Tuesday, August 31, 2010

Grubb & Ellis Commercial Florida Negotiates long term industrial renewal lease of 22,000 SF+ at Orlando Corporate Center

ORLANDO, Fla. -- Grubb & Ellis Commercial Florida, associated with 130 Grubb & Ellis offices worldwide, negotiated a long-term renewal lease for 22,353 square feet of industrial space at 7803 Southland Blvd. in the Orlando Corporate Center.

Jan Boltres (top right photo), CCIM, senior vice president and Michael T. Davis (top left photo), vice president in the Industrial Group at Grubb & Ellis Commercial Florida, brokered the transaction representing the tenant Tape Products Co. of Cincinnati, Ohio and the landlord Orlando-based Prologis.

The lease is valued in excess of $500,000.


Jan Boltres, CCIM 813-639-1111, Jboltres@commercialfl.com
Mike Davis, VP Industrial 407-481-5402, Mdavis@commercialfl.com
Jeff Sweeney, 407-481-5387, jsweeney@commercialfl.com
Larry Vershel 407-644-4142, Lvershelco@aol.com

Central Florida Advisors, a Grubb & Ellis Commercial Florida Subsidiary, Increases Portfolio of Tax Advisory Properties by 300 Percent

ORLANDO - Last year, Central Florida Advisors, the tax advisory subsidiary of Grubb & Ellis Commercial Florida, represented properties valued at more than $100 million.

This year, Central Florida Advisors represents properties valued at more than $460 million in Florida, reports Jeff Sweeney (top right photo), president and managing principal at Grubb & Ellis Commercial Florida.

Central Florida Advisors specializes in helping commercial property owners reevaluate their property tax assessments, Sweeney explained.

Central Florida Advisors helped the owners of one suburban-area mixed use property cut their property taxes by nearly 50 percent, Sweeney said.

“That resulted in over $200,000 of tax savings for their bottom line,” he added.

The deadline for appealing property tax assessments in Orange County is Sept. 10.

Brett Felberg, 407-481-5390;
Jeff Sweeney SIOR President 407-481-5387;
Larry Vershel Communications 407-644-4142

HUD's 223 (a)(7) Funding Program to Refinance Existing HUD Healthcare Loans

CHICAGO, IL--Applying for and securing HUD Section 232 senior housing/healthcare funding has been likened to balancing the interests of borrowers, lenders and the government agency on a three-legged stool.

And then along came HUD Lean to centralize and streamline the application and underwriting processes and make the rules for borrowers more uniform and user-friendly.

Cambridge Realty Capital Companies Chairman Jeffrey A. Davis (top right photo) says HUD loans still require borrowers and lenders to present impeccably prepared documents and meet demanding underwriting criteria.

 However, for borrowers who have been there before and currently have an existing HUD 232 mortgage loan, mutually aligning interests with the lender and federal agency has never been easier -- or on a steadier platform.

And rarely has refinancing a HUD loan offered as much potential for improving profits, he observes.

Chicago-based Cambridge is one of the nation’s leading senior housing/healthcare lenders and consistently ranks among the top HUD healthcare lenders in the country. Since the mid-1990s, the company has closed more than 300 senior housing/healthcare loans totaling more than $3 billion.

Davis says HUD’s 223 (a)(7) program is used by borrowers whose existing HUD loans are currently beyond the lockout period. The lockout period refers to the timespan between a loan’s closing date and the date it is eligible to be refinanced, which can vary depending upon specific sets of circumstances.

The timing for this type of financing is especially auspicious because interest rates are at historically low levels, and lower rates equate to higher operating profits. Because the funding program enables borrowers to refinance the full original loan amount, additional funds for capital improvements are available, he points out.

Davis notes that FHA-approved HUD lenders like to see capital improvements in the assets they’re holding. And they like the fact that debt service is the only major underwriting consideration involved in HUD 223 (a)(7) transactions.

HUD also appreciates the relative simplicity involved in underwriting these “low risk” loans. This became apparent when agency created a special queue it calls the “Green Lane” to move these loans through the process more swiftly.

