More Canadian defeasances structured than all of our
Commercial Defeasance closed the first Canadian commercial mortgaged backed securities (CMBS) defeasance in 2002. Since then, we have structured more Canadian defeasances than all of our competitors combined. As the unmatched leader in defeasance facilitation, our deep industry relationships, experience and knowledge of the Canadian market help us to actively manage each transaction and save our clients valuable time and money.
Commercial Defeasance has defeased loans secured by all property types in every province, closed numerous defeasances with every servicer and their counsel and closed many of the largest and most complex Canadian defeasances to date.
We handle every step of the defeasance process from start to finish. We work with the master/primary servicer, servicer's counsel, accountants, rating agencies, title company and securities intermediary to close the defeasance contemporaneously with the refinance or sale. No other company works harder throughout the defeasance process to make certain your defeasance closes on schedule.
We have dedicated deal management teams who specialize in Canadian defeasance and are always available to explain the process. Our structuring of the bond portfolio is renowned and unparalleled in the industry. Additionally, because we are not owned by a bank or broker, we are able to insist that the broker utilize cost saving measures for our clients in regards to the final purchase of the securities.
A release of the borrower's payment obligations under the loan could create a novation or taxable event to the certificate holders, so a defeasance in Canada does not include a third-party successor borrower that assumes the borrower's obligations under the defeased loan. At closing, the borrower is only released from its obligations related to the real estate. The obligations of the borrower under the Commitment Letter survive (including ongoing payment obligations). However, after the defeasance, payment and performance are secured by the portfolio of government bonds.
This was one of the simplest financial transactions I have participated in during my twenty five years in the real estate industry. All I had to do was sit back and watch. The process took only two weeks and was handled in a very professional manner.
CFO, Concert Real Estate Corp., Vancouver, BC
I worked with Commercial Defeasance on an office building transaction and found their service, execution and knowledge excellent. They are true professionals.
Boughton Law Corporation, Vancouver, BC
Much like how an Olympic athelete makes their sport seem effortless, the actual defeasance went perfect. On time and below cost, I couldn’t have been more pleased with the wonderful work of Commercial Defeasance.
Robert J. Fleck
President, Canadian Self-Storage Assoc., Carp, Ontario