HOUSTON — CB Richard Ellis (CBRE) has arranged a lease renewal on behalf of apparel retailer Marshalls in Houston. The company renewed its lease for 27,000 square feet at The Commons at Willowbrook, a shopping center located at 7700 FM 1960 West in Houston. Matt Keener and Alex Makris of CBRE represented the landlord, The Commons at Willowbrook, Inc. Terms of the lease were not disclosed.
For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
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Ed A. Ayres
Houston Realty Advisors, Inc.
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Friday, September 4, 2009
Thursday, September 3, 2009
Wells Fargo Top Servicer of Commercial Mortgages
Wells Fargo Bank is by far the most active servicer of commercial mortgages, according to a survey by the Mortgage Bankers Association. The bank serviced, as primary and master servicer, a total of 42,829 loans with a balance of $476.2 billion at mid-year. Its portfolio is some 54 percent greater than that of PNC Real Estate, which has the second largest servicing portfolio, at $308.5 billion of mortgages. Capmark Finance Inc., meanwhile, has the third-largest servicing portfolio, with $248.7 billion. At the end of last year, Wells' portfolio placed it in a distant fourth place in a similar MBA ranking. But its acquisition of Wachovia Bank catapulted it to the top of the ranks. A direct comparison to previous periods cannot be made because of reporting nuances by servicers. But the MBA servicer ranking, which is based on a survey, is the best available gauge of servicer activity. The bulk of Wells' servicing portfolio is comprised of loans it handles on behalf of securitized trusts. In fact, nearly 84 percent of the loans it services are owned by CMBS, collateralized debt obligations or other asset-backed issues. That's a far greater proportion than most of its competitors, such as Midland (46.4 percent) and Capmark (52.7 percent), which also are very active servicers of agency loans, by virtue of their affiliation with agency lenders, banks or insurance companies. Midland, meanwhile, led all servicers of loans provided on behalf of Fannie Mae and Freddie Mac. That's no surprise, given that it is affiliated with Red Mortgage Capital, the most active lender under Fannie's Delegated Underwriting and Servicing program, as well as PNC ARCS, which had perennially ranked among the most active DUS lenders. Indeed, last year, PNC Real Estate was the top Fannie lender, with $5.6 billion of volume, up from $1.7 billion a year earlier. Gemsa Loan Services led a ranking of servicers for life insurance company-held loans. It services 2,458 loans totaling $40.3 billion. Behind it was Prudential Asset Resources, with 2,302 loans totaling $26.85 billion, and PNC Real Estate, with 1,621 loans totaling $26.28 billion. LNR Partners Inc. remained atop a ranking of named special servicers of securitized mortgages. But what previously had been a virtually insurmountable lead has been whittled away. It is named special servicer for 15,223 loans with a balance of $195.1 billion. CWCapital, meanwhile, was second with 13,387 loans totaling $170.1 billion and Centerline Servicing Inc. was third with 12,270 loans totaling $112.9 billion. CRE NEWS
For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
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Houston Realty Advisors, Inc.
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For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf
Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.
Mitaquye oyasin
Friday, August 28, 2009
Hartman back on a buying spree
Houston-based Hartman Income REIT has purchased two office buildings located in Houston. They include Northchase Center, a 128,891-square-foot property located at 14550 Torrey Chase Blvd., and Cornerstone Plaza, a 71,008-square-foot property located at 3707 FM 1960 West. The two properties are situated within a mile of each other and have an average occupancy of 92.5 percent. Mark Lucescu of Newport Beach, Calif.-based Lucescu Realty represented the seller, KBS Realty Advisors. Dave Wheeler represented Hartman in-house. The acquisition price was not disclosed.
For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf
Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.
Mitaquye oyasin
For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf
Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.
Mitaquye oyasin
Thursday, August 27, 2009
Mixed Signals: Nonresidential Construction Forecasts See Little Improvement Near-Term
COSTAR SAYS: While signs of a tentative recovery in the economy continued to appear, including reports issued this week on the fourth-consecutive month of improving new-home sales in July and a sizable increase in durable goods orders by manufacturers' orders also for July reported by the Commerce Dept., it is also clear that investors will be grappling with the fallout from the near-collapse of the U.S. economy for some time to come. This past week, three separate news items reflect the degree that investors and corporations are struggling with commercial real estate valuations and how the rules for assigning that value already are changing.
· A new survey from Jones Lang LaSalle and CoreNet Global survey finds virtually all corporate real estate executives are unprepared for proposed FASB/IASB lease accounting changes that could occur in less than two years.
