HFF D.C. closes more than $240 million in multi-housing property and land sales in December 2010

WASHINGTON, D.C. – The Washington, D.C. office of HFF (Holliday Fenoglio Fowler, L.P.) has closed the sale of four multi-housing properties totaling more than $240 million and 1,515 units in December 2010 in the greater Washington, D.C. region. 

HFF managing directors Dave Nachison (top right photo) and Alan Davis (top left photo)  and Brenden Flood represented the respective sellers in these transactions. 

Individual sale details are listed below, showing buyer first and seller second:

Westwind Farms (middle right photo), Associated Estates, Camden Property Trust,   464 Units

Ashburn, VA

Marymont at Laurel Lakes (middle left photo), Pantzer Properties Inc., Eaton Vance Mgmt., 308 Units, Laurel, MD

The Ashton at Dulles Corner (bottom right photo), Bentall Kennedy, Fairfield Residential, 453 Units

Herndon, VA

The Heights at Groveton (Land) (bottom left photo), Redbrick Dev. Group, Madison Dev. Partners,    290 Units, Alexandria, VA

“These four transactions illustrate the depth and breadth of capital targeting the highly sought Washington, D.C. region’s multi-housing market today from core-quality, new construction to value-add and development opportunities,” said Nachison.

“Apartment fundamentals are stronger in the D.C. region than anywhere in the country and both the recent record-setting absorption and the gap in the development pipeline from 2008-2010 have bolstered rent growth expectations.”

“Westwind Farms and The Ashton at Dulles Corner are both market-leading Class A communities in the Dulles corridor that will directly benefit from the delivery of Metro’s Silver line in five years,” added Nachison.

“Marymont is a value-add acquisition that is well-positioned to take advantage of the tremendous BRAC growth at Fort Meade and the arrival of the InterCounty Connector that will link Laurel to some of the best employment centers in Montgomery County. 

“Lastly, The Heights at Groveton land will be developed by Redbrick Development and Wood Partners, and is poised to deliver apartments and complementary retail at a time when most experts project one of the tightest supply markets the DC region has ever seen.”

Contacts:

David R. Nachison, HFF Managing Director, (202) 533-2500 dnachison@hfflp.com

Alan M. Davis, HFF Managing Director, (202) 533-2500 adavis@hfflp.com

Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500,

krmurphy@hfflp.com

Rubenstein Partners Finalizes Four Year-End Transactions

  

PHILADELPHIA, PA,  /PRNewswire/ -- In a sign that the commercial real estate investment market is beginning to thaw, Rubenstein Partners, a private equity firm providing leading real estate investment management and advisory services in office markets throughout the Eastern United States ("Rubenstein"), announced the closing of four separate transactions in the fourth quarter of 2010 by Rubenstein Properties Fund, L.P. ("Fund"), the Fund's first new investments in nearly four years.

The four transactions located in Charlotte, NC, Whippany, NJ, Alexandria, VA and Cleveland, OH represent an initial equity investment of approximately $70,000,000, with anticipated follow-on equity investments in these deals of $30,000,000. 

After patiently scouring for opportunities over the past few years, these deals reflect Rubenstein's ability to seize new opportunities in what had been a dislocated office investment market.

Each investment, while unique and distinct, is consistent with the Fund's focus on value-added office investments.   Following the execution of these four year-end deals, the Fund is approximately 70% committed and has approximately $150,000,000 of equity available for future investments.

Rubenstein anticipates this year-end flurry of investment activity to be a harbinger of increased deal flow as distressed situations and others begin to make their way into a market that was overheated in 2006-2007, largely frozen in 2009 and anemic in 2010.

 "We have worked very hard sourcing, underwriting and negotiating potential transactions for the better part of the last four years, but have refrained from buying.  As the result of the firm's discipline, the Fund is well positioned to take advantage of opportunities that we believe will be coming to the market in 2011 and beyond," said David Rubenstein (top right photo), senior managing principal of Rubenstein Partners, the Fund manager.

Rubenstein Partners, founded in September 2005, is a private real estate investment management and advisory firm with operations throughout the Eastern United States.  The firm is lead by David Rubenstein and a select group of former senior real estate executives from The Rubenstein Company, L.P.

