defending mreits: a cavalry of silver-haired retirees sell your commercial real estate or note...

THE WATCH LIST NEWSLETTER 1

A WEEKLY NEWSLETTER FOCUSING ON CHANGING MARKET CONDITIONS COMMERCIAL REAL ESTATE MORTGAGES AND CORPORATIONS PUBLISHED BY COSTAR NEWS

IN THIS WEEKS ISSUE

Defending mREITs A Cavalry of Silver-Haired Retirees 1 Real Estate Groups Mobilize to Fight Hike in Carried Interest Tax in Presidents Jobs Plan 2 Synchronicity CRE Prices Increase Across the Board for Last 3 Months 4 Sperry Van Ness Lender Approved Auction Light MfgWarehouse Facility 5 Forecasters See Rockier Than Expected Retail Recovery in Next 12 Months 5 Bank of America To Lay Off 30000 6 Paying 90 More than the Going Office Market Rental Rates 7 Brooklyn Federal Falls Below $1Share in Advance of CRE Loan Selloff 8 Agree Realty Finding Signs of Life After Borders 8 Mens Wearhouse Set for New Round of Expansion 8 SuperValu Siphons Off 107 Fuel Centers 9 Amassing a Retail Footprint on Times Square 10 Upcoming Corporate Downsizings amp Facility Closures 10 Loans and Properties Under Surveillance 12 Watch List Large Multifamily Loans 90 Days or More Past Due 12 Readers Are Hooked on Watch List Ads 13

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Defending mREITs A Cavalry of Silver-Haired Retirees REIT Investors Rally Around Their Dividends as SEC Considers Tighter Regulations

A cavalry of retired investors is riding to the defense of mortgage REITs after the US Securities amp Exchange Commission has put the industry on notice that it is considering changes to how the REITs are regulated The SEC is considering whether such REITs should be allowed to claim exemptions enacted as part of the Investment Company Act of 1940 -- long before such REITs were even created -- and also whether they should be subjected to tighter new regulations as part of greater oversight of the mortgage industry proposed in light of the extensive abuses and their role in the mortgage market collapse In its release the SEC expressed concerns that companies not regulated by the act may deliberately mis-value their assets use excessive amounts of leverage and operate in a manner that favors company insiders and not shareholders The reactions in the stock markets were immediate Mortgage REIT share prices plunged on the announcement The iShares FTSE NAREIT Mortgage Plus Cap Index dropped 60 cents a share - losing a little more than 4 of its value The index value this week was at the lowest level it has been in two years The stock market reaction to the SECs announcement spurred the letter writing charge I dont understand what problem youre trying to solve but should the regulations change I expect it will destroy an excellent income generation tool writes private investor Thomas Moore in his comment to the SEC I disagree with the premise that mortgage real estate investment trusts should be regulated as investment companies Moore is not alone His is one of 87 comments the SEC has received and posted publicly on changing oversight of mortgage REITs Of the 87 comments posted only one is backing the SEC review And only a handful are from mortgage REIT industry professionals The rest are from individuals who mostly identify themselves as retired investors

MARK HESCHMEYER EDITOR WWWCOSTARCOM SEPTEMBER 15 2011

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NON-PERFORMING NOTE amp COMMERCIAL REO AUCTION BID ONLINE SEPTEMBER 26 ndash 27

$100 MILLION IN NON-PERFORMING NOTES amp COMMERCIAL REO PROPERTIES IN 17 STATES

Industrial Property Richmond VAStarting Bid $1500000Size 302081 SFType Industrial

HotelRichmond VAStarting Bid $1700000Current Balance $29500000Status Non-PerformingSize 372 KEYS

FEATURED COMMERCIAL REAL ESTATE FEATURED NOTE

$2+ BILLION SOUTHEAST AUCTIONS BID ONLINE SEPTEMBER 19 ndash OCTOBER 6

Northgate Mall Chattanooga TNStarting Bid $9000000Size 380393 SF OwnedType Retail

Multi-Family PropertyJacksonville FLStarting Bid $3000000Current Balance $16485408Status Non-PerformingSize 288 Units

Office Properties - 4 Bldgs Columbus OHStarting Bid $2500000Current Balance $11459950Status Non-PerformingSize 118817 SF

Office PropertyCharlotte NCStarting Bid $2500000Size 186822 SFType Office

175+ NON-PERFORMING NOTESSECURED BY COMMERCIAL REAL ESTATE

165+ COMMERCIAL REAL ESTATE PROPERTIES MUST BE SOLDFEATURED COMMERCIAL REAL ESTATE FEATURED NOTES

CLICK HERE to View Complete list of notes and Commercial REO Properties

Finderrsquos Fee Brokers representing winning bidders for select Notes (Mortgage Loans) offered will be eligible for a Finderrsquos Fee paid by the Seller

