Monday, February 3, 2014

Peachtree Hotel Group Posts Record Growth Goals with 16 Acquisitions in 2013 and 2014; Predicted to Surpass Previous High Water Marks

Greg Friedman
ATLANTA, GA,  Feb. 3, 2014—Officials of Peachtree Hotel Group, one of the nation’s fastest growing hotel acquisition, management, development and ownership groups, today announced that it significantly exceeded its projections for 2013, adding 16 hotel assets and three third-party management contracts. 

The company remains equally optimistic for 2014, projecting it will add 12-14 hotel assets, both acquisitions and new-builds, and up to six, third-party management contracts by year’s end.  Already this year, the company has three hotel assets under contract for a total of 483 rooms.

            “All metrics point towards 2014 being another strong year for the hospitality industry, and we plan to aggressively pursue projects where we believe we can provide the best service and add value as either an owner and/or operator,” said Greg Friedman, Peachtree CEO. 

“Additionally, we are selectively considering certain development opportunities and expect to execute on two to four new builds this year.” 

“We are pursuing sites that have high barriers to entry with multiple demand generators and long-term growth opportunities,” said Jatin Desai, Peachtree CIO.   “Given the cyclicality of the hotel industry, we are disciplined in our development process so that our projects can generate risk-adjusted returns in all phases of the real estate cycle.”

Jatin Desai
Peachtree acquired 16 assets in 2013 totaling 2,015 rooms.  Additionally, the company disposed of 10 assets in 2013. 

  The company also became an approved 3rd party operator for the Marriott CFRST brands and already has added two properties to its third-party management portfolio. 

  Peachtree will invest in excess of $20 million during 2014 to upgrade its owned hotel portfolio.

            With acquisition and investment capabilities and seasoned, third-party management expertise, Peachtree focuses on premium-branded, select-service and limited-service hotels.  

While the company has experience in all markets nationwide, its portfolio centers primarily on the Southern and Midwestern U.S.

            “Between operating performance and acquisition opportunities, we forecast another strong year for Peachtree and the hospitality industry overall,” said Mitul Patel, Peachtree COO. 

Mitul Patel
  “We expect that the majority of our portfolio will experience moderate RevPAR growth and that the cost of capital will remain historically inexpensive over the coming 12 months.  All of these factors will contribute to a fertile transaction market for 2014.”

            To facilitate its fast-paced growth, Peachtree has continuously expanded its operation, acquisition and investment management teams, adding eight people over the past six months. 

  “As we expand, we have trigger points to add additional bench strength to help manage our ever growing portfolio,” Patel added.
For a complete copy of the company’s news release, please contact:

Chris Daly
Daly Gray Public Relations
Tel: 703 435 6293

PKF Releases Latest Forecast Assessment: Accuracy Remains High

Atlanta, GA – PKF Hospitality Research, LLC (PKF-HR) released the results of their latest assessment of the accuracy of their Hotel Horizons® forecasts for the U.S. lodging industry. 

This is the third periodic review conducted by PKF-HR since 2005 and is an important and critical component of the firm’s forecasting efforts.

R. Mark Woodworth
“When we initially entered the econometric forecasting business 14 years ago, we committed ourselves to a process of continuous self-evaluation,” said R. Mark Woodworth, president of PKF-HR.

 “The findings from these analyses inform the nuts and bolts of our ongoing forecasting efforts.  Plus it enables our clients to overtly see that we strive to provide them with the most accurate forecasts upon which to make their important decisions.”

PKF-HR’s Hotel Horizons® is a series of hotel forecast reports that analyze the historical and expected performance of U.S. lodging markets. 

Driven by a series of econometric forecasting models, the Hotel Horizons® reports cover five years of supply, demand, occupancy, ADR, and RevPAR for 50 major U.S. markets, as well as six national chain-scale segments and six national location categories. 

Within each market forecast, separate estimates are prepared for upper-price and lower-price hotels.  The model relies on historical lodging data from Smith Travel Research, as well as historic and forecast economic data from Moody’s Analytics.

John B. (Jack) Corgel

            National Accuracy Highest
“Overall, we remain pleased with our demonstrated accuracy.  We have learned that the accuracy of our forecasts varies with changes in the business cycle, as well as size of the market to be forecast,” said Woodworth.

 “As we have seen in the past, the long-term accuracy of our national forecasts of the U.S. lodging market in its entirety, the chain-scales and the location categories, is very high,” said John B. (Jack) Corgel, PhD., the Robert C. Baker professor of real estate at the Cornell University School of Hotel Administration and senior advisor to PKF-HR.  

