Thursday, August 13, 2009

Brookfield Stock Issue Grosses $1.04B; Weingarten Offering Set at $100M; HPT Selling 8M Shares

NEW YORK, NY—Another busy day in the financial markets.

Brookfield Properties Corp. announced its underwriters exercised their entire over-allotment option to purchase an additional 7.125 million common shares of Brookfield Properties at a price of $9.50 per share.

At the same time, Brookfield Asset Management (BAM: NYSE, TSX) is purchasing directly or indirectly 7.125 million shares representing an equivalent number of shares on a pro rata basis.

The gross proceeds to Brookfield Properties from the exercise of the over-allotment option and the concurrent sale of additional shares to Brookfield Asset Management total $135.4 million.

The total gross proceeds to Brookfield Properties raised in the equity offering from the combined share issuances total $1.04 billion.

Closing is expected to occur on August 21, 2009. RBC Capital Markets, Citi, Deutsche Bank Securities and TD Securities are acting as joint book-running managers.

Weingarten Realty Investors Prices $100M of Senior Unsecured Notes

In Houston, TX, Weingarten Realty Investors (NYSE:WRI) announced today the pricing of $100 million of 8.10% notes due 2019 in an underwritten public offering through Wells Fargo Securities, LLC, RBC Capital Markets Corp. and Morgan Keegan & Co., Inc., as joint book-running managers.
The offering is expected to close on Aug. 19, 2009, subject to customary closing conditions.

The company intends to use the net proceeds of the offering for general business purposes, including reducing amounts outstanding under its revolving credit facility.
Hospitality Properties Trust Selling 8M Common Shares
In Newton, MA, Hospitality Properties Trust (NYSE: HPT) announced it has priced a public offering of eight million common shares at $17.25 per share. The settlement of this sale is expected to occur Aug. 14, 2009.

HPT expects to use the net proceeds to repay debt and for general business purposes. The underwriters have been granted a 30-day option to purchase up to an additional 1,200,000 shares to cover over allotments, if any. The offering size was increased from the previously announced five-million-share offering.

The joint book-running managers are Morgan Stanley, Citi and RBC Capital Markets. The co-lead managers for this offering are Morgan Keegan & Co., Inc., UBS Investment Bank and Wells Fargo Securities. The co-managers for this offering are Janney Montgomery Scott and Oppenheimer & Co.

HFF Arranges $72M Financing of London Properties for TJAC International

In Boston, MA, Holliday Fenoglio Fowler, L.P. arranged $72 million in financing for TJAC International on two multifamily properties in London, England.

Working on behalf of the borrower, HFF director Anthony Cutone placed the loan through CTL Capital, LLC.
Proceeds are being used to acquire and renovate the properties for residential use. Andrew Mann, a managing partner at The Triad Group, represented the buyer, TJAC International, in the sale.

The two properties are located in the Bloomsbury area of central London close to two London Underground stations and numerous hospitals and academic institutions. Byron Court, located at 24-36 Mecklenburgh Square, is a five-story 53-unit building and 74-76 Guilford Street will have 19 residential flats post renovation.

HFF arranges $27.5M refinancing for retail power center in Torrance, CA

LOS ANGELES, CA – The Los Angeles office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has arranged a $27.5 million refinancing for Torrance Promenade, (top left photo) a 266,847-square-foot retail power center in Torrance, California.

Working exclusively on behalf of Kimco Realty Corporation, HFF director Tina Derderian placed the five-year, 7.25% fixed-rate loan with an off-shore pension fund.

Kimco Realty Corporation is a public retail real estate investment trust (REIT) specializing in the ownership and management of neighborhood and community shopping centers throughout the United States.

Torrance Promenade is located at 19800 to 20100 Hawthorne Boulevard two miles south of the 405 Freeway in Torrance. Major tenants include Trader Joe’s, Office Depot, Marshalls, Same Ash Megastore, Ross Dress for Less, Loehman’s, Tuesday Morning and Party City.
In addition, a Sears Outlet, the center’s largest tenant, recently opened. Current occupancy is 85%.

“Torrance Promenade boasts consistently high sales and occupancy rates, which are in part due to the advantageous location along the area’s main retail corridor near affluent Southern California cities including Torrance, Palos Verdes, Redondo Beach and Hermosa Beach,” said Derderian.
Tina Derderian, CPA CA Lic. # 01816996, HFF Director (310) 407-2100,
Kristen Murphy, HFF Associate Director, Marketing, (713) 852-3500,

HFF arranges $9.1M construction loan for West Orange, NJ medical office condominium building

FLORHAM PARK, NJ – The New Jersey office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has arranged a $9.1 million construction loan for 375 Mt. Pleasant Avenue, (top right rendering) a medical office condominium building currently under construction in West Orange, New Jersey.

