Originations

CNL Retirement Properties, an Orlando, Fla.-based private real estate investment trust, is acquiring a portfolio of 20 properties from Horizon Bay Senior Communities, Tampa, Fla., for approximately $562 million.CNL said the properties are located in Alabama, Arizona, California, Florida, Illinois, Rhode Island, and Texas, and have a total of approximately 3,600 units. The REIT said the acquisition will expand its portfolio to 139 properties in 29 states and give it an entry into the Arizona and Rhode Island markets. The properties will continue to be managed by Horizon under long-term agreements.

Brandywine Realty Trust, Plymouth Meeting, Pa., has announced the sale of 2.645 million common shares of beneficial interest to Bear, Stearns & Co. for approximately $69.3 million.The real estate investment trust said the total includes 345,000 shares to cover the exercise of an overallotment option by Bear Stearns. The REIT can be found online at http://www.brandywinerealty.com.

The Market Composite Index, an overall measure of mortgage applications, jumped from 599.9 to 702.6 on a seasonally adjusted basis during the week ended Jan. 9, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications rose 71.9% on the week, but they were down 42.9% from the level of a year earlier. The Purchase Index rose from 401.3 to 445.9 on a seasonally adjusted basis, while the Refinance Index climbed from 1755.4 to 2195.7. Refinancings represented 51.6% of total applications, up from 49.7% the previous week, while adjustable-rate mortgages accounted for 26.6%. The average contract interest rate for 30-year fixed-rate mortgages dropped from 5.81% to 5.56%, and points (including the origination fee) decreased from 1.43 to 1.38 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mortgagebankers.org.

SL Green Realty Corp., New York, has priced a public offering of 1.8 million shares of common stock at $42.33 per share.The company said it plans to use the proceeds to pay down its unsecured revolving credit facility and provide greater liquidity for possible investments. The underwriters have been granted an option to buy up to 270,000 additional shares of the stock to cover any overallotments. Citigroup is the sole book-running manager for the offering. SL Green, a real estate investment trust, can be found online at http://www.slgreen.com.

Home Properties, a real estate investment trust based in Rochester, N.Y., has announced the promotions of four senior officers to the positions of executive vice president and senior vice president.The two new executive vice presidents are David P. Gardner and Ann M. McCormick. Mr. Gardner has served as senior vice president since August 2000 and chief financial officer since the company's inception in 1994, the REIT said. He will retain the title of CFO. Ms. McCormick has also served as senior vice president since August 2000 and as vice president since 1994, and will retain her title as general counsel and secretary. The two new senior vice presidents are Robert J. Luken and Janine M. Schue. Mr. Luken has served as chief financial analyst since February 2002, as treasurer since 2000, and as vice president since 1997. Ms. Schue has served as vice president of human resources since February 2002. The company can be found on the Web at http://www.homeproperties.com.

Fitch Ratings has announced an expansion of its collateralized debt obligation group to provide better performance analytics and customer service.Jill Zelter, a Fitch managing director, said the new organization of the CDO group "will allow Fitch to provide comprehensive and timely surveillance, prospective opinions on future trends, and rigorous analysis and modeling in a more dynamic and robust fashion." Marion Silverman will take on the newly created role of head of performance analytics, and Hedi Katz is filling the new position of head of credit products research. In connection with these changes, John Malysa is transferring from Fitch's commercial mortgage-backed securities group -- where he led the agency's CMBS CDO ratings -- to head up the cash flow CDO team. The credit products group will now manage the rating of CMBS CDOs.

Net branching company 1st Metropolitan Mortgage, Charlotte, N.C., has selected LandAmerica Financial Group, Richmond, Va., to be its vendor for mortgage processing services.The mortgage broker said it expects to roll out LandAmerica's mortgage processing services to 250 of its branches nationwide during the first quarter. Daniel Jacobs, chief operating officer of Empire Equity, the owner of 1st Metropolitan, said his company "has been working hard to find a processing partner to help our branches succeed."

