Grubb & Ellis|Commercial Florida Completes Deals Totaling Almost 100,000 SF

Tampa Bay retail landlords cutting lease renewal deals to keep Tenants happy

TAMPA, Fla. – Commercial property landlords in the Tampa Bay region have been cutting generous deals to lure new tenants to empty spaces and now they are extending those offers to keep good retail tenants happy, reports Michelle Seifert, (top right photo) associate vice president of the Retail Services Group at Grubb & EllisCommercial Florida.

Lease renewal deals range from rent concessions and interior improvements to legal fees, lease administration, brokerage costs and common area maintenance, Seifert explained.

Landlords are relaxing terms, reducing minimum lease periods or locking in reduced rents for longer periods.

Some property owners are willing to lose a little money in order to avoid a big empty storefront suite, and that means strong tenant representation by an experienced commercial property broker can result in savings worth thousands of dollars.

“This stage of the economic cycle has really shined a spotlight on lease renewals and the value of knowledgeable tenant representation,” Seifert said.

Tenant representation services can earn brokers a paycheck in a slow leasing market, even if brokerage commissions for lease renewals total about half of what new leases generate.

Seifert said her clients have seen a dramatic increase in concessions landlords are willing to offer.

"I just had a landlord agree to a fixed rent and CAM charge for five years--at the same rate the tenant had been paying for the previous five years," Seifert said.

“Right now retail landlords are renegotiating early renewals at minimum market rent even though it might be less than the rate spelled out in the original lease,” she added.

Grubb & EllisCommercial Florida Negotiates Multiple Lease Renewals totaling 29,000 Square Feet in Tampa and Tarpon Springs, FL

TAMPA, FL -- Grubb & EllisCommercial Florida, which is associated with 200 Grubb & Ellis offices worldwide, has negotiated multiple lease renewals totaling more than 29,000 square feet of retail space in Tampa and Tarpon Springs.

Michelle Seifert, associate vice president of the firm’s Retail Services Group, negotiated the transactions representing the landlords. “The change in the economy and the adjustments being made within the commercial real estate industry is providing vast opportunities for the discount retailers.” Seifert said. Some of the most recent renewals include;

Family Dollar Stores of Florida, Inc. renewed its lease of 15,000 square feet at Tampa Festival Centre, (top left photo) 2525 E. Hillsborough Ave. Simply Fashions renewed for 3,900 square feet and City Nails also renewed its lease for 1,200 square feet at Tampa Festival Centre.

Dollar General Stores renewed its lease of 6,700 square feet at Anclote Corner Shopping Center in Tarpon Springs.

At Tarpon Olympic Plaza, (middle right photo) in Tarpon Springs, Seifert represented Tarpon Associates of St Petersburg in negotiating long-term lease renewals for MetroPCS Partners, Inc. with 1,200 square feet and Bright House Networks LLC 1,000 square feet.

“The common dominator between these lease renewals and the economic slowdown is that the most active retail renewals today are the discount retailers,” Seifert said.
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Chapin and Sands Negotiate Sale and Lease Transactions for 70,000 SF of Office and Industrial Space in Orlando

ORLANDO, Fla. – Grubb & EllisCommercial Florida recently negotiated sale and lease transactions for a total of 70,000 square feet of industrial and office space in Orlando.

Fulfillment Partners, Inc., d/b/a Millennium Marketing Group, a 31- year-old Orlando company, leased 49,011 square feet of industrial space for 10 years at 1978 Stanhome Way, in southwest Orlando.

David Chapin, (bottom left photo) senior vice president and associate Nick Sands (bottom right photo) at Grubb & EllisCommercial Florida represented the tenant. The landlord, Dr. Phillips, Inc. was represented by Geoff Brown and John Thatcher of Dr. Phillips.

Chapin and Jay Dixon, vice president in the firm’s Office Group, represented Leland Management/Lake Gloria Holdings, LLC in the purchase of Lake Gloria Office Plaza (bottom right photo) for $3,170,000.