HFF senior managing director Jon Mikula (middle right photo) and associate director Michael Klein (bottom left photo) worked exclusively on behalf of The Hampshire Companies to secure the 24-month, adjustable-rate loan through Valley National Bank.

The loan has two, one-year extension options. Since 2001, HFF has arranged more than $375 million in financing for The Hampshire Companies.

The property, which is situated on an 11-acre parcel, was the former Organon headquarters campus.

Due for completion by year end 2009, 375 Mt. Pleasant Avenue will have 106,000 square feet of medical office condominium space. The property’s first tenant, New Jersey Cardiology Associates, has taken occupancy in a 22,524-square-foot space in the first phase of the building.

The property is close to Interstate 280 approximately 14 miles west of Manhattan in West Orange.

“Upon completion, the property will feature modern design and amenities such as garage parking for doctors and senior staff; an added convenience for both patients and employees,” said Mikula. “In addition, the building is zoned ‘hospital’, which makes the subject a fit for all medical uses.”
The Hampshire Companies, a full-service, private real estate investment manager with equity in assets valued at over $2 billion, targets the development or purchase, and operation of investment-grade neighborhood supermarket-anchored centers, single-tenant retail facilities, warehouse/distribution facilities, office buildings, and self storage facilities located in the Mid-Atlantic and Northeast regions of the United States.

The company currently operates a diversified national portfolio of properties totaling more than 20 million square feet with $1 billion of equity under management.

Jon Mikula, HFF Senior Managing Director, (973) 549-2000,
Kristen Murphy, HFF Associate Director, Marketing, (713) 852-3500,

Lisa Bailey Joins Morrison Commercial Real Estate

ORLANDO, FL (Aug,, 2009): Morrison Commercial Real Estate is proud to announce that Lisa Bailey (top right photo) has joined its team as Vice President.

Bailey, a 20-year veteran of commercial real estate, has been a leader in the Orlando commercial real estate market, successfully completing over 700 transactions.

Bailey, who was named a CoStar Power Broker earlier this year and earned a spot in Florida Real Estate Journal’s Top 20 Women in Commercial Real Estate in 2007, is a CCIM candidate and serves on the board of the Central Florida Chapter of CCIM.

In her role at Morrison Commercial, Bailey will be representing clients throughout Central Florida with a focus on the leasing and sale of office and industrial properties. She brings to Morrison Commercial a portfolio of listing assignments totaling 960,000 square feet.

Addressing the qualities Bailey brings to Morrison Commercial Real Estate, Greg Morrison (bottom left photo) said, “I am pleased to have Lisa join the firm. I’ve worked with her in the past and have always been impressed with her business and work ethics. Lisa’s experience and track record make her a perfect fit for our team.”

Contact: Greg Morrison, 407.219.3500,

CBRE Reports Commercial Real Estate Prospects for Rest of Year are Mixed

BOSTON, MA--Prospects for commercial real estate during the balance of this year remain mixed.

"Back from the Brink... But What Next?," a new Global MarketView issued by CB Richard Ellis Research and Consulting, sees some stabilization and recovery for the commercial real estate market at the mid-point of 2009.

The report notes the obvious indicators of weak market conditions but also identifies some positive developments, including initial signs of recovery in some regions.

There has been an uptick in investment sales volume in Asia, where the market has adjusted quickly and pricing may have hit bottom in some cities in Q2. However, overall prime office rental rates in Asia dropped in Q2 and a number of office markets continued to record negative net absorption and falling occupancy rates.
In the Pacific, there were signs that property markets was stabilizing after 18 months of turmoil caused by the global financial crisis. Some larger investment transactions are finally taking place; the amount of sublease office space coming onto the market is slowing; and both consumer and business confidence measures are now improving.

Activity in the EMEA investment market inched up to €13 billion, from €11.6 billion in Q1 2009. While it is too early to predict a sustained upturn, there is some expectation that Q4 could see a modest further improvement in transaction volumes. However, office leasing activity in the main European markets is still very subdued.

Vacancy rates in the U.S. office, industrial and retail property markets continued to rise in Q2 2009. The U.S. office vacancy rate increased by 80 bps during Q2 2009 to 15.5%, while the national industrial availability rate increased 80 bps during Q2 2009 to 13.0%. However in Canada, office vacancy rose at a slower rate then in the U.S.

The report was prepared by Nick Axford (middle right photo), Andrew Ness middle left photo), Kevin Stanley (bottom left photo), Raymond Wong (top left photo) and Raymond Torto (top right photo).

For further details on the CBRE report, please contact or

Florida's Existing Home, Condo Sales Rise in 2Q 2009

ORLANDO, FL /PRNewswire/ -- Sales of existing single-family homes in Florida rose 23 percent in second quarter 2009 compared to the same period a year earlier, according to the latest housing statistics from the Florida Association of Realtors (FAR).

