Thursday, October 29, 2009

Grubb & Ellis Participates in 3 Lease Deals Totaling 351,000 SF

Firm's  Fairfield Office Represents De’Longhi in 200,000-SF Lease Renewal in Wood-Ridge, NJ

FAIRFIELD, N.J.– Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, represented De’Longhi, a leader in Italian-designed kitchen and home comfort products, in the renewal of 200,000 square feet of warehouse/distribution space at 24 and 30 Passaic St. in Wood-Ridge.

Frank Lopriore, senior vice president, Tenant Advisory Group, and John Donnelly, vice president, Global Logistics Group, facilitated the transaction on behalf of De’Longhi. The landlord, Wood-Ridge Industrial Associates, was represented by Team Resources.

“We were able to assist De’Longhi in achieving its corporate objectives, which were to remain in its current location and find cost saving solutions,” said Donnelly.

Founded in 1902, De'Longhi is the leader in innovative designed-in-Italy kitchen and home comfort products for consumers demanding both high style and long-lasting performance. For additional information about De'Longhi, please visit

Contact: Erin Mays, Phone: 312.698.6735, Email:

Evangelical Covenant Church Buys 50,000-SF Office Building in Chicago

CHICAGO, IL– Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, has  facilitated the sale of 8303 Higgins Road to Evangelical Covenant Church. The purchase price for the 50,000-square-foot office building was not disclosed.

Craig Cassell, vice president and Dirk Riekse, senior vice president facilitated the transaction on behalf of Evangelical Covenant Church. Jason Streepy and Jim Ward, both senior vice presidents, represented the seller, Akton Realty.

“The property provides a centralized location with a Chicago address, great visibility and access to I-90,” said Cassell. “It was a good opportunity for Evangelical Covenant Church to purchase in this marketplace.”

Covenant is expected to take occupancy of the building in the first quarter of 2010.

Contact: Erin Mays, Phone: 312.698.6735, Email:

 Intercontinental Real Estate Corp. Signs  101,436 SF Lease in Tucson, AZ

TUCSON, AZ – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, represented Intercontinental Real Estate Corporation in its lease of a 101,436-square-foot industrial building, located at 2929 E. Corona, to APAC Customer Services Inc. Financial terms of the 10-year lease were not disclosed.

Bill DiVito, senior vice president, and Howard Kong, CCIM, vice president, managing broker, represented Intercontinental Real Estate in the transaction.

APAC, which immediately took occupancy of 2929 E. Corona, is a leading provider of customer interaction solutions for market leaders in retail and business services, communications, healthcare, insurance and financial services, media and entertainment, and travel industries. The company plans to use the space as a call center.

Contact: Julia McCartney, Phone: 714.975.2230, Email:

HFF closes sale of Houston-area industrial complex on behalf of national REIT

HOUSTON, TX – The Houston office of HFF (Holliday Fenoglio Fowler, L.P.)  has closed the sale of Central Park Northwest, a 283,182-square-foot industrial flex service center in Houston, Texas.

HFF senior managing director Rusty Tamlyn (top right photo)  led the investment sales team on behalf of the seller, Weingarten Realty Investors. CC Realty Advisors, a national investor of retail, industrial and office properties, purchased Central Park Northwest for an undisclosed amount. The transaction was completed in 86 days from contract to close.

Central Park Northwest contains eight single-story buildings that are 81% leased. The property is situated on more than 18 acres at 2200-2501 Central Parkway and 4930 Dacoma near the intersection of Interstate 610 and US Highway 290 in northwest Houston.


Rusty Tamlyn, HFF Senior Managing Director, (713) 852-3500,
Kristen M. Murphy, HFF Associate Director, Marketing. (713) 852-3500,

Hunter Hotels and Matrix to Provide Unique Advisory Services to Lodging Companies with Distressed Assets

ATLANTA, GA./RICHMOND, Va. - October 28, 2009 - Matrix Capital Markets Group, Inc. (“Matrix”) and Hunter Hotels (“Hunter”) announced today that they will partner to provide advisory solutions to lodging companies with financially distressed hotel properties.

The broad array of services provided by the partnership will include the restructuring of debt, corporate recapitalization and/or the sale of some or all of the assets.

Matrix and Hunter have successfully advised on the sale of hotels for over 30 years, as well as numerous transactions involving financially distressed companies operating in or outside of bankruptcy.

