Counsel Corp Sells $140M Portfolio

Counsel Corporation, a private equity investor and alternative asset manager, completed the sale of a real estate portfolio to Retrocom Mid-Market Real Estate Investment Trust for $140 million according to a Canadian Business article. The portfolio includes 7 commercial retail properties with over 800,000 square feet in Ontario and New Brunswick. Retrocom, which has hired Counsel to manage the properties, assumed the $60.3 million of mortgage debt on the properties.

Allan Silber, Chairman & CEO of Counsel said, "The sale of the Portfolio is consistent with our mandate to acquire, redevelop and improve quality real estate product for the investor marketplace. Since 2006 we have been acquiring and adding value to a select set of real estate assets that meet our investment criteria, for our account and on behalf of our partners." Mr. Silber continued, "We believe we have created significant value in the Portfolio by executing on our proactive asset management strategy and that current market conditions provide an opportune time to realize on this value creation. Counsel will continue to seek out new and compelling opportunities to build on our successful real estate track record."

For more news and information visit Blumberg Capital Partners.

New Wishard Project Gets Developers

Duke Realty and Browning Investments have been selected by the Health and Hospital Corporation of Marion County to develop a new office building for the New Wishard Project in Indianapolis according to the Indianapolis Business Journal. The new faculty building will be constructed in a 200,000 square foot lot adjacent to the new Wishard Hospital which is currently under construction near the campus of IUPUI.

The $754 million New Wishard project includes a 327-bed inpatient hospital and is scheduled for completion at the end of 2013. Wishard project leaders registered the 1.2 million sq. ft. campus to achieve United States Green Building Council (USGBC) Leadership in Energy and Environmental Design (LEED) Silver certification that will make it the first newly built hospital in Indiana and one of 10 in America certified LEED Silver or higher.

"To be selected to develop part of The New Wishard campus provides Duke Realty with yet another opportunity to demonstrate our support of this community and to provide a quality facility that will enhance the health of residents through our expertise in health care development," said Denny Oklak, Chief Executive Officer of Duke Realty. "We are proud to be involved in the development of The New Wishard campus," added Michael Browning, President, Browning Investments. "Our experience will aid us in ensuring that Wishard receives a facility that enables them to succeed in their mission."

For more news and information visit Blumberg Capital Partners.

FDIC Sells $1.22B in Portfolios

The Federal Deposit Insurance Corporation (FDIC) closed on the sale of a series of loan portfolios late this month from banks that failed over the past 20 months according to a CoStar report.

In one transaction, FDIC sold 40% equity interest in a newly formed LLC to hold assets with an unpaid principal balance of approximately $204 million to ColFin Milestone North Funding, LLC. A similar deal was finalized with Milestone Co-Investment Partners, L.P. for 40% equity in the FDIC Multibank CRE Venture Loan and REO Structured Transaction which holds assets with an unpaid principal balance of approximately $137 million. Additionally, the the Western Residential Acquisition and Development pool, with roughly $279 million in assets, saw 40% sold to Cache Valley Bank of Logan, Utah. In each deal FDIC will retain 60% equity interest in the LLCs and share in returns on the assets.

For more news and information visit Blumberg Capital Partners.

GE Capital Selling Mexico Assets to Grupo Santander

Last week the financial company Grupo Financiero Santander agreed to purchase GE Capital's $2 billion mortgage business in Mexico according to a BusinessWeek article. Santander will acquire the business for $162 million plus the assumption of debt in a deal that's expected to close next year. GE Capital Chief Executive Officer Mark Begor said the sale is in conformity with the company's plan to exit non-core businesses.

Santander had about 34 billion pesos in home loans at the end of October, putting it fifth in Mexico behind BBVA Bancomer SA, Grupo Financiero Banorte SAB, Citigroup Inc.’s Banamex unit and Bank of Nova Scotia, according to government data. "There's some well-known pieces of GE Capital that will be disposition candidates or run-off candidates," said Jeff Immelt, GE's Chairman and chief executive, at an investor meeting this month.

For more news and information visit Blumberg Capital Partners.

Credit Suisse Selling $2.8B Portfolio to Apollo

In one of the largest bank sales of distressed loans since the 2008 financial crisis Credit Suisse is selling a portfolio of distressed commercial real estate loans valued at $2.8 billion to Apollo Management for $1.2 billion according to the Wall Street Journal. Credit Suisse has agreed to provide Apollo with debt financing for the deal, a portfiolio that includes apartment buildings in Germany and hotels in Denmark, Sweden and France. Neither company has yet commented on the deal publicly.

The report said that signs of a stabilising real-estate market and demand for distressed assets from private-equity funds have pushed up prices that buyers are willing to pay. "We're starting to see loans in the marketplace at more realistic prices," said Paul Fuhrman, an executive at private-equity firm Colony Capital, which has been buying distressed-loan portfolios. "We are definitely seeing the banks loosen up."

In the beginning of October, Credit Suisse had said it was confident to meet Swiss Expert Commission's requirements and said it had been preparing for the tightening of regulation for the past two years by reducing its risk-weighted assets and strengthening its capital base according to Stock Markets Review.

For more news and information visit Blumberg Capital Partners.

MBA Report Shows CRE Market Strengthening With Economy

The Mortgage Bankers Association (MBA) released its Commercial Real Estate/Multifamily Finance Quarterly Data Book for Q3 this week showing some grown in the markets as the economy begins to rebound with sales up 122% in the year to date. While mortgage delinquencies were mixed, property sales and originations volumes picked up with marginal declines in vacancy rates and a firming of asking rents. An excerpt from the report:

"Conditions in the commercial real estate industry were mixed during the reporting period. Several Districts reported flat demand and high vacancy rates, which translated into limited nonresidential construction activity. The New York, Atlanta, and Kansas City Districts noted some weakening in nonresidential activity, while the Boston and Dallas Districts indicated some modest improvement in commercial real estate. Reports from Cleveland and Chicago noted that most new projects fell generally into the infrastructure category. Contacts in Boston, Richmond, Kansas City, and Dallas expressed some optimism about the near-term outlook in their Districts, but contacts in several other Districts expressed a more cautious outlook."

For more news and information visit Blumberg Capital Partners.

Miami Tower Sold for $106M

The Miami Tower, a landmark property of the Miami skyline, traded hands last Friday for $106 million as Blue Capital US East Coast Properties sold the building to I&G Miami, Inc. Designed by I.M. Pei and built in 1987, the 600,000 square foot building is currently 80% leased with tenants including Carlton Fields, UBS Financial Services, law firm Boies Schiller & Flexner, Vector Group, and law firm Buchanan Ingersoll & Rooney. The transaction ranks as the highest-valued real estate trade in the Miami market this year according to The Miami Herald.

"In the end, this is a classic example of a quality asset attracting a quality institutional owner," said Manny de Zarraga of Holliday Fenoglio Fowler, which represented the seller. "This trade is a big boost for the Miami real estate market and we expect a spark of momentum will stem from this sale heading into 2011."

"It's a good sign that somebody believes long-term in the Miami market," said Jay Caplin, managing principal of Steelbridge Capital in Miami, which sells and manages office properties. "The market has been largely stagnant."

For more news and information visit Blumberg Capital Partners.