Wednesday, September 3, 2008

Mark Wohl Named Associate Vice President Investments in Marcus & Millichap's Miami Office

MIAMI, FL — Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has named Mark Wohl (top right photo) to the position of associate vice president investments.

The title represents excellence in client relationships, investment real estate expertise and sales volume, according to Kirk Felici, (bottom left photo) regional manager of the firm’s Miami office.

“With more than 50 closings totaling in excess of $150 million in exclusively listed properties, Mark consistently expands market share and velocity,” says Felici. Wohl joined Marcus & Millichap in 2001. He specializes in multi-family investment sales.

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

Clark Retirement Community Inc., MI Rating Outlook Revised To Stable On Improved Operations

NEW YORK Sept. 3, 2008--Standard & Poor's Ratings Services revised its outlook to stable from negative and affirmed its 'BBB-' standard long-term rating and 'BBB-' underlying rating (SPUR) on the Michigan Strategic Fund's series 2006 and 1998 revenue bonds, issued for Clark Retirement Community Inc. (Clark).

"The stable outlook reflects Clark's strong occupancy levels and improved operating performance over the past two years," said Standard & Poor's credit analyst Stephen Infranco.

While operations are still negative, the improved results, coupled with steady investment income and increased contributions, contributed to a positive excess surplus in fiscal 2008.

For a complete copy of S&P's news release on this property, please contact Christopher Mortell, New York (1) 212-438-3446

Analyst Contacts: Stephen Infranco, New York (1) 212-438-2025; Antionette W Maxwell, Chicago (1) 312-233-7016

American Baptist Homes Of The West, CA Rating Outlook Revised To Positive

DALLAS, TX--Standard & Poor's Ratings Services revised its outlook to positive from stable and affirmed its 'BBB-' underlying ratings (SPUR) on California Statewide Communities Development Authority's series 2006 variable-rate demand bonds, and ABAG Finance Authority for Nonprofit Corporations series 1997A revenue refunding certificates of participation.

Both series were issued for American Baptist Homes of the West (ABHOW). Kelly Ridge, top right photo, is scheduled to open in summer 2009 in South Lake Tahoe, NV.

"Also reflected in the positive outlook is our expectation that ABHOW's near-term financial performance will be adequate, and operating performance will improve once its redevelopment efforts are complete," said Standard & Poor's credit analyst Karl Propst. "Over the past two and one half years, ABHOW demonstrated a significant operational turnaround and materially improved its balance sheet," added Mr. Propst.

Media Contact: Christopher Mortell, New York (1) 212-438-3446

Analyst Contacts: Karl Propst, Dallas (1) 214-871-1427; Stephen Infranco, New York (1) 212-438-2025

Cushman & Wakefield negotiates sale of Village Oaks for $21,250,050M

TAMPA, FL – Sept. 3, 2008 – Cushman & Wakefield’s Florida Apartment Brokerage Services with apartment specialists in Tampa, Orlando, Ft. Lauderdale and Miami, announces the sale of Village Oaks (top right photo) for $21,250,050.

The purchaser was Mid-America Apartment Communities, a Tennessee based REIT. Executive Director Byron Moger (top left photo) and Director Luis Elorza (bottom right photo) negotiated the sale on behalf of the owners, Radco Management LLC, receiver for EB Developers.

Village Oaks, located at 8425 Montravail Circle in Tampa, Florida, across the street from the Hidden River Corporate Park and adjacent to the Tampa Oaks II office building, was built in 2005.

The property consists of a total 279,750 square feet, 234 units with 19 units owned individually as condominiums. Mid-America Apartment Communities purchased the remaining 215 unsold units.

Village Oaks offers a mix of 1, 2 and 3 bedrooms and features a resort-style pool, elevator service in all buildings and high-tech services such as remote control of lighting, A / C, appliances and television monitoring of the community.

“Mid-America is creative and was able to buy a fractured condominium conversion. As a result, they got an excellent price for 215 (out of a total 234) high quality apartments with upside potential. For a garden-style community, Village Oaks has superior amenities including elevators,” said Moger.

To view our current multifamily listings, please visit or contact:
Byron Moger, Executive Director, Cushman & Wakefield,Inc., 813.204.5316,

Marcus and Millichap Capital Corp. Arranges $9.37M Loan for Grand Rapids, MI Office Building

GRAND RAPIDS, MI– Marcus & Millichap Capital Corporation (MMCC) has arranged a $9.37 million fixed-rate loan for the acquisition of a 160,000-square foot office building located at 4420 44th St. SE, Grand Rapids.

