Thursday, October 1, 2009

York Property Co. Releases Initial 'Big Box' Survey for Orlando, FL

ORLANDO, FL--“By many objective measures, the current economy is the worst it has been in the past 25 years,” according to industry veteran Jeff York, (top right photo) President of York Property Company.

Essentially, we have had 6 straight quarters of negative absorption, increasing vacancies, and decreasing rental rates. Corporate downsizings, unemployment, and facility consolidations and closures have steadily eroded the industrial market.

The question on nearly everyone’s mind is “when will we start to see a turn in the market?”….and not just scattered deals here or there, but quantifiable measures that we are on the rebound, headed back toward a stable market.

York Property Company specializes in negotiating lease transactions for “Big Box” bulk distribution tenants. The company tracks the largest blocks of space within dock high, high bay warehouse facilities….spaces which are in excess of 100,000 Square Feet.

(Orlando Central Park, middle right photo)

At present, there are 32 such facilities in metro Orlando, (within 35 miles of downtown Orlando) totaling 6,610,432 square feet of available space.

Quoted (asking) rental rates are predominantly in the $3.50 to $4.95 per square foot range, on an industrial net basis, with final, negotiated rates generally 20% to 25% below the asking rate.

“With so few large deals being done year to date, it is a challenge trying to peg what defines a fair market deal,” says York.

“The bottom line is that there is a glut of space on the market, and any large tenant even considering a potential move is in a position to take advantage of once in a generation market dynamics. Landlords will be competing very aggressively over the next year for a limited pool of large corporate users.”

Long term demographics unquestionably support the viability of Central Florida as an attractive location for large warehouse distributors, but it is going to take some time before supply and demand are restored to a healthy balance.

For a complete copy of the Big Box Survey, please contact:
Jeff York

York Property Company
2180 N. Park Ave., Suite 220
Winter Park, FL 32789
Office 407.622.2558
Cell 321.663.4535
E Mail

CB Richard Ellis Represented Citrus Club Orlando in 15-Year Lease Renewal

ORLANDO, FL – The Orlando office of CB Richard Ellis (CBRE), the world's leading commercial real estate services provider, is pleased to announce Senior Vice Presidents, Michael Phipps and Nan McCormick, represented ClubCorp. on a 15-year lease renewal of 26,000-sq.-ft. at the Citrus Center (top right photo)  located at 255 South Orange Avenue in Orlando, Florida.

 Greg Morrison of Morrison Commercial Real Estate, represented the landlord, Parkway Properties, Inc.

Contact: Angelique Greven, 407.839.3158,

Hampton Inn Sells for $10M in Altamonte Springs, FL

ALTAMONTE SPRINGS, Fla., Sept. 28, 2009 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of a 210-room Hampton Inn (top left photo) in Altamonte Springs, a suburb of Orlando. The sales price of $10 million represents $47,619 per room.

Douglas Dial, a senior associate in the firm’s Orlando office, and Jonathan Ruprai, a hospitality investment specialist in the Denver office, represented the seller, a Georgia-based private investor. Jaimin Patel, a senior associate in the firm’s Tampa office, represented the buyer, an investment group based in Tennessee.

The property is located approximately 15 minutes from downtown Orlando at 151 North Douglas Ave., directly off Interstate 4, a major thoroughfare and primary roadway connecting Orlando to Interstate 95 on the state’s Atlantic Coast and Tampa. The property is a short distance north of State Route 436, a key artery in the Orlando metropolitan area. Approximately 103,000 vehicles per day travel through the intersection of Interstate 4 and State Route 436.

The Hampton Inn was built in 1993 on 4.55 acres and was renovated in 2006. The current franchise agreement will remain in place until December 2013.

