CB Richard Ellis Represents The Sembler Company in Sale of $1.14M-SF Open-Air Shopping Center in Orlando

CBRE CAPITAL MARKETS ARRANGES FINANCING FOR TRANSACTION

MIAMI, FL– Oct. 2, 2008 – CB Richard Ellis, the world's leading commercial real estate services provider, arranged the sale of Winter Garden Village, (top right photo) a 1.14 million-sq.-ft. regional shopping center located at the interchange of Orlando's Western Beltway (State Road 429) and Winter Garden Vineland Road (State Road 535) in Winter Garden, Fla.

The area included in the sale totaled 759,459 sq. ft. of leasable area.

Dennis Carson, (top left photo) senior vice president with CB Richard Ellis' Miami-Downtown office, and George Good, (middle right photo) executive vice president with the Oakbrook, Ill., office of CB Richard Ellis, exclusively represented the seller, an affiliate of The Sembler Company, headquartered in St. Petersburg, Fla.

An affiliate of Cole Real Estate Investments, based in Phoenix, Ariz., was the buyer. Michael Strober, (bottom left photo) senior vice president, with the Tampa office of CBRE Capital Markets, arranged acquisition financing for this transaction from Northwestern Mutual.

"Winter Garden Village is among the highest quality, and best-located mixed-use regional power and lifestyle retail centers developed in the nation," Mr. Carson said.

"And the role of CBREMelody in arranging financing for this deal was absolutely critical to the success of the transaction - especially in light of the nation's ongoing credit crunch, and its disproportionate impact on all sectors of the real estate business."

Completed in phases between 2007 and 2008, the project encompasses more than 161 acres and is home to 16 anchor tenants, including SuperTarget, Lowes Home Improvement, Best Buy, Barnes & Noble, Marshalls and Staples.

The property also includes a 180,000-sq.-ft. lifestyle center that is home to tenants such as Victoria's Secret, Cacique, Lane Bryant, Chico's, Bonefish Grill and Jos A. Banks.

Areas not included as part of the sale were the SuperTarget and Lowe's Home Improvement stores, each of which are tenant owned, and a 25-acre tract reserved for future residential development.

Contact: Rebecca Thomas, 305.381.6485, rebecca.thomas@cbre.com

Arbor Closes $11M on Loans in New York, Texas and Utah

Arbor Closes $6,671,000 Fannie Mae DUS® Loan on Renaissance Park in Austin, TX

UNIONDALE, NY, Oct. 2, 2008-– Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $6,671,000 loan under the Fannie Mae DUS® product line to refinance the 210-unit complex known as Renaissance Park(top right photo) in Austin, TX.

The 7-year loan amortizes on a 30-year schedule and carries a note rate of 6.45 percent.

The loan was originated by Matt Norman, (middle left photo) Director, in Arbor’s full-service Dallas, TX lending office. “Arbor’s underwriting team rose to the challenge by structuring suitable acquisition financing for a well-capitalized foreign investment group looking to make its first acquisition in Texas,” said Norman.

Arbor Closes $3,086,500 Fannie Mae DUS® Small Loan at 507 W 139th St. in New York

UNIONDALE, NY, Oct. 2, 2008 – Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $3,086,500 loan under the Fannie Mae DUS® Small Loans product line to refinance the 21-unit complex known as 507 W 139th Street in New York, NY. (site map bottom left)

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.29 percent.
The loan was originated by Patrick McGovern, (middle right photo) Director, in Arbor’s full service New York, NY lending office.

“Arbor was pleased to provide cash out refinancing to a first-time borrower in the Washington Heights area of Manhattan,” said McGovern.

“The additional proceeds will allow the borrower to invest in future opportunities in the area.”

Arbor Closes $1,167,000 Fannie Mae DUS® Small Loans on Barbara Worth Apartments in Salt Lake City, UT

UNIONDALE, NY – Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $1,167,000 loan under the Fannie Mae DUS® Small Loans product line to refinance the 34-unit complex known as Barbara Worth Apartments (middle right photo) in Salt Lake City, UT.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.36 percent.

The loan was originated by Felipe Rael, (bottom left photo) Director, in Arbor’s full-service Albuquerque, NM lending office.

“This is a feather in our cap given the timing pressure put on by the servicer on the retired note,” said Rael.

“We went one business day over a very aggressive processing timeline. The borrowers and broker were very motivated to close, which helped us out tremendously.”