For additional information on the individual transactions, please contact:

Michael O'Callaghan of Rubenstein Partners, +1-215-399-4572, mocallaghan@rubensteinpartners.com

Web Site: http://www.rubensteinpartners.com/

Los Angeles Hotel and Multifamily Markets Improving, Says Jones Lang LaSalle

LOS ANGELES, CA-- Los Angeles hotels and multifamily are staging a comeback, but other commercial property types are lagging the nation in terms of recovery, according to the latest Jones Lang LaSalle analysis.

As steady job growth re-emerges, demand will pick-up in 2011, but growth will not only be slow, it will be uneven across geography and property types.

The professional services sector will lead the labor market recovery in terms of job growth and will be an important demand driver for both the office and hotel sectors.

 Manufacturing will lag, but rising demand for clean technology and a resurgence in aerospace will bolster Southern California’s manufacturing sector.

 Investment activity remains strong across all property sectors

 Challenges in obtaining traditional financing for small businesses is placing a significant drag on Los Angeles employment

Entertainment, one of Los Angeles’ largest employment subsectors, will add stability to the region’s recovery

Office:  Large space dispositions in the next six-to-twelve months will potentially set the office market back, causing recovery to be uneven and extending the window of opportunity for tenants.

Investment activity targeting well-leased core urban assets is expected to increase.  Office-using employment to show gains in 2011 but the office market will lag economic recovery significantly. 

Downtown CBD will experience decreases in occupancy while ownership may consolidate further.  Tri-Cities will see gains driven by entertainment. 

West Los Angeles leasing to improve, but larger deliveries will place additional pressure on the market.  South Bay will see increase in vacancy due to core defense industry consolidation, but space related business will spur growth.

 Industrial:  With leading industrial indicators pointing towards rental growth in 2011, the pace of investment activity should mirror the second half of 2010. However, the market will remain tenant favorable with vacancy above equilibrium.  Inland Empire experiencing the fastest recovery. 

Retail:  Although retail will continue to lag, increased consumer buying power is expected to lead to greater sales and profits for retailers.

Additionally, renewed demand for store space in malls and shopping centers will further strengthen the retail leasing market and ultimately, the retail investment sales market.  

 Multifamily:  With vacancy low and demand strong, multifamily will experience stable rent growth between 1.0 and 2.0 percent through 2011. Investment levels are also expected to grow as capital rates compress.  Strong net absorption predicted in 2012. 

Hotels:  Lodging demand already marked an unmistakable rebound, posting an 8.8 percent growth rate through November 2010.  Los Angeles hotel market recovery is expected to accelerate in 2011 as hotel operators recuperate pricing power lost during the downturn.

For additional information, please visit
http://www.us.am.joneslanglasalle.com/unitedstates/en-us/pages/los-angeles-property-forecast.aspx?PagePreview=true

 Contact:

David Ebeling, Ebeling Communications, (p) 949.861.8351, (c) 949.278.7851

david@ebelingcomm.com

Grubb & Ellis Completes Disposition of Three Institutional-Grade Industrial Facilities in Chicago’s O’Hare Submarket

ROSEMONT, IL -- Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that its Institutional Capital Markets group has completed three industrial investment sales totaling more than 465,000 square feet in Chicago’s O’Hare submarket.  Terms of the three separate transactions were not disclosed.

 In Elk Grove Village, the team of Erik Foster, CCIM, senior vice president, and Mike Wilson, associate vice president, represented an institutional investor in the sale of Tri Center, a three-building, 140,837-square-foot industrial portfolio located at 1710 to 1912 Elmhurst Road and 2532 to 2552 Pratt Blvd.

The buildings offer convenient access to I-90, I-290 and I-294 and are located at the gateway of O’Hare International Airport’s proposed expansion (top left photo).  Tri Center was purchased by Towne Investments.

 Foster and Wilson also facilitated the sale of Prospect Industrial Center, a 240,000-square-foot multi-tenant industrial facility located at 1900-2000 Carboy Road in Mount Prospect, to Brennan Investment Group on behalf of an institutional fund.  The property is leased on a long-term basis to a number of credit tenants, such as Walgreens.

