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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 WEEK'S ISSUE:

Excess Federal Property a Game Changer for Commercial Real Estate .......................................................................................... 1 Investors Jump Back Into Rebounding Hotel Market ......................................................................................................................... 4 Dreaded Double-Dip in Home Prices Confirmed ............................................................................................................................... 7 Multifamily REITs Gaining Ground at Homebuilders' Expense .......................................................................................................... 7 McClatchy Sells Miami Waterfront for $236 Mil. ................................................................................................................................ 8 Real Estate Coming Out of Back Offices in M&A Decisions ............................................................................................................ 10 Infrastructure 2011: U.S. Cities Strain to Maintain Assets as Federal Funding Declines ................................................................ 10 Limit Approaching to How Much Repair of Balance Sheets Can Boost Bank Earnings .................................................................. 11 Low Bank Prices Prompts East Texas Financial To Spin Off Bad Residential Assets, Pursue More CRE Lending ........................ 12 Columbia State Bank Buys Second Failed Institution in Two Weeks .............................................................................................. 12 Syms Puts Itself Up For Sale ........................................................................................................................................................... 13 A&P Completes Auction of 25 Superfresh Stores ........................................................................................................................... 13 Restaurant Industry Outlook Remains Positive ............................................................................................................................... 14 Lease Cancellations: Harry and David Holdings ............................................................................................................................. 15 Upcoming Corporate Facility Closures & Layoffs ............................................................................................................................ 16 Real Money: Corporate & Property Financings and Note Buys & Sells ........................................................................................... 17 Watch List: CMBS Office Loans ID'd as Foreclosure Workouts ...................................................................................................... 21

Excess Federal Property a Game Changer for Commercial Real Estate Reducing Federal CRE Footprint Will Impact Rents, Construction, Supply

Through an aggressive push in Washington, DC, to cut costs and improve operational efficiencies, the federal government's listings of properties for sale could balloon from less than a hundred or so to thousands – and, also, reduce the government's reliance on leased space. The effort is already influencing how landlords and brokers make decisions affecting commercial real estate. With pressure building to lower the national deficit, the government is moving into a contraction mode and real estate has become one of the targets of the budget ax. Pressure is building to house more federal employees in less overall space while at the same time, creating a potential source of revenue. Last week, the House subcommittee on Economic Development, Public Buildings & Emergency Management approved a bill (the Civilian Property Realignment Act) that would set up a commission to identify real estate properties that would be put out for sale. Rep. Jeff Denham (R-CA), chairman of subcommittee, sponsored the bill with the backing of President Barack Obama who has directed federal agencies to accelerate efforts to eliminate unneeded properties, setting a goal of saving $3 billion by the end of 2012. The proposed commission would have a structure similar to the Defense Base Closure and Realignment Commission to help facilitate the sale of unused or unneeded government-owned real estate. This commission, whose membership will be approved by Congress, will determine which properties should be sold based on real estate fundamentals and pricing. The same day that the White House announced its intention to push this bill, it also released a map showing some 14,000 federal properties that could be targeted for sale. Currently only 21 of them are for sale, according to federal government officials. "These excess properties are just the tip of the iceberg," said Jeffrey Zients, the Federal Chief Performance Officer and the Deputy Director for Management at the Office of Management and Budget and who is overseeing

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the Obama administration's efforts to restructure the government. "There are many more opportunities to cut waste and save taxpayer dollars by downsizing the federal government's footprint." The 14,000 properties identified are controlled or serviced by the U.S. General Services Administration. Several other federal agencies, however, have the ability to dispose of their properties internally and not go through GSA. For example, the bill in its current form charges the commission with identifying which federal field offices are in close proximity to existing postal facilities and identify where there are opportunities to combine the two separate locations into the postal facility.

THE ECONOMICS OF REAL ESTATE RESTRUCTURING

Brian C. Sullivan, executive director, Federal Practice Group at Cushman & Wakefield in Washington, DC, says you can't argue with Congress for trying to figure out ways to generate additional revenue and save money. "The sale of federal assets is a two-bagger," Sullivan said. "It generates the sale proceeds and then puts the asset back on the local jurisdiction's payroll." That said, Sullivan added: "The BRAC-like commission should not be a process to circumvent GSA; however, it should be a process where Congress brings OMB and GSA to the table; devises a business strategy based on best practices; leverages current market conditions; and then executes its strategy on behalf of the U.S. taxpayer rather than to take its traditional stance that the law doesn't allow us to lease office space or structure real transactions like GE, Exxon, and even many municipalities." "A stronger argument to bottom-line savings is the sale of underutilized federal assets and continuing to focus on creating a more efficient work model," Sullivan said. "Assuming it costs you a $100,000 per year, with benefits, etc. to employ a federal employee, the elimination of a duplicate job saves you a $1 million over a 10-year term. On a 50,000-square-foot transaction, elimination of just one person provides you a 5% savings on your annual rent."

THE POSTER CHILD OF IRRESPONSIBLE LEASING

Tom Cafferty, president and managing principal of Cafferty Commercial Real Estate Services in McLean, VA, said the Securities & Exchange Commission's 900,000-square-foot, $415 million lease of Constitution Center signed last summer is a sort of benchmark/low-point as to why Congress is so focused on bringing efficiencies to government leasing. Three months after signing the lease, the SEC decided it would not need 600,000 square feet of the space and it has been trying to find subtenants ever since. Last week, the SEC's internal inspector general issued a 94-page report ripping "the irresponsible decisions made with respect to the Constitution Center lease" saying the decision "represents another in a long history of missteps and misguided leasing decisions made by the SEC since it was granted independent leasing authority by Congress in 1990." Decisions such as this occurred because of record level growth at federal agencies from 2008 through 2010, Cafferty said. "The point being, many agencies started in essence "speculating" on leasing space with again the SEC being the "poster child" for irresponsible leasing at extraordinary space allocation ratios, quadruple or more, what private sector leasing ratios are at 1 person per 200 square feet," Cafferty said, adding that "the SEC leased space leaves a space occupancy allocation of 1 SEC employee per 850 rentable square feet." "Add to that the $140 per square foot tenant improvement allowance the SEC spent at Station Place and there is no question why Congressman Denham and others are focused on revamping federal leasing due to the misuses of the government leasing authority," Cafferty said.

UNDERCURRENTS OF FEDERAL SUPPLY & DEMAND ON THE PRIVATE SECTOR

The proposed federal cutbacks already has some landlords reassessing their desire to stay in the game, said Boyd J. Campbell, managing partner-associate commercial broker for century 21 Home Center in Lanham, MD.

