Tuesday, February 10, 2009

Marcus & Millichap Sells Historic Apartment Building in Chicago for $8.05M

CHICAGO, IL – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of The Farcroft, (top right photo) an 86-unit mid-rise apartment building in Chicago.
The sales price of $8.05 million represented $93,605 per unit. The cap rate was 5.63 percent.

Eric Bell, a senior vice president investments and a senior director of Marcus & Millichap’s National Multi Housing Group in Chicago, represented the seller, a private partnership.
Doug Fisher of Essex Realty (middle left photo) represented the buyer, a Chicago-based operator.
“This investment was a prime candidate for condominium conversion due to its excellent location and condition,” says Bell. “Given the changes in the market, the property will undergo further renovation and continue to operate as an apartment building.”

Designed by noted regional architect Charles Wheeler Nicol and built in 1928, the 13-floor property is located at 1337 West Fargo Ave. in Chicago’s Rogers Park neighborhood.

The Farcroft is comprised of two studio apartments, 72 four-room, one-bedroom/one-bath units and 12 five-room, two-bedroom/one-bath units. Capital improvements to the building include a new elevator, tuckpointing, a five-year facade restoration, replacement of nearly all the windows and a new boiler.
Press Contact: Stacey CorsoCommunications Department(925) 953-1716

Concord Hospitality Secures $13.4M Loan for Ninth Pittsburgh Property

Company Continues to Secure Financing Despite Down Economy

PITTSBURGH/RALEIGH-DURHAM, N.C.-Concord Hospitality Enterprises, one of the nation’s top ranked hotel developer/owner/operators, has secured a $13.4 million loan to build a 124-room Courtyard by Marriott in Pittsburgh, Pa.

S&T Bank financed the loan. It is the seventh of Concord’s nine properties in Pittsburgh to be financed by the institution.

(Top right photo is a Courtyard by Marriott in The Woodlands, TX, related only be physical design, to this transaction.)

“The economy and hotel industry are in a downturn that is expected to begin rebounding in 2010, just as this hotel is projected to open,” said Keith McGraw, a Pittsburgh-based partner of Concord.

“Regardless of where we are in the economic cycle, management is the most critical component in the success of a hotel, and Concord has compiled an impressive track record over its 24-year history.

"Their management strategy and execution consistently produce hotels that perform at their maximum revenue potential and outperform their competitive set.

"As a result, we have been able to continue our long-standing relationship with S&T Bank and secure financing during one of the most difficult economic environments in decades.”

The Courtyard by Marriott Settlers Ridge will be the company’s ninth property in the Pittsburgh area, and will be the only hotel in city’s newly planned Settlers Ridge retail development. The property, just under construction, is expected to open in the spring of 2010, in conjunction with the opening of the Settlers Ridge development.

“Our ability to obtain financing even while credit markets are tight will allow us to continue our development program in 2009,” said Mark G. Laport, (middle left photo) president and CEO of Concord Hospitality.

“As a result, we remain on target to double the size of our portfolio to more than 100 owned and managed properties.” Concord currently has 11 new-build hotels aggregating nearly 1,358 rooms under construction. This is the largest amount of new hotel development under way at one time in the company’s 24-year history.

Laport noted that operational excellence will be what sustains the hospitality industry through this downturn.

“Meticulous management of top- and bottom-line revenues, costs and guest and associate satisfaction will be the difference between profit and loss. Pre-opening is one of the most important phases of developing a hotel, and we are putting a top-notch team in place to operate the property.

“We believe there are solid opportunities to develop hotels in all phases of the economy,” he added. “There are certain advantages to being a contrarian, if you have the expertise and the funding to back it up.”

About Concord Hospitality

Concord Hospitality Enterprises Company, an award-winning hotel management and development company based in Raleigh-Durham, N.C., manages 51 hotels and with more than 6,400 guest rooms in 13 states and two Canadian providences, under such well-known brands as Renaissance, Marriott, Courtyard by Marriott, Residence Inn by Marriott, Fairfield Inn and Suites by Marriott, SpringHill Suites by Marriott, and Hampton Inn and Suites, and an independent boutique hotel.

