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					        MARK HESCHMEYER, EDITOR                                              OCTOBER 25, 2012                                    WWW.COSTAR.COM

                                      CORPORATIONS PUBLISHED BY COSTAR NEWS

                                                                              IN THIS WEEK'S ISSUE:
Bankers Give 6 Reasons To Shop for a CRE Loan Now; 2 Reasons Not To .................................................................................... 1
QE3: A Sequel That Seems To Be Living Up to the Original's Expectations ..................................................................................... 5
FINRA Slaps REIT Fundraiser with Fines, Sanction ......................................................................................................................... 8
Watch List: $742 Mil. Office Loan Transfers to Special Servicing ................................................................................................... 10
Univ. of Phoenix Closing 115 Schools and Campuses .................................................................................................................... 10
AMD Cutting Staff, Consolidating Locations .................................................................................................................................... 11
Hartmarx Parent Goes into Chapter 11 Alteration ........................................................................................................................... 11
Back Yard Burgers Closes 19 Locations; Will Seek Concessions on Others .................................................................................. 11
Closures & Layoffs .......................................................................................................................................................................... 12
Macerich To Buy Pair of Malls for $1.25 Bil. .................................................................................................................................... 13
FDIC Sells Oaktree a Pool of $166 Mil. in CRE Loans .................................................................................................................... 14
Regulators Close Three Banks; 2 in Florida, 1 in Missouri .............................................................................................................. 14
Popeyes To Pop Up in Minnesota, Northern California ................................................................................................................... 15

        Bankers Give 6 Reasons To Shop for a CRE Loan Now; 2 Reasons Not To
              Third Quarter Bank Earnings Reports Clear Up Picture of Commercial Real Estate Conditions
      The second week after the end of quarter is always a revealing time for commercial real estate. That's when
      many of the nation's largest bank holding companies go live to discuss their earnings, and how their CRE lending
      is faring. In this latest go-around, the bank executives provided the clearest picture of CRE conditions that they
      have in a long time.

      As we do each quarter, we present the most telling statements regarding bank CRE-related activities from the
      presentations we heard:

             •      For major banks, the recession is receding further and further away in the rearview mirror.
             •      Provisions for loan losses are falling, which means banks have more money available to lend.
             •      The disposition values of foreclosed assets are increasing, so banks plan to make more property
                    available for sale.
             •      Many banks have cleared through their distressed assets and are ready to start growing again.
             •      They see demand in the marketplace increasing.
             •      There is pressure on pricing as competition for loans heats up.
             •      However, lenders view CRE as still inherently risky, but federal banking policies are mitigating the risks,
             •      Conditions will continue to get better, as long as we don't go over the 'fiscal cliff.'

      We'll take you through each point and tell you who said what.

      "If [you] step back a little bit, a couple issues are encouraging. First of all, real estate is getting better. We saw it
      in housing a year ago and every quarter, we have more confidence. We're not back to where we need to be and
      it's not as robust as we all want to be, but that's good on the repurchase side as values go up. And secondly, we
      continue to get further and further away -- or it's within a rearview mirror, the 2006 and 2008 portfolio."
      John G. Stumpf, chairman, president and CEO of Wells Fargo & Co.

 THE WATCH LIST NEWSLETTER                                                                                                                                                                         1
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  "We could certainly envision more zero [dollar] provision quarters going forward. So long as we have healthy
  coverage of our non-performers and we see a continued decrease in classified assets, our methodology really
  kind of drives down the required reserves and we think it will go that way. So I would anticipate that that would
  be the case going into at least early 2013."
  Kim R. Bingham – executive vice president and chief credit officer for Cathay General Bancorp

  "I'm particularly encouraged with the drop in OREO expenses to nearly zero and while this may not be sustained,
  there is a positive trend in collateral values within many of our markets, which is leading to gains on sale of some
  of our foreclosed real estate that are relative to book values."
  Harris H. Simmons, chairman, president and CEO of Zions Bancorp.

  "Other real estate was flat at $77 million during the quarter with $11 million in additions largely offset by $9
  million in sales. For the first time since the financial crisis, sales proceeds exceeded book value as we have seen
  a shift from often receiving lowball offers for real estate holdings to bids above our book balance on occasion.
  Repossessed land is held at 17% of original appraisal and improved property is held at 40%."
  Dale M. Gibbons, executive vice president and chief financial officer of Western Alliance Bancorp.

  "For the first time in several quarters we've seen growth in commercial real estate. We shaped that business
  down when things got tough to a level we thought made sense from a risk perspective. And we are now in a
  position to be able to start growing that. While we're focused on doing things with our customers, we've seen one
  or two portfolios, not huge size, that have come up that we've been able to bring in. When we do that, the first
  thing that we look at in those portfolio are how much of the exposure of the portfolios to people that we do
  business with and we'd like to do more [with]. We've had a couple situations where we've been able to bring
  those portfolios in and become more significant with clients that we want to become more significant with."
  Bruce R. Thompson, chief financial officer of Bank of America Corp.