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(Excess Federal cont'd from page 2) Landlords "are employing their attorneys and brokers to review the strength of current leases," Campbell said. "Most, if not all landlords, will look at alternative tenants for their space and how to attract them. As never before landlords will employ best practices to move through the unsettling period, before the market returns to center. Lastly, it's conceivable that some landlords will simply shuck it off as a myth." Ann Page, managing director of KW Commercial in McLean said she thinks it is logical to expect that fewer buildings will be built to suit for government offices as more agencies stay in place and try to reduce rents. "Since half of the spaces used by the government are owned and half are leased, I believe that more government buildings will come on the market for sale and more leases may propose renegotiation for savings in rent, as we are finding in the private market," Page said. Judy London Murray, a distressed property expert with Remarkable Properties Inc. in Baltimore, said the federal downsizings initiatives could exacerbate existing problems regarding federal properties. "Having worked for government agencies in the past with property ownership responsibilities, I have found them to be restricted by budgets to adequately maintain properties and defer maintenance and needed capital improvements," Murray said. "Removing the federal government as a "demand" influence on local real estate markets, will significantly reduce rental rates, potentially below those needed to adequately maintain structures. This will inevitably be followed by a reduction in values that may also influence the ability of owners to sell their properties and pay off all bank debt." "The federal government leases hundreds of thousands of square feet throughout state and local governments," she said. "If the government pulls out, in this economic environment, the vacant space may remain vacant for a long time. Businesses that rely on the employees working for the government as a significant customer base will experience a decline in revenues also threatening their viability." CoStar Senior Real Estate Strategist Chris Macke said: "This is a concrete example of the increasing reliance landlords and the entire commercial real estate industry will have on corporate hiring and investment levels as opposed to government dollars. The key question is whether corporate America will pick up its rate of hiring and investment levels enough to offset the reduced demand?"

Investors Jump Back Into Rebounding Hotel Market By: Randyl Drummer With the U.S. hotel sector firmly in recovery mode, the number of large hotel investment sales has continued to rise in the second quarter. More properties are coming onto the market in response to a growing amount of capital seeking hotel investment, with private-equity funds, institutional buyers and other types of buyers joining REITs in the competition for high quality lodging assets. The already-hot pace of deals seems to have accelerated in recent weeks. According to preliminary CoStar data, approximately $4.21 billion in hospitality properties have sold or gone under contract in 132 sales since April 1 of this year. Nearly a dozen of those deals involve hotel portfolios or high-end properties that have closed at a price of $100 million or more. "The transaction environment remains extremely competitive," said Douglas Kessler, president of Ashford Hospitality Trust Inc., which along with joint venture partner Prudential Real Estate Investors took ownership of the 28-hotel Highland Hospitality portfolio earlier this year through a consensual foreclosure for $1.277 billion. "The depth of the buyer market is increasing and includes REITs, investment funds, insurance companies, pension plans, private equity and offshore buyers," Hotel operators are poised to take advantage of big improvements in hotel fundamentals. As of the first quarter, owners throughout most of the 54 largest U.S. markets tracked by CoStar and its forecasting unit, Property & Portfolio Research (PPR), had already started to push room rates upward.

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However, the recovery remains uneven with only a handful of metros sporting high occupancies showing consistent rent gains over the past year. Still, with occupancies much improved from their cyclical lows and increasing further, CoStar forecasts that room rates should increase across the board in 2011. Just occupancy gains alone have been enough to stoke sizable growth in revenue per available room (RevPAR) in the top 54 markets, according to CoStar. For the week ending May 21, the U.S. lodging industry reported its strongest weekly performance since early April, said Steve Hood, STR senior vice president at Smith Travel Research (STR). The industry recorded an 11.6% gain in RevPAR, rising to $67.52 for the week. National hotel occupancy rose 6.2% to 65.4%, and the average daily rate (ADR) increased 5.1% to $103.23. The RevPAR pop this year has attracted buyers looking to capitalize on the property type’s relatively quick recovery in asset-level performance, CoStar Real Estate Economist Jeff Myers said in a recent report on hotel fundamentals in the largest U.S. markets. "As a result, hotel investment activity has risen from its bottom, both in terms of the number of deals and total volume." "The market for transactions is heating up rapidly," confirmed Arthur Adler, managing director and CEO-Americas for Jones Lang LaSalle Hotels, which has closed several large deals this year -- most recently the acquisition of two properties totaling 282 rooms by Texas-based FelCor Lodging Trust, Inc. from Morgans Hotel Group for $140 million, or $496,454 per room, on May 23. With hotels bearing a disproportionate amount of distressed CMBS debt compared to other property types, a significant portion of lodging deals involve troubled properties. In among the largest of these transactions, Chatham Lodging Trust and Cerberus Capital Management, LP bought the Innkeepers USA portfolio of 65 properties from Innkeepers and Apollo Investment Corp. in a bankruptcy sale in May for $1.13 billion, or about $124,599 per room. Also last month, private equity fund KSL Capital Partners of Denver bought the 293-room Intercontinental Montelucia Resort & Spa in Paradise Valley, AZ, for $115.6 million, or $394,439 per room, in an REO sale from Eurohypo AG. Though plenty of buyers are targeting heavily discounted distressed assets, well-located core-quality hotels are also selling regularly and the value of these deals has caused the average price per room in the market to begin trending upward. "So far this year, there have been more than 35 upscale, full-service hotels traded in large urban areas throughout the U.S., with total transaction volume exceeding $4 billion, marking a staggering 250% increase, from $1.3 billion in the same period last year," Adler said. "Manhattan is on the forefront of hotel transactions, with year-to-date sales in the city topping $1 billion, representing a quarter of national upscale urban hotel trade volumes." Texas based FelCor Lodging Trust, Inc. bought two properties totaling 282 rooms from Morgans Hotel Group for $140 million, or $496,454 per room, on May 23. Other recent large hospitality transactions include the following

Sunstone Hotel Investors of Aliso Viejo, CA, bought the 1,190-room Hilton San Diego Bayfront from sovereign wealth fund Abu Dhabi Investment Authority for $475 million, $532,213/room.

Diamondrock Hospitality agreed to purchase the Radisson Lexington Hotel, 509-515 Lexington Ave, in New York’s Plaza District, in a deal expected to close within 30 days. The seller, Lexington Hotel Real Estate LLC, listed the deal at $335 million or $477,888/room.

DiamondRock Hospitality agreed to buy the former Knickerbocker Hotel at 1466 Broadway in New York from Highgate Holdings for between $112.5 million and $135 million, depending on the number of rooms approved for construction.

Pebblebrook Hotel Trust of Bethesda, MD, acquired West Hollywood landmark the Mondrian Los Angeles at 8440 W. Sunset Blvd. from Morgans Hotel Group for $137 million, or more than $578,000/room.

Chesapeake Lodging Trust acquired Chicago City Center in the Central Loop for $128.8 million, or $350,000/room, from Starwood Hotels and Resorts Worldwide Inc.


