Wednesday, July 11, 2012

Talmage, LLC Modifies $291 Million Loan With Simon Property Group and Farallon Capital Management

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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