Grubb & Ellis Predicts a Challenging 2009 for Commercial Real Estate as Economy Weathers Recession

SANTA ANA, CA – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, has released its 2009 Global Real Estate Forecast, which indicates that 2009 will be a challenging year for commercial real estate with the economy starting the year 13 months into what may become the longest recession since the 1930s.

“The economy will struggle in 2009, which will dampen demand for all product types, resulting in negative absorption and increased vacancy,” said Robert Bach, (top right photo) senior vice president, chief economist of Grubb & Ellis.

“We expect total payroll job losses in the range of 1 to 2 million in 2009 on top of the 2+ million in 2008. GDP is likely to shrink by 1 percent in 2009, compared with growth of 1.3 percent and 2 percent in 2008 and 2007, respectively.”

The investment market, which saw transaction volume plummet in 2008 as the financial markets collapsed and the credit markets froze, is expected to see a 15 percent increase in sales volume in 2009 as distressed properties are brought to market, particularly those acquired in the past couple of years with floating rate debt.

Loan delinquencies and foreclosures will increase with more properties returning to lenders, who will be anxious to sell them.

(Colby Abbott Building, Milwaukee, WI, top left photo)

Debt capital will remain expensive and tight in 2009, but more of it will be available than in 2008, and there will be a slow increase in equity capital flowing into the market from private, institutional and offshore investors waiting on the sidelines.

The coming year should be more active as the gap between buyers and sellers gradually narrows, with sellers making up most of that difference.

Debt will be the hot investment type in 2009. Investments could be made in CMBS, collateralized debt obligations or funds investing in these assets. Or debt investments could be made at the property level with owners seeking to refinance their properties.

(Downtown Richmond, VA office building, middle right photo)

More equity investments will be made as well in 2009 as investors holding an estimated $300 to $400 billion in institutional, private and offshore equity begin to deploy their capital in response to falling prices.

The outlook is equally challenging for global markets, both developed and emerging. The previous contention that emerging markets would largely escape the financial crises in North America and Europe looks to be overly optimistic.

(Downtown Los Angeles office buildings, middle left photo)

This will not be an ordinary downturn, but rather a structural correction in global capital markets that will impact every sector of the economy and real estate market.

One benefit of the global market correction has been the rapid evaporation of inflationary pressures in most key economies. The decline in inflation has left governments less reticent in using interest rates as a weapon in the battle to stave off sharp economic and commercial decline.

Office Tenants Will Have the Upper Hand in 2009

The office construction pipeline contained 90 million square feet at year-end 2008, the lion’s share of which will be delivered in 2009. This combined with a projected 45 million square feet of negative absorption, including a big jump in sublease space, will push vacancy up by two percentage points to end 2009 at 16.5 percent.

(Bell Atlantic Tower, Philadelphia, PA, middle right photo)

Tenants will have greater negotiating leverage in 2009 with concession packages becoming more generous as the year progresses. The growing inventory of sublease space will put downward pressure on asking rental rates for direct lease space, which are expected to decline in the range of 4 to 5 percent for both Class A and B space by year-end.

“Employment growth drives demand for office space and the labor market will be shrinking in 2009,” said Bach. “Government and health care will be among the few sectors with growing demand for office space.”

In this difficult market, Washington, D.C., should be at the top of office investors’ buy list, according to Grubb & Ellis’ Investment Opportunity Monitor, a proprietary market ranking in which Grubb & Ellis annually measures 60 office, 53 retail, 56 apartment and 55 industrial markets against 13 to 17 criteria important to the performance of real estate investments. Washington, D.C., is the one market that will benefit from the credit crisis as the government expands to implement its economic recovery plan.

(IDS Center, Minneapolis, MN, bottom left photo)

Following Washington, D.C., on the top 10 list are Portland, Ore.; Los Angeles; San Francisco; Austin, Texas; Dallas-Fort Worth; Houston; Raleigh-Durham, N.C.; Boston; and Oakland, Calif. The Texas markets offer strong population growth, while the others offer strong population growth as well as natural barriers to entry.

Industrial Users Strive to Reduce Costs

Businesses look at industrial space as a productivity enhancer, an integral part of their supply chain strategies. Their relentless quest for cost-saving efficiencies should sustain demand for industrial space in 2009, despite the weak economy.

