Sunday, January 25, 2009

Lack of New Construction Bright Spot in Multifamily Market, says Hendricks & Partners' Cole Whitaker

ORLANDO, FL- The downturn in new construction in Central Florida has a bright spot---there are fewer rental apartment communities underway which ultimately should help a softening rental market.

That’s the word from Cole Whitaker, (top right photo) Florida partner at Hendricks & Partners, one of the nation’s largest private capital networks of advisors and systems.

“The rate of population growth has slowed and more people are rooming together or moving back home with their parents to save money. These factors along with the tough job market are creating increased concessions in the rental market, said Whitaker.”

“Construction of new multi-family properties has slowed due to the lack of construction financing coupled with more expensive equity available for multi-family investments.” he said. “This present day drop in new construction will help rental property owners in the long run.”

Hendricks & Partners currently offices in more than 40 U.S. cities, primarily in western states and plans to open 25 offices in the eastern seaboard region, including offices in Miami, Atlanta, Jacksonville and the Carolinas.

For more information, please contact:

Cole Whitaker, Partner, Hendricks & Partners, 407-256-9594
Larry Vershel, Larry Vershel Communications 407-644-4142

Fitch Comments on the Stuyvesant Town/Peter Cooper Village Loan

NEW YORK, NY-- Fitch Ratings has reviewed updated financials, including a 2009 budget and the year-end 2008 rent roll, for the Stuyvesant Town/Peter Cooper Village loan. (centered photo below)

Although the property's performance remains consistent, the cash flow generated from the property continues to require significant reserves to cover debt service obligations.

As of Jan. 15, 2009, the General Reserve balance has been completely depleted and the Debt Service Reserve balance has decreased to $127.7 million from $400 million at issuance.

(Tishman Speyer principals are Jerry Speyer (top left photo), chairman and Co- CEO; Rob Speyer (bottom right photo), president and Co-CEO; and Robert V. Tishman, founding chairman, middle right photo)

Property cash flow is notexpected improve from 2008 based on the borrowers restated budget for 2009.

As a result, according to Fitch's calculations and the 2009 budget, the borrower has approximately six months of reserves remaining to cover the trust portion of the total debt on the property.

Should the loan default, Fitch expects the servicer to advance debt service on the trust portion.

The securitized balance of the Stuyvesant Town/Peter Cooper Village Loanconsists of five pari passu pieces of a $3 billion A-Note.

There is an additional $1.5 billion of mezzanine debt outside the trust.

Fitch rates four of the five notes, ranging from $202.3 million to $1.5 billion.

Fitch reviewed the transactions on October 29, 2008 and lowered the shadow rating of the Stuyvesant Town/Peter Cooper Village loan to below investment grade as a result of slower than anticipated conversion of rent stabilized units to market.

Peter Cooper Village and Stuyvesant Town is a multifamily property comprising 56 multi-story buildings with a total of 11,227 residential apartments in Manhattan, NY.

In addition to the residential component, the complex contains approximately 100,000 square feet of retail space,20,000 sf of professional office space, and six parking garages with 2,260 licensed spaces.

The borrower, Tishman Speyer Properties, LP, and BlackrockRealty acquired the property with the intent to convert rent-stabilized units to market rents as tenants vacated the property, resulting in increased rental revenue.

Fitch continues to closely monitor property leasing efforts and the balanceof reserves.


Sue Ann Butera, +1-212-908-0713 or Adam Fox, +1-212-908-0869, NewYork.

Media Relations:
Sandro Scenga, Senior Director, Corporate Communications, Fitch Ratings, +1-212-908-0278

LAKEWOOD RANCH, FL— Thomas D. Wood and Company, a Strategic Alliance Mortgage LLC member, secured financing in the amount of $1,650,000 for the CVS Pharmacy in Weatherford, Texas.

Brad Cox, (top right photo) CCIM, CPM, Company Vice President, financed the loan through Thomas D. Wood and Company’s correspondent relationship with StanCorp Mortgage Investors at a permanent fixed-rate of 7.25%.

The fully-amortizing loan has a term of 20 years and a loan-to-value of 52%. The 13,208 square-foot single-tenant retail store was built in 1998, and is located at 407 S. Main Street, Weatherford, Texas.

For further information, please contact:
Brad Cox, CCIM, CPM, (941) 907-8112,
Jessica Gurtowski, (407) 937-0470,

Entrust Administrative Services Opens Chicago Office

LAKE MARY, FL - Entrust Administrative Services, the Lake Mary-based firm that provides IRA administrative services to over 2,000 account holders of self-directed IRA funds in Florida, recently opened a Chicago office at 300 S. Wacker Drive (top right photo) to serve Illinois investors.

Glen Mather, president of Entrust Administrative Services, Inc., said the firm will also open a South Florida office later this year.

“With the current economic cycle, assets have been devalued nationwide and the traditional banking model offers little relief,” said Mather.
“Current market cycles are driving investors to alternative investments such as private equity, debt instruments and distressed real estate – all of which can be held in an IRA.”

“Today, owners of self-directed IRA funds have substantial opportunities to grow their assets by investing wisely in undervalued assets with growth potential,” he said. “Ironically, in a depressed financial services market, we have to expand in order to meet this demand,” Mather said.

Glen Mather, President Entrust Administrative Services, Inc. 407-367-3472;

Larry Vershel, Larry Vershel Communications, 407-644-4142,