Marcus & Millichap Sells 160-Unit Apartment Complex in Philadelphia

PHILADELPHIA, Dec. 21, 2009 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has brokered the sale of Beechwood Gardens, (top left photo)  a 160-unit, 140,000-square foot apartment complex in Philadelphia.

The sales price of approximately $10.5 million represents approximately $65,000 per unit and $75 per square foot.

Ridge MacLaren, (top right photo) a vice president investments and senior director of the firm’s National Multi Housing Group, along with multifamily investment specialists Clarke Talone (middle left photo) and Andrew Townsend, (bottom right photo)  in Marcus & Millichap’s Philadelphia office, represented the seller, Home Properties. The buyer was a New York-based LLC.

“In this supply constrained, far northeast Philadelphia location, rental demand will remain strong for years to come,” states MacLaren. “Home Properties managed the property well, which makes this a turn-key investment for the buyer. Combined with the attractive financing terms available, this is an excellent acquisition.”

The property is located at 9805 Haldeman Ave. in Philadelphia, with easy access to U.S. Route 1 and Interstate 95. Southeastern Pennsylvania Transportation Authority regional rail lines provide convenient transportation to Center City.

Built in 1967 on 5.7 acres, Beechwood Gardens contains 80 one-bedroom and 80 two-bedroom apartments. More than two-thirds of the units have been renovated by the seller. Marcus & Millichap’s marketing efforts produced nearly 30 property tours and 20 written offers.

“This transaction indicates that buyers are anxious to take advantage of the excellent agency debt available,” adds MacLaren. “Well-priced real estate in solid infill locations will continue to generate significant buyer interest in this market.”

Press Contact: Stacey Corso, Communications Department, (925) 953-1716

Marcus & Millichap Facilitates $20M Loan Sale on Massachusetts Ground Lease

PHILADELPHIA, PA – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has facilitated the sale of a performing, self-liquidating first mortgage loan for approximately $20 million. The loan is secured by fee-simple title to land adjacent to a regional mall in Massachusetts. The income source for the loan payments is a corporate-guaranteed ground lease on the mortgaged property with an investment-grade grocery store tenant.

Thomas Gorman, a senior associate of the National Retail Group in Philadelphia, and Michael Harris, a loan sale specialist in Marcus & Millichap’s Special Assets Services (SAS) division in Tampa, worked with Matthew Gorman, a senior associate in the firm’s Philadelphia office, to advise the institutional seller and market the credit-tenant loan.

Michael Shover, a net-leased investment specialist in Philadelphia; Dorothy Jackman, (top right photo)  a vice president investments, and Travis Prince, (bottom left photo) a senior associate, both in the firm’s Tampa office; and Todd Tremblay, a net-leased investment specialist in Boston, also provided representation in this transaction.

“We marketed this loan within our SAS division, which typically handles distressed real estate and non-performing assets, even though this is a performing loan,” explains Harris. “The firm’s loan sales are handled in SAS due to the accelerated marketing process and our ability to maximize proceeds on behalf of our sellers. We had significant interest in this transaction and were able to generate multiple offers. In the end, an institutional investor purchased this loan on an all-cash basis,” adds Harris.

“Marcus & Millichap’s Special Assets Services division is the industry leader in advising and serving investors in the purchase and sale of distressed commercial real estate assets and financial instruments,” says Bernard J. Haddigan, executive in charge of the SAS division. “During calendar year 2009, SAS has advised clients on the marketing, sale and closing of more than $1 billion of notes and distressed assets.”

Located in Massachusetts, the land was appraised in 2002 at $30 million. The tenant subsequently constructed a retail center, which was occupied by a grocery store. In 2008, the grocery store vacated and the space was re-tenanted.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716

Marcus & Millichap Names New VPs

KENT WILLIAMS PROMOTED TO SENIOR VICE PRESIDENT IN SAN DIEGO

SAN DIEGO, CA– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has promoted Kent Williams (top right photo) to senior vice president, according to Harvey E. Green, president and chief executive officer of Marcus & Millichap.

“Kent is a tremendous resource for our investment professionals and investor clients in San Diego and throughout Southern California,” explains Green. “Under his leadership, the San Diego office has consistently ranked as one of Marcus & Millichap’s top-producing offices nationwide.” Williams joined Marcus & Millichap in 1991 as an agent in the Ontario office.