However, supply is expected to outpace demand with absorption dipping into the red and the vacancy rate rising by 60 basis points to end the year at 9.4 percent as the construction pipeline delivers space still underway.

“The industrial market will recover more quickly than the office market because the construction pipeline is set to thin out sooner,” said Bach.

(Comcast Center, Philadelphia, PA, bottom right photo)

For the third consecutive year, the logistics business is driving demand for space in Grubb & Ellis’ Investment Opportunity Monitor’s 2009 rankings. Los Angeles retained the top spot on the list, with its proximity to the busiest ports in the U.S., negligible vacant space and little developable land.

Also making the list were other cities with nearby port facilities including Houston (No. 2), Oakland, Calif., and Seattle (tied for No. 4), Miami (No. 8), Portland, Ore., (No. 9) and New Jersey (No. 10). Inland distributions hubs Atlanta (No. 3), Dallas (No. 6), and Chicago (No. 7) rounded out the list.

Will Consumer Spending Rebound in 2009?

Consumer spending hit a 28-year low in 2008 with retailers in the crosshairs of the downturn. Grocery store-anchored centers in mature trade areas will hold their ground in 2009, while centers on the urban fringe, where housing construction has stalled will suffer.

(Wells-Fargo Center, Minneapolis, MN, bottom left photo)

Retailers will be even more conservative with their expansion plans in 2009, with more store closings and fewer openings. Expect higher vacancies and softer rental rates by year-end.

“Value retailers are garnering the majority of consumers’ dollars in this challenging economic climate,” said Bach. “Even the luxury retailers, which are usually immune to downturns, are feeling the pain.”

According to Grubb & Ellis’ Investment Opportunity Monitor, no retail market will escape the effects of the recession entirely, but some offer more protection due to factors such as strong population growth, a high median income and/or limited land for further development.

Los Angeles topped the list for retail investment followed by Washington, D.C. California had an additional three cities in the top 10 with Orange County (No. 6), San Francisco (No. 7) and San Diego (No. 9). Texas appeared three times with Houston (No. 3), Dallas (No. 4) and Austin, Texas (No. 8). Also making the list were Atlanta (No. 5) and Portland, Ore. (No. 10).

(Capella Tower, Minneapolis, MN, bottom right photo)

Multi Housing Will See Vacancy Rising as Well

The housing slump and recession have produced countervailing forces that will both help and hurt the multifamily market in 2009. Apartments are seeing some new renters who have lost their homes to foreclosure, while landlords are able to maintain existing renters who are waiting for prices and mortgage rates to fall further.

However, new graduates who can’t find jobs are doubling up with a roommate or moving in with a relative to conserve cash.

At the same time, the apartment market faces competition from an increasing supply of unsold condos and foreclosed homes returning to the market as rentals. The negative forces are expected to have a slight edge in 2009 resulting in slowly rising vacancies for the multi housing market this year.

Of the top 10 apartment markets in Grubb & Ellis’ Investment Opportunity Monitor, seven are on the West Coast and three are on the East Coast. All offer barriers to entry, good economic prospects and high home prices. Los Angeles ranks first followed by San Francisco; Orange County and Oakland, Calif.; Washington D.C.; San Diego; New York City; San Jose, Calif.; Long Island, N.Y.; and Portland, Ore.

Editor’s Note: The complete Grubb & Ellis Global Forecast and regional forecasts are available on the Grubb & Ellis Company Web site:
http://www.grubb-ellis.com/.

(6565 Sunset Blvd. Office Building, Los Angeles, bottom left photo)

GRUBB & ELLIS INVESTMENT OPPORTUNITY MONITOR

U.S. Office Market Strength Forecast
Top 10 Markets 2009 – 2013*

United States Overall Score* Rank
Washington, D.C. 74.5-- 1
Portland, Ore. 68.4-- 2
Los Angeles County, Calif. 68.0-- 3
San Francisco 66.5-- 4
Austin, Texas 65.1-- 5
Dallas 63.4-- 6
Houston 62.2 --7
Raleigh-Durham, N.C. 61.5-- 8
Boston 59.9 --9
Oakland/East Bay, Calif. 57.1-- 10

*Markets were ranked from 0 to 100 against 13 property, economic and demographic variables.

