Friday, July 31, 2009

Franklin Street Announces $9,550,000 Florida Multifamily Sale

TAMPA, FL, July 31, 2009--Franklin Street Real Estate Services is pleased to announce the sale of Costa Del Sol Apartments (top right photo) in Seminole, Fla., for $9.55 million.

The sales price represents $66,319 per unit and $84.22 per square foot.

Franklin Street broker Robert Goldfinger represented the buyer in the transaction.

John Burpee from NAI Real Estate represented the seller.

The seller was Merecorp, Inc. The buyer was a private investor group.

The buyer paid a premium for the property due to its outstanding location and condition and due to the lack of quality apartment communities available to acquire today,” comments Goldfinger, a Partner with Franklin Street Real Estate Services.

Built in 1972, Costa Del Sol Apartments is located at 7700 Ridge Road in Seminole, FL. The property was constructed of concrete block and offers 113,400 rentable square feet.

The apartment community consists of 72 one-bedroom units and 72 two-bedroom units ranging in size from 675 square feet to 900 square feet.


Common amenities include a swimming pool, lush landscaping, clubhouse and a playground. Units are equipped with washer and dyers, balconies or patios and central air-conditioning.

Costa Del Sol is conveniently located near major highways, beaches and the Gulf of Mexico.


Contact: Mandy Force, Franklin Street Real Estate Services, Phone: 813.839.7300, Fax: 813.839.7330, http://www.franklinstreetfinancial.com/

Marcus & Millichap Promotes 3 to Vice President Investments in Encino, CA office


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 Scott D. Lamontagne, regional manager in the firm’s Encino office.


Miller began his career with Marcus & Millichap in 2003, specializing in multi-family properties.

Isaacson also began his career with Marcus & Millichap in 2003 specializing in multi-family properties.

Regenstreif began his career with Marcus & Millichap in 2007, specializing in the sale of retail properties.

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

Marcus & Millichap Capital Corp. Arranges $4.53M Loan for New York City Mixed-Use Property


NEW YORK, N.Y., July 30, 2009 – Marcus & Millichap Capital Corporation (MMCC) has arranged a $4.53 million loan for the acquisition of an 8,700-square foot mixed-use multi-family and retail building located at 229 Lenox Ave. in New York City.

Brian Ursino, an associate director for the firm’s Manhattan office, arranged the financing package for the mixed-use building.

“The property presented many unique challenges in creating a comprehensive financing package for our client,” states Ursino.

“Our client, a successful art gallery owner, wanted to open a gallery on the first floor and also reside in the building. This required MMCC to source lenders who would finance a combination of loans to include a small business loan, a construction loan for renovations and an equity line of credit.”

“By utilizing MMCC’s platform, we were able to create a knowledgeable advisory team consisting of a lender whose underwriters were familiar with our client’s business, and New York State agencies that subsidized a portion of his interest payments for the first few years of his loan,” continues Ursino.



“The loan program we created gave our client interest on $500,000 at a specified rate for a period of time which paid some of his interest expense.”

Marcus & Millichap Capital Corporation arranged a total of $4.53 million of financing on a $1.8 million purchase.

Financing was provided by a SBA loan of $1.44 million, a construction loan of $2.34 million and a $750,000 equity line. Interest rate was at 5.3 percent fixed rate with a 30-year amortization schedule.

Loan-to-value was 80 percent plus 20 percent in a working capital equity line for a total of 100 percent financing.

“MMCC was able to arrange a creative financing transaction for our client that is becoming increasingly rare, if not extinct, given the current state of the capital markets,” adds Ursino.



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

Thursday, July 30, 2009

Arbor Closes 3 Fannie Mae Loans Totaling $8M

2 Charlotte, NC Properties Get Fannie Mae DUS® Loans Totaling $6,675,900

Uniondale, NY (July 30, 2009) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of two (2) loans totaling $6,675,900 under the Fannie Mae DUS® product line. These loans include:

· Woodfield Gardens, Charlotte, NC - 132-unit complex in the amount of $2,680,000 under the Fannie Mae DUS® product line. The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.00 percent.

