Global Viewpoints

ARGUS Software CEO to Give Away $510K in Free Software in the Next 24 Hours

Written By:  Mark P. Kingston, CEO, ARGUS Software

In the next 24 hours, I am going to give away approximately $510K in ARGUS Software. Two individuals will receive the new ARGUS Enterprise investment-asset management solution or Lease CRM, our lease management solution, and two additional people will receive desktop licenses of ARGUS Valuation - DCF. The value for ARGUS Enterprise is approximately $250,000 per person and the value for ARGUS Valuation - DCF is approximately $5,000 per person.

ARGUS continues to operate profitably and with strength. We have over 90,000 users in 60+ countries around the world. I am willing to leverage this presence to help the industry. You helped make this company great, we want to give something back if possible.

We need to work together to break convention and find a new way to win. I am trying to provoke participation in the initiative that is defined below as a way of helping the industry.

Below I am offering all of you a game changing approach:

The Approach: If we concentrate our efforts, we can more definitively attack and change the direction of this market as a critical mass.

Steps:

1) Connect: The first step is to connect all commercial real estate participants and their relationships on LinkedIn.

2) Collaborate: I plan to invite and connect this same group to ARGUS Zone. This will provide us with a complete set of tools for collaborating and managing the execution of ideas generated from this effort.

3) Create Opportunities: Working together in force, we can quickly center the buyers, sellers and capital providers into an efficient platform that solves problems and creates new opportunities.

4) Open Access: We are already working with a number of other solution providers such as RIISnet and IDU (Japan); we have launched a new marketplace for private, public, auction and 1031 exchanges. This is the first global property exchange and it will open access to global as well as domestic investors. Expect more soon. Discussions are in progress.

5) Leadership: We are also organizing a panel of leading business advisors to lead online roundtable discussions regarding the market, operations, profit management and optimization. I am also seeking the participation of other leaders that want to engage with me in managing this approach. Ongoing strategy and execution can and will be collaborative. You are welcome to join efforts.

7) Meetings: Weekly, on the “ARGUS Commercial Real Estate Network” in LinkedIn, I will post a schedule of online meetings inviting you to participate in this effort.

What do you need to do right now? (see below)

The cost to join this effort is no more than five minutes of your time to complete the steps below; while the potential rewards are immeasurable.

Complete the steps below by tomorrow at 5:00 PM CST to be eligible for the free ARGUS Software licenses worth approximately $510,000. Four names will be drawn from the participants and the winners will be notified by 6:00 PM CST.

(Note: Some have already connected to me but not the group site. You need to complete both steps to be eligible)

Action required:

Step 1: Connect to me on LinkedIn.com:

1. First, log-in to http://www.linkedin.com/
2. Next, Go to your Inbox
3. Next, Choose the drop down arrow on “Compose Message” to select “Send Invitation”
4. Then, Input my name “Mark Kingston” with the email address “mkingston@argussoftware.com”
5. Last, Click the “Send Invitation” submit button

Or, If you not registered on LinkedIn;

1. First, log-in to http://www.linkedin.com/
2. Complete the registration
3. Next, Go to your Inbox
4. Next, Choose the drop down arrow on “Compose Message” to select “Send Invitation”
5. Then, Input my name “Mark Kingston” with the email address “mkingston@argussoftware.com
6. Last, Click the “Send Invitation” submit button

Step 2: Connect to the “ARGUS Commercial Real Estate Group”

1. First, log-in to http://www.linkedin.com/
2. Next, Go to “Search” drop down arrow and select “Search Groups”
3. Next, type “ARGUS Commercial Real Estate Network” into the search box
4. Then, when our group appears, select “join this group”
5. Last, Click the “Join Group” submit button

I look forward to working side by side with you to not only survive this crisis, but to emerge a stronger more efficient industry.

