Wednesday, June 2, 2010

HFF closes sale of Tampa Class A office buildings

MIAMI, FL – The Miami office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has closed the sale of Fountain Square I and III, (top left photo) Class A office buildings totaling 311,816 square feet in Tampa, Florida.

HFF managing director Hermen Rodriguez (middle right photo) , executive managing director Manny de Zárraga and director Ike Ojala (bottom left photo)  led the investment sales team on behalf of the seller, Brookfield Asset Management.

W.P. Carey & Co., LLC purchased the properties free and clear of debt.

Fountain Square I and III are located at 4915 Independence Highway and 4900 Memorial Highway respectively in the Westshore area of Tampa.

This location is adjacent to Tampa International Airport and close to Interstate 275, State Route 60 and Veterans Expressway.

The four-story properties are fully leased to JP Morgan Chase on a long-term basis.

Fountain Square I is a 135,666-square-foot building with a 708-space garage and a retail bank branch. Fountain Square III, completed in 2000, has 176,150 square feet plus a 912-space garage, a cafeteria, training rooms and a daycare facility.

“Fountain Square I and III presented investors with an opportunity to acquire Class A office buildings that have reliable, long-term cash flow, in-place rents that are below market and an acquisition price that is below replacement cost.

"There is incredible investor appetite for well-positioned Florida office buildings,” said Rodriguez.


Manuel de Zarraga, HFF Executive Managing Director, (305) 448-1333,
 Hermen Rodriguez, HFF Managing Director, (305) 448-1333,
 Kristen Murphy, HFF Associate Director, Marketing, (713) 852-3500,

Orange County, FL Resort Tax Collections in April Up 3% from 2009 Month

ORLANDO, FLORIDA -- County Comptroller Martha Haynie (top right photo)  announced today that resort tax collections received by the County in May for the hotel collection month of April 2010 were $13,767,200.

Resort taxes are charged on short-term rentals, mostly hotels and motels.

Comptroller Haynie noted that April 2010 collections were almost three percent higher than April 2009.

“It’s good to see this important revenue moving in the right direction,” Haynie

For a complete copy of the news release and statistics, please contact :
Martha O. Haynie (407) 836-5690

Fitch Releases Full U.S. CMBS Loss Study

NEW YORK, NY--Cumulative average loss severities for Fitch-rated U.S. CMBS will continue to exceed historical averages through the end of next year, according to Fitch Ratings in its latest U.S. CMBS Loss Study, which was published today.

Fitch expects higher loss severities for all property types this year. Annual loss severities by property type for 2009 were as follows:

--Multifamily: 58%;
--Retail: 48.2%
--Office: 56.9%;
--Industrial: 48.8%;
--Hotel: 81.9%.

Fitch’s overall view of the CMBS sector remains negative. Ratin actions on transactions are prospective in nature and take into account its views on current and future default probabilities and loss expectations for the individual loans.

Additional information is available in a press release published earlier today (‘Fitch: High Loan Loss Severities to Continue for U.S. CMBS through 2011’), which along with the full Loss Study, is available at

Contact: Richard Carlson +1-312-606-2373, Chicago or Mary MacNeill, +1-212-908-0785, New York.
Media Relations: Sandro Scenga +1-212-908-0278, New York;

Grubb & Ellis Commercial Florida Office Agency Team chosen to represent Bay West in Westshore Submarket, Tampa, FL

TAMPA, Fla. -- Grubb & Ellis Commercial Florida recently assumed leasing duties for Bay West, an eight building corporate office park totaling 194,592 square feet in the heart of the Westshore area of Tampa.

Paula A. Buffa, (top right photo)  RPA, CCIM, senior vice president at Grubb & Ellis Commercial Florida in Tampa, said the property is the first major Westshore listing for their newly formed Office Agency Team which includes James C. Moler,  (top left photo) CCIM, senior vice president and associate Maria Camarinos Hall (middle right photo)

Located at the West end of Cypress Street, the property fronts Cypress Point Park and offers its tenants beautiful views of Tampa Bay in addition to a prime location with convenient access from all surrounding areas including Pinellas and Pasco Counties.

The owner, BPG Investment Partnership, has invested more than $2 million in renovations to the property since purchasing Bay West in fall 2007.

“With the great new corporate look and feel at Bay West, we are anxious to reintroduce this great office property to the Tampa Bay area,” Buffa said.


Paula Buffa, CCIM, RPA 813-830-7887
Jeffrey Sweeney, SIOR President 407-481-5387
Larry Vershel Communications 407-644-4142

Grubb & Ellis Launches Landauer Appraisal & Valuation

SANTA ANA, CA (June 2, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced it is reinvigorating its Landauer brand with the launch of a national appraisal and valuation business that will be run by industry veterans, Douglas Haney, president, and Eduardo Alegre, executive managing director.