Broker Co-Op Brokers representing winning bidders on select Commercial Properties will be eligible for a commission split paid by the Seller Fees do not negatively impact bidding

FINDERSFEE ampBROKER CO-OP


I UNDERSTAND THE RISKS BUT

I am asking that these REITs be left alone writes Irene Wright of Louisville TN As a retired nurse I am trying to build an education fund for my young granddaughter something my graduate school daughter and her husband have little extra cash for in these times I understand the risks but it is one of the few investments making any money and Ella is going to need all the help she can get Please leave these alone and dont take one more thing away from Middle America Other commentors were more direct I respectfully request you keep your g-damned hands off REITs and particularly the mortgage REITs I have a substantial portion of my wifes and my retirement account in this class of stock As a small investor with a relatively modest retirement portfolio the safety of the dividends in these companies allows me to sleep at night -- especially in this chaotic market What the hell are you doing Stop this nonsense writes Nicholas L Dudley From Joseph Russo As a retired investor I rely heavily on dividend paying stocks I cannot comment on the legality of how the REITs work but I do know that 90 of their profits are paid out to folks like me If you see fit to change the rules and virtually wipe out the industry please calculate the amount of money you will take out of the consumers hands Investor Jeffrey Aschkenes notes the irony in the SEC considering tighter oversight The SEC has successfully missed every major potential problem and Ponzi scheme in the past 20 years You missed [Bernie] Madoff but caught Martha Stewart nice job Aschkenes writes Do the country a real service reduce the debt close the agency leave REITs alone From an industry perspective Jeffery B Cross CEO of Cross Capital Co in Peninsula OH argues that new rules are not needed because the existing rules that mortgage REITs operate under were just given a very severe and real time test by the recent credit crisis and passed He writes

bull No mortgage REIT received any form of government assistance bull No internally managed mortgage REIT failed bull The failurebail out rate among mortgage REITs was miniscule compared to banks and the least among

the classes of mortgage lending companies bull A number of mortgage REITs Dynex Capital as an example actually increased earnings during the

credit crisis bull A larger number PMC Commercial Trust (PCC) as an example had stable earnings during the credit

crisis and bull Many Mortgage REITs before this rule change announcement were trading at or above their general

pre-credit crisis levels Since we can see that the current rules produce excellent results there is no need to examine them Cross wrote The SEC is taking additional comments until Nov 7


Real Estate Groups Mobilize to Fight Hike in

Carried Interest Tax in Presidents Jobs Plan By Randyl Drummer The economy needs jobs and to help pay for his $447 billion jobs creation program President Obama is once again urging Congress to raise the tax rate on carried-interest investment income earned by real estate partnerships private equity investors and hedge fund managers


But Republicans in Congress big private-equity players such as Blackstone Group Chairman Stephen Swartzman and real estate industry groups are already asserting that tax hikes in the 200-page act will curtail job creation weaken property markets and hurt the economy Regularly since at least 2007 Congress has considered plans to change the federal tax treatment of carried interest compensation proposing to tax it as ordinary income at 35 rather than the much lower capital gains rate currently at 15 Most recently the House which was under Democratic control at the time passed carried interest legislation in May 2010 but the bill languished in the Senate which requires a two-thirds majority to avoid a filibuster Each time the proposed legislation has died under withering and coordinated opposition not just from Wall Street but also from commercial real estate and mortgage lending groups claiming that higher taxes on carried interest will discourage real estate ventures from investing in projects that create jobs and economic prosperity When Republicans won a House majority in last falls mid-term election many observers wrote off the notion of a higher tax rate on carried interest as a political impossibility But the issue has remained on the back burner during 2011 as the Administration and congressional democrats search for ways to fund new jobs pay for infrastructure improvements and stimulate the moribund economy while reducing the federal deficit Meanwhile real estate groups have maintained their lobbying efforts debates over raising the federal debt ceiling cutting federal spending and most recently the presidents job creation program have played out No sooner had the president sent the proposal to Capitol Hill on Monday then the National Multi Housing Council (NMHC) and the National Apartment Association (NAA) issued dire warnings to lawmakers on the devastating effect such a tax increase would have on rental housing While the proposal is being marketed as a tax increase on hedge fund managers and other rich Wall Street executives the truth is that real estate partnerships -- and the estimated 550000 workers employed by the apartment business and the 16 million Americans who rely on our industry to provide them with safe decent affordable housing -- will be very adversely affected by such a change the groups said The apartment industry supports sound economic policy that helps restore job growth but a tax increase on carried interest is bad for our economy and bad for our housing supply said Cindy Vosper Chetti senior vice president for government affairs for the NMHCNAA The apartment groups were part of a coalition of 14 real estate organizations that launched a pre-emptive strike during the run-up to the debt ceiling deal by Congress in July and remained wary that lawmakers would float another carried interest proposal this fall as part of a stimulus program or the 12-member congressional super committeersquos mandate to further reduce the federal deficit The groups ranging from The Real Estate Roundtable International Council of Shopping Centers and Building Owners and Managers Association (BOMA) International to NAIOP the American Hotel amp Lodging Association and the Mortgage Bankers Association said in late July that a tax increase could derail a real estate recovery by disproportionately impacting small- to medium-sized real estate partnerships that rely on carried interest to make up for the substantial risks and liabilities associated with long-term real estate ownership and development In a glossy ad depicting construction workers the groups labeled carried-interest proposals a job-killing tax hike that would more than double the tax on all carried-interest income cripple real estate job creation and investment across the country and fundamentally change over 60 years of partnership tax law Under the proposed new jobs plan taxing carried interest as ordinary income rather than at the capital gains rate would raise $18 billion while limiting tax breaks for the oil and gas industry and limiting itemized deductions and certain exemptions for corporate jet owners and individuals who earn over $200000 and families earning over $250000 would raise roughly $400 billion over 10 years Jack Lew director of the Office of Management and Budget told journalists Tuesday


