Marcus & Millichap Sells $56M Apartment Community in Reno, NV

RENO, NV – Marcus & Millichap Real Estate Investment Services has arranged the sale of The Montebello at Summit Ridge, a 450-unit multi-family community in Reno, Nevada.

The sales price of $56 million represented $124,444 per unit and $112 per square foot.

Stanford Jones, (middle left photo) an executive vice president and senior director of Marcus & Millichap’s National Multi Housing Group (NMHG) in Palo Alto, Kenneth Blomsterberg, a vice president investments and director of the firm’s NMHG in Sacramento, Dylan Mattole, an associate in the firm’s Reno office, and Phil Saglimbeni and Sal Saglimbeni, both associates and senior directors of the firm’s NMHG in Palo Alto, represented the seller, a real estate investment advisory company and the buyer.

“Montebello at Summit Ridge was an excellent opportunity for the investor to acquire a well-designed apartment home community in a strong location in a highly desirable submarketto acquire one of the highest- quality apartment communities in Reno and is evidence that, even in a difficult market, quality assets will still attract strong buyers,” says Jones.

Located at 5200 Summit Drive, the 499,995-square foot apartment community consists of 60 two-story buildings situated on 54.36 acres on a hilltop with unobstructed views of downtown Reno the Truckee River and the Sierra range.

Reno’s city center Downtown Reno is just minutes awaya short drive from the property, providing a quick and easy commute to key employment centers and the Reno Convention Center.

The property is within close proximity to Interstate 80, Highway 395 and the Reno/Tahoe International Airport.

“Successful execution in today’s challenging environment requires a deep understanding of the local market fundamentals and economic drivers”,” comments Phil Saglimbeni.

Built in 1997, Montebello at Summit Ridge includes one-, two- and three-bedroom units. Community amenities include a 9,000-square foot fitness center, resort-style swimming pool with spa, playground and luxury clubhouse.

Interior amenities include air conditioning, full-size washer and dryer, gas cooking, fireplaces and private patios. Select floor plans feature ceramic tile countertops and direct-access one- or two-car garage.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716

Construct Two Group honored as fastest-growing privately owned company in Central Florida

ORLANDO, FL— Construct Two Group, an African-American owned construction management company headquartered in Orlando, Fla., was honored by Orlando Business Journal as the fastest-growing privately owned company in Central Florida at a banquet held on Friday, September 19 at the J.W. Marriott at Grande Lakes, Orlando, Fla. (middle left photo)

(Top right photo, Derrick Wallace, left, chairman, Construct Two Group; and Dan DeNisco, Senior Regional Manager, Robert Half International, Orlando, the banquet's main founder.)

Construct Two Group posted a 208.9 percent increase in revenues in 2007 over 2006 figures of $8.9 million to make it to the top of the Fast-Track Five, a list highlighting companies with the highest growth rate.

The Company was also ranked 83 among the publication’s Golden 100, an annual list of the top 100 local privately owned companies based on revenue.

A plaque was presented to Construct Two Group’s Chairman Derrick Wallace to commemorate the Company’s achievement.

Construct Two Group provides construction management, design-build and program management services to public and private sector clients.

Having completed more than $500 million in projects since its founding in 1990, Construct Two Group is a leading African-American-owned construction management company in Florida.

The Company employs a professional and support staff of 31 from offices in Orlando, Tampa and Tallahassee, Fla. Please visit http://www.constructtwo.com/ for additional information.

CONTACT: Meredith Ingra, Associate/Business Manager, PR WORKS!, 14114 Chicora Crossing Blvd., Orlando, FL 32828. PH 407 384 1344. FX 407 383 0324. merei@pr-works.com

Flagler Development Co. turns to D & A Building Services with another office building cleaning contract

LONGWOOD, Fla.—D & A Building Services Inc. has secured its tenth full-service janitorial services contract in Central Florida with Flagler Development Company.