“One area where we have seen improvement since our last assessment is in the accuracy of our short-term forecasts.  We attribute the improvement in short-term forecast accuracy to the lessons learned during our 2010 accuracy assessment.”
For a complete copy of the company’s news release, please contact:

R. Mark Woodworth                                             Chris Daly
PKF Hospitality Research, LLC.                           Daly Gray Public Relations
Tel: 404 842 1150, ext 222                                   Tel: 703 435 6293

IPA Sells Development Site in New York City’s Hudson Yards for $26.25 Million

346 West 40th Street, Hudson Yards area, New York City, NY

Peter Von Der Ahe

NEW YORK, NY, Feb. 3, 2014 – Institutional Property Advisors (IPA), a multifamily brokerage division of Marcus & Millichap serving the needs of institutional and major private investors, has arranged the sale of 346 West 40th St., a 98,750-square-foot development site on the south side of 40th St. between 8th Ave. and 9th Ave. in New York City’s Hudson Yards area.

The $26,250,000 sales price equates to $266 per square foot.

Glen Kunofsky
            The site is one of a few lots within a special Hudson Yards development subdistrict that gives developers of commercial or residential projects in the area an opportunity to receive a zoning bonus that would allow their project to exceed the established maximum floor-to-area ratio.

            Marcus & Millichap’s Glen Kunofsky and IPA’s Peter Von Der Ahe, Joseph Koicim and Sean Lefkovits advised the seller, an East Coast-based family partnership that had owned the site for approximately 25 years. The buyer is hotel developer Sam Chang.

Joseph Koicim
            “Hudson Yards is the largest private development ever undertaken in New York City,” says Koicim. “The area was rezoned in 2005 and allows for approximately 26 million square feet of new office development, 20,000 new apartments, 2 million square feet of retail and 3 million square feet of hotel space.”

            “The development will bring millions more visitors to New York City and create over 30,000 jobs,” adds Von Der Ahe. “The acquisition of 346 West 40th St. gives the new owner a tremendous opportunity to redevelop as much as 177,750 square feet on the site.”

Sean Lefkovits
            “The sellers are a private family that decided to pursue a 1031 tax deferred exchange through Marcus & Millichap’s NNN Pro Group,” says Kunofsky. “The family was able to diversify and attain a much higher current yield by acquiring multiple net- lease properties.”

            A six-story, 250-space, 53,172-square-foot parking garage currently occupies the space. Chang purchased the long-term triple-net lease on the site from Peach Parking Corp. That lease would have expired in February 2030.

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

Gina Relva
Public Relations Manager
(925) 953-1716

Palm Beach County, FL Retail Center Hits the Market at $11.1 Million

Addison Court Shoppes, 17940 North Military Trail, Boca Raton, FL
BOCA RATON, FL, Feb. 3, 2014 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has the exclusive listing to market for sale Addison Court Shoppes, a 20,860-square-foot retail center with a 4,000-square-foot Bank of America outparcel in Boca Raton, Fla. The listing price is $11,165,000.

Douglas K. Mandel
            Douglas K. Mandel, a first vice president investments in Marcus & Millichap’s Fort Lauderdale office, is representing the seller.

            “Addison Court is an upscale shopping plaza anchored by Bank of America, Starbucks and Kee Grill,” says Mandel. “It is located in one of Palm Beach County’s highest annual household income areas.”

            “The property has retail frontage directly on Military Trail and is 100-percent occupied,” adds Mandel. ”The offering is an opportunity to purchase a high-quality asset with strong in-place cash flow in a prime Boca Raton location with high traffic counts and strong demographics.”

The property is located at 17940 North Military Trail just north of Clint Moore Road in Boca Raton, Fla.

Boca Raton is the largest city between West Palm Beach and Pompano Beach in Broward County and Military Trail is one of Palm Beach County’s major north/south thoroughfares. 

The traffic count at the intersection of North Military Trail Clint Moore Road is approximately 35,000 vehicles per day, and the annual household income within a one-mile radius of the property is approximately $130,899.

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

Gina Relva
Public Relations Manager
(925) 953-1716

HFF arranges $7.26 million financing for retail strip center in North Las Vegas, NV

Craig Promenade, 525--785 West Craig Road, North Las Vegas, NV

IRVINE, CA – HFF announced today that it has arranged $7.26 million in financing for Craig Promenade, an 86,395-square-foot retail strip center in North Las Vegas, Nevada.

John Chun
HFF worked on behalf of RREF II-KI, Promenade, LLC, a partnership between Kismat Investments and Rialto Capital, to secure the three-year, floating-rate loan through RRA Capital Management.  Loan proceeds were used to acquire the property.

The property is situated on 10.81 acres at 525-785 West Craig Road across from Craig Ranch Regional Park.  

Completed in 2005, Craig Promenade is leased to tenants such as Big Lots, MetroPCS and Sinclair gas station.

The HFF team representing the borrower was led by director John Chun and real estate analyst Sebastian Trujillo.

Sebastian Trujillo
Kismat Investments is a western U.S.-focused, value add, real estate investment management platform.  The company focuses on identifying opportunities to acquire existing properties in improving submarkets at prices below replacement cost, with the opportunity to create value through stabilization of the asset.

Rialto Capital Management (“Rialto”), a wholly owned subsidiary of Lennar Corporation (NYSE: LEN), is a vertically integrated real estate investment management company focused on distressed and value-add investments and asset management, workout and turn-around strategies. 

