Tuesday, July 20, 2010

Worldwide Auction Realty Services Hosts Global Sale on Winter Garden, FL Estate Aug. 19

ORLANDO - Worldwide Auction Realty Services will host a global auction on Saturday, Aug. 19 to sell a new Winter Garden equestrian estate that is under construction and designer-ready with 75 percent of work completed.

Lori Chipps (top right photo), lead auctioneer for Worldwide Auction Realty Services, said the four-acre estate is located within the Savannah Ridge equestrian community in Winter Garden near Windermere.

The palatial seven-bedroom home offers 13,044 square feet of living space with 19,760 square feet under roof, and features seven bedrooms, seven full baths and four half-baths, a home theater, a game room, three fireplaces, eight-car garage and an attached 2,000 square foot mother-in-law suite.

The estate was originally appraised for $5.8 million, Chipps said. Current bids to complete construction, including an affinity edge pool, total approximately $700,000. Completion will take an estimated 90-120 days, Chipps added.

Erin Wanner (middle left photo),  a luxury home specialist at Stirling Sotheby’s International Realty, is representing the equestrian estate.

The suggested opening bid for the property is $475,000.

“The buyer will be someone looking for a fabulous equestrian estate home at a fraction of what it would cost to build from scratch,” Wanner said, “or a custom home builder or investor who wants to complete construction of the estate and resell it for a substantial profit.”

For a video tour of the Savannah Ridge equestrian estate, go to http://www.youtube.com/watch?v=VFxSZQZzmfg

Bids will be accepted in person, via telephone, and on the Internet. For more information: www.SavannahRidgeAuction.com.

For more information, contact:
Jon or Lori Chipps, Worldwide Auction Realty Services, 800-327-1048, lchipps@wwauctionservices.com;
Larry Vershel or Beth Payan, Larry Vershel Communications 407-644-4142

Morrison Commercial Real Estate Completes 3 Office Lease Transactions Totaling 30,094 SF

ORLANDO, FL (July 20, 2010): Greg Morrison (top right photo) , CCIM, SIOR, Principal of Morrison Commercial Real Estate, announced the completion of three lease transaction totaling 30,094± square feet.

On June 30th, Lisa Bailey (top left photo)  and Phil Marchese (lower right photo)  of Morrison Commercial Real Estate represented the Landlord in leasing 16,126± square feet to AA Gulf Coast Countertops at 2007 Viscount Row for sixty-six (66) months.

Bailey represented the Landlord for Edgewater North Commerce Park in leasing an 8,000± square foot space to Orlando Metropolitan Christian Center on June 1, 2010 for a total of forty (40) months.
 Morrison represented the landlord in renewing a lease for 5,968± square feet to Smith & MacKinnon, P.A. at the Citrus Center on June 17, 2010 for a total of two years.

Contact: Buffy Gillette, Phone: 407.219.3500, Email: bgillette@morrisoncre.com

David F. Zwang Joins Grubb & Ellis's Fairfield Office as Senior Vice President, Office Group

FAIRFIELD, N.J. (July 19, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that 27-year real estate veteran David F. Zwang (top right photo) has joined the company as senior vice president, Office Group.

“David has a tremendous track record providing real estate services to major multi-market corporations,” said Eric Stone, executive vice president and managing director of Grubb & Ellis’ Northern and Central New Jersey offices. “His realm of experience greatly enhances our corporate services platform.”

Zwang joins Grubb & Ellis from Cushman & Wakefield, where spent 17 years as director, Corporate and Brokerage Services, responsible for representing clients including Met Life, USI Corporation, Ames Tru-Temper and York Telecom Corporation in leasing and sales needs.

Previously, he was corporate leasing director with the Lansco Corporation, where he created and was responsible for overseeing the firm’s corporate services department. Throughout his career, Zwang has been involved in commercial real estate transactions totaling in excess of $750 million.

Contact: Erin Mays, Phone: 312.698.6735, Email: erin.mays@grubb-ellis.com

Grubb & Ellis to Participate in U.S. Department of Energy International Energy Efficiency Pilot Program

SANTA ANA, CA (July 20, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that it is one of eight major U.S. corporations, and the only commercial real estate services provider, selected by the U.S. Department of Energy to participate in the pilot program for the Global Superior Energy Performance Partnership.

 The Partnership is designed to drive continuous improvements in building efficiency through an international network of government agencies, national-level certification programs and other public/private sector organizations.

U.S. Secretary of Energy Steven Chu (middle left photo), along with his counterparts and colleagues from Japan, India, Canada and the European Commission, announced the program today at the Clean Energy Ministerial, a gathering of ministers from 24 governments, in Washington, D.C.

