June 30, 2010 03:01 ET

Equastone Real Estate Investment Advisors: Equastone Restructures Loan, Adds Peloton, JLL, and Cousins to the Team; Company Positions for Market Recovery, Hires CBRE to Seek Fresh Equity Capital

DALLAS, TX--(Marketwire - June 30, 2010) -  Equastone has reached an understanding to restructure a $300 + million loan on its 2.9 million square foot portfolio of office properties located in several Dallas submarkets. The landmark transaction reinforces Equastone's position as a formidable Dallas landlord. In addition to extending the loan, the restructuring provides additional funding for building improvements, tenant improvements and leasing commissions.

The loan restructuring heralds optimism for both Equastone and Dallas. To lead the company in the developing market recovery, Equastone has promoted Kirk Cypel to the position of Chief Executive Officer. Cypel states, "Based upon my tenure, Equastone deserves to be seen as an aggressive company that lives up to its word. When we commit to a deal, we perform as promised. We properly comply with our tenant obligations, we pay our contractors and we pay brokerage commissions. This restructuring gives us a greater ability to do just that. But even before restructuring this loan we signed a 90,000 square foot lease at the Addison. That's a pretty big lease. It cost a few million to do that deal and there was some question as to whether we could perform. Well go ahead and judge us: The premises were completed on time, the tenant's ready to move in, and everybody's getting paid."

In connection with this restructuring, the company is bringing additional change. According to Ron Skipper, Equastone's Senior Vice President of Operations, it's time for a brand new start, "Although we've received great service from the companies and individuals who have worked with us in the past, we see this opportunity as a time to restart with a fresh team and some new, but familiar, faces." Peloton Commercial Real Estate will be a key member of that team. T.D. Briggs, a Peloton principal, said, "Peloton is excited about being part of the team that will represent Equastone in this marketplace. With Peloton, Jones Lang LaSalle, and Cousins, Equastone has assembled an impressive group of professionals to reintroduce the company to the marketplace. I can already feel the energy and we're anxious to start."

Peloton will be managing the entire real estate portfolio and will provide leasing services to certain of Equastone's properties such as 3333 Lee Parkway, The Aberdeen, and Palisades Central I & II, in the Richardson, Far North Dallas, and Uptown markets. Jones Lang LaSalle will provide the leasing for Stemmons Place and Equastone's Las Colinas Urban Center properties at 125 East John Carpenter and 5100 North O'Connor. Cousins Properties will provide leasing services for MacArthur Center I&II in the Las Colinas Office Center.

Equastone intends to be a long-term player in Dallas and the Texas markets. Mark Oemcke, Equastone's Chief Financial Officer, says, "We're on the doorstep of some great opportunities. Due to macroeconomic rumblings, it's not clear when those opportunities will fully present themselves. We take the long-term view. It's sometimes too easy to forget we live in a great country with a resourceful and resilient economy. We are already seeing the signs of economic recovery. If we can position Equastone to navigate the inevitable bumps and twists in such a recovery, we will have a leadership position in what is becoming our nation's most dominant regional economy."

As part of the company's long term positioning strategy, Equastone has retained CB Richard Ellis to raise fresh equity to recapitalize the existing portfolio. Gary Carr, an Executive Vice President with CBRE's Investment Properties' Institutional Group, is leading the search for a strategic partner, "CBRE has done a fair amount of business with Equastone over the past few years, not just in Dallas but in other markets. We're impressed with how the company conducts itself and we believe in this team. Having barely started this search, we've already received interest from highly qualified parties. I'm thrilled to be in a position to make strategic introductions and be seen as a part of Equastone's future."

If you would like more information on this topic or schedule an interview with Kirk Cypel, Ron Skipper or other members of the team, please call Janice Corn at (858) 812-3245 or email Janice at jcorn@equastone.com.