Monday, June 13, 2011

Marcus & Millichap Lists Service Station Portfolio in South Florida for $31 Million

  MIAMI, FL, June 13, 2011 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has received the exclusive listing for 14 unbranded service stations that distribute 23 million gallons of fuel, mostly in Miami-Dade County, according to Kirk A. Felici (top right photo), vice president and regional manager of the firm’s Miami office.

The sales price for the service stations and related business opportunity is $31 million. The properties may be purchased as a portfolio and are also available separately.

Ronnie S. Issenberg, a senior associate and Gabriel Britti, a retail property investment specialist, both in the firm’s Miami office, are representing the seller, a private investment company.

“We had numerous inquiries from dealers, distributors, retail developers and investors in the first week of marketing the assets,” says Issenberg. “These stations can be delivered free and clear of any distribution or branding agreements. Most have well-established dealers in place,” adds Issenberg.

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

Marcus & Millichap Sells $10,2 Million Shopping Center in Miami

MIAMI, FL, June 13, 2011 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has brokered the sale of  a 60,497-square foot shopping center anchored by Babies “R” Us in Miami (top centered photo).

The sales price of $10.2 million represents $169 per square foot.

Drew A. Kristol and Kirk Olson, senior associates in the firm’s Miami office, represented the seller, a limited liability company based in Miami. Marcus & Millichap also represented the buyer, a Miami Beach-based limited liability company.

“This transaction is a reflection of the increased interest among investors for well-located retail properties in Miami-Dade County,” says Olson. “Savvy investors are aware that many strong local and national tenants are looking to expand in supply-constrained submarkets such as Kendall.”

The property is located at 15625-45 North Kendall Drive across from Walmart in Kendall, a suburban metropolitan Miami neighborhood.

Built in 1985, the center contains two components, a 42,341-square foot Babies “R” Us store and an 18,156-square foot retail strip called the Kendall Hammocks Shopping Center (lower left photo).

 The Babies “R” Us component contained a mortgage from Principal Life Insurance Co., which had to be assumed. Kendall Hammocks Shopping Center was delivered free and clear of debt.

Major tenants at the Babies “R” Us-anchored shopping plaza include Domino’s Pizza, Farm Stores and Sherwin Williams.

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

HFF arranges $21 million refinancing for Florham Park, NJ retail center

 FLORHAM PARK, NJ – HFF announced today that it has arranged a $21 million refinancing for Florham Park Plaza (top left photo), a 64,587-square-foot retail center in Florham Park, New Jersey.

HFF worked exclusively on behalf of The Klein Group to secure the 10-year fixed-rate loan through Nationwide Life Insurance Company.  The loan will be serviced by HFF and is replacing an existing first mortgage loan on the property, which was also arranged by HFF.

 Originally built in 1977, Florham Park Plaza was recently renovated and expanded to include new tenants Trader Joe’s and Walgreen’s.

 Other tenants at the 96.6 percent leased center include McDonald’s, Dunkin Donuts, Sprint, Red Mango, Citibank, Dress Barn and Qdoba.  The property is situated on 6.55 acres at 176 Columbia Turnpike at the intersection of Columbia Turnpike and James Street in Florham Park’s downtown retail district.

The HFF team representing The Klein Group was led by senior managing director Jon Mikula (middle right photo)  and managing director Jim Cadranell (bottom left photo)

The Klein Group is a New Jersey-based real estate investment firm headed by Jacob Klein.  The firm manages 16 properties, including Warren Village Shopping Center, Eagle Rock Commons and the Fidelity & Stew Leonard Center in Paramus, New Jersey

Jon Mikula, HFF Senior Managing Director, (973) 549-2000,
Jim Cadranell, HFF Managing Director, (713) 852-3500,
Kristen Murphy, HFF Associate Director, Marketing, (973) 549-2000,                                    

HUD’s Office of Healthcare Loan Programs Making Progress

 CHICAGO, IL--What has HUD’s Office of Healthcare Programs (OHP) done lately to relieve the backlog and speed the flow of HUD 232 LEAN loan applications progressing through the process?

Senior housing/healthcare funding expert Jeffrey A. Davis (top right photo) says a bulletin distributed by HUD’s Committee on Healthcare Financing indicates progress is being made on several fronts.

“The fact that OHP's staff is expanding is encouraging news. And the agency is close to finalizing contractual arrangements with outside consultants that will provide securitization for loans currently in the HUD 232 LEAN queue,” he said.

Davis is Chairman of Cambridge Realty Capital Companies, one of the nation’s leading senior housing/healthcare lenders, with more than $3 billion in closed transactions. The company has been one of the most active FHA-approved HUD 232 lenders in the country for more than a decade.

