New Wyndham Hotel Opens in New Orleans

PARSIPPANY, NJ– Wyndham Hotels and Resorts, LLC, a subsidiary of Wyndham Worldwide Corporation (NYSE:WYN), announced its continued expansion in Louisiana with the opening of the 170-room Wyndham Garden® Hotel Baronne Plaza  New Orleans.(top left photo)

Located at 201 Baronne Street in the city’s National Historic Lower Central Business District, the new Wyndham® hotel, built in 1931, was completely renovated in 2009 and still features the building’s original Art Deco stone and granite façade.

The hotel is just 12 miles from Louis Armstrong New Orleans International Airport, within minutes of Ernest N. Morial Convention Center and only one block from the famous French Quarter, home to countless jazz clubs, restaurants and entertainment venues.

“Few cities possess the historical significance, heritage and unique spirit that exist in New Orleans,” said Jeff Wagoner (lower right photo), president of Wyndham Hotels and Resorts.

 “We are proud to welcome the newest Wyndham offering in one of America’s most beloved travel destinations -- with its great location, personalized services and classic New Orleans style, the Wyndham Garden Hotel Baronne Plaza is a wonderful addition to the growing Wyndham family and in serving visitors to this unique and vibrant city.”

Contact: Kathryn Zambito, +1 (973) 753-6590, kathryn.zambito@wyndhamworldwide.com

Arbor Closes $1.5M Fannie Mae DUS® Small Loan for Villa Serena Apartments in Pittsburg, CA

Uniondale, NY-- Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $1,500,000 loan under the Fannie Mae DUS® Small Loan product line for the 48-unit complex known as Villa Serena Apartments in Pittsburg, CA.

The 10-year loan amortizes on a 20-year schedule and carries a note rate of 5.56 percent.

The loan was originated by Brian Scharf (top right photo),  Director, in Arbor’s full-service Uniondale, NY lending office.

 “The low-leverage request on Villa Serena was easy to execute,” said Scharf. “Current occupancy levels required a waiver from Fannie Mae; however, given the long-term ownership and low-leverage level, the deal was approved and closed in five weeks.”

Arbor Closes $1M Fannie Mae DUS® MAH Coop Loan for Birch Run Cooperative in Romulus, MI

Uniondale, NY - - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $1,000,000 loan under the Fannie Mae DUS® Multifamily Affordable Housing Coop product line for the 111-unit complex known as Birch Run Cooperative in Romulus, MI.

The 30-year loan amortizes on a 30-year schedule and carries a note rate of 7.41 percent.

The loan was originated by Michael Jehle (lower right photo), Midwest Regional Director, in Arbor’s full-service Bloomfield Hills, MI lending office.

“In addition to paying off HUD, our loan will provide funds for capital improvements to the property. All the members of the cooperative will enjoy the benefits from these improvements,” said Jehle.

Arbor Closes $6M Fannie Mae DUS® Coop Loan for Three Fountains West Cooperative in Indianapolis, IN



Uniondale, NY (July 22, 2010) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $6,000,000 loan under the Fannie Mae DUS® Coop product line for the 300-unit complex known as Three Fountains West Cooperative in Indianapolis, IN.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 5.31 percent.

The loan was originated by Michael Jehle, Midwest Regional Director, in Arbor’s full-service Bloomfield Hills, MI lending office.

 “All proceeds from this loan will be put back into the property for kitchen and bathroom upgrades, new flooring and new windows,” said Jehle. “The members of the cooperative are thrilled to receive these improvements to their units.”

Contact: Ingrid Principe, Marketing Manager, Arbor Commercial Mortgage, 333 Earle Ovington Blvd., Suite 900, Uniondale, NY 11553, P: 516.506.4298, F: 516.542.2555, http://www.arbor.com/, Follow us on Twitter @ arbor1

John Kerin Named President and CEO of Marcus Millichap

ENCINO, CA– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, announces that John Kerin (top right photo)  has been named the president and chief executive officer of the firm effective July 1, according to founder and chairman George M. Marcus (top left photo).