The 20,893 square foot office building at 6972 Lake Gloria Blvd. was sold by RAM Development Partners. John Hines and Dan Colachicco of Marcus and Millichap represented the seller.

CONTACTS:
David Chapin, 407 481 5402, dchapin@commercialfl.com
Jay Dixon, 407 481 5382, jdixon@commercialfl.com
Larry Vershel Communications, 407 644 4142, lvershelco@aol.com

Biotraits Inc. wins contract for Security Systems at The Vue Condominium Tower in Downtown Orlando

ORLANDO, FL--- BioTraits, a company that specializes in sophisticated biometrics technology, has been awarded a contract to manage and maintain biometric security systems at The Vue, (top right photo) the 36-story luxury condominium tower overlooking Lake Eola in downtown Orlando.

“Condominium owners at The Vue enjoy one of the most advanced biometric security systems in the U.S.,” said Peter A. Wengert, founder and president of BioTraits, Inc.

BioTraits will be responsible for magnetic door locks, electric strikes, locksmithing, and access control functions, as well as security cameras, DVR systems and internal networks that include computers, printers, and IT security.

“We are uniquely qualified in that our IT team will be able to make service calls remotely as well as on-site to minimize down time,” Wengert said.

BioTraits was recently awarded a contract to provide a similar range of services at Solaire, (middle left photo) a luxury condominium tower in the Plaza located on Orange Ave. at Church St. in downtown Orlando.

Wengert said the contract with The Vue Condominium tower resulted from owners of the Solaire sharing how satisfied they were with their relationship with Biotraits.

“Companies that rely on biometric security systems are on the cutting edge of electronic security hardware and software and they all talk to each other regularly,” said Wengert. “We welcome evidence that our reputation in this field is growing,” he said.

Biotraits’ co-founder and chief operating officer, Ricardo Aguilar (bottom left photo) and his team use a hands-on approach by finding the solution that works for each individual client. “Once we find great customers like The Vue and Solaire, we know we’ll keep them for life because we take full responsibility for the success of the plan that’s been executed for them,” Wengert added.

BioTraits is a client of the UCF Incubation Program at the Technology Incubator in the Central Florida Research Park.

For more information about this release, contact:

Peter Wengert, BioTraits CEO, 866-609-4711 or peter@biotraits.com.

Carol Ann Dykes, Site Manager, UCF Technology Incubator, 407-882-0211, cdykes@mail.ucf.edu; or

Tom O’Neal, UCF Incubation Program Director, 407-882-1120

Larry Vershel or Beth Payan, LV Communications, 407-644-4142 or LvershelCo@aol.com.

About BioTraits:

Founded in 2003 at the UCF Technology Incubator as Biometrics Data Solutions, the name later was changed to BioTraits A Biometric Company to better describe their solutions for biometric identification and verification products and software development. For more information, visit http://www.biotraits.com/.

About the UCF Incubation Program

Since its founding in 1999, the UCF Incubation Program has helped more than 100 emerging companies create over $300 million in annual revenue and more than 900 new jobs with an average salary of $59,000.

With five facilities across the metro Orlando community, the Incubation Program is a collaboration in economic development between UCF, Orange County, the City of Orlando, Seminole County, the City of Winter Springs, and the Florida High Tech Corridor Council.

For more information, please visit http://www.incubator.ucf.edu/.

Best of Northern Virginia NAIOP Awards Winners

TYSONS CORNER, VA-- “NAIOPOLY: Get in the Game!” was the theme of the 22nd Annual Best of Northern Virginia NAIOP Awards held Thursday evening, November 20, 2008 at the Ritz-Carlton Tysons Corner.

Over six hundred people were in attendance as thirty-three awards were presented in the following categories: Transactions, Interiors, Buildings and Membership.

The black tie dinner was an opportunity to celebrate significant new contributions to Northern Virginia by the commercial and industrial real estate community.