BRAD NATHANSON IS NEW VICE PRESIDENT INVESTMENTS IN PHILADELPHIA OFFICE

PHILADELPHIA, PA– The board of directors of Marcus & Millichap Real Estate Investment Services has named Brad Nathanson (middle left photo) the position of vice president investments. Spencer I. Yablon is regional manager of the firm’s Philadelphia office. Nathanson began his career with Marcus & Millichap in 2003, specializing in the sale of retail properties.

AARON BOVE MOVES UP TO VICE PRESIDENT INVESTMENTS IN SAN DIEGO

SAN DIEGO, CA-- The board of directors of Marcus & Millichap Real Estate Investment Services has named Aaron Bove (middle right photo) to the position of vice president investments. Kent R. Williams is senior vice president and regional manager in the firm’s San Diego office. Bove began his career with Marcus & Millichap in 2001, specializing in the sale of multi-family properties.

THREE AGENTS NAMED TO VICE PRESIDENT INVESTMENTS IN SACRAMENTO

SACRAMENTO, CA – The board of directors of Marcus & Millichap Real Estate Investment Services has named Scott Crowle, (middle left photo) Ryan DeMar (middle right) and Robert “Bobby” Loeffler to the position of vice president investments. Robert B. Hicks is senior vice president/regional manager in the firm’s Sacramento office.

Scott Crowle began his career with Marcus & Millichap in 2002, specializing in retail properties. Ryan DeMar began his career with Marcus & Millichap in 2003, specializing in the sale of multi-family properties. Robert “Bobby” Loeffler began his career with Marcus & Millichap in 1999, specializing in multi-family properties.

DOROTHY JACKMAN STEPS UP TO VICE PRESIDENT INVESTMENTS IN TAMPA

TAMPA, FL– The board of directors of Marcus & Millichap Real Estate Investment Services has named Dorothy Jackman (middle left photo) to the position of vice president investments. Bryn D. Merrey is regional manager in the firm’s Tampa office. Jackman began her career with Marcus & Millichap in 2003. She specializes in the sale of student housing properties.

MICHAEL EARLY PROMOTED TO VICE PRESIDENT INVESTMENTS IN SOUTHERN VIRGINIA

WILLIAMSBURG, VA – The board of directors of Marcus & Millichap Real Estate Investment Services has named Michael Early (bottom right photo) to the position of vice president investments. Gary R. Lucas is regional manager in the firm’s Southern Virginia office. Early joined Marcus & Millichap in 2000. He specializes in retail and net-leased investment sales.

ALVIN MANSOUR PROMOTED TO SENIOR VICE PRESIDENT INVESTMENTS IN SAN DIEGO

SAN DIEGO, CA – The board of directors of Marcus & Millichap Real Estate Investment Services has promoted Alvin Mansour (bottom left photo) to the position of senior vice president investments. This achievement is one of the highest levels of recognition the firm awards to its investment specialists.

“Alvin has earned a reputation as one of the most knowledgeable investment specialists in the nation,” says Kent Williams, senior vice president and regional manager of the firm’s San Diego office.

Mansour began his career with Marcus & Millichap in 2003 as an agent in the San Diego office. He specializes in retail and single-tenant net leased investments and serves as a director of both the National Retail Group and Net Leased Properties Group.

Press Contact: Stacey CorsoCommunications Department(925) 953-1716

Additional Office Investment Opportunities Expected to Arise in Philadelphia

PHILADELPHIA, PA— A significant reduction in development activity within Center City will lead to more stable operations in the near term, while some outlying areas will register moderating fundamentals due to weak employment in the professional and business services sector, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Since the opening of the Comcast Center last summer, there have been only a handful of notable completions in the CBD, and few are expected during the next 12 to 18 months.

(The historic Liberty Bell, top left photo)

“Activity within Philadelphia’s office investment market will remain modest in the near term, although velocity may pick up toward the end of 2009 as distressed assets reach the market,” says Spencer Yablon, (middle right photo) regional manager of the Philadelphia office of Marcus & Millichap.