Kerin is a senior vice president and managing director of the firm, overseeing 18 offices nationwide.

“Marcus & Millichap is entering a new and exciting phase of growth and John is uniquely qualified to lead our efforts to expand market share and improve our agent support and client services,” says Marcus.

 “The depth of John’s experience and having supervised numerous operations throughout the country for the past several years gives him the knowledge and understanding essential to strengthening our value proposition,” he adds.

Since joining the firm in 1981, Kerin ranked among the top 10 agents nationwide in 1985 and 1986 and was promoted to senior investment associate.

In 1987, he was promoted to regional manager of the Los Angeles office where he succeeded in making it one of the top-producing offices. He was elected first vice president in 1994 and managing director in 1996.

“The recent market dislocation reinvigorated the importance of value-added brokerage, which has always been Marcus & Millichap’s driving force,” says Kerin.

 “We have demonstrated our unique ability to help investors strategize and have executed more transactions than any other source in one of the most difficult markets.

"More than any other time, there are significant opportunities to bring more efficiency to the market place and substantially grow our financing, transaction and advisory services.”

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

HFF closes sale of medical office building in Lewisville, TX

DALLAS, TX – The Dallas office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has closed the sale of an 18,000-square-foot medical office building fully leased to US Oncology Holdings in Lewisville, Texas.

HFF director Coler Yoakam (top right photo)  and managing director Mark West (top left photo)  led the investment sales team on behalf of the seller, CC Lewisville MOB, L.P. A health care REIT purchased the property free and clear of debt.

The property is located at 2790 Lake Vista Drive close to Interstate 35 East and State Highway 121 in the northern Dallas suburb of Lewisville.

Completed in 2000, the property is leased to Physician Reliance, LP (US Oncology Holdings) on a NNN basis. US Oncology Holdings is a national oncology services company and cancer treatment and research network.

Contacts:

Coler Yoakam, HFF Director, (214) 265-0880, cyoakam@hfflp.com
Kristen Murphy, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com


HFF arranges $2.65M financing for Village at Timarron in Southlake, TX

DALLAS, TX – The Dallas office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has arranged $2.65 million in financing for Village at Timarron (middle left photo), a 36,284-square-foot, neighborhood/specialty center in Southlake, Texas.

Working exclusively on behalf of Timarron Venture, Ltd., a Dallas-based limited partnership assembled by Cencor Realty Services, HFF associate director Travis Anderson placed the seven-year, fixed-rate loan with First National Bank & Trust Co. of McAlester.

Loan proceeds were used to place first lien debt on the property, which was acquired in April by Timarron Venture, Ltd.

Situated at the southeast corner of Southlake Boulevard (FM 1709) and Byron Nelson Parkway, the property is located in Southlake’s main retail corridor.

Village at Timarron is leased to tenants including Frost Bank, Spa D’Aroma, Studio A, Nelson’s, Adventure Kids, Salon DeMello, Hexter Fair Title Company, Duncan Cleaners and K&C Tailor.

Cencor Realty Services offers property management, asset management and development services. Cencor is one of the largest property management firms in Texas and one of the 25 largest such firms in the United States.

Cencor currently represents approximately 21 million square feet of space throughout Texas' major market areas of Austin, Dallas, Fort Worth, Houston and San Antonio.


 HFF arranges sale of promissory note secured by a senior mortgage encumbering a mixed-use condominium in Coral Gables, FL

MIAMI, FL – The Miami office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has arranged the sale of a promissory note secured by a senior mortgage encumbering The Ponce De Leon Condominium (lower right photo), a mixed-use condominium building in Coral Gables, Florida.

HFF managing director George Vail director Jaret Turkell and executive managing director Manny de Zárraga (bottom left photo) led the investment sales team on behalf of Wells Fargo Bank, N.A. W Capital Group purchased the note.

Completed in 2008, The Ponce De Leon Condominium has 50 one-, two- and three-bedroom units plus 20 retail and office condominiums.

