Saturday, February 5, 2011

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

COLUMBIA, MO – Grubb & Ellis Healthcare REIT II, Inc.  announced that it has acquired Columbia Long-Term Acute Care Hospital (centered photo above), a single-story, 31,000-square-foot, Class A single-tenant medical facility in Columbia, midway between Kansas City and St. Louis.  The acquisition closed on Jan. 31. 

Located at 604 North Old Highway, Columbia Long-Term Acute Care Hospital is less than one mile from Boone Hospital Center (middle right photo), a 394-bed full service medical facility, and approximately three miles from University of Missouri Women’s and Children’s Hospital (middle left photo), a 189-bed general acute care medical center.  Both facilities serve as significant sources of referral patients to Columbia Long-Term Acute Care Hospital.  

Built in 2009, Columbia Long-Term Acute Care Hospital is leased by Landmark Holdings of Missouri, LLC, which signed a long-term lease through January 2026. 
The Columbia facility is the fourth and final piece of a $42 million, four-property portfolio of regional long-term acute care hospitals acquired by Grubb & Ellis Healthcare REIT II.  Similar facilities in Cape Girardeau and Joplin, as well as one in Athens, Ga., were acquired by the REIT in 2010.   

“Long-term acute care hospitals such as the four we’ve acquired in Missouri and Georgia are exceptional additions to Grubb & Ellis Healthcare REIT II,” said Danny Prosky (lower  right photo), president and chief operating officer of the REIT.

 “They each enjoy very limited competition, have strong relationships with major healthcare systems, and provide stable long-term income that is immediately accretive and supportive of our investor distributions.”

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 $11 million in borrowings under its line of credit with Bank of America, N.A. 

 As of Jan. 21, 2011, Grubb & Ellis Healthcare REIT II has sold approximately 16,289,692 shares of its common stock, excluding the shares issued under it distribution reinvestment plan, for approximately $162,515,000 through its initial public offering, which began at the end of the third quarter of 2009.

To date, the REIT has made 14 geographically diverse acquisitions comprised of 26 buildings valued at approximately $206 million, based on purchase price.

Contact: Damon Elder, Phone: 714.975.2659

AMB-ProLogis Marriage Marks Biggest Industrial Real Estate Deal in U.S. in 20 Years

 SAN FRANCISCO and DENVER---A cool $8.7 billion in stock. That is the price San Francisco, CA-based AMB Property Corp. (NYSE: AMB) has agreed to pay for Denver, CO-based ProLogis (NYSE: PLD).

Analysts say the deal between  the two largest U.S. owners of warehouse and distribution centers is the biggest in the industrial real estate market in at least 20 years.

The deal is expected to close in the second quarter. It was publicly announced Jan. 31.

The deal comes as ProLogis, the larger company, continues to struggle with a hefty debt load.  Analysts say the deal will give AMB, which also operates in China and Brazil, a large presence in the UK and Eastern Europe

In a prepared statement, the companies jointly state that combined, they are expected to have a pro forma equity market capitalization of about $14 billion, a total market capitalization over $24 billion, and gross assets owned and managed of about $46 billion.

The companies will own or manage a total 600 million square feet of industrial space in  22 countries. The new company will retain the ProLogis name and will trade under the ticker symbol PLD (NYSE).

The companies say the all-stock merger is intended to be a tax-free transaction.

Both companies have substantial portfolios in North America, Western Europe and Japan. ProLogis is well-established in the United Kingdom and Central and Eastern Europe, and AMB has a significant presence in China and Brazil. 

"This merger is about two great companies coming together to create a stronger platform for sustainable value creation and growth,” Hamid R. Moghadam (top right photo) , AMB CEO said in the companies’ news release

“By joining forces, this merger will create a company positioned to be the leading global provider of logistics real estate — a Blue Chip REIt.”   

ProLogis CEO Walter C. Rakowich (top left photo) added, "This combination will help create the most efficient, effective industrial real estate organization with the best, most diverse talent.

"The merger of these two leading industrial platforms will advance a number of priorities already underway at each company.

“These priorities include improving efficiency and reducing costs by better aligning our portfolios through the reduction of non-core assets and the recycling of capital into higher growth opportunities; increasing asset utilization by stabilizing the operating portfolio; leasing up the development portfolio; and monetizing the land bank."

