S&P: Report Discusses The Rough Road And Tough Choices Ahead For Financial Institutions

NEW YORK Aug. 19, 2008--According to a panel of credit analysts at Standard & Poor's Ratings Services, financial institutions face more credit and liquidity risks that will require them to make some tough choices as the downturn evolves.

Even though government support and sovereign wealth funds' cash infusions have helped put the industry on a path to recovery, the rebound will be slow and painful.

This is the consensus that emerged in the course of roundtable discussions conducted on June 23 and June 25, 2008, as reported in "For Financial Institutions, More Rough Road And Tough Choices Are Ahead," published earlier today on RatingsDirect.

Capital markets have regained some life, but most U.S. and European banks maintain a heightened sense of alert as difficult business conditions and substantial write-downs continue to weigh on financial performance. Analysts agreed that a return to a stable banking industry outlook is at least a year away in the U.S.

"We haven't seen in any previous credit cycle downturn as much capital raising to match potential losses, and that's a positive balancing effect," said Rodrigo Quintanilla, Standard & Poor's head of North American bank ratings.

"How long this will go on and how much of this capital-raising capability smaller banks will have available to them are questions that remain unanswered. That said, we probably will see the lagging effect of consumer lending and commercial real estate delinquency flowing well into 2009."

Of Standard & Poor's 50 top-rated North American financial institutions, 22 had a negative outlook as of June 30, a figure that is the highest proportion of negative outlooks in top-tier mature-market financial groups in the past 15 years.

(Federal Reserve Bank building, Washington, DC, bottom right photo)

Media Contact: Jeff Sexton, New York, (1) 212-438-3448 jeff_sexton@standardandpoors.com

Analyst Contacts:

Jayan U Dhru, New York (1) 212-438-7276
Tanya Azarchs, New York (1) 212-438-7365
Scott Bugie, Paris (33) 1-4420-6680
Rodrigo Quintanilla, New York (1) 212-438-3090
Michael Zlotnik, Frankfurt (49) 69-33-999-150
Gary R Arne, New York (1) 212-438-5034

Richmond Industrial Market Shows Strong Leasing Demand

RICHMOND, VA--A stark differential in the key industrial statistical categories emerged this quarter in the Richmond market, according to Perry H. Moss, (top right photo) CCIM, MBA of GVA Advantis.

On one hand was a fantastic leasing trend and a nice fall in the warehouse/distribution/manufacturing segment vacancy rate. On the other, the sales market is having a rough time and the flex segment sees its usual steady performance stumble moderately.

Market Statistics & Summary

A second look at the first chart (at left) is very much warranted.

The leasing market, buoyed by several massive leases in the distribution segment has launched the year over year trend into greatly positive territory.

While this level of trend growth cannot realistically be expected to continue, it none the less, has given a strong statement to the stability and resourcefulness of the market. Flexible lease terms and landlord concessions helped pave the way for the strong leasing demand.

There was a bit of a trade-off with the flex market as that segment has an office/retail component which is more sensitive to immediate economic changes.

Flex spaces also tend to attract more smaller and local firms which cannot afford to risk the capital and don’t have the resources of major corporations.

The sales market fell sharply from last year as the scarceness of financing coupled with the economy revealed its darker side.

For more information, please contact Perry H. Moss, CCIM, Tel 804.672.4248, pmoss@gvaadvantis.com
GVA Advantis, 707 E. Main Street, Suite 1400, Richmond, Virginia 23219 gvaadvantis.com

Arbor Closes $13M Fannie Mae DUS® Loan for The Meadows in Montgomery, AL

UNIONDALE, NY (Aug. 19, 2008) Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $13,000,000 loan under the Fannie Mae DUS® product line to refinance the 200-unit complex known as The Meadows (top left photo) in Montgomery, AL.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 5.78 percent. The loan was originated by Ronen Abergel, (bottom right photo) Director, in Arbor’s full-service New York City, NY lending office.

