Marcus & Millichap Notes Healthcare Providers Look to Real Estate to Create Efficiencies and Cut Costs

  

Alan L. Pontius

 CALABASAS, CA – Exclusive research by Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, reveals that ever-increasing operational costs and potential physician shortages are forcing providers to identify and exploit opportunities to create efficiencies and maximize revenues.

Many large practices and health systems have started to look to real estate for assistance in meeting these objectives.

Bill Hughes

“From an investment perspective, health system mergers and acquisitions stand to elevate the overall credit characteristics of the nation’s medical office sector, resulting in additional high-quality acquisition opportunities, and potentially more favorable financing terms,” says Alan L. Pontius, managing director of the firm’s National Office and Industrial Properties Group (NOIPG).

 “While a shrinking tenant pool, along with ongoing pressure on reimbursements, may act as headwinds to rent growth in coming years, the lower-risk profile associated with hospital-grade tenants should counterbalance any impact on property prices and cap rates.”

Pontius also believes that healthcare industry consolidation and an approaching wave of physician retirements will contribute to further divergence in property performance and values based on asset age, as large providers overlook many aging properties due to their inflexible designs.

When it comes to financing, the medical office sector continues to be a magnet for capital. “Financing remains abundant for institutional-grade medical office buildings, such as performing on-campus assets and select top-quality off-campus properties affiliated with high-credit hospital systems,” says Bill Hughes, senior vice president and managing director of Marcus & Millichap Capital Corp.

Hughes also notes that commercial mortgage-backed securities (CMBS) originations in the medical office space increased 60% in 2012.

            Marcus & Millichap’s Research Department produces more than 800 reports annually, and is considered a leading source for the latest, authoritative industry information. A copy of the new 2013 Medical Office Research Report is attached.

  

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

Ben Johnson,

Marketing Director

(925) 953-1736

HFF marketing for sale Lincoln at River Run in suburban Chicago, IL

Lincoln at River Run Apartments
Bolingbrook, IL

CHICAGO, IL – HFF announced today that it has been selected to market the sale of Lincoln at River Run, a 374-unit, Class A, garden-style multi-housing community in Bolingbrook, Illinois.

Matthew Lawton

HFF is marketing the property for an undisclosed amount free and clear of debt on behalf of the seller, Multi-Employer Property Trust (“MEPT”) advised by Bentall Kennedy. 

Lincoln at River Run is located at 350 Whitewater Drive on the border of Bolingbrook and Naperville approximately 30 miles southwest of downtown Chicago. 

Situated on 25.14 acres with views of the DuPage River and access to nearby parks, the property is 95 percent leased and units average 945 square feet each.  Community amenities include an outdoor resort-style swimming pool, 24-hour fitness center, clubhouse and business center.

Sean Fogarty

The HFF investment sales team representing the seller is led by executive managing director Matthew Lawton and managing directors Sean Fogarty and Marty O’Connell.

MEPT is a $5.7 billion, open-end commingled real estate equity fund that invests in a diversified portfolio of institutional-quality real estate assets in 30 major metropolitan markets across the U.S.  Founded in 1982, MEPT is owned by approximately 360 multi-employer, public employee and corporate pension plans.  MEPT is recognized as a pioneer in Responsible Property Investing (RPI) and is one of the largest U.S. real estate funds that is signatory to the UN Principals for Responsible Investment (UN PRI).

Marty O'Connell

Bentall Kennedy is one of North America’s largest real estate investment advisors, providing its clients with access to one comprehensive North American real estate platform.  Bentall Kennedy serves the interests of more than 500 clients on assets of more than $30 billion across 140 million square feet of office, retail, industrial and multifamily properties.

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

krmurphy@hfflp.com

NAI Realvest Negotiates New Lease with retailer selling Licensed Disney Products at Kissimmee Shopping Center

Kissimmee Shopping Center, Kissimmee, FL

 ORLANDO, FL – NAI Realvest recently negotiated a new lease agreement for 8,983 square feet at Kissimmee Shopping Center at 2545 Old Vineland Rd. with a retailer focusing on selling licensed Disney products.

Paul Partyka

 Paul P. Partyka, managing partner at NAI Realvest, brokered the transaction representing the landlord, Herndon, Va.-based KVOS, LLC.   Partyka said the Kissimmee Shopping Center is the second Central Florida location for the tenant, Party & Gift Outlet doing business as Licensed Disney Products of Kissimmee.

 Licensed Disney Products joins national tenants Tommy Hilfiger, Nike, Converse , Dollar Tree and Bealls at the center located at 2501-2573 Old Vineland Rd.

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

Beth Payan or Larry Vershel, Larry Vershel Communications, Inc., 407-644-4142 

Celebration Golf Club launches second season of Golf ‘n Gals League, membership still open

Celebration, FL--- Celebration Golf Club near Walt Disney World launched the second season of its Golf’n Gals 9 Hole Ladies League recently with a launch party that included cocktails, hors d’oeuvres, announcements, news of exciting trunk shows, and prizes.

