL DEFEASANCE, LLC

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