The new contract calls for D & A to provide cleaning services for 1300 SouthPark, (top right photo) a four-story, 140,000-square-foot office building located within SouthPark Center, 176-acre office/service center developed and managed by the Flagler Development Co. of Coral Gables, Fla.

Cleaning crews employed by D & A Building Services keep more than ten million square feet of office, industrial, municipal and military space clean every day in four states, Florida, Missouri, Wisconsin and Michigan.

D & A Building Services Inc. provides facility maintenance services to property managers, building owners, and local, state and Federal governments.

Founded in 1985 by Al Sarabasa, Jr., (bottom left photo) president and CEO , D & A performs full-service janitorial, exterior maintenance, landscape maintenance, waterproofing, construction clean-up and communications services.

The veteran-owned company is an Hispanic-Owned Business Enterprise. The Company has offices in Longwood, Fla., Jacksonville, Fla., Tampa, Fla., Kansas City, Mo., Madison, Wis., Plano, Texas, and Detroit, Mich. For additional information, please visit http://www.dabuildingservices.com/.

Contact: Elaine Ingra, PR WORKS!, PH: 407 384-1344,
elainei@pr-works.com, www.pr-works.com

Mark One Capital Closes Loans Totaling $8M in New Jersey and Oregon

GLENDALE, ARIZ., RETAIL CENTER GETS $5.5M LOAN

GLENDALE, AZ– Mark One Capital has arranged a $5.5 million loan to refinance Brittany Square (top right photo) located at 6666 W. Peoria Ave. in Glendale.

Geoffrey Harris, a senior director in the firm’s Phoenix office, and Farhan Kabani, a senior associate in the firm’s Dallas office, arranged the financing package for Brittany Square.

“Many investors are assessing the current state of the market and choosing to optimize their equity by refinancing as a hedge against short- to medium-term volatility in cap rates,” says Harris. “A number of our clients view such transactions as an opportunity to access capital for attractive future buying opportunities.”

Financing for the 57,176-square foot Brittany Square was provided by a commercial bank at a fixed rate of 6.45 percent. Terms of the loan were for 10-years with a 30-year amortization schedule. The loan-to-value was 63 percent.

“Many of our clients are becoming aware of just how drastically the commercial lending market has shifted,” says Harris. “In today’s market, it is essential to work with a financial intermediary that has a proven track record and comprehends the intricacies of a given deal.”

Mark One Capital is a nationwide full-service commercial real estate finance company specializing in multi-family, retail, office, industrial, mixed-use, hospitality, self-storage, manufactured home community and development properties.

Mark One Capital has a long-term, established relationship with one of the nation’s largest investment real estate services company. Our representatives work closely with this national real estate investment firm which has been in operation since 1971 and has sourced more than $20.7 billion in investment sales in 2007.

MARK ONE CAPITAL ARRANGES $2.58M LOAN FOR PORTLAND, OR APARTMENT COMPLEX

PORTLAND, OR – Mark One Capital has arranged a $2.58 million loan for the acquisition of Brittany Place Apartments (bottom right photo), a 45-unit apartment complex, located at 2916 SE 125th Ave. in Portland.

Neal Churney, a director in the Phoenix office of Mark One Capital, arranged the financing package for Brittany Place Apartments.

“Mark One Capital secured a Fannie Mae loan after the loan request was initially declined by a commercial bank,” states Churney. “After much due diligence throughout the loan process, we were able to complete the transaction in a timely manner to the client’s satisfaction.”

Financing for Brittany Place Apartments was provided by an agency lender at a fixed rate of 5.74 percent. Terms of the loan were for five years with a 30-year amortization schedule. The loan-to-value was 70 percent.

Press Contact: Kathy Molitor, Mark One Capital, (925) 953-1704. http://www.markonecapital.com/

Marcus & Millichap Sells 99-Room La Quinta Inn & Suites in Moab, UT

MOAB, UT– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of La Quinta Inn & Suites, (top right photo) a 99-room hotel in Moab.

