Generation Y: Bullish on U.S. Housing Market

First major national housing survey during current downturn reveals surprising results

NEWPORT BEACH, CA--(BUSINESS WIRE)--The first major survey into Generation Y’s perception of the U.S. housing crisis reveals a surprisingly strong sense of optimism about the future despite cautious near-term sentiment.

While the housing industry is readying for this wave of future homeowners (approximately 80 million strong), there is little data on what this influential buying group actually wants in their next home or how the current downturn has affected their future plans.

According to the national survey conducted by The Concord Group:

·50% say they are likely to purchase a home within the next three years
·50% say tax credits or lower interest rates would motivate them to purchase a residence sooner
·70% believe home prices will be higher or at today’s levels in two years
·62% say wealth creation is a very big advantage of real estate ownership

Although economic conditions factor strongly in their decision-making process, survey respondents say that lower home prices and/or a raise at work would be the top motivations for buying a home sooner than planned.

"Generation Y is going to have more impact on the national housing market than any group since the early Baby Boomers.

"We wanted to better understand their preferences and expectations especially as they will have such an impact on our future,” said Emma Tyaransen, (top right photo) Principal of The Concord Group, a national real estate advisory firm.

The majority of respondents to The Concord Group’s survey say they are:

·Willing to pay a premium to live closer to their job
·Seeking out a larger space for their next residence
·Interested in living near alternative modes of transportation
·Likely to put down less than 20% on their next residential purchase
·Planning to eventually abandon the cities for a life in the suburbs

“What’s so interesting about this data is that it supports our prediction that transit-oriented development will command a premium in the near future. It also proves that suburban development will continue to play an important role in the housing market that emerges from the downturn,” said Tyaransen.

The Concord Group is a premier national real estate advisory firm with offices in Newport Beach, CA; San Francisco, CA; Portland, OR and Boston, MA. The Concord Group provides developers, investors and public planning agencies with vital analytical input throughout all phases of real estate financing, development and operations. http://www.theconcordgroup.com/

To receive the complete survey and for interview requests, please contact:

Ellis Strategies, Inc.Matt Ellis, 617-278-6560, matt@ellisstrategies.com

Nature's Table Renews 6-Year Lease at One Orlando Centre

ORLANDO, FL--Cushman & Wakefield of Florida, Inc. (C&W) announced a new six year lease for the One Orlando Centre (top right photo) location of Nature’s Table restaurant.

Retail Brokerage Associate Mindy Boehm (bottom left photo) negotiated the lease, representing the tenant in the transaction, and C&W office team Richard Solik and Betsy Owens represented the landlord, Eola Capital.

Nature’s Table representative Krista Lehn said the location is scheduled for complete renovation including a brand-new interior design, all-new fixtures and new furniture.

The overhaul will necessitate the closure of the restaurant beginning the last week of April and continuing through July.

During the renovation, temporary food service will be available on the first level of One Orlando Centre.

In addition to updating their space, Nature’s Table will also strengthen the consistency of menu offerings, renewing their commitment to the core selections of gourmet wraps, salads, homemade soups, smoothies and bakery items.

C&W negotiates lease for Pro-Neon and Art Design relocation

The Orlando office of Cushman & Wakefield (C&W) announced that Allison Reynolds, Associate of Industrial Brokerage Services closed a deal in March for the relocation of commercial signage fabricator Pro-Neon and Art Design from 1586 North Goldenrod to 1696 and 1700 North Goldenrod. Reynolds represented the landlord, Selwo Investment Group in the transaction.

Contact: Brook Hines, 407-541-4401, brook.hines@cushwake.com
http://www.cushwake.com/

Grubb & Ellis Awarded 1.8 Million SF Leasing Assignment

Firm Selected to Lease Mercer Crossing Office Space, Part of a 1,200-acre mixed-use development

DALLAS, TX, April 14, 2009 – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that it has been selected as the leasing agent for the 1.8 million square feet of Class A office space at Mercer Crossing, a 1,200-acre mixed-use development.

