Faris Lee Investments Tapped to Market Landmark Asset in Downtown San Jose, CA

 

Jeff Conover

IRVINE, CA – Faris Lee Investments, the nation’s largest retail-specialized investment advisory firm, has been tapped by a private Chicago-based owner to market for sale a landmark surface grade parking lot property located in the core of Downtown San Jose, California which allows for a substantial high density urban mixed-use redevelopment.

The property is situated on 1.25 acres in the heart of downtown business, shopping and entertainment districts, and sits directly in front of two rail stations between E. Santa Clara St. and E. San Fernando St. at 35 S. 2nd St.

The property currently produces an annual net income of approximately $872,000 and is zoned within the Downtown Primary Commercial Historic District, which is ideal for a high-rise mixed-use development allowing up to a 15 FAR (Floor Area Ratio).

Christopher
Tramontano

Conservative estimates of Highest & Best Use include a 340-unit apartment project with 40,000 square feet of retail.

Jeff Conover, Christopher Tramontano, and Nicholas D’Argenzio of Faris Lee are marketing the lot on behalf of the seller who acquired the property in 2009. The property does not have an asking price and is listed on a “Best Offer” basis.

“Immediately after hitting the market we garnered a significant amount of interest from the likes of mixed-use, multifamily and student housing developers, as well national parking owner/operators seeking to capitalize on the improving San Jose market. The area is now experiencing development and investment activity at levels achieved prior to the economic downturn,” said Tramontano.

Nick D'Argenzio

The property is in a prime Downtown location just one-quarter mile from San Jose State University, less than one-mile from Interstate 280 and within one-mile from HP Pavilion. It is also adjacent to the VTA Light Rail system with stops on both sides of the property.

                “A strong housing market – indeed the strongest rental market in the nation over the last two years – combined with recent high-rise development incentives has spurred a flurry of activity in Downtown San Jose.  This year, we expect to see two, 20+ story residential towers break ground, along with additional mid-rise development,” said Sam Liccardo, District 3 Councilmember, City of San Jose.

“This ‘Fountain Alley’ site, as it is known, offers a unique, landmark location in the historic district of our Downtown core that can become a crown jewel mixed-use development that continues our Downtown’s rapid revitalization.”           

San Jose, also known as the Capital of the Silicon Valley, is one of the top apartment rental markets in the nation with a limited supply and a growing employment base as a result of the thriving information and technology sector.

 Recent hiring at Apple, Cisco Systems, Google and other tech firms has boosted the region’s employment by a remarkable 6.1 percent in 2012, far surpassing statewide and national gains.

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

Darcie Giacchetto

Spaulding Thompson & Associates

949.278.6224

www.farislee.com

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Atlanta Property Group Acquires Northcreek Office Park in Buckhead, GA

Northcreek Office Park, Buckhead, GA

ATLANTA, GA (April 4, 2013) – Atlanta Property Group, a real estate investment firm, said today it has closed on its acquisition of Northcreek Office Park, located on Northside Parkway near the interchange of West Paces Ferry Road and I-75.

The Buckhead office project comprises four, eight-story office buildings totaling more than 536,000 rentable square feet, and is currently 91 percent leased. APG acquired the asset for an undisclosed price.

Northcreek is an attractive investment because of its campus environment that is rare among Buckhead office buildings, location adjacent to residential neighborhoods that are home to executives and decision makers, and unparalleled interstate access

“Northcreek is an exceptional asset,” said Court Thomas, Partner at Atlanta Property Group. “A majority of the tenants are local companies, and several are owned by principals with whom we have existing relationships.”

Situated at 3715 Northside Parkway, Northcreek marks APG’s seventh acquisition since mid-2010. The firm saw tremendous leasing velocity in 2012, adding nearly 15 percentage points of net occupancy to its recently acquired portfolio.

Jonathan Rodbell

“Our recent leasing velocity affirms our position as the go-to provider of well-located, quality office space for value-conscious small and mid-size tenants,” said Jonathan Rodbell, Partner at Atlanta Property Group. “We intend to maximize the property’s value as the economy continues to improve.”

