Waterstone Capital Advisors LLC, a Charlotte N.C.-headquartered defeasance consulting firm, has launched a new program that allows commercial real estate borrowers to receive a present value cash payment for their share of the residual float from a commercial mortgage-backed securities (CMBS) loan at the closing of a defeasance transaction.
This program allows commercial mortgage borrowers to monetize their share of the future residual value of their defeased CMBS loan, the company explains, adding that commercial real estate borrowers often must go through defeasance if they are selling a property encumbered by conduit debt, or refinancing a CMBS loan.
