Wednesday, June 4, 2008

$165M Construction Loan Arranged by HFF for W Hotel & Residences in Austin, TX

DALLAS, TX – The Dallas office of HFF (Holliday Fenoglio Fowler, L.P.) has arranged a $165 million construction loan for the W Hotel & Residences, a luxury mixed-use project in Austin, Texas.

HFF senior managing director Whitaker Johnson (top right photo) worked on behalf of Stratus Properties, Inc. and the Canyon-Johnson Urban Fund to secure the loan through Corus Bank, N.A.

Stratus Properties is a diversified real estate company engaged in the acquisition, development, management and sale of commercial, multifamily and residential real estate properties located primarily in the Austin area.

Due for completion in early 2011, the W Hotel and Residences will have 252 guest rooms and suites.

In addition, approximately 165 residential units, in one- to four-bedroom layouts, will be located on floors 18 to 37 and will feature floor-to-ceiling windows with views of Lady Bird Lake, the Hill Country and the city skyline.

Hotel guests will have access to the W’s signature Living Room experience and Whatever/Whenever, the hotel’s 24-hour concierge service that provides guests with the ultimate in amenities at any hour.

On-site amenities will include several restaurants and clubs, an elevated garden incorporating a swimming pool and bar, 5,000 square feet of meeting space, 4,300 square feet of banquet rooms and an 8,000-square-foot spa and fitness center.

The W Hotel and Residences is located at 2nd Street and Lavaca in downtown Austin’s 2nd Street District.


Whitaker M. Johnson, HFF Senior Managing Director, 214 265 0880,

Laurie Fish McDowell, HFF Associate Director, Marketing, 617 338 0990,

Jones Lang LaSalle's 1st Quarter Economic Overview on metro Washington, DC

Nation Expands Marginally Over Quarter

WASHINGTON, DC--Jones Lang LaSalle analyst Justine Morrison (top right photo) reports in JLL's Real Estate Market Intelligence Monthly newsletter the first quarter, 2008 U.S. economy grew at a rate of 0.9% (revised from 0.6%).

The fragile nature of the current expansion is evident when considering that GDP would have actually contracted without the first quarter’s growth in inventory levels. The forecast consensus is inventory levels will falter in the second quarter as companies struggle to unload current inventory and this will weigh down growth in the near term.

Total U.S. Nonfarm employment fell in each of the first three months of 2008 shedding 240,000 jobs; the first quarterly net loss of jobs in nearly five years. The unemployment rate increased during the quarter to 5.0% in April, 0.6 percentage points higher than the 4.4% cyclical low in March 2007.

Historically a half-point or more rise in the unemployment rate has always resulted in a recession. April’s employment report did provide some optimism, revealing a manageable 20,000 job loss, a sign that the economy may face a shallow rather than severe recession.

Some of the optimism stems from a sharp turnaround in the professional and business services sector. This sector, the largest component of the office-using segment, recorded three consecutive months of job losses to start the year shedding 102,000 jobs before it added back 39,000 jobs in April. It is hard to lend credence to one month’s result however it will be important to track this indicator in the coming months.

(For a complete copy of Justine Morrison's views, please contact John Sikaitis, vice president, corporate research, Jones Lang LaSalle, at )

Marcus & Millichap Capital Corp. Arranges $6M Loan for Lake Forest, CA Retail Property

LAKE FOREST, CA– Marcus & Millichap Capital Corporation (MMCC) has
arranged a $6 million fixed-rate, non-recourse loan for the cash-out refinance of a 34,255-square foot One Stop retail property (top right photo) located at 20702-42 Lake Forest Drive in Lake Forest.

Daniel Litman, a senior director in the firm’s West Los Angeles office,
arranged the financing package for the One Stop shopping center.

“About 50 percent of the tenants in the property were automotive-related tenants,” states Litman. “MMCC was able to cash out more than $3 million with a 10-year fixed rate that was 40 basis points better than what the competition had quoted.”

Financing for the property was provided by a portfolio lender at a 6 percent, fixed non-recourse interest rate. The terms of the loan are for 10 years with a 30-year amortization schedule. Loan-to-value for this transaction was 60 percent.

“In the current cycle, investors are coming off of their conduit loans and selecting portfolio lenders because the terms are better,” says Litman. “MMCC was able to save the borrower 40 basis points on the rate. In the end, the lender saved the borrower from paying an additional $26,000.”

Press Contact: Kathy Molitor
Marcus & Millichap Capital Corporation
(925) 953-1704

Marcus & Millichap Lists Mixed-Use Development in Newtown, PA for $18M

NEWTOWN, PA– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has retained the exclusive listing for Goodnoe’s Corner, (top right photo) a 35,653-square foot mixed-use retail and multi-family development in Newtown, Bucks County.

The exclusive offering is listed at $18 million and represents $505 per square foot.

Jeffrey W. Marquis Sr., Thomas J. Gorman and Matthew P. Gorman, investment specialists in the Philadelphia office of Marcus & Millichap, are representing the seller, Joseph W. McGrath of the J.W. McGrath Organization.

McGrath purchased the historic Goodnoe Family Restaurant in December 2006 with the intention of redeveloping the site. The Bucks County landmark served locally made ice cream since 1955.

McGrath successfully expedited the project through the approval process and construction without sacrificing quality. Upon commencement of construction in early 2007, he had little difficulty courting potential tenants.

“This newly constructed Class A investment property offers an exceptional location and attractive design complimented by a strong rent roll and tenant mix,” says Marquis. “Goodnoe’s Corner is a great opportunity for investors seeking a flight to quality in a proven and affluent market.”

“The local retail market and demographics fully support Goodnoe’s average rent of $39 per square foot,” says Thomas J. Gorman. “Those rents drive a big price on the property, but they are replaceable.”

Located at 290 North Sycamore St., the mixed-use development consists of six buildings, including four luxury apartment units above retail shop space and three pad sites situated on a 3.96-acre lot. The property is at the “Main-and-Main” intersection (State Hwy 532 and State Hwy 332) in Newtown.

Goodnoe’s Corner is supported by strong demographics as median household incomes are $102,000-plus in a five-mile radius while the population is 104,000-plus in the same area.

Rite Aid and the Irish Pub at The Green Parrot are currently under construction and scheduled to be completed in July and September 2008, respectively. Both tenants are already paying rent. The remaining pad site and seven in-line retail tenants are a mix of national, regional and local retailers, all of which are open for business.

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