(One Liberty Place, Philadelphia, PA, bottom right photo)


U.S. INDUSTRIAL Market Strength Forecast
Top 10 Markets 2009 – 2013*

United States Overall Score* Rank
Los Angeles 78.7-- 1
Houston 75.7-- 2
Atlanta 67.1-- 3
Oakland/East Bay, Calif. 65.8-- 4 (tie)
Seattle 65.8 --4 (tie)
Dallas 62.6 --6
Chicago 60.1-- 7
Miami 56.7-- 8
Portland, Ore. 54.9 --9
New Jersey, No. and Central 54.2-- 10

*Markets were ranked from 0 to 100 against 14 property, economic and demographic variables.

U.S. RETAIL Market Strength Forecast
Top 10 Markets 2009– 2013*

United States Overall Score* Rank
Los Angeles County, Calif. 73.8 --1
Washington, D.C 72.7 --2
Houston 69.7-- 3
Dallas 66.0-- 4
Atlanta 63.9-- 5
Orange County, Calif. 61.2-- 6
San Francisco 61.1-- 7
Austin, Texas 59.2-- 8
San Diego 57.5-- 9
Portland, Ore. 56.1-- 10

*Markets were ranked from 0 to 100 against 17 property, economic and demographic variables.


U.S. Multi housing Market Strength Forecast
Top 10 Markets 2009 – 2013*

United States Overall Score* Rank
Los Angeles 63.9-- 1
San Francisco 61.2-- 2
Orange County, Calif. 57.9-- 3
Oakland/East Bay, Calif. 55.9-- 4
Washington, D.C. 55.7-- 5
San Diego 55.1-- 6
New York City 53.3-- 7
San Jose, Calif. 51.8-- 8
Long Island, N.Y. 49.5-- 9 (tie)
Portland, Ore. 49.5-- 9 (tie)

*Markets were ranked from 0 to 100 against 15 property, economic and demographic variables.

Contact: Janice McDill, Phone: 312.698.6707.

Email: janice.mcdill@grubb-ellis.com

Asia Pacific Hotel Construction Pipeline Overview at Q3

PORTSMOUTH, NH--Lodging Econometrics reports that at the end of Q3 2008, Asia Pacific's Total Construction Pipeline stood at 1,990 projects/466,456 rooms.

(Taj Vivanta, Bangalore, India,, top right photo)

Total project counts are down 8% from the cyclical peak in Q2 2008, with total rooms down 11%.

The Pipeline will continue to contract at an accelerating pace through 2009, particularly as New Project Announcements into the Pipeline are expected to further taper off during the next year.·

In Asia, 62% of all Pipeline projects are already Under Construction due to the rush to get projects started in late 2007-early 2008 before the onset of the lending crisis.

As a result, a record level of New Openings is forecasted through 2010. Of the 309,196 new guestrooms expected though 2010, 302,600 are already in the ground.

In China's Pipeline, Shanghai leads all cities with 104 projects/26,510 rooms.

Macau and Beijing follow with 33 projects/23,027 rooms and 57 projects/13,678 rooms, respectively.

Bangalore accounts for 13% of India's Pipeline with 38 projects/9,429 rooms. Hyderabad follows with 34 projects/7,251 rooms.

Of the seven countries that make up Southeast Asia (Thailand, Vietnam, Indonesia, Malaysia, Philippines, Singapore and Cambodia), Bangkok has the most active market with 36 projects/8,939 rooms.

Jakarta follows with 18 projects/4,163 rooms while Phuket has 20 projects/3,300 rooms.

CONTACT:

Kathleen Hurley, Public Relations Director, Lodging Econometrics, 500 Market Street, Suite 12, Portsmouth, NH 03801, USA. Ph: +1 603-431-8740 ext. 25. Fax: +1 603-431-4418 khurley@lodgingeconometrics.com

West Miami Hotel Joins Doubletree Brand as Doubletree Miami Mart Airport Hotel & Exhibition Center

Hotel Offers Convenient Access to the Miami International Airport,
Sizzling South Beach and More Than 155,000 Square Feet of Meeting& Exhibit Space

BEVERLY HILLS, CA--The Doubletree brand is proud to announce that the Miami Mart Airport Hotel has joined the Doubletree brand’s portfolio and re-opened as the Doubletree Miami Mart Airport Hotel & Exhibition Center.

