Friday, September 30, 2011

DDR Completes $169 Million of Strategic Transactions in the Third Quarter of 2011



BEACHWOOD, OH /PRNewswire/ --DDR Corp. (NYSE: DDR)  announced that it has acquired three prime shopping centers for $110 million and disposed of $59 million of non-prime assets in the third quarter.

 DDR continues to successfully recycle capital from asset sales into the acquisition of prime shopping centers, and has completed $150 million of acquisitions and $166 million of dispositions year to date.

 Consistent with previously announced acquisitions, all three third quarter additions have a demographic profile and projected compounded annual growth rate that will enhance the existing DDR prime portfolio metrics and continue to improve overall company asset quality.


DDR acquired two prime assets in Charlotte, North Carolina, Cotswold Village (top left photo) and The Terraces at SouthPark (middle right photo), for $85 million and one prime asset, Chapel Hills East (middle left photo), in Colorado Springs, Colorado for $25 million.

The assets total 500,000 square feet of gross leasable area and range between 96% and 100% leased.

In addition, the assets are occupied by many high quality retailers typically found in DDR shopping centers including Whole Foods, Marshalls, PetSmart, Best Buy, Harris Teeter, ULTA, Old Navy, and DSW.

 With the inclusion of the recently acquired assets, DDR expanded its presence in the Charlotte trade area to nine prime assets representing 2.2 million square feet and the Denver trade area to nine prime assets representing 2.8 million square feet.

In connection with these acquisitions, DDR assumed three existing mortgage loans as follows:

  • Cotswold Village - $50.8 million at 5.83%, maturing in 2016
  • The Terraces at SouthPark - $6.6 million at 5.72%, maturing in 2012
  • Chapel Hills East - $9.6 million at 5.24%, maturing 2021
  • As previously announced in the third quarter, and further enhancing the Company's portfolio, DDR is also under contract to acquire Polaris Towne Center (lower right photo) in Columbus, Ohio, for $80 million.
  • Polaris is a 700,000 square foot prime asset anchored by Target, Lowe's, Kroger, Best Buy, and TJ Maxx. It is anticipated that this transaction will close in the fourth quarter of 2011.
 The Company disposed of ten non-prime assets and seven land parcels during the quarter for aggregate proceeds of approximately $59 million, all of which was the Company's share.

 An additional $209 million of assets are currently under contract for sale, of which the Company's share is $196 million.

Year to date, the Company has generated gross proceeds of $214 million from asset sales, of which the Company's share is $166 million. Since 2007, DDR has completed $2.3 billion of dispositions of primarily non-prime assets.

Daniel B. Hurwitz (top right photo), president and chief executive officer of DDR, commented, "We are pleased with the continued execution of our capital recycling strategy and are very confident that these prime acquisitions will enhance our compounded annual growth rate and net asset value.

“Our successful strategy of funding acquisitions with disposition proceeds will continue and obviates the need to access common equity to support portfolio enhancement initiatives."

Additional information about the company is available at www.ddr.com.

CONTACT: Marty Richmond, Vice President, Marketing and Corporate Communications, +1-216-755-5500, or Samir Khanal, Senior Director of Investor Relations, +1-216-755-5500


Edens & Avant Purchases Union Planters Plaza Center located in one of Broward County's most vibrant retail corridors in South Florida


 FORT LAUDERDALE, FL  /PRNewswire/ -- Edens & Avant, one of the nation's leading retail real estate owners and developers, announced today that it has purchased Union Planters Plaza (top left photo), a 155,000 SF Whole Foods anchored retail center in Fort Lauderdale, Florida.

Located in one of Broward County's most active regional corridors, Union Planters Plaza was originally built in 1989 and expanded in 2000 and sits on a total of 14.6 acres. Union Planters Plaza is the 25th retail center owned by Edens & Avant in the Florida market, including 12 centers in South Florida.

"With its close proximity to both downtown Fort Lauderdale as well as being adjacent to some of the area's most established neighborhoods, Union Planters Plaza fits perfectly into our portfolio of community focused retail centers located in major urban markets," said Jami Passer (middle right photo), Managing Director, Edens & Avant.

