Tuesday, July 2, 2013

NAI Realvest named exclusive leasing agent for 625,000 square foot Eagle Ridge Mall in Lake Wales, FL

Eagle Ridge Mall, U.S. 27,  Lake Wales, FL

MAITLAND, FL--- NAI Realvest, which ranks as one of Central Florida’s most active commercial property brokers, was recently named exclusive leasing agent for the Eagle Ridge Mall in Lake Wales.

Paul Partyka
The team of Paul P. Partyka, managing partner at NAI Realvest, and Sales Associate Juan Jimenez, will be handling the leasing of the mall for the new Dallas-based owner, the Tabani Group, Inc., who appointed NAI Realvest as listing agent for the Mall.

Juan Jiminez
The 625,000 square foot mall, located on U.S. 27 in Lake Wales, will offer aggressive lease rates for new tenants. 

“A key priority is to attract restaurant operations along with making Eagle Ridge the center for community activities,” Partyka said.

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

Larry Vershel or Beth Payan, Larry Vershel Communications 407-644-4142 lvershelco@aol.com

Hendricks-Berkadia Negotiates Portfolio Sale of Five Apartment Communities in Mobile, AL for $98 million

Cabana Apartments, Michael Boulevard,  Mobile, AL

BIRMINGHAM, AL --- Hendricks-Berkadia Apartment Real Estate Advisors, one of the nation’s largest and most active multifamily investment banking and research companies, recently participated in negotiating of the sale of five apartment communities in Mobile, Ala. for $98 million.

David Oakley
 David Oakley, senior vice president of Hendricks-Berkadia in Birmingham, said the buyer, Colony Hills Capital, an investment group based in Wilbraham, Mass. paid $98 million to acquire the portfolio of properties that includes 2,000 rental apartment units.

 The rental apartment properties sold include Cabana Apartments, located on Michael Blvd., Pathways Place on Pathway Place, Sandpiper on Government Blvd., Windsor Place on Airport Blvd. and Yester Oaks Townhouse Apartments on Yester Oaks Drive.

Richard Weavil
Oakley negotiated the transaction along with Tom Hinton of Hinton Properties and Richard Weavil of The Weavil Company.

 “In recent months, several large corporations including France’s Airbus and Austal USA have announced plans for the investment of over $600 million into manufacturing facilities in Mobile,” Oakley said.

 “These announcements in connection with the already burgeoning Mobile economy point to strong demand fundamentals related to the multi-family sector,” he said.

Pathways Place apartments, Mobile, AL
According to Hendricks-Berkadia research, positive apartment absorption trends continue in the Mobile Bay area. In 2012, the average vacancy rate for the metro area was 6.2 percent, compared to 8.6 percent a year prior.

 Vacancy rates are expected to hold steady well into 2013, with a 6.1 percent average for the metro area. Occupancy rates have increased 2.5 percent over the past 12 months, which should lead to significant rent growth going forward.

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

Larry Vershel or Beth Payan, Larry Vershel Communications 407-644-4142 lvershelco@aol.com

Faris Lee Investments Completes $5.4 Million Sale of Freestanding Property Leased to DaVita Dialysis in Newport Beach, CA


New home of DaVita Dialysis at 4300 Von Karman Avenue, 
Koll Center Newport, Newport Beach, FL

IRVINE, CA, July 2, 2013 – Faris Lee Investments, the nation’s largest retail-specialized investment advisory firm, has completed a record-breaking, $5.4 million sale of a single-story, absolute NNN leased medical office building soon to be occupied by DaVita Dialysis, a Fortune 500 company and one of the country’s largest providers of dialysis.

Nicholas Coo
The 6,652-square-foot property is situated on .75 acres of land and is located within Koll Center Newport at 4300 Von Karman Avenue, Newport Beach, Calif.

Built in 1991 and owned by PRES since 2004, the freestanding property is a rare, self-parked freestanding property in Koll Center Newport.

The asset has excellent street frontage and visibility along Von Karman Ave. and is just two blocks from John Wayne Airport and near the 405, 73 and 55 freeways. There are more than 437,000 people living within a five-mile radius of the property with an average household annual income of $111,000.

Matthew Mousavi
Nicholas Coo, Matthew Mousavi, and Patrick Luther with Faris Lee Investments represented the seller, Irvine, Calif.-based The PRES Companies (PRES), a value-add investment real estate and services firm.

 The buyer was a private investor who was represented by Jack McNutt of Newmark Grubb Knight Frank.