He points out that OHP has offered 18 new positions to applicants and has received approval for 10 additional new hires. Nine of the newest hires will be LEAN account executives, while others will either join the current group of HUD 232 underwriters or be placed in asset management, closing coordination or other understaffed areas.

HUD has been diligently working to “bust the queue,” Davis said.

Earlier this year, OHP began discussions with a number of different consulting firms, with the idea of finding a firm or firms that could work with Wall Street sources to create a market for approximately 400 loan applications currently moving through the HUD 232 LEAN queue. Contracts expected to be in place by July 4 should enable the agency to clear the queue within a year, he noted.

 In another move aimed improving efficiencies, Davis says a task force is looking into ways to streamline the closing document process. Of special concern is the time-consuming final review that occurs after a firm commitment already has been made to the lender and borrower.

“Senior management at HUD appropriately views the extra 90 days this can take as unacceptable, and is working with the industry to affect improvements in this area,” he said.

Senior OHP management also is concerned that application items submitted as part of the HUD underwriting process are being reviewed in a manner that slows the LEAN process. OHP has implemented various tracking protocols to better follow where applications are at any given stage, and believes an emphasis on training will lead to a more streamlined LEAN approach.

Also, Davis says, OHP continues to seek ways to improve the Green Lane, the special queue created to process “low risk” loans more swiftly. Apparently, deals structured more conservatively to satisfy Green Lane eligibility requirements have given HUD a stronger portfolio of funded properties, he noted.

The agency continues to evaluate its risk assessment techniques and the data points it feels best evaluate risk, he added.

“The goal for HUD’s 232 LEAN program is to have a normal loan underwriting system in place by the start of next year. Based on the multiplicity of measures underway, a reasonable assumption is that the agency will achieve this end.

“Looking ahead, we see HUD moving forward with more and better loan underwriting and loan structures for senior housing and healthcare facilities,” he said.

Evan Washington
Phone: (312) 521-7604
Fax: (312) 357-1611

Near Disney, Florida Land Prices Go Retro

(The following article, published June 8 in The Wall Street Journal,  was submitted to Done Deals by Daryl Carter, president of Orlando-based  land brokerage Maury L. Carter & Associates Inc.).

 ORLANDO, FL--A swath of Florida land just west of Walt Disney World recently sold for a price so low that a broker in the deal says it rivals its value from two decades ago.

A group of investors paid $4.5 million in cash for 1,395 acres of foreclosed land in Lake County, says Daryl Carter (top right photo), president of land brokerage Maury L. Carter & Associates Inc., which represented seller BB&T Corp.

Back in 2006, an entity formed by Lennar Corp. paid more than $32 million for the site near Highway 27, says Pat Chisholm, who also worked on the deal for brokerage.

 The company planned to develop more than 2,000 residences, but those plans crashed with the market, he says. Colonial Bank, acquired by BB&T, foreclosed on the land in 2009, Mr. Chisholm says. Lennar, one of the nation's largest home builders, didn't comment.

Mr. Carter knows the site well. About 20 years ago he represented a group that considered paying $4.1 million for the site. But there was no deal.

 "How could it not be a good deal if you can buy it 20 years later for roughly the same price?" he asks. "The state of Florida is on sale right now."

The property commanded a sales price of $3,795,000.

 TAMPA, FL,  June 13, 2011 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of a Rite Aid Pharmacy (top left photo), a 14,673-square foot, triple-net leased property in Toccoa, Ga, according to Bryn Merrey, Vice President/Regional Manager of the firm’s Tampa office.

Senior Vice President Investments Lori Schneider of the firm’s Fort Lauderdale office represented the seller of the property, a limited liability company from Alpharetta, Ga. Senior Associate John E. (Jay) Brigel of the firm’s Tampa office secured the buyer of the property, a private investor from Whitestone, NY.

The property is a new construction with a 20-year absolute net-lease with six five-year options. Rite Aid is located in a main retail corridor on the southwest corner of Big A Road and Skyline Drive in Toccoa, Ga.

Press Contact: Bryn D. Merrey, Regional Manager, Tampa, (813) 387-4700

NAI Realvest Negotiates New Industrial Lease in Oviedo, FL

 ORLANDO, FL – NAI Realvest recently negotiated a new industrial lease agreement for 2,400 square feet at 1701 Pratt Place in Oviedo.

 George Viele (top right photo), associate at the firm, brokered the transaction representing the landlord, Chess, Inc. of Oviedo

 Tuscany Natural Stone Inc. is the new tenant that leased the “At-grade” warehouse space, which includes two acres of outside storage for sale and storage of stone materials.

