Julian, Toft & Downey merges with Transwestern

Transwestern Commercial Services, Chicago, has acquired Julian, Toft & Downey Inc. (JTD), a Chicago-based real estate financial advisory firm specializing in financial transactions for institutional clients in the Midwest. With the deal, Transwestern will add 50 investment services professionals in seven cities.

For the past 15 years, JTD has been an intermediary for debt, structured financing, joint ventures and signature-asset sales.

Since its inception, JTD has arranged more than $7 billion in business transactions, including $4.6 billion in loans and $2.4 billion in property sales. Sales of downtown Chicago office buildings totalled $2 billion. The company has financed more than 10,000 high-rise and garden apartment units, 9 million sq. ft. of retail properties, 20 million sq. ft. of industrial buildings and 4,100 hotel rooms.

Transwestern Chairman Randall Rowe said the merger will help the company expand its relationships with institutional clients nationwide and broaden its full-service platform. In 2000, Transwestern arranged $2 billion in real estate equity and financial services transactions, while leases exceeded 23 million sq. ft. and property management totalled more than 100 million sq. ft.

David A. Downey and Gaylord L. Toft, the two principals at JTD, will join Transwestern. Also joining Transwestern will be Carolyn Greathouse, Thomas McHugh Jr., David Costello and Robert Ryan Jr.

Boston Properties, Allied purchase Citigroup Center

Boston Properties and New York-based Allied Partners recently formed a joint venture to purchase Citigroup Center in Manhattan for $725 million.

The 59-story, 1.65 million sq. ft. mixed-use complex, occupies the majority of a New York block between Lexington and Third avenues, and 53rd and 54th streets. Dai-ichi Life Investment Properties Inc., a Japanese insurance company, sold the property, which it had owned a major stake in since 1987. The property was built in 1978.

Chciago-based Jones Lang LaSalle completed the transaction on behalf of Dai-ichi.

Regency Centers divests retail center to O'Hearn Trust

Regency Centers, a Jacksonville, Fla.-based retail REIT, completed the $14.65 million divestiture of a big-box retail building located in San Fernando, Calif., to O'Hearn Trust, a private investment company, based in Oxnard, Calif.

The 106,000 sq. ft., big-box retail building is located on 8.7 acres. The building is fully leased to Home Depot, and the Atlanta-based retailer plans to expand its facilities at the site. Colliers Seeley, Los Angeles, and Encino, Calif.-based Marcus & Millichap represented Regency Centers in the transaction. Westcord Commercial represented O'Hearn Trust.

BentlyForbes acquires RSA office headquarters

BentlyForbes, Los Angeles, acquired the corporate office headquarters property of Englewood Colo.-based RSA Cos. Inc. in a $11 million sale-leaseback transaction.

The property includes a four-story, 65,179 sq. ft. Class-A office development and two paved parking lots on 5.3 acres in Englewood's Southfield Business District.

At the same time of the sale closing, BentleyForbes leased the property back to RSA Cos. on a triple-net, 20-year lease with renewal options. Dallas-based Trammell Crow brokered the deal. Boston-based John Hancock Life Insurance Co. provided the financing for the property.

Bear, Stearns funds W Hotel $145 million loan package

Bear, Stearns Commercial Mortgage Inc., the commercial mortgage subsidiary of Bear Stearns & Co., New York, funded a 12-month, $145 million floating-rate loan on the W Times Square Hotel in New York.

The hotel located at 1567 Broadway, Times Square, is scheduled to open in September 2001. The hotel consists of 567 rooms in a 53-story building. It has a long-term net lease to Starwood Hotel & Resorts Worldwide Inc. New York-based Meridian Capital Funding brokered the transaction.

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Snapshot of First-Quarter Lending by Insurers

Based on long-term, fixed-rate, commercial-mortgage commitments
Total Amount ($Mil.) Average Amount ($Mil.) Loan to Value (%)
1. Office $2,454.1 $12.8 67.3
2. Industrial $ 962.8 $ 6.0 69.1
3. Retail $ 711.1 $ 5.7 69.3
4. Muiltifamily $ 507.8 $ 8.6 63.6
5. Hotel $ 326.0 $20.4 63.8
6. Other $ 166.1 $ 5.7 70.5
7. Total $5,224.9 $ 9.0 67.3
Source: American Council of Life Insurers