Industry News

NORTHEASTERN CMBS LOANS RIPE FOR DEFEASANCE

Borrowers May Save Hundreds Of Thousands Over Life Of Mortgage

Considering the strength of the commercial real estate market, which boasts low vacancy rates and rising property values, the low interest rate environment, and improvements in the lending arena, borrowers are incentivized to defease their existing commercial mortgage-backed security (CMBS) loans to facilitate the sale or refinancing of their properties...

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CMBS Loan Refinancing With Defeasance

Brokers and borrowers have a choice when prepaying commercial mortgage-backed securities

With Treasury yields keeping defeasance costs relatively high, defeasance activity has been driven primarily by borrowers looking to capitalize on the current low interest rate environment and the improved lending arena in general, both for purchases and refinances...

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Defeasing Today Or Tomorrow

Why defeasance penalties are worth it

Borrowers are often fearful of defeasance, but why? With the recent low interest-rate environment fresh in everyone’s minds, defeasance has built up a negative connotation among owners and brokers, with many loans being assumed rather than defeased over the last few years. However, as loans originated from 2005 to 2007 approach maturity, defeasance can actually be cost beneficial from 2005 to 2007 approach maturity, defeasance can actually be cost beneficial for many commercial property owners...

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Defeasing CMBS Loans

Low Interest Rates Fuel Loan Prepayments

With Treasury yields keeping defeasance costs relatively high, defeasance activity has been driven primarily by borrowers looking to capitalize on the current low interest rate environment and the improved lending arena in general, both for purchases and refinances...

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Defeasance Back in Style as Borrowers Become Wary of Rising Interest Rates

Defeasance provisions, which allow sponsors to swap out a loan with treasury securityies that replicate the cash flows of the loan, have again become a popular option for CMBS borrowers looking to lock in rates and avoid prepayment penalties, industry sources told Mortgage Observer Weekly.

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Defeasance Firm in Debt to Hot Real Estate Market

AST Expects Business to Boom as Interest Rates Rise

In this white-hot real estate market, a lot of commercial investors are looking to sell and take profits. Also, historically low rates are spurring many of them to refinance.

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Insight from Eitan Weinstock: Senior Analyst at AST Defeasance

I started with AST Defeasance back in 2008, just as the market was starting to cool off. Like everyone, we had a few quiet years from 2008 to 2011, but as quiet as those years may have been, they were actually a blessing in disguise as they made our team more open-minded and resourceful.

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Why Defeasance Penalties Are Worth It

Borrowers are often fearful of defeasance, but why? With the recent low interest-rate environment fresh in everyone’s minds, defeasance has built up a negative connotation among owners and brokers, with many loans being assumed rather than defeased over the last few years.

Read More...