News and Events - 2008

pdfNew Position Created for Fast-Growing Company

LOS ANGELES, November 19, 2008—Younan Properties, Inc., one of the nation's largest privately-held real estate investment and asset management companies announced that it has appointed Andres R. Gavinet to the new post of Chief Financial Officer. Mr. Gavinet will leverage his significant real estate experience to support Younan's growing portfolio of Class A office space.

According to Zaya S. Younan, Chairman and CEO of Younan, "Andres brings a unique skill set and background in real estate accounting and finance with core strengths in policy development, balance sheet management, financial reporting and compliance. We have had this position open looking for the right executive with the right DNA that can blend into our aggressive environment, not only to support our significant growth, but to expedite our vision to be the largest office owner in the United States."

Mr. Gavinet has 15 years experience in real estate accounting and finance with national real estate companies and accounting firms including Arden Realty and Douglas Emmett.

Mr. Gavinet noted that the Chief Financial Officer post at Younan offers unparalleled opportunity. "Not much needs to be said about Younan Properties. In less than seven years, Younan has become a leader known throughout the entire country. To be part of this winning team is a dream come true. The company continues to perform in a strong market or a weak one, and it is my pleasure to be part of this phenomenal organization."

"We have experienced significant growth in all areas of Commercial Real Estate from acquisition to financing debt for others. Our business model is growing and we need to hire seasoned executives to navigate our growth and expansion," added Younan.

Since 2006, Mr. Gavinet was Executive Vice President – Finance with Douglas Emmett, Inc., (NYSE: DEI) a Southern California-based owner of commercial office and multifamily properties, where he was a member of the executive team that completed the largest Real Estate Investment Trust (REIT) initial public offering to date in the U.S. for $1.6 billion. Mr. Gavinet was responsible for all internal financial operations at Douglas Emmet and was instrumental in transitioning the company from a private fund company to a publicly-traded REIT. In addition to overseeing the Accounting and Finance functions, Mr. Gavinet supervised the preparation of all Securities and Exchange Commission compliance documents, including implementing financial reporting controls and ensuring compliance with Sarbanes-Oxley regulations.

From 1999 through 2006, Gavinet was a senior executive of Arden Realty, Inc, a Southern California-based owner of commercial office properties, where he advanced from Corporate Controller to Chief Financial Officer. Responsibilities at Arden included all aspects of financial reporting, treasury, accounting and tax functions for a portfolio of almost 20 million square feet and more than 225 office buildings with a total market capitalization in excess of $4.5 billion.

From 1998-99, Gavinet served as Manager of Financial Reporting for Westfield America, Inc., a retail REIT with 40 shopping centers across the U.S. He began his professional career in 1993 with Ernst & Young, LLP, where he was a Senior Auditor serving private and publicly traded companies.

A graduate of California State University – Northridge in Accounting, Gavinet earned his CPA credentials in the state of California in 1995.

About Younan Properties, Inc.

Headquartered in Los Angeles, Younan Properties, Inc., a privately-held real estate investment group, specializes in acquiring Class A office properties in high-growth markets throughout the United States. Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, the company is recognized for its success in turning around undervalued assets and maximizing the value of stabilized assets. Through the application of proprietary technologies and proactive management, Younan has accumulated nearly 12 million square feet of well-located Class A office buildings in key markets in Texas, Illinois and Arizona. Additional information about Younan Properties, Inc. can be found at www.younanproperties.com.

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pdfDALLAS, August 18, 2008—Younan Properties, Inc., one of the nation's largest privately-held real estate investment companies announced that Brenda D. Smith has joined the company as General Manager of the landmark KPMG Centre in downtown Dallas. In her new role, Smith will be responsible for KPMG Centre and Younan's Energy Square I, II and III properties in the Central Expressway submarket.

"With the growth and complexity of our high-rise portfolio in downtown Dallas, we needed to add depth to our management team to ensure an exemplary level of service. Brenda has more than two decades of property management experience and brings a unique knowledge of downtown Dallas," stated Zaya S. Younan, Chairman and CEO of Younan Properties.

According to John Cook, Vice President of Asset Management for Younan, "We are very fortunate to add Brenda to our downtown management team. She is well respected by tenants and brokers alike and will 'hit the ground running'."

Smith has more than 20 years of property management experience in downtown and suburban office and retail space. For the past year, Smith was Senior Property Manager with Brandywine Realty Trust for Cityplace Center in Dallas. From 1998 to 2006, she was Senior Property Manager with Trizec Properties, which owned and managed Renaissance Tower in Dallas. Among her other positions, Smith also served as Property Manager for Bank One Center in Dallas; and University Center I and II and Burnett Plaza, all located in Ft. Worth.

