ProLogis Announces Leasing Activity in Louisville

Transactions Bring ProLogis' Leased Percentage in Market to 97 Percent

LOUISVILLE, KY /PRNewswire-FirstCall/ -- ProLogis (NYSE:PLD), a leading global provider of distribution facilities, announces the completion of four transactions in Louisville, bringing its overall leased percentage in the market to 97 percent.

"We are pleased to announce significant leasing activity in Louisville," said Darin Manning, first vice president and market officer for ProLogis.

"The market is an attractive choice for our customers due to its availability of labor and strategic location in the Midwest along Interstates 65 and 71.

And, Louisville is home to the UPS Worldport Facility, which enables businesses to offer expedited shipping options to their customers.

"In early January, ProLogis signed a new lease agreement totaling 273,000 square feet of recently completed distribution space to a leading pharmaceutical services provider at ProLogis Park 65. (top right photo)

The park comprises 1.2 million square feet in two buildings and is located off Interstate 65 in Brooks, Kentucky, approximately 14 miles south of Louisville. With this transaction, the park is now fully occupied.

Additional ProLogis leasing activity in Louisville includes three lease agreements for previously occupied space.

Customers include: -- APL Logistics, a leading third-party logistics provider, which expanded into an additional 167,000 square feet with a new lease agreement at ProLogis Park Cedar Grove, (top left photo) located in Shepherdsville, Kentucky at the intersection of Interstate 65 and KY 480.

APL now occupies the entire space in building two at the park, totaling 382,800 square feet. This transaction marks the 22nd between the two companies. APL now occupies approximately 5.6 million square feet with ProLogis worldwide;

-- A leading industrial controls manufacturer, which leased 300,000 square feet at Riverport Distribution Center Building III. The park is located near the intersection of the Greenbelt Highway and Freeport Drive in the Jefferson Riverport International master-plans industrial park; (middle right photo)--

A third-party logistics provider specializing in the pharmaceutical industry, which leased 273,000 square feet at ProLogis Park I-65.

The distribution park is located off Interstate 65 approximately 12 miles south of Louisville in Brooks, Kentucky.

ProLogis entered Louisville in 1995 and is the largest provider of bulk distribution space in the market with 5.5 million square feet in 17 buildings. Additional customers in the area include Exel Logistics, Kellogg's and Master Lock Company.

CONTACTS:

media, Mo Sheahan of ProLogis, +1-303-567-5434, msheahan@prologis.com;

or Suzanne Dawson of Linden Alschuler & Kaplan, Inc.,+1-212-329-1420, sdawson@lakpr.com,

for ProLogis;

or investors, Melissa Marsden of ProLogis, +1-303-567-5622, mmarsden@prologis.com

Web Site: http://www.prologis.com/

CB Richard Ellis Completes Sale Transaction for 24,700-SF Office Building in Orlando Executive Center

ORLANDO, FL– Feb. 5, 2009 – The Orlando office of CB Richard Ellis is pleased to announce that Nan McCormick, (middle right photo) Senior Vice President, represented the owner in the sale of 2550 Technology Drive (top left photo) in Orlando, Florida.

The 24,700 square foot office building is situated on approximately 6.5 acres and includes 4.5 acres of land for additional expansion.

The sale price was $5.55 million. The purchaser, The United Mexican States, through the Consulate of Mexico in Orlando, was represented by John Hussey, President of RealTrend, Inc.

The Class A, two-story office building, which is located at the intersection of John Young Parkway and Technology Drive in Orlando Executive Center, was completed in 2008.

The seller was The 2580 Technology Drive, LLC. The United Mexican States will utilize the facility as the new Orlando Consulate's office.

Contact: Angelique Greven, 407.839.3158, angelique.greven@cbre.com

Marcus & Millichap's Manhattan Office Closes $73M in Key Real Estate Transactions

Sales volume remains strong as the capital markets continue to tighten

NEW YORK, N.Y. – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, announced that its Manhattan office recently closed $73.1 million in major commercial real estate transactions, even as sales velocity nationwide continues to decline, according to Edward Jordan, (top right photo) regional manager of Marcus & Millichap’s Manhattan office.