Included in the assignment are Fenton Centre, (top left photo) Browning Place (middle right photo) and Hickory Centre.

Comprising two seven-story office buildings, Fenton Centre is located at 1501-1507 LBJ Freeway and offers nearly 700,000 square feet of rentable space.

Located at 1601–1607 LBJ Freeway, Browning Place consists of three eight-story office buildings offering a total of 627,312 square feet of rentable space.

Hickory Centre is comprised of one eight-story and two four-story office buildings, offering approximately 425,000 square feet of rentable space. Plans exist to expand the complex with the addition of two Class A office buildings, adding approximately 300,000 square feet to the development.

“This is a great win for Grubb & Ellis, and our team is enthusiastic to provide Mercer Crossing’s management team with a superior level of service,” said Kathy Permenter, managing director, Agency Leasing in Grubb & Ellis’ Dallas office.

“Set inside a beautiful corporate park, Mercer Crossing offers a variety of leasing prices in its Class A buildings. The development is in a prime location and provides tenants with quality services and onsite amenities.”

Mercer Crossing (bottom left photo) is located between the George Bush Turnpike and Interstates 35 and 635.

Onsite amenities include restaurants, banking, a jogging trail, and a fitness center. Onsite management is also provided, as well as a 24-hour courtesy officer.

Overseen by Regis Property Management, the total office product of Mercer Crossing is currently 63.5 percent leased.

Permenter’s leasing team includes Russ Johnson, senior vice president, and Heather Densmore Shover, vice president, all with Grubb & Ellis’ Dallas office.

Contact: Damon Elder, 714.975.2659, damon.elder@grubb-ellis.com

National Office Vacancy at 15.6% After Soft First Quarter

Manhattan, Long Island and New York Outer Boroughs Only 3 Major U.S. Markets to Post Under 10% Vacancy Rates

SANTA ANA, CA-Bob Bach, (top right photo) senior vice president and chief economist, Grubb & Ellis Co., reports on the first-quarter 2009 office market:

· Commercial real estate, viewed as a lagging indicator, is catching up with the rest of the economy, unfortunately, as office market fundamentals deteriorated sharply in the first quarter.

· The vacancy rate ended the quarter at 15.6 percent, an increase of 80 basis points since last year’s fourth quarter and 260 bps since vacancy bottomed at 13.0 percent in the fourth quarter of 2007. It was the largest quarterly increase of this cycle, meaning that the pace of softening accelerated in the first quarter.

(Manhattan financial districtd map, middle left)

· Manhattan, Long Island and the New York Outer Boroughs remain the only three major U.S. markets to post sub-10 percent vacancy rates, although Manhattan’s vacancy rate, like the U.S. average, has risen for five consecutive quarters.

Eight markets posted vacancy rates above 20 percent led by Phoenix, where vacancy is approaching 25 percent.

· Over the past four quarters, vacancy increased by 400 bps (one percentage point per quarter) or more in seven markets led by California’s Inland Empire, which recorded a four-quarter gain of 840 bps. Four markets saw vacancy rates decline year-over-year: Long Island, Columbia, S.C., Columbus, Ohio, and Wichita, Kan.

(Long Island, NY skyline, middle right photo)

· Net absorption, which registered only modest negatives in 2008, plunged to recessionary levels in the first quarter, mirroring the big slump in the labor market that occurred in last year’s fourth quarter.

First quarter absorption of negative 18.4 million square feet is comparable to the quarterly losses in occupancy that occurred after the dot-com bust, 9/11 and recession early this decade.

· Restructuring on Wall Street shrank occupied space in Manhattan by 2.8 million square feet in the first quarter. Several markets that were supposed to hold up well did not, registering large negative absorption totals.

These included Los Angeles (-2.5 million), Houston (-929,000), Seattle (-740,000) and Washington, D.C. (-723,000). The recession has left few markets untouched, though a handful of markets, led by Dallas-Fort Worth, did eke out positive absorption.

