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THE GRAPEVINE

Two industry pros have launched GEM Equity Markets, an investment and advisory shop in Bethesda, Md. The firm spun out last month from boutique brokerage Greysteel, where the platform was called Greysteel Equity Markets. Its principals are Matthew Schwartz, a co-founder of Washington-based Greysteel, and Andrew Weiss, a former managing director at Cantor Fitzgerald. Schwartz and Ari Firoozabadi formed Greysteel in 2011 after working together at Marcus & Millichap. Weiss, who spent the past year running his own Bethesda firm, previously worked at CIM Group, Meridian Capital and Ackman-Ziff Real Estate.

Development pro Jeff Dvorett joined Midwood Investment & Development of

12 RANKINGS: MULTI-FAMILY BROKERS

2 Mixed-Use Building Marketed in NY

2 DRA Showing Orlando-Area Offices

2 Penwood Shops Fifth Industrial Fund

2 Multi-Family Buyer Rounds Up LPs

5 Oceanfront High-Rise Near LA Listed

6 DC Offices Provide High-Yield Play

6 Fortress Pitches Jacksonville Hyatt

8 Fund to Target Distressed Real Estate

10 Hines Shows Apartments Near Boston

10 New Atlanta-Area Warehouse for Sale

17 Mass. Industrial Package Available

18 Mixed-Use Savannah Package Listed

18 Redevelopment Play in Downtown SF

Multi-Family Sales Up 8%; CBRE Keeps CrownSales of large apartment properties climbed 8.2% last year to another record,

with volume nearly doubling the last cycle’s peak.Some $95.4 billion of rental properties worth at least $25 million traded in 2016,

according to Real Estate Alert’s Deal Database. The increase was modest compared to the 32% jump from 2014 to 2015. But as office, retail and hotel trading slowed in 2016, the continued growth in apartment sales showed that the asset class, once an afterthought, is now the darling of investors. At the peak of the last cycle, in 2005, only $52.1 billion of properties traded.

Market pros said the flow of listings is off to a somewhat slower start this year, as owners took a yearend pause to assess the impact of rising interest rates and the new administration in Washington. But most said investor enthusiam remains strong, and they expect activity will be in high gear by the second quarter.

CBRE was again the top broker of rental properties, closing $23.4 billion of sales, See MULTI-FAMILY on Page 13

NY Rental Building With Supermarket ListedA luxury apartment building with a Whole Foods Market on the ground floor is

for sale on Manhattan’s Lower East Side.The 14-story property, at 229 Chrystie Street, could attract bids of up to $550

million. The owner, Ashkenazy Acquisition of New York, might consider selling the residential and retail portions separately. HFF has the listing.

The 361-unit apartment component is valued at $375 million to $400 million, or up to $1.1 million/unit. It is 96% occupied. The retail space leased to Whole Foods could be worth roughly $150 million.

The property, called The Chrystie, was built in 2005. Ashkenazy acquired it in the fall of 2015 for $365 million.

While multi-family valuations have since risen in Manhattan, the sector is facing some headwinds. Rents are falling, and concessions have become more common. Ashkenazy, for example, is currently offering one free month of rent on new leases

See SUPERMARKET on Page 17

Brennan Retools Industrial Portfolio OfferingAfter failing to strike a deal on a massive industrial portfolio it shopped last year,

a Brennan Investment partnership has carved out a smaller group of properties for a listing that could fetch about $170 million.

The new offering encompasses 24 fully leased, single-tenant properties totaling 3.4 million square feet across 13 states, with heavy concentrations in the Southeast and Midwest. At roughly $50/sf, a buyer’s initial annual yield would be 8%.

Brennan, an industrial-property shop in Rosemont, Ill., and its partner, Arch Street Capital of Greenwich, Conn., have given the assignment to Colliers International. The sellers will likely accept bids only on the entire offering rather than individual properties or smaller pieces. Brennan, which has roughly a 10% stake, is interested in staying on as an operating partner, but that isn’t a precondition of a sale.

The listed properties were part of an 11.7 million-sf portfolio Brennan marketed via Eastdil Secured last spring. At the time, it was thought that the package, which

See BRENNAN on Page 19

FEBRUARY 8, 2017

Mixed-Use Building Marketed in NYParamount Group is quietly pitching an office/retail building

in Manhattan as a leasing play.The 75,000-square-foot property, at the northeast corner of

Broadway and Bond Street, is valued at roughly $160 million. Paramount’s broker, Eastdil Secured, has started selectively marketing the five-story building.

