Saturday, December 24, 2011

Marcus & Millichap Sells Four-Property Portfolio in Winter Haven, FL and Tampa, FL for $8.8 Million


WINTER HAVEN, FL and TAMPA, FL – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of a four property portfolio, located in Winter Haven, and Tampa, Florida, according to Bryn D. Merrey, vice president and regional manager of the firm’s Tampa office. The asset commanded a sales price of $8,820,000.

Michael P. Regan (top right photo), an associate vice president investments and Francesco P. Carriera (top left photo), a senior associate in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the Florida-based seller, a private investor.  The listing agents also secured the buyer of the property, a private investor from Tampa, Florida.  

“We are seeing a growing trend in “C” quality assets with a more ‘do-it-yourself’ investor profile to capitalize on the upside in management,” comments Regan.

“The sale of this portfolio is one of only a few private transactions that have sold this year in the Tampa Bay area. This portfolio transaction was also not a bank owned or a bank driven sale, which is an additional indication that most bank driven sales have been absorbed and the market for multifamily assets has begun to turn in a direction we’ve all been waiting for,” adds Carriera.

This is a portfolio sale which consists of four properties:  Brandywyne, The Landings, Country Place and Hickory Point.  The properties are located in the cities of Winter Haven and Tampa, Florida, in Polk and Hillsborough County.

Marcus & Millichap Facilitates Sale of Westbury House Assisted Living Facility in New Port Richey, FL

NEW PORT RICHEY, FL– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of Westbury House Assisted Living (middle right photo), a 5,713-square foot assisted living facility located in New Port Richey, Fla., according to Bryn D. Merrey, vice president and regional manager of the firm’s Tampa office. The asset commanded a sales price of $300,000.

Krone Weidler (middle left photo), senior associate and Matt Decker, senior housing specialist and members of the National Senior Housing Group in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the North Carolina-based seller. Ms. Weidler and Luis Baez, also of the firm’s Tampa office, secured the buyer of the property a private investor from Odessa, Florida.

 Westbury House Assisted Living was built in 1969 is located at 7114 North Congress Street.  The property consists of 14 resident rooms, three half-bathrooms and five full bathrooms, kitchen, laundry room, office, dining room and living room. 

 “The buyer plans an extensive renovation of this asset” says Ms. Weidler.  “Once complete, the asset will be licensed as an assisted living facility for 28 residents.  There is tremendous upside and opportunity to add value” adds Ms. Weidler.   

   Armenia Village Condominiums in Tampa, FL Sold for $2 Million

 TAMPA, FL – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of Armenia Village Condominiums (lower right  photo), a 70-unit apartment property located in Tampa, Fla., according to Bryn D. Merrey, vice president and regional manager of the firm’s Tampa office.

The sales price of $2,050,000 represents $34.02 per square foot.

Casey Babb, CCIM (lower leftt photo), a senior multifamily specialist and Luis Baez (bottom right photo), multifamily specialist in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the seller, a limited liability company based out of Florida. 

The buyer, a private investor, from Louisiana, was secured and represented by Still Hunter, III and Evan P. Kristol, senior vice presidents investments and senior directors of the National Multi Housing Group in Marcus & Millichap’s Ft. Lauderdale office. 

The property was built in 1985 and is located at 8801 Crestview Drive in the Carrollwood area of Tampa.  Armenia Village is a well-kept, fully-stabilized, “Class B” condominium rental community with a mix of one-bedroom/one-bath and two-bedroom/one-bath units averaging 851 square feet. 

“In the current marketplace, competition for certain multifamily assets is causing buyers to conduct their physical due diligence on the front end, which was the case for Armenia Village” says Babb. “The buyer submitted a non-contingent offer and closed in under 40 days, subject only to receiving clean title” adds Babb.

 Press Contact:  Bryn D. Merrey, Vice President/Regional Manager, Tampa, (813) 387-4700

Post Properties Announces Prepayment of Secured Notes

ATLANTA, GA--(BUSINESS WIRE)-- Post Properties, Inc. (NYSE: PPS) (the “Company”), an Atlanta-based real estate investment trust, announced that certain wholly-owned subsidiaries (the “Borrowers”) of its operating partnership, Post Apartment Homes, L.P., prepaid the aggregate outstanding principal amount of approximately $184.7 million on six multi-family fixed rate notes with the Federal Home Loan Mortgage Corporation.

 The notes were secured by mortgages on six properties located in Atlanta, GA, Charlotte, NC, and Dallas, TX. The notes required fixed interest-only payments at 6.09% and would have matured on November 1, 2014.

The Borrowers also paid an aggregate $6.2 million prepayment premium in connection with the prepayment of the notes.

The Operating Partnership used $135 million of borrowings under its existing $300 million unsecured revolving line of credit and available cash to finance the prepayment of the notes and the payment of the related prepayment premium.

Such line of credit borrowings will bear interest at a rate of LIBOR plus 2.30%. The Operating Partnership intends to refinance the amounts drawn under its revolving credit facility with an unsecured long-term bank financing during the first quarter of 2012.

The Company expects to record a loss on debt extinguishment of approximately $7.0 million, or approximately $0.13 per diluted share, in the fourth quarter of 2011 in connection with the prepayment premiums incurred and the write off of related unamortized deferred financing costs.

This charge was not included in the Company’s previously reported Funds from Operations earnings guidance.

Said Chris Papa, Executive Vice President and Chief Financial Officer of the Company, “The prepayment of these notes and our anticipated unsecured long-term bank financing in the first quarter of 2012 is consistent with our strategy of reducing secured debt levels and borrowing costs over time and refinancing our near term debt maturities.