Formed in 1985, the company was recently listed as one of the top management companies in the nation by independent sources. Concord properties are some of the most awarded hotels in the country, having won nearly 30 honors in the past two years alone. For more information, visit http://www.concordhotels.com/.

Contact: Melanie Boyer, Jerry Daly, Daly Public Relations, (703) 435-6293.

Cousins Properties Reports Results for Quarter Ended Dec. 31, 2008

ATLANTA, GA--Cousins Properties Incorporated (NYSE:CUZ) reported its results of operations for the three months and year ended December 31, 2008.

All per share amounts are reported on a diluted basis; basic per share data is included in the Condensed Consolidated Statements of Income accompanying this release.

Funds from Operations Available to Common Stockholders (“FFO”) was $10.2 million, or $0.20 per share, for the fourth quarter of 2008 compared with FFO of $7.3 million, or $0.14 per share, for the fourth quarter of 2007.

FFO was $61.0 million, or $1.18 per share, for the year ended December 31, 2008 compared to $48.4 million, or $0.92 per share, for the same period in 2007.

For the fourth quarter of 2008, the Company generated a Net Loss Available to Common Stockholders (“Net Loss Available”) of $4.1 million, or $0.08 per share, as compared to Net Loss Available of $5.0 million, or $0.10 per share, for the fourth quarter of 2007.
For the year ended December 31, 2008, the Company generated Net Income Available to Common Stockholders (“Net Income Available”) of $7.6 million, or $0.15 per share, compared with Net Income Available of $17.7 million, or $0.33 per share, for the same period in 2007.

For a complete copy of the company's news release and financials, please contact

James A. Fleming, (top right photo) 404-407-1150, Executive Vice President and Chief Financial Officer, jimfleming@cousinsproperties.com or

Cameron Golden, 404-407-1984, Director of Investor Relations and Corporate Communications, camerongolden@cousinsproperties.com

Grubb & Ellis Brokers 3 Leases Totaling 153,326 SF in Texas

ENGlobal Expansions in Houston and Beaumont Total 133,326 SF

HOUSTON, TX – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, announces that Robert Bantly and Scott Fikes with the Houston office negotiated two leases totaling 133,326 square feet on behalf of ENGlobal Corporation (NASDAQ: ENG), a leading provider of engineering and professional services to the midstream and downstream sectors of the energy industry.

Terms of the transactions were not disclosed.

The first lease was for a new 52,518-square-foot engineering and administration building located at 3155 Executive Blvd. in Beaumont’s Executive Business Plaza.

The facility, which was built to suit by Clay Development and Construction, is on the same site and replaces the building destroyed by Hurricane Rita in September 2005.

The company, which is currently in the process of moving into the new building, now occupies a total of 134,274 square feet in Beaumont.

The second lease was for 80,808 square feet of fabrication space to support ENGlobal’s automation segment. The new industrial space is located at 225 Portwall St. in Portwall Distribution Center II (top right photo) and represents an expansion for the firm, which is moving from 62,641 square feet at a nearby location.

The company’s automation group is slated to relocate to its new space in March 2009. The property owner, The Carson Companies, was represented internally by Dan Zoch.

“We are pleased to announce the expansions of our engineering and automation locations,” said ENGlobal’s Chairman and Chief Executive Officer William A. Coskey, P.E. (middle right photo)

“The moves are necessary to support the company’s growth and its need for improved facilities. The Beaumont location illustrates our commitment to employees and clients in and around the Golden Triangle area, while our Houston-based automation group required a larger and more efficient fabrication facility due to increased backlog.”

Bantly and Fikes have represented ENGlobal since 2006. Since that time, Grubb & Ellis has completed numerous assignments for the company around the country.

EaglePicher Medical Power Takes 20,000 SF at Jupiter Service Center in Plano, TX

DALLAS, TX – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, has secured a 20,000-square-foot lease at Jupiter Service Center, (bottom right photo) a four-building office and R&D park in the Dallas suburb of Plano.

EaglePicher Medical Power LLC, a company that manufactures medical device batteries, leased the space at 1009 Jupiter Road, bringing the occupancy of the center to 100 percent. Built in 1999, the approximately 125,000-square-foot center is situated on roughly nine acres of land within close proximity to State Routes 190, 5 and 544, as well as Interstate 75.