Moghadam, AMB's CEO, and Rakowich, ProLogis' CEO, will serve as co-CEOs through December 31, 2012, at which time Rakowich will retire, and Moghadam will become sole CEO of the combined company.

 Moghadam also will be Chairman of the Board of the combined company and will be primarily responsible for shaping the company's vision, strategy and private capital franchise.

Rakowich will be principally responsible for operations, integration of the two platforms and optimizing the merger synergies.

Until December 31, 2012, Rakowich also will serve as Chairman of the Board's executive committee.

William E. Sullivan (middle right photo), current ProLogis CFO, will continue to serve as CFO and will retire from ProLogis on December 31, 2012.

During this period, Thomas S. Olinger (lower left photo), AMB's current CFO, will be responsible for day-to-day integration activities and report to the CEOs; he will become the CFO of the combined company on December 31, 2012. 

The board of directors of the combined company will consist of six board members designated by ProLogis and five board members designated by AMB.

Irving F. "Bud" Lyons, III, (lower right photo) an existing ProLogis Board member, will serve as Lead Independent Director.

Following the close of the transaction, the combined company's corporate headquarters will be located in San Francisco, and the combined company's operations headquarters will be located in Denver. 

HFF closes sale of Coral Gables Apartments in southwest Houston

 HOUSTON, TX –HFF (Holliday Fenoglio Fowler, L.P.) has closed the sale of Coral Gables Apartments (top left photo), a 318-unit multi-housing community in southwest Houston.

HFF marketed the foreclosed property on behalf of the seller.  CG Properties, LLC, a Houston-based private capital company, purchased Coral Gables Apartments for an undisclosed amount using a bank loan as bridge financing.

Coral Gables Apartments is situated on a 13-acre site at 10522 Beechnut just west of the Sam Houston Tollway in southwest Houston.  The property is less than a 10 minute drive to Houston’s Westchase District, one of the area’s largest employment centers.  Units average 882 square feet each.

The HFF team that represented the seller included senior managing directors Craig LaFollette (lower  right photo), Todd Stewart, Todd Marix, director Tre Banks and associate director Chris Curry. 

The LS Realty Advisors team of David Fantin (multifamily acquisition and consulting) and Heidi Castiglione (multifamily agent) represented the buyer.

M. Todd Marx, HFF Senior Managing Director, (713) 852-3500,
Kristen M. Murphy, HFF Associate Director, Marketing, (713) 852-3500

Berger Commercial Realty Corp. Announces Two New Sales

 FORT LAUDERDALE, FL. – Berger Commercial Realty Corp., a full service commercial real estate firm based in Fort Lauderdale, Fla., and serving clients around the state, announced new deals from brokers Steve Hyatt (top right photo) and Reese Stigliano, SIOR (lower left photo).

Hyatt and Stigliano represented seller SBC 2010-1, LLC in the sale of a 21-unit apartment building, located at 2309-2323 Madison St. in Hollywood, for $410,000 to buyer Rafael Correa.

 Hyatt also represented SBC 2010-1, LLC in the sale of a seven-unit apartment building, located at 1033-1035 North Andrews Ave. in Fort Lauderdale, to Laurence Brokaw for $182,500.

Marielle Sologuren
Pierson Grant Public Relations
6301 Northwest 5th Way, Suite 2600
Fort Lauderdale, FL 33309
Phone: (954) 776-1999, ext. 226
Fax: (954) 776-0290

Daniel Dobric Joins Grubb & Ellis Company’s Office Group in Phoenix, AZ

PHOENIX, AZ – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that Daniel Dobric (top right photo) has joined the company’s Office Group as senior vice president.  He will team with Michael Myrick (middle left photo), CCIM, vice president, Office Group who joined the company in July. 

 “I am absolutely thrilled Dan has joined our team at Grubb & Ellis.  Mike and he have worked together for the past eight years and have built an excellent reputation in the Phoenix marketplace as knowledge leaders who deliver exceptional service to clients,” said Pete Bolton (lower right photo), executive vice president and managing director of Grubb & Ellis’ Phoenix office.

