Tuesday, March 31, 2009

The New Year Didn’t Change the Downward Spiral of Residential Real Estate Prices

NEW YORK, NY--Mar. 31, 2009 – Data through January 2009, released today by Standard & Poor’s for its S&P/Case-Shiller1 Home Price Indices, the leading measure of U.S. home prices, shows continued broad based declines in the prices of existing single family homes across the United States, with 13 of the 20
metro areas showing record rates of annual decline, and 14 reporting declines in excess of 10% versus January 2008.

The middle left chart depicts the annual returns of the 10-City Composite and the 20-City Composite Home Price Indices. Following the lead of the 14 metro areas described above, the 10-City and 20-City Composites also set new records, with annual declines of 19.4% and 19.0%, respectively.

“Home prices, which peaked in mid-2006, continued their decline in 2009,” says David M. Blitzer, (top right photo) Chairman of the Index committee at Standard & Poor’s.
“There are very few bright spots that one can see in the data."

Most of the nation appears to remain on a downward path, with all of the 20 metro areas reporting annual declines, and nine of the MSA’s falling more than 20% in the last year.
Indeed, the two composites are very close to that rate and have been reporting consecutive annual record declines since October 2007.

The monthly data follows a similar trend, with the 10-City and 20-City Composite
showing thirty consecutive months of negative returns.”

The middle right chart shows the index levels for the 10-City Composite and 20-City Composite Home

Price Indices. As of January 2009, average home prices across the United States are at similar levels to what they were in late 2003.
From the peak in the second quarter of 2006, the 10-City Composite is down 30.2% and the 20-City Composite is down 29.1%.

All 20 metro areas are reporting negative monthly and annual rates of change in average home prices.

Seven metro areas and the 20-City Composite recorded a record monthly decline in January. In addition, seven metro areas (not always the same seven) reported declines in excess of 4% in the month of January alone.

Phoenix led with a report of -5.5%. Every MSA has had at least five consecutive months of decline, dating back to September 2008. On a marginally positive note Cleveland, Los Angeles and Las Vegas are reporting a relative improvement in year-over-year returns, in terms of lesser rates of decline than last month’s values.

Furthermore, Las Vegas, along with five other metro areas, showed a marginal
improvement in monthly returns, albeit still negative.

The three worst performing cities, in terms of annual declines, continue to be from the Sunbelt, each reporting negative returns in excess of 30%. Phoenix was down 35.0%, Las Vegas declined 32.5% and San Francisco fell 32.4%.

Dallas, Denver and Cleveland faired the best in terms of annual declines down
4.9%, 5.1% and 5.2%, respectively.

Looking at the data from peak-thru-January 2009, Dallas is the least hurt, down 10.8% from its peak in June 2007, while Phoenix is down 48.5% from its peak in June of 2006.
The rates of decline from the individual heights of each market are evidence of how much each market has taken back in terms of the gains earned in the past 10-15 years.

All of the 20 metro areas are in double digit declines from their peaks, with nine of the MSA’s posting declines of greater than 30% and five of those (Las Vegas, Miami, Phoenix, San Francisco and San Diego) in excess of 40%.

For more information, please contact:
David Blitzer, Chairman of the Index Committee, Standard & Poor’s, 212 438 3907

David Guarino, Communications, Standard & Poor’s, 1 212 438 1471

Interstate Hotels & Resorts Receives Credit Facility Waiver

ARLINGTON, VA, Mar. 31, 2009—Interstate Hotels & Resorts (OTC: IHRI), a leading hotel real estate investor and the nation’s largest independent management company, today announced that the company had received a waiver through June 30 related to the requirement under its senior credit facility to maintain listing on the New York Stock Exchange.

The NYSE suspended trading of Interstate’s stock on March 12 after the company failed to meet the minimum $15 million market capitalization requirement.

Trading of the company’s stock has transitioned to the OTC market and the NYSE listing continues pending the appeal process.

“We appreciate the continued support from our bank group and have begun discussions regarding extending the facility’s March 2010 maturity,” said Bruce Riggins, chief financial officer. “Our goal is to have an amendment completed prior to June 30.”

As part of the waiver agreement, the interest rate on the credit facility was increased 75 basis points to LIBOR plus 350 basis points.