"I am very excited to join the Younan organization. This new position allows me to leverage my extensive property management background with a world-class company and market leader in Dallas," said Smith.

A graduate of Dallas Baptist University, Smith is RPA certified and is a member of BOMA.

Headquartered in Los Angeles, Younan Properties specializes in acquiring Class A office properties in high-growth U.S. markets. Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, Younan is recognized for turning around undervalued assets and maximizing the value of stabilized assets. Younan has accumulated nearly 12 million square feet of Class A office buildings valued at more than $2.0 billion in Texas, Illinois and Arizona. Contact Younan at www.younanproperties.com.

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pdfCompany Doubles Returns to Investors in Volatile Investment Market

Los Angeles, August 5, 2008 --Younan Properties, Inc., one of the nation's largest privately-held real estate investment and asset management companies announced today that it has completed the disposition of 211 East Ontario in Chicago. The 172,000 square foot, Class A office building in downtown Chicago is located in the North Michigan Avenue submarket, one of Chicago's premier office markets.

Purchased in May of 2006, the sale of 211 East Ontario generated a total return to investors of approximately 105% and an IRR of 51%.

"The performance we achieved by the disposition of 211 East Ontario reinforces our reputation as a world class owner and operator, particularly in light of the market's current volatility and weakness in the economy," observed Zaya S. Younan, Chairman and CEO of Younan Properties. "We are able to deliver substantial returns to our investors in just two years of ownership at a time when the entire market is experiencing one of the slowest transaction and investment environments in a decade. We believe that we are in a period where there is tremendous opportunity for well-funded companies such as Younan Properties to be active where others are not. We continue to look for new opportunities now to purchase assets in Chicago and in the stable Texas economy to further expand our portfolio."

Younan added, "The disposition of 211 East Ontario is another example of Younan Properties' consistent performance where we continue to exceed expectations regardless of market conditions."

Located adjacent to the Magnificent Mile shopping district, along the stretch of North Michigan Avenue that is synonymous with world class shopping, the 18-story office building was sold to Northwestern Memorial Hospital for $35.7 million. Built in 1984, Younan made major operational improvements to 211 East Ontario and added high quality amenities that complement its open, "boutique" floor plates and state-of-the-art infrastructure. The Northwestern University medical campus and hospital, as well as a variety of upscale retail shops and restaurants, are within easy walking distance to the property.

Headquartered in Los Angeles, Younan Properties specializes in acquiring Class A office properties in high-growth U.S. markets. Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, Younan is recognized for turning around undervalued assets and maximizing the value of stabilized assets. Younan has accumulated nearly 11 million square feet of Class A office buildings in Texas, Illinois and Arizona. Contact Younan at www.younanproperties.com.

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pdfHouston, July 14, 2008—Younan Properties, Inc., one of the nation's largest privately-held real estate investment and asset management companies announced that Jerry Strode was named to the newly-created position of director of engineering for Younan's Houston holdings. With its portfolio of more than 9.0 million square feet of office space in Texas, the addition of Strobe will add immediate value to the company's Houston's assets. Strobe will be headquartered in Younan's 1700 West Loop office in Houston.

Zaya S. Younan, chairman and CEO commented, "Jerry's extensive engineering experience and hands-on skill in all facets of engineering for commercial real estate will prove invaluable as we move closer to our goal of being the largest office building owner and asset manager in Texas."

According to John Cook, vice president of asset management for Younan, "We are very pleased that Jerry has joined our team in Houston. He is well known and respected in the community and his broad experience in engineering will allow him to hit the ground running."

Strode's engineering career spans nearly four decades in engineering with hands-on and supervisory responsibilities for private and public concerns that included plant operations, HVAC systems, water treatment, life safety equipment and fire prevention systems.

"This is an exceptional opportunity to bring my diverse and extensive background to a fast-growing organization that places high value on excellence" said Strobe.

Most recently, Strode worked with SMG where he was engineering manager for Reliant Park, including Reliant Stadium, Reliant Center and the Park. He was responsible for all operations along with a staff of 16 plant operators, electricians and mechanics.

