Thursday, November 6, 2008

HFF arranges $9.74M in financing for two office towers in Oklahoma City

HOUSTON, TX – The Houston office of HFF (Holliday Fenoglio Fowler, L.P.) has secured $9.74 million in financing for Atrium Towers, (top left photo) twin six-story office buildings totaling 156,106 square feet in Oklahoma City, Oklahoma.

Working exclusively on behalf of Principle Equity Management, HFF managing director Tucker Knight (middle right photo) and real estate analyst Brad Ballard placed the seven-year fixed-rate loan with ViewPoint Bank. Loan proceeds were used to acquire the property.

Atrium Towers is located just northwest of downtown Oklahoma City near the intersection of Interstate 44 and Centennial Expressway and is presently 95% occupied.

“Closing this transaction in the midst of the current financial and credit crisis is a testament to the quality of location, demographics, sponsorship and the overall marketability of Atrium Towers,” said Ballard.

“Considering the difficulty of financing a tenant in common (TIC) transaction in today’s world, we commend ViewPoint Bank for diligently working with us to bring this closing to fruition,” added Knight.

Principle Equity is a fully integrated real estate investment firm, which provides acquisition, asset management, leasing and disposition services to passive investors seeking opportunities to invest in institutional quality real estate.

Currently, the company manages approximately 2.17 million square feet of commercial real estate with an average occupancy rate of 92% and a capitalized asset value exceeding $350 million.

HFF (NYSE: HF) operates out of 18 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry.

HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, note sales and note sale advisory services and commercial loan servicing.


Tucker S. Knight, HFF Managing Director, 713 852 3500,
Laurie Fish McDowell, HFF Associate Director, Marketing, 617 338 0990,

HFF arranges $7.2M financing for Summit Medical Arts Building in central New Jersey

FLORHAM PARK, NJ – The New Jersey office of HFF (Holliday Fenoglio Fowler, L.P.) has arranged $7.2 million in financing for Summit Medical Arts Building, (top right photo) a 50,728-square-foot, Class A medical office building in Hillsborough, New Jersey.

Working exclusively on behalf of Summit Beacon Realty Associates I, LLC, HFF senior managing director Tony Cuccia (bottom left photo) placed the five-year, fixed-rate first mortgage with TriState Capital Bank of Lawrenceville, New Jersey. Summit Beacon Realty Associates I, LLC is a joint venture between Summit Associates Inc. and The Beacon Medical Realty Group.

Summit Associates Inc. and Beacon Medical Realty Group are New Jersey-based real estate developers that have built, as well as own and manage over 4.5 million square feet of office, hi-tech and distribution space throughout the state.
The Beacon Medical Realty Group has been active in the ownership and leasing of medical office facilities throughout New Jersey, Pennsylvania and New York

The Summit Beacon Medical Arts Building is located at 105 Raider Boulevard in Hillsborough’s Route 206 corridor, approximately 40 miles west of New York City. The property has 12 office suites that are occupied by medical and professional tenants including University Radiology Group, ID Care Associates and Skin Laser and Surgery Specialists of NY and NJ.


Anthony M. Cuccia, HFF Senior Managing Director, 973 549 2000,
Laurie Fish McDowell, HFF Associate Director, Marketing, 617 338 0990,

Grubb-Ellis Reports Third-Quarter Net Loss of $44M

SANTA ANA, CA, Nov. 6 /PRNewswire-FirstCall/ -- Grubb & Ellis Company (NYSE:GBE), a leading real estate services and investment firm, today reported revenue of $159.2 million for the third quarter of 2008.

Revenue for the nine-month period ended September 30, 2008 was $486.8 million.

The company reported a net loss of $44.0 million, or $0.69 per share, for the third quarter. The net loss for the first nine months of 2008 was $55.0 million, or $0.87 per share.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter of 2008 was negative $56.3 million, compared with EBITDA for the combined companies of $17.3 million in the same period a year ago. For the first nine months of 2008, the company reported negative EBITDA of $48.3 million.

"Given the difficult market conditions our underlying operations continued to perform well and we have clearly benefited from the impacts of cost reductions and operational changes implemented post merger," said interim Chief Executive Officer Gary Hunt.(top right photo)

"We continue to identify synergies and eliminate redundancies in an effort to maximize cost efficiencies. At the same time, we are taking advantage of the current environment to recruit high-quality professionals who understand that our expanded platform will create additional revenue opportunities."

Hunt added, "We are also capitalizing on the increasing trend of corporate owners and users to outsource their real estate services needs. We secured several important new business wins during the period, many of which would not have been possible without the restructuring resulting from the merger."

For a complete copy of the company's news release showing third-quarter numbers, please contact Janice McDill of Grubb & Ellis Company, +1-312-698-6707,
Web site:

About 80% of Conventional Lenders Are Out of Market, Says RECI

CHICAGO, IL-- Market gridlock is the order of the day. Funding sources retreat, waiting for any signs of the bottom. While many pundits advise staying on the sidelines, brave investors are already hunting for opportunities.