The property was listed at a price of $7 million and sold at an undisclosed price.

Christian Child and Mike Francis, both senior associates in the Salt Lake City office of Marcus & Millichap, represented the seller.

“La Quinta Inn & Suites was an excellent opportunity for the buyer to acquire a well-maintained mid-scale hotel that has seen increases in revenue every year since 2005,” says Child.

“The hotel is situated in an area that is seeing increased tourism,” adds Francis. “Within a 100-mile radius of Moab are four national parks, four state parks, numerous national monuments, and historic sites.”
Located at 815 South Main St., the hotel is situated on 2.44 acres, just off Highway 191 in the center of Moab.

The hotel has three floors, a continental breakfast area, business center, meeting room, exercise room, guest laundry, vending machines and a swimming pool.

Press Contact: Stacey Corso, Communications, Department, (925) 953-1716

HFF arranges financings totaling $21.38M for three New Jersey multifamily communities

FLORHAM PARK, NJ – The New Jersey office of HFF (Holliday Fenoglio Fowler, L.P.) has arranged first mortgage financings totaling $21.38 million for three central New Jersey multifamily communities.

Working exclusively on behalf of The PRC Group, HFF senior managing director Jon Mikula (top right photo) and managing director Jim Cadranell (top left photo) placed the three ten-year, fixed-rate loans with The Provident Bank (http://www.providentbanknj.com/).

Loan proceeds will pay off outstanding debt. The PRC Group is a developer and property manager with more than 48 years of experience and a portfolio of 2,200 units in the Mid-Atlantic region.

The properties are:

Clifton Arms Apartments, (middle left photo) 220-240 Ninth Street, 64 units, $3.425 million
Lakewood, NJ

Farmingdale Gardens, (middle left photo) 1 West Main Street, 176 units, $11.35 million, Farmingdale, NJ

Sunset Heights. (bottom right photo) 1130 Sunset Road, 120 units, $6.6 million, Burlington, NJ.

“All three of these multifamily communities are well-located assets in markets with strong apartment demand and fundamentals,” said Mikula.

HFF (NYSE: HF) operates out of 18 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry.

HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, note sales and note sale advisory services and commercial loan servicing. http://www.hfflp.com/.

CONTACTS:

Jon Mikula, HFF Senior Managing Director, 973 549 2000, jmikula@hfflp.com

James A. Cadranell, HFF Managing Director, 973 549 2000, jcadranell@hfflp.com

Myra F. Moren, HFF Director, 713 852 3500, mmoren@hfflp.com

What does the latest job data mean to commercial real estate industry?

SANTA ANA, CA--Bob Bach, (top right photo) Senior Vice President and Chief Economist,Grubb & Ellis Co., notes in his periodic market report:

The labor market shed a seasonally adjusted 533,000 net payroll jobs in November, the highest monthly loss since December, 1974 and well above the consensus among economists for a loss of 300,000 to 350,000.

Additionally, September and October losses were revised downward by a combined 199,000.

The education and health services sector added 52,000 in November while government added 7,000 and natural resources and mining added 4,000. All other sectors lost jobs, with the largest loss coming in the professional and business services sector, where employers eliminated 136,000 positions including 78,000 in temporary help services.

The labor market began shrinking in January, but the losses through August were shallow compared with prior recessions, totaling 655,000 during that eight-month period.

Since September, however, losses have accelerated sharply, totaling 1.2 million during that three-month period, putting year-to-date losses at 1.9 million.

The acceleration in job losses since September is worrisome. The recession has entered its 12th month, already longer than the prior two recessions, but it appears to be growing in intensity. The prior two recessions in 1990-91 and 2001 both lasted for eight months.

The impact on commercial real estate is troubling. Job growth is the most important leading indicator of office space absorption, and it supports leasing activity for apartments, shopping centers and, to a lesser extent, industrial properties.