· Milton Road Apartments, Charlotte, NC – 231-unit complex in the amount of $3,995,900 under the Fannie Mae DUS® product line. The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.00 percent.

The loans were originated by Alex Kaushansky, (top left photo) Director, in Arbor’s full-service New York City lending office. “Arbor executed both loans simultaneously allowing the borrower to meet his goal of a speedy closing,” said Kaushansky. “We were pleased to deliver in this tight timeframe.”

Shreveport, LA Apartments Obtains $1.35M Loan

Uniondale, NY - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $1,357,954 loan under the Fannie Mae MAH® product line for the 143-unit complex known as Calvary Crossing in Shreveport, LA.

The 7-year loan amortizes on a 30-year schedule and carries a note rate of 6.17 percent.

The loan was originated by John Kelly, (bottom right photo) Vice President, in Arbor’s full-service Boston, MA lending office.

“This is a 100 percent Project Based Section 8 project that had some additional subsidy layering as well,” said Kelly. “The owner had bought this asset less than a year ago and we were able to restructure his debt to lower his cost of capital and debt service. We were pleased to demonstrate the flexibility of our financing platform for this intricate transaction.”

Contact: Ingrid Principe, iprincipe@arbor.com

Fitch: Specially Serviced U.S. CMBS May Reach $100B by End-2009

NEW YORK, NY-July 30, 2009: With close to $50 billion in U.S. CMBS now in special servicing, that number may approach $100 billion by the year end, representing approximately 12% ($96 billion) of total outstanding CMBS, according to Fitch Ratings in a new report.

"The resources of special servicers will continue to be stretched, which will intensify scrutiny on their preparedness,’ said Managing Director Stephanie Petosa. "Compounding the problem is that many of these loans expected to default are large and complicated loans."

Despite the growth in specially serviced loans, Fitch does not expect the same rate of growth on CMBS delinquency rates.

Fitch is projecting delinquencies on U.S. CMBS to eclipse 5% by the end of 2009. Fitch monitors servicing portfolio volume and is provided year-end and quarterly data from Fitch-rated special servicers.

The data in the report includes information for Fitch and non-Fitch rated CMBS transactions.

Fitch will continue to measure servicer performance through the collection and analysis of management reports from its rated servicers and come to the market with timely commentary as developments unfold.

Contacts:

Stephanie Petosa +1-212-908-0720,
Alyson Weems +1-212-908-0305, New York or
Richard Carlson +1-312-606-2373, Chicago.



Wednesday, July 29, 2009

Thomas D. Wood & Co. Brokers $9.33M Loan in Mount Dora, FL

ORLANDO, Fl, July 29, 2009— Thomas D. Wood and Company, a Strategic Alliance Mortgage LLC member, secured construction financing on July 28, 2009, in the amount of $9,330,000 for Loch Leven Landing in Mount Dora, Florida.

Doug Rozzell (top right photo) financed Loch Leven Landing, a grocery-anchored shopping center, through Thomas D. Wood and Company’s relationship with two community banks.

The construction/mini-permanent loan has an interest rate of Prime + 1.5% floating with a floor of 5.875%. The loan term is 24 months interest-only, converting to a 36-month mini-perm, based on a 25-year amortization.

Loan-to-value is 75% and loan-to-cost is 85%. The 71,540 square-foot retail center will be home to major tenant Publix, and will be built on 15.03 acres at the intersection of US 441 and SR 44 in Mount Dora, Florida.

