NEW YORK, Jul 09, 2012 (BUSINESS WIRE) --
Talmage, LLC announced today the successful modification and
restructuring of the $291 million
Cadillac Mills Portfolio loan in its
capacity as Special Servicer.
The 2.8 million square foot Cadillac Mills Portfolio was purchased
by Simon Property Group and Farallon Capital Management as part of its
February 2007 acquisition of the Mills Corporation. The
Portfolio is secured by three regional malls, The Galleria at White
Plains (White Plains, NY), The Esplanade (Kenner, LA) and Northpark Mall
(Ridgeland, MS). In January 2012, Talmage was appointed as the
transaction's Special Servicer by the bank syndicate who holds the
private (non-CMBS) loan.
As Special Servicer, Talmage negotiated with Simon Property Group to extend the loan term for three years in exchange for an upfront
principal payment to pay down the loan, an increase in the loan's
interest rate and a full cash flow sweep. Since the borrower paid all
costs, the debt holders suffered no cash flow interruption and bore no
expenses in connection with the modification.
"The combination of fresh capital and new leases, combined with
the Portfolio's strong cash flow, allowed us to structure a highly
customized three-year modification for the Simon/Farallon team that will
allow them to maximize the value of the asset for all parties," said
Edward L. Shugrue III, Chief Executive Officer of Talmage.
Grant G. Rogers, Chief Operating Officer of Talmage said, "By
working collaboratively with the lender group and Simon, we fashioned an
attractive resolution for all constituents. The Simon team
did a terrific job on the leasing front that allowed us to close the
transaction."
Rogers also noted that the modification
provides the Simon/Farallon team with
the time necessary to
complete the stabilization of the Portfolio while
protecting the lenders with deleveraging and improved loan terms, such
as full cash management.
Talmage is an active investor in, and advisor/special servicer on, large
and complex commercial real estate transactions. Since 2003, Talmage has
made in excess of $10 billion of commercial real estate fixed income
investments, acted as the special servicer on $10 billion of
transactions and advised on more than $30 billion of loan restructurings
and modifications. Talmage is independently owned and offers
conflict-free advice to its institutional clients.
SOURCE: Talmage, LLC
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