RECI Says 'Mission Money' Keeps Commercial Realty Markets Afloat

CHICAGO, IL, Oct. 8, 2008 - Swooning financial markets continue dislodging all sectors of real estate capital with a vengeance.

Funding sources retreat from income-property lending on a daily basis because of liquidity concerns, profitability, overexposure and a host of other factors plaguing this sector.

No conventional lenders are immune including banks, life insurance companies, savings institutions and private funding sources.

Yet a few bright stars shine in the otherwise pitch-dark capital markets.

These stars are lenders with funding goals and objectives that are not exclusively driven by profits.

The Real Estate Capital Institute identifies this group of funding sources as "Mission Money" who provide "Policy Proceeds."

According to John Oharenko, (top right photo) an industry veteran serving on the advisory board of The Real Estate Capital Institute® and senior vice president at Chicago-based Capmark Finance Inc., "In 2009 and 2010, Mission Funds will play an even more important role in supporting real estate capital markets as many conventional funds stay sidelined.”

He adds, ” Even as conventional markets recover, Mission Money will remain a reliable source of funds for developers, investors and others willing to learn about and implement these targeted programs."

The four highlights of Mission Money are as follows:

1. Purpose: Mission fund objectives vary focusing on public policy (e.g., affordable housing, urban renewal), labor creation, specific geographic investing and property types to name a few.

Typical examples include generating jobs through union labor funds, constructing affordable apartments and reinvigorating economically deprived commercial areas.

Often times, many of these objectives are bundled - e.g., affordable housing with union labor in redeveloping urban "infill" areas endowed with heavy tax incentives.

2. Property Types: Unlike pure non-profit funding sources, Mission Money exclusively targets income properties, namely commercial and multifamily properties.

3. Policy Proceeds: Direct funding structures include construction, interim and permanent loans as well as equity contributions. Popular indirect fundings include tax credits, tax breaks and rebates.

4. Sources: The lending arena includes federal governmental agencies (e.g. Freddie Mac, Fannie Mae, FHA and the Treasury) and local municipalities (tax increment districts), endowments, pension funds, life companies and private capital providing funds directly (construction and permanent funds) and indirectly (tax credits).

ABOUT US:

The Real Estate Capital Institute® is a volunteer-based research organization tracking debt and equity rate data. The Institute posts daily and historical rates including treasuries and short-term rates. The Real Estate Capital RateLine 7RE-CAPITAL (773-227-4825) provides hourly updates.

CONTACT:

The Real Estate Capital Institute®
3517 West Arthington Street
Chicago, Illinois USA 60624
Contact: Nat Zvislo, Research Director
Toll Free 800-994-RECI (7324)
director@reci.com / http://www.reci.com/

Davis Marcus Partners Signs Tygris Commercial Finance to Wilton Corporate Park's 40 Danbury Road

The First Green Office Building in Fairfield County Signs Second Tenant

WILTON, CT/PRNewswire/ -- Davis Marcus Partners, one of New England's leading real estate development companies, has signed Tygris Commercial Finance (Tygris), a commercial finance company, to a long term lease to occupy 14,687 square feet of space at the newly completed and environmentally sustainable 40 Danbury Road. (top right photo)

The first Gold LEED (Leadership in Energy and Environmental Design) pre-certified office building in Connecticut, 40 Danbury Road is set within the 33 acre landscaped office campus at Wilton Corporate Park (middle left photo) and located at the center of Fairfield County's Route 7 corporate corridor.

Tygris becomes the second tenant to occupy space at the 161,222 sq. ft., three story, Class A office building. Louis Dreyfus Corporation, the first tenant, occupies the entire top floor.

"Despite the slowdown in the overall commercial real estate market, we are seeing a great level of interest and activity around Wilton Corporate Park," comments David Fiore, senior vice president for Davis Marcus Partners.

"We are very encouraged and believe our LEED standards combined with our flexibility to accommodate both large and small tenants make Wilton Corporate Park one of the most desirable office building complexes in the market."

Albert B. Ashforth, Inc of Stamford, CT is the leasing agent for Wilton Corporate Park, and is represented by Jeffrey H. Gage and Edward Tonnessen. (middle right photo) Tygris was represented by Tom Pulie of USI Real Estate Advisors.

"The emergence of Route 7 in Wilton as an established business corridor and the competitive economics of the area make Wilton Corporate Park a very attractive choice," notes Tonnessen, executive vice president of Albert B. Ashforth. "That combined with Davis Marcus' notable reputation in the marketplace and David Fiore's personal, hands-on management of tenant construction has proven to be very appealing to tenants and was instrumental in securing Tygris."