For further information, please contact:
Doug Rozzell, (407) 937-0470, drozzell@tdwood.com
Jessica Gurtowski, (407) 937-0470, jgurtowski@tdwood.com

Interstate Hotels & Resorts Opens Crowne Plaza Milwaukee Airport

ARLINGTON, VA, July 29, 2009—Interstate Hotels & Resorts (NYSE: IHR), a leading hotel real estate investor and the nation’s largest independent hotel management company, today announced the opening of the 194-room Crowne Plaza Milwaukee Airport, (top left photo) which recently completed a multi-million dollar renovation and brand conversion.

The former Ramada Inn and Conference Center is owned by Amana Hospitality, LLC, and will be managed by Interstate.

This is the third property Interstate has opened this summer, with 13 under-development properties remaining in the company’s management pipeline, most of which are scheduled to open in 2010.

“This is our first contract with this ownership group,” said Leslie Ng, Interstate’s chief investment officer. “Our vast experience and deep relationship with the brand are two factors which made us the manager of choice for this property."

“Milwaukee is the largest city in Wisconsin and a popular Midwest destination and desirable locale for meetings and banquets,” said Thomas F. Hewitt, (middle left photo) chairman and chief executive officer, Interstate.

“The Crowne Plaza Milwaukee Airport underwent a complete overhaul of all interior and exterior spaces to enhance the guest experience. The hotel’s proximity to the airport and its state-of-the-art facilities and amenities attract a wide following of both leisure and business travelers.”

The Crowne Plaza Milwaukee Airport is located at 6401 South 13th St., two-and-a-half miles from General Mitchell International Airport.

For more information about Interstate Hotels & Resorts, visit the company’s Web site: http://www.ihrco.com/.


Contact: Carrie McIntyre, SVP, Treasurer, (703) 387-3320

Arbor Closes $3.95M Fannie Mae DUS® Loan for Colerain Towers in Cincinnati, OH

Uniondale, NY (July 29, 2009) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $3,950,000 loan under the Fannie Mae DUS® Loan product line for the 257-unit complex known as Colerain Towers (top left photo) in Cincinnati, OH.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 5.95 percent.

The loan was originated by John Kelly, Vice President, in Arbor’s full-service Boston, MA lending office. “Arbor was pleased to work with this long-term owner who was looking to refinance their existing debt and make a few capital improvements,” said Kelly.

Contact: Ingrid Principe, P: 516.506.4298, F: 516.542.2555
http://www.arbor.com/

Legacy Partners Reaches 98% Occupancy at West Hollywood, CA Community

LOS ANGELES, CA, July 29, 2009 — Legacy Partners, a leader in residential and commercial real estate for 40 years, has reached 95 percent occupancy at 7950 W. Sunset, (centered photo below) a new “one-of-a-kind” luxury community in West Hollywood.




The success comes less than seven months since the start of the leasing period at this award-winning community which features 183 apartments/townhomes and ground level retail located on the famed Sunset Strip.

Recently, 7950 W. Sunset received a Golden Nugget Award, in the category of Outstanding Mid-rise Community, at the Pacific Coast Builders Conference in San Francisco.

Developed as the most over-the-top, edgiest, stylish environment, this haven features community and in-unit amenities and finishes residents dream about.

“Throughout the leasing process, our property management and development team achieved success by adapting to the constantly changing rental market,” said Scott Morrison, CPM, Senior Vice President for Legacy Partners Residential, Inc. “You will never again see a multifamily development featuring the amenities and finishes found at this community.”
Apartments at 7950 W. Sunset range in price from $2,100 to $4,600 per month. There are 28 studios, 81 one bedrooms and 74 two bedroom homes ranging in size from 590 to 1,238 square feet.

The project team for 7950 W. Sunset includes Legacy Partners Residential, Inc., developer and property management; Legacy Partners Builders, Inc., general contractor; AIG Global Real Estate, financial partner; Guaranty Bank, lender; Thomas P. Cox Architects, Inc., architecture; HRP Landdesign, landscape architecture and design; Fuscoe Engineering, civil engineering; Natural Graphics, graphics and signage; and Faulkner Design Group, interior design.