The team, together with John Basile, associate vice president in the Industrial Group, represented Albion Illinois Funds, LLC, in the disposition of 2392 S. Wolf Road in Des Plaines, an 84,730-square-foot industrial/flex facility that is 100-percent leased to Unisource Worldwide, Inc., with a guarantee from Georgia-Pacific Corporation.  The facility was purchased by DCT Industrial Trust and is less than a quarter of a mile from the airport’s proposed North Cargo Entrance. 

“These transactions are definitely indicative of an uptick in investment activity in the Chicago industrial market, and we are pleased to have been able to help our clients take advantage of current market conditions,” said Foster.

“In addition to my team’s expertise in industrial investment properties, through the Grubb & Ellis platform we have access to some of the best industrial leasing brokers and debt and equity experts in the marketplace, allowing us to assess the investment sales transaction from all angles, from the leasing environment to pricing trends and debt availability.”

 Contact:  Erin Mays,  Phone: 312.698.6735

Email:  erin.mays@grubb-ellis.com

 

C&W negotiates office condo and land sale for medical office complex in Orlando, FL

 ORLANDO, FL – Jan. 13, 2011– Cushman & Wakefield Senior Associate Betsy Owens, and Associate Director Mindy Boehm announced the sale of .8 acres of land at 11602 Lake Underhill Road, and seven units totaling 6,704 SF in Lake Underhill Business Center (top left photo) located at 11616 Lake Underhill Road to Dr. Vineel Sompalli.

Cushman & Wakefield represented the buyer in the $1,225,000 deal that closed on December 31. 

 Dr. Sompalli plans to build medical offices on the land adjacent to Lake Underhill Business Center, and will use the office condos for administrative offices.

Contact:  Brook Hines, Tel: 407-541-4401, brook.hines@cushwake.com

http://www.cushwake.com/

Orlando Office Market Sees Negative Absorption in 2010

  

ORLANDO, FL – Cushman & Wakefield’s  year-end 2010 statistics for the U.S. office market that show absorption totaled negative 351,636 square feet in Orlando, compared to negative 1,468,560 square feet at the end of 2009.



Overall absorption – a measure which indicates the net change in occupied space – for U.S. central business districts (CBDs) was positive 2.2 million square feet at the end of 2010, a 106.5 percent increase in occupied space from the negative 33.5 million square feet of absorption at year-end 2009, and the first time U.S. CBDs charted positive absorption since the 11.6 million square of positive absorption at the end of 2007.

 

“Positive absorption is a promising sign for the U.S. office market’s recovery,” said Maria Sicola (top right photo), executive managing director and head of Americas Research for Cushman & Wakefield.

Increases in leasing activity and limited new construction contributed to the increase in absorption. Overall leasing activity for U.S. CBDs totaled 62.4 million square feet at the end of 2010, a 26.3 percent increase from the 49.4 million square leased in 2009.

During the fourth quarter, 16.9 million square feet was leased in U.S. CBDs, making it the most active period since the second quarter of 2008, when 19.9 million square feet was leased.

Annual leasing activity in Orlando totaled 2,106,098 square feet at the end of 2010, a 1.5 percent decrease from 2,137,494 square feet at the end of 2009.

Senior Managing Director, Larry Richey (middle right photo)  said, “Like most every U.S market, Orlando continues to suffer from a lack of tenant demand.

“The Orlando office market has stabilized, and for all the reasons that we have historically attracted office relocations and expansions, this should continue. Office occupancy will remain a tenant’s market for the foreseeable future,” said Richey.

Meanwhile, new construction remained limited in U.S. CBDs. Just 7.5 million square feet of new office space was completed in 2010, a 40 percent decrease in construction from the 12.4 million square feet completed in 2009, and the lowest yearly total since 2005, when 5.2 million square feet was completed. Orlando added no new construction in 2010.

“Limited new construction has kept U.S. vacancy rates from reaching the historic highs of previous recessions,” said Ms. Sicola. “Looking forward to this year, restricted new development will play a major role in sustaining our recovery.”

The U.S. CBD overall vacancy rate declined to 14.4 percent at year-end 2010, down 0.3 percentage points from 14.7 percent at the end of the previous quarter.

The fourth quarter of 2010 marked the third consecutive quarter of declines for the U.S. CBD overall vacancy rate, which reached its peak at 15 percent in the first quarter of 2010.

Of the 31 CBDs tracked by Cushman & Wakefield, vacancy rates declined moderately in 19.