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

Marcus & Millichap Facilitates $20M Loan Sale on Massachusetts Ground Lease

PHILADELPHIA, PA – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has facilitated the sale of a performing, self-liquidating first mortgage loan for approximately $20 million. The loan is secured by fee-simple title to land adjacent to a regional mall in Massachusetts. The income source for the loan payments is a corporate-guaranteed ground lease on the mortgaged property with an investment-grade grocery store tenant.

Thomas Gorman, a senior associate of the National Retail Group in Philadelphia, and Michael Harris, a loan sale specialist in Marcus & Millichap’s Special Assets Services (SAS) division in Tampa, worked with Matthew Gorman, a senior associate in the firm’s Philadelphia office, to advise the institutional seller and market the credit-tenant loan.

Michael Shover, a net-leased investment specialist in Philadelphia; Dorothy Jackman, (top right photo)  a vice president investments, and Travis Prince, (bottom left photo) a senior associate, both in the firm’s Tampa office; and Todd Tremblay, a net-leased investment specialist in Boston, also provided representation in this transaction.

“We marketed this loan within our SAS division, which typically handles distressed real estate and non-performing assets, even though this is a performing loan,” explains Harris. “The firm’s loan sales are handled in SAS due to the accelerated marketing process and our ability to maximize proceeds on behalf of our sellers. We had significant interest in this transaction and were able to generate multiple offers. In the end, an institutional investor purchased this loan on an all-cash basis,” adds Harris.

“Marcus & Millichap’s Special Assets Services division is the industry leader in advising and serving investors in the purchase and sale of distressed commercial real estate assets and financial instruments,” says Bernard J. Haddigan, executive in charge of the SAS division. “During calendar year 2009, SAS has advised clients on the marketing, sale and closing of more than $1 billion of notes and distressed assets.”

Located in Massachusetts, the land was appraised in 2002 at $30 million. The tenant subsequently constructed a retail center, which was occupied by a grocery store. In 2008, the grocery store vacated and the space was re-tenanted.

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

Wyndham Brand Expands in Indiana with New Hotel

PARSIPPANY, NJ – Wyndham Hotels and Resorts announced its continued expansion in North America with the opening of the 407-room Wyndham Indianapolis West in Indianapolis. (centered photo below)

The Wyndham Indianapolis West hotel is located at 2544 Executive Drive, just minutes from the all new Indianapolis International Airport, downtown Indianapolis and Lucas Oil Stadium.

“This newest addition to the Wyndham Hotels and Resorts portfolio represents the continued fulfillment of our commitment to adding high-quality properties in key urban markets,” said Jeff Wagoner, Wyndham Hotels and Resorts brand president. “Business and leisure travelers alike will now have the opportunity to experience the personalized service that has become the hallmark of the Wyndham brand.”

Guest rooms at the newly opened Wyndham Indianapolis West hotel feature complimentary high-speed wireless Internet access, 32-inch flat-screen televisions, and spacious work areas with Herman Miller® Aeron® chairs. Twenty one-and-two-bedroom suites provide more space, adding separate bedroom and seating areas as well as wet bars.

The six-story, full-service hotel is owned and operated by Akshar Indianapolis Hotel, LLC and managed by Nexus Hospitality Management.

Additional information and reservations for all Wyndham hotels are available by calling (800) WYNDHAM— (800) 996-3426—or visiting

CONTACT:  Evy Apostolatos, 973-753-6590,

Stan Johnson Co. Completes Sale of Colorado Walgreens in 10-Day Close

FRUITA, CO– Stan Johnson Company, one of the nation’s premier net lease brokerage firms, has completed the sale of a Walgreens located in Fruita, CO. The newly developed store is 100% leased to Walgreens for an initial lease term of 25 years.

The buyer was an individual investor on a tax deferred 1031 exchange.

Ken Hedrick (right)  and Jerry Hopkins (top left photo) of Stan Johnson Company represented the seller, a merchant Walgreens developer. Jim Gibson (bottom  right photo), also of Stan Johnson Company, represented the buyer.