Note: This is not an attempt by me to sell our products. There is no individual benefit to me. I sincerely hope that we can help each other and the industry through the crisis. For the future, if you do not wish to be contacted regarding this effort, please send me a quick reply informing me to remove you from my distribution.

Rockefeller Recruits New SVP for CRE Investment Group

Edited: Jennifer Brenner Andrade
Source: Rockefeller

John D. Bottomley has been named Senior Vice President, Rockefeller Group Investment Management Corporation (RGIM). RGIM is a wholly owned subsidiary of The Rockefeller Group and was created in 2007 to coordinate The Rockefeller Group’s investment activities.

Prior to assuming this leadership position within RGIM, Mr. Bottomley was Managing Director and Global Product Specialist for Citi Property Investors, where he successfully launched three first-time regional opportunity funds, a global real estate securities platform, and two multi-manager real estate funds.

Mr. Bottomley has more than 25 years of marketing, real estate investment, and real estate lending experience. He started his career as a Management Associate with Citibank Canada. He progressed through Citi holding various positions in Citi Capital Markets & Banking, the Citi Private Bank, and the Travelers Insurance Company. He has served on management and investment committees in all of these organizations and has extensive relationships globally with institutional and high net worth investors and real estate operating partners.

“RGIM is very excited to be adding someone with John’s background and track record in institutional investing,” said Dennis R. Irvin, President and Chief Executive Officer of RGIM. “John’s experience will no doubt aid our efforts in developing and executing a fund-raising strategy targeted toward institutional investors. He will also work closely with me on expanding RGIM’s global presence as we look for partners for our real estate development program.”

Kevin R. Hackett, President and CEO of Rockefeller Group International, Inc. said, “Our strategic vision for RGIM is to create a leading global real estate investment management platform by leveraging the development skills, market presence, and brand recognition of both The Rockefeller Group and our parent, Mitsubishi Estate Company, Ltd. John will be a key player in accomplishing that.”

Mr. Bottomley holds a B.A. with honors in Economics from York University, Toronto, and an M.A. in Urban Planning and Regional Economics from the University of Waterloo, Canada.

Colorado Senior Living Project Snags $41 Million Construction Loan

Edited: Jennifer Brenner Andrade
Source: MGL Partners

MGL Partners, a development firm specializing in multi-family and mixed-use development, has completed the closing and funding of a $41.1 million construction loan for The Carillon at Boulder Creek, a 117-unit independent living project for seniors in the heart of Boulder, Colorado. The nine-story building will be delivered fully completed by late summer 2010 to the operating partner for the project, One Eighty, LLC, a privately-held operator of senior housing.

"In today's challenging economic times where the majority of commercial real estate financings have been delayed or cancelled, we are extremely pleased to complete this loan for The Carillon at Boulder Creek project," said Greg Glade, Principal and Co-founder of MGL Partners. "We believe this project will help successfully position MGL Partners for future projects that will also provide significant value to the communities they serve."

"We are excited to have such a strong partner for The Carillon at Boulder Creek," said Dan Madsen, Chairman and CEO of One Eighty, LLC. "This is a much needed project in a community that is well known for its challenging development environment. The Carillon will serve active seniors with a high quality, lively place to live in a central Boulder location."

The $41.1 million loan has a 40-year term and a 40-year amortization schedule at an interest rate of 6.35 percent. The loan is part of the Federal Housing Administration (FHA) 232 loan program and was originated by Amerisphere Financial and purchased by Evanston Financial. The loan is both construction and permanent with no interest rate or refinance risk at construction completion or through the 40-year term of the loan.

"The terms of the financing allow us to focus on our long-term investment in Boulder, rather than risks of rising interest rates and refinancing that typically accompany short-term construction loans," added Glade. "This allows us to remain invested in the Boulder community and add value for the long term."

