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Our client faced prolonged approvals from the Master Servicer for a Property Management Agreement and an access easement. With those items unresolved, the lender froze disbursements, including a critical leasing commission tied to extending the building’s largest tenant. This triggered a tenant rent holdback and restricting access to cash reserves and the lender froze disbursements. The effect included a tenant rent holdback, restricted access to cash reserves, and real operational strain.
Even with funding frozen, the borrower stayed current on all loan obligations and advanced significant capital to keep the property performing and tenants satisfied.
How The Henley Group Helped:
The Henley Group moved the loan into Special Servicing, submitted a comprehensive proposal seeking retroactive consents and release of the leasing commissions, and coordinated (and negotiated) across all parties, including the Mezz lender, to keep stakeholders aligned. With the waterfall closed and months drifting into default, the Mezz alignment mattered. THG secured an agreement to avoid late fees/default interest while the resolution process played out.
Solution:
The Borrower requested and received approval of the retroactive consent for the Property Management Agreement, as well as retroactive consent and formal recording of the Access Easements. The Borrower also sought and received the immediate release of funds from the Cash Management Account to reimburse Borrower advances and confirmation of the final leasing commission installment. These actions cured all alleged defaults, restored operating cash flow, preserved value for all stakeholders, and returned the loan to the Master Servicer.
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