Friday, January 23, 2009

Marcus & Millichap Negotiates $31M Sale of Northland Center in Southfield, MI

The company also secures listing for Chestnut Ridge apartments in Pittsubrgh, PA

SOUTHFIELD, MI– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of 663,000 square feet of the Northland Center, (top right photo) a 1.7 million-square foot enclosed mall in Southfield. The sales price was $31 million.

Mark Taylor, (top left photo) vice president investments, and Dean Zang,(middle right photo) associate vice president investments, in the Philadelphia office of Marcus & Millichap, represented the seller, Jager Management Inc. of Jenkintown, Pa.

Taylor and Zang also procured the buyer, New York City-based Ashkenazy Acquisition Corp.

Mike Dillon, a vice president investments in the Chicago office of Marcus & Millichap, and Steve Chaben, (middle left photo) first vice president and regional manager of the firm’s Detroit office, also assisted in closing this transaction.

”This transaction presented numerous challenges that Dean and I were able to resolve because of the high level of cooperation – and patience – exerted by both the buyer and seller,” said Taylor.

“Some of the challenges we worked to overcome included the assumption of a loan in this very difficult capital markets environment and the erosion in the property’s rent roll.

“We went under contract in July and the global financial crisis intensified in September. During the entire transaction process, we faced daily negative press reports on the state of the commercial real estate sector and lending market, as retail property values continued to fall nationwide,” Taylor says.

Developed in 1954, Northland Center at 21500 Northwestern Highway is a retail destination for Detroit residents.

Co-anchored by Macy’s and Target, other retailers currently occupying the 120-acre mall include Champs Sports, Coffee Beanery, Lens Crafters, Lady Footlocker, Payless ShoeSource, Stride Rite, Carlton Cards & Gifts and others.
Marcus & Millichap sold a portion of the property, but did not sell the space occupied by Macy’s and Target.

“As the retail sector continues to face losses due to a downturn in consumer spending, landlords across the nation have encountered some significant leasing issues,” says Zang. “The new owner plans to make significant capital improvements to the mall. A major repositioning and changes to the tenant mix should assist in turning this property around.”

At the time of closing, Northland Center’s occupancy rate was 70 percent.

“Closing this sale at the height of the global financial crisis is a testament to the perseverance and excellent brokerage skills of our investment specialists,” explains Spencer Yablon, (middle right photo, under Dean Zang photo)) regional manager of the Philadelphia office of Marcus & Millichap.

Marcus and Millichap has obtained the exclusive listing for Chestnut Ridge (bottom left photo), a 468-unit apartment community in Pittsburgh. The listing price is $32 million. The 359,760-square foot Chestnut Ridge complex has 31 apartment buildings located on 25 acres of professionally maturely landscaped grounds.

Located in Robinson Township, one of the fastest-growing communities in Pittsburgh, the 468-unit property consists of five different one- and two-bedroom layouts designed to attract a variety of renters.

The property is also located in the prominent Montour School District.

Press Contact: Stacey CorsoCommunications Department(925) 953-1716

Affordable Housing Expert Widens Institute’s Research Capabilities

CHICAGO, IL – The Real Estate Capital Institute® added the seasoned realty industry veteran, Randal Dawson, (top right photo) to its Editorial Advisory Group for 2009.

Mr. Dawson is a Senior Vice President with CB Richard Ellis. He specializes in the market analysis/valuation of affordable housing and low-income housing tax credits.

Randal is also a Member of the Appraisal Institute (MAI) and is a Certified General Appraiser in 17 states, with a national specialty practice in affordable housing and low-income housing tax credits.

Mr. Dawson serves on the Appraisal Institute’s-National Publication Committee as a primary reviewer for two recent publications from the Appraisal Institute - Valuation and Market Studies for Affordable Housing and Market Analysis for Real Estate.

The Real Estate Capital Institute’s Editorial Advisory Group (“EAG”) members typically serve a two-year term and include some of the nation's most renowned realty professionals and scholars.
The group is composed of capital providers, investment bankers, investors, consultants, academicians and appraisers. The Institute solicits market comments from these industry leaders as well as other senior executives.

Although the Institute collects market research from various sources, EAG member observations are particularly important.

Issued monthly or more frequently, depending upon market conditions, EAG comments track market momentum.

