JLL welcomes two industry veterans to New York Capital Markets

 

Michael Zaremski

NEW YORK, NY — JLL Capital Markets it has hired 12-year industry veteran Michael Zaremski and 10-year industry veteran Michael Shmuely as Managing Directors with the firm’s New York Capital Markets team.

 

Zaremski and Shmuely will focus on multi-housing debt advisory, working alongside Michael Gigliotti and Christopher Peck, Senior Managing Directors and Co-heads of the New York Capital Markets team.

 

Michael Shmuely

Zaremski and Shmuely, both former Senior Directors with a commercial services firm, bring a deep understanding of bridge financing, GSE financing, debt brokerage and mortgage originations across all property types with a specialized focus on multifamily.

 

In addition to their industry leading expertise in agency lending, they have experience creating financing solutions for clients by utilizing third-party capital sources, including life insurance companies, CMBS, banks and debt funds.

 

Zaremski graduated with a Bachelor of Science from Indiana University and earned his certificate in Real Estate Finance and Investment from New York University Schack Institute of Real Estate.

 

Michael Gigliotti 

Shmuely graduated with a Bachelor of Arts in economics from the University of Michigan. He has also served as a board member for Friends of Israel Disabled Veterans and UJA’s Real Estate Division as chair on the Friends of Israel Disabled Veterans Youth Leadership Group and as vice chair for the American Society for Yad Vashem Young Leadership.

 

“We are pleased to welcome these two industry leaders to the JLL team,” Gigliotti said. “Their wide-ranging knowledge and expertise will provide a powerful asset to our clients.

"Most important, they are an exceptional cultural fit for JLL, and we look forward to working with them to expand our market share in the multi-housing debt space.”

Christopher Peck

 

“I am excited to bring my experience to the JLL platform,” Zaremski added. “The company’s full suite of services enables it to structure comprehensive solutions for complex projects.”

 

“We hope to expand on JLL’s collaborative and client-centric approach to capital advisory,” Shmuely said. “Increasing the team’s multi-housing deal flow elevates the platform and our ability to navigate, develop and execute post-pandemic market strategies.”

 

CONTACTS:

 

 

Kimberly Steele

PR, Capital Markets

 Agency Leasing and Valuation Advisory 

JLL

T +1 713 852 3420

M +1 832 244 9994

JLL.com

 

 George Shea, Rachel Tate

 Shea Communications

Phone: +1 212 627 5766

Email: rachel@sheacommunications.com

 

Levin Johnston Brokers Sales of Two Bay Area Properties Totaling $30.8 Million

 Casa De Luna, a 48-unit multifamily community
 in Hayward, CA

 

BAY AREA, CA – Levin Johnston of Marcus and Millichap, one of the top multifamily brokerage teams in the U.S. specializing in wealth management through commercial real estate investments, has announced the successful completion of two multifamily acquisitions totaling $30.8 million in the East Bay area of California on behalf of an active local private investor.

 The acquisitions comprise two apartment communities totaling 96 units in the Hayward submarket, which benefits from its position within a market with the most technology jobs per capita - a factor that will drive sustained rental demand, according to Adam Levin, Executive Managing Director of Levin Johnston.

Adam Levin

 “These acquisitions represent a tremendous opportunity for long-term value creation, giving our client the opportunity to complete two strategic 1031 exchange transactions and reinvest in the Bay Area’s resurging economy,” says Levin.

 “As Bay Area investment activity picks up rapidly, we were able to seamlessly secure and finalize these acquisitions based on our close relationships with the buyer and our vast knowledge of this dynamic market.”

 Robert Johnston, Senior Managing Director of Levin Johnston, adds: “Our team identified two valuable assets within Alameda County which offered our client additional diversification within their portfolio.

 Robert Johnston

 "We continuously direct our clients toward the best assets tailored to their individual portfolio and investment goals, helping them continuously gain confidence and traction in their position within the market.”

 Johnston notes both apartment communities are in well-located residential areas and are positioned to benefit from the increase in multifamily needs as local Bay Area workers return to the office or migrate to the East Bay to benefit from local job growth.

 Levin Johnston’s recent transactions include:

 $15.85 Million Acquisition of The Townhomes of Casa De Luna

Levin Johnston of Marcus & Millichap arranged the acquisition of The Townhomes of Casa De Luna, a 48-unit multifamily community in Hayward, California for $15.85 million, on behalf of a local private investor.

 Casa De Luna offers residents close proximity to highways, interstates, and mass transit for a direct commute to nearby employment hubs such as San Francisco, San Jose, and Union City.

 Adam Levin of Levin Johnston represented Brian Murphy of Dimond Property, LP as the seller in the transaction.