· Space under construction at the end of the quarter retracted to 66 million square feet, its lowest level in 2 ½ years.

Washington, D.C., with 9.8 million square feet still in the pipeline, may be facing some difficult quarters given that absorption has turned negative in all three of the region’s major submarkets.

· Available sublease space ended the quarter at 111 million square feet, its highest level in 4 ½ years. New York City, with 14.6 million square feet, nearly doubled the sublease inventory of second place Washington, D.C.

Three of the four major markets surrounding Manhattan posted the highest sublease vacancy rates in the country: Northern and Central New Jersey, Westchester County, N.Y., and Fairfield County, Conn.

(Downtown Columbus, OH, middle right photo)

· Rental rates are behaving erratically. The average asking rate of $27.67 per square foot per year, full service, for space available on the market at the end of the first quarter actually rose by 0.3 percent since year-end 2008.

But the effective rate on deals signed in the first quarter, which includes concessions offered to tenants, fell 2.1 percent from the fourth quarter.

Though counterintuitive, asking rates sometimes increase in the early stages of a recession because the construction pipeline continues to deliver Class A space that was started before the recession began, and much of it is being delivered empty.

The asking rates for this top-of-the-line available space are driving up the average, but because landlords will do deals at lower rates (sometimes much lower), effective rates are falling. At some point landlords will begin to compete on asking rates in addition to concession packages.

Forecast

The timing of a recovery in the office market depends on two related events: how quickly the economy begins to grow again and how quickly the labor market begins to add jobs.

While some analysts expect GDP growth to turn positive in the fourth quarter of this year, most expect the unemployment rate to continue rising until mid-2010 or later.

This could turn out to be a “jobless recovery” of the kind that followed the last two recessions when the economy was growing but not fast enough to encourage employers to hire.

There may not be an office market recovery worthy of the name until 2011.

HFF, Macquarie and UBS Named to Market for Sale 52-Property Shopping Center Portfolio

PITTSBURGH, PA, April 14, 2009(BUSINESS WIRE))--HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has been named as a co-advisor, along with Macquarie Capital Advisers Limited and UBS Securities, LLC, for a strategic review of Macquarie DDR Trust’s (“MDT”) U.S. based real estate assets and to market for sale a 52-property shopping center portfolio in 20 states owned in a subsidiary, Macquarie DDR U.S. Trust Inc.


HFF executive managing director John Pelusi, (bottom right photo) senior managing directors Barry Brown (bottom left photo) and Doug Hazelbaker (top left photo) and managing director Lynn De Marco (top right photo) will lead the HFF investment sales team on behalf of the seller, a joint venture between Macquarie DDR Trust and Developers Diversified Realty Corporation.

Investors may seek to purchase MDT’s interest (approximately 85.5%) or 100% interest of the portfolio, sub-portfolios or individual assets. As of December 31, 2008, these assets were valued at approximately $1.9 billion by MDT.

The portfolio totals 12.5 million square feet and has an average occupancy of 88.5%. Major tenants include Walmart, BJ’s Wholesale Club, Bed Bath & Beyond, Best Buy, T.J. Maxx, Kohl’s and Dick’s Sporting Goods.

Macquarie DDR Trust is a listed real estate investment trust with assets totaling $2.7 billion.


As of September 20, 2008, more than $36 billion of real estate assets are managed globally by Macquarie Group and its associates across a portfolio of listed and unlisted real estate trusts, unlisted development funds and real estate investment syndicates.

Developers Diversified Realty Corporation owns and manages more than 720 retail operating and development properties in 45 states, plus Puerto Rico, Brazil, Russia and Canada totaling more than 159 million square feet.

