Sale of Washington, D.C.’s Potomac Center North closed by HFF

WASHINGTON, D.C. – The Washington, D.C. office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has closed the sale of Potomac Center North, (centered photo below) a 497,196-square-foot, Class A office building in downtown Washington, D.C.

The HFF investment sales team was led by executive managing director Stephen Conley (middle right photo) and managing director Andrew Weir, (middle left photo) who represented the seller, investors advised by Prudential Real Estate Investors. Invesco Real Estate, working on behalf of a pension fund client, purchased the property free and clear of debt for an undisclosed amount.

Potomac Center North is fully leased to the United States Government through 2018 for the headquarters of Immigration and Customs Enforcement, a sub-agency of the Department of Homeland Security.

Redeveloped in 2005, the 11-story property is LEED-Silver certified and meets the Department of Justice Level IV security requirements for blast design.

Building amenities include a three-level, 350-space underground parking garage, a cafeteria, a conference/meeting facility and a fitness center. Potomac Center North is located at 500 12th Street, SW close to the L’Enfant Plaza Metro station, which provides access to four subway lines and the Virginia Railway Express commuter rail.

Established in 1993, Invesco Real Estate manages $23 billion of real estate investments in both direct property and real estate securities.

With 221 employees worldwide, the group focuses on top-down market and property type fundamentals combined with bottom-up local market intelligence.

The firm manages approximately $19.4 billion in direct real estate portfolios and $5.5 billion in real estate securities portfolios. Invesco Real Estate is an investment center of Invesco Institutional (N.A.), Inc., a subsidiary of Invesco Ltd. (IVZ) which is a publicly traded money management firm.

Contacts:

Stephen C. Conley, HFF Executive Managing Director, (202) 533-2500, sconley@hfflp.com

Andrew M. Weir, HFF Managing Director, (202) 533-2500, aweir@hfflp.com

Kristen M. Murphy, HFF Associate Director, Marketing (713) 852-3500, krmurphy@hfflp.com

$25.24M financing arranged by HFF for affordable housing community in northwest Orange County, CA

IRVINE, CA – The Orange County office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has arranged $25.24 million in financing for Continental Garden Apartments, (top left photo) a 297-unit affordable housing community in Stanton, California.

HFF managing director David Bleiweiss (bottom right photo) worked on behalf of Bertram Partners, Inc. to secure the 10-year, fixed-rate loan through Wachovia Multifamily Capital, Inc. – FNMA (Fannie Mae).



The conventional loan was used to retire bond financing that was set to mature. Bertram Partners, Inc. is a private multifamily owner and operator based in Laguna Hills, California.



Continental Garden Apartments is located at 8101 Cerritos Avenue close to the Santa Ana and Garden Grove Freeways in the northwest Orange County town of Stanton.

The property has 98 buildings with one-, two- and three-bedroom units averaging 1,000 square feet each. Continental Garden Apartments is 99% leased and is an affordable project with rents set by regulatory agreements from both the City of Stanton and the California Tax Credit Allocation Committee at 60% of area media income (AMI).

“Despite the downturn in the economic climate, financing for multifamily properties has remained fairly steady, despite the credit squeeze for other property types,” said Bleiweiss.

“HFF has been very busy consistently arranging and closing both Freddie and Fannie loans for multifamily product across the country.”

Contacts:
David A. Bleiweiss, HFF Managing Director, (949) 253-8800, dbleiweiss@hfflp.com
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com ,

$57.5M sale of Fairfax, VA luxury multifamily community closed by HFF

WASHINGTON, D.C. – The Washington, D.C. office of HFF (Holliday Fenoglio Fowler, L.P.) announced today it has closed the sale of Post Forest, (top right photo) a 364-unit multifamily community in Fairfax, Virginia.

HFF directors Dave Nachison (middle left photo) and Alan Davis (bottom right photo) led the marketing efforts on behalf of the seller, Post Properties, Inc.

Pantzer Properties purchased Post Forest for $57.5 million free and clear and placed a new mortgage through Freddie Mac.

Post Forest is located at 12101 Pine Forest Circle adjacent to the Fairfax County Government Center in the Washington, D.C. suburb of Fairfax.

The 97% leased property has studio, one- and two-bedroom units averaging 835 square feet each. Residents have access to a community room, fitness center, swimming pool, business center, two tennis courts, laundry facility, car wash facility and an exercise trail.