Shadow Creek Apartments, Hayward, CA

 

$15 Million Acquisition of Shadow Creek Apartments

 Levin Johnston also directed the acquisition of Shadow Creek Apartments, a 48-unit apartment community in Hayward, California for $15 million on behalf of the same private local investor of Casa De Luna.

 Shadow Creek Apartments offers direct access to the San Mateo Bridge, Dry Creek Pioneer Regional Park, and various nearby parks and hiking areas.

Chris Saiz 

 Renters also enjoy close proximity to education institutions, with California State University, Easy Bay only a ten-minute drive away.

Adam Levin, Robert Johnston and Chris Saiz of Levin Johnston represented Adeline Machado as the seller in the transaction.

 

 

CONTACTS:

           

Arleeny Escarcega / Jenn Quader

Brower Group

(949) 438-6262

aescarcega@brower-group.com

 

www.levinjohnston.com

In NCLA Amicus Win, Sixth Circuit Affirms Decision Invalidating CDC’s Eviction Moratorium

Caleb Kruckenberg

 

 Tiger Lily, LLC, et al. v. United States Department of Housing and Urban Development, et al.

 

Washington, DC – On July 23, the U.S. Court of Appeals for the Sixth Circuit affirmed the March 2021 decision of the Western District of Tennessee in Tiger Lily, LLC, et al. v. United States Department of Housing and Urban Development, et al.

 

The ruling invalidates the eviction moratorium order imposed by the Centers for Disease Control and Prevention (CDC).

 

 The Sixth Circuit held that the nationwide moratorium issued by CDC, stopping residential evictions, exceeds the agency’s statutory authority.

 

 The New Civil Liberties Alliance, a nonpartisan, nonprofit civil rights group, filed a successful amici curiae brief in the federal district court in Tiger Lily.

 

NCLA’s brief—signed by amici NCLA, the Beacon Center of Tennessee, the National Apartment Association, and the National Association of Residential Property Managers—argued that Congress never granted CDC the unlimited authority to take any conceivable action it deems necessary to fight infection.

 

Congress never anticipated that CDC would intrude into the operations of state landlord-tenant courts under the pretense of protecting public health.

 

 Ultimately, the District Court—and now the Sixth Circuit—adopted NCLA’s argument.

 

The court concluded that Congress did not authorize the CDC to “shut down evictions across the country.” Absent an exceedingly clear congressional mandate, the Sixth Circuit ruled, “the CDC cannot nationalize landlord-tenant law.”

Judge Amul Thapar

Judge Amul Thapar agreed with the panel’s decision but wrote separately to highlight the separation-of-powers concerns that arise when an administrative agency oversteps its bounds. 

 

As Judge Thapar explained, the Founders designed Congress to be the branch that is “most responsive to the will of the people.”

 

 “By shifting responsibility to a less accountable branch, Congress protects itself from political censure—and deprives the people of the say the framers intended them to have. 

 

"And yet, over the years, the guardrails have crumbled.” 

 

Judge Thapar called on the Supreme Court to “consider breathing new life” into the nondelegation doctrine. 

 

The case against CDC proves why a strong nondelegation doctrine is so important, Judge Thapar concluded: “It is not our job as judges to make legislative rules that favor one side or another. 

 

"But nor should it be the job of bureaucrats embedded in the executive branch. While landlords and tenants likely disagree on much, there is one thing both deserve: for their problems to be resolved by their elected representative.”

Philip Hamburger 

NCLA released the following statement:

 

“The Sixth Circuit has rejected CDC’s view that it has unlimited power to prohibit or require anything it can imagine. CDC has taken a terrifying view of its own authority, and the court wisely understood that our constitutional protections must be protected most in times of crisis.”

— Caleb Kruckenberg, NCLA Litigation Counsel

Judy Pino

 

ABOUT NCLA

 

NCLA is a nonpartisan, nonprofit civil rights group founded by prominent legal scholar Philip Hamburger to protect constitutional freedoms from violations by the Administrative State.

 

 NCLA’s public-interest litigation and other pro bono advocacy strive to tame the unlawful power of state and federal agencies and to foster a new civil liberties movement that will help restore Americans’ fundamental rights.

 

 

CONTACT:

           

Judy Pino

202-869-5218

 judy.pino@ncla.legal

 

KBS Assists in the Acquisition of Sorrento Towers, a 296,327 Square-Foot Class A Office Complex in San Diego, California, for $146 Million on Behalf of Prime US REIT

 

Sorrento Towers, a 296,327-square-foot
 Class A office complex at 5355
and 5375 Mira Sorrento Place
  in the heart of Sorrento Mesa,
 San Diego, CA

 

 SAN DIEGO, CA – KBS, one of the largest investors in commercial real estate, announced  the company assisted in the acquisition of Sorrento Towers, a 296,327 square-foot Class A office complex in the heart of Sorrento Mesa, San Diego, California’s life science and technology marketplace. 