“We committed to a rate in two weeks by executing an early rate lock agreement with the borrower. In addition, we closed in 29 days with a 5% increase in proceeds over initial screening,” said Abergel. “In light of the current volatility in the market, Arbor’s execution of this transaction exceeded the borrower’s expectations.”

CONTACT:

Ingrid Principe, Arbor Commercial Funding, iprincipe@arbor.com

Daryl Carter-Guided Trust Buys 208 Acres in Marion County, FL for $602,319

ORLANDO, FL--Daryl M. Carter, Trustee of Carter-Marion 211 NE 46th Street Land Trust has purchased 208± acres in east Marion County from Terrapointe LLC for $602,319.85 cash.


The property is located just east of CR 314 and has 4,770± feet of frontage on the north and south sides of NE 46th Street and 150± feet of frontage on the south side of NE 52nd Place Road.

Preston Hage and Patrick Chisholm with Maury L. Carter & Associates, Inc. represented the Buyer. Anne Barnett and Sondra Blake with Southern Property Services, Inc. represented the Seller.


CONTACT:


Joan M. Fisher, Administrative Assistant, Maury L. Carter & Associates, Inc., 3333 S. Orange Avenue, Suite 200, Orlando, FL 32806-8500. (407) 581-6207 direct. (407) 422-3144 office.
(407) 422-3155 fax.

jfisher@maurycarter.com

NAI Realvest Negotiates New Long-Term Lease of 26,680 SF for IDS Sports Expansion in Oviedo, FL

ORLANDO, FL – NAI Realvest has negotiated a new long-term lease agreement for 26,680 square feet of industrial space at 5707 Dot Com Ct. in Oviedo.

Paul P. Partyka, (top right photo) principal and managing partner at NAI Realvest, negotiated the lease agreement representing the tenant, Supplement Synergy d/b/a IDS Sports, a body-building supplements company. Ganesh Holdings of Oviedo is the landlord.

Partyka said IDS Sports recently had explosive growth which is expected to continue for the next several years and the increased space is needed for its anticipated new business. IDS previously occupied a smaller space in Seminole County.


For more information, please contact:

Paul P. Partyka, Principal/Managing Partner NAI Realvest 407-875-9989 ppartyka@realvest.com;


Janice Paiano, Director of Marketing, NAI Realvest 407-875-9989 jpaiano@realvest.com



Beth Payan or Larry Vershel, Larry Vershel Communications, Inc. 407-644-4142

Davidson Hotel Company Announces Two New Management Agreements

Company Will Operate Sheraton Orlando-Downtown Hotel and Miami Mart Airport Hotel

MEMPHIS, TN—Davidson Hotel Company, one of the nation’s largest hotel management companies, today announced that it now operates two additional Florida hotels, the 341-room Sheraton Orlando-Downtown Hotel(top right photo) and the 332-room Miami Mart Airport Hotel.(bottom left photo).

The properties are owned by CF Hospitality, Inc. and SF Hotels, Inc., both privately-held Florida companies.

“With the addition of these two large, full-service hotels, Davidson now has a portfolio which includes five upscale hotels in Florida,” said John A. Belden, (middle left photo) Davidson’s president and chief executive officer.

“We are attracted to the strong demographics in both Orlando and Miami, and following the implementation of our proprietary marketing and management systems, we believe these hotels will quickly gain strong market share and substantially increased value for ownership.”

Located in the Blue Lagoon business district of Miami, the 12-story Miami Mart Airport Hotel adjoins the Miami International Merchandise Mart and is within minutes of such area attractions as South Beach, Bayside Marketplace, The Venetian Pool, The Biltmore, Biscayne National Park, and family-themed locales like Jungle Island, Miami Metrozoo, and Monkey Jungle.

“These two properties reflect Davidson’s on-going strategy to augment its overall growth through third-party management,” said Steven A. Margol, (bottom right photo) Davidson’s executive vice president of Business Development.

“We continue to seek out opportunities where we can apply our skills to help owners unlock new or unrealized value in their assets. This is particularly important in today’s economic conditions.”