· The Investment Committee of the Board of Trustees of Teachers Insurance and Annuity Association of America has approved a modification to the investment guidelines of the TIAA Real Estate Account effective Nov. 1, 2009.
· The California Public Employees' Retirement System has submitted for investment board approval a new accounting policy that imposes fair value on all aspects of its real estate portfolio.
The items are all unrelated except for the fact that each has come about as a direct result of events leading up to the recession and subsequent collapse of CRE property values. Lease Accounting Changes - a Stealth Issue Let's start with the Jones Lang LaSalle/CoreNet survey because the lease accounting changes it addresses will affect every size and type of business in the U.S. The recent survey of U.S. corporate real estate (CRE) executives found that a large majority is substantially unprepared for a proposed major change in national and international accounting treatment of real estate lease obligations. The proposed changes are designed to standardize the treatment of leases as financial obligations (much like a mortgage payment) as opposed to an operating expense. The changes are intended to improve the transparency, credibility and usefulness of lease accounting. Under new standards presented on a preliminary basis by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) slated to be issued in 2011, all leases of real estate and equipment will have to be capitalized on a reporting entity's balance sheet. The changes will affect both the entity renting the property and the owner collecting rent payments. "Whether a firm is public or private, this change would impact literally every item a corporation leases -- not just real estate," said Mindy Berman, managing director of Jones Lang LaSalle's Corporate Capital Markets practice. "Everything from computers to trucks, an ATM kiosk to a floor in an office tower, would have to be capitalized on a balance sheet." Berman said lease accounting has been a stealth issue in light of more immediately pressing business matters in the current economic environment and other major accounting changes made recently. The Securities and Exchange Commission estimated in 2005 that U.S. public companies will be forced to capitalize approximately $1.3 trillion in operating leases under the new rules. Industry experts estimate that approximately 70 percent of all operating leases are for real estate, impacting balance sheets by $1 trillion or more. According to the World Leasing Yearbook 2009, total annual leasing volume in 2007 amounted to $760 billion; yet many of those lease contracts do not appear in an entity's balance sheet. According the Jones Lang LaSalle/CoreNet survey:
· 90% of respondents noted that 95% or more of their company's real estate leases are currently structured as operating leases-responses which cut across all business sectors and everything from small to large lease portfolios.
· 83% of respondents indicated the proposed changes would cause a significant (19%) or major burden (64%) on their company's administrative requirements.
· More than a third of those surveyed (39%) agree or strongly agree that the increase in lease-related expenses on their income statements will result in a meaningful detriment to earnings.
The proposed accounting changes are still in the public comment stage and are subject to change before being adopted. Stymied by Limits, TIAA To Increase Debt Ratios; Refinance Portfolio The Investment Committee of the Board of Trustees of Teachers Insurance and Annuity Association of America recently approved a proposed modification to the investment guidelines of the TIAA Real Estate Account effective Nov. 1, 2009. The modification stems is intended to address the rapidly declining value of real estate property values in the pension fund investment firm's portfolio and the unchanging amount of debt on those properties. TIAA Real Estate's current investment guidelines prevent it from incurring debt beyond a 30% debt to equity ratio. As of Aug. 18, 2009, the aggregate principal amount of the account's outstanding debt was approximately $4 billion and the account's debt to equity ratio was approximately 42.5%. The account's loan to value ratio was approximately 31.3%. As of June 30, TIAA Real Estate Account owned $10.6 billion in real estate properties and interests in joint ventures. As a result, the account has not been able to incur or refinance any debt on its properties since the fourth quarter of 2008, due to the recent decline in the value of the account's real property investments. Under the new investment guidelines the account will maintain outstanding debt in a total amount not to exceed the current $4 billion level. The change will give the account the ability to refinance its debt and/or extend maturity dates. Over the course of the next two years, though, TIAA wants to whittle down its debt-to-equity and loan-to-value ratios to less than 30% -- a process that could likely involve the sale of some assets. Fair Market Value Accounting The third news item concerns The California Public Employees' Retirement System (CalPERS), which is expected to approve a new accounting policy that imposes fair market value accounting policies on all aspects of its $20 billion real estate portfolio. Fair market value accounting's central principle is that an asset must be valued at its current price if sold today into an orderly market. The policy would be effective immediately upon adoption and would supersede all previous CalPERS real estate appraisal policies. The objective of the policy change would be to provide an opinion of market value for the real estate assets and CalPERS ownership interests on an annual basis or in conjunction with the consolidation, termination or transfer of real estate interests. And, to calculate and report time-weighted returns accurately for the CalPERS real estate portfolio at the portfolio, sector and individual partnership level. Some key revisions for the appraisal and valuation policies include an allowance for:
· More frequent appraisals, if deemed to be in the best interest of CalPERS
· Fair market value dispute resolution procedures to be coordinated by the Investment Office
· Emphasis on the importance of providing transparency for investors, the CalPERS Board, and other stakeholders.
