(Read more on the debt and equity markets andmore on the multifamilymarket.)

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SAO PAULO, BRAZIL-GoldenTree InSite Partners of New York Cityhas teamed with a fast-growing real estate developer based in thisSouth American metropolis to invest $100 million of equity inprojects throughout the country. Office and residential propertieswill be the focus of the strategic alliance between GoldenTree andQuality Desenvolvimento Imobiliario, a venture that has alreadysecured its initial two investments.

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“We are very excited to partner with a developer of Quality'scaliber,” GoldenTree InSite president Tom Shapiro says in unveilingthe initiative. As it is, Shapiro's firm is already building threeresidential projects and one office complex on its own in Brazil, acommitment that Shapiro says underscores his firm's belief in theunderlying fundamentals of the country. “Strong GDP growth, fallinginterest rates and an increasingly liquid mortgage market all pointto continued strength in Brazilian real estate,” he says. Among theprojects GoldenTree InSite is already developing is a1.07-million-sf office complex in Rio de Janeiro, while the threeresidential projects are all in Sao Paulo. They include a pair of29-story buildings with 112 residences; two 34-story towersyielding 62 units; and Campo Belo, also a 220-unit complex thatwill also feature two towers.

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From Quality's perspective, the partnership will give the11-year-old company “access to tremendous real estate expertise”and the necessary capital to expand the firm's business, accordingto co-CEO Marcos Mariz de Oliveira Yunes. “We intend to developfirst-class office and residential projects throughout Brazil,capitalizing on strong underlying economic fundamentals anddemographic growth,” says the Quality principal.

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The first acquisitions with GoldenTree include a 25-story officecondominium building on Avenida Berrini, one of Sao Paulo's topbusiness addresses. The 275-unit property will target smallcompanies and professional offices, with the condos an average sizeof just 515 sf. The project is being built with another Brazilianfirm, Even Construtora, an entity that both GoldenTree and Qualityhave worked with on previous developments.

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The residential project purchased by the alliance is a 23-storybuilding in the Sao Paulo's Vila Carrao district, an increasinglypopular neighborhood that has seen substantial home priceappreciation in the past several years. The Vila Carrao project wasdesigned by noted Brazilian architect Jonas Birger. “As evidencedby these two initial deals, the alliance with Quality will give usaccess to a substantial deal pipeline in addition to significantproprietary deal flow for years to come,” says GoldenTree principalJosh Pristaw.

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