Prudential Real Estate Investors (PREI(R)) is Davis Marcus' joint venture partner on the Park. This is the seventh project for Davis Marcus and PREI, the real estate investment advisory and management business of Prudential Financial, Inc. (NYSE:PRU).

As of June 30, 2008, PREI managed $47.4 billion of gross assets management ($32.2 billion net assets) on behalf of more than 400 clients and is ranked among the largest real estate investment managers.

CONTACT: Jeyran Ghara, +1-212-777-2220, jghara@southardinc.com, of Southard Communications for Davis Marcus Partners

Web Site: http://www.davismarcus.com/

http://www.wiltoncorporatepark.com/

Hotel Brokers International Sells Landmark 10,000th Hotel

Hotel Group Gears Up for 50th Anniversary

KANSAS CITY, MO—Hotel Brokers International (HBI), the nation’s largest hotel brokerage organization with more than 30 offices from coast to coast, has brokered its landmark 10,000th hotel transaction.

The deal comes as HBI prepares to celebrate its 50th anniversary in 2009.

A $10.2 million package deal of two Holiday Inn Express hotels included the 77-unit Holiday Inn Express, Austinburg, Ohio, (middle left photo) which sold for $5.6 million, and the 64-unit Holiday Inn Express, Newton Falls, Ohio, which sold for $4.4 million.

“We’ve sold more than 150 different branded hotels and countless independents in our 49-year history,” said H. Brandt Niehaus, (top right photo) CHB, president of HBI and Louisville-based Huff, Niehaus & Associates, Inc.

“These mid-market properties are typical HBI sales. The vast majority of our hotel transactions are in the mid-market segment, which, of course, dominates the industry.

" No organization sells more hotels in this sector than HBI. We also are active in virtually all the other segments from upper-upscale through economy.

“Through the first six months of 2008, HBI transactions remained strong, compared to the rest of the industry,” he said. “However, we expect hotel sales to pause while the market digests all of the changes currently taking place on Wall Street.

“Financing, while more difficult to obtain, remains available, particularly for hotel transactions below the $10 million to $15 million level. We expect hotel real estate transaction activity to gain momentum later this year and accelerate into 2009.”

Errol D’Souza, (middle left photo) CHB, president, Laurel Real Estate Co. of Columbus, Ohio was the HBI selling broker. “We arranged financing through the CDC in Ohio for two SBA 504 loans in order to get the transaction done in today’s market,” D’Souza said. “Mid-market hotels remain in high demand, and, fortunately, financing at historically attractive rates is available from multiple sources.”

Asmukh Patel and Rakesh Patel of New York, new owners of the properties, commented, “Errol D’Souza brought us two good assets and a professional management team to operate the hotels for us.”

Raxit Shah, (bottom right photo) president, Liberty Group of St. Petersburg, Fla. said, “As the seller, we found Errol’s professionalism created a transaction that allowed us to retain the management of the hotels. It worked out beautifully for both sides.”

CONTACTS:

Glenda Webb, Hotel Brokers International, (816) 505-4315

Jerry Daly, Patrick Daly, Daly Gray Public Relations, (703) 435-6293

Tilt-Con Starts Ring Power Facility in Riverview, FL

TAMPA, FL – Tilt-Con Corporation, Orlando, is under way on the new 130,486-square-foot Ring Power Riverview, Phase III, facility in Riverview, in Hillsborough County, FL, under its contract with design/builder Stellar, Jacksonville, FL.

Ranked as Florida’s largest tilt-up concrete constructor by Southeast Construction magazine, Tilt-Con utilizes its economical system for tilt-up concrete walls. Completion of Tilt-Con’s scope of work including foundations, slab-on-grade, tilt-up concrete wall panels, mezzanines and walkways is slated for completion in early 2009.

Firm Starts Work on Valdosta State University's new multimillion-dollar 4-story, 118,368-square-foot Student Union building in Valdosta, GA

ALTAMONTE SPRINGS, FL – Altamonte Springs-based Tilt-Con Corporation is under way on Valdosta State University’s new multimillion-dollar 4-story, 118,368-square-foot Student Union building in Valdosta, GA, under its contract with Skanska USA Building.

Selected for its unrivaled performance and speed of execution, Tilt-Con utilizes its multi-story economical system for tilt-up concrete walls. Ranked as Florida’s largest tilt-up concrete constructor by Southeast Construction magazine, Tilt-Con’s scope of work includes foundations, slab-on-grade and tilt-up concrete wall panels. Designed by Ellis, Ricket and Associates, Valdosta, the project is slated for completion in January 2009.