Before that, Strode was chief engineer for Houston Hobby Airport, and also served as project manager for IAH (George Bush Intercontinental Airport), Hobby and Ellington Field with Entergy Solutions District Cooling. Other notable positions included serving as chief engineer, Commercial Real Estate for Cushman and Wakefield (Conoco/Phillips) in Houston. While there, his responsibilities included facility operations and management supervision totaling 1.25 million sf of office space

Strode has a universal CFC certification and is licensed by the City of Houston as a 1st Grade Stationary Engineer. He has completed extensive training throughout his career in safety, life safety, fire prevention, emergency response, hazardous materials and waste management. He is a resident of Spring Texas.

Headquartered in Los Angeles, Younan Properties specializes in acquiring Class A office properties in high-growth U.S. markets. Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, Younan is recognized for turning around undervalued assets and maximizing the value of stabilized assets. Younan has accumulated nearly 11 million square feet of Class A office buildings in Texas, Illinois and Arizona. Contact Younan at www.younanproperties.com.

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pdfDallas, July 2, 2008 - With three years remaining on its existing lease, EXCO Resources, Inc., has exercised its option to extend and expand its current lease in Younan's prestigious waterfront Lakeside Square at 12377 Merit Drive. By acquiring two additional floors (47,500 sf) in the 400,000 sf building, EXCO will be Lakeside's largest tenant, utilizing more than 120,000 sf.

Jeff Staubach and Steve Thelen with The Staubach Company negotiated the transaction on behalf of EXCO and Celeste Fowden and Burson Holman with CBRE represented Younan.

John Cook, vice president of asset management for Younan Properties, Inc. said "We have been working with EXCO for a long time on this project and are excited that we have been able to meet EXCO's long term expansion needs at Lakeside."

"The positive relationship between Staubach and CBRE along with Younan and EXCO Resources made this an extremely smooth transaction for all parties" said CBRE Broker Celeste Fowden.

EXCO Resources, Inc., (NYSE: XCO) is an oil and natural gas acquisition, exploitation, development and production company headquartered in Dallas, Texas with principal operations in Texas, Louisiana, Ohio, Oklahoma, Pennsylvania and West Virginia.

Now the second largest owner of Class A office space in Texas, Younan Properties owns 8 million square feet of prime commercial real estate in the state. It is the top office landlord in Dallas, with approximately 12% of the city's Class A assets. Other Dallas properties include; Eighty-Eighty Central, Energy Square I, II and III and 9400 NCX in the Central Expressway submarket; Four Forest, Galleria Plaza, Graystone Centre, The Meridian, and NCP Three in the LBJ Freeway submarket; and KPMG Centre, Patriot Tower, and Thanksgiving Tower in the Dallas CBD.

Younan Properties, Inc. is known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants. Younan is recognized as one of the newest and most successful private real estate companies active throughout the United States in the acquisition, development, ownership and management of office and mixed-use properties. It is noted for its success in turning around undervalued assets and maximizing the value of stabilized assets. Since 2001, Younan has accumulated nearly 12 million square feet of well-located Class A office buildings in key markets in Texas, Illinois and Arizona. Additional information about Younan Properties, Inc. can be found at www.younanproperties.com.

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pdfLOS ANGELES, July 21, 2008—Younan Properties, Inc., one of the nation's largest privately-held real estate investment and asset management companies announced that it named Ethan Y. Ho to the new post of Director of Project Management. With a portfolio of more than 15.0 million square feet of office space, the addition of Ho will bring additional depth to Younan's acquisition team.

"The current credit market challenges have opened up tremendous opportunities for our company. I have known Ethan Ho for many years and appreciate his attention to detail," noted Zaya S. Younan, Chairman and CEO of Younan. "His experience will add immediate, hands-on value to our expanding portfolio."

Ho has 16 years experience in asset management, finance, acquisitions and due diligence with P&L responsibility in office, retail and industrial leasing.

Ho noted that this new position is a unique opportunity to utilize his experience and diverse skills. "I am very excited to join the Younan organization. This position will provide me with an excellent opportunity to leverage my experience with one of the best commercial real estate firms in the country."

Since 2005, Ho has served as a Consultant with Westcoast Professional Group, LLC of Los Angeles. From 2004 to 2005, Ho was Technical Adjusting Consultant for a partner of Equity Adjusters Inc. of Taipei, Taiwan, From 2002 until 2004, Ho was Asset Manager with Shin Yen Management, Inc., in Chino, Calif., where he was responsible for managing a real estate portfolio of $200 million including two power centers and eight Class A and B office buildings with total leasing of approximately 3.5 million sq ft.

