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The week will apparently end without a much-anticipated sell-off of securities and assets by Lehman Brothers Holdings Inc., but speculation continues about how the company’s next move will influence the real estate capital markets in the next few quarters and beyond. In some respects, Lehman is making progress, Fitch Ratings managing director Eileen Fahey told CPN this afternoon. The firm is in the process of trimming its commercial real estate exposure from $50 billion to $40 billion. Lehman’s issuer default rating–a much-cited risk measurement–remains at A+, identical to Merrill Lynch & Co., Fahey pointed out. That said, Lehman could still…

Government-sponsored entities Fannie Mae and Freddie Mac may well be in line for a further infusion of capital that would reduce stockholder value. The future of the two agencies is still up in the air, but the capital markets are relying on them heavily for multi-family financing. Although both Fannie and Freddie are experiencing major problems tied to the housing market’s downturn and the subprime crisis in particular, top capital markets professionals point out the GSEs still have a critical role. “From what we see, they are continuing to support (multi-family) in a disciplined way,” Thomas McManus, chairman & CEO…

After a highly successful 11-year stint as vice president of leasing at CarrAmerica Realty Corp. in Austin, real estate industry veteran Roy Scruggs has left the company and made his way to Transwestern as senior vice president. His departure has brought the closing of the leasing division of the Austin office two years after CarrAmerica had been snapped up by affiliates of The Blackstone Group in a $5.6 billion deal. Moving to Transwestern, Scruggs told CPN today, was a natural transition. “Transwestern has a similar culture to CarrAmerica’s, so the fit was just right.” During his time at CarrAmerica, Scruggs…

The volume of U.S. hotel transactions for the first six months of 2008 plunged 81 percent from the year-ago period, to $6 billion, according to a Jones Lang LaSalle Hotels report. The firm based the conclusion on its proprietary database, which tracks transactions $10 million deals and above. In the first quarter 2008 transaction volume was relatively stronger at $3.4 billion. The second quarter saw just $2.6 billion in deal closings. “Illiquid debt markets and economic uncertainty have U.S. investors generally taking a “wait and see” approach,” said Arthur Adler, managing director & CEO-Americas for Jones Lang LaSalle Hotels said…

Ramco-Gershenson Properties Trust has sold the 330,000-square-foot Plaza at Delray shopping center in Delray Beach, Fla., to its $450 million joint venture with the state of Florida, which is advised by Heitman L.L.C. The JV secured $48 million in permanent financing for the center for five years at 6.0 percent interest. “This transaction allows us to maintain a 20 percent ownership interest in a very attractive center; pay off $43 million in permanent, company-level debt; and generate approximately $23 million in net proceeds, which will be used to fund our previously announced business plan,” president & CEO Dennis Gershenson said…

Development in Dubai continues to explode with Emaar Properties, the Middle East’s largest builder, saying it is beginning sales this week for its newest residential master-planned community. Mushrif Heights is estimated to cost $3.2 billion U.S. and will be an eco-friendly community spread over 44 million square feet featuring villas, town homes and apartments. Emaar Properties, which introduced the master-planned community concept to Dubai in 1999 with its Emirate Hills project, is building Mushrif Heights near Al Awir, close to Mushrif Park and about 15 minutes from the Dubai International Airport. A company release notes that the new neighborhood is…

It might appear counterintuitive for a significant private equity player, having chucked most of its commercial real estate at the height of the market, to then take refuge in the seemingly even more troubled residential market, but that’s exactly what Brookwood Financial Partners L.P. has done. About 10 days ago, Brookwood announced that affiliate Brookwood Value Partners L.L.C had made the first purchase under its new strategy of acquiring finished residential lots. The acquisition covered 214 finished lots in The Grove, Lehigh Acres, Fla., from national homebuilder D.R. Horton Inc.; Brookwood has also contracted to buy another 140 lots once…

Senior living communities, traditionally home to populations of predominantly female residents, are now experiencing significant growth of their male populace. The trend is particularly prevalent at independent living facilities–be they dedicated independent living properties or housing units within continuing care retirement communities. As per a recent study by Brentwood, Tenn.-headquartered Brookdale Senior Living Inc., the largest owner and operator of senior living communities in the U.S., male move-ins at the company’s independent living facilities across the country have risen by an average 7.5 percent from 2004 to now. At some Brookdale independent living sites, the jump in male residents between…

The U.S. Treasury is likely to have to recapitalize the two sagging government-sponsored enterprises, Fannie Mae and Freddie Mac, and may have to accomplish that goal with taxpayer money. According to a report in the August 18th edition of Barron’s, the Treasury Department and the new regulatory body, the Federal Housing Financing Agency, have told the agencies they must raise more equity. If they cannot accomplish that, the Treasury would inject taxpayer money into the agencies, according to the report. The U.S. government’s guarantee to purchase any obligations and other securities issued by Fannie and Freddie was helpful in the…

Oh what a conundrum! Family business: Should I, or shouldn’t I? In my opinion there really isn’t a right or wrong answer to this question. It is simply a matter of personal preference. I have observed extremely successful family enterprises that strengthen relationships and flourish across generations. I have also witnessed business ventures that were responsible for the total destruction of what were previously very close families. Whatever decision is made with respect to bringing family members into a business, it is a decision that should not be taken lightly. In this week’s column I’ll share my thoughts on the…