Wine Spectator Magazine Recognizes Sheraton Bali Kuta Resort Dining Venue with 2014 Restaurant Wine List Award

Pamor Budi Kurniawan

BALI, INDONESIA  – Sheraton Bali Kuta Resort is proud to announce that Wine Spectator, a highly-regarded industry publication, has honored the resort’s Bene Italian Kitchen with an “Award of Excellence.”

The prestigious recognition follows Indonesia’s Best Sommelier Award for Pamor Budi Kurniawan, sommelier for Sheraton Bali Kuta Resort and restaurant manager for Bene Italian Kitchen.  Budi received the best sommelier award earlier this year.

 “We are very pleased to receive this recent accolade from Wine Spectator,” said Eelco Bohtlingk, Director of Food & Beverage at Sheraton Bali Kuta Resort.

 “We view this award as a reflection of the commitment Bene Italian Kitchen team has to curating an exceptional selection of Italian wines to complement the culinary experience Bene offers all guests. This is certainly a special achievement for Sheraton Bali Kuta Resort.”

 Wine Spectator’s Restaurant Wine List Awards recognize dining establishments whose wine lists offer interesting selections, wines appropriately matched to the cuisine, and varietals that appeal to a wide range of wine lovers. 

Eelco Bohtlingt

 Bene Italian Kitchen, a casual restaurant known for its authentic Italian culinary experience in elegant surroundings overlooking the Indian Ocean, offers a unique wine list with a broad selection of Italian wines, including a special focus on verticals from Tuscany and Piedmont, as well as selections from other key wine regions across the globe.

The resort’s international clientele – from countries such as Australia, Korea, Italy, and France – represents a range of preferences that Bene easily accommodates with its extensive wine list including numerous wine-by-the-glass options. 

For a complete copy of the company’s news release, please contact:

Hwee Peng Yeo

Vice President, Asia Markets

Glodow Nead Communications

San Francisco • New York • Singapore • Shanghai

Level 21, Centennial Tower, 3 Temasek Avenue • Singapore 039190

1700 Montgomery Street, Suite 203 • San Francisco, CA • 94111

Asia: 65.9768.6087  US:415.394.6500 • E: hweepeng@glodownead.com

www.GlodowNead.com

Lincoln Property Company Southeast Wins Property Management Assignment for 2045 Peachtree Medical Office Building in Buckhead, GA

Shane Froman

 ATLANTA, GA – Lincoln Property Company Southeast (Lincoln) has won an assignment to manage 2045 Peachtree Road, a 72,923-square-foot medical office building located directly across from Piedmont Hospital and the Shepherd Center in Atlanta’s Buckhead submarket.

 Tenants in the building include Peachtree Orthopaedic Clinic, Dermatology Consultants, Piedmont Medical Care Corp. and the Shepherd Center. 

Lincoln will oversee new capital investments by ownership designed to enhance the appearance of 2045 Peachtree Road and to increase operational efficiencies.

 2045 Peachtree is the third asset in Atlanta for which HD Realty, a Nashville, Tennessee-based asset-management firm representing the building owner, has awarded Lincoln a third-party service assignment.

 HD Realty previously awarded the leasing and management of Lenox Center and Lenox Plaza to Lincoln. Since taking over these two projects, the Lincoln team has leased over 58,000 square feet, reduced operating expenses by 12 percent, managed $1.3 million in capital projects and raised overall occupancy by 48 percent.

2045 Peachtree Road, Buckhead, GA

 “We are honored that HD Realty has chosen us to manage another one of its Atlanta properties,” said Shane Froman, vice president of property management for Lincoln.

 “It’s a clear affirmation that hard work and good performance will be rewarded, and we look forward to creating the same kind of value at 2045 Peachtree. We have a great appreciation for the relationship we have established with HD Realty, and their trust in us to be good stewards of their assets is why we are in the business.”

For a complete copy of the company’s news release, please contact:

Stephen Ursery

The Wilbert Group

404-405-2354

sursery@thewilbertgroup.com

Essex Realty Group Brokers the Sale of a 7-Unit Mixed-Use Building in Chicago, IL

Kate Varde

 CHICAGO, IL -- Essex Realty Group, Inc. is pleased to announce the sale of 3301 N. Clark in Chicago, Illinois.