Additional information on Davidson may be found at the company’s Web site, http://www.davidsonhotels.com/onhotels.com/.


CONTACTS:

Julie Tullbane, Daly Gray Public Relations, T 703-435-6293, F 703-435-6297 julie@dalygray.com

Cyndi Norwood Davidson Hotel Company (901) 821-4155 cnorwood@davidsonhotels.com )

Jerry Daly, Chris Daly (media, Daly Gray Public Relations, (703) 435-6293 jerry@dalygray.com

Orlando-based Terry's Electric, Inc. ranked as Florida's sixth largest electrical contractor

ORLANDO, FL – Terry’s Electric, Inc. is prominently ranked as Florida’s sixth largest electrical contractor according to the 2008 “Top Specialty Contractors” issue of Southeast Construction magazine published in August.

The Orlando-based company reported 2007 revenues of $49.9 million. The prestigious survey of trade contractors includes concrete, electrical, masonry, mechanical, steel and numerous other specialties.

Founded in 1979 by B. Terence “Terry” and Jeanne Quigley, (top right photo) Terry’s Electric, Inc. has experienced steady growth and nationally ranks among Engineering News-Record’s Top 600 Specialty Contractors. Originally established to serve the local community following the opening of nearby Walt Disney World, Orlando-based Terry’s Electric also operates branch offices in Tampa and West Palm Beach.

Terry’s Electric, Inc.’s headquarters is located at 600 N. Thacker Avenue, Suite A, Kissimmee, FL 34741, telephone (407) 572-2100.

Contact: Kenneth H. Cristol 407-774-2515

Marcus & Millichap Lists $10M Class A Industrial Warehouse in South Holland, IL

SOUTH HOLLAND, IL– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has retained the exclusive listing for a new state-of-the-art 200,000-square foot Class A warehouse and distribution facility in South Holland leased to Liberty Furniture Industries. The listing price is $10 million.

Howard Wiese, (top left photo) a vice president investments and senior director of Marcus & Millichap’s National Office and Industrial Properties Group in Chicago, is representing the seller, Hamilton Partners.

“This offering presents the investor with an opportunity to acquire a 2007-constructed institutional-quality distribution facility strategically located in Chicago’s south suburbs,” says Wiese.

Located at 555 West 167th St., the building is situated on 10.97 acres and features easy access to Chicago’s central business district and all major airports. Interstates 80, 94, 294 and 57 are less than five minutes away.

“A close-in location is critical to many distributors who need to service city-based customers,” explains Wiese.

The building is leased to Liberty Furniture Industries, Inc., until April 2014 with annual increases in base rent of approximately 2.5 percent. The capitalization rate during the remaining lease term averages approximately 7.5 percent.

Press Contact: Stacey Corso
Communications Department
(925) 953-1716

HFF Atlanta investment sales team closes sale of Lanier Commons in Cumming, GA

ATLANTA, GA – An HFF (Holliday Fenoglio Fowler, L.P.) investment sales team based in Atlanta has closed the sale of Lanier Commons, (top right photo) a 74,471-square-foot, grocery-anchored retail center in the Atlanta suburb of Cumming, Georgia.

Varner Properties, Inc. was represented by senior managing director Whitney Knoll, (top left photo) director Jim Hamilton (middle right photo) and associate director Kevin Hurley who are former members of the Staubach Capital Markets retail investment sales team that joined HFF in May.

The team began marketing Lanier Commons while with Staubach. Mimms Enterprises purchased the property for $12.99 million.

Lanier Commons is located at 3480 Keith Bridge Road one mile east of State Route 400 and one mile west of Lake Lanier, a top ranked national recreational lake. The property is approximately 30 miles north of downtown Atlanta.

Completed in 2004, Lanier Commons is currently 94% occupied to tenants including anchor tenant Publix, as well as Hollywood Video, Hair Cuttery and Johnny’s New York Style Pizza.

Varner Properties, Inc. is a well-known long standing real estate developer in Atlanta, Georgia.