Florida: $100M Portfolio for Sale in One of the USA’s Fastest Growing Counties

Written By: Jennifer Brenner Andrade

Boyd Development and Ocala Properties Inc. has placed a portfolio of 19 properties located in Ocala/Marion County Florida on the market at an asking price of $102.4M. According to the Ocala/Marion County Chamber of Commerce, this community of approximately 325,000 people is one of the fastest growing areas in the USA with several major industries driving the expansion including horse racing, construction, manufacturing and distribution, and services and tourism.

The portfolio itself is a diverse mix of income-producing properties such as the 102,066 square foot Boyd Market Center with credit-worthy tenants including Crispers, Michaels and Stein Mart, and commercial land tracts such as the 51-acre Oxford Crossings property which has the architectural and engineering plans completed for 600 approved multifamily units.

“The defining attribute of this portfolio is its readiness,” notes seller and developer Chris Boyd of Ocala-based Boyd Development Co. “The income-producing properties are filled with strong, established retail and industrial tenants and the majority of the commercial land tracts have all of the permits and entitlements necessary to begin development immediately. This portfolio is ready and flexible for any use or acquisition strategy.”

Although this portfolio is located in central Florida, Boyd says the feel and cost of living is more like “middle America” with a good demographic balance of incomes, industries and optimism. The area has a healthy share of retirees from the Eastern US as well as many horse farms which rival Lexington, KY for the title of the “Horse Racing Capital of the USA.”

The portfolio consists of five income-producing properties with a combined asking price of $30.8M as well as 14 commercial land tracts with a combined asking price of $71.6M. To learn more about this portfolio, visit the due diligence documents posted in the Boyd Development deal room on ARGUS Zone. Click here to register for an invitation and information on the portfolio.

Land Securities sells 22 Kingsway for £39 million

Edited: Jennifer Brenner Andrade
Source: Land Securities

Land Securities  has completed the sale of 22 Kingsway, London WC2 to an overseas client of Jones Lang LaSalle for approximately £39 million, reflecting a yield of approximately 7.55%.

Land Securities is a UK leading Real Estate Investment Trust that has a large portfolio of commercial property in London and UK regional cities. The portfolio comprises over 50 retail parks and shopping centres including the quadruple award winning Cabot Circus in Bristol and Princesshay in Exeter. It is also a provider of office accommodation in London owning properties such as the Piccadilly Lights, Westminster City Hall, Cardinal Place in Victoria and the newly created New Street Square complex in Midtown.

22 Kingsway in London consists of c. 91,400 ft2 (8,490 m2) of offices let to The Secretary of State until September 2025 subject to a break in 2021 and a 1,000 seat theatre let to The London School of Economics. Jones Lang LaSalle advised the purchaser.

IVG brings new EuroSelect Funds with KPMG headquarter in Amsterdam to the market

Edited: Jennifer Brenner Andrade
Source: IVG Immobilien AG

IVG Immobilien AG has now launched its new closed-end real estate fund “EuroSelect 17 Office Center Amstelveen”. After the successful placement of the Luxembourg Funds now a top-notch office building ensemble south of Amsterdam which is almost completed comes next. The Dutch subsidiary of the auditors KPMG has leased the property long-term as corporate headquarters. The annual payout is expected to be 5.15 per cent after taxes.

Georg Reul, IVG board member in charge of the Funds Division: “Private investors are looking for sound investments at the moment. The Amstelveen Office Center is notable for its outstanding infrastructure link to metropolitan Amsterdam and the excellent quality of the property. The new building has been developed following KPMG’s wishes and has been leased for 15 years. This offers an opportunity for stable profits for our private investors“.

This is the second time that IVG Funds is investing in the Netherlands. In 2005 an office property in Amersfoort was offered for investment and so far has not only met expectations but succeeded in providing investors with a special payout of one percent for the second half of 2008.

Amsterdam – an economically successful metropolitan region

The office is located in the region of Greater Amsterdam directly adjacent to the A9 motorway between Amsterdam and Schiphol airport. The district has developed into a demanded office location. The relatively limited supply of high-quality Grade A space makes the location interesting for investors over the long term. Over the short- and medium-term, the Amstelveen Office Center will presumably be the only noteworthy new office space coming to market.