  "We are beginning to see fair amount of activity -- more than people just nibbling around the edges from a
  transaction standpoint. There remains a big segment of resort and hotel inventory that was moved to problem
  loan status through the crisis that will represent future opportunity as we move forward as those assets reprice.
  We think that commercial lending represents a pretty good opportunity for us moving forward.
  Peter S. Ho, chairman, president and CEO of Bank of Hawaii Corp.

  "Another thing to think about is 75% of our mortgage volume this past quarter was refinance and 25% was
  purchase money; that's still a very low overall purchase money market. As we see real estate continue to
  improve as refis ebb, we might see the purchase volume pick up. Furthermore, as the purchasing volume or if
  rate rise and those things slow down, then the servicing (asset becomes) more valuable.
  Timothy J. Sloan – senior executive vice president and chief financial officer of Wells Fargo & Co.

  Our "largest increase in loans came in our commercial real estate portfolio, which increased 6% from June 30,
  2012. We have seen a considerable increase in commercial real estate refinancing activity, as borrowers are
  looking to lock-in lower interest rates before they inevitably start to rise again."
  Alvin D. Kang, CEO of BBCN Bancorp Inc.

  "There are in abundance of stabilized properties that need refinancing and there are fewer lenders that have
  returned to these markets and those that are active seem to be showing quite a bit of discipline in structures and
  in pricing."
  Richard D. Fairbank, chairman, CEO and president of Capital One Financial Corp.

THE WATCH LIST NEWSLETTER                                                                                                2
  "Particularly at the commercial real estate side, the life [insurance] companies have come back into play along
  with the (conduits) are actually slowly coming back into play as an alternative. And that puts a little bit of pressure
  on pricing. Overall while I would expect the competition to be very aggressive, it hasn't been too bad relative to
  what we've seen in the past."
  Rene F. Jones, executive vice president and chief financial officer of M&T Bank Corp.

  "The larger loans are coming under more significant competitive pricing pressure than smaller balance loans as
  you might imagine. The one impact that was more significant than we had expected this quarter quite frankly was
  the compression we got out of maturing loans and the compression we got out of loans that were repriced of
  maturity, were fairly equal."
  William Lloyd Prater, treasurer and chief financial officer of BancorpSouth Inc.

  "The market pressures are having an impact, there's no doubt about that, especially in more of the commodity
  driven deals. So, if you are going out to the market to finance a fully stabilized leased apartment complex, we are
  not competing for that. If you're going out to the market to finance a fully leased 100% stabilized anchored retail
  center, we're not competing for that. We are in the value-add business, we want our customers to pay us for our
  relationship, the level of service, what we're doing and so we can't compete in everything."
  Robert G. Sarver, chairman and CEO of Western Alliance Bancorp.

  "My personal view is that more so than any big change in the inherent loss on portfolio is the effect that
  delinquencies overall in the United States are on real estate and delinquencies specifically on residential
  mortgages are really, really high still. Why you're seeing improvement, is because the underlying rate

THE WATCH LIST NEWSLETTER                                                                                                   3
  environment which is really being stimulated by the Fed and the policies. So we believe there really hasn't been
  a big change in the inherent risk in the portfolios. We remain cautious as we kind of look at the underlying
  portfolio, but obviously things are pretty stable.
  Rene F. Jones, executive vice president and chief financial officer of M&T Bank Corp.

  "Going forward, we expect commercial real estate loans to continue to decline … the current uncertain economic
  environment does bear on demand for new loans, and we intend to continue to exercise relationship pricing
  Karen L. Parkhill, chief financial officer and vice chairman Comerica Inc.

  "I think you would see our company growing the [CRE] book 6% to 7% on an annualized basis up until now and I
  think I'm going to guide you down to 4% to 6% in the next quarter and until we know what happens after the
  elections, fiscal cliff. We don't want to go too far out when there's too many variables. I do think that it's
  (emblematic) that with customers feeling less comfortable I think it makes sense too. I wish it was higher, but I
  think it makes sense, because you've got the near-term election uncertainty, you've got the fiscal cliff uncertainty,
  you've got the European recession, you've got the economy, and all those are not going to be solved imminently,
  but they are going to solved eventually. So I'm going to be pleased with 4% to 6% annualized [growth]. We'll take
  anything we can get above that. Commercial is a great proxy for I think sentiment and while it's still growing
  nicely, people are getting more lines than they are using and they are still not using the lines they have. So I
  think that uncertainty reminds us that there is still plenty of pent-up possibility."
  Richard K. Davis, chairman, president and CEO of U.S. Bancorp

   QE3: A Sequel That Seems To Be Living Up to the Original's Expectations
  As the presidential campaigns began their home stretch following Labor Day weekend, it wasn't surprising that
  people in some camps dismissed the Federal Reserve's decision to initiate a third round of quantitative easing
  (QE3) as political hocus pocus.