 Having managed these distressed asset sales, many under Chapter 11 of the U.S. Bankruptcy Code, and with unmatched hotel industry expertise and contacts, Hunter and Matrix will be able to advise operators on the complex issues they face as they seek to de-leverage their businesses.

Tom Kelso, (bottom  left photo) a Managing Director and Principal at Matrix, said “We are excited about the advisory services that we will be able to offer through our partnership with Hunter Hotels. Our combined experiences and skill sets will provide a unique solution to help hotel owners preserve or realize as much value for their properties as possible.”

Hunter Hotels’ President Teague Hunter (top right photo)  expressed great enthusiasm for the joint venture.

"The continued stress in our industry has created a need for financial restructuring at many different companies. Matrix's long history of advising firms through difficult times, and our long history of advising hotel investors, together will give our clients access to the resources they need to thrive in the current environment."

Contact: Julie Tullbane, Daly Gray Public Relations, T 703-435-6293, F 703-435-6297, 
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Marcus & Millichap Capital Corp. Arranges $11M Loan in Riverside, CA

RIVERSIDE, CA– Marcus & Millichap Capital Corporation (MMCC) has arranged an $11 million loan for the refinancing of a 192-unit apartment building in Riverside.

Michael Derk,  (top right photo) vice president capital markets in the firm’s Long Beach office, arranged the financing for the building.

“We were able to execute the closing of the loan with a $4 million cash-out, which is nearly impossible in a declining market, and was subject to the lender’s review,” says Derk.

 “The property had just undergone a significant rehab that negatively impacted the historical occupancy; therefore, we had to emphasize the strength of the borrower’s résumé and financial stability.”

The loan is a 10-year fixed rate loan with a 30-year amortization, a loan-to-value of 62 percent and a 5.99 percent interest rate.

Press Contact: Stacey Corso, Marcus & Millichap Capital Corporation, (925) 953-1716

$52M Apartment Complex Sold in Petaluma, CA by Marcus & Millichap

PETALUMA, CA – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has sold the 492-unit Lakeville Resort  (top left photo) in Petaluma for $52 million. The sales price represents $105,691 per unit.

Stanford Jones, an executive vice president investments and senior director of Marcus & Millichap’s National Multi Housing Group in Palo Alto, and associate vice presidents investments Phil Saglimbeni and Sal Saglimbeni, also in the Palo Alto office, represented the seller, Equity Residential. Marcus & Millichap also represented the buyer, Abacus Capital Group.

“Pricing has been redefined over the past nine months to levels that are significantly below their peaks. Supported by compelling agency financing, the result is a rare opportunity to acquire assets in supply constrained markets with positive leverage,” says Jones.

“The new owner of Lakeville Resort has acquired a value-added, urban infill multifamily complex with the potential to generate a healthy income stream on a long-term basis,” says Phil Saglimbeni.

“In spite of the challenging economic environment, investors remain interested in well-located apartment assets in locations markets supported by strong fundamentals,” adds Phil Saglimbeni. “Institutional sales activity increased in the second and third quarters of 2009, a trend we expect to continue moving into 2010.”

The 461,798-square foot Lakeview Resort apartment complex at 1 Lakeview Circle is located in the southern portion of Sonoma County’s world-renowned wine country. The property is near U.S. Highway 101 and State Route 116, which provide easy access to employment centers in San Francisco, the North Bay and East Bay.

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

Marcus & Millichap Sells $10M Distressed Health Care Facility in Green Springs, OH

GREEN SPRINGS, OH – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of St. Francis Health Care Centre, (top left photo) a 150-licensed bed nursing home and 36-licensed bed long-term acute-care hospital (LTACH), in Green Springs.

The sales price of $10 million represents $53,763 per bed.

Jacob Gehl, a vice president investments and member of the firm’s National Seniors Housing Group (NSHG) in the firm’s Chicago Downtown office, and Mark Myers (bottom left photo), a senior vice president investments and senior director of the NSHG in Chicago, represented the seller, a church-based non-profit religious group. The buyer is a local healthcare provider.

Michael Glass (middle  right photo) , of the firm’s Cleveland office, also provided representation.

“The seller used approximately $16 million in bonds to build the LTACH and to renovate the nursing home a few years ago,” says Gehl.

“The property had difficulty servicing the bonds, entered into default with the lender, a large national bank, and had to be liquidated. While we are pleased with the final sales price of nearly $54,000 per bed, it is unfortunate that the non-profit’s approximately 100 years of mission work here must end,” adds Gehl.

