Wednesday, June 12, 2013

$21.4 Million Net-Leased Property Sale in Kettleman City, CA Arranged by Marcus & Millichap

FedEx Freight Terminal, 33104 25th Ave., Kettleman City, CA

John Glass
KETTLEMAN CITY, Calif., June 12, 2013 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of a brand new, freestanding, 89,880-square foot FedEx freight terminal in Kettleman City, Calif.

            John Glass, senior vice president investments in Marcus & Millichap’s San Francisco office, represented the seller. The buyer was in a 1031 exchange.

            “The facility was completed earlier this year and has a 29-year absolute triple-net lease that is guaranteed by FedEx Corporation,” says Glass. “A unique financial structure added to the attractiveness of this investment opportunity.”

Kettleman City, CA. 2008 Pop. 1,439
The property is located at 33104 25th Ave. in Kettleman City, Calif. Kettleman City is situated approximately halfway between Los Angeles and San Francisco.

            FedEx is an S&P BBB-rated investment-grade tenant.

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

Ben Johnson
Marketing Director

(925) 953-1736

Trepp May Payoff Report: Percentage of Loans Paying at Maturity Dips

NEW YORK,NY --According to the latest Trepp Payoff Report, the percentage of loans paying off on their balloon date registered 59.5% in May.

This was more than five points below the April reading of 64.6%. The May reading was the second lowest of the year, but was above the 12-month moving average of 55.3%.

(The 12-month average sums the averages of each month and divides by 12, there was no balance weighting across the months.) 

By loan count (as opposed to balance), 69.1% of loans paid off. The 12-month rolling average by loan count is now 61.8%.

It might be tempting to attribute May's decrease to increasing Treasury yields and widening CMBS spreads, but that would be off base.

Most of the spike in the 10-year Treasury rate and surge in CMBS spreads took place over the last two weeks, which is too recent to impact the May numbers.

 If we are going to see a slow down in refinancings as a result of the current conditions, we would expect to see it begin in July or August at the earliest (assuming rates and spreads don't reverse course between now and then).

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

NAI Realvest Negotiates Two New Industrial Lease Agreements in Orlando, FL and Tavares, FL totaling 19,000 SF

Michael Heidrich Sr.

MAITLAND, FL.  – NAI Realvest recently negotiated new lease agreements totaling 19,000 square feet at two industrial facilities – one in Orlando and one in Tavares in Lake County. 

Michael Heidrich Jr.
NAI Realvest Principal Michael Heidrich Sr. and Associate Michael Heidrich, Jr., represented landlord David P. Reckell Trust in the lease of 10,000 square feet of industrial space at 27620 Highway 561 in Tavares.

  Walker Stainless Equipment Co. of New Lisbon, Wis. is the tenant who was represented by Joseph Howell of NAI Global Corporate Solutions.

Joseph Howell
 Heidrich Sr. and Heidrich Jr. negotiated an industrial lease for 9,000 square feet at 2169 N. Forsyth Rd. in Orlando representing the landlord Forsyth Road LLC of Longwood.   The tenant is Super Transportation of Florida LLC, headquartered in Scottsdale, Ariz.

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

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

NAI Realvest Names Veteran Real Estate Broker Jason G. Toll Director, Industrial Services Group

Jason G. Toll
ORLANDO, FL --- NAI Realvest, which ranks as one of Central Florida’s most active developers of industrial facilities and one of the region’s largest commercial real estate services companies, has appointed veteran real estate broker Jason G. Toll to director, industrial services group.

Robin L. Webb CCIM, managing director at NAI Realvest, said Toll has more than 17 years of experience in Commercial Real Estate.  He was formerly managing partner of Logistic Development Group which specializes in development of multi-modal industrial space and brokerage. 

 In his new role Toll will focus on representation of industrial clients for leasing and sales, Webb said.

Robin L. Webb
“Jason has extensive experience in industrial brokerage in addition to ground-up development in Central Florida.  We are delighted he has joined NAI Realvest and we expect he’ll play a major roll in our growth.”

The third generation central Floridian holds a bachelor’s degree in marketing from University of Central Florida.      He is a member of the Orange County Nuisance Abatement Board,  president-elect of the Maitland Rotary Club and an active member of the Central Florida Commercial Association of Realtors. 