E*Trade Financial Corp., New York, in a brief media advisory, said it is holding discussions with TD Bank Financial Group, Toronto, regarding a possible transaction.The announcement said the companies would not issue further comment unless a deal is reached or the discussions terminated. E*Trade originates mortgages through E*Trade Mortgage. The company can be found on the Internet at http://www.etrade.com.

First Union Real Estate Equity and Mortgage Investments, a Boston-based real estate investment trust, has announced a proposed merger with Atlantic Realty Trust.First Union also reported the acquisition of 9.75% of Atlantic's outstanding shares of beneficial interest. Under the proposal, filed Jan. 12 with the Securities and Exchange Commission, Atlantic would be merged into First Union.

Consumer Direct of America, Las Vegas, has announced an agreement to acquire the approximately $1 million in operating assets of Consulting Services LLC, Atlanta, including its mortgage banking operations.Consumer Direct, a consolidator in the mortgage brokerage industry, said the agreement would bring it approximately 120 debt consolidation loans per month and a direct-mail center, as well as the mortgage banking operation. "We intend to integrate the debt consolidation products into our outbound call center platform," said Michael A. Barron, chief executive officer of Consumer Direct. "By adding the debt consolidation portfolio of products, we hedge our mortgage business against cyclical fluctuations in the industry.... With Atlanta in place now, we can begin to open up the Eastern Seaboard for potential acquisitions of mortgage brokerage companies." The company can be found on the Web at http://www.cdofamerica.com.

The Sacramento-based Nehemiah Corp. of California, a national pioneer in providing privately funded downpayment assistance, has changed its name to the Nehemiah Corp. of America.Nehemiah, established in 1994 to increase "homeownership and asset development opportunities for diverse populations," said it will continue to pursue its original mission. The name change reflects the nonprofit organization's new goals and extended services and is "a symbol of how far our industry has come and reflects the growth of our mission," said Scott Syphax, Nehemiah's president and chief executive officer. Since 1997, the "Nehemiah Program" has provided downpayment and closing gifts of up to 6% of a home's sale price. As of Dec. 31, it had provided over $600 million in gift funds to more than 165,000 families in 8,258 cities in all 50 states and the District of Columbia, the company said.

C. Jean Mihitsch has been named chief financial officer of Liberty Self-Stor Inc., a real estate investment trust based in the Cleveland suburb of Mentor, Ohio.Ms. Mihitsch, 55, joins the REIT from GLB Bancorp Inc., where she was CFO from 1998 through 2003. Liberty's former CFO, Sherry L. Kirchenbauer, has resigned "to pursue other business interests," the REIT said.

Government Properties Trust, a Maryland company that is seeking real estate investment trust status, is planning an initial public offering of about 14 million common shares with an expected price per share in the $9-11 range.The company proposes to use the proceeds of up to $154 million to acquire commercial real estate properties that are under long-term lease to U.S. government entities. In a Securities and Exchange Commission filing that has not yet become effective, the company says it plans to use debt financing to finance about 75% of the cost of the properties to be acquired, and also expects to tap equity financing and short-term credit lines. GPT said it has received a commitment for a $50 million line of credit from a group of commercial banks. Friedman Billings Ramsey is an underwriter of the IPO, which is expected to price on Jan. 22. An affiliate of FBR has also provided GPT with a $1 million line of credit, outstanding amounts of which will be paid from the proceeds of the offering.

Subprime mortgage lending contributed an estimated $1.68 billion in spending to Arizona's economy in 2001, according to a study released by the Arizona Financial Services Association.Greg Williams, the AFSA's executive director, said the study shows the economic significance of the industry to Arizona and warned that "over-regulation" could have "dire effects" on a struggling economy. The study, conducted by the Center for Statistical Research, also found that subprime mortgages provide credit chiefly to borrowers with incomes near or above the median household income, the AFSA reported. Moreover, mortgage lending in Arizona is not focused on areas with high concentrations of Hispanics or other minorities, the association said. The AFSA can be found online at http://www.arizonafsa.org.

