Can I defease a single property from my loan?
Some loans are made against a portfolio of properties rather than a single asset. On occasion, borrowers may want to defease a single property from the portfolio rather than the whole loan. This may be possible, depending on the wording contained in the loan documents. However, a “Release Factor” or other multiplier may be applied to the amount of the loan that you intend to defease. It is not uncommon to see Release Factors of 125%. For example, if your loan originally allocated $10,000,000 to a property, you may have to defease $12,500,000 of the total principal of the loan to release that property.