Jack Van Berkel, (middle right photo) Grubb & Ellis’ chief operating officer and president, Real Estate Services, also with David Susoreny, president, Corporate Services, Greg Cichy, senior vice president, Operations, and Michael Groppi, senior vice president, Energy, Sustainability and Technology Solutions, attended the event.

“The fact that the Department of Energy has invited Grubb & Ellis to be a part of this groundbreaking initiative underscores our leadership in energy efficiency and our commitment to sustainability,” said Thomas P. D’Arcy, (lower left photo) Grubb & Ellis’ president and chief executive officer.

 “We’re honored to take part in this important program and look forward to the measurable effects it will have on lessening the impact of commercial properties on the environment. Additionally, we believe our participation in this program will bring our clients long-term energy cost reductions and higher asset values.”

Grubb & Ellis is represented in the Department of Energy’s Commercial Real Estate Energy Alliance by Groppi, who co-chairs the organization’s Existing Building subcommittee, and Robert Sprinker, vice president, who serves as chairman of the HVAC subcommittee. The organization strives to promote technology that will reduce the energy consumption and greenhouse gas emissions of the commercial real estate market.

 Janice McDill,  Phone: 312.696.6707, Email: janice.mcdill@grubb-ellis.com
Erin Mays, 312.698.6735,  erin.mays@grubb-ellis.com

Metro Chicago Office Market Snapshot: Second Quarter 2010

The following summary is designed to provide a brief overview of the Chicago metro office market during the second quarter of 2010.

 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 erin.mays@grubb-ellis.com.


The region posted a total of 72,000 square feet of positive absorption during the second quarter. This amount slightly offset the negative net absorption posted in the first quarter. Net absorption was 680,000 square feet for the first six months of 2010.

The area currently has just 48,000 square feet of new development under construction – a fraction of the 5.8 million square feet under construction at the market’s peak in 3rd quarter 2007.

Average Class A asking rental rates for the region declined $0.41 from the first quarter to $29.49 per square foot.

Inventory of available sublease space saw a decline in the second quarter to 6.6 million square feet – down from 7.2 million square feet in the previous quarter and at just 53 percent of the peak level of sublease space available in 2002 after the previous recession.

The investment market has resurfaced, with 19 properties valued in excess of $1.3 billion trading during the first six months of 2010. This is 2.5 times the total volume in 2009.


The vacancy rate in the Chicago CBD office market remained unchanged from the prior quarter at 17.4 percent, with the market posting 12,000 square feet of positive absorption.

Class A average asking rental rates decreased by $0.13 to $36.79 per square foot, full service gross.

No new construction is underway in the CBD.


The vacancy rate crept to 25 percent, an increase of 10 basis points from the previous quarter, despite nearly 60,000 square feet of positive net absorption.

The increase is due in part to the delivery of the 119,000-square-foot Rosemont Corporate Center (middle right photo) , which is now partially occupied by Cisco’s corporate offices.

Just one building totaling 48,000 square feet is currently under construction in the I-88 East submarket.

Average Class A asking rental rates in the Chicago suburbs stood at $23.69 per square foot, a decrease of $0.34 from the previous quarter.

Analysis: The market has experienced a slight drop in unemployment and stabilizing vacancy rates; however, improvement in the office demand has yet to be seen.

Tenants are waiting for business to pick up, while landlords in a good capital position hold off on early renewals and new leases until rental rates increase.

 Landlords in a poor capital position are typically unable to make deals due to their struggle to fund tenant improvement allowances and other concessions.

The investment market has seen an increase in activity, though that activity is largely relegated to “trophies and train wrecks” – stable, well-located core assets with a full rent roll of credit tenants locked into long-term leases, or distressed assets priced well below replacement value.

 The pending sale of 300 N. LaSalle (bottom right photo)  indicates that there is plenty of capital available for low-risk investments; however, distressed properties are not coming to market in the volume expected due to banks’ unwillingness to take the financial penalties on their balance sheets associated with foreclosure.

To access the full Chicago Metro Office Trends report and other Grubb & Ellis research publications, visit www.grubb-ellis.com/research.

HFF closes $57.5M sale of former Seville Beach Hotel in Miami Beach

MIAMI, FL – The Miami office of HFF (Holliday Fenoglio Fowler, L.P.) has closed the sale of the former Seville Beach Hotel (top left photo)  in Miami Beach, Florida.

HFF executive managing director Manny de Zárraga (bottom left  photo), senior managing directors Dan Carlo (top right photo) and Daniel Peek (top left photo) , and director Jaret Turkell  represented the 2901 Beach Ventures, LLLP ownership group, on an exclusive basis.

