Commercial Real Estate Finance

Posts Tagged ‘commercial real estate finance’

Back in October, I had the pleasure of attending the Philadelphia Real Estate Council‘s fourth quarter round table, where the topic was a departure from the group’s usual fare (capital markets, urban development opportunities, valuation). The subject of this meeting was “Social Media and Real Estate.” Three guest speakers shared their experience with social media, its challenges and opportunities. The underlying question throughout this conversation was this: when it comes to commercial real estate (in all of its forms), what is the ROI for social media marketing?

I’ve tackled this subject before, here on the Llenrock Blog, and I’m going to save us all a lot of hand-wringing by saying this: It is impossible to know the ROI for social media marketing, in commercial real estate or anything else.

So let’s stop talking about social media in these terms. It’s difficult to calculate the value of social media for the same reason it’s difficult to calculate the value of any marketing/advertising. There’s a lot of guess work, but we know when it works. And that’s the point all those people in the social media business (myself included) are trying to make: even if we can’t make a direct connection between a company’s online presence and annual income, a connection still exists. Read the rest of this entry »

Mad Money’s Jim Cramer rolls up his sleeves and actually sits down to discuss consumer confidence and retail opportunities with Kimco (NYSE: KIM) CEO David Henry: 

Read the rest of this entry »

Obviously, I should have done this list before Halloween, but better late than never. This is based on CNBC‘s ranking of U.S. cities with decreasing real estate occupancy (and, presumably, declining populations).

Here are the Top 10 Emptiest U.S. Cities in 2012:

10. Toledo, OH: Rental vacancy rate: 11.5%. Homeowner vacancy rate: 3.8%. 

 As a supplement to our usual post schedule, here’s some exciting news about Llenrock’s most recent completed transaction, presented via press release:

LLENROCK GROUP ANNOUNCES THE CLOSING OF $6 MILLION IN PERMANENT FINANCING FOR FAIRFIELD INN & SUITES IN CENTRAL PENNSYLVANIA

PHILADELPHIA, PA (November 7, 2012) – Llenrock Group, an independent real estate finance and advisory firm, is pleased to announce it has secured a total of $6,000,000 in permanent financing for a Fairfield Inn & Suites by Marriott near Harrisburg, PA.

Located just outside Pennsylvania’s capitol, The Fairfield Inn & Suites is easily accessible from the Pennsylvania Turnpike and other major throughways. The 3-story hotel features approximately 80 rooms and suites, complimentary high-speed Internet in guestrooms and public areas, an indoor pool, whirlpool spa, and fitness center. Llenrock Group secured the 10-year, $6,000,000 financing from C-III Capital Partners. The deal closed quickly thanks to the hotel’s strong performance and optimal market.

Andrew Benioff, Founder and Managing Partner of Llenrock Group, attributes the smooth completion of this deal to the increasing strength of the capital markets. Mr. Benioff comments, “Thanks to recent improvements in the capital markets, particularly the CMBS market, we were able to complete this deal quickly and easily.”

The hotel benefits from nearby market drivers such as state government offices, Hershey Park, the Pennsylvania Farm Show Complex, and Pennsylvania Dutch Country. 

About the Company

Llenrock Group is an independent real estate advisory and investment banking firm in Philadelphia. Through its subsidiaries, Llenrock Advisors and Llenrock Realty Partners, they provide services in investment sales, direct investment, and structured finance. For more information, please contact  Eric Hawthorn at ehawthorn [at] llenrock [dot] com or visit Llenrock.com.

Week in Review for October 20 – 26:

 - As Hurricane Sandy, popularly known as Frankenstorm, roars toward the East Coast, analysts and investors continue to debate the potential outcomes of the government’s fiscal cliff. According to the Washington Post, many consumers remain undaunted by the possibility of a double-dip recession in 2013, suggesting this year’s holiday shopping season will be unaffected by Congressional gridlock and economic uncertainty.

