Mercantile Commercial Capital Closes on Five Commercial Loans in May Totaling More Than $5.4M

ALTAMONTE SPRINGS, FL--- Mercantile Commercial Capital, LLC, which specializes in U.S. Small Business Association (SBA) 504 loans for small business owners who want to acquire or develop their own facilities, reported it closed on five commercial loans in May that totaled $5,436,051.

Christopher G. Hurn, (top right photo) president of Mercantile Commercial Capital, said one of the loans, which totaled $1,064,250, will finance the acquisition and renovation of a 7,600 square foot industrial facility in Anchorage, Alaska.

Dynamic Energy Group, LLC, an electrical contractor and satellite television installer, borrowed the funds on a 25-year, fully-amortized term with a below-market five-year fixed interest rate and only 10 percent down.

Other commercial loans in May included:

• $1,482,801 to Apple Hostels of Philadelphia, LLC to acquire and renovate a three-story, 8479-square foot hostel facility with a 25-year, fully-amortizing term and a below-market five-year fixed interest rate, with only 10 percent down;

• $495,000 to Higgins Sport & Lawn, Inc., to develop and build a 4,500-square foot industrial facility in Syracuse, ¬IN, with a 25-year, fully-amortizing term and a below-market, five-year fixed interest rate, with only 10 percent down;

• $1,809,000 to Curran Martial Arts Academy, Inc., to acquire a 24,000-square foot martial arts academy in Crystal Lake, IL, with a 25-year, fully-amortizing term and a below-market, five-year fixed interest rate with only 10¬¬% down;

• $585,000 to Radiant Lighting Services, Inc., to acquire and renovate a 6,352-square foot industrial facility in Westminster¬, Col. with a 25-year term and a below-market five-year fixed interest rate with only 10¬¬% down.

Mercantile Commercial Capital, LLC, is one of the nation’s leading providers of SBA-504 loans. Since January, the firm closed on 19 loans for $28 million.

For more information please contact:
Chris Hurn, Mercantile Commercial Capital, LLC 407-786-5040
Geof Longstaff, Mercantile Commercial Capital, LLC 407-786-5040
Larry Vershel or Beth Payan, LV Communications, 407-644-4142

Davidson Hotel Company/RockBridge Partners Joint Venture Acquires Hyatt Regency Suites in Palm Springs, CA

Davidson Will Manage Hotel and Coordinate $18.5 Million Renovation

MEMPHIS, TN—RockBridge Partners, an affiliate of RockBridge Capital, LLC, and Davidson Hotel Company, one of the nation’s largest hotel management companies, have announced the joint-venture acquisition of the 194-room Hyatt Regency Suites (top right photo) in Palm Springs, Calif. from PSH Holdings, Inc. for an undisclosed amount.

Davidson holds a minority interest in the partnership and took over management of the property on June 1. The hotel will undergo a comprehensive $18.5 million renovation, scheduled to begin summer 2009, which Davidson will coordinate.

“The Palm Springs Hyatt is our 10th acquisition with RockBridge and our third acquisition this year,” said John A. Belden, (middle left photo) Davidson’s president and chief executive officer. “We now have ownership interests in 16 properties, and we have the financial capacity to opportunistically co-invest with our partners.

“Davidson was one of the first independent management companies to be designated by Hyatt as an ‘Approved Operator,’ and we believe the Hyatt brand fits perfectly within our portfolio,” he added. “This is our second Hyatt-branded hotel, both of which are in resort locations. The Palm Springs Hyatt Regency Suites is also our fifth property in Southern California, a key growth area for Davidson.”

Located at 285 North Palm Canyon Drive, the property is situated in what many regard as the ultimate desert resort destination in the U.S.

The hotel’s 194 one-bedroom suites overlook a dramatic six-story atrium, and the hotel’s amenities include private balconies, spectacular mountain/desert views, high-speed Internet access, a full-service dining room, a putting green, pool, spa, 9,200 square feet of flexible meeting space and access to more than 40 nearby golf courses.

In summer 2009, the property will begin an $18.5 million renovation that will touch virtually every aspect of the hotel. The lobby, atrium, restaurant, and lounge will be completely re-concepted and upgraded.

The guest suites will be fully refurbished with luxury-quality finishes and materials, all new Hyatt-standard bed sets and 37” flat panel TVs in the bedroom of the suites and 42” flat panel TVs in the parlor. An all-new fitness center and full-service spa will be added.

The meeting rooms will undergo a complete renovation, while the pool and outdoor lounge area will be completely re-developed to enhance the resort experience with cabanas, fire pits, and multiple lounging areas around a new pool.

