Monday, October 29, 2012

PwC and ULI Report Say Commercial Real Estate’s Road to Recovery Will Continue in 2013

Mitch Roschelle
ATLANTA, GA (Oct. 29, 2012) – Members of the commercial real estate community are optimistic about the industry’s prospects in 2013, forecasting increased profitability as well as more absorption and decreased vacancy rates across all property types.

That’s the overall theme of the recently released “Emerging Trends in Real Estate 2013.” The latest episode of Michael Bull’s “America’s Commercial Real Estate Show” provided an enlightening look at the highly anticipated annual report, which is produced by PricewaterhouseCoopers (PwC) and the Urban Land Institute. The report is based on surveys and interviews of 900 real estate executives, investors, developers and market experts.

“We’ve really taken a turn, and those who play in the commercial real estate space feel very good about 2013,” said Mitch Roschelle, a partner at PwC and the leader of the firm’s U.S. Real Estate Advisory Group.

Chuck DiRocco
For instance, 74 percent of those surveyed this year said profitability “would be good to excellent” in 2013, according to Roschelle. Last year, 63 percent said the same about 2012.

Nevertheless, 2013’s recovery will largely be a modest one, as the industry and the United States as a whole face several macro-level challenges. Noting that the report’s subtitle is “Recovery Rooted in Uncertainty,” Chuck DiRocco, a real estate researcher for PwC, said the challenges include the ongoing Euro crisis, the upcoming “fiscal cliff” facing the federal government and relatively small GDP growth.

Roschelle said a “chase for yield” is bringing more investors into the commercial real estate space, as those frustrated by theperformances of stocks and bonds seek the higher and more stable rates of return produced in the sector.

Office Property
As for specific property types, industrial “was without a doubt the breakout asset class projected for 2013,” Roschelle said. “Two-thirds of our survey participants felt that the asset class was a buy. Only 8.5 [percent] suggested it was a sell.”

Investor interest in the office market also is beginning to climb. “The office sector is really becoming top of mind, and the reason there is we haven’t overbuilt office,” Roschelle said.

However, while it should experience modest improvements, the retail market “is still going to struggle a bit in 2013,” DiRocco said. “We know retail spending has increased a bit, but we still think there’s just a little bit too much space out there.”

Industrial Property
The report also forecasts increased availability of both debt and equity financing and increased investor interest in larger secondary cities.

Among the “best bets” for 2013 listed by the report: investors will concentrate acquisitions in budding infill locations; developers will scale back construction of apartment properties in low-barrier-to-entry markets; and property owners will look to repurpose obsolete facilities.

The entire “Emerging Trends in Real Estate 2013” episode is available for download at

The next “America’s Commercial Real Estate Show” will be available on Nov. 1 and will examine the issues facing the commercial real estate industry in 2013.


Stephen Ursery
Wilbert News Strategies

$23.2 Million Suburban Houston Shopping Center Comes to Market

Fairmont Parkway Shopping Center, Houston, TX
PASADENA, TX, Oct. 29, 2012 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has the exclusive listing to market Fairmont Parkway, a regional shopping center located 20 miles from downtown Houston. The listing price of $23,257,000 equates to $139 per square foot.

Alvin Mansour, a senior vice president investments, and Phil Sambazis, a vice president investments based in Marcus & Millichap’s San Diego office, are representing the seller. Mansour and Sambazis are also senior directors of the firm’s National Retail Group (NRG).

Alvin Mansour
“Fairmont Parkway represents an excellent opportunity to invest in a highly visible, heavily trafficked retail asset,” says Mansour.

 “With over 80,000 residents within a three-mile radius, and neighboring big box stores like Super Target, Toys R Us and Kohl’s drawing shoppers to the area, not only is this 95 percent leased community center a strong addition to any portfolio, its square footage is currently priced below replacement cost.”

The 167,725-square foot property is situated on 23.27 acres in Pasadena, close to San Jacinto College. It comprises 13 tenants, including 24-Hour Fitness, iT’Z Family Fun Center, Goodwill and 3K Sports.

Phil Sambazis
The asset is positioned at the intersection of Sam Houston and Fairmont parkways, crossed by more than 50,000 cars per day. It is easily accessible from Beltway 8, an 88-mile beltway around the city of Houston that benefits from more than 84,000 cars per day.

 The property is across from two power centers: Fairway Centre, anchored by Super Target, Toys R Us and Kohl’s, and Fairway Plaza, anchored by Ross, Bed Bath & Beyond, Barnes & Noble, Marshall’s, Best Buy, PetSmart, Office Max, Michaels and Party City.

Stacey Corso
Public Relations Manager
(925) 953-1716

Voit Real Estate Services Completes $10.4 Million Office Acquisition in San Diego, CA

Scripps Ranch Area office building, San Diego
San Diego, CA  (Oct.  29 ,2012) – Brandon Keith of Voit Real Estate Services’ San Diego office has successfully directed the $10.4 million acquisition of a 60,870 square-foot office building in the Scripps Ranch area of San Diego on behalf of the buyer. 