  One month in, though, it appears the latest round of stimulus is sparking some expected and unexpected good.

  Under the September plan, the Federal Reserve agreed to purchase additional agency mortgage-backed
  securities at a pace of $40 billion per month. And, if the outlook for the labor market does not improve
  substantially, the Fed said it would continue that level of purchasing, or perhaps even increase it, until
  "improvement is achieved in a context of price stability."

  At the time, John O'Callahan, capital markets strategist for CoStar Group's PPR, noted that, coming on top of the
  Fed's existing purchases, QE3's incremental ongoing flow of $40 billion per month is pretty significant.

  "It looks to be between 25%-30% of monthly new issuance, on average (and over 50% when combined with
  existing purchases), assuming refi volume continues to be strong in the future, which means the Fed will crowd
  out other investors such as some mortgage REITs," Callahan noted.

  And that is what the market is seeing, according to Marielle Jan de Beur, managing director CMBS and Real
  Estate Research at Wells Fargo Securities. The Fed's mortgage purchases are displacing private mortgage
  investors in the residential mortgage-backed securities market.

  "Putting QE3 into perspective, the Fed's $60.65 billion of gross mortgage purchase commitments amounted to
  roughly 50% of the gross agency MBS new issuance for the month of September," Jan de Beur reported. "On
  the other hand, the Fed's demand accounted for nearly 20 times the net supply of $3.07 billion for the month."

THE WATCH LIST NEWSLETTER                                                                                                 5
  (As this is Halloween week, you Addams Family fans will understand that header.)

  And where did all those displaced residential buyers go? Interestingly, they began showing up in the CMBS

  "The displacement of private investors in the mortgage market means that other markets, such as CMBS, are
  likely to continue experiencing spillover demand as long as QE3 remains in effect," Jan de Beur said.

  "Since mid-July, the credit curve for 2012 vintage CMBS has flattened 165 basis points, as measured by the
  spread between Aaa rated A-S tranches and Baa2 tranches," she added. "The Fed's mortgage purchases are
  programmatic, and the effect is likely to be ongoing. For CMBS, we believe the implication is a further decline in
  the steepness of the credit curve."

  And finally, "Because new issue Baa tranches face less uncertainty regarding upcoming bank capital and
  insurance company risk-scoring changes than legacy securities, yield buyers may focus on this segment and
  spreads may continue to tighten, in our view."

  CoStar's O'Callahan said it appears that QE3 is impacting some areas a lot more than others.

  "CMBS continues to benefit while the boost to equities is beginning to falter already. With the extreme tightening
  of Agency-backed RMBS spreads resulting from QE3, the scramble in the search for yield has become even
  more frenzied - hence the rapid CMBS spread tightening over the past month," O'Callahan said.

  "It's not a surprise to us that investors have found value in CMBS," he added. "We pointed out the attractive
  relative value at our client conference prior to QE3. However, the speed at which spreads have tightened is

  The supply-demand imbalance is probably a key factor in the rapid price appreciation, he said, as those
  investors holding quality CMBS bonds don't want to part with them for the lack of anything else to buy with the
  proceeds in this environment.
  "In light of the Fed's ongoing actions, CMBS still appears to be relatively attractive and investors will likely
  continue to push spreads even tighter, especially down in credit," O'Callahan said. "We expect supply to
  continue to remain constrained, although at some point it will make economic sense for some holders to sell and
  take gains."

  As with any investment though, high prices doesn't mean risk is lower. In fact, risk may be higher now,
  O'Callahan said. With record price levels and low yields across many asset classes today, it's appropriate to
  question if the risk-reward proposition is out of whack, maybe even reflecting the formation of a bubble.

  "We had a discussion about "bubbles" at our client conference and only a few in the audience of roughly 100
  senior investment and risk managers raised their hands when asked if there may be bubbles forming as a result
  of the Fed's actions. It was surprising that only a few hands went up," he said. "The combination of cheap
  funding, leverage, a herd-like mentality, and excessive government manipulation makes for a strong air
  compressor from which to blow bubbles."

  And an abrupt shift in sentiment can be enough to pop a bubble, if one exists.

  "What will happen if investors' expectations regarding the Fed's future actions change abruptly, say under a
  Republican administration, for example?" O'Callahan asks. "Investors should be assessing the possible impacts
  of various scenarios playing out."

