Commercial Defeasance, LLC recently structured and closed a $16,000,000 defeasance transaction on behalf of JAMCO Properties Inc., an Atlanta-based multifamily investment and management firm. The first defeased multifamily property, Harmony Bay Apartments, is a 300 unit apartment complex located in Roswell, Georgia.

The second defeased multifamily property, Morrowood Townhomes, is a 264 unit complex located in Morrow, Georgia. The defeasance enabled JAMCO Properties, Inc to refinance the properties with LaSalle Bank for $24,500,000.

John Mitchener, President of JAMCO Properties, Inc. said, “Sebronzik Wright, Emily Ferguson and the team at Commercial Defeasance were very easy to work with. The entire process was seamless.”

What is Defeasance?

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.

About Commercial Defeasance, LLC

Commercial Defeasance LLC, headquartered in Charlotte, N.C., is the market leader in commercial loan defeasances. The company actively manages all aspects of the defeasance process so that borrowers can focus on their real estate transaction with confidence that their defeasance will close on time. Commercial Defeasance has been the industry leader in defeasance transactions since its founding in May 2000. For more information, please visit www.defeasewithease.com.

About JAMCO Properties, Inc

JAMCO Properties Inc. is an Atlanta-based multifamily investment and management firm. Founded in 1992, the firm specializes in acquiring and renovating apartment communities in the metro Atlanta area and currently owns and manages properties in Fulton, DeKalb and Clayton counties. A long-standing member of the Atlanta Apartment Association, JAMCO Properties, Inc. is recognized in the Atlanta Business Chronicle's list of "Top 25 Apartment Property Management Companies".