Real Estate Alert’S Deal Database, Which 13 ESPN Campus in Conn

JULY 31, 2013 2 Buyers Step In After FDIC Deal Goes Awry After the original winning bidder dropped out, a Starwood Capital-FDIC partner- 8 TOP INDUSTRIAL BROKERS ship has decided to break up a sprawling apartment portfolio, dividing it between Crescent Heights and Winthrop Realty. 10 TOP MULTI-FAMILY BROKERS Crescent, a Miami condo converter, has agreed to buy nine complexes for about $650 million, according to people familiar with the transaction. Boston-based High-Yield Office Play in Houston 2 Winthrop will take down the other four complexes for about $250 million. Eastdil 3 Walgreens Marketing Retail Portfolio Secured and HFF are advising the Starwood-FDIC partnership. The new agreements value the portfolio at roughly $900 million, or some $50 3 Value-Added Rental Plays in Arizona million less than the bid by original winner American Invsco. That company, led by Nicholas Gouletas, 3 Firm Lists Long-Held NY Offices Chicago condominium developer was unable to line up enough capital to complete the purchase. 4 Miami-Area Residential Play Pops Up The 3,128-unit portfolio was developed as upscale condominiums during the frothy days of the real estate boom. Lender Corus Bank assumed the properties when 4 Warehouse Available at Houston’s Port See BUYERS on Page 13 6 Hotel Available in SF Tourist District 6 Big Virginia Development Site Listed Apartment Sales Up 19%; CBRE Out in Front Sales of large multi-family properties rose by 19% in the first half, as real estate Clarion Showing Washington Offices 6 investors continued to view apartments as the safest asset class. 8 Industrial Sales Slip; CBRE Top Broker Some $18.6 billion of buildings traded from January through June, the biggest first-half total since 2007, according to Real Estate Alert’s Deal Database, which 13 ESPN Campus in Conn. on the Block tracks trades of $25 million and up. Apartment pros believe the market is even 14 Shop Eyes Value-Added Plays in Texas stronger than the six-month results suggest and forecast a robust second half. CBRE remained the nation’s most prolific apartment broker, closing $5.1 billion of 15 MARKET SPOTLIGHT deals. That gave it a 31% share of brokered trades and twice the volume of HFF, which recorded $2.5 billion of sales and captured second place. Apartment Realty Advisors was a close third at $2.2 billion. Jones Lang LaSalle more than tripled its sales to $1.5 billion and leaped into fourth place, from eighth for both the first half and all of last year. Marcus & Millichap rounded out the top five with $1.1 billion of sales — largely generated by its 3-year-old Institutional Property Advisors platform, which See APARTMENT on Page 10 THE GRAPEVINE Blackstone to Buy Hughes Center in Las Vegas Veteran Washington property broker William Kaye jumped to Colliers Interna- Continuing to unwind Crescent Real Estate’s once-massive office portfolio, a tional from CBRE in the past few weeks. Barclays partnership has agreed to sell Hughes Center in Las Vegas to Blackstone The buzz is he will lead capital-markets for nearly $350 million and has put the two remaining Crescent buildings on the efforts in the Washington area and could block. be involved in deals all along the East Meanwhile, Cousins Properties disclosed Monday that it had agreed to buy two Coast. Kaye was an executive vice presi- other properties in the portfolio. The Atlanta REIT will pay $950 million for the 4.3 dent at CBRE, where he spent the past million-square-foot Greenway Plaza in Houston and $160 million for the 955,000-sf six years, after a 10-year stint atTram - Carter Burgess Plaza in Fort Worth, Texas. The capitalization rate is 7.6% on Greenway mell Crow. Kaye is the third longtime Plaza, which is 92% leased, and 6.2% on Carter Burgess Plaza, which is 91% leased. Washington broker to leave CBRE since Blackstone’s capitalization rate on the 1.5 million-sf Hughes Center would be last year, when Ryan Clutter and Michael 7.7%. Hughes Center is widely viewed as the premier office property in Las Vegas. Blunt relocated to that city and took It encompasses 10 office buildings, plus stores and restaurants. The complex, which charge of office sales. The others who was built between 1986 and 2007, is part of a 68-acre mixed-use development at See GRAPEVINE on Back Page See HUGHES on Page 4 July 31, 2013 Real Estate 2 ALERT High-Yield Office Play in Houston the return to 8% within two years by leasing up vacant space and raising below-market rents on a big chunk of space with matur- An Amstar partnership is pitching an office building in Hous- ing leases. Bids are expected from core-plus investors attracted to ton’s Energy Corridor to core-plus and value-added investors. the submarket, and value-added investors drawn to the upside The 286,000-square-foot Kirkwood Tower could attract bids potential. of about $55 million, or $192/sf. At that price, the buyer’s initial The building has heavy lease rollover in the next few years. annual yield would be about 6%. CBRE is representing Amstar, a Contracts on nearly a quarter of the space mature within a year Denver real estate investment manager, and its partner, Frontier and on 40% within three years. Overall, the rents average 25% less Equity of Addison, Texas. than the building’s current asking rate of $18/sf on a triple-net The marketing campaign is emphasizing the opportunity to basis, and the leases expiring within one year are 40% below that boost income generated by the 15-story property, which has an level. 87.7% occupancy rate. Investors are being told they could increase The Energy Corridor is Houston’s tightest submarket. Its Class- A office space was 99% occupied at the end of June, up 3.7 percent- age points from a year earlier and a whopping 9.5 points from two years earlier. Meanwhile, even Class-B WE SELL REAL ESTATE SOLD buildings were 92% leased at mid- year. The lack of available space has FOR MORE. PERIOD. driven up rents rapidly. Kirkwood Tower was built in • Over 150,000 assets sold since 2007 1984. While it has Class-A status, • 30+ million unique website visitors most of its peers in the Energy • Beneﬁt from Auction.com’s $40 million annual marketing spend Corridor were constructed more recently. Asking rents at new build- • 2013 average sales price to reserve: 114% ings average $22/sf on a triple-net basis. Also, those buildings gener- ally cater to tenants needing big blocks of space. In comparison, Kirkwood Tower’s asking rents are 18% lower, and it can accommodate small and mid-size tenants, which could help a buyer lease it up. Kirkwood Tower’s tenants include Colonial Life & Accident Insurance, SOLD a Samsung subsidiary and Farmers ALBEMARLE, NORTH CAROLINA - RETAIL CENTER Insurance Exchange. No tenant leases SOLD AT 26% ABOVE THE HIGHEST TRADITIONAL SALES OFFER more than 10% of the space. Most leases have rent bumps. Square Footage: 52,230 Conﬁdentiality Agreements Signed: 66 The Amstar partnership acquired Occupancy: 85% Total Purchase Price-to-Reserve: 144% GE Real Estate Web Hits: 2,159 Anchor Tenant: Harris Teeter the building from one year ago for $31.3 million. That price was depressed by the property’s SELL YOUR COMMERCIAL PROPERTY 74% occupancy rate at the time, as IN OUR UPCOMING AUCTION well as the requirement that a buyer assume an $18 million mortgage JOE CUOMO with an above-average 6.4% cou- Senior Vice President pon. The Amstar team renovated the E: [email protected] P: 305.503.2637 property, boosted the occupancy rate Visit Auction.com/Sell and effectively prepaid the loan by defeasing it. The Nation‘s Leading Online Real Estate Marketplace Kirkwood Tower is at 11757 Katy Auction.com, LLC. 1 Mauchly, Irvine, CA 92618, (800) 499-6199. AZ REDC RE Brkr CO586378000; CA Auction.com RE Brkr 01093886; Auction Company SB 0475258, Mark Buleziuk SB 0418863, Michael E. Carr SB Freeway, along Interstate 10 and less 0447257; NV Auction.com RE Brkr B.1000803.CORP. 03202012, NC Auction.com RE Brkr C20400; Auction Firm Auction.com 8781; Auctioneer Mark Buleziuk 8336, Michael E. Carr 8509. Subject to Auction Terms and Conditions posted for the event. Auction.com does not make any representations or warranties regarding whether a particular property will be sold or the price it will bring at auction. than two miles west of Beltway 8. It has a six-level garage with 1,100 spaces.  July 31, 2013 Real Estate 3 ALERT Walgreens Marketing Retail Portfolio ters and private garages, are: • The 288-unit Camden Sierra, at 1734 North 89th Avenue Pharmacy chain Walgreens is seeking bids for a portfolio in Peoria. of 12 shopping centers anchored by its stores, which it would • The 192-unit Camden Fountain Palms, at 8820 West Bell lease back. Road in Peoria. The 707,000-square-foot portfolio, which is 77% occupied, • The 240-unit Camden Towne Center, at 17600 North 79th is expected to fetch $147 million. At that price, the buyer’s ini- Avenue in Glendale. tial annual yield would be 6.6%. Jones Lang LaSalle has the list- The Phoenix area has re-emerged as one of the country’s ing. strongest rental markets after absorbing the oversupply result- While Walgreens isn’t ruling out offers for individual prop- ing from the condominium-market collapse and the recession. erties, the company has a strong preference to sell the portfolio The average occupancy rate is 93%, and construction is limited. intact. As part of the deal, it would lease back all 197,000 sf Nineteen apartment properties traded for more than $25 mil- occupied by its stores for 20 years — initially accounting for lion in the first half of the year, and at least five other properties 51% of the gross revenues at the properties, which are spread were listed in recent weeks.  