Contact: David Ebeling, Ebeling Communications, (949) 278-7851, david@ebelingcomm.com

New Faces and New Positions at Marcus & Millichap

MICHAEL ZIMMERMAN NAMED VICE PRESIDENT INVESTMENTS IN FORT LAUDERDALE OFFICE

FORT LAUDERDALE, FL– The board of directors of Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has named Michael Zimmerman (top 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 Gregory Matus, regional manager in the firm’s Fort Lauderdale office.

Zimmerman began his career with Marcus & Millichap in 2004. He specializes in brokering the sale of retail properties.


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 Kirk A. Felici, vice president and regional manager in the firm’s Miami office.

Mekras began his career with Marcus & Millichap in 2003. He specializes in the sale of multi-family properties.

Wohl began his career with Marcus & Millichap in 2001, specializing in multi-family and hospitality properties.

Zylberglait began his career with Marcus & Millichap in 2003, specializing in the sale of office and industrial properties.


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 Gary R. Lucas, regional manager in the firm’s Charlotte Uptown office.

Smith joined Marcus & Millichap in 2002. He specializes in multi-family investment sales.

JOEL DUMES AND STAN FALK ARE NEW VICE PRESIDENT INVESTMENTS IN CINCINNATI OFFICE

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 Joshua Caruana, regional manager in the firm’s Cincinnati office.

Joel Dumes began his career with Marcus & Millichap in 2003, specializing in retail, office and industrial properties. Stan Falk also began his career with Marcus & Millichap in 2003. Falk specializes in retail, office and industrial properties as well.
MICHAEL BARRON AND DAN BURKONS NAMED VICE PRESIDENT INVESTMENTS IN CLEVELAND OFFICE

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 Michael L. Glass, regional manager in the firm’s Cleveland office.

Michael Barron began his career with Marcus & Millichap in 2003 specializing in the sale of multi-housing properties. Dan Burkons also began his career with Marcus & Millichap in 2003. He specializes in multi-family and self-storage properties.


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

Marcus & Millichap Sells $10.35M Reo Apartment Property in San Bernardino, CA

SAN BERNARDINO, CA, July 28, 2009 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has successfully brokered the sale of Sunset Ridge Apartments, (top right photo) a 205,634-square foot, 251-unit special asset apartment property in San Bernardino.

The sales price of $10.35 million represents $41,235 per unit and $50 per square foot.

Alexander Garcia, (middle left photo) senior vice president investments and a senior director of the firm’s National Multi Housing Group (NMHG) in Ontario, and Lane Schwartz, vice president investments and a director of the NMHG in West Los Angeles, represented the seller, one of the largest loan servicing entities in the United States.

Steve Hsu, an associate vice president investments and an associate director of the NMHG in Ontario, represented the buyer.


“Our marketing campaign generated 17 offers,” says Garcia. “The buyer offered all cash and we closed in two weeks on a non-contingent basis.”
Located at 1700 East Date St., Sunset Ridge Apartments is adjacent to the recently completed Foothill Freeway, State Highway 210. Drive-by traffic on Ste. Hwy. 210 exceeds 60,000 cars per day and provides outstanding exposure and easy access to the job markets in Los Angeles, Orange, Riverside and San Bernardino counties.

Sunset Ridge Apartments is served by Omnitrans, the San Bernardino Valley public transit agency, and is within walking distance to shopping, banking and schools. Cal State San Bernardino is just a five-minute drive from the property.

Built in 1973, Sunset Ridge Apartments’ unit mix features 60 one-bedroom/one-bath units, 64 two-bedroom/one-bath apartments, 35 two-bedroom/one-bath townhomes, 64 two-bedroom/two-bath apartments, 20 three-bedroom/two-bath units and eight four-bedroom/two-bath apartments.

This unit mix is not duplicated anywhere else in the submarket.
Unit interiors feature large kitchens with gas ranges, ovens, dishwashers and disposals. All units feature central air conditioning and electricity-generated forced air heating. Each unit is individually metered for electricity.

