Sunday, January 15, 2017

Avison Young releases 2017 North America, U.K. and Germany commercial real estate forecast

Mark E. Rose
Toronto, Ontario, CANADA — The commercial real estate industry ended 2016 as it began – with low interest rates, low cap rates and moderate GDP growth in most nations – but it does not feel like the same environment heading into 2017.

Rising protectionism and political unrest have introduced a healthy dose of fear and skepticism as to where we are in the current market cycle and what comes next.

Despite job growth, improving market fundamentals and superior yields to alternative investments, commercial real estate owners, occupiers and investors disagree about how long this cycle could – and should – continue. It is the seventh inning, but how long is this ball game?

These are some of the key trends noted in Avison Young’s 2017 North America, U.K. and Germany Forecast, released this week.

The annual report covers the office, retail, industrial and investment sectors in 63 markets in five countries on two continents: Calgary, Edmonton, Halifax, Lethbridge, Montreal, Ottawa, Quebec City, Regina, Toronto, Vancouver, Waterloo Region, Winnipeg, Atlanta, Austin, Boston, Charleston, Charlotte, Chicago, Cleveland, Columbus, OH; Dallas, Denver, Detroit, Fairfield County, Fort Lauderdale, Greenville, Hartford, Houston, Indianapolis, Jacksonville, Las Vegas, Long Island, Los Angeles, Miami, Minneapolis, Nashville, New Jersey, New York, Oakland, Orange County, Orlando, Philadelphia, Phoenix, Pittsburgh, Raleigh-Durham, Reno, Sacramento, San Antonio, San Diego, San Francisco, San Mateo, St. Louis, Tampa, Washington, DC; West Palm Beach, Mexico City, Coventry, London, U.K.; Berlin, Duesseldorf, Frankfurt, Hamburg and Munich.

“Take me out to the ball game! It is only fitting that, in a year full of upsets, the Chicago Cubs celebrated their first World Series win in 108 years. The nine innings of American baseball have become a metaphor for the global real estate market cycle, but given the many variables of the current climate, just like the World Series finale, this cycle may be going into overtime,” comments Mark E. Rose, Chair and CEO of Avison Young.

“Will we see 2016 redux, or changes ahead? Pundits have taken both sides of the interest rate debate, from low rates indefinitely to a gradual return to historical levels.

“Meanwhile, virtually all developed countries piled on additional debt, ensuring that no government would lead the charge to raise rates. Economists disagree about how best to proceed, but a majority of business executives understand that we need to normalize rates one day – and sooner rather than later. It is hard to conceive a climate with less consensus.”

Rose continues: “Buyers and sellers used Brexit and the U.S. presidential election to pause and gather data points. Decision-making might have slowed in 2016, but the appetite for investment in real estate continues unabated.

“The overarching themes of global financial growth from a depressed base and global population topping 10 billion in the next few decades provide strong support for everything related to real estate.

“Technology is a game-changer, potentially impacting what, where and how properties get used and constructed. If history is a guide, technology – like immigration – has redistributive impacts but can create meaningful positive economic growth for decades to come.”

To make the case for the cycle being in extra innings, Rose pivots back to the baseball analogy.

“The widely held opinion is that real estate is in the seventh inning,” he says. “At Avison Young, we disagree. We see something very different. We might be in the seventh or eighth inning from a pricing perspective, but given the market forces and attributes that currently exist, we could be in the seventh inning of a very long extra-innings game for our industry.

“Real estate is a legitimate investment alternative and is currently producing higher yields than stocks and bonds.”

Rose adds that the U.K., Germany and Western Europe, the U.S., Canada and Mexico boast some of the largest GDP markets in the world, and global trade has not seized up – nor will it.

“North America has been the preferred destination for global capital, and will continue to be in 2017,” he notes. “Additionally, investors in this region are beginning to harvest gains, creating a ‘wall of capital’ to take advantage of any dislocations in the marketplace.

“This wall is one of the reasons we are predicting that North American global investors will have the U.K. and, specifically, London in their sights in 2017. We believe that well-timed portfolio acquisitions could produce significant returns.”

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

Sherry Quan                 
604.647.5098 or 604.726.0959 cell

More Than 3,250 Luxury Condos For Sale In South Florida; Supply Nears Three Years Of InventoryMore Than 3,250 Luxury Condos For Sale In South Florida; Supply Nears Three Years Of Inventory

Biscayne Bay, Miami-Dade, FL

 MIAMI-DADE, FL -- More than 3,250 luxury condo units listed for sale at a minimum price of at least $1 million are formally available for purchase in the tricounty South Florida region of Miami-Dade, Broward and Palm Beach counties as of Jan. 10, 2017, according to a new report from Condo Vultures® Realty LLC.

