1st Service Solutions Facilitates $11.9 Million Discount Payoff Agreement...

1st Service Solutions Facilitates $11.9 Million Discount Payoff Agreement on Distressed CMBS Loan for Major Texas Office Building

Dallas (November 1, 2010) - 1st Service Solutions, the first firm dedicated to serving as a borrower advocate in loan restructuring and assumptions, recently orchestrated an $11.9 million discount payoff (DPO) agreement on the commercial mortgage-backed securities (CMBS) loan for the owner of a 225,000 square-foot office building located in Texas.

The DPO agreement reduced the amount of the borrower's underperforming CMBS loan by approximately 56 percent, Down from the original loan amount of $27 million.  It also resulted in a third-party purchase and closing of the building, simultaneous with the borrower's DPO.  The 1st Service Solutions team led by managing partner Brock Andrus, who based in the firm's Grapevine, Texas office.

"Discounted payoffs are increasingly more prevalent today as special servicers have become more willing to work with borrowers to find alternatives to forclosure," notes Andrus.

"As an industry trend, the growing number of DPOs represents an encouraging step in the market's recovery," adds Andrus. "Servicers can liquidate troubled assets and borrowers can keep and manage their own property, which is a win-win deal for both sides."

With 15 years of experience in real estate and private equity industries, Brock Andrus has held positions at various real estate companies, including FINOVA Realty Capital, Bridge Realty Capital, and Partners Group USA, as well as developed a proprietary residential lending product.  He also has significant experience in the financial services industry, having opened the U.S. office of Swiss-based private equity group with partners of the firm, and founded private equity advisory firm.

Andrus uses his combined experience in financing a portfolio management to analyze, negotiate and recommend servicing actions effecting collateral value of loan assets.

About 1st Service Solutions

Founded in 2005, 1st Service Solutions was the first firm dedicated to serving as a borrower advocate in loan restructuring and assumptions.  Its visionary leaders, with deep experience in the servicing industry, recognized the need for a borrower advocate, even before the collapse of the commercial real estate market.  Since its creation, 1st Service Solutions has resolved more than $3 billion in loans for its clients.  For more information and documentation, please visit 1st Service Solutions Web Site.