The note was secured by the 32 unsold residential condominium units totaling approximately 36,395 square feet as well as eight commercial condominium units totaling approximately 6,836 square feet.

Community amenities include a swimming pool, pool bar area, Jacuzzi, BBQ area, fitness room, sauna and a three-floor, 144-space parking garage. The Ponce De Leon Condominium is located at 1607 Ponce De Leon Boulevard close to Miracle Mile, Northwestern University, and Coral Gables Hospital in downtown Coral Gables.

Contacts:

George Vail, HFF Managing Director, (305) 448-1333, gvail@hfflp.com
Jaret Turkell, HFF Director, (305) 448-1333, jturkell@hfflp.com,
Kristen Murphy, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com

Beech Street Capital Hires Industry Veteran as Senior Vice President--Loan Origination

 BETHESDA, MD – Beech Street Capital announced that Larry Sneathern has joined the firm as senior vice president of loan origination. Sneathern will be responsible for originating multifamily loans nationwide.

“Larry is a fantastic addition to our team,” said Grace Huebscher (top right photo), president and chief executive officer of Beech Street Capital. “With almost 20 years of DUS experience and over $4 billion in multifamily origination, Larry will be integral to the growth of Beech Street’s origination platform.”

Prior to joining Beech Street Capital, Sneathern was with PNC ARCS for 15 years and most recently was regional senior vice president. Six of his 15 years at PNS ARCS, Sneathern was the compnay’s top loan producer.



“I am very excited to become a member of the Beech Street Capital team,” said Sneathern. “I believe Beech Street is returning to the entrepreneurial lender model of the late-90’s; the firm is not encumbered by a legacy book or bureaucracy so we can be more responsive to the borrower’s needs.”

Sneathern will be working out of the Company’s Dallas office.

Contact:  Sharee Lawler (240-507-1923), EMAIL: slawler@beechstcap.com

Tremont Structures $4.5M Financing for Wisconsin Manufactured Housing Community

CHICAGO, IL--The Chicago office of Tremont Realty Capital structured financing for the refinance of Oakwood MHC (top left photo), a 215-unit manufactured housing community located in Kenosha, WI.

Tom Lorenzini, (middle right photo)  a Managing Director with Tremont, arranged the $4,500,000 loan, which was funded through one of Tremont’s correspondent relationships.

The five year non-recourse loan provided for roughly 63% loan-to-value with a 5.25% interest rate.

According to Lorenzini, “Given Tremont’s successful track record with manufactured housing communities, we were able to ensure a smooth and timely closing for the borrower despite the challenging capital markets.”

Tremont Realty Capital, LLC is a national real estate investment and advisory firm, which makes direct debt and equity investments and provides institutional advisory services.

Direct programs include high leverage bridge loans, short and long term mezzanine loans and equity capital. The Chicago office of Tremont Realty Capital is located at 30 N. LaSalle Street, Suite 2050, Chicago, IL 60602. The phone number is 312.236.0960 and the fax number is 312.236.1534. You can visit Tremont on the Internet at www.tremontcapital.com.

For additional information on this transaction, please contact:

Tom Lorenzini at 312.236.0960 or tlorenzini@tremontcapital.com
Aimee Munsey, Senior Associate, Marketing & Communications, Tremont Realty Capital, 200 State Street, 13th Floor, Boston, MA 02109, p: 617.867.0700 x784, f: 617.867.0077, amunsey@tremontcapital.com, http://www.tremontcapital.com/
PLEASE NOTE NEW ADDRESS ABOVE.

Richfield Hospitality and Shelbourne Falcon Investors Complete Acquisition of Renaissance Syracuse Hotel

SYRACUSE, NY/DENVER, CO—Richfield Hospitality, a leading hotel management company, has completed the acquisition of the 279-room/suite Renaissance Syracuse Hotel (top left photo) in a 50-50 joint venture with Shelbourne Falcon Investors for an undisclosed amount.