“Fortunately, we were able to locate a buyer who owns a facility in the area and can provide care to a wide variety of residents,” comments Myers.

The 186,000-square foot property is located on approximately 35 acres at 401 North Broadway Ave.

The St. Francis Health Care Centre includes a park, pond, courtyard, chapel, greenhouse, multi-purpose gym, therapeutic pool with adjustable floor, large therapy spaces, a full basketball court and three dining rooms. The buildings feature brick exteriors, carriage porches and tasteful interior décor with high-end finishes.

Green Springs is located near Sandusky and Port Clinton, Ohio, two vacation destinations located on the banks of Lake Erie. The property is approximately 40 miles from Toledo. Green Springs is home to Mineral Springs, the largest natural sulfur spring in the world. The town was named for the color of the spring’s water.

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

Marcus & Millichap Names David Luther Regional Manager of Fort Worth, TX Office

FORT WORTH, TX – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has named David Luther (top right photo) regional manager of the firm’s Fort Worth office, according to Harvey E. Green, president and chief executive officer.

“David’s sales management expertise and extensive commercial real estate brokerage skills make him a valuable resource to our agents and clients in Fort Worth and throughout Texas,” says Green.

Luther has been the sales manager of Marcus & Millichap’s Fort Lauderdale office since March 2009. He joined the firm in 2001, specializing in multifamily investment property sales in the Fort Lauderdale office.

 He was promoted to associate director of the firm’s National Multi Housing Group and in 2007 achieved senior investment associate status. In January 2008, Luther was promoted to vice president investments.

 He is a five-time winner of the firm’s National Achievement Award and has earned six sales recognition awards. Prior to commencing his sales career, Luther was Marcus & Millichap’s research manager for South Florida.

Luther graduated from Southern Methodist University with degrees in mathematics and real estate finance.

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

Arbor Closes $3,784,000 FHA 223(f) Loan for Crown Gardens in Houston, TX

Uniondale, NY (October 28, 2009) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $3,784,000 loan under the FHA 223(f) program to refinance the 164-unit complex known as Crown Gardens in Houston, TX.

The 35-year loan amortizes on a 35-year schedule and carries a note rate of 5.50 percent.

The loan was originated by Jay Porterfield(top right photo) Vice President, in Arbor’s full-service Plano, TX lending office.

“Arbor refinanced this acquisition loan through our HUD MAP license using the HUD 223(f) program,” said Porterfield. “Through this program, Arbor was able to provide an attractive loan amount at very competitive interest rate.”

Contact: Ingrid Principe, P: 516.506.4298, F: 516.542.2555,
Follow us on Twitter @ arbor1

Thomas D. Wood Brokers $2M Loan for Connecticut Apartments

 MIAMI, FL— Thomas D. Wood and Company, a Strategic Alliance Mortgage LLC member, secured financing on October 13, 2009, in the amount of $2,080,000 for the Baron Apartments in Southington, Connecticut.

Steve Wood, (top right photo) Company Chief Operating Officer, and Alan R. Cohen (bottom left photo)  Company Vice President, financed the Baron Apartments through Thomas D. Wood and Company’s relationship with a national multi-family lender.

The loan term is 10 years, based on a 30-year amortization and a loan-to-value of 65%. The interest rate is 5.61% The 54-unit apartment complex was built in 1968 and 1969, and is located at 191 Queen Street, Southington, Connecticut.

For further information, please contact:

Steve Wood (305) 447-7820
Alan R. Cohen (305) 447-7820
Jessica Kinnee (407) 937-0470

Cushman & Wakefield Negotiates Sale/Leaseback of Verizon-Owned Building in Temple Terrace, FL

Tampa, FL – Cushman & Wakefield negotiated the Sale/Leaseback of a 57,886 sf two story office building (top right photo) in Temple Terrace, Florida for $2.6 million.

The asset located at 10402 N. 56th Street, was owned by Verizon and will be occupied by them for 15 months from the date of sale.

Associate Director of C&W Florida’s Capital Markets Group, Rick Brugge was quoted as saying,

 “In a challenging environment we were able to structure a transaction that was accretive to both the seller and

Executive Director Mike Davis (Capital Markets) (bottom left photo); Associate Director Rick Brugge, CCIM (Capital Markets); Executive Director Andy May; Director, Office Brokerage Barry Oaks, CCIM and Bill Reeves Associate Director of C&W negotiated the sale on behalf of the seller, Verizon.