Mimms Enterprises is a fourth generation family-owned commercial real estate company based in Roswell, Georgia, with properties in Georgia, Florida and Tennessee. Mimms specializes in the construction, redevelopment, leasing and management of retail, industrial and office properties. The company’s portfolio totals 6.1 million square feet with approximately 575 tenants.

CONTACTS:

Whitney Knoll, HFF Senior Managing Director, 404 832 8460, wknoll@hfflp.com

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

Parkway Properties Announces Sale of Wachovia Plaza in St. Petersburg, FL

JACKSON, MS /PRNewswire-FirstCall/ -- Parkway Properties, Inc. (NYSE:PKY) announced the closing of the fee simple sale of the Wachovia Plaza (top right photo) office property, located in the CBD of St. Petersburg, Florida, and the assignment of the leasehold interest in 240 parking spaces in the adjacent Mid-Core Garage owned by the City of St. Petersburg.

Wachovia Plaza is a 186,000 square foot property that was 97.8% occupied as of August 1, 2008. The gross sales price was $26.0 million and represents a capitalization rate of approximately 6.8% on twelve months projected cash net operating income from the date of closing.

Parkway received net cash proceeds from the sale of approximately $25.0 million, which were used to reduce amounts outstanding under the Company's line of credit. The Company will recognize a gain on the sale of approximately $9.3 million in the third quarter of 2008.

CONTACT: Steven G. Rogers, President & Chief Executive Officer, or J.Mitchell Collins, Chief Financial Officer, +1-601-948-4091, both of Parkway Properties, Inc.Web site: http://www.pky.com/

CFA Presents 2008 Contractor of the Year Award

MT. VERNON, IA-- The Concrete Foundation Association (CFA) – an organization dedicated to improving the quality and acceptance of cast-in-place concrete foundations – has presented its 2008 Contractor of the Year Award to Rich and Patty Kubica of K-Wall Poured Walls (top right photo) of Traverse City, Michigan & Asheville, North Carolina.

A member of the CFA for nearly a decade, the Kubicas were selected for this award for their aggressive pursuit of excellence and business expansion.

According to Ed Sauter, (middle left photo) executive director of the CFA, the Kubica’s high level of enthusiasm and commitment to advancing the concrete foundations industry and the CFA are primary reasons why they were selected for the CFA Contractor of the Year.

“Rich and Patty have been one of the most aggressive companies in our Association,” said Sauter. “We have reveled at their ability to take on challenges for promoting high-performance foundation walls, above-grade concrete shells and the growth of poured concrete foundations in traditionally block markets.”

The annual award recognizes the contributions of a poured wall contractor to the industry. This year’s award was presented at the CFA Annual Convention held July 30 to August 2 in Santa Ana Pueblo, New Mexico.

Also during this presentation, Ron Ward, President of Western Forms, Inc. of Kansas City, Missouri added his congratulation and presented the Kubicas with a crystal eagle symbolizing the soaring achievements that their company embodies.

For more information, please contact:
Ed Sauter, 319-895-6940 or esauter@cfawalls.org
Jim Baty, 319-895-6911 or jbaty@cfawalls.org

Concrete Foundation Association, 113 First Street West, Mt. Vernon, Iowa 52314. 319-895-6940, voice -- 319-895-8830, fax http://www.cfawalls.com/

Income Tax Savings for Owners of Senior Living Facilities

TAMPA, FL--According to John Wilmoth of Wilmoth & Associates, if you have purchased or constructed a senior living facility in the last 10 years, a cost segregation analysis will probably benefi t you.

A cost segregation analysis identifi es items and their costs
that qualify for shorter income tax depreciation periods and
accelerated depreciation methods.

This acceleration of depreciation has a tax sheltering effect by
increasing near term non-cash expense (depreciation), thereby
reducing taxable income and the associated income tax liability.

It does not eliminate the tax, but defers it to later years.
But considering current federal and state tax rates, the aftertax
present value of deferring the taxes can be as much as
$200,000 for each $1,000,000 of property reclassifi ed.

