Starwood Suit Alleges Hilton Stole Over 100,000 Trade Secret Files on New Brand

WHITE PLAINS, NY—Starwood and Hilton, two of the world’s largest hotel chains, are at each other’s throats in a multi-million-dollar corporate espionage lawsuit filed in Federal Court here.

(Hilton's Beverly Hills, CA headquarters building, top right photo)

The suit alleges former Starwood executives Ross Klein and Amar Lalvani stole more than 100,000 electronic and hard-copy files related to the emerging lifestyle hotel market, before and after they were hired away by Hilton in 2008.

The suit alleges the stolen files focused on Starwood’s W hotel brand.

Hilton, acquired by New York City-based Blackstone Group in 2008, is rushing to come out with its new lifestyle brand called Denizen.

The Beverly Hills, CA-based chain plans to showcase Denizen in several major cities, including Beverly Hills and Abu Dhabi.
The suit aims to stop the debut of this brand.

Denizen is expected to compete with independent hotels and boutique properties, including Starwood’s W line, Morgans Hotel Group Co. and Thompson Hotels.

The suit also will be asking for punitive and compensatory damages totaling “in the millions,” according to industry sources in a position to know.



The suit is expected to take at least a year to settle, according to persons familiar with similar court actions.

Hilton spokesman Michael Buckley called the suit “frivolous and without merit.” He says Hilton will vigorously defend itself against the allegations.

Starwood’s lead lawyer Kenneth Siegel charges Hilton’s alleged theft amounted to a “wholesale looting of proprietary Starwood information.”

He calls the action “a blatant case of theft of trade secrets.”

Siegel says the stolen files included “a step-by-step playbook for creating a lifestyle luxury hotel brand.”
But the most damaging aspect of the alleged theft was that the files “enabled Hilton to launch a new brand in only nine months instead of the usual three to five years,” Siegel charges.

Klein was the former president of Starwood Luxury Brands Group. Lalvani was senior vice president of that unit. At Hilton, Klein is head of luxury and lifestyle brands; Lalvani, is head of development for the same division.

Besides the W brand, Starwood operates the Sheraton and St. Regis hotel chains.

Aswin Suri opens new Exit Realty of Daytona Real Estate Brokerage

Firm recruits 28 new agents and expects to hire 70 more this year.

DAYTONA BEACH, FL - Exit Realty has moved into its new facility at 211 E. International Speedway Blvd. in Daytona Beach and has already recruited 28 new realty agents.

Exit Realty Owner Aswin Suri, (middle right photo) who has more than 25 years of experience in real estate, said Exit Realty is undergoing something few recession-era companies can report: a growth boom.

"We expect to have more than 100 agents before the end of this year," Suri said.

Over the past two years, Suri sold real estate properties worth more than $62 million, and ranked number one in sales volume for 2007 and 2008.

"Right now we have 24 commercial and residential sales under contract valued at more than $5 million," Suri said.

Exit Realty spent more than $100,000 to renovate a three-story, 8,000 square foot building as its new headquarters, Suri said. A grand opening and ribbon-cutting event are planned for April 24 with local elected officials and business leaders.

For more information, please contact:

Aswin Suri, MHA, B.A., Owner Exit Realty of Daytona, 386-383-3000 (direct)

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

Sheila Goodman, Larry Vershel Communications, 407-644-4142 P407-644-4410 F

CBRE"s Erik Schwetje Negotiates Four Leases Totaling 87,429 SF in Orlando

ORLANDO, FL-- The Orlando office of CB Richard Ellis is pleased to announce the following four leases launching a great start to the second quarter of 2009 at four industrial centers by their exclusive leasing agent Erik W. Schwetje, (top right photo) Vice President.

Enterprise Electric is planning an expansion at Airport Commerce Center (bottom left aerial) and signed a deal new for approximately four and half years of 4,800-sq.ft. at 1629 Parkline Boulevard, Suite 500, Orlando, Florida.

East Coast Intimates signed a new deal for 3,219-sq.ft. at the Sand Lake Service Center at 7661 Currency Drive, Orlando, Florida.

Kauffman Tire signed a two-year extension of 50,400-sq.ft. in the Presidents V Building located at 7482 Presidents Drive, Orlando, Florida.

Ann Huntington, Senior Vice President of CBRE in Dallas and David Murphy, Senior Vice President of CBRE in Orlando represented the tenant.

Ace Relocation Systems, Inc. signed a two-year renewal on 29,010-sq.ft. at the Beeline Distribution Center located at 2507 Investor's Row, Suite 400, Orlando, Florida.

