Citigroup to write off 3 Billion in CDO's

By Andrew Dowell
From The Wall Street Journal Online

NEW YORK -- Bank of America Corp. said Tuesday it will take a pretax write-down of about $3 billion in the fourth quarter to reflect a drop in value of securities related to mortgages and will spend $600 million supporting in-house money-market funds that are exposed to troubled financing entities called structured investment vehicles.

The bank also will suffer a $300 million impairment of the value of a mezzanine investment, Chief Financial Officer Joseph Price told analysts in New York.

Mr. Price also said the market for syndicating loans made to finance leveraged buyouts, while somewhat improved from the summer, remains "fragile" and will be tested by big deals that banks like Bank of America are bringing to market soon.

The disclosures make Bank of America the latest institution to lift the lid on the damage done by its exposure to positions harmed by the implosion of the market for subprime mortgage loans.

Analysts in particular have been concerned about losses related to so-called collateralized debt obligations, which bundle loans and other securities and then slice them into new debt. The market for CDOs has collapsed due to concerns about their exposure to subprime mortgages. Conditions in that market could worsen, Mr. Price warned.

"There could be an additional diminution of value," he said.

The bank cut back its share buybacks to restore its capital levels after completing its acquisition of LaSalle Bank Corp. on Oct. 1. Bank of America won't restore those cuts in buybacks before the second half of next year, Mr. Price said.

Bank of America shares recently were up 72 cents, or 1.6%, at $44.70.

Mortgage-related write downs across the banking industry were more than $40 billion in the third quarter, and the fourth quarter could end up being worse. Along with Bank of America, Wachovia Corp. last week marked down the value of its loan-backed securities by about $1.1 billion, Citigroup Inc. has said it will write down as much as $11 billion and Morgan Stanley anticipates a write-down of up to $6 billion in the fourth quarter.

-- The Associated Press contributed to this article

Retail Roundup Nov. 2007

CoStar Reports on Retail Expansion Plans, New Developments, Acquisitions/Mergers/Sales, Cutbacks, Personnel, Sustainability and more...
This week in the Retail Roundup, CoStar reports on expansions and new concepts at Starbucks, TJX, Charlotte Russe, Pet Supermarket, Qdoba Mexican Grill and Relax the Back; new retail developments in IL, VA, TX and NY; acquisition, merger, or sale activity at The Shoe Box, F.A.O. Schwarz, Big Dog, Luxottica, Susser, Party City, Wendy's, Zale and Westfield; Dispositions or Cutbacks at Discovery Channel, BP and Steak 'N Shake; sustainability efforts at Wal-Mart, Simon, Glimcher and JLL; and more.

Read More Here

The True Cost of Building Green Real Estate

http://www.wbcsd.org/DocRoot/seqH6hKIxVrTRYxAhemY/EEBSummaryReportFINAL.pdf

Recent Studies Show buildings consume 40% of all energy in most countries. This comprehensive report outlines the trends and growth of energy efficiency in real estate, and offers insight into the true cost of "Going Green"

Enjoy!

New York Real Estate Market from Arbor Realty Trust

n Arbor Realty Trust Inc.'s Q3 2007 conference call, the real estate investment trust's CEO Ivan Kaufman talks about the state of the commercial real estate market in New York (emphasis added):

Don Fandetti - Citigroup:
Hi. Ivan, quick question. Obviously, you've been involved in the New York market for quite sometime. There is a concern about financial services. Wanted to get your perspective from a commercial real estate standpoint and also can you comment on the outlook for the condo market in New York?

Ivan Kaufman, Chairman, President and CEO of Arbor:
Sure. First, regarding fortune we have a large part of our portfolio in the New York market and New York has been some sort of anomaly compared to the rest of United States. Some say it is the Europe, some say that New York is still the capital of the world financially. But the fact that the matter is that New York is still extremely on solid ground but let me give you my outlook a little bit on what I think.

If you have condo product to sell today, it is selling very, very nicely. Do I think that that market will soften up? We only got to rate our product to 30% discount to market.

