Monday, January 31, 2011

Colliers International Closes 3 Deals in California; 1 in Tennessee

 Thibiant International Leases  217,929 Square Feet  of Industrial Space Totaling $8.48 million in Chatsworth, CA

LOS ANGELES, CA, Jan. 31, 2011 – Colliers International, the second largest global real estate services organization, has negotiated four industrial leases totaling 217,929 square feet.

 The total combined value of the leases is approximately $8.5 million. Colliers represented the tenant, Thibiant International, a Chatsworth-based cosmetics company in the transactions. The leases represent renewals for three of Thibiant’s current facilities and an expansion into a 62,400 square-foot warehouse.

John DeGrinis (top right photo), SIOR, executive vice president, Patrick DuRoss (top left photo), associate vice president, and Jeff Abraham, associate, all of TEAM DeGRINIS, based in Colliers International’s Encino office, represented the tenant.

Thibiant’s existing landlord, ParRam, LLC, an Encino-based private investment company, represented themselves.  Gordon Mace and Joshua Linn of Beitler Commercial represented the landlord, MSF Estrella Property Co., a Beverly Hills-based private investment company for the fourth facility.

Thibiant has a fairly complex operation that incorporates R&D, manufacturing and distribution of cosmetic products.

 “We’ve worked with Thibiant for many years and have learned a lot about their flow of operations,” said DeGrinis.  “Over 18 months ago, we really started to analyze Thibiant’s processes so we could see if there were facility alternatives that would enhance the flow and efficiency of their operation and ultimately reduce overall operating costs.”

“Over the past year, we’ve explored multiple options including a consolidation plan to relocate into a single building.  We searched nearby, in other submarkets, and found a couple of off-market facility alternatives,” continued DuRoss. 

“After exploring all of these options, Thibiant determined that the best alternative was to move from a 300,000 square foot footprint in five buildings to a 217,929 square foot footprint in four buildings.  Thibiant will remain in three of its existing facilities, and replace two with another nearby facility that was more efficient and cost effective.”

 Thibiant’s operating costs were reduced significantly as a result of finding a more efficient footprint and eliminating wasted space.

 TEAM DeGRINIS is a specialized group within Colliers International that provides consulting on industrial and R&D real estate requirements in the Ventura County and San Fernando Valley.

With a combined 40 years of experience in the commercial real estate industry, TEAM DeGRINIS is a leader in sharing strategic local market insight and has completed more than $425 million in transactions over the past five years.

 For more information, visit
 Colliers International Completes the Sale of 29,681-Squre-Foot Office Building for $2.575 Million in Placentia, CA

PLACENTIA, CA, Jan. 31, 2011 – Colliers International, the second largest global real estate services organization, has completed the sale of a 29,681-square-foot three-story office building located at 774 Placentia Ave., Placentia, Calif. to Interface Rehab, Inc. The transaction is valued at $2.575 million.

 The seller, Kenyon Placentia Inc. a Playa Del Rey-based investment firm was represented by Clyde Stauff  (middle right photo), SIOR, executive vice president in Colliers International’s Irvine office.

 “This property will be used as an office for the new tenant who provides comprehensive rehabilitation and consultation services to patients throughout Southern California,” said Stauff.

  “Interface Rehab will continue to grow the business in the larger, new building, which will undergo an interior remodel.  The building was previously occupied by McMullen Argus Publishing, Inc., a publisher for popular magazines, such as Hot Rod, for more than ten years.”

 Colliers International Completes $2.383 Million Sale of an Industrial Building in Westlake Village, Calif.

 WESTLAKE VILLAGE, CA, Jan. 31, 2011. – Colliers International, the second largest global real estate services organization, has completed the sale of an industrial building located at 3580 Willow Lane, Westlake Village, Calif. to Johnston Plumbing, a plumbing equipment company based in Ventura, Calif. The transaction is valued at $2.383 million.

Built in 1994, the property offers 16,144 square feet of space and is close to the 101 freeway.

