Tuesday, January 11, 2011

HFF arranges $100 million permanent financing for DARPA’s future headquarters in Arlington, VA

WASHINGTON, D.C. – The Washington, D.C. office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it has arranged a $100 million permanent loan for the 355,000-square-foot future headquarters of the Defense Advanced Research Projects Agency (DARPA) in Arlington, Virginia.

 This project is the first phase of the 1.2 million-square-foot Founders Square (top left photo) mixed-use development.

HFF senior managing directors Bill Asbill (middle right photo)  and Bob Donhauser (middle left photo)  and director Dan McIntyre worked exclusively on behalf of the borrower, Ashton Park Associates I, LLC, to secure an 18-month forward commitment from Prudential Mortgage Capital Company, the commercial mortgage lending business of Prudential Financial, for a 15-year, fixed-rate loan. 

In 2009, HFF arranged the $98 million construction loan for the project with Landesbank Hessen-Thuringen, also known as Heleba. 

The Shooshan Company is handling the development of the property, which was designed by RTKL.  Clark Construction Group is the general contractor. 

The 13-story, trophy quality office building is due for completion in the first quarter of 2012.

 The property will meet the Department of Defense’s Level IV security standards and is designed to be certified LEED-Gold.  Situated at 675 North Randolph Street, the property is across from the Ballston Common Mall in the heart of Washington, D.C.’s Rosslyn-Ballston Corridor (R-B Corridor).

Formed in 1986, The Shooshan Company has planned, developed, managed and/or leased approximately two million square feet in the Rosslyn-Ballston Corridor.

 Projects include One and Two Liberty Center, The Residences at Liberty Center, Liberty Tower, Arlington Square, One Virginia Square and Quincy Street Station.

William S. Asbill, HFF Senior Managing Director, (202) 533-2500,
Daniel J. McIntyre, HFF Director, (202) 533-2500, 
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500,

Beech Street Capital Provides $1 Billion in Multifamily Loans – Record Volume Financing in First Year

 BETHESDA, MD, Jan. 11, 2011 – Beech Street Capital, LLC announced that it closed over $1 billion in agency financing in its first year of business, a record for a newly formed agency lender.

 “Beech Street Capital got off to the fastest start of any agency start-up in history,” said Shekar Narasimhan (lower left photo), managing partner at Beekman Advisors. 

He continued, “Their success is primarily due to a seasoned management team and a unique origination partnership. There are significant opportunities for the company to continue to grow in the agency multifamily space.”

 Beech Street Capital was founded in December 2009, as a Fannie Mae DUS lender. In April 2010, the firm was approved as a Freddie Mac Program Plus lender.  The company has experienced unprecedented growth by adding six origination offices and three underwriting offices since last August.

 Grace Huebscher (top right photo), president and CEO of Beech Street Capital stated, “We have had a very positive response from the market and our customers; largely resulting from the great team we have been able to attract and the commitment of our private equity partners.

“ Together we wanted to return to the fundamentals of the business and bring the entrepreneurial spirit to multifamily financing.”  

 Given the positive momentum with Beech Street Capital’s primary correspondent, Meridian Capital, and with the growing national origination team, Beech Street expects to originate $3 billion in 2011. 

Contact: Jenifer Bernardi (240-507-1946)

Marcus & Millichap Sells Two-Property Self-Storage Portfolio in Central Florida

 CRYSTAL RIVER, FL – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of a two-property self-storage portfolio totaling just over 100,000 square feet, located in Central Fla, according to Bryn D. Merrey, Regional Manager of the firm’s Tampa office.

Michael A. Mele (top right photo), vice president investments and senior director of the National Self-Storage Group, in Marcus & Millichap’s Tampa office, represented both the seller, a private investor from Florida, and the California-based buyer.  This represented Mr. Mele’s 21st self-storage transaction of 2010.

Press Contact:  Bryn D. Merrey, Regional Manager, Tampa
(813) 387-4700

Marcus & Millichap Sells $2.9 Million Apartment Building in West Des Moines, Iowa

 WEST DES MOINES, Iowa, Jan. 11, 2011 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of Woodland Apartments (top left photo), a 60-unit apartment property located in West Des Moines, according to Matthew M. Fitzgerald (middle right photo), vice president and regional manager of the firm’s Des Moines office.

The asset commanded a sales price of $2.9 million.

Thomas DeWaay, an investment specialist in Marcus & Millichap’s Des Moines office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The buyer, a private investor, was secured and represented by Thomas DeWaay. 

Woodland Apartments is located at 4949 Woodland Ave. in West Des Moines. The property, which was built in 1984, was 89 percent occupied at the time of purchase and traded at an 8.25 percent cap rate.