Popularity of the funding product is growing. Since the first of this year, 40 percent of the healthcare loans processed by Cambridge have refinance existing HUD loans, and a lot more of these transactions are in the Cambridge pipeline, he said.

Contact:  Evan Washington, Phone: (312) 521-7603, Fax: (312) 357-1611, E-Mail: mailto:ew@cambridgecap.com
Twitter: http://twitter.com/CambridgeCap

Foreclosure Filings Top 250,000 In South Florida Since 2007

MIAMI, FL--Lenders have initiated more than 250,000 foreclosure actions - also known as Lis Pendens or notices of default - against properties in the tricounty South Florida region since 2007, according to a new report from CondoVultures.com.

The South Florida region reached the 250,000 foreclosure filings threshold on Friday, Aug. 27, when lenders initiated a combined 248 actions against properties in Miami-Dade, Broward, and Palm Beach counties, according to the report based on the Condo Vultures® Foreclosure Database™.

"To reach 250,000 foreclosure filings since the real estate crash began in 2007, lenders have had to file an average of nearly 200 actions per day in the South Florida region," said Peter Zalewski, (top right photo) a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.

 "If current trends continue, South Florida foreclosure filings would have hit their peak in 2009 when more than 97,000 actions were filed in a single year.

" In the first seven months of 2010, foreclosure filings are down 35 percent compared to 2009, putting the region on pace for less than 70,000 actions this year.

"Compare that to 2008 when lenders filed about 76,000 foreclosure actions in South Florida."

Condo Vultures® is assembling a panel of experts on Sept. 14 in Downtown Miami to discuss the issue of future foreclosures in a seminar entitled "Concerns Grow About Double Dip For South Florida Real Estate."

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com.

Plants, the Ultimate Building Amenity in Commercial Real Estate

ORLANDO, FL--David Liu, (top right photo) corporate president, Foliage Design Systems, Orlando, FL, says,  "We live in a time of a challenged real estate market, to say the least.

"While tightened budgets are the norm, don't lose sight of your main objective, which for the commercial building manager or the home seller, is to find a willing customer.

"Potential home buyers and tenants are influenced by the same value as they always have been. It is a known fact that an attractive, well-maintained landscape helps sell homes, so much in fact that some agents will not list a home with a weed infested, broken down landscape.

"The same is true of the office building or shopping center. A high level developer seeking acquisition of a mall once told me that poor housekeeping and dying, badly cared for plants are the death knoll of a shopping center.

"He went on to say that these things are glaring to the shopper who might think twice about a return visit.

"In contrast, savvy building owners understand that well-managed plants are one of the least expensive costs for the greatest impact. All property managers live by the rule of the square foot. The cost of management is broken down per square foot as is the cost to sell or lease space.

"Consider this: Two strategically placed planters, perhaps flanking the doors of the exterior entry, may take up about 18 square feet total. Plant these two planters with a color combination of tropical and blooming plants. Depending upon how many times your contractor replants with a fresh new seasonal look, those two planters, if part of the interior plant service program, may cost you an additional $50.00 per month.

Hibiscus Entryway

"In the case of 100,000 square foot building, the distributed cost of the planting is about half a penny. Look at the impact!

"The exterior planters, flanking the entry, greet every tenant and visitor like high-end doormen, well-known to the hotel industry as an important part of the guest experience. For passers-by, a blaze of blooming color, shimmering in the sun light, will surely draw their attention for a future visit.

"In today's real estate market, flourishing plants may just be the most economical thing you can do to enhance the perceived property value. Your local Foliage Design Systems office can provide you with a cost free consultation that will allow you maximize your indoor and containerized planting potential."

Contact: David Liu,  info@foliagedesign.comhttp://www.foliagedesign.com/

Grubb & Ellis Enhances Lease Administration Capabilities With Addition of Nickie Taylor and Jason Huggins

SANTA ANA, Calif. (Aug. 31, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that Nickie Taylor, (top left photo)  a 25-year lease administration and property management veteran, has joined the company as vice president, managing director of Lease Administration, effective immediately.

Jason Huggins (top right photo)  also joins as vice president, Lease Administration and director of Retail Accounts. Both will be based in the company’s Dallas office.

