News and Events - 2008

pdfJury Unanimously Finds Falcon Breached Contracts

DALLAS, August 19, 2008 -- Younan Hospitality Group announced today that it has successfully defended itself and won on all claims against Falcon Physician Reviews, which filed a lawsuit against Younan Hospitality Group. The suit, filed in the 160th Judicial Court of Dallas County, erroneously claimed that Falcon's business was interrupted when Falcon breached its contracts with Younan at its Holiday Inn Select in North Dallas. In fact, a Dallas County jury unanimously concluded that Younan was the aggrieved party as a result of Falcon's breach.

Zaya S. Younan, Chairman and CEO of Younan Properties said, "We are extremely pleased that the Court and a jury found Younan innocent of any wrongdoing in this frivolous case. The company was vigorous and unrelenting in its defense, which was utterly successful."

Younan continued, "Moreover, we are heartened that the jury understood that this was a completely baseless suit designed to attack Younan's good reputation. This should serve as 'warning shot across the bow' serving notice to companies that think that they can try to twist the law to extort companies for money. Younan's reputation and integrity are worth defending, regardless of the cost."

The case centered on Falcon's contracts with the Holiday Inn Select to use the hotel to host students taking USMLE preparatory courses in 2006. When Falcon abruptly left the hotel in July 2006, it was in breach of its contracts with the Holiday Inn. The contracts Falcon breached required that cancellation fees be paid to Younan. Rather than pay the agreed upon cancellation fees, Falcon sued Younan.

Younan counter-sued Falcon seeking recovery of the cancellation fees. In a desperate attempt to avoid its obligations, Falcon claimed that Younan failed to provide certain services at the hotel. However, Falcon failed to present any credible evidence to support its position. In the end, Falcon's claims were dismissed by the Court and the jury unanimously found that Falcon breached the contracts with Younan. As a result, Younan was awarded damages of $850,500.

Zaya Younan noted that the damages being awarded in this case will be used for a greater good. "This never was about the money, but rather it was about the principle of defending against frivolous lawsuits. We will donate a substantial portion of this award to the families of our fallen soldiers who sacrificed their lives to insure America's freedom. This money will be used to benefit others, and we are proud that we can support our brave men and women in the military who serve with honor so we can be free."

According to Adam Knowlton, Senior Vice President and Chief Counsel for Younan Properties, the company utilized its full complement of legal resources. "Chris Hanslik of Boyar & Miller did an extremely good job in represented Younan. He articulated and provided compelling evidence of Younan's complete innocence in this matter. The result was an overwhelming success for Younan and a win for any business that must deal with frivolous lawsuits."

Headquartered in Los Angeles, Younan Properties, the parent company of Younan Hospitality Group, 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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pdfYounan Properties Announces New Finance Group; Unit to Acquire Non-Performing and Sub-Performing Loans for Commercial Real Estate

Los Angeles, April 1, 2008 ---Younan Properties, Inc. announced today that it is establishing a new commercial debt group and opportunity fund to acquire underperforming commercial loans backed by Commercial Real Estate. The Younan Finance Group initially will invest up to $200 million in underperforming loans and distressed office properties throughout the country in transactions ranging from $5 million to $50 million. The fund will acquire mis-priced mezzanine loans, B notes, whole loans and nonperforming first mortgages backed by Commercial Real Estate.

Zaya S. Younan, chairman and CEO of Younan Properties said, "The current instability in the debt markets and the inability of lenders to hold an underperforming loan while the property is stabilized provides an excellent opportunity for our company to acquire debt at discounted prices for key assets in major markets. We intend to acquire debt instruments where we can actively assist in the management of the property. Increasing cash flows for the property will ultimately contribute to the asset's ability to meet its debt obligations and provide our investors with superior returns on their investments," Younan added.

The acquisition of underperforming debt is a natural extension of Younan's business. "One of our primary strengths is our ability to assess a property's operating efficiencies and identify opportunities to reduce costs and increase an asset's value. Historically, we have significantly reduced operating costs by applying proven efficiencies and process controls. Using our proprietary practices, we have generated positive cash flow in buildings even where there is a combination of low occupancy and high leveraged debt ratio," said Younan.

Since January of 2008, the market for commercial mortgage bonds has frozen, as spreads on top-rated paper have swelled to levels customarily seen in the high-yield -debt market. Many investment banks are looking to sell a huge inventory of commercial mortgages that were originated before the credit crunch took hold and now are under significant pressure to perform.

