Thursday, August 28, 2008

Marcus & Millichap Names Five New VP/Investments


LONG BEACH, CA— The board of directors of Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has named David Black, (top right photo) Hiu Chan (middle left photo under Cohen) and Joshua Cohen (top left photo) to the position of vice president investments.

The achievement of vice president investment status is one of the highest levels of recognition the firm awards its sales agents. It represents excellence in client relationships, investment real estate expertise and sales volume, according to John F. Rodiles, regional manager of the firm’s Long Beach office.

Black joined Marcus & Millichap in 1994 and specializes in office and industrial investment sales. Chan joined the firm in 2002 and specializes in multi-family investment sales. Cohen joined the firm in 2003 and specializes in multi-family investment sales.


NEWPORT BEACH, CA — The board of directors of Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has named Paul Bitonti (bottom left photo) and John L. Nguyen (bottom right photo) to the position of vice president investments.
The achievement of vice president investment status is one of the highest levels of recognition the firm awards its sales agents. It represents excellence in client relationships, investment real estate expertise and sales volume, according to Joseph Cesta, regional manager in the firm’s Newport Beach office.

Bitonti joined Marcus & Millichap in 2002 and specializes in retail investment sales. Nguyen joined the firm in 2003 and specializes in multi-family investment sales.

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

$33.5M refinance of Back Bay apartments in Boston arranged by HFF

BOSTON, MA – The Boston office of HFF (Holliday Fenoglio Fowler, L.P.) has secured a $33.5 million refinancing for St. Germain Apartments (top right photo), a 207-unit brownstone apartment complex in Boston’s Back Bay neighborhood.

Working exclusively on behalf of The Abbey Group, HFF senior managing director Bob Herron (bottom right photo) and director Greg LaBine (top left photo) placed a fixed-rate loan with Landesbank Hessen-Thuringen Girozentrale (Helaba).

The Abbey Group is a prominent Boston developer that has completed dozens of major projects, and currently owns Landmark Center and Lafayette Corporate Center, among others.

Originally built in 1900 and renovated in 1998, St. Germain Apartments has 48 brownstone buildings with studio, one- and two-bedroom units averaging 705 square feet each. The property offers 12 designated parking spaces at a surface lot at the corner of Dalton Street and St. Germain Street.

Comprising one full city block in Boston’s Back Bay, St. Germain Apartments is convenient to Newbury Street, Fenway Park, Hynes Convention Center, the Prudential Shops and numerous MBTA subway and bus stops.

“This is the second financing HFF has arranged for The Abbey Group with Helaba,” said Herron. “In 2006, a construction loan was arranged for the development of 45 Province Street, a luxury condominium development under construction in Boston’s Downtown Crossing. This made the process seamless as lender and borrower had prior experience working together.”

Robert M. Herron, HFF Senior Managing Director, 617 338 0990,
Gregory F. LaBine, HFF Director, 617 338 0990,
Laurie Fish McDowell, HFF Associate Director, Marketing,

Concord Hospitality Unveils Marriott’s Next Generation of SpringHill Suites

Concord Co-designed New Look Showcased at Springhill Suites Chicago Waukegan/Gurnee

CHICAGO, Ill./RALEIGH-DURHAM, N.C., Aug. 28, 2008—Concord Hospitality Enterprises, one of the nation’s top-ranked hotel developer/owner/operators, today opened the 120-room Springhill Suites Chicago Waukegan/Gurnee.

It is the first SpringHill Suites hotel to feature the brand’s contemporary, boutique-style redesign, ushering in the next generation of the select-service franchise. Concord co-designed the brand’s new look in partnership with Marriott. Concord, which owns a minority equity interest in the hotel, also manages the property.

“The SpringHill Suites Chicago Waukegan/Gurnee is at the forefront of contemporary hotel design,” said Mark Laport, (bottom right photo) Concord’s president and CEO. “It represents the next generation of hotels, created to deliver the experience that the next generation of travelers is looking for.

"It features an innovative lobby with custom lighting, music, moveable “soft walls” and changeable graphic panels to create distinctive environments throughout the day. Guests can also enjoy “ESCAPE,” the new modern lounge that serves wine and spirits, and the outdoor terrace illuminated by a fire pit and enclosed by a living green wall. We expect this property to become a market leader in the northern Chicagoland area, and the prototype for future hotel design.”