Investment manager Westbrook Partners bought the 182-room St. Regis Hotel in Washington, DC’s CBD in a note purchase for $100 million, or $549,451/room, from equity fund Claret Capital2. Westbrook acquired a $125 million note from Barclay’s Capital.

Pebblebrook acquired the Westin Gaslamp Quarter San Diego in downtown San Diego for $110 million, or $244,444/room, from Starwood Hotels.

KSL Capital Partners acquired the 409-room Royal Palm Hotel at 1545 Collins Ave. in Miami from Sunstone Hotel Investors for $130 million, or $317,848/room. The deal traded at a cap rate of 4% and the seller provided $90 million in seller financing, putting the LTV of the deal at about 70%.

KSL Capital, which specializes in the acquisition of resort properties, announced Wednesday it has completed the final closing of its KSL Capital Partners III, L.P fund, which will specialize in investments in travel and leisure businesses. The fund closed with more than $2 billion in commitments, significantly exceeding the original target amount of $1.5 billion. It’s another sign that the flow of capital to hotels isn’t likely to let up soon - and in fact is spreading from urban core hotels bolstered by business travel to resorts, which rely on recovery in the leisure travel market. Investors in the fund include public and private pensions, foundations, endowments, institutions and high net worth individuals. KSL currently has more than $3.5 billion in equity commitments under management and has now raised three funds since 2005 for hospitality, recreation, clubs, resort real estate and travel service businesses. "We believe that this is a unique time in the market to be able to deploy the investment strategy that we have successfully used for more than 20 years," said Michael Shannon, managing director, who co-founded KSL with managing director Eric Resnick.

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Dreaded Double-Dip in Home Prices Confirmed The much feared double-dip in home prices has materialized nationally. Home prices declined by 4.2% in the first quarter of 2011, after having fallen 3.6% in the fourth quarter of 2010, shows data through March 2011, released by Standard & Poor's for its S&P/Case-Shiller Home Price Indices. The national index hit a new recession low with the first quarter's data and posted an annual decline of 5.1% versus the first quarter of 2010. Nationally, home prices are back to their mid-2002 levels. "This month's report is marked by the confirmation of a double-dip in home prices across much of the nation," said David M. Blitzer, chairman of the Index Committee at S&P Indices. "The National Index, the 20-City Composite and 12 MSAs all hit new lows with data reported through March 2011. The National Index fell 4.2% over the first quarter alone, and is down 5.1% compared to its year-ago level. Home prices continue on their downward spiral with no relief in sight." "Since December 2010, we have found an increasing number of markets posting new lows. In March 2011, 12 cities - Atlanta, Charlotte, Chicago, Cleveland, Detroit, Las Vegas, Miami, Minneapolis, New York, Phoenix, Portland (OR) and Tampa - fell to their lowest levels as measured by the current housing cycle. Washington DC was the only MSA displaying positive trends with an annual growth rate of +4.3% and a 1.1% increase from its February level," Blitzer said. "The rebound in prices seen in 2009 and 2010 was largely due to the first-time homebuyers' tax credit," Blitzer said. "Excluding the results of that policy, there has been no recovery or even stabilization in home prices during or after the recent recession. Further, while last year saw signs of an economic recovery, the most recent data do not point to renewed gains."

Multifamily REITs Gaining Ground at Homebuilders' Expense The credit ratings on multifamily REITs should hold steady in the current market, but Standard & Poor's Ratings Services said it will come at the expense of homebuilders whose ratings outlook remain under pressure through the balance of the year. Conditions are tough for U.S. homebuilders, perhaps more difficult than at any time since the Great Depression. New home sales are less than one-quarter of their 2005 peak, and home prices have been falling again, according to S&P. Conversely, factors that weigh on the homebuilding sector, such as more restrictive mortgage standards and high foreclosure rates, are boosting demand for apartment units. With multifamily supply in check, vacancies are falling and rents are rising. S&P said it expects the 2011 sales for homebuilders it rates to be flat to down 10% relative to 2010. In its view, most rated homebuilders are unlikely to post a profit under these conditions. So liquidity will remain a key rating factor, particularly for lower-rated companies (nine of 15 homebuilders are rated in the 'B' category or lower). On the other hand, S&P said it expects its ratings on 10 U.S. multifamily REITs to remain generally stable in the next one to two years. (Seven of 10 rated multifamily REITs are in the 'BBB' category, which is investment-grade, and three are in the speculative-grade 'BB' category). Apartment building owners are benefiting from improved demand and favorable supply conditions, S&P said. However, even though multifamily supply and demand fundamentals are favorable, we don't expect to upgrade many multifamily REITs this year. As the aftereffects of the housing bubble play out, S&P said it expects divergent credit conditions for multifamily REITs and homebuilders to persist in 2011. "We do not believe that that key economic factors indicate a strong recovery in home sales, and we do not forecast a sharp increase in the supply of apartments for at least two years. Therefore, we expect better


positioned multifamily REITs to continue to benefit from the lingering pain that homebuilders are sustaining," S&P said.

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McClatchy Sells Miami Waterfront for $236 Mil. By: Justin Sumner The McClatchy Co. sold 14 acres of waterfront land for $236 million. The buyer, Bayfront 2011 Property LLC, is a subsidiary of Genting Malaysia Berhad, part of a group of international developers and operators of destination resorts in the U.S., U.K. and Asia. The site is currently home to Miami Herald Media Co.'s headquarters and an adjacent parking lot. The seven-story waterfront office building totals 604,000 square feet of commercial office space. The media conglomerate, with titles including The Miami Herald, El Nuevo Herald, several related websites and other media businesses, is entitled to free rent at the site for the next two years as part of a deal struck between the two parties; allowing time to find relocation options. The buyer plans to redevelop the site into the Resorts World Miami, to include a hotel, convention center, multifamily component, an entertainment facility, restaurants and storefront retail space. The buyer hopes to capitalize on Miami's tourism base and the recent growth in South Florida's retail and residential sectors. Of the proceeds from the sale, McClatchy plans to put $163 million into the company's pension plan, another $65 million will go to the holders of a 2017 senior secured note, and $2 million will cover transfer taxes related to the

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sale. The remaining $6 million is to be put in an escrow account for McClatchy after it completely vacates the property.