Based on monthly condo sales of 98 units in 2016, South Florida now has more than a 33-month supply of units available for purchase at a time when the tricounty region is approaching the peak of this year’s critical Winter Buying Season, according to the report based on data from the Southeast Florida MLXchange.

More than 3,250 luxury condo units listed for sale at a minimum price of at least $1 million are formally available for purchase in the tricounty South Florida region of Miami-Dade, Broward and Palm Beach counties as of Jan. 10, 2017, according to a new report from Condo Vultures® Realty LLC

A balanced market is generally considered to have about six months of supply. More months of condo supply listed for sale suggests a buyer’s advantage and less months typically indicates a seller’s advantage in the market.

It is worth noting this report only tracks those South Florida condos formally listed for sale. The report does not factor in the thousands of new condo units currently in the development pipeline east of Interstate 95 in South Florida.

(For the latest South Florida preconstruction condo project pipeline, please visit:

 The average asking price of a South Florida luxury condo currently listed for sale is nearly $2.9 million per unit. This works out to an average asking price of $1,047 per square foot, according to the data compiled by

In 2016, the average transaction price of a South Florida luxury condo was less than $2.03 million or about $805 per square foot.

This means the current asking price for a South Florida luxury condo listed for sale is more than 42 percent higher than the average transaction price achieved on a per-unit basis and about 30 percent higher than the average transaction price on a per-square-foot basis in 2016.

Last year, the sellers who were able to unload their units needed nearly 168 days – about 5.6 months - to transact a South Florida luxury condo listed for sale. The current Days-On-The-Market average for South Florida luxury condos listed for sale is about 155 days, according to the stats. is a licensed Florida brokerage that specializes in assisting buyers in value-oriented acquisitions of condos in the tricounty region of Miami-Dade, Broward and Palm Beach.  

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

Condo Vultures® Realty LLC | Lic. Real Estate Broker
South Florida's Buyer Experts | 425 NE 22nd St. | Suite 205 | Miami | FL | 33137
© Copyright 2017. All Rights Reserved.
Direct: (305) 865-5629 | Fax: (888) 688-3415

HFF closes sale of 452-unit multi-housing community in Raleigh, NC

Apartments of Stonehenge, North Raleigh, NC                                 (Photo by Clear Sky)
CHARLOTTE, NC –– Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the sale of the Apartments of Stonehenge, a 452-unit, garden-style multi-housing community in the North Raleigh submarket of Raleigh, North Carolina.

HFF marketed the property on behalf of the seller, an affiliate of Ram Realty Advisors (Ram).  Magnolia Capital purchased the asset.

Jennifer Stull
Located at 7303 Hihenge Court, the 46.6-acre apartment community is situated in northern Raleigh’s master planned Stonehenge neighborhood less than 10 miles from downtown. 

The Apartments of Stonehenge is minutes away from Interstates 540 and 440, providing access to Research Triangle Park, downtown Raleigh, and major employers and lifestyle centers in North Hills and Crabtree Valley.  

Residents can also walk to the adjacent Stonehenge Market, a grocery-anchored shopping center that includes Harris Teeter, Starbucks and Rite Aid.

The Apartments of Stonehenge features a variety of one-, two- and three-bedroom units, as well as a best-in-market range of amenities, including a two-story clubhouse with fitness center, indoor basketball/racquetball court, three swimming pools, grilling areas, lighted tennis courts, playground, fire pit, business center, and resident lounge with demo kitchen.

A local developer originally built the Apartments of Stonehenge in four phases between 1984 and 1993.  Ram acquired the community in July 2012 on behalf of Ram Realty Partners III, one of the company’s discretionary private equity funds.

 Following the acquisition, Ram implemented more than $2.5 million in improvements, incorporating significant interior and exterior renovations as well as updated branding and marketing.  Ram fully renovated 96 units with superior finishes creating a premium offering branded The Reserve at Stonehenge.

Jeffrey Glenn
Upgrades included wood-style plank flooring, stainless steel appliances, contemporary cabinets, track lighting, new paint and plumbing.

  Light interior upgrades were implemented property-wide during unit turnover.  

Exterior renovations included new signage, improvements to the pools and amenity areas, fresh paint, roofing and other deferred maintenance.  The property was approximately 94 percent occupied at closing.

“At Stonehenge, we had an opportunity to transform an established development in a great location.  The renovation created a more vibrant community for our residents and generated a meaningful return for our investors,” said Jennifer Stull, Principal and Managing Director of Asset Management for Ram.

