Sunday, June 2, 2019

CBRE States Gradual Slowdown in U.S. Hotel Performance to Continue

R. Mark Woodworth
Atlanta, GA –– The U.S. lodging supply will increase at an annual pace greater than the long-run average through 2022, according to CBRE Hotels Research’s latest report.

Meanwhile, the annual rise in the demand for these new hotel rooms is projected to average roughly three-quarters of its respective long-run average.  The result is declining occupancy forecasts for the U.S. lodging industry in both 2020 and 2021.

According to the June 2019 edition of Hotel Horizons®, CBRE Hotels Research projects U.S. national occupancy levels to remain flat in 2019 at 66.2 percent, then decline to 65.7 percent in 2020 and 64.6 percent in 2021.  

For context, U.S. occupancy averaged 62.5 percent from 1988 through 2018, according to STR.

“Given the cyclical nature of the lodging industry, it is expected that hotel owners will realize a bit of a slowdown after 10 consecutive years of occupancy expansion,” said R. Mark Woodworth, Senior Managing Director of CBRE Hotels Research. 

 “Despite the anticipated declines, the national occupancy level will remain at least 200 basis points above the long-run average through 2023.  This provides a cushion should economic and market conditions take a severe turn for the worse.”


Chris Daly
Daly Gray Public Relations
703 435 6293

JLL Reports Phoenix medical office vacancy rates down 33% in last five years

Katie McIntyre

PHOENIX, AZ – A booming population, aging demographics and freeway expansions have significantly increased demand for medical services in metro Phoenix, according to the Phoenix office of JLL, resulting in a 33 percent decrease in office vacancies since 2010.

According to the company’s recently released Medical Office Overview, the metro Phoenix medical office market currently represents almost 17 million square feet of on- and off-campus space.

An additional 301,000 square feet is now under construction – all located in the Southeast Valley, which at more than 4.52 million square feet represents the Valley’s largest medical office submarket.

“The variety and sophistication of Phoenix’s medical office space is maturing right alongside our population figures, and we are seeing positive results in all of our communities because of this,” said JLL Senior Associate Katie McIntyre.

While the Southeast Valley is enjoying the lion’s share of active new construction, the Southwest Valley was the only metro submarket to achieve positive net medical office space absorption, totaling 26,723 square feet during the first quarter.

JLL expects demand in that submarket to continue to rise, particularly following this year’s completion of the area’s new Loop 202 freeway expansion.

The Central Business District, Southeast Valley and Northeast Valley are at a near tie for lowest medical office vacancy rate, all sitting in the mid-11 percent range. This helps bring the overall Phoenix medical office vacancy to just 13.3 percent, a full 33 percent lower than it was five years ago.

“These are powerful figures that are attracting everything from world-class hospitals and outpatient centers to innovative specialized treatment facilities," said McIntyre.

"They are also encouraging both large-scale facilities and physicians groups to expand throughout the Valley, creating new development projects in growing communities.

"That growth – along with our popularity as a retirement destination – will only expand this mix and provide welcome stability for our on- and off-campus medical projects.”

To access JLL research for Phoenix and across the U.S., visit the company’s research page at


Stacey Hershauer
Phone: +1 480 600 0195

FLITE Center Leases 11,000 SF of Office Space at Prospect Park, Fort Lauderdale, FL

 Prospect Park I, 5201 Northwest 33rd Street, Fort Lauderdale, FL

FORT LAUDERDALE, FL – Fort Lauderdale Independence Training & Education (FLITE) Center has signed a lease for 11,057 square feet of office space at Prospect Park I, located at 5201 N.W. 33rd St. in Fort Lauderdale.

Keith Graves
Brokers Keith Graves, Jonathan Thiel, and Joseph Byrnes, all of Berger Commercial Realty/CORFAC International, negotiated the lease on behalf of the property’s landlord, AKF# SF Light Industrial, LLC.

For more information about Berger Commercial Realty’s leasing services, please call 954-358-0900.


Lexi Robinson, ext. 255,

Marielle Sologuren, ext. 226,

B+E brokers $324 million Cabela’s sale-leaseback through proprietary digital platform

One of 11 Cabela locations in $324 Million Sale-Leaseback Deal

NEW YORK, NY – B+E, the first brokerage and technology platform for net lease real estate,  announced that it has brokered a sale-leaseback transaction for 11 Cabela’s locations for $324,335,000.

“Leveraging the largest dataset in net lease real estate, B+E delivered multiple, qualified buyers for Cabela’s to choose from,” said Camille Renshaw, CEO of B+E.  “We are very excited to have closed what we believe is the largest commercial real estate sale ever brokered by a digital platform.”