In addition, the company paid a 50 basis point fee to consenting lenders, and the facility size was permanently reduced to $173.3 million from $198.0 million.

The new facility size provides for $10 million of borrowing capacity, of which $6 million is available through June 30, in addition to cash on hand. The company does not expect to draw on the facility during the waiver period.

Contact: Bruce Riggins, Chief Financial Officer, (703) 387-3344

Palm Beach County Shopping Centers show positive absorption in 2008

MIAMI BEACH, FL, Mar. 31, 2009 – Palm Beach County shopping centers showed positive market absorption for the year ending in the third quarter of 2008, with 527,084 more shopping center square feet occupied in 2008 than a year before, according to statistics recently released by Terranova Corp.

Developers delivered nearly one million square feet of new retail space in those 12 months, increasing total inventory of shopping center space and contributing to increased market absorption.

While countywide vacancy increased to 7.5% in the third quarter of 2008, compared to 5.09% a year before, there still were more square feet occupied in 2008 than in 2007.

Although vacancy rates went up in all of the county’s six submarkets, three submarkets showed increases in average asking rent: Boynton Beach/Delray Beach submarket went up 2.49% to $25.95; Wellington/Royal Palm Beach went up 0.79% to $29.40 per square foot; and Lake Worth went up 0.36% to $19.63.

The biggest decrease was in the Jupiter/Tequesta submarket, where average asking rent declined 6.04% to $24.11. Countywide, the average asking rent for inline space was $25.67 per square foot, slightly lower than $25.78 a year before.

Please visit http://www.terranovacorp.com/ to purchase your copy of the 2008 Palm Beach Market Report.

Orlando's Industrial Vacancy Rises to 12% in 1st Quarter

CBRE Orlando First Quarter Industrial Mkt Report 2009

ORLANDO, FL-Asking Lease Rates:

The overall weighted average asking lease rate for all industrial product types was $6.87 NNN per sq. ft. at the end of first quarter of 2009.

This is a slight decrease from the average rate of $6.93 NNN in the fourth quarter of 2008.

To entice tenants, more rental concessions are being offered, including free rent and unprecedented first year rates.

(Ashley Furniture Distribution Center at Airport International Park of Orlando, middle left photo)

Vacancy Rates

The industrial vacancy rate was 12.0 percent at the end of the first quarter 2009, a slight increase from the 11.5 percent reported in the fourth quarter of 2008. The vacancy rate one year ago was reported as 8.8 percent.

Net Absorption

The first quarter of 2009 industrial absorption was a negative 460,111 sq. ft. That compares to a negative 434,475 sq. ft. in the fourth quarter of 2008.

(Kraft Foods Nabisco Division distribution Center at Airport International Park of Orlando, bottom right photo)

Industrial Market

Availability rates for warehouse/distribution buildings continue to rise, largely due to falling retail sales, especially in markets that were most affected by the housing crisis, such as Florida and many coastal California markets.
Furthermore, the global manufacturing slump has broadened.
With the auto industry on the precipice of an historic re-organization, Chrysler and General Motors announced shutdowns in January 2009 to curb production and preserve cash flow.
This move will affect parts manufacturers and distributors as well. With the pervasive economic slowdown, the auto sector is expected to continue adding to the labor market's losses.

(33rd Street Industrial Park, bottom left photo)

The Institute for Supply Management's manufacturing index fell to 32.4 in December 2008 – its lowest level since the early 1980s.

New orders were down and most capital expenditures have been deferred.

The industrial availability rate is expected to continue to rise, with rents softening.

Manufacturing job losses continue to mount, totaling close to half a million for the year.

Office Tenants in Driver's Seat, Reports CBRE Orlando

CBRE Orlando Office Market Report First Quarter 2009

ORLANDO,FL--Opportunities are abundant for tenants in Orlando.

Slowing job growth, high vacancies, and falling lease rates has increased leverage to tenants actively negotiating with landlords, who are eager to fill vacancies for a reasonable rate and term.

The increase in sublease activity over the past year has contributed to the downward pressure on landlords to make it cheaper for tenants entering the market.

This is the third consecutive quarter of declining overall lease rates from its peak of $22.33 per sq. ft. in the second quarter of 2008.

(CNL Center II, middle right photo)

When compared to the previous quarter, the overall lease rate for Metro Orlando decreased by $0.17 to $21.35.