Younan Properties has significant experience with distressed assets in both acquisition and turn-around situations. The company employs a proprietary operational strategy that differentiates it from traditional lenders and owners. Younan's size and reputation as one of the leading real estate owners and investors also gives it access to unsurpassed deal flow. Its substantial financial resources ensure its ability to support ongoing investment in both real estate assets and debt market note acquisition.

"Commercial Real Estate has been negatively impacted by the current debt market meltdown, which has initiated a negative growth cycle. Unfortunately, these cycles move very slowly and traditionally we've seen a significant lag between the adoption of new incentives and their manifestation in the market place," Younan noted. "We believe Commercial Real Estate has entered into a period where there will be fewer opportunities to acquire premium assets directly on acceptable terms. We are going to utilize this time to establish and grow our new Finance unit using the same proprietary practices and disciplines for which we have become recognized in order to continue to deliver superior returns to our investors," Younan concluded.

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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pdfRoland Chua Named Director of Asset Management for Younan Properties; Management Structure Expands to Support Extensive Portfolio Growth in Texas

LOS ANGELES, March 19, 2008—Younan Properties, Inc., one of the nation's largest privately-held real estate investment companies announced that it named Roland T. Chua to the newly-created post of director of asset management for Younan's Dallas holdings. With its portfolio of more than 9.0 million square feet of office space in Texas, the addition of Chua will bring additional depth to the Dallas management team.

"With the explosive growth of our holdings in Texas, we recognized the need to add depth and bench strength. Roland has a wealth of experience in all phases of commercial real estate, particularly as it relates to operations, compliance and regulatory matters" noted Zaya S. Younan, chairman and CEO of Younan. "His experience will add immediate, hands-on value to our Dallas operations. I look forward to working with him and taking our company through the next stage of our growth."

According to John Cook, vice president of asset management for Younan, "We are very pleased that Roland has joined our team in Texas. Roland is a very well respected professional in our market and his breadth of experience in commercial asset management will bring a fresh approach and energy to many facets of our operations."

Chua has 17 years experience in all phases of real estate asset management with P&L responsibility in office, retail and industrial leasing, property tax appeals, litigated rent collections, lender compliance, budgets and variances to due diligence in acquisitions and dispositions.

"I am very excited to join the Younan organization. This position will provide me with an excellent opportunity to bring all of my skills and experience to one of the best commercial real estate firms in the country," stated Chua.

Since 1998, Chua has worked for Regis Realty in Dallas where he most recently served as vice president of asset management, revenue & tax. Chua oversaw property tax administration and management of a 350-property portfolio consisting of office, retail & industrial space, apartment units and land with a combined market value in excess of $3 billion.

From 1993 to 1997, Chua served as vice president of leasing for Goodwind Development Corp, in Guam, U.S.A. From 1989 to 1993, Chua was an asset manager for Nations Bank in Dallas.

He is a graduate of the University of San Carlos, Philippines with a BSBA in Management and Economics.

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 in Texas, Illinois and Arizona. Contact Younan at www.younanproperties.com.

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pdfLOS ANGELES, January 29, 2008—Younan Properties, Inc. announced that it named Catherine Nelson Capps as Property Manager of 1010 Lamar in Houston, Texas. With its portfolio growing to nearly 2.2 million square feet of office space in Houston, 1010 Lamar represents the first YPI asset in the Houston CBD.

"Cathie Capps is a solid addition to our Houston management team," noted Zaya S. Younan, chairman and CEO of YPI. "Her experience in property management and her knowledge of the Houston office market will ensure that YPI meets and exceeds tenant satisfaction through rigorous adherence to our high standards of excellence."

According to Capps, "Younan Properties is an invigorating environment where leadership counts."

Capps is a 20-year professional with extensive experience in commercial real estate. Previous positions include serving as a manager of multiple properties with Moody Rambin Interests; general manager with Songy Partners Realty in Florida; regional property manager with Weingarten Realty Investors, and property manager with TPMC Realty Services Group.

A graduate of the University of Houston, she maintains membership in the Institute of Real Estate Management, and the Building Owners and Managers Association.

About Younan Properties, Inc.

Headquartered in Los Angeles, Calif., 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 Properties has delivered to its investors an average leveraged IRR of 67% on properties sold to date. Since founding the company in 2001, Zaya S. Younan has accumulated nearly 11 million square feet of well-located Class A office buildingsin key markets within Texas, Illinois and Arizona. Additional information about Younan Properties, Inc. can be found at www.younanproperties.com.

pdfLOS ANGELES, January 17, 2008 --- Younan Properties, Inc., one of the nation's fastest growing, privately-held real estate investment companies, announced today that in the fourth quarter of 2007 it completed 257,000 square feet of new lease transactions and renewals in downtown Chicago. Included in that figure are 225,000 square feet leased at 200 N LaSalle, including a 148,493-square-foot lease with CareerBuilders.com, and 32,400 square feet of new transactions and renewals at 211 E. Ontario, including a new 10,147-square-foot transaction with the United States Veteran's Administration.