 The overall vacancy rate for Orlando decreased to 21.5 percent at the end of 2010, down from 21.9 percent at the end of the third quarter.

Despite increases in activity and declines in vacancy, rental rates remained stagnant.

The overall rental rate for U.S. CBDs was $36.43 per square foot at the end of 2010, a $0.09 decrease from $36.52 at the end of the third quarter.

 Fifteen of the 31 CBDs tracked by Cushman & Wakefield saw rental rates increase quarterly – though none more than $1.00 per square foot. Rental rates declined in 16 of the CBDs – also with none more than $1.00 per square foot quarter-over-quarter.

Rental rates for Orlando fell during the fourth quarter to $21.11 per square foot, down $0.38 from $21.49 at the end of the third quarter of 2010.

Contact: Brook Hines,  Tel: 407-541-4401, brook.hines@cushwake.com

http://www.cushwake.com/

NAI Realvest Negotiates New Industrial Lease at Goldenrod CommerCenter in Orlando

  

MAITLAND, FL - NAI Realvest negotiated a new lease agreement for 4,412 square feet of industrial space at Suite 240,  Goldenrod CommerCenter, 1468 N. Goldenrod Rd. in Orlando.

Michael Heidrich (top right photo), a principal in the firm, brokered the transaction representing the Maitland-based landlord, COP-Goldenrod, LLC and the tenant, A & B Stucco, Inc. of Orlando.

For more information, contact:

Michael Heidrich, Principal, NAI Realvest 407-875-9989 mheidrich@realvest.com

Patrick Mahoney, President, NAI Realvest 407-875-9989 pmahoney@realvest.com

Beth Payan, Larry Vershel Communications, 407-644-4142 lvershelco@aol.com

   

Colliers International Acquires Leading California Retail Brokerage

SAN FRANCISCO, CA, Jan. 13, 2011/PRNewswire/ -- In a move that will immediately bolster the existing retail expertise of its domestic operations, Colliers International today announced that it has acquired Johnson Hoke, San Francisco's leading urban specialty and lifestyle center retail brokerage firm.

By joining Colliers International, Johnson Hoke will become a critical component of one of the world's largest and most sophisticated real estate companies.

Johnson Hoke executives including Vikki Johnson, Karen Hoke and Pamela Mendelsohn also will become part of Colliers International's expanding Retail Services Group, serving many of the world's largest and best-known retailers and retail landlords. 

In conjunction with Colliers retail experts located throughout the country, the Johnson Hoke team will focus on expanding and strengthening the organization's retail services footprint throughout California and in major markets across the nation.

"Johnson Hoke represents an excellent addition to our fast-growing U.S. retail platform," said Dylan Taylor (top right photo), chief executive officer of Colliers International in the U.S.

 "Like Colliers International, Johnson Hoke knows how to enhance the value of their clients' assets through sophisticated lease negotiations and other client services. With their long-standing reputation for creativity and integrity,

“ I am excited to have them now working shoulder-to-shoulder with us as part of Colliers International beginning today." 

"Johnson Hoke is the perfect complement to our existing San Francisco retail team of Ross Portugeis and Glen Jones," said Alan Collenette (top left photo), Managing Director for Colliers International's operations in San Francisco and Marin County. 

"Their clients have always sought them out for their flair and for their matchless knowledge, not just of real estate, but of retailing and merchandising.  They understand how to make intelligent retail real estate decisions.  I am so proud they are now part of our company."

"We are thrilled to add a team with the depth of experience that Vikki (Johnson) and her colleagues possess," said Patrick Duffy (middle right photo), head of the Retail Services Group and president of Colliers International's Houston office.

 "The Colliers Retail Services Group has expanded over the past few years to include more than 350 of the best retail professionals in North America and over 450 worldwide. The Johnson Hoke team stands among the best in the world, and their arrival will measurably elevate our game."

Founded in 1997 in San Francisco as a boutique retail services firm, Johnson Hoke has since become one of the savviest and most successful firms in their niche market of urban specialty retail. With a focus on the upper end of the retail market, the firm actively advises and consults with developers, landlords and tenants throughout the region.

