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CASE STUDY: Discounted Payoff - CMBS


Situation:

  • 36,000 square feet of unanchored retail outside Ft. Lauderdale, FL

  • 100% occupied, wealthy submarket

  • 2005 origination, 2015 maturity

  • Loan moved to special servicing in early 2011 on a non-monetary default

  • $11.4M loan

Consideration & Solution:

  • The borrower engaged Hart Advisors Group after negotiations had failed with the special servicer via the Borrowers legal counsel

  • The loan had been transferred to special servicing in July 2011

  • Hart Advisors Group completed an independent assessment of the market, reviewed projections, and completed a proposal to the Special Servicer

  • Hart Advisors Group worked directly with the Special Servicer to “start over”, erasing the prior negative experience dealing with the Borrower’s counsel

  • Hart Advisors Group was the Asset Manager

  • The Borrower was referred by Hart Advisors Group to local counsel and a national mortgage broker familiar with the subject property to complete the transaction


RESULTS The new loan closed in 90 days from the servicer approval

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