The joint re-design of the brand is not the first for Concord; the company also partnered with Starwood Hotels & Resorts to design the chic new aloft brand, launched last year.

“Concord creates partnerships that yield excellence,” Laport said. “We have an award-winning design and construction department, and by partnering with some of the leading brands and other management companies, we’re creating cutting-edge products that will set the standard for future hotel design.”

Concord already has broken ground in Texas on four additional SpringHill Suites, all with the updated design. The properties are slated to open in 2009.

Contact: Melanie Boyer, Jerry Daly, (703) 435-6293

CB Richard Ellis' Private Client Group Named Exclusive Sales Agent for 26-Unit Apartment Community in Orlando, FL

ORLANDO, FL - Aug. 28, 2008 - CB Richard Ellis, the world's leading commercial real estate services provider, was recently named the exclusive sales agent for The Concord Apartments has been ocated at 920 W. Concord St. in Orlando, Fla. The 26-unit property consists of studio apartments with an average unit size of 600 sq. ft.

Luke Wickham, (top right photo) associate, has been retained to exclusively represent the owner of the residential community, WNC.

"The Concord offers potential investors the distinct advantage of being located within a few blocks of one of the most extensive redevelopment projects of the downtown Orlando area.

" Within the next few years, a 'creative village' will take the place of the old Amway Arena and surrounding area," Wickham said. "The property also has the advantage of being in the neighborhood that is currently undergoing gentrification."

Built in 1974, The Concord Apartments is located in downtown Orlando adjacent to the future site of what is projected be to the region's most significant multi-building project.

Already under construction, the endeavor will include a new events center, a performing arts center and a refurbished Citrus Bowl stadium. Over time, these community venues are projected to generate $10 billion in economic output and support 7,500 jobs annually.


Rebecca Thomas, 305.381.6485,

Interstate Hotels & Resorts Opens Hilton Moscow Leningradskaya Hotel

First Hilton Brand Hotel in Russia’s Capital City

ARLINGTON, VA—Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation’s largest independent operator of full- and select-service hotels, has opened and is managing the 273-room Hilton Moscow Leningradskaya (top right photo) in Russia.

The landmark hotel, which is owned by JSC Sadko, recently completed a two-year total restoration and is the first Hilton brand hotel in Russia.

It is Interstate’s eighth property in Europe. (Lobby ceiling in middle left photo)

“The addition of this hotel to our portfolio is an excellent illustration of our continued focus on international expansion and our ability to build on the solid platform we established more than a decade ago,” said Thomas F. Hewitt,(bottom right photo) chief executive officer at Interstate.

“Interstate was one of the first independent management companies to operate in Moscow, and after 13 years has developed strong local and regional relationships and contacts.

"We also have strong ties to all the major hotel franchisors and are delighted to have successfully negotiated the Hilton affiliation and to be managing the first Hilton hotel in Russia. We have a very strong pipeline of additional management contract opportunities in Russia, greater Europe, India, Mexico and Central America.”

“Moscow is one of the fastest-growing cities and strongest economies in the world today, and this is one of the most recognized hotels in the city, one of seven famous ‘Stalin’ towers that
visually define the Moscow skyline,” said Henry L. Ciaffone, president of international operations and development at Interstate.

“The restoration has successfully blended the property’s rich architectural heritage and today’s latest technology and amenities. With its highly desirable location just off Komsomolskaya Square and the power of the Hilton name, we expect Moscow’s first Hilton brand hotel to become a magnet for international business and leisure travelers.”

Carrie McIntyre, SVP, Treasurer, Interstate Hotels & Resorts, (703) 387-3320
Carol McCune, Daly Gray Public Relations, 703 435 6293; fax 703 435 6297

Trophy Buildings in D.C. Fuel Activity

WASHINGTON, DC--Trip Howell (top right photo), managing director, Jones Lang LaSalle, says market activity in Washington, DC was uncharacteristically slow during the first half of 2008.

However, Trophy assets fueled regional growth and claimed a disproportionate share of transaction volume. Despite accounting for just 10.5 percent of the inventory, the Trophy market claimed 84.0 percent of the District’s year-to-date net absorption and led regional demand for a third consecutive year.

