Wednesday, August 18, 2010

New Faces at Grubb & Ellis

David E. Stack is New Project Manager in Dallas, TX

DALLAS, TX (Aug. 18, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that David E. Stack, P.E., LEED AP, a 23-year commercial real estate veteran, has joined the company as vice president, Project Management.

Stack joins from Jones Lang LaSalle, where he served as a senior vice president of Design and Construction.

“David brings extensive experience as a project manager, having completed five million square feet of project management assignments valued in excess of $400 million,” said Moody Younger, (top right photo)  executive managing director, Texas.

 “His ability to see the big picture in creating solutions for clients, combined with a detailed, process-oriented execution, enables him to add tremendous value to the companies we serve. I am thrilled he has joined our team.”

Stack spent 11 years as a vice president of Design and Construction for The Staubach Company prior to its acquisition by Jones Lang LaSalle in 2008.

Karl Abert Comes Aboard as Vice President, Multi Housing Group in Phoenix, AZ

PHOENIX, AZ  (Aug. 18, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that Karl Abert has joined the company as vice president, Multi Housing Group. He will form a team with David Cravath, (middle  right photo)  vice president, who joined the company in June.

“Karl joins our office with tremendous experience in multi housing sales and brokerage, which was further evidenced by his recent tenure serving as a key asset manager for a receivership on behalf of the FDIC,” said Pete Bolton, (middle  left photo)  executive vice president, managing director of the company’s Phoenix office.

 “He and Dave will make an excellent team, leading the Multi Housing capabilities in our Phoenix office.”

Abert joins Grubb & Ellis after serving six months on a receivership on behalf of the FDIC, focusing on commercial and residential subdivision loan workouts in Salt Lake City. Previously, he served in senior Commercial Finance positions of Integrated Commercial Capital and Churchill Commercial Capital.

Erin Mays, Phone: 312.698.6735, Email:
Julia McCartney, 714.667.8252,

Grubb & Ellis Healthcare REIT II Acquires Cape Girardeau Long-Term Acute Care Hospital in Missouri

CAPE GIRARDEAU, Mo. (Aug. 18, 2010) – Grubb & Ellis Healthcare REIT II, Inc. today announced that it has acquired Cape Girardeau Long-Term Acute Care Hospital, (lower right photo) a single-story, 26,000-square-foot, Class A single-tenant facility in Cape Girardeau. The acquisition closed on Aug. 12.

Located at 3255 Independence St., approximately 115 miles to the south of St. Louis and 170 miles to the north of Memphis, Cape Girardeau Long-Term Acute Care Hospital is within one-and-a-half miles of the 258-bed St. Francis Medical Center, the region’s largest acute care facility and a significant source of referral patients.

Construction of a 208,000-square-foot combined Heart Hospital and Cancer Institute is currently underway at the medical center.

“Cape Girardeau Long-Term Acute Care Hospital is the first of a four property portfolio of long-term acute care hospitals we are in the process of acquiring under a long-term sale leaseback agreement,” said Danny Prosky (lower left photo), president and chief operating officer.

“The addition of these long-term care centers further diversifies Grubb & Ellis Healthcare REIT II, from both a geographic and asset mix perspective, and provides stable income for at least the next fifteen years.”

Built in 2006, Cape Girardeau Long-Term Acute Care Hospital is leased by Landmark Holdings of Missouri, LLC, which signed a long-term lease through 2025.

Creative Health Capital, LLC represented the seller, White Oaks Real Estate Investments, LLC, an unaffiliated third party, in the transaction. Grubb & Ellis Healthcare REIT II financed the acquisition using cash proceeds received from its offering and $6,500,000 in borrowings under its line of credit with Bank of America, N.A.

Damon Elder, Senior Director, Communications, Grubb & Ellis Equity Advisors, LLC
714.975.2659 office, 714.356.1460 cell

Cambridge Reports Closing on $8.6M HUD Lean Loan to Refinance Apple valley Christian Care Center in California

CHICAGO, IL--Cambridge Realty Capital Companies reports closing an $8.6 million FHA-insured HUD Lean mortgage loan for Apple Valley Christian Care Center (top left photo) , a 99-bed skilled-care nursing facility in Apple Valley, Calif.

