The Hilton Concord Hotel’s Multi-Million-Dollar Renovation Infuses Smart Upgrades to Provide a Sustainable Experience in San Francisco’s East Bay Area

  

CONCORD, CA, Dec. 27, 2011 – The Hilton Concord Hotel (top left photo), located in the East Bay of San Francisco, is incorporating environmental and sustainable systems into its multi-million dollar hotel renovation anticipated to be fully completed in early 2012.

The hotel is owned and operated by Interstate Hotels & Resorts, the largest U.S.-based global management company.

 “Reinvesting in a leading hotel such as the Hilton Concord ideally positions the Company to take full advantage of the anticipated recovery in the lodging segment,” said Jim Abrahamson (middle right photo), CEO of Interstate.

 In addition to a stunning redesign, the Hilton Concord is a leading example on how to successfully integrate sustainable programs to reduce waste and conserve natural resources.

 “This renovation is allowing us to become a product of intuitive design and contemporary upgrades,” said General Manager Jack Hlavac..

 “It also gives us the opportunity to have a positive impact on the environment by instituting sustainable practices into our operations that conserve natural resources and reduce waste, pollution, and the hotel’s carbon footprint,” “We are able to create efficiencies and cost savings to the hotel operation while also enhancing guest services.”

The Hilton Concord Hotel is located at 1970 Diamond Boulevard. For additional information about the Hilton Concord Hotel, to make reservations, or to plan an upcoming event, please contact the hotel at (925) 827-2000 or visit www.Concord.Hilton.com.

The Hilton Concord Hotel is wholly-owned and managed by Interstate Hotels & Resorts http://www.ihrco.com/

To learn more about the Hilton Concord, visit the website: http://www.concord.hilton.com/. 

Media Contacts:

:Matt Hohenstreet, (925) 349-2609, matt.hohenstreet@ihrco.com

Patrick Daly

Account Supervisor

Daly Gray, Inc.

patrick@dalygray.com

Office:  (703) 435-6293

Cell:  (703) 300-8289

CommerCenters LLC in Orlando shifts focus to International Capital Markets

MAITLAND, FL --- CommerCenters, LLC, which has developed flex warehouse distribution centers that total more than 1.5 million square feet in six Central Florida locations, is shifting its focus to concentrate on private equity funds and investments that target commercial real estate assets and associated service companies.

George Livingston (top right photo), CIPS a principal of CommerCenters, LLC, as well as Chairman of NAI Realvest Development in Maitland and a longtime area real estate investment analyst, said CommerCenters has evolved into an international capital market company that offers proven expertise in commercial real estate development, asset management and long-term growth.

Livingston said CommerCenters funds will invest in rental apartment properties driven by work force and population growth, senior housing and assisted living facilities, and new medical facilities, especially those that are age related.

“The U.S. economy and its commercial real estate market is in the early stage of recovery from a deep and long recession,” Livingston explained.

“The financial markets still suffer from a shortage of capital, yet opportunities for development and investment can be identified and exploited. With a dependable source of equity capital, investors can react to opportunities quickly, and that’s where CommerCenters will focus,” Livingston said.

Livingston added that CommerCenters plans to diversify its investment portfolio across several property types, with multiple developers and investor partners.

Livingston said CommerCenters will look for opportunities that offer solid long-term potential.

“We anticipate returns in the 15 to 20 percent range over a period of seven years,” he said.

CommerCenters, LLC and its subsidiary, Realvest Development, LLC are involved in all aspects of speculative and build-to-suit commercial real estate investment and development from acquisition, planning, design, permitting, and construction through sale or lease.

 Over the past decade, CommerCenters and its development partners have developed over 1,500,000 square feet of industrial and office space in the Central Florida area.

For more information, contact

 George Livingston, Chairman CommerCenters LLC 407-875-9989

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

NAI Realvest Orlando Closes Three Deals in Central Florida

 TLC Engineering for Architecture Extends Lease for 8,240 SF on N. Westshore Blvd. in Tampa, FL

 Orlando and Tampa, FL. – NAI Realvest based in Maitland recently negotiated a new lease agreement for 8,240 square feet of Class A office space at 500  N. Westshore Blvd. in Tampa. 

