Global Viewpoints

Digital Realty Trust, L.P. Agrees to Sell $100 Million of Its Senior Unsecured Term Notes to Prudential

Edited: Jennifer Brenner
Source: Digital Realty Trust, Inc.

Digital Realty Trust, Inc., the world's largest wholesale datacenter provider, announced today that its operating partnership, Digital Realty Trust, L.P., has agreed to sell $100.0 million aggregate principal amount of its senior unsecured term notes to Prudential Investment Management, Inc. and certain of its affiliates.

The notes will be issued in two series referred to as the series D and series E notes. The series D notes will have a principal amount of $50.0 million, an interest-only rate of 4.57% per annum and a five-year maturity, and the series E notes will have a principal amount of $50.0 million, an interest-only rate of 5.73% per annum and a seven-year maturity. The Company intends to use the proceeds of the series D and series E notes to fund acquisitions and for working capital. The purchase and sale of the series D and series E notes is scheduled to close on January 20, 2010, subject to satisfaction of closing conditions.

"Accessing attractively priced capital from a variety of sources has been the cornerstone of our funding strategy and continues to support the growth of our Company," commented A. William Stein, CFO and chief investment officer of Digital Realty Trust. "Upon closing, today's announced transaction will represent the fourth draw from the three-year, multi-currency, $200 million unsecured Prudential shelf facility that was established in July 2008."

Colliers Gets Exclusive Marketing Gig for Iconic Vietnamese Office Property

Edited: Jennifer Brenner
Source: Colliers International Vietnam

Colliers International Vietnam has been appointed as the Exclusive Marketing and Property Management Agent for the Bitexco Financial Tower.

The Bitexco Financial Tower, located in the heart of Ho Chi Minh City’s business and entertainment district near to both Nguyen Hue street and Ham Nghi street, is indeed the most exciting development under construction in Vietnam today. Upon completion Bitexco Financial Tower will revitalize the traditional financial centre of Ho Chi Minh City.

World renowned American Architect, Carlos Zapata drew inspiration for this sky scraper’s unique shape from Vietnam’s national flower, the Lotus. Upon completion, the building will rise 68 floors above the heart of Ho Chi Minh City defining the city’s skyline and will become an iconic symbol of Vietnam’s rapid economic development.

This truly landmark building scheduled for opening in October 2010 will be Vietnam’s tallest building housing over 37,000 sqm’s of International Grade A office space and just over 11,000 sqm’s of retail space located in a 6 storey retail podium. The retail and office areas will be serviced by Vietnam’s first double-decker Otis elevators which are capable of reaching 7 metres per second far surpassing the city’s fastest existing elevators.

In addition to International Grade A commercial areas the Bitexco Financial Tower will offer a Public Sky Lounge on the 47th and 48th floor as well as an Executive Sky Lounge on the 49th and 50th floor ensuring that unparalleled views of the city are offered in what will be Saigon most exclusive lounge.

The Bitexco Group one of Vietnam’s leading local developers has assembled a high-profile international development team in which Hyundai E&C from Korea are the main contractor and all work is overseen by Turner International, a Project Management firm from the United States which has over 100 years of experience in managing high-profile construction projects including the Burj Dubai, which upon completion will be the world’s tallest tower as well as Taipei 101 which is currently the world’s tallest building.

The development team’s expertise in building some of the world’s tallest skyscrapers is further strengthened by the addition of LERA as the Structural Engineers who were also responsible for the structural engineering of the Shanghai World Financial Tower which stands at 95 storeys.

To further meet the requirements of future tenants both the office and retail space will be professionally managed by Colliers International.

The security and the efficient operating of the building will be assured by a data processing center which monitors all building activities from a central command office utilizing only the most modern fire prevention and detection systems. To further ensure the safety of this international grade sky scraper an emergency helicopter landing pad will be located on the upper floors.

The Bitexco Financial Tower will become an iconic symbol of Vietnam representing the strength and beauty of the nation epitomized by the lotus flower as well as come to symbolize the rapid economic development of the modern Vietnam.

Monument Realty/Transwestern Partnership Gets $42.8M for Maryland Office Building

Edited: Jennifer Brenner
Source: Transwestern Investment Company

Monument Realty, in partnership with Transwestern Investment Company, has closed on the sale of Monument Corporate Center I, a 200,000 SF office building located on I-270 in Gaithersburg, Maryland, to Kaiser Permanente. Monument Corporate Center I is the first building of a multi-phased, mixed-use project that will include approximately 650,000 SF of office space and a 136-room hotel. Monument Realty has owned the property since 2001 when it purchased the IBM building and the adjacent 33 acres of land from IBM. Monument Realty later sold the IBM building to Wells REIT and began developing the vacant land. The sales price was $42.8 million and the loan balance was $33.7M

Phillip McCarthy, Keith Foery and Guy Copperthite of Transwestern and Doug Olson and Bethany Allen of Monument Realty represented the seller. Bernie McCarthy, Rita Robison and Bob Shue of Jones Lang LaSalle represented Kaiser Foundation Health Plan.