Jake Roberts, a vice president capital markets, and Anita Paryani, a senior director, both in the firm’s West Los Angeles office, arranged the financing package for the office building.

“MMCC was able to negotiate a very favorable financing structure for this acquisition even though many lenders have decreased leverage levels, particularly in such states as Michigan,” says Roberts. “The lender also agreed to reduce the personal recourse requirement from 100 percent to 35 percent.”

Financing for this property was provided by a commercial bank at a 5.75 percent fixed rate for the first five years, and then reset for the next five years at Treasury plus 200 basis points. Terms of loan are for 10 years with a 25-year amortization schedule. Loan-to-value was at 76 percent.

“The lender committed to the deal and locked the rate at application in two weeks,” says Roberts.

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

Marcus & Millichap Sells 24-Property Dollar General Portfolio in Texas and Alabama

DALLAS TX – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of a 24-store Dollar General (top right photo) portfolio with locations in Texas and Alabama. The sales price is $20 million.

Douglas Passon, a senior associate in the Detroit office of Marcus & Millichap, and Brandon Duff, an investment specialist in the firm’s Chicago Downtown office, represented the buyer. Tim A. Speck, regional manager of the firm’s Dallas office, and Andrew Clark, an investment specialist in the firm’s Birmingham office, assisted in the sale.

“This investment represented a rare opportunity for the buyer to acquire a 24-property Dollar General portfolio with non-recourse debt already in place with an 80 percent loan-to-value ratio,” says Passon.

“The portfolio boasts stores with strong sales and long leases in place in thriving locations throughout Texas and Alabama,” adds Duff.

The portfolio includes two stores in Leeds, Ala. and Madison, Ala. The remaining stores are located in San Antonio, Houston and areas in south Texas.

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

Hilton University of Florida Conference Center Site of Inaugural Florida Green Lodging Conference

GAINESVILLE, Fla., September 3, 2008—Officials of the 248-room Hilton University of Florida Conference Center (top right photo)today announced it will be the host hotel for the inaugural Florida Green Lodging Conference from November 10-12, 2008.

Entitled “Being Green, Saving Green & Making Green,” the conference is sponsored by VisitGainesville and the University of Florida TREEO (Training, Research & Education for Environmental Occupations) Center.

“Designated as one of the first green hotels in Florida, the Hilton University of Florida Conference Center is an ideal location to host this first-of-its-kind event,” said Roland Loog, CDME, executive director of VisitGainesville. The Hilton University of Florida Conference Center is the only Green Certified hotel in Gainesville.

The hotel is operated by Davidson Hotel Company, one of the nation’s largest hotel management companies.

Julie Tullbane, Daly Gray Public Relations, T 703-435-6293, F 703-435-6297

Cyndi Carl, Davidson Hotel Company, (901) 821-4155

Chris Daly (media), Daly Gray Public Relations, (703) 435-6293

New Grubb & Ellis Report Reveals Softening in the Sublease Market but Milder Than Last Market Contraction

SANTA ANA, CA (Sept. 3, 2008) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, found in a special report titled, The National Office Sublease Market: Is It Really Different This Time?, released today that the current softening in the sublease market is significantly milder than what occurred during the same timeframe of the last market contraction.

(Miami Biscayne Bay Bridge, top right photo)

While space available for sublease increased during the second half of 2007 and the first half of 2008, the report concluded that there are key differences between current conditions and those of the previous market contraction in 2001 and 2002.

“The impact of sublease space on the market boils down to how competitive the space is compared to existing alternatives,” said Robert Bach, Grubb & Ellis’ Chief Economist.

“Tenants looking to market sublease space are in a more favorable pricing environment compared to the previous cycle as overall asking market rental rates have yet to decrease.”

According to the report, broad market fundamentals have remained positive despite the concurrent increase in sublease availability.

The market experienced 24.5 million square feet of positive absorption from the third quarter of 2007 through June 30, 2008, compared with 38.9 million square feet of negative absorption in the earlier benchmark period.

Overall Class A asking rents have also continued to increase 7.0 percent, compared to a 6.3 percent decline in the previous cycle, according to the report.

During the prior contraction, developers reacted to dissolving demand by tabling new projects. In contrast, during the current softening in the sublease market developers have continued to kick off new projects as the construction pipeline passed the 100 million-square-foot mark during the second quarter of 2008 for the first time since 2001.

