DEALS of the YEAR

Brooklyn MarketScope Page 26 ® Compensation Report Page 30 Corporate Perspectives Page 52 A Real Estate Media Publication March 2007 r r 7 e e t t 3 n n k e e c C C o l n e B e d l l a A r r T u d l o r F o W 7 n o t l i H o g e i DEDEAALL SS D n a of the S YEARYEAR Page 34 For Breaking News, Visit www.GlobeSt.com Sales DEALS of the YEAR Stuyvesant Town and Peter Cooper Village $5.4B Flips Landmark River, between 14th and 23rd Streets. Residential Complex The offer quickly attracted a plethora of In a deal that attracted more than 100 potential local, national and interna - potential buyers and made headlines tional investors, given the sheer number around the world both as the largest real of units and the opportunity to raise their estate transaction in US history and one rents by converting rent-stabilized apart - of the most controversial, MetLife Inc. ments to market rate. Despite its size, the affiliate Metropolitan Tower Life deal took a mere 72 days from the distri - Insurance Co. sold Stuyvesant Town and bution of the offering memorandum to Peter Cooper Village, a New York City the closing. residential complex it had held since Wachovia and Merrill Lynch provided developing it in the 1940s. A joint venture financing and served as financial advisors of Tishman Speyer Properties and for the deal, which had a pro forma cap BlackRock Realty paid $5.4 billion for rate of 3.2% and breaks down to $480,769 the community, which consists of some per unit, according to Real Capital 11,232 units in 110 buildings and houses Analytics. some 25,000 residents. The property also has 2,260 enclosed CB Richard Ellis marketed the 12.7- parking spaces in six garages and more million-sf property, which sits on eight than 111,000 sf of retail space, as well as acres across 25 city blocks along the East parks and green space. The Buyer’s Representatives: DEALMAKERS Fried, Frank, Harris, Shriver & Jacobson LLP Goodwin Procter LLP: Michael H. Glazer, Seller: Metropolitan Tower Life Insurance Co. Ross Gillman, Paul D. Schwartz, partners Buyer: Tishman Speyer Properties and Lenders: Wachovia; Merrill Lynch BlackRock Realty Seller’s Representatives: “Most deals are one or two properties; this CB Richard Ellis: Darcy Stacom and William one involved 110 buildings comprising Shanahan, vice chairmen and partners, New York City’s premier rental community. investment properties Successfully completing this sale took an Greenberg Traurig: Daniel J. Ansell, Robert incredible team effort and we are proud to J. Ivanhoe, Stephen L. Rabinowitz, Steven have been part of this historic transaction.” Shapiro, Reed D. Rubinstein, Steven DARCY STACOM AND Kirkpatrick, Kenneth Philbin WILLIAM SHANAHAN Mergers & DEALS of the YEAR Acquisitions Brookfield, Blackstone ties for $1.8 billion. Brookfield is adopt - Take Down Trizec for $8.9B ing Trizec’s operating platforms in Houston, Los Angeles and Washington, Among the countless public-to-private DC, and is merging Trizec’s New York transactions that took place in 2006, this one operations with its own headquarters stood out. Last fall, Brookfield Properties operations there. Corp. and the Blackstone Group teamed up Part of the deal was funded through to acquire some $3.7 bil - Chicago-based lion in financing Trizec Properties arranged by Inc. for $29.02 Goodwin per share in cash. Procter LLP, As part of the which included transaction, $600 million of Trizec Canada of mortgage debt Toronto, which and more than owned 38% of $3 billion of Trizec, also multi-tiered traded, for mezzanine debt, $30.98 per specifically, 12 Clark share. In total, cross-collateral - Gray the deal was val - ized tranches ued at $8.9 billion. Brookfield and its with an additional 48 newly created guar - institutional partners kicked in $1.3 bil - antors and pledgors. Goodwin Procter lion of equity, while the balance came also helped the buyers raise equity from from Blackstone. the New York State Teachers’ Retirement The transaction gave the New York System and the Government of City-based buyers 48 properties with 26 Singapore. million sf of prime office space in In addition to having to deal with reg - Houston, Los Angeles, New York City, ulatory entities in both the US and San Diego and Washington, DC that is Canada, the Trizec acquisition involved 90% occupied on average, as well as an a very complicated structure that also enterprise with 667 employees and 2005 included Hungarian and Cyprian enti - revenues of $722 million. Shortly before ties. And on the closing date, Canadian closing, Trizec sold 13 properties with government officials actually opened 13.3 million sf of space and other assets in their offices an hour early to formally Atlanta, Chicago, Dallas, Minneapolis approve the Trizec Canada plan of and Charlotte, NC, as well as its joint ven - arrangement and kick off the process of ture interests, to Blackstone and third par - closing the merger. The DEALMAKERS Graydon LLP; Goodwin Procter LLP (80-person team led by Gilbert Menna Buyers: Brookfield Properties: Ric and Sam Richardson, partners) Clark, president and chief executive officer; Blackstone Group: Jonathan Acquired Firm’s Advisors: Morgan Gray, senior managing director Stanley; JPMorgan; Lazard Freres; Acquired Firm: Trizec Properties and Vinson & Elkins; Hogan & Hartson LLP; Trizec Canada RBC Capital Markets; Phillips & Buyer’s Advisors: Bear Stearns & Co. Vineberg LLP Inc.; Merrill Lynch; Deutsche Bank; Lenders: Merrill Lynch; Bear Stearns; Goodman and Carr LLP; Simpson Deutsche Bank; Morgan Stanley; Royal Thacher & Bartlett LLP; Blake Cassels & Bank of Canada. Copyright © 2007 ALM Properties, Inc. All rights reserved..

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