At the same time, the revisions give CalPERS the right to exempt some real estate assets, if deemed to be in the best interest of CalPERS. CalPERS did not detail what impact the changes will have on its current portfolio. For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf
Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.
Mitaquye oyasin
· A new survey from Jones Lang LaSalle and CoreNet Global survey finds virtually all corporate real estate executives are unprepared for proposed FASB/IASB lease accounting changes that could occur in less than two years.
· The Investment Committee of the Board of Trustees of Teachers Insurance and Annuity Association of America has approved a modification to the investment guidelines of the TIAA Real Estate Account effective Nov. 1, 2009.
· The California Public Employees' Retirement System has submitted for investment board approval a new accounting policy that imposes fair value on all aspects of its real estate portfolio.
The items are all unrelated except for the fact that each has come about as a direct result of events leading up to the recession and subsequent collapse of CRE property values. Lease Accounting Changes - a Stealth Issue Let's start with the Jones Lang LaSalle/CoreNet survey because the lease accounting changes it addresses will affect every size and type of business in the U.S. The recent survey of U.S. corporate real estate (CRE) executives found that a large majority is substantially unprepared for a proposed major change in national and international accounting treatment of real estate lease obligations. The proposed changes are designed to standardize the treatment of leases as financial obligations (much like a mortgage payment) as opposed to an operating expense. The changes are intended to improve the transparency, credibility and usefulness of lease accounting. Under new standards presented on a preliminary basis by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) slated to be issued in 2011, all leases of real estate and equipment will have to be capitalized on a reporting entity's balance sheet. The changes will affect both the entity renting the property and the owner collecting rent payments. "Whether a firm is public or private, this change would impact literally every item a corporation leases -- not just real estate," said Mindy Berman, managing director of Jones Lang LaSalle's Corporate Capital Markets practice. "Everything from computers to trucks, an ATM kiosk to a floor in an office tower, would have to be capitalized on a balance sheet." Berman said lease accounting has been a stealth issue in light of more immediately pressing business matters in the current economic environment and other major accounting changes made recently. The Securities and Exchange Commission estimated in 2005 that U.S. public companies will be forced to capitalize approximately $1.3 trillion in operating leases under the new rules. Industry experts estimate that approximately 70 percent of all operating leases are for real estate, impacting balance sheets by $1 trillion or more. According to the World Leasing Yearbook 2009, total annual leasing volume in 2007 amounted to $760 billion; yet many of those lease contracts do not appear in an entity's balance sheet. According the Jones Lang LaSalle/CoreNet survey:
· 90% of respondents noted that 95% or more of their company's real estate leases are currently structured as operating leases-responses which cut across all business sectors and everything from small to large lease portfolios.
· 83% of respondents indicated the proposed changes would cause a significant (19%) or major burden (64%) on their company's administrative requirements.
· More than a third of those surveyed (39%) agree or strongly agree that the increase in lease-related expenses on their income statements will result in a meaningful detriment to earnings.