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Real Estate Coming Out of Back Offices in M&A Decisions Once considered only a back office operation, the real estate and facilities (RE&F) function is now fully aligned with broader corporate strategic priorities, according to nearly two-thirds (63%) of respondents to a survey conducted by CoreNet Global and Deloitte. More than half (56%) of survey respondents said that RE&F input is important to the strategic M&A/divestiture decision-making process. An additional 8% indicated that RE&F input was "critical" to the decision-making process and able to steer strategic decisions based on specific analyses and insights. "What we are seeing is an increase in the perceived value of the RE&F function," said Richard Kadzis, vice president of strategic communications at CoreNet Global. "However, the transition is not complete. Many RE&F professionals still believe that the RE&F function is not given enough weight in the M&A decision process." Respondents indicated that RE&F was typically involved in the M&A transaction decision-making either at the initial concept stage (22%) or prior to the final decision and internal announcement (59%). Conversely, 27% said that RE&F provides analytical support without having a "seat at the table" during the decision-making process; and, 8% reported that RE&F has no part of the strategic M&A/divestiture decision-making process. Respondents indicated that the most important areas relative to RE&F in commercial due diligence were understanding the leased space profile (48%) and owned assets (26%). "Understanding the RE&F-related commitments, liabilities and risks are key to properly planning for the anticipated run-rate post-transaction." Kadzis added. "Given the upcoming changes in lease accounting, the leased space profile will continue to be of significant importance in RE&F due diligence—and an area where RE&F teams can be invaluable during pre-deal planning and throughout the deal life cycle."

Infrastructure 2011:

U.S. Cities Strain to Maintain Assets as Federal Funding Declines America's infrastructure investments – levels of which have long trailed behind those of Asia and Europe – will be further stifled this year by pressures to cut federal spending and reduce the deficit, compelling cities to be evermore creative and resourceful in securing partnerships to start or continue infrastructure projects, according to Infrastructure 2011: A Strategic Priority. The report, released by the Urban Land Institute and Ernst & Young, looks at infrastructure investments on six continents. Expenditures for global infrastructure requirements over the next 25 years are currently estimated at $50 trillion. According to the report, the current U.S. commitment seriously pales by comparison. "For those who have read our infrastructure reports over recent years, one consistent finding is that the U.S. seriously lags behind the rest of the world in addressing its infrastructure issues," said Howard Roth, Ernst & Young's global real estate leader. "The U.S. is facing increasing federal, state and municipal budget deficits and lacks any type of comprehensive national policy or the political will to develop a long-term approach to funding the significant maintenance needs of aging U.S. infrastructure, much less the modernization and greenfield development of critically-needed new projects." "We need to refocus our priorities: streamline the procurement process, attract private capital more efficiently, strategically invest in projects with national merit and regain our stature as a global competitor," Roth said. "We need to take a page out of the playbooks of several nations around the world highlighted in our report, or we face the risk of serious deterioration of our country's economic and social well-being." With $2 trillion needed just to repair and rebuild deteriorating roads, bridges, water lines, sewage treatment plants and dams, the nation's infrastructure woes will only get worse, as the politically fractured government


erodes support for both existing upgrades and new initiatives, noted Maureen McAvey, ULI executive vice president. Public spending on transportation and water infrastructure as a share of the U.S. gross domestic product peaked at 3.1% in 1963 then declined steadily to 2.4% in 2007, according to Congressional Budget Office data. "America's unwillingness to confront its infrastructure challenges is undermining the ability of our urban areas to compete globally. If we persist with short-sighted decisions, we will lose talented workers and companies to nations and cities overseas that are committed to infrastructure as a vital component of livability and economic viability," McAvey said. "Infrastructure as a national priority is not political rhetoric. It's a must to keep America's standing as a global leader in innovation." States and local governments, which are already suffering from decreasing tax revenues, are also facing both the phase-out of federal stimulus funding and the likelihood of further declines in federal funding, the report noted. The federal government's share of total public expenditures for transportation and infrastructure is about 30%. The ramifications are significant. Infrastructure built with federal grants decades ago will not be repaired or replaced, due to the shortage of state and local maintenance and operational funding; local governments will scramble for what's left of available federal capital project dollars; more states will reject federal capital funding, fearing future unfunded operating burdens; and transit system expansions in car-dependent metro areas will struggle to move forward. The report provides a snapshot of the infrastructure challenges. While all are experiencing fiscal constraints, the report cites Denver, Minneapolis-St. Paul, Seattle and Salt Lake City as being particularly successful in moving projects forward, due largely to the willingness of local governments to pool resources and their ability to gain consensus on planning and spending strategies. Among other trends shown in the metro scan: More established cities such as Boston, Philadelphia, Chicago and San Francisco are forced to retrench on new projects and make triage decisions on repairs that include service cuts and fare increases. Dried up sales tax revenue cuts into the resources targeted for light rail corridor extension projects in several cities, including Charlotte and Denver; and Cities such as Atlanta, Phoenix and Dallas that don't provide gas tax revenues or general fund support for mass transit are scrambling for funding sources.

Limit Approaching to How Much Repair of Balance Sheets

Can Boost Bank Earnings Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported an aggregate profit of $29 billion in the first quarter of 2011, an $11.6 billion improvement (66.5%) from the $17.4 billion in net income the industry reported in the first quarter of 2010. This is the seventh consecutive quarter that earnings registered a year-over-year increase. For the sixth consecutive quarter, reduced provisions for loan losses drove the improvement in earnings. "The industry shows continuing signs of improvement," said FDIC Chairman Sheila C. Bair. She added, "though there is a limit to how far reductions in loan-loss provisions can boost industry earnings." First-quarter loss provisions totaled $20.7 billion, less than half the $51.6 billion that insured institutions set aside a year ago. However, some of the benefits from lower provisions were offset by reduced revenues. Net operating revenue was $5.5 billion (3.2%) lower than a year earlier, and realized gains on securities fell by $1.7 billion. Asset quality continued to improve as noncurrent loans and leases (those 90 days or more past due or in nonaccrual status) fell for a fourth consecutive quarter. Insured banks and thrifts charged off $33.3 billion in uncollectible loans during the quarter, down $19.9 billion (37.5%) from a year earlier.


"The process of repairing bank balance sheets is well along, but is not yet complete," Chairman Bair said. "In addition, housing markets remain weak, in part because of continued questions about mortgage servicing problems. The economic recovery, along with borrower demand, remains sluggish. Longer term, banks may be exposed to interest rate risk when we emerge from this prolonged stretch of unusually low rates." The number of institutions on the "Problem List" flattened. The net increase of four, to 888, is the smallest in three-and-a-half years. Still, the number of "problem" institutions is the highest since March 31, 1993, when there were 928. Total assets of "problem" institutions increased from $390 billion to $397 billion. Twenty-six insured institutions failed during the first quarter, the smallest number in the last seven quarters.