 Paul P. Partyka (top right photo), managing partner at NAI Realvest, negotiated the lease representing the tenant Orlando-based TLC Engineering for Architecture with an assist from Chairman George Livingston and Christie Alexander (top left photo), principal.

 “TLC Engineering, which has 10 offices throughout Florida plus Nashville and Dallas, extended its lease in the Tampa Bay market for another five years, as they feel very bullish about the Tampa market,” Partyka said.    

 TLC ranks among the most respected engineering firms in the nation, with a portfolio including projects in 46 states.

 The landlord, 500 WS Owner LLC c/o Parkway Realty Services LLC of  Jacksonville was represented in the transaction by Nancy Herz of Parkway Realty Services.

 For more information, please contact:

Paul P. Partyka, Managing Partner, NAI Realvest, 407-875-9989, ppartyka@realvest.com

 Patrick Mahoney, President, NAI Realvest, 407-875-9989, pmahoney@realvest.com

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

  

New China Buffet will open in 11,356 SF at Former Barnhill’s on S.R. 54 in New Port Richey, FL

 MAITLAND, FL - NAI Realvest recently negotiated a long term lease of the 11,356 square foot former Barnhill’s restaurant facility at 6301 S.R. 54 in New Port Richey, Fla.

Paul P. Partyka, principal and managing partner at NAI Realvest, negotiated the transaction representing the landlord, Eifers, Fla-based Silverton Financial Management Inc. c/o Riverpine, Inc. 

The new tenant is J & K China Buffet, Inc. who was represented by Josephine Wang of Carlino Commercial Group. 

It will be the second location for China Buffet when it is anticipated to open in March.  The firm’s first restaurant is in Orange Park, outside of Jacksonville, Partyka said.

For more information, contact:  

 Paul P. Partyka, Managing Partner/Principal, NAI Realvest, 407-875-9989; ppartyka@realvest.com;

 Patrick Mahoney, President, NAI Realvest, 407-875-9989, pmahoney@realvest.com;  

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

NAI Realvest Launches New Associate Program; Appoints Five New Broker Associates

  

 ORLANDO, Fla. – NAI Realvest, which ranks as one of Central Florida’s largest and most active commercial property developers and one of the region’s most active commercial property firms, recently launched a new Associates Program to recruit and train broker associates.

 Paul P. Partyka, principal and managing partner at NAI Realvest, said the firm’s new Associates Program was designed to give promising young commercial real estate specialists the opportunity to launch their careers in Central Florida.

“We’ve developed a comprehensive orientation and training program that will serve the commercial real estate industry here in Central Florida and energize our own efforts,” Partyka said.

 For more information,  contact

Paul P. Partyka, Managing Partner, NAI Realvest 407-875-9989,  ppartyka@realvest.com;

 Patrick Mahoney, President, NAI Realvest 407-875-9989,  pmahoney@realvest.com

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

John Crossman, President of Crossman & Co., to speak on retail development and trends at Institute of Real Estate Management Annual Forecast in Boca Raton, FL

ORLANDO, FL--- John Crossman (top right photo), president of Crossman & Company in Orlando will be on a panel of experts at the Institute of Real Estate Management (IREM) 20th Annual South Florida Breakfast Forecast Jan. 11 in Boca Raton.

Crossman, who ranks as one of the most prolific retail property brokers in the southeast, will discuss retail developments and trends.

The event begins with registration and networking at 7:30 a.m., breakfast at 8 and the program begins at 8:30 at the Embassy Suites Hotel, 661 NW 53 St., Boca Raton 33487.

The panel of industry experts will discuss past, present and future trends in South Florida in the areas of commercial, retail and residential, according to George Chrismark, IREM Association Executive for the South Florida Chapter.

The cost is $47 for IREM members, $67 for guests and $87 at the door for everyone.

For more information, contact:

 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

New Year’s Resolutions from WeinPlus for Commercial Real Estate to Increase Productivity

ST. PETERSBURG, FL --- Leading commercial real estate consultant Rachel Elias Wein (top right photo), AIA, founder and principal of WeinPlus Real Estate Advisory Services in St. Petersburg has some programmatic year-end advice for property owners, landlords, developers and real estate firms: clean out the corners of your company’s operations, and plan some time for executives, department heads and office workers to invent faster, better ways to serve your customers.