The buyer, Franklin Property & Development Group, was represented by Director Rian Smith, Industrial Brokerage of C&W.

Contact:  Debbie P’Simer, 813-204-5333. debbie.p’

Grubb & Ellis Commercial Florida Appoints Charles Alloway a Vice President in Retail Group

TAMPA, Fla. --- Grubb & Ellis Commercial Florida, associated with 130 Grubb & Ellis offices worldwide, has appointed Charles Alloway (top right photo)  a vice president in the Retail Services Group at the firm’s Tampa office.

Jeff Sweeney, SIOR, president of Grubb & Ellis Commercial Florida, with offices in Tampa, Orlando and Melbourne, said Alloway has more than 20 years of experience in commercial real estate in the Tampa Bay market, including 18 years with the Development Team at McDonald’s Corporation and three years in brokerage closing over 60 million in transactions as acquisition agent for Fifth Third Bank, McDonald’s, Panda Express Restaurants and others.

Most recently, Alloway served as regional director of real estate in the Tampa office of Armstrong Development Properties, Inc. a Pennsylvania based development company known for their work with CVS Pharmacy and Publix Supermarkets.

“Charlie is one of the most experienced commercial real estate executives in the Tampa Bay region and an excellent addition to our Retail Services team,” Sweeney said.

Alloway will partner with Retail Services Group vice president Michelle Seifert, (bottom left photo)  and will focus on both landlord and tenant representation, Sweeney said.

Jeffrey Sweeney, President,  407-481-5387

Larry Vershel Communication, s 407-644-4142

Apartment Realty Advisors (ARA) Arranges Sale at Foreclosure Auction

Tampa, FL — Atlanta-headquartered Apartment Realty Advisors (ARA), the largest privately held, full-service investment advisory brokerage firm in the nation focusing exclusively on the multihousing industry, represented the seller in the foreclosure sale of Spring Glade, a 78-unit multifamily community located in Tampa, FL.

The seller was represented by ARA’s Tampa, FL-based Patrick Dufour and ARA’s Orlando, FL-based Kevin Judd (top right photo)

“Through our extensive buyer relationships, we were able to bring multiple qualified, all-cash buyers to the foreclosure auction, “said Patrick Dufour, of ARA’s Tampa office.š “Our aggressive marketing campaign resulted in a successful foreclosure sale at a purchase price that exceeded the lender’s unpaid loan balance.”

Elster/Rocatica purchased the property at foreclosure auction for $915,000, $11,731 per unit, $21.47 per square foot. The private buyer purchased the property all-cash and funded the acquisition solely with internal equity.

The buyer has an established presence in the Florida market and is intimately familiar with the product type and the local market.

Dufour also noted that the property, formerly a rent-restricted affordable housing community, immediately reverted to market rate rents at the close of the foreclosure sale, providing additional upside for the new buyer. The property, located at 2232 North Spring Glade Circle in Tampa, FL, was 50% occupied at the time of the sale.

“We were able to facilitate physical inspections prior to the auction, “said Kevin Judd, of ARA’s Orlando office, who also brokered the deal.š “This allowed buyers to complete up-front due diligence prior to the auction.” The lender disclosed their maximum bid price prior to the auction to set a floor for pricing expectations.

ARA also recently closed on the sale of Lofton Place, a 280 unit multifamily property in Northwest Tampa.

Contact: Marti Zenor, 561.988.8800 x112 Direct  954.205.5207 Cell  561.988.8810 Fax

Jennifer Marchetti to Head Wyndham Hotels and Resorts Marketing

PARSIPPANY, N.J.– Wyndham Hotels and Resorts today announced the appointment of Jennifer Marchetti (top right photo)  as vice president of marketing and innovation.

In her new role, Marchetti will be responsible for leading marketing and innovation efforts for the Wyndham Hotels and Resorts® brand and its affiliated Wingate by Wyndham® and Hawthorn Suites by Wyndham® brands.

She will oversee all marketing plans, agency relationships and media buys while playing an integral role in the development and execution of brand strategy, innovation and property support programs.

“Jennifer’s expertise in marketing, particularly in the loyalty arena, will be a great asset as we look to further develop our partnerships across all Wyndham brands and create consumer positioning that is both distinctive and compelling,” said Jeff Wagoner, (bottom left photo) Wyndham Hotels and Resorts president. “She is a dedicated professional whose rich history with the company and its brands has given her a solid understanding of the industry and its many nuances.”