“Despite the upheaval in the nation’s financial markets, Marcus & Millichap’s Manhattan office recently executed multiple large transactions that signify our unique ability to add value to investors in the New York Metropolitan marketplace,” says Jordan.

The transactions included 150 West 83rd St., a 30,848-square foot parking garage (Central Parking System) in the heart of the Upper West Side. The property’s sales price of $21.5 million represented $697 per square foot.

Barry Kimchy, a senior associate in the Manhattan office, managed the exclusive marketing process on behalf of the seller.

Another significant sale was 355 Seventh Ave., a 14,320-square foot three-story mixed-use building located one block from Penn Station and Madison Square Garden. The $17.375 million sales price represented $1,213 per square foot.

Kimchy and investment specialist Christopher Sjurset represented the seller. Investment specialists Ross Mezzo and Benjamin Bottner, also in Manhattan, represented the buyer.

The Manhattan office also negotiated the sales of 37 Kenmare St., 240 West 38th St., 1961-1967 Amsterdam Ave. , 150 West 84th St., 2722 Eighth Ave., 493 Second Ave. and 131 West 80th St.

Brokers in these transactions were Peter Von Der Ahe, (bottom left photo) vice president investments and senior director of the firm’s National Multi Housing Group, senior associate Stephen Matri, multi-family investment specialists Joe Koicim and Sjurset, and investment specialist Scott Edelstein, in Manhattan.

Ben Sgambati, an associate vice president investments and director of Marcus & Millichap’s Net Leased Properties Group and Jin Lee, a retail investment specialist, both in the firm’s New Jersey office, participated in these closings as well.

By providing investors with real-time market information and unparalleled access to a nationwide pool of investment capital, Marcus & Millichap will continue to arrange transactions on behalf of private and institutional investors through every market cycle.

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

Grubb & Ellis Promotes Piers Chance to Vice President, Director of Management Services for North and Central Texas

DALLAS, TX – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, announce that Piers Chance, (top right photo) CPM, has been promoted to vice president, director of management services for North and Central Texas.

In his new position, Chance will oversee and direct the property and facility management operations of the company in and around Dallas-Fort Worth, Austin and San Antonio.

“Piers is one of the most highly respected real estate professionals in Texas,” said Moody Younger, executive managing director of Grubb & Ellis’ Texas operations. “With more than 30 years of experience developing, organizing and directing teams to effectively lease and manage commercial real estate, he is a tremendous asset to our clients and our people.”

Chance joined the company in May 2008 as assistant vice president and portfolio manager.

Prior to joining Grubb & Ellis, he was a senior property manager with The Koll Company in Dallas, where he was responsible for all property management, construction and financial reporting for an approximately one million square foot portfolio of commercial properties.

Previously, Chance served as a portfolio and senior property manager for both CB Richard Ellis and Trammel Crow Company, as well as a regional manager for Lincoln Property Company.

Contact: Damon Elder Phone: 714.975.2659Email: damon.elder@grubb-ellis.com

Hilton chooses Virginia for new HQ

BEVERLY HILLS, CA – Hilton Hotels Corporation (Hilton) announced that as part of its previously announced corporate headquarters relocation from Beverly Hills, California (middle left photo) to the greater Washington, DC area, the company has chosen Fairfax County, Virginia as its new home.

Hilton is currently negotiating with prospective landlords in Fairfax County and will announce a site as soon as a lease is finalized.

The relocation, which will significantly reduce the company’s operating expenses, is part of Hilton’s ongoing business reorganization and follows a thorough review of Hilton’s major corporate locations.

Potential locations in the greater Washington, DC metropolitan area were evaluated against multiple criteria, including costs and suitability of available commercial space.

“We are pleased to announce that our global headquarters will be located in Fairfax County, Virginia, and are grateful to the Commonwealth and County for their efforts to create such compelling economic incentives for Hilton,” said Christopher J. Nassetta, (top right photo) President and Chief Executive Officer of Hilton Hotels Corporation.

“We are confident that being based in this location will allow us to be more effective and efficient as an organization, and will provide a high quality of life for our team members.

"We look forward to continuing Hilton’s tradition of community engagement in our new location.”

