Friday, December 19, 2008

GE Capital Corp. Outlook To Negative On 2009 Earnings Prospects; Ratings Affirmed

NEW YORK, NY--Standard & Poor's Ratings Services has revised the outlook on General Electric Capital Corp. (GECC) and all related entities to negative from stable and affirmed the 'AAA' long-term and 'A-1+' short-term counterparty credit ratings.

The outlook revision on GECC's parent, General Electric Co. (GE) and accordingly on GECC, reflect in part concerns relating to GECC. (Please see the related release on GE, also published today.)

"GECC's earnings deterioration in 2009 and 2010 could be greater than we previously assumed," said Standard & Poor's credit analyst Scott Sprinzen (top right photo).
"The outlook revision reflects the continuing risks posed by GECC's reliance on confidence-sensitive wholesale funding, despite the benefits of temporary U.S. government support programs and of management's ongoing efforts to reduce GECC's reliance on commercial paper, strengthen near-term liquidity, downsize the asset base, and strengthen capital.

'The outlook on GE and GECC is negative, indicating that we believe there is at least a one-in-three possibility of a downgrade within the next two years.

"We believe GECC will experience significantly higher credit costs in 2009 compared to those in 2008 and sharply lower earnings from its real estate operations.

If we thought net earnings in 2009 would be significantly lower than management's current forecast (i.e., net income of $5 billion), we could reassess the rating.

Our view of GECC's credit profile would be adversely affected if, in our opinion, GECC were not on track toward meeting management's stated targets for, increased liquidity, reduced financial leverage and reduced reliance on commercial paper.

Conversely, GECC's credit profile would benefit if its earnings recovered significantly in conjunction with demonstrating progress in lowering the risk of its funding and capitalization.

Media Contact:
Jeff Sexton, New York (1) 212.438.3448,

Analyst Contacts:
Scott Sprinzen, New York (1) 212.438.7812
Rian M Pressman, CFA, New York (1) 212.438.2574

CB Richard Ellis Represents Stiles in $17.75M Sale of Arbor Square at Connerton in Tampa, FL Suburb

MIAMI, FL – CB Richard Ellis, the world's leading commercial real estate services provider, arranged the $17.75 million sale of Arbor Square at Connerton, (top right photo) an 80,000-sq.-ft. shopping center located on U.S. Highway 41 in Land O'Lakes, Fla., 20 miles north of downtown Tampa.

Mark Shellabarger, (middle left photo) senior vice president with the Tampa office of CB Richard Ellis, and Dennis Carson, (bottom right photo) senior vice president with CB Richard Ellis' Miami office, exclusively represented the seller, an affiliate of Stiles Corporation, based in Ft. Lauderdale, Fla.

Stiles Corporation is a full-service commercial real estate development and investment company responsible for more than 37 million square feet of office, industrial, retail, and mixed-use residential projects throughout the southeastern United States.
The buyer was affiliated with Tatone Properties, a private investment firm with holdings in Florida and Canada.

Arbor Square at Connerton was completed in 2007 and features a new 45,600-sq.-ft. Publix grocery store, a SunTrust Bank located on an outparcel, and nearly 34,000 sq. ft. of restaurant and retail space.

"Arbor Square benefits from limited direct competition and serves a large trade area that includes both well established and new communities," Carson said.

"Longer term, when the economy improves and Florida's growth returns to normal levels, the area surrounding Arbor Square is poised for dramatic residential growth, which will benefit the property and its tenants."

CONTACT: Rebecca Thomas, 305.381.6485,

Marcus & Millichap Sells 122-Unit Apartment Community in Duncanville, TX

DUNCANVILLE, TX – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of Wexford Townhomes, (top right photo) a 122-unit multi-family community in Duncanville, to satisfy a 1031 exchange.

Al Silva, a senior associate in the Fort Worth office of Marcus & Millichap, and Kelley Sparkman, (middle left photo) an investment specialist in the firm’s Dallas office, retained the exclusive listing to market the property on behalf of the seller, a Florida-based private investment group.

The buyer was an out-of-state private investor.

“The buyer’s experience operating out-of-state multi-family properties was a significant factor in his successful assumption of the interest-only loan at 6.18 percent, which resulted in a cash-on-cash return that was considerably higher than average return for such a high-quality asset,” says Silva.

