Sunday, October 23, 2011

Grubb & Ellis Presents Chicago Office Market Trends Third Quarter 2011


CHICAGO, IL -- The following summary is designed to provide a brief overview of the Chicago metro office and market during the third quarter of 2011. 

 The Chicago office market continued to improve in the third quarter as vacancy dropped 80 basis points to 19.3 percent overall. 

(Downtown retail district top left photo)

o    Vacancy in Chicago’s CBD decreased 60 basis points to 16 percent in the third quarter.  Five leases were signed for more than 100,000 square feet in the CBD during the same time period.

The market recorded nearly 2 million square feet of positive net absorption, bringing the year-to-date total to more than 2.6 million square feet absorbed. 

The only submarket to post negative net absorption was North Michigan Avenue, where 75,782 square feet of space was put back on the market. 

Asking rental rates for Class A space averaged $29.23 per square foot in the third quarter, down $0.02 from the previous quarter.  During the same time, asking rental rates for Class B space declined $0.30 to $23.98 per square foot. 

(O'Hare International Airport lower left photo)

Approximately 5.9 million square feet of sublease space remained available in the region at the end of the quarter, a 600,500-square-foot reduction from the second quarter. 

Key transactions of the third quarter include Fifth Third Bank’s renewal and expansion for a total of 218,135 square feet at 222 S. Riverside Plaza. 

Additionally, State Farm Insurance renewed its lease of 132,520 square feet at 1400 Opus Place in Downers Grove. 

Analysis and Forecast:

National economic concerns, an increase in the state and local unemployment rates and layoff announcements have caused concerned in the Chicago area.  Local unemployment increased 70 basis points to 10.4 percent between April and August. 

As a result of this uncertainty, the local office market is expected to see a setback in improvement into 2012.  Asking rental rates will likely remain flat as the layoffs remain a concern.  Companies with large office space requirements are expected to support the CBD and suburban leasing market throughout 2011.

 To access the full Chicago Metro Trends reports and other Grubb & Ellis research publications, visit

For more information or to speak with one of the company’s local market experts, please contact Damon Elder at 714.975.2659 or via email at

The Westin Xian Will Soon Rejuvenate China’s Eternal City in December 2011

 Shaanxi Province, CHINA —Westin Hotels & Resorts today announces that The Westin Xian (top left photo) will open December 1, 2011, marking the entry of the Westin brand into the Shaanxi province of China and one of the four major ancient civilizations in the world, along with Athens, Cairo and Rome.

“We are delighted to introduce the Westin brand to Xian! The location of this hotel in one of the most important cities in Chinese history (Xian has often been lauded the national history museum of China) also reinforces Westin's positioning around personal renewal by offering guests the services, products and amenities that allow them to relax and rejuvenate during their stay,” said Magdy Anis, General Manager of The Westin Xian.

Hwee Peng Yeo
Director of Asian Markets
Glodow Nead Communications
Level 21, Centennial Tower
3 Temasek Avenue
Singapore 039190

Grubb & Ellis Marketing New 398,000 SF Speculative Development in Chino, CA by The Carson Companies


ONTARIO, CA – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm,  announced that The Carson Companies retained Mark Kegans (top right photo), SIOR, and Ron Washle (middle left photo), SIOR, senior vice presidents, Industrial Group, and members of the company’s Global Logistics practice group, as the leasing agents of 16043 El Prado Road, an approximately 398,000-square-foot speculative industrial development within the Chino South Business Park in Chino.

 The cross dock loading facility is planned for LEED® certification with the U.S. Green Building Council and will include a minimum of a 32-foot clear height, 75 dock-high doors and two ground-level doors.

 The property spans 18.7 acres of land within the 142-acre Chino South Business Park and currently offers 100 trailer parking positions with the ability to expand to accommodate an additional 90 trailers.  The project broke ground in early September and is scheduled for completion first quarter 2012. 

 “This is one of the first speculative industrial developments in the western Inland Empire for quite some time,” said Kegans.  “It offers users an opportunity to locate to a new facility located within a well-developed business park.”

