Younan, commenting on the deal with Rubicon Capital, says thatYounan Finance is "continuing our aggressive acquisitionactivities" to add to the firm's existing portfolio of securities.He says that the company will continue to purchase stabilized,performing notes that are backed by assets in key markets.

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Most of the assets that back the new Younan acquisition operateat 100% occupancy with a stable tenant base that includes federalgovernment agencies and Fortune 100 companies. This will ensure"immediate, positive cash flow," Younan adds.

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Younan formed its Finance Group in April this year to acquire abroad range of debt and debt-related securities and instrumentsbacked by commercial real estate. The group initially plans toinvest up to $200 million in performing and underperforming officeloans throughout the country in transactions ranging from $5million to $100 million.

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Although the initial plan for Younan Finance called forinvesting in both performing and nonperforming loans, Younan toldGlobeSt.com in an interview earlier this year that the company hasso many opportunities to invest in performing loans that it maywell be able to place the entire $200 million without turning tononperforming loans. In connection with this latest debtacquisition, Younan observes that, "Despite the substantivechallenges in the credit markets, we continue to be presented withattractive investment opportunities."

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Younan acquired its first loan in the spring of this year, a$22.9-million mezzanine note on the 1.4-million-sf ThanksgivingTower in Dallas. In May the company signed a contract to acquire aB note that is part of a first mortgage for a 290,820-sf class Aoffice building and a 42,685-sf 24-Hour Fitness club at a propertycalled Orange Tower in Orange County.

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