Have you ever gone to one of those escape rooms where you get locked in a room and have to figure out a hidden set of codes to get out? I am not sure I would personally like to voluntarily be locked up for any reason!

If you like these kinds of challenges – and you have springing cash management in your loan documents (and about 80% of new CMBS loans have this feature) – you are in luck! You may get to experience the escape room.

Once your cash management is sprung, you will need to unlock many secret codes to get out of cash management.  Sometimes the reason cash management has been sprung is because of a calculation performed by the servicer and all at the servicer’s discretion; not necessarily based on the reality of your property’s performance. In those instances, the codes to get out of cash management will be particularly hard to find.

And, unlike the real escape room, there is no time limit on trying to figure out the secret codes. The longer it takes, the better for the servicer.