“This was a very complicated deal as there were multiple owners of a commercial condominium association that needed to approve various aspects of the transaction. Even with these complications, the deal went very smoothly and we were able to close two days before Christmas,” stated Michael J. Darby, owner of Monument Realty. “The deal closed in less than 90 days after the term sheet was executed. This was an incredible effort considering the size of the transaction, the due diligence required, the number of approvals necessary and the fact that the Thanksgiving holiday fell right in the middle of the closing period. Kaiser’s team was truly professional, knowledgeable and had the ability to get their arms around issues very quickly, which was crucial to the closing. “

This announcement comes on the heels of other good news from Monument Realty, which recently restarted the renovation of Potomac Place Tower, a 396-unit condominium in Southwest Washington, DC. It also signed its first lease at 55 M Street, a 275,000 SF Class A office building located directly above the Navy Yard Metro in the Capitol Riverfront neighborhood.

“This sale is another positive step in Monument Realty’s recovery after weathering the recession and the bankruptcy of our largest investment partner. We have been excited to announce some very important deals for the company including the repositioning of Potomac Place and a new lease at 55 M Street. The sale of Monument Corporate Center builds on these accomplishments and we expect to add to these announcements shortly,” added Darby.

$156 Million Refinancing Arranged by HFF for Eight-Property, Four-State Multi-Housing Portfolio

Edited: Jennifer Brenner
Source: Holliday Fenoglio Fowler, LP

The Chicago office of HFF (Holliday Fenoglio Fowler, L.P.) has arranged a $156 million refinancing for an eight-property, 2,306-unit multi-housing portfolio in Indiana, Kentucky, Tennessee and Virginia.

HFF director Matthew Schoenfeldt worked on behalf of NTS Realty Holdings Limited Partnership (“NTS”) and its wholly-owned subsidiaries to secure the 10-year, 5.4% fixed-rate loan through Freddie Mac (Federal Home Loan Mortgage Corporation). The loans, which will be serviced by HFF, are securitized through Freddie Mac’s Capital Markets Execution (CME) program. Loan proceeds will be used to retire existing life company mortgages and commence a program of targeted capital improvements at the Class-A properties.

“In addition to the exceedingly attractive loan terms delivered to our borrowers, this closing was monumental as it represented the very first crossed-pool funding for Freddie Mac’s CME program,” said Schoenfeldt.

“The planned enhancements will reinforce the NTS portfolio’s status as the preeminent rental communities in their respective markets,” added Schoenfeldt.

Individual property details are listed below:

Property	Location	Size
Willow Lake Apartments	Indianapolis, IN	207 Units
Castle Creek Apartments	Indianapolis, IN	276 Units
Lake Clearwater Apartments	Indianapolis, IN	216 Units
The Grove Richland Apartments	Nashville, TN	292 Units
The Grove Whitworth Apartments	Nashville, TN	301 Units
Park Place Apartments	Lexington, KY	464 Units
The Grove Swift Creek Apartments	Midlothian, VA	240 Units
Willows of Plainview	Louisville, KY	310 Units

NTS Realty Holdings Limited Partnership (NYSE:NLP), as a tenant-in-common with unaffiliated co-owners, or as a majority joint venture partner with an affiliate, currently owns 24 properties comprised of 14 multifamily properties, seven office buildings and business centers and three retail properties. The properties are located in and around Louisville and Lexington, Kentucky; Nashville and Cordova, Tennessee; Richmond, Virginia; Fort Lauderdale and Orlando, Florida; Indianapolis, Indiana; and Atlanta, Georgia.

HFF (NYSE:HF) operates out of 17 offices nationwide and provides commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, advisory services, structured finance, private equity, loan sales and commercial loan servicing.

Tricon Development, Inc. Announces $476M Office & Hospitality JV

Edited: Jennifer Brenner
Source: Tricon Development, Inc.

Rafi Weiss, president of Tricon Development, Inc. has announced the formation of a $476 million joint venture. Such venture will focus upon operations, development and redevelopment. Tricon Development, Inc. in conjunction with the Giluet Foundation I, LTD (associated with the Giluet Foundation) & Interstate Hotels & Resort, Corp. will operate, maintain & develop class A hospitality and office projects. It is anticipated that this first tranche of funding will be augmented by several future capital infusions for continued expansion. The focus will be on projects that address three areas of concern.

• Reasonable return on capital investment
  
• Environmentally conscious projects which will reflect energy savings and certified developments that will ultimately address the need for “green” standards.
  
• Projects that will benefit the surrounding communities – it is anticipated that a solid base for increased employment and expanded tax receipts to the benefit of local municipalities will be realized.

As Mr. Weiss had stated, "it is not difficult to achieve both parity and a harmonious coexistence between profits and environmental benefits to the advantage of communities within which such projects are ensconced.”

DCT Industrial Trust Leases 3.1 Million Square Feet in the Fourth Quarter 2009

Edited: Jennifer Brenner
Source: DCT Industrial Trust

DCT Industrial Trust, a leading industrial real estate owner, operator and developer, today announced that it has signed leases totaling 3.1 million square feet in the quarter ended December 31, 2009. Leases signed for all of 2009 totaled 11.0 million square feet.