 For more information, contact:
George Viele, Associate, NAI Realvest 407-875-9989
Patrick Mahoney, President NAI Realvest, 407-875-9989
Larry Vershel, Larry Vershel Communications 407-644-4142

Winston-James Development Reports Two New Lease Agreements in Winter Garden and Oviedo, FL

 SOUTH   DAYTONA, FL. --- Winston-James Development, Inc. recently negotiated two new long-term lease agreements at commercial centers in Winter Garden and Oviedo.

 Winston Schwartz (top right photo), president of Winston-James Development, based in South Daytona, said he negotiated a new lease for 1,874 square feet of industrial/flex space at Aloma Commerce Center on Wrights Rd. near Aloma Ave. in Oviedo.   Rhythm & Blues Enterprises, a regional franchiser of the Tijuana Flats restaurant chain leased the space for three years.

 Schwartz also negotiated a ten-year lease agreement for 2,000 square feet of professional office space at the West Orange Business Center in Winter Garden. The new tenant is Winter Garden Smiles, a dental practice.

 For more information, contact:
Winston Schwartz, President, Winston-James Development, Inc 933 Beville Rd., South Daytona, Fla. 32119; 386-760-2555;
James Adley, Principal, Winston-James Development, Inc. 386-760-2555
Larry Vershel, Larry Vershel Communications 407-644-4142

Jim Abrahamson to Lead Interstate Hotels & Resorts

 ARLINGTON, VA,  June 13, 2011—Interstate Hotels & Resorts (IHR), the United States’ largest independent hotel management company, today announced that Jim Abrahamson (top right photo) has joined Interstate initially as president and chief operating officer. 

He will assume the role of chief executive officer prior to year-end, following a transition period with current CEO Thomas F. Hewitt (lower left photo), who will remain as chairman.

 Abrahamson previously was president, the Americas, for Intercontinental Hotel Group (IHG), that company’s largest operating unit. During his tenure there, he revitalized IHG’s core brand, Holiday Inns, in the Americas through a comprehensive brand re-imaging and capital investment program.

He previously held senior leadership positions in operations, franchising and development with Hyatt Corporation, Marcus Corporation and Hilton Worldwide. 

Additional information about Interstate is available at the company’s website,
Jerry Daly, Carol McCune,                              Carrie McIntyre
Media                                                              SVP, Treasurer
Daly Gray                                                       Interstate Hotels & Resorts
(703) 435-6293                                               (703) 387-3320                            

Commercial Loan Workouts on the Rise in the Recovery

  ATLANTA, GA (June 13, 2011) – An increasing number of borrowers and lenders are coming to terms in commercial loan workouts for distressed assets.

 The “Commercial Real Estate Show” this week talked to a panel of experts about the status of commercial mortgage maturities and delinquencies. The panel, which represented both lender and borrower perspectives, shared best practices and strategies for loan workout success and increased recovery rates.

“We are definitely seeing a step-up in workouts,” s
aid Tom Fink (top right photo), managing director of Trepp LLC, a leading provider of CMBS and commercial mortgage information and analytics.

In the last 18 months, Trepp estimates there have been about $30 billion of loan modifications and extensions.

The data show more workouts are likely on the horizon.

Over the next three years, there will be about 5,000 to 6,000 maturing CMBS loans — worth an estimated $225 billion, according to Trepp LLC. Including banks and insurance companies, that figure balloons to more than $1 trillion, Fink said.

“Even as the markets improve, I don’t see any decline in the volume of distressed assets that have to be worked out,” Fink said. “What we have to do is we have to re-price the market and people have to recognize that there has been a lot of value destruction.”

That value destruction means many borrowers are underwater. Trepp estimates as many one-third of properties with CMBS loans may be worth less than the loan amount, while in the overall market, as many as 50 percent of commercial borrowers may be underwater on their properties.

But just like previous market cycles, this one offers plenty of opportunity for borrowers and lenders alike to rebound. Our panelists provided a plethora of tips and strategies to help people on both sides of the table make a deal as painlessly as possible.

The show aired Saturday on Biz 1190 and Sunday on Talk 920  in Atlanta and is available for download here. Other guests included Henry Lorber, Managing Director of Hays Consulting; Joe Briner, principal at Grisanti, Galef & Goldress Inc.; Susan Tarnower, Senior Counsel at Thompson Hine LLP; and Chuck Beaudrot, Partner at Morris, Manning & Martin, LLP.

 The next “Commercial Real Estate Show” will air June 18 featuring interviews from leading real estate reporters at the National Association of Real Estate Editors conference in San Antonio. Don’t miss their unique insights on the national real estate market.

Christin Clay
Wilbert News Strategies
1720 Peachtree St, Suite 1040
Atlanta, GA 30309
p 404-965-5025 | m 404-405-2354
Twitter: @christinclay10