“In today’s market, no enterprise can afford to overlook better ways to serve customers,” Wein said. “And most companies have outdated policies and procedures that are in place for no better reason other than that’s the way it’s always been done,” she said.

Wein said “cleaning the corners” means taking a close look at everything from decision-making procedures to policies that govern reporting, project approvals and productivity.

“Some of the best strategies come from workers who are dealing with customers every day, fielding their complaints and hearing their success stories,” Wein said.

Wein said focused efforts to develop new ways reach out to tenants and establish strategic partnerships with retailers can be particularly beneficial.

Even elemental tasks such as manual reporting or chasing after non-productive leads can waste valuable time that could be spent more productively.

“This real estate cycle is unlike any that most of us have ever experienced,” Wein said. “Successful landlords, developers and their representatives are the ones who are working on strategies to overcome market weaknesses, and smart ones know that the core of every business is customer service,” she said.

For more information, contact

Rachel Elias Wein, AIA, Founder / Principal, WeinPlus, 727-386-9346, http://www.weinplusassociates.com/;

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

Mark One Capital Arranges Acquisition Financing for Medical Office Property in Dallas-Fort Worth Metroplex

 DALLAS, TX– Mark One Capital, a subsidiary of Marcus & Millichap Capital Corporation (MMCC), has arranged a high-leverage acquisition loan for a 20,000-square foot medical office property occupied by a Baylor Surgery Center in the Dallas/Fort Worth Metroplex.

Farhan Kabani (top right photo), an associate director in Mark One’s Dallas office, arranged the financing.

 “Lenders are aggressively bidding on medical office properties,” says Kabani. “Mark One arranged financing that is unmatched in the marketplace and quite rare for a surgery center.”

 The nonrecourse loan has an LTV of 76 percent. The loan is for five years, amortized over 25 years. The interest rate was fixed at 4.66 percent.

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

$14 Million Multifamily Loan Closed by Marcus & Millichap Capital Corp. in Southern California

LOS ANGELES, CA – Marcus & Millichap Capital Corporation (MMCC) has arranged $14,050,000 in interest-only, refinancing with substantial pay-off flexibility for a three-property multifamily portfolio in Southern California.

 Dan Litman (top right photo), a vice president capital markets in the firm’s West Los Angeles office, arranged the loan.

 “MMCC sourced a five-year fixed interest-only loan for our client,” says Litman. “Besides the interest-only feature, we negotiated two items in the loan that the lender had never offered before. The options were a non-LIBOR adjustable index after the fixed term, and a 10 percent per year principal pay down without penalty,” he adds.

The interest rate on the loan is 4.225 percent and the LTV is 65 percent.

 The properties were built in 1962 and have a total unit count of 92.

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

San Francisco Bay Area Assisted Living Facility Commands $11.3 Million

  

WALNUT CREEK, CA – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has brokered the sale of

Tiffany Court (top left photo), a 57-unit assisted living facility located in Walnut Creek, approximately 32 miles east of San Francisco. The sales price of $11.3 million represents $198,246 per unit.

Rob Reis (lower right photo), a senior associate in Marcus & Millichap’s San Francisco office, represented the buyer, a national owner/operator, and the seller, a local developer.

  “Tiffany Court has an outstanding reputation in the community,” says Reis. “The property was developed, owned and operated by the seller. The facility opened the week before Thanksgiving in November 1996 and was fully leased in three and one-half months,” adds Reis.

Located at 1866 San Miguel Drive in a prime central Walnut Creek location, the 66-bed property is surrounded by single-family residential development and medical office buildings. Rossmoor, a 6,700-unit retirement community is located nearby, as is a pharmacy that bubble-packs medication.

Kaiser Permanente Walnut Creek, a 233-bed hospital, is located 0.4 miles southwest of the property and the 327-bed John Muir Medical Center is located 1.5 miles to the northeast.

 Tiffany Court was 95 percent occupied at the time of the sale. All units include a full bath with shower, a patio or porch and a kitchenette.

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

Jamie B. May OF IPA Sells 152-Unit REO Apartment Building in Lady Lake, FL

LADY LAKE, FL– Institutional Property Advisors (IPA), a recently formed multifamily brokerage division of Marcus & Millichap serving the needs of institutional and major private investors, has arranged the sale of Caleb’s Place (top left photo), a 152-unit lender-owned apartment property located in Lady Lake. The terms of the sale were not disclosed.