Lease rates have not been this low since two years ago at $21.26.

Class A space in the Downtown submarket continues to command the highest lease rate of $28.39, an increase of $0.18 from the previous quarter. In the suburban market, the East Orlando submarket experienced the highest class A lease rate of $25.31.

Compared to the previous quarter, the total vacancy rate for Metro Orlando increased by 207 basis points to 16.2 percent.

The vacancy rate for Metro Orlando has not been this high since the fourth quarter of 1992 when it stood at 16.9 percent.

The Lake Mary and East Orlando submarkets experienced the lowest vacancies of 10.5 percent and 15.3 percent, respectively. South Orlando and North Orlando submarkets experienced the highest vacancies of 18.5 percent and 21.4 percent, respectively.

(The Plaza complex, Downtown Orlando, bottom right photo)

Net absorption decreased from negative 578,321 sq. ft. in the fourth quarter to negative 539,995 sq. ft.

The South Orlando submarket experienced positive 29,589 sq. ft. of sublease absorption, the only positive sublease absorption in Orlando. Maitland Center experienced negative 189,714 sq. ft. or 35.1 percent of net absorption experienced in Orlando. South Orlando experienced the highest net absorption of negative 5,815 sq. ft.

Monday, March 30, 2009

Thomas D. Wood Brokers $5M in 2 New Loans

Pompano Merchandise Mart Receives $3M

MIAMI, FL, Mar. 30, 2009— Thomas D. Wood and Company, a Strategic Alliance Mortgage LLC member, secured financing on March 25, 2009, in the amount of $3,000,000 for the Pompano Merchandise Mart (top right photo) in Pompano Beach, Florida.

Marshall Smith, (middle left photo) Company Executive Vice President, financed the Pompano Merchandise Mart through Thomas D. Wood and Company’s correspondent relationship with Southern Farm Bureau Life Insurance Company.

The non-recourse loan is a full cash-out refinance with an interest rate of 6.5% and a five-year term, based on a 25-year amortization. The loan to value is 38%. The three-building, 118,217 square-foot industrial project is located at 2099 and 2101 West Atlantic Boulevard, Pompano Beach, Florida.


Marshall Smith, (305) 447-7820, msmith@tdwood.com

Jessica Gurtowski, (407) 937-0470, jgurtowski@tdwood.com

Metro Office Building in Lake Worth, FL Obtains $2M

FORT LAUDERDALE, FL—Mar. 30, 2009— Thomas D. Wood and Company, a Strategic Alliance Mortgage LLC member, secured financing on March 27, 2009, in the amount of $2,000,000 for the Metro Office Building in Lake Worth, Florida.

Patrick Madore, (bottom right photo) Company Vice President, financed the Metro Office Building through Thomas D. Wood and Company’s relationship with a local bank.

The loan has an interest rate of Prime + 1% and a five-year term, based on a 25-year amortization. The loan-to-value and loan-to-cost is 50%.

The 12,000 square-foot office building was built in 1977 and is located at 1000 N. Dixie Highway, Lake Worth, Florida.


Patrick Madore, (954) 233-6024, pmadore@tdwood.com

Jessica Gurtowski, (407) 937-0470, jgurtowski@tdwood.com

Arbor Closes $3,520,000 Fannie Mae DUS® MBS Loan on Ballantyne Apartments in Syracuse, NY

UNIONDALE, NY (Mar. 30, 2009--Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $3,520,000 loan under the Fannie Mae DUS® MBS product line to finance the 138-unit complex known as Ballantyne Apartments in Syracuse, NY.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.25 percent.

The loan was originated by Peter Margolin, (top right photo) Director, in Arbor’s full-service Deerfield, IL lending office. “Arbor assisted the borrower with the acquisition of this property by maximizing proceeds and offering a highly competitive rate,” said Margolin.
Contact: Ingrid Principe, IPrincipe@arbor.com

Tilt-Con Starts Lakeside Medical Center in Belle Glade, FL

ORLANDO, FL – Altamonte Springs-based Tilt-Con Corporation is under way on the Health Care District of Palm Beach County’s new Lakeside Medical Center, a technologically-advanced, multimillion-dollar hospital now under construction on a 50-acre site at US 441 and State Road 80 in Belle Glade, FL, under its contract with Skanska USA Building, Inc., Tampa, FL.