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

SPECIAL REPORT: New Deal at FHA Introduces Private Industry Ideas to Revolutionize HUD Section 232 Funding Program

CHICAGO, IL--The bold administrative changes that have radically changed the way FHA-insured healthcare loans work their way through HUD’s Section 232 funding process are giving thoughtful people everywhere a reason to rethink presumptive ideas about bureaucratic efficiency and resolve, funding expert Jeffrey A. Davis (top right photo) believes.

Davis is Chairman of Chicago-based Cambridge Realty Capital Companies(r), one of the nation’s leading HUD 232 lenders.

He points out that the last thing anyone might expect to emerge from a lame duck administration that has shown little enthusiasm for regulatory processes of any kind is a blueprint that has the potential to revolutionize the way government agencies dispense services of all kinds.

“For this surprising development we can thank FHA Commissioner Brian Montgomery (top left photo) and his colleagues at HUD for having the audacity to believe that management methods that have proved themselves in private industry could be used to effectively eliminate bureaucratic red tape and dramatically reduce the time it takes to apply, qualify for and obtain HUD financing.

“If the changes at HUD become the impetus for a trend impacting other government agencies, comparisons with FDR’s New Deal and other significant developments that have radically altered the role of government in society would not be far-fetched,” he said.

As part of the announced reorganization, administrative responsibility for HUD Section 232 healthcare loans passes to the FHA’s Office of Insured Healthcare Facilities (OIHF), the group that also coordinates funding for HUD‘s Section 246 hospital mortgage insurance program.

Effectively, with this change, OIHF becomes a unified single-source for the HUD 232 program, which in the past had been administered unevenly by FHA housing professionals in HUD field offices scattered throughout the U.S.

“Logically, placing nursing home and assisted living loans with the same individuals who underwrite loans for other types of medical facilities seems like a good idea.

"But it’s the Commissioner’s decision to insert the highly touted “Lean” management concept pioneered by Toyota Motor Corp. into a moribund bureaucratic process that has excited everyone in the industry,” Davis said.

Simply, the “Lean” management process is driven by a few simple rules, he points out.

“With the ‘Lean’ process, all work should be highly specified as to content, sequences, timing and outcome, and every customer-supplier connection must be direct. Also, there needs to be an unambiguous “yes or no” way to send requests and receive responses.

“The pathway for every product and service must be simple and direct. And any improvements must be made in accordance with the scientific method under the guidance of a teacher at the lowest possible level in the organization,” he explained.

“Obviously, such an approach takes square aim at inefficiencies historically identified with bureaucratic procedures,” he noted.

The new process initiated by FHA for HUD 232 loans introduces an automated workflow and approval process, submission of applications via an electronic portal on the internet, electronic payment, and a standardized work product that includes a submission that can, in most cases, be reviewed by only one HUD staff person.

Applications now require fewer exhibits and conventional market-based appraisals are being used instead of HUD-specific reports.

“The bottom line is that the changes are dramatically impacting the process. Nursing home and assisted living borrowers may now move from application to closing in 40 days compared with the four to six month timetable that had been standard for the course,” he said, adding:

“In the larger picture, what’s at stake with this experiment are changes that could give us all cause to rethink the way we view the competency and creativity of those who are called upon to deliver government services in a timely and efficient fashion,. The hope is that a formula may have been found that will enable federal agencies to eliminate bureaucratic snarls and function more proficiently in an increasingly competitive world.”

Contact: Evan Washington, Phone: (312) 521-7603, Fax: (312) 357-1611, E-Mail: ew@cambridgecap.com

CampusMBA Partners with Insurance Advisors to Offer Live Online Workshop Series for Commercial/Multifamily Originators and Servicers

WASHINGTON, D.C. - - CampusMBA, the award-winning education division of the Mortgage Bankers Association (MBA), has announced its partnership with Stamford, Connecticut-based Insurance Advisors LLC.

Under the agreement CampusMBA, in conjunction with Insurance Advisors, will offer a series of live online workshops addressing insurance issues for commercial/multifamily real estate loans.

"MBA is pleased to work with Insurance Advisors to offer our commercial and multifamily members the most comprehensive insurance education available," said Jan Sternin, (top right photo) MBA's Senior Vice President of Commercial/Multifamily and Industry Technology.

"Insurance Advisors is a leading provider of insurance consulting and outsourcing services to our industry. These workshops will focus on insurance principles and practices applicable for both the origination and servicing of commercial/multifamily real estate loans."

"The Commercial Insurance LIVE Online Workshop series is an excellent opportunity for our members to gain significant expertise and knowledge through CampusMBA and Insurance Advisors without having to leave their offices," said Paul Green, (middle left photo) Senior Vice President of Corporate Relations, Education and Business Development. "The live online workshops will run from November through May."

