Monday, July 26, 2010

Arnstein & Lehr Partner Phillip M. Hudson III helps negotiate agreement with lender resulting in sale of South Beach hotel

MIAMI, FL – Phillip M. Hudson III (top right photo), a partner with Arnstein & Lehr LLP, lead the negotiations on behalf of the Lionstone Group regarding the underlying loan with FirstBank Puerto Rico that resulted in the sale of the Seville Hotel (middle left photo)  to Marriot and hotelier Ian Schrager for $57.5 million.

The previous owner of the Seville Hotel was 2901 Beach Ventures, which consisted of two equal partners, Lionstone Group and Fortune International Management. Hudson represented Lionstone Group.

Media reports indicate that Marriot and partner Ian Schrager plan to redevelop the 12-story, 400-room hotel into a new boutique brand called Edition.

“We are pleased that substantial real estate deals are closing once again in South Florida,” said Hudson, who heads up Bankruptcy and Litigation for the firm’s Miami office.

“Both local and out-of-town buyers are recognizing the unique values available here in Miami.”

This is Hudson’s second multi-million dollar deal that has closed in the past 30 days or so. He and his law partner, Hilda Piloto, (bottom right photo) negotiated the resolution of a $100 million multi-property real estate dispute on behalf of a developer in mid-June.

Contact: Don Silver or Lauren Simo, Boardroom Communications, (954) 370-8999, /

HFF arranges $2.3M loan for American Cancer Society in Norwalk, CT

NEW YORK, NY – The New York office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has arranged a $2.3 million construction and permanent loan for the completion of a new 13,400-square-foot building for the American Cancer Society, New England Division in Norwalk, Connecticut.

HFF senior managing director Al Epstein (top right photo)  worked on behalf of the American Cancer Society to secure the loan through The Bank of New Canaan, a wholly owned subsidiary of BNC Financial Group. Loan proceeds are being used to finance the new facility, which has an approximate cost of $5 million.

The new American Cancer Society facility is located on Richards Avenue in Norwalk on the former site of the Burndy Library of Science & Technology.

 The property will be dedicated as “The C. Anthony and Jean Whittingham Family Building”. The Whittingham family has devoted itself to the support of cancer care, particularly in Fairfield County, Connecticut. Foundation work is underway and the building will be complete and operational in 2011.

“There’s a real narrative here in taking the idea of a new facility and making it a reality," said Epstein.  

"One could start with the current difficult economic climate and the fact that so many people in the community did not hold back or make excuses because of that. At a time when few construction loans are being approved, the officers at The Bank of New Canaan really reached out to do this. A lot of credit goes to bank officers Heidi DeWyngaert, Peter Keller and Bob Palermo,”


Alvin J. Epstein, HFF Senior Managing Director, (203) 226-8171,
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500,

HFF secures $31.7M in debt and equity for Naperville Corporate Center in western Chicago

CHICAGO, IL – The Chicago office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has secured $31.7 million in financing and joint venture equity for the recapitalization of Naperville Corporate Center (bottom left photo), a four-building, 418,836-square-foot office property located in the western Chicago suburb of Naperville, Illinois.

HFF managing directors Jaime Fink (top right photo) and Mike Kavanau (top left photo)  worked on behalf of Transwestern Investment Company to secure the $23.4 million, adjustable-rate loan with Prime Finance Partners.

HFF engaged TriGate Capital, LLC, a private equity firm, to provide $8.3 million in joint venture equity for the recapitalization of the property.

Proceeds are paying off an existing first mortgage at a discount and providing capital for future tenant improvements and leasing commissions.

“We are excited to enter the Chicago market with this acquisition,” said Jeffrey Yarckin, (middle right photo) managing member of TriGate.

“The location of this property within the submarket is very strong as it benefits from direct access to the tollway in both directions. Also, we believe leasing will benefit from the amenities at the property and in the adjacent new Freedom Commons retail center.”

“Transwestern is pleased to partner with TriGate to recapitalize this asset," added Andy Hess, (lower left photo) senior vice president at Transwestern Investment Company.  

"Our team has created solid leasing momentum over the last 12 months, and we believe our new basis as well as our competitive advantage on expenses will attract tenants looking for quality space, location and amenities at low occupancy costs,”
TriGate Capital is a Dallas-based real estate investment firm that is focused on investing in real estate properties, real estate secured loans and securities, and real estate companies through transactions that emanate from the need of financial institutions and property owners to restructure.

