Thursday, September 24, 2009

Interstate Hotels & Resorts, Inc. Adopts Tax Benefit Preservation Plan

ARLINGTON, Va., September 24, 2009 – Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation’s largest independent hotel management company, today announced that its board of directors has adopted a tax benefit preservation plan designed to preserve the value of its substantial tax assets.

The purpose of the plan is to protect stockholder value by attempting to preserve the company’s ability to maximize available federal tax deductions that may be deemed built-in losses and to prevent a possible limitation on the company’s ability to use its net operating losses, capital losses and tax credit carryforwards (the “tax attributes”) to reduce potential future federal income tax obligations.

The company has experienced and continues to experience tax losses, and under the Internal Revenue Code and rules promulgated by the Internal Revenue Service, Interstate may “carry forward” these losses, as well as capital losses and tax credits, in certain circumstances to offset any current and future earnings with these items, as well as deductions deemed to be built-in losses, and thus reduce Interstate’s federal income tax liability, subject to certain requirements and restrictions.

Contact:: Carrie McIntyre; SVP, Treasurer, (703) 387-3320

C&W announces new 71,500 sf lease for Southeast Fabricators

ORLANDO, FL – Sept.  24, 2009– Cushman & Wakefield’s Industrial Brokerage Directors Sher Tolan and Lee Morris (top right photo)  announced a new 71,500 sf lease at 291 Springview Commerce Drive in Debary for a new facility for Southeast Fabricators. Tolan represented the landlord, Adams Building Materials Property Partnership in the transaction.

Certified by American Institute of Steel Construction, Southeast Fabricators supplies fabricated products to support many industries including alternative energy, military, original equipment manufactures, telecom, aviation, and road construction.

Contact: Brook Hines, Tel: 407-541-4401,,

Commercial/Multifamily Mortgage Debt Outstanding Declines in Second Quarter 2009

Washington, DC (Sept.r 24, 2009) - The level of commercial/multifamily mortgage debt outstanding decreased in the second quarter, to $3.47 trillion, according to the Mortgage Bankers Association (MBA) analysis of the Federal Reserve Board Flow of Funds data.

The $3.47 trillion in commercial/multifamily mortgage debt outstanding recorded by the Federal Reserve was a decrease of $9.9 billion or 0.3 percent from the first quarter 2009. Multifamily mortgage debt outstanding grew to $914 billion, an increase of $6 billion or 0.7 percent from first quarter.

"Commercial/multifamily mortgage debt outstanding fell by 0.3 percent in the second quarter, as the amount of loans paid-down and paid-off exceeded the amount of new mortgages taken out," said Jamie Woodwell, (top right photo) MBA's Vice President of Commercial Real Estate Research.

"Most major investor groups, including the CMBS market, life insurance companies and banks and thrifts, saw reductions in their holdings of commercial/multifamily mortgages, while Fannie Mae and Freddie Mac increased their holdings of multifamily mortgages."

Contact:  Carolyn Kemp, (202) 557-2727,

Post Properties Announces Common Stock Offering

ATLANTA--(BUSINESS WIRE)-- Post Properties, Inc. (NYSE: PPS) announced it has commenced a public offering of 3,000,000 shares of its common stock. In connection with the offering, the underwriters will be granted a 30-day option to purchase up to 450,000 additional shares of common stock to cover overallotments, if any.

The Company intends to use the net proceeds from the offering to repay approximately $39.4 million of existing mortgage indebtedness secured by the Company’s Post Fallsgrove property and for an approximately $4.0 million prepayment penalty in connection with the repayment of the Fallsgrove indebtedness. The remaining net proceeds from the offering will be used for general corporate purposes, which may include funding the Company’s development pipeline or the repurchase of its outstanding preferred stock or senior unsecured notes.

Contact: David Stockert, CEO, Post Properties Inc.,  404-846-5000

Grubb & Ellis Company Responds to NYSE Inquiry Regarding Recent Trading Activity

SANTA ANA, CA – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, has disclosed that the New York Stock Exchange, in accordance with the NYSE's standard policies, contacted the company earlier Wednesday in light of the recent trading activity in the company's common stock.

The company has advised the NYSE that it knows of no reason for the recent increased trading activity.

Contact: Janice McDill, Phone: 312.698.6707, Email:

Smith Equities Presents Student Housing Reports for Orlando and Tampa

ORLANDO, FL--This year we have produced two student housing reports: one for UCF and the other for USF so that you will now be able to review both of these markets.

Only rent by the bed apartments were used in the USF report while both rent by the bed and rent by the apartment were used at UCF.

The rents quoted are the rents that were being charged in August or the last date before lease‐up was completed so some communities will have higher rents from students who signed up early. Some communities lowered rents multiple times.

Last year we talked about how the term “recession proof” is no longer a viable description of the student housing market. However “recession resilient” may be an appropriate term.

Both of these markets had disappointing lease up results, partly as a result of the downturn in the economy which is supposed to produce more students because those who are out of work go back to school. While some students did go back to school to retool their skills many of them were older who already live in the community and are, essentially, day‐hop students who are not customers for student housing.

The busted housing market, both single family houses and busted condos also produced many unsold homes that now are being rented at bargain prices.
(UCF campus aerial photo, middle right)

These problems are evident in both communities. We hope that they will only last a year or two since both schools are in growth modes, especially at USF where the present enrollment is about 43,000 students at it s main campus with another 3,000 at its other three campuses.

