Tuesday, May 6, 2008

HFF, Inc. Reports First Quarter 2008 Financial and Transaction Production Results

PITTSBURGH--(BUSINESS WIRE) -- HFF, Inc. (the Company), through its Operating Partnerships, Holliday Fenoglio Fowler, L.P. (HFF LP) and HFF Securities L.P. (HFF Securities), is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry based on transaction volume and is one of the largest full-service commercial real estate financial intermediaries in the country.

(For a detailed copy of the company’s news release, please contact John H. Pelusi Jr., (top right photo) Chief Executive Officer, jpelusi@hfflp.com, 412 281 8714, or Gregory R. Conley, Chief Financial Officer, 412 281 8714, gconley@hfflp.com, or Myra F.Moren, Director, Investor Relations, 713 852 3500, mmoren@hfflp.com, or Laurie Fish McDowell, HFF Associate Director, Marketing, 617 338 0990, lfish@hfflp.com.)

Consolidated EarningsFirst Quarter Highlights

In the face of the continuing difficult and challenging credit and liquidity conditions in all global capital markets, especially in the U.S. capital markets, the Company generated first quarter total revenue of $32.2 million compared to $55.5 million in the first quarter of 2007, a decrease of $23.4 million or 42.1%.
The company had an operating loss of $1.5 million for the first quarter of 2008 compared to an operating profit of $7.7 million in the comparable period of 2007, a decrease of approximately $9.3 million, or 119.9%.

This decrease in operating income is attributable to the decrease in production volumes and related revenue from the prior year in several of the Company's capital markets services platforms. Offsetting this decrease in revenue of approximately $23.4 million is a reduction in total operating expenses of approximately $14.1 million in the first quarter 2008 compared to the same period of the prior year.

This reduction in operating expenses is a result of a decrease in cost of services of approximately $11.0 million which is primarily due to the decrease in commissions and other incentive compensation directly related to the lower capital markets services revenues and a decrease in operating, administrative and other expenses (including depreciation and amortization) of $3.1 million, which is primarily related to a reduction in other performance based accruals and depreciation and amortization.

The Company reported a net loss for the first quarter 2008 of approximately $1.0 million compared with net income of $3.2 million for the same period in 2007.

The Company's net loss reported for the first quarter 2008 is not directly comparable to the net income reported for the first quarter 2007 primarily due to the minority interest adjustment, which reflects HFF Holdings, LLC's (Holdings) ownership interest in the Operating Partnerships as well as the change in income tax structure following the reorganization transactions and initial public offering on January 30, 2007.

This first quarter 2008 net loss includes a $0.1 million adjustment to reflect the impact of the minority ownership interest of Holdings in the Operating Partnerships for the entire three months of the quarter.

The Company made an adjustment of $3.9 million in the first quarter 2007 to reflect the minority ownership interest of Holdings in the Operating Partnerships for two months of the quarter subsequent to the initial public offering on January 30, 2007.

Prior to January 30, 2007, Holdings owned 100% of the Operating Partnerships and, accordingly, there were no adjustments to reflect the impact of minority ownership interests or associated corporate federal and state income taxes for the period of January 1, 2007 through January 30, 2007.

Net loss attributable to Class A common stockholders for the first quarter 2008 was $0.06 per diluted share.

HFF Arranges $7.21M Refinancing for Town & Country Shopping Center in Corpus Christi, TX

HOUSTON, TX, May 6, 2008– The Houston office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it arranged a $7.21 million refinancing for Town & Country Shopping Center, a 94,736-square-foot retail center in Corpus Christi, Texas.

HFF managing director Tucker Knight (top right photo) and real estate analyst Steve Gautier worked exclusively on behalf of the borrower, Fowler Property Acquisitions to secure the two-year, 6.5% fixed-rate loan with The Mission Bank to refinance existing debt.

Fowler Property Acquisitions, LLC is a privately capitalized real estate investment firm focused on the acquisition of multifamily, industrial, office, retail and land properties in select markets throughout the Western United States.

Originally built in 1958 and renovated in 2007, Town & Country Shopping Center is 62% leased to tenants including TCBY, Subway, Schlotsky’s and Hollywood Video. The property is situated on a 6.2-acre site at 4250 South Alameda Street close to Ocean Drive and the Bay of Corpus Christi.


Laurie Fish McDowell
HFF Associate Director, Marketing
One Post Office Square, Suite 3500
Boston, MA 02109
tel 617.338.0990
fax 617.338.2150

Tucker S. Knight
HFF Managing Director
713 852 3500

Brigham Moore Attains Highest Jury Award for Eminent Domain Valuation in Florida Circuit Court

Jury awards Keystone Coal $67 million in case with Jaxport

JACKSONVILLE, FL – In an eminent domain proceeding that began just after Florida tightened its eminent domain laws, Brigham Moore LLP, Florida’s largest private property rights defense firm, has attained a $67 million jury verdict for its client, Keystone Coal.

This is the largest eminent domain jury verdict ever in circuit court in the state of Florida, according to the law firm.

