Thursday, July 14, 2011

Suburban Philadelphia Power Center Trades for $52 Million

 Marcus & Millichap has closed the largest retail property sale so far this year in the Philadelphia MSA.

 DOWNINGTOWN, Pa., July 14, 2011 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has closed on the sale of a 386,016-square foot retail power center (top left photo) in Downingtown, Pa. The sales price of $51.75 million represents $133 per square foot.

 Kevin Boeve, a vice president investments in the Ontario office of Marcus & Millichap, Mark Taylor (top right photo), a first vice president investments, and Dean Zang (middle left photo), a vice president investment in the Philadelphia office, represented both parties in this transaction.

The buyer was Morris Ashbridge Associates L.P., a Delaware-based limited partnership. The seller was Pacific Crest Holding LLC of Beverly Hills, Calif.

 “This sale indicates that private investors – not just REITs and institutional players – are truly starting to regain confidence in anchored power center segment,” Boeve explains.

“We strategically marketed the property to a select buyer pool, rather than broadcasting it openly to the market seeking to lure a buyer.

"Ultimately we generated 17 offers, most of which were from private partnerships. Properties anchored by credit tenants with long-term leases in strong locations are clearly garnering more attention from private investors.”

  “This deal had complexity,” adds Taylor. “There was a loan assumption and a 1031 exchange involved on the buyer’s side. Furthermore, the transaction exemplifies the strength of the Marcus & Millichap platform.

" We collaborated to find our West Coast seller a buyer based on the East Coast, which demonstrates our unparalleled ability to access private capital from all over the United States.”

Located at 900 East Lancaster Ave., the 49-acre Ashbridge Square (middle right photo) retail center is anchored by Home Depot, Best Buy, Staples and Bottom Dollar, a grocery store owned by Food Lion.

Additional tenants include Christmas Tree Shops, PJ Whellihan’s Pub, PLCB Store, Jo-Ann Fabrics and Crafts, Super Cuts and Tuesday Morning. The site also includes an additional 7,200- to 10,000-square foot pad for future development.

“Ashbridge Square is located in a fast-growing suburb of Philadelphia,” notes Taylor. “Its location – combined with the long-term, triple-net leases of Home Depot, Best Buy, Bottom Dollar and Christmas Tree Shops – will provide the new ownership with stability over the long term.”

 Demand should only continue to accelerate in the Exton-Downingtown retail corridor, says Taylor. There are 43,000 people living within a three-mile radius of Ashbridge Square with a current average household income of $110,000.

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

Grubb & Ellis Represents KTR Capital Partners in Purchase of 12.5-Acre Cross-Dock Property in Santa Clara, CA

SAN JOSE, CA (July 14, 2011) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that James Viso, associate, Industrial Group, Nigel Keep, senior associate, Investment Services, and Steve Sprenger, senior vice president, Global Logistics, represented KTR Capital Partners in the purchase of a 12.5-acre, 130-door cross-dock property located at 3255 – 3425 Victor St. in Santa Clara.

The property was purchased from a private seller at an undisclosed price. 

 “This is the largest cross-dock facility in the Silicon Valley South Bay and is well-located near the Mineta San Jose International Airport, making it an excellent investment for KTR Capital Partners,” said Viso. 

Used for unloading incoming materials and reloading the product for outbound use with minimal or no storage in between, the property is fully occupied by FedEx Corp., which operates the facilities in combination with the airport to ship, receive and deliver packages. 

 The property includes 64 dock doors averaging 23,660 square feet in size, and 66 dock doors averaging 19,800 square feet in size, split between two buildings.  Additionally, there is a nearly 15,000-square-foot freestanding office building on site. 

The property also offers two maintenance buildings offering a total of more than 34,000 square feet of space, including 11 truck bays, a wash rack and a tire storage area.
Contact: Julia McCartney, Phone: 714.975.2230                                     

How Fed Decides to Deal with Inflation will Impact Senior Housing and Healthcare Borrowers, Cambridge Chairman Says

 CHICAGO, IL--Hand-wringing concerns that inflation numbers are starting to spike higher appears to bother some observers more than others.

“The contrarain view is that more robust inflation numbers may not be such a bad thing,” senior housing/healthcare funding expert Jeffrey A. Davis (top right photo) says.

Davis is Chairman of Cambridge Realty Capital Companies, one of the nation’s leading senior housing/healthcare lenders. He points out that those who are suggesting this seemingly heretical idea believe a “healthy” dose of inflation may be needed to set the economy on a more reliable growth path.

