Sunday, January 20, 2013

$57 Million, Two-Property Multifamily Sale Arranged by Marcus & Millichap

Plantation Key Apartments, Brandon, FL
 BRANDON, FL – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of two Tampa Bay Area multifamily communities totaling 982 units.

 The assets, Plantation Key and Providence Park, are located directly across the street from one another in Brandon. Their combined selling price is $57 million.

Jeffrey Meyer, a vice president investments, and Michael Donaldson, a senior associate, both in Marcus & Millichap’s Tampa office, represented the sellers, two private partnerships, and the buyer, a private Tampa-based real estate investment group.

Providence Park Apartments
Brandon, FL
 “These 1990-built properties required an investor with both a strong vision of the Brandon market and a proven ability to reposition a property within it,” says Meyer. “Our buyer has a history of successfully leveraging Tampa’s job growth and other favorable market conditions to achieve significant rent increases through common area and in-unit amenity upgrades.”

“Plantation Key and Providence Park’s superior location, in close proximity to a number of major employment centers and northeast Tampa’s desirable university area, supported the investor’s view that it was an excellent value-add candidate,” Meyer adds.

Jeffrey Meyer
“Typical buyers might have shied away from this property because of its large size and heavy unit concentration, which typically would have resulted in a management-intensive situation,” Donaldson concludes, “but thanks to his intimate market knowledge, this investor saw the upside potential in the location and the area’s job growth, and is even now planning a major entryway upgrade.”

The two Brandon properties are located at 1918 Plantation Key Circle and 401 Providence Road. They were built on 60.8 acres and total 871,380 square feet. The properties’ 15 distinct floor plans include 534 one-bedroom/one-bath units, 376 two-bedroom/two-bath units, and 72 three-bedroom/two-bath units.

Westfield Brandon Mall, Brandon, FL
Plantation Key and Providence Park are conveniently located less than half a mile from the intersections of State Road 60, the Crosstown Expressway and Interstate 75. Interstate 75’s office employment centers and the Tampa downtown business district’s own employment opportunities are both close by. 

Retail opportunities are highlighted by the Westfield Brandon shopping mall, a 1.2 million-square foot regional indoor shopping destination situated walking distance from the property.

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

Public Relations
(925) 953-1716

$6.8 Million Refinancing Arranged by Marcus & Millichap Capital Corp.

Glenn Gioseffi
KENMORE, WA – Marcus & Millichap Capital Corporation (MMCC) has arranged $6.8 million in new debt for a multifamily community in Kenmore, WA.

            Glenn Gioseffi, a director in MMCC’s Seattle office, arranged the loan.

            “The challenge in this transaction was to find comparables that supported the level of debt needed,” says Gioseffi. “As a result of paying off the existing loan early, the borrower needed higher leverage to offset a 2 percent prepayment penalty in addition to costs associated with the new loan. Comparables supporting our loan request were hard to come by,” adds Gioseffi.

Larry Corkins
            “Larry Corkins, a senior associate in the Seattle office of Marcus & Millichap Real Estate Investment Services, introduced us to the borrower, whom he had represented during the purchase of the property,” continues Gioseffi. “We turned to Mr. Corkins for comparables research, and he successfully located a number of sales that supported our appraisal.”

            “By providing appropriate comparables with Mr. Corkins’ help, we were able to raise the appraisal value by $400,000, which in turn added $300,000 to our loan amount for a more significant cash-out sum,” Gioseffi concludes.

            The 30-year loan amortizes over 30 years at 4.13 percent. The loan-to-value is 75 percent.

Press Contact:

Marcus & Millichap Capital Corporation
(925) 953-1716

CBRE Orlando Closes 558-Unit Lakeside Community in Orlando, FL

Carlton Arms South Apartments, Orlando, FL
ORLANDO, FL -- CBRE is pleased to announce that it has completed the sale of Carlton Arms South apartments for $15,300,000.

Shelton Granade, Luke Wickham, and Justin Basquill of CBRE’s Orlando office exclusively represented the seller in the transaction.

Built in 1972, Carlton Arms South offers studio, 1, 2, and 3 bedroom floor plans averaging 721 SF. The community features two pools, a large clubhouse, and a fitness center, and was 90% occupied at closing.The closing was a market leading 33rd multi-housing transaction locally in 2012 for CBRE.