 “ In that regard, we were pleased that Moody’s Investor Service last week affirmed the Company’s senior unsecured credit rating of Baa3, and revised the Company’s outlook to positive from stable, reflecting the improvements that the Company has made to its credit profile.”

Post Properties, Inc.
Chris Papa, 404-846-5000

Cousins Properties Announces Sale of Industrial Assets; Remaining Industrial Buildings and Texas Industrial Land Sold for $72.2 Million


ATLANTA, GA--Cousins Properties Incorporated (NYSE: CUZ) announced  the sale of its two remaining industrial buildings, along with the remainder of its Texas industrial land for total proceeds of $72.2 million. Cousins’ share of the proceeds totaled $65.2 million.

King Mill Building 3, a 796,450-square-foot building in Atlanta, Georgia, was sold to an affiliate of IDI.

Lakeside Ranch Building 20, a 748,831-square-foot building in Dallas, was sold to Duke Realty. Included in the sale were two land parcels within the Lakeside Ranch Business Park (top left photo) and an additional development site in Lancaster, Texas. Remaining Industrial Buildings And Texas Industrial Land Sold For $72.2 Million

Cousins Properties Incorporated
Cameron Golden, 404-407-1984
Director of Investor Relations and Corporate Communications

Faris Lee Investments Completes $9.6 Million Sale of Single-Tenant Retail Property Occupied by LA Fitness in Hemet, CA

IRVINE, CA – Faris Lee Investments, the nation’s largest retail-specialized investment advisory firm, has completed the $9.6 million sale of a 50,000 square foot retail property that is occupied by LA Fitness (top left photo). Situated on 5.61 acres, the property is located at 220 North Sanderson Ave. in Hemet, California.

Shaun Riley (middle right photo), director with Faris Lee Investments, represented the buyer in the transaction, a private trust from Beverly Hills who was in a 1033 exchange.

 The seller, Eden Group, LLC from Pleasanton, Calif., was represented by Marcus & Millichap. 

The property sold at a 7.6 percent cap rate which, according to Costar, is the lowest cap rate obtained for a single tenant health club-occupied property in the United States since July 2008.

The key to the transaction for Faris Lee was sourcing an asset for the buyer who was originally seeking a drug store property such as a CVS or Walgreens which offered long-term, passive returns.

Faris Lee advised that other assets, such as a health club property could be acquired at a much better yield. Additionally, the financing market has improved and financing terms would be similar to that of a drug store.

“The buyer was yield-driven and was looking for a strong credit, single-tenant investment in Southern California,” said Riley. “After conducting a thorough search of the marketplace, we advised our client on the possibility of acquiring the Hemet LA Fitness as a strong option since the tenant had the financial strength the buyer required and had more than 12 years remaining on the lease term.

“The pricing, cap rate, and the opportunity to finance the property with new debt that could be obtained at a historically low interest rate, also appealed to the buyer.”
Riley added that ultimately, the buyer placed long-term financing on the property at 240 basis points lower than the cap rate, which provided the buyer with a 10 percent cash return going in, not to mention future rent increases.
The property is located just off Hemet’s busiest commercial intersection at Florida Ave. and Sanderson Ave. with combined traffic counts of more than 70,000 vehicles per day. Nearby retailers include Home Depot, Target, Staples, Ross, Lowes and others.

Contact:  Darcie Giacchetto, 949.278.6224, Spaulding Thompson & Associates, For Faris Lee Investments

AC Self Storage Solutions, LLC Acquires Assured Self Storage in South Dallas, TX

 DALLAS, TX  --  AC Self Storage Solutions, LLC of Newport Beach, CA (AC Self Storage) has acquired Assured Self Storage, a 671- unit, stabilized, positive cash-flow storage facility in South Dallas.

  Assured Self Storage has approximately 71,671 net rentable square feet of storage space and is 82% occupied. Price was not disclosed.

 The seven- year-old facility is located at  8110 South Cockrell Hill Road. Assured will be rebranded AC Self Storage Dallas

 AC Self Storage closed the transaction in less than 60 days from receipt of due diligence materials and nearly two months ahead of the contract closing date. AC Self Storage also closed a new CMBS loan with Wells Fargo Bank N.A. that was funded 40 days after the loan application was submitted.

 “It has been a real pleasure to work with Wells Fargo on this transaction,” said  Troy Downing (top right photo), CEO of  AC Self Storage Solutions.  “Everyone on the lender’s team was professional, thorough, and responsive, allowing us to complete the purchase well ahead of schedule and well before our financing contingency period expired.”

 “We were pleased to help AC Self Storage Solutions succeed financially and we look forward to growing a long-standing relationship with them,” said Christina Langrall (middle left photo)  Assistant Vice President and Commercial Mortgage Underwriter, Wells Fargo Bank N.A.

According to Downing,  terms of the loan were as follows:

65% Loan to Value; 5.9% Interest Rate; 10 Year Term; 30 Year Amortization;
Saul Hoppenstein and James Elmore in the Boca Raton office of Berkadia brokered the loan with Wells Fargo Bank N.A. “I have worked with Saul and Jim for many years and they have always done an exemplary job,” said Downing.

 AC Self Storage has contracted with Westport Properties to manage the facility. Westport is the property manager for the entire AC Self Storage portfolio.

 “This has been a very smooth, expedited transaction because of the joint cooperation and diligence of  professionals  on the seller’s side, buyer’s side and the lender’s who were personally committed  to the success of this deal,” said Craig Morris, president, of AC Self Storage Solutions, LLC. (


Troy Downing, CEO

Chris Barnett