Keith, a Senior Vice President in Voit’s San Diego office, represented Double Black Diamond Properties, LLC, as the buyer in the transaction.

“Our client was seeking a high quality property for long term investment,” explained Keith.  “We were able to meet these needs by identifying this Class A facility with existing income from 50 percent of the building, and then securing a new, long-term lease with a financial services company for the balance of the building.”

Brandon Keith
The office property’s second floor is currently leased to Paychex, Inc., a publicly traded company specializing in payroll, human resources, and benefits outsourcing.  Paychex occupies approximately 30,435 square feet of space in the building on a seven year lease, according to Keith.

“Competition for quality product in the San Diego office market continues to increase, and this is especially true in desirable areas such as Scripps Ranch,” noted Keith.  “As competition increases, real estate values will begin to climb. With that in mind, buyers should seek real estate partners who know the local market well, and can help them to select the best deals in the area.”

The seller, PV Meanley Drive, LLC, a real estate investment company, was represented by Jed Stirnkorb and Matt Pourcho of CB Richard Ellis.

The property is located at 10150 Meanley Drive in San Diego, Calif.

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

Judith Brower/ Jenn Quader
(949) 955-7940

Carl Domino Inc.'s HQ Relocates from Island To Downtown for Northbridge Centre Views in West Palm Beach, FL

Northbridge Centre, West Palm Beach, FL
WEST PALM BEACH, FL– After more than two decades at the same address on Palm Beach Island, investment adviser Carl Domino Inc. has been swayed by Northbridge Centre's commanding water views to relocate to downtown West Palm Beach.

"They initially wanted to stay on the island for the image and prestige, but the quality of the property, its views and affordability made Northbridge Centre attractive enough to move off the island of Palm Beach," explains Neil Merin, chairman of NAI/Merin Hunter Codman Inc., who represented the tenant. 

Neil Merin
 "They have floor-to-ceiling windows with views extending to the Atlantic Ocean and Intracoastal Waterway."

Kirk Fetter, vice president of leasing for the Dallas-based landlord, Gaedeke Group LLC, has secured a long-term lease for 2,858 sf on the eighth floor of the 21-story class A office building at 515 N. Flagler Dr. Build-out currently is under way on the new office, with Northbridge Centre's new tenant now occupying temporary space. The work is slated to be done by Jan. 1.

Kirk Fetter

Merin says an extensive search was launched in May, focusing on island options until his client toured the 288,233-sf Northbridge Centre. Carl Domino has increased the size of its office by 15 percent with its relocation from 251 Royal Palm Way.

Gaedeke Group, founded in 1995, is a full-service real estate firm that provides investment, acquisition, management, leasing construction management and portfolio management services. Headquartered in Dallas, Gaedeke's current portfolio encompasses three million square feet of class A office properties in Arizona, Florida, Tennessee, Texas, Washington, D.C. and Germany.


Kirk Fetter, 561-515-7407

Post Properties Announces Third Quarter 2012 Earnings and Development of Post Soho Square™ in Tampa, FL

Dave Stockert
 ATLANTA, GA--(BUSINESS WIRE)-- Post Properties, Inc. (NYSE: PPS) announced today net income available to common shareholders of $21.3 million, or $0.39 per diluted share, for the third quarter of 2012, compared to net income of $7.9 million, or $0.15 per diluted share, for the third quarter of 2011.

Net income available to common shareholders for the nine months ended September 30, 2012, was $62.3 million, or $1.15 per diluted share, compared to net income of $16.3 million, or $0.32 per diluted share, for the nine months ended September 30, 2011.

Dave Stockert, the Post’s CEO, said,“Our business continues to be robust, across-the-board. Core funds from operations grew on a per-share basis in the third quarter by more than 20%.

“ We put up another strong quarter of same-store operating results, closed a significant number of condominium sales, and commenced another apartment development that should create value, while complementing our high-quality portfolio.

“Finally, we were delighted that both of the major ratings agencies have now upgraded our corporate credit ratings to reflect the work we’ve done to strengthen the balance sheet.”

The Company also announced the development of its Post Soho Square™ apartment community located in the Hyde Park submarket of Tampa, Florida.

Hyde Park neighborhood, Tampa, FL
Post Soho Square™ is planned to consist of 231 apartment units with an average unit size of approximately 880 square feet and approximately 10,556 square feet of retail space. The community is expected to have a total estimated development cost of approximately $39.8 million.

The Company currently expects the stabilized yield on the project will be approximately 6.25%, after a 3% management fee and $300 per unit reserve, and based on current market rents, without trending. The Company anticipates that first apartment unit deliveries will occur in the first quarter of 2014.

