Street Beat

Midland Loan Services adds fifth transaction with NationsBank Midland Loan Services is the primary servicer for $1.586 billion in commercial mortgage-backed securities. NationsBank and Bank of America contributed the majority of the 376 conventional, multifamily and commercial loans in the pool.

The new transaction - NationsLink, Series 1998-2 - has been added to Midland's five previous NationsBank transactions, including NationsLink, Series 1998-1, which also closed last year.

The companies' mortgaged properties are located in 29 states with the largest concentrations in California, North Carolina, Maryland and Florida. Property types include multifamily, retail, office and industrial.

Midland's servicing portfolio exceeds $40 billion, and the company has originated more than $3 billion in commercial real estate loans for securitization.

New dividend level set by Archstone Communities Archstone Communities set a 1999 annual dividend level of $1.48 per common share, a 6.5% increase over the actual annual dividend of $1.39 paid in 1998.

This new level is part of Archstone's goal to reduce its dividend payout ratio to 70% of funds from operations and still provide attractive dividend increases.

The board declared this 1999 first quarter dividend of $0.37 per common share payable on Feb. 26, 1999 to shareholders of record on Feb. 12.

LFREI and Starwood Financial Trust form lasting bond Starwood Financial Trust acquired a $280.3 million commercial mortgage and mezzanine loan portfolio from Lazard Freres Real Estate Investors (LFREI).

LFREI also purchased $220 million of Starwood's newly-issued Series A perpetual preferred shares. LFREI warrants to purchase 6 million Class-A common shares in a private placement, and the transaction is to be accretive to Starwood Financial's earnings per share.

The transaction consolidates Starwood's position as the largest publicly traded financed company that is focused exclusively on the commercial real estate industry and brings its equity base to $1 billion. For LFREI, the transaction allows it to form a long-term strategic alliance with the leading operating company in the structured commercial real estate lending business.

Brandywine secures $199 million loan from several properties Brandywine Realty Trust has secured a $199 million, five-year loan agreement.

The loan has a fixed interest rate of 7.18%, closed in January 1999 and is secured by mortgages on several properties - Park 80 in Saddlebrook, N.J., One and Three Christina in Wilmington, Del., and 10000 and 15000 Midatlantic Drive in Mt. Laurel, N.J. Funds from the proceeds will be used to reduce the company's credit facility balance.

NationsBanc Montgomery Securities was the financial adviser for the transaction.

Parmann Commercial raises its loan limit by $500,000 Parmann Commercial Funding has raised its loan limit from $1.5 million to $2 million to take advantage of weaknesses in the CMBS market.

The Ramsey, N.J.-based company is also making non-recourse a standard feature on loans over $1 million.

Marc Thomaes, Parmann's executive vice president says the company is also expanding its origination network, is actively hiring loan officers and is soliciting people from companies less fortunate than Parmann.

Parmann will continue to offer loan products from $150,000 to $20 million in its small and large loan programs.

According to Thomaes, the company dropped its spreads 20 to 25 basis points last month, which, he says, "is a reflection of some further stabilization in the market."

Boston-based REIT files shelf registration statement Boston Properties filed a shelf registration statement with the Securities & Exchange Commission that covers up to an aggregate of $1.5 billion of common stock, preferred stock and warrants.

The securities in the registration statement may be offered in the future separately or together in amounts and at prices to be determined.

The self-advised REIT will use its net proceeds for general corporate purposes, such as repayment of debt, maintenance and development of currently owned properties and acquisition and development of new properties.

According to Edward Linde, president and CEO of Boston Properties, "The filing of this 'universal' shelf registration system is designed to give us the flexibility to launch registered offerings of equity securities quickly if and when the company's circumstances and market condition warrant."

Fourth-quarter results declared by Sun Communities Inc. Sun Communities Inc. has declared a dividend of $.49 per share for 1998's fourth quarter.

The Farmington Hills, Mich.-based REIT's dividend was payable to shareholders of record Jan. 4, 1999.

The yield on the annualized rate of $1.96 per share is 5.7%, and the company has 17.9 million outstanding shares.

Directors and employees of Sun Communities purchased $25.5 million in newly issued stock that was financed by a five-year personal loan program from Bank One Corp.

The 40 people who bought 801,625 shares and OP units are responsible for repayment of the loans.

Banc One Capital refinances 27 properties for AIMCO The Housing and Health Care Capital Group of Banc One Capital Markets, Inc. and Banc One Capital Funding Corp. refinanced 27 properties for the Apartment Investment & Management Co. (AIMCO).

AIMCO, a New York stock exchange REIT, is the world's largest private provider of rental housing with 400,000 apartment units.

The transaction converted cross-collateralized, tax-exempt, seven-day variable rate demand bonds into fixed-rate, stand-alone transactions.

Banc One underwrote the properties, which included 8,212 units in Texas, Tennessee, Arizona and Illinois. The loans are at a 23-year fully amortized rate.

Fannie Mae and Walden Residential Properties strike a deal Walden Residential Properties' REIT arranged a $250 million credit facility through WMF Washington Mortgage Corp. and Fannie Mae.

Fannie Mae issued a multifamily mortgage-backed security to fund the credit facility for the Walden/Drever Operating Partnership. The financing includes a combination of short-term floating rate and long-term fixed rate MBS. The structure allows for substitution and release of assets, and the facility can be expanded to $350 million.

The multifamily MBS is collateralized by more than 30 multifamily mortgages secured by properties in Texas, Arizona and Florida, which contain 10,827 units.

Company repurchases its common stock for the common good California Coastal Communities Inc. repurchased an aggregate of 490,000 shares of its common stock at an average cost of $5.96 per share.

The cost equals $2.9 million in unsolicited private transactions.

According to Raymond Pacini, California Coastal Communities' president and CEO, with this repurchasing, "Management's goal of maximizing value for shareholders is enhanced by retiring approximately 4.1% of the company's outstanding shares at a discount to recent trading prices."

Midland gets Fitch's highest rating of "Superior" Fitch IBCA upgraded Midland Loan Services' special service rating from "Above average" to "Superior," the highest of Fitch's five rating levels.

The decision was attributed to the company's experienced management and professional staff, its solid technological infrastructure and its commitment to the commercial mortgage-backed securities market.

Midland Services' 33 CMBS transactions total $17.7 billion in original principal balance.

Third transaction's a charm for Host Marriott Host Marriott's indirect subsidiary HMH Properties closed a $500 million senior notes offering.

The notes carry an 8.45% coupon rate with a final maturity date of Dec. 1, 2008.

"We intend to use the proceeds from this offering for expenditures in connection with our conversion to a REIT that would otherwise have been funded with borrowings from other sources," said Robert Parsons, Jr., executive vice president and COO for Host Marriott.

According to Parsons, the transaction is one of three corporate financings, totaling more than $3.4 billion, that the company has completed in the last six months.

AEW invests $35 million in AIMCO units and shares AEW Capital Management's Targeted Securities Fund has invested $35 million in the Apartment Investment and Management Co. (AIMCO). AEW purchased 1.4 million Class-B Preferred Partnership units and a warrant to purchase 875,000 shares of AIMCO Class-A common stock at an initial exercise price of $40 per share. The units have a 7.75% distribution rate per year and a liquidation preference of $25 per unit. The proceeds from the sale of the securities will be used to repay outstanding indebtedness.

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