“We were able to go from execution of the letter of intent to closing in only 10 days,” said Hopkins. “The teamwork between the seller, buyer, title company and brokerage teams was exceptional on this deal.”

Fruita, Colorado is located on Interstate 70, just 15 miles West of Grand Junction, Colorado. The 14,490 square foot store sits on a 1.77 acre parcel of land. This represents the 17th drugstore transaction for the Stan Johnson Company in 2009.

Contact: David Ebeling, Ebeling Communications, (949) 278-7851,

HFF arranges $78M sale of former Key Biscayne Sonesta Beach Resort site in Florida

MIAMI, FL – The Miami office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it arranged the sale of the site of the former Sonesta Beach Resort in Key Biscayne, Florida. (Key Biscayne lighthouse top right photo)

The HFF team of executive managing director Manuel de Zárraga, senior managing directors Dan Carlo (middle left photo)  and Dan Peek (bottom right photo)  and associate directors Jaret Turkell and Luis Castillo served as the exclusive sale advisor to the owner of the property, SBR-Fortune Associates LLLP (“SBR”).

SBR is a 50/50 partnership comprised of affiliates of Sonesta International Hotels Corporation and Fortune International Realty, headed by Edgardo de Fortuna. The property was purchased for $78 million by an affiliate of Consultatio, S.A., a Buenos Aires, Argentina-based real estate investment and development firm.

“The former Sonesta site in Key Biscayne is the premier oceanfront development site along the eastern seaboard of the U.S. in what is far and away Florida’s most vibrant residential and hotel market catering to the affluent markets of South America and Europe,” said de Zárraga.

“That a prominent development group from overseas was the ultimate buyer of this unique property is a testament to how the international community views greater Miami as a very desirable venue for long-term investments,” added Carlo.

The site contains an aggregate 10.3 acres with over 500 linear feet fronting the Atlantic Ocean and is entitled for 165 residential units.


Manuel A. De Zarraga, HFF Executive Managing Director, (305) 448-1333,
Kristen Murphy,  HFF Associate Director, Marketing,  (713) 852-3500

HFF named to market sale of Mervyn’s former HQ in northern California

SAN FRANCISCO, CA – The San Francisco office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has been selected by the Receiver, John Connolly Partners, to exclusively market the sale of the 336,000-square-foot former Mervyn’s department store chain’s office headquarters building (top left photo) located at 22301 Foothill Boulevard in Hayward, California.

The HFF investment sales team of senior managing directors Gerry Rohm (middle right photo) and Michael Leggett, (bottom left photo) associate director Christopher Pawlik and senior real estate analyst David Karol will lead the marketing efforts on behalf of the seller. John Connolly Partners (“JCP”) was appointed the Receiver for the seller by the Superior Court of California for the County of Alameda.

“22301 Foothill Boulevard is being offered for sale at a fraction of replacement cost, and provides an owner or investor a generational buying opportunity,” said Rohm. The sale process will be overseen by JCP, the court-appointed Receiver, and subject to court approval.

22301 Foothill Boulevard consists of a four-story office building significantly renovated in 2001 and containing 1,100 workstations in plug-and-play condition. Adjacent to the office building is a four-story parking garage providing 720 spaces for a total of 1,047 on-site surface and facility parking spaces.

Situated on 8.8 acres at 22301 Foothill Boulevard, the property is in close proximity to the Interstates 238 and 580 interchange in Hayward, approximately 15 miles south of Oakland.


Gerry Rohm, HFF Senior Managing Director, (415) 276-6935,
Michael Leggett, HFF Senior Managing Director, (415) 276-6924,
Christopher Pawlik HFF Associate Director, ( (415) 276-6927,
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500,

HFF arranges $3.5M refinancing of Gresham, OR industrial facility

PORTLAND, OR – The Portland office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has arranged a $3.5 million refinancing of The Tharco Building,(top right photo)  a 126,388-square-foot distribution/warehouse in Gresham, Oregon.