“Post Forest is a community that blends core quality and location with the value-add potential to enhance rents through minor renovations, further increasing performance margins and ensuring the property’s continued position at the top of the market,” said Nachison.

Post Properties, Inc., founded more than 38 years ago, is a developer and operator of upscale multifamily communities throughout the United States.

The company is headquartered in Atlanta, Georgia and has operations in nine markets across the country.

Headquartered in New York City and Saddle Brook, New Jersey, Pantzer Properties is a fully integrated owner/operator of investment properties in the east coast of the United States.

Contacts:

David R. Nachison, HFF Director, (202) 533-2500, dnachison@hfflp.com

Alan M. Davis, HFF Director, (202) 533-2500, adavis@hfflp.com
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com

Stirling Sotheby’s International Realty named exclusive sales and marketing agent for southwest Orlando lakefront estate

ORLANDO, FL--- Stirling Sotheby’s International Realty has been named exclusive sales and marketing agent for a 12,370 square foot lakefront estate in southwest Orlando. For more information on this home Click Here.

The home overlooking Lake Pocket near Windermere, features a 4.36 acre lakefront estate with private security entry and offers six bedrooms, six full baths, four half baths, a magnificent pool and spa, a boathouse, game room, in-home theater, and a separate six-car garage with full kitchen, bath, work room and rotating floor, and with state-of-the-art surveillance and security systems throughout the property.

Roger Soderstrom, founder and owner of Stirling Sotheby’s International Realty, (http://www.stirlingsir.com/) said associates Sally Andy and David Warren have listed the estate home for sale with an asking price of $5,900,000. For a virtual tour, visit Click Here.

Soderstrom said Stirling Sotheby’s International Realty is making a name for itself as the area’s leading real estate company for unique estates. Most recently, Stirling Sotheby’s International Realty listed a 10,000 square foot estate home in the Spruce Creek Fly-In near Port Orange, a 16,000 square foot estate home with an Old Hollywood theme in Lake Mary, and a 12,000 square foot oceanside Georgian estate home in Ormond Beach.


For more information, contact
Sally Andy, Stirling Sotheby’s International Realty, 407-687-7295 sally@sallyandy.com
David Warren, Stirling Sotheby's International Realty, 407-928-3760
david@sallyandy.com
Roger Soderstrom, Founder & Owner, Stirling Sotheby’s International Realty, 407-588-1260; rsoderstrom@stirlingsir.com
Larry Vershel, Larry Vershel Communications, 407-644-4142, Lvershelco@aol.com

MBA Applauds Extension of Term Asset-Backed Securities Loan Facility

WASHINGTON, DC - Michael D. Berman, (top right photo) Vice Chairman of the Mortgage Bankers Association (MBA), issued the following statement after the announcement by the Federal Reserve Board approving the extension of the Term Asset-Backed Loan Facility (TALF) program for newly issued ABS and legacy CMBS through March 31, 2010 and new issue CMBS through June 30th, 2010.

"MBA has consistently advocated for a longer duration for the CMBS TALF program as an essential element for its success. We strongly endorse today's announcement by the Federal Reserve to extend the program in order to promote financial stability and to enhance liquidity in the CMBS market," said Berman.

The Federal Reserve will now make TALF loans against newly issued ABS and legacy CMBS through March 31, 2010, and because new CMBS deals can take a significant amount of time to arrange, the Federal Reserve and Treasury approved TALF lending against newly issued CMBS through June 30, 2010.

The securities already eligible for collateralizing TALF loans include the major types of newly issued, triple-A-rated ABS backed by loans to consumers and businesses, and newly issued and legacy triple-A-rated CMBS.

MBA will continue to closely monitor the implementation of the CMBS TALF program in order to optimize its impact on commercial real estate liquidity.

CONTACT: Sarah Tinsley, (202) 557-2730, stinsley@mortgagebankers.org

RTI International Comes to Orlando

ORLANDO, FL – (Aug. 18, 2009) – RTI International, one of the world’s leading research institutes, has signed a three-year lease for 1,938 SF to open an office on Metric Drive near University of Central Florida and Central Florida Research Park in East Orlando.

This is RTI International’s first office in Central Florida, and they will be providing simulation training services as a government defense contractor.

Through employees placed with subcontractor clients, RTI International had a presence in Orlando for several years before deciding to locate an office here. They plan to add new jobs to this office as they win more contracts.

