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CASE STUDY: Discounted Payoff - CMBS


Mezzanine Forgiveness/Senior Reduction 

Situation:

  • Property Type: Office

  • Property Size: 141,955 sq. ft.

  • Origination: Jun 2006

  • Maturity: 7/6/16

  • Current Loan Balance: $15,807,765

  • Occupancy: 82.44 %

  • Debt Service Coverage Ratio: .78 as of 2013

  • Location: Nevada

Problem:

Office property located in a struggling slow recovery market in Nevada. Senior and Mezzanine debt present obstacles for workout.


RESULTS

Debt forgiveness of Mezzanine and reduction of senior debt of $4.6MM

Servicer: CIII

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