Designed by Gresham, Smith and Partners, Hollywood, FL, the 168,646-square-foot facility will replace Glades General Hospital, Palm Beach County’s only public hospital, when opened later this year.
Ranked as the nation’s largest tilt-up concrete constructor by Engineering News-Record magazine, Tilt-Con utilizes its economical multi-story system for tilt-up concrete walls. Tilt-Con’s scope of work includes foundations, slab-on-grade, tilt-up concrete wall panels and mezzanines.

Contact: Kenneth H. Cristol, 407-774-2515

Wyndham Hotels Honored for Green Innovations Including Eco-Friendly Uniforms

PARSIPPANY, N.J. (Mar. 30, 2009) – Unique “green” programs introduced by Wyndham Hotels and Resorts, including ecologically-friendly uniforms made with recycled plastics, have been recognized by Lodging Hospitality magazine with a Chain Leadership Award, which honors the best in innovation, creativity and business-building in the U.S. hotel industry.

The award, announced in the magazine’s current issue, singled out Wyndham Hotels and Resorts as the leader in the category of Environmental Action.

Lodging Hospitality editors annually solicit reader nominations, then select the “best of the best programs and strategies employed in the previous year.”

Wyndham President Jeff Wagoner (bottom right photo) thanked Lodging Hospitality for the award saying, “We are honored to be recognized for programs that demonstrate leadership in the hospitality industry, add value to our properties and underscore operational excellence.”

(Brown suit uniform, bottom left photo; blue uniform, top right photo)

Fabric for the eco-friendly Wyndham hotel staff uniforms is manufactured using polyester fibers spun from post–consumer products, including recycled plastic beverage bottles, which are woven into very soft fabrics.

By using recycled materials, the hotel chain helps to keep plastics out of landfills. Moreover, the uniforms, which do not require professional laundering, minimize the use of chemicals during cleaning and provide a cost savings to hotel operators.

“These trendy garments can be modified and mixed and matched for a more personal, fashionable suit that is cost–effective and extremely comfortable,” said Faith Taylor, (top left photo) Wyndham Worldwide vice president of sustainability and innovation.

“Sustainability has morphed from a ‘nice have to a must have,’ and we are committed to finding opportunities that drive innovation and deliver value to our guests and franchisees.”

Wyndham Hotels and Resorts is the first national upscale lodging chain to implement the eco–friendly uniform initiative.

Cincinnati–based Cintas Corporation was contracted to design and manufacture the uniforms and continue to introduce new eco–friendly fabrics for the Wyndham apparel program.

In addition to its ecologically-friendly uniforms, the Wyndham chain’s green initiatives include installation of energy–efficient compact fluorescent lighting; low–flow water practices; an Earth Smart guest linen reuse program; and numerous recycling efforts.

In another major innovation, the chain launched the Wyndham ClearAirsm initiative last year, becoming the first national upscale lodging chain to feature allergy–friendly rooms.

Following a system designed by New York-based PURE Solutions NA, Wyndham ClearAir rooms are designed to improve air quality following a multistep cleaning process to remove up to 98 percent of allergens.

For a list of Wyndham locations that offer this amenity, see www.wyndham.com/ClearAir. For more information on sustainability initiatives at Wyndham Worldwide, visit http://www.wyndham-green.com/.

Wyndham Hotels and Resorts, a subsidiary of Wyndham Worldwide Corporation (NYSE: WYN), offers upscale hotel and resort accommodations throughout the United States, Europe, Canada, Mexico and the Caribbean. All hotels are either franchised or managed by Wyndham Hotels and Resorts or an affiliate. For additional information or to make a reservation, go to http://www.wyndham.com/.

Evy Apostolatos, Director, Media Relations, Wyndham Hotel Group, 1 Sylvan WayParsippany, NJ 07054. (973) 753–6590. evy.apostolatos@wyndhamworldwide.com

CBRE's Jay Ninah Earns LEED Accreditation in Orlando, FL

ORLANDO, FL - Mar. 30, 2009 - The Orlando office of CB Richard Ellis announces LEED Accreditation for Jay Ninah, (top right photo) Senior Project Manager.

An experienced Engineer and Project Manager with over 18 years working at several Fortune 500 companies including Gap Inc., Sports Authority, Loblaws Supermarkets and Scholastic.

