Sunday, May 25, 2008

Extended Outlook for Riverside-San Bernardino Apartment Sector Remains Positive

ONTARIO, CA— Although apartment properties in the Inland Empire will likely experience a slowing in renter demand this year, the metro’s extended outlook remains fairly optimistic, according to a first-quarter Apartment Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

(Top left photo shows San Bernardino night skyline.)

While the region’s high rate of single-family housing foreclosures is increasing competition, some of these displaced residents will undoubtedly end up transitioning to apartment properties.

“The investment outlook for the Inland Empire apartment market remains healthy despite tightening lending criteria and the current supply/demand imbalance,” says Douglas McCauley, (photo at top right) regional manager of the Ontario office of Marcus & Millichap.

Following are some of the most significant aspects of the Riverside-San Bernardino Apartment Research Report:


· Builders are expected to deliver approximately 800 units by year end.

· Vacancy is forecast to end the year at 7.5 percent.


· Asking rents are expected to push up 1.9 percent to $1,068 per month.

· Effective rents will reach $1,027 per month, a 0.2 percent gain.

· The first phase of the redevelopment of George Air Force Base in the Southern California Logistics Centre, scheduled for completion in 2008, is projected to add approximately 13,000 direct and indirect jobs to the region.

For a copy of the complete Riverside-San Bernardino Apartment Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716

Investors Find Value in Miami's Class B/C Apartment Sector

MIAMI, FL — So far this year in Miami-Dade County, the vacancy rate is in the low-4 percent range, and rents are rising, albeit at a minimal pace, according to a first-quarter Apartment Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

(Top left photo shows Miami night skyline)

Unsold and unoccupied condos will be the greatest supply-side force for the next several months, and the market’s strong performance measures may waver a bit as a result.

“In the months ahead, buyers will continue to leverage the presence of excess condo stock to push cap rates higher, especially in the deals involving Class A assets,” says Kirk A. Felici, (photo at right)regional manager of the Miami office of Marcus & Millichap.

“Meanwhile, many older Class B/C properties held over several years may provide a quick upside for a new owner simply by raising rents to market rate.”

Following are some of the most significant aspects of the Miami Apartment Research Report:

· Employers will add 1,500 jobs this year, a 0.1 percent gain.

· Developers will complete 500 rental units, compared with no new projected delivered in 2007.

· Vacancy is forecast to end the year at 4.8 percent.

· Asking rents are projected to increase 1.1 percent to $1,129 per month.

· Effective rents are expected to add 0.6 percent to $1,069 per month.

For a copy of the complete Miami Apartment Research Report, as
well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716

229-Unit Student Housing Community in Macomb, IL Listed for $21.85M

MACOMB, IL – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has retained the exclusive listing for Aspen Court Student Apartments, (riverfront campus rendering at top right photo) a 229-unit, 467-bed student housing community in Macomb.

The listing price of $21.85 million represents $95,415 per unit.
Shaun Buss and Sean Lyons, both senior associates in the Chicago Downtown office of Marcus & Millichap, are representing the seller, Aspen Court LLC.

“Serving the off-campus student-housing needs of Western Illinois University, Aspen Court Student Apartments is an excellent opportunity for an investor to acquire a newly constructed, 100 percent occupied student housing community that promises immediate cash returns,” says Buss.

Located at 1505-1531 West Jackson St., and 324-330 Wigwam Hollow Road, the 217,504-square foot student housing community consists of 20 two- and three-story buildings situated on an 11.7-acre lot.


The property is just one-half mile from campus and also sits on a dedicated bus line that shuttles students to and from campus.

Built between 2004 and 2008, Aspen Court Student Apartments boasts a strong mix of one-, two-, three- and four-bedroom units. Interior amenities include washer and dryers in each unit and individual utilities. Community amenities include a swimming pool, clubhouse with game room and business center, fitness center, basketball court and ample parking.

Additionally, the property includes land that is currently zoned for three additional 12-unit buildings.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716

Mobile Home Park in San Jose, CA Sells for $14.7M

SAN JOSE, CA– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of Oakcrest Estates Mobile Home Park (right top photo) a 158-space mobile home park in San Jose.

The sales price of $14,790,940 represents a price of $93,670 per unit. The cap rate was 5.6 percent.

Frank Rogers, a senior director in the San Francisco office of Marcus & Millichap’s National Manufactured Housing Communities Group, represented both the buyer and the seller in this transaction.

The buyer is a syndicator that owns a large number of mobile home parks in the western region of the United States. The seller is a family that owns 15 parks throughout California and Washington State.

The buyer acquired the ground lease on this property, which is located at 4271 North First Street in San Jose. Encompassing approximately one million square feet and consisting of 158 double-wide spaces, the 27-acre Oakcrest Estates was built in 1979.

Press Contact: Stacey Corso, Communications Department,
(925) 953-1716

Marcus & Millichap's Fort Lauderdale, FL Office Announces Promotions


FORT LAUDERDALE, FL– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has promoted four investment specialists in its Fort Lauderdale office, according to Gene A. Berman, senior vice president and managing director of the office.

“These investment specialists continue to attract private and institutional capital to investment real estate throughout South Florida because of their superior knowledge of this marketplace and their dedication to providing unparalleled brokerage services to each one of their clients,” says Berman.

The following investment specialists were promoted to vice president investments: Marc E. Strauss, (top right photo) a retail investment specialist; Tal I. Frydman, (photo at right below Strauss) a multi-family investment specialist; Barry M. Wolfe,(photo at left) who specializes in the retail, office and industrial markets; and David H. Luther, (photo below Wolfe at left) who specializes in the multi-family investment sales.

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The following investment specialists were promoted to senior vice president and first vice president: Evan P. Kristol, who specializes in the multi-family housing market, has been named a senior vice president of investments.

Lori Schneider, (photo at right) who specializes in the retail investment market, has been named a first vice president of investments. Still Hunter III, who specializes in the multi-family housing market, has also been named a first vice president of investments.

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Richard D. Matricaria (photo at right) and Douglas K. Mandel,(photo at left) who specialize in the land, retail, office and industrial investment markets, have received the title of associate vice president investments



Press Contact:
Stacey Corso, Communications Department, (925) 953-1716