"I look forward to taking the depth of our experience and utilizing the Colliers platform to provide an international reach for the benefit of our clients. My passion is the bricks and mortar of the business, which is where I want to spend my time," said Vikki Johnson (middle left photo), Managing Director - Colliers International Retail Services Group, San Francisco

"I wake up every day and love what I do; advising our landlord and retail clients. I want to be a part of the finest real estate firm in the world, and I think with Colliers, we will be," said Karen Hoke (lower right photo), Senior Vice President, Colliers International San Francisco

The former Johnson Hoke operation will be rebranded as Colliers International. There will be no staffing changes at either Johnson Hoke or Colliers International based on today's news.

    Contacts:

    Richard Mulieri or  Parke Chapman

    The Marino Organization, 212-889-0808

    Richard@themarino.org

    Parke@themarino.org

HFF secures $6.4 million refinancing for Chelsea, MA industrial facility

BOSTON, MA – The Boston office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has secured a $6.4 million refinancing for Mystic Commerce Center (top left photo), a two-building, 252,474-square-foot industrial facility in Chelsea, Massachusetts.

Working exclusively on behalf of Combined Properties, Inc., HFF directors Greg LaBine (middle right photo)  and Janet Krolman (lower left photo) placed the five-year, fixed-rate loan with PPM Finance, Inc. on behalf of Jackson National Life Insurance Company.  Loan proceeds are replacing the existing first mortgage debt.  HFF will also service the loan.

Mystic Commerce Center is located at 143-201 and 172-180 Williams Street close to U.S. Route 1, downtown Boston and Logan International Airport in Chelsea.

“A number of Mystic Commerce Center tenants have been in occupancy since the late 1980’s and early 1990’s demonstrating the strength of the asset and its location. 

"The property sits adjacent to Route 1, within a quarter of a mile from the entrance to the Tobin Bridge,” said Krolman.

Combined Properties, Inc. is a full-service real estate investment and development firm specializing in high-quality office, R&D, industrial and retail properties in the northern suburbs of Boston.  Since its founding the company has purchased, developed and managed more than two million square feet of space.

Contacts:   

Gregory F. Labine, HFF Director, (617) 338-0990, glabine@hfflp.com

Janet N. Krolman, HFF Director, (617) 338-0990, jkrolman@hfflp.com

Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500

krmurphy@hfflp.com

                      

Marcus & Millichap Capital Corp. Arranges $5 Million Retail Loan

RALEIGH, N.C. – Marcus & Millichap Capital Corporation (MMCC) has arranged a $5 million loan to refinance a 14,550-square foot freestanding Walgreens drugstore in Raleigh, N.C.

William Craun, an associate director in the firm’s San Francisco office, arranged the loan.

“The borrower was trading 1031 exchange proceeds from an apartment building sale into two triple-net transactions, one in California and one in North Carolina,” says Craun. “Interest rates increased during the month, but MMCC was able to close the transaction in a timely manner.”

The Walgreens loan is for 10 years, amortized over 30 years with a fixed interest rate of 6.253 percent. The LTV is 66.4 percent.

$6 Million Private-Placement CTL Loan Arranged for Walgreens in Medford, OR

MEDFORD, OR – Marcus & Millichap Capital Corporation (MMCC) has arranged a $6,091,000 private-placement, credit-tenant lease loan for the purchase of a Walgreens drugstore in Medford, Ore.

Tim Kinney, a senior director in the firm’s Atlanta office, arranged the loan.

“MMCC’s ability to source financing for single-tenant net-leased assets is well established,” says Kinney. “Improved liquidity among lenders and buyer demand for national single-tenant leased properties is bringing increased momentum to the investment arena.”

The loan is for 24.6 years, amortized over 24.6 years with a fixed interest rate of 6.15 percent. The LTV is 88 percent.

Press Contact: Stacey Corso, Marcus & Millichap Capital Corporation, (925) 953-1716

Anchor Planning Group Introduces Next Generation of Hotel Executive Search

  

 FREDERICKSBURG, VA, Jan. 13, 2011—Anchor Planning Group, a human resources consultancy with global outreach experience helping organizations systematically improve productivity while reducing cost, today unveiled a number of innovative, valued-oriented programs designed to expedite the talent acquisition process, source better candidates and reduce cost, with each program accompanied by a first-of-its-kind guarantee.