Awards were given in the following categories:

Transactions:

Best Real Estate Transaction - Building: Award of Merit for 2980 Fairview Park (top right photo) submitted by Cushman & Wakefield. Team members included ING Clarion Partners.

Best Real Estate Transaction - Building: Award of Excellence for Waterview Office Building submitted by Cassidy & Pinkard Colliers. Team members included The JBG Companies; CIM Group; Brookfield Properties; and Paramount Group.

Best Real Estate Transaction - Lease: Award of Merit for Social Security Administration at Skyline Tower submitted by Vornado/Charles E. Smith. Team members included Studley.

Best Real Estate Transaction - Lease: Award of Excellence for GSA/Department of Defense at the Zachary Taylor Building (middle left photo) submitted by Cassidy & Pinkard Colliers. Team members included Beacon Capital Partners.

Interiors:

Best Environmentally Responsible - Green Construction Tenant Interior Fit Out: Award of Merit for TASC V submitted by TRINITY Group Construction, Inc. Team members included Duke Realty Corporation and, Davis, Carter, Scott Ltd.

Best Environmentally Responsible - Green Construction Tenant Interior Fit Out: Award of Excellence for KGD Office Headquarters submitted by Kishimoto.Gordon.Dalaya PC. Team members included Cushman & Wakefield and The Dietze Construction Group.

Best Interiors, Building Common Area: Award of Excellence for Plaza East Lobby submitted by HOK. Team members included Tishman Speyer Properties and, James G. Davis Construction Corporation.

Best Interiors, Tenant Space 0-14,999 SF: Award of Merit for Winkler Family Trust submitted by Kishimoto.Gordon.Dalaya PC. Team members included The Winkler Family Trust and, TRINITY Group Construction, Inc. Best Interiors, Tenant Space 0-14,999 SF: Award of Excellence for Greenspun, Davis & Leary, PC submitted by rand* construction corporation. Team members included Trammell Crow and SKB Architecture.


Buildings:

Best Building, Environmentally Responsible - Green Construction Base Building: Award of Merit for Burke Centre Library (bottom right photo) submitted by E.E. Reed Construction, L.P. Team members included Fairfax County DPWES and Grimm + Parker Architects. Best Building, Environmentally Responsible - Green Construction Base Building: Award of Excellence for Childcare Center II submitted by Orr Partners LLC. Team members included Morgan Gick McBeath & Associates and, The Dietze Construction Group.

Best Building, Environmentally Responsible - Green Construction Base Building: Award of Excellence for FBI Northern Virginia Resident Agency submitted by The Peterson Companies. Team members included The Staubach Company; Jones Lang LaSalle; Wisnewski Blair Associates, Ltd.; and, HITT Contracting Inc.

Best Speculative Building R&D/Flex: Award of Excellence for Sterling Park Business Center II submitted by First Potomac Realty Trust. Team members included DVA Architects, LLC and, Hubert Construction. Best Speculative Building Industrial Warehouse: Award of Merit for ProLogis Park Gateway Phase II – Buildings 4 and 5 submitted by ProLogis. Team members included CB Richard Ellis; Cushman & Wakefield; Randall-Paulson Architects; and The Conlan Company.

For a complete copy of the winners' list, please contact Martha Marks, 703-845-7080 or

Julia Chappell, 202 721 5341 or 202 721 5200, julia_chappell@gensler.com

HFF closes sale of Baton Rouge, LA retail center

DALLAS, TX – The Dallas office of HFF (Holliday Fenoglio Fowler, L.P.) has closed the sale of Siegen Plaza, (top left photo) a 156,228-square-foot retail center in Baton Rouge, Louisiana.

HFF senior managing directors Jim Batjer (top right photo) and Doug Hazelbaker (middle left photo) and managing director Ryan Shore (bottom right photo) led the investment sales team on behalf of the seller, Weingarten Realty Investors.

Inland Real Estate Acquisitions, Inc., which is a part of The Inland Real Estate Group of Companies, Inc., purchased the property for an undisclosed amount.

