Done Deals: May 28, 2013

Tuesday, May 28, 2013

HFF secures $23 million construction/permanent financing for Cambridge, MA multi-housing project

The three-building Wyeth development rendering, Cambridge, MA

BOSTON, MA – HFF announced today that it has secured $23 million in financing for The Wyeth, a three-building, 63-unit multi-housing development in Cambridge, Massachusetts.

Greg Labine

Working exclusively on behalf of Broder Properties, HFF placed the 15-year, fixed-rate financing with Eastern Bank. The loan will fund construction of the property and convert to a permanent loan thereafter.

The Wyeth consists of 45 Yerxa Road, a 19-unit property renovated in 2008, and 120 and 124 Rindge Avenue, partially completed multi-housing buildings with 28 and 16 units respectively.

Broder bought the properties out of foreclosure and is renovating 120 and 124 Rindge to LEED Platinum standards.

The properties are located between Porter Square and the Fresh Pond/Alewife neighborhood of Cambridge close to Davis Square, Interstate 93 and the Massachusetts Turnpike as well as MBTA stations at Porter Square and Alewife providing access into downtown Boston. The 2.27-acre site also includes 97 surface parking spaces.

The HFF team representing Broder Properties was led by director Greg LaBine.

“Broder intends to hold these properties long term as a core portion of their growing portfolio,” said LaBine. “Eastern Bank provided Broder with construction funds to complete the renovations while allowing Broder to lock in long-term rates in the current attractive interest rate environment.”

Broder Properties is a privately-funded real estate partnership based in Boston’s Back Bay.

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

krmurphy@hfflp.com

www.twitter.com/hff

www.hfflp.com

Marcus & Millichap Reports Retailers Gradually Stepping into the Healthcare Industry

WALNUT CREEK, CA -- Retailers that typically occupy net-leased space are reacting to changes in consumer spending patterns and attempting to diversify to capture higher returns on existing footprints.

Fast-food restaurants are luring health-conscious individuals into establishments by revamping their menus.

Chains with at least 20 locations are undergoing preparations to list calories on their menus upon the full implementation of the Affordable Care Act (ACA) in 2014.

McDonald’s and Wendy’s are leading the charge in making new offerings healthier to broaden their customer bases.

The ACA will also impact drugstores due to an anticipated increase in the number of prescriptions. Despite the uptick in demand, expansion plans by major drugstores are waning as the number of desirable locations fades.

The resurgent national housing market should reverse this trend beginning in 2014 as additional suburban corners become available.

Grocers, Target and Wal-Mart are also aiming to capture a slice of the government and corporate-sponsored healthcare dollars. Several of these chains are offering clinical services in addition to pharmacies, which should boost revenues without a new major square-footage commitment.

For a complete copy of the company’s report, please contact

Ben Johnson

Marketing Director

Marcus & Millichap

2999 Oak Road

Suite 210

Walnut Creek, CA 94597

(925) 953-1700 ext. 1736

(925) 953-1710 fax

(925) 270-9079 cell

ben.johnson@marcusmillichap.com

HFF arranges $8.4 million financing for showroom/flex property in Scottsdale’s Art District

Scottsdale Design District 2708-2732 N. 68th Street

Scottsdale, AZ

LOS ANGELES, CA – HFF announced today that it has arranged $8.4 million in financing for Scottsdale Design District, a 109,652-square-foot showroom/flex property in Scottsdale, Arizona.

Todd Sugimoto

HFF worked on behalf of the borrower, Wilshire Capital Partners, LLC, to secure the five-year, 3.86 percent, fixed-rate loan through CIBC World Markets. Loan proceeds were used to acquire the property from a joint venture between Andell, Inc. and Fenway Properties.

The Scottsdale Design District consists of seven buildings that were most recently renovated in 2008, and are 88.1 percent leased to a tenant base catering to interior designers, architects, trade professionals and their clients. The two largest tenants, which are under long-term leases, are John Brooks, Inc. and Dean-Warren.

Situated on 9.24 acres, the property is located at 2708-2732 N. 68th Street in the southern portion of Scottsdale’s Arts District, which is considered to be the epicenter of Phoenix’s art scene.

The HFF team representing the borrower was led by managing director Todd Sugimoto and real estate analyst Steven Paskhover.