The company, Grubb & Ellis Landauer Appraisal & Valuation, is focused on having a presence in every key market by year-end.

“The Landauer brand is highly regarded in the commercial real estate industry so we are incredibly excited to reintroduce it with the launch of our new national appraisal and valuation business,” said Thomas P. D’Arcy, (top right photo)  president and chief executive officer of Grubb & Ellis Company.

 “We are intensely focused on growth. This initiative is a tremendous addition to our platform and one that we believe will add significant earnings and value to Grubb & Ellis.”

Grubb & Ellis acquired Landauer & Associates in 1999 and historically has offered appraisal services in limited markets.

The establishment of Grubb & Ellis Landauer Appraisal & Valuation as a national business is consistent with the company’s strategy of expanding into complementary businesses that are necessary to provide comprehensive commercial real estate solutions to its growing client base.

“We believe that the need for appraisal services will increase significantly, especially as the commercial real estate markets begin to recover,” said Jack Van Berkel, chief operating officer and president, Real Estate Services. “With Doug and Ed at the helm of Grubb & Ellis Landauer there’s no question we’ll rise to an industry leader in a very short time.”

Experienced commercial real estate appraisers are invited to learn more about this unique career opportunity at

Contact: Janice McDill, Phone: 312.698.6707, Email:

Richard Murdock Joins Grubb & Ellis as Senior Vice President, Investment Services in San Diego Office

SAN DIEGO, CA (June 2, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that Richard Murdock, CCIM, SIOR, has joined the company as senior vice president, Investment Services.

Murdock brings the number of professionals who have joined the company’s San Diego office to 16 since its opening in late March.

A 33-year commercial real estate veteran, Murdock will focus on assisting clients with their acquisitions and disposition needs, as well as the sale and leasing of office and industrial properties.

“Richard is well-known throughout the San Diego marketplace,” said Greg Coxon, president, Brokerage Services. “He has a deep understanding of what clients need and is a fantastic addition to Grubb & Ellis.”

Murdock joins Grubb & Ellis from Commercial Realty Advisers Inc. In March, Grubb & Ellis acquired the principals of CRA to serve as the foundation from which to build an owned brokerage office. In the two months since its opening, the San Diego office has grown to offer clients office, retail, investment, multi housing and receivership services.

Grubb & Ellis Facilitates Sale of Hilton Checkers Hotel in Downtown Los Angeles  for $46 Million

LOS ANGELES (June 2, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that Jordan Richman, senior vice president of the company’s Hotels, Golf & Leisure practice group, represented both parties in the sale of the four-diamond Hilton Checkers Hotel (bottom left photo)  in downtown Los Angeles.

Tarsadia Hotels, operating under Kalpana LLC and 535 Grand Avenue LLC, sold the asset to Chesapeake Lodging Trust, an Annapolis, Md.-based REIT, for $46 million.

“The Hilton Checkers Hotel is the finest boutique hotel in the greater downtown Los Angeles area.

" It is located in the heart of the city’s financial business district and is an excellent acquisition for the newly public Chesapeake Lodging Trust,” said Richman.

“This transaction is a good indication that the region’s hotel market is beginning to turn after the economic downturn, which is a welcome reprieve.”

Richman facilitated the sale in conjunction with Felix Cacciato of Hotel Equity Advisers.

Located at 535 S. Grand Ave., the 12-story, 188-room hotel was built in the 1920s and underwent significant renovations in 2008.

The property includes an award-winning restaurant, spa and lounge, as well as five indoor and one outdoor meeting areas.

Hilton Checkers Hotel is within close proximity to the Staples Center, Los Angeles Convention Center, Nokia Theater L.A. Live, Disney Concert Hall, The Music Center and Cathedral of Our Lady of the Angels.

The hotel, which is the only four-diamond boutique hotel in down town Los Angeles, will remain a Hilton.

This is the second time Richman has sold the Hilton Checkers; he also facilitated the sale of the hotel when Tarsadia acquired the asset in 1999.

Contact: Julia McCartney, Phone: 714.975.2230, Email:

McCarthy Building Companies Tops Out Structural Steel for CHOC Children's Hospital Patient Care Tower II in Orange, CA

ORANGE, CA  (June 2, 2010) – McCarthy Building Companies, Inc., (, one of Southern California’s preeminent healthcare builders, recently topped off the structural steel on CHOC Children’s new patient care tower.

 Currently on schedule for construction completion in December 2012, the $563 million expansion is located on the south side of the existing CHOC Children’s hospital site.

