Wednesday, July 6, 2011
DALLAS, TX –HFF announced today that it has arranged financing for 712 Main Street (top left photo), a 794,186-square-foot, Class A office building in downtown Houston, Texas.
HFF worked exclusively on behalf of an entity owned by Brookfield Real Estate Opportunity Fund (BREOF) to secure the non-recourse loan through Capital One Bank.
Originally built in 1929, 712 Main Street is a historic 35-story gothic/art deco-style building that is the Texas headquarters of JP Morgan Chase’s (NYSE: JPM; S&P: A+) southwest banking operations. 712 Main is comprised of three towers situated on a full city block (1.2 acres).
According to HFF, the property is situated on the corner of Main and Capitol Streets in the heart of the Houston CBD and provides tenants direct access to the climate controlled downtown tunnel system and is in close proximity to nearby restaurants, hotels, retail stores, parks, the METRORail, two major professional sports venues, as well as other world-class cultural amenities like the main branch of the Houston Public Library, Discovery Green, Bayou Place and the Hobby Center for the Performing Arts.
The HFF team representing Brookfield Real Estate Opportunity Fund was led by director John Ahmed
Brookfield Real Estate Opportunity Fund is a well-capitalized and sponsored real estate fund investing in commercial real estate opportunities throughout North America. BREOF’s sponsor is Brookfield Asset Management, Inc. (Brookfield), a leading global asset management company focused on the real estate, power generation, and infrastructure sectors. With over $100 billion in assets under management, Brookfield has a considerable presence in commercial real estate.
Brookfield is among the largest office landlords in Houston with 12 office properties owned in the MSA (including 712 Main Street) for a total of over 10 million square feet of space. Brookfield is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM and on NYSE Euronext under the symbol BAMA.
John Ahmed, HFF Director, (214) 265-0880, email@example.com
Kristen Murphy, HFF Associate Director, Marketing, (713) 852-3500,
Cambridge Savings Bank provided the adjustable-to-fixed-rate loan for the office portion of the project and Middlesex Bank provided financing for the 1,982-space parking garage.
Station Landing includes:
Arborpoint @ Station Landing (top left photo), which has 292 luxury apartments, 67,017 square feet of retail and a 4,863-square-foot retail outparcel leased to Kelly’s Roast Beef; 75 Station Landing, which was completed in 2009 and has 168 Class A apartments plus 8,594 square feet of retail leased to Margarita’s Restaurant; a 50,000-square-foot Boston Sports Club; a 161,983-square-foot office building at 101 Station Landing; and a 1,982-space parking garage.
Located at the intersection of Routes 28 and 16 at Wellington Circle, Station Landing is adjacent to the Wellington MBTA Station in Medford, five miles north of downtown Boston and just east of Interstate 93.
The HFF team representing National Development and ASB Capital Management, Inc. was led by senior managing director Fred Wittmann (lower right photo) and senior real estate analyst Porter Terry.
National Development is a Massachusetts-based development company that focuses on the development of master-planned residential communities as well as other commercial real estate. National Development has developed over 20 million square feet of space in the New England area.
ASB Real Estate Investments, an ASB Capital Management LLC company (ASB), headquartered in Bethesda, Maryland, is among the largest and oldest institutional money management firms in the Washington metropolitan area. ASB Real Estate Investments invests in communities nationwide that have strong economic foundations and which possess solid potential for growth.
Frederic E. Wittmann, HFF Senior Managing Director, (617) 338-0990
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500,
The building is jointly owned by AXA Equitable Life Insurance Company and institutional investors advised by J.P. Morgan Asset Management.
HFF placed the 10-year fixed-rate loan with MetLife Real Estate Investments. The HFF team representing the borrower included senior managing directors Whitney Wilcox and Mike Tepedino.
The international modernist-style building is located in the western expansion of Rockefeller Center (lower right photo), in one of the most consistently stable and sought-after office locations in the United States.
