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
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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