"This is a great retail destination and it has played an important part in the lives of Fort Lauderdale residents as well as being a local landmark for those visiting the region. We are extremely pleased to add this property to our growing South Florida portfolio and continue to enhance it through a community oriented merchandising mix and adding several intimate spaces for neighbors to reconnect." 

Union Planters Plaza will soon welcome Dick's Sporting Goods as a co-anchor, with a scheduled opening in late November. Follow Union Planters Plaza on Facebook at www.facebook.com/unionplantersplaza or on Twitter @UPlantersPlaza.

 For additional information about the Company and its retail real estate portfolio, please visit http://www.edensandavant.com/. 

Or follow on Twitter @EdensandAvant.

CONTACT: Robbie Robertson, Communications Director, +1-803-744-2446, rrobertson@edensandavant.com

Marcus & Millichap Capital Corp. Finances Six-Unit Apartment Building in Brooklyn’s Carroll Gardens



BROOKLYN, NY – Marcus & Millichap Capital Corporation (MMCC) has arranged the financing for 592 Henry Street (top left photo), a six unit apartment building with a New Jersey based bank.

Sean Mooney, Associate Director of the firm’s Manhattan office had prepared the financing.

The loan amount was $924,000 and the transaction closed in 65 days. The cash out proceeds are being used by the owner to take advantage of other investment opportunities in the market. 

The interest rate is fixed at 4.50 percent for a period of five-years with a five-year option to renew. The prepayment penalty is declining and the owner has the ability to refinance with no penalty in the last 90 days of the loan. The amortization is 30-years and the loan is non-recourse.


Press Contact: J.D. Parker, Vice President - Regional Manager, Manhattan
(212) 430-5100

Marcus & Millichap Capital Corp. Finances 17-Unit, Mixed-Use Apartment Building in Prospect Heights, Brooklyn, NY



 BROOKLYN, NY – Marcus & Millichap Capital Corporation (MMCC) has arranged the financing for this 17 unit mixed-use apartment building (bottom left photo) located on Franklin Avenue in Brooklyn, New York.

Sean Mooney (top right photo) Associate Director of the firms Manhattan office, had prepared the financing for this building. 

The note on the subject property was sold from Capital One Bank to an opportunistic investor who was attempting to foreclose on asset.  The property was ½ vacant due to a fire and the insurance proceeds were not enough to cover reconstruction.

The loan amount was $900,000 and proceeds were used to pay off the current note holder and finish construction. This transaction was challenging due to the vacancy, fire damage and foreclosure action. Sean Mooney worked closely with the borrower’s attorney to expedite the financing.

The property was financed by a local New York City bank on a three-year term at a 5.5 percent rate. The loan is full recourse and based on a 25-year amortization.


Press Contact: J.D. Parker, Vice President - Regional Manager, Manhattan
(212) 430-5100

David Luther Promoted to National Director of Marcus & Millichap’s National Hospitality Group


 HOUSTON, TX – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has named David Luther (top right photo) national director of the firm’s National Hospitality Group (NHG) and regional manager of the firm’s Houston office, according to John J. Kerin (bottom right photo), president and chief executive officer.

 Luther will also continue to manage Marcus & Millichap’s office in Fort Worth, Texas, a position he has held since October 2009. 

“David’s exceptional managerial skills and his track record as a highly successful sales professional make him a tremendous asset for our Houston-area clients and a great resource for our agents,” says Kerin. “He has extensive knowledge of the national hospitality market and will take a leading role in providing client services to hospitality investors nationwide.”

“The Houston office has made Marcus & Millichap the dominant force in the Texas mid-market hotel investment sales market,” says Luther.

“I look forward to delivering our dynamic and effective services for the acquisition and disposition of investment properties to investors nationwide and to providing leadership and support to all of our agents in Houston.”        

Luther began his career with Marcus & Millichap as a multifamily commercial property investment specialist in the firm’s Fort Lauderdale office in 2001. He earned the firm’s prestigious National Achievement Award (NAA) Chairman’s Club award in 2005, was honored as the featured speaker at Marcus & Millichap’s 2006 East Coast/Midwest Sales Meeting and was inducted as a senior investment associate in July 2007.

 Luther became a vice president investments in January 2008. He is a five-time NAA recipient, a former director of Marcus & Millichap’s National Multi Housing Group and has been the firm’s research manager for South Florida.

