Thursday, August 23, 2012

Apartment Market Keeps the Good Times Going in Second Quarter


 ATLANTA, GA) – More than two years after its recovery began, the U.S. multifamily market continues to roll.

 That was the consensus of show host Michael Bull (top right photo) and his guests during the most recent episode of “America’s Commercial Real Estate Show,” which provided an enlightening look at the apartment sector’s performance during the second quarter and in-depth analysis of its future.

 On a national basis, the sector’s vacancy rate dropped to 4.8 percent during the second quarter, a dip of 30 basis points from first-quarter 2012 and 320 basis points from the market’s bottoming out in 2009, according to Greg Willett (middle left photo) vice president of research and analysis for MPF Research.

 Effective rental rates nationwide climbed 1.2 percent in the second quarter when compared to the first three months of the year and 4 percent from the same period in 2011, Willett added.

 While still strong, rental growth has abated somewhat recently, according to Willett. “Renter retention is still really high when you compare it to the long-term norm but you are getting more folks that are moving from one property to another,” he said.

 Still, “as we look over the next 18 months or so, we think the story is pretty much more of the same,” Willett said. “We don’t see that the vacancy rate is going to move too much.”

While the sector overall is thriving, property performance can vary quite a bit, noted Tom Walsh middle right photo), senior vice president at Grandbridge Real Estate Capital.

“The A/B market is fairly straightforward in most markets in the country. You have occupancy that’s at 90 percent or above,” he said. “The C market is the mysterious gray area: We will see C properties leased at 97 percent and having some rent growth, and we will see a C property that is 60 percent occupied and struggling.”

 “Management is critical,” echoed Ernie Eden (lower left photo), a senior vice president with Bull Realty’s Apartment Group. “We see some C properties at 99 percent and others down the street at 70 percent.”

 Also, with the housing market continuing to exhibit depressed purchase prices and record-low mortgage interest rates, more renters are likely to take the home-purchasing plunge,said Aaron Goldman (lower right photo), a principal at Perennial Properties.

“It’s going to be very, very hard for residents of apartments with good incomes and good jobs to ignore [the single-family market] when rents are increasing 8, 9, 10 percent year after year,” he said.


Stephen Ursery
Wilbert News Strategies

Holly Duran Real Estate Partners Negotiates Second Tampa, FL Lease for StreetLinks

CHICAGO, IL and TAMPA, FL /PRNewswire/ -- Holly Duran Real Estate Partners LLC (HDREP) announced the firm negotiated the lease enabling its client StreetLinks LLC, an Indianapolis-based appraisal management company, to celebrate the grand opening of the company's new 77,000 square-foot facility in Tampa, Fl.

The new facility at Netpark Tampa Bay (top left photo)in Hillsborough County more than doubles StreetLinks' presence in Florida.

Florida Gov. Rick Scott traveled to the new facility for the grand opening Aug. 17 to take a tour and support the company's job creation efforts.

 Now with 190 people in the Tampa Bay area, StreetLinks plans to add as many as 300 new real estate appraisal and data processing jobs during the next three years.

 The company opened its first Florida operation in July 2011 with a lease on a 36,000-square-foot facility negotiated by HDREP.  StreetLinks is retaining that facility for training purposes and will continue to utilize its 33,000 square-foot headquarters in Indianapolis from a lease negotiated by HDREP in 2009.

For a complete copy of the company’s news release, please contact:

Ellen G. Resnick,
Crystal Clear Communications,
+1-312-399-9295 (cell),

Voit Real Estate Services Directs Two Industrial Sales Encompassing 88,000 SF in North Orange County, CA

ORANGE COUNTY, CA (Aug. 23, 2012) – Mike Vernick (top right photo) and Mike Hefner (top left photo) of Voit Real Estate Services’ Anaheim office have completed two industrial transactions encompassing  87,788 square feet in North Orange County.

“Industrial sales activity continues robustly in North Orange County as demand for industrial product remains strong,” said Mike Vernick, a Vice President in Voit’s Anaheim office.

“We are seeing an increasing number of companies implementing expansion plans as they garner market share from struggling competitors or vertically integrate supply chains. 

“As the supply of mid and larger-sized properties continues to decline we expect the already improving industrial property values to continue appreciating throughout Orange County.”

Transaction #1

Voit’s Anaheim team completed the $5.9 million acquisition of a 77,788 square-foot industrial property in Placentia, Calif.  Mike Vernick and Mike Hefner of Voit represented the buyer,

Classic Performance Products, a producer of high performance aftermarket suspension and braking chassis parts for classic automobiles.  The company plans to use the property for its manufacturing, sales, and R&D operations.