Completed in 2001, Siegen Plaza is currently 98% leased to tenants including Ross Dress for Less, Conn’s Appliance, Petco, Rack Room Shoes, Olive Garden and Chick-fil-A.

The property, which is shadow-anchored by SuperTarget, is situated on 22.4 acres along Interstate 10 at Siegen Lane in Baton Rouge.

“Siegen Plaza benefits from excellent demographics within a prominent trade corridor predicted to draw four to ten million customers a year,” said Hazelbaker.

Weingarten’s business activities encompass the long-term ownership, management, acquisition, development and redevelopment of strategically located neighborhood and community shopping centers and select industrial properties. Properties are predominantly located in the highest growth regions of the country - the south and west.

Headquartered in Oak Brook, Illinois, The Inland Real Estate Group of Companies, Inc. is a diverse group of real estate companies, including public real estate investment trusts (REITs), both exchange listed and non-listed.

Inland-sponsored companies own and manage in total over 100 million square feet of commercial real estate located in 45 states in the U.S. and Canada, as well as managed assets in excess of $21 billion.

The Inland Real Estate Group of Companies, Inc. is comprised of a group of separate legal entities some of which may be affiliates, share some common ownership or have been sponsored and managed by subsidiaries of Inland Real Estate Investment Corporation.

For additional information, please refer to the company website at http://www.inlandgroup.com/.

CONTACTS:

Jim C. Batjer, HFF Senior Managing Director, 214 265 0880, jbajer@hfflp.com

Doug Hazelbaker, HFF Senior Managing Director, 214 265 0880, dhazelbaker@hfflp.com

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

HFF arranges $2.5M refinancing for Louisville, KY office building

INDIANAPOLIS, IN – The Indianapolis office of HFF (Holliday Fenoglio Fowler, L.P.) has arranged a $2.5 million refinancing for Hanover Place (bottom left photo) , a 35,424-square-foot office building in Louisville, Kentucky.

Working exclusively on behalf of Hanover Place, LLC, HFF managing director Jon Everson (top right photo) placed the 20-year, fixed-rate loan with a life insurance company.

The borrower is a local developer that brought a strong track record to the table. HFF will also service the loan.

Hanover Place is located at 4500 Bowling Boulevard in the desirable St. Matthews submarket, approximately seven miles west of Louisville’s central business district. Completed in 1997, the property is fully leased.

“Capital markets conditions continued to deteriorate throughout the process (lender was ‘out of market’ after going under application), however, the lender closed and delivered the terms applied for,” said Everson.

CONTACTS:
Jonathan P. Everson, HFF Managing Director, 317 630 3191, jeverson@hfflp.com

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

HFF lists student housing complex near University of Northern Iowa

INDIANAPOLIS, IN – The Indianapolis office of HFF (Holliday Fenoglio Fowler, L.P.) has been named the listing broker for Hillcrest Park Apartments, (top right photo) a student housing complex within walking distance of The University of Northern Iowa campus in Cedar Falls, Iowa.

HFF director Brian Kelly (bottom left photo) will lead the investment sales team on behalf of the seller, a regional student housing developer.

The property is offered for $18.95 million free and clear of existing debt.

Completed in 2002, Hillcrest Park Apartments has 132 four-bedroom/two-bath units with 1,096 square feet. The fully leased property features a basketball court, volleyball court, tanning bed, business center and free DVD library as well as free shuttle service to the University and local nightlife. Hillcrest Park Apartments is located at 9614 University Avenue, a half mile west of campus in Cedar Falls.

“Hillcrest Park Apartments was the first property over 50 units to reach 100% occupancy for the Fall 2008 lease-up and has reached full occupancy for each of the last five leasing seasons,” said Kelly.

“There is tremendous opportunity for income growth as rents are substantially below market and there is undeveloped land included in the sales price that can accommodate up to 144 additional bedrooms.”