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

Post Properties, Inc.
Chris Papa,

HFF arranges $96 million financing for Greenwich, CT multi-housing communities

Greenwich Place Apartments
 FLORHAM PARK, NJ – HFF announced today that it has arranged $96 million in financing for Greenwich Place and Greenwich Oaks, Class A multi-housing communities totaling 396 units in Greenwich, Connecticut.

                Working on behalf of LCOR, HFF placed two fixed-rate loans with Allianz Real Estate of America.  A $55 million loan was arranged for Greenwich Place and a $41 million loan was secured for Greenwich Oaks.  The properties were previously unencumbered with debt.

Greenwich Oaks Apartments
Greenwich Place and Greenwich Oaks are located two miles apart close to Interstate 95 about 35 miles north of New York City.  Greenwich Place is situated on 30 acres at 311 Putman Green. 

The property consists of 266 one-, two- and three-bedroom units that average 1,312 square feet each.  Greenwich Oaks is located on 29 acres at 219 Weaver Street and has 130 two- and three-bedroom units that average 1,850 square feet each.

Jon Mikula

Community amenities at each property include a clubhouse, heated pool and fitness center.  Both properties were renovated in 2010 and 2011.

                The HFF team representing LCOR was led by senior managing director Jon Mikula and managing director Jim Cadranell.

  LCOR is a fully-integrated real estate company specializing in property investment, management and development with a diverse portfolio of residential, commercial, and public/private projects.   

Jim Cadranell
LCOR’s real estate operating and development business manages more than 8,300 multifamily units, 7.7 million square feet of commercial space and a substantial development pipeline of mixed use real estate in core markets.  Nationally, LCOR has developed more than 21,000 residential units and 18+ million square feet of commercial space.  LCOR is principally focused in the eastern United States, with offices in New York City, the Washington D.C. and the Philadelphia metro areas.

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

Kristen M. Murphy
Associate Director
HFF | 9 Greenway Plaza, Suite 700 | Houston, TX 77046
tel 713.852.3500 | cel 617.543.4873 | fax 713.527.8725 |

Hunter Completes Sale of Comfort Suites in Suburban D.C.

Comfort Suites, Manassas, VA
 ATLANTA, GA and WASHINGTON, DC, Oct.29, 2012—Hunter Hotels announced today that it advised the owner on the sale of the Comfort Suites in Manassas, Va., in suburban Washington, D.C.  Hunter represented a national special servicer as the seller of the 138-guest suite hotel to a regional multi-property owner.

Lee Hunter, chief operating officer of Hunter Hotels, led the Hunter team, which included Kyle Stevenson from Hunter’s D.C. office, on the $7.3 million sale.  Hunter generated nearly 20 offers for the five-story hotel which is located at 7350 Williamson Boulevard just off heavily traveled Interstate 66. 

Lee Hunter
“Washington remains a strong hotel market as does the Eastern corridor from New England to Miami,” Hunter said.  “We also are seeing an uptick in hotel real estate activity at our offices in the Midwest, Southwest and West Coast.  California and Texas are particularly active now.”

“As the hotel economy strengthens, we see more and better properties coming to market in all of our seven offices nationwide.  We are currently seeing a flurry of activity from hotel owners who want to complete sales before any potential changes take place in tax rates,” said Hunter.

“We are also working with a substantial number of owners who plan to sell in the first and second quarter.  We anticipate another record year for Hunter Hotels this year and next.”

Additional information, including current listings, is available at the company’s website,, or by contacting the Atlanta headquarters at 770-916-0300.


Jerry Daly media
703) 435-6293

 Patrick Daly
Account Supervisor
Daly Gray, Inc.
Office:  (703) 435-6293
Cell:  (703) 300-8289

Sales at The Residences at W Atlanta – Downtown are on Track with Projections

The Residences at W Atlanta-Downtown
 ATLANTA (October 29, 2012) – Since re-launching its sales program at amazing new prices, The Residences at W Atlanta – Downtown has sold 15 of its 74 homes to savvy buyers.

Downtown Atlanta continues to enjoy vibrant growth and both new homeowners and developers recognize the opportunity to capture the value in the resurgence. 

Recently, Regent Partners and Post Properties have secured additional parcels in Allen Plaza for future development, and projects including the National Center for Civil & Human Rights, the College Football Hall of Fame and the Atlanta Streetcar are moving forward.

David Tufts
Homebuyers who act now will gain access to the luxurious W lifestyle at an incredible value.

 “The hotel’s occupancy and demand makes the W lifestyle a strong seller Downtown,” says David Tufts, president of The Marketing Directors. “We’re selling five-star features and amenities at highly attainable prices unmatched by any new construction in the market.”

For more information, explore or call 404-524-4092.

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

Liz Lapidus /Kate Thacker
Liz Lapidus Public Relations