To protect privacy and promote an open exchange of ideas, many EAG observations are often posted anonymously. Members' comments, furthermore, do not necessarily reflect opinions of their respective organizations, employers or the Institute.

According to the Institute's research director, Nat Zvislo, "Randal’s expertise in affordable housing and low-income tax credits provide stronger depth to the Advisory Board’s talent pool. Such programs are critical to realty capital market flow as federal, state and local funding assistance help launch more developments as private capital remains sidelined. "

Contact: Nat Zvislo, Research Director, Toll Free, 800-994-RECI (7324) /

Morrison Commercial Real Estate Completes 20,202 SF of Leases in Orlando

ORLANDO, FL -- Greg Morrison, (top right photo) CCIM, SIOR, Principal and Founder of Morrison Commercial Real Estate, announced the completion of three office lease transactions totaling 20,202 square feet at three office buildings in Orlando.

At SunTrust Center, located at 250 S. Orange Avenue, Morrison served as the tenant representative for Orlando Regional Healthcare System, Inc. in the negotiation of a 10,032-square-foot lease with landlord, SunTrust Center Owner, LLC.

John Gilbert of CB Richard Ellis represented the Landlord in this transaction.

In addition, Morrison and Emily Zinaich (bottom left photo) of Morrison Commercial Real Estate represented the landlord, OPUS REAL ESTATE FL VII UCC3, L.L.C. in the negotiation of a 6,830 square-foot office lease with CH Robinson Worldwide, Inc. at University Corporate Center III. The Tenant was represented by Mohr Partners.

At 101 Southhall Lane, Morrison and Zinaich also represented the landlord, SHL Owner LLC, in the negotiation of a 3,340 square-foot new lease with SUA Insurance Company. Matthew Cichocki and Kevin O’Connor of NAI Realvest Partners represented the Landlord in this transaction.


Marylyn Tryon, Administrator and Marketing Assistant, Morrison Commercial Real Estate, 255 S. Orange Avenue, Suite 1545, Orlando, Florida 32801
407.219.3500 407.219.3501 fax.

After 40 Years, Hilton Moving from Beverly Hills to DC Area

BEVERLY HILLS, CA--(BUSINESS WIRE)--Hilton Hotels Corporation (Hilton) plans to relocate its global headquarters from Beverly Hills, CA, (top left photo) to the greater Washington, DC metropolitan area.

Locations in Maryland and Virginia are currently being considered. The move will occur during the third quarter of 2009.

The decision to relocate the company’s headquarters is part of Hilton’s ongoing business reorganization and follows a thoughtful and rigorous review of Hilton’s corporate operations and locations.

Potential locations were evaluated against multiple criteria including costs, proximity to Hilton’s US and international offices, and talent attraction and retention.

Christopher J. Nassetta, (middle right photo) President and Chief Executive Officer, said, “After careful consideration of both the needs of our business and the impact on our organization, we identified the greater Washington, DC metropolitan area as the best market for our business and the right decision for our future.

"Relocating to the DC area will significantly reduce our operating expenses and will position Hilton in a more central location from which to operate a global business, ease coordination across our organization, and better enable us to execute on strategic opportunities.

"Our vision for Hilton is to create the world’s leading hotel company, and this is a necessary and important step toward reaching this goal.”

Nassetta added: “We understand this is a major change for our organization, and we will do our best to minimize disruptions to employees and operations. We have a long history in Beverly Hills and appreciate the support we have received from our civic partners and citizens in the community over the years.”

Hilton Hotels Corporation is the leading global hospitality company with more than 3,200 hotels and 545,000 rooms in 77 countries and territories, including 135,000 team members worldwide.

The company owns, manages or franchises a hotel portfolio of some of the best known and highly regarded brands, including Hilton®, Conrad® Hotels & Resorts, Doubletree®, Embassy Suites Hotels®, Hampton Inn®, Hampton Inn & Suites®, Hilton Garden Inn®, Hilton Grand Vacations®, Homewood Suites by Hilton® and The Waldorf=Astoria Collection®.

The Hilton Family of Hotels adheres to founder Conrad Hilton’s (bottom left photo) philosophy that, “It has been, and continues to be, our responsibility to fill the earth with the light and warmth of hospitality.”

The company put a name to its unique brand of service that has made it the best known and most highly regarded hotel company: be hospitable®. The philosophy is shared by all brands in the Hilton Family of Hotels, and is the inspiration for its overarching message of kindness and generosity.