Over the last six months, construction workers used a 196-foot tall Liebherr tower crane with a reach of 276 feet to install 5,805 pieces of structural steel creating the frame for the new tower.

The project team celebrated the placement of the last structural steel beam with a barbecue lunch for the project’s construction workers.

During the luncheon, project team members signed the I-beam which was adorned with an American flag and an evergreen tree before construction workers from Schuff Steel lifted it 160 feet and attached it to the top of the structure.

The tradition of attaching a tree and flag to the final structural beam has been practiced by construction workers for over 1000 years.

The tree represents growth, life and good luck for the construction workers and the building’s future occupants. The flag is displayed as a patriotic symbol that signifies the united effort by the project team to achieve a common goal.

Serving as the general contractor for the project, McCarthy’s contract entails construction of a new 425,524-square-foot patient tower with one basement level and seven upper levels as well as a penthouse chiller room and helistop.

McCarthy will also conduct a 50,000-square-foot renovation of the existing facility and supporting central plant components in the basement of the existing CHOC North Tower.

. Prior to construction, an office building and two-level parking structure were removed to make way for the new tower.


Laura Mickelson (LM Communications), (949) 453-0851
Susan Garritano (McCarthy Building Companies, Inc.), (314) 968-3300

Fairwood Capital Continues Active Acquisition Program with Purchase of Hampton Inn & Suites Atlanta Downtown

MEMPHIS, TN., June 2, 2010—Fairwood Capital, LLC, a real estate investment firm focused on hospitality assets, today announced the acquisition of the 119-room Hampton Inn & Suites Atlanta Downtown (top left photo) from a partnership led by Memphis-based Cooper Hotels for an undisclosed price.

“This is the second urban, premium-branded, select-service hotel that we have acquired this year and the third property in the past six months,” said Robert Solmson, (middle right photo) Fairwood co-founder and president.

“We definitely are seeing more high quality properties coming to market, and we have an active pipeline. With our long-standing industry relationships, we are able to source transactions both on- and off-market.

“We welcome the opportunity to form a new relationship with Cooper Hotels, which will continue to manage the property,” he said.

“Cooper is known for its stable portfolio and long-term commitment to its hotels. They have an excellent long-term relationship with the Hilton Family of brands and are the only company to operate all of Hilton’s major franchised brands.”

Upon closing of the transaction, the hotel will undergo a complete renovation of all its guestrooms and public areas that will be staged in phases to minimize guest disruptions.

The hotel will be upgraded to “like new” condition, including Hampton’s latest amenities, such as the new Hampton “Perfect Mix” lobby, which will make the lobby more accessible and inviting throughout the day.

“This renovation will further enhance the property’s leadership in the downtown, select-service segment,” he said.

Developed by Cooper Hotels in 1999 via the conversion of a 100-year-old former office building listed on the National Register of Historic Places, the 119-room hotel is two blocks from Centennial Park and directly across from the Atlanta Fashion Mart.(middle left photo)

 Located at 161 Spring Ave. NW, it is the only Hampton Inn & Suites located in the heart of the downtown district and is within a short walking distance of The High Museum of Art, the Atlanta Aquarium (bottom right photo) , World of Coca-Cola, Georgia World Congress Center, the Georgia Dome, numerous major corporations and office buildings and two MARTA stations.

The hotel features a complete fitness center, a business center and 1,300 square feet of meeting space to accommodate groups of up to 75 people.


Ed Ansbro, Tel. 901-842-5307
Todd Solmson, Tel. 212-277-5608
Julie Tullbane, Daly Gray Public Relations, T 703-435-6293, F 703-435-6297,

Industrial Team at Southern Commercial Completes 79,000-SF New Lease in Orlando

ORLANDO, FL.(June 2, 2010) Principals William “Bo” Bradford, CCIM, SIOR and Tom McFadden, SIOR of Southern Commercial Real Estate Advisors completed a 79,000 square foot new lease at 6855 Presidents Drive, Orlando, Florida.

Bradford and McFadden negotiated the 5 year lease, representing the Landlord, Long Ridge Industrial Portfolio. The Tenant, SGA Holdings, Inc. was represented by Matt Sullivan with Colliers Arnold
Media Contact:  Celeste MacKenzie , 321-281-8503,

Jones Lang LaSalle Arranges 56,601-SF Renewal for Republic Indemnity Company of America in Encino, CA

LOS ANGELES, CA — Jones Lang LaSalle announced that Republic Indemnity Company of America, a major workers’ compensation insurance carrier, has commenced the new lease term for its 56,601 square foot lease renewal at the 418,432 square-foot Class A Encino Terrace (top left photo) , located at 15821 Ventura Boulevard in Encino, California.