“Many owners have capitalized on the appreciation of their holdings and moved into other markets across the country to leverage their returns and fulfill the requirements of the 1031 exchange,” adds Sparkman.

“We were able to do this by using Marcus & Millichap’s unique national marketing platform and its ability to access a nationwide pool of investment capital.

"This transaction illustrates that capital is still flowing into the 1031 exchange market despite continued tightening of the credit markets.”

Located at 600 Wembley Circle, Wexford Townhomes is in excellent condition and one of the most attractive rental properties in the area. Occupancy is at approximately 95 percent and maintained that level throughout the sale process

Press Contact: Stacey Corso, Communications Department, (925) 953-1716

Investments Valued at $64M Announced by Place/BV Student Housing Fund

ATLANTA and CHICAGO /PRNewswire/ -- The Place/BV Student Housing Fund, LLC, a real estate investment fund focused on the acquisition and development of student housing properties nationwide, announced its most recent investments.

Hill Place serves the students of the University of Arkansas at Fayetteville and Rebel Place serves the students of the University of Nevada at Las Vegas (UNLV). Both communities will open summer of 2009.

BVP Managers, LLC, a joint venture between Atlanta, Georgia-based Place Properties, LP and Chicago, Illinois-based Blue Vista Capital Management, LLC, serves as the Manager of the Fund.

Hill Place, located directly across from the campus on Sixth Street, is in one of the most desirable locations for students of the University of Arkansas.(middle left photo)

Known as "the hill," the site is closer to campus than the parking lots for football and basketball games.

Hill Place will provide the purpose- built, contemporary housing that is in short supply near campus.

This garden- style community will house 840 students in 288 one, two and four bedroom apartments.
All apartments will offer contemporary furniture with full kitchens including washers and dryers. Each bedroom will have its own private bathroom.
Community amenities include a clubhouse with WIFI and a game room, a 24-Hour fitness center, tanning beds, with outdoor amenities to include two basketball courts, a study garden, walking/jogging trails throughout the property, and two resort-style swimming pools.

Rebel Place, located only a half mile from campus, will also be a garden style community serving the growing student population at UNLV.

Offering 480 beds in unit types that include two, three and four bedroom units, all with private bathrooms, the property will offer an alternative to the on-campus suite-style housing.

Bob Clark, (top right photo) Executive Vice President said, "Place is very excited about the addition of Hill Place and Rebel Place to our student housing portfolio.

"Both universities are growing and the markets have high barriers to entry. These projects compliment our portfolio and represent quality assets in excellent markets."

Blue Vista Capital Management, LLC is a leading national real estate investment management firm with in excess of $550 million in capital under management. Blue Vista has participated in joint ventures representing over $3 billion in total capitalization.

Place Properties, LP, has over 11 developments in various stages of construction nationwide making it one of the largest multifamily development and construction organizations in the country. Place Properties has developed more than $800 million of student housing properties since 1996 and currently manages more than 17,000 beds.

CONTACT: Jessica H. Nix, Director of Marketing and Public Relations of Place Properties, LP, +1-404-495-7591,

The Easton Group Closes on Sale-Leaseback of 120,000 sq ft Warehouse in Broward County, FL

DORAL, FL--The Easton Group, a full-service commercial real estate firm based in Doral, FL, has purchased a 120,000 square foot warehouse located in Deerfield Beach.

The building, located at 2900 Southwest 15th Street, was built in 2003 on 8.84 acres.

The Easton Group, through its partnerships bought the warehouse from Graebel/South Florida Movers, Inc. for $9.6 million ($81 per sq ft) and leased it back to them.

Financing was provided by State Farm Life Insurance Company.

“Even in these times of tight credit, we still have the ability to secure financing on real estate deals that make sense,” said Edward W. Easton, (top right photo) founder and chairman of The Easton Group.

About The Easton Group:
The Easton Group is a family-owned, boutique commercial real estate firm with over 30 years of experience and an exceptional track record.

The group is broken down into four business units consisting of commercial real estate investment, development, brokerage, and property management.

The company currently has more than 5 million square feet under management. The Easton Group is headquartered at International Corporate Park in Doral.

For more information, please log on to
Contact: Todd Templin, 954 370-8999, Boardroom Communications,