Luther is a graduate of Southern Methodist University with degrees in real estate finance and mathematics.

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

Colliers International Completes a 45,560-SF Industrial Sale for $4.055 Million in Brea, CA



BREA, CA. – Colliers International, the second largest global real estate services organization, has completed the sale of a 45,560-square-feet industrial property located at 1425 Moonstone Street, Brea Calif. The transaction is valued at $4.055 million.

 Ian Britton (top right photo), Senior Vice President, and John Long (middle left photo), Associate, both based in Colliers’ Orange County office along with Tom Dorman of CBRE represented the Seller, PSIP CAM Brea LLC, an affiliate entity of Los Angeles-based Cohen Asset Management, Inc..

 The Buyer,Harmony Properties, LLC, was represented by Luke Hudson of Lee & Associates in Orange.

 “Attractive SBA financing, strong user demand and a lack of quality inventory available for sale has contributed to the overall success of the project,” said Britton.  “Brea has the unique ability to draw industrial users from North Orange County, Mid Counties as well as the City of Industry.”

 This sale marks the 3rd transaction completed this year within the newly branded “Brea Canyon Commerce Center”, a six (6) building project recently purchased by Cohen Asset Management’s affiliate. 

The properties range in size from 19,779 SF to 70,492 SF and were previously owned and occupied by Simpson Manufacturing.  The ownership has reconditioned the buildings and recently adjusted the lot lines to create large fenced yard areas for industrial users. 

Other upgrades include new modern landscape, new exterior and interior paint, resurfaced parking areas, modern architectural treatments and new office fixtures.  The buildings have appeal to a wide range of industrial users due to the attractive M2 zoning, heavy power, functional loading and business park setting.
  

Contact:
Angela S. Hwang
Regional Marketing Coordinator | Greater Los Angeles
Dir +1 213 532 3258 | Mob +1 310 867 4105
Main +1 213 627 1214 | Fax +1 213 327 3258

Colliers International
865 S Figueroa St., Suite 3500 | Los Angeles, CA 90017 | USA
www.colliers.com



$6.6 Million Loan Arranged by Mark One Capital in Hollister, CA




HOLLISTER, CA – Mark One Capital, a subsidiary of Marcus & Millichap Capital Corporation (MMCC), has arranged $6,600,000 in refinancing for a 235-pad manufactured housing property in Hollister.

David Campbell, a commercial loan associate in the firm’s Palo Alto office, arranged the loan.

“The transaction was a cash-out refinance to facilitate the purchase of another property,” says Campbell. “The complicated ownership structure, lack of documentation and ongoing required improvements at the property required multiple waivers.”

“Mark One Capital’s long-term relationship with the lender helped us work through the hurdles in a timely manner,” adds Campbell. “Our clients were pleased to obtain an interest rate that is approximately 1 percent lower than rates offered by other lenders at the time.”

The 10-year loan is amortized over 25 years with a fixed interest rate of 4.55 percent.

“Owners with equity to utilize continue to take advantage of buying opportunities,” Campbell concludes.

Contact: Stacey Corso, Public Relations Manager, (925) 953-1716
www.mmCapCorp.com

Newport Marina Apartments in California Commands $14.85 Million





NEWPORT BEACH, CA – Institutional Property Advisors (IPA), a recently formed multifamily brokerage division of Marcus & Millichap serving the needs of institutional and major private investors, has arranged the sale of The Newport Marina Apartments (top left photo), a 64-unit apartment complex in Newport Beach. The sales price of $14,850,000 represents $232,031 per unit.

 Stewart I. Weston (middle right photo), a senior vice president investments of IPA, represented the seller, Newport Marina LLC, in this transaction. Weston also represented the buyer, Newport Waterfront Apartments LLC, which is managed by a Los Angeles-based investment group.   

Newport Marina apartments is Located at 919 Bayside Drive in Newport Beach.  Constructed in 1964, the property is situated on 4.09 acres of waterfront land with expansive bay views with nearly 1,100 feet of water frontage on Newport Harbor and Promontory Channel.

The low-density project includes 64 large, condominium-style residences within 14 buildings surrounded by coral trees and lush landscaping, a private beach and boat slips that can accommodate up to 34 boats.