We cant afford everything We have to make choices Lew said And I think if the American people were asked to make a choice between tax breaks for investment fund managers who get preferential treatment for carried interest -- that is not a hard choice for most Americans if the choice is creating economic growth and jobs or tolerating the results of many years of inequities in the tax code On Tuesday however Republican House Majority Leader Eric Cantor Speaker John Boehner and Senate Minority Leader Mitch McConnell said the half-trillion dollar tax hike the White House proposed yesterday will not only face a tough road in Congress among Republicans but from Democrats too and called the tax revenue off-set measures a hodge-podge of retread ideas The White House said the new provisions which wouldnrsquot take effect until January 2013 would not reduce economic activity or cause job loss as charged by opponents Obama has called on Congress repeatedly to quickly pass the entire plan But Republicans signaled they would likely break off and consider that tax elements of the package separately and the White House signaled that the president would not likely veto a partial plan if approved by Congress

Synchronicity CRE Prices Increase Across the Board for Last 3 Months Transaction Activity Remains Stable General Commercial Sales Increase in Deal Size

For the first time since the downturn in 2008 the CoStar Commercial Repeat Sale Index (CCRSI) showed synchronized price increases across the board from investment grade to general commercial for more than three months according to the latest release of the CoStar Commercial Repeat Sale Indices (CCRSI) The consistent positive price movement in general commercial property sales ended the bifurcation trend observed in commercial real estate prices during the second half of last year The monthly National Composite Index increased by 1 in July 2011 the fourth consecutive month of positive price movement In July the price gain was 24 for the Investment Grade Index and 07 for the General Commercial Index and both marked the fourth month of increasing prices

CCRSI INDEX RESULTS

CoStars Composite Commercial Repeat Sales Index increased by 1 in July 2011 It is now 16 below the same period last year and 331 below its peak in August 2007

CoStars Investment Grade Commercial Repeat Sales Index increased 24 in May 2011 and is now 68 above the same period last year and 324 below its peak in August 2007

CoStars General Grade Commercial Repeat Sales Index increased by 07 in May 2011 and is now 34 below its year-ago level and off 335 from its August 2007 peak

The CCRSI September 2011 report is based on data through the end of July 2011 Transaction activity decreased slightly in July with a total of 766 sale pairs compared with the monthly average of 834 in the last six months A similar slowdown in transaction activities was observed in both the Investment Grade and the General Commercial indices The former reported 120 sales pairs down from its six-month average of 130 while the latter had 646 pairs down from a monthly average of 704 The decrease appeared to be a normal monthly fluctuation At the low point in the most recent downturn only a total of 375 transactions were recorded in January 2009 Consistent with the decrease in pair counts the overall dollar volume of sales also dropped slightly in July While the average transaction size remained stable around $20 million for Investment Grade sale transactions the average deal size for General Commercial transactions increased to $19 million from an average of $16 million in the last six months



Sperry Van Ness Lender Approved Auction Light MfgWarehouse Facility

Forecasters See Rockier Than Expected Retail Recovery in Next 12 Months By Randyl Drummer The outlook is bearish for retail as the summer swoon in the economy gives way to an uncertain fall Although statistics point to a gradual recovery weak hiring a flat housing market and sagging consumer and investor confidence following the debt ceiling debate and stock market swings are resulting in a bearish revision to economic outlooks for retail demand over the next 12 months Shoppers will continue to hold back on spending until economic indicators improve and businesses are still playing the waiting game on hiring despite record corporate profits according to Jones Lang LaSallersquos Late Summer North America Retail Outlook That said the outlook appears to be more favorable for tenants than landlords Business confidence is showing signs of recent improvement which could finally translate into job creation Retailers can take advantage of lease rates that have not quite reached bottom in many markets All of the 18 regional markets that Jones Lang LaSalle tracks are tenant favorable favorable and likely to remain so for the next quarter or two Over the next four quarters however retail demand is expected to rise just 1 barely keeping up with population growth -- and thatrsquos barring another economic shock such as rising energy prices that could send demand back into negative territory according to CoStar Groups retail outlook recently revised by Real Estate Economist Ryan McCullough to account for recent sluggish economic growth