Unusual fund property

The impressive office ensemble of the architect office Marcel van der Schalk has been designed and developed following the ideas and needs of KPMG. Altogether the property has 6 office sections. The fund property – building sections A, B and C with a rental space of 37,525 sq. m. – is equipped according to very high standards and is remarkably energy-efficient. The complex is scheduled for completion during 4th quarter 2009. Purchase price will be €159.3 million. The additional three building sections, which are also been used by KPMG, are property of institutional Spezialfonds of IVG. Therefore, IVG will be manager of the whole office ensemble for the long run.

KPMG is sole tenant The fund property has been let initially for fifteen years to KPMG, the international auditing company. After ten years the tenant will have a special right of termination for up to 20,000 sq.m. or approximately 55 percent of the space. The rental price is indexed and is oriented to the Dutch consumer price index.

The investment offer

The investment volume totals €179.4 million. With an equity capital of €99.4 million (€94.7 million plus 5 percent premium) the fund shows a solid capital ratio of 55 percent.

• Minimum investment: €10,000
• Premium: 5%
• Subscription period: Until 19 November 2009
• Planned maturity: Twelve years
• Limited liability capital: €94,7 million (plus 5% premium)
• Type of income: Mainly income from letting and leasing
• Planned payout: Average of 5.15% p.a. after taxes

IVG Immobilien AG

IVG Immobilien AG is one of the major real estate companies in Europe. The company is focused on office properties and caverns. Via its network of local branches in selected major German and European cities with approx. 700 employees, IVG currently manages, inter alia, its own properties with a market value of € 6.1 billion, as well as specialised funds and mandates for institutional investors with a volume of € 12.0 billion and closed-end funds with a volume of € 3.3 billion. Overall, IVG manages assets worth more than € 22 billion.

Aberdeen Property Investors wins €1.4 billion property asset management mandate for Gamla SEB Trygg Liv in Sweden

Edited: Jennifer Brenner Andrade
Source: Aberdeen Property Investors

Aberdeen Property Investors has signed an agreement with Gamla SEB Trygg Liv, part of Swedish SEB bank, regarding the property asset management of their property portfolio in Sweden. Aberdeen won the mandate in a competitive tender.

Aberdeen Property Investors is the dedicated property investment division of Aberdeen Asset Management PLC, a global investment management group listed on the London Stock Exchange, which manages around €104 billion of assets in equities, fixed income and property.

The portfolio has a market value of approximately €1.4 billion (SEK 15 billion) and consists mainly of offices with elements of retail in Stockholm inner city, and properties in Gothenburg, Uppsala, Malmö and Helsingborg. The portfolio comprises 72 properties in total with an area of approximately 525,000 square meters.

Jan Sööder, MD Aberdeen Property Investors Sweden, commented:

“We are proud to have won this prestigious mandate and look forward to working together with Gamla SEB Trygg Liv. Aberdeen Property Investors represents high quality in management and development of properties that historically has generated good results for our clients. I am very pleased that we now get the opportunity to produce good returns in Gamla SEB Trygg Liv’s property portfolio.”

Marita Loft, SEB commented:

“In a combined evaluation of quality and price, we chose Aberdeen Property Investors, who offered the best total solution.”

Aberdeen Property Investors mandate for Gamla SEB Trygg Liv will commence at the beginning of 2010.

The Gamla SEB Trygg Liv mandate will more than double Aberdeen Property Investors property assets under management in the Swedish market. The company now manages approximately €3.1 billion (SEK 33 billion) of assets through property funds and separate account mandates for institutional clients.