“We believe this property has significant growth potential, and with the completion of its dramatic renovation, will be a formidable, four-star competitor in this premier resort destination,” said Steve Margol, (middle right photo above) Davidson’s executive vice president, business development.

Both the buyer and seller were advised on this transaction by Newport Beach-based Maxim Hotel Brokers.

Contacts:
Cyndi Norwood, Davidson Hotel Co., 901 821 4155, cnorwood@davidsonhotels.com

Jerry Daly, Chris Daly (media), Daly Gray Public Relations, 703 435 6293, jerry@dalygray.com

Julie Tullbane, Daly Gray Public Relations, T 703-435-6293. F 703-435-6297 julie@dalygray.com

MBA Reports Commercial Mortgage Delinquencies Remain Low

WASHINGTON, DC-- Delinquency rates on commercial/multifamily mortgages remain low - up slightly from the fourth quarter of 2007 but finishing the first quarter of 2008 near record lows for most major investor groups.

"In contrast to mortgages for single-family residential properties, commercial/multifamily mortgages continue to perform very well," said Jamie Woodwell, (top right photo) MBA's Senior Director of Commercial/Multifamily Research. "Most investor groups saw delinquency rates rise slightly in the first quarter, but they remain at the low end of their historical range."

The 30+ day delinquency rate on loans held in CMBS rose 0.08 percentage points to 0.48 percent. The 60+ day delinquency rate on loans held in life company portfolios remained flat at 0.01 percent.

The 60+ day delinquency rate on multifamily loans held or insured by Fannie Mae rose 0.01 percentage points to 0.09 percent. The 60+ day delinquency rate on multifamily loans held or insured by Freddie Mac rose 0.02 percentage points to 0.04 percent. The 90+day delinquency rate on loans held by FDIC-insured banks and thrifts rose 0.21 percentage points to 1.01 percent.

The MBA analysis looks at commercial/multifamily delinquency rates for five of the largest investor-groups: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, Fannie Mae and Freddie Mac.

Together these groups hold more than 80 percent of commercial/multifamily mortgage debt outstanding.

The analysis incorporates the same measures used by each individual investor group to track the performance of their loans. Because each investor group tracks delinquencies in its own way, delinquency rates are not comparable from one group to another. (Federal Reserve Bank in Washington, DC is at right)

Based on the unpaid principal balance of loans (UPB), delinquency rates for each group at the end of the fourth quarter were as follows:

· CMBS: 0.48 percent (30+ days delinquent or in REO);
· Life company portfolios: 0.01 percent (60+days delinquent);
· Fannie Mae: 0.09 percent (60 or more days delinquent)
· Freddie Mac: 0.04 percent (60 or more days delinquent);
· Banks and thrifts: 1.01 percent (90 or more days delinquent or in non-accrual).

To put these numbers in context, of 35,192 commercial/multifamily loans in life company portfolios, with a total unpaid principal balance of $249 billion, only 10 loans with an aggregate UPB of less than $29 million were 60+ days delinquent at the end of the quarter. Of $1.2 trillion of commercial/multifamily loans at FDIC-insured banks and thrifts, only $12 billion was 90+ days delinquent.

CONTACT: Jason Vasquez, (202) 557-2950, jvasquez@mortgagebankers.org

HFF Closes Sale of North Point Office Complex in Cleveland’s Central Business District

NEW YORK, NY – The New York and Pittsburgh offices of HFF (Holliday Fenoglio Fowler, L.P.) have jointly closed the sale of North Point Office Complex, (top right photo) two buildings totaling 877,335 square feet in Cleveland, Ohio’s central business district.

HFF senior managing directors Glenn Whitmore (top left photo) and Dave Nackoul, associate director Dan Byrnes and real estate analyst Tom Rieck led the investment sales team exclusively on behalf of the seller, a global financial institution.

HRPT Properties Trust purchased the complex for an undisclosed amount.

North Point Office Complex consists of five-story, 286,540-square-foot North Point I (Jones Day Building) and 19-story, 590,795-square-foot North Point II (North Point Tower).

Combined, the properties are 92% occupied by tenants including Jones Day (serves as its world headquarters), Wachovia Securities, United Healthcare and various United States Government departments and entities.

The buildings are connected via a nine-story atrium and share amenities including an 100-seat amphitheater, conference center, concierge desk, fitness center and restaurant with outdoor deck facing Lake Erie.