across nine states. The package would produce $9.7 million of annual net operating income once Walgreens starts paying Firm Lists Long-Held NY Offices rent. The Walgreens stores typically encompass 15,000 sf, A 196,000-square-foot office building in Midtown Manhat- although one is about twice as big. Other major tenants include tan is being shopped by a local investor that has owned it since grocer Aldi, Petco and Sears. the 1940s. The largest concentration of properties is in Maryland: The property, at 132 West 36th Street in the Garment Dis- a 123,000-sf shopping center in Takoma Park that is 91.1% trict, is estimated by owner Kaufman Organization to be worth leased; a 62,000-sf center in Cambridge that is 60.4% leased; $90 million, or $457/sf. A buyer’s yield at that price would be and a 44,000-sf center in Pikesville that is just 51.9% occupied. slightly less than 4%. Eastern Consolidated has the listing. Also included are two properties in Florida: a 62,000- The 12-story property, known as the Kaufman Arcade Build- sf shopping center in Jacksonville that is 92.6% leased and a ing, encompasses 172,000 sf of office space on the 10 upper 58,000 sf property in Pompano Beach with a 75.4% occupancy floors and 15,500 sf of retail space on the ground and second level. floors. It also has 8,000 sf of basement space. The largest remaining center, in Florissant, Mo., has 91,000 The occupancy rate is 99%. The office tenants include sf that is 92.7% occupied. Rounding out the offering are shop- Loyaltex Apparel, which occupies 16,000 sf until 2020, along ping centers in Gonzales, La. (78,000 sf, 19.2% occupied); with packaging maker r-pac International and fabric distributor Austin (76,000 sf, fully leased); Oxnard, Calif. (35,000 sf, 76% Benartex, according to CoStar. Capital Fishing Tackle occupies occupied); Bristol, Conn. (30,000 sf, fully leased); Vienna, Va. 6,000 sf of retail space. (25,000 sf, fully leased); and Puyallup, Wash. (23,000 sf, 63.9% Most office tenants take up full or half floors, meaning a leased). buyer could divide those areas among multiple tenants as All of the properties are at high-traffic intersections, with up leases expire. Marketing materials suggest that the buyer also to 89,000 vehicles passing the sites each day. Walgreens needed could raise rents in the process, as the $24/sf average for the to acquire many of the properties to construct its drugstores, building’s upper floors is well below the $30-35/sf levels seen but doesn’t want to continue owning them because it isn’t inter- in nearby properties. ested in being a landlord.  What’s more, a new measurement of the building is likely to add 16,000 sf of rentable space. Value-Added Rental Plays in Arizona The bow-tie shaped property, built in 1922, is between Sev- enth Avenue and Broadway, with entrances at 132 West 36th Camden Residential is pitching three Arizona apartment Street and 139 West 35th Street. In recent years, Kaufman has properties to value-added investors. spent millions of dollars to upgrade the building’s systems, ren- The Class-A complexes, with 720 total units, are expected to ovate the penthouse level and replace nearly all of the windows. attract bids of about $95,000/unit, or $68 million. That would Kaufman was founded in 1909 by clothier and developer translate into a capitalization rate of about 6.5%. Camden, a Samuel Kaufman, who eventually passed on control of the oper- Houston REIT, will consider offers on individual properties or ation to other family members. The firm now is led by chair- the whole portfolio. CBRE has the listing. man George Kaufman and president Steven Kaufman.  The garden-style properties, in the northwestern Phoenix suburbs of Peoria and Glendale, are about 95% occupied. The units have washer/dryers, walk-in closets and balconies or Need to see the largest property sales that were completed patios. A buyer could boost its return by upgrading the apart- recently? Go to The Marketplace section of REAlert.com and click ments and the common areas. on “Sales Activity.” It’s free. The 1990s-vintage properties, which have pools, fitness cen- July 31, 2013 Real Estate 4 ALERT Miami-Area Residential Play Pops Up The building is about one mile from State Highway 146 and three miles from both major container terminals serving the H.I.G. Realty is shopping a South Florida townhome commu- port. The surrounding submarket is dominated by regional dis- nity with space for additional development. tribution and global logistics firms. The master-planned property, Palm Breeze at Keys Gate, Duke Realty owns the adjacent 598,000-sf Interport 1.  encompasses 375 existing rental units and lots that could house another 370. Expectations are that the offering will attract bids Hughes ... From Page 1 of about $65 million, primarily from value-added investors. HFF is representing New York-based H.I.G. 3800 Howard Hughes Parkway. Palm Breezes is in the Miami-Dade County town of Home- HFF, which is brokering the sales to Blackstone and Cousins, stead, about 30 miles south of Miami. The existing townhomes has also launched a marketing campaign for the two remaining were built in 2007. Crescent properties, both in Denver: the 694,000-sf Johns Man- Excluded from the package are 184 townhomes in the com- ville Plaza, at 717 17th Street, which was built in 1978; and the munity that have been sold as condominiums. A buyer of the 563,000-sf building at 707 17th Street, which was completed remaining units would take control of the homeowners’ associa- in 1982. tion and could continue to operate the acquired units as rentals. Barclays took control of Crescent in 2009, after Morgan Under that scenario, the buyer would collect about $3.2 Stanley Real Estate defaulted on loans it had used to buy the million of net operating income — giving it stable income Fort Worth company for $6.5 billion in 2007, near the peak of while developing the lots. But with home and condominium the market. sales picking up in South Florida, a condo conversion also Barclays inherited interests in 12 Class-A office properties could present a likely exit strategy. Indeed, builders including totaling 17.3 million sf — full ownership of six properties totaling DR Horton and Lennar have been snatching up land for the 8.2 million sf and 24% stakes in six properties totaling 9.1 million construction of for-sale homes in Homestead. sf. The bank also assumed a few resort and residential properties According to CBRE, 20,000 condos have sold in Miami-Dade and development sites, the statuses of which are unclear. County in the last 30 months. Prices also have been recovering Barclays brought in Goff Capital of Forth Worth as its partner from their 2009 lows.  to manage the assumed company. Goff’s founder,John Goff, had been the head of Crescent when it was sold to Morgan Stanley. Warehouse Available at Houston’s Port As the market began to rebound in 2011, the Barclays partnership began a push to dispose of the office properties. California State Teachers is marketing a large warehouse at Late that year, it sold the six partially owned properties to the the Port of Houston with a rare combination: modern, high- majority owner, J.P. Morgan Asset Management. quality features and significant unleased space. That same year, the Barclays partnership listed the six office The 734,000-square property, completed in 2009, is just 60% properties that it wholly owned. Brookfield Office Properties of occupied. It’s expected to trade for about $41 million, or $56/sf. At New York and Shorenstein Properties of San Francisco were that valuation, the initial annual yield would be 4%, but a buyer among investors that bid on the entire package. The owners could dramatically boost that by adding tenants. also took offers on individual properties. The bids for Green- HFF is marketing the property for CalSTRs, which is being way Plaza weighed in at roughly $700 million — a figure local advised by Principal Real Estate Investors of Des Moines, Iowa. pros considered aggressive at the time. But the Barclays part- The pension fund developed the property through a joint ven- nership decided to bide its time and hold out for better pricing ture with Chicago-based First Industrial, which exited the part- — a decision that now appears to have paid off. nership in 2010. Cousins has had Greenway Plaza in its sights for some time. The building was completed just as a glut of warehouses In 2008, it was in talks to buy the 10-building complex for $700 opened in Houston’s Southeast industrial submarket. The 73.6 million, but the deal collapsed amid the downturn. million-sf submarket has begun to work its way through that Greenway Plaza, which was developed between 1969 and overhang and is now 94.2% occupied. Rents have picked up and 1981, has 4.25 million sf of office space, plus almost 100,000 sf are expected to continue rising because of limited construction of stores and restaurants. The office buildings are on Richmond and increasing demand. Fueling that demand are the booming Avenue between Buffalo Speedway and Timmons Lane. petrochemical sector and the expectation that port activity will The 40-story Carter Burgess Plaza is at 777 Main Street in Fort increase in a few years due to the expansion of the Panama Canal. Worth’s central business district. The tower was built in 1982. The listed property, called Interport 2, is on 45 acres at 13031 The three other office properties that Barclays inherited Bay Area Boulevard in Pasadena, Texas. Its features include a full ownership of are in the Denver area. Last year, it sold minimum ceiling height of 30 feet and a cross-dock loading one of them — the 264,000-sf Peakview Tower, at 6465 South configuration. The sole tenant, Jacobson Warehouse, moved Greenwood Plaza in Centennial, Colo. KBS Realty Advisors of into the building in 2011. Rents were at historic lows at the Newport Beach, Calif., acquired it for $54 million. Jones Lang time. According to marketing materials, Jacobson’s rent is 15% LaSalle was the broker. Now it has put the two other Denver below what it would likely pay at today’s market rates. buildings on the block.  “My lender should be interested in my business long term, not just selling me products today.”