Tilt-Con, completes new 150,000-square-foot AVE Aviation and Commerce Center in Opa-Locka, FL

MIAMI, FL – Tilt-Con Corporation, Tamarac, completed the new 150,000-square-foot AVE Aviation and Commerce Center (bottom right aerial photo) at 14200 NW 57th Avenue in Opa-Locka, FL, under contract with Link Construction Group, Miami.

Selected for its unrivaled performance and speed of execution, Tilt-Con utilized its economical system for tilt-up concrete walls. Tilt-Con’s scope of work included foundations, slab-on-grade and tilt-up concrete wall panels. The project was designed by RLC Architects, Boca Raton, FL. Tilt-Con’s South Florida office is located at 10601 State Street, Suite 10, Tamarac, FL 33321, phone 1-800-446-8458.

Contact: Kenneth H. Cristol, 407-774-2515

Arbor Closes $7.6M in Michigan and Connecticut Loans

Hickory Hollow Cooperative Townhouses in Wayne, MI Gets $4M Fannie Mae Co-op Loan

UNIONDALE, NY -– Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the funding of a $4,000,000 loan under the Fannie Mae Co-op product line to refinance the 267-unit complex known as Hickory Hollow Cooperative Townhouses (top right photo) in Wayne, MI.

The 30-year loan amortizes on a 30-year schedule and carries a note rate of 7.14 percent.

The loan was originated by Michael Jehle,(middle left photo) Director, in Arbor’s full-service Michigan lending office. “The members of this cooperative have big plans for many capital improvements to their property,” said Jehle. “By decoupling their HUD 236 mortgage, Arbor was able to provide, in part, these renovation funds with a long term, attractive fixed rate loan.”

Arbor Closes $1.6M Fannie Mae DUS® Small Loan on The Pines Apartments in East Lansing, MI

UNIONDALE, NY– Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, has funded a $1,600,000 loan under the Fannie Mae DUS® Small Loans product line to refinance the 44-unit complex known as The Pines Apartments (bottom right photo) in East Lansing, MI.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.25 percent.

The loan was originated by Michael Jehle, Director, in Arbor’s full-service Michigan lending office. “Arbor was successful in providing long-term fixed rate financing for this student property,” said Jehle. “The entire process went very smooth for this repeat client of ours.”

Arbor Closes $2M Fannie Mae DUS® Loan on Heritage House Apartments in New London, CT

UNIONDALE, NY, Oct. 8, 2008 – Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, has funded a $2,000,000 loan under the Fannie Mae DUS® product line to refinance the 60-unit complex known as Heritage House Apartments in New London, CT.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.04 percent.

The loan was originated by John Edwards, (bottom left photo) Vice President, in Arbor’s full-service Boston, MA lending office.

“We were pleased with the opportunity to provide low leverage financing for a strong owner and operator,” said Edwards

Contact: Ingrid Principe, Tel: (516) 506-4298, iprincipe@arbor.com

Marcus & Millichap Sells 223-Unit Apartment Community in Roseville, CA

ROSEVILLE, CA– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of Venu at Galleria, (top right photo) a 223-unit multi-family community in Roseville.

The asset sold at a low 5 percent cap rate.
Kenneth Blomsterberg, a vice president investments in the Sacramento office of Marcus & Millichap, and Jesse Nickerman, an investment specialist in the firm’s Sacramento office, represented the seller and the buyer in the transaction.

“Venu at Galleria was an excellent opportunity for the buyer to acquire a recently constructed multi-family community in a highly desirable rental market,” says Blomsterberg.

“The Roseville area has enjoyed tremendous population and job growth in recent years, Venu at Galleria offered the buyer a superior location with solid demographics and the ability to add value,” added Nickerman.

Located at 301 Gibson Drive, the apartment community consists of 26 two- and three-story buildings situated on approximately 12 acres within walking distance of the Galleria Mall.

The property is near the intersection of Highway 65 and Interstate 80 and directly across from the site of a planned Placer County Convention Center and Embassy Suites Hotel.

Built in 2003, Venu at Galleria features a strong mix of studios, one-, two- and three-bedroom units with 15 distinct floor plans.

Unit amenities include nine-foot ceilings, decorative ceiling fans, designer, color-coded interiors, custom wood cabinets, large pantries, Roman soaking tubs and spacious patios/balconies.

Gas burning fireplaces and attached garages are available in select floor plans. Community amenities include a resort-style swimming pool and spa, fitness center, lounge, business center, interactive game room/movie theater, personal concierge services and in-house spa.

Press Contact: Stacey Cors, o Communications Department, (925) 953-1716