Tuesday, January 13, 2009

Holliday Fenoglio Fowler Closes 2 Refinancing Deals Totaling $115.5M

Luxury Manhattan multifamily high-rise Riverbank West Obtains $94M Loan

NEW YORK, NY – The New York and Hartford offices of HFF (Holliday Fenoglio Fowler, L.P.) have arranged a $94 million refinancing for Riverbank West, (above centered photo) a 44-story luxury multifamily building in Manhattan.

HFF senior managing directors Mike Tepedino, (top right photo) Dana Brome, (top left photo) Joe Morningstar and Andrew Scandalios (middle right photo) worked on behalf of the borrower, advised by Cornerstone Real Estate Advisers LLC (“Cornerstone”), a subsidiary of Massachusetts Mutual Life Insurance Company (“MassMutual”), to secure the financing through a local New York bank.

The four-year, fixed-rate loan has a five-year extension option.

“The ability to close this transaction during difficult market conditions is a testament to the sponsorship of the Cornerstone team and their best-in-class asset,” said Tepedino. “This loan demonstrates that there is continued liquidity in the marketplace for top tier properties.”

"The bank’s attractive prepayment schedule also provided enhanced flexibility for the owners going forward,” added Brome.

Riverbank West is located at 560 West 43rd Street between 10th and 11th Avenues in the Midtown West neighborhood of Manhattan The 97% leased property has 418 units, 25,738 square feet of retail space and an 84-space underground parking garage.

Community amenities include a 24-hour doorman and concierge, business center, laundry facilities and a valet dry cleaning service. In addition, 86% of the units have balconies or terraces with views of Midtown and Downtown to the north, south and east and the Hudson River to the west.

Cornerstone, founded in 1994, is an SEC registered real estate investment advisor that is an indirect wholly-owned subsidiary of MassMutual with more than $10 billion in real estate assets under management including hotels, office buildings, apartments and shopping centers throughout the United States and Canada for pension, endowment, foundation and insurance company clients.

MassMutual is a global, diversified financial services organization providing life insurance, long-term care insurance, annuities, disability income insurance, structured settlements, investments, mutual funds and retirement savings products to individual and institutional customers.

Organized as a mutual company, MassMutual holds the highest possible financial strength rating from Standard & Poor’s (AAA). With more than $500 billion under management, MassMutual has emerged as one of the largest and most highly regarded financial services firms in the world and was recently designated as one of America’s Most Admired Companies by Fortune magazine.


MICHAEL J. TEPEDINO, HFF Senior Managing Director, (212) 245-2425, mtepedino@hfflp.com

DANA E. BROME, HFF Senior Managing Director, (860) 275-6199, dbrome@hfflp.com

KRISTEN M. MURPHY, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com

Three-Property Dallas office portfolio Receives $21.5M

DALLAS, TX – The Dallas office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has arranged a $21.5 million refinancing for a three-property office portfolio totaling 465,865 square feet in Dallas, Texas.

The three properties include: 5000 Quorum, Quorum Place and Quorum North. (centered photos above)

Working exclusively on behalf of Harbert Management Corporation, HFF managing director Kevin MacKenzie (bottom right photo) placed the three-year, fixed-rate loan with ViewPoint Bank. Loan proceeds will be used to refinance the current loan.

The portfolio is located within the Quorum Office Park adjacent to the Dallas North Tollway and Belt Line Road intersection in Far North Dallas.

“The portfolio’s position within the submarket, combined with the owner’s historical success and the commitment to management and leasing of these assets, made this transaction attractive to potential lenders,” said MacKenzie. “Both the borrower and lender demonstrated flexibility and perseverance, which provided for a smooth closing process despite the current capital markets environment.”

Harbert Management Corporation is an investment management firm focusing on alternative assets with $24.5 billion in assets and committed capital under management as of August 1, 2008. HMC serves endowments, foundations, pension funds, financial institutions, insurance companies, high net worth families and individuals.


KEVIN C. MACKENZIE, HFF Managing Director, (214) 265-0880, kmackenzie@hfflp.com

KRISTEN M. MURPHY HFF Associate Director, Marketing (713) 852-3500, krmurphy@hfflp.com

Keene Finishing Retail Project at Town Center at Boca Raton, FL

BOCA RATON, FL – Keene Construction Company, Orlando, one of America’s largest retail contractors, is wrapping up work on the Town Center at Boca Raton’s (top right photo) expansion and interior renovation to accommodate The Capital Grille restaurant in Boca Raton, FL, for Simon Property Group, Indianapolis.