The proposed accounting changes are still in the public comment stage and are subject to change before being adopted. Stymied by Limits, TIAA To Increase Debt Ratios; Refinance Portfolio The Investment Committee of the Board of Trustees of Teachers Insurance and Annuity Association of America recently approved a proposed modification to the investment guidelines of the TIAA Real Estate Account effective Nov. 1, 2009. The modification stems is intended to address the rapidly declining value of real estate property values in the pension fund investment firm's portfolio and the unchanging amount of debt on those properties. TIAA Real Estate's current investment guidelines prevent it from incurring debt beyond a 30% debt to equity ratio. As of Aug. 18, 2009, the aggregate principal amount of the account's outstanding debt was approximately $4 billion and the account's debt to equity ratio was approximately 42.5%. The account's loan to value ratio was approximately 31.3%. As of June 30, TIAA Real Estate Account owned $10.6 billion in real estate properties and interests in joint ventures. As a result, the account has not been able to incur or refinance any debt on its properties since the fourth quarter of 2008, due to the recent decline in the value of the account's real property investments. Under the new investment guidelines the account will maintain outstanding debt in a total amount not to exceed the current $4 billion level. The change will give the account the ability to refinance its debt and/or extend maturity dates. Over the course of the next two years, though, TIAA wants to whittle down its debt-to-equity and loan-to-value ratios to less than 30% -- a process that could likely involve the sale of some assets. Fair Market Value Accounting The third news item concerns The California Public Employees' Retirement System (CalPERS), which is expected to approve a new accounting policy that imposes fair market value accounting policies on all aspects of its $20 billion real estate portfolio. Fair market value accounting's central principle is that an asset must be valued at its current price if sold today into an orderly market. The policy would be effective immediately upon adoption and would supersede all previous CalPERS real estate appraisal policies. The objective of the policy change would be to provide an opinion of market value for the real estate assets and CalPERS ownership interests on an annual basis or in conjunction with the consolidation, termination or transfer of real estate interests. And, to calculate and report time-weighted returns accurately for the CalPERS real estate portfolio at the portfolio, sector and individual partnership level. Some key revisions for the appraisal and valuation policies include an allowance for:
· More frequent appraisals, if deemed to be in the best interest of CalPERS
· Fair market value dispute resolution procedures to be coordinated by the Investment Office
· Emphasis on the importance of providing transparency for investors, the CalPERS Board, and other stakeholders.
At the same time, the revisions give CalPERS the right to exempt some real estate assets, if deemed to be in the best interest of CalPERS. CalPERS did not detail what impact the changes will have on its current portfolio. For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf
Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.
Mitaquye oyasin
Wednesday, August 19, 2009
New Hotel Sorella Opens in CityCentre @ Town & Counrty Blvd.
Houston-based Midway Cos. has announced the grand opening of the new Hotel Sorella at CITYCENTRE, a $500 million mixed-use project located in Houston. The luxury hotel will feature 244 rooms, including 30 junior suites and a penthouse suite. Hotel amenities include a Moroccan-style bar with a central fireplace and active seating, a fitness center and spa, an outdoor pool with daybeds and draped cabanas, and two restaurants, Cafe Rosé and Bistro Alex. CITYCENTRE comprises 1.8 million square feet of mixed-use space on 37 acres between Interstate 10 West and the Sam Houston Tollway. For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf
Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.
Mitaquye oyasin
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf
Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.
Mitaquye oyasin
Monday, August 17, 2009
Equipchef expand to Houston, Tx,
http://www.rebusinessonline.com/main.cfm?id=17&date=20090811®ion=Texas
HOUSTON REALTY ADVISORS BROKERS INDUSTRIAL LEASE EXPANSION
HOUSTON — Houston Realty Advisors has brokered a 15,575-square-foot industrial lease expansion on behalf of Equipchefs. The Dallas-based company will be expanding into Houston with its new space at 129922 Hempstead Hwy. Ed Ayres of Houston Realty Advisors represented the tenants. The landlord, MPI Properties, was represented by Gregg Barra and David Boyd of Boyd Commercial. Terms of the lease were not disclosed. For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf
Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.
Mitaquye oyasin
HOUSTON REALTY ADVISORS BROKERS INDUSTRIAL LEASE EXPANSION
HOUSTON — Houston Realty Advisors has brokered a 15,575-square-foot industrial lease expansion on behalf of Equipchefs. The Dallas-based company will be expanding into Houston with its new space at 129922 Hempstead Hwy. Ed Ayres of Houston Realty Advisors represented the tenants. The landlord, MPI Properties, was represented by Gregg Barra and David Boyd of Boyd Commercial. Terms of the lease were not disclosed. For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf
Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.
Mitaquye oyasin
Friday, August 7, 2009
Lucky Strikes Comes to Houston, TX. in the Pavilions
www.bowlluckystrike.com
This September will mark the grand opening of the new Lucky Strike Lanes & Lounge at Houston Pavilions, a 700,000-square-foot mixed-use project located in downtown Houston. Lucky Strike is a boutique bowling alley that features bowling lanes with luxury amenities, a bar and lounge area and luxury food service. The 24,886-square-foot Houston location is the company’s 23rd Lucky Strike and its first in Texas. It will feature 14 lanes with premium leather couches, as well as a Luxe premium suite with four private lanes and a separate bar. It will be located at 1001 Fannin St. For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf
Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.
Mitaquye oyasin
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