Contacts:

HFF, Inc. Executive Managing Director, JOHN H. PELUSI, JR., 412-281-8714, jpelusi@hfflp.com

Senior Managing Director, BARRY M. BROWN, 214-265-0880, bbrown@hfflp.com

Senior Managing Director, DOUG HAZELBAKER, 214-265-0880, dhazelbaker@hfflp.com

Managing Director, LYNN A. DEMARCO, 212-245-2425, ldemarco@hfflp.com

Associate Director, Marketing, KRISTEN M. MURPHY, 713-852-3500, krmurphy@hfflp.com

Arbor Closes $32.35M Fannie Mae DUS® MBS ARM Loan for Vintage Pointe in Montgomery, AL

UNIONDALE, NY, April 14, 2009 - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $32,350,000 loan under the Fannie Mae DUS® MBS ARM Loan product line to refinance the 520-unit complex known as Vintage Pointe (bottom left photo) in Montgomery, AL.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.11 percent.

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

“On this particular deal, Arbor was competing with another lender who ultimately did not deliver on its commitments to the borrower,” said Abergel.

“With timing being critical for our client, we screened the deal within a couple hours and closed 28 days later.

The proceeds of the loan were precisely on target with the borrower’s request, which enabled him to close the deal.”

Contact: Ingrid Principe, P: 516.506.4298. F: 516.542.2555. http://www.arbor.com/

Bulls Capital Partners Arranges Financing of $2.68M for 72-Unit Apartment Property in Fort Collins, CO.

VIENNA, VA, April 14, 2009 -- Bulls Capital Partners LLC, a multifamily financial services provider and Fannie Mae Delegated Underwriting & Servicing (DUS®) lender, today announced it has provided financing to Willow Grove, Ltd. in the amount of $2,680,000 for the refinance of Willow Grove Apartments (bottom right photo) in Fort Collins, CO.

Willow Grove Apartments is a 72-unit garden apartment complex built in 1990 with a mixture of one and two bedroom units.

The complex is part of a community development which shares amenities such as a pool, spa and fitness center.

The loan was originated by Mark Van Kirk (top right photo) at Bulls Capital Partners, LLC. Tom Sibbald of Shield Street Corporation represented the Borrower.

Herman Bulls, (top left photo) President & CEO of Bulls Capital Partners said, "A testament to our focus on customer service at Bulls Capital Partners is our ability to work with borrowers and structure deals which are responsive to their long term ownership needs and the current economic environment."

Bulls continued, "It was very important for us to retain this maturing loan in our portfolio and we like the long term outlook of the Colorado market."

"In the current multifamily debt market, most transactions have some challenges to overcome," said Van Kirk, co-founder of Bulls Capital Partners.

"The Fannie Mae personnel working on the Willow Grove transaction were extremely responsive to all issues that arose during the origination and closing process. This commitment by Fannie Mae was the catalyst to a timely execution for this transaction."

About Bulls Capital Partners, LLC

Bulls Capital Partners, LLC is a Fannie Mae approved Delegated Underwriting and Servicing (DUS®) lender that offers a full array of financing solutions to owners of multifamily property.

Bulls Capital Partners' key capabilities under the DUS program include small loan solutions, affordable housing solutions, student housing, market-rate multifamily mortgages, and credit facilities, among other offerings.

Bulls Capital Partners is a joint venture of Goldman Sachs Commercial Mortgage Capital, L.P. and Bulls Multifamily, LLC, a minority-controlled firm headed by Herman Bulls.

Bulls previously ran a successful DUS lending operation, and has extensive commercial real estate experience with one of the world's leading real estate service providers. Co-founding Bulls Capital Partners with Bulls is Van Kirk, who previously served as Director of Counterparty Risk at Fannie Mae.

Website: http:// http://www.bullscapitalpartners.com/

CONTACTS:

Bulls Capital Partners, LLC, Herman Bulls, President & CEO, phone: (202)256-1814
Herman.Bulls@bullscapitalpartners.com

Mark B. Van Kirk. Co-Founder & COO, phone: (703)283-9700
Mark.VanKirk@bullscapitalpartners.com

Prudential Mortgage Capital Arranges $756M FHA Loan for Trenton, NJ Area Hospital

(Rendering of new Capital Health System hospital in Hopewell, NJ, above)

Construction Loan Called Largest in FHA History

NEWARK, NJ.--(BUSINESS WIRE)--Prudential Mortgage Capital Company has arranged a $756 million construction loan for a new hospital in Hopewell Township, N.J., the largest in Federal Housing Administration history.