Jay joined the CBRE Orlando City Project Management office last June after leading the CBRE Project Management, construction team at Home Depot Supply/Hughes Supply managing new build to suits and renovations for the 900+ warehouse style supply stores for three years.

His current projects include a new Head Office and Production Facility for a Medical Company, a 100K ground up warehouse construction, a retail/office center TI first generation buildout for a financial institution and analyzing a potential solar roof application.

With proven success in delivering construction, warehousing and process improvements projects; Jay broadens the skill set of our local project management team.

Areas of applicable expertise include: new shell construction, warehouse design and automation, conveyors and racking design and installations; managing tenant improvement projects - offices/retail and industrial engineering applications.
CBRE has taken a proactive role in guiding landlords and tenants through the LEED New Construction (NC), Existing Building (EB) program and Commercial Interiors (CI) programs as applicable.

Contact: Angelique Greven, 407.839.3158, angelique.greven@cbre.com

Sunday, March 29, 2009

10 Biggest Risks Faced by Real Estate Companies

NEW YORK, NY—Unlike the Obama Administration’s generally positive outlook for the financial markets, global accounting firm Ernst & Young sees no speedy improvement coming that will help the real estate industry this year.

“The real estate sector has felt the tightening conditions in credit markets perhaps more than any other sector due to its heavy reliance on capital,” says Howard Roth, Global and Americas Real Estate Leader at New York-based Ernst & Young.”

“Financial conditions for real estate projects are undoubtedly worsening and the current financial markets landscape is expected to persist for the next couple of years.”

Still, he notes, "In this time of great economic uncertainty and lack of liquidity, many companies are proactively looking for ways to effectively manage risk, streamline operations, and enhance their business relationships so they can hit the ground running when markets begin to stabilize."

The 2009 Ernst & Young Real Estate Business Risk Report, produced with strategy consultancy Oxford Analytica of Oxford, England, itemizes the 10 top business risks faced by the industry as ranked by leading sector analysts.

Those risks, in order, are:

---Continued uncertainty and impact of the credit crunch -- tighter credit is just one threat to real estate from the crunch; the economic downturn is affecting commercial vacancy rates as well as property valuations.

---Global economic and market fluctuations -- due to capital flows and business expansion, the real estate industry has become a truly global industry and, as such, is increasingly susceptible to global market fluctuations.

---Impact of aging or inadequate infrastructure -- particularly in the US, but also in other markets around the world, a lack of key transit and utility infrastructure is a threat to economic
and real estate growth.

---A global war for talent -- globalization of business has also created a worldwide talent pool with countries forced to compete for human capital.

---Changing demographics -- aging and urbanizing populations are changing competitive dynamics and creating new markets in real estate.

---Inability to find and exploit non-traditional global opportunities -- with competition increasing worldwide from sovereign wealth funds and others, many global investors face a tough time sourcing new deals that will meet return expectations.

---Pricing uncertainty -- with few transactions taking place in the real estate market, valuations are a problem for existing owners, as well as buyers and sellers.

---Green revolution, sustainability and climate change -- real estate is at the forefront of the green movement with pressures intensifying to build and operate in sustainable ways and minimize the carbon footprint throughout all types of real estate.

---Economic vulnerability and regulatory risks in developing markets -- developing markets are a key focus for global real estate firms but regulatory risk in these markets is constantly changing as authorities seek to jump start economies.

---Increasing energy costs -- few analysts expect more than a temporary respite from high oil prices as new supply will be unable to meet renewed demand.

“Given the risks outlined by analysts in the report, it is time for owners, investors and users of real estate to use the time afforded by this lull in real estate activity to prepare their businesses for the next period of economic growth,” advises Roth.

He predicts, "There will be a fundamental shift back to traditional real estate underwriting principles, including comprehensive cash flow analysis and prudent levels of debt and equity in consummating real estate transactions.

"This 'back to basics' movement will lead to the greater transparency necessary to restore confidence between buyers and sellers.”

According to Mark Costello, America's Leader of Ernst & Young's construction and real estate advisory services practice, "Real estate is typically the second highest cost item on an income statement after payroll and so provides excellent opportunities for companies to unlock hidden value, particularly through a back to basics approach."

