Finance Investment Banking
Lehman Loses $2.8B, Cuts Commercial RE Exposure
June 16, 2008
By: Eugene Gilligan, Senior Editor

Lehman Bros. announced today a net loss of $2.8 billion for the second quarter, ended May 31, 2008, compared to net income of $489 million for the first fiscal quarter of this year, and $1.8 billion for the second quarter of fiscal 2007.

The firm also said it reduced exposure to residential mortgages, commercial mortgages and real estate investments by 20 percent in each asset class.

Lehman made major news in an attempt to shore up investor confidence last week, as it replaced CFO Erin Callan and president & CEO Joseph Gregory. Bart McDade will serve as new president & COO, while the firm’s co-chief administrative officer, Ian Lowitt, will become CFO.

Lehman was a huge player in both commercial mortgage securitization, as well as a direct real estate investor. Lehman and Tishman Speyer took apartment REIT Archstone Smith private in a $22 billion transaction last October. Overall, Barron’s reports that Lehman has from $65 billion to $70 billion in real estate exposure. That has fallen from $87 billion on Feb. 29.

 
Recent Investment Banking Headlines
Financing for Suburban Boston Portfolio Paves Way for Repositioning
Aug. 08, 2008
A financing deal valued at $27 .4 million has closed for a group of five office buildings totaling 226,000 square feet in Needham, Mass.
AMB Ramps Up Industrial Property Presence in Mexico with Accion Takeover
July 25, 2008
AMB Property Corp., through an affiliate, has acquired the remaining 42 percent of G. Accion S.A. de C.V. that it had not previously owned. The purpose of the transaction was, according to AMB, to create a fully integrated platform from which the company will continue to develop, lease, acquire and operate industrial real estate in Mexico.
 

 

Pacific Office Properties Nabs $195M Portfolio
August 21, 2008
By Michael Fickes, Contributing Correspondent -- Pacific Office Properties Trust Inc. and an institutional co-investor have acquired a portfolio of seven Southern California office complexes for $195 million. The combined properties contain more than 1 million leasable square feet across...

$167M Construction Loan in Place for Brooklyn M-F Project
August 21, 2008
By Barbra Murray, Contributing Editor -- Forest City Ratner Cos. has closed on a $167 million construction financing deal for 80 DeKalb, a 365-unit apartment project in Downtown Brooklyn. The New York State Housing Finance Agency approved the project for...

Prime Income to Build $733M Resort in Germany
August 21, 2008
By Amanda Marsh, Associate Editor -- Dallas-based Prime Income Asset Management and Port Olpenitz GmbH are ready to break ground on the approximately $733 million, 425-acre Port Olpenitz, a holiday resort located in the northeastern section of Schleswig-Holstein, Germany. The...

Grubb & Ellis Realty Investors Nabs 199,000SF Atlanta Office
August 21, 2008
By Barbra Murray, Contributing Editor -- One Live Oak, a 199,000-square-foot office property in Atlanta, has just been snapped up by Grubb & Ellis Realty Investors L.L.C., which made the purchase on behalf of tenant-in-common investors. Crescent Real Estate Equities...

220-Acre Mixed-Use in Works Near University of Missouri
August 20, 2008
By Barbra Murray, Contributing Editor -- A 220-acre parcel near the University of Missouri's Discovery Ridge research park in Columbia is on tap to sprout a gargantuan mixed-use project. Forum Development Group, the owner of the land, recently wrapped up...

Is Family Business a Good Idea?
August 15, 2008
By Mike Myatt, Chief Strategy Officer, N2growth --Oh what a conundrum! Family business: Should I, or shouldn't I? In my opinion there really isn't a right or wrong answer to this question. It is simply a matter of personal preference....

What to Do When Marketing Goes Wild
August 08, 2008
By Mike Myatt, Chief Strategy Officer N2growth --Have your company's marketing initiatives wandered astray? Is the proverbial tail starting to wag the dog with respect to your current marketing campaigns? How do you know when marketing is out of control?...

Six Mistakes Real Leaders Avoid
August 01, 2008
By Mike Myatt, Chief Strategy Officer, N2growth --I recently had a reader ask: "Is there a simple test that can be used to quickly determine an executive's leadership ability?" The short answer is yes. There are, in fact, a great...

Top Brokers Do Deals in Bad Markets, Too
July 18, 2008
By Mike Myatt, Chief Strategy Officer N2growth --Many in the industry long for the frothy markets of 2005 when sellers experienced record low cap rates, buyers were aided by loose credit and a strong flow of funds from the capital...

Know Thy Customer
July 11, 2008
By Mike Myatt, Chief Strategy Officer, N2growth --How well do you really know your customer? Let me put this as simply as I can. If you want to succeed in business you must be in touch with the demands of...