Foong on Finance: The Apartment Sales Market Slows Down

The apartment investment sales market since the financial market crisis occurred in mid-September has “freezed up” as apartment buyers and sellers face deep uncertainty over the future of the nation’s—indeed, the global—economic condition. According to the results of one study, reported here in the previous issue, apartment sales volume has plunged a whopping 69 percent. Indeed, one broker, Kitty Wallace, senior vice president at Sperry Van Ness, says that in her experience in California, multi-housing transactions have dropped 70 to 80 percent. The severe drop in apartment investment sales volume generally is attributed to a combination of negative sentiment and…

CMR Closes $25.5M Debtor-in-Possession Financing for High-Rise Mixed-Use Property

By Keat Foong, Executive Editor Las Vegas—The CMR Commercial Mortgage Fund has provided $25.5 million in a debtor-in-possession bridge loan to Nevada Towers LLC to refinance a first deed of trust on the property, slated to undergo a conversion into a mixed-use development. Nevada Towers holds entitlements to convert the property from a 200-unit apartment complex into a high-rise mixed-use project consisting of hotel, residential and retail space, along with limited gaming space and parking.“It’s unusual that a $25 million loan goes from approval to close in 13 business days and we are proud to have executed a transaction of…

Tarragon Sells Florida, South Carolina Properties for $156M

By Keat Foong, Executive EditorNew York—Tarragon Corp. has sold its interest in six properties in Florida and South Carolina for $156 million. The properties were sold to Northland Investment Corp. which assumed, extended and modified $108 million in existing financing from Barclays Capital Real Estate to finance the purchase, according to Tarragon. Tarragon says it is continuing to guarantee repayment of about 10 percent of the loan. Tarragon has been retained to manage all six properties on behalf of the Northland entities and may share in future profits from the sale and operation of the properties.“I am immensely pleased and…

Grubb & Ellis Forecasts Fewer Real Estate Deals in 2008

By Keat Foong, Executive EditorSanta Ana. Calif.— Grubb & Ellis Co. predicts that transaction volume for commercial real estate will decline by as much as 25 basis points this year. The company says in a statement that “buyers should return to the investment market in greater numbers this year as all-cash and low-leverage buyers including institutions, REITs and foreign investors step up with purchases.” All the same, transaction volume is expected to fall short of the 2007 record, the company predicts.“Even in the absence of a recession, the U.S. economy is likely to expand at a sluggish pace,” says Robert…

Hebrew SeniorLife Completes $457M in Tax-Exempt Bond Financing—Largest in History for Nonprofit CCRC

By Keat Foong, Executive EditorDedham, Mass.—Hebrew SeniorLife announced it has closed on the biggest tax-exempt bond issue in U.S. history for the development of a non-profit continuing care retirement community (CCRC). The $457 million in tax-exempt bonds will be used to fund the development of NewBridge on the Charles, a state-of-the-art CCRC located on the 162-acre Dr. Miriam and Sheldon G. Adelson Campus in Dedham, Mass. “This financing will help us bring to reality a unique new community and health care facility that will expand our ability to serve older adults in the Boston area,” says Len Fishman, president and…