Cambridge Chairman Jeffrey A. Davis (middle right photo)  said the fully-amortized, 28-year term loan was arranged for the owner, a California not-for-profit corporation, using HUD‘s Section 232 pursuant to Section 223(f). The interest rate was not disclosed.

Underwriting the loan was Cambridge Realty Capital Ltd. of Illinois, the Cambridge business that underwrites HUD loans.

The transaction was coordinated by National Origination Manager Hymie Barber and was processed in the “Green Lane,“ a special queue created by HUD to more swiftly process low-risk loans. Interest rate for the loan was not disclosed.

Cambridge is the creator of The Signature Experience™, a four-step process designed to transform the traditional lender/borrower relationship and identify “ideal” capital solutions for worthy projects.

The company has a national origination office in Los Angeles, and numerous correspondent and brokerage relationships nationwide.

Contact: Evan Washington, Phone: (312) 521-7604, Fax: (312) 357-1611, E-Mail:

Fairwood Capital Acquires Embassy Suites St. Louis-Airport

ST. LOUIS, MO,  Aug. 18, 2010—Officials of Fairwood Capital, LLC, a real estate investment firm focused on hospitality assets, today announced that the company acquired the 159-suite Embassy Suites St. Louis–Airport  (top left photo) in Missouri from a private investment group for an undisclosed amount. Upon closing, the property will undergo a complete renovation of its guest suites and public areas.

“The Embassy Suites St. Louis-Airport fits our strategy of acquiring premium-branded hotels in proven markets,” said Ed Ansbro, Fairwood’s executive vice president.

“Cash-flowing properties are our primary acquisition targets, but we also seek hotels with turn-around potential that have an appropriate risk/reward profile. This is our first repositioning acquisition in this fund, and we continue to have an aggressive appetite and significant funding available to acquire either individual assets or portfolios.”

The hotel will begin a complete renovation this fall focused on the guests, corridors, restaurant and atrium.

The renovation will be completed in phases to minimize guest disruptions. Upon completion of the renovation and repositioning, the hotel will be the newest and only full-service, all-purpose hotel in the market.

Situated at 11237 Lone Eagle Drive, in Bridgeton, Mo., the 159-room Embassy Suites St. Louis-Airport is located off Interstate 70, convenient to Lambert International Airport (middle right photo), and is the closest hotel to Boeing International, the area’s largest employer.

The hotel features a business center, 4,000 square feet of flexible meeting space, indoor swimming pool, fitness center and restaurant.

When completed, the two-room suites will offer Embassy Essentials® Bedding Collection, flat-screen, high definition televisions, coffee maker and high-speed wireless Internet access.

Maximum Hospitality, a Memphis, Tenn.-based management company, will assume day-to-day operations. Maximum also manages Embassy Suites-Nashville/Vanderbilt.

Ed Ansbro, Tel. 901-842-5307
Jerry Daly (media), (703) 435-6293
Todd Solmson, Tel. 212-277-5608

Chatham Lodging Trust Signs Agreement to Acquire Upscale Extended-Stay Hotel in North San Diego, CA

PALM BEACH, FL, Aug. 18, 2010—Chatham Lodging Trust (NYSE: CLDT), a hotel real estate investment trust (REIT) focused on upscale extended-stay hotels and premium-branded select-service hotels, today announced that it has signed a contract to acquire an upscale extended-stay hotel in north San Diego, California in an all-cash transaction for $32 million.

The property marks the 13th hotel either acquired or under contract to purchase by Chatham in the past four months since its April 21, 2010 initial public offering.

“This is our first acquisition on the West Coast, and Southern California is one of our key target markets,” said Jeffrey H. Fisher, (top right photo) Chatham’s chief executive officer. “We expect to fund the acquisition with our anticipated $85 million senior secured credit facility.

