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NEW YORK CITY-Charlotte, NC-headquartered Commercial Defeasance LLC, which opened a local office Aug. 30, has coordinated the $800-million defeasance of the General Motors Building. The need to defease the existing loan encumbering the property, located in Midtown at 767 Fifth Ave., was triggered by a refinancing of the existing fixed-rate CMBS debt by Deutsche Bank.

Chuck Spencer, director of marketing for the company, tells GlobeSt.com that the current market turmoil has affected defeasance the way it has affected many companies. “Since there are fewer loans, there are therefore fewer loans to defease. Therefore, completing a large transaction such as this, due to the size of the property, is something we are proud of accomplishing.”

Since 2000, the company has facilitated defeasance transactions nationwide for all property types; however, Dawn Reinhardt, the Commercial Defeasance deal manager who worked on the transaction noted that “the defeasance of the GM Building was one of the largest defeasance transactions closed to date, which made it a complex and challenging assignment. The fact that the defeasance and refinancing closed on time in this market is a real testament to how well all of the parties to the transaction worked together.”

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