Taylor, who joins from SRS Real Estate Partners, will be responsible for overseeing Grubb & Ellis’ lease administration portfolio, which totals in excess of 100 million square feet of space.

 She will report to Suzanne MacLennan, senior vice president and national director, Client Accounting and Lease Administration.

Huggins was previously senior director of Lease Administration & Worldwide GIS at Blockbuster Inc., where he oversaw the monthly payment and processing of more than $50 million in rent payments. He will be responsible for overseeing lease administration for Grubb & Ellis’ retail clients and will report to Taylor.

Greg O’Brien Joins Grubb & Ellis as Senior Vice President, Office Group

ATLANTA (Aug. 31, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that Greg O’Brien (middle right photo), LEED AP, has joined the company as senior vice president, Office Group, and Southeast leader of the Clean Energy practice group.

 O’Brien joins from Sustainable Options LLC, where he was co-founder and principal.

“Greg has established himself as a leading authority on real estate for the clean energy industry, for the solar and wind sector in particular,” said Bob Dean, (middle left photo)  executive vice president and leader of Grubb & Ellis’ Clean Energy practice group.

“In addition to providing valuable insight to enhance the sustainability initiatives we employ nationwide, Greg’s addition to the Clean Energy practice group supports our ability to bring a higher level of real estate expertise to the production of energy from alternative sources.

" His expertise and relationships in the sectors that are emerging in the Southeast, including solar and wind power, are particularly valuable for us.”

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

Grubb & Ellis Tapped as Leasing Agent for 246,800 SF in Chantilly, VA

TYSONS CORNER, VA (Aug. 31, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that it has been selected by MRP Realty and Rockpoint Group as the leasing agent for Plaza East (top right and lower left photos), a two-building Class A office complex totaling 246,800 square feet in Chantilly.

Andy Klaff, executive vice president, and Charles Dilks, vice president, will handle the leasing for the property, located at 14291 and 14295 Park Meadow Drive.

Plaza East is prominently located in Westfields Corporate Center, a premier Northern Virginia corporate campus, well-known for its beautiful landscaping, tree-lined walkways and jogging paths.

 The property’s proximity to Route 28 provides convenient access to the District of Columbia and the Northern Virginia suburbs, as well as easy access to Dulles Toll Road, I-66 and Washington Dulles International Airport.

Built in 2007, the two five-story, 123,400-square-foot buildings feature signature architecture by HOK Inc. including flexible floor plates and an award-winning lobby with limestone slate floors, glass walls and stainless steel details.

 Overlooking Route 28, the major north-south transportation corridor in western Fairfax County, the buildings offer tenants spectacular corporate signage opportunities.

Nearby amenities include a wide array of restaurants and shops, as well as Marriott Westfields Conference Center, a world-class hotel and conference facility which offers 340 guest rooms, 40,000 square feet of flexible meeting space and three restaurants.

For more information, contact
Dilks at 703.918.0251 or charles.dilks@grubb-ellis.com.
Erin Mays, Phone: 312.698.6735, Email: erin.mays@grubb-ellis.com

Randy Baird joins HFF as senior managing director to focus on industrial investment sales

DALLAS, TX – HFF (Holliday Fenoglio Fowler, L.P.) announced today that Randy Baird has joined the firm as a senior managing director in the investment sales group in its Dallas office.

Baird has more than 20 years of experience in commercial real estate and will join HFF’s Jud Clements (top right photo) and Robby Rieke (lower left photo)  in focusing on industrial investment sales.

Baird will also assume a role in the guidance of HFF’s national industrial sales platform. During the course of his career, he has been involved in the sale of more than 350 million square feet of industrial real estate totaling $16 billion in transaction value.

 Most recently, Baird was a managing partner at Baird Fitzgerald Partners. Prior to that, he was an executive vice president at CB Richard Ellis and an executive director at Cushman & Wakefield. He graduated from the University of North Texas with a Bachelor of Business Administration and a concentration in Real Estate.


