Comments on: Treasury Yields Create Defeasance and Yield Maintenance Nightmare http://www.squarefeetblog.com/commercial-real-estate-blog/2008/12/11/treasury-yields-create-defeasance-and-yield-maintenance-nightmare/ Commercial Real Estate Blog Wed, 17 Mar 2010 09:08:37 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: dcdubbs http://www.squarefeetblog.com/commercial-real-estate-blog/2008/12/11/treasury-yields-create-defeasance-and-yield-maintenance-nightmare/comment-page-1/#comment-2473 dcdubbs Sun, 05 Jul 2009 20:02:59 +0000 http://www.squarefeetblog.com/?p=1354#comment-2473 I think the biggest positive to <a href="http://www.bankapedia.com/mortgage-encyclopedia/commercial-mortgage-terms/470-yield-maintenance" rel="nofollow"> Yield Maintenance </a> is the fact it cuts way down on flipping. The commercial market has been hit- but not like residential- and I think Yield Maintenance has a lot to do with that I think the biggest positive to
Yield Maintenance
is the fact it cuts way down on flipping.
The commercial market has been hit- but not like residential- and I think Yield Maintenance has a lot to do with that

]]> By: Prepayment Penalties in Today’s Market « Jordan Crouch’s Adventures in Mortgage Banking http://www.squarefeetblog.com/commercial-real-estate-blog/2008/12/11/treasury-yields-create-defeasance-and-yield-maintenance-nightmare/comment-page-1/#comment-1519 Prepayment Penalties in Today’s Market « Jordan Crouch’s Adventures in Mortgage Banking Fri, 12 Dec 2008 17:16:39 +0000 http://www.squarefeetblog.com/?p=1354#comment-1519 [...] detailing how the shifting treasury yields are affecting prepayment penalties. Read the article here. One thing the post does not mention is that for a borrower that is forced to sell a property, one [...] [...] detailing how the shifting treasury yields are affecting prepayment penalties. Read the article here. One thing the post does not mention is that for a borrower that is forced to sell a property, one [...]

]]> By: Jordan Crouch http://www.squarefeetblog.com/commercial-real-estate-blog/2008/12/11/treasury-yields-create-defeasance-and-yield-maintenance-nightmare/comment-page-1/#comment-1518 Jordan Crouch Fri, 12 Dec 2008 17:10:00 +0000 http://www.squarefeetblog.com/?p=1354#comment-1518 A property owner that must sell a property can avoid these hefty penalties by having the new owner assume the existing loan. Typically this is done for a fee of 1% of the remaining balance of the loan. The lender must qualify the new borrower, but a 1% fee is much better compared to a 10% fee (using the defeasance example above). A property owner that must sell a property can avoid these hefty penalties by having the new owner assume the existing loan. Typically this is done for a fee of 1% of the remaining balance of the loan. The lender must qualify the new borrower, but a 1% fee is much better compared to a 10% fee (using the defeasance example above).

]]> By: Regan Campbell http://www.squarefeetblog.com/commercial-real-estate-blog/2008/12/11/treasury-yields-create-defeasance-and-yield-maintenance-nightmare/comment-page-1/#comment-1517 Regan Campbell Fri, 12 Dec 2008 15:20:16 +0000 http://www.squarefeetblog.com/?p=1354#comment-1517 Great post. I work in the defeasance/commercial real estate finance industry and frequently provide cost estimates for both defeasance and yield maintenance transactions to commercial property owners/buyers all of the time. Borrowers routinely contact us to find out how much their defeasance or yield maintenance will cost and unfortunately in the current treasury yield environment these figures often become deal breakers. However, there are still deals with the provisions being completed. I would be more than happy to answer any further questions on this topic (rcampbell@chathamfinancial.com). Thanks again for the post! Great post. I work in the defeasance/commercial real estate finance industry and frequently provide cost estimates for both defeasance and yield maintenance transactions to commercial property owners/buyers all of the time. Borrowers routinely contact us to find out how much their defeasance or yield maintenance will cost and unfortunately in the current treasury yield environment these figures often become deal breakers. However, there are still deals with the provisions being completed. I would be more than happy to answer any further questions on this topic (rcampbell@chathamfinancial.com). Thanks again for the post!

]]> By: amoranz http://www.squarefeetblog.com/commercial-real-estate-blog/2008/12/11/treasury-yields-create-defeasance-and-yield-maintenance-nightmare/comment-page-1/#comment-1508 amoranz Fri, 12 Dec 2008 02:13:08 +0000 http://www.squarefeetblog.com/?p=1354#comment-1508 great post! I haven't read about this anywhere else. People are so focused on rents falling and tenants going out of business that they often times forget about a lot of the moving parts that happen when buildings are bought and sold. I would really hate to be forced to sell anything right now. Between the lack of funds and things you discussed here, I'd probably just throw my hands up and walk away. great post! I haven’t read about this anywhere else. People are so focused on rents falling and tenants going out of business that they often times forget about a lot of the moving parts that happen when buildings are bought and sold.

I would really hate to be forced to sell anything right now. Between the lack of funds and things you discussed here, I’d probably just throw my hands up and walk away.

]]> By: Treasury Yields and Commercial Real Estate | Peter Pays Paul http://www.squarefeetblog.com/commercial-real-estate-blog/2008/12/11/treasury-yields-create-defeasance-and-yield-maintenance-nightmare/comment-page-1/#comment-1501 Treasury Yields and Commercial Real Estate | Peter Pays Paul Thu, 11 Dec 2008 21:31:55 +0000 http://www.squarefeetblog.com/?p=1354#comment-1501 [...] Treasury Yields Create Defeasance and Yield Maintenance Nightmare | Square Feet Commercial Real Esta.... [...] [...] Treasury Yields Create Defeasance and Yield Maintenance Nightmare | Square Feet Commercial Real Esta…. [...]

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