At just over 50,000 students UCF may be starting to curtail its growth on the main campus while continuing to grow its satellite campuses. Neither school reached 100% occupancy in their on‐campus housing.

In Tampa at USF it appears that overbuilding reared its ugly head, as it does from time to time in university towns. Almost 2,600 beds, including 1,050 beds on campus in suite style rooms each with two bedrooms and adjoining bathrooms, plus the fact that USF required freshmen to live on campus, seem to have caught some owners off guard.

 Both of the new off‐campus complexes, The Province (822 beds) on the south side of campus and Sterling on 42nd Street (722 beds) on the north side of campus, did relatively well in a bad market.

(UCF School of Education buildings, middle left photo)

On the whole rents should have been lowered earlier in the rental season in an effort to try to offset the arrival of these new units. There was no new construction at UCF.

However 763 bedrooms are under construction in a complex to be known as Camelot and another 535 bedrooms at the old Addison Place site are slated for construction. Camelot is scheduled for delivery for the 2010‐11 school year, with Addison Place to start at a time yet to be announced.

Several owners at UCF appear to have seen a soft market coming and reacted aggressively by lowering rents early. As a result occupancies at UCF are much better than at USF. Some owners reduced their rents substantially, one or two by more than $90 per bed, with the average reduction at $49 per bed (rents for 4x4’s were used for this analysis).

(UCF Library building, bottom right photo)

Only the well located properties had minimal rent reductions while most eliminated move‐in and other fees. Properties that provide access to the school through the Science Park, on the south, and from McCulloch, on the north, did the best.

The UCF affiliated properties also did very well this year. Pegasus Pointe, with its 4x2’s and distance from the school, pitched the parents of students that it is better to use the Shuttle Bus to get to school rather than pay the high price charged by the school to live on campus.

 By the way the Shuttle Bus is a must for all properties, as it is for the school. It limits the amount of traffic on campus and on the nearby roads. That’s good for both the school and the students.

Returning to my original premise, student housing seems to be “resilient” to many of the adverse rental market pressures. So long as owners have the ability, and willpower, to lower rents and move‐in fees quickly when over building occurs then they will be able to keep occupancies high.

(UCF student housing pad, bottom left photo)

Student housing has fared better than the overall apartment rental market. In addition the expected growth in the population of college age people will help the rental market.

It is a time to emphasize management skills, a time to do those rehab projects that you may have been putting on hold because you didn’t think they were needed.

Now you will have to compete for the dollars of those students who have also become more astute renters. It is not a time for the faint of heart but a time for the young and industrious to make sure that you have the best property on the block.

If you have any question about the market at either UCF or USF call the undersigned. Also, when selling or buying student housing in Florida call Paul Guyet (top right photo)  at Smith Equities Real Estate Investment Advisors.

Contact: Paul M. Guyet, Student Housing Specialist, 407‐422‐0704, ext. 105

Arbor Closes $1,875,000 Fannie Mae DUS ® Small Loan for Mayflower Apartments in Lynn, MA

Uniondale, NY (Sept,  24, 2009) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $1,875,000 loan under the Fannie Mae DUS® Small Loan product line for the 48-unit complex known as Mayflower Apartments in Lynn, MA.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.18 percent.

The loan was originated by Edward Petti,  (top right photo) Director, in Arbor’s full-service New York, NY lending office. “The client had a 1031 exchange that needed to be completed in 30 days,” said Petti. “Arbor committed and structured a closing that helped the borrower meet the requirements of the 1031 exchange and close in the necessary time frame.”

Contact: Ingrid Principe, P: 516.506.4298, F: 516.542.2555,, Follow us on Twitter @ arbor1

Northern New Jersey trophy office building receives $25M refinancing arranged by HFF

FLORHAM PARK, NJ – The New Jersey office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has arranged a $25 million refinancing for Glenpointe Centre West, (top right photo)  a 333,650-square-foot, Class A office building in Teaneck, New Jersey.

HFF senior managing director Tom Didio, (middle left photo)  associate director Michael Lachs and associate Angela Jaramillo worked exclusively on behalf of Alfred Sanzari Enterprises to secure the seven-year, fixed-rate loan through CIGNA Investments.

 Loan proceeds were used to refinance the existing first mortgage. The borrower was represented by Thomas Cangialosi of the Hackensack, New Jersey-based law firm, Winne, Banta, Hetherington, Basralian & Kahn.

Glenpointe Centre West is located at 500 Frank W. Burr Boulevard within Teaneck’s Glenpointe Centre mixed-use development, approximately three and one half miles west of Manhattan via Interstate 95 and the George Washington Bridge. The seven-story Class A office property is leased to numerous national and regional tenants including Cognizant, Univision, Inc. and the law firm of Decotiis, Fitzpatrick, Cole & Wisler.

“HFF is pleased to have represented both David Sanzari as the borrower and Cigna Investments as our correspondent lender in structuring this seven-year transaction. Glenpointe Centre West is the premier office property in Bergen County and for that reason it continues to attract quality national and regional tenants,” said Didio.

Alfred Sanzari Enterprises is a New Jersey-based developer with a portfolio of more than five million square feet of commercial and multifamily space including office, industrial, apartments and hotels.

Thomas R. Didio, HFF Senior Managing Director, (973) 549 200,
Kristen M. Murphy, HFF Associate Director, Marketing, 713) 852-3500,