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FED TO PRESS RATES TOWARD ZER0 12/15/ 2008

The US Federal Reserve is expected to drop interest rates close to zero on Tuesday but anticipated remarks on unconventional methods to dispel a year old recession are what really matter. Economists forecast a clear statement that the US central bank will aggressively deploy so-called quantitative easing measures to shelter the economy from a steepening downturn, but do not expect details of what steps it will actually take. A half point cut would take the bellwether federal funds rate to just 0.5 percent the lowest on records dating to July 1954, as the central bank battles a recession many think will stretch well into next year.

OFFICE DEPOT TO CLOSE 112 STORES. DEC 2, 2008 DELRAY BEACH, FL-Locally based Office Depot Inc, has announced that it will close 112 underperforming retail stores and six distribution facilities throughout North America over the next three months. The closing account for approximately 9 % of its retail locations, with an additional 14 stores to close in 2009 as leases expire. The office furniture company will be left with 1163 stores and 27 distribution centers in North America. Approximately 2,200 jobs, or 4.5% of its workforce will be cut, according to them. The closings are expected to add $ 90 million to pre-tax earnings in 2009. The announcement is not surprise because consumers are frozen, they are not spending, is a shrinking economy and its is an extraordinary difficult time. Companies are squeezing everything they can out of the orange and doing those things they are adjusting based in economy conditions today they says.

US RESCUE PLAN TO PUSH DOWN HOME LOAN RATES. DEC 4, 2008. The US Treasury is working on a new plan to help to revive the ailing housing market by reducing mortgage rates on new home loans, according to people briefed on the situation. The plan is at preliminary stages and could change, would involve using government sponsored mortgage financiers Fannie Mae and Freddie Mac to push down the rates on 30-years mortgages to as low as 4.5 per cent, or almost a full percentage point lower than current levels. Hank Paulson the US Treasury secretary said in a speech on Monday that the department was continuing "to examine potential foreclosure mitigation ideas that may be an appropriate and effective use of Tarp resources" referring to the $ 700 billion troubled asset relief program of which half has been authorized for use. The Treasury declined to comment.


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DOWNTOWN LOSES HIGHLY ANTICIPATED

WHOLE FOODS..

MIAMI, FL- Plans for Downtown's first major grocery store located at MDM Development Group and MetLife's Metropolitan Miami mixed use project have been cancelled. Whole Foods has pulled out of its commitment to open a 45,000 square foot store at the site on SE Second Avenue, according to a report by the South Florida Business Journal. "Over the past two years the scope of the downtown Miami project has changed from its initial design" Whole Foods Florida region tell in a statement. "After a thorough review, Whole Foods Market has determined that this project no longer fits with our current business model for new store development".

Local experts disagree on whether the decision had something to do with the thousands of unsold condos in Downtown Miami and have conflicting opinions on what effect the retailer's exit from the project will have on the area. "This is more tenant-specific than region specific" says Greg Masin retail broker with a big brokerage firm in Florida. "It's fairly well documented that Whole Foods was on a rapid expansion that their construction cost of developing individual units was higher than anticipated, that they have been digesting a large merger and that sales of organic products have stalled in today's economic environment. The location is not less relevant today than it was when Whole Foods originally underwrote the site. Just two months ago Met 2, a major component of the Metropolitan Miami project to include 750,000 square feet of class A office space and 358 hotel rooms, secured $ 250 million construction loan with a group of banks including Bank of America, Wachovia Bank. Additional planned development at the site includes Met1, a 447 unit condos tower; Met 3, a 696 units condominium tower featuring a 24 hour Fitness, and Met Square an urban center including a 13-screen movie theater, restaurants and shopping.

BOUTIQUE HOTEL TO OPEN ON SOUTH BEACH

MIAMI BEACH, FL. The Betsy Hotel which has been closed since May 2007 for a major renovation, is set to reopen in January 2009, according to management company Desires Hotels. The landmark hotel was opened in 1942 with classic colonial architecture designed by L. Murray Dixon and a $ 35 million gut rehab has now positioned the hotel as a 63-room boutique hotel structure designed to evoke tropical colonial luxury.

All renovations including exterior upgrades, will be completed by mid February. The hotel now known as the Betsy, located at 1440 Ocean Drive, will feature amenities including an ultra luxury lounge on the rooftop, a spa, zen garden, outdoor swimming pool and solarium. A BLT Steak restaurant with seating on the hotel's terrace will be integrated into the lobby. Room rates range from $ 400 to $ 3000.

Desires Hotels is the boutique division of Tecton Hospitality that manages independently owned hotels. The company also manages five more hotels on Miami Beach including the Sagamore Hotel Astor, The Strand Ocean Drive, Hotel San Augustine and the Wave. "This hotel segment has not seen impacted so far. Desires Hotels properties on South Beach are tracking fairly well through 2008 and this hotel Betsy given the size, location and amenities will perform well in 2009 says Raul Leal President of the firm.

RELATED GROUP FORMS ASSET ADVISORY.

MIAMI.- This week locally based Related Group expanded its real estate services by forming Related Asset Advisors a company that will focus on providing financial advice and resources for troubled real estate assets. Many of Related's employees are already involved in the financing, marketing and positioning of products executive Bronson says. The company will offer services as asset management, loan workouts, construction management, property management and leasing expertise. The group consists of three main executives and access to numerous experts throughout the company and its affiliates, says Bronson.

"This tumultuous market and uncertain economy has caused a significant number of real estate projects in varying states of completion to fall back to lenders" they said. " Related Asset Advisors will offer not only our expertise but in certain cases may make available additional financial resources to help lenders complete unfinished projects in a cost efficient manner and increase their sales potential".

There is not specific dollar amount set aside for the company to dole out, indicates Bronson, adding that resources will be available on a case-by-case basis. Related would also work with owners on strategy and management to explore the possibility of obtaining new loans from lenders, they said. The company's goal is to help lenders, financial institutions and owners get a fresh perspective and outlook on properties struggling because of the economy and capital markets freeze. "The highly volatile condition of the market and the complexities associated with condominium ownership has created conditions where you just can't afford to make a mistake or the value of your assets could be drastically compromised" said Jorge Perez, Related Group chairman and CEO in a released statement..