Roughly 60% of the space is leased, primarily to an Equinox fitness center.

Most of the vacant space is on the top two floors. A buyer would likely lease those floors to a single tenant and add ame-nities on the roof to boost the asking rent. The marketing campaign is touting the 16-foot ceilings, arched windows and exposed brick. Also, there is a separate entrance and a dedi-cated lobby for the top floors.

The building, on the border of the Greenwich Village and NoHo neighborhoods, was constructed in 1837 as the manu-facturing headquarters of Brooks Brothers. Paramount bought it in 2015 for $112 million from local owner FDR Industries.

The New York REIT then emptied out the building and spent millions of dollars repositioning it. The mechanical sys-tems were upgraded, an elevator was removed, the entrance on Broadway was eliminated and separate entrances were cre-ated on Bond Street for the lower and upper portions of the building.

Paramount then recruited Equinox, which leases roughly 35,000 sf on the lower three floors and in the basement. There are three vacant retail blocks on the first floor.

The property’s historical address was 670-674 Broadway, but Paramount legally changed it to Zero Bond Street. It is the only building in Manhattan with zero as the number in its address, according to the marketing campaign.

DRA Showing Orlando-Area OfficesDRA Advisors is marketing a suburban Orlando office com-

plex that could fetch $145 million.The 662,000-square-foot property is part of the mixed-use

Colonial TownPark development, in Lake Mary, Fla. At the esti-mated value of $219/sf, the buyer’s initial annual yield would be 6.5%. Cushman & Wakefield is representing New York-based DRA.

The Class-A complex, called Colonial Center at TownPark, is 96.9% leased at rents that average $23.12/sf, or 8.4% below the property’s current asking rate. The marketing pitch is that a buyer could raise rates as leases roll over.

The 25 tenants have a weighted average remaining lease term of 4.3 years. They include BNY Mellon, Fiserv and Hartford Fire Insurance.

The 4.6-million-sf Lake Mary/Heathrow submarket had an overall 86.5% occupancy rate at yearend, but Class-A space was 91.7% leased, up 2.1 percentage points from yearend 2015. The average Class-A asking rent in Greater Orlando was $24.12.

The four-building complex, built between 2001 and 2006, is near the intersection of Interstate 4 and H.E. Thomas Jr. Parkway.

The Colonial TownPark development is described as a

“live-work-play” community with 1 million sf of office space, 200,000 sf of retail space anchored by grocer Publix, and 500 apartments. Several hotels with a combined 800 rooms are within walking distance.

Penwood Shops Fifth Industrial FundPenwood Real Estate Investment is soliciting $300 million of

equity for its fifth and largest industrial fund.The vehicle, Penwood Select Industrial Partners 5, would

shoot for an 11-13% return by acquiring and developing indus-trial properties, mostly warehouses. Some 70% of the capital is expected to be deployed for buying, leasing and renovating properties, with the rest going for development.

The fund operator targets investments in Southern Califor-nia, Northern New Jersey and Central Pennsylvania. It often forms joint ventures with local operators that manage the properties. With leverage, the vehicle would have some $600 million of investment capacity.

Hartford-based Penwood was formed in 2003 by principals Richard Chase, John Hurley and Karen Nista, all alumni of Cigna.

The shop’s first four funds raised a combined $727 million. The fourth vehicle held a final close in 2015 and has invested more than three-quarters of its $250 million of equity.

Investors in the fully raised funds include New York State Teachers, North Carolina Public Employees and Virginia Retirement System, according to Preqin. Penwood doesn’t use a placement agent.

Early on, Penwood put a heavier emphasis on develop-ment and targeted a 15% return. But the goal has declined as it increased its focus on income-producing properties.

Multi-Family Buyer Rounds Up LPsVeteran apartment-property investor Acacia Capital has fin-

ished raising capital for its latest fund.The San Mateo, Calif., firm held a final close for its Acacia

Property Corporation 2015 at yearend with $250 million of equity. With leverage, the vehicle could have more than $700 million of buying power.