Prudential’s (NYSE: PRU) FHA-lending business Prudential Huntoon Paige, arranged the loan through the FHA’s Section 242 Hospital Mortgage Insurance program.

“We are proud of our participation in this historic loan which highlights the strength and depth of our agency platform," said David Durning, senior managing director, Prudential Mortgage Capital.

“With the addition of this loan, we anticipate reaching more than $1 billion of FHA originations in 2009, further demonstrating the confidence we have in our FHA program.”

The hospital, located in the Trenton N.J. area, is currently under construction by Capital Health System, Inc. TIAA-CREF provided the funding for the loan. The loan will also help fund a $45 million expansion of Capital Health’s hospital in Trenton.

“By working with our partners at the Federal Housing Administration and the Government National Mortgage Association, we were able to leverage our strength and expertise to identify the financing solution for Capital Health,” said Marie Head, (top left photo) managing director, Prudential Huntoon Paige.

“We are delighted to have been part of this very important transaction, which will provide the residents in the greater Mercer County region with vital medical services and create jobs for the community.”

Al Maghazehe, (middle right photo) CEO & President of Capital Health said, “With the financing now in hand, we are confident that we’ll deliver to this region in 2011, the finest healthcare facilities and most advanced medical care available.

" We are extremely proud that Capital Health met the high standards of the FHA, Prudential and TIAA-CREF and that they decided to support these projects that will bring state of the art healthcare to this part of the state.”

Ranked the second highest multifamily and healthcare originator by the FHA and the third largest national Ginnie Mae Issuer, Prudential Huntoon Paige arranged more than $306 million in multifamily and healthcare loans in 2008.

In addition, the company maintains a loan servicing portfolio of more than $5 billion, including $2.7 billion in hospital loans.

“Ginnie Mae is proud to participate in this important community-building construction project,” said Joseph J. Murin, (top right photo) president of Ginnie Mae.

“The U.S. government is working hard to help rebuild our struggling housing market, and since thriving homeownership depends on thriving communities, we are happy to provide a government-guaranteed security to ensure this project is a success.”

“Funding this loan is a win-win for all involved,” commented John Cerra, fixed-income portfolio manager at TIAA-CREF. “The high-quality, low-risk securities which we will purchase to fund this mortgage to Capital Health match our long-term investment needs as a retirement system.”*

Contact:
Prudential Financial, Inc., Lisa Iurato, 973-802-5345. lisa.iurato@prudential.com

Arbor Closes $16.5M Fannie Mae DUS® Loan for Harper Square Co-op in Chicago

UNIONDALE, NY, April 13, 2009 – Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $16,500,000 loan under the Fannie Mae DUS® product line for the 591-unit complex known as Harper Square Coop (top right photo) in Chicago, IL.

The 30-year loan amortizes on a 30-year schedule and carries a note rate of 7.17 percent.

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

“The members of Harper Square Cooperative were looking for a lender that could decouple their existing HUD 236 mortgage and also provide substantial renovation funds for the upgrade of their property,” said Jehle. “Arbor was able to do both at a very attractive long-term interest rate.

Contact: Ingrid Principe, Iprincipe@arbor.com

Hotel Guests' Demand for Newspapers Down 25%, Says Marriott

BETHESDA, MD, April 13, 2009--Marriott International announced today that guest demand for newspaper delivery at more than 2,600 hotels in the United States has declined by about 25 percent.

Marriott will become the first major hotel company to shift to a free newspaper delivery system based on customer preference, reducing waste at the same time.

Beginning June 1, the company’s full-service hotels, including Marriott Hotels & Resorts, JW Marriott Hotels & Resorts and Renaissance Hotels & Resorts, will deliver newspapers to guest rooms based on customer preference.

The company’s 30 million Marriott Rewards members will be able to update their online profiles and receive their preferred newspaper automatically.