Rialto was formed in 2007 and, since its inception, has participated in the investment of billions of dollars in distressed real estate assets and commercial mortgage-backed securities (“CMBS”).  Rialto is headquartered in Miami, Florida with offices across the United States. 

Rialto is led by director Tony Del Grippo and can be reached at 303-520-2896 or

 For more information, please visit  
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 |

HFF hires Michael Tabor as a director in its Tampa, FL office to focus on debt and equity transactions

Michael Tabor
TAMPA, FL – HFF announced today that Michael Tabor has joined the firm as a director in its Tampa office.  Mr. Tabor will specialize in arranging debt and equity placement transactions in the southeastern United States.

               Mr. Tabor has more than nine years of experience in the commercial real estate industry and has been involved with more than $1 billion of commercial real estate financing transactions throughout his career. 

Prior to joining HFF, Mr. Tabor was a loan officer - assistant vice president at Walker & Dunlop, where he assisted with managing the Florida capital markets group.

 Earlier in his career, he helped launch America Real Estate Capital, a Florida-based life insurance company lender
 Mr. Tabor began his career with GMAC Commercial Mortgage and was also a member of the U.S. Army.  He is active member of Urban Land Institute, International Council of Shopping Centers, the Industrial Association for Dade County and the National Association of Industrial and Office Properties.

  He received his Bachelor of Science in Business Administration from Northeastern University. 

Daniel C. Peek
 “Michael is a highly driven professional with extensive commercial real estate finance experience and we are eager to have him on board as he will undoubtedly provide valuable services to our clients both locally and nationally.”

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 |

HFF arranges $41.41 million financing for five-building office and industrial portfolio in three states

Northmont Distribution Center, Duluth, GA

ATLANTA, GA – HFF announced today that it has arranged $41.41 million in financing for a five-building office and industrial portfolio totaling approximately 700,000 square feet located in Texas, Georgia and Florida.

Riverpark Distribution Center, Fort Worth, TX

HFF worked exclusively on behalf of the sponsor, FRAPAG America, Inc., to secure the10-year, fixed-rate loan through The Royal Bank of Scotland (RBS).  Proceeds were used to refinance maturing debt on the properties.

Individual property details are listed below:

                                                                                                                                                                Size                           Year Built          % Leased  

Riverpark Distribution Center                                300,566 SF              2004                     100%
 15000 Grand River Road
Fort Worth, Texas

Northmont Distribution Center                             236,070 SF              2006/2007              100%
2205 Northmont Pkwy./2115 Evergreen Blvd.
Atlanta (Duluth), Georgia

Waterview Office Buildings                                    162,721 SF              2002/2007              92%
10748 & 10752 Deerwood Park Blvd.
Jacksonville, Florida                                               

Waterview Office Buildings, Jacksonville, FL
The HFF team representing the borrower was led by senior managing director Mark Sixour and associate director Bill Ireland.

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 |

Englewood Construction Food Service Group Announces Four Food-Related Projects in the Midwest

Trader Joe’s at 1600 Milwaukee Avenue, Libertyville, IL

William Di Santo
CHICAGO, IL (Feb. 3, 2014) – Englewood Construction, one of the country’s leading commercial construction firms, has announced its food service group has begun work on two new food service-related projects and completed two more, with three in the Chicago market and one in Wixom, Mich.

“Interior build outs and remodeling projects in the restaurant and grocery markets kept us busy last year and that trend is continuing in 2014,” said William Di Santo, president of Lemont, Ill.-based Englewood Construction. “Customer demand and the need for national food service providers to stay competitive are driving these projects.”

Rosemont, Ill.-based US Foods, Inc., a leading food company and distributor to restaurants, healthcare, hospitality, government and educational facilities, hired Englewood Construction to remodel its test kitchen and training facility in Wixom, Mich.

In early December, Englewood began the interior remodel of the 1,800-square-foot space to accommodate the latest kitchen and training equipment. The project is scheduled to be complete in late February. Wisconsin-based ESI Design Services is the project architect.

 “US Foods offers more than 350,000 products that are “Keeping Kitchens Cooking” nationwide,” Di Santo said.

McCormick Place, Chicago, IL
 “Development of these products originates in the company’s test kitchens and training facilities, so our goal was to create an environment that fosters creativity and cutting-edge culinary discoveries.”

US Foods operates over 60 test kitchens across the country where US Foods chefs help customers stay abreast of culinary trends, increase sales and manage costs.

 Another Englewood project, which began in mid-December, is the interior build-out of the 23rd Street CafĂ© at McCormick Place in Chicago. Savor, the food and beverage supplier to McCormick Place, hired Englewood for the 4,379-square-foot build-out, which includes adding a bridge walkway in the existing concourse. Designed by Wilmette, Ill.-based Sarfatty Architects, it is scheduled to be complete in early-March.

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

Mark Thomton,, 312-267-4523