the Editors of Commercial Property Executive
Treasury Creates New Temporary Financing Program
Acting at the behest of the U.S. Federal Reserve, the U.S. Department of the Treasury has put into effect–for the short term–a new program designed to provide a cash infusion for the Federal Reserve’s initiatives. The Supplementary Financing Program, announced today, will allow for the selling of a series of Treasury bills. The new financing vehicle is separate from the Treasury’s existing borrowing programs. “The Federal Reserve has announced a series of lending and liquidity initiatives during the past several quarters intended to address heightened liquidity pressures in the financial market, including enhancing its liquidity facilities this week,” the Treasury…
WaMu Puts Self on Block
According to a story broken by the New York Times, Savings & Loan bank Washington Mutual is looking for a buyer. The paper noted that Goldman Sachs has been tapped to spearhead the process. A number of suitors were mentioned in the report. These include Wells Fargo, JPMorgan Chase and HSBC. Should no one step up this could be another falling shoe that the Federal government may wind up picking up. The bank’s shares have fallen 94 percent in the last year. Its debt is now rated as junk. TPG Capital, which propped up WaMu with $2 billion of a…
Prudential Mortgage Closes $46M Loan for Verde Realty
Prudential Mortgage Capital Company announced it has closed on a $46.5 million loan in Mexico for Verde Realty. The loan will be pooled with an existing $93 million loan to give the borrower, Verde Mexico, S. de R.L. de C.V., a subsidiary of Verde Realty Operating Partnership L.P., a total of $139.5 million in funds. Verde Realty was formed to invest in real estate opportunities close to the border between the United States and Mexico. The $46.5 million loan is an 84 month fixed rate loan. The pooled loans are backed by 22 manufacturing properties in Mexico totaling over 4.7…
Temple REIT to Take Capri Centre
Temple Real Estate Investment Trust, Winnipeg, has agreed to purchase the Capri Centre, a 14-story full-service hotel, trade and conference center in Red Deer, Alberta, for C$40 million (U.S.$37.7). The 10.7-acre complex includes 218 guestrooms, including eight two-story one- and two-bedroom suites; three restaurants and three lounges; conference and trade show facilities consisting of 16 meeting rooms totalling 53,000 square feet, the largest of which can accommodate up to 1,000 people; on-site parking for more than 1,200 vehicles; and a heated outdoor swimming pool. The acquisition is scheduled to close on November 1. Following an C$8 million (U.S.$7.5) capital expenditure…
$55M Freddie Mac Financing Closes for Suburban Maryland Apartment Property
Financing to the tune of $55 million has been put in place for the Keswick Park Apartments, a 406-unit multi-family asset in Crofton, Md., about 25 miles northeast of Washington, D.C., and 25 miles south of Baltimore. Acting on behalf of Boston-based borrower Berkshire Property Advisors L.L.C., real estate investment banking and commercial mortgage brokerage firm Johnson Capital orchestrated the financing. The backing came in the form of a seven-year fixed-to-float loan with a 6.11 percent interest rate–through Freddie Mac’s Acquisition-Rehab program. The interest-only financing will be amortized over 30 years following the first four years of the term. “We…
New Haven Taps Northland as Developer of Downtown Mixed-Use Project
The city of New Haven, Conn., has picked Northland Investment Corp. to redevelop the 4.5-acre site of the former Veterans Memorial Coliseum into a mixed-use project that will include office, residential and retail space along with a new Long Wharf Theatre.One of six submissions, Northland’s proposal included more than 1 million square feet of development and parking. Tom Iskra, development manager for Northland, has told CPN the firm’s proposal called for 550 units of residences, most of which would be in a 29-story tower at George and State streets and others in seven-story buildings along Frontage and Orange streets that…
Transcontinental Wraps Up Purchase of 1,400-Acre Dallas Mixed-Use Project
A 1,400-acre master-planned development 20 minutes east of Downtown Dallas has come under new ownership and new plans for the project have emerged. Transcontinental Realty Investors acquired Travis Ranch, which is already under development along Lake Ray Hubbard, from IHP Capital Partners. Located off Highway 80, Travis Ranch existed just a few years ago as a full-fledged ranch owned by former Texas Governor Bill Clements, whose home is still on the site. Transcontinental is planning to erect a regional shopping center and a multi-family residential community on a portion of the property centering on a natural lagoon. The commercial and…
Fed Stands Pat
The Federal Reserve’s monetary policy committee has decided to leave the key short-term rate at 2 percent at its just concluded meeting. The decision comes despite pressure to cut in the wake of Lehman Brothers, the dire straits in which American International Group and Washington Mutual find themselves, and other vexations roiling the U.S. and world financial markets. Since the announcement, the market has been fluctuating broadly. They closed up strongly however. The Dow ended at up 141.51, or 1.3 percent; the Nasdaq was up 1.28 percent, or 27.99, at 2,207.90; the S&P 500 finished up 1.75 percent, or 20.90,…
Wall Street Wobbles, Opinions Abound
The Wall Street mess has clearly provoked Main Street. As of midday today the market was treading water–after yesterday’s near drowning. Then the Fed stood pat, and stocks fluctuated broadly in response. They closed up strongly however. The Dow ended at up 141.51, or 1.3 percent, the Nasdaq was up 1.28 percent, or 27.99, at 2,207.90; the S&P 500 finished up 1.75 percent, or 20.90, at 1,213.60. But according to some economy watchers, the worst is yet to come–there are plenty more shoes still to drop.But while the public awaits the next market gyration with baited breath, the market has…
AIG: NY State Steps Up, but Needs More Help
AIG is getting hammered, and according to some industry watchers may have only a day or two to find sufficient funding or declare bankruptcy. As of this morning, although the Federal Reserve had declined to extend a bridge loan to American International Group, its New York branch was in talks with Goldman Sachs and JP Morgan about raising an emergency fund for AIG. As this appeared to fall apart later in the day, AIG hopes slumped. Then after hours, a Bloomberg News report unnamed sources suggesting that a Fed conservatorship might be an option. That was later followed by a…