Low Bank Prices Prompts East Texas Financial To Spin Off Bad

Residential Assets, Pursue More CRE Lending Saying bank valuations are too cheap, East Texas Financial Services Inc., the holding company for First Federal Bank Texas in Tyler, TX, has taken the bank off the market. Last November, East Texas Financial engaged Commerce Street Capital to provide strategic advice to the company regarding "the status of the banking industry generally and in the east Texas area specifically, and merger and acquisition activity within the banking industry." "The board of directors was advised that due primarily to these factors, current takeout pricing for banks, both nationally and within the east Texas market area, was below historical levels, and that takeout pricing for banks with levels of non-performing and classified assets similar to ours was significantly lower," said Derrell W. Chapman, president and CEO of East Texas Financial. "While we received a few indications of interest, all were below book value and even the highest was subject to further reduction based on resolution of certain classified assets." "After undergoing the process described above," Chapman added, "our board of directors concluded that it would be in the best interests of the company and all shareholders to continue with our current strategy of reducing non-performing and classified assets, seeking opportunities within the company's east Texas market area for commercial and commercial real estate lending, strengthening its one- to four-family lending program through strategic partnerships with local real estate agents, and seeking sources of funding that will improve our net interest income and margin." First Federal Bank Texas has developed a comprehensive plan of action to reduce the level of classified and non-performing assets. Key aspects of the plan include aggressive marketing efforts to sell a portfolio of one-to four-family residential rental properties acquired through foreclosure in 2010 and 2011. The portfolio consists of approximately 70 properties and totals $2.5 million, out of a total of $2.65 million in foreclosed and repossessed assets. In addition, the bank is taking legal action to resolve two additional non-performing assets totaling $1.5 million and $1 million respectively. As of March 31, 2011, First Federal Bank Texas reported $216.3 million in total assets of which $14.1 million was listed as classified, or 3.4% of total assets which included $7.4 million in non-performing loans and foreclosed or repossessed assets. It reported a net loss of $118,000 for the quarter.

Columbia State Bank Buys Second Failed Institution in Two Weeks Columbia State Bank acquired all of the deposits and substantially all of the assets of First Heritage Bank from the Federal Deposit Insurance Corp. (FDIC), which was appointed receiver of the institution. "We have long desired to become a Pacific Northwest regional community bank," said Melanie Dressel, president and CEO, Columbia Banking System, parent company of the Tacoma, WA-based bank. "The acquisition of the former First Heritage Bank's five branches enhances our presence in Snohomish and King


counties and complements our new Skagit County footprint resulting from our acquisition of the former Summit Bank one week ago." Columbia State Bank will acquire approximately $173 million in assets of which $142 million of First Heritage Bank's total assets will be subject to a loss-sharing agreement with the FDIC. Columbia State Bank participated in a competitive bid process, whereby it agreed to assume substantially all of the assets and all deposits of First Heritage Bank. The accepted bid included a 0.75% deposit premium on non-brokered deposits and a negative bid of $10.5 million on net assets acquired. As of March 31, 2011, First Heritage Bank reported holding $13.42 million in foreclosed upon assets of which $7.7 million was construction and development projects. Prior to the acquisition of First Heritage Bank, Columbia Banking System had 88 banking offices, including 63 branches in Washington State and 25 branches in Oregon. The FDIC estimates that the cost to the Deposit Insurance Fund will be $34.9 million.

Syms Puts Itself Up For Sale Syms Corp. initiated a process to explore and evaluate various potential strategic alternatives, which may include a possible sale of the company. Secaucus, NJ-based Syms and its wholly owned subsidiary Filene's Basement, collectively own and operate a chain of 47 "off-price" retail stores. The company has retained Rothschild Inc. as its exclusive financial advisor to assist in the strategic review process. Last week, Capstone Equities Capital Management, a real estate investment firm based in the New York Metro region sent a letter to some Syms board members and executive officers asking it "to explore and enhance shareholder value" options. Capstone laid out various such options.

The sale of certain assets using proceeds to buy-back shares. Capstone argued that Syms' 42 Trinity Place store in the Financial District of Manhattan is a prime development site worth more than $40 million.

Spin-off real estate assets to a triple net lease buyer. Under this plan, Capstone said Syms would enter into long term leases (15+ years) with a buyer at a rent level which is sustainable.

Taking the company private. Clearly the public markets are significantly undervaluing SYMS both as a retail business as well as the significant real estate holdings which it possesses, Capstone said.

Consider significant cost reductions to mitigate losses. Capstone said Syms' selling, general and administrative plus occupancy costs have averaged 42% of net sales in each of the last two years. This compares very unfavorably with other comparable discounters we analyzed whose costs for these line items were between 25%-30% of net sales.

Continue to close non-performing stores. And

Adding additional board seats of highly qualified real estate professionals.

A&P Completes Auction of 25 Superfresh Stores The Great Atlantic & Pacific Tea Company Inc. completed the previously announced auction of 25 southern Superfresh locations, as it continues to fully implement its comprehensive financial and operational restructuring. Three buyers offered bids on 12 stores with 13 stores receiving no bids. The winning bids are as follows.


Ten stores – Two in Baltimore (Charles Plaza and 41st Street & Hickory) and one each in Parkville, Arnold, White Oak, Lutherville, Cambridge, Chestertown and Brunswick, MD, and Washington, DC – to a joint venture between Mrs. Greens Management Corp. and Village Supermarkets. The White Oak and Lutherville, MD stores will be operated by Village Supermarkets with the remaining stores to be operated by Mrs. Greens Management Corp.

Its Ellicott City, MD, store to SuperValu.

Its Westminster, MD, store to its landlord, Englar Center LP. In addition, the prescription customer lists of seven Superfresh stores were awarded to three different bidders (three to Walgreen's; three to Safeway and one to CVS/pharmacy). Based on these results, the company expects auction proceeds in excess of $40 million. A&P President and Chief Executive Officer Sam Martin said, "We are pleased with the results of the store auction and want to thank our dedicated Associates for remaining focused on delivering great service to our customers throughout the sales and marketing process. We also want to thank our customers for their loyal patronage over the years." The winning bids are subject to approval from the bankruptcy court. A hearing is scheduled for June 14. A&P expects to cease operating these 12 stores by mid-July. The company anticipates closing the 13 remaining Superfresh locations that were not sold at auction. These locations are expected to be closed by mid-July, subject to approval by the court. As previously announced, the company's Superfresh locations in New Jersey, Pennsylvania and the Maryland/Delaware shore area were not included in this bidding process. These stores continue to operate normally.