Despite liquidity concerns, mortgage pricing still remains some whatc ompetitive compared to other business sectors seeking debt. Shorter-term, fixed-rate loans of five years are currently priced starting at 6.75% or more indexed to treasuries.

Commercial (non-multifamily) floating-rate loans are priced from 6%. As for the more ubiquitous ten-year permanent loan, rates range from 7% or more. Yet within these nearly frozen capital markets, some signs of life are clearly evident.

Aaron Gruen, (top right photo) member of the Real Estate Capital Institute(r) advisory board, points out, "The United States will have a fresh President and Congress taking action to prime the economic pumps of consumers and businesses until the economy starts again to generate growth, resulting in fewer retai lbankruptcies and reduced rate of unemployment."

He adds "Increased confidence will help the real estate capital markets to start functioning."

Market Trends

As "cash is king," the following capital market trends are noticeable:

* All sectors of the industry are restructuring fee and profit expectations, expecting to provide more services at lower costs.

* Developers shift to build-to-suit and consulting assignments forpublic and private construction projects.

* Major brokerage houses are retooling to offer asset disposition assignments targeting financial institutions and governmental bodies.

* Few, if any, investors and capital sources use income growth rates; instead, forecasting flat or declines income rates. As such, aggressive expense reductions are expected including labor and operating costs.

* Wide permanent mortgage pricing gaps still exist between Agencies and conventional lenders. For instance, apartment properties enjoy pricing differentials of 100 basis points or more on 10-year term loans

* About 80% of the conventional lenders are out of the market with funding products. However, "spot" funds sporadically surface as life companies receive small allocations from time to time.

* Loans of $50 million or less are still financeable. However, larger loans are nearly non-existent as lenders are locked out of the syndication market.

* Leverage remains below 65% as mortgage rates are often more expensive than equity yields.
The Real Estate Capital Institute(r), 3517 West Arthington Street, Chicago, Illinois USA 60624. Nat Zvislo, Research Director, Toll Free 800-994-RECI (7324),

Westin Hotels & Resorts Continues Record-Breaking Growth in Asia Pacific

The Westin Hotel Sendai, slated to open in 2010, will Refresh and Renew Visitors in a Prime Downtown Location Near Businesses, Shopping and Dining

WHITE PLAINS, NY--Starwood Hotels & Resorts Worldwide, Inc (NYSE: HOT) continues its industry leading expansion in Asia Pacific, announcing an agreement with Mori Trust Co., Ltd. to open a new-build Westin hotel in Sendai, Japan.

Scheduled to open in 2010, The Westin Sendai (top right photo) will occupy a gleaming, 37-story tower at the heart of the city’s thriving business district. The 287-room hotel will inspire relaxation and renewal in a sophisticated and elegant setting, enhanced by the full suite of Westin signature amenities.

The Westin Sendai will be ideally situated in the city’s lively downtown on Higashi-Nibandori Street, within walking distance to the offices of several large corporations. The hotel will anchor a highly anticipated, mixed-use development located in what will be the tallest building in the northern Kanto region.

Known for its beautiful scenery, tree-lined streets and museums, the fast-growing city of Sendai also offers visitors a wide selection of world-class restaurants, sleek shopping malls, arcades and traditional markets. Leading area attractions include the many islands of Matsushima Bay, the Zaou Mountains, hot springs and the annual Sendai Tanabata Festival

“We are thrilled that our Westin brand will enter the city of Sendai, Tohoku’s economic and political hub,’” said Lothar Pehl, (top left photo) Regional Vice President, Starwood Hotels & Resorts, Japan, Korea and Guam Region.

“Hailed for its core brand initiatives such as the Westin Heavenly Bed®, Westin Heavenly Bath®, Breathe Westin and Service Express, Westin will form a welcome and refreshing addition to Sendai’s hotel market. We are proud to work with Mori Trust Co., Ltd. who shares our vision to connect the community of Sendai with its visitors at this unique landmark property.”

Starwood currently operates five Westin hotels in Japan, as well as seven Sheraton properties. The company expects to introduce new W, Westin, St Regis and Sheraton hotels in Japan in the next several years.

“The Westin Sendai will not only expand Starwood’s reach in Japan, but also inspire personal renewal in one of the most prominent developments in the scenic city of Sendai,” said Sue Brush, (middle right photo) Senior Vice President, Westin Hotels & Resorts. “Westin provides a sophisticated, refreshing atmosphere and thoughtfully designed amenities and services designed to restore mind and body.”

Drawing more than 57 million tourists in 2007, Sendai is the capital of the Miyagi prefecture and the largest city in Tohoku, the northeastern region of Japan. The city is approximately one hour and 40 minutes from Tokyo by Bullet train, and easily accessible via direct flights from top destinations in Asia Pacific including Beijing and Shanghai, Taipei, Seoul, and Guam.


Hwee-Peng Yeo
Director, Corporate Communications
Starwood Asia Pacific Hotels & Resorts Ltd
9 Temasek Boulevard, Suntec City Tower 2
#24-02, Singapore 038989

Tel : +65 6335 4837; Cell : +65 9768 6087; +65 9248 0424
Fax : +65 6335 4820;