1285 Avenue of the Americas has been owned and operated to the highest institutional standards since it was developed in 1960 as The Equitable Life Assurance Society of the United States headquarters.
At that time, it assumed its integral role in the skyline of new trophy office towers on Sixth Avenue housing many of the most prestigious businesses in America.
The largest office building in the State of New York to achieve LEED Silver certification, 1285 Avenue of the Americas is 99.9 percent leased and anchored by three major institutional tenants: UBS, law firm Paul Weiss, Rifkind, Wharton & Garrison LLP and BBDO, a worldwide advertising agency.
J.P. Morgan Asset Management1 – Global Real Assets has approximately $53.6 billion in assets under management and 380 professionals in the U.S., Europe and Asia, as of March 31, 2011.
Sheldon Good & Company to Auction Stunning 18-Hole Golf Course in Deland, FL with a Suggested Opening Bid of $250,000
NEW YORK, NY--(BUSINESS WIRE)--Sheldon Good and Company, a Racebrook Portfolio Company and America’s leading real estate auctioneer, will conduct an auction of the Southridge Golf Course (top left photo) on Thursday, July 28, at the Hilton Orlando/Altamonte Springs.
Located one hour north of Orlando in Deland, Florida, Southridge will be sold absolute without reserve, with seller financing available to the highest bidder. The suggested opening bid is $250,000.
Southridge, set on 136 rolling acres, opened to golfers in 1968, and has been family-owned ever since. After 43 years the family has decided to retire from the golf course business, and Southridge now presents an incredible opportunity for a new owner to bring these unique grounds to the next level of operations. An average of 31,000 rounds of golf are played on the 18-hole, par-72 course each year.
Unlike most Central Florida golf courses, Southridge, located at 800 E. Euclid Avenue, is not just flat terrain.
Dotted with mature trees, rolling terrain with incredible plants, the property also includes a clubhouse with pro-shop, large bar and dining area with seating for 150, a second banquet building for private events, maintenance buildings and cart storage buildings.
“This is a very unique investment opportunity and a chance to acquire a trophy golf course, set in beautiful surroundings, that already has a strong annual membership and customer base,” said John J. Cuticelli Jr., CEO of Sheldon Good & Company. With modest capital improvements, the course’s popularity and performance can grow exponentially.”
For more information please visit www.sheldongood.com
Contacts: M18 Co, .Michael Tavani, 212-604-0318
ROCKVILLE, MD.--(BUSINESS WIRE)--Washington Real Estate Investment Trust (WRIT) (NYSE: WRE) has replaced and expanded one of its two unsecured credit facilities, increasing its size from $262 million to $400 million.
An accordion feature allows WRIT to increase the facility to $600 million, subject to additional lender commitments. The new facility matures July 1, 2014 with a one-year extension option and bears interest at a rate of LIBOR plus a margin of 122.5 basis points based on WRIT’s current credit rating.
The lead arranger and bookrunner for the facility is Wells Fargo Securities, LLC. Wells Fargo Bank, National Association, is administrative agent and issuing bank.
The Bank of New York Mellon, Citibank, N.A., and Credit Suisse AG, Cayman Islands Branch serve as documentation agents. Additional participants include Royal Bank of Canada, U.S. Bank, N.A., JPMorgan Chase Bank, N.A., Branch Banking & Trust Co., and Raymond James Bank, FSB.
Washington Real Estate Investment Trust (WRIT)
William T. Camp
Executive Vice President and Chief Financial Officer
MINNEAPOLIS--(BUSINESS WIRE)--Regency Centers (www.regencycenters.com) (NYSE:REG), a national owner, operator and developer of grocery-anchored and community shopping centers, closed on the acquisition of Calhoun Commons (top left photo), a 66,150 square foot neighborhood shopping center anchored by Whole Foods Market.
The property was purchased in an off-market transaction on July 1 for $21 million from Calhoun Commons Shopping Center Limited Partnership, a subsidiary of Doran Companies and the original developer of the property.