The 334-room hotel, which is just three miles from Miami International Airport and 20 minutes from the heart of happening Miami, offers complimentary round-trip shuttle service to the airport for hotel guests (24 hours), a great location near all the hottest Miami attractions, and convenient access to premiere meeting space.

Just steps off the lobby, guests can access the Miami International Merchandise Mart, which includes more than 300 stores and show rooms and 155,900 square feet of meeting and exhibit space. The hotel is managed by Davidson Hotel Company, one of the nation’s largest hotel management companies.

“The Doubletree Miami Mart Airport Hotel is a great addition to the Doubletree brand’s portfolio of nearly 200 hotels worldwide,” said Dave Horton, (top left photo) senior vice president – brand management for Doubletree Hotels.

“The hotel’s convenient location makes it a great destination for both leisure and business travelers staying in Miami. Visitors and residents alike will also surely appreciate the elegant, extensive convention space and two ballrooms available, which make the hotel ideal for events ranging from trades shows to weddings.”

General Manager Matt Lahiff (bottom left photo) says, "We are deeply committed to bringing our guests the quality, service and experience that they have to expect from a Davidson Hotel Company-managed hotel and from the Doubletree brand.


"When a guest chooses to stay with us, they will enjoy top-notch, caring service with the best guest reward programs in the industry, along with the signature Doubletree welcome accompanied by a warm chocalte-chip cookie."


For more information on the Doubletree Miami Mart Airport Hotel, visit the hotel’s website at http://www.doubletreemiamimart.com/, or call l-800-222-TREE in the U.S. and Canada or contact the hotel directly at 1-305-261-3800.

CONTACTS:


Thomas Wingham/Erika White, Doubletree Media Relations, 310-205-4545
thomas.wingham@hilton.com, erika.white@hilton.com

Cecilia Orbegozo, Director, Sales & Marketing, Doubletree Miami Mart Airport Hotel, (305) 261-3800, corbegozo@doubletreemiamimart.com

Cambridge Chairman Believes Borrowers Have Stake in Changes Impacting HUD 232 Healthcare Funding Program

CHICAGO, IL--Now that the dynamic administrative changes that have streamlined the way that HUD processes FHA-insured healthcare loan applications under its Section 232 funding program are effectively in place, the federal agency has begun to focus more thoughtfully on what happens after loans are closed and money changes hands.

“In the past, asset management appeared to be little more than an afterthought. However, now that responsibility for managing the HUD 232 program has shifted to the FHA’s Office of Insured Health Care Facilities (OIHCF), the agency is moving rapidly to change this perception,” funding expert Jeffrey A. Davis (top right photo) observes.

Davis is Chairman of Chicago-based Cambridge Realty Capital Companies, one of the nation’s leading senior housing/healthcare lenders with more than 300 closed transactions totaling more than $2.75 billion since the mid-1990s. Over the past 10 years the company has consistently ranked among the top HUD 232 healthcare lenders in the country.

He points out that FHA has adopted the Toyota Motor Corp.’s highly touted Lean management process to simplify and reduce the time it takes to review and process HUD applications.

The administrative shift to OIHCF created a unified single source for program and policy development and a more consistent and user-friendly platform for borrowers and lenders.

“Now OIHCF is rolling out new criteria and establishing new matrices to better manage and monitor the existing loans on their books. The emphasis is on closely monitoring loan assets so problems are identified earlier or avoided altogether,” he said.

A report issued by the agency notes that the asset management function for the HUD 232 program has historically relied on physical paper files. The emphasis has been geared toward regulatory enforcement rather than loss minimization, and little training, guidance or support was provided to the individual asset manager.

All this changes with a 232 program that offers sophisticated electronic systems for tracking asset management files and monitoring program activities.