According to Zaya S. Younan, chairman and CEO, "The Chicago commercial office market continues to demonstrate vitality as evidenced by transaction volume in the fourth quarter, driving occupancy to 96% at 200 N LaSalle and 90% at 211 E. Ontario. Economic indicators suggest that Chicago commercial real estate will remain bullish throughout 2008 due to low unemployment, continued positive absorption in the CBD and a healthy, diversified economy."

Younan Properties owns and manages approximately 2 million square feet of Class A office space in Illinois. In addition to its downtown Chicago properties, the company owns One North Arlington, a seven-story, 159,000- square-foot office building in Chicago's northwest suburban office submarket; Prairie Stone Commons, a 110,000-square-foot property in prestigious Hoffman Estates;1600 Corporate Center, a 12-story, 55,000-square-foot office building in Rolling Meadows; Bannockburn Corporate Center, a three-story, 206,000-square-foot office building in the Northbrook/Tri-State submarket of north Lake County; Embassy Plaza, a seven-story, 141,000-square-foot office property in Schaumburg; and Kensington Corporate Center, a four-story, 86,000-square-foot office building in Mount Prospect, IL.

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. Younan Properties has delivered to its investors an average leveraged IRR of 67% on properties sold to date. Since founding the company in 2001, Zaya S. Younan has accumulated nearly 11 million square feet of well-located Class A office buildings valued at more than $1.5 billion in key markets within Texas, Illinois and Arizona. Additional information can be found at www.younanproperties.com.

pdfLOS ANGELES, January 14, 2008—Younan Properties, Inc. announced that it named Pam Weston general manager to oversee its office properties in Houston, Texas. The company has rapidly expanded in Houston with its portfolio growing to nearly 2.2 million square feet of office space.

"Pam Weston brings to YPI a strong commercial real estate background with many years of experience in asset management and building operations," observed Zaya S. Younan, chairman and CEO of Younan Properties, Inc. "As we continue to expand in Houston and grow our Texas portfolio, Pam will play an important role in upholding YPI's superior reputation and track record for exceptional office building standards and top tenant satisfaction."

"Younan Properties has become one of the top landlords in Texas, and Pam's experience will help us sustain our continuing growth," said John Cook, YPI vice president and asset manager for Texas.

Weston brings more than 15 years of commercial real estate experience in office buildings, retail and medical office space. Most recently, she was regional manager for a portfolio of major retail centers for Henry S. Miller Multi Management. Before that, she served as manager with Boxer Property with responsibility for multiple office buildings in Houston. She also previously held positions with Mac Haik Management and with Kennedy Wilson Property Management, all located in Houston. A resident of Spring, Texas, Weston is a member of BOMA.

In 2007, Younan Properties acquired some 4.0 million square feet of office space in Texas. In the fourth quarter of 2007, YPI announced that it acquired Bridgewood I, Bridgewood II and Greenbriar Place, all located on N. Sam Houston Parkway E. in the heart of the Greenspoint/North Belt submarket, 1010 Lamar in the Houston CDB. Other 2007 Houston acquisitions include Two Westlake Park, a 382,000 square-foot, 17-story high-rise at 580 Westlake Park Boulevard in Houston; 1700 West Loop South, a 15-story, 254,000 square foot building in the desirable Galleria submarket and Shepherd Place, a 14-story 188,000 square foot office building just south of prestigious River Oaks; 6464 Savoy in the desirable deed-restricted Regency Square Office Park; Northbelt Corporate Center, a 10-story office property at 2350 North Sam Houston Parkway East; and the Westchase Bank building, an 11-story, 203,000 square-foot asset at 9801 Westheimer Road. It also owns Norfolk Tower, a 207,000 square-foot office building at 2211 Norfolk Street in Houston.

About Younan Properties, Inc.

Headquartered in Los Angeles, Calif., 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 Properties has delivered to its investors an average leveraged IRR of 67% on properties sold to date. Since founding the company in 2001, Zaya S. Younan has accumulated nearly 11 million square feet of well-located Class A office buildings in key markets within Texas, Illinois and Arizona. Additional information about Younan Properties, Inc. can be found at www.younanproperties.com.

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