Tuesday, February 4, 2014

PCCP, LLC Provides $12.1 Million Senior Loan for Recapitalization of Class A Office Building in Rancho Cordova, CA

2882 Prospect Park Drive within Prospect West Business Park, Rancho Cordova, CA

San Francisco, CA, Feb. 4, 2014 – PCCP, LLC has provided a $12.1 million senior loan for the recapitalization  of a four-story, 113,237-square-foot Class A office building located at 2882 Prospect Park Drive within Prospect West Business park in Rancho Cordova, Calif.  The loan was provided to the property owner, Prospect Park, LLC.

“This is a best-in-class property in its submarket that has been well occupied historically. Due to the excessive leverage and lack of capital for new deals, it hasn’t been a meaningful participant in the market for some time,” said Jim Galovan, managing director with PCCP, LLC.  

PCCP believes that with a reset basis and motivated ownership that has owned multiple properties in Sacramento for many years, the building will now attract significant interest from mid-size and large users.  

Situated directly off the Highway 50 corridor, approximately 14 miles east of Sacramento, the building offers 4/1,000 parking, strong highway visibility with signage opportunities, on-site amenities including a workout facility, showers and locker rooms, and on-site property management.

The Sacramento office market is on the path to recovery from the financial downturn.  Although the market vacancy is still between 15 percent and 20 percent depending on the report, Jones Lang LaSalle reports that over the past several months the  Sacramento office market has had the fourth highest actual net absorption of any metro area in the United States.

 For a complete copy of the company’s news release, please contact:

Darcie Giacchetto
Spaulding Thompson & Associates

Industry Veterans Don Ferrari and Hugh Black Join Capital Square Realty Advisors as Senior Vice Presidents of Sales

Louis Rogers

RICHMOND, VA – Capital Square Realty Advisors, LLC announced that Don Ferrari and William ‘Hugh’ Black have joined the company as senior vice presidents of sales, representing the West Coast and East Coast, respectively. 

They join Cory Guy in Southern California to complete Capital Square’s national sales team.  The company welcomes the duo after completing approximately $100 million in acquisitions since its launch in December 2012.

“I am pleased to welcome Don Ferrari and Hugh Black, seasoned real estate sales executives, to our team at Capital Square,”  said Louis Rogers, founder and chief executive officer of Capital Square Realty Advisors.

“We have worked together for more than twenty years on billions of dollars of DST, TIC and REIT real estate securities offerings; I am thrilled to be reunited with good friends and business colleagues.

“Together, they bring an exceptional level of Section 1031 exchange expertise and long-standing relationships with broker-dealers across the nation. 

Capital Square’s national sales team comprised of Cory Guy, Don Ferrari and Hugh Black will provide the highest level of service in the industry for broker-dealers and their representatives who sell Capital Square’s DST investments for Section 1031 exchange investors.

Cory Guy
“ I have worked with Don and Hugh since the late 90’s and am pleased to be reunited with these fine real estate sales professionals.” 

With more than 50 years of experience in the financial services and investment industries, Ferrari brings extensive relationships in the broker-dealer community, where he will service and grow Capital Square’s selling group focused on DST investments for Section 1031 exchange investors. 

He joins Capital Square Realty Advisors from Preferred Apartment Communities, where he was a managing director. 

He previously served as senior regional vice president with a national broker-dealer, where he specialized in Section 1031 exchange investments for high net worth investors. 

Black joins Capital Square Realty Advisors from Aztec Oil & Gas Inc., where he served as senior marketing division manager. 

 For a complete copy of the company’s news release, please contact:

Jill Swartz                                                                            
Spotlight Marketing Communications                    
949.427.5172, ext. 701 – office                                   
949.485.1552 – cell                                                            

Tenant Representation Firm Hughes Marino Adds Jeffrey Shepard to Orange County, CA Team

Jeffrey Shepard
 ORANGE COUNTY, CA, Feb.  4, 2014 – Hughes Marino, Southern California’s leading commercial real estate firm exclusively representing tenants, has hired Jeffrey Shepard as Principal and Senior Vice President. 

Shepard, who will work in Hughes Marino's Orange County office, was previously the Chairman of the Board and a co-founding partner of Cresa, a firm in the same industry.

“The decision to join Hughes Marino was made by following my own career goal, which is to grow professionally and personally while creating the very best outcome possible for each of my clients who has placed their trust in me,” Shepard explained. 