Moving forward, Davis believes the situation dramatically improves, as OIHCF utilizes Lean production philosophy and techniques in concert with quality assurance criteria established by former U.S. Commerce Secretary Malcolm Baldridge (middle left photo) and enacted into law as the Malcolm Baldridge National Quality Improvement Act of 1987.

“The Baldridge criteria created the impetus for a new public-private partnership based on strategic planning and the establishment of viable quality improvement programs to strengthen the nation’s competitive posture and leadership role. OIHCF has made it clear that the criteria for performance excellence envisioned by Baldridge and improved upon by others will be utilized as part of its ongoing efforts to make meaningful improvements in the way assets are managed for the healthcare funding program,“ he said.

Davis said OIHCF acknowledges that the Lean development and asset management effort greatly depends upon responsible participation by lenders. Account executives are being assigned to lenders with responsibility for development pipeline management, quality assurance, and monitoring and asset management for the lenders’ portfolios.

The account executive’s role is not to underwrite loans but to effectively function as the lender’s advocate and as a quality control officer.

“The changes are important to borrowers because, at the end of the day, everyone involved with the HUD 232 process is a stakeholder in its success. Difficulties arise when loans are not actively monitored.

“From the borrower’s perspective, the changes will mean more active submission of operating financial statements and clinical records, and more frequent visits by consultants representing the lender. For lenders, changes involve learning to apply a new discipline as they become much more involved in the loans they create,” he said.

Contact: Evan Washington, Phone: (312) 521-7603, Fax: (312) 357-1611, E-Mail: ew@cambridgecap.com

Industrial Team at Southern Commercial Completes 18,000-SF Lease in Sanford, FL

ORLANDO, FL-- Principals Tom McFadden, (top right photo) SIOR and William “Bo” Bradford, (top left photo) CCIM, SIOR of Southern Commercial Real Estate Advisors completed an 18,000 square foot new lease at 3830 Enterprise Way, Sanford, Florida in the NorthPark Commerce Center.

NorthPark Commerce Center is a Class A industrial distribution development that will contain 450,000 square feet at completion.

The first two buildings, totaling 120,000 square feet, have been completed and are ready for occupancy.

McFadden and Bradford negotiated the five year new lease, representing the Landlord, McDonald Development. The tenant, Goodman Distribution Inc. was represented by Helen Banks and Jim Barton with Mohr Partners, Inc.

Media Contact: Celeste MacKenzie, Southern Commercial Real Estate Advisors, 321-281-8503, 20 N. Orange Avenue, Suite 605, Orlando, FL 32801, cmackenzie@southercommercialre.com

Refinancing is Name of Game in 2009, Says RECI

CHICAGO, IL, Jan. 2, 2009 - The Real Estate Capital Institute's Capital Scoreboard reports:

The last month of the year ended on a dramatic note as the Fed forced key short-term indices into record-low territory.

Meanwhile, the ongoing shortage of real estate capital dampens any meaningful mortgage rate reductions.

Important market highlights and trends for 2009 are as follows:

* Funds Resurfacing: Select life companies are cautiously returning-- one of the bright spots in an otherwise bleak market. These institutions are primarily targeting highly conservative opportunities and lower-leverage acquisitions.

* Refinancing Reigns: Since the market remains illiquid with sellers and buyers quite far apart on bid-ask sale negotiations, refinancing is the only option for generating significant loan volume.

For example, borrowers with five and ten-year loans due this year should expect to see rates at about identical levels to the marketplace on ten-year maturities as compared to 1999. Five-year maturities are about 150 basis points higher than in 2004.

* Absolute Rates: Due to benchmark rate volatility, most lenders avoid pricing mortgage rates over spreads and instead offer absolute rates.

* Volatile Indices: Overall mortgage rates drifted slightly upwards for shorter-term fixed-rate maturities (five years), as lenders demand a premium for locking into this highly desirable term. In contrast,longer-term benchmark rates dropped by about 20 to 50 basis points, while lenders react cautiously to any corresponding mortgage-rate drops.

* Steep Yield Curve: The treasury curve remains steep with short-term yields approaching zero, indicating an extreme desire for safety void of any principal repayment risk.

Shorter-term indices dramatically plunged by about 75 basis points or more, particularly LIBOR which dropped by nearly150 basis points.