The complex transaction involved acquiring the hotel’s loan and negotiating a deed in lieu of foreclosure exchange with the owner. Richfield will operate the hotel.

The hotel will convert to the Crowne Plaza brand in mid-August and begin a $5 million renovation in September that includes upgrading all guest rooms and public spaces, as well as enhancements to the exterior. The renovation will occur in phases to minimize potential guest disruptions.

Mark Zimmerman, a 30-year hotel veteran, has joined the hotel as general manager. Previously, he was general manager at another Richfield property in Albany.

 His career includes more than 17 years with Marriott International, including sales and marketing and operations, where he won awards for operating excellence. He is a member of the Advisory Boards for SUNY Delhi University and Schenectady Community College.

“Upon conversion to the Syracuse Crowne Plaza, this well located, newly renovated property will be well positioned to quickly gain market share,” said Greg Mount,  (middle right photo)Richfield Hospitality president.

“This is our first acquisition under our new growth strategy focused on adding hotels to our portfolio as owners/joint venture partners and through third-party management. We also have added third-party and asset management assignments.

"We have seen an increase in acquisition opportunities to our already robust pipeline since the first of July. We continue to focus on hotels and resorts in the U.S., Canada and the Caribbean.”

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

1,500 New Condos Trade in Greater Downtown Miami

MIAMI, FL--An average of nearly 500 new condos traded per month in Greater Downtown Miami between April and June 2010, representing a 105 percent increase compared to the 241 units per month average in second quarter of 2009, according to a new Condo Vultures® White Paper™.

Transactions for nearly 1,500 units with 1.8 million square feet of saleable space generated gross sales of $584 million, or $333 per square foot, in the second quarter of 2010.

The flurry of sales activity has reduced the number of new condos under developers' control in Greater Downtown Miami to less than 5,100 units, according to the report based on the Condo Vultures® Official Condo Buyers Guide To Miami™.

The unsold new condos represent about 23 percent of the total new inventory constructed in a 60-block stretch of Greater Downtown Miami between 2003 and 2010. A year ago in July 2009 about 40 percent of the new condos in the same submarket were unsold, according to the licensed Florida brokerage Condo Vultures® Realty LLC.

"In the last year, the landscape of the Greater Downtown Miami's new condo market has begun to take shape," said Peter Zalewski, (bottom left photo)  a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.

 "Nearly 3,800 new condo units have traded in the last 12 months as developers have cut pricing in some cases as much as 51 percent. Based on our early research, four-out-of-every-five-condo deals is being transacted in all cash."

Contact:  Peter Zalewski of Condo Vultures®,  800-750-0517 or by email at peter@condovultures.com

Mid-point of 2010 Highlights Disposition Activity and Continued Leasing Success for IDI

More than 3.6 Million SF Leased YTD in Seven Key Markets

ATLANTA, GA – In the midst of one of the most challenging real estate markets in decades, IDI is marking the mid-point of 2010 with considerable success in both leasing activity and disposition of key assets.

From January to June, IDI tallied leases in excess of 3.6 million square feet in seven of the company’s eight U.S. markets, and sold $264 million worth of existing assets.

Leasing activity was most prevalent in Atlanta with five new leases and two renewals totaling just over 1.9 million square feet.

 Cincinnati saw a total of three new leases for 607,648 square feet leased, including a 360,000-square-foot deal with a third-party logistics provider at the Southpoint One facility. (top left photo)

 Finally, in one of four major deals in the Chicago market (total square footage leased in Q1 and Q2 was 588,367) Ozburn-Hessey Logistics signed a 183,500-square-foot lease at Bolingbrook Corporate Center West. (middle right photo)

The Dallas market saw a renewal of 36,427 at Valwood West A with tenant YKK AP America.

 Renewals were also prevalent in the Ft. Lauderdale market with 106,778 SF in two facilities and a new 7,290-square foot lease at Miramar Centre.(middle left photo)

 Memphis and Philadelphia both saw the expansion of existing leases with Bound Tree Medical (27,243 SF) and International Cargo (42,000 SF), respectively.