The improvements were designed by Slattery & Associates, Boca Raton, and are slated for completion in March 2009.
The 1.5 million-square-foot regional mall contains high-fashion retailers including Bloomingdale’s, Neiman Marcus, Nordstrom and Saks Fifth Avenue, as well as 220 specialty shops.

Contact: Kenneth H. Cristol, 407-774-2515.

Lane Company Restructures Top Management

ATLANTA, GA, Jan. 13, 2008 – Lane Company, an award-winning multifamily real estate firm, today announced a change in the firm’s top leadership.

Chairman and company founder George Lane (top right photo) is returning as CEO.

The current CEO, Bill Donges, (bottom left photo) will assume an executive advisory role.

“Bill’s done a great job shepherding us through a strong period of growth,” Lane said. “But unfortunately the real estate market is in a deep contraction.

"While we want him to be free to pursue other opportunities, we are asking him to stay on as an advisor, and to continue to represent us as our ambassador to the real estate community as a whole, including the national trade associations.”

“Working with everybody at Lane Company has been a great experience, but it’s time to get back to basics,” Donges said. “This really is a company with a heart.

"Given the contraction of the capital markets, it’s appropriate for just one person to be both chairman and CEO. George is ready to take the reins again, and I’m going to help any way I can.”

Donges is the incoming Chair of the National Association of Home Builders Multifamily Leadership Board, and is on the board of the National Multi-Housing Council.

He joined Lane Company in 2002 as Chief Operating Officer. He was promoted to CEO in 2005 when George Lane assumed the post of Chairman. During his tenure he spearheaded intensive strategic planning which united several disparate companies into one united Lane Company.

He also increased emphasis on technology, training and safety, while guiding the firm through an expansion into the Mid-Atlantic states, Texas and Florida.

Both Lane and Donges emphasize that Lane Company remains strong in property management and asset management, and is continuing to pursue acquisitions and new development.

Media Contact: Terri Thornton, Thornton Communications, 404-932-4347 Terri@TerriThornton.com

HFF closes sale of Woodland Hills in Decatur, GA

ATLANTA, GA – The Atlanta office of HFF (Holliday Fenoglio Fowler, L.P.) has closed the sale of Woodland Hills, (site map bottom right) a 228-unit multifamily community in Decatur, Georgia.

The HFF investment sales team was led by managing director Jason Nettles (top left photo) and associate director Megan Thompson (top right photo) who marketed the property on behalf of the seller, Equity Residential. Resource Real Estate purchased the property.

Woodland Hills is located seven miles north of downtown Atlanta at 3471 North Druid Hills Road in the North Druid Hills community of DeKalb County close to Emory University, Emory Healthcare Centers and The U.S. Center for Disease Control and Prevention.
The 95% leased property has one- and two-bedroom units averaging 1,167 square feet each. Community amenities include a swimming pool, picnic area and tennis courts.

“Woodland Hills is located in an affluent community with fixed supply and increasing demand,” said Nettles. “The property is advantageously positioned to provide a value option for the overflow of undergraduate and graduate students from Emory University who are seeking housing.”

Equity Residential (“EQR”) is an S&P 500 company focused on the acquisition, development and management of high quality apartment properties in top U.S. growth markets.
Equity Residential owns or has investments in more than 550 properties in 23 states and the District of Columbia.

Resource Real Estate (“RRE”) controls a real estate portfolio with an aggregate value in excess of $1.7 billion, which includes approximately 12,500 apartment units and 1.3 million square feet of commercial space located throughout the United States.

JASON NETTLES, HFF Managing Director, (404) 832-8460, jnettles@hfflp.com
KRISTEN M. MURPHY, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com

ALIS award finalists announced

SAN DIEGO, CA — Innovative executives and companies responsible for the most important hospitality industry deals in 2008 have been selected as finalists for the prestigious ALIS Awards, to be presented during the 2009 Americas Lodging Investment Summit (ALIS) conference, January 26-28 in San Diego, CA at the Hilton San Diego Bayfront.(top right photo)

Nominees are considered for this honor based on selection by committees of esteemed industry leaders, with winners in each category determined by ALIS conference sponsors.

Nominees in the four award categories include:

Jack A. Shaffer Financial Advisor of the Year 2008

Thomas C. Fisher, (top right photo) managing director, Jones Lang LaSalle Hotels.

Jackson Hsieh, (middle left photo) managing director and global head of real estate, lodging & leisure group, UBS Investment Bank.

Robert T. Koger, (middle right photo) president, Molinaro Koger
Development of the Year 2008.