CONTACTS:

Brian J. Kelly, HFF Director, 317 630 3191, bkelly@hfflp.com

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

HFF arranges $33.5M financing for Hampton Inn in Manhattan’s Herald Square

NEW YORK, NY – The New York office of HFF (Holliday Fenoglio Fowler, L.P.) has arranged $33.5 million in financing for the Hampton Inn 35th Street, a recently-completed, 147-room hotel in Manhattan’s Herald Square.

(Prior under-construction photo, top right)

Working exclusively on behalf of MMG-35 LLC, HFF senior managing director Jay Marshall (middle left photo) placed the five-year, fixed-rate loan with Cigna Investments.

Financing proceeds were used to acquire the property, which was part of a portfolio of three hotels.

The hotels were pre-bought approximately 12 months ago with the titles changing hands upon receipt of the Certificate of Occupancy.

The Hampton Inn 35th Street is a 20-story, full-service hotel that opened for business in October 2008. Located at 57 West 35th Street, the property is between 5th and 6th Avenues close to Pennsylvania Station and Grand Central Station in Midtown West Manhattan.

“The Hampton Inn 35th Street is perfectly positioned to appeal to both business and leisure travelers. It is located close to the Midtown Manhattan office market as well as tourist spots such as Times Square, the Theatre District, Rockefeller Center and shopping along Fifth Avenue,” said Marshall.

CONTACTS:

Jay B. Marshall, HFF Senior Managing Director, 212 245 2425, jmarshall@hfflp.com

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

Acadiana Centre in Friendswood, TX Obtains Financing

HOUSTON, TX – The Houston office of HFF (Holliday Fenoglio Fowler, L.P.) announced has arranged financing for Acadiana Centre, (bottom left photo) a 39,463-square-foot retail center in Friendswood, Texas.

HFF managing director Tucker Knight (bottom right photo) and real estate analyst Brad Ballard worked exclusively on behalf of Matthew G. Dilick, president of Commerce Equities, to secure the fixed-rate loan through Michael Peery of Enterprise Bank. Loan proceeds were used to retire existing debt.

Acadiana Centre is located at 400 West Parkwood and is shadow anchored by HEB in the southeast Houston suburb of Friendswood.

The property was originally completed in 1997 as a single-tenant retail center and was renovated in 2007 for multi-tenant use. Currently, Acadiana Centre is 96% occupied.

Commerce Equities, Inc. is a full-service real estate development, construction and property management organization that has overseen the development, completion and management of more than $400 million in multifamily, residential, hotel, retail and industrial real estate projects.

CONTACTS:

Tucker S. Knight, HFF Managing Director, 713 852 3500, tknight@hfflp.com

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

Arbor Closes Three Loans Valued at $9.4M

Sebring Apartments in Houston, TX Obtains $4,699,500 Fannie Mae DUS® Loan

UNIONDALE, NY, Nov. 20, 2008-- Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $4,699,500 loan under the Fannie Mae DUS® product line to finance the 204-unit complex known as Sebring Apartments (top right photo) in Houston, TX.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.58 percent. The loan was originated by Matt Norman, (top left photo) Vice President, in Arbor’s full-service Dallas, TX lending office.

“There were several major hurdles to overcome in closing this loan on terms for the client – including the after-effects of Hurricane Ike, which swept through the area during the underwriting process,” said Norman.

“Arbor, in conjunction with the Broker and the Buyer, were able to maneuver through these hurdles, and meet the client’s ultimate goal of property acquisition.”

Cliffside Terrace in Ithaca, NY Gets $2.136M Fannie Mae DUS® Loan

UNIONDALE, NY, Nov. 20, 2008-- Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $2,136,000 loan under the Fannie Mae DUS® Small Loans product line to acquire the 36-unit complex known as Cliffside Terrace in Ithaca, NY.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.46 percent.

The loan was originated by Stephen York, (middle right photo) Director, in Arbor’s full-service Uniondale, NY lending office.

“This was our fourth transaction with this Sponsor, which emphasizes the importance we place on repeat clients,” said York. “Arbor was pleased to deliver competitive terms, which included 80% LTV.”