Clinton Climate Initiative to Work with Property Developers in 10 Countries on Six Continents

Edited: Jennifer Brenner Andrade
Source: The Clinton Climate Initiative

The Clinton Climate Initiative (CCI), a project of the William J. Clinton Foundation initiated a global program developed in collaboration with the U.S. Green Building Council (USGBC), called the Climate Positive Development Program. The program will support the development of large-scale urban projects that demonstrate cities can grow in ways that are “climate positive.” Climate Positive real estate developments will strive to reduce the amount of on-site CO2 emissions to below zero.

Sixteen founding projects on six continents, supported by local governments and property developers, will demonstrate Climate Positive strategies, setting a compelling environmental and economic example for cities to follow.

Last year, for the first time, half the world’s population (3.2 billion people) lived in cities, and that figure is expected to grow to 70 percent by 2050. Cities also occupy just 2 percent of the world’s landmass, yet are responsible for more than two-thirds of global energy use and greenhouse gas emissions. Rapid urban growth and climate change are putting our world’s cities in a vise grip of escalating infrastructure, energy, and health and human services costs that will be magnified by the pressure of climatic adaptation. How cities change and grow is therefore a critical component to tackling the climate crisis.

“As the Earth’s population increases and our cities grow, we need to ensure we have the models in place to sustain our way of life in an increasingly urbanized world,” President Clinton said. “The Climate Positive Development Program will set a new global standard for developments that will minimize environmental impacts and benefit economies as we build and rebuild homes, schools, and businesses. Today’s announcement builds off the work my Foundation and the C40 have done to initiate large-scale projects in more than 40 cities that are already reducing greenhouse gas emissions and making a significant impact in the fight against climate change.”

To reduce the net greenhouse gas emissions of these projects to below zero, property developers and local governments will agree to work in partnership on specific areas of activity. This includes implementing economically viable innovations in building, the generation of clean energy, waste management, water management, transportation, and outdoor lighting systems.

When the initial 16 projects are completed, nearly one million people will live and work in Climate Positive communities. These communities will be located in: Melbourne, Australia; Palhoça, Brazil; Toronto, Canada; Victoria, Canada; Ahmedabad, India; Jaipur, India; outside Panama City, Panama; Pretoria, South Africa; Johannesburg, South Africa; Seoul, South Korea; Stockholm, Sweden; London, UK; San Francisco, USA and Destiny Florida, USA.

By combining CCI's business and finance expertise with the technical knowledge of the USGBC, the Climate Positive Development Program will support the planning and implementation process for each real estate development and establish the standards and metrics by which the sites can measure climate positive outcomes.

USGBC President, CEO, and Founding Chairman Rick Fedrizzi commented, “A program that aims to set a new global benchmark has to be set on solid metrics. We know this from our experience with LEED, and believe it’s fundamental to delivering immediate and measureable results.”

“We know that when it comes to combating the threat of climate change, cities are acting in many ways,” said Toronto Mayor David Miller, Chair of the C40 Group of large cities leading on climate change. “Climate Positive is yet another way cities will be able to continue to lead this important fight. This initiative is particularly important as the world becomes more urbanized and I want to thank CCI for making it a reality.”

“I am sure our effort to fight global warming will be a successful one if initiatives like the Climate Positive Development Program continue to be widely accepted around the world,” said Oh Se-hoon, Mayor of Seoul.

The William J. Clinton Foundation launched the Clinton Climate Initiative (CCI) to create and advance solutions to the core issues driving climate change. Working with governments and businesses around the world to tailor local solutions that are economically and environmentally sustainable, CCI focuses on three strategic program areas: increasing energy efficiency in cities, catalyzing the large-scale supply of clean energy, and working to measure and value the carbon absorbed by forests. In each of these programs, CCI uses a holistic approach to address the major sources of greenhouse gas emissions and the people, policies, and practices that impact them. CCI serves as the action arm of the C40, an association of large cities around the world that have pledged to accelerate their efforts to reduce greenhouse gas emissions.