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

Tuesday, July 28, 2009

Arbor Closes $1.9M Fannie Mae DUS® Loan for Centrum Apartments in Shreveport, LA

Uniondale, NY (July 28, 2009) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $1,900,000 loan under the Fannie Mae DUS® Loan product line to refinance the 84-unit complex known as Centrum Apartments in Shreveport, LA.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 5.92 percent.

The loan was originated by Jay Porterfield, (top right photo) Vice President, in Arbor’s full-service Plano, TX lending office. “Arbor provided financing for the acquisition of this property,” said Porterfield. “This was the second loan that Arbor has funded for this sponsor and we look forward to continuing to grow our financial partnership.”

Contact: Ingrid Principe, iprincipe@arbor.com

Hunter Realty Brokers Six Hotels in Six Weeks

ATLANTA, July 28, 2009—Officials from Hunter Realty, a leading national hotel investment services firm, today announced that the firm brokered the sale of six properties in six weeks.

The six hotels, aggregating 693 rooms, are located in Georgia, Alabama, Pennsylvania and Maryland, and comprise independent hotels as well as such brands as Holiday Inn, Comfort Inn, and Days Inn.

“We are beginning to see more distressed hotels coming to the marketplace, including several of these six completed sales, which were distressed hotels sold for banks,” commented Lee Hunter, (top right photo) CHB, ISHC and COO, Hunter Realty. “We expect this trend to gain momentum over the next 12 to 18 months.”

“The hotel industry has been through five recessions since 1973,” said Bob Hunter, (middle left photo) the firm’s founder and CEO. “We have advised banks, lenders, special servicers and hotel owners in each of these difficult economic climates.

"Based on our experience, these transactions require an in-depth understanding of hotel pricing and financing, as well as the ability to create a win-win situation for both the buyer and seller.”

“Transactions under $10 million began to show signs of loosening up late in the first quarter,” said Teague Hunter, (bottom right photo) CHB, president, Hunter Realty.

“However, deals involving hotels valued above $10 million are still a challenge because financing is not readily available. Buyers today are very cautious and selective and demand good value. In the $10-plus million segment, transactions still remain few and far between.”

“Financing for these six hotels was varied and ranged from all-cash to community banks and SBA loans,” Teague Hunter added. “A prior, strong relationship with the bank was necessary to complete the transactions.”

Teague Hunter noted that the firm increasingly is providing guidance on distressed hotels to lenders and special servicers. “We have conducted more Broker Opinions of Value in the past six months than we have in the past two years.”

Hunter Realty, founded in 1978, has offices in Atlanta, Washington, DC and Minneapolis, MN. Hunter’s exclusive focus is in hotel brokerage and financing.


For more information or to view current listings, please visit http://www.hunterhotels.net/ or contact us at 770-916-0300 in Atlanta, 301-215-7507 in Washington, DC or 952-837-6207 in Minneapolis.

Contact: Melanie Boyer, media, (703) 435-6293, Melanie@dalygray.com

Home Price Declines Continue to Abate, According to the S&P/Case-Shiller Home Price Indices

New York, NY, July 28, 2009 – Data through May 2009, released today by Standard & Poor’s for its S&P/Case-Shiller1 Home Price Indices, the leading measure of U.S. home prices, show that, although still negative, the annual rate of decline of the 10-City and 20-City Composites improved for the fourth consecutive month in 2009.


The chart above depicts the annual returns of the 10-City and 20-City Composite Home Price Indices. The 10-City and 20-City Composites declined 16.8% and 17.1%, respectively, in May compared to the same month last year.

These values are improvements over April’s data, which show annual declines of 18.0% and 18.1%, respectively. After 16 consecutive months of record annual declines, beginning in October 2007 and ending in January 2009, the indices have now shown four consecutive months of improvement in annual returns.
1 Case-Shiller® and Case-Shiller Indexes® are registered trademarks of Fiserv, Inc.