Previously, Ho was Chief Financial Officer and Vice President of CGM Management, Inc., and before that, was a Portfolio Manager of Hung Tai Investment Company in Taipei, Taiwan.

Ho was awarded a Master's degree in Civil Engineering from the University of Massachusetts, Amherst in 1990, and completed his MBA degree in 1992 from the College of Insurance in New York.

About Younan Properties, Inc.

Headquartered in Los Angeles, Younan Properties, Inc., a privately-held real estate investment group, specializes in acquiring Class A office properties in high-growth markets throughout the United States. Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, the company is recognized for its success in turning around undervalued assets and maximizing the value of stabilized assets. Through the application of proprietary technologies and proactive management, Younan has accumulated nearly 11 million square feet of well-located Class A office buildings in key markets in Texas, Illinois and Arizona. Additional information about Younan Properties, Inc. can be found at www.younanproperties.com.

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pdfLOS ANGELES, JUNE 17, 2008 – Younan Finance Group, an affiliate of Younan Properties, Inc., one of the nation's fastest growing private real estate investment companies, completed the purchase of its latest performing loan on June 12 from Rubicon Capital America LLC. The previously-announced acquisition of the $6.5 million B-Note on Orange Tower, 24-Hour Fitness in Orange County, Calif., further diversifies and expands Younan's portfolio with additional performing assets.

According to Zaya S. Younan chairman and CEO, "As many are fleeing the lending market, we saw an opportunity to use our significant capital resources to purchase loans on Class A performing assets throughout the country, generating immediate value to our investors. We anticipate the lending market will return to normalcy by the end of the year, and we will be well-positioned to take advantage of the recovery."

The Orange Tower properties include a 14-story 290,820 sf Class A office building, and adjacent 42,685 sf 24-Hour Fitness retail facility. With 90% occupancy, the properties are in close proximity to the Anaheim Convention Center, Angel Stadium and benefit from immediate access to the 5 and 57 Freeways.

Younan Properties is well known for its speedy and efficient transaction process. "Our in-house acquisition team is able to conduct thorough due diligence in record time and our ability to operate from an all-cash position enables us to close quickly," Younan added. Younan formed the finance group in April of this year and has initially allocated $200 million in funds to invest in performing and nonperforming loans ranging from $5 million to $50 million.

Younan Finance Group is an affiliate of Younan Properties, Inc. Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, Younan Properties is recognized as one of the newest and most successful private real estate companies active throughout the United States in the acquisition, development, ownership and management of office and mixed-use properties. It is noted for its success in turning around undervalued assets and maximizing the value of stabilized assets. Since 2001, Younan has accumulated nearly 12 million square feet of well-located Class A office buildings in key markets in Texas, Illinois and Arizona. Additional information about Younan Properties, Inc. can be found at www.younanproperties.com.

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pdfInstitutional Broker Leaves St. Paul Place

DALLAS, June 11, 2008 --- Younan Properties announced that Capital Institutional Services, Inc., (CAPIS) has signed a long-term lease to relocate its corporate headquarters to Thanksgiving Tower in Dallas. The firm will occupy the entire 39th floor (approximately 28,000 sf) of the landmark Class A high-rise in early September. CAPIS was represented by John Beach and Chase Sutton with Jackson & Cooksey, Ltd. Ryan Collier and Sarah Payne of Stream Realty Partners worked the transaction on behalf of Younan Properties.

According to John Cook, vice president of asset management for Younan, CAPIS is a premier company with exacting standards to meet their growth needs. "CAPIS is a fast-growing institutional broker and research provider that presented us with an opportunity to partner with them to help the company achieve its long term space requirements. We are delighted that CAPIS chose Thanksgiving Tower as their new corporate headquarters."

According to Collier, "CAPIS is an excellent addition to a great building. We are extremely proud of the Thanksgiving Tower win."

About Capital Institutional Services, Inc.
CAPIS is a leading U.S. institutional broker specializing in global agency trading and commission management for asset managers and plan sponsors. CAPIS has successfully developed and provided an array of brokerage solutions specifically tailored to the institutional marketplace since 1977. CAPIS is a member of the New York Stock Exchange, the American Stock Exchange, the Financial Industry Regulatory Authority, and the Securities Investor Protection Corporation. For more information, visit www.capis.com.

About Younan Properties

Headquartered in Los Angeles, Younan Properties, Inc., a privately-held real estate investment group, specializes in acquiring Class A office properties in high-growth markets throughout the United States. It is known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants. Through the application of proprietary technologies and proactive management, Younan has accumulated nearly 12 million square feet of well-located Class A office buildings in key markets in Texas, Illinois and Arizona. Additional information about Younan Properties, Inc. can be found at www.younanproperties.com.