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MC-5788 July 31, 2013 Real Estate 6 ALERT Hotel Available in SF Tourist District rezoned for greater density. Assigning a value to the offering is difficult because a buyer Square Mile Capital is offering the leasehold interest in a San or buyers could choose to stick with the pre-approved build- Francisco hotel it took over last year in a loan-to-own play. ing plans or come up with new proposals. Some market pros The 355-room Radisson Fisherman’s Wharf is expected to calculate that the Reston Heights and Reston Gateway parcels attract bids of up to $150 million, or $423,000/room. At that are worth about $65 million in total. The Sunrise Valley Drive price, a buyer’s initial annual yield would be about 8%. The prop- building’s value is estimated at $10 million, or $145/sf. erty is being offered unencumbered by brand or management The marketing campaign touts the offered sites as the largest contract via Jones Lang LaSalle, which is taking bids this week. available that are ready for construction in the Reston-Hern- Square Mile, a New York fund shop, bought defaulted junior don market. It also notes that there is only one other high-end, debt on three hotels, including the Radisson, and last year took mixed-use development in the area — Reston Town Center. control of them from a Goldman Sachs partnership. Down the The office building at 11800 Sunrise Valley Drive is 71% road, Square Mile is expected to shop the other two — the 211- leased, according to CoStar. A buyer could lease up the property room Harbor Island Airport Hilton in San Diego and the 325- or reposition it as higher-end office space to reduce carrying room Best Western Lake Buena Vista near Orlando. costs during development. The office building at 11720 Sunrise The San Francisco property includes 44,000 square feet of Valley Drive is 95% occupied. retail space and a 235-space garage. Both are touted as strong The parcels are next to Reston National Golf Course and revenue sources for the property, which generates some $11 within walking distance of a Metrorail station at Wiehle Ave- million of annual net operating income. Square Mile spent $5 nue that is scheduled to open this summer. million on upgrades. JBG, of Chevy Chase, Md., and Rockwood, a fund shop in The existing cashflow is expected to appeal to core buyers, White Plains, N.Y., own the property along with JBG Urban as is the property’s location near popular tourist attractions, Fund, a joint venture between JBG, Morgan Stanley and Mac- including Fisherman’s Wharf and Pier 39. Value-added shops Farlane Partners of San Francisco.  also may be interested in the potential offered by vacant retail space, which could potentially be expanded by moving the Clarion Showing Washington Offices hotel’s fitness center. Alternatively, the vacant space could be converted into six hotel rooms. Clarion Partners is marketing a Washington office building The property, developed in 1964, is at 250 Beach Street and valued at up to $60 million. fills a waterfront block bounded by Powell, Jefferson and Mason The 105,000-square-foot property, at 919 18th Street NW, Streets. It has a ground lease that runs until 2062.  is 90.5% occupied. At the estimated sales price of $571/sf, the buyer’s initial annual yield would be about 5.5%. New York- Big Virginia Development Site Listed based Clarion has given the listing to HFF. The 10-story building, mid-block between Eye and K A partnership led by JBG Cos. and Rockwood Capital is mar- Streets, was constructed in 1981 and has been upgraded in keting land suitable for at least 1.2 million square feet of mixed- recent years. The largest tenant, Management Concepts, has a use development in Reston, Va. lease on 31,000 sf until 2021, according to CoStar. Other ten- The parcels are along Dulles Toll Road, sandwiched around ants include American Financial Services Association (10,000 Westin and Sheraton hotels, restaurants and a luxury condo- sf) and Veteran’s Enterprise Technology Solutions (8,000 sf). minium complex with 194 units. Two relatively small office The 35.3 million sf in Washington’s Central Business District buildings are already on the land, one of which could be sig- submarket was 88.7% occupied on June 30, up 40 bp from three nificantly expanded. months earlier, according to Jones Lang LaSalle. The partnership prefers to sell the real estate intact, but will Clarion’s predecessor firm, ING Clarion, bought the prop- consider bids on various pieces. The offering has an estimated erty in 2005 for $40 million, or $377/sf. The seller was an total value of roughly $75 million. Cassidy Turley has the listing. unidentified family that had held a stake in the property since One component is a 10-acre parcel dubbed Reston Heights. shortly after it was built and bought out its partners in 2003. A 179,000-sf office building is already on the site, at 11800 The building, which includes a three-level underground Sunrise Valley Drive. There are also approvals in place for the garage for 85 cars, is one block from the Farragut West and Far- development of two more office buildings, totaling 245,000 sf, ragut North Metro stations.  and two apartment buildings totaling 561,000 sf. The apartment buildings would encompass 560 units and 114,000 sf of retail space. Unless your company holds a multi-user license, it is a violation of There are two other components: a 69,000-sf office build- U.S. copyright law to photocopy or reproduce any part of this ing at 11720 Sunrise Valley Drive that could be expanded to publication, or forward it electronically, without first obtaining or redeveloped into 400,000 sf of office space; and 3.9 acres, permission from Real Estate Alert. For details about licenses, known as Reston Gateway, that are currently approved for contact JoAnn Tassie at 201-234-3980 or [email protected]. 22,000 sf of retail space in a single-story building, but could be EXPERIENCE ■ EXPERTISE ■ EXECUTION