 The seven unit, mixed-use property is located in the heart of Chicago’s Lakeview neighborhood on the northeast corner of Clark and Aldine.

 An abundance of amenities are located within walking distance of the Property including the Belmont Harbor, Wrigley Field, and Lincoln Park. Residents are also a short walk away from the restaurants and shops of the Broadway, Halsted, and Clark Street commercial corridors.

Public transportation is easily accessible via several nearby bus lines and the Belmont CTA Station situated one block to the south.

 The sale price was approximately $2,562,500.

 Doug Imber and Kate Varde were the listing agents and Jim Darrow and Jordan Gottlieb represented the buyer.

Essex Realty Group, Inc. specializes in the sale of investment real estate throughout the Chicago metropolitan area.

For a complete copy of the company’s news release, please contact:

Douglas Fisher

Essex Realty Group, Inc.

773.305.4910

dougfisher@essexrealtygroup.com

www.essexrealtygroup.com

19-Property Texas Multifamily Portfolio Exclusively Listed by IPA

Will Balthrope

DALLAS, TX – Institutional Property Advisors (IPA), a division of Marcus & Millichap serving the needs of institutional and major private real estate investors, has retained the exclusive listing to market for sale the Variant Portfolio, a 19-property, 6,681-unit, 5 million-square-foot multifamily portfolio in Texas. Fifteen of the properties are located in Houston and four are in Dallas. The price is to be determined by the market.

IPA executive director Will Balthrope and Marcus & Millichap senior vice presidents investments Norman Eastwood and Charles “Chico” LeClaire are representing the seller, Southern California-based Variant Commercial Real Estate.

Norman Eastwood

            “The Variant Portfolio provides investors with a large-scale opportunity to acquire a number of true ‘value-add’ assets in the strong Dallas and Houston markets,” says Balthrope.

“The portfolio is a unique opportunity for a high-yield-oriented investor/operator to create value by repositioning these assets through interior and exterior renovations,” adds Eastwood.

The properties are:

·         Broadmoor, 235 units, Houston

·         Cranbrook Forest, 261 units, Houston    

·         Crystal Springs, 191 units, Houston      

·         Las Palmas, 145 units, Houston                        

·         Maxey Village, 409 units, Houston

·         Oaks of Brittany, 223 units, Houston    

·         Park Texas, 588 units, Houston            

·         Pine Forest, 161 units, Houston 

·         Pines of Westbury, 940 units, Houston

·         Royal Oaks, 434 units, Houston

·         Sandpiper, 286 units, Houston

·         Vista Arbor Square, 320 units, Houston

·         Chesapeake, 127 units, Dallas               

·         Mesa Ridge, 220 units, Dallas   

·         Preston Valley, 310 units, Dallas                                               

Charles 'Chico' LeClaire

·         Sandridge, 504 units, Pasadena                       

·         The Pointe, 517 units, Pasadena           

·         Ashton Oaks, 520 units, Clute

·         Holly Ridge, 290 units, Arlington          

For a complete copy of the company’s news release, please contact:

Gina Relva

Public Relations Manager

(925) 953-1716

HFF closes sale of and arranges financing for Class A multi-housing community in Aurora, IL

  

Sean Fogarty

CHICAGO, IL – HFF announced it has closed the sale of and arranged financing for Hunter’s Glen, a 320-unit, Class A, garden-style multi-housing community in Aurora, Illinois.

               HFF marketed the property on behalf of the seller, Levin Realty Advisors.  L3C Partners, LLC purchased the offering free and clear of existing debt.  HFF also secured a seven-year, 3.64 percent acquisition loan on behalf of the buyer through M&T Realty Capital Corporation.

               Hunter’s Glen is located at 245 North Oakhurst Drive near the intersection of New York Street and Eola Road and within 10 minutes of two Metra stations with direct routes into Chicago’s central business district. 