Wilshire Capital Partners, LLC is a private real estate firm that invests in apartment, office, industrial and debt opportunities throughout the Western United States.

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 $11 million financing for two-building Southern California medical office portfolio

Grove Medical Arts Building, 12665 Garden Grove Boulevard

Garden Grove, CA

Mark Wintner

LOS ANGELES, CA – HFF announced today that it has arranged $11 million in financing for a two-building medical office portfolio totaling 120,253 square feet in Southern California.

HFF worked on behalf of the borrower, joint venture partners Pacific Prime Properties and Hager Pacific, to secure the 20-year, fully amortizing, fixed-rate financing through ING Investment Management. Loan proceeds were used to refinance existing debt on the property and return capital to the borrower.

The first property, Grove Medical Arts Building, is located at 12665 Garden Grove Boulevard in Garden Grove approximately six miles south of Anaheim, California. The seven-story, 74,367-square-foot building is adjacent to the 167-bed Garden Grove Hospital Medical Center, and is 93.2 percent leased.

Los Alamitos Medical Professional Building, 10861 Cherry Street

Los Alamitos, CA

The second property, Los Alamitos Medical Professional Building, is located at 10861 Cherry Street in Los Alamitos near Interstate 605 just south of Cypress, California. The three-story, 45,886-square-foot office building is adjacent to the 167-bed Los Alamitos Medical Center. Los Alamitos Medical Professional Building is100 percent leased.

The HFF team representing the borrower was led by managing director Mark Wintner.

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 $11.29 million senior loan and $7.2 million preferred equity for suburban Cincinnati distribution center

West Chester, OH Distribution Center
8778 – 8910 Le Saint Drive

LOS ANGELES, CA – HFF announced today that it has arranged an $11.29 million senior loan and $7.2 million in preferred equity for a 697,500-square-foot distribution center located in West Chester, Ohio.

Paul Brindley

HFF worked exclusively on behalf of Cohen Asset Management, Inc. (“CAM”) to secure the $11.29 million, four-year, 3.25 percent fixed-rate loan through a leading life insurance company. In addition, HFF also secured $7.2 million in preferred equity from Terra Capital Partners, LLC.

Built in 2006, the facility is located at 8778 – 8910 Le Saint Drive approximately 17 miles north of downtown Cincinnati in the Tri-County submarket.

The HFF team representing the borrower was led by senior managing director Paul Brindley and senior real estate analyst Jeff Sause.

Established in 1992, Cohen Asset Management, Inc. is a national owner and operator of commercial property with a primary focus on industrial real estate. Cohen Asset Management, Inc. is strategically headquartered in Southern California with a regional office in northern New Jersey.

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

krmurphy@hfflp.com

www.twitter.com/hff

www.hfflp.com

Berger Commercial Realty Closes Two New Leases in Fort Lauderdale, FL

Court House Plaza, Fort Lauderdale, FL

Steve Hyatt

FORT LAUDERDALE, Fla. (May 28, 2013) - Berger Commercial Realty, a full service commercial real estate firm based in Fort Lauderdale and serving clients around the state, announced two new lease transactions.

Berger Commercial Realty Vice President Judy Dolan and Senior Vice President St. George Guardabassi represented The Curtis T. Bell Trust in the seven-year lease of a 9,600-square-foot office space, located 200 N. Andrews Ave. in Fort Lauderdale, to a medical technology company.

Judy Dolan

Additionally, Berger Commercial Realty Senior Vice President Steve Hyatt represented Court House Plaza in the two-year lease of 1,260 square feet of office space, located in the at 700-705 S.E. 3rd. Avenue in Fort Lauderdale, to attorney William Allen.

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

Marielle Sologuren

Pierson Grant Public Relations

msologuren@piersongrant.com

(954) 776-1999, ext. 226

Greysteel Retail Team Led by Gil Neuman Named Exclusive Advisor and Agent on Sale of Suburban Washington, DC Retail Center

Kettering Crossing shopping center, Kettering, MD

Kettering, MD (May 28, 2013) – The Greysteel Company’s Mid-Atlantic retail investment sales team led by Gil Neuman has been named exclusive advisor and agent for the sale of Kettering Crossing, a neighborhood shopping center on four and one half acres of land in densely populated Kettering, Prince George’s County, Maryland.