"The pace of descent in home price values appears to be slowing" says David M. Blitzer, (middle right photo) Chairman of the Index Committee at Standard & Poor’s.

"There is a clear inflection point in the year-over-year data, due to four consecutive months of improved rates of return, after the steep decline that began in the fall of 2005. In addition to the 10-City and 20-City Composites, 17 of the 20 metro areas also saw improvement in their annual returns compared to those of April.

"Looking at the monthly data, 13 of the 20 metro areas reported positive returns; and the 10-City and 20-City Composites reported positive returns for the first time since the summer of 2006. To put it in perspective, these are the first time we have seen broad increases in home prices in 34 months.

"This could be an indication that home price declines are finally stabilizing.

"While many indicators are showing signs of life in the U.S. housing market, we should remember that on a year-over-year basis home prices are still down about 17% on average across all metro areas, so we likely do have a way to go before we see sustained home price appreciation." Blitzer added."

The chart above shows the index levels for the 10-City and 20-City Composite Indices. As of May 2009, average home prices across the United States are at similar levels to where they were in the middle of 2003, indicating that the three years of appreciation that occurred from 2003-2006 were all given back in the following three years.

From the peak in the second quarter of 2006, the 10-City Composite is down 33.3% and the 20-City Composite is down 32.3%.

In terms of annual declines, the numbers remain relatively somber with all metro areas and the two composites in negative territory, and 16 out of the 20 metro areas are reporting double digit declines. Las Vegas, Los Angeles, Miami, Phoenix, Seattle and Tampa posted their lowest index levels in May since their respective peaks.

From peak to trough Phoenix and Las Vegas are the worst off, down 54.5% and 53.4%, respectively. More upbeat news is seen in the monthly data; Dallas and Denver have reported three consecutive months of positive returns. Atlanta, Boston, Cleveland, San Francisco and Washington D.C. each reported two consecutive months of positive returns.

Eight of the 13 MSAs reporting positive monthly returns for May were greater than +1.0%.

The table below summarizes the results for May 2009. The S&P/Case-Shiller Home Price Indices are revised for the 24 prior months, based on the receipt of additional source data. More than 22 years of history for these data series is available, and can be accessed in full by going to http://www.homeprice.standardandpoors.com/


For more information contact:
David Blitzer 212 438 3907 david_blitzer@standardandpoors.com
David Guarino 1 212 438 1471 dave_guarino@standardandpoors.com

Monday, July 27, 2009

Interstate Hotels & Resorts Successfully Appeals NYSE Ruling

ARLINGTON, Va., July 27, 2009—Interstate Hotels & Resorts (OTC Bulletin Board: IHRI), a leading hotel real estate investor and the nation’s largest independent hotel management company, today announced that the company has successfully appealed a NYSE ruling in March under which Interstate’s stock was suspended from trading for failing to meet the minimum $15 million market capitalization requirement.



The NYSE has now determined that Interstate’s stock will resume trading on Wednesday, July 29 under its previous symbol IHR.


Interstate’s stock has been trading on the OTC market since March 12, during which time the company’s share price increased 185 percent and the company successfully extended its senior credit facility maturity.

The market capitalization is now well in excess of the $15 million minimum capitalization required for NYSE listing.

“We appreciate the NYSE’s consideration of the unprecedented market conditions and our rapid return to compliance with the minimum market cap requirement,” said Thomas F. Hewitt, Interstate’s chairman and chief executive officer. “We look forward to continuing our long-standing relationship with the NYSE.”