 Dobric joins Grubb & Ellis with 29 years of commercial real estate experience.  He previously spent five years with BRE Commercial as a senior vice president. 

Prior to joining BRE Commercial in 2005, Dobric served as an executive vice president of Presidio Commercial Services L.P., a division of Presidio Investments, for three years, where he oversaw the leasing and marketing of the company’s 1 million-square-foot office portfolio in the Phoenix metro area. 

Previously, Dobric also held the position of vice president with ARES Inc., Premisys Real Estate Services Inc. and PM Realty.  He began his career in 1982 with Coldwell Banker, now CB Richard Ellis.  Dobric holds a bachelor’s degree from the University of Arizona and is a member of NAIOP. 

 Myrick has been in the commercial real estate industry for 13 years, and in that time has been involved in leasing and investment sale transactions valued in excess of $1 billion, as well as a number of agency leasing transactions totaling more than 8 million square feet.  He holds a bachelor’s degree from Northern Arizona University and is a member of NAIOP and the CCIM Institute. 

 In their eight years as a team, Dobric and Myrick have completed more than 600 lease and sale transactions totaling in excess of 4 million square feet. 

This included developing and leasing the only speculative medical office building constructed in the greater Phoenix region in 2010, Mercy Medical Commons.  The team’s client list includes institutional and private landlords and tenants. 

Contact:  Julia McCartney, Phone: 714.975.2230                                     

Marcus & Millichap Names Michael S. Barron Senior Director of NMHG in Cleveland

 CLEVELAND, OH – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has promoted Michael S. Barron (top right photo) to senior director of the firm’s National Multi Housing Group (NMHG), according to Hessam Nadji, a senior vice president and managing director of Marcus & Millichap. Nadji also serves as the national director of the NMHG.

Barron joined Marcus & Millichap in 2002. During his career at Marcus & Millichap, Barron has closed more than 133 transactions, valued at more than $390 million.

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

Jones Lang LaSalle Completes 30,884 SF Office Lease with Bolton & Co. in Pasadena, CA

PASADENA, CA — Jones Lang LaSalle represented Bolton & Company in a 30,884-square-foot lease at Pasadena Corporate Park (top left photo), a 265,000-square-foot, Class-A complex located at 3475 E. Foothill Blvd. in Pasadena, Calif. 

The new space will be used for the company’s headquarters.  Bolton & Company previously occupied space at 245 S. Los Robles Avenue in Pasadena.

Jones Lang LaSalle Managing Director John McAniff, Senior Vice President Christina Noonan and Vice President Jason Fine represented Bolton & Company in the transaction. 

The property owner, Wells REIT Fund II, was represented by Todd Doney, Nico Vilgiate and John Murray of CB Richard Ellis. 

Jones Lang LaSalle’s Southern California Project and Development Services group led by Judy Caruthers will provide project and move management for Bolton & Company by overseeing planning, design, construction and close-out of the project.

“Jones Lang LaSalle is the perfect partner for us – locating a building to fit our needs, securing the best lease terms, handling the new office build-out and overseeing move management.,” said Mike Morey, CIC, Chief Operating Officer for Bolton & Company.

 “This new location allows us to be a more efficient company while accommodating our growth on a single floor and providing our employees with abundant amenities.”

Established in 1931, Bolton & Company is one of the nation’s largest employee-owned insurance brokers providing clients worldwide with insurance and risk management services, employee benefits and financial products. 

Jones Lang LaSalle Completes 15,099 SF Office Lease with Josephson Institute in Los Angeles

LOS ANGELES, CA— Jones Lang LaSalle represented Josephson Institute in its 15,099-square-foot headquarters lease renewal at Airport Center (middle right photo), a 275,267-square-foot, Class A office property located at 9841 Airport Blvd. in Los Angeles. 

Jones Lang LaSalle Executive Vice President Michael Siteman and Vice President Jason Fine represented Josephson Institute in the transaction.  The property owner, Airport Holdings LP, was represented in-house by Joseph Brooks.

“The current economic conditions and our knowledge of local market dynamics allowed Jones Lang LaSalle to negotiate favorable terms enabling Josephson Institute to reduce its rent and extend its lease term,” said Fine.

 For further information, please visit our website,

Contact:  David Ebeling, Phone:  +1 949 278 7851