Situated on approximately 16 acres, the property includes one- and two-bedroom floor plans averaging 886 square feet each.  

Marty O'Connell

Community amenities include a heated resort-style swimming pool and sundeck, sauna/spa, fitness center, tennis court, sand volleyball courts, clubhouse and children’s playroom.

               The HFF investment sales team representing the seller was led by managing directors Sean Fogarty and Marty O’Connell, associate director Wick Kirby and executive managing director Matthew Lawton.

               HFF’s debt placement team was led by managing director Matthew Schoenfeldt and associate director Jason Bond.

               Levin Realty Advisors, LLC (LRA) is a real estate investment firm formed in October 2004 to provide national multifamily acquisition and asset management services.  Levin Realty Advisors is headquartered in Chicago. 

               L3C Capital Partners LLC is a New York-based real estate investment company that serves as the general partner of real estate investments in quality multifamily apartment communities across the United States.  The company and its affiliated entities have completed more than $300 million of transactions since its inception in 2009.

For a complete copy of the company’s news release, please contact:

Kristen M. Murphy

Associate Director

HFF | One Post Office Square, Suite 3500 | Boston, MA 02109

Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 | www.hfflp.com

krmurphy@hfflp.com

www.levinrealtyadvisors.com.

MACK Companies Ranks 36th Fastest-Growing Real Estate Firm in the CountryJim

James 'Mack' McClelland, co-founder and CEO, MACK Cos.

CHICAGO, IL  – Tinley Park, Ill.-based MACK Companies, a full-service redeveloper and one of the largest owners and managers of real estate rentals in the Chicago area, announced it has ranked 958th among Inc. magazine’s “Inc. 5000,” which lists the fastest-growing companies in the United States.

MACK Companies’ revenue grew 471 percent over the past three years, totalling more than $46 million in 2013. Within the real estate industry, the firm ranked as the ninth-fastest-growing firm in the Midwest and 36th nationwide.

Jim McClelland Jr.

 “To be recongized among the top 10 real estate firms in the Midwest, and the top one-fifth of all companies in the country, is the result of the hard work and commitment of everyone at MACK Companies,” said James McClelland, chief executive officer and co-founder of MACK Companies. 

“Leveraging our team’s experience, knowledge and passion for real estate has allowed us to grow exponentially in both the residential and commercial sectors, becoming a leading full-service redevelopment firm on a national scale.”

“It’s humbling to consider that MACK Companies began with the purchase of just one single-family property. Seeing that grow to more than 1,500 properties, thousands of square feet of commercial space and numerous public and private construction projects is evidence of our professionals’ collective determination and expertise,” said Jim McClelland, chief operating officer who, along with his father James, founded MACK Companies in 1998.

 “We are well positioned to continue expanding our footprint in the construction, investment, leasing and brokerage markets for years to come.”

For a complete copy of the company’s news release, please contact:

Julie Liedtke, jliedtke@taylorjohnson.com, 312-267-4521

Kim Manning, kmanning@taylorjohnson.com, 312-267-4527

Lone Oak Fund Financing Enables Expansion of Los Angeles Performing Arts College

Alexa Mizrahi

  

LOS ANGELES, CA – Lone Oak Fund, LLC, a private lender specializing in short term real estate loans, has provided acquisition financing for the purchase of a creative office property in Hollywood, Calif. that will serve as an expansion of the existing Los Angeles campus of the American Musical and Dramatic Academy.

The borrower, a New York-based college conservatory for the performing arts, was seeking supplemental financing in a short timeframe in order to secure this quality property for its Los Angeles campus expansion.

American Musical and Dramatic Academy
1641 Ivar Ivanue, Hollywood, CA

“Hard money continues to be a key component in getting deals closed in today’s competitive office market,” says Alexa Mizrahi, a Senior Loan Officer at Lone Oak Fund. 

“With banks continuing to be constrained by post-credit-crisis regulations, many businesses are looking to private lenders for creative solutions to get the money they need quickly.”

Lone Oak Fund provided $5 million in acquisition financing for the purchase of the 19,000 square-foot Hollywood office building. The building was acquired by the borrower for a total of $10 million, according to Lone Oak Fund.

