Search
 

$29M Defeasance Closes in Five Days

BEVERLY HILLS, CA-Defeasance deals usually take 30 to 45 days to close, but this quick close was necessary to enable a building owner to refinance.

By Bob Howard | Updated on October 23, 2008

BEVERLY HILLS, CA-A quick close on a $29.3 million defeasance here was a crucial element in the refinancing of a 99,904-sf office building, according to Commercial Defeasance LLC and George Smith Partners, who arranged the defeasance and the financing, respectively. Defeasance deals usually take 30 to 45 days to close, but this quick close—five days including rating agency review—was necessary to enable the building owner to refinance, according to Adam Coleman, deal manager based at the Commercial Defeasance headquarters in Charlotte, NC. “This transaction was a clear example of how the current economic turmoil can impact the timing of a defeasance transaction,” Coleman says. According to the Commercial Defeasance deal manager, Everyone working on the transaction “knew that if we weren’t able to get everything closed in less than a week, the refinance might fall through.”

The Beverly Hills owner of the office building refinanced property with Washington Mutual Bank. The owners were represented by Parklane Investments and George Smith Partners. Farzin Emrani, a vice president with George Smith Partners, says that the defeasance “played a pivotal role in helping us close a large loan in a very short time frame.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.