“The building was sold subject to a favorable ground lease on an exceptional bay front property,” says Weston.  “Properties like this don’t come around that often.

 “The ground lease does not expire for another 32 years, giving the new owner ample time to enjoy his piece of paradise.

"Over the long term, the rents at Newport Marina will continue to out grow other prime markets, which should provide the owner with an above market yield; especially because of its waterfront location on one of the world’s most desirable harbors, a lack of comparable bay front multifamily properties and the high barriers to entry in this Orange County submarket,” he adds.


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

Brooklyn, NY Hospital Building Offered at $18 Million


  

 BROOKLYN, NY – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has retained the exclusive listing for St. Mary’s Hospital (top left photo), a seven-story, 304,763-square foot, full-block-front building in Brooklyn. The listing price of $18 million represents $59 per square foot.

 Barry Kimchy, an associate vice president investments in the firm’s Manhattan office, is representing the seller, a local investment group.

 “St. Mary’s Hospital is being offered significantly below replacement cost, which makes it extremely attractive as a hospital or as a redevelopment project,” says Kimchy. “The building can be repositioned for use as a multifamily property, as student housing or as an assisted-living facility.”

The property is located at 170 Buffalo Ave. in Brooklyn’s Prospect Heights/North Crown Heights area.

St. Mary’s was constructed in 1979 with state-of-the-art utilities, including HVAC and an electric self-generator. The property features four sidelights on the above-grade floors, four large passenger elevators and one freight elevator.

The building measures 239 feet by 155 feet, which yields approximately 205,139-square feet above grade plus a 96,552-square foot basement and two sub-basements. The site features a 225-foot by 192-foot garden, which contains additional air rights and could be converted into a parking lot and a 48-foot by 64-foot, 3,072-square foot freestanding building that was used as an ambulance garage. 

St. Mary’s will be delivered vacant with approximately 42,000 square feet of additional air rights.

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

Thursday, September 29, 2011

Morgan Stanley Real Estate Investing and The Witkoff Group Partner to Acquire and Redevelop 1107 Broadway in Manhattan



NEW YORK, NY (BUSINESS WIRE)--Morgan Stanley Real Estate Investing (MSREI) announced today the acquisition of 1107 Broadway  (the former Toy Building North), a 350,000 square foot office building located along the west side of Madison Square Park in Manhattan, in partnership with The Witkoff Group. MSREI and The Witkoff Group plan to convert the vacant building, which was acquired through a short sale process, into luxury condominiums.

“1107 Broadway is a terrific property that we are thrilled to add to our portfolio,” said John Klopp, Co-Chief Executive Officer and Co-Chief Investment Officer of MSREI. “We look forward to partnering on this project with The Witkoff Group, a premier developer and operator with proven execution capabilities.”

“The Witkoff Group’s aim is to have 1107 Broadway set the mark for luxury residential properties in the Madison Square Park/Flatiron district,” said Steven Witkoff (lower left photo) Chief Executive Officer of The Witkoff Group.

 “Throughout Manhattan there is only a limited supply of park-fronting condominiums, so the opportunity to develop a property with unobstructed views of Madison Square Park and unique physical attributes is an exciting one.

"1107 Broadway has an excellent location in a popular neighborhood that is a live/work destination of choice, given its proximity to both Midtown and Downtown Manhattan and its outstanding public transportation access.”

Founded in 1997, The Witkoff Group is a real estate investment and full-service development firm headquartered in New York City, whose portfolio includes office, various land and hotel development interests, and residential buildings.

Witkoff specializes in identifying and acquiring value added development deals and undervalued properties that require repositioning and large capital renovation programs. Over the last 15 years, Witkoff has acquired over 60 buildings totaling approximately 18 million square feet in all major central business districts throughout London and the U.S., various hotels, and over 12,000 residential units, representing a total cost of approximately $7 billion.


Contacts
Morgan Stanley
Media Relations:
Matt Burkhard, 212-761-2444


Large Assisted Living Facility in Hawaii Goes up for Sale



CHICAGO, IL (BUSINESS WIRE)--The real estate brokerage firm of Marcus & Millichap has been retained on an exclusive basis to handle the sale of an institutional quality assisted living facility located on the Big Island of Hawaii.