With even weaker-than-expected growth in supply and demand the outlook for rents and investment performance is notably weaker with rent growth resuming in early 2012 but at a slower pace Values will bounce along the bottom through 2012 with neither rents nor values coming close to making up for losses by 2015 Despite the strong showing of the first half of 2011 weakening economic fundamentals predict a slowdown in capital markets during the latter part of the year said Greg Maloney CEO and president of Jones Lang LaSalle Retail Consumer and investor confidence will remain low as long as uncertainty regarding global debt issues and other economic issues remain unresolved resulting in continued sluggish retail sales that do not reach 2010 levels CoStar reported last month that lta href=httpwwwcostarcomNewsArticleQuarterly-Retail-Update-Investors-Respond-To-Improving-Conditions-for-Shopping-Center-Owners-Tenants131214 target=_blankgtretail investment sales bounced back in the first half of 2011ltagtCore retail property capitalization rates have declined quickly and distressed properties have received some attention however middle-of-the-road retail locations are having valuation issues JLL said Trophy malls and grocery-anchored strip centers continue to see exceptional investor interest with more strip centers trading in the second quarter than for the entire 12 months of 2010 primarily due to Blackstonersquos purchase of the Centro portfolio JLL said Only $16 billion in distressed retail properties was added in the second quarter the lowest level since the third quarter of 2008 and most experts believe the retail sector is now halfway through its distress pool with more than $1 billion in sales transactions executed for distressed properties over the last two quarters according to JLL Good quality real estate continues to do very well and poor quality real estate continues to do even more proportionally worse said Colliers International National Director of Retail Mark Keschl Whatrsquos determining some of the nature of the quality is property in the suburbs and distant suburbs where a lot of retail got built around new subdivisions All of a sudden housing stopped and now there are centers that donrsquot have large enough populations to support them Those properties are going to see tough going up until population starts to fill back in which could be three to five years down the road One reason for optimism is that store expansion continues to gain momentum with current growth plans at up by 105 from the same time last year led by growth in urban areas according to Jones Lang Store closure announcements fell 36 from 2800 a year ago to just under 1800 in the last quarter Keschl said most of the high-quality Circuit City and Linens N Things locations have absorbed and even lesser locations will in many cases by taken by non-retail local or regional tenants Tenant interest to the 250 Borders stores mostly high-quality locations coming onto the market Books-A-Million is taking 13 stores under direct assignment from Borders at fairly high rental rates rather than letting them go back to the landlord but the majority could go to non-book retailers such as TJ Maxx discount clothing stores and other retailers that need to stay active and boost their store counts Keschl said

Bank of America To Lay Off 30000 In investor presentations this week Bank of America laid out in broad terms its corporate strategy for streamlining the company in the next two years The plan includes letting go 30000 employees a 105 reduction over its base as of June 30 The company expects that attrition and the elimination of appropriate unfilled roles will be a significant part of the anticipated decrease in jobs Full implementation of the plan is expected to lead to net expense reductions of $5 billion per year by 2014 on a baseline of $27 billion in annual expenses for the areas the company reviewed


The streamlining is to begin in October and continue through March 2012 While the company did not say where the jobs cuts will come from one specific the company noted is that it currently has 63 data centers Its what we have ndash [but] not we want a company executive said This downsizing follows on work that started in January 2010 The company continues to sell non-core business units and assets that dont support its strategy The company also said it would look at all options for its Countrywide home mortgage operations and did not rule out a potential chapter 11 bankruptcy reorganization


Paying 90 More than the Going Office Market Rental Rates In a recent study of 40 office markets across North America Jones Lang LaSalle revealed what it found to be the most expensive streets for office space in the country Sand Hill Road in Menlo Park CA topped the list with average rents reaching almost $114 per square foot while iconic streets such as Fifth Avenue in New York runs at $97 psf and Pennsylvania Avenue in Washington DC fetches above $80 psf Rents for office space in these streets were almost 90 higher than the average rents in the same metropolitan area said John Sikaitis senior vice president of research at Jones Lang LaSalle Location is everything in real estate and this study proves it Despite economic conditions demand for these prime and often prestigious addresses continues to be high The top five most expensive streets for office space were as follows

Sand Hill Road at $114 per square foot The epicenter of the technology universe Sand Hill Road houses many of the venture capitalists that provide start-ups with funding to grow and spread the tech expansion

Fifth Avenue Midtown Manhattan NYC at $97 per square foot Consistently ranked among the most expensive shopping streets in the world Fifth Avenue is also home to numerous hedge funds looking for top quality space in Midtown and willing to pay more for those coveted office locations with their unparalleled amenities