Each workshop will address both broad issues as well a specific topics that industry professionals deal with on a daily basis. The workshops will appeal to a wide spectrum of experience levels and are designed to provide practical information to loan originators, underwriters, as well as closers, attorneys and servicers.

The first workshop addressing blanket insurance coverage will be held on November 12. Bernie Brown, (bottom right photo)President of Insurance Advisors, will lead the in-depth program that will dive into issues surrounding blanket coverages.

Participants will be able to explore the risks associated with blanket policies and appropriate documentation of blanket insurance provisions. Loan servicers will specifically benefit from a discussion of compliance issues including an analysis of blanket coverage.

"By working in tandem with MBA and its education division, CampusMBA, Insurance Advisors is looking forward to educating industry professionals on a myriad of pertinent and timely insurance related issues," said Brown. "We are very excited to work with MBA and its members."

To learn more about the Commercial Insurance LIVE Online Workshops offered by CampusMBA and Insurance Advisors go to http://www.campusmba.org/ProductsbyFormat/Instructor-ledCourses/LIVEOnlineWorkshops/CommercialInsuranceLIVEOnlineConferenceSeries.htm or call (800) 348-8653.



CONTACT: Aleis Stokes
(202) 557-2741
astokes@mortgagebankers.org

Tilt-Con Starts Work on Flagler's SouthPark Building in Orlando

ORLANDO, FL – Altamonte Springs-based Tilt-Con Corporation is well under way on Flagler Development Group’s new 155,560-square-foot SouthPark Building 1500 office facility (top left site map) at 9400 SouthPark Center Loop, Orlando, FL, under its contract with Brasfield & Gorrie, Lake Mary, FL.

Selected for its unrivaled performance and speed of execution, Tilt-Con utilizes its economical system for tilt-up concrete walls.

Ranked as Florida’s largest tilt-up concrete constructor by Southeast Construction magazine, Tilt-Con’s scope of work includes foundations, slab-on-grade and tilt-up concrete wall panels. Designed by HuntonBrady Architects, Orlando, the project is slated for completion in December 2008.

Firm starts work on School District of Osceola County's new 2-story, 113,903-SF Elementary School "M" in St. Cloud, FL

ST. CLOUD, FL – Altamonte Springs-based Tilt-Con Corporation is under way on the School District of Osceola County’s new 2-story, 113,903-square-foot Elementary School “M” at 2690 Narcoossee Road, St. Cloud, FL.

Selected by W.G. Mills, St. Cloud, FL. Tilt-Con’s scope of work includes foundations, slab-on-grade and tilt-up concrete wall panels, and is slated for completion in December 2008. Designed by SchenkelShultz Architecture, Orlando, the project consists of a 2-story building, chiller yard and command vehicle shelter.

Tilt-Con ranked as 30th largest privately-held company in Central Florida

ORLANDO, FL – Altamonte Springs-based Tilt-Con Corporation is prominently ranked as the 30th largest privately-held company in Central Florida according to Orlando Business Journal’s annual Golden 100 survey published September 19. The company, which reported 2007 revenues of $100 million, was recognized at the 2008 Golden 100 Ultimate CEOs luncheon that drew over 600 attendees at the JW Marriott Hotel in Orlando, FL.

Asked for the key to growing a healthy business, Tilt-Con chairman Robert W. Theisen, Jr.(top right photo) stated “Hiring and retaining the right people and having the right vision for the future.”

He said that his greatest business accomplishment is turning the company into one of the largest of its kind in America and helping to transform Florida into one of the largest tilt-up markets in the country.

Theisen continued, “Tilt-Con started as a small tilt-up construction company and has expanded into a statewide construction company comprised of various offices and more than 500 employees. Last year we doubled our revenue, and we continue to do exceptionally well despite the down economy. Tilt-Con is also the most awarded company in America by the Tilt-Up Concrete Association.”

Contact: Kenneth H. Cristol 407-774-2515

Smith Equities Real Estate Investment Advisors Sells 96 Unit Whitney Groves Apartments in Orlando

ORLANDO, FL – Smith Equities Real Estate Investment Advisors recently represented the seller in the sale of the 96 Unit Apartment community known as Whitney Groves (middle centered photo) in Orlando Florida.

According to Robert E. Smith, (top right photo) CCIM, founder of Smith Equities Real Estate Investment Advisors, “Demand for Apartment investment properties on Orlando remains high. (Downtown Orlando view, top left)

"Investors realize that this region remains strong for apartment investments due to it’s being the center of the nation’s simulation industry, a world leader in the science of photonics and the field of financial software and now it’s emerging as a hub for entertainment technology and bioscience research.”

