Columbus Retail Sector Outperforms Other Ohio Metros

COLUMBUS, OH, June 1, 2009 — In the first quarter, Columbus continued to affirm its stature as the top-performing retail market among the state’s three primary metro areas, according to a second-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

(Downtown Columbus, top right photo)

Positive net absorption was posted in Columbus during that time, while retailers in Cincinnati and Cleveland gave back space.

“While fundamentals have been fairly stable, investment activity is subdued,” says Michael Glass, (middle left photo) regional manager of the Columbus office of Marcus & Millichap.

“Despite the current slowdown, the market’s status as a growing Midwestern metro with a diverse employment base and high incomes will generate interest once the economy stabilizes.”

Following are some of the most significant aspects of the Columbus Retail Research Report:

· Employers in Columbus are forecast to cut 19,000 workers this year, a 2 percent decrease. In 2008, 13,400 positions were eliminated in the market. The projected decline in employment will put pressure on incomes and contribute to a drop in retail spending of approximately 5 percent.

· Builders will deliver 500,000 square feet of space in 2009, down from 750,000 square feet last year. Projects scheduled for completion will expand retail property stock 0.5 percent. Overall, stock will decrease with the demolition of City Center Mall in the second quarter.

· The vacancy rate is expected to decline 110 basis points in 2009 to 10.1 percent as a result of stock removal.

· This year, asking rents are expected to fall 2.1 percent to $12.35 per square foot, and effective rents are forecast to slip 3.9 percent to $10.52 per square foot. In 2008, asking and effective rents declined 0.2 percent and 1.1 percent, respectively.

For a copy of the complete Columbus Retail 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

HFF secures $6.4M financing for Long Beach, CA multifamily community

LOS ANGELES, CA – The Los Angeles office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has secured $6.4 million in financing for Esther Ridge Apartments, a 78-unit multifamily community in Long Beach, California.

Working on behalf of Westland Industries Group, HFF managing director Mark Wintner (top left photo) placed the 10-year, fixed-rate loan with Wachovia Multifamily Capital, Inc. – FNMA (Fannie Mae).

Westland Industries Group is a diversified real estate development and management organization headquartered in Long Beach, California.

Esther Ridge Apartments is located at 630-800 East Esther Avenue close to the Long Beach and San Diego Freeways in Long Beach.

The 100 percent occupied property has 20 one-bedroom/one-bath units averaging 525 square feet each, 40 two-bedroom/one-bath units averaging 750 square feet each, eight two-bedroom/two-bath units averaging 832 square feet each and 10 three-bedroom/one-bath units averaging 880 square feet each.

“This is the first loan with Wachovia’s Multifamily Capital and Westland. Wachovia was able to aggressively underwrite the asset and provide 77 percent loan-to-value at a rate of 5.53 percent fixed for 10 years,” said Wintner.

Contacts:

Mark Wintner, HFF Managing Director, 310 407 2100, mwintern@hfflp.com

Kristen Murphy, HFF Associate Director, Marketing, 713 852 3500, kmurphy@hfflp.com

Wyndham Hotel Group Appoints International Business Leaders

PARSIPPANY, N.J. (June 1, 2009) – Wyndham Hotel Group, the world’s largest hotel company with approximately 7,000 hotels around the world, today announced the appointments of hospitality industry leaders Ken Greene (top right photo) and Michael Poynter to oversee the company’s efforts outside of the Americas, further exemplifying the Hotel Group’s commitment to its portfolio in Europe, the Middle East and Africa (EMEA) and Asia Pacific (APAC).

As of March 31st, 2009, the company has a combined total of nearly 500 hotels across both regions. In the past year, Wyndham Hotel Group opened 78 additional hotels, including 23 hotels in EMEA and 55 hotels in the APAC region.

“Strategic global growth and operational excellence are top priorities for Wyndham Hotel Group and therefore, we are committed to appointing the best and most talented leaders who will continue to build our business and help ensure that our stakeholders want to be with us and stay with us,” said Eric Danziger, (top left photo) Wyndham Hotel Group president and chief executive officer.

“The experience, dedication and passion that Ken and Michael bring to our global operations are what our company and brands need to flourish.”

Greene will serve as president and managing director for the APAC region and will be based in Wyndham Hotel Group’s Hong Kong office. Poynter will be senior vice president and managing director for the EMEA region and will be based in the company’s London office.

Additional information is available at http://www.wyndhamworldwide.com/.