Greenwich Avenue Greenwich CT at $90 per square foot Greenwich Avenue is the main thoroughfare of downtown Greenwich with a rich history of commercial and civic development that has been preserved through older buildings Financial firms and hedge funds also dominate this swath of Fairfield County one of the wealthiest counties in the country

University Avenue Silicon Valley CA at $83 per square foot With immediate access to Stanford University and abundant retail amenities University Avenue has been a popular location for start-up companies and professional services firms the most notable being Facebook Inc

Pennsylvania Avenue Washington DC at $80 per square foot Known as Americas Main Street Pennsylvania Avenue is home to dozens of law firms and government affairs lobbying outfits that crave proximity to Washingtons two main points of power the White House to the west and the Capitol to the east

Its not surprising to see such high rents on these streets said Sikaitis In recent months we have started to see demand pick up and spread into other parts of the office market In most of the top five markets we have seen rent growth surpass 20 per year due to heightened levels of demand and limited supply options Across the 40 markets analyzed in the study rents on the most expensive streets exceed the market average by 498



Brooklyn Federal Falls Below $1Share in Advance of CRE Loan Selloff Brooklyn Federal Bancorp Inc received a letter from Nasdaq notifying it that it no longer meets the listing requirements for minimum bid price The bank holding companys common stock has traded below $1 per share for 30 consecutive business days The Brooklyn NY-based said it intends to actively monitor the bid price of its common stock and will consider available options to resolve the deficiency and regain compliance with the Nasdaq requirements However the company is also a party to a definitive merger agreement under which it would merge with Investors Bancorp Inc in the fourth quarter of 2011 That deal values Brooklyn Federal at 80 cents a share Investors Bancorp in Short Hills NJ entered into a separate agreement with a real estate investment fund to sell most of Brooklyn Federal Bancorp Incs commercial real estate loan portfolio immediately following the completion of the merger Brooklyn Federal is parent company of Brooklyn Federal Savings Bank with $470 million in assets of which about $211 million in commercial real estate related loans as of June 30


Agree Realty Finding Signs of Life After Borders Agree Realty Corp is finding there is life for properties that once housed Borders book stores For starters the company has two former Borders properties under contracts to sell for an aggregate sales price of $46 million In addition the lease for Agree Realty Corps Borders property in Columbia MD has been assigned by Borders to Books-A-Million Inc in an agreement approved by the bankruptcy court A Books-A-Million store is expected to be opened at the property after the completion of the Columbia Borders store closing sale The property is subject to non-recourse debt of the company which is currently in default A former Borders store in Wichita KS has been leased to Natural Grocers by Vitamin Cottage The tenant has waived lease contingencies and rental is anticipated to commence at the start of the new year The company has taken assignment from Borders of certain subleases previously entered into by Borders at the Boynton Beach FL and Indianapolis IN locations The aggregate increased annual cash rental income being received by the company pursuant to assignment of these two subleases is approximately $392000 A former Borders property in Lawrence KS is subject to a loan secured by a leasehold interest in the property The company owns fee simple title to the property and leases the property to a subsidiary which defaulted in payments under the loan to the third-party lender and payments to the company under the lease The company anticipates execution of a release agreement in lieu of the company foreclosing on the leasehold lender and then having fee simple title to the property without encumbrance The company anticipates finalizing the agreement by the end of the third quarter and will then commence marketing the property for reuse The company continues to negotiate with its other non-recourse lenders regarding defaults Such negotiations are anticipated to continue into the fourth quarter of 2011 The company continues to market its remaining former Borders assets for both sale and lease


Mens Wearhouse Set for New Round of Expansion Driven by strong same-store sales growth The Mens Wearhouse is suiting up for a new round of expansion


The Houston-based mens clothing store saw its same-store sales growth rate at our core traditional Mens Wearhouse stores jump to 109 this past quarter which compared to the prior year quarter growth rate of 27 In light of our positive results over the last two years weve re-assessed our domestic store penetration and now believe an expansion of our traditional Mens Wearhouse store base by approximately 18 from 591 stores to 700 stores is appropriate over the next five years said Douglas Ewert CEO and president of the firm in an earnings conference call this past week In the process The Mens Wearhouse will continue to downsize its mall-based Mens Wearhouse and tux stores and are targeting a store base of 300 within five years That would be down from 388 as of the end of 2010 That decision which has been in process for the last several years has led to a higher recapture rate of a close store rental volume and equally important driving that traffic to a more fully retail inventory store has and is expected to continue to create opportunity for comp sales expansion Ewert said I would tell you that our thinking on our store count has evolved Ewert added There are a number of things going on One obviously were driving considerably more rental business in each one of our locations in recent years than in previous years Also as our retail business is recovering nicely from the recession it gives us increased opportunities for retail expansion