For more information about Erik W. Schwetje, CCIM, visit www.cbre.com/erik.schwetje

Contact: Angelique Greven, 407.839.3158, angelique.greven@cbre.com

Johnson-Laux of Orlando Ranked 172nd Largest GC

ORLANDO, FL – Orlando-based general contractor Johnson-Laux Construction was prominently ranked as the Southeast’s 172nd largest general contractor in Southeast Construction Magazine’s 2009 Top General Contractors survey published in its April issue.

Led by President and LEED Accredited Professional Kevin Johnson, and Vice President Anthony Laux, (top left photo) Johnson-Laux is a full-service construction management and general contracting firm specializing in mission-critical healthcare, industrial, multi-family, municipal, office, retail and other projects throughout Central Florida.


Contact: Kenneth H. Cristol, 407-774-2515

Roger B. Kennedy Inc. Ranked 5th Largest General Contractor

ORLANDO, FL – Altamonte Springs-based Roger B. Kennedy, Inc. was prominently ranked as Central Florida’s 5th largest general contractor in Orlando Business Journal’s 2009 Top General Contractors survey published April 3, 2009.

Led by Roger B. Kennedy, Jr., (top left photo) President, the company reported 2008 revenues of $82.6 million. The company also ranks as one of Central Florida’s largest family-owned businesses.

Contact: Kenneth H. Cristol 407-774-2515

Sikon's Scott Speaks to Real Estate Students at UCF

ORLANDO, FL – Florida retail construction veteran Dale E. Scott, (top right photo) Senior Executive Vice President of Deerfield Beach-based SIKON Construction Corporation, one of the nation’s leading commercial contractors, served as symposium co-moderator along with Crossman & Co.’s John Crossman (bottom right photo) on March 25 at the University of Central Florida’s Dr. P. Phillips School of Real Estate.

Topics covered at the interactive presentation included strategies for real estate students entering business careers with an emphasis on networking and character-building issues.

Attended by approximately 40 undergraduate real estate students, the event was held in the classroom of Randy I. Anderson, Ph.D., (bottom left photo) who also serves as the inaugural Howard Phillips Eminent Scholar Endowed Chair at UCF’s Dr. P. Phillips School of Real Estate.

Contact: Kenneth H. Cristol 407-774-2515

Camden Property Closes $420 Million Fannie Mae Credit Facility

HOUSTON, TX, (BUSINESS WIRE)--Camden Property Trust (NYSE:CPT) announced the closing of a $420 million secured credit facility with Red Mortgage Capital, Inc., a Fannie Mae DUS® lender.

The ten-year facility has a fixed annual interest rate of 5.12% with payments of interest only, and matures on May 1, 2019. The loan is secured by 11 multifamily communities.

Camden intends to use the proceeds from this credit facility for the pay down of amounts outstanding under its revolving line of credit, retirement of existing debt and for general corporate purposes.

Prior to this transaction, the Company retired $46 million of secured mortgage debt which was scheduled to mature in early 2010.

Camden owns interests in and operates 181 properties containing 62,903 apartment homes across the United States. Upon completion of five properties under development, the Company’s portfolio will increase to 64,329 apartment homes in 186 properties.

Camden was recently named by FORTUNE® Magazine for the second consecutive year as one of the “100 Best Companies to Work For” in America.

For additional information, please contact Camden’s Investor Relations Department at 800-922-6336 or 713-354-2787 or access our website at camdenliving.com.

Camden Property Trust, Kim Callahan, 713-354-2549

General Growth’s Chapter 11 Filing Called Largest in U.S. Retail Bankruptcy History

CHICAGO, IL—In what industry insiders are calling the largest retail real estate bankruptcy filing in U.S. annals, Chicago-based General Growth Properties Inc. has voluntarily filed for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code.

(South Market in Boston, one of General Growth Properties' assets, top right photo)

Industry sources in a position to know say the General Growth Properties’ filing could be the first of several similar legal actions that may also be taken voluntarily this year by other major retail developers and investors.

Shopping center industry watchers predicted the April 16 filing after the 45-year-old mall developer couldn’t get all of its creditors to extend loan payment and payoff dates until the end of this year or longer, as Real Estate Channel previously reported.

Courts in several states in March had already ordered the seizure of about six GGP shopping centers after the developer failed to meet various loan payment deadlines.

GGP’s filing in New York listed assets of $29.5 billion and debts of about $27.3 billion.

In a prepared statement, the company said all of its 200 retail centers in 44 states will remain open for business as its bankruptcy hearing continues in the Southern District of New York’s federal bankruptcy court in New York City.

Pershing Square Capital Management LP of New York City is loaning GGP $375 million to help with day-to-day operational costs.