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Real Estate Alert July 31, 2013 9”w x 11.5”h Full Bleed 4C 8.5”w x 11”h Trim 7.75”w x 10.25”h Live Area July 31, 2013 Real Estate 8 ALERT

RANKINGS Industrial-Property Sales Off 3%; CBRE Leads Brokers

Sales of large industrial properties dipped of sales for a 10.7% share, followed by Jones slightly in the first six months of the year, Industrial Sales Lang LaSalle with $351.1 million, or 9.2%. but market pros expect a strong second half Amount No. of HFF pushed into the top 5 with $186.7 mil- — including a massive portfolio sale that’s ($Bil.) Prop. lion of sales and a 4.9% share. expected to close in the coming weeks. 2005 $9.0 537 The first-half numbers don’t include CBRE, the sector’s top broker for the past 2006 9.0 290 Lehman Brothers’ pending sale of 17 mil- two years, led the ranking at the year’s mid- 2007 17.0 693 lion sf of properties to two buyers in deals point, according to Real Estate Alert’s Deal 2008 6.3 219 totaling $960 million, with Eastdil as broker. Database. With fundamentals continuing to 2009 2.1 137 San Francisco-based Prologis agreed in May improve, investors are bidding aggressively 2010 6.8 443 to pay $530 million, or $71/sf, for about 7.5 for high-quality properties, driving capi- 2011 8.3 349 million sf in Pennsylvania and Las Vegas, talization rates to historic lows in top mar- 2012 11.4 560 while Blackstone, the New York fund giant, kets and paying premiums when properties 1H-13 4.1 is under contract to take roughly 9.5 million are bundled. Meanwhile, activity is slowly sf of space in Reno, Nev., for $430 million, spreading into value-added plays and sec- or $45/sf. ondary markets. Four years after the market bottomed out, Some $4.1 billion of industrial properties worth at least demand remains strongest for core properties in top markets. $25 million traded hands from January through June, off 3% Capitalization rates have dipped close to 4% in Southern Cali- from the same period last year. But brokers and investors fornia, are in the mid- to high-4% range in Miami and Hous- believe annual volume could still rival last year’s total of $11.4 ton, and just above 5% in Dallas and New Jersey. billion — a figure topped only by the $17 billion of deals in McArtor, of CBRE, said one major factor fueling aggressive the boom year of 2007. pricing is that leases executed during the downturn are on the “The capital-markets activity is great,” said Josh McArtor, a cusp of maturity, meaning buyers can expect to raise rents CBRE executive vice president. “Once we hit the second quar- and increase net operating income significantly. “It’s like a ter, it really started to heat up.” bottle of wine,” McArtor said. “Everyone loves a 2009-vintage The top four slots in the broker ranking were unchanged rent roll. If you buy at a five cap, you get a 20% pop.” He said from full-year 2012. CBRE closed $1.5 billion of deals, 38.7% that’s outweighing concerns about rising borrowing costs. of all brokered trades, edging out Eastdil Secured, which had Buyers especially crave large, recently built warehouses that $1.1 billion of sales and a 28.5% market share. are fully leased, preferably to single tenants. Big distribution Third-place Cushman & Wakefield handled $410.2 million See INDUSTRIAL on Page 9

Top Brokers of Industrial Properties in the First Half Brokers representing sellers in deals of at least $25 million 1H-13 Market 1H-12 Market Amount No. of Share Amount No. of Share ’12-’13 ($Mil.) Properties (%) ($Mil.) Properties (%) % Chg. 1 CBRE $1,480.0 30 38.7 $1,346.7 30 34.4 9.9 2 Eastdil Secured 1,089.9 62 28.5 1,178.2 69 30.1 -7.5 3 Cushman & Wakefield 410.2 23 10.7 155.3 4 4.0 164.1 4 Jones Lang LaSalle 351.1 10 9.2 290.1 13 7.4 21.0 5 HFF 186.7 6 4.9 136.6 6 3.5 36.7 6 Colliers International 147.7 4 3.9 183.8 5 4.7 -19.6 7 Newmark Grubb 86.2 3 2.3 40.3 3 1.0 113.9 8 Cassidy Turley 77.0 1 2.0 27.8 1 0.7 177.0 OTHERS 0.0 0 0.0 551.1 56 14.1 -100.0 Brokered Total 3,828.8 139 100.0 3,909.9 188 100.0 -2.1 No Broker 261.2 7 295.0 15 -11.5 TOTAL 4,090.0 146 4,204.9 203 -2.7 July 31, 2013 Real Estate 9 ALERT