“The property fits our model of a great location, in a market with multiple demand generators and superb visibility and accessibility,” he added.

“We believe that the San Diego market also has among the highest barriers to new competition in the country.

“This transaction, like many of our others, is one that we sourced based on our long-standing relationships within the market,” he said. “It was not actively marketed, and we were able to acquire the hotel at what we believe is an attractive price.”

Completion of the hotel acquisition is subject to satisfactory completion of due diligence and other customary closing conditions. Upon consummation of the transaction, the hotel will be managed by Island Hospitality Management, which is 90 percent-owned by Fisher.


Jerry Daly, Carol McCune, Daly Gray Public Relations, (Media),
(703) 435-6293
Peter Willis. Chief Investment Officer, (Acquisitions),
(561) 227-1387

Arbor Closes $23,767,250 Loan in 26 Days with Eastern Union as Broker for Clinton Towers in Bronx, NY

Uniondale, NY and New York, NY (Aug. 17, 2010) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $23,767,250 loan for the 455-unit complex known as Clinton Towers (above centered photo)  in Bronx, NY.

Eastern Union Commercial, a leading New York-based commercial real estate mortgage brokerage firm, arranged the acquisition financing for the borrower.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 4.87 percent.

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

“The borrower on this transaction went into contract with less than 30 days before his 1031 exchange expired, at which point we were presented with this loan opportunity,” York said.

“We took swift action and had the loan approved and rate locked within 21 days and closed within 26 days.

"This transaction highlights Arbor's unique ability to navigate the challenges inherent in today's financing market and provide aggressive terms all within a very short period of time.

"We were pleased to have had the opportunity to work with Eastern Union on another quality transaction and look forward to continuously growing our financial partnership.”

Eastern Union Senior Brokers Barry Lefkowitz and Nate Hyman, along with the firm’s President, Ira Zlotowitz, negotiated the transaction for the acquiring borrower, a process that involved expediting the disposition of the property with the assistance of the seller, who is also an Eastern Union client.

Meanwhile, Arbor and Eastern Union’s close, long-term relationship played a pivotal role in the overall deal’s ultimate success, according to York and Lefkowitz.

“We only hear of how difficult it is in today’s environment to secure financing,” Lefkowitz said. “This deal shows that with a quality product and borrower and the right relationship and expertise anything is possible.”

Arbor Closes $2,613,100 Fannie Mae DUS® Small Loan for North Lakewood Apartments in  Chicago, IL

Uniondale, NY (Aug. 17, 2010) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $2,613,100 loan under the Fannie Mae DUS® Small Loan product line for the 41-unit complex known as North Lakewood Apartments (above centered photo)  in Chicago, IL.

The 10-year loan amortizes on a 30-year schedule and carries a note rate of 5.98 percent.

The loan was originated by Stephen York, Director, in Arbor’s full-service New York, NY, lending office.

“We were pleased to deliver competitive financing terms to a repeat client and look forward to future opportunities together,” York said.

Christopher Ostrowski, Communications Manager, Arbor Commercial Mortgage, LLC, 333 Earle Ovington Blvd., Suite 900, Uniondale, NY 11553, 516-506-4255,

Sale of 17000 Katy Freeway in Houston’s Energy Corridor closed by HFF

HOUSTON, TX – The Houston office of HFF (Holliday Fenoglio Fowler, L.P.)  has closed the sale of 17000 Katy Freeway, a three-story, 174,521-square-foot office building in Houston’s Energy Corridor.

The HFF investment sales team was led by senior managing directors Rusty Tamlyn (top right photo)  and Dan Miller (top left photo)  and real estate analyst Trent Agnew, who represented the seller, CORE Real Estate and institutional investors advised by Prudential Real Estate Investors. Black Forest Ventures LLC purchased the property for an undisclosed price.

Completed in 2007, 17000 Katy Freeway is fully leased to Mustang Engineering. The property is situated on nearly 10 acres within the Park Ten Office Park on the north side of Interstate 10 in Houston’s Energy Corridor.