Northcreek offers easy access to 1-75 and I-285 and is proximate to Vinings, Midtown and Buckhead’s top independent schools.

Stewart Calhoun and David Meline of Cushman & Wakefield represented the seller in the transaction.

Austin Chase

Atlanta Property Group’s latest acquisition brings its portfolio to 2.7 million square feet in 15 properties. “We continue to seek future investment opportunities across the metro Atlanta area,” Thomas said.

Austin Chase, who APG recently hired as Director-Leasing, and Josh Baine, will handle leasing for Northcreek.

  

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

Tony Wilbert,

thewilbertgroup.com

HFF arranges construction financing and joint venture equity for a $44 million student housing development at the University of Minnesota

Metro Park East at University of Minnesota
Minneapolis, MN

DALLAS, TX – HFF announced today that it has arranged construction financing along with joint venture equity for the development of Metro Park East, a 194-unit, 551-bed, campus-adjacent student housing project at the University of Minnesota – Twin Cities in Minneapolis, Minnesota. 

HFF’s Adam Herrin worked on behalf of the developer, Fountain Residential Partners, LLC, to secure the $29.5 million construction loan through American Bank of Texas.  In addition, HFF assisted in securing $11.56 million in joint venture equity with an institutional capital partner.

Adam F. Herrin

Metro Park East is located at 2635 Southeast 4th Street in the Stadium Village neighborhood directly adjacent to the East Bank campus of the university. 

Due for completion for fall semester 2014 occupancy, the project will be built to LEED Silver standards and will include one-, two-, three- and four-bedroom apartment homes. 

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

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 | www.hfflp.com

krmurphy@hfflp.com

HFF closes $22.5 million sale of Copley Business Center in San Diego, CA

Copley Business Center, San Diego, CA

IRVINE, CA – HFF announced it has closed the sale of Copley Business Center, a 102,000-square-foot office campus in San Diego, California.

HFF represented both the seller, a private tenant-in-common entity sponsored by Thompson National Properties (“TNP”), and the buyer, Highbrook Investment Management, LP (“HighBrook”).

Nick Psyllos

 HighBrook purchased the property in an off-market transaction for $22.5 million, which included the assumption of an existing CMBS loan.

Copley Business Center is a high-image corporate headquarters/office campus consisting of three buildings that were completed in 1997. 

HFF’s investment sales team representing the parties was led by associate director CJ Osbrink and senior managing director Nick Psyllos.

CJ Osbrink

The property is centrally located in the northwest portion of Kearny Mesa and provides convenient regional access via Interstates 5, 15 and 805 and Highways 162 and 52. 

The property was 87 percent leased at the time of acquisition and serves as the corporate headquarters of Reva Medical, Inc. 

Other major tenants include XO Communications, which uses the property to house one of its highly-improved data center colocation facilities.  During its due diligence period, HighBrook successfully secured a 12-year lease renewal with XO Communications, which further enhanced the stability of the property.      

  

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

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 | www.hfflp.com

krmurphy@hfflp.com

HFF closes sale of HSBC Building in Miami Beach, FL

301 Arthur Godfrey Road, Miami Beach, FL

MIAMI, FL –HFF announced it has closed the sale of 301 Arthur Godfrey Road, an office building anchored by HSBC Bank in Miami Beach, Florida. 

HFF marketed the property on behalf of the seller, Cabi 301 Commercial, LLLP.  A private investment firm purchased the property for $15.125 million free and clear of existing debt.

301 Arthur Godfrey Road is located at the intersection of Pine Tree Drive along Miami Beach’s “Bankers’ Row”.  The property is 100 percent leased to a diverse mixture of tenants including HSBC Bank.  

Hermen Rodriguez

The 1.07-acre site is comprised of the six-story office building and a parking lot, which provides future development potential.