RANKINGS

or $58/sf, for a 9.6 million-sf package marketed by GE Capital Industrial ... From Page 8 via Eastdil. The 106 properties are 85-90% leased. Only a third centers with modern features are hot, partly because of leasing of them were built since 2000, and the portfolio’s largest con- demand from e-commerce companies that need to move their centration is in Austin. products quickly. But with the national economy remaining sluggish, interest in Investors seeking higher yields started last year to focus on second-tier and value-added properties is still restrained. “If you industrial properties outside the top markets, and that trend go into second-tier markets with too much Class-B [product], continued in the first half, with Phoenix one of the bright spots. there isn’t as much demand for it,” said John Huguenard, head of Many investors continue to view themselves as under-allo- Jones Lang LaSalle’s national industrial-sales team. He said such cated in the sector. For high-quality properties, that has con- offerings are more vulnerable to rising interest rates, which could tributed to the return of the “portfolio premium,” as buyers are eat away at the yield investors demand on such deals. willing to pay extra to boost their holdings in one fell swoop. A Across the sector, occupancy rates have improved every major example came in June, when Duke Realty of Indianapo- quarter since dipping to 90% at the end of 2009, according to lis paid $311 million for eight bulk-distribution warehouses CoStar. At mid-year, the occupancy rate for the nation’s 13 bil- totaling 4.8 million sf, or $64/sf. CBRE advised the seller, San lion sf of industrial space stood at 91.9%. Over the past decade, Antonio-based USAA. only the boom years of 2005-2007 had higher occupancy rates. One major question facing the sector at the start of the year Research firm REIS said there are some headwinds that was whether buyers would step up for big portfolios that have could hurt leasing demand. Slowing economies in China and significant vacancies or aren’t primarily concentrated in the other Asian countries, along with high unemployment, debt best markets. The early signs are encouraging. Last month, for problems and austerity programs in Europe, could hurt U.S. example, First Potomac Realty, a REIT in Bethesda, Md., sold a export growth. But the firm said recovery of the U.S. housing 4 million-sf portfolio that was 81.2% leased to Blackstone for and automobile sectors bode well for the warehouse and distri- $311 million, or $60/sf. Eastdil brokered that deal. bution space that companies will need to house construction Meanwhile, the buzz is that bids have reached $560 million, materials, home furnishings and car parts.  In the know? Commercial Mortgage Alert, the weekly newsletter that guarantees your edge in real estate finance and securitization.

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RANKINGS

ply/demand imbalance. Demand outweighs supply.” Apartment ... From Page 1 That was especially evident in New York. Typically the focuses on large assignments from clients. nation’s leading market, it saw first-half trading plummet to 24 Industry experts say several factors point toward continued deals worth $1.5 billion, from 46 deals totaling $2.5 billion in growth in the sector. Homeownership rates are down, with the same period last year. Market pros blamed the drop on a many professional workers who would have been buyers in lack of offerings, not investor disinterest. years past opting to rent. Occupancy and rent rates nationwide By contrast, Greater Washington became the hottest region are growing at close to pre-recessionary levels. And the avail- in the country again after taking a breather in 2012. The District ability of financing fromFannie Mae and Freddie Mac, although of Columbia and its suburbs in Maryland and Northern Virginia somewhat reduced, helps isolate investors from the interest- posted $2.3 billion of first-half sales, up 187% from a year earlier. rate volatility affecting other asset classes. The next-busiest region was Central and Northern Florida, “We have regular calls with our clients to take their tem- where $1.5 billion of properties traded, an 82% gain. Hous- perature, and the appetite for multi-family remains as strong ton, Dallas and South Florida also saw significant increases. as ever,” says Jubeen Vaghefi, a managing director and head of Atlanta and Phoenix were roughly flat after big jumps last year, Jones Lang’s national apartment platform. “The reason there but along with Houston they’re poised to have strong second isn’t incredibly strong growth in sales is because there is a sup- See APARTMENT on Page 11

Top Brokers of Multi-Family Properties in the First Half Brokers representing sellers in deals of at least $25 million 1H-13 Market 1H-12 Market Amount No. of Share Amount No. of Share ’12-’13 ($Mil.) Properties (%) ($Mil.) Properties (%) % Chg. 1 CBRE $5,071.6 127 31.0 $3,756.9 104 27.2 35.0 2 HFF 2,515.3 35 15.4 1,502.6 30 10.9 67.4 3 Apartment Realty Advisors 2,237.1 55 13.7 1,898.6 45 13.7 17.8 4 Jones Lang LaSalle 1,508.7 27 9.2 436.5 12 3.2 245.6 5 Marcus & Millichap 1,137.1 26 7.0 1,043.3 23 7.5 9.0 6 Cushman & Wakefield 885.2 18 5.4 961.8 18 7.0 -8.0 7 Moran & Co. 694.3 11 4.2 941.9 20 6.8 -26.3 8 Eastdil Secured 636.2 6 3.9 831.1 3 6.0 -23.5 9 Transwestern 422.6 7 2.6 41.0 1 0.3 930.6 10 Colliers International 350.3 7 2.1 170.8 5 1.2 105.1 11 Engler Financial 231.3 6 1.4 293.9 6 2.1 -21.3 12 Rosewood Realty 128.0 11 0.8 125.5 2 0.9 2.0 13 Multi Housing Advisors 92.0 3 0.6 0.0 0 0.0 14 Ideal Realty 78.1 1 0.5 44.0 1 0.3 77.5 15 Newmark Grubb 69.0 2 0.4 197.7 17 1.4 -65.1 16 Gebroe-Hammer Associates 58.5 2 0.4 0.0 0 0.0 17 NAI Global 51.0 1 0.3 0.0 0 0.0 18 First Capital Realty 39.6 1 0.2 169.2 3 1.2 -76.6 19 Hendricks-Berkadia 38.2 1 0.2 332.5 12 2.4 -88.5 20 Eastern Consolidated 32.3 1 0.2 137.8 5 1.0 -76.5 21 Kidder Mathews 29.4 1 0.2 0.0 0 0.0 22 Brookfield Financial 27.5 1 0.2 0.0 0 0.0 23 Brown Realty Advisors 26.0 1 0.2 0.0 0 0.0 OTHERS 0.0 0 0.0 943.6 23 6.8 -100.0 Brokered Total 16,359.2 351 100.0 13,828.6 327 100.0 18.3 No Broker 2,264.6 68 1,876.1 37 20.7 TOTAL 18,623.8 419 15,704.7 364 18.6 July 31, 2013 Real Estate 11 ALERT