The recent acceleration in job losses capped by the massive loss in November indicates that leasing market fundamentals are poised to soften further. It is very likely that job losses will continue through most of 2009, meaning that tenant demand for commercial real estate, which lags the labor market, may not firm up until 2010.

For more information or to speak with Bob Bach, please contact Janice McDill, Vice President, Public & Investor Relations, at 312.698.6707 or via email at mailto:janice.mcdill@grubb-ellis.com

New Unemployment Rate of 6.7% Worse Than Expected

WASHINGTON, DC—The U.S. Bureau of Labor Statistics reports the country’s unemployment rate in November jumped to 6.7% from 6.5% in October.

Thousands of jobs in the commercial, residential and leisure real estate sectors, as well as the financial, retail and manufacturing industries have been eliminated.

More job cuts are expected to be reported when the December data is released Jan. 9, says Labor Secretary Elaine L. Chao. (top right photo)

“Today’s report underscores the urgent need to stabilize financial markets, ensure access to credit and create a positive environment for job creation,” Chao says.

“We encourage workers looking for help to call 1-877-USA-JOBS and tap the many resources available at the one-stop career centers.” The information may also be obtained through the Department of Labor’s web site at http://www.dol.gov/.

The Labor Department reports 10.3 million Americans are out of work. Even worse news is found in the department’s statistics which show about 1.9 million persons were not counted in the November jobless survey. The 1.9 million figure does not include seasonally-adjusted workers’ totals.

“They were not counted as unemployed because they had not searched for work in the four weeks preceding the survey,” the department says.

Among the marginally attached unemployed in the November household survey were 608,000 discouraged workers, up by 259,000 from a year earlier.

Employment in the construction industry fell by 82,000 in November. Since peaking in September 2006, construction employment has decreased by 780,000.

Specialty trade contractors lost 50,000 jobs in November, with both residential and non-residential components contributing to the decline.

Employment in the leisure and hospitality industries declined by 76,000 in November, with most of the decline, 54,000, occurring in accommodation and food services sectors. Since peaking in April 2008, accommodation and food services has lost 150,000 jobs.

Retail industry job losses in November fell by 91,000. Job losses continued in automobile dealerships by 24,000. In several other retail industries, seasonal hiring for the holidays fell short of normal in November, the Labor Department reports.

(Sheraton Safari Lake Buena Vista, FL, middle left photo)

After seasonal adjustment, employment declined in clothing and accessories stores by 18,000; sporting goods, hobby, book and music stores, 11,000; and furniture and home furnishing stores, 10,000. Wholesale trade employment was down by 25,000 over the month, with most of the decrease among durable goods wholesalers.

Meanwhile, U.S.Commerce Department Secretary Carlos M. Gutierrez (bottom left photo) reports the latest data on factory orders show the orders dropped 5.1% in October, the largest decrease since an 8.5% fall in July 2000.

The drop in orders was larger than the 4% drop that economists had predicted. Economists as a group see manufacturing orders continuing to decrease in the coming months as the recession deepens across all commercial avenues.

“Today’s employment report reflects the difficulties in our economy,” says Gutierrez. “It is devastating when Americans lose their jobs, and many are worried about their future job security.

“The administration is focused on implementing the financial rescue package to stabilize our financial system and preserve jobs in our country.”

Gutierrez says he is confident that “as the financial sector strengthens, it will become easier for businesses to receive credit that will allow them to meet their payroll needs and create jobs.”

Delinquencies Increase, Foreclosure Starts Flat in Latest MBA National Delinquency Survey

WASHINGTON, D.C— The delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 6.99 percent of all loans outstanding at the end of the third quarter of 2008, up 58 basis points from the second quarter of 2008, and up 140 basis points from one year ago on a seasonally adjusted basis, according to the Mortgage Bankers Association's (MBA) National Delinquency Survey.