SuperValu Siphons Off 107 Fuel Centers SuperValu Inc sold 107 fuel centers in the Midwest Intermountain West and West Coast regions following the acceptance of four separate bids to purchase the centers The transactions include the majority of fuel centers within the Albertsons Cub Foods Hornbachers and Jewel-Osco banners The transactions expected to be finalized this fall will allow SuperValu to monetize non-core assets The transactions also include partnership opportunities that will result in SuperValu continuing to have the ability to offer fuel rewards programs to its customers through these existing fuel centers and in most markets through an expanded network of fuel centers As we execute on our strategic plan we are continually reviewing all areas of our business to identify opportunities to strengthen our market position reduce costs or generate capital that can be reinvested into the business said Pete Van Helden executive vice president retail operations These transactions help us further execute on our transformation plan while also creating an opportunity for us to partner with major fuel retailers to bring broader fuel rewards programs to our customers Specific transaction details are as follows

Tesoro will purchase 51 Albertsons fuel centers in California Nevada Oregon Utah Washington Wyoming and Idaho

Couche-TardCircle K will purchase 27 Jewel-Osco fuel centers primarily in the Chicagoland area

Holiday Stationstores will purchase 15 fuel centers ndash eight from Cub Foods in Minnesota two from Hornbachers in North Dakota and five from Albertsons in Montana

Stinker will purchase 14 Albertsons fuel centers in Southern Idaho SuperValu currently operates a total of 134 fuel centers across its operations The company will continue to operate 27 fuel centers not involved in these transactions while continuing to seek potential buyers moving forward



Amassing a Retail Footprint on Times Square A joint venture of SL Green Realty Corp and Jeff Sutton entered into a 70-year leasehold at New York Citys 1560 Broadway after previously acquiring the fee interest in the adjacent building at 1552 Broadway for $13655 million The transactions enable the joint venture to assemble up to 48897 square feet of space with direct Times Square frontage - space that the joint venture intends to combine upgrade and reposition as prime retail space in the nations most famous commercial hub The result of the repositioning will be one of the largest and most visible retail availabilities in Times Square an area with more than 40 million visitors per year These transactions are the latest in a series of significant transactions jointly executed by SL Green and retail investoroperator Jeff Sutton Previous collaborations have included the American Eagle and Aeropostale flagships in Times Square and the Armani and Dolce amp Gabbana stores at 717 Fifth among others


Upcoming Corporate Downsizings amp Facility Closures

Company Address Closure or Layoff

Leased or Owned

No Impacted Impact Date

CoStar Prop ID

Lowes Home Centers

1201 East Main St Meriden CT Closure Leased 91 10142011 7076166

Settlement Funding

3301 Quantum Blvd 2nd Floor Boynton Beach FL Unknown Leased 155 immediately 651006

Space Gateway Support

1980 N Atlantic Ave Suite 330 Cocoa Beach FL Unknown Leased 328 9302011 378402

Bank of America 1425 NW 62nd St Ft Lauderdale FL Unknown 59 1312012

Albertsons 2323 Northwest 13th St Gainesville FL Closure Leased 88 10192011 1165781

SuperValu Logistics

3049 N US 441 Lake City FL Unknown Leased 140 9182011 8066618

Boston Scientific Corp 8600 NW 41st St Miami FL Unknown Owned 52 1142011 356622

Doctor Diabetic Supply

89 NE 27th St 101 NW 24th St Miami FL Unknown Leased 88 1112011

368451 786699

Spectrum Brands 3633 S Flamingo Road Miramar FL Unknown Leased 94 immediately 4343465

Albertsons 16880 New US 441 West Mount Dora FL Closure 76 10192011 6732148

Lake-Sumter Emergency Medical Services

2761 W US Old Highway 441 Mount Dora FL Unknown Leased 278 10142011 1174189

Kmart Store 4390 1801 S Semoran Blvd Orlando FL Closure Leased 91 11202011 1180059

Albertsons 8411 N Dale Mabry Hwy Tampa FL Closure Leased 78 10192011 386585

Verizon Wireless 5701 E Hillsborough Ave Tampa FL Unknown Leased 77 1012011 390358

Esoterix Genetics Laboratory

12906 Tampa Oaks Blvd Suite 300 Temple Terrance FL Unknown Leased 56 11302011 570017

United Space Alliance

1102 John Glenn Blvd Titusville FL Unknown Owned 139 10282011 792756





Leased or Owned


CoStar Prop ID

Ficosa North America 917 Liechty Road Berne IN Layoff 175 11142011

Lockheed Martin Corp

5101 Decatur Blvd Suite A Indianapolis IN

Relocation Closure Leased 47 10162011 74953

BP Solar 630 Solarex Court Frederick MD Layoff Owned 58 10182011

132463 637712 6990557

DPI Specialty Foods

1100 Mercantile Lane Suite 100 Largo MD Layoff Leased 89 9292011 143809

Legg Mason 11155 Red Run Blvd Owings Mills MD Layoff Leased 35 112012 139087

Jim Beam Brands Co (Beam Global Spirits)