Jones Lang LaSalle Managing Directors Alan Aufhammer and Tony Morales, and Executive Vice President Tony Acerra represented Republic Indemnity in the transaction. The 10-year lease was executed with building owner Douglas Emmett, represented in-house by David Hitzel.

”Republic Indemnity has had its Los Angeles corporate offices at Encino Terrace for over 20 years,” said Aufhammer.

 “After months of evaluating and thoroughly searching locations throughout the San Fernando Valley, we were able to assist Republic Indemnity in achieving cost saving solutions and funding for improvements to its space, while securing a long-term renewal in their current location,” said Aufhammer.

Encino Terrace is a six-story office building that extends the length of a full city block and is conveniently located near the San Diego and Ventura Freeways. The building is walking distance to an array of retail shops and restaurants, including the Sherman Oaks Galleria.

Contact: David Ebeling, Ebeling Communications, 949.278.7851,

Marcus & Millichap Promotes John Rodiles to Vice President

LONG BEACH, Calif., June 1, 2009 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has promoted John Rodiles (top right photo)  to vice president, according to Harvey E. Green (bottom left photo) , president and chief executive officer of Marcus & Millichap.

Rodiles currently serves as the regional manager of the Long Beach office, a position he will continue to hold.

“John’s superior management skills, brokerage expertise and excellent knowledge of the investment sales market make him a tremendous asset to our clients and investment specialists in Los Angeles County and throughout Southern California,” comments Green.

Rodiles joined Marcus & Millichap in 1991 as a sales intern. He became an agent in 1992 and sales manager of the Ontario office in 2004.

He worked as sales manager of the San Diego office before being promoted to the position of regional manager of the Portland office in 2005. Rodiles has been regional manager of the Long Beach office since 2006.

Rodiles graduated from California State University, Long Beach, with a Bachelor of Science degree in business finance.

Contact:  Stacey Corso, Public Relations Manager, (925) 953-1716

Grubb & Ellis Healthcare REIT II Acquires Long-Term Acute Care Hospital in Muskogee, OK

MUSKOGEE, Okla. (June 1, 2010) – Grubb & Ellis Healthcare REIT II, Inc. today announced that it has acquired Muskogee Long-Term Acute Care Hospital, (top left photo) a Class A, one-story long-term acute care hospital totaling approximately 37,000 square feet in Muskogee, Okla.

The $11 million acquisition closed on May 27.

Located at 351 South 40th St., Muskogee Long-Term Acute Care Hospital is in the midst of a thriving medical community: the 329-bed Muskogee Regional Medical Center (bottom right photo)  is within one-half mile, the 140-bed Jack C. Montgomery Veterans Affairs Medical Center (middle left photo) is within 1.25 miles, and Muskogee Community Hospital (middle right photo) , a newly built 45-bed community hospital, is within approximately five miles.

“We were particularly attracted to this property for two main reasons,” said Danny Prosky, president and chief operating officer of Grubb & Ellis Healthcare REIT II.

“First, it is in very close proximity to three significant medical centers which serve as a steady source of patients in need of long-term care.

"Secondly, it is leased to a credit tenant under a long-term triple net lease, providing the REIT with predictable and steady income that is immediately accretive and supportive of our stockholder distribution.”

The 41-bed Muskogee Long-Term Acute Care Hospital, which has an option to expand by ten beds, is an extended-stay specialty hospital for chronically ill and rehabilitation patients whose average length of stay is 25 days or more.

 Long-term acute care hospital patients are typically transferred from the intensive care units of traditional hospitals and require long stays for such diagnoses as pulmonary and/or tracheotomy care, ventilator weaning, critical care issues, infectious diseases, medically complex and extensive wound management.

The next closest long-term acute care hospital is approximately 40 miles away in neighboring Tulsa.

Built in 2006 on approximately 3.7 acres of land, the property is 100 percent occupied by Solara Hospital Muskogee, LLC under a triple net lease that runs through Nov. 29, 2021. The lease is guaranteed by Solara Healthcare, LLC, a privately owned operator of seven long-term acute care and other healthcare related facilities.

Muskogee Long-Term Acute Care Hospital was acquired from Muskogee LTACH, LLC, an unaffiliated third party represented by Philip Camp and Jay Miele of Shattuck Hammond Partners. Grubb & Ellis Healthcare REIT II financed the acquisition using cash proceeds received from its offering.

Contact:  Damon Elder, Senior Director, Communications, Grubb & Ellis Equity Advisors, LLC

1551 N. Tustin Avenue, Suite 200, Santa Ana, California 92705; 714.667.8252 ext. 52659
714.975.2659 direct; 714.356.1460 cell;