THE WATCH LIST NEWSLETTER                                                                                              7
                    FINRA Slaps REIT Fundraiser with Fines, Sanction
  The Financial Industry Regulatory Authority (FINRA) ordered David Lerner Associates Inc. (DLA) of Syosset, NY,
  to pay $12 million in restitution to affected customers who purchased shares in Apple REIT Ten, a non-traded $2
  billion real estate investment trust (REIT) DLA sold, and to customers who were charged excessive markups.

  As the sole distributor of the Apple REITs, DLA solicited thousands of customers, targeting unsophisticated
  investors and the elderly, selling the illiquid REIT without performing adequate due diligence to determine
  whether it was suitable for investors, according to FINRA.

  To sell Apple REIT Ten, DLA also used misleading marketing materials that presented performance results for
  the closed Apple REITs without disclosing to customers that income from those REITs was insufficient to support
  the distributions to unit owners, FINRA found.

  FINRA also fined DLA more than $2.3 million for charging unfair prices on municipal bonds and collateralized
  mortgage obligations (CMOs) it sold during a 30 month period, and for related supervisory violations.

  In addition, FINRA fined David Lerner, DLA's founder, president and CEO, $250,000, and suspended him for one
  year from the securities industry, followed by a two-year suspension from acting as a principal.

  According to FINRA, David Lerner personally made false claims regarding the investment returns, market values,
  and performance and prospects of the Apple REITs at numerous DLA investment seminars and in letters to
  customers. To encourage sales of Apple REIT Ten and discourage redemptions of shares of the closed REITs,
  he characterized the Apple REITs as, for example, a "fabulous cash cow" or a "gold mine," and he made

THE WATCH LIST NEWSLETTER                                                                                           8
  unfounded predictions regarding a merger and public listing of the closed Apple REITs, which he inappropriately
  claimed would result in a "windfall" to investors.

  Joseph C. Pickard, senior vice president and general counsel for David Lerner Associates, issued the following

  "In the last few years, David Lerner Associates has been forced to deal with several FINRA regulatory matters
  that have been very costly to defend and very distracting to the firm's efforts for its clients. David Lerner and the
  management of David Lerner Associates have decided it is time to move the company past these distractions
  and settle with the regulators. As part of that settlement, David Lerner will be stepping aside temporarily from
  David Lerner Associates for the next year."

  "In his absence, David Lerner Associates will move forward under the day-to-day management of its experienced
  executive and management teams led by John Dempsey, a thirty-three year veteran of the firm. Although David
  Lerner is stepping aside temporarily, he will become more involved with other non-broker/dealer business
  enterprises that have been developed over the years, such as the Spirit of America Mutual funds."

  David Lerner Associates continues to raise capital for Apple REIT Ten and other affiliated Richmond, VA-based
  Apple REITs.

THE WATCH LIST NEWSLETTER                                                                                                 9
           Watch List: $742 Mil. Office Loan Transfers to Special Servicing
  Information for these lead listings was provided by CoStar Group and Trepp LLC, an industry leader in providing surveillance
  data on loan and commercial real estate performance underlying the CMBS market.

  Fitch Ratings downgraded seven classes of Bear Stearns Commercial Mortgage Securities Trust, series 2007-
  PWR17 commercial mortgage pass-through certificates, following the transfer of a $741.9 million loan into
  special servicing.

  The downgrades are due to increased loss expectations, primarily associated with the specially serviced loans.

  The largest contributor to Fitch expected losses is the largest loan (8.96%), DRA/Colonial Office Portfolio. The
  interest-only loan is secured by 19 office properties that comprise 5.2 million square feet in six metropolitan
  statistical areas primarily in the South and Southeast.

  The loan is split into three equal pari passu notes. The loan transferred to special servicing in August 2012 for
  imminent default due to declining occupancy and significant rollover before its 2014 maturity of 26%.

  Most of the properties are located in secondary and tertiary markets where market rental rates have dropped
  significantly lower than in-place rents, which are expected to have substantial impact on the property's cash flow.

  C-III Asset Management, the special servicer, reports that the property's occupancy was 79.1% as of September