RANKINGS

to a Greenville, S.C., just to chase a higher Apartment ... From Page 10 Multi-Family Sales cap rate.” halves, as waves of offerings hit those mar- Amount No. of One of the most promising long- kets in recent weeks. ($Bil.) Prop. term indicators market pros are noting The strongest demand — and highest 2004 $14.3 262 is an expanding number of big investors pricing — is still for newer-vintage proper- 2005 52.2 1,062 shopping for apartment properties. Several ties in the biggest cities. Even in secondary 2006 50.6 983 large real estate companies that have little markets, higher-end complexes are moving 2007 41.1 955 or no multi-family exposure are talking first. Institutional buyers remain cautious 2008 20.1 508 to sellers about getting into the sector. Starwood Capital Blackstone as they move towards older properties or 2009 6.6 169 and are revving value-added deals. A Class-B property that up to increase their apartment holdings, 2010 19.5 387 can be renovated to compete with Class- and brokers say a handful of private equity 2011 32.7 689 A properties in a strong market is attrac- firms are thinking of jumping in. tive, but 1970s- or 1980s-vintage suburban 2012 42.4 911 Traditionally, the second half of the year complexes are a tough sell. 1H-13 18.6 419 sees significantly more closings than the Likewise, the big players take an incre- first. Brian McAuliffe, CBRE’s senior man- mental approach to venturing out into aging director and co-head of its apartment smaller markets. While they seek higher yields than they can platform, thinks that trend might be especially pronounced get in Washington or New York, they still want to stay near this year. He expects that investors will become even more major employment centers. active in pursuing deals in secondary markets and on value- “The large institutional players, when they say, ‘I’m going added properties — and will be looking to do it in a big way. to liberalize my portfolio,’ do it methodically and slowly,” says “We’re going to see more portfolios and larger pools of proper- Steven Weilbach, a senior managing director at Cushman & ties,” McAuliffe said. He noted there are several large apartment Wakefield and head of the apartment team. “If they’re already portfolios under contract and set to close in the second half, and in, say, South Florida, next they’ll consider moving outwards to a handful of multi-property offerings about to be launched in the a Tampa or Orlando, which have modestly higher yields but are next 30 days. “I think the portfolio volume is going to be much still primary metropolitan areas. They won’t leapfrog directly greater than what we’ve seen in recent years.” 

NEW DEALS

Apartments in Washington State pany expanded the center and boosted occupancy to 96.7%. It added stores such as Dick’s Sporting Goods, Gordmans and JRK Investors has acquired a sprawling apartment com- Panera Bread to the original tenants, which included Bed plex in Tacoma, Wash. The Los Angeles fund shop last week Bath & Beyond and Petco. Cottonwood Commons is at 3601 paid $64.5 million, or about $90,000/unit, for the 714-unit Old Airport Road NW, about 10 miles north of downtown Westridges, a garden-style property about six miles from the Albuquerque. center of the city. The 62-building complex, at 2602 Westridge Avenue, was developed in 1991 and features swimming pools Long Island Office Properties and other recreational facilities. Units have balconies or patios, and some have fireplaces.Jones Lang LaSalle brokered the sale A joint venture between Ivy Equities and CenterSquare for Equity Residential Properties of Chicago. Investment this month sold two office complexes totaling 397,000 square feet on New York’s Long Island for $39.25 New Mexico Power Center million, or $99/sf. Colliers International brokered the deal. The buyer was Matrix Realty of Smithtown, N.Y. The 214,000-sf Cole Real Estate Investments last week completed Crossroads Corporate Center, at 1363-1393 Veterans Memorial its $35 million purchase of Cottonwood Commons, a Highway in Hauppauge, and the 183,000-sf Crossroads 192,000-square-foot power center in Albuquerque, N.M. The Executive Center, at 1707-1797 Veterans Memorial Highway Phoenix company’s initial annual yield will be just under 7%. in Islandia, are less than a mile apart and about 45 miles CBRE marketed the center for Columbus Pacific Properties east of Manhattan. Ivy, an investment shop in Montvale, N.J., of Santa Monica, Calif. Columbus acquired the property in and CenterSquare, the Plymouth Meeting, Pa., firm formerly 2010 when it was half as big and 84% occupied. The com- known as Urdang, bought them in 2004 for $41 million.  Tomorrow’s Opportunities