Pershing principal William Ackerman (middle right photo) has previously stated his firm is taking a 25 percent ownership stake in the shopping center company. That would make Pershing the third largest shareholder in General Growth Properties.

The Chapter 11 filing lists Eurohypo AG of Eschborn, Germany, a unit of Commerzbank AG, as GGP’s largest unsecured creditor with claims on two loans totaling $2.59 billion.

Eurohypo is the administrative agent for 175 separate creditors. Only 10 percent of the loans are held by Eurohypo. Note holders of General Growth Properties bonds are owed a total $4 billion.

“Our core business remains sound and is performing well with stable cash flows,” says GGP CEO Adam Metz. “We believe that chapter 11 is the best process for restructuring maturing mortgage loans, reducing the company’s corporate debt, and establishing a sustainable, long-term capital structure for the company.

“While we have worked tirelessly in the past several months to address our maturing debts, the collapse of the credit markets has made it impossible for us to refinance maturing debt outside of chapter 11.”

Metz said in the prepared statement, “The company has requested, and expects to receive, additional (court) approvals to give the company the authority to make payments to ensure that the company’s shopping centers and other properties continue to operate uninterrupted in the ordinary course of business, including paying employee compensation, certain critical service providers, insurance and other claims.

“The Company intends to pay all providers of goods and services delivered post-petition.”

General Growth Properties’ portfolio totals about 200 million square feet of retail space and includes over 24,000 stores nationwide.

(Faneuil Hall Marketplace, Boston, one of General Growth Properties' assets, bottom left photo)

The Company is listed on the New York Stock Exchange under the symbol GGP. Its common stock traded today (April 16) at $1.05, up from 57 cents on March 21 but down from its all-time high of $67 per share in March 2007.

Hampton Hotels Opens 14 Properties in March

BRAND MARKS FIRST OPENING IN ENGLAND

BEVERLY HILLS, CA— Hampton Hotels (www.hampton.com), the international brand of nearly 1,700 mid-priced Hampton Inn® and Hampton Inn & Suites® hotels, announced that it opened 14 properties during March 2009, aggregating 1,224 new rooms.

The new openings include two Hampton Inn hotels and eleven Hampton Inn & Suites properties, as well as one Hampton by Hilton which marks the brand’s first location in England.

All openings are franchised, newly constructed hotels.

“Not only is 2009 shaping up to be a record year for domestic development growth, but we also are making meaningful headway internationally, as our first entry into England with the Hampton by Hilton Corby/Kettering attests,” said Phil Cordell, (top right photo) Global Head, Hilton Focused Service and Hampton Brand Management.

“Guests appreciate our bundled amenities and price sensitivity, while developers like working with a well established hotel franchisor with such strengths as a central reservation system and the Hilton HHonors loyalty program.”

Hampton Hotels is one of the fastest growing brands for value-oriented and quality-minded travelers. Finding a Hampton Hotel is easy—they’re in urban chic locations, near shopping malls, beaches, roadside attractions—they’re everywhere, offering friendly service and 100% Satisfaction Guaranteed.

Contacts:

Charmaine Easie-Samuels, Hampton Brand Communications, (901) 374-6462

Chris Daly, Daly Gray Public Relations, ( (703) 435-6293

Grubb & Ellis Awarded 618,000 SF Management Assignment by Tesoro in San Antonio, TX

SAN ANTONIO, TX – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that it has been awarded a 618,000-square-foot management assignment by Tesoro Corporation, an independent refiner and marketer of petroleum products.

The assignment will be at Tesoro’s new company headquarters on San Antonio’s north side, which the company is expected to occupy in June.

“Grubb & Ellis won this significant management assignment after a competitive bid among multiple contenders,” said Eric Forshee, executive managing director of Grubb & Ellis Management Services.

“Tesoro is a leader in the refining and marketing industry, highlighted by their efficient, state-of-the-art new headquarters. Grubb & Ellis is pleased to partner with Tesoro and to manage this impressive facility.”

Located on 15-acres within the new Ridgewood Park business center, (top right photo) the recently constructed Tesoro campus includes the 618,000-square-foot complex, complemented by a 2,400 car parking garage.

The facility is split between two buildings connected by a main lobby, a 14-story office tower offering approximately 451,000 square feet of space and a six-story office building providing roughly 167,000 square feet of space.

The campus is being constructed to achieve LEED-New Building certification, which indicates the buildings meet the highest green building and performance measures as indicated by the U.S. Green Building Council. Both towers incorporate advanced HVAC design and equipment technologies to minimize utility consumption.

The Grubb & Ellis property management team is led by Forshee and Daryn Mieure, assistant vice president and senior portfolio manager in the firm’s San Antonio office.