So I think that what's happening on Wall Street. You would think that there would be some softness in the market. We haven't seen it yet but I expect that market to soften and all non-Prime products will suffer first. The client always retains itself fairly well.

But I think we'll have 10% to 20% softening on the prices but I guess if you look at the newspaper yesterday and you saw a guy buying a $150 million apartment, you'd be a little surprised. But that's my outlook, it will soften a little bit.

... It amazes me the rents that people have achieved over the last 12 months and we've guided our underwriters on luxury buildings to still maintain an underwriting profile depending on location of the $60 to $100 range, which is historically [what] New Yorkers supported [for the] new office market.

The $150, $175, $125 rents that were being achieved are not sustainable at least from our underwriting standards. I did hear for the first time these weeks some numbers are low... softening in the office market in New York City.

I suspect that there will some softening, I knew -- you will see office market rent coming down to be more inline with what historical rents have been with some level of appreciation, but not the levels that we have seen."

Duscany Financial Group - The client's best interest!

All Mortgage companies are not created equal. At Duscany Financial Group our mission is to offer you the benefits of dealing with a team whose dedication to service and excellence is unparalleled in the industry.

By combining dedication with experience and utilizing multiple funding sources we are equipped to provide our clients the opportunity to maximize the value of their acquisition or refinance

We have only one goal throughout: "the client's best interest!"

Commercial Loans

State By State Regulatory office for Commercial Mortgage Brokers

http://www.vecfinancial.com/portal/content/default/broker/articles/pdf/BrokeringRegulationsByState.pdf

Marketing Yourself as a Commercial Mortgage Broker

What you know makes all the difference.

Countless surveys and articles have been written about how an independent commercial mortgage broker can market themselves. You can attend seminars, read books, listen to web broadcasts, or get the advice of your business associates. Marketing advice is everywhere, but who gets it? Who does it right? What can you do to bring clients to your doorstep? I’m not talking about leads, you can buy leads. I’m talking about real clients, the kind of clients that need your expertise, and will pay you real money to get it. I will tell you who will not come knocking at your door. Clients that don’t know you exist.

Ok here is the secret to marketing. Do something. Whether right or wrong, do something. If you do nothing, it will always be the wrong thing. Don’t be afraid to get your name out there. If you do something, you will be right some of the time and “some of the time” will bring you clients. It’s not about a fancy ad campaign. Most of us can’t afford that sort of expense and it won’t work anyway. What clients need in the commercial mortgage industry is expertise and options. Options that will get their deals funded, and options that you, the expert commercial mortgage broker can offer. Educate those clients and you will reap the rewards.

Step 1- Figure out what makes you unique. Why would someone want to work with you to finance their commercial mortgage? Are you knowledgeable about the mortgage industry? Do you have multiple commercial lender contacts that make you invaluable to a potential client? If so, let them know.

Step 2- Write articles, send informational emails, write a newsletter, speak at investor events, anything to let people know who you are and why they need to do business with you. Above all educate your clients about yourself and about the commercial mortgage industry. Don’t assume that they know what they are doing, assure they know what they are doing. It will make your job easier in the long run.

Step 3- Do it with a smile, self confidence, and a helpful spirit. No one wants to work with someone who is condescending or pessimistic. A lot of people have made it far with a smile and a great attitude. Know you can do it and get out there and do it. Henry Ford once said “Whether you think you can or you can’t, you’re right”.

My time in military service taught me one great life lesson. That lesson is to control the things in your life that you can control and don’t worry about the things you have no control over. There is nothing you can do to change those things. Think about that for a moment. How much time do you spend worrying about interest rates, traffic, or global warming? These are all things you have no control over, so don’t worry about them. Whether your phone will ring tomorrow, next week, or next month with your next commercial deal is something you can control. Something you and only you can make happen. Take some time to decide what works best for you. What fits your style and abilities? Are you a good writer? Then write some articles and educate the commercial investors in your area on commercial finance. Are you better face to face? Join every investor or community group you can and go meet people. Having no budget is not an excuse for not marketing.

They only secret is to do something. No one knows your business better than you do. What makes you different? Why should someone do business with you? All you have to do is figure that out and let people know. Get the word out any way you can. Marketing is not magic.