“Calhoun Commons has all the key attributes of a Regency core acquisition.”
Built in 1999, Calhoun Commons is a Class A shopping center anchored by a 49,471 square foot Whole Foods Market, along with national retailers such as Chipotle Mexican Grill, Caribou Coffee, Ben & Jerry’s and Noodles & Company.
The fully leased center produces strong retail sales and high historical occupancy with more than 94 percent of the gross leasable area occupied by first generation tenants. Located 4.5 miles southwest of downtown Minneapolis between West Lake Street and Excelsior Boulevard, Calhoun Commons is located in a dense, affluent market with high barriers to entry for new development.
“Calhoun Commons is a premier property consistent with Regency’s portfolio of quality centers characterized by market-dominant anchors, infill locations, and superior demographics,” explained Stuart Brackenridge, Vice President of Transactions for Regency Centers. “Calhoun Commons has all the key attributes of a Regency core acquisition.”
With the acquisition of Calhoun Commons, Regency owns four retail centers in the Minneapolis market and has a fifth under contract. Regency’s Minneapolis portfolio totals more than 550,000 square feet.
The Hoffman Agency
Bonnie Hayflick, 904-398-9663
Stuart Brackenridge, 214-706-2506
Vice President, Transactions
SANTIAGO, Chile--(BUSINESS WIRE)--Hines, the international real estate firm, announced today that it has been chosen by Union Investment Real Estate GmbH to manage four office buildings in Santiago, Chile.
The portfolio, which is well located within the Santiago office market, totals 354,633 square feet. The assignment, which represents Hines’ first entry into Chile, will commence on August 1 and will include the following buildings: Torre Paris; Bandera 76; Teatinos 254; and the Xerox Building. The buildings are almost fully leased to major multinational companies and Chilean firms.
“We are proud to build on the relationship we have established with Union Investment in the U.S. and Mexico, and appreciate the confidence entrusting Hines with their Chilean portfolio,” said Hines South America’s Director of Property Management Eduardo Bo.
“While this assignment represents Hines’ first foray into Chile, we hope to expand our presence in this stable, growing real estate market.”
Union Investment Real Estate GmbH is part of the Union Investment Group, which is based in Frankfurt, Germany and was founded in 1956. The Union Investment Group is considered to be one of Europe’s leading asset management companies for private and institutional clients. Total assets under management total more than 176 billion Euros, of which 19 billion is in real estate in 26 countries.
Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. The firm’s historical and current portfolio of projects that are unde rway, completed, acquired and managed for third parties includes 1,126 properties representing more than 459 million square feet of office, residential, mixed-use, industrial, hotel, medical and sports facilities, as well as large, master-planned communities and land developments.
With offices in 106 cities in 17 countries, and controlled assets valued at approximately $23.7 billion, Hines is one of the largest real estate organizations in the world. Visit www.hines.com for more information.
Contacts: Hines, George Lancaster, 713-966-7676
Schwartz also reports that Lens Depot, which rents photographic equipment, expanded its lease at Aloma Business Center from 940 square feet of space to 2,720 square feet.
For more information, contact:
Winston Schwartz, President, Winston-James Development, Inc 933 Beville Rd., South Daytona, Fla. 32119; 386-760-2555;
Larry Vershel or Beth Payan, Larry Vershel Communications 407-644-4142 firstname.lastname@example.org
Melrose-Sovereign Companies Eye More Florida Growth as Community, Condominium Management Takes Center Stage
ORLANDO, FL --- The nation’s beleaguered housing industry has created growth opportunities for some specialty service companies, and Melrose-Sovereign Companies in Orlando ranks as one the most productive.
Melrose-Sovereign Companies formed four years ago from the merger of two entrepreneurial service companies that specialize in home owner and condominium association management.