Contacts:
Julie Tullbane, Daly Gray Public Relations, T 703-435-6293F 703-435-6297 mailto:703-435-6297julie@dalygray.com

Carrie McIntyre, SVP, Treasurer, (703) 387-3320

Industrial Market Softens as Average Vacancy Climbs to 10.7%


SANTA ANA, CA, July 27, 2009--Bob Bach, (top right photo) senior vice president and chief economist at Grubb & Ellis Co., reports the industrial market is softening at a record pace. Here are the highlights of his report:

The pace of softening intensified in the second quarter as the vacancy rate soared by 120 basis points to end the quarter at 10.7 percent. This was by far the largest one-quarter gain in the 22-year history of Grubb & Ellis’ survey, easily breaking the record of 70 basis points set in the prior quarter.

Vacancy was lowest in Los Angeles County at 3.1 percent, although the availability rate of 8.3 percent indicates that the vacancy rate will rise as leases expire. Vacancy was highest at 19.7 percent in Kalamazoo, Mich., a region that is working hard to shore up its industrial base.

Net absorption was mired deep in the red for a second consecutive quarter, registering negative 43 million square feet on top of the 40 million square feet vacated in the first quarter.

The silver lining was that only 13 million square feet was completed, the lowest quarterly total in nearly five years.

Users in Northern and Central New Jersey gave back nearly 9 million square feet of space, far ahead of second-place Atlanta where just shy of 6 million square feet was returned. Twelve of the 58 markets tracked by Grubb & Ellis did manage to stay in the black, led by Denver with 813,000 square feet of positive absorption.

Space under construction plunged to 27 million square feet at the end of the second quarter, its lowest level since at least the early 1990s. The Greater Philadelphia region, encompassing Central and Eastern Pennsylvania, led all markets with 4.1 million square feet yet to be completed, followed by second-place Houston with 2.6 million square feet.

Southern California’s Inland Empire, a longtime construction leader where nearly 22 million square feet was delivered in 2007, ended the second quarter with just 1.6 million square feet in the pipeline.

The average asking rental rate for all types of industrial space offered on the market at the end of the quarter was $5.54 per square foot per year triple net, a decline of 2.7 percent from the year-ago quarter.
The average effective rental rate declined by 22 percent over the past four quarters, driven lower by generous periods of free rent and other concessions to tenants.

Forecast

The industrial market is not living up to its reputation for relatively moderate swings in leasing market cycles. The 120 basis-point increase in the vacancy rate during the second quarter was the fastest pace of softening among the four core property types.

The drivers of demand for industrial space – retail sales, logistics, global trade and the construction industry – all have taken big hits in the current recession.

The sharp increase in the second quarter vacancy rate to 10.7 percent raises the possibility that the market may come close to the previous record of 13.7 percent posted in the first quarter of 1992.

Ironically, given the rapid pace of deterioration, the industrial market could be the first to turn around.

China’s efforts to rescue its economy – a $586 billion stimulus package (larger as a share of GDP than the U.S. stimulus) and a robust expansion of credit by the state-controlled banking system – appear to be putting the country on track to achieve its GDP growth target of 8 percent this year.

This is a hopeful sign for U.S. exports and, by extension, demand for light assembly and warehouse/distribution space.

Contact: Janice McDill, Direct: 312.698.6707• Fax: 312.698.5941
janice.mcdill@grubb-ellis.com
http://www.grubb-ellis.com/

Palmer Electric wins contract to upgrade Hunter's Creek Middle School in metro Orlando


WINTER PARK, Fla.,— The special projects division of Palmer Electric Company has secured a $600,000 contract for upgrades to Hunter's Creek Middle School located in south Orange County, Fla.

Under its contract with general contractor Williams Company, Palmer is providing the electrical work for a new heating ventilating and air conditioning system, and is installing cabling to network the existing nine-building campus.

According to Palmer Electric’s Manager of Special Projects Ron Howard, (top right photo) the fast track project is scheduled for completion in 40 days.

Orange County Public Schools is the owner. The general contractor is the Williams Company of Orlando, Fla. SGM Engineering Inc. of Orlando Fla., is providing electrical engineering.