The HFF team representing the seller was led by senior managing director Hermen Rodriguez and director Ike Ojala and included executive managing director Manuel de Zárraga and senior real estate analyst Jorge Portela. 

“This offering attracted broad domestic and international investor interest.  It confirms that buyers globally are seeking high-quality assets in the Miami market,” said Rodriguez. 

Ike Ojala

“Investors found the property’s highly visible gateway location, at the eastern entrance of the Arthur Godfrey Road retail corridor, often referred to as Bankers’ Row, as well as the long-term HSBC Bank lease and additional development potential especially appealing,” added Ojala.

HFF’s investment sales team closed more than $4.9 billion in office building sales nationally in 2012.  HFF closed more than $400 million in office transactions across all capital markets platforms in the state of Florida during 2012.

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

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 | www.hfflp.com

krmurphy@hfflp.com

HFF arranges $3.6 million refinancing for manufactured home community in Rialto, CA

Rancho Rialto Apartments, Rialto, CA

SAN DIEGO, CA – HFF announced it has arranged a $3.6 million refinancing for Rancho Rialto, an 84-unit manufactured home community in Rialto, California.

                Working exclusively on behalf of a private investor, HFF secured a $3.6 million, 10-year, fixed-rate loan with GE Real Estate.

                Rancho Rialto is located at 1166 South Riverside Avenue near the intersection of West San Bernadino Avenue about 50 miles east of Los Angeles.  The all-ages community is 100 percent occupied.

Zach Koucos

Community amenities include extensive landscaping, a clubhouse, swimming pool, hot tub, laundry, shuffleboard and carports for all homes in the community.   

                The HFF team representing the borrower was led by director Zach Koucos.

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

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 | www.hfflp.com

krmurphy@hfflp.com

HFF marketing for sale Plaza 360 in Oakland, CA

Plaza 360, Oakland, CA

SAN FRANCISCO, CA – HFF announced today that it has been selected to market the sale of Plaza 360, a 114,141-square-foot office building in Oakland, California.

HFF is marketing the property on behalf of the seller, a joint venture between ASB Capital Management, Inc. and Pacific Real Estate Partners, for an undisclosed amount free and clear of debt.

Steve Golubchik

The building is located at 360 22nd Street at the intersection of Webster Street in Oakland’s Uptown District within walking distance of a variety of restaurants, retailers and new multi-housing developments as well as several transportation options including the BART commuter rail, AC Transit and Interstates 980, 880, and 580. 

Extensively renovated in 2008, the LEED-EB certified creative office space is 80 percent leased. 

The HFF investment sales team representing the seller is led by managing director Steven Golubchik, associate director Mark Damiani and associate John Simerlein.

“Plaza 360 presents investors with a unique opportunity to acquire a high-quality, premier office building in a thriving, transit-oriented location catering to both technology and traditional firms,” said Golubchik. 

 “The property provides potential investors the option to increase cash flow by leasing up vacant space. 

 In addition, with approximately 55,000 square feet of leases expiring during the next three years, the asset presents the opportunity to increase rental rates upon rollover as market rental rates continue to rise in the Uptown District,” added Golubchik.

   

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

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 | www.hfflp.com

krmurphy@hfflp.com

HFF closes sale/leaseback transaction involving four A&P grocery store sites in New Jersey and New York

FLORHAM PARK, NJ – HFF announced it has closed a sale/leaseback transaction involving four free-standing grocery store sites totaling 120,335 square feet in greater New York and northern New Jersey.

                HFF marketed the properties as part of a nine-property portfolio owned by The Great Atlantic & Pacific Tea Company and its affiliates.  

Jose Cruz

A private investor purchased the four properties for $25.8 million free and clear of existing debt, and simultaneously leased the properties back to an A&P entity.  A&P continues to operate grocery stores at each of the sites.

                The portfolio is comprised of 895 Paulison Avenue in Clifton, New Jersey; 49 Old Highway 22 in Clinton, New Jersey; 1886 Pleasantville Road in Briarcliff Manor, New York; and 410 West 207th Street in New York, New York. 

