Top Stories

Chicago — General Growth Properties has approved a plan to spin-off 30 malls to a newly formed entity, Rouse Properties, Inc. Rouse is expected to qualify as a real estate investment trust and be listed on the New York Stock Exchange. The new Rouse portfolio will consists of 21.1 million square feet, and the portfolio is currently 87.7 percent leased. The portfolio includes centers in a mix of primary and secondary markets, such as The Boulevard Mall in Las Vegas; Collin Creek in Plano, Texas; Chula Vista Center in San Diego; Cache Valley Mall in Logan, Utah; Birchwood Mall in Port Huron, Mich.; and Bayshore Mall in Eureka, Calif. The company said in a statement that while other divestiture options were considered, the spin-off best enables shareholders to participate in the upside potential of these centers. Shareholders of GGP common stock will receive a taxable special divided, expected to be comprised of common stock in Rouse Properties.

SPRINGFIELD, MO., AND EDMOND, OKLA. — United Trust Fund (UTF) has completed two build-to-suit/sale-leaseback transactions with a total value of $203 million with Sisters of Mercy Health System. The properties include a 196,000-square-foot to-be-built orthopedic hospital in Springfield, as well as a 225,000 square foot to-be-built medical office building in Edmond, for which UTF simultaneously provided the capital. Both of the transactions were structured as a forward funding build-to-suit/sale-leaseback, and the development cost is $111 million for Springfield and $92 million for Edmond. Sisters of Mercy is one of the largest Catholic Health Systems in the U.S., and while they had a builder, they had other demands, according to Paul Domb, asset management with United Trust Fund, including: Funding of construction at low cost of capital; To sign a lease that would begin upon completion of construction at pre-determined rents based upon today’s low cost of capital; Immediate close; UTF to pay for everything in order to achieve favorable accounting treatment; and Certainty of closure. “There are companies that understand and view this structure as a cost effective and balance sheet friendly means to expand their presence without any outlay of capital,” says Domb. “The result of this innovative sale …

NEW YORK CITY — The Westfield Group (ASX: WDC) has agreed in principle with The Port Authority of New York and New Jersey on the commercial terms for a joint venture of the retail component at the World Trade Center site. Westfield will invest $612.5 million for a 50 percent share of the joint venture, which is subject to potential increases of up to $37.5 million based on achievement of agreed yield targets. The investment will be funded progressively after the closing throughout the development period. The transaction is subject to completion of legal documentation, due diligence and final Board approvals and is expected to close in fourth quarter 2011. The Port Authority and Westfield will work together to develop the retail facilities, with Westfield assuming responsibility for management and leasing on behalf of the joint venture. Plans for the retail premises currently include approximately 365,000 square feet of leasable space spread across multiple levels including in the new WTC Transportation Hub, with concourses that will connect throughout all portions of the site, as well as at street level and above grade in Three and Four World Trade Center. It is anticipated that an additional 90,000 square feet of retail …

BOSTON & SAN FRANCISCO — CWCapital, a subsidiary of CW Financial Services and a full-service, national lender to the multifamily real estate industry, has launched of its multifamily life company lending platform to complement CW’s existing offerings through Fannie Mae, Freddie Mac and FHA. This addition underscores the company’s commitment to providing new, competitive sources of funding for its expanding customer base. CWCapital currently services a portfolio of $13 billion in loans in 48 states. The multifamily life company initiative will be led by Tom MacManus, managing director for CW and president and COO of ARA Finance, the joint venture finance platform of Apartment Realty Advisors and CW. CW also recently hired Mischa Guenther, former director of Wells Fargo’s New York multifamily division, as senior vice president. Guenther will be responsible for managing relationships with and proposals for life companies for CW’s customers. Also hired was Mark Plenge, vice president in the firm’s San Francisco office. Plenge has significant experience in life company financing and recently closed the firm’s first life company deals. Funded by ING, the loans provided $28 million in refinancing for two multifamily property portfolios in the San Francisco Bay Area, which includes the S-101 Management Portfolio …

GREENSBORO, N.C. — Greensboro-based Bell Partners Inc. has sold a 22-property senior living portfolio for more than $300 million to Senior Housing Properties Trust (SNH), a public REIT. This disposition plays a key role in a Bell Partners' strategic shift over the last 18 months, as the company focuses on its position as an apartment ownership and management company. Jefferies, a global securities and investment banking group, represented the Bell Partners ownership entities in the sale process. Steve Bell, Bell Partners CEO, cited factors in the timing of the portfolio sale, including attractive lending interest rates, a strong market for acquisition of senior living assets, and a general backlog of investment cash from prospective buyers, particularly public REITs. “Taking all circumstances into account, Bell Partners had a duty to its investors to investigate a sale,” said Steve Bell. “The timing of the sale appears very good and in the best interest of our clients. In these challenging times, it’s nice to be able to make major cash distributions to our investors.” The sale of these 22 assets comprises nearly all of the company's senior living properties, and the company expects to follow this deal with four more property sales by …

Baltimore — On the heels of closing a $190 million portfolio deal, Jones Lang LaSalle reports excellent conditions in the multifamily markets for the Baltimore and Washington, D.C. regions. Most recently, on behalf of SRH/CMS Berkshire Limited Partnership, the firm’s Capital Markets experts have facilitated the sale of a portfolio of multifamily properties in metropolitan Baltimore. Harbor Group International purchased the six-property, 1,984-unit portfolio for $190.1 million. Leading the Jones Lang LaSalle team on this assignment were Managing Directors Al Cissel and Scott Melnick and Senior Vice President Christine Espenshade. “This portfolio, while all in the same submarket, offers a range of different product types for potential renters making it appealing on numerous levels,” says Cissel. “There was a significant amount of interest in the portfolio due to its size, as we continue to see investors looking for large acquisitions that offer increasing cash flow and economies of scale. This portfolio was attractive to the buyer because of the upside potential as there a number upgraded and achieving higher rents.” The properties included in the portfolio are: Crosswinds at Rolling Road, 808 units at 7500 Hithergreen Drive in Baltimore (pictured below) Diamond Ridge, 92 units at 2 Heatherton Court in …