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You can also start your free trial at REAlert.com, or fax this coupon to: 201-659-4141. To order by phone, call 201-659-1700. Or mail to: Real Estate Alert, 5 Marine View Plaza, #400, Hoboken, NJ 07030. July 31, 2013 Real Estate 13 ALERT ESPN Campus in Conn. on the Block Chicago, San Francisco, suburban Washington, Boston and Atlanta. After the condo market collapsed in 2007, Crescent A Bristol, Conn., office property leased to ESPN is up for sale. acquired a handful of high-profile projects from competitors The 410,000-square-foot complex could attract bids of about that ran into trouble, including Starwood and developers that $50 million, or $122/sf. At that price, the buyer’s initial annual turned over properties to Corus. yield would be about 6%. The owner, Winstanley Enterprises of The 13 complexes in the Starwood-FDIC portfolio encom- Concord, Mass., has given the listing to HFF. pass 3,486 units, but 358 were previously sold as condos, so ESPN has a triple-net lease until 2022 on the 401,000-sf Crescent and Winthrop are acquiring 3,128 units in total. main building and a 6,000-sf storage building. The lease carries Crescent is taking nine properties with 2,367 unsold units. annual rent increases. Five complexes are in Las Vegas: The 37-acre site also includes a 2,800-sf building leased as a • The 372-unit Spanish Palms. Built: 1997. Condos sold: 184. bank branch, a cell tower that generates revenue, 1,171 parking • The 359-unit One Las Vegas. Built: 2008. Condos sold: 64. spaces and permits for 500 more, and land suitable for addi- • The 341-unit Juhl. Built: 2009. Condos sold: 35. tional development. • The 275-unit Ogden. Built: 2008. Condos sold: 27. The complex is at 383 Middle Street, about a mile from • The 272-unit Loft 5. Built: 2006. Condos sold: 31. ESPN’s headquarters, at 545 Middle Street in Bristol. The sports The other properties, completed between 2009 and last year, network houses its technology, sales and advertising depart- are the 395-unit Element in Tampa (no condos sold), the 332- ments at the campus. unit Lex in Chicago (three condos sold), the 271-unit Apex in The campus was developed in 1960 and renovated by Win- Los Angeles (no condos sold) and the 94-unit Mezzo in Atlanta stanley in 2003 and 2004. In recent years, ESPN has poured (no condos sold). millions into the property, constructing a $10 million state-of- Winthrop has agreed to buy four properties with 761 units. the-art restaurant and cafeteria and a $7 million data center.  Units were previously sold at only one of the properties — the 198-unit 44 Monroe complex in Phoenix (14 condos sold). The remaining properties, completed in 2008 or 2009, are: Buyers ... From Page 1 • The 396-unit Mosaic 2 in Houston. the condo market subsequently crashed. The properties ended • The 92-unit Highgrove in Stamford, Conn. up in the hands of the FDIC after Corus failed in 2009. The • The 89-unit San Pedro Bank Lofts in San Pedro, Calif. FDIC then formed a partnership with private investors led by The FDIC will share the profits from the sales with Star- Starwood, which took over management of the complexes and wood, a high-yield investment firm in Greenwich, Conn., and prepared them for sale. The units are now being rented. its partners — TPG Capital of Fort Worth, Texas, Perry Capital Market pros were surprised when American Invsco emerged of New York and WLR LeFrak, which is a joint venture between as the original winner. The company, while an active condo LeFrak Organization and WL Ross and Co., both of New York. developer since 1969, had never completed such a large acqui- Starwood and its private-sector partners operate under the sition. And its bid was well above the second-best offer. name ST Residential.  American Invsco put up a $6 million nonrefundable deposit to gain an exclusive negotiating window with the Starwood partnership. Deutsche Bank agreed to arrange an $800 million debt package for the purchase, part of which would have been funded by Winthrop, an opportunistic shop that invests in debt and equity. American Invsco then tried to raise the roughly Decision-Makers $150 million of equity needed to close the deal, but was unable Scour This Space to do so. American Invsco ended up forfeiting its $6 million deposit. However, an additional $150 million that it put in escrow Do you sell products or services to the real estate was returned. American Invsco had borrowed that cash from investment community? Deutsche and Winthrop and had to pay interest on it. Once American Invsco dropped out, Winthrop, which You can take dead aim at your target market by became familiar with the properties through its alignment advertising in Real Estate Alert, which is devoured with Deutsche on the prospective debt package, entered nego- each week by the highest-spending decision makers in tiations with the Starwood team to buy some of the properties. the business. Crescent also entered into talks. The company, which was formed in 1996, has focused on the development of luxury For more information, contact Mary Romano at high-rise residential properties and the conversion of apart- 201-234-3968 or [email protected]. ments to condos. It quickly expanded beyond its South Florida Or go to REAlert.com and click on “Advertise.” roots, developing condo and apartment projects in New York, July 31, 2013 Real Estate 14 ALERT Shop Eyes Value-Added Plays in Texas principals are Maury Bronstein, Nick Howard and John Wall. BHW has already raised $10 million from friends and A new company led by the founders of due-diligence firm wealthy investors for a property fund called Tricoastal Partners Situs Cos. will soon begin soliciting up to $50 million of equity 08, which is nearly fully invested. Marketing for the new fund for a property fund. will begin within a few months. BHW’s principals will continue BHW Real Estate of Houston will shoot for value-added to tap their relationships with wealthy individuals to raise returns by acquiring retail, office and industrial properties, capital.  as well as land. The geographic focus will be Texas, with an emphasis on Houston. The investment manager will target properties of up to NEW DEALS 500,000 square feet with a distressed profile, such as poor management, physical problems or a capital-squeezed owner. Louisiana Multi-Family Complex With leverage, the as-yet-unnamed fund could have some $200 million of buying power. Individual investments typically Apartment specialist Hamilton Point Investments this month will be less than $10 million. BHW hopes that by targeting rela- paid $15.9 million for a foreclosed apartment complex in Den- tively small assets, it will avoid competition with institutional ham Springs, La., a suburb of Baton Rouge. The deal valued the investors currently clamoring to invest in Houston, particularly 264-unit Live Oak Trace at $60,000/unit. The seller was special in the booming Energy Corridor submarket. servicer Ocwen Financial, which took control of the property BHW was formed earlier this year by five former staffers last year after the owner defaulted on aFannie Mae mortgage. of Houston-based Situs, which offers due diligence, servicing The complex, built in 2002, is at 7615 Magnolia Beach Road. and advisory services. Among them are Martin Bronstein and The purchase is the first for Hamilton Point’s latest vehicle, HPI Ralph Howard, who launched Situs in the mid-1980s and sold Real Estate Opportunity Fund 3, which has an equity goal of it in 2011to Helios AMC, a San Francisco servicer controlled $40 million. The Old Lyme, Conn., operator focuses on buying by Ranieri Partners of Uniondale, N.Y. BHW’s other three foreclosed properties from special servicers.  HEALTHCARE Real Estate WEST Do you Invest in Healthcare and Medical Office Real Estate? DON’T FORGET TO MENTION DISCOUNT CODE “HSP” FOR 10% SAVINGS SOME OF THE MORE THAN 35 REAL ESTATE OWNERS CONFIRMED TO SPEAK TO DATE INCLUDE: Then There’s Somewhere You Need to be on March 20th. Mark Tronstein, Vice President, Andell Inc. Ed Ratinoff, Member, James Investment Partners Michael D. Mayer, Managing Member/CEO, Scott Berg, Executive Director, Associated Ventures LLC Morgan Stanley Real Estate Investing Active in the apartment market Nevin Sanli, Managing Director & Founder, Kev Zoryan, Managing Director, Astrum Investment Management Morgan Stanley Real Estate Investing Steven M. Jaffe, Executive Vice President, Charles P. Toppino, President, in Dallas, Houston, San Antonio B.H. Management Inc. Oak Pass Capital Management LLC Andrew B. Brog, Managing Director,Brog Properties Jim Reynolds, Senior Vice President, OliverMcMillan Ronald Haft, Chairman & Founder, Joel Mayer, Managing Director, Head of Retail, or Austin? Combined Properties Rockwood Capital, LLC Tom Naughton, Chief Investment Officer, Ashish Khatana, EVP, Acquisitions and Development, Clearview Hotel Capital, LLC The Shopoff Group David Lynn, Executive Vice President-Chief Investment Robert E. Lee, Managing Principal, SIG Equity Strategist, Cole Real Estate Investments Gregor Watson, Principal, 643 Capital Management Then get yourself to Dallas on August 29th for Charles F. Cowley III, President, Bob Sonnenblick, Chairman, Cowley Real Estate Partners Sonnenblick Industries LLC the one event that brings together the leading Kenneth E. Nitzberg, Chairman & CEO, James M. Kozak, President, Devon Self Storage Holdings (US) LLC Strategic Land Partners L.P. investors, developers, owners/operators, lenders, Jay Glaubach, Director, DLJ Capital Partners Eddie Lorin, Managing Partner, CoFounder, Peter Kutzer, Managing Partner, Strategic Realty Capital LLC investment sales brokers and architects EdgewoodRealty Partners Jerome A. Fink, Managing Partner, Jeffrey Eisenberg, CEO, Eisenberg Partners, LLC The Bascom Group, LLC from all four markets Martin Caverly, Chief Executive Officer, Max Sharkansky, Managing Principal, TrionProperties EVOQ Properties Jeffrey B. Reder, Senior Vice President, Acquisitions, Steve Cameron, President, Foremost Communities Urdang Capital Management Andrew Yoon, Chief Operating Officer and a Dean Pentikis, Managing Partner, For full agenda, speaker and registration information go to Managing Director, GreenOak Watt Investment Partners Jeffrey Seltzer, Principal, Highpoint Capital, LLC Scott Chernoff, Principal, Leslie Lundin, Managing Partner, Westport Capital Partners, LLC LBG Realty Advisors, LLC interfaceconferencegroup.com/mftexas2013 Web: http://www.imn.org/bfwest2013 Registration Info: Call: + 1 212-224-3428 Email: [email protected] REMEMBER TO QUOTE “HSP” TO SAVE 10% ON YOUR BOOKING! For more information contact Alicia Lewis, 404-832-8262, [email protected] July 31, 2013 Real Estate 15 ALERT