Although apartment vacancy rates are at very high levels and absorption rates are low, the National Association of Home Builders is forecasting that multifamily construction will decline by only 4%-5% in 2004 and 2005.NAHB economist Paul Emrath admitted that the forecast is "optimistic," but he said it is predicated on strong job growth this year and rising mortgage rates that favor rental housing. "We have households waiting to be formed when the jobs are created," Mr. Emrath said. He expects a turnaround in the multifamily market in 2006. But right now multifamily vacancy rates (5 or more units) are at 11.5% -- the highest since 1988 -- and the three-month absorption rate has rebounded from record lows in 2002 to the upper 60% range. Nevertheless, investors are still buying new multifamily projects. "Some people have been building up inventory based on their belief in a turnaround," he told a meeting of the National Council of Affordable Housing Market Analysts.

Arlington Capital Mortgage Corp., Bensalem, Pa., has announced a merger with Windsor Financial Mortgage Corp., West Chester, Pa., that creates what it termed the largest independent retail mortgage lender in the Philadelphia/South Jersey region.The terms of the transaction were not disclosed. The combined entity, a privately held company, will operate under the Arlington Capital name. It will offer retail and wholesale mortgage programs for borrowers ranging from first-time homebuyers to customers seeking loans of up to $5 million, Arlington Capital said. Under the merger, Windsor's four retail branches, Internet operation, and 65 employees will be joined with Arlington Capital's 155 employees and six branches. No layoffs are planned, and the combined entity will be able to make mortgage loans in more than 30 states, Arlington Capital said.

Koger Equity Inc., a real estate investment trust based in Boca Raton, Fla., has priced a public offering of 4.5 million shares of its common stock at $20.45 per share.The office REIT said the proceeds will be used to pay down the company's revolving credit facility and for general corporate purposes. The underwriters have been granted a 30-day option to buy up to 675,000 additional shares to cover any overallotments. Morgan Stanley is the book-running manager of the offering, and Wachovia Securities is the co-manager. The REIT can be found online at http://www.koger.com.

Essex Property Trust Inc., Palo Alto, Calif., has announced that it has obtained a five-year, $90 million credit facility from Freddie Mac and restructured two series of preferred stock.The maximum amount of the credit facility, which is secured by four of Essex's multifamily properties, will be increased to $100 million on July 1, the real estate investment trust said. The company said it has borrowed $80.6 million in two tranches under the facility. Regarding the equity restructuring, Essex said the distribution rate of its $50 million, 9.30% series D cumulative redeemable preferred units will change from 9.30% to 7.875% on July 27. The date that the series D units can first be redeemed at the company's option will be extended six years, to July 28, 2010, and the date that Essex's 7.875% series B cumulative redeemable preferred units can first be redeemed will be extended from Feb. 6, 2003, to Dec. 31, 2009. Essex can be found online at http://www.essexproperties.com.

Fox-Pitt Kelton analyst Chris Buonafede has issued a daily research note on MGIC Investment Corp., Milwaukee, raising Fox-Pitt's earnings-per-share estimate for the mortgage insurer in 2004.The new estimate is $5.00 per share, up from $4.40 per share. The analyst said the action was based on the belief that growth in MGIC's reserves will slow in the first half of this year compared with that of the second half of 2003. In addition, delinquency trends were better in the fourth quarter than MGIC's management had originally forecast. The note also commented that delinquencies in the first half of a year tend to rise (or fall) at a slower pace than in the last six months of a year.

Donald J. MacKinnon has resigned from the board of directors of Criimi Mae Inc., Rockville, Md., to accept a position as managing director with Nomura Securities International.Mr. MacKinnon's resignation letter states that Nomura compliance requirements "as well as the fact that I may seek to engage in business activities with Criimi in the future" made the severing of ties necessary, Criimi Mae said. The resignation was effective Jan. 6. Criimi Mae, a commercial mortgage real estate investment trust, can be found on the Web at http://www.criimimaeinc.com.