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

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

Real Estate Veteran Jim Bagley named to head Encore Housing Opportunity Fund; Joel Lazar named marketing VP

Jim Bagley
ORLANDO, FL  – Jim Bagley, a real estate veteran with more than 25 years of experience as a home builder including stints with Pulte Homes, Park Square and Meritage Homes manages the Central Florida operations of Encore Housing Opportunity Fund, based in Celebration.

Bagley said he already has some 15 master planned communities he is working with including Reunion in Orlando, Splendid China in Orlando and Cannon Ranch in Tampa, among others.

Bagley estimates the number of projects he is now involved in totals close to $1 billion.   These projects include single family homes, apartments and short term rental homes.

Joel Lazar
At the same time, Bagley appointed another expert and veteran home building executive – Joel  Lazar – as vice president of marketing. Lazar has more than 25 years of experience in the residential and resort real estate industry.

Encore Housing Opportunity Fund is an opportunistic real estate fund manager which invests in residential real estate, primarily in Florida and California and is a seasoned residential real estate development and investment firm with land acquisition, development and construction capabilities in-house.

 With over $700 million in assets under management and investments in Miami, Orlando, Jacksonville, Dallas, Los Angeles and San Francisco, Encore Housing Opportunity Fund is actively investing in a variety of real estate opportunities

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

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

Newmark Grubb Knight Frank's Southeast Capital Group Negotiates Sale of Southpark Village in Raleigh, NC for $11 Million

Southpark Village, Raleigh, NC

ATLANTA, GA. --- The Southeast Capital Group at Newmark Grubb Knight Frank in Atlanta recently negotiated the sale of the 82,262 square foot Southpark Village neighborhood retail center at 324 Village Walk Drive in Holly Springs, N.C., a suburb of Raleigh.

Whitney Knoll, who leads the Southeast Capital Group at Newmark Grubb Knight Frank, said Aurora, Ohio-based Optimus One, LLC paid $11,000,000 to acquire the property from SouthPark Village Investments I, LLC.

Whitney Knoll
Knoll, along with team members Mark Hillis and Jason Archer, negotiated the sale.

“Optimus One was a great match for this property and SouthPark Village has a great future,” Knoll said. “The Holly Springs and the Raleigh MSA is experiencing tremendous growth and anchor tenant Harris Teeter is a dynamic, forward-thinking retailer that ranks as the 25th largest supermarket in the U.S.,” Knoll said.        

Built in 2008, the Southpark Village retail center is currently 98 percent occupied.

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

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

WNC Closes $46 Million Institutional Tax Credit Fund to Acquire 10 LIHTC Properties in California


 IRVINE, CA, June 12, 2013 – WNC, a national investor in real estate and community development initiatives, announced today it has closed WNC Institutional Tax Credit Fund X, California Series 11 L.P., a $46 million institutional low-income housing tax credit (LIHTC) fund.

WNC Institutional Tax Credit Fund X, California Series 11, includes nearly 800 units of affordable housing spread across 10 properties and five counties in California. The properties include senior and family housing, with a combination of new construction and rehabilitation developments.

This is the company’s 11th institutional fund focused solely on Calif. since 2001, and will fund the development of two new affordable housing projects and the rehabilitation of eight existing communities. 

Since its founding, WNC-sponsored funds have invested in nearly 250 properties totaling more than 14,000 units in California, with its national portfolio now approaching 1,200 properties.

“This fund is comprised of seven California-based institutional investors, including two new investors and five that have participated in prior WNC funds,” said Will Cooper Jr., President and Chief Executive Officer of WNC.

 “We continue to experience high demand for LIHTC investments and are thankful to continue working with our existing development and investment partners, as well as forge new relationships.”

Will Cooper Jr.
WNC Institutional Tax Credit Fund X, California Series 11 includes eight properties that will be constructed by existing development partners of WNC, while welcoming two new partners to the company’s portfolio.

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

Jill Swartz
Spotlight Marketing Communications
949.427.5172, ext. 701 – direct
949.485.1552 – mobile

HFF places $15 million financing with PPM America for Hartford, CT retail power center

       Charter Oak Marketplace, Hartford, CT

FLORHAM PARK, NJ – HFF announced today that it has placed a $15 million financing with PPM America for Charter Oak Marketplace, a 309,842-square-foot, Walmart-anchored, retail power center in Hartford, Connecticut.

Jim Cadranell
                HFF worked on behalf of the borrower, Paramount Realty Services, Inc., to secure the 10-year, fixed-rate loan through a life insurance company.  Loan proceeds will refinance existing debt and pay for renovation costs currently taking place at the property.  HFF will also service the loan.