 The seller, a Santa Barbara-based family trust, was represented by Chris Itule (middle left photo), senior associate, based in Colliers International’s Encino, Calif. office and Jeff Albee (lower right photo), Senior Vice President, also based in Colliers International’s Encino Calif. office.

The buyers, Garry and Linda Fishman of Johnston Plumbing were represented by Tony Principe, president of Westoaks Commercial Group. 

 “We were able to acquire strong price per foot for this property in this market,” said Itule. “This property is ideal for the buyers’ business and offers abundant space for them to build out.”

Colliers International Completes $1.17 Million Sale of KFC/ Taco Bell Building in Lake City, Tenn.

LAKE CITY, TN, Jan. 31, 2011. – Colliers International, the second largest global real estate services organization, has completed the sale of a 4,608-square-foot retail building located at 117 Colonia Lane in Lake City, Tenn. to Oak Park, Calif.-based Calvert Family Trust, a private investor. The transaction is valued at $1,175,000.

Built in 1980, the freestanding, retail building was renovated in 2006 and is leased to KFC/Taco Bell. Situated on 0.89 acres of land, the building is located­­­ just minutes from downtown Lake City and a half hour from Knoxville, Tenn.

 “Our client needed to exchange out of an industrial asset into a more stabilized property that provided a secure return on investment. After selling their previous asset to an industrial owner/user, we located this this property for our client.

“ This stabilized asset offered the security and ease of management they were seeking,” said Jeff Albee, senior vice president in Colliers International’s Encino office, who represented the buyer in the transaction, along with Jeff Gould (lower left photo), senior associate in Colliers International’s Encino office. 

The seller, Harbor View LLC, a private investor, was represented by Jay Gomez, James Kaye and Lindsey Lantis of Colliers VGK Investments.

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Essex Realty Group Brokers Sale of 74-Unit Vintage Apartment Building in Chicago

CHICAGO, IL, Jan. 31, 2011--Essex Realty Group, Inc. is pleased to announce the sale of a vintage 74-unit apartment building in the Rogers Park neighborhood of Chicago just one block from Lake Michigan. 

The property, 7665 N. Sheridan Road (top left photo) Chicago consists of 13 Studio, 48 one-bedroom, and 13 two-bedroom units.

 Doug Imber of was the broker for the transaction.  The sale price was approximately $4,400,000.

 Essex Realty Group, Inc. specializes in the sale of investment real estate throughout the Chicago metropolitan area.

  Contact: Douglas S. Imber, Essex Realty Group, Inc., 773.305.4902,

Arbor Appoints Erica Mileo as Director, Conferences & Tradeshows

 Uniondale, NY (Jan. 31, 2011) – Arbor Commercial Mortgage, LLC, a leader in the commercial real estate finance industry, announced today the appointment of Erica Mileo (top right photo) to Director, Conferences and Tradeshows, in Arbor’s Uniondale, NY, headquarters.

She reports to Bonnie Habyan (lower left photo), Executive Vice President, Marketing.

 Ms. Mileo is now responsible for driving the Arbor family of companies’ brand awareness and qualified new business leads through conferences, tradeshows and other events.

 She will also oversee the creation of engagement programs and processes that focus on new business opportunities at conferences and tradeshows and the utilization of such events in driving high-level networking opportunities and new partnership ventures with various real estate industry companies and associations.

Prior to joining Arbor, Ms. Mileo held the position of Marketing Manager at McGraw-Hill Construction, a division of The McGraw-Hill Companies.

Contact:  Christopher Ostrowski,

Marcus & Millichap Arranges Sale of 13 CVS Drugstores in 11 States to Cole Real Estate Investments

 PHILADELPHIA ,PA Jan. 31, 2011 - Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, announced that it has arranged the sale of a portfolio of 13 single-tenant net-leased CVS drugstores nationwide to Cole Real Estate Investments (Cole) of Phoenix, one of the nation’s most active buyers of high-quality, income-producing commercial real estate assets, for approximately $70.1 million.

