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$563M loan agreement satisfies mortgage on 1, 2, 4 & 5 WTC.

The mortgage for four of the World Trade Center buildings was scheduled to be satisfied shortly before Christmas after World Trade Center certificateholders agreed to the prepayment of a $563 million loan by the borrower, World Trade Center Properties LLC, an affiliate of Silverstein Properties.

The mortgages for 1, 2, 4 and 5 World Trade Center buildings were to be paid off:

David E. Creamer, chairman of GMAC Commercial Mortgage Corporation, the mortgage provider behind the deal, said he was happy to finally close the transaction.

"For more than two years since the destruction of the towers, we have devoted considerable time and energy to protecting the fights of the investors in this process," Creamer said. "This transaction certainly underscores the critical role played by servicers of commercial real estate loans." Howard Rubenstein, a spokesman for Larry Silverstein, president and CEO of Silverstein Properties, said the company was "extremely pleased that this significant step has been accomplished."

By satisfying the mortgage, Rubenstein said, Silverstein would have one less approval to obtain in his rebuilding plans at Ground Zero.

"By paying off the GMAC loan, we have eliminated GMAC's ability to control rebuilding through its approval rights over the site plan and the individual towers."

Trade Center certificateholders were told on Nov. 21 that a potential consent solicitation could occur soon. On Dec. 1, GMAC announced the solicitation had begun and that holders had a 20-business-day solicitation period to vote their consent of the modification to the terms of the loan agreement and the proposed loan payoff negotiated on their behalf by GMAC. The certificateholders subsequently approved the loan.

"We're very pleased that the certificateholders have approved this outcome," Creamer added. "We'd also like to thank them for completing the consent process so promptly."

Earlier, the Port Authority of New York and New Jersey approved Silverstein Properties' proposed prepayment of the loan. The Port Authority also elected to buy out Westfield America's World Trade Center retail leasehold.
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Author:Moore, Peter
Publication:Real Estate Weekly
Geographic Code:1U2NY
Date:Jan 7, 2004
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