Nassetta added, “We would also like to thank the State of Maryland and the District of Columbia for their efforts during our selection process. Both Maryland and the District have many positive attributes and are desirable locations for the headquarters of global companies.”

Hilton will invest at least $17 million in the move and create more than 300 permanent, full-time jobs in Fairfax County within the next 36 months.

The comprehensive incentive program for the relocation to the Commonwealth of Virginia and Fairfax County totals $4.6 million in cash grants and other significant incentives. The company also qualifies for a Major Business Facility Job Tax Credit.

Contacts:

Ellen Gonda (ellen.gonda@hilton.com) 310-205-7676 Hilton Hotels Corporation
Gemma Hart (ghart@brunswickgroup.com) 212-333-3810 Brunswick Group

The Lakes at Vinings in Georgia Up for Sale at $34M

ATLANTA, GA-- Engler Financial Group presents The Lakes at Vinings, (top right photo) a 464-unit garden-style apartment community located in the heart of historic downtown Vinings, Atlanta, Georgia.

The Lakes at Vinings is offered at $34,000,000 and represents an exceptional “value add” and/or redevelopment opportunity in one of Atlanta’s most affluent and desirable neighborhoods.

The Lakes at Vinings offers an unparalleled location in the heart of historic downtown Vinings, one of Atlanta’s most charming and upscale neighborhoods.

Demographics within a one-mile radius of The Lakes at Vinings are some of Atlanta’s highest with an average household income of $92,619 per year and an average home value of $430,702.

All major office submarkets including Downtown (18.0 msf), Midtown (13.0 msf), Cumberland Galleria (18.0 msf), Buckhead (13.1 msf), and Central Perimeter (21.6 msf) are within a 15-minute commute of Vinings.

Adjacent to The Lakes at Vinings site, Wood Partners and The Columns Group are building Vinings Main, a 16-acre mixed-use development that includes 229 residential units ($300,000 - $1 million+), 30,000 square feet of office, and 20,000 square feet of retail.

Kairos Development is building Avignon at Vinings a 172-unit development of condos, townhomes, and single family homes with prices from $375,000 to over $1.25 million.
TAZ Anderson Realty is under construction on a 55 unit hi-rise condominium development adjacent to Lakes at Vinings.

Prices for the development are well in excess of $1 million.
One Vinings Mountain, an upscale 156-unit high-rise condominium recently sold out at prices ranging from $300,000 to over $1.8 million.

If you have any questions or would like to schedule a tour of The Lakes at Vinings, please contact

Greg Engler, CEO/President, 678/992-2000, ext. 1, gengler@efgus.com
Pat Jones, Senior Vice President, 678/992-2000, ext. 2, pjones@efgus.com
Kris Mikkelsen, Senior Associate, 678/992-2000, ext. 4, kmikkelsen@efgus.com

Regency Centers Reports Preliminary Fourth Quarter & Year End Results

JACKSONVILLE, FL--(BUSINESS WIRE)-- Regency Centers Corporation (NYSE:REG) announced preliminary financial and operating results for the quarter and year ended December 31, 2008.

Funds From Operations (FFO) for the fourth quarter was $50.8 million, or $0.72 per diluted share, compared to $81.2 million and $1.16 per diluted share for the same period in 2007.

For the year ended December 31, 2008, FFO was $263.8 million, or $3.75 per diluted share, compared to $293.9 million or $4.20 per diluted share for the same period in 2007.

The decline in FFO was primarily due to impairment charges and an increase in the write-off of dead deal costs as well as a lower level of development gains in 2008.

Excluding the impacts of impairments and dead deal costs, FFO per share would have been $4.47 per share, or 6.4% higher than 2007.

Regency reports FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (NAREIT) as a supplemental earnings measure. The Company considers this a meaningful performance measurement in the Real Estate Investment Trust industry.

Net income for common stockholders for the quarter was $16.0 million, or $0.23 per diluted share, compared to $50.6 million and $0.72 per diluted share for the same period in 2007.

Net income for the year ended December 31, 2008 was $129.2 million or $1.84 per diluted share, compared to $184.0 million and $2.65 per diluted share for the same period in 2007.