The property, located at 1641 Ivar Avenue in Hollywood, Calif., will be eligible for conventional financing after interior improvements are completed, according to Mizrahi. 

Nicholas Roussos

The 18 month loan, priced at 8.30 percent interest only, was brought to Lone Oak by Los Angeles-based finance specialist Nicholas Roussos at Avison Young. 

“Strong broker relationships are essential to our business, and we are absolutely committed to helping our broker partners meet the needs of their clients,” explains Mizrahi.

“We know that consistency in speed, service, reliability and fair pricing has been a driving factor in our success. It is the reason that Lone Oak has successfully funded more than $2 billion in loans to date.”

For a complete copy of the company’s news release, please contact:

Amanda Brenner or Jenn Quader

Brower, Miller & Cole

ABrenner@browermillercole.com

(949) 955-7940

Capital Square Realty Advisors Affiliate Acquires Manufactured Housing Portfolio in Midwest

Louis Rogers

 GLEN ALLEN, VA – Capital Square Realty Advisors, LLC announced that an affiliate of the company has acquired a portfolio of three manufactured housing parks totaling 1,141 rentable lots in Indiana and Ohio.

 “Manufactured housing communities are an attractive investment opportunity, with increasing demand and a tight market given barriers to new construction across much of the U.S.,” said Louis Rogers, founder and chief executive officer of Capital Square Realty Advisors.

“There are a number of Americans that are either searching for a manufactured vacation home, or are seeking a new housing opportunity as traditional homeownership becomes economically unfeasible for a growing percentage of the population. Today, manufactured housing offers an affordable and high quality alternative.”

 The largest community, Timberbrook, is located at 54686 County Road 19 in Bristol, Ind. The 103-acre property hosts 567 lots. Onsite amenities include a community center, two swimming pools, two basketball courts, two children’s playgrounds, off-street parking and on-site management. Accessible via Interstates 80 and 90, Timberbrook is situated within a two-mile radius of nearly 450 businesses.

Yogi Singh

 The portfolio also includes Woodlake-Sommerdale, a 65-acre manufactured housing community featuring 338 lots.

 Located at 12204 Indianapolis Road in Yoder, Ind., the community features a clubhouse, playground and on-site management. It is situated within a five-mile radius of more than 1,200 businesses, including major local employers Coca-Cola Refreshments USA, Inc., Tuthill Corporation and International Paper Company. Woodlake-Sommerdale is easily accessible via Interstates 69 and 469.

 Byrne Hill, the third community in the portfolio, is a 34-acre manufactured housing community located at 3601 Hill Road in Toledo, Ohio. The property includes a clubhouse, swimming pool, playground and on-site management.

It is serviced by the Toledo Area Regional Transit Authority bus line and is adjacent to Great Expectations Elementary School, The Knight Academy middle school and Byrnegate Plaza Shopping Center. There are more than 1,500 businesses within a two-mile radius of Byrne Hill.

 “The acquisition of this high quality portfolio represents a significant step forward for Capital Square’s acquisitions team,” said Yogi Singh, vice president of acquisitions with Capital Square Management. “The highly efficient closing of this off-market deal with a publicly traded REIT is a model that we are highly confident that we can replicate in the coming months.”

 For a complete copy of the company’s news release, please contact:

Julie Leber

Account Manager

Spotlight Marketing Communications

18101 Von Karman Avenue, Suite 330

Irvine CA 92612

949-427-5172, ext. 703

julie@spotlightmarcom.com

Affordable Senior Housing Community Opens in Long Beach, CA

                                                                              

Michael Gaber

LONG BEACH, CA – WNC, a national investor in real estate and community development initiatives, announced the completion of Ramona Park Senior Apartments, a 61-unit affordable senior housing community in Long Beach, Calif.

WNC provided $6.9 million in low-income housing tax credit (LIHTC) equity to fund the project, which demolished a vacant former bank in order to develop the affordable housing.