Carol Tanner (top right photo) represented the tenant while she was with GVA Advantis, the commercial real estate firm that closed in July. Tanner was negotiating on the tenant’s behalf with Chris Kern of Commercial Realty of Central Florida representing the landlord. After the deal closed, Tanner joined Kern’s firm.

Kern, who founded Commercial Realty of Central Florida in 2003, said, “I’ve known Carol for a long time and I’m pleased she has joined my firm. My expertise is land and multi-family properties, while Carol has spent a great deal of time focusing on office and industrial properties in North Orange and Seminole Counties. It’s a great fit and we are looking to expand in this market.”

Media Contact: Shelli Browning 407.381.4897, sh_browning@yahoo.com

Cushman & Wakefield negotiates sale of Doral Oaks in Temple Terrace, FL for $10.7M

TAMPA, FL– Cushman & Wakefield’s Florida Apartment Brokerage Services with apartment specialists in Tampa, Orlando, Jacksonville, Ft. Lauderdale and Miami, announces the sale of Doral Oaks (top right photo) for $10,700,000.


The purchaser was GMC Properties. Executive Director Byron Moger and Director Luis Elorza negotiated the sale on behalf of the owner, AIMCO.

Doral Oaks, located at 105 Sunnyside Road in Temple Terrace, Florida adjacent to Temple Terrace’s Downtown City Center development site, was built in 1967.


It is a 266,912 square foot, 252-unit apartment community that offers a mix of 1, 2 and 3 bedrooms. Doral Oaks features controlled access, two resort-style swimming pools, a clubhouse, fitness center and children’s playground.

“Doral Oaks’ stable operating performance and infill location made this an attractive acquisition. Given improving market fundamentals this is a good time for investors to build up their Florida apartment portfolios,” said Luis Elorza (bottom left photo) of Cushman & Wakefield, Inc.

Contact: Byron Moger, 813-204-5316, Byron.Moger@cushwake.com

Arbor Closes $1.8M Fannie Mae DUS® Loan for Liberty Place Apartments in Fayetteville, NC

Uniondale, NY (Aug.18, 2009) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $1,800,000 loan under the Fannie Mae DUS® Loan product line for the 79-unit complex known as Liberty Place Apartments (top left photo) in Fayetteville, NC.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.39 percent.

The loan was originated by John Edwards, Vice President, in Arbor’s full-service Boston, MA lending office. “We were pleased with the opportunity to provide financing for a repeat Arbor client,” said Edwards.

Contact: Ingrid Principe, P: 516.506.4298, F: 516.542.2555, http://www.arbor.com/
Follow us on Twitter @ arbor1

EastGroup Properties Acquires Three Dallas Buildings for $6.7M

JACKSON, MS, Aug.18, 2009– EastGroup Properties (NYSE-EGP) today announced the acquisition of three business distribution buildings containing 227,000 square feet in Dallas for a combined purchase price of $6,675,000.



The buildings, which will be renamed Interstate Distribution Center V, VI and VII, are located in the city's close-in northwest submarket along the Stemmons Freeway (top right photo).

They were constructed in 1979-81 and are presently 87% occupied by six customers.



The buildings are projected to generate an annualized 9.2% yield at their current occupancy.

David H. Hoster II, (bottom left photo) President and CEO, stated, "The acquisition of Interstates V, VI and VII allows EastGroup to expand in an attractive in-fill submarket where we have a successful existing base of assets.


"It increases our cluster of business distribution properties there to over 800,000 square feet in ten buildings. We are continuing to look for additional acquisition opportunities in our major markets."


CONTACT: David H. Hoster II, President and Chief Executive Officer or N. Keith McKey, Chief Financial Officer (601) 354-3555

Arbor Closes $4.2M in Fannie Mae Loans in MA and MI

Dorchester Apartment Complex Receives $2M

Uniondale, NY (Aug. 17, 2009) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $2,000,000 loan under the Fannie Mae DUS® Small Loan product line for the 24-unit complex known as 12 Bailey Street in Dorchester, MA.

The 5-year loan amortizes on a 30-year schedule and carries a note rate of 5.75 percent.

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

“Arbor was pleased to provide this new client with a refinance through our successful Small Loan program,” said Kelly. “The owner has done an excellent job of managing the property and maintaining an excellent tenant base.”