   Property                             Address                                        City             State     SF
                                        300, 400, 701, 801, 901 & 1001 International
   Heathrow Inter. Business Ctr.        Pkwy                                           Lake Mary            FL        835,201
   CC at Town Park                      100, 200 & 300 Colonial Center Pkwy            Lake Mary            FL        458,259
   CC at Colonnade                      3500, 3700 & 3800 Colonnade Pkwy               Birmingham           AL        419,387
   Colonial Place I & II                4300 & 4350 Cypress St.                        Tampa                FL        371,473
   Research Office Park                 12301-4 Research Blvd., Buildings III & IV     Austin               TX        357,689
   Peachtree Street                     1355 Peachtree St. NE                          Atlanta              GA        309,625
   Riverchase Center                    2100, 2200 & 2300 Riverchase Center            Birmingham           AL        306,143
   Concourse Center                     3501, 3503, 3505 & 3507 Frontage Road          Tampa                FL        294,369
   CP Town Park Combined                950 Market Promenade Ave.                      Lake Mary            FL        237,191
   Colonial Center at Bayside           17757 US Highway 19 North                      Clearwater           FL        212,882
   International Office Park            1800 & 1900 International Park Drive           Birmingham           AL        210,984
   Esplanade                            2101 Rexford Road                              Charlotte            NC        202,817
   CC at Town Park 600                  600 Colonial Center Parkway                    Lake Mary            FL        199,585
   Colonial Plaza                       2101 6th Ave. North                            Birmingham           AL        170,850
   Colonial Center at Blue Lake         3500 Blue Lake Drive                           Birmingham           AL        166,590
   Maitland Office Building             901 Lake Destiny Drive                         Maitland             FL        155,730
   Shops at Colonnade - Retail          3409-3443 Colonnade Pkwy                       Birmingham           AL        125,462
   One Independence Plaza               One Independence Drive                         Birmingham           AL        106,216
   HIBC 1000 Building                   1000 Business Center Drive                     Lake Mary            FL         87,066

                    Univ. of Phoenix Closing 115 Schools and Campuses
  Apollo Group Inc., the Phoenix-based owner of the for-profit University of Phoenix chain of colleges, plans to
  shutter115 locations as part of its plan to "re-engineer business processes and refine its delivery structure."

  The closures will consist of 90 learning and student resource centers, which are generally smaller satellite
  locations, and 25 of its campuses.

  The company has also begun implementing a workforce reduction and expects to decrease total headcount,
  excluding faculty, by 800 employees during fiscal year 2013.

THE WATCH LIST NEWSLETTER                                                                                                        10
  The changes will directly impact 13,000 students. These students will be offered support to continue their
  education at the University of Phoenix either online, through alternative on-ground arrangements or, in limited
  cases, at other University of Phoenix locations.

  The plan will preserve a national coast-to-coast network of 112 locations in 36 states, the District of Columbia
  and Puerto Rico.

                          AMD Cutting Staff, Consolidating Locations
  AMD (Advanced Micro Devices) has launched a restructuring plan designed to reduce operating expenses. A
  significant portion of Sunnyvale, CA-based AMD's restructuring plan that will be implemented in next two months
  will include a 15% global workforce reduction and site consolidations. At February 2012 employment levels, a
  15% reduction would entail about 1,665 workers.

  Rory Read, AMD president and CEO, said the changes were needed because of the significant changes roiling
  the PC industry. "It is clear that the trends we knew would re-shape the industry are happening at a much faster
  pace than we anticipated," Read said. "As a result, we must accelerate our strategic initiatives to position AMD to
  take advantage of these shifts and put in place a lower cost business model. Our restructuring efforts are
  designed to simplify our product development cycles, reduce our breakeven point and enable us to fund
  differentiated product roadmaps and strategic breakaway opportunities."

                      Hartmarx Parent Goes into Chapter 11 Alteration
  The buyer of the retailer / apparel firm formerly known as Hart Schaffner & Marx and then Hartmarx Corp. itself
  filed for bankruptcy protection this week, which means now both the buyer and the bought are operating under
  Chapter 11 reorganization.

  Privately-held HMX Acquisition Corp., and four affiliates including Quartet Real Estate LLC, filed for Chapter 11
  protection with the U.S. Bankruptcy Court in the Southern District of New York. In its filing, HMX is seeking a sale
  of the business.

  The company designs, manufactures and retails men's and women's business and leisure apparel and claims to
  be the largest manufacturer of men's tailored clothing.

  In January 2009, Hartmarx Corp., HMX's predecessor in interest, filed for chapter 11 bankruptcy protection. In
  the summer of 2009, HMX acquired its existing equity ownership against the backdrop of a U.S. recession, a
  difficult retail environment, and a need to improve Hartmarx's operations.

  New senior management was recruited and immediately began implementing a comprehensive operational
  turnaround focused on: a reconfigured growth strategy; brand revitalization and new product initiatives;
  streamlined operations; and centralized non-manufacturing operations.

  In the first half of this year, HMX implemented additional cost savings, including headcount reductions and
  curtailment of marketing expenditures and sought a debt restructuring. When debt talks fell through in July, HMX
  curtailed all inventory purchases.

  As talks broke down, debt holders began shopping the business. And as part of its bankruptcy reorganization,
  HMX has entered into a 'stalking horse' asset purchase agreement with Authentic Brands Group for a going
  concern sale.

