Originations

Single-family housing starts rose 2.1% in January to start off the new year with the highest number of new homes under construction since 1978.The U.S. Census Bureau reported that single-family starts increased from a seasonally adjusted annual rate of 1.48 million units in December to 1.51 million units in January. Economists at the National Association of Home Builders continue to attribute this strong performance to low interest rates, strong sales of existing homes, and the investment potential of owning a home. Year-end data show that homes built for sale rose to 73.6% of all single-family starts, compared with 72.2% in 2001. It was below 60% in the early 1990s, according to NAHB economist Michael Carliner. This trend reflects the ease with which homebuilders can obtain acquisition, development, and construction financing. The other major share of single-family starts is made up of custom-built homes on the owner's lot. Meanwhile, multifamily starts fell 8.7% from a seasonally adjusted annual rate of 332,000 in December to 303,000 in January.

Kmart Corp., the bankrupt retailer based in Troy, Mich., has reached an agreement with Kimco Realty Corp., New Hyde Park, N.Y., for the joint marketing of about 317 Kmart locations and related properties that Kmart has received court approval to close.Under the agreement, Kimco or its affiliate will work with Kmart to identify retailers, investors, landlords, and other parties that may be interested in buying the properties, which are located in 44 states and Puerto Rico, Kmart said. Kimco, a real estate investment trust that specializes in acquiring, developing, and managing shopping centers, may invest in, redevelop, or improve the Kmart properties to maximize their value. Store closings will continue for two to three months, Kmart said. The retailer and 37 of its U.S. subsidiaries filed for Chapter 11 bankruptcy protection in January 2002. It can be found online at http://www.kmart.com, and Kimco can be found at http://www.kimcorealty.com.

Accredited Home Lenders Holding Co., a San Diego-based subprime lender and servicer, has announced an initial public offering of 9.65 million shares of common stock at $8 per share.Accredited said approximately 4.49 million shares are being sold by the company and the remainder are being sold by selling stockholders. The underwriters have been given a 30-day option to buy up to an additional 1.18 million shares from the company and up to 267,000 shares from the stockholders to cover any overallotments. Friedman, Billings, Ramsey & Co. Inc., U.S. Bancorp Piper Jaffray Inc., and Wedbush Morgan Securities Inc. are managing the offering.

CB Richard Ellis, Los Angeles, has announced an agreement to acquire New York-based Insignia Financial Group Inc. for $11 per share of common stock in an all-cash transaction valued at approximately $415 million.The valuation includes repayment of net debt and redemption of preferred stock, and there may be an "incremental consideration" in addition to the $11 per share, CB Richard Ellis said. The additional consideration would depend on whether Insignia can sell certain real estate assets for more than $45 million prior to closing the deal. CB Richard Ellis said it would receive a cash contribution of $145 million from Blum Capital Partners, and that it has received a commitment from Credit Suisse First Boston for the necessary debt financing. The combined company, which would operate globally as CB Richard Ellis, would be a real estate services company with revenues exceeding $1.8 billion and 16,000 employees in 47 countries, CB Richard Ellis said. The companies can be found online at http://www.cbre.com and http://www.insigniafinancial.com.

The chairman of MFA Mortgage Investments Inc., New York, has told fellow stockholders that he plans to have an entity that he controls sell up to 400,000 shares of MFA stock in the next year.In a letter released Feb. 14, Michael B. Yanney notes that MFA acquired its external adviser, America First Mortgage Advisory Corp., last year in exchange for approximately 1.29 million shares of MFA common stock, of which 80% were allocated to America First Cos. LLC. Mr. Yanney owns a controlling interest in AFC, which still owned 824,000 MFA shares as of Jan. 1, he said. "In 2003, it is my intention to have AFC sell up to 400,000 of its MFA shares in one or multiple transactions," Mr. Yanney said, citing MFA's independent status and "the fact that, as I reach my 70th birthday, I believe it prudent to further diversify my investments and increase flexibility for estate planning purposes." MFA, a real estate investment trust, can be found online at http://www.mfa-reit.com.

Keystone Property Trust, a real estate investment trust based in West Conshohocken, Pa., has priced a public offering of 2.4 million shares of preferred stock at $25 per share.The 9.125% series D cumulative redeemable preferred stock may be redeemed at par at the election of the company on or after Feb. 18, 2008, the REIT said. Bear, Stearns & Co. Inc. was the lead manager of the offering. The underwriters were granted a 30-day option to buy up to an additional 360,000 shares of the stock to cover any overallotments. Keystone can be found online at http://www.keystoneproperty.com.