Guests who are not Rewards members will be asked for their preference at check-in. Guests will have a choice between USA TODAY, The Wall Street Journal, the local paper, or no paper.

Effective April 20, the company’s Courtyard, Fairfield Inn, SpringHill Suites, Residence Inn, and TownePlace Suites hotels will offer newspapers free-of-charge in their lobbies.

“We want to give guests the choice of whether they want a newspaper or not,” says Chairman and CEO J.W. Marriott, Jr. (top right photo)

“I visit more than 250 hotels a year, and more often than not, I’m stepping over unclaimed newspapers as I walk down the hallway. This new program is more guest-focused.”

Based on preliminary data, the company projects that newspaper distribution will be reduced by about 50,000 papers daily or 18 million papers annually, thereby avoiding 10,350 tons of carbon emissions (calculated by Conservation International assuming an estimate of .5 pounds per paper).

Cost-savings, if any, will vary based on consumption at individual hotels.

More than 25 years ago, through a pioneering partnership with the Gannett Co., and USA TODAY, Marriott was the first major hotel company to feature broad newspaper delivery to its hotel rooms in the U.S.

The two companies will continue to work together to offer guests innovative online news, including products such as the GoBoard™ available around-the-clock in Courtyard hotel lobbies.

“USA TODAY was founded on the idea that one newspaper could reflect the shared interests of Americans across the country.

" Our ability to connect readers with what is important to them makes us the most-read newspaper in the country and the number one choice of travelers,” said Susan Lavington, (bottom rightt photo) senior vice president of marketing, USA TODAY.

“As the needs of news consumers continue to shift, USA TODAY has innovated to provide valued content in any platform consumers choose. We look forward to extending that choice to Marriott’s valued guests through print, online, mobile devices or on a GoBoard™ in their hotel lobby.”

“More individuals choose to buy the Wall Street Journal than any other newspaper in America. We applaud Marriott for now extending this choice to their guests." said Paul Bascobert, (middle left photo) chief marketing officer for the Dow Jones Consumer Media Group.

"At a time when others are scaling back, The Wall Street Journal’s expanded coverage of national news, health, leisure and sports will be a welcome benefit to Marriott guests.”

Fed's Balance Sheet Balloons but News May be Good for Commercial Real Estate Market

SANTA ANA, CA, April 13, 2009--Bob Bach, (top right photo) senior vice president and chief economist at Grubb & Ellis Co. reports today the Federal Reserve's balance sheet (top left chart) has ballooned since last September because it has implemented several programs to combat the credit crisis.

With the target federal funds rate as low as it can go – in a range of zero to one-quarter percent – the Fed has turned to "quantitative easing" including enhanced levels of liquidity for financial firms, direct lending to borrowers and investors, purchases of high-quality assets such as Treasury securities, and support for troubled institutions such as Bear Stearns and AIG.

These programs intersect with commercial real estate at a couple of levels.

The Term Asset-Backed Securities Loan Facility (TALF), although off to a slow start, may be extended to cover commercial mortgage-backed securities if it can be modified to accommodate the longer terms typical of CMBS loans.

The rapid expansion of the Fed’s balance sheet raises the specter of inflation; this could work to the advantage of commercial real estate, which traditionally has been viewed as a hedge against inflation.

However, inflation may not become a problem unless the economy bounces back quickly, which doesn't seem likely.

A gradual recovery would, in theory, give the Fed a window to sell off its assets at an orderly pace, thereby removing excess liquidity from the economy before inflation has a chance to accelerate.

Source: Federal Reserve, Grubb & Ellis

Contact: Grubb&EllisCommunications@Grubb-Ellis.com

Orlando Industrial Market Vacancy of 23.46% Lowest Since 1989

Vacancy at the end of 2008 was 16.75%, already the highest rate since 1993.

WINTER PARK, FL--Orlando’s bulk warehouse leasing market plunged during the first quarter of 2009 to its lowest occupancy rate since Rebman Properties began its survey of the bulk market in 1989, reports Rebman vice president Greg Rebman (top right photo).