Camille Renshaw

The buyer is a Sansome Pacific joint venture, and the seller is Bass Pro Shops, which merged with Cabela’s in 2017. The sale-leaseback term is 25 years.

B+E uses artificial intelligence combined with senior people to track the most active buyers in the real-time, net lease market, much as stock and bond software tracks institutional investors. The algorithm evaluates a buyer’s past purchases, as well as current acquisition criteria and dollars raised that must be allocated within a given year. 

Scott Scurich

Co-founders Camille Renshaw and Scott Scurich were previously traditional net lease real estate brokers then later joined Ten-X, a Google Capital company.  They launched B+E in 2017, and past experiences from both street brokerage and CRETech have influenced the technology that B+E continues to develop.

About Cabela’s/ Bass Pro Shops

Bass Pro Shops is North America’s premier outdoor and conservation company. Founded in 1972, when avid young angler Johnny Morris began selling tackle out of his father’s liquor store in Springfield, Missouri, today the company provides customers with unmatched offerings spanning premier destination retail, outdoor equipment manufacturing, world-class resort destinations, and more.

John L. "Johnny" Morris and mentor, father John A. Morris
 In 2017, Bass Pro Shops acquired Cabela’s to create a “best-of-the-best” experience with superior products, dynamic locations and outstanding customer service. 

Bass Pro Shops also operates White River Marine Group, offering an unsurpassed collection of industry-leading boat brands, and Big Cedar Lodge, America’s Premier Wilderness Resort. 

Under the visionary conservation leadership of Johnny Morris, Bass Pro Shops is a national leader in protecting habitat and introducing families to the outdoors and has been named by Forbes as “one of America’s Best Employers.”


John Vita
John Steven Vita Communications

George Smith Partners Arranges $128 Million Financing for 566-Unit Multifamily Property in Downtown Los Angeles, CA

566-unit Orsini II multifamily property, 550 Figueroa Downtown Los Angeles

LOS ANGELES, CA – George Smith Partners, one of the nation’s leading commercial real estate capital market advisors, has successfully arranged $128.1 million in financing for Orsini II, a 566-unit, institutional-quality multifamily property in Downtown Los Angeles.

 The funding was secured by Gary M. Tenzer, Principal and Co-Founder at George Smith Partners.

The new loan replaces a $115.2 million floating rate loan George Smith Partners secured for the property in 2016, which had a remaining term of more than eight years and pre-payment penalties in place.

“We determined that the interest rate savings for a new 10-year loan would easily offset the early pre-payment costs of the existing loan, while also providing the Sponsor with the opportunity to harvest appreciated equity,” says Tenzer.

Gary M. Tenzer
"Additionally, we were able to secure a forward index lock and a deferred closing to stave off further rate increases before the existing variable rate loan was no longer locked out and able to be repaid."

Tenzer notes that the run-up in interest rates last summer drove the decision to secure the early rate lock.

"Today’s property owners can benefit from working with an advisor who takes a holistic approach that serves both the borrower and the life of the investment," says Tenzer. "In many cases, refinancing in the current rate environment can result in tremendous savings over the long term."

The $128,130,000 loan funded as a 10-year, fixed-rate, interest-only, non-recourse loan at 4.24% with a 55 percent loan-to-value.

Located at 550 Figueroa in Los Angeles, Orsini II is a mid-rise, over podium apartment complex comprised of five stories built over a three-level parking garage, within walking distance of central downtown Los Angeles and the LA Music Center.  


Lisa James/Jenn Quader
(949) 438-6262

Levin Johnston Directs Acquisition of $40 Million Multifamily Asset in California's Bay Area

926 Woodside, a 77-unit apartment community in Redwood City, CA, was part of a 1031 Exchange transaction

BAY AREA, CA – Levin Johnston of Marcus and Millichap, one of the top multifamily brokerage teams in the U.S. specializing in wealth management through commercial real estate investments, has successfully directed the $40 million acquisition of 926 Woodside, a 77-unit apartment community, situated in Redwood City, California.

Adam Levin, Robert Johnston and Michael Henshaw represented the buyer, a private investor in the transaction.

This acquisition was part of a complex 1031 exchange through which Levin Johnston identified an opportunity for the buyer to consolidate his four existing multifamily properties into one stable, cash-flow trophy investment.

Adam Levin
“This transaction demonstrates the difference between a wealth-focused commercial property advisor and a run-of-the-mill broker,” says Levin, Executive Managing Director of Levin Johnston.