These results are preliminary, unaudited results and are subject to revision pending the resolution of the timing of gains on properties previously sold to co-investment partnerships, an accounting question described below which has recently been identified in connection with the pending liquidation of two of these co-investment partnerships during the first quarter of 2009.
\

Martin E. (Hap) Stern Jr. (top right photo), is chairman and CEO of Regency Centers Corp.

For a complete copy of the company's news release and financials, please contact Regency Centers Corp., Jacksonville. FL, Lisa Palmer, 904-598-7636, www.RegencyCenters.com

HEI Hotels & Resorts Looks to Deploy $1.5B for Hotel Acquisitions in 2009

Company Sees More Properties Coming On Market as Year Progresses

NORWALK, CT, Feb. 5, 2009–Officials of HEI Hotels & Resorts, the nation’s fastest growing private owner/operator of hotel real estate, today announced plans to deploy up to $1.5 billion from its third fund, HEI Hospitality Fund III, L.P., during 2009.

The fully discretionary fund has approximately $500 million in equity, and intends to acquire or develop between $1.5 billion and $2 billion in hotels and resorts over the next two years.

“We continue to actively seek hotels for our portfolio of full-service, upper-upscale hotels in areas with high barriers to new development,” said Steve Mendell, (top right photo) HEI’s executive vice president of acquisitions and development.

“For the first time in about 16 months, we are beginning to see hotel prices come in line with market expectations as the expectation gap narrows between buyers and sellers.

"We expect this trend to continue, with prices becoming even more attractive as the year progresses.

"Since we do have dry powder, we expect to be at the forefront of the acquisition wave, which we expect to begin in the near future.

"Cash always is king in this part of the real estate cycle, which we believe will give us a competitive advantage, coupled with our ability to innovatively structure transactions and our track record of closing quickly at an agreed-upon price.”

The new fund will target full-service, upper-upscale and luxury hotels, resorts and premium select-service hotels in the U.S., Canada and the Caribbean affiliated with established leading brands.

Desired locations include downtown central business districts (CBDs) in urban, premium suburban and airport sites.

HEI also remains focused on complementing its property portfolio with independent upper-upscale and resort properties located in strong markets and select “takeout” opportunities to buy hotels upon completion of construction from third-party developers.

About HEI Hotels & Resorts

HEI Hotels & Resorts, headquartered in Norwalk, Conn., is a leading hospitality investment firm that acquires, develops, owns and operates full-service, upper-upscale and luxury hotels and resorts throughout the United States under such well-known brand names as Marriott, Sheraton, Westin, Le Meridien, Embassy Suites, and Hilton.

For more information about HEI, visit the company’s website, http://www.heihotels.com/.

CONTACTS:

Julie Tullbane, Daly Gray Public Relations, T 703-435-6293, F 703-435-6297, julie@dalygray.com

Jess Petitt, HEI Hotels & Resorts, 203-849-2228, jpetitt@heihotels.com

Terranova Signs DHL Global Mail to $3.2M Lease at Weston Corporate Centre

WESTON, FL – Feb. 4, 2009 – Terranova Corporation is proud to announce that DHL Global Mail, the second largest mail service provider in the U.S., has signed an office lease at Weston Corporate Centre (top right photo) in Weston, Fla., where the international company will establish its North American headquarters.

Terranova senior commercial associate Gordon Messinger represented the landlord in the 20,749 square foot transaction, valued at over $3.2 million. Weston Corporate Centre is located at 2700 South Commerce Parkway in Weston’s business district.

“DHL’s commitment underlines the prestige of this office property, considering that right now it is a tenants’ market for office space,” Messinger said. “DHL could have had its pick, and it chose Weston Corporate Centre because of its many strengths.”

DHL Global Mail is the second largest mail service provider on the U.S. market after the United States Postal Service.

A subsidiary of Deutsche Post World Net, the world’s leading logistics group, DHL Global Mail is the conglomerate’s one-stop shop for all international mail services.

DHL Global Mail offers its customers direct connections to more than 200 countries. The company has over 4,000 employees and operates sales offices and production sites in Europe, Asia and Australia as well as North and South America.

CONTACT:
Karen LaFleur, Marketing/PR Manager, Terranova Corp., 305 779 8908, klafleur@terranovacorp.com

Marcus & Millichap Lists $28.5M Regional Shopping Center in Columbia, SC

COLUMBIA, SC, Feb.4, 2009 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has retained the exclusive listing for Midtown at Forest Acres, (top right photo) a 690,594-square foot shopping center in Columbia.

