Sunday, December 4, 2016

Real Estate and Financial Markets Face Changing Order With Trump

Jeanne Peck

Chicago, IL -- Last month's surprising election
results and the Cubs World Series win are reminders of a changing order.

The markets quickly reacted by expecting the Trump administration to boost
the economy with domestic job growth and less regulatory constraints.
Investors anticipate an interest rate hike this month barring any
unpredictable global incidents that stymied such actions hikes in the recent

As for last month, treasury rates skyrocketed by more than 50 basis points.
After all the changes in treasuries and mortgage spreads, today's rates are  about that same as a year ago.  Other comments relating to realty capital
markets as the year-end approaches include: 

President-Elect Donald J. Trump
Steady spreads: Treasury rates rise, but lenders still find value in current
mortgage pricing relative to corporate bonds and other debt options. 

rule... Lenders with full deal pipelines are holding spreads, while those
with lagging production may drop spreads by 10 to 20 basis points in an
effort to increase loan volume. 

Underwriting Discipline: Debt funding sources maintain more restrictive
underwriting including debt service coverage, loan-to-value restrictions,
cash out and other items in an effort to comply with regulatory changes
(e.g. Dodd Frank). 

Should the new administration liberalize financial
institution legislation, expect slightly more aggressive underwriting.
However, equity markets are still clamoring for quality product with
investors more than willing to supplement lower leverage debt with equity

 Cooling off: This year record volume of investment sales and financings
tapering off to more "normal" levels as new-construction volume subsides.
Depending upon how treasury rates move, the market will readjust
capitalization rates accordingly, although not proportionally since an
insatiable appetite for quality product outpaces debt costs.

Battle of the "Urbans":  Urban vs. suburban CRE investment trends favor
return to select suburbs, particularly infill communities with strong public
transportation linkages and walkability scores.  Capital sources warming up
to better profitability in such areas that have been neglected during the
current economic cycle.

The Real Estate Capital Institute(r)'s director, Jeanne Peck, notes,
"Overheated markets are returning to more stabilized levels; but keep in
mind, even with the recent upsurge in interest rates, debt costs continue to
hover near historic lows."

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

 Jeanne Peck, Executive Director

Wyndham Hotel Group Acquires Fen Hotels in Latin America

Paulo Pena
BUENOS AIRES, Argentina  -- Wyndham Hotel Group today announced its acquisition of Latin America's leading Fën Hotels, adding 26 management contracts across Argentina, Peru, Costa Rica, Uruguay, Paraguay, Bolivia,  and the U.S. including two new Fën-built Wyndham Grand hotels opening in Montevideo, Uruguay, and Asunción, Paraguay.

With the addition of Fën Hotels’ signature Esplendor Boutique Hotels and Dazzler Hotels, Wyndham Hotel Group’s portfolio of distinct brands grows to 18, all of which will be bookable through the company’s award-winning loyalty program, Wyndham Rewards, by the end of 2017.

Fën Hotels’ 100+ executives and management staff in Buenos Aires will continue leading Fën hotels and augment Wyndham Hotel Group’s Latin America team as Fën's current headquarters becomes Wyndham Hotel Group's new Latin America HQ for management operations. Current Fën CEO, Patricio Fuks, will remain as chairman of Fën, helping lead Fën's explosive growth across the region. 

Patricio Fuks

“Over the last 14 years, Fën Hotels’ dedicated and trailblazing leadership-team has introduced a diversified and iconic portfolio with celebrated brands embraced by guests across Latin America,” said Paulo Pena, president and managing director for Wyndham Hotel Group in Latin America and the Caribbean. 

“From design-led boutique hotels to an exceptional focus on service and comfort, Fën Hotels delight guests visit after visit making for a great addition to our portfolio as we continue delivering elevated experiences for our guests.”

Latin America continues showing signs of economic growth – manifested in new infrastructure projects, foreign investment, record international visitors and a growing middle class population – driving the need for quality hotel supply across the region. 

Fën Hotels is uniquely poised to leverage the region’s appetite for quality accommodations with 22 existing hotels in 6 countries and a strong pipeline throughout Latin America. Together with Wyndham’s existing hotels in the region, the combined portfolio of 188 hotels in 19 countries joins Wyndham’s nearly 8,000 hotels across the globe, providing business and leisure travelers a multitude of branded hotel choices.

Ivan Kozicki
 “Wyndham Hotel Group’s strength and significant scale as the company with more hotels globally than any other hotel company -- dramatically increases our distribution, immediately enabling us to grow faster not only in Argentina, but also throughout the region ensuring more guests experience what Fën Hotels have to offer,” said Patricio Fuks, Fën Hotels CEO and co-founder. 

“As we integrate the companies over the next 18 months, becoming part of the Wyndham family of brands will enable our guests to have access to some of the most aspirational vacation experiences on earth thanks to Wyndham Rewards, Wyndham’s unparalleled loyalty program, which makes redeeming free nights in hotels, condos and homes simple and attainable.”