The 96 unit Whitney Groves Apartments located in South East Orlando Florida sold for $3,800,000. The buyer was PMF Enterprises, CF Inc. which is a privately owned investor who owns and manages 3 Apartment Communities in Orlando.

Buena Vista Partners, LTD was the seller and was exclusively represented by Robert E. Smith, CCIM, President and founder of Smith Equities Real Estate Advisors.

Whitney Groves Apartments consists of (48) Efficiencies averaging 318 SF, 24 one bedroom one bath units averaging 520 SF and (24) two bedroom one bath units averaging 960 SF.

"This was an excellent opportunity for the buyer to expand their operations in the Orlando market with a quality asset priced well below its replacement costs. We expect the 4th quarter of 2008 and 2009 to be a very active year in multifamily transactions as more investors recognize the unique opportunities the market offers" said Smith.

About Smith Equities:

Founded in 1990, Smith Equities Real Estate Investment Advisors (SEREIA) is a leader in apartment sales and financing throughout Florida with investment sales and financing of over 22,518 Apartments in 159 deals.

SEREIA sold some of the first condo conversions in Florida and is now focused on helping banks understand and dispose of non performing assets tied to condominium conversions. For more information, please go to their website at www.amecs.com or call them at (407)422-0704.

For more information, please contact Robert E. Smith, 407.422.0704, ext. 101, res@amecs.com

SPECIAL REPORT: RECI Notes Good and Bad News in Real Estate Capital Marketplace

CHICAGO, IL, Oct. 1, 2008 – It’s a good news/bad news real estate capital marketplace.

Mortgage markets are plagued by Wall Street (top right photo) market malaise and swooning prices, yet as far as commercial real estate debt is concerned, overall default rates and profit performance remain at historically favorable levels.

Funding sources and borrowers alike are very selectively funding and acquiring projects as re-pricing opportunities emerge in the wake of one of the nation’s worst financial crisis.

Dramatic market volatility created by major financial institutions failing along with selective governmental bailouts, wrecks havoc with real estate capital markets with some key trends developing, including:

--Skyrocketing Libor pricing (with rate premiums) now closely reflects domestic Bank Prime rates.

--Funding availability is the primary factor within the lending sector, surpassing pricing and leverage as key variables.

--Numerous balance-sheet lenders are temporarily suspending quoting on new transactions as market re-pricing continues (e.g. “catching a falling knife” syndrome)

--More funding sources are returning to pricing loans based on absolute net yields vs. spreads.

--New construction commercial-property financing is nearly at a halt, unless a substantial preleasing is available to credit tenants with preleasing required positive debt service coverage.

--Lending remains extremely restrictive, particularly for non-conventional property types such as lodging. Special-purpose and recreational properties.

--Commercial properties (retail, office and industrial) conservatively financed with maximum leverage of 65% based on capitalization rates in the higher single-digit range.

--Multifamily properties remain the most desirable and attractively priced funding opportunities in the capital markets as leverage levels remain close to historical norms and pricing spreads are in the mid-200 basis point range over comparable-term Treasuries.

--Government bodies including Freddie Mac, Fannie Mae and FHA/HUD continue providing competitively-priced mortgages for this sector.

--Borrowers are bridging equity gap by providing personal guarantees an additional collateral, perfectly with commercial banks

--Buyers and borrowers who are active in closing deals are rich with liquidity. Many use recourse and additional collateral to successfully finance projects.

Mortgage pricing is, at best, a “guessing game” as many lenders remain on the sidelines.

Nevertheless, overall mortgage pricing for different types of is shown below based on the most common commercial property types graded by Credit and Class A-B-C subcategories: (Chart source at right: Real Estate Capital Institute)

According to Jeff Davis, advisory board member of the Real Estate Capital Institute, “Except for select Agency programs such as FHA/HUD, most funding sources are waiting for more clear market signals for the remainder of the year.”

He adds, “Active lenders seem to have met their allocation goals as funds continue drying up within the securitized lending sector.”

ABOUT US:

The Real Estate Capital Institute® 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 hourly rate updates.

CONTACT:

The Real Estate Capital Institute®
3517 West Arthington Street
Chicago, Illinois USA 60624
Contact: Nat Zvislo, Research Director
Toll Free 800-994-RECI (7324)
director@reci.com /

http://www.reci.com/

HFF closes sale of Fossil Creek Shopping Center in Fort Worth, TX

DALLAS, TX – The Dallas office of HFF (Holliday Fenoglio Fowler, L.P.) has closed the sale of Fossil Creek Shopping Center, (top right photo) a 68,492-square-foot retail center in Fort Worth, Texas.