The 125+ unit community was built in 2001 and is situated on approximately five acres just blocks away from the Ocean. Approximately 110 units are designated for assisted living and the remaining are designated for memory care. Occupancy has been trending up over the past twelve months, and the property is in excellent condition.

Jacob Gehl (bottom right photo)and Ben Firestone of Marcus & Millichap’s Chicago office has been hired and are working in cooperation with Ron Teves Marcus & Millichap’s Hawaii Broker of Record. All bids are due by October 21, 2011, and any interested parties should contact William Robinson for more information. Wrobinson@marcusmillichap.com or 312-327-5400

Marcus & Millichap Real Estate Investment Services is the largest firm with a group specializing in senior housing brokerage services in the nation.

Founded in 1971, the firm has perfected a powerful system for marketing properties that combines product specialization, local market expertise, the industry's most comprehensive research, state-of-the-art technology and relationships with the largest pool of qualified investors nationally. For more information on our senior housing group please visit www.mmseniorhousing.com .

Contacts
W. Walker Robinson Jr
Operations Director
Senior Housing Group of Marcus & Millichap
333 W. Wacker Drive, Suite 200
Chicago, IL 60606

Essex Realty Group Brokers Sale of Mixed-Use Building in Chicago



 CHICAGO, IL–  Sept. 29, 2011.   Essex Realty Group, Inc. is pleased to announce the sale of 7453 N. Western (top left photo) in the West Ridge neighborhood of Chicago, Illinois. The property, constructed in 2007, consists of six condo-quality 3-bedroom/2-bathroom apartments and two first floor commercial spaces.

 Doug Fisher and Matt Welke of Essex represented the seller in the transaction. Jim Darrow and Jordan Gottlieb, also of Essex, represented the buyer. The price was approximately $1,025,000.

 Essex Realty Group, Inc. specializes in the sale of investment real estate throughout the Chicago metropolitan area.

If you would like more information, please call Doug Imber at 773.305.4902 or e-mail him at dougimber@essexrealtygroup.com
.

CBRE Presents Multi-Housing Market Update: South Florida



MIAMI, FL--The CBRE Multi-Housing Private Capital Group is pleased to present the Fall 2011 Multi-Housing Market Update. This report is geared towards South Florida private capital owners and investors and includes key local trends, sale comparables, statistics and financing guidelines. Highlights of the report include:

  • In Miami-Dade average apartment rents are above the record high rents. We anticipate Broward rents to be at record levels within the next year.

  • Improving rents and occupancies is translating into higher net operating income (NOI's) for many multi-housing properties.
 
  • In South Florida there are only 62 multi-housing communities of 2000 or newer vintage. The limited amount of multi-housing product built in the last ten-years has led to a surge in new multi-housing development opportunities. In South Florida, we are tracking 62 development deals totaling 18,000 units.

  • Cap rates for Class A product range between 4.75% to 5.75%, Class B between 5.50% to 6.50% and Class C between 7.00% to 8.50%. During the first eight months of 2011, there were $561 million in multi-housing sales in South Florida. This is down slightly from 2010, but an increase of more than 300% from 2009.

  • Local and foreign investors are aggressively seeking multi-housing proeprties and premium pricing is being placed on the desirable assets in South Florida.
  • We trust you find the report useful. As always, please feel free to reach out to us with any multi-housing requirements.

Contact:

Calum Weaver
Private Capital Group
Multi-Housing
CBRE
305.381.6439

 Richard Tarquinio
Private Capital Group
Multi-Housing
CBRE
561.393.1675

13% Of New South Florida Condos Owned By Primary Users




MIAMI, FL--Only 13 percent of the more than 43,200 South Florida coastal condo units created and sold since the real estate boom began in 2003 are owned by primary users who have filed for tax savings and added property protection under the state’s Homestead Exemption legislation, according to a new report from CondoVultures.com.

The percentage of primary users could move even lower as investors and second-home buyers – who do not typically qualify for Homestead Exemption benefits – are the suitors most likely to acquire a majority of South Florida's 5,400 unsold developer units near the coast as of the second quarter of 2011, according to an analysis based on the Sept. 29, 2011 report from the Condo Ratings Agency™.

 “Analysts have long suspected that investors and second-home buyers are driving the current trends in the South Florida condo market,” said Peter Zalewski (lower left photo), a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.

