Blackstone Returns Fees in First Clawback Triggered at Firm – Blackstone’s property buyout funds recorded performance fees totaling $1.74 billion, some of which was allocated to the firm’s partners, as the market for office towers, hotels and apartments soared from 2004 to 2007. Prices have slumped about 39 percent since then, leaving New York-based Blackstone and its rivals in a position similar to that of venture capital firms about a decade ago, when the collapse of technology stocks forced them to return profits earned on Internet companies during the 1990s. The acute situation for clawbacks is when you have had a very successful period of gains and then the remaining deals don’t do well,” said Michael Harrell, co-head of the private funds practice at the New York-based law firm Debevoise & Plimpton LLP. “That is what happened when the Internet bubble burst and there is certainly the potential for that with the sharp downturn in the real estate market.” Bloomberg

Life insurance firms waiting for commercial real estate opportunities – Lincoln National Life, for instance, has put the word out that their goal is to underwrite $750 million in commercial property mortgages this year.  Last year, Lincoln National had the same goal but only scored $165 million in mortgages. “So this year, they are being a little more aggressive. That’s what turns a market,” he said.   A year ago, only eight of the 31 life insurance companies told attendees that they were “open for business, we want to do loans.”  This year, 30 out of 31 are looking for lending opportunities.  They are driven by their beliefs that the commercial real estate market is stabilizing.  The exact timing however, is still uncertain. Current activity is at its lowest point in the last 30 or 35 years. Tuscon Business

Commercial Property Market Shows Signs of Strength - Office cap rates (ration between income and costs) decreased 5bps to 8% in July while the average price per square foot rose to $220 nationally. Cap rates achieved on these premium assets fell below 6% for central business district (CBD) properties and 7% for suburban. 90% of all transactions occurred in the primary market, a trend that has been growing all year. RCA reported that price differences between markets are growing, however, because these transactions are concentrated in only a few of the markets: New York, the District of Columbia, Chicago, San Francisco, Boston and Los Angeles. Housing Wire