Sunday, February 13, 2011

Grubb & Ellis Announces Creation of Daymark Realty Advisors

SANTA ANA, CA– Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, announced the creation of Daymark Realty Advisors, Inc., a wholly owned and separately managed subsidiary. 

Daymark, which shall be responsible for the management of the company’s entire tenant-in-common portfolio, will provide specialized management services to the owners of the TIC portfolio.

 As a result of the restructuring, Daymark Realty Advisors becomes one of the largest real estate asset management companies in the country, serving more than 5,200 clients and overseeing a nationwide portfolio of commercial property totaling approximately 33 million square feet, including more than 8,700 multifamily units. 

Daymark will be based in Santa Ana with regional offices in Atlanta, Chicago, Dallas, Phoenix and Richmond, Va.

 “The unique nature of the tenant-in-common business requires specialized expertise and intense focus, especially as the commercial real estate industry begins to recover from the significant downturn of the past few years,” said Thomas P. D’Arcy (top right photo), president and chief executive officer of Grubb & Ellis Company.

 “Daymark Realty Advisors is dedicated to meeting the unique and evolving needs of its tenant-in-common clients, while Grubb & Ellis Company continues to focus on its core real estate services and non-traded REIT businesses.”

Daymark Realty Advisors will provide strategic asset management, property management, structured finance, accounting and loan advisory services to its existing portfolio.  Daymark is led by president and chief executive officer Steven M. Shipp (middle left photo), who previously served as executive vice president of portfolio management for Grubb & Ellis Realty Investors and who has an extensive commercial real estate background spanning more than 22 years in asset management and structured finance.  

 “Daymark enters the market as one of the most experienced managers in the industry, delivering a ‘client-centric’ model that acknowledges the unique needs of tenant-in-common owners,” said Shipp. “We have brought together a deeply talented pool of professionals with specific expertise in the disciplines necessary to preserve and enhance cash flow, valuation and, ultimately, investor returns.”

 In connection with Daymark’s launch, Grubb & Ellis and Daymark have engaged FBR Capital Markets & Co. as financial advisor.  FBR, in addition to being a leader in the real estate capital markets business, has significant experience in advising TIC asset management companies.

 “Our goal is the protection and preservation of our clients’ investments,” said Shipp. “As such, we look forward to working with our clients to find creative solutions that solve for the general lack of capital that is all too common in the TIC industry.” 

Contact: Janice McDill, Phone: 312.698.6707                                     

Marcus & Millichap Closes Two Sales Valued at $27.8 Million

 Medical Office Building in Southern California Sold for $14.13 Million

 TARZANA, CA – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has brokered the sale of Wilbur Medical Plaza (top left photo), a 53,125-square foot multi-tenant specialty medical building in Tarzana. The sales price of $14,130,500 represents $266 per square foot.

 Evan Kovac and Nic Lyon, both healthcare real estate investment specialists in the firm’s San Diego office, represented the seller, Atlantic Pearl Investments Inc., based in Los Angeles (West Hollywood). The buyer was Encino, Calif.-based Ethan Christopher LLC in a joint venture with a well- known institutional medical office building investor.

 “Wilbur Medical Plaza was privately marketed to a select group of medical office REITs, pension funds, private equity and institutional medical office investors, both locally and nationally,” says Kovac. “Ethan Christopher LLC was selected from among several offers from highly qualified bidders.”

“Wilbur Medical Plaza is the premier medical office building in Tarzana’s historically tight medical office submarket,” adds Ethan Christopher’s principal, Mark Hamermesh. “Marcus & Millichap handled this transaction with expertise and professionalism.”

“We are very pleased to have successfully executed an important transaction in the medical office marketplace,” notes Lyon. “It has been our pleasure to work with such a professional and reputable group as Atlantic Pearl Investments throughout this transaction and also with Ethan Christopher, who we believe will continue to operate Wilbur as the premier building in the marketplace.”

Wilbur Medical Plaza is located on a 30,218-square foot corner parcel at 5620 Wilbur Ave. in Tarzana, less than one mile from the Providence Tarzana Medical Center, a 245-bed acute-care facility. The property is easily accessible from U.S. Highway 101 and Ventura Boulevard.

