Tuesday, August 19, 2008

S&P: Report Discusses The Rough Road And Tough Choices Ahead For Financial Institutions

NEW YORK Aug. 19, 2008--According to a panel of credit analysts at Standard & Poor's Ratings Services, financial institutions face more credit and liquidity risks that will require them to make some tough choices as the downturn evolves.

Even though government support and sovereign wealth funds' cash infusions have helped put the industry on a path to recovery, the rebound will be slow and painful.

This is the consensus that emerged in the course of roundtable discussions conducted on June 23 and June 25, 2008, as reported in "For Financial Institutions, More Rough Road And Tough Choices Are Ahead," published earlier today on RatingsDirect.

Capital markets have regained some life, but most U.S. and European banks maintain a heightened sense of alert as difficult business conditions and substantial write-downs continue to weigh on financial performance. Analysts agreed that a return to a stable banking industry outlook is at least a year away in the U.S.

"We haven't seen in any previous credit cycle downturn as much capital raising to match potential losses, and that's a positive balancing effect," said Rodrigo Quintanilla, Standard & Poor's head of North American bank ratings.

"How long this will go on and how much of this capital-raising capability smaller banks will have available to them are questions that remain unanswered. That said, we probably will see the lagging effect of consumer lending and commercial real estate delinquency flowing well into 2009."

Of Standard & Poor's 50 top-rated North American financial institutions, 22 had a negative outlook as of June 30, a figure that is the highest proportion of negative outlooks in top-tier mature-market financial groups in the past 15 years.

(Federal Reserve Bank building, Washington, DC, bottom right photo)

Media Contact: Jeff Sexton, New York, (1) 212-438-3448 jeff_sexton@standardandpoors.com

Analyst Contacts:

Jayan U Dhru, New York (1) 212-438-7276
Tanya Azarchs, New York (1) 212-438-7365
Scott Bugie, Paris (33) 1-4420-6680
Rodrigo Quintanilla, New York (1) 212-438-3090
Michael Zlotnik, Frankfurt (49) 69-33-999-150
Gary R Arne, New York (1) 212-438-5034

Richmond Industrial Market Shows Strong Leasing Demand

RICHMOND, VA--A stark differential in the key industrial statistical categories emerged this quarter in the Richmond market, according to Perry H. Moss, (top right photo) CCIM, MBA of GVA Advantis.

On one hand was a fantastic leasing trend and a nice fall in the warehouse/distribution/manufacturing segment vacancy rate. On the other, the sales market is having a rough time and the flex segment sees its usual steady performance stumble moderately.

Market Statistics & Summary

A second look at the first chart (at left) is very much warranted.

The leasing market, buoyed by several massive leases in the distribution segment has launched the year over year trend into greatly positive territory.

While this level of trend growth cannot realistically be expected to continue, it none the less, has given a strong statement to the stability and resourcefulness of the market. Flexible lease terms and landlord concessions helped pave the way for the strong leasing demand.

There was a bit of a trade-off with the flex market as that segment has an office/retail component which is more sensitive to immediate economic changes.

Flex spaces also tend to attract more smaller and local firms which cannot afford to risk the capital and don’t have the resources of major corporations.

The sales market fell sharply from last year as the scarceness of financing coupled with the economy revealed its darker side.

For more information, please contact Perry H. Moss, CCIM, Tel 804.672.4248, pmoss@gvaadvantis.com
GVA Advantis, 707 E. Main Street, Suite 1400, Richmond, Virginia 23219 gvaadvantis.com

Arbor Closes $13M Fannie Mae DUS® Loan for The Meadows in Montgomery, AL

UNIONDALE, NY (Aug. 19, 2008) Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $13,000,000 loan under the Fannie Mae DUS® product line to refinance the 200-unit complex known as The Meadows (top left photo) in Montgomery, AL.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 5.78 percent. The loan was originated by Ronen Abergel, (bottom right photo) Director, in Arbor’s full-service New York City, NY lending office.

“We committed to a rate in two weeks by executing an early rate lock agreement with the borrower. In addition, we closed in 29 days with a 5% increase in proceeds over initial screening,” said Abergel. “In light of the current volatility in the market, Arbor’s execution of this transaction exceeded the borrower’s expectations.”


Ingrid Principe, Arbor Commercial Funding, iprincipe@arbor.com

Daryl Carter-Guided Trust Buys 208 Acres in Marion County, FL for $602,319

ORLANDO, FL--Daryl M. Carter, Trustee of Carter-Marion 211 NE 46th Street Land Trust has purchased 208± acres in east Marion County from Terrapointe LLC for $602,319.85 cash.