“EaglePicher is a high quality tenant expected to occupy the space on a long-term basis,” said Russ Johnson, (bottom left photo) senior vice president of Grubb & Ellis’ Dallas office. “The company is in the medical field, a growing industry that made them particularly attractive to our client.”

Kathy Permenter, managing director of Agency Leasing, also of Grubb & Ellis’ Dallas office, joined Johnson in the representation of the property’s landlord, Kodiak Capital Partners LLC. David Ellis, director of technology marketing and redevelopment for the Plano Economic Council, played a key role in attracting the tenant to the property.

Contact: Damon Elder, Phone: 714.975.2659. Email: damon.elder@grubb-ellis.com

MBA ALERT: $171B of Non-bank Commercial/Multifamily Mortgages Maturing in 2009

Significant Differences by Investor Group

SAN DIEGO, CA) - The Mortgage Bankers Association (MBA) has released the results of its new Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes that reports $171 billion of commercial/multifamily mortgages held by non-bank lenders and investors will mature in 2009.

According to the survey, the volume of loans maturing varies considerably by the type of investor holding the loan.

Short-term floating-rate mortgages in commercial mortgage-backed securities (CMBS) and mortgages held by credit companies, warehouse facilities and other investors are more likely to mature in 2009 and 2010 than are fixed-rate CMBS mortgages, mortgages held by life insurance companies or multifamily mortgages held or guaranteed by Fannie Mae, Freddie Mac or FHA. $120 billion of non-bank commercial/multifamily mortgages are scheduled to mature 2010.

"Substantial concerns have been raised about the volume of mortgages maturing in the face of the current credit crunch," said Jamie Woodwell, (top right photo) MBA's Vice President of Commercial Real Estate Research.

"This study shows that while the dollar volume of maturing non-bank mortgages represents only one-tenth of the total outstanding balance, it is not evenly spread across investor and lender groups.

"While some parts of that system - such as floating-rate CMBS and credit companies, warehouse facilities and other investors - face a significant volume of near-term loan maturities, others - including fixed-rate conduit CMBS, life insurance companies, Fannie Mae, Freddie Mac and FHA - do not."

"Across all these investor groups, commercial/multifamily lenders and servicers have a wide variety of tools to help them deal with maturing mortgages, which should mitigate - but not eliminate - the impact of maturities in 2009," added Woodwell.

"To the degree mortgages are extended into out years, however, there is an increased consequence should the markets not be functioning in 2010, 2011 or beyond."

MBA's survey on commercial/multifamily loan maturities collected information on the maturity dates of more than $1.7 trillion in outstanding mortgages, including $1.55 trillion of non-bank commercial/multifamily holdings.

Investor groups' maturity schedules are generally designed to their match liabilities, and most investor groups have considerable discretion in how they deal with loans that may not be able to immediately refinance at maturity.

Of the total non-bank holdings of commercial/multifamily mortgages coming due in 2009, 52.8 percent is in CMBS, CDOs or other ABS, and an additional 33.6 percent is held by credit companies, warehouse facilities or other investors.

Only 9.8 percent of the non-bank mortgages maturing in 2009 are held by life insurance companies, and 3.8 percent are held or guaranteed by Fannie Mae, Freddie Mac or FHA.

Even within an individual investor group there are significant variations.

It is important to note that a significant share of CMBS loans maturing in the next two years are floating-rate loans, which tend to have larger balances and to be shorter-term in nature.

According to data from RBS Greenwich Capital, $31 billion of the current balance of CMBS loans maturing in 2009 is in floating rate loans.

These floating-rate loans tend to have extension options built into them, and according to RBS, only $1.9 billion of the floating rate loans maturing in 2009 have exhausted these options.

An additional $19 billion of the balance is fixed-rate loans in conduit/fusion CMBS deals.

The CMBS, CDO and other ABS loans categorized in the MBA report also includes B-notes, privately-issued CMBS, mezzanine and other loans that are related to the CMBS market but may not be a part of a publicly issued commercial mortgage-backed security.

CONTACT: Jason Vasquez(202) 557-2950 jvasquez@mortgagebankers.org