          “Our client had very specific operational needs that are not easily met by the current market’s inventory,” said Vernick. “Our team was able to identify an ideal property that could accommodate our client’s expanding showroom and manufacturing needs all within a tight geographic radius.

          The seller, Lincoln Imports, was represented by Erik Wanland and Sean Ward of CBRE.  The property is located at 378 E. Orangethorpe Avenue in Placentia, Calif.

Transaction #2

Mike Vernick and Mike Hefner of Voit’s Anaheim office also directed the $1.1 million sale of a 10,000 square-foot property located at 1721 N. Lime Street in Orange, Calif., on behalf of the seller, The Berg Family Trust.

          “We leveraged the high demand amongst buyers and the lack of functional properties for sale in the Orange County market, and we were successful in generating a number of competitive offers on this property,” explained Vernick.  “As a result, the property went into escrow within one week of being exposed to the market.”

          The buyer, Mark Templeton, who plans to use the property for his excavating company, was represented by Chuck Wilson and Blake Garrett of Colliers International


  Jenn Quader/ Judith Brower
  Brower, Miller & Cole
  (949) 955-7940

Robert A. Peck Joins Gensler as Director of Workplace Consulting for Southeast

 WASHINGTON, DC, Aug. 23, 2012 -- Gensler is pleased to welcome Robert A. Peck (top right photo)  as our new Director of Workplace Consulting for the Southeast Region.

A recognized leader in real estate portfolio strategy and management, Bob will be an excellent resource to our clients as they seek greater real estate efficiency and incorporate new workplace strategies that foster employee productivity and engagement.

He will lead a regional team of consultants as part of Gensler's global workplace strategy practice. His expertise spans corporations, not-for-profit institutions, and government.

Bob previously served as a managing director of Jones Lang LaSalle and as president of the Greater Washington Board of Trade.

He earned his bachelor's degree in economics from the University of Pennsylvania and a Juris Doctor from Yale Law School. Bob is an honorary member of the AIA.

 Earlier this year, the AIA presented him with the Thomas Jefferson Award for his longstanding commitment to high-quality architecture in public buildings.


Robert A. Peck

Diane Hoskins
Executive Director/Managing Principal,
Southeast Region

Kenneth Baker
Co-Managing Principal,
Southeast Region

2020 K Street NW
Suite 200
Washington DC 20006
+1 (202) 721.5200


HFF arranges $6.3 million financing for Florida retail portfolio

IRVINE, CA – HFF announced today that it has arranged a $6.3 million financing for a retail portfolio totaling 60,283 square feet in Pensacola and Orlando, Florida.

HFF worked exclusively on behalf of IRA Realty Capital to secure the 10-year, 4.87 percent fixed-rate loan through Citigroup Global Markets – CMBS. Proceeds from the loan were used to acquire the retail centers.

The portfolio includes Pensacola Marketplace (top left photo), a 49,768-square-foot, fully-leased retail power center in Pensacola, that was built in 2008. Tenants include Ross, Office Depot and Chili’s. The portfolio also includes a 10,515-square-foot freestanding strip center in Orlando, which is 100 percent leased to Verizon Wireless and Mattress Firm.

The HFF team representing the borrower was led by director John Chun (lower right photo),


HFF Director
(949) 253-8800

HFF Associate Director, Marketing
(713) 852-3500

Sale of one million-square-foot Houston industrial portfolio closed by HFF


 HOUSTON, TX – HFF announced today that it has closed the sale of a 13-property, one million-square-foot industrial portfolio in Houston, Texas.

HFF marketed the properties on behalf of the seller, DCT Industrial Trust, Inc.  Mayfield Properties, LLC purchased the portfolio for an undisclosed amount free and clear of debt.

The 13 properties are located in six different industrial projects throughout the Greater Houston area.  Overall, the portfolio is 98 percent occupied by 46 tenants.

The HFF investment sales team representing the seller was led by senior managing director Rusty Tamlyn (top right photo) and associate director Trent Agnew (lower left photo).

For a complete copy of the company’s news release, please contact:                  

 RUSTY TAMLYN, CCIM, SIOR                   
HFF Senior Managing Director                        
(713) 852-3500                                                                                         

HFF Associate Director, Marketing
(713) 852-3500

HFF arranges $17.7 million first-lien financing for single-tenant distribution center in Costa Mesa, CA

IRVINE, CA – HFF announced today that it has arranged a $17.1 million first-lien financing for a 112,296-square-foot single-tenant distribution center (top left photo) in Costa Mesa, California.

HFF worked on behalf of Daymark Realty Advisors to secure the 10-year, 4.65 percent fixed-rate loan through Allstate Investments, LLC, which HFF will also service.