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pdfOrange County Properties Owned by Maguire Properties

LOS ANGELES, May 28, 2008 -- Younan Finance Group, an affiliate of Younan Properties, Inc., announced today that it is under contract to acquire a $6.5 million B-Note on Orange Tower, a 290,820 sf Class A office building, and a 42,685 sf 24-Hour Fitness facility in Orange County, Calif., from Rubicon Capital America LLC. The B-Note on these assets are part of the first mortgage loan on the portfolio acquired by Maguire Properties, Inc. (NYSE:MPG), a Southern California-focused real estate investment trust. The acquisition of the B-Note will be the second purchase of performing loans in the last two weeks.

Commenting on this latest announcement, Zaya S. Younan, chairman and CEO said, "Last week we stated that we would be making additional, substantive purchases through Younan Finance Group and this note represents another step in that direction. This is a high quality, performing asset, which is part of the larger EOP SoCal portfolio purchased last year by Maguire Properties from Blackstone. This is another excellent purchase that will generate immediate value to our investors."

Younan added, "We will continue to be opportunistic in identifying assets that are performing and will add value to our portfolio. Our reputation for thorough due diligence and quick closings is providing us with multiple, high quality asset opportunities."

When the CDO market shut-down during 2007, many REITs that were accumulating assets for securitization using short-term warehouse and repurchase facilities were left with short-term debt that could not be refinanced via the CDO market. Since January of 2008, the market for commercial mortgage bonds has frozen, as spreads on all levels of paper have swelled to historic highs.

Last month, Younan announced it formed the Finance Group to acquire a broad range of debt and debt-related securities and instruments backed by Commercial Real Estate. The Group initially will invest up to $200 million in performing and underperforming office loans throughout the country in transactions ranging from $5 million to $50 million. Younan's reputation for closing transactions quickly is due, in part, to the firm's all cash position, which contributes to the strength of the company's bids.

Younan Finance Group is an affiliate of Younan Properties, Inc. Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, Younan Properties is recognized for its success in turning around undervalued assets and maximizing the value of stabilized assets. Younan has accumulated nearly 12 million square feet of well-located Class A office buildings in key markets in Texas, Illinois and Arizona. Additional information about Younan Properties, Inc. can be found at www.younanproperties.com.

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pdfFirst Debt in New Fund

LOS ANGELES, May 14, 2008 -- Younan Finance Group, an affiliate of Younan Properties, Inc., announced today that it is under contract to acquire a $22.9 million mezzanine note on Thanksgiving Tower in Dallas from Rubicon Capital America LLC. The acquisition of the mezzanine note will mark the first acquisition of performing loans since the formation of the Younan Finance Group. Thanksgiving Tower, a 50-story Class A office building was acquired in February 2007 by an affiliate of Younan Properties, Inc., which will continue to manage the property after the completion of the acquisition of the mezzanine note.

Commenting on the announcement, Zaya S. Younan, chairman and CEO said, "This is the first of several favorable debt acquisitions we will be making over the next few months. With the dislocation in the credit markets that began last August, we have an excellent opportunity to participate at a level below the market value of a Class A office asset and with a return on investment that is compelling and will benefit our investors."

In April, Younan announced it formed the Younan Finance Group to acquire a broad range of debt and debt-related securities and instruments backed by Commercial Real Estate. The Group initially will invest up to $200 million in performing and underperforming office loans throughout the country in transactions ranging from $5 million to $50 million.

Younan continued, "Many investment banks and mortgage REITs relied in recent years on the CDO market to provide inexpensive and plentiful long-term debt capital. When the CDO market shut-down during 2007, many REITs that were accumulating assets for securitization using short-term warehouse and repurchase facilities were left with short-term debt that could not be refinanced via the CDO market. Since January of 2008, the market for commercial mortgage bonds has frozen, as spreads on all levels of paper have swelled to historic highs. Younan's reputation for closing transactions quickly is due, in part, to our all cash position, which contributes to the strength of our bids and positions us favorably for future deals."

Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, the company is recognized for its success in turning around undervalued assets and maximizing the value of stabilized assets. Younan has accumulated nearly 12 million square feet of well-located Class A office buildings in key markets in Texas, Illinois and Arizona. Additional information about Younan Properties, Inc. can be found at www.younanproperties.com.

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