  “Being part of the Hughes Marino family will bring me into a team in which that objective is not just my own, but the goal of the entire company.”

Shepard’s 25 years of tenant advocacy for clients across the United States includes managing and negotiating large office and industrial leases, property and land acquisitions and dispositions, and build-to-suit projects. 

He has personally been responsible for more than 10 million square feet of transactions valued in the multiple billions of dollars.  In addition, prior to becoming an exclusive tenant advocate, Shepard has himself developed more than two million square feet of industrial space.

Jason Hughes
“While many may ask why I left my former firm, to me the question is what can I accomplish in this new team,” Shepard adds.  

“As a member of Hughes Marino's Orange County team, I anticipate growing our national clientele, attracting other professionals who share the Hughes Marino culture and core values, and reaching new levels of excellence and performance in my own career while mentoring and learning from my team members.”

The announcement was made by Jason Hughes, President and CEO of Hughes Marino, Inc. Hughes Marino is headquartered in San Diego with offices in Century City and downtown Los Angeles, along with its Orange County location. 

According to Hughes, Hughes Marino’s team of specialists represent approximately 500 active tenants throughout Southern California at any given time, providing the Hughes Marino team with real time market knowledge, as well as the strength of collective bargaining and unequaled leverage with landlords.

“Jeff is considered one of the most successful brokers in Orange County – and we are very excited to have him join our team. We have worked with Jeff, in a referral capacity, for more than 20 years. 

Mike Lewis
"He has proven to be an unbelievably dedicated professional who is committed to providing his clients with conflict free advice and negotiating expertise. In addition, Jeff’s commitment to Hughes Marino’s core values is a natural fit,” Hughes says.

“We are proud to have attracted some of the finest professionals in the industry throughout our Southern California firm, and are especially pleased to see the powerful position we are attaining as we grow our Orange County office,” Hughes adds.

In addition to Shepard, Hughes Marino has also hired Mike Lewis as a Vice President in its Orange County office.

Lewis, who was previously with Travers Realty Corporation in Newport Beach, has been advising clients on site selection, lease negotiations and project management since 2010.  

His ability to negotiate, execute and build strong relationships with his clients earned him the Irvine Company’s prestigious “Young Dealmakers of the Year” award in 2012 and 2013.

Hughes Marino has also hired Julia Myers as Client Relations Manager in the Orange County office, as the firm continues to increase its Orange County presence, Hughes notes.

Julia Myers
Tucker Hughes, director of Hughes Marino, relocated to Newport Beach and founded the office a year ago, after working for several years in the firm’s headquarters office in San Diego, where he attained a Master of Science in Real Estate from the University of San Diego and was one of the youngest ever to receive a brokers license in the state of California history. 

“From our very first hire in Orange County, we were after a special team,” Tucker Hughes notes.

 “JP Roach, who has been a vice president in the Orange County office nearly since its inception, is an attorney who blends his legal and real estate expertise as he specializes in representing tenant corporate real estate users, including Southern California technology, life science and business services companies.  

"With the addition of our newest team members, we have assembled what I believe is one of the absolute finest real estate advisory groups in the country and we are very excited about the future.”

 For a complete copy of the company’s news release, please contact:

Jenn Quader or Amanda Alenick
Brower, Miller & Cole
(949) 955-7940

Mortgage Interest Rates Drop More Than 30 Basis Points in January

Jeanne Peck
Chicago, IL Feb.  4, 2014 – Real Estate Capital Institute reports the Nation's frigid temperatures in the lower to mid-single-digit range accurately reflect today's mortgage rates. 

 Interest rates during the past month have dropped precipitously at more than 30 basis points for the ten-year treasury.  And as the weather begins to improve with rising temperatures, so will interest rates as the
Fed plans to curb treasury buying activities due to an improving economy.

Yet mortgage rates are expected to remain low in the near future since so many funding sources are aggressively competing for yield and the economic
outlook is still uncertain.

Everyone in the funding arena seems to be back in the market.  CMBS markets are reporting substantially lower delinquencies, banks cleared through much of their troubled loans and life insurance companies are under pressure to
capture more attractive yields from mortgages vs. corporate bonds.