Gil Neuman

The 28,830 square foot center is located in a residential neighborhood at 51-99 Kettering Drive, just east of the Capital Beltway (I-495) near the Route 50 Washington D.C. interchange and Washington Metro’s Blue Line. The center is 96% occupied by a diverse mix of service-oriented tenants and features a 28,000 square foot (.62 acre) developable corner pad site ready for 10,000 square feet of retail.

As a suburb of the Washington, D.C. Metropolitan Area, Kettering benefits from one of the strongest and largest regional economies in the United States.

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

Christine McCary

Marketing Director

7735 Old Georgetown Road, Suite 301

Bethesda, MD 20814

T. 202-280-2715

C. 703-868-1523

cmccary@greysteel.com

Marcus & Millichap Names Two Vice Presidents

John Vorsheck

John Vorsheck Continues to Cover San Diego and the West Coast

CALABASAS, CA, May 28, 2013 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has named John Vorsheck vice president, according to John J. Kerin, president and chief executive officer.

“John brings extensive knowledge and experience to the position of vice president gained from his time as a successful sales agent and in his management roles with the firm,” says Kerin. “He will continue to be a great resource for our clients and agents in San Diego and throughout the West Coast.”

Vorsheck serves as regional manager of the firm’s San Diego office, a position he has held since June 2011.

Richard Bird

Richard Bird Charged with Coverage in Salt Lake City, UT and Las Vegas, NV

CALABASAS, CA, May 28, 2013 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has named Richard Bird vice president, according to John J. Kerin, president and chief executive officer.

“Richard brings extensive knowledge and experience to the position of vice president gained from his time as a successful sales agent and in his management roles with the firm,” says Kerin. “He will continue to be a great resource for our clients and agents in Salt Lake City and Las Vegas.”

John J. Kerin

Bird serves as regional manager of the firm’s Salt Lake City and Las Vegas offices, positions he has held since April 2008 and April 2011, respectively. He has also been the sales manager of the firm’s Denver, Salt Lake City and Fort Collins, Colo. offices.

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

Ben Johnson,

Marketing Director

(925) 953-1736

PCCP, LLC Provides $24.3 Million Senior Loan to Legacy Partners and AllianceBernstein U.S. Real Estate Partners, L.P. Joint Venture to Acquire, Re-position and Lease a Pasadena, CA Office Campus

150 Orange Grove, Pasadena, CA

Los Angeles, CA, May 28, 2013 - PCCP, LLC announced today it has provided a $24.3 million senior loan to a joint venture between Legacy Partners and Alliance Bernstein Real Estate Partners, L.P. to acquire, re-position and lease 150 Orange Grove, a 103,169-square-foot class A office campus in Pasadena, Calif.

Ron Bonneau

The seller, Avery Dennison, a global leader in labeling and packaging materials and solutions, occupies 100 percent of the property. The company will lease back the space through early 2014 as it finalizes its relocation plans.

The joint venture plans to invest a significant amount of capital into renovations and building systems with the goal of attracting a new tenant to the property.

The asset was built by Avery Dennison in 1981 and has served as its corporate headquarters ever since. The four-story office building consists of three inter-connected “pods” that can efficiently offer single or multi-tenant configurations.

Other amenities include a fitness center, meeting space, executive dining room, and cafeteria. The 7.24-acre site is a unique campus setting with lush landscaping, a koi pond, and outdoor patios with fountains.

“This is the only available true campus environment in Pasadena and is really a unique property for Los Angeles County,” said Ron Bonneau, vice president with PCCP in the Los Angeles office.

“Avery has occupied the building since it was built, with no opportunity for other tenants to lease space. Once renovations are complete, the space should be in high demand.”

The renovations will begin in late 2013 and are expected to be completed by mid 2014.

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

Darcie Giacchetto

Spaulding Thompson & Associates

949.278.6224

www.pccpllc.com

New Castle Hotels and Resorts Recognized as One of 2013 Best Places to Work in Atlantic Canada

Westin Nova Scotian Hotel, Halifax, NS, Canada

SHELTON, CT and HALIFAX, Nova Scotia, May 28, 2013—Officials from New Castle Hotels and Resorts, (NCHR) a leading hotel developer, owner and operator, today announced that the company was named one of the 27 Best Places to Work in Atlantic Canada by Progress magazine and Best Companies Group.