"The real estate industry as a whole is focused on simplicity, transparency and quality deals. However, when things are going really well it tends to mask organizational inefficiencies," says Costello. "Companies which address those issues now and solidify their businesses will be in a much better position to address future risk threats."

On the construction side of the industry, two out of three capital projects are currently over budget or behind schedule, according to Malcolm Bairstow, Ernst & Young's Global Advisory Services Leader for the real estate and construction sectors.

That situation, he adds, is “a statistic exacerbated by the uncertainty surrounding the economy and the availability of financing. Yet, deploying risk mitigation or accelerated delivery methods after careful assessment of a project can also reduce risk and cost and bring in projects on time and on budget.”

"The real estate industry as a whole is focused on simplicity, transparency and quality deals. However, when things are going really well it tends to mask organizational inefficiencies," says Costello.

"Companies which address those issues now and solidify their businesses will be in a much better position to address future risk threats."

Spanish Banks Back $2.5B New Leisure Destination in Mexico Caribbean

(RIVIERA MAYA, MEXICO)—While Mexican drug wars currently make the headlines, a new vacation oasis is being born quietly in the Mexico Caribbean market.

With the backing of Spain-based Bancaja and Banco de Valencia, Mexico developer Grupo Grand Coral has started Grand Coral Riviera Maya, (top right photo) a planned $2.5 billion oceanfront-retail-entertainment development in Rivera Maya, 30 minutes from the Cancun Airport and five minutes from the coastal entertainment community of Playa del Carmen.

Grupo Grand Coral CEO Jordi Mercade says the project will take 10 years to complete and will showcase 6,900 residences. A total $700 million has been invested in the project to date.

The first phase, already under way, is Mareazul, which will offer 300 beachfront condos. Nick Price (bottom left photo) is designing the 18-hole golf course. Adjacent to the clubhouse, with full views of the course, will be the Nick Price Residences comprised of 123 homes.

“The project will have an urban resort feel, something unique to the area,” says Price.

Although the project encompasses 561 oceanfront acres, 75 percent of the land will be preserved, says Mercade. “It is very important for use to work in harmony with the land and we will encourage this lifestyle with all developers and future residents of Grand Coral.”

He says Grand Coral Riviera Maya “will truly be the first of its kind in the region.” As such, Mercade says the master development “presents a great opportunity for developers and investors to be in an impressive gated community with multiple real estate options.”

A mix of land lots is available for development. “There is really an opportunity for developers and investors at every level and we will work with each individually to meet their needs,” Mercade says.

He calls Riviera Mayo “truly paradise…having the world’s second largest barrier reef which lies in the ocean waters bordering Grand Coral.”

Grubb & Ellis|Commercial Florida Wins New Retail Client in Madeira Beach, FL

TAMPA, FL- Grubb & EllisCommercial Florida has been retained by the Hubbard Family to handle leasing and property management of the newly constructed John’s Pass Village and Boardwalk (top right photo) at Hubbard’s Marina located in Madeira Beach in Pinellas County.

John’s Pass Village and Boardwalk comprises over 268,000 square feet of retail and restaurant space located in a series of individually owned buildings.

Grubb & Ellis is leasing the space in the newly constructed buildings and is working to secure a new boat operator to fill the boat slip recently vacated by Sun Cruise Casinos.

The property, located on John’s Pass and the intercostal waterway, is anchored by Bubba Gump and Shrimp Co. It offers boat access and sunset views on the Gulf of Mexico.

The new construction also includes a 350-car parking garage.

“John’s Pass has over two million visitors per year and is a large tourist attraction. It’s a one of a kind, very unique and historical and offers every amenity that a tourist could want,” said Michelle Seifert, (bottom left photo) associate vice president for Grubb & EllisCommercial Florida and leasing agent for the property.

A broker open house is scheduled for April 2. Please call 813-639-1111 for more information or to obtain information on leasing space.
Contact: Michelle Seifert, 813-830-7537 or Jeffrey Sweeney, 407-481-5387

Saturday, March 28, 2009

Marcus & Millichap Capital Corp. Arranges $2.93M Loan for Dallas Apartment Complex

DALLAS, TX – Marcus & Millichap Capital Corporation (MMCC) has arranged a $2.93 million adjustable-rate loan for the acquisition and renovation of Regal Brook Apartments (top right photo) a 146,142-square foot multi-family apartment building located at 8303 Skillman St. in Dallas.