Davis said the Federal Reserve Board continues to persist with anti-inflationary monetary policies aimed at supporting recovery by holding interest rates at rock-bottom lows. However, the Fed is also considering inflation targets that would further shape decisions on interest rates or the amount of money that will be pumped into the U.S. economy to spur growth.

Some find this approach worrisome because, at the first whiff of inflation, inflation targets would require the Fed to force interest rates higher, even if the economy is continuing to struggle, he points out.

Another concern is that current fiscal policy fails to consider an important systemic problem. Burdening the economy today is $13.3 trillion in mortgage and revolving credit debt owed by American families, which is almost twice as high as it was as recently as 1999.

“Paying interest and trying to pay down principal on this debt is siphoning off much of the spare cash people have. Which means the ability of consumers to spend their way out of the current predicament is constrained,” he noted.

Davis says the last time debt levels were as far out of whack as they are today was following the Great Depression in the 1930s. What eventually changed the dynamic then was rapidly escalating inflation, which over time enabled consumers to pay off debts with cheaper, inflated dollars.

“Some are suggesting a 5 percent annual rise in the Consumer Price Index (CPI) with a similar bump in wages and asset values would be enough to get things steadily moving forward in the right direction. A 20 percent general rise in home prices without any other changes would also be enough to unfreeze the economy, they say.

“Less clear is the chain of events that will need to happen in order to bring all this to pass,” he said.

At the moment, Davis says central bankers remain focused on what needs to be done to keep inflation in check, remembering how difficult it was to rein it in the last time inflation rampaged out of control.

When then Fed Chairman Paul Volker (lower left photo) declared war on inflation in 1979, short- term interest rates shot up from 9 percent to 22 percent, fell back to 11 percent, then went on to peak at 22 percent. During this extended period, long-term rates fluctuated between 9 percent and 15 percent.

Davis says senior housing/healthcare borrowers should be able to rely on relatively low interest rates for the foreseeable future, but the long-term outlook is less certain. It all depends on how policy makers balance concerns about inflation, indebtedness and sustainable growth scenarios.

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

NAI Realvest Negotiates Sale of Retail site in Deltona, FL for $360,000

 ORLANDO, FL  -- NAI Realvest recently negotiated the $360,000 sale price for a retail site on Welcome Center Drive and Deltona Boulevard in Deltona.    . 

 Paul P. Partyka (top right photo), managing partner at NAI Realvest, who represented the seller, SAM III Deltona LLC of Fisher Island, Fla., said the property was purchased by local investment firm, Constant Level LLC.    

The 48,787 square foot parcel of land was originally slated for a Sonic drive-in restaurant but the new owner has not yet disclosed how the property will be developed, Partyka said.

Barbara Burnett of Omega One Realty represented the buyer.

For more information, contact
Paul P. Partyka, Managing Partner, NAI Realvest, 407-875-9989;
Patrick Mahoney, President, NAI Realvest, 407-875-9989;
Larry Vershel or Beth Payan, Larry Vershel Communications 407-644-4142

J.W. Marriott Jr. Recognizes Orlando World Center Marriott for 25 Years of Service Excellence

ORLANDO, Fla.--(BUSINESS WIRE)--The world-class leader of premier resort properties in the Southeast, the 2000-room Orlando World Center Marriott (top left photo) celebrates 25 years of service excellence with accolades from J.W. Marriott, Jr. (bottom right photo), Chairman and Chief Executive Officer of Marriott International, Inc. (NYSE: MAR)

In a specially prepared anniversary video showcasing the landmark property’s history, Mr. Marriott states, “This very special milestone symbolizes the very best quality of our company’s legacy.

“The Orlando World Center Marriott continues to raise the bar and set the trend for outstanding convention and vacation experiences.”

If you haven’t experienced the Orlando World Center Marriott, now is definitely the perfect time! Leisure travelers looking for added value simply book by July 22, 2011 and save 25% off room rates ranging from $123 per room, per night, July 11 - October 30, 2011.*

This award-winning, eco-savvy hotel boasts a remarkable 450,000 square-feet of event space, all under one roof and most entirely on one level. Planners will discover the 105,000 square-foot Cypress Ballroom (the nation’s largest pillar-free resort ballroom).