  Across the board, these funding sources are tightening spreads, offering higher leverage and less recourse (where applicable), especially for floating-rate

The new mortgage spread benchmark appears to be 150 basis points.  Rates are
already extremely low, starting at this level- about 50 basis points tighter
than a year ago.  Meanwhile, within the permanent fixed-rate sector, office,
retail and industrial properties capture ten-year at rates also dipping down
for lower leverage in the same 150-basis-point-range, but over treasuries. 
Expect the 150-bps-threshold to be broken through on a more regular basis as

well.  In the multifamily sector, lending competition remains as fierce as ever, despite agencies mandates to reduce loan production.  More conventional lenders fill the void offering spreads over treasuries dipping
down to 140 bps for low leverage loans based upon ten-year terms.

Fed policies and investors demand in the face of rising treasuries are causing the flattening of the yield curve.  Five and seven-year notes continue increasing faster as compared to longer-term bonds. 

 Under these conditions, longer-term rates will eventually rise.  So for the moment, the best mortgage pricing for borrowers is for longer term loans of ten years or more.

Ms. Jeanne Peck of the Real Estate Capital Institute expects, "Mid-one-hundred [mortgage] spreads are more common today, so lenders are becoming more creative to generate greater yields.  More dollars are moving into new development deals, particularly in the commercial property sector
which was severely neglected during the Great Recession."

The Real Estate Capital Institute(r) is a volunteer-based research
organization that tracks realty rates data for debt and equity yields.  The
Institute posts daily and historical benchmark rates including treasuries,
bank prime and LIBOR.  Furthermore, call the Real Estate Capital RateLine at
7RE-CAPITAL (773-227-4825) for daily rate updates.

For a complete copy of the company’s news release, please contact:

The   Real Estate Capital Institute(r)
3517 West Arthington Street
Chicago, Illinois USA 60624
Contact: Jeanne Peck, Executive Director
director@reci.com / 

Berger Commercial Realty Brokers Close Three Leases at Atrium West in Sunrise, FL

Atrium West, 7771 West Oakland Park Boulevard, Sunrise, FL

Joseph Byrnes
 FORT LAUDERDALE, FL - Berger Commercial Realty brokers Joseph Byrnes and Jonathan Thiel recently closed three new leases for office space at Atrium West in Sunrise.

 Byrnes and Thiel represented landlord Atrium 93, LLC in leasing 770 square feet to Cosmopolitan Travel Services Inc. for 27 months;1,875  square feet to Figtree Holdings, LLC for three years; and 1,084 square feet to the Michael L. Buckner Law Firm, P.A.  for five years.

Jonathan Thiel
 Located at 7771 West Oakland Park Blvd., the 92,689-square-foot Atrium West  office building features a completely renovated  atrium, a new interior sculpture fountain, new exterior landscaping, and renovated bathrooms.

For more information on available space and custom build-outs at Atrium West, contact Berger Commercial Realty at 954-358-0900.

 For a complete copy of the company’s news release, please contact:

Marielle Sologuren

(954) 776-1999, ext. 226

Remarks by MBA Officials During MBA's 24th Annual Commercial Real Estate Finance/Multifamily Housing (CREF) Convention & Expo in Orlando, FL

David H. Stevens
ORLANDO, FL – Abbreviated remarks by David H. Stevens, president, Mortgage Bankers Association:

Welcome to CREF, the largest gathering of commercial and multifamily real estate professionals in the United States!  At MBA, we’re celebrating 100 years of building communities and helping families realize their dreams.  We are glad that you are here to network, renew and make new business deals, and strategically prepare your businesses for the future.

Throughout our nation’s political and economic history, the enduring presence of mortgage bankers lives as a constant reminder of our purpose and our passion: We help create the building blocks of thriving communities from houses and apartments to office, retail, industrial, hotel and other commercial real estate.

Collectively, we – policy professionals and members together - represent the entire real estate finance system.  Here, in this room, in these halls, at this conference, we recognize your diversified business models and how sometimes business lines connect, and at other times, diverge with each other and your single-family colleagues.

E.J. Burke
Abbreviated Remarks by E.J. Burke, chairman, Mortgage Bankers Association:

ORLANDO, FL – Good morning!  Welcome to CREF!  Great to see so many of you here this week.

This is a special time for MBA and I’m honored to serve you as MBA’s 100th chairman. 

We join an elite group of national associations that have withstood the test of time to provide their members with 100 years of service. 

