HFF closes largest retail REO property in Southern California for $94.5M

IRVINE, CA -The Orange County and Los Angeles offices of HFF (Holliday Fenoglio Fowler, L.P.) announced that the sale of The Shoppes at Chino Hills (above centered photo) , a 388,000-square-foot, trophy lifestyle center located in Chino Hills, California, closed on May 28th.

The HFF investment sales team was led by senior managing director Ryan Gallagher (middle left photo) and directors Kelly Rohfeld (middle right photo) , Bryan Ley and John Crump, who marketed the property on behalf of the sellers, a bank consortium group led by Bank of America.

A private Southern California-based investment group purchased the property on a free and clear basis for $94.5 million.

The Shoppes at Chino Hills was originally developed by Opus West in 2008.

A bank consortium group took the property over when Opus West went bankrupt in 2009. Located at 13800-13920 Village Center Drive in Chino Hills,

The Shoppes at Chino Hills is part of a larger master-planned project that includes the Chino Hills Civic Center, (middle left photo)  Chino Hills City Hall, Chino Hills Police Station and the public library.

The 87% leased property was designed by Altoon + Porter architects and is anchored by XXI Forever, H&M, Trader Joes, Banana Republic, Victoria's Secret and Barnes & Noble.

“The Shoppes at Chino Hills is a trophy asset that was highly sought after.

"As the economy recovers, the center should be well-positioned to capitalize on the affluent surrounding demographics and continue to serve as a ‘best in class’ lifestyle center in the region,” said Gallagher.

Contacts:

Ryan Gallagher, Ca. Lic. # 01269918, HFF Senior Managing Director, (949) 253-8800, rgallagher@hfflp.com
Kristen Murphy, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com

HFF arranges $26.5M construction loan for downtown Oakland, CA multi-housing project

LOS ANGELES, CA – The Los Angeles and San Francisco offices of HFF (Holliday Fenoglio Fowler, L.P.)  have arranged a $26.5 million construction loan for City Walk, a 264-unit, transit-oriented multi-housing project in Oakland, California.

The HFF deal team of Paul Brindley (middle right photo) , Kevin Redford (middle left photo) , Todd Sugimoto (lower right photo underneath Paul Brindley photo) , Mark Sixour (lower left photo underneath Kevin Redford photo)  and Wally Reid worked exclusively on behalf of the borrower, Wood Partners, to secure construction-permanent financing through a life insurance company.

The deal was structured with a recourse burn-off at stabilization and no prepay penalty providing maximum flexibility for the borrower.

Wood Partners acquired the project 60% complete and will use the loan proceeds to finish the construction and facilitate the lease-up of the Class A property.

Due for completion in 2011, City Walk will feature a mix of studio, one-, two- and three-bedroom units.

 The property is located in the heart of City Center in downtown Oakland and is two blocks from the 12th Street Bay Area Rapid Transit Station, providing easy access to downtown San Francisco as well as other parts of the Bay Area via public transportation.

 City Walk sits across the street from the Federal Buildings and is close to the Central Business District.

“The City Walk project is anticipated to achieve very compelling returns as Wood Partners acquired it at such an attractive basis,” said Redford.

Wood Partners is a national multifamily real estate company that acquires, develops, constructs and manages high density and mixed-use communities.

Contacts:
Paul  Brindley, HFF Senior Managing Director, (310) 407-2100, pbrindley@hfflp.com
Kevin Redford, HFF Director, (415) 276-6300, kredford@hfflp.com
Kristen Murphy,  HFF Associate Director, Marketing,  (713) 852-3500, krmurphy@hfflp.com

HFF arranges $18M  financing for manufactured housing community in San Diego, CA

SAN DIEGO, CA – The San Diego office of HFF (Holliday Fenoglio Fowler, L.P.) has arranged $18 million in financing for The Highlands, a 306-home-site manufactured housing community in Santee (San Diego), California.

HFF senior managing director Tim Wright (lower left photo) and associate directors Zach Koucos and Zack Holderman (lower right photo)  worked exclusively on behalf of the borrower, The Highlands Mobile Home Community Association, to secure the 10-year, fixed-rate loan through Northwestern Mutual Life Insurance Company.

 The loan proceeds enabled the borrower to purchase the fee simple interest in the property and recapitalize existing debt. The Highlands Mobile Home Community Association is a California non-profit mutual benefit corporation comprised of the community’s residents.

The Highlands is located at 7467 Mission Gorge Road in close proximity to State Route 52 in the City of Santee just east of San Diego. The property has 306 home sites and is an age-restricted (55+) community. Amenities at The Highlands include a clubhouse, two pools, and a shuffleboard pavilion.

“We were pleased to have a number of lenders compete for the financing of The Highlands in a challenging capital marketplace,” said Koucos.

Contacts:

Timothy D. Wright, HFF Senior Managing Director, (858) 812-2341, twright@hfflp.com
Zachary E. Koucos, HFF Associate Director, (858) 812-2341, zkoucos@hfflp.com
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com

Sperry Van Ness Announces Online Auction Capability for All Sperry Van Ness Advisors

IRVINE, CA– Sperry Van Ness Accelerated Marketing, the auction team of Sperry Van Ness, has signed a strategic partnership agreement with AuctionPoint, Inc., an innovative online commercial property auction platform, to power all of its online auctions.

As part of the partnership, the Sperry Van Ness nationwide platform of nearly 900 Advisors will be able to present their clients with an online auction solution for the first time.

“Sperry Van Ness is committed to offering our clients the most advanced strategic solutions available,” said Kevin Maggiacomo, (top right photo)  president and CEO of Sperry Van Ness. “Online auctions are revolutionizing the commercial real estate industry, and we want to help our clients participate in this new and highly effective way of doing business.”

“The marketing of assets combining a ‘date certain sale timeframe’ with the efficiency and reach of the Internet is rapidly gaining popularity with buyers and sellers,” said Jerry Anderson, (middle left photo)  CCIM, executive managing director of Sperry Van Ness Florida.

 “The AuctionPoint technology platform enables sellers to take advantage of lower overhead costs than those associated with traditional auctions, the global reach of the Internet, and the ability to sell commercial properties quickly and at true market value.

Buyers are afforded a transparent, 360-degree view of the property and all due diligence materials, and the ability to bid on the property with the click of their mouse.”

Sperry Van Ness will now be able to provide clients with property-specific online auction websites, complete with property details, pictures and extensive due diligence materials.

 Interested buyers simply go to the auction website to review the materials, register and then bid online on auction day. The website also includes the property owner’s Purchase & Sale Agreement, providing for a completely transparent process for bidders.

“We look forward to working with Sperry Van Ness and its team of real estate auction professionals,” said Joe Tang, (lower right photo) co-founder and CEO of AuctionPoint. “The combination of Sperry Van Ness’ deep expertise in auctions and the sophisticated AuctionPoint technology platform represents a tremendous value proposition for commercial property owners.”

Contact: David Ebeling, Ebeling Communications, 949.278.7851, david@ebelingcomm.com

RECI Reports More Positive News on the Realty Capital Front

CHICAGO, IL - Jeanne Peck, (top right photo)  executive director of The Real Estate Capital Institute in Chicago,  reports more positive news on the realty capital front as recovery from the current downturn is recapitalized by funds which were raised prior to commercial mortgage product being more widely available.

Funding demand is readily available for freshly originated capital underwritten to currently more stringent standards.

In particular, many non-investment grade credit funds desire new commercial mortgage exposure as secondary market spreads have rallied.

How does revived realty capital market translate to property-level funding kinetics?

* New Benchmarks - The Debt Yield (in-place NOI divided by total debt) has now emerged as a popular underwriting index. This index provides a quick gauge of the debt payment cushion, similar to the debt coverage ratio.

For example, 9.5% to 10% was common yield in during the market peak (2007-2008); now the index falls within the 11-12% for most types of permanent loans.

* Favorite Fives - The number five seems to be the most favorite digit for tweaking deals. Funding sources use the number five in many different underwriting scenarios including: 5% more leverage (70% vs. 65% LTV), 5% less debt coverage (120% vs. 125%), 5 years more in amortization (25 years vs. 20 years) and 5% more occupancy in improving markets (90% vs. 85%).

* Floors - In select cases, lenders reduce [or even eliminate] floors and rate protection for floating rate loans on shorter-term debt (e.g., 5 years or less). Rate protection can be waived for lower leverage loans, generally 50% or less. Simultaneously, rate floors are dropping to 3.5% to 4%, as funding sources favor quality over more realty risk.

* Thinking Outside the Box - New Market Tax Credits, Private Placement Offerings (e.g., CIS-Sanctioned EB-5 Foreign Nationals Program), Recovery Act funds and other non-conventional funding vehicles are gaining attention, especially for new construction projects requiring substantial subsidies and equity capital.

Such funds can be used for more challenging assets including senior housing, retail and mixed-use as well as lodging properties. Available on a select basis and in very focused areas, these programs are highly technical and therefore require substantial consulting expertise for processing.

The Real Estate Capital Institute's advisory board member Aaron Gruen  (lower left photo) suggests "Many economic indicators are improving or stabilizing indicating the worst of The Great Recession is slowly moving behind us.

"However, while the capital markets are showing improvement and signs of increasing stability and recovery, asset-level performance improvement is spotty and inconsistent. Heightened volatility and uncertainty continues to reign."

He adds, "Targeted risk analysis is especially important today, given that uncertainty and ongoing shifts in demographics, consumer behavior and variability in economic and fiscal performance between and within regions that can be expected."

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 at 7RE-CAPITAL (773-227-4825) for hourly rate updates.

Contact:  Jeanne Peck, Executive Director, Toll Free 800-994-RECI (7324)
mailto:director@reci.com,%20www.reci.com

HFF to market for sale a portfolio of Courtyard by Marriott hotels in the Caribbean and Central America

MIAMI, FL – The Miami office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has been exclusively retained to market for sale a portfolio of Courtyard by Marriott hotels in San José (bottom right photo) , Costa Rica; Santo Domingo, Dominican Republic; and Port of Spain, Trinidad.

HFF senior managing directors Dan Carlo (top right photo) and Dan Peek (top left photo) , along with senior hospitality analyst Max Comess will market the properties on behalf of the ownership group.

 HFF’s Hotel Group is planning to launch a global marketing campaign in conjunction with the NYU International Hospitality Industry Investment Conference in New York City the week of June 7th.

The portfolio represents a unique opportunity to acquire three well-established hotels in key international markets.

Purpose-built as Courtyard Hotels from 2002-2004, the properties have been institutionally maintained and recently renovated.

All have seen significant capital enhancements in such areas as room renovations and lobby conversions to the new Courtyard prototype. In two of the three markets, the respective Courtyard hotel functions as the “de facto” Marriott hotel, meaning it is the only property in the region wearing the Marriott marquee. Marriott International operates all three hotels.

“The operating performance of these hotels is impressive, as evidenced by their collective RevPAR performance that is 50 percent higher than the brand-wide average for the over 850 Courtyard Hotels,” said Carlo.

“Moreover, they offer a new owner tangible upside from such future initiatives as the expansion of guest rooms and function space.”

“This portfolio presents investors with a unique opportunity to enter or further establish their presence in high-growth Latin American and Caribbean markets through the acquisition of a high quality, strong performing collection of Marriott branded hotels,” added Peek.

Contacts:
Daniel Carlo, HFF Senior Managing Director, (305) 448-1333dcarlo@hfflp.com
 Daniel C. Peek, HFF Senior Managing Director, (305) 448-1333dpeek@hfflp.com
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500 krmurphy@hfflp.com

HFF secures $40M refinancing for Solana Beach Towne Centre in California

SAN DIEGO, CA – The San Diego office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has secured a $40 million refinancing for Solana Beach Towne Centre (mioddle right photo) , an approximate 250,000-square-foot, Class “A” retail community shopping center in Solana Beach, California.

Working exclusively on behalf of American Assets, Inc., HFF senior managing director Tim Wright (lower left photo) associate directors Zack Holderman and Rob Hinckley placed the 10-year, sub 6% fixed-rate loan with Deutsche Bank Mortgage Capital, LLC. Loan proceeds are retiring an existing CMBS loan.

Solana Beach Towne Centre is located at the southwest corner of Lomas Santa Fe Drive and Interstate 5 in the coastal North County San Diego city of Solana Beach. Renovated in 2006, the property has 12 Mediterranean-style buildings situated on a 23-acre multi-district site.

 The property is 97% leased to tenants including Henry’s Marketplace, CVS Pharmacy, Marshalls, Staples, Panera Bread and Starbucks.

“Solana Beach Towne Center is located in a preeminent retail market with high barriers to entry, proximity to high-end housing and exposure to an average traffic count of 233,600 cars per day,” said Wright.

American Assets, Inc. (AAI) is a full-service real estate company specializing in the investment, development and management of retail, office and multi-family real estate throughout the United States.

Since its founding in 1967, AAI has been steadfast in its approach to acquiring and developing premiere assets in some of the nation's most desirable markets including San Diego, San Francisco, Monterey and Waikiki.

Contacts:
Timothy D. Wright, HFF Senior Managing Director, (858) 552-7690, twright@hfflp.com
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com

HFF closes $40.5M sale of Class A office asset in Malden, MA

BOSTON, MA – The Boston office of HFF (Holliday Fenoglio Fowler, L.P.) today announced that it has closed the sale of 75 Pleasant Street, a 125,521-square-foot, Class A office building leased in its entirety to Massachusetts Department of Education on a long-term basis in Malden, Massachusetts.

HFF’s Coleman Benedict (lower left photo) exclusively represented the seller, a joint venture of Kennedy Associates and Corcoran Jennison, and procured the buyer in the $40.5 million transaction.

The property was completed in 2008 and is located at 75 Pleasant Street in Malden Center, north of Boston’s Financial District.

 The asset was built with energy efficient systems and is a smart growth development that is within walking distance of a major public transportation station.

“In today’s environment, investors are very focused on stability of cash flow and quality of product and 75 Pleasant Street satisfies both of those qualifiers,” said Benedict.

“This is a great execution for Kennedy, who invested in the development of the asset on behalf of one of the firm’s corporate pension fund clients.”

Contacts:

Coleman J. Benedict, HFF Managing Director, (617) 338-0990, cbenedict@hfflp.com
Kristen M. Murphy, HFF Associate Director, Marketing,  (713) 852-3500,  krmurphy@hfflp.com

HFF Miami hires Paul Hsu as associate director for the firm’s hotel group

MIAMI, FL – HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has hired Paul Hsu as an associate director for the hotel group in its Miami office.

Mr. Hsu will focus on the solicitation and execution of hotel transactions across the United States, with a particular focus on the southeastern region. He has more than six years of experience in the hospitality and commercial real estate industry and most recently served as a principal at Champ-East Hospitality Advisors, Inc.

 In this role, Mr. Hsu served as a consultant for owners and lenders on hotel and resort assets. Prior to forming Champ-East, he was a senior associate at The Plasencia Group, Inc, working on hotel transactions from the firm’s headquarters in Tampa, Florida.

Contacts:
Daniel C. Peek, HFF Senior Managing Director, (305) 448-1333, dpeek@hfflp.com
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com

HEI Hotels & Resorts Acquires Le Méridien Dallas North in Texas

NORWALK, CT, June 7, 2010—HEI Hotels & Resorts, a rapidly growing hotel ownership and operating company, today announced that it has acquired the 258-room Le Méridien Dallas North (top left photo)  in Texas for an undisclosed amount.

The property becomes HEI’s 36th owned hotel, fourth hotel acquisition of 2010, and their fourth hotel under Starwood’s growing Le Méridien brand.

“This is a first-class hotel with a prime location in the foremost business center of Dallas and aligns perfectly with our portfolio of upper-upscale and luxury properties in leading US markets,” said Steve Mendell, (middle right photo) HEI’s president – acquisitions and development. “This is the fourth acquisition of HEI Hospitality Fund III, and we continue to seek out assets that leverage the experience of our acquisitions team and our investment resources.”

Nestled in the heart of Dallas’ famous Galleria area, Le Méridien Dallas North is just steps away from a wide variety of shopping, dining and entertainment options and only a 20 minute ride from the Dallas/Ft. Worth airport.

Also known for its bustling business district, the Galleria is home to many recognizable blue chip corporations, such as Nordstrom’s corporate headquarters and the offices of FedEx/Kinko’s, Highland Capital Management, ABC Broadcasting/Disney and Coca Cola.

The hotel concluded a complete renovation in 2009, modernizing each of their oversized 450-plus square foot guestrooms with a 42” HDTV, iPod docking station and Jack Pack, providing guests with the ability to view one’s laptop screen from the TV.

 All rooms also feature wireless and hardwire internet access and laptop-sized safes with electricity, as well as the new Le Méridien signature beds and full-size sofas and sitting area. Hotel amenities include the upscale Le Méridien restaurant and atrium bar; approximately 3,500 square feet of meeting space for groups ranging in size from five to 300; 24-hour business center; indoor heated pool; Jacuzzi; and fitness center.

“Our knowledge of both the brand and the region made this a particularly attractive deal for us,” said Anthony Rutledge, (lower left photo)  HEI’s chief financial officer.

“As our fourth Le Meridien, we are uniquely positioned to maximize this hotel’s performance through our industry-leading management team’s deep understanding and experience with the brand.”

Media Contacta:

Jess Petitt, HEI Hotels & Resorts, 203-849-2228, jpetitt@heihotels.com
Jerry Daly or Chris Daly, DalyGray Public Relations, jerry@dalygray.com, chris@dalygray.com

Starwood Capital and Hersha Hospitality Management Announce Partnership to Build Premier Hotel Management Company

PHILADELPHIA, PA and GREENWICH, CT,  June 7, 2010 – Starwood Capital Group and Hersha Hospitality Management (“HHM”) announced today that they have entered into an agreement that will provide Hersha the resources to expand its highly successful platform across the United States.

 The transaction brings together two of the best known names in the real estate and hotel sectors.

 Starwood Capital is one of the world’s leading investment firms focused on real estate, having invested more than $24 billion in assets since its inception, while the privately held HHM is a leading third-party hotel management company operating more than 70 hotels in major metropolitan markets.

Under the terms of the agreement, Starwood Capital has purchased a 49.9% stake in HHM, for an undisclosed amount.

The new partnership will seek to capitalize on the ongoing industry recovery by aggressively pursuing select-service and full-service hotel management opportunities on a national scale.

 In addition, the venture will also target strategic investments in turnaround and opportunistic select-service hotels throughout the country and full-service hotels in select suburban markets.

“We are very pleased to be partnering with HHM,” said Barry Sternlicht, (top right photo) Chairman and CEO of Starwood Capital.

“Over the years, we have built a close relationship with Hersha’s leadership team and admire its best-in-class operating capabilities and ability to create value for the properties it manages. Starwood Capital will contribute capital, deal flow and enterprise-building resources to help leverage HHM’s operating expertise across the country and across a broader spectrum of investments.”

“Partnering HHM with Starwood Capital allows us to leverage the considerable strengths of both organizations,” Naveen Kakarla, (middle left photo) President and Chief Executive Officer of HHM said.

“Barry Sternlicht and Starwood Capital Group have demonstrated keen judgment, innovative vision, and an unparalleled access to capital across several real estate cycles. HHM, I believe, has struck the fine balance between building a high quality multi-brand platform that is both scalable and process-oriented, while preserving a hands-on, entrepreneurial approach to managing hotels and projects.”

HHM currently operates more than 70 hotels in metropolitan regions in Boston, Connecticut, New York, New Jersey, Philadelphia and Washington, D.C.

Media Contacts:
Tom Johnson, Abernathy MacGregor Group, (212) 371-5999
Jerry Daly or Chris Daly, Daly Gray Public Relations, jerry@dalygray.com, chris@dalygray.com

Interstate Hotels & Resorts Promotes Sean McCurdy to Vice President-Strategic Accounts & Global Sales

ARLINGTON, Va., June 7, 2010—Interstate Hotels & Resorts, the United States’ largest independent hotel management company, today announced that Sean McCurdy (top right photo) has been promoted to vice president, strategic accounts and global sales.

 He previously served as Interstate’s global director of worldwide sales.

 In his new position, McCurdy will be responsible for developing and expanding the company’s corporate sales initiatives and expanding relationships with key global accounts. He will report to George Brennan, Interstate’s executive vice president, sales and marketing.

McCurdy joined Interstate in 2003 as director of global travel industry sales for the company’s corporate housing division. Earlier in his career, he served as vice president of sales for Travel Inventory Marketing Alliance, senior director of worldwide sales for Choice Hotels International and has held executive positions for several of the nation’s top car rental and hotel brands.

“Sean brings more than two decades of industry experience and a proven track record in corporate sales and marketing,” Brennan said.

“He has been instrumental in securing for Interstate Hotels & Resorts preferred annual contracts with major corporate accounts over the past decade. Sean possesses the kind of relationship-building sales skills that deliver beneficial relationships to our corporate customers, a significant advantage for Interstate-managed hotels. This promotion affirms his continuing record of achievement.”

 For more information about Interstate Hotels & Resorts, visit the company’s Web site: www.ihrco.com.

Contact:

Jerry Daly,Media SVP; Carol McCune, Daly Gray, (703) 435-6293, jerry@dalygray.com
Carrie McIntyre, Treasurer, Interstate Hotels & Resorts, (703) 387-3320, carrie.mcintyre@ihrco.com

Grubb & Ellis Commercial Florida Appoints John Stoner Vice President of Retail Services in Tampa, FL

TAMPA - Grubb & Ellis Commercial Florida has  appointed John Stoner vice president of its Retail Services Group in Tampa.

Jeff Sweeney, SIOR, president of Grubb & Ellis Commercial Florida, said Stoner has more than 10 years of experience in retail property leasing and sales. In 2009 Stoner was recognized by Florida Gulfcoast Commercial Assn. of Real Estate (FGCAR) as one of its top three retail brokers.

Stoner formerly served as an associate with Ross Realty in the Tampa Bay area.

CONTACTS:
Jeffrey Sweeney, SIOR President 407-481-5387;
Larry Vershel Communications 407-644-4142

Stirling Sotheby’s International Realty Named Marketing Agent for Restored Century-Old Mansion on Lake Carlton in Mount Dora, FL

MOUNT DORA, FL - Stirling Sotheby’s International Realty has been named exclusive sales and marketing agents for a unique century-old Mount Dora mansion, circa 1926, which includes 10.89 acres with nearly 1,000 feet of water frontage on Lake Carlton, part of the Harris Chain of Lakes.

Roger Soderstrom, founder and owner at Stirling Sotheby’s International Realty, said Janice McGeough, certified luxury home marketing specialist at the firm, is representing the property.

The four-bedroom, four-bath, 6,111 square foot luxury home has been completely restored with a state-of-the-art kitchen, a lavish private wine cellar, a grand master suite that overlooks the lake and an elaborate boat house with upstairs apartment.

The captivating Mount Dora estate is a luxurious masterpiece with all of the modern amenities available but it retains the charm of the early 20th century.

Horses are allowed, McGeough said, and new owners may possibly subdivide the property, which is zoned RCE.

The landscape is ample and the lake provides for helicopter and seaplane landing and take-off practically at your doorstep.

“This very private, very majestic property is a rare find,” McGeough said.

Contacts:
Janice McGeough, Stirling Sotheby's International Realty, 352-217-0465; jmcgeough@stirlingsir.com;
Roger Soderstrom, Founder/Owner, Stirling Sotheby’s International Realty 407-581-7890; rsoderstrom@stirlingSIR.com;
Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142; lvershelco@aol.com

Grubb & Ellis Declares Preferred Stock Dividend

SANTA ANA, CA– Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, announced  that its board of directors has declared a dividend of $3.00 per share on the company’s 12% Cumulative Participating Perpetual Convertible Preferred Stock to stockholders of record as of June 18, 2010. The dividend is for the quarterly period from April 1, 2010 and is payable on June 30, 2010.

Contact: Janice McDill, Phone: 312.698.6707, Email: janice.mcdill@grubb-ellis.com

Marshall Hotels & Resorts, Inc. Founder Chuck Marshall to Retire July 1 on 30th Anniversary of Hotel Management Company

SALISBURY, MD, June 3, 2010–Charles “Chuck” Marshall, (top right photo)  founder and chairman of Marshall Hotels & Resorts today announced plans to retire from day-to-day activities on July 1, 2010, the 30th anniversary of the founding of the company.

He will become chairman emeritus of the company, actively engaged on the board of directors, and become a consultant to the management company.

Mike Marshall, (middle left photo)  company president and CEO, will continue to oversee the company’s growing operations.

Marshall founded the company in 1980, beginning initially as a developer/syndicator with three hotels.

The company today manages more than 60 hotels and resorts in segments ranging from upper upscale to limited-service.

“When the tax laws changed in the late 1980s, we shifted to third-party management, which may have been the best business decision I ever made,” Chuck Marshall said.

“We have grown to be among the 25 largest independent management companies in the U.S. in the past 20 years and still have growth opportunities ahead of us.

“The cornerstone of our success is developing a tailored strategy and plan with aggressive, but realistic budgets, and then sticking to them,” he noted.

 “The budget is our bible, and we adhere to it religiously. We don’t start with the top or bottom line; we begin with what is honest and achievable. We then monitor our budgets daily and adapt to changing market conditions, which allows us to focus clearly on maximizing profits and controlling costs.”

Marshall worked his way through Oklahoma State University as a cook in area restaurants and hotels.

Upon earning a degree in hotel and restaurant management, he began his 46-year hospitality management career as an assistant general manager of the Golden Ox (centered photo below)  restaurant in Kansas City.

 He entered the hotel industry as a general manager of a Ramada Inn in Wichita Falls, Texas at age 24. Over his 40-plus-year career, received numerous awards for operating excellence, including Sheraton’s “Manager of the Year” and the “Distinguished Achievement Award from the International Franchise Association.” The company’s managed properties consistently win awards from brands for operating excellence.

Marshall said the biggest changes in the industry over the past four decades are in marketing, fueled by the Internet.

“The hotel business has a great future, but has a lousy memory," he says.. "This is the third time the industry has suffered a significant number of bankruptcies in my career, due to over-leveraging and over-building. Hopefully, we’ll learn this time and be more realistic in the future. The keys to hotel profitability are location and good management.”

“He has an uncommon ability for finding the right solution to the thorniest of problems and is a great teacher on how to maximize hotel returns and control costs,” said Mike Marshall.

“Fortunately, we’ll be able to call on his experience and expertise on a consulting basis. He raised the bar for hotel management and established our company’s reputation as an industry leader. He definitely is going out on a high note.”

Contact: Jerry Daly, media, Daly Gray Public Relations, (703) 435-6293, jerry@dalygray.com

Marcus & Millichap Sells $4.9M Lender-Owned Multifamily Property in Atlanta

ATLANTA, GA– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has brokered the sale of The Gardens at Briarwood, (top right photo) formerly known as Highlands at Sutton Place, a 130-unit lender-owned multifamily property in Atlanta.

The sales price of $4,925,000 represents $37,885 per unit.

Andrew Mays (bottom left photo) , a vice president investments and a director of the firm’s National Multi Housing Group (NMHG) in Atlanta, and Paul Vetter, an associate vice president and also a director of the NMHG in Atlanta, represented the appointed receiver in the sale, JMG Realty.

Mays and Vetter also represented the buyer, a Connecticut-based private investor.

“We received 19 offers for the property in less than 30 days of marketing,” says Vetter. “We responded to the top eight offers and just three weeks from the best and final offer round we selected an all-cash buyer.”

Located at 3580 Buford Highway NE in Atlanta, the property offers easy access to Interstate 85 and the Peachtree Connector to Buckhead and downtown Atlanta. Both the Brookhaven and Lenox MARTA (Metropolitan Atlanta Rapid Transit Authority) train stations are within two miles of the complex.

The Gardens at Briarwood was built in 1967.

 The units are all-electric and are equipped with central heat and air. Unit amenities include full kitchens with separate dining areas, private patios for townhome units and screened-in balconies for the garden-style units. Community amenities include lush landscaping and two swimming pools with large deck areas.

Contact: Stacey Corso, Public Relations Manager, (925) 953-1716

Morrison Commercial Real Estate completes three office lease transactions totaling 11,081 SF

ORLANDO, FL (June 3, 2010): Greg Morrison, (top left photo)  CCIM, SIOR, Principal of Morrison Commercial Real Estate, announced the completion of three office lease transactions totaling 11,081± square feet.

Christi Davis (middle left photo)  of Morrison Commercial Real Estate completed the first transaction at her new listing, SunTech Park in Lake Mary. Creative Data Solutions, represented by Scott Pamplin of Jones Lang LaSalle, leased 3,337± square feet for thirty-nine months at 41 Skyline Drive.

 Lisa Bailey (top right photo) of Morrison Commercial Real Estate represented the landlord in renewing a lease for 4,014± square feet to Aspire Technologies, Inc. in the Atrium Tower at 7680 Universal Drive in Orlando. Bailey renewed the lease for a total of forty-eight months.

The newest member of the Morrison team, Phil Marchese, assisted by Lisa Bailey represented the tenant, Florida Garden Supplies, Inc. in leasing 3,730± square feet at 8442 Tradeport Drive in Orlando.

The landlord in this transaction was represented by Moses Salcido (bottom right photo)  of Southern Commercial Real Estate Advisors.

Contact: Buffy Gillette, Phone: 407.219.3500, Email: bgillette@morrisoncre.com

John Crossman to Moderate Panel at ICSC 500th Next Generation Celebration featuring Orlando Mayors Dyer and Crotty, Real Estate Experts

ORLANDO, Fla. – John Crossman (middle right photo), president of Crossman & Company of Orlando, will moderate a panel of experts during the International Council of Shopping Centers (ICSC) 500th Next Generation Celebration on Thursday, June 17 at Hard Rock Live, 5050 Universal City Blvd. in Orlando.

The keynote panel will be titled “Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis–Retail Real Estate Market.

Expert panelists include Orange County Mayor Richard Crotty (top left photo), Orlando Mayor Buddy Dyer, (top right photo)  Ira Mitzner, (middle left photo) president of RIDA Development Company, and Rasesh Thakkar (lower right photo),  senior managing director of Tavistock Group, developer of Lake Nona.

“Our panelists will take a close look at strengths, weaknesses, opportunities and threats in Central Florida’s real estate market,” said Crossman.

“Their mission is to focus on how we can overcome threats and weaknesses and use American entrepreneurial spirit to turn them into opportunities and strengths,” he explained.

The evening program from 6 to 6:45 p.m. will be followed by a networking reception and entertainment that includes casino games, Crossman said.

Crossman said the conference is celebrating the 500th event held by the ICSC’s Next Generation Group of young real estate executives.

Justin Greider,(bottom left photo)  senior associate at Crossman & Company serves as ICSC Next Generation Southern Division chair.

The event is sponsored by Albu & Associates, Florida National Bank, Kimco Realty Corporation, Real Property Specialists, Inc., RIDA Development Corporation, Wells Fargo, Integra Realty Resources and Crossman & Company.

Advanced admission is $35 for ICSC members, $50 for non-members, and $15 for student members. Admission at the door is $50 for ICSC members, $65 for non-members and $25 for student members.

For more information,  please contact:
John Crossman, CCIM, President, Crossman & Company, 407-581-6218, jcrossman@crossmanco.com
Justin Greider, Senior Associate, Crossman & Company/ICSC Southern Division Next Generation Chair, 407-581-6225; jgreider@crossmanco.com;
Molly Delahunty, Crossman & Company, 407-581-6220 mdelahunty@crossmanco.com;
 Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142, lvershelco@aol.com.

Grubb & Ellis Equity Advisors Eliminates Potential REIT Internalization Fees

SANTA ANA, CA (June 03, 2010) – Grubb & Ellis Equity Advisors, the primary real estate investment and asset management subsidiary of Grubb & Ellis Company (NYSE: GBE), announced today that it has eliminated potential internalization fees for the non-traded real estate investment trusts for which it provides advisory and management services.

Currently registered offerings affected by the policy are Grubb & Ellis Healthcare REIT II, Inc. and Grubb & Ellis Apartment REIT, Inc.

“We have taken this action because we believe it is in the best interests of the stockholders whom have invested in our real estate investment trusts,".said Thomas P. D’Arcy, (top right photo)  chairman of Grubb & Ellis Equity Advisors and president and chief executive officer of Grubb & Ellis Company.

"This action further reinforces that Grubb & Ellis Equity Advisors is fully focused on working to provide superior returns to our investors and we believe our sponsorship philosophy will help build long-term brand value for Grubb & Ellis as a leading sponsor in the non-traded REIT sector.

 “This decision clearly demonstrates our commitment to our partnership with the broker-dealer community, registered representatives and individual investors.”

Grubb & Ellis is the first major sponsor of publicly-registered, non-traded REITs to eliminate potential internalization fees, which are typically paid when a REIT matures to the point that its board of directors determines that the REIT should become internally managed. Between 2000 and 2007, seven non-traded REITs paid internalization fees ranging from $68 million to $375 million.

“This new policy represents potentially substantial investor savings and is consistent with our ‘investor first’ philosophy,” said Jeff Hanson, (middle left photo)  president and chief executive officer of Grubb & Ellis Equity Advisors.

“Through this decisive action, Grubb & Ellis Equity Advisors directly aligns its interests with those of its non-traded REIT stockholders and demonstrates our commitment to the success of our investment programs.”

Publicly registered, non-traded real estate investment trusts raised approximately $58.7 billion in investor equity between 2000 and 2009. The industry is expected to raise between $7.5 billion and $8 billion in 2010, according to Robert A. Stanger & Company, which tracks the sector.

Contact:

Damon Elder. Senior Director, Communications, Grubb & Ellis Equity Advisors, LLC, 1551 N. Tustin Avenue, Suite 200, Santa Ana, California 92705, 714.667.8252 ext. 52659, 714.975.2659 direct
714.356.1460 cell, http://equityadvisors.grubb-ellis.com/