“Our team understands the Bay Area’s strong economic growth and property appreciation and recognized the opportunity for the buyer to take advantage of a 1031 exchange.

"Our client will now benefit from consolidation, diversification, and management relief, as well as increased cash flow and income for years to come.”

Robert Johnston, Senior Managing Director of Levin Johnston, explains, “The Redwood City submarket is a hub of investment activity for buyers seeking to deepen the value of their portfolio, and sellers leveraging current market fundamentals to achieve value.”

926 Woodside is located in the coveted Palm Park neighborhood with direct access to Highway 101 and Interstate 280 – making it an attractive choice for commuters. The apartment community is also in close proximity to public schools, job centers, convenient medical services, recreational outlets as well as a wide variety of retail and entertainment options.

Robert Johnston
Originally constructed in 1963 and renovated in 2016, the property now offers its residents secure gated entry, keyless building entry, elevators, bike storage, EV chargers, on-site laundry room and community courtyards with BBQ areas. 

“Fully renovated, high-quality multifamily assets demonstrate extremely strong long-term performance in this sought-after Bay Area market,” says Johnston.

“By guiding our client through the complexities of this exchange, we successfully helped the buyer trade up from a $31.875 million portfolio into a trophy $40 million asset that will deliver deep value for years to come.”

The property exchange included the sale of four multifamily communities with a combined value of $31.875 million.

131 Elm Street, a 20-unit multifamily property situated in San Mateo, California.

Delano Apartments, a fully upgraded 35-unit multifamily community in San Jose, California.

560 Charter Street, a 15-unit apartment complex located in the mid-peninsula city of Redwood City, California.

1416 Floribunda Avenue, a nine-unit apartment building situated in Burlingame, California.

Michael Henshaw
Levin Johnston has already completed over $348 million in sales in 2019 to date, demonstrating a continued demand for multifamily assets in this region.

To learn more about the firm’s $100 million in available properties, please visit:


Alex Caswell / Jenn Quader 
Brower Group
(949) 438-6262

Sean Patrick

ATLANTA, GA – Ackerman Retail has completed the sale of the 16,600-square-foot Shoppes on Sugarloaf neighborhood shopping center in Duluth, Ga., in the heart of Gwinnett County’s retail corridor for $4,425,000.

Ackerman Retail Senior Vice President Sean Patrick, CCIM, represented the seller, a private investor based in Florida, in the sale of the property to South Coast Commercial Inc. Shoppes on Sugarloaf is located next to Infinite Energy Center and the future $1-billion Revel Gwinnett mixed-use and entertainment center.

Featuring a mix of national retail brands, regional restaurants and local service tenants, the property is stabilized.

“The Shoppes on Sugarloaf offers the buyer an ideal retail location in Gwinnett County’s strongest retail, business and entertainment hub," said Patrick.

"Combined with the property’s synergistic tenant mix, high occupancy rate and strategic location next to Revel Gwinnett, this made for a very attractive investment.”

Shoppes on Sugarloaf neighborhood shopping center, Duluth, GA
He added, “We received seven or eight purchase offers in the first week Shoppes on Sugarloaf went on the market. With the property’s close proximity to a mixed-use project generating excitement in the submarket, investors are confident they’ll be able to push rental rates.”

Located at the intersection of Sugarloaf Parkway and Meadow Church Road, the Shoppes on Sugarloaf offers two points of ingress/egress and recent improvements including new monument signage, upgraded HVAC systems, new roofing, and a recently sealed and striped parking lot.

Leo Wiener
“This transaction is a testament to the ongoing efforts of the retail investment sales team, resulting in numerous top-dollar retail center closings so far this year across the Southeast,"  said Ackerman Retail President Leo Wiener. "Sean did an outstanding job, exceeding the seller’s expectations.”

About Ackerman & Co.

Headquartered in Atlanta, Ackerman & Co. is a privately held, full-service commercial real estate firm focused on providing quality investment, brokerage, management and development services in the Southeast.

 The company, founded in 1967, retains an expert team of more than 100 real estate professionals.

To date, Ackerman & Co. has developed and acquired more than 37 million square feet of office, medical, industrial, retail and mixed-use space, has nearly 8 million square feet under management and maintains an investment portfolio valued at $1 billion.

Ackerman Retail, a division of Ackerman & Co., offers a best-in-class services platform, delivering solid results for local and multi-market clients across the Southeast. Ackerman Retail has completed more than 10 million square feet of transactions valued at nearly $2 billion


Steve Webb