The property is located just east of CR 314 and has 4,770± feet of frontage on the north and south sides of NE 46th Street and 150± feet of frontage on the south side of NE 52nd Place Road.

Preston Hage and Patrick Chisholm with Maury L. Carter & Associates, Inc. represented the Buyer. Anne Barnett and Sondra Blake with Southern Property Services, Inc. represented the Seller.


Joan M. Fisher, Administrative Assistant, Maury L. Carter & Associates, Inc., 3333 S. Orange Avenue, Suite 200, Orlando, FL 32806-8500. (407) 581-6207 direct. (407) 422-3144 office.
(407) 422-3155 fax.


NAI Realvest Negotiates New Long-Term Lease of 26,680 SF for IDS Sports Expansion in Oviedo, FL

ORLANDO, FL – NAI Realvest has negotiated a new long-term lease agreement for 26,680 square feet of industrial space at 5707 Dot Com Ct. in Oviedo.

Paul P. Partyka, (top right photo) principal and managing partner at NAI Realvest, negotiated the lease agreement representing the tenant, Supplement Synergy d/b/a IDS Sports, a body-building supplements company. Ganesh Holdings of Oviedo is the landlord.

Partyka said IDS Sports recently had explosive growth which is expected to continue for the next several years and the increased space is needed for its anticipated new business. IDS previously occupied a smaller space in Seminole County.

For more information, please contact:

Paul P. Partyka, Principal/Managing Partner NAI Realvest 407-875-9989 ppartyka@realvest.com;

Janice Paiano, Director of Marketing, NAI Realvest 407-875-9989 jpaiano@realvest.com

Beth Payan or Larry Vershel, Larry Vershel Communications, Inc. 407-644-4142

Davidson Hotel Company Announces Two New Management Agreements

Company Will Operate Sheraton Orlando-Downtown Hotel and Miami Mart Airport Hotel

MEMPHIS, TN—Davidson Hotel Company, one of the nation’s largest hotel management companies, today announced that it now operates two additional Florida hotels, the 341-room Sheraton Orlando-Downtown Hotel(top right photo) and the 332-room Miami Mart Airport Hotel.(bottom left photo).

The properties are owned by CF Hospitality, Inc. and SF Hotels, Inc., both privately-held Florida companies.

“With the addition of these two large, full-service hotels, Davidson now has a portfolio which includes five upscale hotels in Florida,” said John A. Belden, (middle left photo) Davidson’s president and chief executive officer.

“We are attracted to the strong demographics in both Orlando and Miami, and following the implementation of our proprietary marketing and management systems, we believe these hotels will quickly gain strong market share and substantially increased value for ownership.”

Located in the Blue Lagoon business district of Miami, the 12-story Miami Mart Airport Hotel adjoins the Miami International Merchandise Mart and is within minutes of such area attractions as South Beach, Bayside Marketplace, The Venetian Pool, The Biltmore, Biscayne National Park, and family-themed locales like Jungle Island, Miami Metrozoo, and Monkey Jungle.

“These two properties reflect Davidson’s on-going strategy to augment its overall growth through third-party management,” said Steven A. Margol, (bottom right photo) Davidson’s executive vice president of Business Development.

“We continue to seek out opportunities where we can apply our skills to help owners unlock new or unrealized value in their assets. This is particularly important in today’s economic conditions.”

Additional information on Davidson may be found at the company’s Web site, http://www.davidsonhotels.com/onhotels.com/.


Julie Tullbane, Daly Gray Public Relations, T 703-435-6293, F 703-435-6297 julie@dalygray.com

Cyndi Norwood Davidson Hotel Company (901) 821-4155 cnorwood@davidsonhotels.com )

Jerry Daly, Chris Daly (media, Daly Gray Public Relations, (703) 435-6293 jerry@dalygray.com

Orlando-based Terry's Electric, Inc. ranked as Florida's sixth largest electrical contractor

ORLANDO, FL – Terry’s Electric, Inc. is prominently ranked as Florida’s sixth largest electrical contractor according to the 2008 “Top Specialty Contractors” issue of Southeast Construction magazine published in August.

The Orlando-based company reported 2007 revenues of $49.9 million. The prestigious survey of trade contractors includes concrete, electrical, masonry, mechanical, steel and numerous other specialties.