* Dominant Players: The Agencies (FNMA and FreddieMac) overwhelmingly dominate the multifamily lending arena, which is the most active property-funding sector.

The Agencies offer below rates starting below 6%for shorter-term maturities and below 5% for floating-rate debt.

Lifeinsurance companies and banks dominate all other income-property sectors with rates relatively unchanged from the previous month -- hovering in the 6%-plus range for five-year term and 7% or more for longer-term loans.

According to Nat Zvislo, Research Director of the Real Estate Capital Institute, "2009 looks to be a year of refinancing and with limited acquisition activity."

Adding, "Distressed deals will be the norm for most new acquisitions and lenders will be overwhelmed with renegotiating overleveraged debt."

ABOUT US: The Real Estate Capital Institute(r) is a volunteer-based research organization that tracks realty rates data for debt and equity yields. The Institute posts daily and historical benchmark rates including treasuries, bank prime and LIBOR.

Furthermore, call the Real Estate Capital RateLine at7RE-CAPITAL (773-227-4825) for hourly rate updates.

The Real Estate Capital Institute(r), 3517 West Arthington Street, Chicago, Illinois USA 60624

Contact: Nat Zvislo, Research Director, Toll Free 800-994-RECI (7324), director@reci.com

http://www.reci.com/

Houston and St. Louis Only Hotel Bright Spots in Dark December Week

HENDERSONVILLE, TN—Houston and St. Louis were the only gainers among the top 25 hotel markets in the Dec. 21-27 week, according to the most recent analysis by Smith Travel Research of Hendersonville, TN and STR Global of London.

Houston’s occupancy rose 1.2 percent to 35.9 percent, its ADR increased 10.2 percent to US $78.86 and its RevPAR jumped 11.6 percent to US $28.34.

(Cosmopolitan Resort & Casino, Las Vegas, top right photo)

“Houston’s performance is largely attributed to the influx of first responders, insurance agents and construction workers following Hurricane Ike’s landfall in September,” points out Jeff Higley, (middle right photo) director of communications and editorial director in STR’s Digital Media department.

(Sheraton Safari Lake Buena Vista, FL,

middle left photo)

St. Louis saw year-over-year ADR growth for the week (+0.1 percent).

“The week’s results likely were skewed somewhat by the day on which Christmas fell,” notes Higley.

This year, Christmas fell on a Thursday, while in 2007 it fell on a Tuesday.

The U.S. hotel industry experienced steep declines in three key performance measurements during the week of Dec. 21-27.

In year-over-year measurements, the industry’s occupancy fell 16.4 percent to end the week at 35.8 percent (42.8 percent during the comparable week in 2007).

Average daily rate dropped 9.5 percent to finish the week at US$92.49 (US$102.22 in 2007). Revenue per available room for the week decreased 24.3 percent to finish at US$33.13 (US$43.78 in 2007).

Performances within the seven chain-scale segments were off across the board:

• Luxury segment: Occupancy -24.4 percent to 40.5 percent; ADR -14.5 percent to US$310.83; and RevPAR -35.4 percent to US$125.98.

• Upper Upscale segment: Occupancy -19.6 percent to 34.6 percent; ADR -11.6 percent to US$128.53; and RevPAR -28.9 percent to US$44.47.

• Upscale segment: Occupancy -15.0 percent to 34.9 percent; ADR -8.0 percent to US$95.46; and RevPAR -21.7 percent to US$33.27.

• Midscale with Food-and-Beverage segment: Occupancy -17.7 percent to 31.5 percent; ADR -4.1 percent to US $77.64; and RevPAR -21.1 percent to US $24.42.

• Midscale without Food-and-Beverage segment: Occupancy -16.0 percent to 34.6 percent; ADR -3.7 percent to US $78.07; and RevPAR -19.1 percent to US $27.00.

(New Orleans Marriott Hotel, bottom left photo)

• Economy segment: Occupancy -11.2 percent to 36.8 percent; ADR -3.3 percent to US $50.72; and RevPAR -14.1 percent to US $18.65.

• Independents segment: Occupancy -17.2 percent to 38.0 percent; ADR -10.0 percent to US $95.60; and RevPAR -25.5 percent to US $36.31.