A cost segregation study identifi es items and their costs that are frequently included in real property accounts (27.5 or 39 year straight line depreciation).

These items should be classified as tangible personal property, other tangible property (commonly referred to as Section 1245 property) or land improvements.

The personal property and Section 1245 property qualify for
200% declining balance income tax depreciation over 5 or 7
years. The land improvements qualify for 150% declining balance
depreciation over 15 years.

Most taxpayers miss the opportunity to take the maximum allowable depreciation charge because the required information
is not provided by the contractor in their billings or, in the case
of an acquisition, the buyer has no information regarding the
value of the individual components acquired.

Normally 20% to 30% of the real property cost can be reclassifi
ed to these shorter recovery periods. If you acquired the property some time ago or there are multiple owners, you can still benefi t from a study.

The IRS now allows you to catch-up depreciation in the current year’s return for depreciation that should have been taken in prior years.

This can create a substantial one-time depreciation (non-cash) expense and no amended returns are required. On one recent project, Wilmoth identifi ed an additional $2,200,000 of depreciation expense reducing the owner’s current year tax liability by $770,000.

An effective, supportable cost segregation analysis requires engineering and valuation skills; knowledge of
construction methods, materials, and costs; and a knowledge of income tax regulations, court cases, revenue
rulings, and procedures.

The benefi ts of a study normally range from 15 to 30 times the related fees.

WILMOTH & ASSOCIATES is a nine year old
fi rm led by John Wilmoth, a former valuation
partner and firm-wide leader of cost segregation
services for Arthur Andersen LLP.
,clients under audit by

For more information on how a cost segregation
analysis might help you, as well as an estimate of
benefi ts and costs, please contact John Wilmoth at 940-458-2860 or johnw@wilmothassociates.com
http://www.wilmothassociates.com/

CLW HEALTH CARE SERVICES GROUP represents sellers of Senior Housing properties across the United States on an exclusive basis. CLW has nearly five decades of combined real estate experience and over $1.2 billion dollars in Senior Housing sales.

To learn more about our services, please contact Allen McMurtry (bottom right photo) at 813.349.8349

Strong Energy Sector Drives Increased Office Development in Houston

HOUSTON, TX — Houston’s office market will post a rise in vacancy in 2008 after four years of healthy improvement, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

The office outlook remains strong, and both employment growth and rent increases will be near the top in the nation again in 2008.

“With Houston’s local economy remaining one of the healthiest in the country, local investment activity will continue to be robust through the end of 2008,” says Michael Hoffman, (top left photo) regional manager of the Houston office of Marcus & Millichap.

Following are some of the most significant aspects of the Houston Office Research Report:

· Employers in Houston are forecast to add 50,000 jobs this year, expanding payrolls by 2 percent.
· The delivery of 3.3 million square feet of space this year will add about 2 percent to marketwide inventory.
· Vacancy is forecast to end the year at 12.6 percent.
· Asking rents will expand at a healthy 9 percent to $24.21 per square foot.
· Effective rents are expected to climb 8.5 percent to $20.85 per square foot.

For a copy of the complete Houston Office Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.

(JP Morgan Chase Tower, top right photo. Bank of America Center, bottom left)

Press Contact: Stacey Corso
Communications Department
(925) 953-1716

Arbor Closes $3,087,800 Fannie Mae DUS® Loan for Amelia Apartments in Valdosta, GA

UNIONDALE, NY, Aug. 18, 2008-– Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the funding of a $3,087,800 loan under the Fannie Mae DUS® product line to refinance the 82-unit complex known as Amelia Apartments in Valdosta, GA.

The 7-year loan amortizes on a 30-year schedule and carries a note rate of 6.33 percent.

The loan was originated by Stephen York, (top right photo) Director, in Arbor’s full-service Uniondale, NY lending office. “Arbor was pleased to provide timely and competitive acquisition financing,” said York. “We look forward to future opportunities with this client.”

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