- At the Philadelphia Navy Yard, an ongoing office development in South Philadelphia, Ensemble Hotel Partners begins work on a five-story Courtyard by Marriott hotel. The Navy Yard, a large-scale development spearheaded by Liberty Property Trust (NYSE: LRY) and the Philadelphia Industrial Development Corp., includes tenants such as Urban Outfitters (NASDAQ: URBN) and GlaxoSmithKline (NYSE: GSK).

- In Center City Philadelphia, Crown Properties sells its 88% stake in the 20-story, class A Two Penn Center to a joint venture for $66 million. The buyers, Optibase, Inc. and private investor Alex Schwartz, acquired the property for around $135/SF, says CoStar.

- Blackstone Group (NYSE: BX) and office park developer Embassy Property Developments pursue a REIT IPO on the Singapore Stock Exchange. Read the rest of this entry »

Marc Halle of Prudential Global Real Estate (NYSE: PRU) discusses CRE opportunities in emerging markets such as Brazil, where increased income is driving the local retail sector:

Read the rest of this entry »

From InvestmentNews, with data courtesy of MTS Research Advisors, here’s a ranking of the Top 10 Largest Nonlisted Closed REITs:

Note that this ranking appears in an article published back in June, reflecting total asset values from 4Q 2011. This is not a definitive list, but the best we can do with what data is available…

10. KBS REIT II (invested assets at year end, in millions: $3,008.9)

9. Dividend Capital Total Realty Trust ($3,029.3)

8. CNL Lifestyle Properties ($3,087.8)

7. Cole Credit Property Trust II ($3,368.7)

6. KBS REIT ($3,644.0)

5. Corporate Property Associates 16 Global ($3,708.3)

4. Behringer Harvard REIT I ($4,431.1)

3. Wells REIT II ($6,119.9) Read the rest of this entry »

The results are in from our latest poll! Looks like we’re divided when it comes to the future of shopping malls…

See our previous polls here.

Based on data from Jones Lang LaSalle (NYSE: JLL), which has released a lot of great info on the world’s most “transparent” CRE markets (i.e., those with the most available/accessible data), here’s a ranking of the Top 10 Most Transparent Real Estate Markets in the Americas:

10. Costa Rica

9. Cayman Islands

8. Argentina

7. Chile

6. Mexico

5. Puerto Rico Read the rest of this entry »

Michael Levin

Chief Operating Officer

Fameco Real Estate

Michael Levin joined Fameco Real Estate, L.P. in 2007 as Chief Operating Officer.  As COO, Michael oversees all aspects of Fameco’s operations, with particular focus on the Brokerage Division.  In 2008, Michael was instrumental in opening the Fameco office serving central and northern New Jersey and he continues to oversee the operation of that office. In 2011, he opened the Center City Philadelphia office for Fameco to better serve its Center City clients.

Michael previously served as Executive Vice President, Real Estate and Operations, at Five Below and Sr. Vice President of Real Estate and Operations at Zany Brainy. He led the national store roll out campaigns for both these start-up ventures. At its peak, Zany Brainy operated 188 stores in 34 states. He opened Five Below’s first store in 2002 and then led its expansion to 60+ stores along the eastern seaboard before joining Fameco.

Michael brings over 25 years of retail real estate, executive management, and legal experience to Fameco.  He is a magna cum laude graduate of the University of Connecticut,where he majored in Economics with a minor in Business Administration.  He went on to receive his J.D. with honors from the University of Maryland School of Law. Michael is an active member of the ICSC and sits on the Board of Tristate Brokers Commercial Alliance, Inc.

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Q: Tell us how you got involved in retail real estate, as opposed to another sector or asset type within this industry. 

I have always had a strong interest in real estate. Early in my career I decided to attend the University of Maryland Law School with the goal of practicing real estate law. During and following law school, I went to work for a Baltimore, MD law firm called Frank, Bernstein, Conaway and Goldman. From the beginning of my tenure with Frank, Bernstein I was very involved in shopping center leasing, representing both landlords (such as the Rouse Company) and retailers (such as Brookstone and Jos. A. Bank). Read the rest of this entry »