An eight-year employee of Wyndham Hotel Group, Marchetti previously served in various director-level marketing and strategy roles, most recently as senior director of strategy, loyalty and direct marketing.

In that role, she helped oversee the strategic direction and development of the company’s Wyndham Rewards® loyalty program, manage the program’s competitive positioning and lead the program’s expansion across sister company Wyndham Vacation Ownership.

Earlier in her career, Marchetti served as director of corporate communications for Trilogy Inc., a privately held configuration software company in Austin, Texas, where she oversaw the development and execution of the company’s communications strategy, including marketing positioning, customer marketing, product launches and analyst and media relations.

CONTACT:  Evy Apostolatos, 973-753-6590,

Tuesday, October 27, 2009

HFF closes sale of nine-property Texas self storage portfolio

HOUSTON, TX – The Houston office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has closed the sale of a nine-property self storage portfolio located in Austin, Dallas, Houston and San Antonio, Texas.

HFF senior managing director Aaron Swerdlin (top right photo) and managing director Doug McCarron (middle left photo)  led the investment sales team exclusively on behalf of the seller.

The portfolio was listed for $71 million. HSRE (Harrison Street Real Estate Capital, LLC), of Chicago, purchased the portfolio for an undisclosed price.

HSRE’s company model is to acquire as well as to provide equity capital to developers and operators in the areas of real estate related to education, healthcare and self storage.

“We were pleased to acquire such a strong performing portfolio of stores with the benefit of excellent assumed CMBS debt,” said Geoffrey Regnery, vice president at HSRE.

The properties, which were built between 1994 and 1998, contain more than 5,300 units and total 551,609 square feet. There are five properties in Houston, two properties in Dallas, one property in Austin and one property in San Antonio.

“The resiliency of the self storage product type in a recessionary environment certainly was apparent by the multiple offers we had to work with on this transaction.

"Augmented by the fact that all of the assets were in Texas, one of the best performing states in the country, this portfolio was extremely attractive to buyers with capital to invest in self storage.

" We continue to see the product type outperform the broader market, especially as the capital markets and the US economy stabilizes,” said Swerdlin.


Aaron A. Swerdlin, HFF Senior Managing Director, (713) 852-3500,
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500,

HFF closes sale of and arranges financing for two Washington, D.C. multi-housing communities

WASHINGTON, D.C. – The Washington, D.C. office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has closed the sale of and arranged acquisition financing for 5100 Connecticut Avenue Northwest and 2620 16th Street Northwest, multi-housing communities totaling 92 units in Washington, D.C.

Directors Alan Davis (top right photo) and Dave Nachison  (middle left photo) led the HFF investment sales team on behalf of a court appointed receiver. Gelman Management Company purchased 5100 Connecticut Avenue Northwest and 2620 16th Street Northwest for a combined $8.35 million.

Gelman Management Company retained HFF director Dan McIntyre to secure $5.804 million of acquisition financing through Fannie Mae’s DUS Loan Program on their behalf.

5100 Connecticut Avenue Northwest was built in 1962 and is located along Connecticut Avenue in the Friendship Heights/Chevy Chase area of northwest Washington, D.C. The property has 42 studio and one-bedroom units averaging 350 square feet each as well as a 680-square-foot commercial suite occupied by a dentist. On-site amenities include community laundry and 14 parking spaces.

2620 16th Street Northwest was built in 1965 and is situated in the North Dupont/Adams Morgan area of northwest Washington, D.C. The nine-story property has 49 studio and one-bedroom units averaging 375 square feet each, on-site laundry and 16 parking spaces.

“Both of these properties are located in well established neighborhoods of Washington, D.C. that continue to see strong multi-housing demand, low vacancy levels and tremendous fundamentals,” said Davis.

“Opportunities to purchase high-quality, vintage high-rise buildings like these do not present themselves in D.C. very often and with maximum rent increases in rent-controlled buildings capped at 6.8% this year, investors are seizing the opportunities and demand is very strong,” added Nachison.


Alan M. Davis, HFF Director, (202) 533-2508,
David R. Nachison, HFF Director (202) 533-2536,
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500,

HFF closes $14.6M sale of FedEx facility in Memphis, TN

DALLAS, TX – The Dallas office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has closed the sale of the FedEx Supply Chain Services Facility, (above centered photo)  a 450,000-square-foot distribution warehouse in Memphis, Tennessee.