“In order to minimize rollover exposure, the tenant has separate leases for each floor, each with different expiration dates, which gives Black Forest Ventures ample time to re-tenant the building in case Mustang Engineering decides to downsize or vacate the property,” said Tamlyn.

“We are pleased with the services the HFF investment sales team has provided us during the purchase of our new investment. We look forward to serving the needs of our current tenant, Mustang Engineering, and maintaining a long-term relationship with them,” said Mr. Sean Quinn, senior asset manager for Black Forest Ventures.

Black Forest Ventures (BFV) is a privately-owned asset management and investment company, with over $250 million in real estate investments under its management. BFV has commercial properties primarily in The Woodlands, Texas; Boston, Massachusetts; and select European locations.

 For more information on BFV, please visit

CORE Real Estate, LLC is a real estate investment and development company formed in 1997.

Since its formation, CORE has embarked on multiple office and industrial projects in the Houston area totaling 3,300,000 square feet and representing more than $250,000,000 in completion value.


Rusty Tamlyn, CCIM, SIOR, HFF Senior Managing Director, (713) 852-3500
Dan Miller, CCIM, SIOR, HFF Senior Managing Director, (713) 852-3500
Kristen Murphy, HFF Associate Director, Marketing, (713) 852-3500

 HFF closes sale of Class A multi-housing property in northern New Jersey

FLORHAM PARK, NJ – The New Jersey and New York offices of HFF (Holliday Fenoglio Fowler, L.P.) have closed the sale of The Highlands at Westwood, (lower right photo)  a 214-unit, Class A multi-housing community in Westwood, New Jersey.

HFF senior managing directors Jose Cruz (middle left photo)  and Andrew Scandalios (lower right photo)  and directors Kevin O’Hearn and Jeff Julien led the investment sales team on behalf of the seller, Prudential Real Estate Investors. Cornerstone Real Estate Advisers purchased the property; terms were not publicly disclosed.

The Highlands at Westwood is located at 7101 Cenrose Circle close to the Westwood New Jersey transit rail station, the Garden State Parkway, Palisades Parkway and Interstate 80, which all provide access to Manhattan, approximately 15 miles southeast.

The 100% leased property has seven buildings with one- and two-bedroom units averaging 971 square feet each. Community amenities include a swimming pool, fitness center, business center, clubroom with billiards table and garage parking.

Prudential Real Estate Investors is the real estate investment management business of Prudential Financial, Inc. PREI’s business is the execution of real estate investment strategies, in markets throughout the world, for a global client base.

Cornerstone Real Estate Advisers LLC, with offices in the US, UK, Europe and Asia, is one of the world's largest real estate investment advisers.

 It provides core and value-added investment and advisory services, including a comprehensive suite of real estate debt, equity and securities expertise and services, to institutional and other qualified investors around the globe. Cornerstone is a member of the MassMutual Financial Group.


Jose R. Cruz, HFF Senior Managing Director, (973) 549-2000,
Andrew G. Scandalios, HFF Senior Managing Director, (212) 245-2425,
Kristen Murphy, HFF Associate Director, Marketing, (713) 852-3500,

Jeffrey Oram of Marcus & Millichap Selected to Serve on New Jersey State Investment Council

ELMWOOD PARK, N.J., Aug. 16, 2010 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, announces that Jeffrey Oram (top right photo) has been confirmed by the New Jersey Senate to serve a five-year term on the New Jersey State Investment Council.

Oram was nominated for the position by New Jersey Governor Chris Christie, (middle left photo) according to Alan L. Pontius (middle right photo), managing director of commercial leased investments for Marcus & Millichap.

The 13-member Investment Council oversees investment of the state’s more than $70 billion co-mingled pension fund, which includes equities, fixed income, private equity and real estate assets.

Oram is a director of the National Office and Industrial Properties Group at Marcus & Millichap. With more than 15 years of experience in the commercial real estate investment industry, Oram works on all classes of investment real estate.