 Built in 1986, the three-story Wilbur Medical Plaza features four levels of subterranean parking, prominent signage and a sleek exterior surrounded by lush landscaping. The building’s tenants are physicians, an on-site surgery center, an imaging center, a pharmacy and other medical related businesses.

Connecticut Shopping Center Trades for $13.7 Million

DERBY, CT – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has brokered the sale of Derby Shopping Cente (middle right photo),  a 170,097-square foot shopping center in Derby.

The sales price of $13.7 million represents $81 per square foot and a 7.31 percent cap rate.

 Adam Mancinone and Blake Barbarisi of Marcus & Millichap’s New Haven office, and Robert Horvath and Todd Tremblay in the firm’s Boston office, represented the seller and developer, a partnership of New York-based investors. Mancinone, Barbarisi, Horvath and Tremblay also represented the buyer, a Connecticut-based private investor.

“The Derby Shopping Center benefits from its dominant location along New Haven Avenue, Connecticut Route 34,” says Mancinone. “The sales price and cap rate in this transaction can be attributed to property’s exceptional location, tenant strength and high percentage of long-term triple-net leases.”

The property is located at a signalized intersection at 500 New Haven Ave. in Derby, with excellent visibility from two directions.

Redeveloped in 2008, Derby Shopping Center is comprised of five single-tenant buildings on 16.8 acres of land. Tenants include Lowe’s Home Improvement Center, a freestanding Dunkin Donuts, Burger King, Webster Bank and Dollar Tree.

The 152,890-square foot Lowe’s opened for business in December 2008 and has a 20-year absolute triple-net ground lease with eight five-year options. Each option period has a 10 percent escalation.

Derby is located in southwest Connecticut approximately one hour’s drive from New York City and two hours from Boston.

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

Marcus & Millichap Capital Corp Arranges $9 Million in Multifamily Loans

Kenmore, WA Property Refinanced With $5.32 Million Loan

KENMORE, WA,– Marcus & Millichap Capital Corporation (MMCC) has arranged a $5,320,000 refinancing loan for a 75-unit, 59,000-square foot multifamily property in Kenmore.

Glenn Gioseffi, a director in the firm’s Seattle office, arranged the loan.

“During the course of the transaction, interest rates began to move up quickly,” says Gioseffi. “MMCC introduced the transaction to an agency lender and a local bank at the same time.

“The bank’s ability to lock rate produced an interest rate almost 0.5 percent lower and we were able to get an extra $300,000 in loan proceeds,” adds Gioseffi.

The loan is for 10 years, amortized over 30 years with a fixed interest rate of 4.12 percent. The LTV is 65 percent.

“One week before the lock expired and we were set to fund, the lender informed us that they needed a phase two environmental inspection,” Gioseffi continues. “We sourced a soils group that could drill and analyze samples within the time frame and the loan funded on the lock expiration date.”

“We are seeing people move towards loans that can be locked at the start,” Gioseffi concludes. “The recent rate jump has made the local banks’ small rate premium an attractive exchange in return for a locked rate.”

Canoga Park, CA Apartments Gets $3.64 Million Loan

CANOGA PARK, CA – Marcus & Millichap Capital Corporation (MMCC) has arranged a $3,648,000 loan on a 67-unit multifamily property in Canoga Park.

Sharone Sabar, a director in the firm’s Encino office, arranged the loan.

“Using the borrower’s financial strength and management experience, MMCC worked with the lender to obtain pro forma underwriting, which helped the borrower receive high loan to value,” says Sabar.

 “The borrower wanted a GSE loan to purchase this property but the significant amount of tuck-under parking was problematic and ultimately prohibitive.

“The solution was to arrange a carryback with the seller in order to retrofit the building prior to placing long-term debt,” continues Sabar. “The retrofit took approximately 10 weeks to complete and we closed with a GSE immediately thereafter.”

The loan is for seven years, amortized over 30 years with a fixed interest rate of 5.49 percent. The LTV is 75 percent.

Press Contact: Stacey Corso,  Marcus & Millichap Capital Corporation,
(925) 953-1716