Financial Compound, on behalf of a long-standing client, arranged for a $1 million reduction in prepayment penalty so that our client could more easily sell a special use property. This special use property was encumbered by an approximate $11 million first mortgage loan. Financial Compound worked with the borrower’s Commercial Mortgage Lenders to facilitate this discounted payoff, providing underwriting and market support for the borrower’s request. The process resulted in a transaction that accomplished both the borrower’s and Commercial Mortgage Lenders goals.

This lender enjoyed a large exposure to the property type and in 2009 decided that it no longer wanted to have such a large exposure. Therefore the lender was willing to entertain our discounted payoff request and still earn a strong enough yield on the investment to make the lender happy. The transaction represents a good example of Commercial Mortgage Broker Financial Compound’s ability to find a common ground between the borrower and the lender, as facilitated and augmented by Financial Compound demonstrating market rates terms and underwriting to help both parties better understand the financial and economic dynamics of the transaction.