Today, Melrose-Sovereign Companies manage properties for more than 170 developers, investors and owners from Fort Myers to Jacksonville, with more than 80 specialist employees who focus on personal attention and an eye for detail to keep both residential home owners and community developers happy.
Jack Hanson (top right photo), LCAM, co-founder and partner at Melrose-Sovereign Companies said growth in a recessionary market isn’t easy but it isn’t a struggle either.
“From day one we have focused on old school values,” Hanson said. “Today we live in a homogenized, computerized world where individuals are often overlooked or perceived as numbered accounts. Try to get a human being at your bank or on the telephone and you’ll know what I mean, and it’s even worse if you try to talk to someone at the telephone company,” he laughed.
“We focused squarely on personal attention and attention to detail,” said Ellen Lumpkin (lower left photo), co-founder and partner. “When our residents call, they get through to a human being who is able to listen to their concerns and respond positively with action, not just words,” she said.
“Community developers and condominium developers dealing with the chaotic market find Melrose-Sovereign’s turnkey community management services the perfect answer.” Lumpkin said.
“Their business model is focused on development, building, and sales,” Lumpkin said “So community management has usually been considered a moral and legal obligation and a sideline that was supported by revenues from sales,” she said.
“When sales activities are disrupted, it’s exceedingly difficult for a development company to refocus its business model to staff their community management offices appropriately and to manage communities cost effectively,” she said.
Enter Melrose-Sovereign Companies. With offices statewide, Melrose-Sovereign community management specialists can respond quickly and locally to resident issues.
Jack B. Hanson, LCAM, Partner/Co-founder, Melrose-Sovereign Companies, 407-228-4181, email@example.com
Ellen G. Lumpkin, LCAM, Partner/Co-founder, Melrose-Sovereign Companies, 407-228-4181, firstname.lastname@example.org
Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142, Lvershelco@aol.com
For more information, contact
Commercial Real Estate Industry Should Start Preparing for Next Recession Now, Says WeinPlus Chief Executive
ST. PETERSBURG, FL. --- Commercial real estate companies with an eye on long term sustainability should start preparing for the next recession now, says Real Estate Expert Rachel Elias Wein (top right photo), AIA, founder and principal of WeinPlus Real Estate Advisory Services in St. Petersburg.
Wein said now is the best time to prepare for the next real estate cycle.
“All of the data on the past few years is still fresh,” Wein said. “Companies should take a forensic look at what happened during this recession, see when they were first able to notice the decline in their own business and their own revenues, and what they were able to do with that,” she said.
“They need to ask themselves what they could have done had they moved more quickly,” she added.
“Real estate companies, especially partnerships and public companies vested in long-term viability, need to focus on one discipline for growth cycles and a second discipline for market retractions,” Wein explained.
“They need to determine which signals indicate a recessionary event, and then have the fortitude to enact their plans when that time comes,” she said.
“Hopefully, we won’t make the same mistakes again,” she added.
“Real estate is cyclical, and prudent managers understand that another recessionary event will occur. The most successful companies have the discipline to anticipate cycles, prepare for them and most importantly, execute.” Wein said.
For more information, contact
Rachel Elias Wein, AIA, Founder / Principal, WeinPlus, 727-386-9346, www.weinplusassociates.com
Larry Vershel or Beth Payan, Larry Vershel Communications 407-644-4142, email@example.com
GE Capital, Franchise Finance Provides $13.9 Million to Buffalo Wild Wings® Franchisee, Wings Across America, LLC
“We chose to go with GE Capital based on certainty of execution, the structure they offered, and our existing relationship,” said John Weiler, president, Wings Across America, LLC. “Equally important was their ability to handle our future growth plans.”
Based in Barrington, Illinois, Wings Across America, LLC and its affiliates have been franchising with Buffalo Wild Wings for 10 years. They currently own and operate 18 Buffalo Wild Wing units in Maryland and in areas northwest of Chicago.
“We provided a creative refinance solution to a complex capital structure that enabled Wings Across America to add flexibility in their debt structure to support future growth,” says Allan Hauptli, vice president, GE Capital, Franchise Finance.