  Back Yard Burgers Closes 19 Locations; Will Seek Concessions on Others
  Back Yard Burgers Inc., a Nashville-based regional quick service restaurant chain, plans to reduce operating
  expenses and restructure debt. Part of the plan calls for addressing underperforming locations.

THE WATCH LIST NEWSLETTER                                                                                                11
  The company filed a pre-negotiated Chapter 11 reorganization plan with the U.S. Bankruptcy Court for the
  District of Delaware. The filing does not include franchise-owned locations. Having already obtained the consent
  of its secured lender, the company anticipates the restructuring process will be completed in early 2013.

  Back Yard Burgers previously closed 19 company-owned locations due to underperformance and prohibitive
  costs, and it has hired GA Keen Realty to review its locations and initiate discussions with landlords regarding
  rent reductions, lease term modifications and other leasehold concessions.

                                              Closures & Layoffs
                                                                                   Closure     Layoff   Impact
   Company                  Address                          City          State   or Layoff   Number   Date
   Curesearch for           440 E. Huntington Drive, Suite
   Children's Cancer        40                               Arcadia       CA      Closure         85   10/31/2012
   Lovin Oven               16100 Foothill Blvd.             Azusa         CA      Layoff         571   10/31/2012
   Seven Oaks Country
   Club                     2000 Grand Lakes Ave.            Bakersfield   CA      Layoff          73   10/31/2012
   Pacific Steel Casting
   Co.                      1333 Second St.                  Berkeley      CA      Layoff         135   11/15/2012
   VWR International        3745 Bayshore Blvd.              Brisbane      CA      Closure         30    11/9/2012
   Albertsons               1000 N. Azusa Ave.               Covina        CA      Closure         61    11/4/2012
   River Ranch Fresh
   Foods                    175 N First St.                  El Centro     CA      Closure        459   11/24/2012
   San Diego Union-
   Tribune                  207 E.Pennsylvania Ave.          Escondido     CA      Layoff          46   11/30/2012
   Ameron International
   Wind Towers Division     13032 Slover Ave.                Fontana       CA      Closure        180   11/24/2012
   Albertsons               13220 Harbor Blvd.               Grove         CA      Closure         61    11/4/2012
   Albertsons               1000 S. Central Ave.             Glendale      CA      Closure         54    11/4/2012
   Albertsons               17120 Colima Road                Heights       CA      Closure         57    11/4/2012
   Teva Pharmaceuticals     19 Hughes                        Irvine        CA      Layoff          65   10/29/2012
   World Marketing          14407 Alondra Blvd.              La Mirada     CA      Closure         80   11/26/2012
                            3055 Comcast Place (Bldgs A &
   Comcast                  B                                Livermore     CA      Closure        435   11/30/2012
   Lawrence Livermore
   National Laboratory      7000 East Ave.                   Livermore     CA      Layoff         205   11/15/2012
   Abeo Management
   Corp.                    11999 San Vicente Blvd.          Los Angeles   CA      Closure         42   11/28/2012
   Albertsons               11875-A Pigeon Pass Road         Valley        CA      Closure         57    11/4/2012
   Comcast                  18665 Madrone Parkway            Morgan Hill   CA      Closure        220   11/30/2012
   Paragon Studios          2189 Leghorn St.                 View          CA      Closure         79   10/31/2012
   Savi Technology          351 & 381 East Evelyn Ave.       View          CA      Layoff          54   11/17/2012
   Albertsons               1100 N. Hammer Ave.              Norco         CA      Closure         55    11/4/2012
   Disney Interactive       5161 Lankershim Blvd.            Hollywood     CA      Layoff          99    11/5/2012
   San Diego Union-
   Tribune                  1722 South Coast Hwy             Oceanside     CA      Layoff          19   11/30/2012
   Albertsons               2522 S. Grove Ave.               Ontario       CA      Closure         52    11/4/2012
   Codexis                  200 Penobscot Drive              City          CA      Layoff         133   10/30/2012
   Albertsons               8310 Limonite Ave.               Riverside     CA      Closure         59    11/4/2012
   Albertsons               19725 E. Colima Road             Heights       CA      Closure         61    11/4/2012