Andrew S. Levy, HFF Senior Managing Director, (214) 265-0880, alevy@hfflp.com
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com

Colliers International Completes $4.8M Sale of Sunset Pointe Industrial Center in Henderson, NV

HENDERSON, NV, Aug. 30, 2010 – Colliers International, the second largest real estate services organization globally, has completed the sale of the 104,030-square-foot Sunset Pointe Industrial Center at 505-585 W. Sunset Rd. in Henderson, Nev., to Laguna Beach, Calif.-based Bakken Wineville Properties, LLC for $4.8 million.

Sunset Pointe is a state-of-the-art business park comprised of 21 individual industrial buildings.

 Built in 2009, the property features storefront glass entrances, 18-foot warehouse clearance and potential fenced storage yards on eight of the 21 buildings.

“We offer clients an efficient process that directly markets an asset to today’s buyer pool. Our marketing platform generated 15 offers, allowing our seller to capture the best price and deal terms.

Escrow closed within 90 days of listing the property,” said Scott Heaton, (top right photo)  senior vice president in Colliers’ Downtown Los Angeles office.

Heaton, along with Patrick Barnes, (middle right  photo)  associate vice president in Colliers’ Downtown Los Angeles office, and E.J. Paul Sweetland (lower left  photo) , IV, SIOR, vice president in Colliers’ Las Vegas office, represented the seller, City National Bank.

“This transaction illustrates a current market trend where a quality development goes from the original developer back to the bank, and is then purchased by another investor/developer,” added Sweetland.

The buyer was represented by Mel Koich of Lee and Associates.

Contact: Megan Morales, Marketing & PR Coordinator, 949 724 5537, megan.morales@colliers.com

Monday, August 30, 2010

Grubb & Ellis Commercial Florida Negotiates New Lease with Family Care at Bardmoor at Fairways Office Center at Bardmoor in Largo, FL

TAMPA, Fla. --- Grubb & Ellis Commercial Florida, associated with 130 offices worldwide, recently negotiated a new office lease agreement at The Fairways Office Center at Bardmoor in Largo.

James C. Moler, (bottom right photo) CCIM and Paula Buffa (top right photo), CCIM senior vice presidents in the Office Group at Grubb & Ellis Commercial Florida, and associate Maria Camarinos Hall (top left photo) negotiated the transaction representing the landlord, EJB Fairways, LLC based in Seminole, Fla.

Family Care at Bardmoor, an affiliate of HCA Healthcare, leased suite 101 with 4,783 square feet at the center located at 8200 Bryan Dairy Rd.

 The tenant formerly leased 1,880 square feet at the property and will more than double its occupancy upon relocating to the new space in early October.

With the additional space Family Care at Bardmoor can introduce more primary care physicians, expand their existing clinical services and bringing in-house more tests and equipment for their patients.

 Family Care at Bardmoor is a teaching practice and has a rotation of eleven physicians fulfilling their residency requirements.

This provides the patients of Family Care at Bardmoor a host of physicians to choose from and more time to spend with their physicians. The additional space and updated floor plan will allow the practice to be more efficient; reducing wait times and allowing the practice to accept more new patients.

Family Care at Bardmoor has three full time board certified family physicians. Family Care at Bardmoor is a residency practice for St Petersburg General Hospital. The current class of osteopathic physicians focusing on primary care consists of eleven total physicians; seven female physicians and 4 male physicians


James C. Moler CCIM, 813-639-1111
Paula Buffa, CCIM, RPA 813-830-7887
Jeffrey Sweeney, SIOR President 407-481-5387
Larry Vershel Communications 407-644-4142

Forest City Selected by U.S. Air Force for Military Family Housing at Four Southern Group Bases

CLEVELAND, Aug. 30 /PRNewswire/ -- Forest City Enterprises, Inc., (NYSE: FCEA)(NYSE:and)(NYSE:FCEB) today announced that its Forest City Military Communities subsidiary has been selected by the U.S. Air Force to privatize military family housing at four bases in the southeastern United States.

The project will involve the management, new construction and/or demolition of Air Force family housing at the Southern Group bases, resulting in an end state of approximately 2,185 units.

"The awarding of the Southern Group is an important milestone for our military housing business," said Charles A. Ratner, (middle right photo) Forest City president and chief executive officer.