 For leasing information, call 909.605.1100, or contact Kegans at, or Washle at 

 Media Contact: Julia McCartney, Phone: 714.975.2230                                     

Cousins Properties Declares Fourth Quarter Preferred Stock Dividends

 ATLANTA, GA-- Cousins Properties Incorporated (NYSE: CUZ) announced that its Board of Directors has declared a regular quarterly cash dividend on its Series A Cumulative Redeemable Preferred Stock.

The dividend of $0.484375 per share, or $1.9375 on an annualized basis, is payable November 15, 2011, to Series A preferred stockholders of record on November 1, 2011.

The Board of Directors has also declared a regular quarterly cash dividend on its Series B Cumulative Redeemable Preferred Stock. The dividend of $0.46875 per share, or $1.875 on an annualized basis, is payable November 15, 2011, to Series B preferred stockholders of record on November 1, 2011.

The Company also announced that it expects to declare its regular quarterly common dividend in mid-November 2011, to be paid in late December 2011. The timing of the fourth quarter 2011 common dividend is consistent with the CompanyĆ¢€™s historic practice for all cash dividends.

Contact: Cameron Golden, 404-407-1984
Director of Investor Relations and Corporate Communications

Southern Commercial Completes Over $20 Million in Third-Quarter Central Florida Transactions


ORLANDO, FL --  Southern Commercial Real Estate Advisors completed $20,000,000 in lease and sale transactions totaling over 640,000 SF during 3rd quarter of 2011.  

Southern Commercial recently completed transactions with Signature Brands for 120,400 SF, Barr Display for 56,125 SF, Standard Register for 36,700 SF, Alpha Logistics for 28,000 SF, Melco for 22,508 SF,  Johnson Wholesale Floors for 18,000 SF, and STAT Imaging for 17,568 SF to name a few.

Media Contact:  Celeste MacKenzie, 321-281-8503,                                   

Fitch: Corrected U.S. CMBS Loans Leaving Investors Guessing

NEW YORK, NY--Many  specially serviced U.S. CMBS loans are returning to performing status without  current  financial  data,  leaving  investors in the dark over the property’s  performance, according to Fitch Ratings in its latest U.S. CMBS newsletter.

Fitch  reviewed  a  slew of loans that returned to master servicing in July
and  August  and  found limited financial reporting since prior to the loan
transferring  to special servicing. Fitch also found that approximately 60%
of  the  loans  in  special servicing classified as current on debt service
payments have not reported year-end 2010 financial data.

'That   special  servicers  are  not  collecting  operating  statements  on
specially  serviced loans and reporting them through the master servicer is
disconcerting,' said Adam Fox, Senior Director.

 Fitch has asked several of the larger special servicers to provide business plans for a sample of recently corrected loans where recent financials were not reported.

Additional  information  is available in Fitch's weekly e-newsletter, 'U.S. CMBS  Market  Trends',  which  also  contains  recent rating actions and an overview  of  newly  released  CMBS  research, including Fitch presales and Focus  reports.  The  link  below enables market participants to sign up to receive future issues of the E-newsletter:


Adam Fox
Senior Director
Fitch, Inc., One State Street Plaza, New York, NY 10004

Mary MacNeill
Managing Director

Media   Relations:   Sandro   Scenga,   New  York,  Tel:  +1  212-908-0278:

Additional information is available at

IPA Sells 100-Unit Canyon Heights Apartments in Oceanside, CA

 OCEANSIDE, CA– Institutional Property Advisors (IPA), a recently formed multifamily brokerage division of Marcus & Millichap serving the needs of institutional and major private investors, has negotiated the sale of Canyon Heights Apartments (top left photo), an 81,400-square foot multifamily community in Oceanside. The terms of the sale were not disclosed.

IPA’s Stewart Weston (middle right photo), a senior vice presidents investments in Long Beach and Chris Zorbas, a vice president investments in San Diego office of Marcus & Millichap, represented the seller. The buyer, San Francisco-based Fowler Property Acquisitions, was also represented by Weston and Zorbas. IPA is a division of Marcus & Millichap Real Estate Investment Services.

“There is tremendous demand for larger multifamily assets in San Diego County, and these opportunities are rare in this supply constrained market” says Weston. “Canyon Heights Apartments is just minutes from the beach, providing an affordable living option for this coastal community.”

“The low cost of capital has brought a number of out-of-area buyers to the market,” adds Zorbas. “The rental market has tightened recently, and as a result, concessions are leaving the market.”

Located at 180 Canyon Drive, just off Mission Avenue, the property is easily accessible from Interstate 5 and California state routes 76 and 78.

 Canyon Heights Apartments has a unit mix of 20 one-bedroom units and 80 two-bedroom apartments. The property features a resort-style swimming pool, a playground, controlled access and on-site laundry facilities.

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

$31 Million Apartment Complex in Glendale Heights, IL Listed by Marcus & Millichap

GLENDALE HEIGHTS, IL – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has received the exclusive listing for Stonegate Apartments (top left photo), an 11-building  420-unit apartment complex in Glendale Heights. The listing price of $31 million equates to $73,810 per unit.

 Nicholas Manganais, an associate vice president investments, and David Tarnoff, a vice president investments, both in Marcus & Millichap’s Chicago office, are representing the seller, Stonegate Venture Corporation.

The apartment complex is located with frontage along heavily traveled Glen Ellyn Road, at the intersection of Gregory Avenue, approximately 24 miles west of Chicago in DuPage County.

Stonegate Apartments was built in 1976 and renovated in 2006. All units have new sprinklers and smoke and carbon monoxide detectors. The complex features landlord-supplied gas for heating and cooking, ample parking and mature landscaping with multiple green open areas. 

“Stonegate Apartments’ convenient location, strong demographics, admirably well-cared-for physical condition, high occupancy and solid operations make this a compelling acquisition opportunity that will serve an investor well for many years to come,” says Manganais.

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

Marcus & Millichap Sells $52 Million Seniors Housing Portfolio

CHICAGO, Oct. 17, 2011 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has closed the sale of a three-property seniors housing portfolio in Indiana. The properties were sold $52 million. They are:

  • Forest Creek Commons, 122 units, Indianapolis
  • North Woods Commons, 114 units, Kokomo
  • Covington Commons, 154 units, Fort Wayne (top left photo)
 Mark Myers (middle right photo), a senior vice president investments in Marcus & Millichap’s Chicago office, Christopher Hyldahl, a senior associate in the firm’s West Los Angeles office, and Joshua Jandris, a seniors housing property specialist in Chicago, represented the seller, BAI of Indiana, and the buyer, Five Star Quality Care Inc.

Joshua Caruana (lower left photo), of Marcus & Millichap’s Indianapolis office, is the firm’s broker of record in Indiana.

“These properties are institutional-quality real estate with strong existing cash flows,” says Myers. “Their acuity levels, physical makeup and locations are uniquely positioned to maximize demand and value within their respective upper-middle class markets. Each property has sustained occupancy levels greater than 90 percent,” adds Myers.

Forest Creek Commons is a single-story apartment building located on the south side of Indianapolis on U.S. Highway 31, south of Interstate 465. The property serves St. Francis Hospital’s Indianapolis campuses and Community Hospital South. The facility has 56 studios, 28 one-bedroom apartments and 38 two-bedroom apartments. The assisted-living portion of the property was constructed in 1995 and an addition was built in 2006. The garden homes were constructed in phases from 1996 to 1998.

North Woods Commons is a single-story apartment building located on the northwest side of Kokomo next to the Howard Regional Health Specialty Hospital and is within one-half mile of the St. Joseph Hospital campus. The property features 50 studios, 42 one-bedroom units and 22 garden homes on an approximately five-acre campus. The assisted living section was constructed in 1997 and added on to in 1998. The garden homes were built in two phases in 1998 and 2005.

Covington Commons features 64 studios, 24 one-bedroom units and 48 two bedroom garden homes on an approximately 12-acre campus. The single-story apartment building is located on the southwest side of Fort Wayne, just east of Interstate 69, near the new Lutheran Hospital campus. The facility serves the south and west sides of greater Fort Wayne.

The three apartment communities all provide a full range of congregate services, including restaurant-style all-day meal service, transportation, housekeeping, flat linen service, activities and common area amenities. The apartment units address the needs of seniors who don’t require full-time skilled nursing care, but do require assistance with dining, dressing, bathing, medication setup and reminders and other daily activities.

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