 “This report finds that primary users account for only about one out of every 10 condo transactions in a new project in South Florida’s seven largest coastal markets.

“Foreign investors with strong currencies and domestic second-home buyers are clearly the lifeblood of the South Florida coastal condo market right now from Greater Downtown Miami north to Downtown Fort Lauderdale up to Downtown West Palm Beach. 

“Given the report’s findings, it is quite possible that a majority of the coastal condos built during the South Florida real estate boom are now being occupied by renters.”

Determining the ratio of renters versus primary users – a key criterion for conventional financing - in a condo project is a challenging task as no formal paperwork is required to be filed with an independent third party or the government, according to a new CondoVultures.com report.

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com

$10 Million Redevelopment Opportunity Listed in Washington, DC




 WASHINGTON, DC – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has retained the exclusive listing for a 55,860-square foot redevelopment opportunity in downtown Washington, D.C. The listing price of $10 million represents $179 per FAR.

Stacey Milam (middle right photo), a first vice president investments, and Peggy Brooks Smith (lower left photo), an associate vice president investments, both in Marcus & Millichap’s Washington, D.C. office, are representing the seller, an Asia-based corporation that has owned the property for close to 50 years.

“This is an extremely rare redevelopment opportunity in a highly sought after neighborhood,” says Smith. “The property is zoned DD/C-4, which is high-density commercial zoning in the downtown core. The site has tremendous potential as a mixed-use retail and residential property or as a boutique hotel,” adds Smith.

“The downtown development overlay provides additional incentives and requirements to help create a balanced mix of uses,” says Milam “With the incentives, the site could yield a total of 55,860 buildable square feet.”

The property is located at 740 6th St. NW (top left photo) in D.C.’s Chinatown neighborhood, just south of the intersection of H Street and 6th Street. The building is on the same block as the Verizon Center and two Gallery Place-Chinatown metro station entrances, which serve the Red, Yellow, and Green lines.

740 6th Street was developed in 1958 on a 5,586-square foot lot. The property contains nine commercial rental units that are all currently occupied. All of the leases will expire by the end of 2013.

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

Essex Realty Group Brokers Sale of 20-United Multi-Family Building in Chicago





CHICAGO, IL – Sept.  29, 2011.   Essex Realty Group, Inc. is pleased to announce the sale of a 20 unit walk-up style apartment building located in the Lincoln Square neighborhood of Chicago, Illinois.

2446-56 W. Catalpa (top left photo) consists of 2 one-bedroom garden units, 12 one-bedroom and 6 large one-bedroom units.

 Doug Imber and Matt Welke of Essex represented the seller in the transaction.

 Essex Realty Group, Inc. specializes in the sale of investment real estate throughout the Chicago metropolitan area.

If you would like more information, please call Doug Imber at 773.305.4902 or e-mail him at dougimber@essexrealtygroup.com

Crossbeam Capital Acquires 360-Unit Summitt Ridge Apartments in Denver, CO



                                
BETHESDA, MD ---Crossbeam Capital LLC of Bethesda, Md. has acquired Summitt Ridge (top left photo), a 94% occupied, 360-unit mid-rise apartment community in Denver, CO. from Trilogy Real Estate Group of Chicago for an undisclosed price.

The property at 8330 East Quincy Ave. has a class A location in Southeast Metro Denver, off Interstate 225 less than a mile from the Denver Technology  Center, within 10 miles of downtown Denver and close to Inverness Business Park, Buckley Air Force Base and the Fitzsimmons Medical Campus. Fitzsimmons is home to the University of Colorado Health Sciences Center, Childrens' Hospital and the Colorado Science and Technology Park.

“Denver is showing exceptionally strong occupancy and rent growth trends, driven in large part by the market’s continuing expansion of the technology and health care sectors,” said Matt Peterson (middle right photo), Denver-based acquisition manager for Crossbeam Capital.

“We’ve been tracking the market fundamentals consistently and are very fortunate to enter it with an asset purchased at a significant discount to replacement cost—a large multifamily property which can be renovated and repositioned in keeping with our value-add strategy.

“The deal’s prime appeal was Summitt Ridge’s proximity to the Denver Tech Center, the largest concentration of technology offices in a five-state region and a major employment hub,” adds Peterson. “That, combined with its location near two light rail stations, expanding health care employers and to a myriad of shopping and dining conveniences including Cherry Creek Mall, sold us.”