MBA’s longevity, in part, can be attributed to the legacy of strong leaders that precede me.  But it’s also about evolution.  It’s about adapting to the change that is upon us, but also looking forward to the change we know is coming. 

Every day since our inception, we’ve advanced real estate finance in America.  We’ve grown stronger, through recessions and depressions, through wars and natural disasters, and through a variety of other crises and events.

MBA Opens Doors Foundation Announces Rental Assistance Grant Program

Debra W. Still
ORLANDO, FL — The Mortgage Bankers Association’s (MBA) Opens Doors Foundation announced it was unveiling a rental assistance grant program to help families with critically ill or injured children maintain their living arrangements in the face of high health care costs. 

The announcement was made at MBA’s annual Commercial Real Estate Finance and Multifamily Housing (CREF) Convention in Orlando, FL

“MBA Opens Doors’ original program to provide mortgage payments to families with sick children continues to serve as a model for charitable giving within the real estate finance community,” said Debra Still, Chairman of MBA Opens Doors.

 “I am proud to lead this laudable effort.  However, missing from our first initiative were the millions of Americans who rent instead of own.  

"Now that we have established this important additional component of Opens Doors, we have the opportunity to keep significantly more families in their homes during their time of need.  We are committed to sustainable housing for both renters and owners.”

MBA Forecasts $300 Billion of 2014 Commercial/Multifamily Mortgage Originations

Jamie Woodwell
ORLANDO, FL  – The Mortgage Bankers Association (MBA) projects originations of commercial and multifamily mortgages will grow to $300 billion in 2014, a 7 percent increase from 2013 volumes, and continue to rise to $333 billion in 2016.  Originations of multifamily mortgages are forecast at $116 billion in 2014.

“Early indications are that commercial and multifamily lenders increased originations by 15 percent in 2013,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.

 “This year will once again see fewer loans coming up against their maturities.  But with still low interest rates, improving property fundamentals, a rebound in property prices, and higher loan maturity volumes on the horizon, we anticipate mortgage originations will continue to increase in 2014.”

MBA:  Significant Drop in Commercial and Multifamily Loan Maturities in 2014

ORLANDO, FL (February 3, 2014) – The Mortgage Bankers Association (MBA) released its 2013 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes. 

The survey found six percent, or $91.7 billion of the $1.5 trillion of outstanding commercial and multifamily mortgages held by non-bank lenders and investors, will mature in 2014. 

 That represents a 23 percent decline from the $119.5 billion that matured in 2013.  Maturities will grow to $213 billion in 2016.

The loan maturities vary significantly by investor group.  Just 3 percent ($12.7 billion) of the outstanding balance of multifamily and health care mortgages held or guaranteed by Fannie Mae, Freddie Mac, FHA and Ginnie Mae will mature in 2014. 

Life insurance companies will see 5 percent ($18.0 billion) of their outstanding mortgage balances mature in 2014.  Among loans held in CMBS, 7 percent ($41.8 billion) will come due in 2014.  Fifteen percent ($19.2 billion) of commercial mortgages held by credit companies and other investors will mature in 2014.

“2014 will be the fourth straight year of declining commercial/multifamily mortgage maturities,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.  

“Following 2014, we will see volumes spike – by 72 percent in 2015 and an additional 34 percent in 2016, as ten-year loans made in 2005, 2006 and 2007 begin to come due.”

Q4 Commercial and Multifamily Mortgage Originations Highest Since 2007

ORLANDO, FL — Commercial and multifamily mortgage originations increased 34 percent between the third and the fourth quarters of 2013, and were up 16 percent compared to the fourth quarter of 2012, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers’ Originations. 

MBA’s commercial/multifamily mortgage bankers’ originations index shows originations for the full year 2013 were 15 percent higher than in 2012.

MBA Releases 2013 Year-End Commercial/Multifamily Servicer Rankings

ORLANDO, FL  – The Mortgage Bankers Association (MBA) released its year-end ranking of commercial and multifamily mortgage servicers’ volumes as of December 31, 2013. 

At the top of the list of firms is Wells Fargo with $434.4 billion in U.S. master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $369.6 billion, Berkadia Commercial Mortgage LLC with $235.4 billion, KeyBank National Association with $169.7 billion, and GEMSA Loan Services, L.P. with $95.6 billion.

For a complete copy of the company’s news releases, please contact:

Shawn Ryan
(202) 557-2727