And, a new 130,205-square-foot lease was signed with Exel, Inc. in Philadelphia on February 26.

IDI’s 2010 sales activity has also been strong. IDI has completed five sales transactions year-to-date totaling approximately four million square feet in five markets.

Of particular note, IDI’s investment team, in a joint venture with institutional investors advised by J.P. Morgan Asset Management, boasted the largest sale of 2010 when 679,000 square feet at Weston Business Center (lower right photo) sold for $65 million in mid-April.

The Weston facility was sold to RREEF, the real estate investment management arm of Deutsche Bank’s asset management division. Chicago was also home to a significant sale of the 525,000-square-foot, build-to-suit for Freudenberg Household Products at Prairie Point West. The facility sold to Freudenberg Real Estate, L.P. on May 12 for $25 million.

“The level of activity we’ve seen in early 2010 suggests a return to confidence not only in the real estate market, but also in the logistics sector,” said Tim Gunter (top right photo) , president and CEO of IDI. “We anticipate the remainder of the year will see a heightened level of investment activity that will continue to buoy and stabilize the market.”

IDI also received LEED certification from the U.S. Green Building Council in 2010 on one facility completed in 2009. The 525,000-square-foot Prairie Point West facility now owned by Freudenberg Real Estate in Chicago was certified LEED Silver in April 2010.

“IDI weathered a very tumultuous time in our industry well, thanks to our team members across the country and our ability to adapt to the constantly-evolving market,” added Gunter. “We are looking forward to closing 2010 with strong numbers and are excited about what’s on the horizon.”

Contacts:

Kim Hardcastle, Jackson Spalding for IDI, 404-214-0693
khardcastle@jacksonspalding.com
Charlotte Marie Sturtz, Jackson Spalding for IDI, 404-214-3555
csturtz@jacksonspalding.com

CBRE Orlando SOLD: Nine Closings in Orlando in 2010 (January – July 15, 2010)

ORLANDO, FL--CB Richard Ellis is pleased to announce the sale of two more multi-housing communities in Orlando over the last two weeks – their ninth apartment closing in 2010.

The two most recent sales occurred in separate transactions to different buyers.

The properties are Silver Oaks and the Residences at Sabal Point.

Shelton Granade (top right photo)  and Luke Wickham (top left photo)  of CBRE’s Central Florida Multi-Housing Group exclusively represented the sellers on both assignments.

The properties sold range from a value-add deal built in 1990 (Silver Oaks, 320 units) to another bulk sale on a fractured condo community (Residences at Sabal Point in Longwood).

Buyer interest in multi-housing assets in Central Florida has increased significantly over the last few months.

CBRE currently has several other assets under contract, and is generating more than 40 offers on some widely marketed offerings.

For further information, please contact the Central Florida Multi-Housing Group of CB Richard Ellis.

Shelton Granade, Senior Vice President, T 407.839.3103,  shelton.granade@cbre.com

Luke Wickham, Director of Operations, T 407.839.3130,  luke.wickham@cbre.com

Worldwide Auction Realty Services Hosts Global Sale on Winter Garden, FL Estate Aug. 19

ORLANDO - Worldwide Auction Realty Services will host a global auction on Saturday, Aug. 19 to sell a new Winter Garden equestrian estate that is under construction and designer-ready with 75 percent of work completed.


Lori Chipps (top right photo), lead auctioneer for Worldwide Auction Realty Services, said the four-acre estate is located within the Savannah Ridge equestrian community in Winter Garden near Windermere.

The palatial seven-bedroom home offers 13,044 square feet of living space with 19,760 square feet under roof, and features seven bedrooms, seven full baths and four half-baths, a home theater, a game room, three fireplaces, eight-car garage and an attached 2,000 square foot mother-in-law suite.

