Commercial Defeasance Structures $22 Million Transaction for HVM Management Company, Inc.

GREENSBORO, N.C., March 5 /PRNewswire/ -- Commercial Defeasance, LLCrecently facilitated a $21,800,000 multi-property defeasance transactionfor HVM Management Company, Inc. based in Greensboro, North Carolina. Thedefeasance included five loans secured by multifamily properties located inNorth Carolina and South Carolina. The defeasance was accomplished inconnection with a sale of a portfolio of apartment properties totaling$81,500,000. The defeasances enabled HVM Management Company, Inc. to sellthe properties to Berkshire. The first loan was for the 144 unit Sedgefield Apartments located at4755 Country Club Road Winston-Salem, NC 27104. The second loan was forChambers Ridge, a 100 unit property located at 1700 Chambers DriveMatthews, NC 28105. The third loan was for the 200 unit North Cove locatedat 7950 Crossroads Drive North Charleston, SC 29406. The fourth loan wasfor the Farrington Place which has 168 units and is located at 7927 St.Ives Road North Charleston, SC 29406. The fifth loan was for the 200 unitproperty called The Oaks located at 1850 Ashley Crossing Lane Charleston,SC 29414. H. V. McCoy, Jr., President, of HVM Management Company, Inc. said,"Your firm's expert management and execution of this process were acritical part in the timely closing of our sale. In addition you alsoproduced over $502,000 in combined savings to us in lower defeasance costsand in the purchase of the replacement securities. Commercial Defeasancecertainly exceeded our expectations, and we're delighted with the results." What is Defeasance? Defeasance is a substitution of collateral in which a portfolio ofgovernment securities replaces the real estate as the collateral for acommercial loan. Redemption of principal and interest from the securitiespays all remaining debt service, so the promissory note technically remainsin place but is repaid from the proceeds of the securities purchased. Thesecurities are typically purchased with a portion of the proceeds of a saleor refinance, so the defeasance transaction is usually coordinated with arelated real estate transaction. Nearly all fixed-rate commercial conduitloans originated since 1998 require a borrower to defease in order to sellor refinance. About Commercial Defeasance, LLC Commercial Defeasance, LLC is the market leader in commercial realestate loan defeasance. The company actively manages all aspects of the 30day defeasance process, so borrowers and their attorney and broker canfocus on the related real estate transaction with confidence that thedefeasance will close on time. Commercial Defeasance has continuously ledthe defeasance market since pioneering the CMBS defeasance business in2000. The company has facilitated thousands of defeasance transactions inthe United States and Canada for all property types from million dollarsingle loan transactions to billion dollar multi-loan transactionscoordinated with multiple loan servicers and rating agencies to close onthe same day. For more information or a free defeasance cost estimate,please visit http://www.defeasewithease.com or call 1-800-624-4779.
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