Jamie B. May (lower right photo), a senior director in Tampa, had the exclusive listing to market the property on behalf of the seller, a nationally recognized special servicer. The buyer, Aspen Square, was secured and represented by May. 

Caleb’s Place is located at 367 Sunny Oaks Way.

Built in 2002, the property was approximately 95 percent occupied at the time of the sale.

Caleb’s Place features spacious two- and three-bedroom townhome units. Amenities include a pool, clubhouse, children’s playground, full-court basketball and a barbecue area.

IPA is a division of Marcus & Millichap Real Estate Investment Services.

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

Marcus & Millichap Promotes David M. Greenberg to Associate Vice President Investments in Fort Lauderdale, FL Office

  

FORT LAUDERDALE, FL – The board of directors of Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has promoted David M. Greenberg (top right photo) to associate vice president investments.

 This achievement is one of the highest levels of recognition the firm awards to its investment specialists. It represents excellence in the development and servicing of long-term client relationships, according to Gregory Matus (lower left photo), vice president and regional manager of the firm’s Fort Lauderdale office.

Greenberg began his career with Marcus & Millichap in October 2005. Prior to his promotion, he was a senior associate. His specialty is hospitality property investments.

Greenberg has received three sales recognition awards from Marcus & Millichap. He holds a Master of Business Administration degree from the University of Maryland.

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

255-Unit Luxury Apartment Complex Hits the Market in Suburban Baltimore

  PIKESVILLE, MD–Institutional Property Advisors (IPA), a recently formed multifamily brokerage division of Marcus & Millichap serving the needs of institutional and major private investors, has received the exclusive listing for The Residences at Waterstone (top left photo).

The 370,436-square foot multifamily community, located along the dynamic Reisterstown Road corridor in Pikesville, is being offered as an open bid.

Will Balthrope (middle right photo), an IPA senior director, Lindsay Allen (middle left photo), an IPA director, and Ari Firoozabadi (lower right photo), a vice president investments in Marcus & Millichap’s Washington, D.C. office, are representing the seller, Pacific Urban Residential. IPA is a division of Marcus & Millichap Real Estate Investment Services.

“The Residences at Waterstone is an excellent opportunity for an investor to purchase a best-in-class asset with a history of strong occupancies and steadily increasing revenues in a submarket with limited competition,” says Balthrope.

“The property provides its residents with excellent mobility in a strategic location with proximity to the area’s major employers, retail centers and major transportation thoroughfares,” adds Allen.

 “Future demand drivers in the immediate area are expected to provide stable job growth, assuring job creation and strong housing demand for years to come,” concludes Firoozabadi. “The Residences at Waterstone offers investors long-term stability, strong rent growth potential and excellent value appreciation.”

Built in 2002 on 25 acres, the property is located at 225 Galvariun Court in Pikesville. Interstate 695, the corridor that allows direct access to Interstate 795, is one mile south of the property along Maryland State Route 140, Reisterstown Road.

The Interstate 695 corridor provides access to the Baltimore/Washington International Thurgood Marshall Airport and direct access into downtown Baltimore. Baltimore has a convenient and up-to-date subway system with two stations conveniently located in Pikesville.

The Residences at Waterstone features condominium-quality, individually parceled, townhome-style units. Each unit includes an attached garage and private entrance with select units offering wooded and park-like views.

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

Marcus & Millichap Sells Four-Property Portfolio in Winter Haven, FL and Tampa, FL for $8.8 Million

    

WINTER HAVEN, FL and TAMPA, FL – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of a four property portfolio, located in Winter Haven, and Tampa, Florida, according to Bryn D. Merrey, vice president and regional manager of the firm’s Tampa office. The asset commanded a sales price of $8,820,000.

Michael P. Regan (top right photo), an associate vice president investments and Francesco P. Carriera (top left photo), a senior associate in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the Florida-based seller, a private investor.  The listing agents also secured the buyer of the property, a private investor from Tampa, Florida.  

“We are seeing a growing trend in “C” quality assets with a more ‘do-it-yourself’ investor profile to capitalize on the upside in management,” comments Regan.