Americana Apartments in Greenville, TX Receives $2.601M Fannie Mae DUS® Small Loan

UNIONDALE, NY, Nov. 20, 2008-- Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $2,601,900 loan under the Fannie Mae DUS® Small Loans product line to refinance the 120-unit complex known as Americana Apartments in Greenville, TX. (bottom left photo)

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.56 percent.

The loan was originated by Peter Blass, (bottom right photo) Director, in Arbor’s full-service New York, NY lending office.

“The borrower was able to buy out his partners and re-structure the ownership with the proceeds of this transaction,” said Blass.

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

Global Hyatt Corp. 'BBB+' Rating Placed On Watch Negative

NEW YORK, NY--Standard & Poor's Ratings Services has placed its 'BBB+' corporate credit rating on Global Hyatt Corp. on CreditWatch with negative implications.

(Grand Hyatt Cairo, Egypt, top right photo)

"The CreditWatch listing reflects a worsening expectation in 2009 for revenue per available room in the U.S. at a time when Global Hyatt's leverage profile is weak for the 'BBB+' rating," said Standard & Poor's credit analyst Emile Courtney.

"Although the company does not publicly disclose its financial statements, we expect that year-over-year comparable EBITDA is likely to deteriorate at a pace that is in line with other lodging companies with a similar exposure to owned hotels and to the upscale and luxury lodging segments."

With business and leisure travel demand worsening and prospects for a long and moderate U.S. recession, we now expect that revenue per available room (RevPAR) in the U.S. in 2009 could decline in the mid-to-high single digits range, compared with our previous expectation for a decline of 5% or more.

(Cosmopolitan Resort & Casino, Las Vegas, NV, middle left photo)

Given current underperformance industry-wide in upscale and luxury price segments in the U.S., RevPAR for Hyatt's predominantly U.S.-based upscale and luxury portfolio could decline at a high-single-digits pace in 2009.

We stated in June 2008, when we revised the company's outlook to negative, that Global Hyatt may pursue a more aggressive financial policy of using debt to finance its strategic growth initiatives, and that this could result in downward ratings pressure if the U.S. lodging industry weakened further.

In resolving the CreditWatch listing, we will consider our outlook for the U.S. lodging industry and Hyatt's portfolio, as well as intermediate term expectations regarding management's growth strategies

.
(Hyatt Montreal, Canada, bottom right photo)

Media Contact:
Mimi Barker, New York (1) 212.438.5054, mimi_barker@standardandpoors.com

Analyst Contacts:
Emile Courtney, CFA, New York (1) 212-438-7824
Liz Fairbanks, New York (1) 212-438-7459

Host Hotels & Resorts Inc. Outlook Revised To Negative On Worsening Revenue Expectations

NEW YORK, NY--Standard & Poor's Ratings Services has revised its outlook on Host Hotels & Resorts Inc. and Host Hotels & Resorts L.P. to negative from stable and affirmed the 'BB' corporate credit rating and all other ratings.

(Harbor Beach Marriott Resort & Spa, Fort Lauderdale, FL, top right photo)

The negative outlook reflects our worsening expectation for revenue per available room (RevPAR) in the U.S. next year and that Host's credit measures are likely to deteriorate more than we expected because of a higher year-over-year pace of EBITDA decline.

"With business and leisure travel demand worsening and prospects for a long and moderate U.S. recession, we now expect RevPAR in the U.S. in 2009 to decline to the mid- to high-single-digits," said Standard & Poor's credit analyst Emile Courtney, "compared to our previous expectation of a decline of 5% or slightly more."

Notably, given the current underperformance industry-wide in Host's predominantly upscale and luxury price segments, RevPAR for Host's portfolio of companies could decline at a high-single-digits pace in 2009.

(Scottsdale Marriott at McDowell Mountains, Scottsdale, AZ, top left photo)

Host's EBITDA in 2009 could decline by 15% to 20%, compared to our previous expectation of about 10%.