Andrew Scandalios

 The HFF investment sales team representing the seller was led by senior managing directors Jose Cruz and Andrew Scandalios, managing directors Kevin O’Hearn and Jeffrey Julien as well as associate Marc Duval.

Kevin O'Hearn

 “The properties acquired in this portfolio are located in prime infill locations with compelling demographics and high average daily traffic counts,” said Cruz.  “Additionally, each of the properties has long established market positions and are well known within the local submarkets.”

Founded in 1859, A&P is one of the nation's first supermarket chains. The company operates more than 300 stores in six states under the following banners: A&P, Best Cellars, Food Basics, The Food Emporium, Pathmark, Superfresh and Waldbaum's.

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

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 | www.hfflp.com

krmurphy@hfflp.com

Marcus & Millichap Sells Former Carl’s Furniture’s 85,000-SF Showroom in Pompano Beach, FL for $2.525 Million

  

Former Carl's Furniture Showroom
2201 West Atlantic Boulevard
Pompano Beach, FL

 POMPANO BEACH, FL – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of an 85,000-square foot showroom currently tenanted by Carl’s Furniture and located in Pompano Beach, FL.

The asset commanded a sales price of $2,525,000.

Douglas K. Mandel, Vice President Investments in Marcus & Millichap’s Ft. Lauderdale office, exclusively marketed the property for sale on behalf of the seller, a partnership from Coconut Creek, FL.  The buyer, a limited liability company from Boca Raton, was also represented by Mandel. 

Douglas K. Mandel

Located at 2201 West Atlantic Boulevard in Pompano Beach, the property has irreplaceable frontage and visibility.

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

Gregory Matus

Regional Manager / Vice President,

Fort Lauderdale, FL

(954) 245-3400

Carter Adds Charles Bonds As Vice President of Development

 .  

Charles Bonds

 ATLANTA, GA– Carter, one of the country’s leading real estate investment, development and advisory firms, has hired Charles Bonds as vice president of development. In his new role, Charles will provide equity development project management, with an emphasis on design and construction.

Charles will work on the $38 million Highland Square project, a 753-bed off-campus student housing development at the University of Mississippi, as well as several new equity development projects scheduled to start in 2013. He will focus on target markets for Carter, including Michigan, Texas and Atlanta.

“Throughout his 18-year career, Charles has worked in a wide variety of commercial real estate sectors, and has seen the business from both the construction and the development side,” said Conor McNally, chief development office for Carter.

 “His strong background in complex multifamily, retail, office and corporate projects, paired with his deep knowledge of both development and construction, make him a great addition to our team.”

Conor McNally

Charles joined Carter from C.D. Moody Construction Co. where he was a project manager. He also previously worked at Novare Group as a developer and preconstruction manager.

 His portfolio includes more than 2,800 multifamily units, retail projects totaling more than 465,000 square feet, office projects totaling more than 350,000 square feet, three hotels totaling 343 keys and nine restaurants.

Charles is a Georgia Institute of Technology graduate, where he earned his bachelor of science in building construction. He also has a master of science in real estate from Georgia State University.

  

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

Tony Wilbert

The Wilbert Group

404-888-3091

twilbert@thewilbertgroup.com

http://www.carterusa.com

Marcus & Millichap Sells106-Unit Mandalay Apartments in Fort Lauderdale, FL for $5.2 Million

  

Mandalay Apartments, Fort Lauderdale, FL

 FORT LAUDERDALE, FL – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of Mandalay Apartments, a 106-unit apartment property located in Fort Lauderdale, FL. The asset commanded a sales price of $5,200,000.

Senior Associates Derek R. Gibbs and Daniel J. Cunningham and Vice President Investments Tal I. Frydman in Marcus & Millichap’s Ft. Lauderdale office, had the exclusive listing to market the property on behalf of the seller, a private investor from Miami.

Derek R. Gibbs

The buyer, a limited liability company from North Lauderdale, was secured and represented by Gibbs, Cunningham and Frydman. 