Shelton D. Granade, Jr., Executive Vice President
CBRE | Investment Properties - Multihousing
189 S. Orange Avenue, Suite 1900 | Orlando, FL 32801
T 407 839 3103 F 407 404 5001

Beech Street Capital Once Again Doubles Volume, Reaching $4 Billion in 2012

Grace Huebscher
BETHESDA, MD – Beech Street Capital, LLC, announced it has maintained its remarkable growth trajectory through its third year.  

It provided $4.0 billion in multifamily financing in 2012, achieving a 100 percent annual growth rate for the last two years. 

“We were determined this year to demonstrate that we could maintain our momentum,” says Grace Huebscher, Beech Street’s president and CEO.  “Thanks to our growing relationships with Fannie Mae, Freddie Mac and FHA, the support of our customers, and the determination of our team to deliver on every single transaction, we succeeded.” 

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

 Courtney Lewis at 240-507-1948 or
Jenifer Bernardi at 240-507-1946.

Final Push: 850 New Condos Unsold In Greater Downtown Miami As Of 2012

Peter Zalewski
Some six years after the South Florida condo crash first began in 2007, about 850 new units created in Greater Downtown Miami during the last real estate boom remain under the control of the original developers as of the fourth quarter of 2012, according to a new report from

New condo sales in Greater Downtown Miami transacted at a pace of about 67 units per month between January and December of 2012 compared to about 145 units per month in the same period in 2011, according to the report based on the Condo Vultures® Official Condo Buyers Guide To Miami™. 

Even with the slower pace, buyers purchased more than 800 new units in Greater Downtown Miami for nearly $345 million - an average price of about $375 per square foot - between January and December of 2012, according to an analysis based on Miami-Dade County Clerk of the Court records.

A contributing factor in the reduced new condo sales pace is the weakening foreign currencies of some key countries from which international buyers are active in South Florida, including Argentina (-12%) and Brazil (-9%) on a year-over-year basis as of Dec. 31, 2012, according to the currency exchange website 

"Greater Downtown Miami's new condo oversupply is on pace to sell out by the first quarter of 2014," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC.

"Credit for the turnaround in Greater Downtown Miami's condo market should be given primarily to foreign buyers who have flooded into South Florida to purchase condo units at discounted prices.

“Several additional factors have also contributed to foreign investment in Greater Downtown Miami condos including the desire for wealth preservation, strong exchange rates, and strengthening rental rates."

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

Condo Vultures® LLC  at 800-750-0517.

HFF arranges $18.5 million financing for mixed-use property in Manhattan’s Chelsea neighborhood

Chelsea Muse Apartments
West Chelsea, New York City
NEW YORK, NY HFF announced today that it has arranged $18.5 million in acquisition financing for the Chelsea Muse, a 28-unit, Class A multi-housing rental building with substantial retail in Manhattan’s West  Chelsea submarket.
                HFF worked on behalf of the borrower, Tavros Capital Partners USA, LP, to secure the five-year, fixed-rate loan.  The loan proceeds were used to acquire the property.
                The Chelsea Muse is located at 537 West 27th Street adjacent to the High Line Elevated Park in West Chelsea.  

Steven Klein
Tavros plans to re-brand the building through a focused marketing campaign.  Built in 2011, the residences were fully leased within five weeks of completion.  

The 18,000-square-foot retail component of the property is 100 percent occupied and consists of Pinch Food Design and a large below-grade event space leased upon closing to Skylight Group.
                The HFF team representing Tavros Capital Partners was led by managing director Steven Klein.
“Tavros Capital Partners had the vision and the foresight to purchase the property with the retail component vacant and was immediately able to add value to the property by signing a lease with the property’s largest retail tenant.  Through this acquisition, Tavros increases their footprint in Manhattan and in the West Chelsea submarket,” said Klein.
                Tavros Capital Partners is a privately-owned real estate investment management firm with offices in the U.S. and Europe.  Tavros owns or is developing five assets in New York City, totaling approximately 340,000 square feet, including: 560 West 24th Street, 180 Avenue of the Americas, and 448-452 Broome Street.


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 |