The resort is home to newly renovated guest rooms and suites, most with spacious balconies; 18-hole championship golf course; Bill Madonna Golf Academy at Hawk’s Landing Golf Club; tennis courts and a full service spa.

 For reservations, call 888-99-WORLD and ask for rate code F9L, or visit

The Four-Diamond, 2000-room resort is located only 1.5 miles from Walt Disney World® and just minutes from SeaWorld® Orlando, Discovery Cove®, Aquatica™ and Universal Studios® Orlando.

Visit Marriott International, Inc. (NYSE: MAR) for company information.

Nadine DeGenova Public Relations
Nadine DeGenova, 407-682-2625

Pacific Office Compliance Plan Accepted by NYSE Amex

SAN DIEGO--(BUSINESS WIRE)--Pacific Office Properties Trust, Inc. (NYSE Amex: PCE), a real estate investment trust owning interests in 45 office buildings primarily in Hawaii and California, announced today that the NYSE Amex (the “Exchange”) has accepted the Company’s plan for regaining compliance with the Exchange’s listing standards (the “Plan”).

The Plan was submitted in response to notification from the Exchange of the Company’s non-compliance with certain continued listing standards. With the Exchange’s acceptance of the Plan, the Company’s listing is expected to continue through October 19, 2012, by which time the Plan calls for the Company to regain compliance with all continued listing standards.

Pacific Office Properties Trust, Inc. ( is a self-administered and self-managed real estate investment trust that owns and operates primarily institutional-quality office properties principally in selected long-term growth markets in southern California and Hawaii.

The Company’s strategy is to acquire, often in partnership with institutional co-investors, value-added office buildings whose potential can be maximized through improvements, repositioning and superior leasing and management.


Pacific Office Properties Trust, Inc.
James R. Ingebritsen
Chief Executive Officer

CNL Lifestyle Properties, Inc. Commences Exchange Offer of 7.250% Senior Notes Due 2019 for Registered Notes

ORLANDO, FL.--(BUSINESS WIRE)--CNL Lifestyle Properties, Inc. (the “Company”) announced today that the Company, together with certain of its wholly-owned subsidiaries acting as guarantors (the “Guarantors”), have commenced a registered exchange offer to exchange up to $400 million aggregate principal amount of the Company 7.250% Senior Notes due 2019, which have been registered under the Securities Act of 1933, as amended (the “Exchange Notes”), for any and all of the Company’s outstanding 7.250% Senior Notes due 2019, which were issued in a private placement (the “Private Notes”).

The Private Notes and the Exchange Notes are the senior unsecured obligations of the Company and are guaranteed by the Guarantors.

For a complete copy of the company’s news release, please contact: Lisa Schultz, Chief Communications and Human Capital Officer

For more information, visit

Jennifer Convertibles Reports Opening New Warehouse in North Carolina

WOODBURY, N.Y. /PRNewswire/ -- Jennifer Convertibles, Inc. ( has opened a new warehouse in North Carolina.

Rami Abada, President of Jennifer, commenting on the warehouse said, "With the addition of new product lines and new vendors, we feel this warehouse will help us with our growth plans as well as improve our supply chain."

Jennifer Convertibles is the owner of the largest group of sofabed specialty retail stores in the United States, with 65 Jennifer Convertibles® stores and is the largest specialty retailer of leather furniture with 8 Jennifer Leather stores.

 As of July 11, 2011, the Company owned 73 stores and operates six licensed Ashley Furniture HomeStores.

Contact: Jennifer Convertibles, Inc., 516-496-1900,

Grubb & Ellis Represents Campus Living Villages in $38 Million Refinance

CHAMPAIGN, IL – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, announced that Jim Adams, executive vice president and member of Grubb & Ellis’ Debt & Equity Finance group, represented Campus Living Villages in refinancing a $38 million loan on Illini Tower (top left photo). 

Campus Living Villages, a global leader in student housing, operates the 16-story property, which is located at 409 E. Chalmers St., adjacent to the University of Illinois Urbana–Champaign.  The loan on Illini Tower is through a CMBS lender.  Terms of the refinance included a 10-year fixed rate loan with a 70 percent loan to value ratio.

 With 43 years of history on the University of Illinois campus, Illini Tower, a Private Certified Housing Facility, has drawn generations of families for its prime location and blend of residence hall community life with suite-style floor plans, ranging from open studios to four-bedroom, two-bath units. 