 The properties are located in 11 states including California, Florida, Georgia, Kansas, Minnesota, Mississippi, New Jersey, New York, Oklahoma, South Carolina and Texas.

(Top left photo of  CVS Pharmacy at 14240 Tamiami Trail North, Naples, Fla.).

All of the properties in the 174,000-square-foot portfolio are new stores, opened in 2009 and 2010, and are subject to 24-year triple-net leases.

Dean Zang, (top right photo)  vice president investments; Mark Taylor, (middle left photo) vice president investments; and Chris Munley, senior associate, are the Marcus & Millichap brokers, based in the firm’s Philadelphia office, who represented the seller in the transaction. Chad Adams, director of acquisitions, represented Cole.
“We are pleased to acquire a prime portfolio of CVS properties, which exactly fits the parameters of our conservative acquisition strategy, focused on income-producing ‘necessity retail’ properties, long-term leased to creditworthy tenants,  and providing a stable flow of income for our investors,” said Kim Kundrak (lower right photo), senior vice president and chief acquisitions officer for sing-tenant retail at Cole.

Zang explained, “This portfolio sale demonstrates that investors are increasing their transactions nationwide. As cap rates continue to compress for Class A assets, we will see acquisition volume increase in the B and C sector moving into 2011.”

“Single-tenant properties net-leased to national credit tenants such as CVS are in high demand among investors,” added Taylor.

 “This trend is expected to continue in 2011 as well-capitalized private investors and REITs with strong balance sheets continue to acquire assets. These particular CVS assets each have 24 years of lease term remaining, further strengthening their intrinsic, long-term value.”

Additional Marcus & Millichap investment professionals providing representation on these transactions were: J.D. Parker, broker of record (BOR) for New York State; Tim Speck, BOR for Texas; Solomon Poretsky, BOR for Minnesota; Adam Christofferson, BOR for Kansas; Bill Buford, BOR for South Carolina; John Leonard, BOR for Georgia; Greg Matus, BOR for Florida; and David Bohanon, BOR for Oklahoma.

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

Chatham Lodging Signs Agreement to Acquire Upscale Extended-Stay Hotel in Pittsburgh

PALM BEACH, FL, Jan. 31, 2011—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 Pittsburgh, Pa. for $24.9 million. 

The acquisition will be funded in part through the assumption of an existing $7.3 million mortgage loan.  The hotel will be the 14th property acquired by Chatham since its initial public offering.

“Our disciplined approach to acquisitions remains focused on upscale extended-stay hotels and premium-branded select-service properties, either as multi-property portfolios or individual hotels, located in major markets with high barriers to entry near strong demand generators,” said Jeffrey H. Fisher (top right photo), Chatham's chief executive officer. 

“Pittsburgh is home to six Fortune 500 companies, the University of Pittsburgh, Carnegie Mellon University, the University of Pittsburgh Medical Center and Hillman Cancer Center, as well as three professional sports venues.”

Following completion of the acquisition, the hotel will be managed by Island Hospitality Management, a hotel management company 90 percent-owned by Fisher.  Completion of the acquisition is subject to lender approval and satisfactory completion of due diligence and other customary closing conditions.

Business Update

Chatham anticipates that it will report pro forma revenue per available room (RevPAR) for the fourth quarter 2010 of $83.27, up 3.5 percent compared to the same period of the prior year. 

As highlighted in our December 16th business update, the fourth quarter RevPAR reflects the adverse impact of rooms out of service at three hotels due to accelerated renovations, which are expected to continue through the first quarter of 2011. 

Pro forma RevPAR is calculated as if Chatham had owned all 13 of its hotels for the entire fourth quarter of both 2009 and 2010.  Pro forma RevPAR for the three months ended December 31, 2010 is based on Chatham’s internal reporting and has not yet been audited and, therefore, is subject to revision based on the audit.

Additional information about Chatham may be found at
Jerry Daly, Carol McCune, Daly Gray Public Relations, (Media) (703) 435-6293,                                                                                                                                                     Dennis Craven, Chief Financial Officer, (Company), (561) 227-1386,