The venture is a partnership between affiliates of Fortune International and Lionstone Group. An affiliate of Marriott International purchased the site for $57.5 million in cash. Both Fortune and Lionstone have been retained by Marriott on a consulting basis for the new project.

“The sale of the Seville is among the most significant hotel sale transactions of 2010 in the southeast United States. This sale highlights the exceptional confidence held by institutional investors in the Miami Beach hospitality investment sector,” said Peek.

Located along Collins Avenue between 29th and 30th Streets in Miami Beach, the hotel and development sites encompassed nearly 4.5 acres on both the east and west sides of Collins Avenue (bottom right photo).

The property included 350 feet of frontage along the Atlantic Ocean and 100 feet of frontage along Indian Creek Drive.

The east lot is improved with the former Seville Beach Hotel, a 12-story structure that was gutted in anticipation of a redevelopment program. The site has the ability of being developed as a residential or hotel project or any combination thereof.

“Originally built in 1955, the Seville Beach Hotel was for many years a global playground for the rich and famous, and was considered one of the most prestigious hotels in Miami Beach,” said de Zárraga.

“This was a rare opportunity to acquire a historically significant, trophy asset with diverse redevelopment potential.”

“Real estate along South Beach rarely changes hands, with most of the properties considered to be generational assets,” added Carlo. “The sale of a property of the Seville’s prominence is unique.

" In addition, Miami Beach is woefully underrepresented within the major hotel brands. As a result, the Seville was highly attractive to a wide variety of investors, including a number of high-quality brands that could make their mark in Miami Beach and restore the Seville Beach Hotel to its rightful position as a leader in the South Beach lodging market.”


Manuel A. DeZarraga, HFF Executive Managing Director, (305) 448-1333, mdezarraga@hfflp.com
J. Daniel Carlo, HFF Senior Managing, (305) 448-1333, dcarlo@hfflp.com
Daniel C. Peek, Director HFF Senior Managing Director, (305) 448-1333, dpeek@hfflp.com
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500, kmurphy@hfflp.com

HFF closes sale of 539-unit self storage facility in Houston

HOUSTON, TX – The Houston office of HFF (Holliday Fenoglio Fowler, L.P.)  has closed the sale of Safe-Keeping Self Storage, a 539-unit self storage facility in southeast Houston, Texas.

The HFF investment sales team was led by senior managing director Aaron Swerdlin (middle right photo) and managing director Doug McCarron (middle left photo) who exclusively represented the seller, Weiss Realty, LLC.

A subsidiary of WEDGE Real Estate Holdings purchased the facility for an undisclosed amount.

Safe-Keeping Self Storage is located at 900 West Nasa Parkway close to Interstate 45 in the southeast Houston suburb of Clear Lake. The property has 50,332 square feet.

In addition to the Safe-Keeping transaction, the HFF Self Storage Group has completed several recent property transactions including a 67,923-square-foot facility in Clifton, New Jersey and a 42,313-square-foot facility in Brooklyn, New York.

The group also closed the financing of a three-property portfolio in Houston, in which associate director Colby Mueck and senior managing director Aaron Swerdlin represented the borrower.

WEDGE Real Estate Holdings owns, leases and manages a diversified portfolio of real estate including office buildings, hotels, self storage facilities and parking garages.


Aaron A. Swerdlin, HFF Senior Managing Director, (713) 852-3500, aswerdlin@hfflp.com
Kristen Murphy, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com

Chris Drew joins HFF Miami as an associate director

MIAMI, FL – HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has hired Chris Drew as an associate director in the debt and structured finance capital markets group in its Miami office.

Drew will focus on originating debt and structured finance transactions throughout the southeastern United States. He has more than six years of experience in commercial real estate and most recently worked at Cushman & Wakefield where he was an associate in the capital markets group and prior to that, an associate in the commercial brokerage group.


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

Southern Commercial Completes 13,800-SF New Lease in Orlando's Lee Vista Business Center

ORLANDO, FL.--  Principals Tom McFadden, SIOR and William “Bo” Bradford, CCIM, SIOR of Southern Commercial Real Estate Advisors completed a 13,800 square foot new lease at 7443 Emerald Dunes Drive, Orlando, Florida (Lee Vista Business Center, top left photo)).

McFadden and Bradford represented the Landlord, McDonald LeeVista D, LLC. The Tenant, Arbon Equipment Corporation, Inc. was represented by David Newton of Lee & Associates.

Media Contact: Celeste MacKenzie, Southern Commercial Real Estate Advisors, 321-281-8503 20 N. Orange Avenue, Suite 605,Orlando, FL 32801