Additionally, Fën Hotels’ partner, Emprenurban, led by CEO Ivan Kozicki, will become a Wyndham strategic partner across Latin America, launching the first two Wyndham Grand Hotels in Latin America later this year and next.  “Coupling our proven development model and capabilities across Latin America with Wyndham’s global brands and resources will ensure an accelerated and robust joint growth pipeline for Fën and Wyndham,” said Kozicki, Emprenurban CEO and Fën Hotels co-founder.

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

Maire Griffin
Wyndham Hotel Group
22 Sylvan Way
Parsippany, NJ  07054
(973) 753-6590

Marcus & Millichap Arranges $4 Million Sale of 56-Unit Seminole Village in Pinellas County, FL

Josh Teplitzky
SEMINOLE, FL -– Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Seminole Village, a 56-unit apartment property located in Seminole, Florida, according to Ari Ravi, regional manager of the firm’s Tampa office. The asset sold for $4,070,000.

            “Seminole Village was part of a two-property portfolio in which the buyer assumed the current loan on the 56 units located in mid-Pinellas County,” says Josh Teplitzky, associate in the Marcus & Millichap’s Tampa office.

“Both the buyer and the seller were based out of California, and the property appealed to the buyer due to the all two-bedroom composition as well as it being a 1980’s vintage asset. The buyer plans to raise the rents approximately $200 per floor plan due to the limited competition in Seminole.”

Teplitzky, along with Francesco P. Carriera and Michael P. Regan, both first vice president investments also in the firm’s Tampa office, had the exclusive listing to market the property the seller’s behalf and procured the buyer.

Seminole Village is a 56-unit multifamily community located at 7770 Starkey Road in Seminole, Florida. The property was constructed in 1984 and has four, two-story buildings on an approximately 3.48 acre parcel of land. The property consists entirely of two-bedroom/one-bathroom units with 950 to 1,120 rentable square feet. Amenities include ample on-site parking, on-site laundry facilities and central air-conditioning. 

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

Ari Ravi
Regional Manager, Tampa
(813) 387-4700

R.J. Sommerdyke Joins Meridian Healthcare Acquisition Team

R.J.  Sommerdyke
IRVINE, CA – Meridian, a full-service real estate developer specializing in acquiring and developing real estate facilities for the healthcare sector, announced R.J. Sommerdyke has joined the company’s acquisition team in Southern California. 

Sommerdyke will play a key role in expanding Meridian’s platform of acquiring value-add healthcare properties throughout Southern California. 

“We are very excited to welcome R.J. to our team and expand our presence in Southern California,” said John Pollock, Chief Operating Officer of Meridian, “R.J.’s experience and extensive relationships throughout the region will be a major asset to our organization.” 

In his new position, Sommerdyke will be responsible for all aspects of acquiring value-add healthcare properties and client-driven development sites in Los Angeles, Orange and San Diego counties.

“We’re looking to aggressively expand our foothold in Southern California,” said Pollock. “We estimate the size of our target healthcare market in Southern California to be approximately three times larger than that of Northern California, which presents a tremendous opportunity to do deals.”

John Pollock
“Meridian is an industry leader in the healthcare sector and I’m extremely excited to be part of such a remarkable organization,” said Sommerdyke. “They have been highly successful in Northern California and I’m looking forward to helping build upon that success in Southern California.” 

Meridian’s entry into the Southern California market kicked off earlier this year with the $37.5 million purchase of Cotton Medical Center in Pasadena.

 “As evidenced by the acquisition of Cotton, Meridian possesses the expertise, capital and focus necessary to effectively execute in today’s competitive environment,” said Sommerdyke. “I’m very excited about our growth plans and what the future holds.”

Sommerdyke will be based out of Meridian’s Irvine office. He previously served as Director of Acquisitions for Project Dimensions, Inc., where he was responsible for the acquisition, development and dispositions of office, industrial and residential properties throughout the west coast. 

Prior to Project Dimensions, Sommerdyke spent five years as the Director of Acquisitions for Centra Realty Corporation, where he developed and acquired over one million square feet of commercial properties and became one of the largest private commercial developers in Orange County. Sommerdyke attended the University of Southern California, where he graduated from the Marshall School of Business with a master’s degree.

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

Anne Monaghan

Cushman & Wakefield Negotiates Sale of Michigan Senior Housing Portfolio

Allen McMurtry
TAMPA, FL -- Cushman & Wakefield’s Tampa team, led by Executive Managing Director Allen McMurtry, and San Diego team, led by Executive Managing Director David Rothschild, represented an institutional seller in the disposition of a three-property, 371-unit independent living portfolio.

  The properties are located in suburban Detroit and include Pine Ridge of Garfield, Pine Ridge of Plumbrook and Pine Ridge Villas of Shelby.

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

Allen McMurtry
Executive Managing Director
Cushman & Wakefield
+1 813 349 8349

David Rothschild
Executive Managing Director
Cushman & Wakefield
+1 858 625 5252