HFF director Jud Clements, (top right photo) executive managing director Jody Thornton (middle left photo) and associate director Robby Rieke (bottom right photo) led the investment sales team exclusively on behalf of the seller, Harbin Group, Ltd.

In addition, Jim Mercer with CB Richard Ellis in Memphis, who originally negotiated the lease with FedEx at the property, also assisted on the sales transaction. Monmouth Real Estate Investment Corporation purchased the property for $14.6 million free and clear of debt.

The FedEx Supply Chain Services Facility is located at 5025 Tuggle Road and is situated at the intersection of U.S. Highway 78 and Tuggle Road, approximately three miles southeast of the Memphis International Airport. Originally built in 1994, the property is fully leased to FedEx for their Supply Chain Services division, a third party logistics provider that stores, secures and distributes critical inventory for its corporate clients.

Monmouth Real Estate Investment Corporation (Nasdaq: MNRTA), which was organized in 1968, is a publicly-owned real estate investment trust specializing in net-leased industrial properties. The company's portfolio now consists of 59 industrial properties and one shopping center located in 25 states. In addition, the company owns a portfolio of REIT securities.


Judson Clements, HFF Director, (214) 265-0880,,
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500,

Monday, October 26, 2009

Grubb & Ellis Presents Industrial Market Snapshot Third Quarter 2009

CHICAGO, IL-The following summary is designed to provide a brief overview of the Chicago area industrial market during the third quarter of 2009.

 For more information or to speak with one of the company’s local market experts, please contact Erin Mays at 312.698.6735 or via email at


· The region’s industrial vacancy stood at 11.8 percent at the end of third quarter of 2009, up from 11.6 percent in the second quarter. The market experienced negative absorption of 773,800 square feet.

· Demand for R&D/Flex space proved to be a bright spot, with the region posting more than 308,000 square feet of positive net absorption. Occupancy in the General Industrial and Warehouse/Distribution sectors contracted by approximately 366,000 square feet and 500,000 square feet, respectively.


The Chicago industrial vacancy rate increased for the ninth straight quarter to the highest rate the Chicagoland area has witnessed in over a decade. Company consolidations, downsizing and businesses focused on mere survival have all contributed to the rise in vacant space and downward pressure on asking rates. For the remainder of the year, the only construction the region is likely to see is build-to-suit projects. Landlords will remain flexible and offer increased incentives, while on the investment side, investors will remain cautious as the 2012 due date for more than $150 billion of CMBS and regular bank loans approaches.

(300 N. Riverside Plaza, middle left photo)


· The Central Will submarket ended the third quarter with a vacancy rate of 25.1 percent, unchanged from the second quarter.

· The submarket posted slight positive absorption of 16,500 square feet, bringing the total positive net absorption to more than 2.6 million square feet year to date.

· The fact that no development is currently under construction in the submarket is a sign that the construction pipeline has tapered off after more than 5.8 million square feet of new speculative construction, most of it logistics space, has been delivered to the submarket since June 2008.


As the region with the most positive absorption year-to-date, the Central Will submarket has been benefiting from the logistics sector; however, an excessive amount of recently completed new construction projects without adequate tenant demand has put downward pressure on rental rates and has sent the vacancy rate to the highest of all Chicago submarkets. Researchers expect rates to stay steady or decrease in the coming quarters, while new construction starts are unlikely.


· Industrial vacancy in the South City submarket rose 40 basis points to 7.7 percent in the third quarter 2009, from the previous quarter in part due to 481,000 square feet of negative absorption.

· Preferred Freezer Services’ 175,000-square-foot build-to-suit is currently the only new development underway.


Effects of the national recession have sent the South City’s vacancy rate to its highest point in over three years; however, the submarket’s great location and access to numerous rail and highway options has prompted significant activity from manufacturers and distributors, particularly food users. As a result, researchers predict that the South City submarket will remain stable.


· Vacancy dropped 20 basis points to 11.7 percent in the O’Hare industrial submarket as the area experienced positive net absorption of 144,000 square feet.


Decreased activity at O’Hare International Airport has led the submarket to suffer more than 1.6 million square feet of negative absorption year-to-date; however, the O’Hare industrial submarket earned a reprieve in the third quarter due to several transactions in the 20,000- to 40,000-square-foot range. Since the O’Hare submarket remains overbuilt and demand is not expected to pick back up until mid-2010, rental rates will continue to decline and landlords will continue to entice tenants with generous incentives.

