SOURCE: Dividend Capital Total Realty Trust

February 03, 2011 22:16 ET

Dividend Capital Total Realty Trust Secures Loan Repayment on Houston, Texas Hotel Debt Investment

DENVER, CO--(Marketwire - February 3, 2011) - Dividend Capital Total Realty Trust Inc., a diversified real estate investment trust (REIT), announced today that a $65 million senior mortgage loan originated in July 2009 and secured by two Westin hotel properties located in Houston, Texas, has been fully repaid by the borrowers. The investment produced a leveraged internal rate of return of 17% and also returns capital to the company, which will be available to redeploy into the current commercial real estate market.

The Westin Galleria and Westin Oaks hotels are structurally integrated into the Galleria Shopping Center, one of the largest shopping malls in the U.S., in an upscale neighborhood of Houston. The two hotels contain 893 rooms and 93,103 square feet of meeting space.

"The Westin loan performed well, showing the value that strategic debt investments can have to our portfolio," said Guy Arnold, President of Dividend Capital Total Realty Trust. "Coming out of a down cycle in commercial real estate, we feel good about the progress we've made. In addition to full-cycle returns on several significant debt investments, we deployed over $1.6 billion of capital into a diverse range of real estate assets, strategically disposed of several non-core assets acquired as part of a large portfolio, accretively paid down a large portion of debt, and signed a number of new leases and lease extensions."

Dividend Capital Total Realty Trust invests in a diversified portfolio of commercial real estate assets. As of December 31, 2010, the company owned 99 properties totaling approximately 19 million square feet in 31 geographic markets. The portfolio is currently 94.0% leased to approximately 400 tenants.

Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "expect(s)," "could," "should," and "continue" and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results materially different from those described in the forward-looking statements. Dividend Capital Total Realty Trust Inc. can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Dividend Capital Total Realty Trust Inc.'s expectations include, but are not limited to, the uncertainty of the sources for funding Dividend Capital Total Realty Trust Inc.'s future capital needs, delays in the acquisition, development and construction of real properties, changes in economic conditions generally and the real estate and securities markets specifically and the other risks detailed from time to time in Dividend Capital Total Realty Trust Inc.'s Securities and Exchange Commission reports. Such forward-looking statements speak only as of the date of this press release. Dividend Capital Total Realty Trust Inc. expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the company's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.