7324 Paddock Road Cincinnati OH Closure Owned 159 10282011 484784

Ansell Protective Products

1300 Walnut St Coshocton OH Closure 55 11232011

ConAgra Foods 3333 Harding Highway East Bldg 207-4 Marion OH Closure Leased 37 10292011 No PID

Pilgrims Pride 2411 Ferris St Dallas TX Closure 254 9302011

Pilgrims Pride 2300 Hickory St Dallas TX Closure Owned 254 9302011 421291

Sears Holdings Corp - Product Rebuild Center

3845 Grader St Suite A Garland TX Closure Leased 59 9262011 41783

HealthSouth Hospital of Houston

17506 Red Oak Drive Houston TX Closure Owned 161 immediately 8166107

Comerica Inc 2900 2950 North Loop West Houston TX Layoff Leased 150 1012011

234926 236286

BlueScope Buildings NA (dba Butler Manufacturing)

2301 I H 35 North San Marcos TX Layoff 64 10242011

Carrier Corp 1700 E Duncan St Tyler TX Relocation Closure Leased 147 9162011 7057271

CH2MHill Plateau Remediation Co

2345 Stevens Drive Suite 240 Richland WA Layoff Leased 750 9292011 6535179

Materials amp Energy Corp

2025 Battelle Blvd Richland WA Layoff 141 9292011 6212550

Kmart 6606 N Division St Spokane WA Closure Owned 68 1162011 1164487

Automated Building Components 1111 8th St Chetek WI Closure 106 1012011

GampK Services 17044 West Victor Road New Berlin WI Closure Leased 30 10192011 1317813


Loans and Properties Under Surveillance

Watch List Large Multifamily Loans 90 Days or More Past Due The following information for these lead listings was provided by Trepp LLC an industry leader in providing surveillance data on loan and commercial real estate performance underlying the CMBS market

Property Address Current Bal Maturity Date CMBS Special Servicer

Riverton Apartments

2171-2200 Madison Ave 2225-2265 5th Ave 10 E 138th St 45 E135th St New York NY $225000000 1112012 Citi 2007-CD4

CWCapital Asset Management

Georgian Towers

8750 Georgia Ave Silver Spring MD $185000000 3102012 COMM - 2007-C9 Helios AMC

Georgian Towers

8750 Georgia Ave Silver Spring MD $58000000 3152012

Deutsche 2007-CD5 LNR Partners

The Renaissance

100 John St New York NY $84000000 5152012 Wach 2007-C33 LNR Partners

Creekside Apartments

2500 Knights Road Bensalem PA $67553967 8152015 JPM 2005-LDP4 JE Robert

Empirian Chesapeake

150 Coveside Lane Chesapeake VA $63000000 1102017 COMM - 2006-C8 LNR Partners

Towers at University Town Center

6515 Belcrest Road Hyattsville MD $54459088 5122017 ML-CFC 2007-8 LNR Partners

Westshore Cove 4003 S Westshore Blvd Tampa FL $50000000 6152012 LB 2007-C3 LNR Partners

Empirian at Northridge

501 Northridge Road Atlanta GA $43200000 10102015 GE 2005-C4

Midland Loan Services



Cabrillo Palisades

7901 Harmarsh St San Diego CA $41666164 2152013 Wach 2005-C17


Empirian Park Row Apartments

15335 Park Row Houston TX $38600000 7102016 BofA 2006-4 LNR Partners

Empirian at Steele Park

411 E Indian School Road Phoenix AZ $38500000 12152015


Alliance SAFD - HC4 - The Cascades

1400 Village Boulevard West Palm Beach FL $38457189 11152016 CS 2007-C2

Torchlight Loan Services

Monteverde Apartments

3601 E McDowell Road Phoenix AZ $37600000 1152016 Wach 2006-C23


The Centennial Ridge Apartments

100 Calibre Creek Parkway Roswell GA $37014241 3122012 ML 2005-MKB2


Readers Are Hooked on Watch List Ads Watch List readers not only love the newsletter for its commercial real estate news and insights they also connect with its advertisers The ads in the Watch List newsletter generate more click thrus on average than the news stories Watch List ads are generating more than 1000 click thrus per ad per week on average The advertisements also average more readers than most of the news stories Why

bull The Watch List audience of senior-level professionals is considered the gold standard in the industry and its readers are the primary contacts for deals

bull The newsletter enables the commercial real estate industry to track leads and make connections bull The newsletter is widely respected as the most insightful and useful news in this important market