The property is located at 1650 Sunflower Avenue near the intersection of Hyland Avenue and Interstate 405 in Costa Mesa. Renovated in 2008, the property is 100 percent leased to the Federal Express Corporation, a global provider of transportation, e-commerce and business services.

The HFF team representing the borrower was led by director John Chun (lower right photo),

For a complete copy of the company’s news release, please contact:

HFF Director
(949) 253-8800

HFF Associate Director, Marketing
(713) 852-3500

HFF completes $560 million sale of New York, Pennsylvania and Connecticut self storage portfolio


  HOUSTON, TX – HFF announced today that it has closed the sale of the final property in a 22-property Storage Deluxe self storage portfolio. 

The portfolio transaction totaled $560 million and was comprised of approximately 1.6 million square feet with assets located in New York, Pennsylvania and Connecticut.

HFF acted as the exclusive advisor to the seller, Storage Deluxe.  CubeSmart was the purchaser. 

The conclusion of this transaction leaves Storage Deluxe, one of New York’s most recognized self storage brands, with seven operating self storage facilities in the boroughs of New York City and six additional facilities currently under construction.

The HFF investment sales team representing Storage Deluxe was led by senior managing director Aaron Swerdlin (lower right photo). 

The legal team representing Storage Deluxe was led by Louis Perfetto of the law firm Cohen & Perfetto.

For a complete copy of the company’s news release, please contact:

AARON A. SWERDLIN                                                          
HFF Senior Managing Director                     
(713) 852-3500                                             

HFF Associate Director, Marketing
(713) 852-3500

NAI Realvest Negotiates Sale of Volusia Building Industry Association Headquarters Building for Port Orange, FL Church Relocation

 Daytona Beach, FL. --- NAI Realvest recently negotiated the sale of the 4,108 square foot office building and its 1.83-acre site previously occupied by Volusia Building Industry Assn. at 3520 W. International Speedway Blvd.  (top left photo). in Daytona Beach.

Chris Butera, investment associate at NAI Realvest in Maitland, brokered the transaction representing the seller Volusia Building Industry Assn.      

 The buyer, New Church Family from Port Orange paid $287,500 for the property that will serve as the church’s new sanctuary. Sue Turnbull of Swann and Associates represented the buyer.

For more information, contact

Chris Butera, Associate NAI Realvest 386-453-4789;
Patrick Mahoney, President, NAI Realvest 407-875-9989;;
Beth Payan or Larry Vershel, Larry Vershel Communications 407-644-4142

MBA Releases 2012 Mid-year Commercial/Multifamily Servicer Rankings

 WASHINGTON, DC – The Mortgage Bankers Association (MBA) released its mid-year ranking of commercial and multifamily mortgage servicers as of June 30, 2012.

At the top of the list of firms is Wells Fargo with $430.5 billion in U.S. master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $357.0 billion, Berkadia Commercial Mortgage LLC with $206.6 billion, Bank of America Merrill Lynch with $110.1 billion, and KeyBank Real Estate Capital with $100.1 billion.

For a complete copy of the company’s news release, please contact:
Matt Robinson
(202) 557-2727

MAA Announces Acquisition in Orlando, FL

 MEMPHIS, TN /PRNewswire/ -- MAA (NYSE: MAA) announced it has completed the acquisition of Retreat at Lake Nona (top left photo), an upscale 394-unit multi-family apartment community in Orlando, Florida.

Retreat at Lake Nona is located only two miles from the emerging Medical City development, a new 600-acre science and technology park that is currently home to Sanford-Burnham Medical Research Institute, the University of Central Florida College of Medicine, and the MD Anderson Cancer Research Institute.

 Medical City will also soon see the opening of The University of Florida Academic & Research Center, Nemours Children's Hospital and the Orlando Veterans Affairs Medical Center.

For a complete copy of the company’s news release, please contact:

Investor Relations of MAA,

Essex Realty Group Brokers Sale Of 2 Mixed-Use Buildings in Chicago, IL

 CHICAGO, IL – Essex Realty Group, Inc. is pleased to announce the sale of 4501 & 4503 N. Milwaukee avenue, an 18-unit mixed-use, two building portfolio located in Chicago’s Jefferson Park neighborhood.

 The Subject Portfolio consists of three 1 bedroom/1bath, ten 2 bedroom/1 bath, one 3 bedroom/2 bath, two 800 SF Commercial units, two 1,100 SF Commercial Units and nine parking spaces.

Doug Fisher and Matt Welke of Essex represented the seller and Doug Imber and Kate Varde represented the buyers in the transaction. The price was approximately $750,000.00

Essex Realty Group, Inc. specializes in the sale of investment real estate throughout the Chicago metropolitan area.


Douglas S. Imber
Essex Realty Group, Inc.