 Located at 3290 E. Artesia Blvd., the three-story building includes 49 one-bedroom units and 11 two-bedroom units offered to seniors aged 55 and above with household incomes of up to 60 percent of the area median income. The ground floor of the structure serves as a parking garage.

 The property was developed by DL Horn & Associates LLC, in association with WCH Affordable IV LLC and PC Long Beach Developers LLC. 

 “The creative reuse of this space was a collaborative effort involving input from neighborhood community members and the City of Long Beach Planning Department,” said WNC Executive Vice President and Chief Operating Officer Michael Gaber. “Ramona Park enhances the local area, and provides seniors with numerous recreational and unit amenities within a comfortable place to call home.”

Rendering of Ramona Park Senior Apartments
Long Beach, CA

 Property amenities of Ramona Park include: a community room, passive seating and reading areas, swimming pool, oversized outdoor fireplace, business center, kitchen, library, gym, dining area, tenant storage, common laundry facility, social services, public restrooms and on-site management. 

Each unit is equipped with an electric range and oven, window blinds, refrigerator, central heat/air conditioning, garbage disposal, dishwasher and patio or balcony.

 For a complete copy of the company’s news release, please contact:

Julie Leber

Account Manager

Spotlight Marketing Communications

18101 Von Karman Avenue, Suite 330

Irvine CA 92612

949-427-5172, ext. 703

julie@spotlightmarcom.com

www.wncinc.com

Marcus & Millichap Arranges Sale of Murdock Plaza in Port Charlotte, FL for $4.9 Million

Murdock Plaza, Port Charlotte, FL

PORT CHARLOTTE, FL – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Murdock Plaza, an 83,165-square foot retail property located in Port Charlotte, Fla., according to Richard D. Matricaria, regional manager of the firm’s Tampa office.

The asset sold for $4,980,000.

James Medefind, associate in Marcus & Millichap’s Tampa office, and John Nuzman, vice president investments in the firm’s Detroit office represented both parties in the transaction.

James Medefind

Murdock Plaza is a newly-renovated shopping center that was built in 1991 and located at 1700 Tamiami Trail in Port Charlotte, Fla. just a mile-and-a-half from Port Charlotte Town Center.  The center is currently 73 percent occupied and is anchored by Bingo Trail, Dollar General and a local appliance retailer.

“Murdock Plaza was a great example of the current supply-demand imbalance we are seeing in the retail market,” says Medefind. 

“Due to the lack of supply and overwhelming demand for well located, value add opportunities in the marketplace, we were able to drive three offers within the first 48 hours of bringing the asset the market,” adds Medefind. 

“This gave the seller options and negotiating leverage to obtain a phenomenal price and amenable terms that fit the seller’s timeline.”

For a complete copy of the company’s news release, please contact:

Richard D. Matricaria

Vice President/Regional Manager, Tampa

(813) 387-4700

Berger Commercial Realty Leases 19,000 Square-Feet of Industrial Space at McNab Commercial Center in North Lauderdale, FL

Greg Milopoulos

FORT LAUDERDALE, FL -- Berger Commercial Realty Broker Associate Greg Milopoulos recently represented McNab Commercial Center No. 1, LLC in leasing space at the McNab Commercial Center to 13 new tenants.

 Located at 7544 W. McNab Road with easy access to the Florida Turnpike and Sawgrass Expressway, the North Lauderdale-based warehouse features ample parking, nine-foot by 12-foot overhead doors, 14-foot clear height ceilings, and an 8-foot by 10-foot office for every 1,000 square-feet of space leased.

 The center's new leases include 4,000 square-feet to SP Fine Custom Cabinetry Inc., 3,000 square-feet to Elite Auto Trade Inc., and 2,000 square-feet to Great Deals Auto Sales Inc. and to Tropical Party Supplies LLC.

Other leases included 1,000 square-feet to:

McNab Commercial Center, North Lauderdale, FL

All in One Handyman Company LLC;

AVI Solutions Inc;

Daphne Edwards;

Fingerprint Services of Florida, LLC;

Jamwas LLC;

Jeffrey William Leon West;

Mr. Crown Molding LLC;

Pure LED Lights LLC.