Since acquiring the 725-bed property in June 2008, Campus Living Villages has introduced superior academic and social offerings through its Live, Learn, Grow residential life programming model, acclaimed dining at the 276-seat Piazza Fresca, plus a full-range of preferred amenities. 

A $1 million renovation of public and exterior spaces was completed in spring 2011.

 Contact: Julia McCartney, Phone: 714.975.2230                                     

1.17 Million Homes Receive Foreclosure Notice During First Six Months of the Year

IRVINE, CA – July 14, 2011 – RealtyTrac® (, the leading online
marketplace for foreclosure properties, today released its Midyear 2011 Foreclosure Market Report, which shows a total of 1,170,402 U.S. properties received foreclosure filings — default notices, auction sale notices and bank repossessions — in the first six months of 2011, a 25 percent decrease from the previous six months and a 29 percent decrease from the first half of 2010.

 The report also shows that 0.90 percent of all U.S. housing units (one in 111) had at
least one foreclosure filing in the first half of the year.

Foreclosure filings were reported on 222,740 U.S. properties in June, an increase of nearly 4 percent from the previous month, but a decrease of 29 percent from June 2010. June was the
ninth straight month where foreclosure activity decreased on a year-over-year basis. Default notices, scheduled auctions and REOs were all up on a month-over-month basis but down on a year-over-year basis in June.

Foreclosure filings were reported on 608,235 U.S. properties during the second quarter, a decrease of nearly 11 percent from the first quarter and a decrease of 32 percent from the second quarter of 2010.

The second quarter total was the lowest quarterly total since the fourth quarter of 2007. All categories of foreclosure were down both on quarterly basis and annual basis in the second quarter
“It would be nice to report that foreclosure activity is dropping as a result of improvements in the economy or the housing market,” said James J. Saccacio (top right photo), chief executive officer of RealtyTrac.

 “Unfortunately, with unemployment rates inching back up, consumer confidence weak and home sales and prices continuing to languish, this doesn’t appear to be the case.

“Processing and procedural delays are pushing foreclosures further and further out – we estimate that as many as 1 million foreclosure actions that should have taken place in 2011 will now happen in 2012, or perhaps even later.

“This casts an ominous shadow over the housing market, where recovery is unlikely to happen until the current and forthcoming inventory of distressed properties can be whittled down to a manageable number.”

For a complete copy of the company’s news release, please contact:
Michelle Schneider
Public Relations Consultant
(949) 502-8300 x139

Interstate Hotels & Resorts Executes Agreements with NBB-Development to Manage Six Hotels in Sochi, Russia, Site of 2014 Winter Olympics

ARLINGTON, Va., July 14, 2011—Interstate Hotels & Resorts, the United States’ largest independent hotel management company, today announced that it has been selected to manage six hotels to be developed by NBB-Development in Sochi, a sea and mountain resort area in southwestern Russia and site of the 2014 Winter Olympics. 

The properties, which will aggregate 1,564 rooms and are expected to open in fall of 2013, comprise a city center business hotel, a golf resort and four hotels in the mixed-use real estate development that is an integral part of the infrastructure of the 2014 Winter Olympics.

“Russia is where we began our international outreach more than 16 years ago,” said Thomas F. Hewitt (middle right photo), Interstate’s chairman and chief executive officer.  “These six properties add to our growing European portfolio. 

“We pioneered independent third-party management in Russia and currently operate seven significant hotels in Moscow.  We believe there are continued opportunities throughout the region and have a full team in place to oversee this expected growth.”

The city and resort area of Sochi is located in the Krasnodar Kray region in southwestern Russia, stretching along the Black Sea coast at the foot of the western part of the main Caucasus mountain range.

 The six resort hotels, ranging in size from 150 to 400 rooms, collectively will constitute the majority of the available rooms inventory for a high-quality, mixed-use development that will feature multiple shopping and entertainment facilities, health and spa centers, museums, a conference center and the Museum of the Olympic History and Glory.  The development also will feature a wide variety of sports, leisure and recreation activities.

“Interstate has in-depth expertise in operating resorts in a variety of settings, ranging from beach to mountain and desert to island,” said Chris Bennett, managing director, international.  “In addition to management upon opening, we will provide technical services and pre-opening oversight during the construction phase. 

“This is an exciting project and we look forward to bringing to bear all the advantages of our successful business model, including a solid operating platform, strong local affiliations, cultural expertise and long and positive relationships with the major international hotel brands,” he added.

 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