Crossbeam Capital, together with its operating and redevelopment affiliates, Houston-based Concierge Management Services (CMS) and Crossbeam Construction Co. (CCC), has acquired eight multifamily properties nationwide in the past 12 months.

 The assets total 2,200 rental units with a market value exceeding $150 million. Last December alone, Crossbeam six large apartment acquisitions in 30-days to accommodate sellers and lenders seeking to dispose of under-performing properties by year-end

David Martin, managing partner/Mountain States and Pamela Koster (lower left photo), partner in the Denver office of Moran & Company, a commercial brokerage specializing in multifamily assets, represented the seller, Chicago-based Trilogy Real Estate Group.

“Summitt Ridge was widely marketed. We went through an extensive bidding process but Crossbeam had the best combination of pricing and certainty of execution and that’s what led Trilogy to accept their offer,” says Martin. “With the closing, Crossbeam proved themselves by doing exactly what they said they would do.”

The Moran broker confirmed that Summitt Ridge “A-plus location” generated heavy interest from potential buyers. “In this market, proximity to jobs is a leading determinant when an apartment renter is looking for a place to live.”

Built in 1980, the apartment community has a wide array of amenities which will be upgraded to resort style, including basketball and tennis courts, a large pool, outdoor barbecue facilities, an expansive clubroom with billiards, fitness studio with yoga center and a full service business center.

The lifestyle and livability at Summitt Ridge will be further enhanced by implementing the Crossbeam / Concierge signature renovation strategy, says Peterson.  The one and two bedroom floor plans, which average a spacious 921 square feet, will undergo a series of improvements to the apartment homes including completely renovated kitchens, upgraded baths and new lighting, flooring and color schemes.  Additional enhancements will be made to the landscaping, signage and fa├žade.

Concierge Management Services will manage the apartment community and Concierge Construction Company will oversee the renovation.

Meantime, Rich Devaney (middle right photo), CEO of Crossbeam, says the firm is expanding its acquisition team in anticipation of heavier bank REO, lender and owner year-end disposals of financially-underperforming, value-add multi-family communities. Noah Drever of Concierge Asset Management, which merged with Crossbeam last year, is joining the real estate investment firm to work with Brad Blash, chief business officer who heads Crossbeam’s acquisition program.

“Our mission it to give sellers deep due diligence and swift, smooth closings so they can get a problem asset off their books,” said Devaney.

Contacts:
Jennifer Farthing, 240.223.1679, jfarthing@crossbeamcapital.com
Chris Barnett, 415.921.5092  cbarn@aol.com

Wednesday, September 28, 2011

HFF secures $32.25 million first mortgage financing for The Grant Building in Pittsburgh, PA


                                        

PITTSBURGH, PA – HFF announced today that it has secured a $32.25 million first mortgage financing for The Grant Building (top left photo), a 37-story, 461,935-square-foot office building in Pittsburgh’s central business district.

Working exclusively on behalf of McKnight Realty Partners, HFF placed the 10-year, 5.25 percent, fixed-rate loan with Nationwide Real Estate Investments.  Loan proceeds were used to refinance the acquisition and renovation loan.

  This is the second financing HFF has secured on behalf of McKnight through Nationwide; earlier in 2011, a $15.5 million financing was arranged for 615 Alpha Drive in Pittsburgh.

The Grant Building is located at 310 Grant Street between Third and Fourth Avenues close to the Parkway (Interstates 279/376) and within walking distance of four Light Rail Transit (LRT) stops.

 Originally built in 1928, the property features five levels of underground parking for approximately 250 cars plus a new, state-of-the-art fitness center.  The property is connected via an underground walkway to the City-County Building, County Office Building and County Courthouse. 

The Grant Building is 92 percent leased by tenants including Huntington Bank and The Hillman Company.

The HFF team representing McKnight Realty Partners was led by executive managing director Gerard Sansosti.

McKnight Realty Partners is a leading real estate investment and development company based in Pittsburgh, Pennsylvania.

Contacts: 
Gerard T. Sansosti, HFF Executive Managing Director, (412) 281-8714, gsansosti@hfflp.com                                                                                            
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500