Restaurant Industry Outlook Remains Positive Buoyed by positive same-store sales and solid optimism among restaurant operators for continued growth, the outlook for the restaurant industry remained positive in April. The National Restaurant Association's Restaurant Performance Index (RPI) – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 100.9 in April, essentially unchanged from a level of 101.0 in March. In addition, April represented the fifth consecutive month in which the RPI stood above 100, which signifies expansion in the index of key industry indicators. "The restaurant industry continued to build momentum in April, with restaurant operators reporting positive same-store sales and customer traffic levels for the sixth time in the last eight months," said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association. "Barring any significant external shocks, restaurant sales and traffic levels will continue to improve in the months ahead." Restaurant operators continued to report net positive same-store sales results in April. 50% of restaurant operators reported a same-store sales gain between April 2010 and April 2011, down slightly from 52% of operators who reported higher same-store sales in March. In comparison, 31% of operators reported a same-store sales decline in April, matching the proportion of operators who reported lower sales in March. Restaurant operators also reported a net increase in customer traffic in April, although levels were somewhat softer than the March results. 38% of restaurant operators reported an increase in customer traffic between April 2010 and April 2011, down from 45% of operators who reported higher traffic in March. In comparison, 35% of operators reported a traffic decline in April, up from 32% in March. Capital spending activity among restaurant operators trended upward in recent months. 48% of operators said they made a capital expenditure for equipment, expansion or remodeling during the last three months, the highest level in nearly three years.


However, restaurant operators reported a slight dropoff in plans for capital spending in the months ahead. 49% of restaurant operators plan to make a capital expenditure for equipment, expansion or remodeling in the next six months, down slightly from 53% who reported similarly last month.

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Lease Cancellations: Harry and David Holdings Harry and David Holdings Inc. filed a plan of reorganization in its attempt to exit bankruptcy later this summer. The Medford, OR-based retailer expects to emerge from its financial restructuring with a significantly improved balance sheet and with substantially less debt. The proposed plan will allow the company to convert all of its approximately $200 million of outstanding public notes into equity of the reorganized company. The plan also includes an equity capital raise that will generate $55 million in equity financing upon the company's emergence from chapter 11. A group of the company's existing noteholders have agreed to backstop the equity capital raise. As part of its bankruptcy reorganization, the company has asked the courts to cancel four leases. Tenant Property Address Landlord Type

Harry and David

3060 Peachtree Road, Suite 1210, Atlanta, GA Dickenson Gilroy LLC Office sublease

Harry and David

7400 S. Las Vegas Blvd., Space #239A, Las Vegas, NV Chelsea Property Group Store lease

Harry and David

335-345 N. Maple Drive, Beverly Hills, CA Tishman Speyer Properties Office lease

Harry and David 113 Enterprise Drive, Hebron, OH National Distribution Centers LP Warehouse lease



Upcoming Corporate Facility Closures & Layoffs

Company Address Closure or Layoff

Owned or Leased

No. Impacted

Impact Date

CoStar Prop. ID

Alstyle Apparel / A&G Inc.

500 E. Cerritos Ave., Anaheim, CA Closure Leased 35 6/24/2011 291111

Bent Manufacturing Co.

17311 Nichols Lane, Huntington Beach, CA Closure Owned 45 6/11/2011 6449383

Biogen Idec 5200 Research Place, San Diego, CA Closure Leased 64 6/30/2011

742555 / 769150 / 667244 /

769148

Callaway Golf 2180 Rutherford Road, Carlsbad, CA Layoff Owned 25 6/24/2011 594104

Ducommun Technologies

2490 Turquoise Circle, Newbury Park, CA Closure Leased 61 6/18/2011 195485

Ericsson Inc. 200 Holger Way, San Jose, CA Layoff Leased 100 6/24/2011 311433

Fujitsu Frontech NA

25902 Towne Centre Drive, Foothill Ranch, CA Layoff Leased 31 6/28/2011 292602

Hines Growers LLC

23296 Road 24, Chowchilla, CA Closure 86 6/30/2011 8044873

Insurance Leads.Com

6400 Laurel Canyon Blvd., Suite 460, North Hollywood, CA Closure Leased 85 6/30/2011 50832

Intuit 21215 Burbank Blvd., Suie 100, Woodland Hills, CA Layoff Leased 43 6/13/2011 902109

Jet Propulsion Laboratory

4800 Oak Grove Drive, Pasadena, CA Layoff Owned 49 6/30/2011 7179860

Labcorp / Labwest Inc.

1821 E. Dyer Road, Santa Ana, CA Layoff Leased 84 6/18/2011 285353

Macquarie Holdings (USA)

555 S. Flower St., Los Angeles, CA Layoff Leased 42 6/30/2011 248714

MCA Logistics 10288 Calabash Ave., Fontana, CA Layoff Leased 113 6/12/2011 5635013

Medtronic 18000 Devonshire St., Northridge, CA Layoff Leased 118 6/26/2011 651078

Mills-Peninsula Health Services

1720 El Camino Real, Burlingame, CA Layoff Owned 21 6/1/2011 7051945

Mills-Peninsula Health Services

100 S. San Mateo Drive, San Mateo, CA Layoff 21 6/1/2011

NGK Spark Plugs (USA) 6 Whatney, Irvine, CA Closure Owned 46 6/1/2011 284800

Pactiv 15221 Canary Ave., La Mirada, CA Closure Leased 54 6/3/2011 269996

Parking Concepts 3750 Wentworth Drive, Temecula, CA Layoff Leased 62 6/30/2011 5707551

Parking Concepts 28071 Diaz Road, Suite B, Temecula, CA Layoff Leased 67 6/30/2011 347813

Parking Concepts 2225 Via Cerro, Suite A, Riverside, CA Layoff Leased 52 6/30/2011 82915

Ramco Enterprises

25867 Esperanza Road, Salinas, CA Layoff Leased 357 6/15/2011 5460465

RPM Towing (dba Valley Towing Products) 1313 S. Stockton St., Lodi, CA Closure Owned 64 6/15/2011 1023570

Sony Electronics 16530 Via Esprillo Drive, San Diego, CA Layoff Owned 50 6/4/2011 42657

Teva Parenteral Medicines 19 Hughes, Irvine, CA Layoff Owned 156 6/12/2011 289925

Victor Treatment Center / North Valley School 55 N. Perris Blvd., Perris, CA Closure 96 6/30/2011