“GE has a long relationship with the Buffalo Wild Wings brand and with John Weiler and his businesses. This helped us execute on the transaction in the timeframe that the customer expected. It’s a pleasure working with Wings Across America and we look forward to an expanding relationship with them as they continue to grow.”
Buffalo Wild Wings Grill & Bar® is one of the top 10 fastest growing restaurant chains with more than 765 Buffalo Wild Wings locations across 45 states in the United States, as well as in Canada.
More information is available at www.gefranchisefinance.com
or by calling 866-GET-GEFF (438-4333).
Arment Dietrich, Inc.
Molli Megasko, (646) 863-3563
GE Capital, Franchise Finance
Christine Roe, (480) 563-6260
“This newer multifamily property offered the buyer an excellent investment with a value-add upside to bring the units up to market rents,” said Hibbert. “The property is located on Wilcox Avenue in the southern section of Hollywood, a neighborhood that has seen extensive re-development which will lead to higher rents and appreciation in the future.”
The unit mix consists of 14 two-bedroom/two-bathroom units with monthly rents ranging from $1,600 to $1,800; two, two-bedroom/two and a half bathroom units with monthly rents ranging from $1,890 to $1,936 and two, two-bedroom/two and a half bathroom townhouse units with monthly rents at $2,200.
Features of the property include: central heat and air conditioning, balconies, fireplaces, an elevator, laundry facilities and secured entry and parking.
Darcie Giacchetto, D.G. Communications, Inc., 949.278.6224
PORTLAND, OR – Sperry Van Ness International, one of the nation’s largest commercial real estate franchise systems, has expanded its presence in the Portland, Ore. metropolitan area, which includes Vancouver, Wash., with the addition of Bluestone & Hockley Real Estate Services.
The firm will now operate as Sperry Van Ness/Bluestone & Hockley, located at 9320 Southwest Barbur Blvd., Suite 300 in Portland.
The addition of Bluestone & Hockley is part of Sperry Van Ness’ national expansion, which has grown to more than 155 individually owned and operated locations since the company’s inception in 1987.
“We are excited about this opportunity to extend Sperry Van Ness’ services platform in the Pacific Northwest,” said Sperry Van Ness President and CEO Kevin Maggiacomo (top right photo). “Bluestone & Hockley is the premiere brokerage firm in the region and brings nearly 40 years of local commercial real estate expertise to our company.”
Led by owner Cliff Hockley (middle left photo), who will serve as executive director, Sperry Van Ness/Bluestone & Hockley specializes in the sale and lease of multifamily, office, single- and multi-tenant retail, hospitality, gas stations and banked-owned properties.
The 17-person operation currently manages more than 6,000 units with a portfolio that includes houses, apartment communities, mobile home parks, condominium associations, offices, retail and industrial buildings.
“We decided it was time to affiliate with a national platform in order to compete with larger regional and national brokerages,” said Hockley. “In addition to Sperry Van Ness’ marketing tools, which include automated packages and individualized listing websites, the firm’s national reach with more than 800 advisors nationwide has made it much easier to recruit new talent. We added three seasoned brokers before even completing our affiliation with Sperry Van Ness.”
Other members of Sperry Van Ness/Bluestone & Hockley include:
Karlin Conklin (middle right photo), managing director, who specializes in multifamily properties.
· Tom Sjostrom, vice president, who specializes in office and retail leasing.
· Philip Higgins, senior advisor, who specializes in gas stations, self-storage and bank-owned properties.
· John Brandhorst, senior advisor, who specializes in office, retail and industrial sales and leasing.
· Rick Funk, senior advisor, who specializes in multifamily properties.
· Steve Morris, senior advisor, who specializes in multifamily properties.
· Tom Smith, senior advisor, who specializes in multifamily properties throughout Southwest Washington.