The estate was originally appraised for $5.8 million, Chipps said. Current bids to complete construction, including an affinity edge pool, total approximately $700,000. Completion will take an estimated 90-120 days, Chipps added.

Erin Wanner (middle left photo),  a luxury home specialist at Stirling Sotheby’s International Realty, is representing the equestrian estate.

The suggested opening bid for the property is $475,000.

“The buyer will be someone looking for a fabulous equestrian estate home at a fraction of what it would cost to build from scratch,” Wanner said, “or a custom home builder or investor who wants to complete construction of the estate and resell it for a substantial profit.”

For a video tour of the Savannah Ridge equestrian estate, go to http://www.youtube.com/watch?v=VFxSZQZzmfg

Bids will be accepted in person, via telephone, and on the Internet. For more information: www.SavannahRidgeAuction.com.

For more information, contact:
Jon or Lori Chipps, Worldwide Auction Realty Services, 800-327-1048, lchipps@wwauctionservices.com;
Larry Vershel or Beth Payan, Larry Vershel Communications 407-644-4142

Morrison Commercial Real Estate Completes 3 Office Lease Transactions Totaling 30,094 SF

ORLANDO, FL (July 20, 2010): Greg Morrison (top right photo) , CCIM, SIOR, Principal of Morrison Commercial Real Estate, announced the completion of three lease transaction totaling 30,094± square feet.

On June 30th, Lisa Bailey (top left photo)  and Phil Marchese (lower right photo)  of Morrison Commercial Real Estate represented the Landlord in leasing 16,126± square feet to AA Gulf Coast Countertops at 2007 Viscount Row for sixty-six (66) months.

Bailey represented the Landlord for Edgewater North Commerce Park in leasing an 8,000± square foot space to Orlando Metropolitan Christian Center on June 1, 2010 for a total of forty (40) months.

 Morrison represented the landlord in renewing a lease for 5,968± square feet to Smith & MacKinnon, P.A. at the Citrus Center on June 17, 2010 for a total of two years.

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

David F. Zwang Joins Grubb & Ellis's Fairfield Office as Senior Vice President, Office Group

FAIRFIELD, N.J. (July 19, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that 27-year real estate veteran David F. Zwang (top right photo) has joined the company as senior vice president, Office Group.

“David has a tremendous track record providing real estate services to major multi-market corporations,” said Eric Stone, executive vice president and managing director of Grubb & Ellis’ Northern and Central New Jersey offices. “His realm of experience greatly enhances our corporate services platform.”

Zwang joins Grubb & Ellis from Cushman & Wakefield, where spent 17 years as director, Corporate and Brokerage Services, responsible for representing clients including Met Life, USI Corporation, Ames Tru-Temper and York Telecom Corporation in leasing and sales needs.

Previously, he was corporate leasing director with the Lansco Corporation, where he created and was responsible for overseeing the firm’s corporate services department. Throughout his career, Zwang has been involved in commercial real estate transactions totaling in excess of $750 million.

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


Grubb & Ellis to Participate in U.S. Department of Energy International Energy Efficiency Pilot Program

SANTA ANA, CA (July 20, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that it is one of eight major U.S. corporations, and the only commercial real estate services provider, selected by the U.S. Department of Energy to participate in the pilot program for the Global Superior Energy Performance Partnership.

 The Partnership is designed to drive continuous improvements in building efficiency through an international network of government agencies, national-level certification programs and other public/private sector organizations.

U.S. Secretary of Energy Steven Chu (middle left photo), along with his counterparts and colleagues from Japan, India, Canada and the European Commission, announced the program today at the Clean Energy Ministerial, a gathering of ministers from 24 governments, in Washington, D.C.

Jack Van Berkel, (middle right photo) Grubb & Ellis’ chief operating officer and president, Real Estate Services, also with David Susoreny, president, Corporate Services, Greg Cichy, senior vice president, Operations, and Michael Groppi, senior vice president, Energy, Sustainability and Technology Solutions, attended the event.