The HFF investment sales team was led by senior managing director Jim Batjer (top left photo) and managing director Adam Howells (bottom right photo) who represented the seller, Dunhill Partners, Inc.

Sandstone Fossil Creek Associates, LLC purchased Fossil Creek for an undisclosed amount and assumed an existing $8.64 million loan on the center. Midland was the servicer.

Situated on a 6.4-acre site, Fossil Creek Shopping Center is located at 4296 – 4398 Western Center Boulevard and 6401 Beach Street adjacent to The Golf Club at Fossil Creek, and close to Interstate 35 West and Interstate Highway 820 in Fort Worth.

The property is shadow-anchored by Albertson’s and is currently 98% leased to tenants including Family Dollar, Card & Party Factory, Cato, Starbucks and H&R Block.
Dunhill Partners specializes in commercial real estate sales, leasing and management in Dallas and Fort Worth.

HFF (NYSE: HF) operates out of 18 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry.

HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, note sales and note sale advisory services and commercial loan servicing. http://www.hfflp.com/.

CONTACTS:

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

Adam T. Howells, HFF Managing Director, 214 265 0880, ahowells@hfflp.com

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

HFF secures construction/permanent financing for development of Silicon Valley Courtyard by Marriott Hotel

SAN DIEGO, CA – The San Diego office of HFF (Holliday Fenoglio Fowler, L.P.) has secured construction/permanent financing for the development of a 162-key Courtyard by Marriott Hotel in the Silicon Valley area of California.

Working on behalf of Huntington Hotel Group, HFF senior managing director Tim Wright (top right photo) and associate director Zach Koucos (top left photo) placed the 12-year loan with a fund advised by the U.S. real estate business of UBS Global Asset Management.

Huntington Hotel Group is a developer and manager of a portfolio of Marriott and Hilton select service brands.

Due for completion in December 2009, this Courtyard by Marriott will have seven stories and 95,000 square feet. The property is located at 655 Creekside Way, directly adjacent to Highway 17, in the city of Campbell, a southwestern suburb of San Jose.

“This new Marriott will capture demand from both business and leisure travelers as it is situated in the upscale community of Campbell, near the heart of Silicon Valley,” said Wright.
“Well positioned, just north of the East Campbell Avenue Master Plan Redevelopment Zone, the site benefits from its close proximity to the San Jose
International Airport, Downtown San Jose and Interstates 280 and 880,” added Koucos.



HFF (NYSE: HF) operates out of 18 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, note sales and note sale advisory services and commercial loan servicing. http://www.hfflp.com/.

CONTACTS:

Timothy D. Wright, HFF Senior Managing Director, 858 552 7690, twright@hfflp.com

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

Sale of six-building office portfolio in south Houston closed by HFF

HOUSTON, TX – The Houston office of HFF (Holliday Fenoglio Fowler, L.P.) has closed the sale of a six-building, 225,859-square-foot office portfolio in the NASA/Clear Lake submarket of Houston, Texas.

The HFF investment sales team was led by senior managing director Dan Miller (bottom left photo) and associate director Marty Hogan,(middle right photo) who represented the seller, KBS Realty Advisors.

The properties were purchased by John Cole of Twenty Twenty Properties, Inc. for an undisclosed amount. Twenty Twenty Properties owns, manages and leases 20 office buildings in the Houston area.

HFF managing director Susan Hill (top left photo) arranged financing for the purchase through Viewpoint Bank.

“The marketing campaign had just begun when a very compelling preemptive offer was received and the ownership decided to take it,” said Miller.

The properties are located in south Houston near NASA, approximately 20 miles southeast of the central business district. Individual property details are listed below.
Armand Plaza (top right photo)– 16441 Space Center Boulevard 64,000 Square Feet 100%, Four Buildings

Camino Center I – 17629 El Camino Real 81,108 Square Feet 92.1%

Camino Center II – 17625 El Camino Real 80,751 Square Feet 74.7%

KBS Realty Advisors is a private equity real estate company and SEC-registered investment advisor founded in 1992 by Peter Bren and Chuck Schreiber.

CONTACTS:

H. Dan Miller, CCIM, SIOR, HFF Senior Managing Director, 713 852 3500, dmiller@hfflp.com

Martin T. Hogan, HFF Associate Director, 713 852 3500, mhogan@hfflp.com

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