Following are some of the most significant aspects of the Philadelphia Office Research Report:

· Continued weakness in the professional and business services and financial activities sectors will contribute to the loss of 58,000 jobs this year, a 2.1 percent decrease. In 2008, 46,100 positions were trimmed. Office-using employers will cut 23,000 workers in 2009, after 24,400 jobs were shed last year.

· Approximately 400,000 square feet of new office space is expected to come online in the Philadelphia market this year, compared with almost 1.7 million square feet in 2008. Completions have averaged 1.7 million square feet annually over the past five years.

· Declining office employment and reduced leasing activity will cause overall metro vacancy to trend higher through year end. In 2009, vacancy is forecast to rise 230 basis points to 14.4 percent. Last year, vacancy increased 80 basis points.

· This year, asking rents are forecast to drop 4 percent to $23.07 per square foot, while effective rents will fall 4.5 percent to $19.23 per square foot. In 2008, asking rents increased 3.8 percent, and effective rents pushed up 1.1 percent.

For a copy of the complete Philadelphia Office Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716

Marcus & Millichap Sells $12.48M Apartment Complex in Falls Township, PA

FALLS TOWNSHIP, PA, July 6, 2009 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of Newport Village, (top left photo) a 182-unit garden-style apartment complex in Falls Township.

The sales price of $12.48 million represents $68,571 per unit and $103 per square foot.

Ridge MacLaren, Jr., vice president investments and a senior director of the firm’s National Multi Housing Group, along with multi-family investment specialists Clarke Talone and Andrew Townsend, in the Philadelphia office, represented the seller, Newport Village Associates LP. Marcus & Millichap also procured the buyer, NV Partners LP.

“Despite a challenging environment in real estate right now, the buyer was able to look past the rhetoric and focus on the long-term fundamentals of the property,” says MacLaren. “We had tremendous interest during our marketing campaign for this asset.

"There were more than 10 offers, but the buyer stepped up with an aggressive financing package through Fannie Mae. Despite ongoing negative economic reports, the buyer and seller were able to complete this transaction smoothly and efficiently,” adds MacLaren.

Located on nine acres at 8590 New Falls Road in Falls Township, the 120,624-square foot property is conveniently located in Lower Bucks County, just off Interstate 95 and the Pennsylvania and New Jersey turnpikes, providing easy access to Philadelphia, New York City and Trenton, N.J.

“Despite the negative press, this is a good time for buyers and sellers of multi-family properties,” remarks Talone.

“For assets with stabilized operations and strong occupancy levels, Fannie Mae and Freddie Mac are quoting non-recourse loans at 75 percent to 80 percent loan-to-value with interest rates of approximately 6 percent.

"At these rates, buyers are still willing to complete transactions in this marketplace. Buyers with a longer hold strategy are going to see solid returns because of the attractive debt and cap rates,” he adds.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716

Marcus & Millichap Sells Goodnoe's Corner Development in Newtown, PA for $14.87M

NEWTON, PA – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of Goodnoe’s Corner, (top right photo) a Class A, 35,653-square foot retail and apartment development in Newtown.

The selling price of $14.87 million represents $417 per square foot.

Jeffrey W. Marquis Sr., Thomas Gorman, and Matthew Gorman in Marcus & Millichap’s Philadelphia office represented the seller, a local developer, and also represented the Philadelphia-based buyer.

“We have worked closely with the developer of Goodnoe’s Corner for more than two years,” says Marquis. “Marcus & Millichap became involved during the center’s development and we remained integral right up to the ultimate closing.

"The timeline of this development project and the marketing of the asset forced us to work through an extremely challenging retail market.

"Construction delays caused challenges as the market continued to deteriorate, but we ultimately negotiated a price per square foot well above the market average in this region.”

Located at 290 North Sycamore St., the two-story Goodnoe’s Corner development consists of six well-positioned buildings at the signaled intersection of Highway 532 and Highway 332.

On-site parking is complemented by off-street parking and new bricked walkways, which encourage foot traffic and to drive-in customers.

The main tenants include Rite Aid, Firstrust Bank and the Green Parrot Inn, an Irish pub. The remaining seven inline retail tenants are a mix of national, regional and local retailers. Four luxury apartments are located on the second floor.

Goodnoe’s Corner is situated in the heart of Newtown in a densely populated area with more than 104,000 people within a five-mile radius. The median household income in the area exceeds $102,000.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716