Built in 1994, Hunter's Creek Middle School is located on 25-acres in south Orange County, Fla. The nine-building campus totals 158,711-square-foot of space for administration, cafeteria/auditorium, information/media center and classrooms.
Palmer Electric Company is a provider of electrical contracting for commercial, institutional and residential customers. Additionally, the Company provides service and repairs to utilities, businesses and consumers.

Founded in 1951, the Company is headquartered in Winter Park, Fla., and has residential division offices in Lakeland and Jacksonville, Fla. The Company employs a staff of 350.
For additional information, visit http://www.palmer-electric.com/.

Contact: Elaine Ingra, PR WORKS!, PH: 407 384-1344,
elainei@pr-works.com, www.pr-works.com

A.D. Owens Construction breaks ground on new building in Davenport, FL

ORLANDO, FL, July 27, 2009 — Orlando, Fla.-based A.D. Owens Construction Corp. has secured a nearly $500,000 contract from Crane Rental Corp. for pre-construction, general contracting and interior build out services for a new office building.

According to A.D. Owens Construction President Andy Owens, ground was broken this week on the two-story, 5,000-square-foot building on the site of Crane Rental’s Waverly Barn Road location in Davenport, Fla.

The building shell is concrete block on the first level, hollow core and slab construction on the second level with a stucco fa├žade. Construction is scheduled for completion in November of this year.

Farmer & Company of Orlando, Fla. is the architect of record for this project. Engineering is provided by two Orlando, Fla.-based firms - Gast Engineering Inc. for mechanical, electrical and plumbing engineering and Advanced Structural Engineering Inc. for structural engineering.
A.D. Owens Construction Corp.

A.D. Owens Construction Corp. was founded by construction industry executive Andrew Owens in 2007.

Headquartered in Orlando, Fla., the Company provides construction management, general contracting and design build services for new construction, renovations and tenant interiors for commercial projects throughout Central Florida.


Please visit http://www.adowens.com/ for additional information.

Since, 1960, Orlando-based Crane Rental has provided services to contractors for heavy civil construction, commercial, chemical, and industrial projects throughout Florida, the southeast, New England, western states and the Caribbean. Headquartered in Orlando, Fla., the Company has an office in Davenport, Fla.

Contact: Elaine Ingra, PR WORKS!, PH: 407 384-1344,
elainei@pr-works.com, www.pr-works.com

Concordia Condominiums at Cape Coral, FL reports 29 Sales over past 30 Days

CAPE CORAL, Fla. - Concordia, (top left photo) a master-planned community located at the intersection of Del Prado Blvd. and Kismet Parkway in Cape Coral, reports it sold 29 brand new condominiums priced from the $70s over the past 30 days in a “Bank Blow-out” sale.

Andy Garrett, general manager at Concordia, said the brand new condominiums are being sold at one-third the original prices through Concordia’s business platform – the homebuyer purchases directly from the bank. “Every homebuyer is guaranteed the low prices,” said Garrett.

Only 50 one, two and three-bedroom condominiums remain for sale in the first phase of the community. Development of a second phase with 170 condominiums is substantially complete and is planned to be released for sale sometime in August with planned price increases.

New condominiums at Concordia range in size from 1,182 square feet of living space to 1,642 square feet, Garrett said.

Concordia will ultimately include 340 tropically landscaped condominiums with garages, surrounding a five acre lake, with a Mediterranean-styled community clubhouse that features a tropical club room furnished for group and individual gatherings, state-of-the-art fitness center, and a large swimming pool and spa overlooking the lake.

For more information, contact:
Andy Garrett, General Manager, Concordia Cape Coral, 239-214-2323 Agarrett@concordiasales.com

Steve Sirang, Chief Executive Officer, Concord Wilshire Companies 310-471-2400 ssirang@concordwilshire.com

Larry Vershel or Beth Payan, Larry Vershel Communications 407-644-4142, lvershelco@aol.com