 In addition, the company offers an “a la carte menu” of services to address the needs of individual clients.  The programs represent the first substantial, comprehensive changes to the executive search industry in some 30 years.

 “The hotel industry is on the road to recovery, and operators will soon be scrambling to find qualified talent as business levels improve and operators begin replacing some 500,000 associates that were laid off during the recession,” said Jeffrey A. Wade (top right photo), president and CEO, Anchor Planning Group.

 “However, it is a major misconception that high unemployment rates will make it easier to fill those positions with talented associates.  Many potential employees are skeptical or have left the industry completely due to the massive lay-offs.

“Concurrently, the downturn has caused hoteliers to rethink staffing levels and skill set requirements, which will significantly change the selection process,” Wade added.

 “The days of turning to a trusted Rolodex of contacts or placing an ad in a newspaper or even on-line are gone.  To respond, we have created a new system that combines technology with more than a century of hotel human resources expertise to develop a modern way to source, vet and attract top talent.” 

Additional information may be found at the company’s website: http://www.anchorplanninggroup.com/

Contact:  Patrick Daly, Jerry Daly,  media, (703) 435-6293 patrick@dalygray.com

Doug Driver Joins Franklin Street as Senior Director in Fort Lauderdale, FL

FORT LAUDERDALE, FL--Franklin Street is pleased to announce Doug Driver has joined as Senior Director in Fort Lauderdale, FL Mr. Driver has over fifteen years of successful commercial brokerage experience.

Throughout his extensive career, he has been responsible for the sale or financing of over $900 million in commercial properties for numerous high-profile clients including AEW Capital Management, American Land Development, Ameriton Properties, Archon Group, Archstone, CIGNA, Highwoods Properties, Principal Capital Management, Sarofim Realty Advisors, Teachers Insurance & Annuity Association (TIAA-CREF), Times Square Capital Management, Trammell Crow Company and United Healthcare.

Mr. Driver has written numerous research reports and articles on the South Florida multifamily and commercial real estate markets.

He has been published in periodicals such as Miami Today, The South Florida Business Journal, Florida Real Estate Journal, Multihousing News, Urban Land (magazine), Chicago Tribune, Commercial Investment Real Estate (magazine) and Miami Herald.

 

Mr. Driver received his CCIM designation from the CCIM Institute in 1998 and his M.B.A. from the University of South Florida in 1996. Mr. Driver is a Florida licensed Real Estate Broker, Florida licensed Mortgage Broker and Florida Certified General Contractor.

HFF arranges $20.25 million refinancing for office/lab building at Dow AgroSciences global headquarters in Indianapolis

 INDIANAPOLIS, IN – The Indianapolis office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has arranged a $20.25 million refinancing for a recently constructed office/laboratory building on the campus of Dow AgroSciences’ global headquarters in Indianapolis. (top left rendering)

HFF senior managing director David Keller (middle right photo) and managing director Jon Everson (lower  left photo)  worked exclusively on behalf of Red Diamond Associates LLC, an entity controlled and managed by Browning Investments, to secure the 18-year fixed-rate loan through John Hancock Life Insurance Company, a correspondent life insurance company lender.

 The loan will be serviced by HFF. 

“The borrower was motivated to maximize the benefit of a new long-term credit lease, and was able to lock in a competitive fixed interest rate through a life company early rate lock prior to the recent rise in treasuries,” said Everson.

Browning Investments is a leading Indianapolis-based developer engaged in the acquisition, ownership, development, construction, leasing, management and disposition of investment real estate properties since 1977.

Contacts:  

David B. Keller, HFF Senior Managing Director, (317) 632-7500 dbkeller@hfflp.com

Jonathan P. Everson, HFF Managing Director, (317) 632-7505 jeverson@hfflp.com

Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500,  
krmurphy@hfflp.com

Post Properties Announces Estimated Income Tax Characteristics of 2010 Dividends

ATLANTA, GA--(BUSINESS WIRE)-- Post Properties, Inc. (NYSE: PPS) announced today how it expects its 2010 dividends to be classified for federal income tax purposes.

 The dividend classifications are shown on the attached chart (Please contact Chris Papa, 404-846-5000, for chart information).

Of special note is that for tax reporting purposes, the common stock dividend payable on January 14, 2011 is taxable in year 2011. This release is based on the preliminary results of work on the Company’s tax filings and is subject to correction or adjustment when the filings are completed.