In its first quarter 2009 bulk warehouse survey, the Winter Park, FL-based industrial real estate firm found:

Demand

The vacancy rate in the 139 buildings surveyed – comprised of institutionally-owned warehouses held for lease to industrial tenants – is now at an astounding 23.46%.

There was 623,051 square feet of negative absorption in the surveyed buildings, making it one of the worst quarters in the past 20 years and the worst since the early 90’s.

Downsizings, bankruptcies and other exits from the market continue as the unemployment rate and other economic variables continue to flounder or worsen.

The only significant lease in the first quarter was the lease of 40,100 square feet by Customized Delivery Services at Crossroads 2.

Supply

There were three buildings added to the survey in the period, which exacerbated the otherwise dismal first quarter.

This is similar to the fourth quarter of 2008, when three buildings were added in a quarter with negative absorption.

The following buildings were added to the survey: Beltway Commerce Center #100, a 141,810 s.f., rear-load facility; Beltway Commerce Center #200, a 145,540 s.f., rear-load facility; and Beltway Commerce Center #400, a 378,601 s.f., cross-dock facility.

These three distribution facilities are located at the intersection of Lee Vista Boulevard and the Greeneway, SR 417.

Rental Rate

The average quoted rental rate for the 139 buildings surveyed is $4.57 psf triple net, down from $4.62 psf at the end of the third quarter.

Construction

Most of the construction which had been put in motion prior to the economic downturn in the third quarter of 2008 has been completed now.

Two new warehouses are slated for completion in July: Lee Vista Business Center, Building D, a 106,500 s.f., rear-load facility; and Lee Vista Business Center, Building E, a 226,800 s.f., rear-load facility.

Forecast

Orlando industrial brokers polled for this survey expressed that market activity has been sparse but were of the opinion that the exits from the market may have peaked over the past two quarters.

Nevertheless, it is expected that the remainder of 2009 will be slow as tenants and prospective purchasers await the “bottom.”

However, it is expected that when the public broadly perceives that we are at or near the bottom, that industrial companies will look to lock in bargains with warehouse purchases and leases of warehouse space.

Contact:

Lynn G. Bailey, Office Manager, Rebman Properties, Inc. 1014 W. Fairbanks Ave., Winter Park, FL 32789 USA. Tel: 407.875.8001. Fax: 407.875.8004. lynn@rebmanproperties.com
http://www.rebmanproperties.com/

Marcus & Millichap Posts Listings Valued at $80M

THREE-PROPERTY OFFICE AND INDUSTRIAL PORTFOLIO IN COLORADO LISTED FOR $58.44M

DETROIT, MI – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has retained the exclusive listing for a three-property office and industrial portfolio located in Colorado, Texas and Missouri.

The portfolio’s total square feet is 306,688. The sales price is $58.44 million. The properties are being offered as a portfolio or separately.

Dan Danielak, a senior associate in the firm’s Detroit office, is representing the seller.

“All three properties were build-to-suits for their current tenants,” says Danielak, “Each of the leases feature built-in increases, with significant remaining terms.

"Attractive financing, that has been sourced, can give exceptional first-year returns that range from 7.73 to 7.86 percent.”

The three properties are:

SI International Inc. (top right photo), located at 1050 and1090 North Newport Road, in Colorado Springs, Colo., measuring 121,888 square feet.

· Aker Solutions, (middle left photo) located at 2201 North Sam Houston Parkway, in West, Houston, Texas, encompassing 94,800 square feet.

· Nooter Eriksen Inc. (middle right photo) at 1509 Ocello Drive, in Fenton, Mo., featuring 90,000 square feet.

The SI International Inc. property is located in Newport Business Park alongside other major defense and technology companies.

The offering is comprised of one three-story, 91,088-square foot office building and one single-story, 30,800-square foot office building.

The property has fitness center, employee cafeteria and polished granite floors.

The SI International office buildings were build-to-suit for the tenant in 2006 and the double-net lease has seven years remaining. SI International Inc. was purchased by Serco Inc. in December 2008.

