Everen Securities underwrites $1 billion in transactions Chicago-based Everen Securities' Real Estate Group served as underwriter or adviser to approximately $1 billion in funding for 12 transactions over the last six months. The capital-raising efforts were concentrated in the common equity and preferred markets, and included multiple offerings for existing companies as well as four initial public offerings (IPOs). The IPOs will include two for commercial office REITs, one for a mortgage banking REIT and another for time-share resorts. In 1996, Everen's Real Estate Group raised nearly $2 billion in capital markets throughout the nation. The firm's network covers 1,250 consultants in 135 offices nationwide.
First Franklin Financial completes $141.5 million in loans First Franklin Financial Corp., a San Jose, Calif.-based wholesale sub-prime financial lender, successfully completed the securitization of sub-prime loans totaling $141.5 million in this year's second transaction underwritten by Merrill Lynch. The first securitization in 1997 was for $112.6 million, bringing First Franklin's year-to-date securitization totals to $254.1 million. To meet demand, First Franklin has opened new offices in Denver, Las Vegas and San Bernardino, Calif. The firm originated approximately $440 million in sub-prime loans in 1996 and projects nearly $1 billion for this year.
Cornerstone Properties converts more than $166.5 million New York-based Cornerstone Properties Inc. (NYSE:CPP) and its two largest shareholders, Hexalon Real Estate Inc. and The New York State Teachers' Retirement System (NYSTRS), have converted their preferred shares into common shares. The conversion was based upon a predetermined average share price set at the time of a $166.5 million private placement of preferred equity to Hexalon and NYSTRS in November 1996.
Upon meeting the target of having an average share worth in excess of $16, Hexalon and NYSTRS were contractually obligated to convert their shares. After the conversion, Cornerstone has more than 28.6 million shares outstanding, of which NYSTRS owns nearly 6.9 million shares and Hexalon owns more than 4.58 million shares. Cornerstone Properties currently owns eight Class-A office properties in the United States comprising approximately 5 million sq. ft. of rental space.
CarrAmerica completes preferred stock offering worth $175 million CarrAmerica Realty Corp. (NYSE:CRE), a Washington, D.C-based corporation, sold 7 million shares of 8.57% Series B Cumulative Redeemable Preferred Stock at $25 per share. The preferred stock, which may be called by the company at par on or after Aug. 7, 2002, has no stated maturity, sinking fund or mandatory redemption into any other securities of the company. The net proceeds of the offering, before the giving of the over-allotment option, are worth nearly $169 million. When the over-allotment option is completed by the underwriters, which includes New York-based Goldman, Sachs & Co., an additional 1.05 million shares can be purchased to complete the $175 million perpetual preferred offering.
California's largest residential land deal worth $34.5 million In the largest residential land transaction in California this year, located in Beaumont, Calif., Dallas-based Oak Valley Hunt L.P. has purchased approximately 6,741 acres from the Federal Deposit Insurance Corp. for $34.5 million. The acreage will be used for a master-planned community called Oak Valley; the project is entitled for up to 13,000 dwelling units, four 18-hole golf courses, a business park and a commercial center. CB Commercial represented both sides of the transaction.
Prime Retail arranges $60 million for preferred equity investment Baltimore-based Prime Retail Inc. (NASDAQ: PRME, PRMEP) has entered into an agreement with an institutional investor to which a new series of cumulative, convertible preferred securities are to be issued in exchange for an aggregate $60 million. The funds will be used to continue the acquisition and development programs of Prime Retail. The convertible preferred equity securities will be issued at $13.75 per unit, an initial $10 million of the proceeds will be drawn during September 1997 and the balance may be drawn through Dec. 6, 1997. As of June 1997, Prime Retail's portfolio includes 24 outlet centers in 18 states, which total approximately 6.1 million sq. ft. of gross leasable area that has an average occupancy rate of around 94%.
Cali Realty Corp. signs letter of intent for billion-dollar merger Cranford, N.J.-based Cali Realty Corp. (NYSE: CLI) signed a letter of intent to merge the office assets of the Mack Co., a N.J.-based private real estate concern, and Dallas-based Patriot American Office Group into a REIT called Mack-Cali Realty Corp. The $1.2 billion transaction,the largest private-to-public deal in REIT history, will create one of the nation's largest REITs with a total market capitalization of $3.3 billion. The terms of the transaction are that Cali will pay $476 million in cash, assume $302 million in mortgage debt, issue 3.9 million shares common operating units in Cali Realty L.P., issue $250 million in preferred operating units in Cali Realty L.P. and issue warrants to purchase 2 million shares of company stock at $37.80 per share. The transaction is expected to be completed around the end of 1997.