“We are proud that Jeff has taken the initiative to be involved in such an important committee that not only serves the public, but assists in shaping the economic future of New Jersey,” explains Pontius.

 “That one of our investment specialists is qualified to be selected for such a prestigious role speaks volumes to Jeff’s expertise as a commercial real estate intermediary, and to the strength of Marcus & Millichap’s brokerage platform.”

While the investment council sets the allocation to various asset classes, the council does not approve commitment recommendations from the staff, known as the Division of Investment.

Ari Firoozabadi Named Vice President Investments in Washington, DC

 WASHINGTON, D.C., Aug. 17, 2010 – The board of directors of Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has named Ari Firoozabadi (middle left photo)  to the position of vice president investments.

The achievement of vice president investment status is one of the highest levels of recognition the firm awards its sales agents. It represents excellence in client relationships, investment real estate expertise and sales volume, according to David Feldman, (lower right photo)  regional manager of the firm’s Washington, D.C. office.

Most recently, Firoozabadi held the position of associate vice president investments, a designation he received in 2008.

Firoozabadi began his career with Marcus & Millichap in 2004, specializing in multifamily investment sales. He received the firm’s Pace Setter recognition in 2004, and has been the top agent in the Washington D.C. office since 2007.

In 2009, Firoozabadi was one of Marcus & Millichap’s top 10 multifamily agents and among the top 25 agents in the firm.

Dean Zang Promoted to Vice President Investments in Philadelphia

PHILADELPHIA, Aug. 18, 2010 – The board of directors of Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has named Dean Zang (middle left photo)  to the position of vice president investments.

The achievement of vice president investment status is one of the highest levels of recognition the firm awards its sales agents. It represents excellence in client relationships, investment real estate expertise and sales volume, according to Spencer Yablon, regional manager of the firm’s Philadelphia office.

Most recently, Zang was an associate vice president investments for the firm.

Zang began his career as a sales intern with Marcus & Millichap in 2003. He specializes in retail investment sales.
Marcus & Millichap Sells $38.3M Mobile Home Community in Poway, CA

POWAY, Calif., Aug. 16, 2010– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has brokered the sale of Poway Royal Estates (lower left photo) , a 399-space, 51-acre mobile home park in Poway.

The sales price of $38.3 million represents $95,990 per space.

Douglas Danny, (lower right photo) a vice president investments and senior director of Marcus & Millichap’s National Manufactured Home Communities Group in San Diego, represented the seller, the City of Poway.

“Poway Royal Estates is one of the premier manufactured home communities in Southern California,” says Danny. “We received 11 offers for the property in 28 days. Throughout the transaction, the City of Poway provided excellent leadership and support.”

The property was constructed in 1972 at 13300 Alpine Drive. The park is surrounded by single-family residential developments, prime commercial office space, retail centers and open space. The community has pedestrian access to all city amenities.

Poway Royal Estates consists of almost all doublewide homes on all doublewide sites. There are 396 revenue-generating sites, one vacant park-owned home and two park-owned employee homes.

The sites are built on 45.18 net acres with a density of 8.26 sites per gross acre and the sites measure from 40 feet to 42 feet in width and from 70 feet to 74 feet in length. The community has all city services with all utilities sub-metered or passed-through to the residents.

The park is fully amenitized with two clubhouses, pools and ample RV storage. The buyer is committed to a $1,000,000 renovation of the common-area amenities, landscaping and utility system over the next two years.

The buyer obtained a new first loan for 50 percent of the purchase price and the city provided 26 percent of the financing in second position.

The down payment was 24 percent of the selling price. The property closed at a 6.59 cap rate with $5,097 per site in expenses, 44.6 percent of SGI, based upon the current rent roll, with a 1 percent vacancy allowance.

“The Poway City staff, elected officials, the Hometown America team and the legal representatives worked together to bring a complex and daunting process to a successful close,” says Danny. “The City of Poway proactively addressed the residents’ needs and structured the sale to achieve a mutually beneficial result for all parities.”

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