Serco North America is a leading provider of professional, technology and management services to the United States’ military and the federal government.

The Aker Solutions building was built-to-suit for Aker in 2007 and features two built-in water pits for engineering and laboratory testing and four overhead crane systems.

Sellers control adjacent land that gives the tenant the availability to expand the existing facility. The current triple-net lease has eight years remaining; one five-year renewal option and a 2.75 percent rent increase every two years.

Aker Solutions ASA, an international $8.3 billion annual revenue organization, is committed to being the industry leader in oil field operations and has chosen Houston and this facility to invest in their company’s operations

The Nooter Eriksen headquarters building is a Class A three-story office building that sits on a spacious 28-acre site. A BTS for Nooter Eriksen Inc. in 2002, the property is absolute net-leased for another 13 years.

The lease calls for cumulative CPI rental increases every five years that are not to exceed 7.375 percent. Additionally, there are four five-year renewal options in place.

Nooter Eriksen Inc. is the world's leading independent supplier of custom-designed heat recovery systems for power plants.

$11.5M DEVELOPMENT SITE IN PORT ST. LUCIE, FL FOR SALE

PORT ST. LUCIE, FL– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has retained the exclusive listing for the Port St. Lucie Center Village development, a 37-acre land development site in Port St. Lucie.

Paul Bouldin, (bottom left photo) senior associate and an associate member of the National Land Group in Tampa, is representing the seller.

“This is a unique opportunity to purchase an excellent infill location in the city of Port St. Lucie,” states Bouldin. “The site is zoned for mixed-use development of more than 37 acres with 482,694 square feet of buildable space. The seller is prepared to meet the market to sell the property.”

Port St. Lucie is a rapidly growing city with more than 150,000 residents in what was predominately a bedroom community centrally located in the Treasure Coast of Florida in St. Lucie County, which is now transitioning into a dynamic and diverse city.

“The demand is growing for the development of retail, office and affordable housing in Port St. Lucie,” adds Bouldin.

“The economic model of Port St. Lucie Town Center Village, combined with current construction cost and potential income stream, make this asset an attractive long-term investment.”

As one of the fastest growing areas in the United States, and as the new home of the Torrey Pines Institute for Molecular Studies, the Vaccine and Gene Therapy Institute, and the Mann Research Center LLC, St Lucie County is emerging as the next center of science and technology excellence.

In addition, new business developments are expanding the area’s economic drivers, for example the Professional Golf Association (PGA), which is now residing in Port St. Lucie.

Located at 1684 Port St. Lucie Blvd., the development is bordered by Vero Beach to the north and Stuart to the south. It is well positioned to expand still further with more affordable housing and growing of new construction.


LA FITNESS IN DALLAS LISTED FOR $10.6M

DALLAS, April 8, 2009 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has retained the exclusive listing for a 45,000-square foot freestanding fitness center (top right photo) net-leased by LA Fitness in Dallas.

The listing price of $10.6 million represents $236 per square foot.

Jason Vitorino, associate vice president investments and a director of the firm’s National Retail Group in Dallas, and Philip Levy, a senior associate also in Dallas, are representing the seller, a Dallas-based developer.

“The new 15-year, double-net lease is guaranteed by LA Fitness International LLC, and has rent escalations every five years, starting in year five,” says Vitorino.

“The escalations are equal to the lesser of the five-year cumulative CPI increase, or 10 percent. Additionally, there are three five-year options to extend the lease, all of which have the same scheduled rental escalations.”

Located at 3029 Forest Lane, inside the Interstate 35 loop, just east of Interstate 35 and west of Webb Chapel and Forest Lane, the property has a prime northwest Dallas location, surrounded by major retailers and office developments.

The population within five miles exceeds 240,000.
The Class A building came on line in the third quarter of 2008.

LA Fitness is a full-service health club and fitness facility headquartered in Irvine, Calif. The company was founded in 1984, and has more than 285 locations in 21 states.

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