Guido Kerpel

The awards presentation was made at a luncheon held yesterday at the Westin Nova Scotian in Halifax.

“Awards like this, that reflect employee satisfaction and appreciation for the company’s culture are particularly gratifying,” said Guido Kerpel, Vice President, Canadian Region NCHR.

“Many companies offer competitive pay and good benefits, but we work hard to establish a sense of camaraderie and professionalism that clearly resonates with our associates.”

Now in its seventh year, this survey and awards program was designed to identify, recognize and honor the best employers in Atlantic Canada, benefiting the region's economy, workforce and businesses.

New Castle Hotels and Resorts will be profiled in a special publication by Progress magazine distributed in early June and on a CBC special.

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

For New Castle Hotels and Resorts:

Lauralee Dobbins/Chris Daly

Daly Gray

703-435-6293

Lauralee@Dalygray.com

For Best Places to Work

Katie Smith:

877-455-2159

www.newcastlehotels.com

www.BestPlacesToWorkAtlantic.com

Attendees of Akerman U.S. Real Estate Summit Detail Improving CRE Sector

Annemarie DiCola

ATLANTA, GA (May 28, 2013) – Declining loan delinquencies, high investor demand for core assets and a stronger banking system. Those were some of the commercial real estate market dynamics discussed at the fourth annual Akerman U.S. Real Estate Summit in Miami.

The most recent episode of the “Commercial Real Estate Show” radio program, hosted by Michael Bull of Bull Realty, presents interviews recorded at the show, which focuses on the issues facing commercial real estate investors. Bull and his guests discussed a wide range of issues impacting those who buy and sell commercial properties.

Michael Bull

The delinquency rate for commercial mortgage loans in commercial mortgage-backed securities (CMBS) dipped to 9.5 percent this spring, said Annemarie DiCola, CEO of Trepp. “We are trending in a direction that is good,” DiCola said. “These loans represent a wonderful proxy for what is happening in commercial real estate in the U.S.”

The mid-sized banks that commercial real estate investors rely so heavily on are generally in good shape now, DiCola added. “We think that the majority of them are strong and healthy,” she said.

Richard Bezold

Opportunities to purchase distressed assets have declined, as there are now fewer of them, said Richard Bezold, chair of Akerman’s Real Estate Practice Group.

“Clearly, the emphasis in the last 18 months has been on core product,” Bezold said. “That’s been trading really well. When core product comes online, you’re seeing 10, 15, 20 bidders for it. Outside of the core assets, you’re not seeing those bidders yet.”

Darryl Parmenter

Overall, today is still a good time to buy commercial real estate, said Darryl Parmenter, CEO of Parmenter Realty Partners, which invests heavily in office properties. “We think it’s a very good time to buy real estate,” Parmenter said. “We’re able to buy at material discounts to replacement costs.”

As far as property performance, the “real estate market continues to be volatile,” Parmenter added. “The office sector is somewhat less volatile than some of the others.”

Tom Sittema

Tom Sittema, CEO of CNL Financial Group, said his firm has made the acquisition of seniors housing and healthcare facilities in secondary markets an investment priority. “The fundamentals in that space are very compelling,” he said.

The investment picture for resort properties, second homes and vacation-related properties remains a mixed bag, said Andrew Robbins, chair of Akerman’s Lodging and Lifestyle Practice Group. Timeshares, which are a “middle-market product,” are selling well, he said. “They took a bit of a hit during the downturn but they’re very much alive and well.”

Andrew Robbins

On the other hand, investor interest in the new development of traditional resorts that combine hotels with for-sale residential units remains miniscule, Robbins added. “You’re probably not going to see resort development take off in any meaningful way until there is an ability to sell [the] residential real estate,” he said.

The entire episode on the Akerman U.S. Real Estate Summit is available for download at www.CREshow.com. The next “Commercial Real Estate Show” will be available May 30 and will feature interviews from the recent RECon 2013 retail show in Las Vegas.

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

Stephen Ursery

The Wilbert Group

404.405.2354

sursery@thewilbertgroup.com