The Company is releasing information at this time to aid those required to distribute Forms 1099 on the Company’s dividends. No material change in these classifications is expected.

Cortland Partners Acquires Marietta Apartments in Marietta, GA

ATLANTA, GA (Jan. 12, 2011) – Cortland Partners, an Atlanta-based multifamily real estate firm, is starting the new year by acquiring Highland Court apartments (top left photo) from a Florida-based lender that foreclosed on the property last year.

On Jan. 7 it acquired the property, a 152-unit apartment community in Marietta, GA, for $2.6 million. The firm will spend another $800,000 to make targeted improvements to the property.

“This property, which is 99% occupied, fits perfectly in Cortland’s strategy of making opportunistic acquisitions that are in the path of growth, on a large piece of land with future development potential, and in a great submarket,” said Brad Brown (lower right photo), Cortland’s Chief Acquisitions Officer. “The Marietta market has high barriers to entry for new developments, so this represents a solid buy in a solid submarket.”

The community has a mix of two-bedroom and three-bedroom townhomes. The two-story townhomes are popular with families.

One of the best characteristics of the property is that it is a large and a parklike setting, which helps make the community very appealing to residents.

Located on Allgood Road, adjacent to I-75, Highland Court has great access to Atlanta’s Northwest corridor.

Renovation plans include new roofs, exterior paint, landscaping, signage, and utility repairs. MetroBank in Douglasville financed the acquisition. 

Highland Court is the sixth recent addition to Cortland’s portfolio.  Since July of 2010, Cortland has acquired 1,515 units and built 222.

For more information, visit www.cortlandpartners.com

Contact: Terri Thornton, 404-932-4347,   

http://www.territhornton.com/

MBA Files Suit to Overturn Labor Department's Interpretation on Overtime for Loan Officers

 WASHINGTON, D.C. (Jan. 12, 2011) - The Mortgage Bankers Association (MBA) today filed suit against the U.S. Department of Labor (DOL) in the United States District Court for the District of Columbia under the Administrative Procedure Act (APA). 

 The suit seeks to set aside DOL's Wage and Hour Division Administrator's Interpretation No. 2010-1 (March 24, 2010) that reversed and withdrew a 2006 opinion letter from DOL to MBA.

The 2006 opinion letter interpreted DOL's own regulations and concluded that typical loan officers were exempt from Fair Labor Standards Act (FLSA) requirements for overtime payments under the "administrative exemption."  

 "In 2006, the department issued a clear opinion to MBA interpreting DOL regulations that exempted typical mortgage loan officers from overtime pay," said MBA's President and CEO John A. Courson (top right photo).

 "If the department wanted to reverse that opinion, it should have provided notice and an opportunity for public comment.  In issuing this administrative interpretation, the department ignored that statutory requirement."

 The mortgage lending industry has relied on the 2006 DOL opinion letter to MBA and the underlying regulations indicating that a loan officer can qualify for the administrative exemption under the FLSA.   MBA claims that the abrupt reversal of this ruling subjects mortgage lenders to unnecessary litigation.

 "This abrupt reversal by the department not only opens lenders up to lawsuits for past actions, but also could require them to make costly changes to their internal operations and compensation structure, costs that will ultimately be borne by the consumer," continued Courson.

 "Requiring loan officers to be paid overtime will not increase their compensation and asking them to now track and report their hours will deprive them of the flexible schedules they and their customers have enjoyed."

  "What we are asking the court to do is to set aside this ruling, effectively requiring that, if the department wants to reverse the 2006 ruling, it follow the APA and issue a proposed rule for public comment.  If the department were to do that, we are confident it would find that the existing ruling providing an administrative exemption for loan officers from overtime should remain."

 In its suit, MBA asks the court to declare that the department violated the APA, vacate and set aside the Administrator's Interpretation (AI) and prevent enforcement, application and implementation of the AI.  

 The suit also urges that, because the DOL's interpretation in the AI is contrary to the plain language of the regulations and the preamble interpreting them, the AI is arbitrary, capricious, an abuse of discretion, and otherwise contrary to law.

 Contact:

John Mechem, (202) 557-2924, jmechem@mortgagebankers.org

,