Real Money: Corporate & Property Financings and Note Buys & Sells Alexandria Real Estate Equities Inc. raised about $452 million from a common stock offering. The company intends initially to use the net proceeds to reduce the outstanding balance of its borrowings. American Campus Communities Inc. closed a combined $650 million credit facility, consisting of a $450 million unsecured revolving credit facility and a $200 million unsecured term loan facility. The initial term of the revolving credit facility is three years and the term loan facility has an initial term of four years. Based on American Campus' current leverage ratio, the LIBOR margin at closing was 200 basis points. Armour Residential REIT Inc. commenced a public offering of 16 million shares of common stock. The company intends to use the net proceeds to acquire additional assets. BRE Properties Inc. sold 9.2 million shares of its common stock raising approximately $100 million. The company expects to use the net proceeds to repay borrowings under its unsecured revolving credit facility and to redeem the outstanding shares of its 6.75% SERIES C preferred stock. Colonial Properties Trust may from time to time sell up to $75 million aggregate offering price of its common shares through an "at-the-market" equity offering program. The company intends to use the net proceeds to pay down a portion of the outstanding balance under its unsecured revolving credit facility and its cash management line. CommonWealth REIT priced a public offering of 10 million shares of 7¼% Series E cumulative redeemable preferred shares for gross proceeds of $250 million. CommonWealth REIT expects to use the net proceeds to reduce amounts outstanding under its $750 million revolving credit facility. Corporate Office Properties Trust completed a public offering of 4.6 million common shares. The offering generated net proceeds of approximately $145.7 million. The company intends to use that money to repay amounts outstanding under its unsecured revolving credit facility. DCT Industrial Trust Inc. agreed to issue $225 million of fixed rate, senior unsecured notes. Additionally, the company secured formal commitments to extend its $300 million senior unsecured revolving credit facility and for a new $175 million senior unsecured term loan. The senior unsecured revolving credit facility and senior unsecured term loan will expire in June 2015. Proceeds are expected to be used to repay debt. Equity One Inc. sold 5 million common shares in a public offering raising about $100 million. The company intends to use the net proceeds to reduce the outstanding balance under its unsecured revolving credit facility. First Industrial Realty Trust Inc. is looking to raise more than $103 million in a public offering of common stock. The company intends to use the proceeds for general corporate purposes, which may include repayments or repurchases of debt and acquisition and/or development of properties. Glimcher Realty Trust commenced an At-The-Market offering program for the company's common shares under which it may from time to time sell up to $100 million in common shares over the term of the program. Grubb & Ellis Healthcare REIT II Inc. modified its existing secured revolving credit facility with Bank of America. The facility expands to $45 million from $25 million and may be used to fund property acquisitions. The modified credit facility eliminates a previous all-in interest rate floor of 5% and bears interest at a rate equal to LIBOR plus 3.50%, down from 3.75%. Healthcare Trust of America Inc. closed on a $575 million unsecured credit facility with JPMorgan Chase Bank as the lead bank. The credit facility has a 3 year term and matures in May 2014, and has a 1-year extension option. The interest rate ranges from 250 to 350 basis points over LIBOR. Hersha Hospitality Trust raised about $100 million from the sale of 8% Series B cumulative redeemable preferred shares. Hersha intends to use the net proceeds of the offering to repay outstanding indebtedness. Host Hotels & Resorts Inc. priced a private placement of $425 million in 5-7/8% senior notes due 2019. The net proceeds will be used to repay debt.


Kindred Healthcare Inc. plans to issue up to $550 million of senior notes due 2019. Kindred intends to use the net proceeds to fund its previously announced acquisition of RehabCare Group Inc. Lexington Realty Trust sold 10 million common shares at a public offering price raising about $100 million. Lexington expects to use $22 million of the net proceeds to repay debt and the balance for general corporate purposes, including acquisitions. National Retail Properties Inc. closed a $450 million unsecured credit facility, replacing its existing $400 million credit facility. The new facility matures May 2015, with an option to extend maturity to May 2016. The facility is priced at LIBOR plus 150 basis points. Preferred Apartment Communities Inc. raised $46,073,610 in an initial public offering. RLJ Lodging Trust completed its initial public stock offering raising proceeds of $495 million. The company intends to use the net proceeds to reduce outstanding indebtedness. Starwood Property Trust Inc. plans to offer 22 million shares of its common stock in an underwritten public offering. The company intends to use the net proceeds to purchase additional commercial mortgage loans. TravelCenters of America LLC sold 10 million common shares of beneficial interest raising about $57 million. It expects to use the net proceeds for general business purposes, including funding capital improvements to TA's existing travel centers, acquisitions of additional travel centers and other expansion activities. Two Harbors Investment Corp. sold 23 million common shares for net proceeds of $235.2 million. The company expects to use the net proceeds to make additional acquisitions of residential mortgage-backed securities and other financial assets. UDR Inc. priced a $300 million offering of 4.250% senior unsecured notes under its existing shelf registration statement. The company expects to use the net proceeds for general corporate purposes. UMH Properties Inc. sold 1,338,800 shares of its 8.25% Series A cumulative redeemable preferred stock receiving net proceeds of $32.2 million and intends to use the net proceeds to purchase additional properties. Urstadt Biddle Properties Inc. entered into an amendment of its existing $30 million secured revolving credit facility with The Bank of New York Mellon to extend the maturity date to May 16, 2014. The interest rate on borrowings increased to Libor plus 2% from Libor plus 1.75% and the un-used fee increased to 0.40% from 0.25%. The facility is secured by mortgages on the company's Danbury Square property in Danbury, CT, and the company's Valley Ridge property in Wayne, NJ. Ventas Inc. raised about $700 million from the sale of 4.750% senior notes due 2021. The company expects to use the net proceeds to fund the cash portion of the purchase price and transaction costs in connection with its pending transaction with Atria Senior Living Group Inc. Whitestone REIT raised about $60 million in a public offering of its Class B common shares. Whitestone intends to use the net proceeds for property acquisitions or to redevelop and re-tenant existing properties.

NOTE BUYS AND SALES

HFF closed the loan sale secured by the leasehold interest of 1140 Avenue of the Americas, a 236,000-square-foot, Class A office property in Manhattan. HFF marketed the senior loan and mezzanine loan on behalf of Landesbank Baden-Württemberg (LBBW). Affiliates of the Blackstone Group purchased the loans for $98.25 million. Deutsche Bank purchased a $28.7 million "A" note and $1.5 million "B" note on 444 De Haro St., an institutional quality office building in San Francisco's South of Market (SOMA) submarket. Jones Lang LaSalle closed the note sale. The notes are secured by the fee simple interest in the two-story 132,823-square-foot office building, and 488 De Haro, a three-story, 12,528-square-foot building. The notes, which have an interest rate of LIBOR + 1.4% on an interest-only basis, are current and mature Aug. 9, 2011.


Resource Real Estate Opportunity REIT Inc. purchased at a discount a non-performing promissory note for $7.1 million, 51% of the $13.9 million outstanding principal balance. The note was originated in December 2004, in the original principal amount of $14,517,900. The borrower, The Cannery at Webster Station Ltd., is in default for not paying at least 15 months of debt service payments. The note is secured by a mortgage encumbering the Cannery Lofts, a 156-unit apartment community in downtown Dayton, OH. Resource plans to restructure the loan, or negotiate a discounted payoff, or sell the note or foreclose on the property. Helios Capital LLC completed the sale of a $14.1 million, nonperforming commercial loan collateralized by a three-story, 60,000-square-foot urban retail/ office asset located in Journal Square, the heart of Jersey City, NJ, on behalf Oritani Bank. It also completed the sale of a $2.69 million nonperforming loan sale transaction for a 30-unit, six-story, 18,613-square-foot, multifamily building in Manhattan's Upper East Side. The lender was a regional bank in the New York area. The buyer was an affiliate of Brick Realty Capital LLC.