Universal Health Realty Income Trust, King of Prussia, Pa., has announced that its president and chief financial officer, Kirk Gorman, will leave the company after a transition period due to concerns voiced by its independent auditor about a communication from Mr. Gorman.As a result, Alan B. Miller, chairman and chief executive officer of the real estate investment trust, has been named to the additional post of president, and Charles Boyle, vice president and controller, has been named to the additional post of CFO. Mr. Miller said the management changes were deemed necessary because of issues raised by auditing firm KPMG in connection with "a recent communication from Mr. Gorman to KPMG regarding his views on their respective responsibilities" and the level of expertise required of a CFO. "Although no issue whatsoever has been raised regarding the integrity of the trust's financial statements, KPMG has concluded that, because of Mr. Gorman's communication regarding the responsibilities and required expertise of a chief financial officer, it could no longer rely on the representations made by Mr. Gorman as the CFO of the trust," the REIT said. The company can be found online at http://www.uhsinc.com.

Delinquencies of loans in commercial mortgage-backed securities monitored by Fitch Ratings rose to 1.31% in the fourth quarter, and Fitch is forecasting rising delinquencies over the coming year, according to the rating agency.In 357 Fitch-monitored transactions, loan delinquencies rose four basis points from 1.27% in the third quarter on the rating agency's CMBS Loan Delinquency Index, Fitch said. Although delinquent office loans account for only about 8% of total delinquencies, the amount of the delinquencies grew from $138 million to $200 million in the fourth quarter, Fitch said. "Fitch is monitoring the downward trend in rents in almost every property sector," said Mary MacNeill, a Fitch senior director. "We are particularly concerned about falling rents in the office sector, in combination with increasingly high vacancy rates and generous tenant work letters." Fitch can be found on the Web at http://www.fitchratings.com.

Julian E. Whitehurst has been named executive vice president and general counsel at Commercial Net Lease Realty Inc., Orlando, Fla.Mr. Whitehurst had been on retainer to the company, an equity real estate investment trust, from Lowndes, Drosdick, Doster, Kantor, & Reed PA, an Orlando-based law firm, since April 2000.

The First American Corp., Santa Ana, Calif., has launched a new business unit, First American Residential Real Estate Group Inc., and named Stephen C. Roney as its president and chief executive officer.The new company will provide products, services, technology, and outsourcing to companies serving the real estate and relocation markets. First American said Mr. Roney formerly held various positions with Coldwell Banker, where he was named president and chief executive officer of Coldwell Banker Relocation Services Inc. in 1989 and elected to the board of directors of Coldwell Banker Real Estate Group in 1990. In 1997, after Coldwell Banker's acquisition by what is now Cendant Corp., Mr. Roney began providing executive consulting services to the company. First American can be found online at http://www.firstam.com.

The average 30-year fixed mortgage rate dipped to 5.86% for the week ending Feb. 14 from 5.88% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell from 5.27% to 5.26%, while the average rate for one-year Treasury-indexed adjustable-rate mortgages remained unchanged at a record low of 3.89%. Fees and points averaged 0.6 points for fixed-rate mortgages and 0.7 points for ARMs. "Mortgage rates have held at record low levels, thereby reducing mortgage payments and making homebuying affordable for a great number of families," said Frank Nothaft, Freddie Mac's chief economist. A year ago, the average 30-year and 15-year fixed rates were 6.86% and 6.35%, respectively, and the average one-year ARM rate was 4.98%, Freddie Mac said.

Countrywide Home Loans, Calabasas, Calif., has announced that, along with its sister company Full Spectrum Lending, it will no longer accept subprime loan applications in Georgia for amounts under $322,700.The company had not been making what are defined as high-cost loans under the Georgia Fair Lending Act, but the latest move means it is out of the subprime market completely in the state. "We deeply regret having to make this business decision; however, our ability to make subprime loans in Georgia has been adversely impacted by the state's new legislation and the market's reaction to it," the company said. The secondary market and the rating agencies are in an uproar over the GFLA, especially over the assignee liability clause. Countrywide can be found online at http://www.countrywide.com.

Equity One Inc., North Miami Beach, Fla., has entered into a $340 million unsecured revolving credit facility in connection with the closing of its merger with IRT Property Co.The real estate investment trust said it intends to draw on the facility to fund a portion of the cash to be paid to IRT shareholders in the merger, to pay transaction expenses, and to repay approximately $61.6 million of secured mortgage debt and $8 million of unsecured debt. The three-year facility, arranged by Wells Fargo with the participation of 14 other banks, has a one-year extension option and an accordion feature under which Equity One can increase the amount to $400 million, the REIT said. The interest rate, set initially at 100 basis points above the London interbank offered rate, can range from 65 bps to 135 bps over LIBOR depending on the credit ratings of Equity One's senior unsecured long-term debt. The shopping center REIT can be found online at http://www.equityone.net.