“The fact that the Department of Energy has invited Grubb & Ellis to be a part of this groundbreaking initiative underscores our leadership in energy efficiency and our commitment to sustainability,” said Thomas P. D’Arcy, (lower left photo) Grubb & Ellis’ president and chief executive officer.

 “We’re honored to take part in this important program and look forward to the measurable effects it will have on lessening the impact of commercial properties on the environment. Additionally, we believe our participation in this program will bring our clients long-term energy cost reductions and higher asset values.”

Grubb & Ellis is represented in the Department of Energy’s Commercial Real Estate Energy Alliance by Groppi, who co-chairs the organization’s Existing Building subcommittee, and Robert Sprinker, vice president, who serves as chairman of the HVAC subcommittee. The organization strives to promote technology that will reduce the energy consumption and greenhouse gas emissions of the commercial real estate market.

Contacts:
 Janice McDill,  Phone: 312.696.6707, Email: janice.mcdill@grubb-ellis.com
Erin Mays, 312.698.6735,  erin.mays@grubb-ellis.com

Metro Chicago Office Market Snapshot: Second Quarter 2010

The following summary is designed to provide a brief overview of the Chicago metro office market during the second quarter of 2010.

 For more information or to speak with one of the company’s local market experts, please contact Erin Mays at 312.698.6735 or via email at erin.mays@grubb-ellis.com.

REGION

The region posted a total of 72,000 square feet of positive absorption during the second quarter. This amount slightly offset the negative net absorption posted in the first quarter. Net absorption was 680,000 square feet for the first six months of 2010.

The area currently has just 48,000 square feet of new development under construction – a fraction of the 5.8 million square feet under construction at the market’s peak in 3rd quarter 2007.

Average Class A asking rental rates for the region declined $0.41 from the first quarter to $29.49 per square foot.

Inventory of available sublease space saw a decline in the second quarter to 6.6 million square feet – down from 7.2 million square feet in the previous quarter and at just 53 percent of the peak level of sublease space available in 2002 after the previous recession.

The investment market has resurfaced, with 19 properties valued in excess of $1.3 billion trading during the first six months of 2010. This is 2.5 times the total volume in 2009.

CHICAGO CENTRAL BUSINESS DISTRICT

The vacancy rate in the Chicago CBD office market remained unchanged from the prior quarter at 17.4 percent, with the market posting 12,000 square feet of positive absorption.

Class A average asking rental rates decreased by $0.13 to $36.79 per square foot, full service gross.

No new construction is underway in the CBD.

SUBURBAN CHICAGO

The vacancy rate crept to 25 percent, an increase of 10 basis points from the previous quarter, despite nearly 60,000 square feet of positive net absorption.

The increase is due in part to the delivery of the 119,000-square-foot Rosemont Corporate Center (middle right photo) , which is now partially occupied by Cisco’s corporate offices.

Just one building totaling 48,000 square feet is currently under construction in the I-88 East submarket.

Average Class A asking rental rates in the Chicago suburbs stood at $23.69 per square foot, a decrease of $0.34 from the previous quarter.

Analysis: The market has experienced a slight drop in unemployment and stabilizing vacancy rates; however, improvement in the office demand has yet to be seen.

Tenants are waiting for business to pick up, while landlords in a good capital position hold off on early renewals and new leases until rental rates increase.

 Landlords in a poor capital position are typically unable to make deals due to their struggle to fund tenant improvement allowances and other concessions.

The investment market has seen an increase in activity, though that activity is largely relegated to “trophies and train wrecks” – stable, well-located core assets with a full rent roll of credit tenants locked into long-term leases, or distressed assets priced well below replacement value.

 The pending sale of 300 N. LaSalle (bottom right photo)  indicates that there is plenty of capital available for low-risk investments; however, distressed properties are not coming to market in the volume expected due to banks’ unwillingness to take the financial penalties on their balance sheets associated with foreclosure.

To access the full Chicago Metro Office Trends report and other Grubb & Ellis research publications, visit www.grubb-ellis.com/research.