Mandalay Apartments consists of 13 two-story buildings comprised of 66 one-bedroom/one-bathroom units, 28 two-bedroom/two-bathroom units and 12 studios.  The buildings were built in 1969 and sit on 3.81 acre lot.

The property is situated on Davie Boulevard near I-95 and I-595 and minutes from Downtown Fort Lauderdale.  Mandalay Apartments is located at 2115 Davie Boulevard.

  

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

Gregory Matus

Regional Manager / Vice President

 Ft. Lauderdale, FL

(954) 245-3400

MBA Releases Commercial/Multifamily Quarterly Data Book for Q4 2012

                                                              

 WASHINGTON, DC -- The report includes a summary of major trends and detailed charts and tables that provide current and historical information on the economy and commercial/multifamily real estate markets. 

Among the findings covered in the fourth quarter Data Book:

 The U.S. economy, as measured by the real gross domestic product, grew by 0.4 percent during the quarter.

Office vacancy rates fell from 17.2 percent in the third quarter to 17.1 in the fourth (down from a cycle high of 17.6 percent). 

Retail vacancies dropped from 10.8 percent to 10.7 percent (down from a cycle high of 11.1 percent). 

The multifamily vacancy rate fell from 4.7 percent in the third quarter to 4.5 percent in the fourth (down from a cycle high 8.0 percent).

Commercial and multifamily mortgage originations were 49 percent higher than during the third quarter of 2012 and 49 percent higher than during the fourth quarter of 2011. 

Commercial and multifamily mortgage debt outstanding increased by $21.8 billion, or 0.9 percent, in the fourth quarter of 2012, as all four major investor groups increased their holdings. 

The fourth quarter saw the largest increase in commercial and multifamily mortgage debt outstanding since 2008. Bank-held commercial mortgages increased by the largest amount since 2008.

The balance of loans held in CMBS rose by the most since 2007 and the balances of loans held by life companies and held or guaranteed by Fannie Mae, Freddie Mac and FHA continued their multi-year increases.

Delinquency rates continued to decline for commercial and multifamily mortgage loans in the fourth quarter of 2012.  

  

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

Matt Robinson

 (202) 557-2727

Peachtree Hotel Group Adds Six Hotels to Portfolio during First Quarter

     

Courtyard by Marriott
 Jacksonville I-295/East Beltway
Jacksonville, FL

ATLANTA, GA—Peachtree Hotel Group, one of the nation’s fastest growing hotel acquisition, management, development and ownership groups, today announced that it acquired/invested in six hotels in the southeastern United States during the 2013 first quarter.

 At this pace, the company is well ahead of its previously announced goal of adding15 hotels to its portfolio during the coming year.

                “Our approach to hotel investment begins with being flexible,” said Greg Friedman, Peachtree CEO.  “Our growth strategy encompasses 100 percent acquisitions, participating as a majority or minority owner, acquiring first mortgage hotel loans and third-party management. 

Homewood Suites by Hilton
Durham-Chapel Hill/I-40
Durham, NC

Jatin Desai, chief investment officer, noted that the company’s diversified acquisition strategy of both real estate and note acquisitions allows it to surface transactions very early in the process which yields more opportunities.

“During the first quarter, we looked at more than 100 transactions, including individual assets and portfolios, but selected only six where we thought we could add value at appropriate risk-adjusted returns,” said Desai. 

 “While all but one of these transactions were equity-related, acquiring hotel loans remains a high priority for us.  We want to work with owners and operators who can benefit from restructuring of existing loans, cash infusions or providing other creative financing alternatives.” 

Greg Friedman

“Each of these assets is a great fit and complements our growing portfolio of 25 select service and extended stay hotels. The properties’ geographic locations and dynamics match up well with our strategy of owning and managing hotels in primary and secondary markets,” said Mitul Patel, chief operating officer.

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

Lauralee Dobbins,

media

(703) 435-6293

Lauralee@dalygray.com