The sale closed at a 4.95 percent cap rate which is the lowest cap rate ever for a DaVita-occupied property nationally. Additionally, with a price-per-square-foot of $811, this represents the highest price achieved for a net-leased property sold for more than $5 million ever in Orange County according to CoStar records.
Patrick Luther

 “After exploring all our options for 4300 Von Karman, PRES ultimately negotiated a 15-year lease with Davita,” said David Bonaparte, Managing Principal with PRES. “Once we were close to finalizing the lease, PRES engaged Faris Lee to develop a disposition and pricing strategy.

“Faris Lee then began marketing the property as a pre-sale opportunity while DaVita was still in its design stage.”

The seller’s goal with the pre-sale strategy was to take advantage of favorable market conditions.

David Bonaparte
DaVita is in the process of a major remodel that includes reconfiguration, high quality finishes, and other medical tenant improvements. DaVita is planning to move in later this year once completed.

“Overall, the complex marketing and escrow period was a seamless, collaborative effort aimed at communicating effectively with the buyer throughout the process. This transaction required a high level of competency in order to close the transaction before DaVita had completed its improvements,” said Coo.

Jack McNutt
Coo added: “Given the pre-sale variables, including a pending subdivision of the parcel, as well as remaining tenant lease contingencies, the strong pricing is a major achievement.”

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

Darcie Giacchetto
Spaulding Thompson & Associates

HFF arranges $371.7 million financing for luxury high-rise condominium project in San Francisco

201 Folsom condominiums rendering, downtown San Francisco, CA

Mike Tepedino
NEW YORK, NY – HFF announced today that it has arranged $371.7 million in non-recourse construction financing on behalf of Tishman Speyer for 201 Folsom, a two-tower, 655-unit, luxury condominium development in the heart of downtown San Francisco.

Bruce Ganong
                201 Folsom was designed by world-renowned architecture firm Arquitectonica and will encompass two high-rise towers (42- and 37-stories) and two mid-rise podiums arranged around a private courtyard. 

The project will also include 10,963 square feet of ground-floor retail and amenities such as concierge service, valet parking, a private health club and spa, swimming pool, private dining, rooftop community space and a private screening room.

Michael Gigliotti
 The 1.7-acre site is situated directly across from The Infinity, which was also developed by Tishman Speyer and is the largest residential condominium development ever built in San Francisco.

 The first podium is due for completion in March 2015 and the final building is scheduled to be completed in January 2016. 

                The HFF team, led by senior managing directors Mike Tepedino and Bruce Ganong and team members Michael Gigliotti, Jennifer Keller and Brandon Roth, secured a single source lender in Cornerstone Real Estate Advisers, on behalf of an institutional investor, to provide the non-recourse construction financing.

Jennifer Keller
“We are very pleased to have assisted Tishman in securing financing for this landmark project.  Investors were extremely responsive to the strong performance of Tishman’s nearby condominium development, The Infinity, as well as the excellent location within the much sought-after Rincon Hill neighborhood,” commented Tepedino.

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

Kristen M. Murphy
Associate Director
HFF | One Post Office Square, Suite 3500 | Boston, MA 02109
Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 | www.hfflp.com

The Lionstone Group Sells Waterway Plaza Buildings in The Woodlands, TX for Highest Price Per Square Foot Paid to Date for Suburban Houston Commercial Space

Waterway Plaza I and Waterway Plaza II, 
 10003 and 10001 Woodloch Forest Drive
The Woodlands, TX

Glenn Lowenstein
HOUSTON, TX – The Lionstone Group (lionstonegroup.com), a national real estate investor, today announced the sale of Waterway Plaza I and II in The Woodlands, Texas to Clarion Partners.

 Located at 10003 and 10001 Woodloch Forest Drive, the two, Class A office buildings total 366,074 square feet and are 98 percent leased with a single anchor tenant occupying more than 50 percent of the space under a long-term lease.

This is the second time in just a decade that Lionstone has bought and sold the Waterway Plaza properties, having previously acquired the buildings in December 2003 before selling in April 2005.  In both instances, Lionstone held the assets for less than 18 months.

Trent Agnew
                “We are very pleased to realize outstanding returns for the second time on behalf of our investors,” said Lionstone Chief Investment Officer Glenn Lowenstein. 

“We acquired the Waterway assets last June with 17 percent pending vacancy but with great conviction on the strength of the market and an irreplaceable location. 

“Our excellent relationship with the major tenant led to a long term extension of their lease and a talented leasing team at Transwestern Property Company allowed us to raise rents and increase occupancy to 98 percent, all in less than a year.”  