CONTACT: Christine Da Silva, +1 (973) 753-6590
Christine.DaSilva@WyndhamWorldwide.com

Steve Mellon Joins Grubb & Ellis as Vice President, Director, Self Storage Group

SANTA ANA, Calif. (June 1, 2009) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that Steve Mellon, (top right photo) an expert on the self storage industry, has joined the company as vice president, director, Self Storage Group.

Effective immediately, he will lead Grubb & Ellis’ Self Storage Group, providing real estate services to the self storage industry. Mellon will be based in the company’s Houston office.

The hire reinforces Grubb & Ellis’ strategy of strengthening and expanding its practice groups as part of its overall objective to provide customized solutions that meet the specific needs of its clients, providing deeper specialization and collaboration across service lines and geography.

“One of Grubb & Ellis’ core strategies is to move deeper into the world of practice groups to provide a higher level of expertise to clients that may require different strategies or execution standards to facilitate their business needs,” said Greg Coxon, president, Transaction Services.

“Steve brings to Grubb & Ellis an established set of clients and a profound understanding of the real estate needs of self storage companies. I am confident that with his expertise, Grubb & Ellis’ Self Storage Group will be in good hands.”

For further information regarding Grubb & Ellis’ Self Storage Group, please contact Mellon at 713.599.5130.


Contacts:
Julia McCartney, 714.975.2230, julia.mccartney@grubb-ellis.com
Erin Mays, 312.698.6735, erin.mays@grubb-ellis.com

Hodges Ward Elliott to Introduce New Marketing Concepts in Response to Change in Hotel Real Estate Dynamics

ATLANTA, GA, June 1, 2009—Hodges Ward Elliott, Inc. (HWE), the nation’s premier hotel brokerage and investment banking firm, today announced that it will introduce new proprietary marketing concepts to respond to the change in hotel real estate dynamics and the expected market shift in hotel real estate transactions over the next six to 24 months.

Hotel veteran Bill Linehan (top right photo) has joined the firm to spearhead the new marketing and new business development program.

In addition, the company announced that Chris Martin has joined its London office.

“We see similar opportunities in the coming months that we experienced when the RTC came into being in the early 1990s,” said Mark Elliott, (middle right photo) principal of Hodges Ward Elliott.

“We responded then by introducing the next generation of highly creative and information-rich sales and marketing documents that provided better information to the investor market.

"We believe the stagnation of transactions caused by the current credit crisis is creating another ‘perfect storm’ that will require new tools and techniques, as well as introduce a new generation of buyers.”

Elliott noted that a variety of capital approaches are recalibrating the playing field. “We are consulting with a number of new private investors that are gearing up for a surge in acquisitions.

"We also are working closely with existing clients to help crystallize their capital strategies. This combination, which includes new debt and equity structures, demands new approaches to the hotel investment banking and transaction market.”

“In our nearly 35 years as a firm through numerous real estate cycles, we know that the first-in investor will generate the highest returns,” said Bill Hodges, (top left photo) principal of HWE.

“However, those investors will require data, insight, strategies and a strong courage of conviction.
“Over the past three years, our firm completed more than $12 billion in transactions and our goal is to continue to be the industry-leader,” he said. “The largest transfer of wealth in a generation has begun and it will affect the hotel industry well into the future.”

“The current economic crisis has created a new paradigm, and we expect the next 12 to 24 months to be game-changing as the credit crisis has brought more rigor to the process,” said Bob Webster, (bottom right photo) HWE managing director.

“Although there has been only nominal transaction activity during the first half of 2009, prospective buyers are becoming more engaged and decisive in their acquisition initiatives. On the sell side, we are listing a number of portfolios and strategic individual assets, which we believe is a leading indicator of the next series of transactions.”

Contact: Jerry Daly or Chris Daly, (703) 435-6293

Multifamily Markets Getting Loans Ahead of Commercial Properties, RECI Says

CHICAGO, IL, June 1, 2009 -The Real Estate Capital Institute reports today late spring realty capital markets are starting to show more signs of life, although caution is the word.

The agencies continue to provide liquidity to the multifamily markets, while banks and life companies cherry-pick commercial property loans.

(Mallory Square Apartments, Miami, FL, top left photo)

Focal market dynamics include the following:

* Building activity is winding down to trickle levels, particularly in office and commercial construction, which includes multi-tenant retail space. The economic downturn and tight credit conditions dampen any prospects for non-residential construction, at least for the next couple of years as oversupply imbalances prevail. Moreover, lower prices for commercial real estate as acquisitions are much more viable than development.

* Bank stress tests are succeeding in mildly boosting confidence by persuading investors that no more major negative news is on the horizon. In fact, many banks scored higher than expected.

(Regal Brook Apartments, Dallas, TX, top right photo)

* Credit remains tight as a lack of confidence plagues bond ratings. Investors still feel that the Rating Agencies are miscalculating risk with more defaults on the horizon.

* By historical standards, real estate debt pricing is still very widely priced in comparison to treasuries. Highest-grade corporate bonds are trading as low as 100 to 200 basis points and average investment-grade corporate debt is priced in the 450 basis point range.

(Stonebrook Apartments, Sarasota, FL, middle left photo)

Meanwhile, the most favorable pricing for multifamily properties is below 300 basis points; commercial properties start at 450 basis points reflecting the perceived tenancy risk for that type.

(Cedarcrest Apartments, Lexington, SC, bottom right photo)

* As treasury yields spiked upward most of the month, some lenders are holding down, or reducing spreads by 20 to 30 bps, to maintain reasonable levels of loan production for the highest-quality properties.

* More assets are repriced and lenders are unloading impaired legacy assets at discounts of 30% or more. More assets are expected to enter the market during the remainder of the year as valuation and mark-to-market issues are synchronized.

According to Jeanne Peck, an advisory board member of the Real Estate Capital Institute, "sellers without a dire need to for immediate liquidity are taking a 'wait and see' position. Today's indecision could lead totomorrow's panic to sell against upcoming CMBS and bank loan maturities without refinancing options."


(Union Square Apartments, Manhattan, NYC, bottom left photo)

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

The Real Estate Capital Institute(r), 3517 West Arthington St., Chicago, Illinois USA 60624. http://www.reci.com/

Mercantile Capital Corp. Reports 66 Percent Jump in Commercial Property Loans

ALTAMONTE SPRINGS, FL --- Mercantile Capital Corporation in Altamonte Springs reports it is seeing a big increase in commercial property loans.

The firm, which specializes in U.S. Small Business Administration (SBA) 504 loans for small business owners who want to acquire or develop their own facilities, reported it closed on loans that total more than $10 million in May, up more than 66 percent over the same period last year.

Geof Longstaff, (top right photo) co-founder and chairman of Mercantile Capital Corporation, said May lending activity included $3.3 million to acquire and renovate a marina in Golden Meadow, La., and two loans that totaled $7 million to acquire Best Western hotel properties in Winslow and Cottonwood, Ariz.

Longstaff said the firm’s commercial property loans in May, 2008 totaled just over $6 million.

For more information, contact:

Chris Hurn, CEO, Mercantile Capital Corporation, 407-786-5040

Geof Longstaff, Chairman, Mercantile Capital Corporation, 407-786-5040

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

Wyndham Hotel Group Integrates Hawthorn Suites with Wyndham Hotels and Resorts Brand

RIO GRANDE, Puerto Rico ­–­ More than 350 owners, managers and staff attending the Wyndham Hotels and Resorts conference this week heard new brand President Jeff Wagoner (top right photo) announce that the brand’s footprint would be expanded by affiliating it with the midscale extended-stay Hawthorn Suites® brand.

The affiliation, designed to reach a broader consumer base and leverage marketing, sales and training, creates a combined Wyndham® brand that will encompass approximately 325 hotels based on quarterly system statistics disclosed March 31. The company previously affiliated its Wingate® and Wyndham brands in 2007.

To formalize the relationship, the Hawthorn brand, now Hawthorn Suites by Wyndham, will be identified with a refreshed red and orange logo that incorporates key design elements of the Wyndham logo.

“The integration of Hawthorn Suites by Wyndham allows us to offer a complete spectrum of products under the Wyndham umbrella, meeting every type of consumer’s hotel need,” said Jeff Wagoner.
He also outlined a three-pronged brand strategy to clarify each product’s positioning within the Wyndham Hotels and Resorts brand and drive growth for the chain’s managed and franchised hotel portfolio.

Addressing an audience representing the Wyndham, Wingate by Wyndham and Hawthorn Suites by Wyndham brands who assembled for the conference at the Rio Mar Beach Resort & Spa - A Wyndham Grand Resort, Wagoner said his strategy aims to ensure “Wyndham gains recognition as one of the great upscale hotel brands.”

“With just three months under my belt as president of Wyndham Hotels and Resorts, already, it’s clear to me what we need to do,” he continued. “My focus has been, and will remain on, establishing three things: brand clarity, brand contribution and profitability for Wyndham owners and operators.”

Wagoner clearly framed the Wyndham brand portfolio to include five distinct product types including the four-plus diamond, upper, upscale Wyndham Grand Collection; the three- to four-diamond upscale Wyndham Hotels and Resorts; the three-diamond Wyndham Garden; the new-construction midscale without-food-and-beverage Wingate by Wyndham; and the extended stay Hawthorn Suites by Wyndham.

Building upon Wagoner’s message, Bill Hall, (middle right photo) Wingate by Wyndham brand senior vice president, unveiled the first new interior prototype designs for the Wingate brand since its launch in 1995. The new design concepts will include more open, social public spaces and contemporary guest room décor as well as ecologically friendly elements such as furniture and fixtures made from sustainable materials and energy-efficient lighting.

To develop the Wingate by Wyndham interior prototypes, the brand tapped Gensler, a global leader in architecture, design and planning.

“While our typical guest is over the age of 35, we are preparing for the Generation X and Y travelers who are developing their brand of first choice,” said Hall. “The new designs are contemporary and comfortable and provide an intuitive guest experience.”

CONTACT: Evy Apostolatos, (973) 753-6590
evy.apostolatos@wyndhamworldwide.com

Marcus & Millichap Sells Apartment Community in Sherman Oaks, CA for $16.5M

SHERMAN OAKS, CA– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of the Regency at Sherman Oaks (top right photo) in Sherman Oaks.

The sales price of $16.5 million represents $239,130 per unit and $183 per square foot.

Greg Harris, executive vice president investments and a senior director of the firm’s National Multi Housing Group in Encino, represented the seller, a pension fund advisor, and the buyer, a private Southern California investor.

“This institutional-quality Class A apartment complex features a variety of floor plans set amidst a wealth of community amenities, including beautiful courtyards, a sparkling pool and a state-of-the-art fitness center,” says Harris.

Located at 4606-4616 Willis Ave. in the affluent Sherman Oaks suburb of Los Angeles, the property is one block north of Ventura Boulevard, the major thoroughfare of the San Fernando Valley, and is minutes from a Whole Foods Market and the Sherman Oaks Galleria.


Regency at Sherman Oaks was built in 2000 on 1.25 acres of land. The 69-unit, 89,269-gross square foot community is comprised of two three-story buildings.


The unit mix features nine one-bedroom/one-bath units and 60 two-bedroom/two-bath apartments.

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

Demand for Class B Apartment Units Increases in Washington, DC

WASHINGTON, D.C.— Economic headwinds are accelerating in Washington, D.C., with total employment in 2009 falling for the first time since 2001, according to a second-quarter Apartment Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

While slower household creation and waning residential demand will challenge the local apartment market this year, the metro’s still-resilient job base will mitigate losses in property revenue, with leasing activity remaining healthiest near large, established clusters of employers.

“While the local apartment market is weathering the recession relatively well, investment activity was tepid in the first quarter of this year,” says Ramon Kochavi, regional manager of the Washington, D.C. office of Marcus & Millichap.

“Softening revenues and rising operating costs, though, may cause some owners to consider bringing their properties to market.”

Following are some of the most significant aspects of the Washington, D.C. Apartment Research Report:

· After employers trimmed payrolls by 12,100 workers in 2008, a projected 18,400 jobs will be lost this year, amounting to a 0.6 percent reduction in the work force.

· Apartment construction will slow in Washington, D.C., with 3,600 rental units slated to be delivered in 2009. Last year, nearly 5,100 apartments were added to inventory.

· Employment losses will hamper housing demand this year. Vacancy is forecast to rise 100 basis points to 6.4 percent, after ticking up 30 basis points in 2008.

· Asking rents are projected to decline 0.3 percent to $1,360 per month in 2009, while effective rents will retreat 1.5 percent to $1,287 per month. Asking and effective rents rose 3.6 percent and 3.3 percent, respectively, last year.

For a copy of the complete Washington, D.C. Apartment 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

Negative Net Absorption Pushes Retail Vacancy Higher in Atlanta

ATLANTA, GA — Despite projections for slower job losses and decreased construction activity, retail vacancy in Atlanta will rise this year due to weaker consumer spending, according to a second-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Employers will continue to cut payrolls through most of 2009, leading to the second-largest annual reduction in employment since 2000.

“In the investment market, retail activity is expected to stay light, with most interest focused on national credit, single-tenant properties,” says John Leonard,(top right photo) regional manager of the Atlanta office of Marcus & Millichap.

“Multi-tenant activity remains constrained as owners opt to strengthen operations to avoid selling at the deep discounts some buyers are demanding.”

Following are some of the most significant aspects of the Atlanta Retail Research Report:


· In 2009, employers are expected to cut 52,000 jobs for a 2.1 percent decline, compared with a loss of nearly 93,000 positions last year.

· Developers are forecast to complete 3.7 million square feet this year, down from 4.5 million square feet in 2008. Approximately 1.1 million square feet will be delivered in the Sandy Springs/North Fulton submarket.

· Projected negative net absorption of approximately 2.8 million square feet will cause a 280 basis point rise in vacancy by year end to 12.6 percent.

· Current weakness in the local economy will moderate retail space demand, resulting in a 3.5 percent drop in asking rents to $16.84 per square foot. Effective rents are projected to fall 4.5 percent this year to $15.02 per square foot.

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

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

Avalon Park Group Awards Contract to Start Construction of Kids ‘R’ Kids Daycare Center at Avalon Park, FL

ORLANDO, FL - Avalon Park Group has awarded a contract to Roger Kennedy Construction Company to build a 2,800 square foot Kids ‘R’ Kids day care facility at Avalon Park in east Orlando.

Ross Halle, architect and town planner at Avalon Park, said construction of the facility is now under way and the new childcare facility is expected to open in August.

For more information, contact:
Ross Halle, Architect/Town Planner, Avalon Park Group, 407-658-6565
Stephanie Hodson, Marketing Coordinator, Avalon Park Group, 407-658-6565
Brendon Dedekind, Director of Leasing/Business Development, Avalon Park Group Management Inc., 407-658-6565
Beat Kahli, Owner/Founder, Avalon Park Group; 407-658-6565
Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142

Thomas D. Wood Brokers $2.5M Loan for CVS in Texas

ORLANDO, FL, May 29, 2009— Thomas D. Wood and Company, a Strategic Alliance Mortgage LLC member, secured financing on May 27, 2009, in the amount of 2,500,000 for a CVS Pharmacy in DeSoto, Texas.

Jeff Schnupp, (top right photo) Company Vice President, financed the CVS Pharmacy through Thomas D. Wood and Company’s relationship with a local banking institution.

The loan has a fixed interest rate of 7% and a five-year term, based on a 22-year amortization. Loan-to-value is 55%. The 13,813 square-foot single-tenant retail store was built in 2004, and is located at 1305 W. Beltline Road, DeSoto, Texas.

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

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

Hewlett Packard Renewal Helps Richmond, VA Industrial Market

RICHMOND, VA--Perry Moss, regional research director, GVA Advantis, reports the industrial leasing market appears better than in actuality as it was heavily buoyed by the Hewlett Packard renewal of 800,000 square foot at White Oak Technology Park in Eastern Henrico County.

The sales market is in a virtual free-fall due to credit and market instability.

Most key indices are down, including vacancy which is at its highest level in over two years, but look to recover later this year or early 2010.

A myriad of negative economic news forced the leasing market to slow considerably, however, received a one-time shot in the arm from the 800,000 square foot HP renewal. Most tenants are opting for short flexible leases.

The Qimonda AG computer chip memory production facility at White Oak is now closed costing some 1,500 high-tech jobs.

Tyson Foods expands by 180 positions at their Hanover County facility.

USF Holland Trucking shuts down its Belt Blvd. location affecting 350 jobs.

Contact: Perry Moss, PMoss@gvaadvantis.com

Terranova Signs Designer Fashion Boutique in Kendall Mall, FL

MIAMI BEACH, FL– Terranova Corporation has signed M-M Couture at Kendall Mall (bottom right photo) an addition that brings unique designer fashion to this popular and convenient Kendall shopping center.

M-M Couture will open on June 6 at Kendall Mall, at 8831 SW 107th Avenue.

The 464-square foot fashion boutique is a destination offering designer clothing and accessories, along with the service and advice of two local owners who have their finger on the pulse of the latest styles.

“Designer fashion was one of the few things missing from Kendall Mall, and I am so excited we’re adding it,” said Terranova executive vice president Mindy McIlroy.

“I am delighted that with M-M Couture, area shoppers won’t have to go out of their way or make a special trip in order to shop for the latest designer trends.”

And having the latest designer trends is entirely the idea behind M-M Couture, founded by local fashion connoisseurs Maria and Michelle.

The store carries clothing and accessories from designers that include Collective Concepts, Rubber Ducky, Lush, Classique, Body Language, Aily V and Big Buddha.

Maria and Michelle update inventory frequently and focus on the latest styles, so customers are assured they are seeing the latest that the fashion world has to offer.

“We’re looking forward to opening our doors at the Kendall Mall and providing our customers with up to the minute trends that will suit their style and budget,” Maria said.

“Our best compliment is our customers’ referral,” said Michelle.

M-M Couture will be having their Grand Opening Event on Saturday, June 6th from 11:00am to 8:00pm. Please join them for cupcakes and champagne.

Contact: Karen LaFleur, klafleur@terranovacorp.com