The 1,594-room Fontainebleau Miami Beach (Miami, Florida), (bottom right photo) developed at a cost of approximately $1 billion by Fontainebleau Resorts, LLC.

The 2,000-room Gaylord National Resort and Convention Center (Washington, D.C./ National Harbor, MD), developed at a cost of approximately $1 billion by Gaylord Entertainment.

The 1,190-room Hilton San Diego Bayfront (San Diego, California), developed at a cost of $348 million by Portman Holdings, LLC and Phelps Development, LLC. The 328-room The Blackstone, A Renaissance Hotel (Chicago, Illinois), developed at a cost of $128 million by Sage Hospitality

Single Asset Transaction of the Year 2008

Thayer Hotel Investors IV purchase of the 316-room Hyatt Dulles (Washington Dulles International Airport, Fairfax County, Virginia) for $76.5 million, or approximately $242,088 per room, from Ashford Hospitality Trust.

Next Century Associates, LLC, a joint venture of Woodbridge Capital Partners and D.E. Shaw Group, purchase of the 726-room Hyatt Regency Century Plaza (Los Angeles, California) for $366.5 million, or approximately $504,821 per room, from Sunstone Century Star, LLC and Sunstone Century Star Lessee, Inc.
Great Eagle Holdings (Langham Hotels), purchase of the 380-room Ritz-Carlton Huntington Hotel & Spa (Pasadena, California) for $165 million, or approximately $434,200 per room, from Cornerstone Real Estate Advisers, LLC.

Merger & Acquisition of the Year 2008

Apollo Management and Texas Pacific Group acquire Harrah’s Entertainment – approximately $28 billion Inland American Lodging acquires 22-hotel portfolio from RLJ Development – $900 million Wyndham Worldwide acquires U.S. Franchise Systems from Global Hyatt Corporation – $131 million

Award winners will be announced on Tuesday, January 27.

Other honorees during the 2009 ALIS conference include J.W. Marriott, Jr., (bottom right photo) chairman and CEO of Marriott International, Inc., who will receive the 2009 International Society of Hospitality Consultants (ISHC) Pioneer Award, and Horst Schulze, (bottom left photo) president/CEO of West Paces Hotel Group, who will be honored with the Lifetime Achievement Award for his remarkable accomplishments in the founding and growth of the successful The Ritz-Carlton Hotel Company and throughout his career.

Proceeds from the ALIS conference benefit the educational, research, and training missions of the Educational Institute (EI) of the American Hotel & Lodging Education Foundation (AH&LEF), AH&LA’s not-for-profit affiliate.

Serving the hospitality industry for nearly a century, AH&LA is the sole national association representing all sectors and stakeholders in the lodging industry, including individual hotel property members, hotel companies, student and faculty members, and industry suppliers.

Headquartered in Washington, D.C., AH&LA provides members with national advocacy on Capitol Hill, public relations and image management, education, research and information, and other value-added services to provide bottom line savings and ensure a positive business climate for the lodging industry.

Partner state associations provide local representation and additional cost-saving benefits to members.

AH&LEF is the charitable fund-raising and endowed fund-management subsidiary of the American Hotel & Lodging Association.

Founded in 1953, AH&LEF is the premier organization for scholarships, professional certification, and instructional material as well as funding for hospitality industry research.

With more than two decades of experience and over 65 events completed to date, BHN is the worldwide leader in developing and organizing conferences for the hotel and tourism investment community.

BHN conferences have become “must attend” events for industry leaders who come together to network, conduct business, and to learn about the latest trends.

In addition to ALIS, BHN events include: the Central America Tourism & Hotel Investment Exchange (CATHIE) taking place in Managua in 2009; the Caribbean Hotel & Tourism Investment Conference (CHTIC) taking place in Bermuda in 2009; Digital Discovery Day (D3) in New York; the Hotel Investment Conference Asia Pacific (HICAP) in Hong Kong; the Hotel Investment Forum India (HIFI) in Mumbai; and the PATA CEO Challenge in Bangkok.

The BHN Website at http://www.burba.com/ is the gateway for information about the conferences BHN produces, as well as a direct link to important players in the hospitality investment world.

For general event information, online registration, and sponsor opportunities, contact Jonathon Zink, BHN conference manager, at (714) 540-9300 or jzink@burba.com, or visit the ALIS Website. Registration price will increase on January 19.

For information on the AH&LA or AH&LEF, visit http://www.ahla.com/. Press interested in more information on ALIS are invited to contact Jessica Soklow, AH&LA media relations manager, at jsoklow@ahla.com.