In this Issue:

Deals Update: 300 S. Riverside Sale Closes at Around $194 Million; John Hancock Tower Sells for $930 Million; ProLogis to Sell Catellus Retail and Mixed-Use Assets for $505 Mil.; LA Private Equity Firm and Australian REIT Acquire 21 Property U.S. Portfolio; Gramercy Closes on $390M in SL Green Deals; Hudson Pacific Expands San Francisco Portfolio with 2 Office Property Transactions; KBS REIT Acquires Granite Tower in Denver; Google Completes Purchase of New York Office Building in Manhattan Expansion; National City Tower Sold for $115 Million; Iconic Downtown Miami Office Tower Trades for $105.5M; Healthcare Trust of America, Inc. Acquires $102,045,000 Multi-State Hospital Portfolio; Brookfield Acquires Houston Tower for $321.5 Million; HRE Capital Oversees $122.6M Disposition; First Potomac Buys Office in DC's Golden Triangle for $49.5M; Surge in Growth at Apple Prompts 100-Acre Cupertino Acquisition; Brookfield Sells Washington, DC property to World Bank for $ 216M; Navistar Closes on Alcatel-Lucent Campus; Tishman Speyer closes North River Tower sale for $385M; Hyatt Center Trades for $625 Million; Harbor Group International Acquires 1412 Broadway; ING Clarion Adds Millennium at Metro Park for $119M; and HCP to Acquire Assets of HCR ManorCare in $6.1B Sale- Leaseback.

Retail: TPG Capital Buys Catellus Sites for $505M; Equity One to Pay $72M for 3 Long Beach Retail Centers; Promenade Shops at Centerra Sold for $75M; Premier 352,000-SF Retail Center Commands $70M; Washington Real Estate Investment Trust Acquires Gateway Overlook Shopping Center for $88.35 Million; Temecula Shopping Center Purchased; Shopping Center Deal Closes in Arizona; Regency Buys Chicago Area Shopping Center for $64M; and PS usiness Parks Buys Tysons Portfolio for $140M.

Industrial: Duke Realty Beefs up Industrial Portfolio. Resort/Hotel Chesapeake Buys Le Meridien Hotel for $143M; NYC-Area Hotel Portfolio Sells for $164M; Sheraton Premiere Hotel in VA Sells for $84.5 Million; Chartres Lodging Completes Acquisition of 451 Room Ocean Resort Waikiki; Irvine Co. Buys Pacific Arts Plaza in Costa Mesa; LaSalle Adds Fourth Hotel in Market for $39M; Blackstone Acquires Westin San Diego; Radisson Boston Hotel Hooks $75M Financing; Aspen Hotel Management Group and AEW Capital Management Acquire Three San Francisco Hotels; and Hyatt Sells 3 Local Hotels for $51 Million.

Residential: Financing, Location Drive $53M Apartment Sale; CBRE Closes $74M in Apartment Sales; Magic Johnson Firm in $20M Purchase of Oakland Complex; and Fallon/Cornerstone JV Sells Boston Multifamily Complex for $194M.

EQUITY & DEBT UPDATES: Real Money: The FDIC Sells Four Loan Portfolios Totaling $1.22 Bil.; Starwood Property Trust Extends $271.9 in Loans; GE to Sell Mortgage Assets to Santander; Kennedy Wilson Acquires $82.5M Loan Portfolio; Partnership Acquires Two FDIC Portfolios; Charter Hill Retail REIT Sells Interest in U.S. Portfolio; CBRE Arranges $166.6 Million National Multi-Housing Portfolio Refinance; Hudson Realty Grabs $102M in Loans at FDIC Auction; Blackstone Said to Seize 14 Columbia Sussex Hotels it Sold Five Years Ago; Blackstone Said to Near Agreement on Restructuring of Equity Office Debt; and Beacon Capital Closes on Loan Modification.

Government Action & Analysis Updates: Riding the Unlikely Commercial Real Estate Rebound; Revival of CMBS Market Expected; and FDIC Plans to Sell $1B of Bonds Tied to Real Estate.

Special Features: $876.45 Million CMBS Issue from Goldman And Citigroup Announced; and CalPERS Transitions $1.9 Bil. U.S. Industrial Real Estate Portfolio to GI Partners.