Midland Loan Services goes high-tech on the Internet Kansas City, Mo.-based Midland Loan Services, a national real estate financial services firm, has started a comprehensive loan servicing program for information on commercial mortgage-backed securities (www.midlands.com for up-to-date information on the CMBS market.) via the Internet. By accessing reports on the Internet, capital market participants will now be able to quickly receive CMBS performance characteristics facilitating critical buy, hold and sell trading decisions. Midland's website can be visited at
Trammell Crow Co. commences with initial public offering Trammell Crow Co., a Dallas-based diversified commercial real estate services company, has generated its initial public offering (IPO) and has issued 5 million shares of common stock at $17.50 per share. All the shares were offered by the company and are being traded on the New York Stock Exchange under the symbol TCW.
AEW Capital Management signs to manage Alaska REIT AEW Capital Management, a Boston-based investment advisory service for property and securities investors, has been selected to manage a $300 million diversified public REIT being constructed for the Alaska Permanent Fund Corp. (APFC) based in Juneau, Alaska. AEW will invest the funds into numerous REITs during the next 18 months. The allocation will complement APFC's existing $1.3 billion portfolio of privately held real estate assets. APFC administers the $22.4 billion Alaska Permanent Fund, a 20-year-old public trust, established for the benefit of Alaska's current and future generations.
Insignia Financial completes $69 million acquisition Greenville, S.C.-based Insignia Financial Group, a fully integrated real estate services firm, has closed the acquisition of 100% of the Class-B stock from Boston-based First Winthrop Corp. and a general partnership interest in Winthrop Financial Associates for $69 million. In the transaction, Insignia receives the exclusive right to direct the partnership, which controls the ownership of 47 apartment communities comprising nearly 16,500 units. The properties have a gross capitalization in excess of $400 million. The limited partnership interests acquired by Insignia range from 6% to 35% of the ownership of the properties. Insignia expects the transaction to contribute approximately $9.5 million in combined funds from operations commencing this month.
Prime Retail and Horizon Group enter definitive merger talks Prime Retail, a Baltimore-based REIT engaged in the ownership and development of factory outlet centers, has approved via its board of directors to enter into a definitive agreement to merge with Norton Shores, Mich.-based Horizon Group. The shareholders vote will take place in the first quarter of 1998. With the possible merger in 1998, Prime Retail will own and operate 43 outlet centers, including 20 of Horizon's existing 37 centers, making it the nation's largest owner of outlet product. Theis worth nearly $906.3 million, which includes a debt amount of $540.4 million.
Boston Properties agrees to buy 1.3 million sq. ft. portfolio Boston Properties Inc., Boston, a fully integrated, self-managed REIT, has entered into an agreement to acquire the $252.9 million portfolio of Mulligan/Griffin and Associates, a commercial real estate service firm based in Rockville, Md. The acquisition is scheduled to close in February and includes nine Class-A office buildings totaling 1.3 million sq. ft. in the Washington D.C, Reston, Va., Rockville, Md., and Springfield, Va., markets.
WMF Huntoon Paige closes rehab loan worth $42.8 million Atlanta-based WMF Huntoon Paige, part of the WMF Group based in Vienna, Va., has closed one of the largest rehabilitation loans under the FHA's Sec. 220 Urban Renewal Program. The $42.8 million loan, which closed in October 1997, will be used to rehab the Park Chase Apartments in the St. Louis market. Park Chase is a four-building complex with 477 units and more than 140,000 sq. ft. of commercial space. The transaction is a 40-year term loan with full amortization at 7.38%.
Nomura Capital Corp. receives $3 billion agreement in principal At year-end 1997, New York-based Nomura Capital Corp. (NCC) had reached an agreement, in principal, with Morgan Stanley Mortgage Capital Inc. providing Nomura with $3 billion for use in its commercial mortgage origination efforts. In addition, Nomura Capital agreed to name Morgan Stanley & Co. as joint book running manager, along with Nomura Securities International, for its next two offerings of CMBS, which are expected to exceed $5 billion.
NCC also financed more than $125.7 million for two significant transactions. First of all, a $75 million first mortgage loan and $15 million of mezzanine financing for the re-capitalization and renovation of the 1,068-room Westin Peachtree Plaza Hotel in Atlanta, the tallest hotel in the Western hemisphere. The first mortgage is a 15-year loan at 25-year amortization. The mezzanine loan is 7.5-year maturity with the first 18 months floating at a spread over LIBOR by a six-year fixed rate. Also, Nomura financed $50.77 million for the acquisition of the Century Building in Washington, D.C. The loan was obtained by Greenwich, Conn.-based J.S. Karlton Co. and was issued at 10-year term with 30-year amortization at 8.38%.