The team also includes Kris Weideman, director of operations, and Mark Upton, regional engineering director.

Tesoro Corporation, a Fortune 150 company, is an independent refiner and marketer of petroleum products. Tesoro, through its subsidiaries, operates seven refineries in the Western United States with a combined capacity of approximately 660,000 barrels per day.

Tesoro's retail-marketing system includes over 880 branded retail stations, of which more than 390 are company owned under the Tesoro®, Shell®, Mirastar® and USA Gasoline™ brands.

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

Commercial Real Estate Veteran Cyndie O’Bryon Joins Grubb & Ellis Company’s Cleveland Office

CLEVELAND, OH – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that Cyndie O’Bryon, (top right photo) SIOR, one of the market’s leading office leasing professionals, has rejoined its Cleveland office as senior vice president, Office Group.

“We’re thrilled to have Cyndie back in the Grubb & Ellis family,” said Bob Nosal, executive vice president and managing director, Cleveland. “She has amazing depth of experience both as a landlord representative and on the tenant representation side of the business, and she has tremendous knowledge of the marketplace. She is an outstanding addition to our office brokerage team.”

O’Bryon joins Grubb & Ellis from Stark Enterprises Inc., where she was vice president of office properties and was responsible for the leasing of all existing and planned office buildings in company’s portfolio.

Prior to joining Stark Enterprises in 2008, she was a vice president at Trammell Crow Company, which acquired Brandon Wiant Converse in 2006.

From 1991 to 2001, O’Bryon was vice president and director of office leasing at Ohio Savings Management. During the same period, she was a principal of O’Bryon Larkman and Associates, a boutique commercial real estate brokerage and management firm she founded in 1991.

O’Bryon began her career in 1981 at Adler Galvin Rogers, which was acquired by Grubb & Ellis. During her 10-year tenure there, she rose to the level of senior vice president.

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

Stirling Sotheby’s International Realty Launches Rental Lifestyles Residential Property Management Services

ORLANDO, FL --- Stirling Sotheby’s International Realty has launched Rental Lifestyles, a five star property management service that will focus on leasing luxury and executive homes, town homes and condominiums.

Roger Soderstrom, (bottom right photo) owner and founder of Stirling Sotheby’s International Realty, said he appointed Peter Voigt (top right photo) performance director of Rental Lifestyles. (http://www.cflrentals.com/)

Voigt, a licensed real estate broker who majored in Marketing at the University of Central Florida, has more than nine years of experience.

He was formerly affiliated with Orlando Rental Store, LLC, and Big Apple International Realty in Longwood.

“Rental Lifestyles will bring an entirely new rental concept to Central Florida that will offer clients a manner of living that reflects their values and attitudes,” said Soderstrom.

Soderstrom said Stirling Sotheby’s Rental Lifestyles will provide residents personal contact with a professional Lifestyle Consultant that will assist them in finding the right neighborhood, amenities and the lifestyle they’re looking for, as well as ongoing services and support they may require in the future.

“It is our commitment to provide every customer with five star service and place them in a property that fits their budget,” Soderstrom said.

“With our marketing scope and Sotheby’s International Realty affiliation, we are in a unique position to offer rental property owners an enormous market base that includes U.S. and international clients,” Soderstrom said.

For more information, please contact
Roger Soderstrom, Founder/Owner Stirling Sotheby’s International Realty, 407-588-1260

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

Arbor Closes $8,775,000 Fannie Mae DUS ® Loan for Brampton Court Apartments in Bellingham, WA

Uniondale, NY - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $8,775,000 loan under the Fannie Mae DUS® product line for the 171-unit complex known as Brampton Court Apartments (top right photo) in Bellingham, WA.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 5.86 percent.

The loan was originated by Jon Red, (bottom left photo) Director, in Arbor’s full-service Spokane, WA lending office.


“The borrower wanted to secure a long-term, low-interest rate and minimize escrows for the property,” said Red.


“With several lenders competing for the deal, Arbor provided several options to structure the loan and it was our flexible approach that won us the business.”


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

RealtyTrac Reports Foreclosure Activity Increases 9% in First Quarter

U.S. Foreclosure Activity Up 24 Percent From Q1 2008

March Activity Up 17 Percent From February, 46 Percent From March 2008

IRVINE, CA, April 16, 2009 – RealtyTrac®, the leading online marketplace for foreclosure properties, today released its U.S. Foreclosure Market Report™ for Q1 2009.

The report shows foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 803,489 properties in the first quarter, a 9 percent increase from the previous quarter and an increase of nearly 24 percent from Q1 2008.

