Commercial Briefs

MBA (4/14/2008 ) Murray, Michael
Boston-based DebtX said investors said investors will be able to bid on $101 million in performing and non-performing commercial real estate loans and $380 million in commercial real estate loans secured by properties in the southeastern United States.

The first of four offerings of the $380 million bids on April 15 at www.debtx.com, with the remainder of the sales bidding every three weeks through mid June. The $101 million performing commercial real estate portfolio bids May 8.

Kingsley Greenland, CEO of DebtX, said demand for product is strong and institutions are selling to proactively manage their performing portfolios to improve diversification and risk management, and to dispose of non or sub-performing loans quickly rather than incur significant expenses related to protracted loan workouts.
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TIAA-CREF Asset Management launched TIAA-CREF U.S. Real Estate Fund I LP, a closed-end fund that will invest in a portfolio of mostly high-quality core real estate assets in the office, retail, industrial and multifamily sectors.

Philip McAndrews, managing director and head of portfolio management for TIAA-CREF Global Real Estate, said the seven to 10-year term of the fund provides the portfolio management team latitude to seek maximum capital appreciation for the long term. The fund has an initial minimum investment requirement of $150,000.

Suman Gera, managing director of TIAA-CREF Global Real Estate and the portfolio manager for the fund, expects at least 80 percent of the fund’s investments to be in high-quality core properties in the 50 largest U.S. markets. The remainder of the fund’s assets will be invested in value-add assets, which include properties that feature generally higher vacancy rates, present more varied leasing opportunities and near-term lease expiration exposure and could require capital infusions to enhance the leasing profile of such properties.

TIAA-CREF said it charges no performance fee or sales charge at the fund level.

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Spectrus Real Estate completed a transaction in Indiana through its Net Lease PLUS program. The company closed a 1031 exchange transaction for Southport Pavilion, a 16,369 square-foot retail strip center in Indianapolis.

The DBSI Housing master lease ensures that the owner retains control of significant property decisions without daily management responsibilities and contractual monthly rent payments. The Net Lease PLUS product provided diminished tax consequences for real estate passing on to heirs and consists of 1031 exchange benefits.

Southport Pavilion, on 2.22 acres, has seven retail tenants. Meijer Supercenter, its shadow anchor, is near Kohl's, Home Depot, Staples and Super Target. Spectrus said multi-tenant outlets offer increased security through tenant diversification.