Commercial Property News - November 2008 - (Page 6)

BUZZWORTHY NEWS TREND Investors Team Up for Double the Strength As the credit crunch continues to put a stranglehold on financing for acquisitions, investors are increasingly teaming up in joint ventures in order to get their hands on capital for deals. By partnering, firms are able to meet the current lending environment’s higher equity requirements and to share the default risk later on. According to an October report by Real Capital Analytics Inc., ventures between two or more equity partners accounted for 20 percent of worldwide property acquisitions in 2008. That is expected to increase while capital markets remain tight. Indeed, in early October, CB Richard Ellis Realty Trust and Childress Klein Properties shelled out $50 million for almost 300,000 square feet in Kannapolis,N.C.’s Afton Ridge Shopping Center. Later that month, LandCap Partners and Kennedy Wilson Inc. formed a Visit www.cpnonline.com for the latest news affecting commercial real estate. $100 million fund to invest in multifamily properties, planning to hold each asset for less than a year. That agreement came on the heels of Thompson National Properties L.L.C. and Morgan Management ON THE RADAR L.L.C.’s formation of a joint venture to acquire apartment properties in Texas and the eastern United States. Joint-venture activity has crossed borders, as well. In September, GLL Real Estate Partners GmbH, a part- nership between Lend Lease Corp. and Italian firm Assicurazioni Generali S.p.A,snapped up an office building at 200 State St. in Boston from Broadway Partners for $167 million. —Reach news writer & economic editor Adam Perrotta at adam.perrotta@nielsen.com. Government Efforts to Move Markets Encourage Corporate Net Lease Deals The net lease sales market has been sluggish of late, to say the least. Owner-occupiers seeking to monetize their assets during the economic slowdown have had their hands tied by possible buyers’ difficulty in obtaining financing. There also remains a wide expectation gap between sellers and buyers, especially sellers that may have bought at an aggressive cap rate and are hesitant to sell at today’s prices. But there may be relief on the horizon.The efforts of governments around the world to defrost credit markets may lead to a brisker net lease scene in the coming months. Already, there have been some indications that the market may be crawling back to life. The middle of October saw the $192 million sale of Verizon Communications Inc.’s 22-story Boston headquarters to Kennedy Associates Real Estate Counsel L.P. Verizon will retain ownership of a 100,000square-foot portion of the building and lease back the remaining 600,000 square feet. And General Motors Corp. had at least enough confidence in the net lease market to announce that it Verizon Communications Inc.’s recent sale-leaseback of its 700,000-squarefoot Boston headquarters to Kennedy Associates Real Estate Counsel L.P. may be a sign that the sluggish net lease market is getting back on track. Paid to the order of: accomplishing your commercial real estate dreams At Arbor, we take being your financial partner seriously. With our unsurpassed range of unique lending solutions, you can count on us for whatever you need, whenever you need it. And there is no dealing with third party lenders – just Arbor. We’ll custom design your financing and fund it too. We believe in growing financial partnerships, that's why most of our clients are repeat borrowers. 1-800-ARBOR-10 • www.arbor.com FANNIE MAE • FHA • CMBS • BRIDGE • MEZZANINE • PREFERRED EQUITY Growing Financial Partnerships Austin, TX • Bloomfield Hills, MI • Boston, MA • Chicago, IL • Dallas, TX Darien, CT • New York, NY • Spokane, WA • Uniondale, NY • Westlake Village, CA http://www.cpnonline.com http://www.arbor.com http://www.arbor.com

Table of Contents for the Digital Edition of Commercial Property News - November 2008

CPN - November 2008
Contents
Starting Line
Buzzyworthy
Seniors Housing
Data/Analysis
Conferences
Through the Fog
CPN’s Top Cities for Investment & Corporate Relocation
Finance
International
Sustainability
CPN-Nielsen Claritas Special Report

Commercial Property News - November 2008