TriGate is focused on investing its capital and its partners’ capital at attractive risk-adjusted returns by using its work-out, restructuring and real estate management skills to add value to its counterparties - lenders and other financial owners of real estate assets.

TriGate’s principals have invested in more than $10 billion of real estate assets, and the company has raised its inaugural fund to take advantage of changes occurring in the commercial real estate market.

 For more information about TriGate Capital, visit

Since its inception in 1996, Transwestern Investment Company has acquired interests in over 455 office, retail, industrial and multifamily properties representing a gross investment of nearly $11 billion.

The firm currently employs approximately 75 people and is based in Chicago with offices in Atlanta, Denver, Houston, Los Angeles and New York.

For more information about Transwestern Investment Company, visit

Jaime M. Fink, HFF Managing Director,(312) 528-3650,
Michael A. Kavanau, HFF Senior Managing Director, (312) 528-3650,
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500,

IDI Closes Leasing at 141 Knowlton Way in Savannah, GA

Atlanta, GA,  July 26, 2010 – IDI, a leading full-service industrial real estate company, has signed two new leases in the Savannah market totaling 75,040 square feet.

The leases, for 43,800 square feet and 31,240 square feet, bring 141 Knowlton Way in IDI’s Crossroads Business Center (top left photo) to full occupancy. Gulfstream Aerospace Corporation occupies the remaining 122,890 square feet in the building.

The Parrott Group’s distribution arm, Velocity Services South, LLC, the warehouse and distribution service provider for three Ashley Furniture HomeStores located in South Carolina and Georgia, signed the 43,800-square-foot lease in Suite 300 of 141 Knowlton Way.

The Parrott Group is scheduled to open its fourth Ashley Furniture HomeStore in Savannah in September 2010 and will use the space for storage and distribution of home furniture and accessories sold at their retail storefronts.

Store Supply Warehouse, LLC, a wholesaler of store fixtures and supplies to small, independent retailers, signed a 31,240 square-foot lease in Suite 200 of 141 Knowlton Way.

 The space will serve as the company’s new East Coast distribution center and will allow for ground transportation delivery to the majority of the company’s customer base within a two-day timeframe.

“Both tenants cited location, space size, curb appeal and landlord responsiveness as reasons they chose 141 Knowlton Way,” said Lisa Ward, (top right photo)  vice president of leasing for IDI’s Atlanta market office, which serves Savannah.

“We are pleased to have provided each of our new tenants with Class-A space to serve their warehouse and distribution needs and are happy to see the building at full occupancy.”

Lisa Ward and Cliff Dales (lower right photo)  of Colliers Neely Dales were the listing agents for the property and represented IDI in both leases. Brett Chambless of Chambless Partners, Inc. represented Store Supply Warehouse in the lease transaction and Velocity Services South did not use any outside representation.

160,380 square feet remains available at Crossroads Business Center in 155 Knowlton Way.

More information can be found at


Kim Hardcastle, Jackson Spalding for IDI, 404-214-0693,
Charlotte Marie Sturtz, Jackson Spalding for IDI, 404-214-3555,

Grubb & Ellis Healthcare REIT II Secures $25M Credit Facility with Bank of America

SANTA ANA, CA (July 26, 2010) – Grubb & Ellis Healthcare REIT II, Inc. today announced that it has entered into a $25 million secured revolving credit facility with Bank of America, National Association. The credit facility may be utilized to fund property acquisitions and for other general corporate purposes.

“This credit facility further strengthens our ability to execute our business plan and more rapidly expand the portfolio of Grubb & Ellis Healthcare REIT II,” said Jeff Hanson, (top right photo)  chairman and chief executive officer.

 “Particularly for a new REIT like ours, now is an exceptional time in the market cycle to acquire assets and Bank of America is supporting this effort.”

The credit facility matures on July 19, 2012, but may be extended at the option of Grubb & Ellis Healthcare REIT II for an additional year upon meeting certain conditions. The facility bears interest at a rate equal to LIBOR plus 3.75 percent or 5 percent, whichever is greater.

Grubb & Ellis Healthcare REIT II, Inc. intends to qualify as a real estate investment trust that seeks to preserve, protect and return investors’ capital contributions, pay regular cash distributions, and realize growth in the value of its investments upon the ultimate sale of such investments.