"Our leasing activity in 2009 and particularly the fourth quarter has exceeded our expectations," said Phil Hawkins, President and CEO of DCT Industrial. "While the difficult economy of the past year has created many challenges, the expansion of our leasing team with the addition of high-quality professionals in our local markets, has yielded impressive results."

The leasing activity in the fourth quarter is comprised of 2.2 million square feet of renewal leases, almost 750,000 square feet of new or expansion leases and 96,000 square feet of development leases. The 96,000 square feet of development leases related to two leases in the Orlando distribution market. DCT leased the 70,400 square foot ADC XI building to Coca-Cola Enterprises Inc. which consolidated several facilities into DCT's project in the Southeast submarket. Coca-Cola Enterprises will use this facility to serve central Florida.

At ADC X in Orlando, Hillenbrand, Inc. leased 25,300 square feet representing a consolidation of operations from Tampa and Orlando to serve the state of Florida in a new facility with upgraded distribution operations in close proximity to their workforce.

The development leasing in Orlando brings the leasing of DCT Industrial's ADC project to 76% leased as of December 31, 2009.

"We are very pleased to have executed 96,000 square feet of new leases in our Orlando development projects," commented Todd Carter, vice president for DCT Industrial. "The long-term market fundamentals and our excellent locations make Orlando an attractive business environment for us and our customers."

Robert Farrar of Robert Farrar & Associates and Lisa Bailey of Morrison Commercial Realty represented Coca-Cola Enterprises. Ray Romano of CBRE represented Hillenbrand, Inc. Moses Salcido and Tom McFadden of Southern Commercial Real Estate Advisors represented DCT Industrial on these transactions.

Hyatt Strengthens China Portfolio with Announcement of Three New Hotels

Edited: Jennifer Brenner
Source: Hyatt Hotels Corporation

Hyatt Hotels Corporation (NYSE: H) and Suning Real Estate Development Co. have signed agreements for Hyatt subsidiaries to provide management services to three hotels in the vibrant hubs of China’s Jiangsu province. Grand Hyatt Nanjing is currently slated to open in 2013 and Hyatt Regency Wuxi and Hyatt Regency Xuzhou are projected to debut in 2012.

Grand Hyatt Nanjing is slated to open in the historic city of Nanjing in 2013 as an integral part of the mixed-use development, Suning Plaza. This large-scale complex in the prominent Xin Jie Kou district of Nanjing will consist of Grand Hyatt Nanjing, luxury serviced residences, a shopping mall, and facilities for dining, leisure and entertainment. The 400-room hotel will feature innovative food and beverage concepts, a grand ballroom and several meeting rooms as well as an atmospheric spa and fitness center. When completed, Grand Hyatt Nanjing will join the select circle of Grand Hyatt properties in Greater China that currently includes locations in Beijing, Shanghai, Guangzhou, Hong Kong, Taipei, and most recently Macau and Shenzhen.

Anticipated to open in 2012 as part of Suning Plaza, the 350-room Hyatt Regency Wuxi will be part of a two tower mixed-use development in Wuxi. The 70-story North Tower will feature the hotel on the upper levels, serviced residences on the middle levels and office space on the lower levels. The 41-story South Tower will contain additional serviced apartments. An eight-story wing of the South Tower will provide extensive space for a shopping arcade, food and beverage outlets, a cinema and other leisure facilities. Hyatt Regency Wuxi will boast four restaurants and bars, an 800-square-meter ballroom and 10 multi-function rooms of varying sizes. Guests at the hotel will be able to de-stress at a spa with six treatment rooms and fitness center.

In the mixed-use development Suning is planning to construct in Xuzhou, Hyatt Regency Xuzhou will be ensconced in the upper levels of a 60-story tower, which is one of five towers that will make up Suning Plaza in the city center. The lower levels of the tower will have serviced apartments and offices. A six-story wing will contain a shopping mall, restaurants and bars as well as leisure facilities.

The 350 guestrooms will have a contemporary design and the hotel will offer travelers the latest technology tools, stylish restaurants and lounges, a grand ballroom and meeting venues as well as a spa and fitness center. Hyatt Regency Xuzhou is slated to open in 2012.

Steve Haggerty, global head of real estate and development for Hyatt Hotels Corporation, said of the latest Hyatt properties planned for China, “These future openings in three of China’s most dynamic growth centers will further strengthen the Hyatt-branded portfolio in the country. We look forward to delivering authentic hospitality to business and leisure travelers.”

Six Hyatt-branded hotels have opened in Greater China in the past 18 months, including Park Hyatt Shanghai, Park Hyatt Beijing, Grand Hyatt Macau, Grand Hyatt Shenzhen, Hyatt Regency Hong Kong, Sha Tin, and Hyatt Regency Hong Kong, Tsim Sha Tsui. Hyatt’s subsidiaries currently provide management services to 15 hotels in the region.