"It significantly expands our portfolio and broadens our involvement with Air Force family housing.

"We're proud to have been chosen for this project and to have an even greater opportunity to improve the quality of life and sense of community for military families across the country.

 I congratulate our entire military housing team, led by Tom Henneberry (middle left photo), on this important acknowledgement of their skill, capability, professionalism and hard work."

The four bases involved are Shaw AFB and Charleston AFB in South Carolina, Arnold AFB in Tennessee, and Keesler AFB in Mississippi.

As part of the project, the Air Force will lease a combined total of 846 acres of land and convey 2,387 existing housing units to Forest City.

Over the course of a three-year initial development period, the company expects to demolish 1,189 existing, inadequate housing units and construct 987 new housing units.

Following the development phase, Forest City will manage and maintain a combined total of 2,185 housing units at the bases over a 50-year contract period. Closing on the project is expected to occur in early 2011.

With the awarding of the Southern Group, Forest City's military housing portfolio now includes military family housing projects in nine states for the Navy and Marines, as well as the Air Force.

 Current project sites include Navy Region Hawaii (top left photo), Navy Northwest (Puget Sound region of Washington), Navy Great Lakes in Illinois and Indiana, Navy Mid-South in Tennessee and the U.S. Air Force Academy in Colorado. The Company's portfolio of military family homes, either existing, under design or construction, totals approximately 14,138 housing units with the addition of the Southern Group.

 Robert O'Brien, Executive Vice President - Chief Financial Officer, +1-216-621-6060; Jeff Linton, Vice President - Corporate, Communication, +1-216-621-6060; http://www.forestcity.net/      Web Site: http://www.forestcity.net/

Kevin J. Riley Joins Grubb & Ellis as Vice President

CLEVELAND (Aug. 30, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that Kevin J. Riley (top right photo), CCIM, has joined the company as vice president, Tenant Advisory Group, effective immediately.

“Kevin’s reputation as an experienced tenant representation broker in our market makes him a tremendous addition to our team,” said Bob Nosal, executive vice president and managing director of the Cleveland office.

“Bringing him on board supports our corporate user clients both locally and nationally, enhancing the strength of our Corporate Services platform and helping us grow in an area we’re focused on.”

Riley joins Grubb & Ellis from Colliers Ostendorf-Morris, where he was a Top 10 producer in 2008 and 2009, earning the distinction as the top office broker in 2009. In his six years at Colliers, Riley completed the lease or sale of more than 600,000 square feet of office space valued in excess of $50 million.

“Grubb & Ellis offers a robust platform locally and nationally that sets it apart from its competitors and is a platform that will greatly benefit my clients,” said Riley.

 “The professionals in Grubb & Ellis’ Cleveland office are considered to be some of the top brokers in our market, and I look forward to working with them to further build Grubb & Ellis’ tenant representation business in Cleveland.”

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

Home at Last Breaks Ground for Disabled Veteran's House

OAKLAND, FL, Aug. 30, 2010 — A groundbreaking ceremony was held on Saturday, August 28, 2010 at the Oakland Pointe community that will soon be home to wounded Afghanistan War veteran Sergeant Major Patrick Corcoran, his wife and two sons, Patrick, 3 and TJ, 12.

 As the third such home created by the nonprofit organization Home at Last, a special project of the West Orange Habitat for Humanity, the one-story, handicapped accessible home is being built entirely on donations and in-kind contributions of construction materials and labor.

The $300,000 home is planned for completion in early 2011.

Jack Scott of Winter Park Design is the home’s architect. General contracting services are donated by Winter Park Construction, Hensel Phelps Construction Company and A.D. Owens Construction Corp. Home at Last’s goal is to present the home to the Corcoran family mortgage-free.

The four-bedroom, two-bath home features a painted stucco façade with a shingle roof in the modern-styled ranch design. In keeping with universal design standards, the home has lower outlets, switches and thermostats to accommodate a person in a seated position.

Hallways are four-feet wide and doors are 36-inches wide for easy wheelchair access throughout the residence.