Carol Daniels

“We are looking forward to a successful season of good times and golf.” said Golf Sales Agent Carol Daniels

“We hosted more than 30 ladies and our first event will tee off Wednesday May 8 with a shotgun start at 5:30 p.m.,” Daniels said.

A $20 registration fee includes green fees, cart fees and prizes following the nine-hole event.

The season ends with a tournament in November to benefit the American Cancer Society.

To join the Golf’n Gals League, RSVP by phone to the Celebration Golf Shop at 407-566-4653ext 4605 or email cdaniels@celebrationgolf.com/

Trepp April 2013 US CMBS Delinquency Report: Rate Plunges; Lowest Level Sinc­e November 2010

NEW YORK, NY -- In April, the Trepp CMBS delinquency rate posted its lowest reading in more than two years.

 The 47 basis point drop in the delinquency rate was the biggest one month gain since Trepp began publishing the number in the fall of 2009.

 All major property types saw their delinquency rates fall in April. Hotel and apartment loans led the pack, each with more than 100 basis points in improvement.

The delinquency rate for US commercial real estate loans in CMBS was 9.03% in April, the lowest reading since the November 2010 rate of 8.92%.

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

Eric R. Gerard

Senior Vice President

Great Ink Communications

27 Union Square West, Suite 205

New York, NY 10001

(212) 741-2977

McCarthy Completes Design-Build Master Plan for Phased Approach to Expansion of Sharp Chula Vista Medical Center in San Diego’s South Bay

Sharp Chula Vista Medical Center 
751 Medical Center Court
 Chula Vista, CA

SAN DIEGO – Utilizing a unique design-build approach, McCarthy Building Companies, Inc., in concert with the Cuningham Group (formerly NTD Healthcare), has completed the master plan for the Sharp Chula Vista Medical Center, located at 751 Medical Center Court in Chula Vista, Calif.

Performed on behalf of Sharp HealthCare, the master plan creates a clear, realistic, constructible road map for a five-phased expansion of the hospital campus over the nearly two decades.

 The Sharp Chula Vista Medical Center acute care campus originally was developed in 1973 upon the donation of the 32-acre land parcel. 

The East Tower, which provided 139 inpatient beds, opened in 1979 and was augmented in 1989 with the Birch Patrick skilled nursing facility, which added an additional 100 beds for skilled nursing and long-term care beds. 

The campus was expanded in 1991 with the addition of the West Tower, providing an additional 104 inpatient beds and expanding the hospital’s women’s health and emergency care services to residents of the south bay region of San Diego County.

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

Bonnie Kutch

Director

619-299-1010

Kutch & Company

6434 Caminito Listo | Suite B-100 | San Diego, California 92111

"Keeping our clients in the limelight"

 www.kutchco.com

$26.6 Million Three-Property Sale Arranged by Marcus & Millichap

226-247 Wanaque Ave., Pompton Lakes, NJ

ELMWOOD PARK, NJ – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of two retail properties in Manhattan’s West Village and one mixed-use property in Pompton Lakes, N.J., The three properties commanded a total selling price of $26,650,000. They are:

• 333 Sixth Ave., New York, N.Y., a retail condominium, $16,500,000
• 192 Seventh Ave. South, New York, N.Y., a net-leased retail property, $4,100,000
• 226-247 Wanaque Ave., Pompton Lakes, N.J., four mixed-use assets, $6,050,000

Mark Gjonbalaj

In the purchase of the two Manhattan properties, Mark Gjonbalaj, a senior associate in Marcus & Millichap’s New Jersey office, represented The Jackson Group, a New York-based investor specializing in urban retail investment opportunities. Gjonbalaj also represented Florida-based YMZ Realty LLC and Tilou Realty Corporation, a local family, in the respective sales of the Sixth Avenue and Seventh Avenue assets.

            “The Jackson Group has redevelopment plans for both West Village properties,” says Gjonbalaj. 

192 Seventh Ave. South, New York, NY

“Sixth Avenue is a tremendous retail location with over 100 feet of prime retail frontage that will be repositioned with trendy retailers. Situated near the New York University campus, this location is a 24/7 retail business environment that will continue to command higher rents,” adds Gjonbalaj.

            “The 192 Seventh Ave. South property is located on a prime West Village corner, three blocks from a subway stop and across the street from the St. Vincent’s redevelopment site,” Gjonbalaj continues. 

  “The property is net-leased at a below market rent, and with 4,575 square feet of available air rights, there is potential for future redevelopment.”

333 Sixth Ave., New York, NY

Gjonbalaj also advised the buyer of 226-247 Wanaque Ave., Ocean Lake Realty LLC, a New Jersey-based investor.