Al Fajer Properties Deploys $75M on Phase Two of Jumeirah Business Center

Edited: Jennifer Brenner Andrade
Source: Al Fajer Properties

Al Fajer Properties (AFP) has deployed approximately $75 million of capital on phase two of its approximately $490 million JBC (Jumeirah Business Center) Project. The second phase consists of four commercial buildings, three of which are known as the Ebony and Ivory towers. All four towers conform to green building codes complementing the green mandate set out by the Dubai Government and once handed over, will add an additional 1.6 million sq ft of office space and 66,000 sq ft of retail space within the Jumeirah Lakes Towers (JLT) Community.

Given the tremendous progress on phase one which consists of five towers, which are due to be handed over at the end of this year, His Highness Sheikh Maktoum bin Hasher, President of AFP, was quoted as saying, “Our continued investment within Dubai is a strong indication of our belief in the sustainability of the city and the country as a whole and that capital is starting to flow back into the economy once again. We look forward to delivering on our commitments to our customers in record time.”

AFP is the developer of the Dubai World DMCC Jumeirah Lakes Towers (JLT) community and is the only developer to include a five-floor atrium within the lobbies of its towers. Its nine towers, situated within a free- zone, once completed will offer high-end commercial properties attracting both large local companies and multi-national organizations from around the world. The unique state-of-the-art facilities of the JBC Towers cumulatively offer exclusive freehold offices totaling a leaseable area of 3.6 million square feet and an additional 150,000 square feet dedicated to retail across all nine towers.

Duke Realty to Develop $154M Cancer Center for Baylor University

Edited: Jennifer Brenner Andrade
Source: Duke Realty Corp.

Duke Realty Corp., an office, industrial and healthcare REIT based in Indianopolis, has commenced the development of the new Baylor Cancer Center, a 460,000-square foot, $154 million outpatient cancer treatment center at Baylor University Medical Center at Dallas.

Baylor University Medical Center at Dallas is a nationally recognized notfor- profit hospital that cares for more than 300,000 people each year and has over 1,000 licensed beds.

The project will be owned by a newly created joint venture between Duke and Northwestern Mutual with the majority of the venture owned by Northwestern Mutual. Duke will receive development and leasing fees during development and construction. BremnerDuke Healthcare Real Estate, a division of Duke Realty Corporation, will manage the asset following completion.

When completed, the Baylor Cancer Center is expected to receive LEED® silver certification and will be among the premier cancer centers in the nation. The 10- story facility will include cancer treatment services, clinical and physician space, oncology research, conference facilities and underground parking for 250 cars.

The project is 93 percent pre-leased to Baylor Health Care System, and US Oncology, Inc., one of the nation’s leading oncology services companies. “Duke is extremely proud of this transaction and our ability to perform under the current market conditions. The relationship with Baylor continues to grow, as this is the fourth project we have started for Baylor in the past 18 months. We are honored by the trust and confidence they have placed in us,” said Dennis D. Oklak, chairman and chief executive officer of Duke.

“The Baylor Cancer Center illustrates our commitment to healthcare development and ownership as crucial elements of the company’s long-term growth strategy.” Oklak continued, “Northwestern Mutual’s decision to form a joint venture with us indicates the long-term potential of the project and the healthcare expertise of BremnerDuke.”

BremnerDuke Healthcare Real Estate began its relationship with Baylor in 2007. In addition to the Baylor Cancer Center, BremnerDuke is developing a 141,000- square foot seven-story medical office building at Baylor Regional Medical Center at Plano (Texas), a three-story, 81,400-square foot professional office building for Baylor Heath Care System on the campus of Baylor University Medical Center at Dallas, and an orthopedic hospital in Arlington, Texas for a joint venture of which Baylor Healthcare System is a major owner.

Savills LLC, the real estate banking firm headquartered in New York City with affiliated offices throughout Europe and Asia, represented Duke in the formation of the Baylor Cancer Center joint venture.