Amber Properties Obtains $2.2M Student Loan in Lansing/East Lansing, MI

Uniondale, NY (Aug. 17, 2009) – Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $2,200,000 loan under the Fannie Mae DUS® Student Loan product line for the 94-unit complex known as Amber Properties in Lansing/East Lansing, MI.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.44 percent.

The loan was originated by Michael Jehle, Midwest Regional Director, in Arbor’s full-service Bloomfield Hills,MI lending office. “This loan was secured by three separate student properties all owned by the same borrower,” said Jehle. “Through this refinance we were able to dramatically increase the borrower’s cash flow and substantially reduce their interest cost.”

Contact: Ingrid Principe, P: 516.506.4298, F: 516.542.2555, http://www.arbor.com/

Follow us on Twitter @ arbor1

Grubb & Ellis Receives Notice Regarding NYSE Listing

SANTA ANA, CA, Aug. 17, 2009– Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that the company has been notified by the New York Stock Exchange (top left photo, trading floor) that it is not in compliance with the NYSE’s continued listing standards.

The company’s business operations, SEC reporting requirements and credit agreements are unaffected by the notification.

Grubb & Ellis is considered below criteria established by the NYSE because the company’s total market capitalization has been less than $50 million over a consecutive 30 trading-day period and its last reported stockholders’ equity was less than $50 million.

In accordance with NYSE procedures, Grubb & Ellis has 45 days from the receipt of the notice to submit a plan to the NYSE demonstrating how it intends to bring the company in compliance with the listing standards within the required timeframe. The company intends to cure the deficiencies and to return to compliance with the NYSE continued listing requirements.

On February 20, 2009, prior to the NYSE’s imposition of a moratorium with respect to the minimum average trading price of listed securities, the company was notified that it was not in compliance with the NYSE’s continued listing standard related to maintaining a minimum average closing price of $1 per share over 30 consecutive trading days.

The six-month cure period was suspended until the moratorium was lifted on August 1, 2009, giving the company until January 23, 2010 to come back into compliance with the minimum average closing price per share requirement.

Contacts:

Janice McDill, 312.698.6707, janice.mcdill@grubb-ellis.com

Rich Pehlke, 312.698.6711, rich.pehlke@grubb-ellis.com

Fannie Mae DUS Lender Bulls Capital Partners Appoints Robert Russell as Chief Production Officer

VIENNA, VA Aug. 17, 2009 - -Bulls Capital Partners, LLC, a multifamily financial service provider and Fannie Mae Delegated Underwriting and Servicing (DUS®) lender, announced the appointment of Robert Russell (top right photo) as Senior Vice President and Chief Production Officer.
As Chief Production Officer, Mr. Russell is responsible for sourcing and structuring multifamily loan transactions.

With 14 years of experience in real estate finance, Mr. Russell has executed primarily multifamily and commercial transactions totaling in excess of $6 billion.

These transactions have involved debt placement, equity placement, advisory services and share purchases. Mr. Russell's client base includes some of the largest publicly traded and privately held owners and operators of real estate in the United States.

Prior to joining Bulls Capital Partners, Mr. Russell held a similar position at Arbor Commercial Mortgage. He previously served as Managing Director at Wachovia Securities and Credit Suisse where his responsibilities included developing client relationships, originating loans, underwriting, structuring and closing transactions. Mr. Russell has also held positions at Nomura Asset Capital Corporation, Rosenman & Colin, LLP and LTCB Trust Company.

"Rob's successful track record of providing financial solutions for entrepreneurs and institutions makes him a great addition to our team," said Herman Bulls, (middle left photo) President and CEO of Bulls Capital Partners. "Bulls Capital Partners is committed to ensuring his continued success."

"Bulls Capital Partners and Goldman Sachs offer a platform that is unmatched in the multifamily capital markets," Mr. Russell said. "The combined firms' access to capital, expertise of senior management and reputation for client-focused service delivery makes the joint venture a powerhouse in multi-family finance."

"The addition of Rob Russell to head our Production efforts and his sole focus on Fannie Mae DUS originations will help us expand our reach while continuing to provide premium service to our customers," said Mark Van Kirk, (middle right photo) Bulls Capital Partners Co-Founder and COO.

Bulls Capital Partners 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, Chief Operating Officer. Van Kirk previously served as Director of Counterparty Risk at Fannie Mae.

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.