“The sale of this portfolio is one of only a few private transactions that have sold this year in the Tampa Bay area. This portfolio transaction was also not a bank owned or a bank driven sale, which is an additional indication that most bank driven sales have been absorbed and the market for multifamily assets has begun to turn in a direction we’ve all been waiting for,” adds Carriera.

This is a portfolio sale which consists of four properties:  Brandywyne, The Landings, Country Place and Hickory Point.  The properties are located in the cities of Winter Haven and Tampa, Florida, in Polk and Hillsborough County.

Marcus & Millichap Facilitates Sale of Westbury House Assisted Living Facility in New Port Richey, FL

NEW PORT RICHEY, FL– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of Westbury House Assisted Living (middle right photo), a 5,713-square foot assisted living facility located in New Port Richey, Fla., according to Bryn D. Merrey, vice president and regional manager of the firm’s Tampa office. The asset commanded a sales price of $300,000.

Krone Weidler (middle left photo), senior associate and Matt Decker, senior housing specialist and members of the National Senior Housing Group in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the North Carolina-based seller. Ms. Weidler and Luis Baez, also of the firm’s Tampa office, secured the buyer of the property a private investor from Odessa, Florida.

 Westbury House Assisted Living was built in 1969 is located at 7114 North Congress Street.  The property consists of 14 resident rooms, three half-bathrooms and five full bathrooms, kitchen, laundry room, office, dining room and living room. 

 “The buyer plans an extensive renovation of this asset” says Ms. Weidler.  “Once complete, the asset will be licensed as an assisted living facility for 28 residents.  There is tremendous upside and opportunity to add value” adds Ms. Weidler.   

   Armenia Village Condominiums in Tampa, FL Sold for $2 Million

 TAMPA, FL – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of Armenia Village Condominiums (lower right  photo), a 70-unit apartment property located in Tampa, Fla., according to Bryn D. Merrey, vice president and regional manager of the firm’s Tampa office.

The sales price of $2,050,000 represents $34.02 per square foot.

Casey Babb, CCIM (lower leftt photo), a senior multifamily specialist and Luis Baez (bottom right photo), multifamily specialist in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the seller, a limited liability company based out of Florida. 

The buyer, a private investor, from Louisiana, was secured and represented by Still Hunter, III and Evan P. Kristol, senior vice presidents investments and senior directors of the National Multi Housing Group in Marcus & Millichap’s Ft. Lauderdale office. 

The property was built in 1985 and is located at 8801 Crestview Drive in the Carrollwood area of Tampa.  Armenia Village is a well-kept, fully-stabilized, “Class B” condominium rental community with a mix of one-bedroom/one-bath and two-bedroom/one-bath units averaging 851 square feet. 

“In the current marketplace, competition for certain multifamily assets is causing buyers to conduct their physical due diligence on the front end, which was the case for Armenia Village” says Babb. “The buyer submitted a non-contingent offer and closed in under 40 days, subject only to receiving clean title” adds Babb.

 Press Contact:  Bryn D. Merrey, Vice President/Regional Manager, Tampa, (813) 387-4700

Post Properties Announces Prepayment of Secured Notes

ATLANTA, GA--(BUSINESS WIRE)-- Post Properties, Inc. (NYSE: PPS) (the “Company”), an Atlanta-based real estate investment trust, announced that certain wholly-owned subsidiaries (the “Borrowers”) of its operating partnership, Post Apartment Homes, L.P., prepaid the aggregate outstanding principal amount of approximately $184.7 million on six multi-family fixed rate notes with the Federal Home Loan Mortgage Corporation.

 The notes were secured by mortgages on six properties located in Atlanta, GA, Charlotte, NC, and Dallas, TX. The notes required fixed interest-only payments at 6.09% and would have matured on November 1, 2014.

The Borrowers also paid an aggregate $6.2 million prepayment premium in connection with the prepayment of the notes.

The Operating Partnership used $135 million of borrowings under its existing $300 million unsecured revolving line of credit and available cash to finance the prepayment of the notes and the payment of the related prepayment premium.

Such line of credit borrowings will bear interest at a rate of LIBOR plus 2.30%. The Operating Partnership intends to refinance the amounts drawn under its revolving credit facility with an unsecured long-term bank financing during the first quarter of 2012.

