The costs of a defeasance are comprised of (I) the cost of the securities and (II) the third-party fees of the various service providers. The cost of the securities is a function of the spread between the interest rate of the loan and the yield of the securities. The third-party transaction expenses tend to be fixed in nature, and are detailed below:
Servicer Processing Fee
Servicer's Counsel
Accountant
Rating Agencies (if required)
Securities Custodian
Successor Borrower
Waterstone Capital Advisors
Average Third-Party Fees
Servicer's Counsel
Accountant
Rating Agencies (if required)
Securities Custodian
Successor Borrower
Waterstone Capital Advisors
Defeasance Consultant
Securities Administrator
Securities Administrator
Average Third-Party Fees
$7,500-$27,500
$10,000-$25,000
$3,500
$0-$15,000
$6,000-$11,000
$3,500-$11,500
$10,000
$5,000
$65,000
$10,000-$25,000
$3,500
$0-$15,000
$6,000-$11,000
$3,500-$11,500
$10,000
$5,000
$65,000