 Grubb & Ellis Healthcare REIT II is seeking to raise up to approximately $3 billion in equity and to acquire a diversified portfolio of real estate assets, focusing primarily on medical office buildings and other healthcare-related facilities.

Contact: Damon Elder, Phone: 714.975.2659,Email:

Grubb & Ellis  Represents Dwyer Products Corporation in 79,000-SF Industrial Lease

ROSEMONT, IL. (July 26, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that it represented Dwyer Products Corporation in the execution of a long-term lease agreement for approximately 79,000 square feet at Bridge Point Woodridge One (lower left photo), located at 1000 Davey Road in Woodridge from Bridgepoint Woodridge LLC.

Dwyer, a leading designer and assembler of custom compact kitchens and modular furniture systems, will utilize the facility as a showroom, assembly/distribution facility and its new corporate headquarters.

“Particularly given our recent acquisition of the Goelst By Dwyer product line of modular casework for acute care facilities, the building’s capacity to support our future growth needs was an appealing aspect of the property for us,” said Steve Svendsen, vice president and chief financial officer of Dwyer.

 “We’re pleased to be moving into a well-located building that will present a high-class image to our clients while also meeting our assembly and distribution requirements.”

Chris Lydon, SIOR, senior vice president, Industrial Group, and Sam Durkin, associate vice president, Industrial Group, represented the tenant. Jeff Galante of Lee & Associates represented the landlord.

“In its search for a larger facility to support its growth, Dwyer Products Corporation was in a position to take advantage of favorable market conditions to secure a newly constructed facility with tremendous visibility off of Lemont Road,” said Lydon. “The location allows for substantial growth over its previous headquarters in Wood Dale, which totaled 28,000 square feet.”

Developed throughout 2008 and 2009 by Bridge Development Partners, LLC, in partnership with Globe Corporation, Bridge Point Woodridge One is a state-of-the-art development project totaling approximately 264,000 square feet.

Contact: Erin Mays, Phone: 312.698.6735 Email:

Father-Son Pearlstein Team New Addition to Tenant Advisory Group
PHOENIX (July 26, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that the father-son team of Robert Pearlstein (lower left photo)  and Brent Pearlstein (lower right photo)  have joined the company as senior vice president and senior associate, Tenant Advisory Group, respectively.

"Bob and Brent bring tremendous experience and energy to Grubb & Ellis and their clients. I am pleased that they chose to be a part of our team,” said Pete Bolton, executive vice president and managing director of Grubb & Ellis’ Phoenix office.

Robert Pearlstein joins Grubb & Ellis with 16 years of experience in the commercial real estate industry. He spent 12 years of his career with CB Richard Ellis, specializing in retail leasing sales and development.

He left the firm in 2008 with the title of senior vice president and began Pearlstein Development LLC, a company specializing in retail development that he ran until joining Grubb & Ellis.

He began his career in 1994 with Midland Development Group in St. Louis. He holds a bachelor’s degree from the University of Missouri and is a member of CoreNet Global and NAIOP.

Brent Pearlstein began his career in 2009 with Cushman & Wakefield of Arizona where he served as an associate specializing in office tenant representation. He holds a bachelor’s degree from Arizona State University and is a member of CoreNet Global and NAIOP.

Contact: Julia McCartney, Phone: 714.975.2230, Email:

Grubb & Ellis to Hold 2010 Second Quarter Conference Call on August 10

SANTA ANA, CA. (July 26, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that it will host a live webcast to discuss its second quarter 2010 results on Tues., Aug. 10, 2010, at 10:30 a.m. Eastern Time.

The Company will issue its financial results before the market opens that morning.

The conference call will be webcast on the investor relations section of Grubb & Ellis' website at or may be accessed by dialing 1.866.578.5771 for domestic callers and 1.617.213.8055 for international callers. The conference call ID number is 26018455.

An audio replay will be available beginning at 1:30 p.m. ET on Tues., Aug. 10, until 7 p.m. ET on Tues., Aug. 17 and can be accessed by dialing 1.888.286.8010 for domestic callers and 1.617.801.6888 for international callers and entering conference call ID 65858047. In addition, the conference call audio will be archived on the Company’s website following the call.

Contact: Janice McDill, Phone: 312.698.6707, Email: