Grubb & Ellis Represents Higgins Development Partners in Sale of 602,500-SF Warehouse/Distribution Facility in Carlisle, PA

KING OF PRUSSIA, PA – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that its Global Logistics Group represented Pritzker Realty Group and Higgins Development Partners in the investment sale of Key Distribution Center (top left photo) , a 602,500-square-foot warehouse/distribution facility in Carlisle, to Carlisle 44 LP.

Steve Bonge and Tim Brogan, both senior vice presidents, and Patrick McBride, vice president, served as the seller’s representative in the transaction, located at 1700 Ritner Highway.

“The property’s excellent location along the I-81 corridor, as well as its state-of-the-art, Class A building systems, prompted strong buyer response,” said Brogan. “The building is well-suited for a number of uses, including manufacturing, warehouse distribution, customer service/call centers, commercial, and retail/service.”

Built in 2007, the facility is located within one mile of Exit 44 off of I-81 and features high clearance of 32 feet with 50’ x 50’ bays, parking for approximately 200 trailers and 345 cars, ample overhead and drive-in doors, highly efficient sprinkler and HVAC systems and high power. The building is fully available for lease.

Higgins Development Partners develops office, industrial, land and governmental, institutional and laboratory projects ranging from award winning multi-story urban office towers to large-scale master-planned suburban business parks, managing all aspects of the development process with its staff of experienced, local real-estate professionals teamed with industry-leading financial partners, consultants, and contractors.

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

Crossman & Co. Closes on Three Retail Leases for a total 3,150 SF at Colonial Corners Shopping Center in Orlando

ORLANDO - Crossman & Company, one of the largest property management and leasing firms in the Southeast, recently completed three lease agreements totaling 3,150 square feet at Orlando’s Colonial Corners Shopping Center.

John Crossman, president of firm, said Leasing Associate Daniel Germano (top right photo)  negotiated all three transactions representing F.F. Colonial, LLC, the landlord for the property located at 5600 W. Colonial Drive.

Hendra’s Uniforms is the new tenant who leased unit 306 at the retail center with 1,050 square feet.

Two tenants – Colonial Counseling and Liberty Tax Service -- renewed leases of 1,050 square feet each at Colonial Corners.

Germano said a total of six leases have been signed at Colonial Corners thus far in 2010.

For more information,  please contact:
Daniel Germano, Leasing Associate, Crossman & Company, 407-423-5400 or 407-581-6223;
John Crossman, CCIM, President, Crossman & Company, 407-581-6218, jcrossman@crossmanco.com;
 Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142, lvershelco@aol.com

Stirling Sotheby’s International Realty Sells $410,000 Luxury Home In Sweetwater Island, Orlando

ORLANDO - Stirling Sotheby’s International Realty recently sold a $410,000 luxury home in Sweetwater Island, a gated community near Wekiva Springs in Longwood.

Roger Soderstrom, founder and owner of Stirling Sotheby’s International Realty, said associate Espe Almarza Anderson (top right photo) in the firm’s Windermere-Dr. Phillips office in southwest Orlando negotiated the sale.

The four-bedroom, three-bath home boasts 2,664 square feet of living space with a swimming pool on its three-quarter-acre home site, which overlooks a conservation area.

Sweetwater Island features a boat ramp, tennis courts, picnic area, playground and nature trails.

For more information, please contact:
Espe Almarza Anderson, MA, CSP, SFR, Stirling Sotheby’s International Realty 407-992-8900; ealmarza@stirlingsir.com;
Roger Soderstrom, Founder/Owner Stirling Sotheby’s International Realty, 407-581-7890;
Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142

Wilson Commercial Real Estate Completes Sale of Land to CVS Pharmacy in Palmdale, CA

PALMDALE, CA– Wilson Commercial Real Estate, one of Southern California’s leading retail brokerage firms, has completed the sale of 1.83 acres of land in Palmdale, Calif. to CVS Pharmacy.

Currently being developed by May Centers, Plaza Vallarta will encompass 99,131 square feet of retail space located at the northeast corner of 47th Street East and Avenue R in Palmdale, Calif. The center will be anchored by Vallarta Supermarket.

“We are proud to be part of this new development, working with retailers like Vallarta and CVS whom remain active in this economy,” said Scott Burns (top right photo), senior vice president of Wilson Commercial Real Estate.

CVS Pharmacy will develop a 14,576-square-foot retail store at the center.

Scott Burns of Wilson Commercial Real Estate represented the landlord, May Centers . Mark Esses of California Realty Group represented CVS Pharmacy

Contact: David Ebeling, Ebeling Communications, (949) 278-7851, david@ebelingcomm.com

Arnstein & Lehr LLP partners Phillip M. Hudson III, Hilda Piloto negotiate resolution to $100M real estate dispute

MIAMI, FL – Phillip M. Hudson, III (top left photo)  and Hilda Piloto (top right photo)  partners with Arnstein & Lehr LLP recently negotiated the resolution of a $100 million dispute between developers South Florida Federal Partners and related entities (SFFP), its lender Dexia Real Estate Capital Market and its general contractor, Moss & Associates.

The confidential agreement involves four South Florida buildings now occupied by the U.S. Citizenship and Immigration Services, pursuant to long-term leases. The Properties are being sold to an unrelated third party which sale will consummate the settlement process.

“Given the size of the project, the large sums involved, and the number of subcontractor claims this was not an easy matter to settle,” said Hudson, head of the firm’s commercial and bankruptcy department in Miami, “We successfully resolved what could have been protracted and costly litigation for all parties.” There were five pending lawsuits settled pursuant to the agreement.

SFFP, whose principals include James M. Beeson Jr., Mark Levin and Darius W. Gaskins Jr., signed the federal agency to a long-term lease prior to beginning construction. However, the projected $80 million project experienced funding problems yet SFFP and Moss worked together to finish the buildings in 2009. Total cost exceeded $100 million.

“Challenges arose even with full occupancy of the buildings,” said Hudson, who has handled sophisticated workout transactions for over 25 years. “The developers needed alternate financing as the buildings neared completion, but the capital markets had dried up due to the banking crisis and downturn in the economy.”

Construction delays and disputes over loan payments and fees complicated matters further and escalated costs, but the developers and Moss worked together to complete project.

“After Dexia and Moss filed their respective lawsuits, I sat down with the various parties and worked through each issue,” said Hudson. “We discussed what each side wanted and what was realistic. In a matter of months, we came to a viable agreement. The good news is that everyone is getting paid a substantial amount of their claim – the lender, the general contractor and sub contractors,” he said.

Contact:
 Don Silver, Boardroom Communications, donsil@boardroompr.com, (954) 370-8999,  (954) 629-7523
Lauren Simo, (954) 370-8999 , (954) 370-8892 Fax , lsimo@boardroompr.com

RJS Realty Group Completes $74M Retail Sale in Port St. Lucie, FL

PORT ST. LUCIE, FL--RJS Realty Group has arranged the sale of The Landing at Tradition (above centered photo)  and Tradition Village Center, (bottom centered photo)  two exceptional retail assets totaling a combined 610,753 square feet, and situated in the impressive master planned community of Tradition in Port St. Lucie, Florida.

 Bob Sullivan, (top right photo)  President and Steve Miskew, (top left photo)  Managing Director of RJS Realty Group, were the exclusive agents representing the seller, Core Communities, and were the sole brokers in the sale of these assets to Inland Real Estate Acquisitions of Oak Brook, IL.

The purchase price for the 472,285 square feet conveyed was a combined $73.7 million.

The Landing is a 498,332 square foot power center anchored by a 138,468 square foot Target (not conveyed), TJ Maxx, Bed Bath & Beyond, Old Navy, Sports Authority, Babies R’ Us, PetSmart, LA Fitness, and Michaels, among other noted national retailers.

Completed in 2007, this attractive center is situated with exceptional exposure along I-95 at Gatlin Blvd. The sale of The Landing also included four vacant outparcels totaling 12.5 acres.

Tradition Village Center is a uniquely designed, 112,421 square foot neighborhood center anchored by a 45,600 square foot Publix Supermarket, and complemented by a host of local retailers. It was completed in 2006 and is situated at Tradition’s beautiful Town Center, the centerpiece of this dynamic family community.

“These are two of the most attractive and well-positioned retail assets in South Florida”, noted Miskew and Sullivan.

“Their location in this exceptional residential community and proximity to the adjacent 150-acre Florida Center for Innovation, home to the renowned Torrey Pines Institute, Oregon Health & Science University’s Vaccine Gene Therapy Institute and Mann Research Center as well as the nearby planned Digital Domain Studios, will ensure their continued viability.

"We had a significant level of interest in these assets from many of the industry’s most capable investors, and we are pleased to have consummated the sale with Inland. We believe that these exceptional centers, developed in one of Florida’s finest master planned communities, will prove to be a solid investment for Inland.”

RJS Realty Group was founded by Sullivan and Miskew in 1986, and provides comprehensive Investment Sales services to the commercial real estate industry. The firm has completed a wide range of transactions totaling over $3 billion on behalf of many of the industry’s most recognized owners.

For further information please visit www.rjsrealty.com or phone us at 561-659-9771.

UCF Business Incubator-Sanford Welcomes City, County Officials to Open House Showcasing Expanded Facilities in Orlando

SANFORD, FL --- The UCF Business Incubator-Sanford recently hosted local business leaders and city and county officials during an open house to showcase its newly expanded facilities at 110 W. First St. in Sanford.

Rafael Caamano, point of contact for the UCF Business Incubator-Sanford, said the facilities at the UCF Business Incubator-Sanford (top right photo)  have grown from 3,800 square feet of office space to 5,700 square feet and is currently housing five client companies.

Caamano said the UCF Business Incubator-Sanford expects to add one more client company within the next two weeks, and with the expansion there is now available space for a couple more new companies.

The University of Central Florida’s Business Incubation Program operates eight business incubation sites at the UCF campus, Research Park and E. Colonial Drove in Orlando, as well as Sanford, Leesburg, Winter Springs, Kissimmee and St. Cloud.

For more information, please contact:

Rafael Caamano, UCF Business Incubation Program, 407-407-4297, rcaamano@mail.ucf.edu;

Gordon Hogan, Director of Operations, UCF Business Incubation Program 407-882-1577

ghogan@mail.ucf.edu;

Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142 or LvershelCo@aol.com

Crossman & Co. Senior Associates Courtney Kowalchuk and Justin Greider named Top Central Florida Brokers by CoStar Group

ORLANDO, FL-- Crossman & Company Senior Associates Courtney Kowalchuk (top right photo) and Justin Greider (top left photo) were each recently given CoStar Group’s Power Broker award in the Central Florida retail property category for 2009.

CoStar Group, the leading provider of marketing and information services to commercial real estate professionals in the U.S. ranked area retail property brokers by volume of commercial leases transacted.

John Crossman, president of Crossman & Company, said Kowalchuk negotiated retail leases valued at $17 million in 2009. Greider’s lease and sales transactions were valued at more than $16.3 million.

For more information,  please contact:
John Crossman, CCIM, President, Crossman & Company, 407-581-6218, jcrossman@crossmanco.com
Molly Delahunty, Research Analyst, Crossman & Company, 407-581-6220, mdelahunty@crossmanco.com
Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142, lvershelco@aol.com.

Cambridge Provides $4.68M FHa-Insured HUD Lean Loan to Refinance Transcendent Healthcare of Boonville, IN

Cambridge Realty Capital Companies has closed on a $4.68 million FHA-insured HUD LEAN loan for Transcendent Healthcare of Boonville, a 72-bed skilled nursing home in Boonville, Indiana.

Cambridge Chairman Jeffrey A Davis said the fully amortized, 27-year term loan was arranged for the owner, an Indiana limited liability company.

 Cambridge Realty Capital Ltd. of Illinois, the Cambridge affiliate responsible for underwriting insured healthcare loans, closed the transaction using HUD’s Section 232 LEAN program.

Davis said the loan was processed in the “Green Lane,” a special queue created by HUD to speed the underwriting process for low-risk loans.

Contact:  Evan Washington, Phone: (312) 521-7604, Fax: (312) 357-1611, E-Mail: ew@cambridgecap.com

Arbor Closes Four Fannie Mae DUS® Loans Totaling Over $27M

UNIONDALE, NY- Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of four (4) loans under the Fannie Mae DUS® product line. These loans include:

Spring Ridge Apartments, Danbury, CT  (top left photo) – A 138-unit complex in the amount of $15,112,500 funded under the Fannie Mae DUS® product line. The 10-year loan amortizes on a 30-year schedule and carries a note rate of 5.73 percent

Park Ridge South Apartments, Danbury, CT – A 47-unit complex in the amount of $5,400,100 funded under the Fannie Mae DUS® product line. The 10-year loan amortizes on a 30-year schedule and carries a note of 5.73 percent.

Mountain View Apartments, Bethel, CT – A 36-unit complex in the amount of $3,313,100 funded under the Fannie Mae DUS® product line. The 10-year loan amortizes on a 30-year schedule and carries a note rate of 5.73 percent.

Grassy Plain Estates, Bethel, CT – A 36-unit complex in the amount of $3,187,500 funded under the Fannie Mae DUS® product line. The 10-year loan amortizes on a 30-year schedule and carries a note rate of 5.73 percent.

The loan was originated by Edward Petti, (top right photo) Director, in Arbor’s full-service New York, NY lending office.

 “These properties, known as the BRT Danbury Portfolio, were a refinance of an existing Fannie Mae loan,” said Petti. “The borrowers were eager to close and Arbor was able to do so within 25 days of issuing the application.”

Arbor Closes $9.5M  Fannie Mae DUS® Loan for Four Seasons Apartments in Raleigh, NC

UNIONDALE, NY) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $9,500,000 loan under the Fannie Mae DUS® Loan for the 244-unit complex known as Four Seasons Apartments in Raleigh, NC.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 5.82 percent.

Joseph Donovan, (lower right photo) Senior Vice President, Production Management, in Arbor’s full-service Boston, MA lending office said, “We were pleased to deliver a refinance loan that met the specific timing needs for our valued client.”

Contact:  Ingrid Principe, P: 516.506.4298, F: 516.542.2555, http://www.arbor.com/, Follow us on Twitter @ arbor1

Southern Commercial Completes 46,440-SF Sale in Orlando, FL

ORLANDO, FL.--Principals Tom McFadden, SIOR and William “Bo” Bradford, CCIM, SIOR of Southern Commercial Real Estate Advisors completed a 46,440 square foot sale at 7101 Lake Ellenor Drive, (top left photo) Florida.

McFadden and Bradford represented the Buyer, Pine Castle Christian Academy. The Seller, Patriot-BSP 1701 Lake Ellenor Associates, LLC was represented by Matt Sullivan of Colliers Arnold.

Media Contact: Celeste MacKenzie, 321-281-8503, cmackenzie@southerncommercialre.com

Fisher & Phillips Leases 50,000 SF at 12th & Midtown in Atlanta for New Headquarters

ATLANTA (June 23, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that it represented Fisher & Phillips LLP in its lease of approximately 50,000 square feet of space at 12th & Midtown (top left photo) , located at 1075 Peachtree St.

Kay Davis, senior vice president, Tenant Advisory Group and Law Firm Group, represented the tenant, which is relocating from 945 East Paces Ferry Road in Buckhead.

“This was the perfect opportunity for Fisher & Phillips to take advantage of the economic climate to capture one of Atlanta’s prime office locations, a benefit for both the company’s clients and its employees,” said Davis.

“They were patient and willing to time the requirement to the market, which provided tremendous bonuses for them in every aspect of the lease. The building’s unique floor plates, ample conferencing and meeting space, state-of-the-art fitness center and parking are all well-suited for Fisher & Phillips’ needs.”

Completed in 2009, the 12th & Midtown mixed-use development is located in Atlanta’s Midtown Mile area, (middle right photo)  one of Atlanta’s most vibrant areas hosting a number of upscale retail shops, restaurants, residential buildings and office towers.

Fisher & Phillips’ two floors of space afford panoramic views of Piedmont Park, the lake and the beautiful downtown Atlanta skyline. The property is connected to the new Loew’s hotel, which was also a major benefit for the law firm, according to Davis.

Fisher & Phillips LLP is one of the oldest and largest law firms in the country representing management in the areas of labor, employment, civil rights, employee benefits and immigration law.


Grubb & Ellis Expands into Southern Delaware with addition of Sandra Ware as Vice President

WILMINGTON, Del. (June 23, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that Sandra Ware (bottom left photo)  has joined the company as vice president, focusing on land and investment sales in Kent and Sussex counties.

“We are excited about Sandra’s addition and our expanding presence in Delaware,” said Bob Clements, executive vice president and managing director of Grubb & Ellis’ Philadelphia, Wilmington and southern New Jersey area offices.

“Her knowledge and involvement in land use regulations and legislation make her an obvious choice for land and investment sale representations.”

With nearly 15 years of real estate experience and more than eight years dedicated to the commercial real estate market, Ware was most recently a senior salesperson with Ocean Atlantic Realty, where she focused on representing clients in the acquisition and disposition of commercial properties. She began her career with CENTURY 21 in 1996.

A native Delawarean, Ware is an active member of the community, participating in a number of initiatives to preserve open space. She serves on the statewide board of directors for United Way of Delaware and was a charter member of the Rehoboth Beach-Lewes Sunrise Rotary Club.

Through the organization she co-founded the Positive Growth Alliance, which strives to defend land rights and keeps the 3,000 plus members of the Positive Growth Alliance informed of current legislative activity that may affect farmers, land owners and others.

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

Grubb & Ellis Announces Closing of Over-Allotment Option for Convertible Notes

SANTA ANA, CA  (June 24, 2010) — Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that it sold an additional $1.5 million of its 7.95% unsecured convertible notes due in 2015 pursuant to the exercise of the over-allotment option granted to the initial purchaser in connection with the company’s private note offering of $30 million that closed on May 7, 2010.

The company intends to use the net proceeds of approximately $29.4 million from the sale of the aggregate of $31.5 million of notes to fund growth initiatives, short-term working capital and general corporate purposes.

The notes are convertible into the company’s common stock at an initial conversion rate of 445.583 shares per $1,000 principal amount of notes, subject to the Indenture governing the notes dated as of May 7, 2010.

All of the notes in the private offering were sold to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended.

The notes and the underlying common stock issuable upon conversion have not been registered under the Securities Act or applicable state securities laws.

 In connection with the private note offering, the company agreed to file with the Securities and Exchange Commission no later than June 30, 2010 a shelf registration statement on Form S-3 registering, on behalf of the purchasers of the notes, the resale of the notes and the shares of common stock issuable upon conversion of the notes.

The company also intends to convert its currently effective registration statement on Form S-1 that it previously filed on behalf of certain purchasers of its 12% cumulative convertible preferred stock to a registration statement on Form S-3, which conversion will not result in the offering or registration of any additional securities of the company.

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

Marcus & Millichap Brokers Multifamily Sale in Texas Under AARA Act

AUSTIN, Texas, June 22, 2010 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has brokered the sale of Malibu Apartments, (top left photo)  a 218,600-square foot, 476-unit multifamily property in Austin.

Will Balthrope (middle right photo), a vice president investments in the firm’s Dallas office; Joe James, a multifamily investment specialist in St. Louis; and Ryan Epstein, a senior associate in San Antonio, represented the seller.

Marcus & Millichap also represented the buyer, The Mulholland Group LLC, a New York State-based national multifamily housing company.

“To date, this transaction is the largest exchange-funding project in the state of Texas, and possibly the country, under the American Recovery and Reinvestment Act,” says Balthrope

. “The Mulholland Group’s investment includes tax credits from the Department of Housing and Community Affairs and funds from the city of Austin Affordable Housing GO Bonds,” he adds.

“We are proud to provide quality and affordable housing opportunities for families in Austin and look forward to being actively involved as good stewards in the community,” says Royce A. Mulholland (middle left photo) , president and CEO of The Mulholland Group LLC.

Located at 8600 North Lamar Blvd. in Austin’s north central submarket, the property is close to major employers, the University of Texas and major freeways.

Malibu Apartments sits on a well-maintained 14.17-acre site with a swimming pool, fitness center, playground and courtyards. Floor plans include a 350-square foot efficiency unit, a 500-square foot one-bedroom apartment and a 750-square foot two-bedroom apartment.

The property is currently 96 percent occupied, has been recently upgraded and is in good condition.

Somerset Apartments in Lake Worth, FL Sold for $1.8M

LAKE WORTH, FL – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has brokered the sale of Somerset Apartments,(bottom right photo)  a 24-unit, 20,748-square foot apartment building in Lake Worth. The sales price of $1,825,000 represents $76,042 per unit and $88 per square foot.

Brandon Rex (bottom left photo), a senior investment associate and a senior director of the firm’s National Multi Housing Group in Fort Lauderdale, represented the seller and the buyer, HH Somerset LLC, a real estate investment company headquartered in Delray Beach, Fla.

“Somerset Apartments changed hands in 2005 and was completely renovated with the intention of being sold as condominiums,” says Rex.

The property is located at 102 N. Lakeside Drive, on the corner of N. Lakeside Drive and Lucerne Avenue in Lake Worth. Lucerne Avenue is the major thoroughfare through downtown Lake Worth.

Somerset Apartments is situated west of the Intracoastal Waterway and the Atlantic Ocean. The property is within walking distance of downtown Lake Worth, the Lake Worth Municipal Golf Course, beaches, restaurants and shopping.

Somerset Apartments is comprised of 12 one-bedroom/one-bath units and 12 two-bedroom/two-bath units. The property was built in 1971 and completely renovated in 2006.

 Renovations include new impact glass windows, impact exterior doors, tile and carpet flooring, new custom kitchen cabinets, granite countertops, new black appliances, new bathrooms with all new fixtures, new central air-conditioning systems, all new hot water heaters, washer/dyer systems for each unit, new interior doors and interior and exterior paint.

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

Sale of Washington Harbour in Washington, D.C. closed by HFF

WASHINGTON, D.C. – The Washington, D.C. office of HFF (Holliday Fenoglio Fowler, L.P.)has closed the sale of Washington Harbour, (top centered photo)  a Class A, two-building mixed-use development on the Potomac River in Washington, D.C.

The HFF investment sales team was led by executive managing director Stephen Conley,(top right photo)  managing director Andrew Weir (top left photo)  and director Elizabeth Taylor Johnston. Rockpoint Group and MRP Realty purchased the property free and clear of debt.

Located at 3000 and 3050 K Street NW, Washington Harbour is situated directly on the Potomac River in the Georgetown submarket of Washington, D.C.

The property includes two towers totaling 532,601 square feet; 456,376 of office space and 76,225 square feet of retail space.

Washington Harbour is 86% leased to more than 20 tenants, the largest of which are law firms Foley & Lardner and Kelley Drye & Warren. On-site amenities include a two-story, 489-space underground parking garage and a fitness center.

“The sale of Washington Harbour is the largest investment sale transaction this year for HFF D.C. and clearly demonstrates that there are buyers out there for properties with the right combination of tenancy, location and amenities,” said Conley.

“Washington Harbour is the only office building in downtown Washington, D.C. that has direct access to the Potomac River,” added Weir. “As a result, it has become a destination for residents and tourists seeking riverfront dining as well as office tenants seeking a location with unparalleled views of downtown in a vibrant, amenity-rich environment.”

Rockpoint Group, L.L.C. is a global real estate investment management firm with offices located in the U.S., Europe and Asia.

Rockpoint targets a broad range of real-estate related investments across all asset classes and geographic regions, with particular focus on value creation and distressed/restructuring opportunities. The firm invests primarily on behalf of public and private pension funds, endowments and financial institutions.

MRP Realty is a strategic real estate development and investment firm with projects active throughout the Washington, D.C. metropolitan area. The management team includes some of the region's most experienced real estate executives, with a track record of over 17 million square feet of development at a total capitalization in excess of $3 billion.