Level changes throughout the home are ramped including ingress and egress points. The master bath has a roll-in shower, and the floor plan includes an exercise/rehabilitation room to allow SGM Corcoran to continue his rehabilitation. Accessible elements in the kitchen and laundry room accommodate both disabled and able-bodied family members.

PR contact: Elaine Ingra, PR WORKS, 407 348-1344, elainei@pr-works.com

Winter Springs, FL Picks D & A Building Services for Town Center Landscape Contract

LONGWOOD, FL,  Aug. 30, 2010 — The City of Winter Springs, Fla., has selected D & A Building Services Inc. for an annual landscape maintenance contract.

Under the scope of its services, the facility maintenance company is providing mowing, trimming, edging, weeding, pruning, annuals, and irrigation maintenance for the right-of-ways and medians on State Road 434 from Tuskawilla Road to the Oak Forest subdivision.

PR Contact: Elaine Ingra, (407) 384-1344 elainei@pr-works.com

Plaza Advisors Announces Second Walgreens Sale of 2010

TAMPA, FL, Aug. 30, 2010--Plaza Advisors is pleased to announce the recent sale of a newly constructed Walgreen’s store in Ocala, Florida.

This building totaled 16,510 square feet and is situated at the intersection of State Road 200 and SW 80th Avenue, at the entrance to the On Top of the World residential communities. The Walgreen’s opened in June 2010 and features a liquor store.

Plaza Advisors represented the seller in the transaction and co-managing partners Anthony Blanco (top left photo)  and Jim Michalak (top right photo), together with Senior Associate Lenard Williams (lower right photo), were involved in the engagement. The sale of this property marks the second freestanding Walgreen’s sale by Plaza Advisors in 2010.

Plaza Advisors is a real estate brokerage firm that specializes in the disposition of retail properties in the southeastern United States. The firm has offices in Tampa and Miami. Plaza Advisors’ clients include private equity investors, developers, and major institutions including fund advisors, servicing agents, life insurance companies, REITs, and money center banks.

Co-managing partners Jim Michalak and Anthony Blanco have a combined 40 years investment brokerage experience. The duo has closed over 140 shopping center transactions, with a combined GLA exceeding 15 million square feet with an aggregate sales volume in excess of $2 billion.

Contact: Jim Michalak, Managing Partner, Plaza Advisors, 3412 Bay To Bay Boulevard Tampa, FL 33629, 813.837.1300 Ext. 101, Fax 831.2627

Grubb & Ellis Commercial Florida Negotiates new lease agreement for Fastener Distributor at industrial facility in Tampa

TAMPA – Grubb & Ellis Commercial Florida, associated with 130 Grubb & Ellis offices worldwide, negotiated a lease agreement for 15,945 square feet of industrial space at 4300 E. 7th Ave. at the intersection of N. 43rd Street in Tampa.

Chuck Bohac, (top right photo) vice president in the Industrial & Land Services Group at Grubb & Ellis Commercial Florida, brokered the transaction representing the new tenant Vertex Distribution. Vertex is an Attleboro, Mass.-based distributor of fasteners, rivets and clamps relocating its Tampa operations from nearby Adamo Drive.

The landlord is ABD Capital Corporation of Tampa.

Media contact:  Beth Payan, Larry Vershel, lvershel@aol.com

NAI Realvest Negotiates Sale of Industrial Condo for $272,500 in Southwest Orlando

MAITLAND, FL - NAI Realvest recently negotiated the sale of an industrial condo at Southwest Orlando’s All Star Service Center, 6610 Kingspointe Parkway off Sandlake Rd. West near the Florida Turnpike.

NAI Realvest associate Drew Saphos (top right photo)  negotiated the transaction along with principal Christie Alexander (lower left photo)  and chairman George Livingston. NAI Realvest represented the seller, Columbus, Ohio-based United Midwest Savings Bank.

Legend Express, Inc. USA is the buyer who paid $272,500 for the 4,800 square foot facility which includes 720 square feet of office/showroom space.

Chuck McNulty of McNulty Group represented the buyer in the transaction.