Press Contact:
Matthew M. Fitzgerald, Vice President and Regional Manager, Des Moines Office, (515) 645-3200
Jennifer Williams
Operations Manager
Marcus & Millichap
101 South Tryon Street
Suite 2460
Charlotte, NC 28280
(704) 831-4600 main
(704) 831-4610 fax
(704) 914-5558 mobile

Foreclosure Freeze Leads To 41% Drop In South Florida Filings

MIAMI, FL--Lenders abruptly pulled back and filed less than 60,000 foreclosure actions in the tricounty South Florida region in 2010, a year after initiating nearly 100,000 notices of default in 2009, according to a new report from CondoVultures.com.

Administrative irregularities in the foreclosure process that surfaced in late September 2010 created a "foreclosure freeze" that forced lenders to file 61 percent fewer notices of default in Miami-Dade, Broward, and Palm Beach counties between October and December 2010 compared to the same three-month period in 2009, according to the report based on the Condo Vultures® Foreclosure Database™.

"The 'Robo-Signing' controversy tied to the administrative irregularities in the foreclosure process has basically forced lenders to downshift their efforts from fourth gear to first gear until the situation can be resolved," said Peter Zalewski (middle right photo), a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.

"Lenders filed 14,000 fewer foreclosure actions in the fourth quarter of 2010 compared to a year earlier. As a result, 2010 ranks behind 2009 and 2008 in terms of the total foreclosure filing activity. The unknown is whether foreclosure filings will spike when - and if - the foreclosure freeze is eventually resolved."  

Foreclosures are a topic scheduled to be discussed at the upcoming Condo Vultures® 3rd annual "State of the South Florida Condo Market" event on Jan. 25 at the Miami City Club at the top of the Wachovia Financial Center in Downtown Miami.

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

Crossbeam Capital Makes Fifth December Acquisition: 200-Unit Apartment Community in Reston, VA

 RESTON, VA. Jan/ 10, 2010---Crossbeam Capital LLC of Bethesda, Md. has entered the Northern Virginia market by acquiring  the 200-unit Reston Glen Apartments (top left photo) in Reston, VA. 

Crossbeam purchased the10- acre garden rental community from Redstone Partners of New York for an undisclosed amount through its Workforce Housing Fund I

Reston Glen was the fifth multifamily property totaling 1200 rental apartments acquired in December, 2010 alone by Crossbeam Capital and its affiliated partner, Concierge Asset Management of Houston.

Together, Crossbeam/Concierge, through their national acquisitions program, closed on eight apartment communities in 2010 ranging from Evanston, IL to San Antonio, North Austin and North Dallas to Reston, a Washington D.C. suburb favored by high technology companies and government contractors.

“This purchase presents an excellent opportunity to complete the repositioning and redevelopment  strategy of Reston Glen that began before the economic downturn,” said Reggie Samuel  (middle right photo), director of acquisitions for Crossbeam Capital. 

He further said with the economy starting to grow in the DC metro area again, the $3 million which was invested into the substantial renovation of the apartment community in the two years prior to Crossbeam’s ownership is now starting to pay dividends. 

The property is currently 99% occupied and exhibiting strong rent growth trends.

Brad Blash  (middle left  photo), Crossbeam Capital’s chief acquisitions officer, added that Reston Glen’s proximity to major employers plus the “transit element” of the transaction “fits squarely within our Workforce Housing Fund’s mandates.” 

As the Metro’s new Silver Line from downtown Washington D.C. extends to Washington Dulles Airport, the Reston Metro stop will be located within two miles of the property and is anticipated to be completed in 2016, he said. 

 Andy Boyer and Jonathan Greenberg of CB Richard Ellis represented Redstone in marketing Reston Glen.
 “We’ve known Reggie since his EQR days and we were comfortable he and his Crossbeam team were the right buyers and could meet our client’s emphasis on surety of close,” said Boyer, executive vice president for CB Richard Ellis. 

Boyer credited Crossbeam for its quick response in working with the brokers and lender to ensure the “smooth, efficient closing.”

Samuel said the transaction gave Crossbeam entrée into one of the nation’s most resilient and strategically located markets and secure the asset at a price “substantially below” the original redeveloper’s cost. 

Maury Zanoff and Matt Williams of CBRE Capital Markets’ Washington, DC office arranged the permanent financing through Freddie Mac.

The 200-unit garden style apartment community, located at 12265 Laurel Glade Court, was built in 1974 and fully renovated in 2008.

 The new owners will invest additional capital into common area upgrades at the property including an Internet Café in the clubhouse, landscaping, signage enhancements and leasing office redesign. Large gas grills, an outdoor fireplace, and a shade pergola will be installed within a new barbeque/picnic area situated adjacent to the Reston Community Association’s biking/jogging trail that runs through the property.

Crossbeam’s strategic partner, Concierge Management Services, will manage the apartment community and renovation.

Summed up Samuel: ”Crossbeam/Concierge has the capital and the track record for smooth, efficient, timely closes and is poised to complete considerably more acquisitions in 2011 of multi-family properties that need redevelopment and disciplined financial and operational transformations.”

Jennifer Farthing – 240.223.1679 – jfarthing@crossbeamcapital.com
Chris Barnett – 415.336.5092 - cbarn@aol.com