The listing price of $28.5 million represents $41 per square foot.

Bill Kohlhepp, (middle left photo) a senior associate in Marcus & Millichap’s Fort Lauderdale office, is representing the seller, a Florida-based investment group.

“Midtown at Forest Acres is a perfect opportunity for an investor who is looking for a value-add asset to remodel, reposition or redevelop to conform to the demands of today’s shoppers,” says Kohlhepp. “Also, for the right investor, the seller will consider taking back a first mortgage.”

Located at 3400 Forest Drive, just outside downtown Columbia, the property is approximately three miles from the flagship campus of the University of South Carolina and from Fort Jackson, the United States Army’s largest training center.

Midtown at Forest Acres was developed in 1988 as an approximately 900,000-square foot enclosed shopping mall. The mall’s current 690,594 square feet of owned space is operating at approximately 61 percent occupancy with strong credit tenants, including Belk, Barnes & Noble, Foot Locker and Regal Cinemas.

Midtown at Forest Acres’ value is solidly supported by its 2,790-space parking garage, a significant amenity in a high-density area with significant barriers to entry.

Current rents at the shopping mall are well below market rate.

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

Napasorn East Restaurant to Open at Downtown Avalon Park, East Orlando, in April

ORLANDO, FL - Napasorn East, modeled after the highly successful Napasorn restaurant (top right photo) in downtown Orlando, is coming to downtown Avalon Park.

Brendon Dedekind, (bottom left photo) director of leasing and business development for Avalon Park Group, developers of Avalon Park community in east Orlando, said the new Napasorn East restaurant is the third restaurant opened by Napasorn Wutitanarudt and will be a great addition to the numerous dining selections already available in Avalon Park.

Remodeling work in the 2,500 square foot restaurant space, formerly occupied by Toscana’s restaurant on Founder’s Square in downtown Avalon Park, will proceed immediately.

Napasorn East Restaurant plans to open in early April 2009, Dedekind said.

“Napasorn is an exciting addition to our downtown and continues to show the high level of interest in our live, learn, work and play concept,” Dedekind said.

For more information about this release, contact:

Brendon Dedekind, Director of Leasing/Business Development, Avalon Park Group Management Inc., 407-658-6565;

Stephanie Hodson, Marketing Coordinator, Avalon Park Group, 407-658-6565;

Beat Kahli, Owner/Founder, Avalon Park Group; 407-658-6565

Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142

ORLANDO, FL—Feb. 4, 2009— Thomas D. Wood and Company, a Strategic Alliance Mortgage LLC member, secured financing in the amount of $2,125,000 for Kirkman Family Dollar and Westgate Mobile Home Manor.(top right photo).

John Worrell, Company Assistant Vice President, financed Kirkman Family Dollar through Thomas D. Wood and Company’s relationship with a regional bank in the amount of $1,300,000.

The construction/permanent loan has a five-year term, based on a 25-year amortization, with 16 months interest-only during the construction period.

The interest rate is 7% during construction and 7.5% for the permanent loan. Loan-to-value is 65% and loan-to-cost is 55%. The 9,180 square-foot single-tenant retail building will be built on 1.6 acres on the west side of South Kirkman Road, just north of Old Winter Garden Road in Orlando, Florida.

Jeff Schnupp, Company Vice President, financed Westgate Mobile Home Manor through Thomas D. Wood and Company’s relationship with a community bank in the amount of $825,000.

The loan has a three-year term, based on a 25-year amortization and an interest rate of 7%. The loan-to-value is 75%. The mobile home park was built in 1984, and sits on 3.46 acres at 7499 1/2 46th Street, St. Petersburg, Florida.

For further information, please contact:
John Worrell, (407) 937-0470, jworrell@tdwood.com

Jeff Schnupp, (407) 937-0470. jschnupp@tdwood.com

Jessica Gurtowski, (407) 937-0470, jgurtowski@tdwood.com

IDI Leases 81,000 SF to DIRTT Environmental Solutions

Calgary, Alberta-based maker of sustainable wall and floor systems to establish its first U.S. manufacturing facility in Savannah at Crossroads Business Park.

SAVANNAH, GA., Feb. 04, 2009 – IDI, a full-service industrial real estate company, has closed a 10-year, 81,000-square-foot lease in Savannah, Ga., with DIRTT Environmental Solutions, a manufacturer of walls and access floors.

The Calgary, Alberta-based company plans to open its first U.S. manufacturing plant at 155 Knowlton Way (top right photo) in spring 2009. 155 Knowlton Way is a 241,380-square-foot, state-of-the art industrial facility located in Crossroads Business Center, adjacent to Interstate 95 and the Savannah/Hilton Head International Airport.

DIRTT joins Gulfstream Aerospace Corp., which occupies 141 Knowlton Way, as IDI’s second tenant at Crossroads Business Center.

“IDI is proud to provide this innovative and environmentally conscious company the space it requires for its expansion into the U.S.,” said Sean Fitzsimmons, vice president of National Business Development for IDI.

Tom Beebe and Robert Hutson of CB Richard Ellis represented DIRTT in the lease negotiations, and Cliff Dales of Colliers Neely Dales was the listing broker for the property.

The facility will provide DIRTT an East Coast assembly plant to complement its existing manufacturing facility in Calgary.

“By setting up in Savannah, we are much closer to the eastern cities where several key clients are based, and we can take advantage of existing rail lines for delivery,” said Mogens Smed, (top left photo) CEO of DIRTT.

DIRTT joins several high-profile tenants at Crossroads Business Center, including The Home Depot, Pier 1 Imports, Lowes, Gulfstream Aerospace, Georgia Tech Engineering and Technology Campus, and Dollar Tree Stores.

The 241,380-square-foot 155 Knowlton Way rear-load facility features 30-foot clear heights, 54-foot by 50-foot column spacing, early suppression fast response (ESFR) sprinklers, and ample car and trailer parking.

With the lease signing, 160,380 square feet is available for lease in the facility. At its neighboring 187,890-square-foot 141 Knowlton Way building, IDI has 75,000 square feet available for lease.

CONTACTS:

Kim Hardcastle, Jackson Spalding for IDI, 404-214-0693, khardcastle@jacksonspalding.com

Charlotte Marie DuPre, Jackson Spalding for IDI, 404-214-0693, cdupre@jacksonspalding.com

Grubb & Ellis Company Promotes Jason Stewart and Rick O’Brien to Senior Vice President

PITTSBURGH, PA (Feb. 4, 2009) – Grubb & Ellis Company (NYSE:GBE), a leading real estate services and investment firm, today announced it has promoted Jason Stewart (middle left photo) to senior vice president, Office Group, and Rick O’Brien, (top right photo) CPA, SIOR, to senior vice president, Industrial Group. The promotions recognize their levels of production and contributions to the company.

“Jason and Rick have completed some of the most important recent transactions in this market,” said Duke Kingsley, executive vice president, managing director of the company’s Pittsburgh office. “Combined with attentive and responsible client service, their performance makes them huge contributors to our success.”

Stewart joined Grubb & Ellis in 1995 and specializes in the Pittsburgh central business district and suburban office markets. In 2008, Stewart was awarded the President’s Council designation by Grubb & Ellis for outstanding production and leadership.

O’Brien has been with Grubb & Ellis since 2000 and specializes in industrial leasing and sales. He is a member of the Grubb & Ellis Industrial Council and the Logistics Group Specialty Council.

Contact: Erin Mays, Phone: 312.698.6735. Email: erin.mays@grubb-ellis.com

Industry Veteran Steve Rahe Joins Grubb & Ellis Company from CB Richard Ellis

DENVER, CO (Feb. 04, 2009) – Grubb & Ellis Company (NYSE: GBE), a leading provider of integrated real estate services, today announced that 23-year commercial real estate veteran Steve Rahe has joined its Denver office as senior vice president, Investment Services. He will specialize in multifamily property sales.

“Steve exemplifies the kind of individual Grubb & Ellis prizes,” said Mark Ballenger, executive vice president, managing director of the company’s Denver office. “He is an experienced real estate professional with a lengthy and successful career who enjoys a reputation for integrity and exceptional client service.”