Steady tenant demand and continued low vacancy in existing buildings indicated vitality in the Trophy market through mid-year. Direct vacancy rates ended the second quarter at 1.4 percent, substantially below the broader market’s 7.7 percent rate.

Through the second quarter, the 10,875,333 square foot Trophy market spanned 32 buildings, primarily located within the core markets of the Central Business District and East End, with three of the assets located in Capitol Hill rounding out the inventory.

An additional three million square feet of trophy product was under construction in 11 buildings scheduled to deliver between 2008 and 2012.

1099 New York Avenue, NW, was the only new Trophy building to deliver during the first half of 2008. The 177,506 square foot building was 55 percent leased to law firm Jenner & Block. The building increased the Trophy inventory by only 1.5 percent, but the availability contributed to an increase in direct vacancy, which climbed to 1.4 percent from 0.4 percent at year end 2007. Only two buildings (1099 New York Avenue, NW and 1301 K Street, NW) had direct blocks of space available over 30,000 square feet.

For a detailed copy of this report, please contact John Sikaitis, Vice President, Communications, Jones Lang LaSalle,

S&P DowngradesThree Mortgage Insurer Groups--Old Republic, PMI, And Radian

NEW YORK, NY--Standard & Poor's Ratings Services has lowered its counterparty credit rating on Old Republic International Corp. (ORI) to 'A-' from 'A' and its counterparty credit and financial strength ratings on ORI's core subsidiaries to 'A+' from 'AA-'. The outlook is negative.

Standard & Poor's also said that it lowered its counterparty credit rating on PMI Group Inc. (PMI Group) to 'BBB-' from 'BBB+' and its counterparty credit and financial strength ratings on PMI Group's mortgage insurance subsidiaries in the U.S. (PMI) and Europe (PMI Europe) to 'A-' from 'A+'.
In addition, Standard & Poor's placed these ratings on CreditWatch with negative implications. We will likely either lower the ratings another notch or affirm them and assign a negative outlook. We expect to resolve the CreditWatch status of the ratings within 30 days.

In addition, Standard & Poor's lowered its counterparty credit rating on Radian Group Inc. (Radian Group) to 'BB+' from 'BBB' and its counterparty credit and financial strength ratings on Radian Group's mortgage insurance subsidiaries (Radian MI) to 'BBB+' from 'A'. At the same time, we removed these ratings from CreditWatch, where they were placed on Feb. 13, 2008, with negative implications. The outlook is negative.

Standard & Poor's also affirmed its 'AA' counterparty credit and financial strength ratings on Genworth Financial Inc.'s core mortgage insurance subsidiaries. The outlook remains negative.

In addition, Standard & Poor's affirmed its 'BBB' counterparty credit rating on MGIC Investment Corp. (MGIC Investment) and its 'A' counterparty credit and financial strength ratings on the mortgage insurance subsidiaries (MGIC), including MGIC Australia Pty Ltd. The outlook is still negative.

For a detailed copy of S&P's release, please contact Jeff Sexton, New York, (1) 212-438-3448

Analyst Contacts:
James Brender, New York (1) 212-438-3128
Andrew Dral, New York (1) 212-438-5677
Rodney A Clark, FSA, New York (1) 212-438-7245

Thomas D. Wood & Co. Brokers $7.5M Loan for Hotel-Restaurant at North Bay Village, FL

MIAMI, FL— Stephen Wechsler, (top right photo) Vice President for Thomas D. Wood and Company, secured financing in the amount of $7,500,000 for the Inn on North Bay, a Best Western Hotel and Shuckers Restaurant in North Bay Village, Florida.

The loan was financed through Thomas D. Wood and Company’s relationship with a local banking institution at a permanent fixed rate of 6.0%. The loan term is five years based on a 25-year amortization, and a loan-to-value of 38%.

The borrower refinanced the Inn on North Bay to renovate the 119-room hotel and attached restaurant. Inn on North Bay was built in 1967 and is located at 1819 79th Street Causeway, North Bay Village, Florida.

Stephen Wechsler (305) 447-7874
Jessica Gurtowski (407) 937-0470