 Barbara Dansker, an associate in the firm’s Manhattan office, and Michael Lombardi, a senior associate in Marcus & Millichap’s New Jersey office, represented the seller, Alrose Pompton LLC.

            “The Wanaque Avenue properties comprise a four-building mixed-use package situated in the main local business district of Pompton Lakes,” Gjonbalaj concludes.  “The properties are 100 percent leased and one tenant has 11-plus years remaining on the lease, which has a 3 percent annual rental escalation.”

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

Ben Johnson,

 Marketing Director

(925) 953-1736

Sperry Van Ness National GSA Team Inks $11 Million in Two Southwestern U.S. Property Sales

  

 PHOENIX, AZ– Just three months into the new year, the SVN National GSA Team of Mark Phillips and Tim Strange has accomplished $11 million in General Services Administration (GSA) transactions – a $6.95 million U.S. Border Patrol building sale in Deming, N.M. and the $4 million sale of a federal courthouse in Pecos, Texas.

Mark Phillips

In both deals, Phillips and Strange represented the property seller, Oklahoma-based Dominion Group, and Bruce Marshall, Managing Director of Sperry Van Ness/Datavest, Inc., represented the property buyer, UIR, a private equity group.

“Demand for GSA properties has continued to grow as investors seek out safer havens for investments in uncertain times,” said Phillips, who founded the SVN National GSA Team and is Managing Director of Phoenix-based Sperry Van Ness I MVP CRE Advisors.

Tim Strange

  “These two latest deals are great indicators that GSA demand has not stopped – that there is a fundamental strength to this type of asset that rises above market shifts.”

The 52,452-square-foot Deming Station is located at 3400 J Street in Deming, N.M, in the southwestern portion of the state and 35 miles north of the U.S. – Mexico border.

The one-story Class B property totals four buildings (administration/detention, maintenance, communication/tower and stables/kennels with air-conditioned support space) and amenities including an uninterruptible power supply, lighted helipad and state-of-the-art security.

Deming Station is occupied 24 hours a day, 365 days a year by 350 employees of the U.S. Border Patrol. It is also located within a High Intensity Drug Traffic Area, making it an essential agency in an essential geography. The facility has been fully occupied by the U.S. Border Patrol since it was built in 2000, continuing a local Border Patrol presence that dates back to 1927, when the first Deming Station was established with just two inspectors.

Totaling 41,146 square feet at 410 S. Cedar in Pecos, Texas, the two-story, Class A Pecos Division courthouse building comprises a full city block and houses the Federal Courts, U.S. Attorney’s office, Public Defender’s office, U.S. Marshall’s office and a congressional office. Interiors are customized to the requirements of the courts, including judges' chambers, courtrooms, security systems and separate elevators for judges, the public and prison uses.

“Typically, GSA investors look for a gateway city like Los Angeles, Houston or Seattle, but this buyer was fortunate to find the same characteristics in a very tertiary market,” said Phillips.

The Pecos Court Region serves nine counties totaling more than 91,000 square miles. It is located in a town that was ranked by Forbes magazine as the second fastest growing small town in the U.S. and it sits within a High Density Drug Traffic Area, making it mission critical in an essential geography.

  

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

Stacey Hershauer

focusAZ

Marketing & Public Relations

(480) 600-0195

www.focusaz.com

Tampa Electric Bought for $22 Million in Competitive Bid

  

Camille Renshaw

NEW YORK, NY  – Stan Johnson Company, the nation’s premier net lease brokerage firm, has completed the $22 million sale of the headquarters of Tampa Electric Co., the principal subsidiary of TECO Energy Inc. (NASDAQ: TE),  on behalf of an institutional partnership. 

TECO Plaza is an approximately 277,454-square-foot office property comprising of an entire city block at 702 N. Franklin St. in Downtown Tampa, FL.   Tampa Electric has supplied the area with electricity since 1899, servicing approximately 2,000 square miles of West Florida.

Camille Renshaw of Stan Johnson Company represented the seller, a partnership managed by a subsidiary of a major, multinational financial services company.   Benderson Development, one of the country’s largest privately-held real estate companies, was the buyer.  The single tenant, net lease property was a build-to-suit for TECO in 1979. 

TECO Plaza, Downtown Tampa, FL

A unique component of the transaction was the extremely competitive nature of the bid process as over twenty groups intensely sought the purchase.  The result was a sales price with a +/-5.78% cash-on-cash return to the buyer.

“Institutional sellers are very demanding in their pricing of single-tenant assets, even in a secondary market like Tampa,” said Renshaw. 

  “Every detail of the bid process had to be specially managed to create the returns our seller required, but the heated net lease market obliged us, due to very limited supply and a huge demand.”

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

 David Ebeling

 Ebeling Communications

(949) 278-7851