One in every 159 U.S. housing units received a foreclosure filing during the quarter.

Foreclosure filings were reported on 341,180 properties in March, a 17 percent increase from the previous month and a 46 percent increase from March 2008.

The March and Q1 2009 totals were the highest monthly and quarterly totals since RealtyTrac began issuing its report in January 2005 despite a decrease in bank repossessions (REOs), which were down 13 percent from the fourth quarter of 2008 and 3 percent from February totals.

“In the month of March we saw a record level of foreclosure activity — the number of households that received a foreclosure filing was more than 12 percent higher than the next highest month on record.

" Since much of this activity was in new foreclosure actions, it suggests that many lenders and servicers were holding off on executing foreclosures due to industry moratoria and legislative delays,” said James J. Saccacio, (top right photo) chief executive officer of RealtyTrac.

“It’s also likely that the drop in REO activity can be attributed to these processing delays, rather than to any of the foreclosure prevention programs currently in place. It’s very likely that we’ll see the number of REOs increase again now that most of the moratoria have been lifted.”

“On a positive note, it appears that demand is up in some of the harder-hit areas, particularly on bank-owned REO properties that first time homebuyers and investors see as bargains,” Saccacio continued. “But it’s unlikely that this increased demand will be enough to offset the growing number of foreclosures in the pipeline, accelerated by rising unemployment rates.”

Nevada, Arizona, California post top state foreclosure rates in first quarter

Nevada continued to document the nation’s highest state foreclosure rate in the first quarter, with one in every 27 housing units receiving a foreclosure filing — more than five times the national average.

Foreclosure filings were reported on 41,296 Nevada properties during the quarter, an increase of 19 percent from the previous quarter and an increase of nearly 111 percent from Q1 2008.

Bank repossessions in Nevada were down 3 percent from the previous quarter, but defaults increased 27 percent and auction sale notices increased 35 percent.

Arizona posted the nation’s second highest state foreclosure rate for the first quarter, with one in every 54 housing units receiving a foreclosure filing, and California posted the nation’s third highest state foreclosure rate, with one in every 58 housing units receiving a foreclosure filing.

Other states with foreclosure rates ranking among the top 10 in the first quarter were Florida, Illinois, Michigan, Georgia, Idaho, Utah and Oregon.

Five states account for nearly 60 percent of nation’s first quarter total

California, Florida, Arizona, Nevada and Illinois accounted for nearly 60 percent of the nation’s foreclosure activity in the first quarter, with 479,516 properties receiving foreclosure filings in the five states combined.

With 230,915 properties receiving foreclosure filings during the quarter, California accounted for nearly 29 percent of the nation’s total.

The state’s foreclosure activity increased 35 percent from the previous quarter and 36 percent from Q1 2008, and the first-quarter total was state’s highest quarterly total since RealtyTrac began issuing its report in the first quarter of 2005.

Despite a 12 percent decrease from the previous quarter, Florida’s first quarter total was still second highest in the nation.

Foreclosure filings were reported on 119,220 Florida properties, a 36 percent increase from the first quarter of 2008.

The state posted the nation’s fourth highest state foreclosure rate during the quarter, with one in every 73 housing units receiving a foreclosure filing.

Foreclosure filings were reported on 49,119 Arizona properties in the first quarter of 2009, the third highest total among the states, and 41,296 Nevada properties received a foreclosure filing in the first quarter of 2009, the fourth highest total among the states.

Illinois posted the nation’s fifth highest total, with 38,966 properties receiving a foreclosure filing during the first quarter — a 32 percent increase from the previous quarter and a 68 percent increase from the first quarter of 2008. With one in every 135 housing units receiving a foreclosure filing, the state’s foreclosure rate also ranked fifth highest among the states.

Rounding out the states with the 10 highest foreclosure activity totals in Q1 2009 were Michigan, Ohio, Georgia, Texas and Virginia.

Contact: Tammy Chan Atomic PR
Direct: 212-699-3646
Mobile: 408-802-8682
tammy@atomicpr.com

SchenkelShultz Promotes Krueger to Partner

FORT MYERS/NAPLES, FL – Gary F. Krueger, (top right photo) AIA, Principal-in-Charge of SchenkelShultz Architecture’s Fort Myers and Naples offices, was promoted to Partner.

Krueger will continue in his role of management of the Southwest Florida offices of SchenkelShultz.

A Registered Architect, he has been with SchenkelShultz for 20 years and holds a Master of Architecture degree from the University of Oklahoma as well as a Bachelor of Science in Architectural Engineering from the Milwaukee School of Engineering. He is also a member of the American Institute of Architects.

Contact: Kenneth H. Cristol, 407-774-2515