Host currently has some flexibility in credit measures--lease-adjusted debt to EBITDA of 4.5x (compared to our threshold level of 5x for the 'BB' rating), EBITDA coverage of interest and preferred dividends of 3.6x (above 2.5x), and debt to total capital of 55% (less than 60%), all as of the 12 months ended September 2008.

However, we are increasingly concerned that a decline in EBITDA of 15% to 20% in 2009 would result in measures that would be weak for the current rating.

At the end of 2009, we estimate that credit measures could be at or worse than the threshold levels: lease-adjusted debt to EBITDA could be in the mid-5x area, EBITDA coverage of interest and preferred dividends could be in the mid-2x area, and debt to total capital could be about 60%

(Coronado Island Marriott, San Diego, CA, middle right photo).

In addition, Host on Nov. 18, 2008, revised its guidance for comparable hotel RevPAR to a year-over-year decline of 9% to 11% for the December 2008 quarter and a decline of 3% for the full-year 2008, reflecting significantly slowing travel demand and a worsening economy.

Host gave no updated guidance for 2009.

The rating reflects Host's aggressive financial risk profile and, as a real estate investment trust (REIT), its reliance on external sources of capital for growth.

These factors are tempered by the company's high-quality and geographically diversified hotel portfolio of 117 owned hotels and more than 60,000 rooms (at September 2008), high barriers to entry for new competitors because of its hotels' locations (primarily in urban and resort markets or close to airports), its strong brand relationships, and its experienced management team.

(Denver Marriott West, bottom left photo)
Host's credit measures can move within a wide range over time, given the cyclical nature of lodging and the company's operating leverage, and we expect the current rating to hold, notwithstanding intermediate-term weakness in credit measures.

The negative outlook reflects the possibility of worse operating performance than we currently expect.

The negative outlook reflects our concern that a decline in EBITDA of 15% to 20% in 2009 would result in credit measures at or worse than our threshold levels for the 'BB' rating: lease adjusted debt to EBITDA could be in the mid-5x area (compared to our threshold level of 5x), EBITDA coverage of interest and preferred dividends could be in the mid-2x area (more than 2.5x), and debt to total capital could be in the 60% area (less than 60%).

(Hartford Marriott Rocky Hill, Hartford, CT, bottom right photo)

Driving our concern for Host's credit measures is worsening business and leisure travel demand and prospects for a long and moderate U.S. recession.

As a result, we now believe RevPAR in the U.S. in 2009 could decline in the mid- to high-single-digits range, and that Host's portfolio of hotels concentrated in predominantly upscale and luxury segments could experience a 2009 RevPAR decline in the high-single-digits area.

Also, we currently expect that Host would borrow modestly to fund regular and special dividends, although we believe share repurchases and opportunistic acquisitions would be minimal over the intermediate term.

We could lower the ratings if operating conditions worsen more than our expected 15% to 20% decline in EBITDA, or if Host borrows significant amounts to fund dividends, acquisitions, or share repurchases.

(New Orleans Marriott, bottom left photo)

The outlook could be revised back to stable if it becomes clear during the next several quarters that our 2009 EBITDA assumption proves too aggressive and there is a path toward sustainable recovery in the U.S. lodging industry.

CONTACTS:

Media Contact:
Mimi Barker, New York (1) 212.438.5054, mimi_barker@standardandpoors.com

Analyst Contacts:
Emile Courtney, CFA, New York (1) 212-438-7824
Liz Fairbanks, New York (1) 212-438-7459

Aloft Hotels Makes Landmark Debut in Asia Pacific

Aloft Beijing, Haidian Heralds the Brand’s Aggressive Global Growth as First Hotel Outside of North America

WHITE PLAINS, NY-- Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) and its highly anticipated new lifestyle brand, Aloftsm hotels announce the opening of Aloft Beijing, Haidian.(top right photo)

The 186 room, new-build hotel owned by Yong Tai Real Estate Group (Beijing) Co. is the first Aloft in Asia Pacific and the first Aloft to open outside North America.