 Tatyana Litovsky

The property was acquired from real estate investment company Shorenstein Properties for $146 million by Prime US REIT (PRIME), which trades on the Singapore Exchange Securities Trading Limits ticker as: OXMU.

Christine Fan 

KBS serves as the U.S.-based asset manager for the portfolio, which included identifying and sourcing this asset on PRIME’s behalf. Sorrento Towers is a Class A property that consists of two seven-story office buildings situated atop a multi-level parking structure.

Amanda Kennedy

Sorrento Towers is one of three assets KBS has assisted PRIME in acquiring for its portfolio since listing on the Singapore Exchange in 2019. 

Gio Cordoves

“At 98.2% occupancy, Sorrento Towers is one of the most sought-after properties in San Diego’s premier innovation hub and is within walking distance of over 60,000 square feet of high-quality retail amenities,” says Gio Cordoves, Western regional president for KBS. 

Tim Helgeson

“Through this transaction, KBS has assisted PRIME in securing another opportunity to add value to this portfolio.”

Kevin Shannon

 The Sorrento Mesa submarket where Sorrento Towers is located is home to San Diego’s largest concentration of technology companies, including those in the life science, biotech and med-tech sectors, telecommunications, wireless applications and healthcare.

Ken White

 Its location just east of Torrey Pines, University Town Center and University of California San Diego, and just south of Del Mar Heights is drawing in such global firms as Google, Apple and Qualcomm, which continue to expand their presence in San Diego. 

Howard W. Chu

The region’s mild climate, desirable lifestyle, highly qualified and educated talent pool, respected universities and research institutions, and lower office rents relative to other coastal California markets is driving the market’s growth in digital technology-focused firms.

 Bruce Fischer

 “Among the top 15 tech-centric markets, San Diego boasts the highest concentration of its population categorized as Millennials at 31.6%, securing a substantial workforce for the future. 

"It also boasts the highest percentage of patent growth, recording an 84.4% increase in the last five years, making it highly innovative and a breeding ground for spin-off tech companies.” says Cordoves. 

“These factors position the office market for strong performance in the foreseeable future.”

 Built in 1990, Sorrento Towers is a LEED Gold-certified state-of-the-art life science/office asset conveniently positioned just south and east of the I-5/I-805 interchange and accessible to I-15 and other major local roadways. 

The property is centrally located in the San Diego region with easy access to surrounding business centers, public transportation, and residential communities. 

 Shorenstein acquired the property in 2018 and increased occupancy to 98%. Over the last few years, the property underwent significant upgrades including state-of-the-art tenant improvements, updates to the common areas, a fully renovated open-air plaza, an upgraded fitness center, conference spaces, training center and collaborative meeting areas.

Sorrento Mesa submarket

 The Sorrento Mesa office market in particular is well-positioned for ongoing growth thanks to significant barriers to entry, according to Tim Helgeson, asset manager for Sorrento Towers and senior vice president of KBS.

 “Soaring demand, limited supply, and increasing conversions from office to life science are causing office vacancy rates in Sorrento Mesa to drop significantly,” says Helgeson. 

“In fact, from Q4 2020 to Q1 2021, Class A office inventory in this submarket experienced a 3.5% reduction in direct office vacancy due solely to life science conversions. This makes best-in-class assets like Sorrento Towers increasingly in demand among office users in the market.”

University Town Center, metro San Diego, CA

“Sorrento Towers is a high-quality asset in a thriving tech submarket in one of the most coveted regions in the country,” says Helgeson. “Office tenants in the San Diego market are eager to occupy space at properties like Sorrento Towers that have so much to offer.”

 Kevin Shannon, co-head of U.S. capital markets, Brunson Howard, executive managing director and Ken White, executive managing director at Newmark brokered the sales transaction.

 “KBS has once again demonstrated its deep expertise in recognizing markets with solid fundamentals and acquiring assets in those markets that are positioned for strong performance,” says Shannon.

 

Attorneys Bruce Fischer, Tatyana Litovsky, Christine Fan and Howard Chu, and paralegal Amanda Kennedy, of global law firm Greenberg Traurig, LLP’s Orange County office represented PRIME as legal counsel in the acquisition.

 “We were very pleased to represent KBS in this significant strategic transaction,” says Fischer, Greenberg Traurig’s Chair of the West Coast Real Estate Practice and Co-Managing Shareholder of the Orange County office, who led the Greenberg Traurig team and represented KBS.

 Sorrento Towers is located at 5355 and 5375 Mira Sorrento Place in San Diego, California.

 CONTACT:

 Katie Haga · Account Manager

O 949 438 6262 

Brower Group, Inc. 
The Smart Agency^® for Smart Clients who want Smart Work 
220 Newport Center Drive, Suite 22 · Newport Beach, CA 92660

  www.kbs.com.

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