Founded in 1979 by B. Terence “Terry” and Jeanne Quigley, (top right photo) Terry’s Electric, Inc. has experienced steady growth and nationally ranks among Engineering News-Record’s Top 600 Specialty Contractors. Originally established to serve the local community following the opening of nearby Walt Disney World, Orlando-based Terry’s Electric also operates branch offices in Tampa and West Palm Beach.

Terry’s Electric, Inc.’s headquarters is located at 600 N. Thacker Avenue, Suite A, Kissimmee, FL 34741, telephone (407) 572-2100.

Contact: Kenneth H. Cristol 407-774-2515

Marcus & Millichap Lists $10M Class A Industrial Warehouse in South Holland, IL

SOUTH HOLLAND, IL– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has retained the exclusive listing for a new state-of-the-art 200,000-square foot Class A warehouse and distribution facility in South Holland leased to Liberty Furniture Industries. The listing price is $10 million.

Howard Wiese, (top left photo) a vice president investments and senior director of Marcus & Millichap’s National Office and Industrial Properties Group in Chicago, is representing the seller, Hamilton Partners.

“This offering presents the investor with an opportunity to acquire a 2007-constructed institutional-quality distribution facility strategically located in Chicago’s south suburbs,” says Wiese.

Located at 555 West 167th St., the building is situated on 10.97 acres and features easy access to Chicago’s central business district and all major airports. Interstates 80, 94, 294 and 57 are less than five minutes away.

“A close-in location is critical to many distributors who need to service city-based customers,” explains Wiese.

The building is leased to Liberty Furniture Industries, Inc., until April 2014 with annual increases in base rent of approximately 2.5 percent. The capitalization rate during the remaining lease term averages approximately 7.5 percent.
Press Contact: Stacey Corso
Communications Department
(925) 953-1716

HFF Atlanta investment sales team closes sale of Lanier Commons in Cumming, GA

ATLANTA, GA – An HFF (Holliday Fenoglio Fowler, L.P.) investment sales team based in Atlanta has closed the sale of Lanier Commons, (top right photo) a 74,471-square-foot, grocery-anchored retail center in the Atlanta suburb of Cumming, Georgia.

Varner Properties, Inc. was represented by senior managing director Whitney Knoll, (top left photo) director Jim Hamilton (middle right photo) and associate director Kevin Hurley who are former members of the Staubach Capital Markets retail investment sales team that joined HFF in May.

The team began marketing Lanier Commons while with Staubach. Mimms Enterprises purchased the property for $12.99 million.

Lanier Commons is located at 3480 Keith Bridge Road one mile east of State Route 400 and one mile west of Lake Lanier, a top ranked national recreational lake. The property is approximately 30 miles north of downtown Atlanta.

Completed in 2004, Lanier Commons is currently 94% occupied to tenants including anchor tenant Publix, as well as Hollywood Video, Hair Cuttery and Johnny’s New York Style Pizza.

Varner Properties, Inc. is a well-known long standing real estate developer in Atlanta, Georgia.

Mimms Enterprises is a fourth generation family-owned commercial real estate company based in Roswell, Georgia, with properties in Georgia, Florida and Tennessee. Mimms specializes in the construction, redevelopment, leasing and management of retail, industrial and office properties. The company’s portfolio totals 6.1 million square feet with approximately 575 tenants.


Whitney Knoll, HFF Senior Managing Director, 404 832 8460, wknoll@hfflp.com

Laurie Fish McDowell, HFF Associate Director, Marketing, 617 338 0990, lmcdowell@hfflp.com

Parkway Properties Announces Sale of Wachovia Plaza in St. Petersburg, FL

JACKSON, MS /PRNewswire-FirstCall/ -- Parkway Properties, Inc. (NYSE:PKY) announced the closing of the fee simple sale of the Wachovia Plaza (top right photo) office property, located in the CBD of St. Petersburg, Florida, and the assignment of the leasehold interest in 240 parking spaces in the adjacent Mid-Core Garage owned by the City of St. Petersburg.

Wachovia Plaza is a 186,000 square foot property that was 97.8% occupied as of August 1, 2008. The gross sales price was $26.0 million and represents a capitalization rate of approximately 6.8% on twelve months projected cash net operating income from the date of closing.

Parkway received net cash proceeds from the sale of approximately $25.0 million, which were used to reduce amounts outstanding under the Company's line of credit. The Company will recognize a gain on the sale of approximately $9.3 million in the third quarter of 2008.

CONTACT: Steven G. Rogers, President & Chief Executive Officer, or J.Mitchell Collins, Chief Financial Officer, +1-601-948-4091, both of Parkway Properties, Inc.Web site: http://www.pky.com/