Tuesday, October 5, 2010

HFF closes sale of 14-property national self storage portfolio

 HOUSTON, TX – The Houston office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has closed the sale of a 14-property self storage portfolio located in California, Florida, Hawaii, Louisiana, New Jersey, New York, Pennsylvania and Texas. 

The portfolio totals approximately 8,923 units and 830,000 square feet of rentable space. 

HFF senior managing director Aaron Swerdlin (top right photo) and managing director Doug McCarron (middle left photo) exclusively represented the seller. 

Public Storage purchased four properties in California and one in Hawaii totaling 3,528 units.   Metro Self Storage purchased the remaining nine properties in the portfolio totaling 5,395 units. 

Public Storage built their first facility in 1972 and since then has developed and/or acquired more than 2,000 locations throughout the United States.  Public Storage is the largest operator of self storage facilities in the world. http://www.publicstorage.com/
Over the past 35 years, Metro Self Storage has developed, acquired, managed and sold more than 200 facilities totaling 10,000,000 square feet of self storage property.  http://www.metrostorage.com/


Aaron A. Swerdlin, HFF Senior Managing Director, (713) 852-3500, aswerdlin@hfflp.com

Doug McCarron, HFF Managing Director, CA. Lic. #01473385  (310) 407-2100, dmcarron@hfflp.com

Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500, krmurphy@hfflp.com

Grubb & Ellis Facilitates the Sale of 9103 Riverside Parkway in Douglasville, GA

 ATLANTA, GA – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that it represented Wells Real Estate Funds in the sale of 9103 Riverside Parkway (top left photo) in Douglasville, a 593,404-square-foot industrial building, to Medline Industries Inc. 

The sale price was not disclosed. 

 Dave Watson and Darren Ross, both senior vice presidents in the Industrial Group, facilitated the sale. 

 “This transaction illustrates the importance many users place on being close to the airport,” said Watson.  “It will certainly serve to increase the competition in the South Side submarket and offset some of the vacancies to go on the market within the last 18 months.”

 Built in 2003 and 2004, 9103 Riverside Parkway features wide column spacing, high power, 110 loading doors, ample truck and car parking and a fenced truck court with guard shack.

 Medline Industries, a supplier of medical equipment, reportedly chose Atlanta over a number of markets due to the transportation systems, proximity to a highly regarded international airport and highly educated workforce.

Contact:  Erin Mays, Phone: 312.698.6735                         

Arbor Closes Three Oregon Fannie Mae DUS® Loans Totaling $9,616,500

 Uniondale, NY (Oct. 5, 2010) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of three (3) loans under the Fannie Mae DUS® Loan and Fannie Mae DUS® Small Loan product lines. These loans include:

 Mountain Glen Apartments, Bend, OR  (top left photo) – The 147-unit complex received $5,120,000 funded under the Fannie Mae DUS® Loan product line. The 10-year loan amortizes on a 30-year schedule.

 Cloverfield Place Apartments, Portland, OR (middle right photo) – The 72-unit complex received $3,250,000 funded under the Fannie Mae DUS® Loan product line. The 10-year loan amortizes on a 30-year schedule.

Hawthorne Apartments, Portland, OR (middle left photo) – The 17-unit complex received $1,246,500 funded under the Fannie Mae DUS® Small Loan product line. The 10-year loan amortizes on a 30-year schedule.

The loans were originated by Brian Scharf (lower right photo), Director, in Arbor’s full-service Uniondale, NY, lending office.

 “With specific regard to the Mountain Glen Apartments, we were excited to have financed a strong borrower with one of the leading residential properties in a market with significant upside,” Scharf said.

 “As for the Portland properties, Cloverfield Place Apartments has benefitted from a substantial rehab and we felt strongly that the borrower added significant value by repositioning the asset.

 And what attracted us the most to Hawthorne Apartments was the desirable location for young professionals within close proximity to downtown Portland.”

Contact: Christopher Ostrowski, costrowski@arbor.com

Self Storage Properties in Georgia and Shopping Center in Texas Receive $11.65 Million Loan

SARASOTA, FL, Oct. 5, 2010— Thomas D. Wood and Company, a Strategic Alliance Mortgage LLC member, secured financing in the amount of $11,650,000 for Washington Road Self Storage #1 and #3, Evans Self Storage #1 and #2, and the New Caney Shopping Center.

Brad Cox (top right photo), CCIM, CPM, Company Vice President, secured financing for Washington Road Self Storage #1 through Thomas D. Wood and Company’s correspondent relationship with The Standard Life Insurance Company in the amount of $3,000,000. 

The full-recourse, fixed-rate loan has a term of seven years, based on a 25-year amortization and an interest rate of 6.50%.  The loan-to-value is 70%.  The 77,148 square-foot self-storage facility was built between the years 1994-1997, and is located at 122 Davis Road, Martinez, Georgia.

 Cox secured financing for Washington Road Self Storage #3 through The Standard Life Insurance Company in the amount of $2,700,000.

 The full-recourse, fixed-rate loan has a term of seven years, based on a 25-year amortization and an interest rate of 6.50%.  The loan-to-value is 60%.  The 104,346 square-foot self-storage facility was built in 2000, and is located at 3700 Washington Road, Martinez, Georgia.

Cox also secured financing for Evans Road Self Storage #1 and #2 through The Standard Life Insurance Company in the amount of $3,600,000. 

 The full-recourse, fixed-rate loan has a term of seven years, based on a 25-year amortization and an interest rate of 6.50%.  The loan-to-value is 56%.