For more information about leasing at the McNab Commercial Center, contact Berger Commercial Realty at 954-358-0900.

For a complete copy of the company’s news release, please contact:

  Marielle Sologuren

Pierson Grant Public Relations

msologuren@piersongrant.com

(954) 776-1999, ext. 226

Avison Young completes $10-million sale of creative office property in Hollywood, CA

Martin McDermott

 Irvine, CA – Avison Young, the world’s fastest-growing commercial real estate services firm, announced it has completed the $10-million sale of a 19,750-square-foot (sf) creative office property in Los Angeles. The company also arranged the financing on behalf of the new buyer.

 Avison Young Principal Martin McDermott, based in the firm’s West Los Angeles office, represented the seller Hello and Company – a boutique production firm, which occupied the entire space.

 Avison Young Principals Christopher Bonbright and John Tronson, along with Senior Associate David Landau in the North Los Angeles office, represented the buyer – world-renowned conservatory and college, the American Musical and Dramatic Academy, College of the Performing Arts (AMDA).

Nick Roussos, a Vice-President in Avison Young’s Irvine, CA office who specializes in real estate debt, equity and structured capital, arranged the financing on behalf of AMDA.

John Tronson

Located at 1641 Ivar in the heart of Hollywood, the property now serves as a high-end creative space, but its past includes being host to the Bob Hope USO Special. 

Circling the property are two high-profile hotels – W Hotel and Redbury; a major development project, the Millennium Towers; Emerson College; the historic Sunset Gower Studios and other Hollywood attractions, retailers, popular restaurants and bars, apartment developments and creative-industry tenants.

 “We identified up front that this building was special and had potential, with the right marketing program, to achieve a new high point for Hollywood sales metrics,” comments McDermott. 

“Since we were able to generate multiple offers that were at, or close to, our asking price within weeks of launching the marketing program, we were then able to deliver to the seller not only a record price, but also the terms they wanted.”

Nick Roussos

“Arranging financing for this deal was very complex and could have been derailed without the financing expertise of our capital markets group,” adds Roussos.

“The buyer required a closing in less than 30 days, and being that the buyer was a non-profit entity, the loan had to be non-recourse. Furthermore, the borrower required a lenient prepayment penalty to retain the flexibility to refinance the purchased loan.

“Through deep-rooted lender relationships, I arranged a bridge lending source who delivered a loan that was ready to fund five days after first being presented with the buyer-specific loan requirements.”

For a complete copy of the company’s news release, please contact:

Darcie Giacchetto

D.G. Communications, Inc.

949.278.6224

Beau Moultrie Joins Crossman & Co.’s Atlanta Office

Beau Moultrie

ATLANTA, GA,  Sept.4, 2014 --Crossman & Company continues to expand throughout the Southeast. Due to the rapid growth of the leasing portfolio, the company has expanded their leasing team to include Beau Moultrie, a new Leasing Associate in the Atlanta office.

Prior to joining Crossman & Company, Beau was a Property Agent for Roberts Commercial Real Estate Services where he leased/managed retail shopping centers and office parks.

 Preceding his work at Roberts Commercial, Moultrie attended F.S.U.'s College of Business where he obtained his finance degree with an emphasis in commercial real estate.

For a complete copy of the company’s news release, please contact:

Sydnie Cobb

Phone  407.581.6223 | Email  marketing@crossmanco.com

 Crossman & Company | 6400 Powers Ferry Rd. NW | Suite 300 Atlanta, GA 30339

Plaza Advisors Announces Sale of French Golden Gate Shopping Center in Bartow, FL

French Golden Gate Shopping Center, Bartow, FL

BARTOW, FL -- Plaza Advisors is pleased to announce the sale of the French Golden Gate Shopping Center in Bartow, Florida.

The shopping center is situated at the intersection of SR 60 and US Highway 98 and totals 141,350 square feet of gross leasable area.

The major tenants include Publix, Beall’s Outlet, Pet Supermarket and freestanding Walgreens and Burger King locations.