For more information, please contact:
Christie Alexander or Drew Saphos, NAI Realvest, 407-875-9989;
Patrick Mahoney, President, NAI Realvest 407-875-9989 pmahoney@realvest.com;
 Beth Payan, Larry Vershel Communications, 407-644-4142 lvershelco@aol.com

Grubb & Ellis Apartment REIT Agrees to Acquire Nine Properties and Property Management Business for $182M

 SANTA ANA, CA (Aug. 30, 2010) – Grubb & Ellis Apartment REIT, Inc. today announced that it has entered into definitive agreements totaling $182 million to acquire nine multifamily properties from affiliates of MR Holdings, LLC and substantially all of the assets of Mission Residential Management, LLC, the Mission Residential property management business.

The acquisitions are subject to customary closing conditions and the satisfaction of other requirements as detailed in the agreements.

“The proposed acquisitions announced today will be a tremendous step in the growth and evolution of Grubb & Ellis Apartment REIT that will strengthen the company and add significant value for our stockholders,” said Stanley “Jay” Olander Jr., (top right photo)  chairman and chief executive officer.

“We will enjoy greater economies of scale, equity will increase by approximately 18 percent, and the transactions will be immediately accretive to our bottom line earnings, increasing funds from operations and coverage of our investor dividend.”

The nine multifamily properties include 2,676 apartment units located in North Carolina, Tennessee and Texas.

One of the properties is owned by a limited partnership for which an affiliate of MR Holdings serves as general partner.

The other eight properties under contract are owned by Delaware statutory trusts for which affiliates of MR Holdings serve as trustee.

Total consideration for the acquisition of the nine properties totals $176.9 million comprised of cash, debt and limited partnership interests in Grubb & Ellis Apartment REIT’s operating partnership.

Mission Residential Management is the property manager of 41 multifamily communities, including the nine under contract for purchase, totaling approximately 12,000 apartment units in Georgia, Texas, North Carolina, Tennessee, Utah and Florida.

Under terms of the asset purchase agreement, Grubb & Ellis Apartment REIT will acquire substantially all of the assets of Mission Residential, including workforce in place and the assignment and assumption of the property management agreements for all of the Mission Residential properties, for $5.5 million in cash plus the assumption of certain liabilities.

According to Olander, “The acquisition of the Mission Residential property management business will provide immediate fee income to Grubb & Ellis Apartment REIT, provides a platform for the self-management of our entire portfolio, and adds nearly 300 experienced professionals to our talented employee base.”

Additionally, Grubb & Ellis Apartment REIT will seek the consent of the respective tenant-in-common owners of six multifamily communities totaling 1,510 apartment units in North Carolina and Texas to acquire these properties.

 Total consideration for these proposed acquisitions would be $99.5 million, including limited partnership interests in the REIT’s operating partnership and assumed debt.

The Grubb & Ellis Apartment REIT portfolio is currently comprised of 14 multifamily properties totaling 3,747 apartment units valued at approximately $358 million, based on purchase price.

Should the REIT successfully complete all 15 proposed property acquisitions, its portfolio will total 29 multifamily properties totaling 7,933 apartment units valued at approximately $661.4 million, based on purchase price.

FBR Capital Markets & Co. served as financial advisor to MR Holdings in connection with the transactions, while Wells Fargo Securities / Eastdil Secured served as financial advisor to Grubb & Ellis Apartment REIT.

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

Arbor Closes $1,080,000 Fannie Mae DUS® Small Loan for Haltom Oaks Apartments in Haltom City, TX

Uniondale, NY (Aug. 30, 2010) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $1,080,000 loan under the Fannie Mae DUS® Small Loan product line for the 68-unit complex known as Haltom Oaks Apartments (top left photo) in Haltom City, TX.

The 10-year loan amortizes on a 25-year schedule and carries a note rate of 5.51 percent.

The loan was originated by Anthony Tarter (bottom  right photo), Director, in Arbor’s full-service Dallas, TX, lending office.

“We were pleased to be able to provide financing for the repeat Fannie Mae borrower and this good quality property, which sits in a desirable location within the Dallas/Fort Worth area.”

Contact:  Christopher Ostrowski, costrowski@arbor.com