 The 120,479 square-foot self-storage facility was built between the years 1996 and 2008, and is located at 4731 Washington Road and 852 Blanchard Road, Evans, Georgia.

Lastly, Cox arranged financing for the New Caney Shopping Center through The Standard Life Insurance Company in the amount of $2,350,000.

 The full-recourse, fixed-rate loan has a term of five years, based on a 25-yer amortization and an interest rate of 6.0%.  The loan-to-value is 63%.

  The 55,944 square-foot retail center was built in 1982, and is home to major tenant Brookshire Brothers.  New Caney Shopping Center is located at 20185 US Highway 59, New Caney, Texas.

Brad Cox, CCIM, CPM  (941) 552-9731,  bcox@tdwood.com
Jessica Kinnee, (407) 937-0470, jkinnee@tdwood.com

Marcus & Millichap Lists Distressed Multifamily Property in Peoria, AZ

 PEORIA, AZ., Oct. 4, 2010 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has retained the exclusive listing for Suntree Apartments (top left photo), a 216-unit 175,152-square foot distressed asset in Peoria, Ariz., a major suburb of Phoenix.

The property is being offered unpriced with attractive in-place financing.

Multifamily investment specialists Cliff David (top right photo), Steve Gebing and Rich Butler, based in Marcus & Millichap’s Phoenix office, are representing the seller, a court-appointed receiver.

 “Suntree offers a lineup of interior amenities and community advantages that are unparalleled for an asset of this vintage,” says Gebing.

 “Well-designed interior floor plans that amplify the available living space, combined with revenue-enhancement capabilities through existing washer/dryer connectivity, make for a highly desirable apartment home community.”

 Located at 8650 West Peoria Avenue, east of Loop 101, the Aqua Fria Freeway, Suntree’s location provides excellent freeway access with connectivity to Interstate 10, Interstate 17, State Highway 60, State Highway 74, the future Loop 303 and access to nearly any Valley destination, including downtown Phoenix and Sky Harbor International Airport (middle left photo).

 Suntree was developed by Tricom III in 1984 with wood-frame and stucco construction.

The unit mix features 72 one-bedroom/one-bath apartments at 696 square feet, 72 one-bedroom/one-bath apartments at 717 square feet and 72 two-bedroom/two-bath apartments at 977 square feet. Interior amenities include individual washer/dryer connections in each unit, garden kitchen windows, oversized walk-in closets, custom cabinets with pantries, individual exterior storage rooms, private patios/balcony decks, frost-free refrigerators, dishwashers and garbage disposals.

Community amenities include heated swimming pools and spa, poolside ramada with built-in barbecues, a lighted tennis court, horseshoe pit, shuffleboard, covered parking and a contemporary clubhouse.

 Peoria is Arizona’s fourth-largest city in terms of incorporated area, covering 178 square miles and is home to approximately 158,000 residents.

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

Lots of Investment Cash Sitting on Sidelines, Says RECI

 CHICAGO, IL, Oct. 4, 2010 -- The Real Estate Capital Scoreboard, issued by the Real Estate Capital Institute, notes:

 Benchmark indices declined about 30 basis points in September.  However, mortgage rates taking a steady course as funding sources demand yield despite the recent movement in Treasuries.

Alternative debt product options (e.g., bonds) offer more competition keeping pressure on yields and pricing at current levels.

 In summary, overall mortgage rates comfortably trade within the mid-4% range for longer-term mortgage featuring full leverage.

 Money for real estate investing is bountiful and lot's of cash sits on the sidelines in search of the "right" deal, translating to the following trends:

  • As market fundamentals continue slowly improving, banks and other financials institutions with excess real estate exposure are not selling assets very quickly, particularly properties with cash flow. 

  • The hottest income-property markets with the fastest recovery prospects include the coastal core markets and major 24-hour urban markets with Washington DC, San Francisco, New York and Southern California at the leading edge.

  • Often times in the final bidding process for new deals, a handful of final bidders appear; but the disparity in pricing is wide among such finalist, indicating the investors still have vary different expectations regarding market fundamentals.

  • While prime-property pricing is being bid up for new acquisitions, lenders restrict refinancing to loan-to-cost limits as "cashout" of equity is a key concern.   Loan-to-cost restrictions hover at 75% or less, in most instances.

  • The very best properties are trading close to replacement cost. More funds are considering new construction options for both debt and equity, especially for multifamily deals.

  • Lenders are still very conservatively underwriting most loans with lower leverage (e.g., 70% or less for commercial properties) providing the  most common safety cushion for prudent sizing.

  •   However since rates are so low and debt service coverage are high, many lenders are willing to "loosen" underwriting standards to include longer amortization schedules, more flexible prepayment provisions and other such tweaks.
 Jeanne Peck (top right photo), Executive Director of the Real Estate Capital Institute, notes that "The pent-up demand for higher quality real estate leaves a huge vacuum in the non-core property and market sectors." 

She adds, "Eventually, the older properties in tertiary markets may witness pricing appreciation and funding demand, as many investors are priced out of the core deals."

The Real Estate Capital Institute(r) is a volunteer-based research
organization that tracks realty rates data for debt and equity yields.  The
Institute posts daily and historical benchmark rates including treasuries,
bank prime and LIBOR.

 Furthermore, call the Real Estate Capital RateLine at

7RE-CAPITAL (773-227-4825) for hourly rate updates.

The   Real Estate Capital Institute(r)
3517 West Arthington Street
Chicago, Illinois USA 60624

Contact: Jeanne Peck, Executive Director
Toll Free 800-994-RECI (7324)
:director@reci.com> director@reci.com /  <http://www.reci.com/>