The Aloft Beijing, Haidian underscores the brand’s remarkable global expansion with more than 500 hotels scheduled to open in markets like China, United Arab Emirates, India, Thailand, Belgium, Canada and the U.S in the next five years. The Aloft Beijing, Haidian is the first of nine Alofts currently in development in Asia Pacific, and the first of two slated to open in China in the next two years.

“We are thrilled with the opening of the first Aloft hotel in Asia Pacific! Aloft Beijing, Haidian will bring a fun new way to play and stay to Beijing. As the first aloft in Asia Pacific, this hotel will also be the landmark in this dynamic market of Zhongguancun Hi Tech Science Park in Beijing,” commented Miguel Ko, (middle left photo) President of Starwood Hotels & Resorts, Asia Pacific.

“Guests traveling to Beijing for business or pleasure won’t have to settle for one or the other, thanks to Aloft. Our bar w xyzSM is sure to be a hub of activity for locals and visitors alike, and our meeting space and guestrooms will inspire even the most jet-lagged business travelers,” added Ko.

CONTACT:

Hwee-Peng Yeo
Director, Corporate Communications
Starwood Asia Pacific Hotels & Resorts Ltd
9 Temasek Boulevard, Suntec City Tower 2
#24-02, Singapore 038989

Tel : +65 6335 4837; Cell : +65 9768 6087; +65 9248 0424
Fax : +65 6335 4820
http://www.starwoodhotels.com/; http://www.starwoodpressclub.com/

CB Richard Ellis Capital Markets Group Secures $43M on Two Loans

Hawthorne Village in Port Orange, FL Receives $22M Loan

ORLANDO, FL– The Orlando office of CB Richard Ellis is pleased to announce, David Borge, (top right photo) Senior Vice President with CB Richard Ellis Capital Markets group has financed the Hawthorne Village Apartments (top left photo) in Port Orange, Florida.

Hawthorne Village is a newer 378 unit apartment community. The loan amount of $22,145,000 was placed with Freddie Mac.

Birch Landing Apartments in Georgia Gets $21M Loan

ORLANDO, FL – The Orlando office of CB Richard Ellis is pleased to announce that Dennis Jimenez, (middle right photo) Vice President with CB Richard Ellis Capital Markets Group, has arranged financing in the amount of $21,049,000 on behalf of a Florida investor for the acquisition of Birch Landing Apartments.(middle left photo)

Birch Landing is a 518-unit apartment community located in Austell, Georgia.

CBRE was able to accommodate the demanding time-frame required by the borrower and closed the loan within 21 days of loan application.

Terms of the financing included an interest-only period of 24 months, followed by 30-year amortization, and 80% loan to value

Contact: Angelique Greven, 407.839.3158 angelique.greven@cbre.com

CB RICHARD ELLIS NAMED EXCLUSIVE SALES AGENT TO CHICK-FIL-A IN CENTRAL FLORIDA

ORLANDO, FL – The Orlando office of CB Richard Ellis is pleased to announce, Jorge Rodriguez, (bottom right photo) CCIM, Retail Associate, has been selected by Chick-fil-A® as their exclusive representative in Central Florida.

Mr. Rodriguez will be responsible for Chick-fil-A's site selections within Central Florida's five counties of Orange, Seminole, Osceola, Volusia, and Polk.

Credited with introducing the original boneless breast of chicken sandwich and pioneering in-mall fast food, Chick-fil-A®, Inc., is one of the largest privately-held restaurant chains – with more than 1,400 restaurants in 38 states and Washington, D.C. – and the second-largest quick-service chicken restaurant chain in the nation, based on annual sales.

System-wide sales in 2007 reached $2.64 billion. These figures reflect a 16.09 percent increase over the chain's 2006 performance and a same-store sales increase of 8.47 percent.

Additional information may be found at http://www.chick-fil-a.com/.

Contact: Angelique Greven, 407.839.3158, angelique.greven@cbre.com