Contacts:

Stephen C. Conley, HFF Executive Managing Director, (202) 533-2500, sconley@hfflp.com
 Andrew M. Weir, HFF Managing Director, (202) 533-2500, aweir@hfflp.com
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com

Miami-Dade Jury Renders $14+Million Verdict in Real Estate Partnership Dispute

MIAMI, FL – After a hotly contested seven-day trial, a jury verdict and Final Judgment exceeding $14 million was awarded to Franco Investments, LLC in two separate cases involving conspiracy, civil theft and breach of fiduciary duty against several entities and individual defendants, who were managers and members of Pine Run Developers LLC, a company engaged in the purchase, development and marketing of real estate in Florida.

Plaintiff Franco Investments, LLC (Franco) was represented by attorneys Robert Zarco (top right photo)  and Alejandro Brito (top left photo)  with Zarco, Einhorn, Salkowski and Brito in Miami.

The first case stemmed from an investment Franco made in 2003 to purchase a 25% ownership interest in Pine Run Developers, which then owned a 9.88-acre parcel located at Melaleuca Lane in Palm Beach County, Florida.

 In March of 2004, Franco purchased an additional 9.375% property interest in Pine Run by becoming a member of Green Palm, which owned 50% of Pine Run Developers.

Later in June of 2004, Franco agreed to sell back its total ownership interest to the partnership for $1,1000,000 based on a $3.2 million valuation of the property.

 But according to the lawsuit, the individual defendants actually got a higher valuation at one point for $3.657 million, but deliberately failed to disclose this higher valuation to Franco.

 Instead, the individual defendants breached their fiduciary duties to Franco by fraudulently inducing Franco to sell his interest at a lower price, according to the complaint. To make matters worse, Pine Run failed to show up at the closing to acquire Franco’s interest!

Most importantly, when Franco joined the business venture, one of his non-negotiable conditions was that all checks drawn from the Pine Run account needed to possess the signatures of all three of Pine Run’s managers (including Franco’s), and all three managers, acting together, were required to approve any expenses and make all company decisions unanimously.

The Operating Agreement was modified to incorporate this important condition. However, immediately after the Agreement was signed, the company and its managers proceeded to write checks for unapproved expenses and did so without the proper number of signatures.

“The signature and permission of Franco Investments, LLC was like the third key to the safe that would protect all the members,” said Zarco. “Rather than keeping the checks and balances of the company in place, the individual defendants proceeded to withdraw substantial monies inappropriately.”

In the trial, it was determined that more than $1.47 million was taken from the company’s bank accounts inappropriately.

The jury awarded civil theft damages of $2M, which is tripled as a matter of law to $6 million, and $2.7 million for pre-judgment interest, for a total of $11.7 million against the individual defendants - Michael Levin, Hannah Levin, Jose Corkidi, Irving Carpman, Max Carlos Lederman and Jacques Aghion.

In the second case, three of the defendants in the initial case, Max Carlos Lederman, Jacques Aghion and Jose Corkidi, were found guilty of conspiracy and breach of fiduciary duty. An additional verdict of $2.7 million was awarded, bringing the total verdict to more than $14 million.

The cases were heard by Senior Judge Eugene Fierro (lower left photo) who was appointed by the Miami-Dade Circuit Court’s Complex Litigation Division.

“Judge Fierro did a fabulous job in controlling the parties in a way that allowed us to conclude the trial in less than eight days, even though the trial was originally scheduled to last no less than two or three weeks,” said Zarco.

 “The judge acted decisively in the administration of the proceedings, in handling the evidence and in ruling promptly throughout the entire process in a way which kept the case flowing smoothly.”

Zarco Einhorn Salkowski & Brito, P.A. is an internationally recognized law firm providing high end legal services in the areas of franchisor/franchisee, licensing, manufacturer/ distributor, automobile, truck and equipment dealers disputes, and complex commercial law including litigation, arbitration and mediation in United States federal and state courts. For more information, visit the firm’s web site at www.zarcolaw.com.

Media Contact: Jennifer Clarin or Todd Templin of Boardroom Communications, 954-370-8999 or jclarin@boardroompr.com.