The fund already has deployed about half of its equity. It aims for a return of 12-15%, mainly via purchases of income-producing apartment properties in the Western U.S. It also can buy homebuilding sites and finance acquisitions of such lots for builders.

Acacia doesn’t use a placement agent for its funds, instead approaching institutional investors, wealthy individuals and family offices on its own. Investors in the shop’s past funds include Robert Wood Johnson Foundation, according to Preqin.

Acacia launched its first fund in 1992. The most recent was Acacia Property Corporation 2012, which held a final close in 2013 with $170 million.

The company was founded in 1986 by Robert Larson and F. Wesley Clelland, both of whom continue to serve on its investment committee. Larson and Robert Leupold are co-chief executives. Todd Darling is chief operating officer.

February 8, 2017 2Real EstateALERT

This announcement appears as a matter of record only.

January 2017

Asana Partners Fund I LP US$500,000,000

Asana Partners Fund I, LP will target a range of retail real estate

locations in the U.S.

Hodes Weill Securities, LLC acted as global placement agent.

New York • Hong Kong • Londonwww.hodesweill.com • info@hodesweill.com

King & Spalding LLP acted as legal advisor.

www.kslaw.com

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Oceanfront High-Rise Near LA ListedA new waterfront apartment tower is about to hit the market

in Long Beach, Calif.The 223-unit Current, completed last spring, is about 90%

occupied. It’s the first high-rise built in Long Beach in 50 years and one of few waterfront rental properties developed in Greater Los Angeles this cycle.

Bids are expected to reach $140 million, or $628,000/unit. The owner, a partnership between Anderson Pacific of Chicago and San Diego’s Ledcor Properties, has given the marketing assignment to Moran & Co.

The 18-story building is at 707 East Ocean Boulevard, in Long Beach’s emerging East Village Arts District, home to a growing number of galleries, restaurants and nightspots. The city is pouring millions of dol-lars into redevelopment in the neighborhood, including a new civic center and library.

The Current has a mix of studio, one- and two-bedroom apartments that feature lami-nate-wood floors, stainless-steel appliances, quartz countertops and washer/dryers. Most have patios or balconies. Amenities, located mainly on the top two floors, include a rooftop pool and an open-air lounge with outdoor seating, a wet bar and a fire pit. There is a 24-hour fitness center with yoga and Pilates studios, a dog-washing station and a bicycle-mainte-nance area.

While a wave of construction is softening the fundamentals in some Los Angeles apartment markets, Los Angeles/South, which includes Long Beach, has seen only four large rental properties delivered in the last decade. The submarket’s aver-age occupancy rate is 96%.

CorrectionsThe ranking of the largest office deals in 2016, published Jan. 25, incorrectly reported that Constitution Square 3&4 in Washington sold for $421.8 million. A MetLife joint venture

paid $155 million for Building 3 and the land beneath the still-undeveloped Building 4. The joint venture will also pay up to $266.8 million to the seller to construct and lease Building 4, but that amount shouldn’t have been included in the price. Also, the transaction wasn’t unbrokered. Cushman & Wakefield represented the seller.

An item in The Grapevine on Feb. 1 misstated Karen Kasteel’s duties at Waypoint Residential, which she recently joined as a vice president. Kasteel focuses on marketing, not investor rela-tions.

February 8, 2017 5Real EstateALERT

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DC Offices Provide High-Yield PlayAfter filling some vacant space, CIM Group has once again

listed a Class-A office building in Washington that’s suitable for high-yield investors.

The 407,000-square-foot property, at 370 L’Enfant Prom-enade SW, is expected to attract offers of about $150 million, or $369/sf. Eastdil Secured has the listing again.

Los Angeles-based CIM originally put the property up for sale in 2015, but never struck a deal. While the occupancy rate was 90% at the time, a giant vacancy was looming: A divi-sion of the U.S. Department of Health and Human Services, the Administration for Children & Families, was preparing to exit its 187,000 sf, or 46% of the total space.

Last year, CIM recruited another federal agency — the Federal Bureau of Prisons — to occupy 113,000 sf for 15 years, starting this summer. That will push the occupancy rate up to 69%, although that’s still well below the 83% Class-A average in the sur-rounding Southwest submarket. Other tenants include Accenture, Battelle Memorial Institute, Energetics, SAIC and the Smithsonian Institution. The area is undergoing substantial development. Proj-ects include the Wharf, a 19-acre, mixed-use complex under con-struction along the Southwest submarket’s waterfront. A buyer of CIM’s property could seek to attract tenants priced out of the East End and Central Business District submarkets.