                Charter Oak Marketplace is situated on 33.5 acres at 475 Flatbush Avenue at the entrance ramp to Interstate 84 in Hartford.

Jon Mikula
Completed in 2005, the center is fully leased to tenants including Marshalls, Dollar Tree, Dunkin Donuts, Taco Bell, Payless Shoes and AT&T, and consists of two in-line retail buildings, five pad sites and a Walmart pad site.

  The renovations at the center include a 31,000-square-foot addition to Walmart to upgrade it to a full-service grocery store (Walmart is covering the cost), a 6,800-square-foot addition to house The Children’s Place and Famous Footwear tenants, and the construction of a new Denny’s restaurant that will be complete by the end of summer.

                The HFF team representing Paramount Realty Services, Inc. was led by managing director Jim Cadranell, senior managing director Jon Mikula and real estate analyst Samuel Seiden.

 Paramount Realty Services, Inc. was founded in 1994 as a full-service commercial real estate firm specializing in retail real estate in the Northeast.  

Paramount Realty owns and operates more than five million square feet of shopping centers throughout New Jersey, Connecticut, Massachusetts, Maryland and eastern Pennsylvania.

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 |

Beech Street Capital Closes $17.6 Million Fannie Mae Loan for Sarasota, FL Apartments

        Huntington Place Apartments, Sarasota, FL

BETHESDA, MD, JUNE 12, 2013 – Beech Street Capital, LLC announced today that it closed a $17.6 million Fannie Mae conventional loan for the acquisition of Huntington Place, a 252-unit property in Sarasota, Florida.

Mitch Sinberg
Senior Vice Presidents Mitch Sinberg and Michael Wallace, headquartered in Beech Street’s Fort Lauderdale office, originated the transaction. 

 The borrower bought Huntington Place off-market and had a tight timeframe for closing.  In response, Beech Street created a dedicated team to accelerate the underwriting.  “We do what it takes to deliver for the client,” Sinberg says.  “In this case, we went from application to closing in 30 days, which is what the client needed.”

 A key element in the approval of the application was the borrower’s commitment to invest a significant amount of capital improvements over the life of the loan, making such interior renovations as new carpets and vinyl flooring, new front doors, new bathroom fixtures and flooring, and new kitchen appliances, countertops, cabinets, and kitchen fixtures.

Michael Wallace
 “We’ve seen the borrower complete similar improvements on other apartments that significantly improved their marketability and cash flow, and we were confident that they would follow through here,” Sinberg points out.  “This is an example of the level of confidence that develops when lenders and borrowers build a relationship by working together.”

 The fixed-rate loan has a 10-year term, with an interest only period at onset.

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

Courtney Lewis
Jenifer Bernardi


Jones Lang LaSalle: Strength of Occupancy, Submarket Attracts International Investment Capital with $4.4 M Downtown Mesa, AZ Office Building Sale


159 West First Ave., Mesa, AZ

PHOENIX, AZ – Strong market performance and local improvements ranging from new Light Rail development to senior housing construction have helped prompt Canadian-based BOSA Development to invest $4.4 million in a downtown Mesa, Ariz. office property listed by the Phoenix office of Jones Lang LaSalle.

Brian Ackerman
Located at 159 W. First Ave., the 64,298-square-foot, single-story flex building contains approximately 55,800 square feet of industrial space and 8,500 square feet of office space, built in three phases between 1987 and 2012. The property is occupied by a single tenant specializing in the manufacturing of high-visibility consumer packaging.

Jones Lang LaSalle’s Senior Vice President Brian Ackerman and Senior Managing Director Dennis Desmond, both in the Phoenix office, represented BOSA and the property seller, Hogue Ventures LLC.

Dennis Desmond
Jones Lang LaSalle Managing Director Bill Honsaker and Vice President Steve Larsen served as leasing specialists.

“There are very few competing properties like this in the area,” said Ackerman. “BOSA credits the stability of the downtown Mesa submarket market and the stability of the building’s long-term occupancy as important factors in their decision to buy.”

Bill Honsaker
According to JLL research, the Southeast Valley has enjoyed four consecutive quarters of positive net absorption and absorbed a more than 2 million square feet over the past 18 months. This consistently outpaces other parts of the Valley and accounts for more than 30 percent of total net absorption across the overall Phoenix metro market.

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

Stacey Hershauer
Marketing & Public Relations
(480) 600-0195