· Steve Hagan, senior advisor, who specializes in office and retail sales and leasing.
· Julie Richard-Schutrop, senior advisor, who specializes in multifamily properties.
· Brian Resendez, advisor, who specializes in hospitality properties.
· Naz Parsiani, advisor, who specializes in plexes.
· Karen Soll, advisor, who specializes in office and retail sales and leasing.
· Laura Pallin, advisor, who specializes in retail sales and leasing.
· Adonay Solleiro, advisor, who specializes in medical office.
· Ed Hopkins, advisor, who specializes in multifamily.
· Gerald Lee, advisor, who specializes in plexes.
For more information, visit http://www.svn.com/.
Contact: David Ebeling
SAN DIEGO, CA – Alvin Mansour (top right photo) of Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of 11 shopping strip centers throughout the United States in the past year valued at nearly $44 million.
The properties are located in Mississippi, Utah, Texas, Illinois, California, Kentucky and North Carolina.
Mansour, a senior vice president investments and senior director of Marcus & Millichap’s National Retail Group, represented the sellers in these 11 separate transactions. The sellers were developers and family trusts, while the buyers were private investors.
“The strip center segment has presented its share of challenges,” shares Mansour, “but it is improving steadily, along with the entire retail sector and lending market. As we continuously expand our already deep access to a pool of investors nationwide, more private buyers will vie for these strip centers – even in secondary and tertiary markets.
“1031 exchange buyers are becoming increasingly active in the strip center segment. We have seen a number of exchange buyers trade non-conventional product, instead of once-common apartment complexes, for strip centers because of their stabilized returns and ease of management.
“An array of unique properties, including ranches, parking lots, and RV parks, are now being traded for strip centers. The buyer profile has clearly changed, and as competition heats up, cap rates will continue to compress for strip centers, a trend we began to see late last year,” says Mansour.
In Los Angeles, Mansour closed the largest strip center transaction – which totaled $8.8 million – at 4414-4430 York Blvd (top left photo). The 18,498-square foot strip center is anchored by CVS, Starbuck’s and L&L Hawaiian Barbecue.
He arranged the sale of Turtle Creek Corner, a 119,334 square-foot retail center in Hattiesburg, Miss. The 98-percent occupied property is triple-net-leased to several national credit tenants including Lowe’s, TJ Maxx, H&R Block and others.
Conn’s and Shops at Alameda in Houston sold at $5 million to a private investor. The property was anchored by Conn’s and featured several regional and local tenants.
Mansour negotiated the sale of Riverton Depot, a fully leased retail center in Riverton, Utah. Tenants at the 32,384-square foot asset include Staples, Dollar Tree and Shoe Carnival.
Heights Corner in Forth Worth, Texas, a Chick-Fil-A and Starbucks-anchored center, traded at a 7.68 percent cap at more than $442 per square foot.
The Market at Byram, a 69,054-square foot neighborhood center anchored by Vowell’s Marketplace, sold to a private investor in Byram, Miss.
Shops at Liberty Plaza in Crystal Lake, Ill., a neighborhood center with regional tenants, traded for just north of $302 per square foot.
A Starbucks and Jimmy John’s anchored strip center in Louisville, Ky., closed at $575 a square foot to a private 1031 exchange buyer based in California.
Mansour also arranged the sale of:
An 8,930-square foot strip center in Cedar Hill, Texas, anchored by Verizon Wireless and Sears.
Shoppes at Indigo Trails, a 12,500-square foot retail asset in Queen Creek, Ariz.
A 4,930-square foot strip center in Concord, N.C., anchored by T-Mobile.
Providing additional representation on the aforementioned transactions were Brent E. Yurtkuran (lower right photo), a senior associate in the Jackson, Mississippi office; Greg A. Moyer, a senior vice president investments in the Chicago office, Richard Bird, regional manager of Marcus & Millichap’s Salt Lake City office; and Allen Smith, a vice president investments in the Charlotte, N.C., office.