PROPERTY FINANCINGS

Charter Hall Office REIT closed a $275 million secured credit facility, comprising a $190 million 5-year term loan for five of its U.S. assets as well as an undrawn $85 million revolver facility to fund leasing-related expenditure at the properties. The facility is secured by 745 Atlantic Ave. in Boston; One & Three Christina Center in Delaware; Pasadena Towers in Pasadena, CA; Promenade II in Atlanta; and SunTrust Financial Centre in Tampa. The loan has a term of five years with three 1-year renewal options. The interest rate is 4.5% LIBOR + 2.8% with 3.55% floor (on drawn amount). Inland Diversified Real Estate Trust Inc. affiliates entered into the following financing transactions.

University Town Center loan of $22.2 million with JPMorgan Chase Bank. The loan is secured by a first priority mortgage on the University Town Center retail center in Norman, OK, and bears interest at a rate equal to 5.475% per annum. The loan has a 10-year term, maturing on June 1, 2021, and requires the borrower to make monthly payments of interest only.

Prattville Town Center loan of $18.9 million with JPMorgan Chase Bank. The loan is secured by a first priority mortgage on the Prattville Shopping Center in Prattville, AL, and bears interest at a rate equal to 5.475% per annum. The loan has a 10-year term, maturing on May 1, 2021.

Northcrest Shopping Center loan of $18.7 million with JPMorgan. The loan is secured by a first priority mortgage on the Northcrest Shopping Center in Charlotte, NC, and bears interest at a rate equal to 5.475% per annum. The loan has a 10-year term, maturing on May 1, 2021.

The Village at Bay Park loan of $9.2 million with Wells Fargo National Bank. The loan is secured by a first priority mortgage on the Village at Bay Park retail shopping center in Ashwaubenon, WI, and bears interest at a rate equal to 5.58% per annum. The loan has a 10-year term, maturing on June 1, 2021, and requires the borrower to make monthly payments of interest only.

Copps Grocery Store loan of $3.5 million with JPMorgan. The loan is secured by a first priority mortgage on the Copps Grocery Store in Neenah, WI, and has a 30-year term, maturing on May 1, 2041. Until May 1, 2021, the anticipated repayment date, the loan bears interest at a rate equal to 5.425% per annum and requires the borrower to make monthly payments of interest only. .

Berkadia Commercial Mortgage originated $19,394,100 in fixed-rate debt through the HUD for the construction of Encore on Memorial, a multifamily property in Bixby, OK. The loan features a fixed rate of 4.75% with a 40-year term and amortization. Encore on Memorial, a 248-unit, garden-style Class A apartment community, will be constructed on 12 acres in a fast-growing area in southeastern Tulsa County. HFF arranged $8.2 million refinancing for San Jacinto and Holloway House, multi-housing communities totaling 284 units in Palm Springs and West Hollywood, CA. HFF worked exclusively on behalf of 17834 Burbank Investments LLC to secure the 10-year, 5.19% fixed-rate loan through ING Life Insurance and Annuity Co. The loan has a 30-year amortization and will be serviced by HFF. San Jacinto, which has 209 units, is at 3925 Escoba Drive in Palm Springs. The 75-unit Holloway House is at 8608 Holloway Drive in West Hollywood.


http://www.haymancompany.com/





Watch List: CMBS Office Loans ID'd as Foreclosure Workouts 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 Name Address Curr Bal Maturity Date Pymt Status

CMBS; Special Servicer

City Tower 333 City Boulevard West, Orange, CA $115,000,000 5/11/2017

60-89 days delinquent.

CSFB 2007-C4; ING Clarion Capital Loan Servicing

701 Gateway 701 Gateway Blvd., South San Francisco, CA $46,900,000 3/11/2012

60-89 days delinquent.

LB 2007-C3; Midland Loan Services

Woodfield Crossing

8440 Woodfield Crossing Blvd., Indianapolis, IN $41,440,000 6/11/2012

90+ days delinquent.

CSFB 2007-C5; C-III Asset Management

Wells Fargo Bank Tower

100 N. Barranca Ave., West Covina, CA $39,700,087 12/11/2016


CSFB 2006-C5; LNR Partners

Foothill Plaza 27422 Portoloa Parkway, Foothill Ranch, CA $30,363,000 2/1/2010

Non-performing matured balloon.

GECAP 2005-C1; LNR Partners

Four Gateway 444 N. 44th St., Phoenix, AZ $21,760,000 7/1/2016


CSFB 2006-C4; Helios AMC

Oak Park Office Center

5850 Rogerdale Road, Houston, TX $20,679,556 12/1/2010


GECAP 2005-C1; LNR Partners

Plaza Nine 900 Route 9 North, Woodbridge, NJ $18,480,000 7/1/2017


MLMT 2007-C1; C-III Asset Management

Eastern Marketplace III

10120 S. Eastern Ave., Henderson, NV $10,500,000 11/11/2016

Late payment but less than 30 days delinquent.

LB 2007-C1; LNR Partners

Capital Towers 125 S. Congress St., Jackson, MS $8,495,416 8/11/2012


CSFB 2002-CKS4; KeyCorp Real Estate Capital Markets

100 East Pine Street

100 E. Pine St., Orlando, FL $8,165,103 1/11/2013


CSFB 2003-C3; C-III Asset Management

Metro Park Executive Center

4415 Metro Parkway, Fort Myers, FL $6,950,000 8/11/2016


CSFB 2006-C4; Helios AMC

300 First Avenue North Office Building

300 First Avenue North, Minneapolis, MN $3,921,486 3/1/2010


COMM 2000-C1; CW Capital Asset Management

Coral Ridge Financial Center

2419 E. Commercial Blvd., Fort Lauderdale, FL $3,677,552 7/1/2010


BofA 2002-2; LNR Partners

Colorado First Building

3204 & 3260 N. Academy Blvd., Colorado Springs, CO $3,500,000 10/1/2015


ML 2005-CKI1; J.E. Robert Co.

4035 Premier Drive 4035 Premier Drive, High Point, NC $3,173,931 3/11/2015


CSFB 2005-C2; J.E. Robert Co.

Pennington Office Park

8610 - 8630 S. Eastern Ave., Las Vegas, NV $1,821,632 8/1/2010


MSDW 2001-TP1; Berkadia Commercial Mortgage

Town & Country Professional Bldg

10405 - 09 Town & Country Way, Houston, TX $1,805,933 11/1/2010 Current.

CSFB 2001-CK1; Key Bank Real Estate Capital

Metroplex Office Complex

3310, 3320 & 3404 W. Cheryl Drive, Phoenix, AZ $1,720,762 11/1/2014


MSC 2005-IQ9; Midland Loan Services

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