GMACCM: Port Authority, Silverstein Reach Pact

The Port Authority of New York and New Jersey and Larry Silverstein have come to an agreement that will allow the New York City developer to repay a $563 million commercial mortgage loan that GMAC Commercial Mortgage Corp. made in 2001 to partly finance Mr. Silverstein's purchase of a 99-year lease interest in the World Trade Center, according to GMACCM.The loan was made to World Trade Center Properties, an affiliate of Silverstein Properties, and has been securitized into the commercial mortgage-backed securities market, with GMACCM retaining a portion of the loan. "The agreement to pay off GMACCM is subject to other conditions," the Horsham, Pa.-based commercial mortgage lender said. "First, an agreement between the Port Authority and Westfield must be reached regarding the future of the retail space. Second, the bondholders of the GMACCM loan will have to consent to the payoff." The payoff could occur as early as December, the company said. As of MortgageWire's deadline, a spokesman for Mr. Silverstein was not available for comment, and calls placed to the Port Authority had not been returned.