Contacts:
Herman Bulls, President & CEO, (202)256-1814, Herman.Bulls@Bullscapitalpartners.com

Mark B. Van Kirk, Co-Founder-COO, (703)283-9700,Mark.Vankirk@Bullscapitalpartners.com

Johnson-Laux Completes Florida Hospital Waterman Project

ORLANDO, FL – Orlando-based general contractor Johnson-Laux Construction completed Florida Hospital Waterman’s newest project: Vista Del Sol Adult & Geriatric Medical Associates’ 2,775 square-foot tenant build-out for the medical practice of Gretchen San Miguel, MD, located at 3330 Waterman Way in Tavares, near Orlando, FL.

Johnson-Laux has completed approximately 20 medical projects at Florida Hospital Waterman since 2005. The Vista Del Sol work totaled approximately $300,000 according to Johnson-Laux President Kevin Johnson, (top right photo) LEED Accredited Professional.

Contact: Kenneth H. Cristol 407-774-2515

Tri-City Electrical Donates Backpacks to Children's Home Society of Central Florida

ORLANDO, FL – Employees of Altamonte Springs-based Tri-City Electrical Contractors, Inc. donated more than 100 fully-supplied school backpacks to Children’s Home Society of Central Florida for children in need in our local community. Supplies included paper, crayons, notebooks, lunchboxes, pens, pencils, pencil boxes, markers, highlighters and more. This year, Tri-City’s employees filled and donated a record-breaking 102 backpacks which is the largest number ever.

Contact: Kenneth H. Cristol 407-774-2515

Fitch: Distressed Asset Sales Offset U.S. CREL CDO Delinquency Drop

NEW YORK CITY, NY, Aug. 17, 2009-- Realized losses continue to rise for U.S. CREL CDOs as delinquencies declined to 7.6% from 8.2% in June, according to the latest CREL CDO Delinquency Index (CREL DI) index results from Fitch Ratings.

On average, 2.7% of the CDO par balance has been lost to date due to distressed asset sales and discounted payoffs. Had the loans, which were resolved at a loss over the past three months (1.5%) remained in the transactions, the CREL DI would have exceeded 9% this month.

‘Though the number of distressed sales to third parties and discounted payoffs for troubled CDO assets is on the rise, many of these losses have been masked as managers often use the proceeds to purchase new assets at an even deeper discount, which builds par’ said Senior Director Karen Trebach. ‘Par building can preserve equity distributions as overcollateralization tests are either cured or maintained.’

Because preferred shares are not written down for CDOs, collateral losses are not always apparent to investors. Fitch determined that 21 of the 35 rated CREL CDOs had realized losses totaling over $600 million, or approximately 2.7% of the fully ramped CDO balances. Individual CDO loss rates range from 0.4% to as high as 20% for one CDO, which had a high percentage of losses attributed to subprime RMBS asset sales.

In the July reporting period, 12 troubled assets were disposed of through either third party sales or discounted payoffs. The average recovery on these loans was approximately 46% resulting in realized losses to five different CREL CDOs totaling $95.3 million.

Over the same one month period, CDO managers reported approximately $97 million of par building from discounted asset purchases.

Although the total dollar amount is similar to the total realized losses for the month, the par building has not necessarily occurred in the same CDOs as the realized losses.

In addition, a couple of issuers purchased assets at par. Currently, a total of 10 of the 35 Fitch rated CREL CDOs are failing at least one OC test.

At least seven additional CDOS are within 1.5% of breaching an OC test. As assets continue to near maturity, the pace of impaired assets in individual CDOs is expected to increase, placing additional pressures on OC ratios. Failure of OC tests leads to the cutoff of interest payments to subordinate classes, including preferred shares, which are typically held by the CDO asset managers.

Faced with limited options, some managers are also managing OC ratios by extending and/or restructuring loans. In the July 2009 reporting period, asset managers reported 48 loan extensions (4.2% of loans), which is nearly double the prior month’s total of 26.

These extensions are reducing the number of matured balloon loans. However, many of these extensions and modifications merely have the effect of postponing inevitable losses.

Fitch anticipates high default rates within CREL CDOs as these loans mature into the trough of the current commercial real estate cycle. As such, Fitch is currently finalizing review methodology and anticipates significant downgrades to all Fitch rated CREL CDOs in the coming months.

Contact:

Karen Trebach +1-212-908-0215 or

Stacey McGovern +1-212-908-0722, New York.

Media Relations: Sandro Scenga, New York, Tel: +1 212-908-0278; sandro.scenga@fitchratings.com