For the past few years, Keystone has been involved in a hotly-disputed eminent domain battle with the Jacksonville Port Authority (Jaxport), which is conducting a slow take of Keystone’s 70-acre property along the St. Johns River.
Keystone intended to develop it into a large-scale coal/bulk cargo terminal. Although Keystone challenged the taking, the courts decided to allow it in 2006.

On April 21, 2008 a jury trial began to determine the value of the property. Jaxport valued the property at $17 million. In a slow take eminent domain proceeding, the condemning authority has the right to wait until a valuation to make a final decision about whether to take the property.

For eight years, Tom Scholl, (top right photo) a third generation coal man who once worked in the mines of West Virginia, sought to secure property along the St. Johns River in Jacksonville to develop a deep water bulk cargo depot for Keystone Coal and affiliated companies to offload coal, coke and anthracite from sources throughout the world.

Prior to the filing of Jaxport’s lawsuit, Scholl secured a letter of commitment to purchase the property in April of 2005 for $8 million. Jaxport competed with Scholl in free enterprise and had passed on purchasing this property twice before.

Scholl paid the asking price of the seller and knew it to be a bargain. He was willing to accept the environmental risk associated with a former 12-acre landfill, but saw great worth in the property as an intermodal gateway for coal that others in the marketplace did not see at the time.

After Scholl’s purchase, Jaxport entered into discussions with a competing coal interest, Drummond Coal Company, to negotiate a long term lease on the Keystone property with a minimum guarantee of $11 million annual rent. However, pretrial rulings of the trial judge prevented the jury from hearing any evidence of the income to be made by Jaxport, leaving the attorneys who tried the case to prove the measure of full compensation through comparable sales alone.

The problem was, there weren’t any properties as strategically located as the Keystone property from which to compare for valuation purposes, although the appraisers went beyond Jacksonville to Charleston, S.C., Savannah, Ga. and Tampa, Fl. to locate sales. Jaxport’s lawyers argued heavily that Scholl’s bargain price paid in 2005 was the market value as of 2008.

Keystone’s lawyers Andrew Prince Brigham,(top left photo) Jackson Bowman, (photo at right below Tom Scholl) and Mark Natirboff (photo at right below Jackson Bowman) of Brigham Moore LLP prevailed in having the jury consider Keystone’s appraisal of the property at $66 million and Keystone owner Tom Scholl’s opinion of value at $80 million. (Ferry service at Jacksonville Port Authority photo at left)

“In many ways, litigating with a port is tougher than fighting city hall,” said Brigham, who added, “a jury’s determination of full compensation acts to level the playing field between government and the individual.”

When asked how the case was won, Brigham said that “Jaxport can take private property through eminent domain, but it does not have the right to take an owner’s bargain or the economic advantage away secured by the owner in free enterprise. The jury understood that and recognized the tremendous worth of the property.”

“To this day, it is still Tom Scholl’s desire to keep the property and develop it into a productive coal/bulk cargo terminal,” added Brigham.

Brigham Moore(www.brighammoore.com) is Florida's leading statewide eminent domain and property rights defense firm with offices in Jacksonville, Miami/Coral Gables, West Palm Beach, Sarasota and St. Petersburg.

Since its founding more than 40 years ago, Brigham Moore has built a statewide and national reputation for zealous protection of property rights and for skillful advocacy in pursuit of constitutional full compensation. (Photo at right below shows the 754-acre Blount Island Marine Terminal, Jaxport's largest container facility.


Sue Siebert or
Don Silver of Boardroom Communications,
954-370-8999 or
Chief Operating Officer
Boardroom Communications, Inc.
1776 N. Pine Island Rd., Suite 320
Plantation, FL 33322
Voice: (954)370-8999
Fax: (954)370-8892
Cell: (954)629-7523

Major Shopping Center Site To Be Sold in Greensboro, NC

GREENSBORO, N.C., PRNewswire/ -- The Board of Directors of Hedgecock Builders Supply Company of Greensboro has declared the former Hedgecock Builders Supply Company site (above photo) at Market Street and Guilford College Road to be sold.

Hedgecock Builders Supply Company operated on this site since the 1950s.

After many decades of success at this location, they have closed the business and are now ready to sell this important commercial property.

The property consists of 37.333+/-Acres which will be offered in two parcels and as a whole.This property represents one of the largest shopping center development sites in western Greensboro.

It is strategically located near the new Honda Jet facility, (photo at left below) the FedEx hub (photo at right) and the Piedmont Triad International Airport.(top left photo)

It is currently zoned CU-SC and RM-12, which allows for shopping center development in addition to high density residential.

The firm of Iron Horse Auction Company, Inc. of Rockingham, NC has been commissioned to conduct the offering, which shall be a Sealed Bid Auction.The bids will be received until Wednesday, June 4th at 2pm.

Thomas McInnis of Iron Horse Auction Company, Inc. states: "This property represents an outstanding development opportunity due to the size of the tract. It is one of the largest development sites in the western Greensboro & airport area. This property is ripe for a variety of exciting ventures. We invite all interested parties to inspect and participate in this important event."


Thomas McInnis of Iron Horse Auction Company, Inc.,