Thursday, May 27, 2010

Cambridge Realty Capital Provides $10M FHA-Insured HUD Loan to Refinance Villa Healh Care Property in Sherman, IL

Cambridge Realty Capital Companies has closed on a $10.02 million FHA-Insured HUD LEAN mortgage for Villa Health Care, (top left photo)  a 212-bed skilled nursing and assisted living facility in Sherman, Ill.

Cambridge Chairman Jeffrey A. Davis (lower right photo)  said the fully amortized, 30-year term loan was arranged for the borrower, an Illinois not-for-profit corporation, by Cambridge Realty Capital Ltd. of Illinois, the Cambridge business entity responsible for underwriting HUD loans.

Davis said the property has 99 skilled nursing and 113 assisted living beds. It was financed using HUD’s 232(a)7 - LEAN program, which is used to refinance properties with existing HUD financing. The interest rate was not disclosed.

Contact:  Evan Washington, Phone: (312) 521-7604, Fax: (312) 357-1611, E-Mail:

Marcus & Millichap Sells 55,067-SF Self-Storage Facility Building in Knoxville, TN

KNOXVILLE, TN, May 27, 2010 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of Papermill Self Storage, (bottom right photo)  a 55,067-square foot self-storage facility property located in Knoxville, TN, according to Bryn D. Merrey, Regional Manager of the firm’s Tampa office.

 The asset commanded a sales price of $2,025,000.

Michael A. Mele, (top right photo)  vice president investments in Marcus & Millichap’s Tampa office, along with Anne Williams, investment specialist in the firm’s Memphis office, had the exclusive listing to market the property on behalf of the Texas-based seller, a bank/financial institution. The buyer, a limited liability company based out of Mississippi, is also represented by Mele and Williams.

“This sale is one of the first of what will be a wave of REO sales in self-storage”, stated Mele.

 “We will see many more deals like this one over the next two years, as financial institutions look to clear their inventory of self-storage properties” added Mele.

Papermill Self Storage is located at 3980 Papermill Road. This property was built in 2004, expanded in 2007 and enjoys a 70.04 percent physical occupancy.

Press Contact:  Bryn D. Merrey, Regional Manager, Tampa, (813) 387-4700

Arbor Closes $20M on 2 Loans in Illinois and New York

Longacre Ponds in Fairview Heights, IL Receives $17,882,500

UNIONDALE, NY (May 27, 2010) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $17,882,500 loan under the Fannie Mae DUS® product line for the 252-unit complex known as Longacre Ponds in Fairview Heights, IL.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 5.68 percent

The loan was originated by Patrick McNulty (top right photo) , Director, in Arbor’s full-service Chicago, IL lending office.

 "Arbor was pleased to deliver attractive terms to our Borrower on a high quality asset,” said McNulty. “We made certain assumptions in our initial loan screening and the subsequent performance of the property met and exceeded our expectations allowing us to provide additional loan proceeds.”

Livonia Avenue Apartments in Brooklyn, NY Obtains $2.7M

UNIONDALE,  NY (May 27, 2010) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $2,700,000 loan under the Fannie Mae DUS® Small Loan product line for the 22-unit complex known as Livonia Avenue Apartments in Brooklyn, NY.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 5.87 percent.

The loan was originated by Alexander Kaushansky (middle left photo) , Director, in Arbor’s full-service New York, NY lending office.

“The borrower was looking for permanent financing after they completed construction and leased up the property,” said Kaushansky. “Arbor was able to provide a permanent 10-year loan that met his requirements.”

Contact:  Ingrid Principe, Marketing Manager, Arbor Commercial Mortgage, 333 Earle Ovington Blvd., Suite 900, Uniondale, NY 11553, P: 516.506.4298, F: 516.542.2555,, Follow us on Twitter @ arbor1

EastGroup Properties Announces 122nd Consecutive Quarterly Cash Dividend

JACKSON, MS-– EastGroup Properties (NYSE-EGP) announced  that its Board of Directors declared a quarterly cash dividend of $.52 per share payable on June 30, 2010 to shareholders of record of Common Stock on June 18, 2010.

This dividend is the 122nd consecutive quarterly distribution to EastGroup's shareholders and represents an annualized dividend rate of $2.08 per share.

David H. Hoster II (top right photo) , President and Chief Executive Officer or N. Keith McKey, Chief Financial Officer
(601) 354-3555

Real Estate Trends Offer Mixed Signals for Florida Economy

By George Livingston, CIPS

(Ed. note: George Livingston is chairman emeritus of NAI Realvest in Maitland, FL  and a 30-year veteran real estate and investment analyst.)

Current real estate trends offer mixed signals for the Florida economy. While several economic indicators are stabilizing or recovering, the millions still unemployed hold little promise of a full recovery this year.

Housing markets are showing signs of revival, however, commercial property values dropped 25.8 percent from a year ago and a full 42 percent from the October 2007 apex.

The big question is, how quickly can commercial real estate absorb its losses? We’re moving in the right direction. Commercial property sale volume is way up---$5.6 billion in March, up from $4.2 in February and significantly higher than 2009 levels. And sales are dominated by distressed transactions.

REITs are performing well, with a 6.9 percent total return for April. Cap rates are steady at 7.81 percent in March. But commercial office absorption totaled -7.5 million square feet in the first quarter of this year, down from -39 million during the same period last year.

Job growth in April was strong, as was our 3.2 percent GDP growth.

The S&P index increased 1.6 percent in April with year-over-year returns posting a healthy 38.8 percent.

Real estate capital markets are improving. RBS Commercial Funding offered the first CMBS security the market has seen in two years.

House sales were up in March, and prices strengthened for existing homes.

Investment property vacancy rates and rents stabilized after two years of steady decline.

The consumer confidence index increased and we saw continued growth in March and April for the highest since September, 2008.

We also saw increases in retail sales, apparel and building materials.

Dr. Peter Linneman,  (top  left photo) chief economist for NAI Global, says interest rates could be the key to our economic future.

We could experience sustained growth through the end of this year if the Fed raises artificially low interest rates. If interest rates remain low, the economy could continue to suffer.

Real GDP has increased over the past three quarters. We are seeing early signs of job growth. Both of these indicators support our anticipation that recovery is underway.

However, job creation will lag GDP growth by 12-18 months. With sustained growth, interest rates should increase by June this year.

The current sharp stock market decline will suppress the economy and job growth, at least in the short term.

Looking ahead, the greatest threat is from inflation, thanks to the extraordinary federal budget deficit.

The strengthening of the dollar against many currencies, regardless of our twin deficits and ominous inflation, reveal that although the US is in bad shape, many countries are fundamentally in worse shape.

George Livingston,
Larry Vershel or Beth Payan,