Robert Williamson
The buildings, which were completed in 2000 and 2001, are located in The Woodlands submarket of Houston--one of the strongest submarkets in the country in terms of occupancy.  “The Waterway Plaza assets have twice confirmed Lionstone’s cash flow investment thesis that select properties in high demand locations consistently will generate attractive returns for our investors,” noted Lowenstein.

                HFF marketed the property on behalf of Lionstone Cash Flow Real Estate Partners One (CFRE), a joint venture between Lionstone and a large state pension fund. 

The HFF investment sales team representing Lionstone was led by senior managing directors Jeff Hollinden and Robert Williamson and director Trent Agnew. 

Jeffrey Hollinden
According to HFF, Waterway Plaza sold for the highest price per square foot paid to date for suburban property in the Greater Houston Area.

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

Olivia Hennessey
HFF | 9 Greenway Plaza, Suite 700 | Houston, TX 77046
tel 713.852.3403 | fax 713.527.8725 | www.hfflp.com

HFF arranges $25.04 million acquisition financing for Class A medical property in Dallas, TX area

Victory Medical Center at Craig Ranch, 6045 Alma Road, McKinney, TX

DALLAS, TX – HFF announced today that it has arranged $25.04 million in acquisition financing for Victory Medical Center at Craig Ranch, a 113,375-square-foot, Class A hospital/medical office in McKinney, Texas. 

Steve Heldenfels
HFF worked exclusively on behalf of the borrower, a joint venture between Forge Realty Partners, LLC, Chief Partners and Victory Healthcare, to secure the loan through American Momentum Bank. 

Managing director Steve Heldenfels and real estate analyst Jeremy Sain led the efforts on behalf of the borrower at HFF.

Victory Medical Center at Craig Ranch is located at 6045 Alma Road just off State Highway 121 and is situated midway between the Dallas North Tollway and the Central Expressway. 

Josh Ihde
Constructed in 2009, the property consists of one building, which includes a four-bed intensive care unit, 20 private suites, seven operating rooms, three special procedure rooms and 10 medical office tenants.

“HFF did a great job working within a very compressed timeframe to identify numerous senior lenders that helped raise the funds and complete this transaction,” said Forge managing partner Josh Ihde.

“Victory Medical Center Craig Ranch is an important part of the Victory Healthcare System and we are pleased with the speed at which HFF and Forge were able to make this happen,” added Bob Helms, Victory Healthcare’s chairman and chief executive officer.

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

Olivia Hennessey
HFF | 9 Greenway Plaza, Suite 700 | Houston, TX 77046
tel 713.852.3403 | fax 713.527.8725 | www.hfflp.com

VOIT REPORT: Orange County, CA Office Market Recovery is Solid; Lease Rates Rise for First Time Since 2007

          Orange County, CA,  (July 2, 2013) – The Orange County office market demonstrated new signs of recovery in the second quarter of 2013, posting over 730,000 square feet of positive net absorption and ending the quarter with the first increase in average asking lease rates seen since 2007, according to a new Second Quarter Market Report from Voit Real Estate Services.

Jerry Holdner
“This is good news for the Orange County market overall,” explains Jerry Holdner, Vice President of Market Research at Voit.  “The rise in rates, while modest, demonstrate a bottom in the downward trend of asking lease rates, which further supports the recovery we’ve been forecasting for the past 12 to 24 months.”

Lease rates rose from $1.88 to $1.89 in Q2 2013, and Voit forecasts that these rates will continue to increase in 2013.

“The gradual rise of rates, coupled with the slowing of concessions, which we’ve seen over the past 24 months, will begin to push net operating incomes and property values higher,” says Holdner.  “As a result, we anticipate an overall increase in investment activity in the coming quarters.”

Demand for Class A Office Product Returns

As a whole, the Orange County office market posted over 1.3 million square feet of positive net absorption in the first half of 2013, giving the market a total of over six million square feet of positive absorption over the last three years, according to Voit’s report.

One trend to note, according to Holdner, is the resurgence of demand for Class A space in the second quarter of 2013.

“In the first quarter of 2013, all office absorption was in Class B buildings,” he explains.  “In the second quarter, 470,000 square feet of positive absorption was in Class A space, while only 250,000 square feet was Class B. The return to Class A demonstrates ongoing confidence in the office market, which will continue to fuel market recovery.”

As the recovery continues, Holdner notes that research-oriented businesses such as IT, defense, medical, and alternative energy will lead the charge of positive absorption in the Orange County office market.

Vacancy and Availability Continue Downward Trend

          Vacancy and availability also declined in 2013’s second quarter, demonstrating further market strength, according to Holdner. 