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                                                                                       Closure     Layoff     Impact
   Company                   Address                             City          State   or Layoff   Number     Date
   Comcast                   4450 East Commerce Way              Sacramento    CA      Closure         410     11/30/2012
   La Hacienda Farms         1119 Rogge Road                     Salinas       CA      Closure           96    11/30/2012
   SVTC Technologies         3901 North First St.                San Jose      CA      Layoff          106     11/17/2012
                                                                 South San
   Carey Limousine           441 Voctory Ave., Unit C, 2nd Flr   Francisco     CA      Layoff            54   11/16/2012
                                                                 South San
   Elan Pharmaceuticals      180 Oyster Point Blvd.              Francisco     CA      Layoff          202    11/20/2012
   Rambus                    1050 Enterprise Way, Suite 700      Sunnyvale     CA      Layoff           68    10/30/2012
   Aero-Electric             568 Amapola Ave.                    Torrance      CA      Closure          23    11/23/2012
   Ricoh                     1123 & 1132 Warner Ave.             Tustin        CA      Closure          95    11/30/2012
   Albertsons                7227 Van Nuys Blvd.                 Van Nuys      CA      Closure          69     11/4/2012
   First American Home
   Buyers Protection
   Corp.                     7833 Haskell Ave.                   Van Nuys      CA      Layoff            62    11/9/2012
   Albertsons                13650-A Bear Valley Road            Victorville   CA      Closure           62    11/4/2012
   Albertsons                18730 E. Amar Road                  Walnut        CA      Closure           55    11/4/2012
   Medpoint Management       6400 Canoga Ave.                    Hills         CA      Closure           65   11/30/2012
   Rideout Home Health       939 Live Oak Blvd.                  Yuba City     CA      Layoff            44   11/11/2012

                           Macerich To Buy Pair of Malls for $1.25 Bil.
  By: Justin Sumner
  Vornado Realty Trust agreed to sell its Green Acres Mall in Valley Stream, NY to The Macerich Co. for $500
  million, or about $278 per square foot.

  In a separate agreement, Alexander's Inc., Vornado's 32.4% affiliate, also agreed to sell its Kings Plaza Mall in
  Brooklyn, NY to Macerich for $751 million, or about $626 per square foot.

  Green Acres Mall is in Long Island's southern Nassau County submarket. The 1.8 million-square-foot enclosed
  mall was built in 1958 on 96 acres. The center historically enjoys high occupancy and is anchored by Sears,
  Macy's, JC Penney and Kohls. Green Acres was renovated and expanded in 2007 and has 408,000 square feet
  of in-line mall tenant space that includes Aeropostale, American Eagle, Forever 21, H&M and Modell's sporting
  goods. The mall is 94% occupied and the mall tenant's annual sales per foot exceed $520.

  Net proceeds from the sale of Green Acres Mall will be $185 million after closing costs and repaying the existing
  loan, which Vornado refinanced in 2008 at $335 million. The sale will result in a financial statement gain of $195
  million, and a tax gain of nearly $304 million, which is expected to be deferred as part of a like-kind exchange.

  Kings Plaza Mall is in South Brooklyn near Flatbush and Avenue U. The 1.2 million-square-foot enclosed mall
  was built in 1969 on 24.3 acres. It is anchored by Macy's, Sears, Best Buy and Old Navy. The mall tenant's
  annual sales per square foot are $650. The center is currently 95% occupied and has an in-line tenant line-up
  that includes Aeropostale, American Eagle, Armani Exchange, Forever 21, H&M, MAC, Pink, Swarovski and
  Victoria's Secret.

  The financial statement gain from the sale of Kings Plaza Mall will be $602 million with a tax gain of nearly $624
  million. Vornado, for its part, will realize a financial statement gain of approximately $181 million and a tax gain of
  approximately $202 million. Both group's tax gains are expected to be paid out to shareholders as a special long-
  term capital gain dividend.

  Commenting on the transaction, Arthur Coppola, chairman and CEO of Macerich, said: "These transactions are
  consistent with our investment strategy of acquiring assets in the major markets where we have our best assets
  and selling non-core assets and recycling capital. This allows us to build on our New York portfolio and will be an
  excellent complement to Queens Center. At Kings Plaza and Green Acres there are substantial opportunities to
  replace lower sales producing tenants with higher productivity tenants, in a manner similar to what we
  accomplished after we acquired Queens Center."

THE WATCH LIST NEWSLETTER                                                                                                   13
  The sales of both malls are subject to customary closing conditions. Kings Plaza is expected to close in the
  fourth quarter of 2012. Green Acres is expected to close in the first quarter of 2013, and is contingent on
  Macerich first closing on Kings Plaza.

                    FDIC Sells Oaktree a Pool of $166 Mil. in CRE Loans
  The Federal Deposit Insurance Corp. (FDIC) has closed on its fourth sale in its Small Investor Program, and the
  winning bidder was anything but small.

  The winning bid was submitted by Tennessee Loan Acquisition Venture LP (TLAV), an entity of Oaktree Capital
  Management. LA-based Oaktree controls a portfolio of $78.7 billion in assets, including $5 billion in real estate

  The sale involved a competitive bidding process for an equity interest in a limited liability company (LLC). The
  LLC was formed by the FDIC in its receivership capacity to hold certain assets of the failed Tennessee
  Commerce Bank in Franklin, TN, which was closed in January, 2012.