Classes D and E of 1211 Avenue of the Americas Trust's commercial mortgage pass-through certificates, series 2000-1211, have been removed from Rating Watch Negative by Fitch Ratings.The ratings had been placed on review because of interest shortfalls caused by special-servicer fees related to inadequate terrorism insurance coverage. The special servicer has waived the one-time work-out fee, and as a result class D is not expected to incur shortfalls and class E has incurred shortfalls totaling 0.27% of the principal and interest, Fitch said. The rating agency said it deems the shortfalls minimal and unlikely to recur. Fitch can be found on the Web at http://www.fitchratings.com.

Four classes of Morgan Stanley Dean Witter Capital I Inc. commercial mortgage pass-through certificates, series 2000-XLF, have been downgraded by Standard & Poor's and removed from CreditWatch negative.The downgrades were as follows: class C, from A to BBB; class D, from A-minus to B; class E, from BBB to CCC; and class F1, from BBB-minus to D. The rating agency also affirmed the ratings of classes A, B, F2, and F7. S&P said the downgrades stem from the default at maturity of the Market Center loan, which represents 40% of the pool balance and is secured by two office towers on Market Street in San Francisco. "The San Francisco office market has seen a dramatic deterioration in rent and occupancy levels," the rating agency said. S&P can be found online at http://www.standardandpoors.com.

Total existing-home sales -- including condominiums and co-operatives -- rose in 45 states in the fourth quarter from levels recorded a year earlier, according to the National Association of Realtors.The seasonally adjusted annual resales rate was 6.55 million units in the fourth quarter, up 8.6% from 6.03 million in the fourth quarter of 2001 and 5.8% from 6.19 million in the third quarter of 2002, the NAR reported. The biggest year-over-year gains were recorded in Hawaii, where the resale rate was up 33.9%; Nevada, up 32.0%; and Alabama, up 22.3%.

The median prices of existing homes increased at "well above historic norms" during the fourth quarter in most metropolitan areas, according to the National Association of Realtors.The association's metro area home price report for the fourth quarter found 39 of the 120 areas surveyed with double-digit annual increases in median resale prices, and only 10 with "generally small" price declines. "There was an average 4.7-month supply of homes on the market during the fourth quarter, well below the 6.0-month level considered to be a generally balanced market between buyers and sellers," said NAR chief economist David Lereah. "The tight supply of available homes has persisted for several years now. The result is that home prices in the fourth quarter rose almost three times faster than historic norms." The top rates of year-over-year increases in median resale prices were in Sacramento, Calif., up 26.7% to $224,200; San Diego, up 26.6% to $379,300; and Providence, R.I., up 24.6% to $206,100. The NAR can be found online at http://realtor.org.

Grubb & Ellis Co., New York, has announced the formation of a Financial Services Group to manage its commercial and multifamily housing investment sales and services.Keith Misner, who formerly headed the company's Multi Housing Investment Group, has been named executive managing director of the new group, which will also coordinate global investment sales and services in association with G&E's worldwide services partners, Knight Frank and Avison Young. "Grubb & Ellis has always had an investment sales capability, but this closely coordinated group will bring our client servicing capability to a much higher and consistent level globally," said Ian Bress, G&E's chief financial officer. The company can be found on the Web at http://www.grubb-ellis.com.

Taubman Centers Inc., Bloomfield Hills, Mich., has announced that Sheldon M. Gordon and certain affiliates will invest $50 million in Taubman after selling the group's stake in The Forum Shops at Caesars in Las Vegas.Under the agreement, Mr. Gordon and the affiliates will receive 2.08 million operating partnership units in Taubman, a real estate investment trust, in exchange for the $50 million ($24 per unit). However, the units will not include voting rights and will carry "very limited rights to sell these units for two years, and thereafter on a phased basis over a three-year period," Taubman said. The REIT said the funds will be used to help finance a $100 million increase in its share repurchase program. Mr. Gordon, chairman of Gordon Group Holdings LLC (creator of The Forum Shops), was notified by Simon Property Group on Feb. 7 that Simon, a partner in The Forum Shops, would buy the Gordon stake in the Las Vegas properties. Simon, an Indianapolis-based REIT, had been pursuing a hostile takeover of Taubman that sparked lawsuits and several rounds of recriminations. Taubman enlisted the aid of Mr. Gordon in resisting the takeover attempt.

Mortgage applications fell 5.1% on a seasonally adjusted basis for the week ended Feb. 7, according to the Mortgage Bankers Association of America's Weekly Mortgage Applications Survey.On an unadjusted basis, applications were down 3.7% on the week and up 84.4% from the level recorded a year earlier. On a seasonally adjusted basis, the Purchase Index declined from 371.1 to 328.8, and the Refinance Index fell from 5621.6 to 5470.3. Refinancings represented 73.8% of total applications, up from 73.1% the previous week, while adjustable-rate mortgages accounted for 13.2%. The average contract interest rate for 30-year fixed-rate mortgages fell from 5.72% to a new record low of 5.68%, and points (including the origination fee) decreased from 1.68 to 1.65 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mbaa.org.