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NEW YORK CITY—If 2011 serves as any indication, much of the equity generated in the industry this year may well come through recapitalizations. Last year saw a blizzard of recapsfrom the SL Green Realty Corp.'s $425.7-million recap of 180 Maiden Ln. with developer the Moinan Group, to Keystone Property Group's $23.8 million recap of Sentry Park West in Blue Bell, PA.

CBRE's Darcy Stacom says that “last year more than 50% of the volume was recaps.” She adds that she anticipates that 2012 could bring much of the same. “Before when we brought out a couple of the recapitalizations in a brokered format, people were pretty surprised,” she says. “Up and until then, recapitalizations had occurred when a partner would say to an operator, 'I want to be bought out'. The operator would then go run the auction to find a new partner and thereby take out the existing partner. The existing partner, in a lot of instances, felt there had been something left on the table, so we started to just go out directly with them.”

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