An analysis of 363 subleases being actively marketed by Grubb & Ellis in August 2008 suggests that while smaller blocks of space, less than 10,000 square feet of rentable area, dominate in terms of the number of offerings at 67 percent of overall market share, these spaces only account for 24 percent of all sublease availability.

Although only 3 percent of overall market share, large blocks of space, 40,000 square feet and larger, account for 21 percent of the total sublease square footage available.

The report sheds light on which industries have been able to extract value from the sublease market; the professional, scientific and technical services sectors, the transportation and warehousing sector, and the finance and insurance sectors account for half of the sublease absorption over the past four quarters.

“While additional sublease space can be expected to become available over the coming quarters, the majority of it in suburban Class A buildings, current conditions better position tenants to mitigate their losses than in the previous softening cycle,” said Bach.

The report also includes a summary of trends occurring in key markets across the nation:

· The South Florida, Atlanta, Austin, and Central and Northern New Jersey markets all show evidence of emulating the national trend of an increase in sublease space in the suburban Class A properties. (Miami Biscayne Bridge photo, top right)

· While Atlanta (skyline, top left) has mirrored the national market with an increase in sublease supply of suburban Class A properties, rapid growth in medical and life sciences industries has served to keep the market in positive absorption territory as of mid-year.

· Chicago (top right, downtown retail district) countered the national trend with the majority of the increase in sublease space focused in the city’s central business district. Despite the recent jump to 6.4 million square feet of available space, the market is far from the 12.6 million square feet available during the prior market contraction.

· In Los Angeles, (middle left photo, downtown office towers) the Tri-Cities and LA North submarkets were hard hit due to the area being home to residential real estate and related firms.

· Orange County witnessed a 52 percent increase in sublease inventory during the past year, driven by consolidations and reductions in the mortgage banking, software, training and legal industries.

· Large blocks of Class A space account for more than 70 percent of the total sublease availability in Richmond, Va. (composite photo, bottom right) Tenants are aggressively looking to monetize the excess capacity of space in the area.

A complete copy of the report can be requested via email, send requests to

Contacts: Julia McCartney, 714.667.8252

Janice McDill, 312.698.6707

Grubb & Ellis Predicts Leasing Market Weakness Through Mid-2009

SANTA ANA, CA--Bob Bach, (top right photo) Senior Vice President and Chief Economist, Grubb & Ellis Co., notes Gross Domestic Product, the output of goods and services produced in the U.S., grew at a revised rate of 3.3% annualized in the second quarter.

In the first half of the year, annualized GDP rose 2.1% even as the labor market shed 463,000 net payroll jobs through July.

The disconnect between GDP and jobs, while not unusual in recent economic cycles, sends mixed signals about the economy.

Most analysts think GDP growth will cool in the coming quarters as the tax rebate fades and the global economy slows. Expect leasing market weakness through mid-2009.

Source: Bureau of Economic Analysis, Bureau of Labor Statistics, Grubb & Ellis

CONTACT: Janice McDill, 312 698 6707

Arbor's Boston Office Closes $5.68M in Two Southeast Apartment Loans

Arbor Closes $3,845,900 Fannie Mae DUS® Loan for Oakdale Apartments in Fayetteville, NC

UNIONDALE, NY (Sept. 3, 2008) – Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the funding of a $3,845,900 loan under the Fannie Mae DUS® product line to refinance the 118-unit complex known as Oakdale Apartments in Fayetteville, NC.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.58 percent.

The loan was originated by John Edwards, (top right photo) Director, in Arbor’s full-service Boston lending office. “This closing represents the fourth property we have financed with this client demonstrating the importance we place on repeat business,” said Edwards. “We look forward to future financing opportunities with this client.”

Arbor Closes $1,838,700 Fannie Mae DUS® Loan for Townwoods Apartments in Savannah, GA

Uniondale, NY (09/03/2008) – Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $1,838,700 loan under the Fannie Mae DUS® product line to finance the 57-unit complex known as Townwoods Apartments (middle right photo) in Savannah, GA.

The 7-year loan amortizes on a 30-year schedule and carries a note rate of 6.39 percent.

The loan was originated by John Kelly, (bottom left photo) Director, in Arbor’s full-service Boston lending office. “This represented Arbor’s second transaction on behalf of this client,” said Kelly. “The property is well maintained and has enjoyed a strong rental history.”

Contact: Ingrid Principe, Tel: (516) 506-4298