“Many of the top 25 markets experienced difficult weeks,” says Higley:

• Three of the markets experienced occupancy rate drops of more than 20 percent: Phoenix, Arizona, -27.5 percent; San Diego, California, -24.4 percent; and Chicago, Illinois, -20.3 percent.

• Five of the markets watched ADR drops of more than 15 percent: Oahu Island, Hawaii, -17.3 percent; Miami-Hialeah, Florida, -17.0 percent; Phoenix, -16.0 percent; New York, New York, -15.3 percent; and Orlando, Florida, -15.2 percent.

• Three of the Top 25 Markets watched as RevPAR declined more than 30 percent for the week: Phoenix, -39.1 percent; San Diego, -33.5 percent; and Miami-Hialeah, -31.7 percent.

Media contact: Jeff Higley, Director of Communications/Editorial Director, Digital Media, jeff@smithtravelresearch.com, +1 (615) 824-8664 ext. 3318

T. Reed Hudson Named Director of Marcus & Millichap Retail Group in Fort Worth, TX

FORT WORTH, TX– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has named T. Reed Hudson (top right photo) a director of the firm’s National Retail Group in Fort Worth, according to Bernard Haddigan, managing director of the firm’s National Retail Group.

Hudson joined Marcus & Millichap in 2004. During his career at Marcus & Millichap, Hudson has closed more than 50 transactions, which were valued at more than $150 million.


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

Marcus & Millichap Sells $54.4M Apartment Community in Vallejo, CA

VALLEJO, CA – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of Blue Rock Village, (top right photo) a 560-unit multi-family community in Vallejo.

The sales price of $54.4 million represented $97,143 per unit.

Stanford Jones, (bottom left photo) an executive vice president and senior director of Marcus & Millichap’s National Multi Housing Group (NMHG) in Palo Alto, and Phil Saglimbeni and Sal Saglimbeni, both senior directors of the firm’s NMHG in Palo Alto, represented the seller, a publicly traded REIT.

Marcus & Millichap also represented the buyer, a San Francisco-based private ownership group.

“While capital markets turmoil has rendered it very difficult for most institutional buyers to successfully acquire assets, well-capitalized private groups will continue to be well positioned given the current environment,” says Jones. “The broker’s ability to source uniquely motivated buyers is paramount to the success of any disposition effort.”

“Even in a challenging market, this transaction is evidence that properly marketed, quality assets will attract strong buyers,” adds Phil Saglimbeni.

Located at 1900-2000 Ascot Parkway, the 448,256-square foot apartment community is situated near the Blue Rock Springs Golf Course and National Park, Six Flags Marine World, historic Mare Island and Old Town Benicia, and world-famous Napa Valley, which is just 11 miles away.

Commuting options include the ferry or bus to San Francisco and easy access to Interstates 80, 780, 680 and California Highways 29 and 37.

Blue Rock Village features a mix of one- and two-bedroom units. Interior amenities include private balcony or patio, functional kitchen layouts, generous walk-in closets and covered parking.

Community amenities include swimming pools and spa, a well-equipped fitness center, picnic areas and gated community living.

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

Starwood Opens 3 Le Meridien-Brand Hotels in China and Thailand

SINGAPORE---Continuing its multi-million-dollar Asia Pacific development surge, Starwood Hotels & Resorts has opened three Le Meridien-brand hotels, totaling 782 rooms, in China and Thailand.

They are the 275-room Le Meridien Shimei Bay Beach Resort & Spa (top right photo) in Wanning City on China’s Hainan Island; the 159-room Le Meridien Chiang Rai Resort (middle left photo) near the Chiang Rai International Airport in Thailand; and the 348-room Le Meridien Chiang Mai (bottom right photo) in the center of Downtown Chiang Mai, Thailand’s dynamic northern capital.

The opening of the three Le Méridien properties highlights the growing development of the brand in Asia Pacific. Le Méridien currently operates 23 hotels in the region, including Le Royal Méridien Shanghai and Le Méridien Cyberport, Hong Kong.