  “Success at Stonehenge is proof that the future of real estate in Raleigh and the Triangle is bright, and we look forward to investing in that future.”

The HFF investment sales team representing the seller was led by managing directors Jeff Glenn and Justin Good and director Allan Lynch.

Justin Good
"HFF is honored to have worked with Ram on their disposition and to be a part of Magnolia Capital's national debut in the Raleigh market," said Glenn.  "We are bullish on North Raleigh's incredible fundamentals and excited to see the property continue to thrive."

Magnolia Capital has plans for additional property improvements during its ownership.  “The Apartments of Stonehenge represented an opportunity to invest in an attractive asset in a premier location,” said Max Peek, CEO and Managing Principal of Magnolia Capital.

 “We have a high level of conviction in the Raleigh market going forward, and are excited to implement our business plan to further improve and modernize this community for the benefit of our residents.” 

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

Olivia Hennessey
Public Relations Coordinator
HFF | 9 Greenway Plaza Suite 700 | Houston, Texas 77046
tel 713.852.3403 | fax 713.527.8725 |

HFF secures $27 million refinancing for 361-unit multi-housing community in suburban Minneapolis, MN

Brock Yaffe
DENVER, CO  – Holliday Fenoglio Fowler, L.P. (HFF) announced it has secured a $27 million refinancing for SpringBrook Apartments, a 361-unit, garden-style multi-housing community in the northern Minneapolis suburb of Fridley, Minnesota.

HFF worked on behalf of the borrower, University Avenue Associates LLP, to secure the 25-year, fully amortizing, 3.61 percent fixed-rate loan through a correspondent life insurance company lender.

SpringBrook Apartments is located at 111 83rd Avenue NE in Fridley.  Approximately five miles north of Minneapolis, the property is accessible to the Twin Cities metropolitan area via nearby State Highways 47 and 65 and Interstates 610 and 694. 

The property comprises nine, three-story apartment buildings and one, single-story townhome building with units averaging 1,019 square feet.  

Community amenities include an outdoor and indoor swimming pool, hot tub, sauna, 24-hour fitness center, tennis courts, volleyball courts, basketball courts, horse shoe courts, putting green, clubhouse, party room, game room, playground, ponds with fountains and access to nature trails.  SpringBrook Apartments was 100 percent occupied as of year-end 2016.

The HFF debt placement team representing the borrower was led by associate director Brock Yaffe.

“The HFF team delivered the product that matched our group's requirements for this core holding,” stated a representative from University Avenue Associates LLP.  “HFF’s service – from the initial number crunching, to marketing and negotiations, through closing – was top notch.”

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

Olivia Hennessey
Public Relations Coordinator
HFF | 9 Greenway Plaza Suite 700 | Houston, Texas 77046
tel 713.852.3403 | fax 713.527.8725 |

HFF arranges $10.2 million acquisition financing for Los Angeles-area flex industrial park

Yorba Linda Business Park, La Palma Avenue, Yorba Linda, CA

 LOS ANGELES, CA –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has arranged $10.2 million in acquisition financing for Yorba Linda Business Park, a four-building flex industrial park totaling 115,760 square feet in Yorba Linda, California.

Working on behalf of the borrower, Berkeley Partners, HFF placed the 10-year, non-recourse loan with Michael McCool at Chase Commercial Mortgage Lending.  The loan will have a fixed-rate for the first five years before converting to a floating-rate loan for the remaining five years.  Loan proceeds were used to pay off a line of credit that was used to acquire the property 60 days before the loan closed. 

Jeff Sause
Situated on approximately 9.1 acres, Yorba Linda Industrial Park is located at 22343, 22345, 22347 and 22349 La Palma Avenue in the foothills of Yorba Linda, a southern California community southeast of Los Angeles.

  The property is near an entry ramp to the Riverside Freeway and is approximately 40 miles from the Ports of Long Beach and Los Angeles.  Additionally, the business park has easy access to the southern part of Orange County via the Foothill Transportation Corridor (241) Toll Road.

Yorba Linda Business Park features 68 industrial, office and flex units that are 91 percent leased to a variety of tenants, including The Well, Canyon Crossfit, Global Powersport Resource, CaliRovers and Central Enterprises.

The HFF debt placement team representing the borrower was led by director Jeff Sause and senior managing director Kevin Mackenzie.

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

Olivia Hennessey
Public Relations Coordinator
HFF | 9 Greenway Plaza Suite 700 | Houston, Texas 77046
tel 713.852.3403 | fax 713.527.8725 |