The Company expects to record a loss on debt extinguishment of approximately $7.0 million, or approximately $0.13 per diluted share, in the fourth quarter of 2011 in connection with the prepayment premiums incurred and the write off of related unamortized deferred financing costs.

This charge was not included in the Company’s previously reported Funds from Operations earnings guidance.

Said Chris Papa, Executive Vice President and Chief Financial Officer of the Company, “The prepayment of these notes and our anticipated unsecured long-term bank financing in the first quarter of 2012 is consistent with our strategy of reducing secured debt levels and borrowing costs over time and refinancing our near term debt maturities.

 “ In that regard, we were pleased that Moody’s Investor Service last week affirmed the Company’s senior unsecured credit rating of Baa3, and revised the Company’s outlook to positive from stable, reflecting the improvements that the Company has made to its credit profile.”

Contact:

Post Properties, Inc.

Chris Papa, 404-846-5000

Cousins Properties Announces Sale of Industrial Assets; Remaining Industrial Buildings and Texas Industrial Land Sold for $72.2 Million

  

ATLANTA, GA--Cousins Properties Incorporated (NYSE: CUZ) announced  the sale of its two remaining industrial buildings, along with the remainder of its Texas industrial land for total proceeds of $72.2 million. Cousins’ share of the proceeds totaled $65.2 million.

King Mill Building 3, a 796,450-square-foot building in Atlanta, Georgia, was sold to an affiliate of IDI.

Lakeside Ranch Building 20, a 748,831-square-foot building in Dallas, was sold to Duke Realty. Included in the sale were two land parcels within the Lakeside Ranch Business Park (top left photo) and an additional development site in Lancaster, Texas. Remaining Industrial Buildings And Texas Industrial Land Sold For $72.2 Million

Contact:

Cousins Properties Incorporated

Cameron Golden, 404-407-1984

Director of Investor Relations and Corporate Communications

camerongolden@cousinsproperties.com

http://www.cousinsproperties.com/

Faris Lee Investments Completes $9.6 Million Sale of Single-Tenant Retail Property Occupied by LA Fitness in Hemet, CA

IRVINE, CA – Faris Lee Investments, the nation’s largest retail-specialized investment advisory firm, has completed the $9.6 million sale of a 50,000 square foot retail property that is occupied by LA Fitness (top left photo). Situated on 5.61 acres, the property is located at 220 North Sanderson Ave. in Hemet, California.

Shaun Riley (middle right photo), director with Faris Lee Investments, represented the buyer in the transaction, a private trust from Beverly Hills who was in a 1033 exchange.

 The seller, Eden Group, LLC from Pleasanton, Calif., was represented by Marcus & Millichap. 

The property sold at a 7.6 percent cap rate which, according to Costar, is the lowest cap rate obtained for a single tenant health club-occupied property in the United States since July 2008.

The key to the transaction for Faris Lee was sourcing an asset for the buyer who was originally seeking a drug store property such as a CVS or Walgreens which offered long-term, passive returns.

Faris Lee advised that other assets, such as a health club property could be acquired at a much better yield. Additionally, the financing market has improved and financing terms would be similar to that of a drug store.

“The buyer was yield-driven and was looking for a strong credit, single-tenant investment in Southern California,” said Riley. “After conducting a thorough search of the marketplace, we advised our client on the possibility of acquiring the Hemet LA Fitness as a strong option since the tenant had the financial strength the buyer required and had more than 12 years remaining on the lease term.

“The pricing, cap rate, and the opportunity to finance the property with new debt that could be obtained at a historically low interest rate, also appealed to the buyer.”

Riley added that ultimately, the buyer placed long-term financing on the property at 240 basis points lower than the cap rate, which provided the buyer with a 10 percent cash return going in, not to mention future rent increases.

The property is located just off Hemet’s busiest commercial intersection at Florida Ave. and Sanderson Ave. with combined traffic counts of more than 70,000 vehicles per day. Nearby retailers include Home Depot, Target, Staples, Ross, Lowes and others.

Contact:  Darcie Giacchetto, 949.278.6224, Spaulding Thompson & Associates, For Faris Lee Investments