Rahe joins Grubb & Ellis from CB Richard Ellis, where he had spent the entirety of his professional real estate career and served as a first vice president focusing on the sale of apartment communities throughout the state of Colorado.

Contact: Damon Elder, Phone: 714.975.2659 Email: damon.elder@grubb-ellis.com

Orlando Multifamily Sales Down but Buyers Still Show Strong Interest, CBRE Reports

ORLANDO, FL-Fundamentals in the metro Orlando multifamily rental market were largely unchanged in 2008, and although they were several points off the highs seen during 2005, the market remains poised for an expected recovery in late 2009 and early 2010, reports Shelton D. Granade Jr., (top right photo) first vice president, investment properties and multi-housing, CB Richard Ellis.

Market highlights:

PROJECTIONS FOR CENTRAL FLORIDA

• Buyers will continue to show strong interest in Orlando multi-family assets due to price declines and projected fundamental improvement

• The following submarkets are projected to outperform the MSA: Altamonte Springs/Longwood, SW Orange County, Winter Park/Maitland, Winter Springs/Casselberry

• New construction is projected to be limited over the next few years, due to the scarcity of multi-family zoned sites, the increase of impact fees and a cautious lending environment

• Condo to apartment “reversions” are largely absorbed from a rental standpoint, which should help boost fundamentals in the second half of 2009

• Fannie Mae and Freddie Mac will continue to be the only choice in financing moving forward until early 2010

• Demand will be very high for attractive assumable debt

• Demand for rental units will exceed the supply of new units under construction

• Rent and occupancy will stay relatively flat until mid-2009, but will increase consistently thereafter through 2013

• Bank owned sales of failed condo conversions will increase in 2009

• Cap rates are likely to increase by mid 2009

• Orlando is poised for strong rent growth in the latter part of 2009 and early 2010.

NEW CONSTRUCTION ACTIVITY

• Orlando’s total rental pool is about 141,000 units
• Only a modest 2,722 market-rate rental units will be delivered in 2009
• Orlando will see less than 1,700 units delivered in 2010
• Orlando averaged over 10,000 new units annually from 1999 to 2002
• Almost all the deliveries will be in the first 3 months of 2009
• Loans for new MF construction are very difficult to obtain in today’s capital markets
• Orlando’s rental stock decreased by an average of 2.7% annually during the past five years due to condo conversions
• Although about 8,000 rental units intended for condo conversion came back into the local rental pool, Orlando’s overall apartment supply is down 10,000 units since 2004
• Demand for new rentals remains strong, but new construction continues to slow due to the challenging lending environment, high impact fees, and a lack of infill sites with school capacity

• 3,351 new rental units were completed during 2008
• Multifamily permits in the 3rd quarter time frame registered at just 663 units, down
63% from the 3rd quarter of 2007
• Impact fees are approximately $7,500 - $11,500 per unit in Central FL counties

(Post Lake at Baldwin Park apartments, middle left photo)

ORLANDO SALES STATISTICS FOR 2008

• About 7,398 apartment units in Orlando sold in 2008 for a value of approximately $599 million, down about 43% from one year ago
• Nationally, multi-housing sales were down nearly 60% from 2007
• Orlando was the most active apartment sales market in Florida
• The sales decrease is primarily due to a continued disconnect in the bid/ask spread
• Cap rates did increase approximately 100 bps over the last half of the year due to
continued turmoil in the capital markets and the lagging national economy
• Underwriting has become much more conservative with regards to capital structure,
cash flow, and exit assumptions.
• The 3rd Qtr of 2008 was the most active in terms of local apartment sales, seeing
$267 million in multi-family transactions from July - Sept
• The most active buyers continued to be private equity groups
• Most buyers are receiving financing from Fannie Mae and Freddie Mac.
• Approximately seven REO and failed condo conversions were sold during 2008

CONTACTS:
Shelton Granade, First Vice President, Investment Properties-Multihousing. PH 407 839 3103. FX 407 404 5001. shelton.granade@cbre.com

Luke Wickham, (bottom left photo), Director of Operations, PH 407 839 3103. FX 407 404 5001. luke.wickham@cbre.com.