The seasonally adjusted total delinquency rate continues to be the highest recorded in the MBA survey.

Jay Brinkmann, (top right photo) MBA's Chief Economist and Senior Vice President for Research and Economics said, "An initial look at the number of foreclosure starts would seem to indicate at least a leveling off of foreclosures.

" These numbers, however, are being influenced by several factors including various moratoria on foreclosure filings and by mortgage companies holding loans in the 90+ day bucket during the modification and workout process.

"Evidence of this can be seen in the large increase in loans 90 days or more past due but not yet in foreclosure. This rate jumped by 45 basis points, the highest increase in this category ever recorded in the MBA survey and far above the average 4 basis point jump we would expect to see.

" While 20 states showed declines in the rate of foreclosure starts between the second and third quarters, every state showed an increase in the 90 days or more delinquent category with the exception of Alaska and all of the increases were greater than what we would expect due to normal seasonal factors."

"As for what is driving the national numbers, it is still a case of product and location. Prime and subprime ARMs continue to have the highest share of foreclosures and California and Florida have about 54 percent and 41 percent of the prime and subprime ARM foreclosure starts respectively.

" Until those two markets turn around, they will continue to drive the national numbers," continued Brinkmann.

"While much of the mortgage problem in some states continues to be overbuilding, poor underwriting and incorrect credit pricing, fundamental economic factors are becoming more important.

"The 30-day delinquency rate is still lower than it was in the 2001 recession, but job losses are mounting. We have not gone into past recessions with the housing market as weak as it is now so it is likely that a much higher percentage of delinquencies caused by job losses will go to foreclosure than we have seen in the past.

"Until recently, it was job and population losses that were the problems in states like Michigan and Ohio, whereas the problems in California and Florida were a combination of too many houses, speculation and weak underwriting. Economic fundamentals are now deteriorating in California and Florida.

"Over the past year, Florida led the nation in job losses at 156,200, with California losing 101,300, as compared with Michigan job losses at 71,200 and Ohio at 17,300.

"In the last quarter we saw about 575,000 foreclosure actions started, compared with an estimated 580,000 in the second quarter and 535,000 in the first quarter.

"At this rate we are looking at finishing 2008 at about 2.2 million foreclosure actions started.

"Absent a recession, the 2009 number would likely have fallen by several hundred thousand but the effects of job losses and general economic deterioration make the 2009 outlook worse, particularly if mortgage problems become more widespread," Brinkmann said.

CONTACT: Carolyn Kemp, (202) 557-2727, ckemp@mortgagebankers.org

S&P: Ratings On Five Mortgage Insurers Put On Watch Negative; Multi-Notch Downgrades Possible

NEW YORK, NY--Standard & Poor's Ratings Services has placed its ratings on five major U.S. mortgage insurers and their core and dependent foreign subsidiaries on CreditWatch with negative implications.

These groups are Old Republic, PMI, MGIC, Radian, and Genworth.

Standard & Poor's also placed its ratings on Radian Asset Assurance Inc. on CreditWatch. Standard & Poor's is still evaluating the impact of this CreditWatch on obligations Radian Asset guarantees.

The ratings on some securities could be placed on CreditWatch negative, but we will not lower any of them.

"The CreditWatch placements reflect greater deterioration in the employment and housing markets than we had anticipated when we last conducted an extensive review of the mortgage insurance sector in late August," explained Standard & Poor's credit analyst James Brender.

"We also have concerns that mortgage insurers' poor operating results--coupled with the disruptions in the capital markets--will prevent them from obtaining additional capital needed to refinance debt maturities, remain compliant with covenants, and maintain appropriate capitalization to remain going concerns."

Media Contact: Jeff Sexton, New York, (1) 212-438-3448, jeff_sexton@standardandpoors.com

Analyst Contacts:
James Brender, New York (1) 212-438-3128
Rodney A Clark, FSA, New York (1) 212-438-7245