Vacancy in direct/sublease space finished the quarter at 12.49 percent, a substantial decrease from the previous year’s rate of 14.53 percent, and a significant decrease from the Great-Recession peak of 18 percent, which was reported in Q2 of 2010. 

“We are forecasting that vacancy will continue trending downward in 2013, ending the year around 11.6 percent,” says Holdner.

Availability also decreased in 2013’s second quarter, with all space being marketed (including direct, sublet, and occupied) dropping to 17.78 percent - a decrease of almost 6.5 percent when compared to 2012’s second quarter rate of 19.02 percent.

          “As we progress into the second half of 2013, we expect to see further improvement throughout the Orange County office market,” says Holdner.  “Positive absorption should continue, lease rates will likely continue to rise, and we anticipate that overall activity will increase over the next two to three quarters.”

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

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

Essex Realty Group Brokers Sale Of Thalia Hall Mixed-Use Property in Chicago, IL

Thalia Hall, 1215-25 West 18th Street, Pilsen Neighborhood, Chicago, IL

Doug Fisher
CHICAGO, IL– Tuesday, July 2, 2013 - Essex Realty Group, Inc. is pleased to announce the sale of Thalia Hall (1215-25 W. 18th Street), a prominent and historic, mixed-use property located in Chicago’s Pilsen Neighborhood.  

 Thalia Hall consists of a two-level restaurant with large kitchen and office in the basement, adjacent there is also a vacant theater, three (3) first-floor commercial spaces with basements, eight (8) gut-rehabbed, duplex apartments and six (6) garage parking spaces.

Matt Welke
 The building received Landmark Designation from the Commission on Chicago Landmarks on October 25, 1989.

Doug Fisher, Matt Welke and Jason Fishleder of Essex represented the seller and the buyer in the transaction.  The sale price was $3,200,000.

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

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

Douglas Fisher
Essex Realty Group, Inc.

Longer-Term Treasuries Throw Real Estate Capital Markets into Tailspin

. Chicago, IL -- What a difference a month can make!  Short and longer-term treasuries skyrocketed by a half a point causing throwing the real estate capital markets into a tailspin. 

Instant reaction varied from pulling out of the market to directly passing through interest rates to borrowers.  In reality, most funding sources chose a path somewhere in between including structuring the following underwriting solutions:

*    Rate-locked deals closed without any fanfare, while loans under application (but without rate-locks) were adjusted by 10 to 25 basis points, depending upon the specific terms and conditions.  Many lenders tried to
absorb about half or less of the rate increases to show good faith to their

*    Except for very highly leveraged loans, most funding sources made every effort to keep loan proceeds the same, despite more stressed underwriting. 

*    Debt service coverage, almost instantly, became the most important loan sizing benchmark, as increased rates quickly surpassed loan-to-value and debt yield thresholds.  Today, 125% debt coverage is most common value, but exceptions are made for existing loans already in play.  Even LIBOR-based structures can limit proceeds based on stressed rates starting at 6% for underwriting purposes.

*    Rate floors are increasingly popular- for example, 4% for ten-yearloan.  However, most lenders start loan discussions at rates in the mid-4%
range, given current mortgage spreads (mostly unchanged).

Jeanne Peck

*    Forward-delivery rate-locks beyond 90 days are mostly on hold as
lenders wait for more market clarity.

*    Floating-rate debt is generally unaffected as witnessed by flat
LIBOR pricing.

Jeanne Peck, director of the Real Estate Capital Institute, emphasizes, "The
dramatic widening of interest rates clearly illustrates the differences between various types of lenders, namely life companies, banks and Wall Street." 

She adds, "Wall Street responds instantly, while life companies and banks try to absorb some of the volatility while chasing quality; banks chase customer relationship and balance sheets."

The Real Estate Capital Institute(r) is a volunteer-based research organization that tracks realty rates data for debt and equity yields.  The Institute posts daily and historical benchmark rates including treasuries, bank prime and LIBOR.  Furthermore, call the Real Estate Capital RateLine at 7RE-CAPITAL (773-227-4825) for hourly rate updates. 

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

The   Real Estate Capital Institute(r)
3517 West Arthington Street
Chicago, Illinois USA 60624
 Jeanne Peck, Executive Director

Even with Low Inventory, Number of Manhattan Apartment Closings Down Just 1% and Average Sales Price Down Just 3% from Second Quarter 2012

New York, NY, July 2, 2013 --According to the 2013 second quarter Manhattan residential market report released today by Brown Harris Stevens, the average Manhattan apartment sale price of $1,411,986 was down 3% from the second quarter of 2012.