To access the full Chicago Industrial Metro Trends report and other Grubb & Ellis research publications, visit

HFF closes $78.5M loan sale for AEGON USA Realty Advisors

CHICAGO, IL –The Loan Sales group of HFF (Holliday Fenoglio Fowler, L.P.) announced today it consummated the sale of 19 well-performing first mortgage commercial loans on behalf of AEGON USA Realty Advisors.

HFF senior managing director Stuart Salins represented the seller in the transaction.

The 19 loans range in size from approximately $2 million to $7.5 million, with an aggregate face amount of approximately $78.5 million.

Approximately 40% of the loans have a coupon of less than 5.5%. The loans are secured by retail centers, industrial/warehouse and office buildings, a mobile home park and multi-housing properties located in 11 states.

The loans were sold to one institutional investor at pricing that ranged between a modest discount to a slight premium over par.

“The loans are well-underwritten and well-performing and the sale was motivated by a desire of the seller to slightly rebalance its portfolio,” said Salins.


Stuart M. Salins, HFF Senior Managing Director; (312) 528-3678,
Kristen M. Murphy, HFF Associate Director, Marketing; (713) 852-3500,

Grubb & Ellis Announces $90 Million Preferred Equity Transaction

SANTA ANA, CA– Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm,  has entered into definitive agreements with qualified institutional buyers and accredited investors to effect the sale of 900,000 shares of a new issuance of a 12 percent cumulative participating perpetual convertible preferred stock for $90 million in gross proceeds.

 The company has also granted the initial purchaser and placement agent a 45-day option to purchase up to an additional 100,000 shares of preferred stock.

The closing of the transaction is expected to occur on or about Nov. 6, 2009, and the company intends to use the offering proceeds to repay in full its credit facility at the agreed reduced principal amount equal to approximately 65 percent of the principal amount outstanding under such facility.

The balance of the offering proceeds will be used for general working capital purposes and transaction costs. As part of the preferred stock offering, the $5 million subordinated loan provided on Oct. 2, 2009 to the company by an affiliate of its largest stockholder will be converted into the preferred stock at the offering price and accrued interest will be paid with respect to the subordinated loan.

“This is a transformational event for Grubb & Ellis. Upon closing, Grubb & Ellis will be one of the stronger capitalized companies in the real estate services industry,” said C. Michael Kojaian, (top right photo) the company’s chairman and largest stockholder. “We are extremely pleased with the demand for the security and the quality of the institutional investors attracted to the company.”

Additional terms and information with respect to the transaction will be included in a Current Report on Form 8-K and a preliminary proxy statement to be filed with the Securities and Exchange Commission by the company and a final proxy statement to be filed with the SEC and mailed to stockholders.

Contact: Janice McDill, Phone: 312.698.6707, Email:

CB Richard Ellis Realty Trust and Duke Realty Corp.Joint Venture Buys Orlando Area Office Building

PRINCETON, N.J.,  Oct. 26, 2009 – CB Richard Ellis Realty Trust and Duke Realty Corporation (NYSE: DRE) (Duke Realty) have completed the acquisition of Northpoint III, (aerial photo top left) a 108,499 sf Class A office building in the Orlando area fully leased to Florida Power Corporation through 2021, under the joint venture agreement announced between CB Richard Ellis Realty Trust and Duke Realty in 2008.

Northpoint III is well-located at 3300 Exchange Place in the master-planned Northpoint Office Park in the Lake Mary submarket of Orlando. The property was originally developed in 2001 by Duke Realty.

The four-story building has a state-of-the-art high-tech infrastructure, high-quality interior finishes and a lobby with marble flooring.

Additionally, the site offers a jogging trail around the office park’s lake. Florida Power has occupied Northpoint III since its completion and recently extended its lease for an additional 12 years.

Lake Mary is approximately 16 miles north of downtown Orlando off I-4 with access via Lake Mary Boulevard. Lake Mary has become the premier suburban location for expanding tenants looking for more efficient and cost-effective space. A recent notable feature for the area has been the completion of the Central Florida Greenway, which offers direct highway access from Lake Mary to the Orlando International Airport.