Alex Inman, (bottom left photo) an associate in the firm’s Dallas office, arranged the financing package for the 160-unit apartment building.

“The property presented many obstacles that MMCC was able to overcome when arranging financing for this transaction,” states Inman.

“The property had been foreclosed upon and only had six months of operating history. The lender/owner did not want to spend money on the asset and the management company wasn’t motivated in collecting rents from the current tenants.

“By utilizing MMCC’s national platform, we were able to identify lenders in the marketplace that understood the property’s financial obstacles and could work quickly,” adds Inman.

“We effectively communicated the sponsor’s plans, from start to finish, and were able to partner with a lender who understood the sponsor’s vision and could provide a quick turnaround time to close this deal.”

Financing for this transaction was provided by a regional bank at the rate of 6.5 percent, interest only.

“What sets this transaction apart is that MMCC was able to provide the client with the most current capital markets information and source a lender that would finance an underperforming, foreclosed asset.”

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

Two Specialists in Marcus & Millichap's Seattle Office Ranked Among Company's Top 30 Nationwide

ENCINO, CA – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced its top investment specialists for 2008.

Two agents of the Tax Credit Group of Marcus & Millichap in the firm’s Seattle office ranked in the Top 30 out of more than 1,300 investment specialists nationwide.

The agents are Robert Sheppard (2) (top right photo) and Armand Tiberio (23). (top left photo)

Robert Sheppard is also the firm’s No. 1 multi-family investment specialist nationwide.

“We are proud to recognize Robert Sheppard and Armand Tiberio as top-ranking investment specialists,” says Harvey E. Green, (bottom right photo) president and chief executive officer of Marcus & Millichap. “Their accomplishments and track record reflect their superior transaction expertise and commitment to client service.”

Sheppard is a senior vice president of investments specializing in low-income housing tax-credit multi-family sales. He joined Marcus & Millichap in December 1993 and was promoted to senior vice president investments in January 2008.
Sheppard also serves as a senior director of the firm’s National Multi Housing Group. In 2001, he formed the Tax Credit Group of Marcus & Millichap, which is the leading specialty group dedicated exclusively to the disposition of Section 42 Low-Income Housing Tax Credit (LIHTC) apartments throughout the United States.

Tiberio, a vice president investments, has been a member of the Tax Credit Group since its inception and is a senior director of Marcus & Millichap’s National Multi Housing Group. Tiberio joined Marcus & Millichap in July of 2000 and was promoted to vice president investments in July 2008.

The Tax Credit Group of Marcus & Millichap consists of 19 professionals lead by three principal agents, Sheppard, Tiberio and Spencer Hurst. In 2008, the group closed transactions valued in excess of $272.83 million. The transactions included a $24.2 million multi-family community in Birch Pointe, Ore., a $20.1 million multi-family community in Orlando, Fla., and a $15.5 million LIHTC community in Olympia, Wash.

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

Marcus & Millichap Lists Single-Tenant Industrial Property in Houston, TX for $13.84M

HOUSTON, TX – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has retained the exclusive listing for Aker Solutions, (top left photo) a 94,800-square foot industrial facility in Houston.

The listing price of $13.84 million represents $146 per square foot.

Daniel Danielak, a senior associate in the firm’s Detroit office is representing the seller.

“The facility includes operational support for the company’s three main activities on the property: drilling intervention, technology and subsea systems,” says Danielak.

“Aker Solutions ASA, an $8.3 billion company, is committed to being the industry leader in oil field operations and has chosen Houston and this facility to invest in their company’s operations.”
Located at 2201 North Sam Houston Parkway West, the site features two built-in water pits for engineering and laboratory testing and four overhead crane systems. The seller controls adjacent land that gives the tenant the availability to expand the existing facility.

The built-to-suit asset was constructed in 2007. The current triple-net lease has eight years remaining, one five-year renewal option and 2.75 percent rent increase every two years.

“Low-rate financing through Mark One Capital, Inc. is available that would give a solid first-year return on a single-tenant asset such as Aker Solutions,” adds Danielak.

“The Aker Solutions guarantee, the long-term triple-net lease, and the superior quality of this facility makes this industrial investment opportunity a best-of-class trophy asset acquisition opportunity.”

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