Situated on a nearly seven-acre site at 901 and 1001 Lakeside Avenue, North Point Office Complex is close to the Cleveland Browns football stadium, City Hall and the shores of Lake Erie.

A light rail stop across the street provides transportation to the Cleveland Hopkins International Airport, and Interstates 77 and 90 are a short distance from the property.

HRPT Properties Trust is a real estate investment trust, or REIT, which primarily owns office and industrial properties throughout the United States. As of March 31, 2008, HRPT owned $6.3 billion of office and industrial properties with approximately 65 million square feet located in 37 states and Washington, D.C. HRPT is headquartered in Newton, MA.

CONTACTS:

Glenn E. Whitmore, HFF Senior Managing Director, 212 245 2425, gwhitmore@hfflp.com

David A. Nackoul, HFF Senior Managing Director, 412 281 8714, dnackoul@hfflp.com

Laurie Fish McDowell, HFF Associate Director, Marketing, 617 338 0990, lmcdowell@hfflp.com

Grubb & Ellis Company Names Glen Esnard President, Capital Markets

Newly Created Position Strengthens Investment Brokerage Capabilities; Leverages Company's Expanded Platform

SANTA ANA, CA/PRNewswire-FirstCall/ -- Grubb & Ellis Company (NYSE:GBE), a leading real estate services and investment firm, announces that Glen Esnard, former President of Brokerage Services at Colliers International, has been named President, Capital Markets.

The newly created position leverages Esnard's nearly 30 years of commercial real estate experience, extensive knowledge of investment sales and the alternative real estate investment market to capitalize on Grubb & Ellis' unique ability to provide clients a full array of real estate services and investment products.

"Strengthening our capital markets capabilities and maximizing the synergies between our real estate services and investment businesses to better serve our clients are both key priorities as we build the new Grubb & Ellis," said Scott D. Peters, (top right photo) Chief Executive Officer of Grubb & Ellis Company. "Glen will be a strong addition to our management team."

CONTACT: Janice McDill of Grubb & Ellis Company, +1-312-698-6707, janice.mcdill@grubb-ellis.com

Goldman Sachs Makes Strategic Investment in Fannie Mae DUS Lender Bulls Capital Partners

VIENNA, VA, June 12, 2008 -- Goldman Sachs Commercial Mortgage Capital has made a strategic investment in Bulls Capital Partners, LLC, a Fannie Mae Delegated Underwriting and Servicing (DUS®) lender specializing in multifamily housing loans.

In addition to taking a minority interest in Bulls Capital Partners, Goldman Sachs Commercial Mortgage Capital will source loans to Bulls Capital Partners. Specific deal terms were not disclosed.

"Goldman Sachs Commercial Mortgage Capital's involvement in Bulls Capital Partners signals an expansion of our business at a time of great opportunity for the Fannie Mae DUS Program," said Herman Bulls, (top right photo) President and CEO of Bulls Capital Partners. "This venture clearly benefits clients of both firms."

Bulls Capital Partners, LLC is a Fannie Mae-approved Delegated Underwriting and Servicing (DUS®) lender that offers a full array of financing solutions to owners of multifamily property. Bulls Capital Partners' key capabilities under the DUS program include small loan solutions, affordable housing solutions, student housing, market-rate multifamily mortgages, and credit facilities, among other offerings.

About Bulls Capital Partners, LLC

Bulls Capital Partners, LLC is a joint venture of Goldman Sachs Commercial Mortgage Capital and Bulls Multifamily, LLC, a minority-controlled firm headed by President and CEO Herman Bulls.

Bulls previously ran a successful DUS lending operation, and has extensive commercial real estate experience with one of the world's leading real estate service providers.

Co-founding Bulls Capital Partners with Bulls is Mark Van Kirk, (top left photo) Chief Operating Officer. Van Kirk previously served as Director of Counterparty Risk at Fannie Mae.

Website: http://www.BullsCapitalPartners.com

About Goldman Sachs Commercial Mortgage Capital, L.P.

Goldman Sachs Commercial Mortgage Capital, L.P., a wholly-owned subsidiary of The Goldman Sachs Group Inc., is a leading full-service commercial mortgage lender, providing non-recourse, first mortgage and mezzanine financing for stabilized properties as well as for the renovation and lease-up of properties nationwide.


CONTACTS:

Bulls Capital Partners, LLC, Herman Bulls, President & CEO,
Herman.Bulls@BullsCapitalPartners.com, phone: (202)256-1814

Goldman Sachs & Co., Michael Duvally, Vice President, Michael.Duvally@GS.Com. phone: (212)902-2605