MARKET SPOTLIGHT San Francisco-Area Hotels  Sales of large properties are on pace to at least match last year’s $867 million tally, according to Real Estate Alert’s Deal Database, which tracks trades of at least $25 million. That’s still well below the $1.5 billion record, set in 2006.  The virtual absence of construction since 2008 has kept a lid on supply. Next year, 174 rooms are expected to come on line, inching the inventory up to roughly 34,000 rooms, according to Jones Lang LaSalle.  Demand for rooms in downtown San Francisco should get a boost in 4-5 years when two major projects are completed: A $500 million expansion of Moscone Convention Center and the construction of the $4 billion Transbay Transit Center. On the Market Hit No. of Estimated Value Property Seller Market Rooms ($Mil.) (Per Rm.) Broker JW Marriott San Francisco (leasehold) Thayer Lodging July 337 $145 $430,000 Eastdil Secured Radisson Fisherman’s Wharf (leasehold) Square Mile Capital June 355 150 422,000 Jones Lang LaSalle St. Regis San Francisco Starwood Hotels & Resorts May 306 140 530,000 Eastdil Secured Serrano Hotel Cornerstone Real Estate June 236 65 275,000 Eastdil Secured Carneros Inn, Napa (Unidentified family) May 86 60 698,000 Eastdil Secured Doubletree Berkeley Marina (leasehold) Wesmont Hospitality, partner July 378 50 132,000 Jones Lang LaSalle Recent Deals No. of Sales Price Property Buyer Closed Rooms ($Mil.) (Per Rm.) Broker Ritz-Carlton San Francisco Thayer Lodging June 336 $161 $479,000 Eastdil Secured Hyatt Fisherman’s Wharf Chesapeake Lodging June 313 104 331,000 Jones Lang LaSalle Fairmont Sonoma (75% stake) Carey Watermark Investors July 226 98 434,000 (None) Hyatt Andaz Napa (Unidentified) (Pending) 141 70 496,000 Eastdil Secured Vantaggio Suites Cosmo RLJ Lodging June 150 30 197,000 (None) Note: For the deal involving a stake, the total size and value of the property are shown.

CALENDAR CALENDAR

Main Events Dates Event Location Sponsor Information Sept. 17-20 Lodging Conference 2013 Phoenix Lodging Unlimited lodgingconference.com Oct. 7-9 Expo Real Munich Messe Munchen www.exporeal.net Oct. 7-9 Development ‘13 San Diego NAIOP www.naiop.org Nov. 5-8 ULI Fall Meeting Chicago ULI www.uli.org Nov. 13-15 REIT World San Francisco NAREIT www.reit.com

Events in US Dates Event Location Sponsor Information Aug. 6-8 Market Navigator San Francisco IREI www.irei.com Aug. 8 Future of the Seattle Waterfront Seattle Bisnow www.bisnow.com Aug. 13 Retail Real Estate Summit Santa Monica, Calif. Bisnow www.bisnow.com Aug. 14-16 Single Family Housing Investment Conference San Diego FICON www.ficonevents.com Aug. 15 Westchester Fairfield Counties White Plains, N.Y. Real Share www.globestreet.com Aug. 20 Hotel & Gaming Investment Summit Philadelphia Bisnow www.bisnow.com Aug. 22 Capital Markets Summit Dallas Bisnow www.bisnow.com Aug. 22 Orange County Irvine, Calif. Real Share www.globestreet.com To view the complete conference calendar, visit The Marketplace section of REAlert.com

July 31, 2013 Real Estate 16 ALERT

THE GRAPEVINE who joined the brokerage as a manag- that he spent nearly five years withAMB ing director this month, will cover Property of San Francisco. DDR owns ... From Page 1 San Antonio as well as Austin. Taylor and manages 450 retail properties in previously spent six years at Jones Lang the U.S., Puerto Rico and Brazil. moved on to other firms are Bill Prutting LaSalle, where he was a senior vice pres- and Bruce Strasburg. ident and led capital-markets efforts in Acquisitions analyst Jeremy Basloe has Central Texas. Before that, he had stints leftRialto Capital’s New York office and Avison Young has added a senior vice with Trammell Crow and CBRE. is headed for apartment giant Equity president to its New York capital- Residential Properties’ office in Santa markets team. David Krasnoff started Quito Anderson has rejoined Ben Carter Monica, Calif. Basloe will start at the within the past month, tasked with Enterprises of Atlanta as chief executive. end of August as a senior analyst for placing equity and debt for institu- Anderson took on the post in the past investments, helping to source and tions and wealthy individuals. Kras- month or so. He previously spent four underwrite acquisitions for the Chicago noff spent the past two years as a vice years as general counsel and executive REIT. He spent two years at Rialto, the president at Jones Lang LaSalle in vice president at the development firm, Miami-based investment and asset- Manhattan. He has also had buyside leaving last year for the Atlanta office of management subsidiary of homebuilder stints at Glacier Global Partners and law firmSutherland Asbill, where was a Lennar. Ark Investment, both of New York. member of the real estate group. Toronto-based Avison Young has been Investment shop Griffin Capital is look- slowly building its U.S. operation since Dan Sutherland joined DDR this month ing to hire a senior acquisitions analyst 2009, initially focusing more on leas- as a vice president of capital transac- at its El Segundo, Calif., headquarters. ing, property management and other tions. He will work on acquisitions The recruit would focus on the firm’s services than on brokering properties west of the Mississippi River for the flagship vehicle, Griffin Capital Essen- and debt. retail REIT, based in Beachwood, Ohio. tial Asset REIT, but would also work Sutherland joined the company from on joint ventures. Candidates should HFF has added a veteran investment- Terramar Retail Centers of Carlsbad, have 2-4 years of experience in capital sales broker at its Austin outpost, Calif., where he spent three years and markets and acquisitions. Resumes can which it opened in 2011. John Taylor, was a director of acquisitions. Prior to be sent to [email protected].

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