[IMGCAP(2)]The portfolio is currently 99.6% occupied with anaverage lease term of 9.2 years. Nearly half of the approximately11.9-million-sf portfolio is leased to tenants who are ratedinvestment grade. An HFF spokesperson tells GlobeSt.com that "thisjust closed," however she could not specify anything further andcould not discuss the location of the properties at this time. Shealso could not say who the portfolio was purchased from, noting "wedid not handle the sale."

[IMGCAP(3)]iStar representatives did not respond to GlobeSt.comqueries by deadline, however in the company's first quarter 2008results, which was issued only days ago, the firm says that thetransaction represented $1.1 billion of net book value and anappraised value of $1.6 billion. The company has receivedapproximately $810 million of proceeds from the initial closing ofthe financing and expects to receive the balance--$150 million--ofthe proceeds prior to the end of the second quarter, subject to thesatisfaction of customary real estate closing conditions. Thethree-year financing is pre-payable in 20 months. "We used theinitial proceeds together with other available corporate funds, torepay the remaining balance on the interim Fremont facility,"the firm says.

[IMGCAP(4)]HFF's Krolman says that "historically, iStar wouldhave obtained financing on an unsecured basis by utilizing thecompany's BBB, investment grade credit rating. However, the currentmarket conditions are such that it was more efficient and costeffective to finance a subset of their existing single tenantportfolio on a secured basis."