As you consider your marketing needs start including the weekly Watch List Newsletter in your decision-making Advertising in the newsletter and email is ideal for

bull Promoting Properties for Sale bull Promoting Property Services bull Reaching a National Audience bull Generating Leads bull Driving People to Your Website bull Ensuring Constant Awareness of Your Services and Offerings

Contact me for more information Mark Heschmeyer

To sell your commercial real estate or note portfolio contact salesauctioncomAll properties and notes will be auctioned individuallyAuctioncom LLC (fka Real Estate Disposition LLC) 1 Mauchly Irvine CA 92618 CA Auctioncom RE Brkr 01093886 Auction Company SB 0475258 Mark Buleziuk SB 0418863 Michael E Carr SB 0447257 TX Auctioncom RE Brkr 0580708 Auctioneer Mark Buleziuk 16063 Michael E Carr 16354 IL Auctioncom RE Brkr 478012986 City of Chicago Auctioneer Mark Buleziuk 1717389 Michael E Carr 1845772 IN RE Brkr RC51100011 Auction Firm AC 31100002 Auctioneer Michael E Carr AU10800046 Mark P Buleziuk AU10900036

FREE AUCTIONCOM IPAD APP Easily find and map properties near you Download it today

The Nationrsquos Leading Real Estate Auctioneer and Loan Sale Advisor

wwwauctioncomCRE

NON-PERFORMING NOTE amp COMMERCIAL REO AUCTION BID ONLINE SEPTEMBER 26 ndash 27

$100 MILLION IN NON-PERFORMING NOTES amp COMMERCIAL REO PROPERTIES IN 17 STATES

Industrial Property Richmond VAStarting Bid $1500000Size 302081 SFType Industrial

HotelRichmond VAStarting Bid $1700000Current Balance $29500000Status Non-PerformingSize 372 KEYS

FEATURED COMMERCIAL REAL ESTATE FEATURED NOTE

$2+ BILLION SOUTHEAST AUCTIONS BID ONLINE SEPTEMBER 19 ndash OCTOBER 6

Northgate Mall Chattanooga TNStarting Bid $9000000Size 380393 SF OwnedType Retail

Multi-Family PropertyJacksonville FLStarting Bid $3000000Current Balance $16485408Status Non-PerformingSize 288 Units

Office Properties - 4 Bldgs Columbus OHStarting Bid $2500000Current Balance $11459950Status Non-PerformingSize 118817 SF

Office PropertyCharlotte NCStarting Bid $2500000Size 186822 SFType Office

175+ NON-PERFORMING NOTESSECURED BY COMMERCIAL REAL ESTATE

165+ COMMERCIAL REAL ESTATE PROPERTIES MUST BE SOLDFEATURED COMMERCIAL REAL ESTATE FEATURED NOTES

CLICK HERE to View Complete list of notes and Commercial REO Properties

Finderrsquos Fee Brokers representing winning bidders for select Notes (Mortgage Loans) offered will be eligible for a Finderrsquos Fee paid by the Seller

Broker Co-Op Brokers representing winning bidders on select Commercial Properties will be eligible for a commission split paid by the Seller Fees do not negatively impact bidding

FINDERSFEE ampBROKER CO-OP


















CCRSI INDEX RESULTS











































Leased or Owned


CoStar Prop ID

Lowes Home Centers


Settlement Funding






SuperValu Logistics





368451 786699
















Leased or Owned


CoStar Prop ID






132463 637712 6990557

DPI Specialty Foods















234926 236286















Riverton Apartments



Georgian Towers


Georgian Towers



The Renaissance




Empirian Chesapeake










Cabrillo Palisades








































CCRSI INDEX RESULTS











































Leased or Owned


CoStar Prop ID

Lowes Home Centers


Settlement Funding






SuperValu Logistics





368451 786699
















Leased or Owned


CoStar Prop ID






132463 637712 6990557

DPI Specialty Foods















234926 236286















Riverton Apartments



Georgian Towers


Georgian Towers



The Renaissance




Empirian Chesapeake










Cabrillo Palisades




























































Leased or Owned


CoStar Prop ID

Lowes Home Centers


Settlement Funding






SuperValu Logistics





368451 786699
















Leased or Owned


CoStar Prop ID






132463 637712 6990557

DPI Specialty Foods















234926 236286















Riverton Apartments



Georgian Towers


Georgian Towers



The Renaissance




Empirian Chesapeake










Cabrillo Palisades

























Leased or Owned


CoStar Prop ID






132463 637712 6990557

DPI Specialty Foods















234926 236286















Riverton Apartments



Georgian Towers


Georgian Towers



The Renaissance




Empirian Chesapeake










Cabrillo Palisades



























Riverton Apartments



Georgian Towers


Georgian Towers



The Renaissance




Empirian Chesapeake










Cabrillo Palisades

























Cabrillo Palisades























defending mreits: a cavalry of silver-haired retirees sell your commercial real estate or note...

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