 The Publix store was the third store to open in the chain’s history and was originally constructed in 1960.

Jim Michalak

New Publix, Beall’s Outlet, Walgreens and Burger King stores were constructed and began operating in 2011. The property was 83% leased at the time of sale.

 Jim Michalak and Mike Cvetetic of Plaza Advisors represented the seller in the transaction. No other brokers were involved in the sale. The seller and buyer were French Golden Gate LLC and The Phillips Edison Group LLC, respectively. 

 “The capital market demand, including debt providers, for Publix anchored assets is overwhelming which commonly results in a tremendous amount of investor interest and elevated pricing” Jim Michalak stated.

Additionally Michalak emphasized that “the compelling reasons for the aggressive bidding for this asset were: the new Publix, Walgreens, Burger King and Beall’s Outlet long-term leases, investment grade credit and the 24,000 sf of vacant space, which presents considerable NOI growth potential”.

Mike Cvetetic

 Plaza Advisors specializes in the disposition of anchored shopping centers located throughout Florida. The company has successfully closed nine centers since December 2013. Those closings included: six Winn Dixie and two Publix anchored assets.

 For a complete copy of the company’s news release, please contact:

Jim Michalak

Managing Partner

Plaza Advisors

3412 Bay To Bay Boulevard

Tampa, FL 33629

813.837.1300 Ext. 101

Fax 831.2627

jim.michalak@plazadvisors.com

www.plazadvisors.com

RECI Reports Interest Rates Continue to Drop as Investors Seek Safety

Jeanne Peck

CHICAGO, IL – Real Estate Capital Institute Reports Interest rates continue to decline as

bond investors seek safety from geopolitical turmoil, rather than worrying
about inflation fears.  

By the end of August, even as the US economy shows
favorable gains (e.g.,  a seven-year low in jobless claims), treasury yields
reached a 15-month low due to the problems facing Europe and the Middle
East.

Real estate capital markets are the beneficiaries of continued global
unrest.  

Therefore, expect another banner year for commercial and multifamily lending.   Borrowers want low rates; Debt investors want safer
yields with some reasonable premium.  

Commercial mortgage markets fill the void in comparison to other investment vehicles, BBB-rated bonds, for
instance.   A clear sign of this investment trend includes life insurance
companies increasing their allocation to mortgages, looking to raise
allocations to as much a 15% of their portfolios.

Ultimately, anticipation of the Fed's raising rates in the near future
should pose a challenge to realty investors seeking various types of
longer-term debt.  But for now with more pressure to fund longer-term
commercial mortgage loans, underwriting standards are loosening based on
intense competition from banks, Wall Street and life companies.  The net
result includes higher leverage, more interest-only underwriting and less
restrictive property-type and location profiles.   Rating agencies and loan
underwriters still maintain discipline, mainly by focusing on higher-quality
transactions within various sectors backed by proven sponsorship.

Overall mortgage rates are regularly dipping below 4% for 10-year money,
even for fully leverage loans. Meanwhile, short term rates remain unchanged
as borrowers enjoy floating-rate debt priced at generationally low levels.
Property owners enjoy selling at record high prices, or financing at record
low interest rates. Both scenarios are "win-win," as pricing on realty debt
and equity return to levels not seen since 2006-07.


Jeanne Peck, the director of the real estate capital Institute, advises "The
notion of real estate as an illiquid asset is changing-especially going into
an economic upturn (though slow).  Investors love brick-and-mortar, whether
debt or equity.   More and more people understand it as an institutional
investment vehicle offering competitive yields with solid collateral."

The Real Estate Capital Institute(r) is a volunteer-based research
organization that tracks realty rates data for debt and equity yields.  The
Institute posts daily and historical benchmark rates including treasuries,
bank prime and LIBOR.  Furthermore, call the Real Estate Capital RateLine at
7RE-CAPITAL (773-227-4825) for daily rate updates.

The   Real Estate Capital Institute(r)
3517 West Arthington Street
Chicago, Illinois USA 60624
Contact: Jeanne Peck, Executive Director
director@reci.com 
www.reci.com