The median price, which measures the middle of the market and is less impacted by high-end sales, was unchanged from a year ago - $850,000. With inventory still at low levels, the number of closings was down just 1% to 2,475 when compared to the second quarter of last year.

 The average price of cooperative apartments fell 11% when compared to the second quarter of 2012. This was due in large part to a significant drop in average price for 3-bedroom and larger homes. Condominium prices were up 4% to $1,879,253 with almost all size categories experiencing an increase in price.

Hall F. Wilkie
“With inventory near record lows, the market report doesn’t fully capture the level of activity in the market place,” said Hall. F. Willkie, president of Brown Harris Stevens Residential Sales.

“Scarcity is an important issue, and when apartments are properly priced they are selling quickly. While there is great demand and small supply, buyers are reluctant to pay a price that is not justifiable,

 “Job growth remains strong in the City as does interest from both domestic and international buyers. This bodes well for a healthy market.”

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

Rachel Gonzalez,
 Rubenstein PR


Historic Shopping Center Norwichtown Commons Hosts Community Celebration to Mark Official Grand Opening


Norwichtown Commons ribbon-cutting ceremony, Norwich, CT.  From left, State Senator Cathy Osten, Greater Norwich Area Chamber of Commerce Chairman Todd Postler, Mayor Peter Nystrom, Winstanley Enterprises Principal Adam Winstanley and Surrey Equities President Edward Silvera.

Norwich, CT— Less than two years ago, the joint venture team of Winstanley Enterprises and Surrey Equities acquired the historic Norwichtown Mall with a vision of rejuvenating the shopping center into thriving retail space.

Recently the development team gathered with business, political and community leaders at a public event to celebrate the official Grand Opening of Norwichtown Commons.

State Senator Cathy Osten, State Representative Kevin Ryan, Mayor Peter Nystrom, City Manager Alan Bergren and several members of the City Council headlined a group of dignitaries joining Winstanley Enterprises and Surrey Equities to celebrate this official milestone. The group recognized the community effort that was put forward to make the project a success, and also showcased the retailers that call Norwichtown Commons home.

Alan Bergren
The development team broke ground on Norwichtown Commons in May of 2012, and has reconfigured the historic mall into an open air retail complex of approximately 160,000 SF. The former mall now features improved parking and visibility.

Norwichtown Commons currently features Stop & Shop, Dress Barn, Lucky House restaurant Fancy Nails, Hair Cuttery, Petsense, Dollar Tree and Big Lots.  Soon to open will be Planet Fitness and Yogurt City, while a few retail spaces remain available for lease. 

“We could not be more proud to see the vision that we had nearly two years ago transformed into reality here today,” said Adam Winstanley, a Principal of Winstanley Enterprises. “The support from the community and elected officials that both we and our retailers have received has been overwhelming, and it truly is rewarding to see that community spirit on display here today as we celebrate.”

Robert Mills
The event featured an official ribbon cutting ceremony, as well as a time capsule dedication which included items from each retailer as well as proclamations from local officials, past news coverage of the development and daily newspapers, as well as items from business and community leaders. The capsule will be buried at a later date and unearthed in 20 years on June 27, 2033.

“We especially applaud the retailers who have chosen Norwich as your home for years to come,” said Edward Silvera, president and principal of Surrey Equities.  “This community has fond memories of the Norwichtown Mall, and now has the chance to create future memories here at Norwichtown Commons.”

All of the retailers participated in the event. Several retailers, such as Stop & Shop and Dress Barn have had great success at the location through the years and are excited to see the area rejuvenated with new neighbors.  Other retailers have either recently opened their doors or will soon celebrate their own grand openings.

"Stop & Shop congratulates all of our partners on the grand opening of Norwichtown Commons. We first joined the Norwich community in 1966 and are proud to help celebrate this latest milestone in the city's history," said Jay Mathieu, store manager of Stop & Shop. The event was hosted inside of Stop & Shop.

Robert Mills of the Norwich Community Development Corporation expressed his excitement on Norwichtown Commons becoming an asset to the City of Norwich. “It is sure to develop into a community focal point that citizens will be proud of for decades to come,” Mills said.  

Jay Mathieu
Proclamations were presented by State Senator Cathy Osten on behalf of the State of Connecticut and by Norwich Mayor Peter Nystrom and the City Council who proclaimed June 27, 2013 “Norwichtown Commons Day” in the City of Norwich.

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

Matthew Watkins
President | Watkins Strategies
43 Lunt Street
Quincy, MA 02171