Borrowers find firm has flex appeal.

Commercial Defeasance, LLC recently structured and closed a $13,300,000 defeasance transaction on behalf of an affiliate of New Jersey based SJS Realty Management, Inc.

The Metrocentre Complex is a 170,000 s/f flex-office/warehouse located at 45th and Interstate 95 in W. Palm Beach. FL.

Stephen Cravitz, Vice President for SJS Realty Management, Inc., said "This was our second defeasance with Commercial Defeasance.

"On both occasions, the process moved quickly and the closings occurred as predicted. Commercial Defeasance personnel take control, coordinate with all the parties involved and follow through to the last detail. They have earned my confidence and I would not think twice about using their services again."

In order to sell or refinance, a CMBS borrower must navigate the complex defeasance process, as nearly all fixed-rate conduit loans originated since 1998 prohibit a simple cash prepayment.

Defeasance is a substitution of collateral in which a portfolio of government securities replaces the property as the collateral. Redemption of principal and interest from the securities pays all remaining debt service, so the note technically is still in place but is repaid from the securities purchased. Commercial Defeasance LLC, based in Charlotte, N.C., is the market leader in commercial loan defeasances.