Contact: Stacey Corso, Public Relations Manager, (925) 953-1716
NEW YORK, N.Y.– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has negotiated the sale of 220 Park Ave. South (top left photo), a mixed-use residential and retail asset located between Manhattan’s trendy Gramercy Park and Union Square neighborhoods.
The asset commanded a sales price of $20 million. The gross price per square foot was $595, with a gross rent multiplier of 14.
Peter Von Der Ahe (middle right photo), a vice president investments, senior associate Joseph Koicim (lower left photo), and David Lloyd, a multifamily investment specialist, all in the Manhattan office of Marcus & Millichap, represented the seller, a Long Island-based family. The buyer was a locally based landlord and private investor.
“As the stock market remains unpredictable and unrest continues abroad, investors are increasingly turning their sights to Manhattan investment real estate, a sure bet in this unstable economy,” says Von Der Ahe.
“This turn-of-the-century, well-located asset commanded a high price per unit because of our firm’s ability to access investment capital from a wide array of interested buyers across the nation and abroad.
“Foreign investors, funds and a wide array of private investors are interested in Manhattan commercial real estate opportunities,” notes Koicim. “Furthermore, this pride-of-ownership building will only continue to appreciate in value, making this an excellent long-term investment.”
Located at the corner of Park Avenue South and 18th Street, 220 Park Ave. South has 37 residential units, most of which are studios and one-bedrooms. The approximate 33,638-square foot, nine-story asset also includes four two-bedroom duplex penthouse apartments and one 2,650-square foot retail space currently occupied by the restaurant Haru.
“This building presents the new ownership with many future redevelopment opportunities, including conversion to condos,” adds Von Der Ahe. “In this particular submarket, property owners have commanded north of $1,300-plus per square foot for newly constructed condominiums.”
Notably, the best attribute of this building is its location.
“The residential rental market is currently on fire,” continues Koicim. “This is one of the strongest rental markets in the city, with endless demand and it’s no surprise that there was a tremendous amount of interest in this asset.
“The competitive bid process generated more than 25 written offers, allowing the building to achieve a high sales price which appeared inconceivable to most investors,” Koicim concludes.
Contact: Stacey Corso, Public Relations Manager, (925) 953-1716
“We continue to be impressed by the pace at which travelers have returned to the road after the depths of the Great Recession,” said R. Mark Woodworth (top right photo), president of PKF-HR.
“Given the headwinds created by stagnant employment and continued weakness in the housing sector of the economy, it is somewhat surprising that hotel demand continues to bounce back as quickly as it has.”
The 4.9 percent rise in occupied rooms forecast for 2011 compares to the 7.6 percent increase in lodging demand for 2010 reported by Smith Travel Research (STR). Both growth rates are well above the STR long-term average annual demand growth rate of 1.5 percent.
“Offsetting the surge in demand, however, has been relatively sluggish increases in room rates. And, as hotel owners and operators know, it is ADR growth that powers profits,” Woodworth noted.
“Given the sustained robust increases in demand, combined with limited new competition, one would expect that hoteliers should be able to start raising room rates more aggressively.
“ However, market conditions are still very competitive and, with few exceptions, scarcity has yet to be a concern for most lodging consumers.
“ We are forecasting that only 12 of the largest lodging markets in the U.S. will achieve an occupancy in 2011 that is greater than their long-run average. It won’t be until 2013 that we see the majority of the 50 markets in our Hotel Horizons® universe exceed their long-run occupancy rate.”
Accordingly, PKF-HR is forecasting that U.S. room rates beyond 2011 will grow at a greater pace: 5.5 percent in 2012 and another 5.8 percent in 2013.
For a complete copy of the company’s news release, please contact:
Robert Mandelbaum Chris Daly
PKF Hospitality Research Daly Gray Public Relations
Tel: 404 842 1150, ext 223 Tel: 703 435 6293
Email: firstname.lastname@example.org Email: email@example.com