A total of 43,125 existing homes sold statewide in 2Q 2009; during the same period the year before, a total of 35,008 existing homes sold.

It marks the fourth consecutive quarter that Florida has seen higher existing year-to-year home sales, according to FAR.

Sales of existing condominiums statewide in the second quarter rose 29 percent compared to the same time the previous year.

This marks the third consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.Statewide sales activity in 2Q 2009 also increased over 1Q 2009's sales figure in both the existing home and existing condo markets, FAR records show.

For 2Q 2009, statewide sales of existing homes rose 37.2 percent over the 1Q 2009 figure; existing condo sales statewide in 2Q 2009 increased 45.3 percent over the 1Q 2009 level.

"In spite of the challenges with the economy, most people - 83 percent - still believe that buying a home is a good financial decision, according to a recent survey from the National Association of Realtors (NAR)," says 2009 FAR President Cynthia Shelton, (top right photo) CCIM, CRE, a broker and director of investment sales with Colliers Arnold in Orlando.

(CCIM stands for Certified Commercial Investment Member and CRE is the Counselor of Real Estate designation). "Many homebuyers are realizing that this is the time to buy - with a good selection of housing inventory, affordable pricing and low mortgage rates.

For a complete copy of FAR's release, please contact:
Marla Martin, Communications Manager, +1-407-438-1400, ext.2326, or
Jeff Zipper, Vice President of Communications, +1-407-438-1400, ext.2314

CB Richard Ellis Realty Trust buys Class A Orlando Office Building

PRINCETON, N.J. – Aug. 13, 2009 – CB Richard Ellis Realty Trust has purchased a 124,500 sf state-of-the-art Class A office building in Orlando that is fully leased to Kaplan, Inc.’s higher education division on a long-term lease.

The CBRE Realty Trust team worked with Jeffrey Torto and the acquisitions team from CBRE Investors to acquire this property.

The office building is strategically located at 12650 Ingenuity Drive (top right photo) in the prestigious master-planned Central Florida Business Park, a cooperative between the University of Central Florida and Orange County, Fla., to promote research and development activity.

The CFRP is occupied by a variety of corporate tenants in high-tech information, intelligence and defense-related industries and is considered one of the top 10 science parks in the United States. The park is in close proximity to Orlando’s CBD and the international airport, with easy access to State Roads 408 and 417, Highway 50 and the Florida Turnpike.

The building, which was completed in 1999, includes a two-story, 25-foot high glass atrium with a spiraling, open staircase.

The building has a high technology infrastructure, including a self-contained data center room with a redundant, uninterruptible power supply and special features to protect the room in the event of roof leakage or severe weather.

It also includes an on-site cafeteria, integrated work furniture, and a market-high 7/1,000 sf parking ratio.

Kaplan, a premier provider of educational services for individuals, schools, and businesses worldwide, is using the facility as a customer support center for its higher education division.

“This state-of-the-art building expands our portfolio of high-quality properties with strong tenancies in the Orlando area,” said Phil Kianka, Executive Vice President and Chief Operating Officer for CB Richard Ellis Realty Trust.

Contact: Pam Barnett, 213.683.4368,

HFF arranges $72M financing for London properties on behalf of TJAC International

BOSTON, MA – The Boston office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it arranged $72 million in financing on behalf of TJAC International for two multifamily properties in London, England.

Working on behalf of the borrower, HFF director Anthony Cutone (top left photo) placed the loan through CTL Capital, LLC.

Proceeds are being used to acquire and renovate the properties for residential use. Andrew Mann, a managing partner at The Triad Group, represented the buyer, TJAC International, in the sale.

The two properties are located in the Bloomsbury area of central London (middle right photo) close to two London Underground stations and numerous hospitals and academic institutions.

Byron Court, located at 24-36 Mecklenburgh Square, is a five-story 53-unit building and 74-76 Guilford Street will have 19 residential flats post renovation.

The Triad Group, who exclusively represented TJAC International, was initially started by the late Richard Sternberg in 1985 and grew into one of the nation’s most respected retail real estate firms.

Now in 2009 under the leadership of Michael Sternberg and Andy Mann, The Triad Group has re-emerged and is poised to take its place among industry leaders; now with a global reach.

A full-service real estate firm with experience worldwide, The Triad Group offers clients a complete scope of services from landlord and tenant representation to construction and the long-term management of assets.
Recent transactions range from Boston-based retail and office leases to international buyer representation with projects throughout Europe, the United Kingdom and Australia.

The Triad Group differentiates itself from competition by offering a truly one stop shop for all real estate needs.

TJAC International is an international real estate development company focused on residential and retail properties. TJAC has successfully completed more than one billion dollars worth of projects to date.

Anthony Cutone, HFF Director, (617) 338-0990,
Andrew Mann, The Triad Group Managing Partner, (617) 739-0009,
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-350,