“CB Richard Ellis Realty Trust recently acquired two other well-located Class A office buildings in the Orlando market. Each property offers diversified, credit tenancies on long-term leases in different submarkets, including one other joint venture acquisition with Duke Realty,” said Chuck Hessel, director of investments for CB Richard Ellis Realty Trust “This newest acquisition is an excellent fit with the REIT’s portfolio and other area investments, and we are pleased to continue expanding our portfolio with Duke Realty.”

This joint venture between CB Richard Ellis Realty Trust and Duke Realty Corporation plans to acquire up to $800 million of newly developed build-to-suit projects over a three-year period. The CB Richard Ellis Realty Trust team worked with Jeffrey Torto, Gary Jaye and the acquisitions team from CBRE Investors to acquire this property.

Contact:  Pam Barnett, Corporate Communications Director, CB Richard Ellis Investors, 213.683.4368,

Friday, October 23, 2009

Wyndham Hotel Group Appoints Hong Kong-based Global Sales Executive

PARSIPPANY, N.J. – Wyndham Hotel Group, the world’s largest hotel company with more than 7,000 hotels and 11 brands, today announced the appointment of Kitty Huang  (top right photo) as vice president of global sales for the Asia Pacific (APAC) region.

Based in Hong Kong, Huang will be responsible for leading and developing the company’s APAC sales team, executing against Wyndham Hotel Group’s sales strategy and maximizing participation of franchisees in global sales programs.

Prior to joining Wyndham Hotel Group, Huang spent more than a decade in senior corporate and property level sales and marketing roles with InterContinental Hotels Group. Most recently she was area director of sales and marketing, providing guidance to property level sales and marketing teams while driving increased hotel performance and delivering against regional sales objectives.

“Kitty has a successful track record of developing and executing strong sales programs that stimulate demand and increase revenue growth,” said Ross Hosking, Wyndham Hotel Group executive vice president of global sales. “She is well-known and respected and exactly the kind of representative we need as we continue to expand our efforts throughout the APAC region.”

CONTACT: Christine Da Silva, 973-753-6590,

NAI Realvest negotiates expansion and renewal lease totaling 12,310 SF of industrial space in Orlando

ORLANDO, Fla. --- NAI Realvest recently negotiated a renewal and expansion lease totaling 12,310 square feet of industrial space at the industrial facility located at 8350 Parkline Blvd. in Orlando.

Michael Heidrich, (top left photo) a principal in the firm, negotiated the agreement on behalf of the landlord, Parkline Properties, LLC of Columbus, Ohio.

The tenant, Orlando-based National Certified Testing Laboratories, Inc. currently occupying units 12 and 13 with 8,150 square feet expanded into adjacent unit 11 with an additional 4,160 square feet and extended its entire lease to 63 months.

William Bradford of Southern Commercial Real Estate Advisors represented the tenant.

For more information, contact:
Michael Heidrich, Principal, NAI Realvest 407-875-9989
Patrick Mahoney, President, NAI Realvest 407-875-9989
Beth Payan, Larry Vershel Communications, 407-644-4142

Al Sarabasa Jr. Named to Central Florida Zoo Board of Directors

LONGWOOD, FL—Al Sarabasa, Jr. (top right photo) has been named to the board of directors of the Central Florida Zoo.

 Sarabasa is founder and president/CEO of D & A Building Services Inc., a maintenance company headquartered in Longwood, Fla. He is a past president of the Latin Chamber of Commerce, past board member of the Hispanic Chamber of Commerce and past board member of the Building Owners & Managers Association.

Sarabasa has a Bachelor of Arts in Business Administration from the University of Central Florida.

Contact: Elaine Ingra, PR WORKS!, PH: 407 384-1344,,

Steve Conenna promoted at Palmer Electric Co.

WINTER PARK, FL— Palmer Electric Co. is pleased to announce the promotion of Steve Conenna (top right photo)  to Operations Manager Commercial Division.

Conenna has been employed by the Winter Park-based electrical services company since 2004 as a senior project manager.

In his new management roll, Conenna is responsible for overseeing all project managers and superintendents, pre-fabrication and production procedures including pre-construction planning. He has 15 years of experience in commercial construction.

Conenna has an Associate of Science in Drafting and Design from Valencia Community College, and completed a four-year electrical apprenticeship program.

Palmer Electric Company is a provider of electrical contracting for commercial, institutional and residential customers. Additionally, the Company provides service 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

Contact: Elaine Ingra, PR WORKS!, PH: 407 384-1344,,