“Le Méridien is proud to broaden its reach in Asia Pacific with the addition of these three stunning properties, where guests can enjoy a unique experience that combines contemporary European refinement with distinct Asian influences curated by Le Meridien’s Cultural Curator and a range of established and emerging innovators, part of LM100,” says Eva Ziegler, (middle right photo) Global Brand Leader, Le Méridien Hotels & Resorts and W Hotels Worldwide.

“A favorite among progressive, curious, open minded and forward-thinking international travelers, Le Méridien facilitates guest discovery of a new perspective of the arts, architecture, design, and cuisine at each of its destinations around the world.

“Hainan Island in China and Chiang Mai and Chiang Rai in northern Thailand will certainly provide fertile ground for this voyage of discovery.”

Miguel Ko, (bottom left photo) President of Starwood Hotels & Resorts, Asia Pacific, says “Chiang Mai and Chiang Rai are both well known for their stunning landscape and rich cultural offerings while Shimei Bay is an unspoiled getaway for travelers to Hainan Island, with spectacular views of the South China Sea, and surrounded by lush forest and rustic Li minority village.

“These locations are a great fit with Le Méridien brand, which is committed to providing guests with an interactive and culturally enriching experience.”

CONTACT:

Hwee-Peng Yeo
Director, Corporate Communications
Starwood Asia Pacific Hotels & Resorts Ltd
9 Temasek Boulevard, Suntec City Tower 2
#24-02, Singapore 038989

Tel : +65 6335 4837; Cell : +65 9768 6087; +65 9248 0424
Fax : +65 6335 4820
http://www.starwoodhotels.com/; http://www.starwoodpressclub.com/

Marcus & Millichap Capital Corp. Arranges $3.4M Loan for Van Nuys, CA Medical Plaza

VAN NUYS, CA, Dec. 31, 2008 – Marcus & Millichap Capital Corporation (MMCC) has arranged a $3.4 million fixed-rate loan for the acquisition of Haynes Medical Plaza, an office and medical center located at 14550 Haynes Street in Van Nuys.

Sharone Sabar, an associate director in the firm’s Encino office, arranged the financing package for Haynes Medical Plaza.

“The borrower attempted to secure financing with two other lenders and was not successful,” says Sabar. “MMCC was able to secure an extremely high-leverage, owner-occupied Small Business Administration loan.”

“In addition, the property’s income did not support the loan amount requested,” adds Sabar. “MMCC was able to convince the lender that the borrower’s overall cash flow, including his business and other investments, supported the loan amount the borrower needed to close the transaction.”

Financing for this transaction was provided by the Small Business Administration at a 6.39 percent fixed rate. Terms of the loan are for 10 years with a 10-year amortization schedule. Loan-to-value was 88 percent.

“MMCC added value to the transaction by securing high-leverage financing with a low, long-term fixed-interest rate, and by closing the transaction before the deadline,” notes Sabar.

Press Contact: Kathy Molitor, Marcus & Millichap Capital Corporation, (925) 953-1704

Cushman & Wakefield negotiates sale of Palm Lake Apts. in Tampa, FL for $6.7M

TAMPA, FL, Dec,31, 2008 – Cushman & Wakefield’s Florida Apartment Brokerage Services with apartment specialists in Tampa, Orlando, Ft. Lauderdale and Miami, announces the sale of Palm Lake (top right photo) for $6,700,000.

The purchaser was Blackhawk Realty Advisors.

Executive Director Byron Moger (top left photo) and Director Luis Elorza (middle right photo) negotiated the sale on behalf of the owners, AIMCO.

Palm Lake, located at 13401 North 50th St. in Tampa, Florida was built in 1972. It is a 153,700 square foot, 150-unit apartment community that offers a mix of 1, 2 and 4 bedrooms. Palm Lake features a swimming pool with sundeck, two-story clubhouse and a business center.

“Palm Lake’s location on Fletcher Avenue, just across the street from the north-east corner of the main USF campus, gives residents excellent access to USF, the University Mall and several major medical centers. The property has outstanding value-add potential,” said Luis Elorza of Cushman & Wakefield, Inc.

To view our current multifamily listings, please visit http://www.apartments.cushwake.com/ or contact:
CUSHMAN & WAKEFIELD CONTACT: Byron Moger, Executive Director, Cushman & Wakefield, Inc., 813.204.5316 byron.moger@cushwake.com