  The FDIC placed a pool of 93 performing and non-performing commercial real estate loans, commercial
  acquisition, development and construction loans and credit facilities, and performing and non-performing
  residential acquisition, development and construction loans and credit facilities into the LLC. The aggregate
  unpaid principal balance of the pool is $166.2 million with the highest concentration of collateral in Tennessee.

  TLAV paid $23.9 million (net of working capital) in cash for its initial 25% equity stake in the LLC. TLAV will
  provide for the management, servicing and ultimate disposition of the LLC's assets.

  The sale was conducted on a competitive basis with 13 bids received from 10 investors. The FDIC said the bid
  submitted on behalf of TLAV was determined to be the one that maximized the value of the assets to the
  creditors of the Tennessee Commerce Bank receivership.

                Regulators Close Three Banks; 2 in Florida, 1 in Missouri
  The Missouri Division of Finance closed Excel Bank in Sedalia, MO; the Office of the comptroller of the Currency
  closed First East Side Savings Bank in Tamarac, FL; and the Florida Office of Financial Regulation closed
  GulfSouth Private Bank in Destin, FL. The FDIC was appointed receiver of the three failed banks with total
  assets of $427 million.

  The FDIC sold Excel Bank, the largest of the three banks with $200.6 million assets and four branches, to
  Simmons First National Bank in Pine Bluff, AR.

  The FDIC and Simmons First National Bank entered into a loss-share transaction on $126.6 million of Excel
  Bank's assets.

  As of June 30, Excel Bank held $11 million in foreclosed commercial real estate assets and $25.5 million in
  delinquent CRE loans

  The FDIC estimates that the cost to its Deposit Insurance Fund (DIF) will be $40.9 million.

  In Florida, the FDIC entered into a purchase and assumption agreement with SmartBank in Pigeon Forge, TN, to
  assume the four branches GulfSouth Private Bank, which had $159.1 million in total assets.

  The FDIC estimates that the cost to its DIF will be $36.1 million.

  Also in Florida, the OCC stepped in to close First East Side Savings with $67.2 million in total assets. The OCC
  acted after finding that the institution had experienced substantial dissipation of assets and earnings due to
  unsafe and unsound practices. The OCC also found that the institution incurred losses that depleted its capital,

THE WATCH LIST NEWSLETTER                                                                                             14
  the institution was critically undercapitalized, and there was no reasonable prospect that the institution will
  become adequately capitalized.

  The FDIC entered into a purchase and assumption agreement with Stearns Bank National Association in St.
  Cloud, Minnesota, to assume the bank and its one branch.

  The FDIC estimates that the cost to its DIF will be $9.1 million.

                  Popeyes To Pop Up in Minnesota, Northern California
  AFC Enterprises Inc., the Atlanta-based franchisor and operator of Popeyes Louisiana Kitchen restaurants,
  agreed to acquire 29 restaurants in Minnesota and Northern California for $13.8 million, about $475,862 per
  restaurant from Wagstaff Management Corp.

  The restaurants currently operate as another quick service restaurant concept. The company intends to convert
  28 of the restaurants to Popeyes at a cost of $11.5 million. It will dispose of one of the eateries. Following the
  conversion, the restaurants will be leased to Popeyes franchisees to operate.

  The purchase agreement is subject to bankruptcy court approval and the acquisition is expected to close in

  "The rapid opening of 28 new Popeyes restaurants will give Popeyes a major footprint in places where we
  currently have almost no presence," said Cheryl Bachelder, AFC Enterprises Inc. CEO.

THE WATCH LIST NEWSLETTER                                                                                              15

Description: Bankers Give 6 Reasons To Shop for a Commercial Real Estate Loan Now 2 Reasons Not To - A WEEKLY NEWSLETTER FOCUSING ON CHANGING MARKET CONDITIONS, COMMERCIAL REAL ESTATE, MORTGAGES AND CORPORATIONS PUBLISHED BY COSTAR NEWS. Bankers Give 6 Reasons To Shop for a CRE Loan Now; 2 Reasons Not To Third Quarter Bank Earnings Reports Clear Up Picture of Commercial Real Estate Conditions. The second week after the end of quarter is always a revealing time for commercial real estate. That's when many of the nation's largest bank holding companies go live to discuss their earnings, and how their CRE lending is faring. In this latest go-around, the bank executives provided the clearest picture of CRE conditions that they have in a long time. RECESSION IN THE REARVIEW MIRROR "If [you] step back a little bit, a couple issues are encouraging. First of all, real estate is getting better. We saw it in housing a year ago and every quarter, we have more confidence. We're not back to where we need to be and it's not as robust as we all want to be, but that's good on the repurchase side as values go up. And secondly, we continue to get further and further away -- or it's within a rearview mirror, the 2006 and 2008 portfolio." John G. Stumpf, chairman, president and CEO of Wells Fargo & Co