HFF associate director Tom Wilson and senior managing director Lloyd Minten placed the fully-amortizing, 15-year, fixed-rate non-recourse loan with Delaware Investments. Loan proceeds provided financing for a recent all-cash purchase. The loan will also be serviced by HFF.

“This transaction reflects the availability of life insurance company capital, especially for those commercial real estate assets that are well located in in-fill sites with stable rent rolls and exceptional sponsorship,” said Wilson.

The Tharco Building is located at 17625 Northeast Sandy Boulevard near one of the last major intersections off Interstate 84 with proximity to Interstate 205 and the Portland International Airport. Built in 1999, the property is fully occupied by Tharco Containers, one of the largest packaging companies in the nation.


Lloyd L. Minten, HFF Senior Managing Director, (503) 224-0444,      
Thomas F. Wilson, HFF Associate Director, (503) 224-0444,
Kristen M. Murphy,  HFF Associate Director, Marketing, (713) 852-3500,

Faulkner Design Group Completes Interior Design Services at Senior Living Community in Dallas, TX

DALLAS, TX– Faulkner Design Group, one of the nation’s premier multifamily interior design firms, has completed interior design services at Churchill Estates at Lake Highlands (top right photo), a premier Senior Living Community featuring 175 units located at 8501 Lullwater Drive in Dallas.

Faulkner Design Group provided the interior design and planning of the lobbies, common areas and all residential units and corridors for the project.

Additionally, the firm designed the Wellness Center, movie studio, billiards room, bistro and cardio-fitness room with state of the art equipment and the beauty/ Spa treatment area. Other community amenities include: two dining rooms, wine room, art studio and Wellness library.

“The goal of our interior design team was to create an authentic Mediterranean style community by incorporate the various natural stone applications while incorporating rich wood tones as well as many custom wrought iron details,” said Stephanie Dunn, Faulkner Design Group project manager for Churchill Estates at Lake Highlands.

Contact: David Ebeling, Ebeling Communications, (949) 278-7851,

Grubb & Ellis Tapped as Leasing Agent of Kingsbury Center in Chicago's River North Neighborhood

CHICAGO, IL – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that Grubb & Ellis has been selected as the leasing agent for Kingsbury Center, a 135,000-square-foot Class A office building in the city’s River North submarket.

The building is owned by Kingsbury Orleans LP, a private partnership, and is managed by The Habitat Company.

Ted Prillaman, vice president and Sara Spicklemire, LEED AP, associate, both members of the company’s Office Group, will assist The Habitat Company in leasing the available space in the building, located at 350 W. Hubbard St.

“As a modern office property in a submarket comprised mostly of older, renovated brick and timber loft buildings, Kingsbury Center provides a unique option for tenants looking for great amenities and the vibrancy and quality of life the River North neighborhood affords,” said Prillaman.

Built in 1989, Kingsbury Center is currently approximately 85 percent leased.

Contact: Erin Mays, Phone: 312.698.6735, Email:

Grubb & Ellis Company Amends Credit Facility

SANTA ANA, CA (Oct. 1, 2009) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that the company and its lead bank, Deutsche Bank Trust Company Americas, have amended the company’s senior secured credit facility effective September 30, 2009.

The amendment provides a 60-day extension and defers until November 30, 2009, the $27.3 million Partial Prepayment of the facility originally due on September 30, 2009. The amendment also gives the company a one time right to prepay the facility in full for a reduced principal amount equal to approximately 65 percent of the aggregate principal amount outstanding at the time of prepayment. The amendment allows for a one-time infusion of $5 million from the company’s largest stockholder, or affiliate thereof, that may be used for working capital purposes.

In issuing the announcement, Grubb & Ellis said it views the amendment as a constructive step between the company and its lenders to facilitate completion of its efforts to recapitalize the company and further stabilize its balance sheet.

Contact: Janice McDill, Phone: 312.698.6707, Email: