Friday, October 28, 2011

CalPERS Efforts Save State More Than $1 Billion in Employee Health Costs in Three Years

SACRAMENTO, CA – The California Public Employees’ Retirement System (CalPERS) recently reported to the State Legislature that it has saved the state $1.2 billion in health care costs since 2008.

In a letter to California’s Joint Legislative Budget Committee Chair, State Senator Mark Leno (middle left photo), CalPERS Chief Executive Officer Anne Stausboll (top right photo) reported CalPERS reduced the cumulative health care costs for state and public agency employees by $1.2 billion over the last three years.

Of that amount, CalPERS achieved more than $587 million in savings for the State’s General and Special Funds. The letter accompanied a required report to the Committee regarding CalPERS 2012 health rate premiums and one-time savings.

The report indicated savings for 2011 were just over $78 million, including more than $36 million in savings for the State General and Special Funds. Pharmacy copayment changes, the use of high-performance provider networks, and CalPERS value-based purchasing and health care cost savings initiatives accounted for a large portion of those savings.

 The report shows 2012 health cost savings at more than $104 million with almost $50 million in savings for the State General and Special Funds. In her letter, Stausboll wrote that CalPERS was able to negotiate premium rate increases of only 4.1 percent for 2012 to help achieve those savings.

“Each year, the (CalPERS) Board of Administration carefully considers specific strategies that will reduce the premium costs by extracting costs from the system on a long-term basis, and strategies that will result in one-time savings,” wrote Stausboll. “We will continue to pursue robust rate negotiations and partner with our health plans to minimize future rate increases and ensure CalPERS members have access to affordable, quality health care.”

CalPERS is the largest purchaser of public employee health benefits in California, and the second largest public purchaser in the nation after the federal government. CalPERS provides health benefits to more than 1.3 million State and public agency active and retired members at an annual cost of nearly $7 billion.

External Affairs Branch
(916) 795-3991
Robert Udall Glazier, Deputy Executive Officer
Brad Pacheco, Chief, Office of Public Affairs
Contact: Bill Madison, Information Officer

Two New Leases From Berger Commercial Realty Corp.

 FORT LAUDERDALE, FL – Judy Dolan (top right photo) and Greg Milopoulos (bottom left photo) of Berger Commercial Realty Corp., a full service commercial real estate firm based in Fort Lauderdale, Fla., and serving clients around the state, announced two lease transactions.

 Dolan and Milopoulos represented landlord GA 4711 Australian Avenue, LLC in the lease renewal of 3,064 square feet of warehouse space in Mangonia Park, located at 4711 N. Australian Avenue in West Palm Beach, to tenant Jack the Bike Man.

Dolan and Milopoulos also represented landlord Merrill Industrial Center, Inc. in the lease of 4,071 square feet of space in a warehouse located at  3406 SW 26th Terrace in Fort Lauderdale to tenant Brandwood LLC.

 For more information, visit

 Marielle Sologuren
Pierson Grant Public Relations
(954) 776-1999, ext. 226

Canadian REIT Acquires $16 Million Net-Leased Retail Property in Vorhees, NJ

VORHEES, NJ– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has negotiated the sale of a retail condominium (top left photo) in Vorhees net leased to BJ’s Wholesale Club. The sales price of $15.9 million represents $138 per square foot.

Matthew Gorman and Tom Gorman, senior associates in Marcus & Millichap’s Philadelphia office, along with Michael S. Shover, an associate also based in Philadelphia, represented the seller, a prominent local developer that owns a substantial portfolio of office and retail properties.

 The Gormans and Shover teamed up with Marcus & Millichap’s Mark Taylor (middle left photo), a first vice president investments, and Dean Zang (middle right photo), a vice president investments, to represent the buyer, H&R REIT of Canada.

“We worked diligently to execute this transaction,” explains Matthew Gorman. “From marketing to closing, the entire transaction took only 90 days.

“With a loan assumption involved, it was remarkable. The seller needed to raise cash quickly and had lots of equity in this property. Initially, it looked like a straight-forward net-lease deal until BJ’s announced plans to sell its operations, which raised questions about the company’s future credit rating,” he continues.

 “Also complicating the transaction was the property’s subordination to a condo association. Finally, there was a debt assumption, which in some cases can take up to 90 days alone.”

In the end, the property’s excellent location in a market with high barriers to entry, high land costs and strong demographics, combined with the strength of Marcus & Millichap’s brokerage platform, resulted in a qualified buyer, which was sourced from a large pool of interested investors, says Matthew Gorman.

 “We received nine offers from institutional and private investors, including 1031 exchange buyers and local, high net-worth individuals. “Both domestic and international capital expressed interest in this asset.”

Located at 152 Route 73, the 115,396-square foot property was developed as a reverse build-to-suit for BJ’s Wholesale Club in 2004. BJ’s has 13 years of term remaining on its existing 20-year lease.

BJ’s is co-anchored by a Lowe’s Home Improvement store, which is located in the 355,917-square foot Cedar Hill Shopping Center, a regional power center. Virtua Health recently constructed a two million-square foot, 125-acre medical center across the street from Cedar Hill, further boosting BJ’s property values over the long term.

The affluent population within a five-mile radius of the property totals more than 153,000.

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

Bulk Condo Sale in Suburban Tampa Nets $10.2 Million


RIVERVIEW, FL – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of Allegro Palm (top left photo), a 432-unit condominium community in Riverview. The sales price of $10,275,000 represents $50,368 per unit and $49 per square foot.

Still Hunter, III (middle right photo) and Evan P. Kristol (lower left photo) senior vice presidents investments in Marcus & Millichap’s Fort Lauderdale office, represented the seller, a South American investment group.
“Allegro Palm was built in 2000 as a Class A apartment community and was operated as such until March 2005 when it was converted to condos,” says Hunter. “The developer sold more than 200 condominiums at an average price of nearly $175,000 per unit before sales stalled.”

“The new ownership acquired the unsold inventory at an incredible discount to peak value,” adds Kristol. “Allegro Palm is a well-located, high-quality community with tremendous upside potential.”

The Allegro Palm property is located at 5501 Legacy Crescent Place in Riverview, Fla., approximately 14 miles from Tampa near Ybor City, Interstate 75 and Lee Roy Selmon Expressway. In all, the sale included 204 condominiums, 32 detached garages, 11 carports and 22 storage units.

The property has seven floor plans with 76 percent two-, three- and four-bedroom units. The living spaces feature ceramic tiling, built-in shelving, large walk-in closets and vaulted ceilings. Community amenities include two resort-style pools, outdoor lounge with fireplace and basketball and tennis courts.

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

Webinar on SBA 504 Loans for small business owners expanded by Mercantile Capital after more than 280 people register to participate

ORLANDO, FL. --- Mercantile Capital Corporation has expanded its Nov. 1 webinar for small business owners who want to learn how changes in the rules governing U.S. Small Business Administration (SBA) 504 loans for small business owners can help them.

Christopher G. Hurn (top right photo), chief executive officer of Mercantile Capital Corporation, said record response to the webinar announcement shows how much interest their is in the new rules, which will allow borrowers to include many operating expenses in their loan request.

Mercantile Capital Corporation ranks as one of the nation’s most active providers of SBA 504 loans, which were designed for small business owners who want to acquire or develop their own facilities.

 Hurn said new SBA 504 rules permit use of SBA 504 funds to refinance commercial property loans at below market interest rates over fixed 20 year terms with as little as 10 percent down, and will permit SBA 504 financing of many business operation expenses as well. Moreover, the 10 percent equity requirement need not be entirely cash.

The new rules are in effect until September of 2012, so it is imperative that businesses make their decisions and lock in their rates soon, Hurn said.

Small business owners can register for the free webinar by visiting

For more information, contact:
Chris Hurn, Mercantile Capital Corporation, 407-786-5040
Robin Lashley, Mercantile Capital Corporation, 407-786-5040

Chatham and Cerberus Close Innkeepers Acquisitions

 PALM BEACH, FL– Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) focused on investing in premium-branded, select-service hotels, and affiliates of Cerberus Capital Management, L.P., a private investment firm, today announced that they have completed the acquisition of 64 hotels from affiliates of Innkeepers USA Trust. 

The joint venture between Cerberus and Chatham acquired the 64 hotels, aggregating 8,329 rooms, for a total gross purchase price of approximately $1.02 billion, including the assumption of approximately $675 million of mortgage debt on 45 of the hotels with a weighted average interest rate of 6.71 percent and maturing in 2017. 

The other 19 hotels are unencumbered. The purchase price per room, net of cash reserves, was approximately $118,000 per room/suite.

Chatham owns an approximate 10.3 percent interest in the joint venture and funded its $37 million investment in the joint venture with borrowings under its senior secured revolving credit facility.

  Chatham will provide certain asset management services to the joint venture and will receive a promote interest based on meeting certain return thresholds.  All costs of operating the joint venture will be paid by the joint venture.
 All but one of the 64 acquired hotels will continue to be managed by Island Hospitality Management, a hotel management company that is 90 percent owned by Jeffrey H. Fisher (top right photo), Chatham’s chief executive officer and president.

For a complete copy of the company’s news release and a list of the hotels involved, please contact:

Dennis Craven (Company) Chief Financial Officer, (561) 227-1386  
Jerry Daly or Carol McCune, Daly Gray (Media) (703) 435-6293

HFF arranges $6 million financing for 501 and 601 Penhorn Avenue in Secaucus, NJ


FLORHAM PARK, NJ – HFF announced today that it has arranged $6 million in financing for 501 and 601 Penhorn Avenue (top left photo), two industrial buildings totaling 100,000 square feet in Secaucus, New Jersey.

HFF worked on behalf of Bhasin Properties to secure the long-term, fixed-rate loan through Principal Real Estate Investors. 

501 and 601 Penhorn Avenue are situated on seven acres close to Interstate 95/The New Jersey Turnpike and the Lincoln Tunnel in Secaucus.  The properties are 100 percent leased to 5,000-square-foot tenants that require close proximity to New York City.

The HFF team representing Bhasin Properties was led by senior managing director Jon Mikula (middle right photo).

Bhasin Properties specializes in the development and leasing of master-planned, state-of-the-art office and warehouse buildings in the prime Secaucus area.

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

Sperry Van Ness Brokers $7.4M GSA Building Sale in Sierra Vista, AZ


 PHOENIX, AZ – Phoenix-based Sperry Van Ness I MVP CRE Advisors has completed the $7.4 million sale of a 23,485-square-foot General Services Administration (GSA) building in Sierra Vista, Ariz (top left photo).

 The buyer is New York-based real estate REIT that acquires single-tenant, freestanding properties throughout the U.S.

“We’re seeing a definite up-tick in investor appetite for government-leased assets,” said Mark Phillips, Managing Director of SVN I MVP and broker for the Sierra Vista transaction. “GSA properties are backed by the Federal Government in the same way a Treasury Bond is, so they often act as both a safe haven for an investor’s capital and a conduit for long-term, lower-risk rental income. In this economy, that is an attractive combination.”

 The Sierra Vista property is a former Lazy Boy showroom that was renovated and converted into a LEED Certified “Silver” office building. It is 100 percent occupied by the Department of Interior on a 10-year lease with the U.S. Federal Government. According to its 2009 financial report, the GSA renews its first-time leases 96 percent of the time.

The facility will be used as the National Business Center for the Department of Interior (the purchasing agent for the DOI). The DOI has been operating in Sierra Vista for more than 20 years, during which time it has experienced steady and managed growth. The new building will more efficiently house DOI operations and support its continued growth in Sierra Vista.

“GSA property transactions can be very complex, but that has not deterred demand,” said Phillips. “Even with our experience in the sector, we spent several months vetting two unsuccessful buyers for the Sierra Vista assignment. We then identified the third buyer and closed in just 45 days for all cash. I expect to close several other GSA buildings year’s end.”

 For more information, please, visit
Stacey Hershauer
Marketing & Public Relations
(480) 600-0195

CLW Health Care Services Group Participates in Sale of Three Senior Housing Communities

TAMPA, FL -- CLW Health Care Services Group is pleased to have represented affi liates of Pulliam Investment Company of Spartanburg, South Carolina in the sale of three Senior Housing communities.

The portfolio offers Independent Living, Assisted Living and Memory Care. The properties were purchased by Capital Senior Living Corporation for $30,000,000.

The properties are

Laurelhurst/Laurelwoods, Columbus, NC (top left photo); Summit Place, Anderson, SC (middle right photo) and North Pointe, Anderson, SC (bottom left photo)

Contact: Allen McMurtry • 813.349.8349 •

Interstate Hotels & Resorts Forms Joint Venture, Acquires Crowne Plaza Tampa East

ARLINGTON, VA And TAMPA, FL Oct. 28, 2011 - Interstate Hotels & Resorts, the United States’ largest independent hotel management company, today announced that it has acquired the 265-room Crowne Plaza Tampa East in Florida through a joint venture with Waramaug Hospitality, LLC and a private investment group. 

Interstate assumed management of the hotel upon completion of the acquisition, and the hotel will immediately undergo a comprehensive $8.5 million renovation. 

 “It is extremely gratifying to earn new business from existing partners, and we are thrilled to have this opportunity to work with them again,” said Thomas F. Hewitt (middle right photo), Interstate’s chairman and chief executive officer.  “This new acquisition transaction represents our second with Waramaug Hospitality this year, and we look forward to expanding our relationship moving forward.”

“The Crowne Plaza Tampa East represents a compelling investment opportunity, and we fully expect to deliver superior results,” said Jim Abrahamson (lower left photo), Interstate’s president and COO.  “The hotel’s location, adjacent to a thriving business park and close to a number of leisure demand generators, greatly enhance the long-term potential of this investment.”

Located at 10221 Princess Palm Avenue, across the street from Sabal Business Park, one of Tampa’s most attractive office markets, the Crowne Plaza is the only full service hotel with a significant amount of meeting space in the area.  Hotel amenities include a restaurant, outdoor swimming pool, business center, recreation and sports court, as well as 30,000 square feet of flexible meeting space.

 “Based on the performance of our initial joint venture transaction with Interstate, we have the utmost confidence in their continued ability to deliver superior operating and investment results,” said Paul Nussbaum, Waramaug’s chief executive officer.  “We expect to undertake a major $8.5 million renovation of this hotel, which will position the property ideally to take full advantage of an improving local economy.”

For additional information about Interstate, visit the company’s website:

Jerry Daly, Carol McCune, Daly Gray, Media, (703) 435-6293,            
Carrie McIntyre, Interstate Hotels & Resorts, SVP, Treasurer, (703) 387-3320

The Marketing Directors to Re-Launch Sales & Marketing for The Residences at W Atlanta Downtown

 ATLANTA, GA – The new owners, Downtown Atlanta Hotel Owner, LLC, of The Residences at W Atlanta - Downtown have named The Marketing Directors the exclusive sales and marketing team for the residences located at 45 Ivan Allen Boulevard in Downtown Atlanta.  The Marketing Directors has been engaged to re-launch the 73 homes that remain available for purchase. 

 “This is a unique opportunity for buyers,” says David Tufts, The Marketing Directors president.  “The superior value proposition now available at The Residences at the W Atlanta - Downtown is truly compelling.  This is a rare jewel in Atlanta – true modern design with very high-end custom fit and finishes.  There is nothing else of this quality and design available in the market.  This is the perfect time for a successful re-launch of The Residences.”

The sales and marketing efforts for The Residences at the W Atlanta - Downtown will be spearheaded by veteran Atlanta real estate professionals Tufts, Betty Harbourt, Uri Vaknin and Allison Beldick. 

The new owner is controlled by Square Mile Capital Management, a private investment firm based in New York City.  As a diversified real estate investment firm, it takes a value-oriented approach to its investment activities.

 For More Information Contact:
Liz Lapidus /Traci Buch
Liz Lapidus PR
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