The 10-story building, also known as 901 D Street SW and the Aerospace Center, was completed in 1987. CIM acquired it

in 2005 for $178 million. The property has a rectangular shape and a distinctive marble-and-glass exterior. It boasts views of the Capitol Building, the Washington Monument and the Smithson-ian complex. There is parking for more than 400 cars.

Fortress Pitches Jacksonville HyattFortress Investment has listed a Hyatt Regency hotel in Jack-

sonville that it acquired from a special servicer three years ago.The 951-room Hyatt Regency Jacksonville Riverfront is

expected to attract bids of up to $135 million. At that valua-tion of $142,000/room, the buyer’s initial annual yield would be in the vicinity of 8%. The upper-upscale property, listed with Cushman & Wakefield, is being offered subject to a management contract with Hyatt Hotels & Resorts of Chicago that expires in 2031.

The estimated valuation is well below the price that the property traded for in 2007, when a Marathon Real Estate part-nership acquired it for $171 million from Oxford Lodging of San Francisco. Revenues plunged during the subsequent reces-sion, leaving the partnership unable to service its $150 million securitized mortgage or complete needed improvements. The partnership ended up surrendering the property to CWCapital, which represented the bondholders that owned the mortgage.

New York-based Fortress scooped up the hotel in 2014 at a bargain-basement price of $53 million and launched a $20 million renovation that updated the rooms and some common spaces. The improvements helped generate more group busi-ness, lifting revenues, according to marketing materials.

Financials for the property were unavailable, but upper-upscale hotels in the Jacksonville market were 68.5% occupied last year, up from 65.9% in 2015, according to STR. Rates aver-aged $161.72/room, up 3.7% from the prior year. That pushed revenue up almost 8% to $110.76/room.

The Hyatt Regency has 116,000 square feet of event space, making it one of the largest conference hotels between Atlanta and Orlando. There are multiple restaurants and bars, includ-ing a Morton’s Steakhouse. Other amenities include a rooftop pool, a fitness center, a business center and a FedEx office.

The property, which opened in 2001, is at 225 East Coastline Drive, on the north bank of the St. Johns River.

February 8, 2017 6Real EstateALERT

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Eastern Pennsylvania Shopping CenterPhillips Edison will realize an initial annual yield of 5.9% on its

$32.3 million purchase of an Easton, Pa., grocery-anchored shop-ping center. Palmer Town Centre is about 83% occupied, and the yield would rise to 7.7% once that rate hits 95%. Colliers Interna-tional brokered the yearend sale for Los Angeles tenant-in-com-mon operator Festival Cos. The 153,000-square-foot property, at South 25th Street and William Penn Highway, is anchored by a Giant Foods supermarket and Marshall’s. Easton is in Pennsylva-nia’s Lehigh Valley, some 55 miles north of Philadelphia.

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Expressing Gratitude to the Clients We Serve

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Fund to Target Distressed Real EstateAn investment firm that specializes in distressed real estate

is marketing an opportunity fund.Woodside Capital of Dallas is seeking to raise at least $100

million of equity for a vehicle that would acquire distressed properties and troubled debt. The manager focuses on small-balance deals of up to $10 million.

Woodside Special Opportunity Fund is targeting a 15% return. On the property side, it would concentrate on office, retail and industrial buildings that it can renovate, re-lease

or reposition. Its debt investments would include performing loans that it can buy at a discount, as well as nonperforming loans that provide a path to taking over the underlying col-lateral. The vehicle would also look to originate floating-rate bridge loans on transitional properties — those that need to be leased up or repositioned before qualifying for long-term financing.

This is the debut fund from Woodside, which was formed last year and so far has bought about $50 million of distressed assets with joint-venture partners. Twin Bay Partners of Dallas is the placement agent. The operator will charge a 2% manage-

ment fee. After investors receive an 8% preferred return, Wood-side would be entitled to 20% of profits.

The firm is telling inves-tors that by targeting relatively small-balance deals, it should face limited competition. Large investment shops that buy dis-tressed assets often go after big portfolios, while smaller local shops typically make only a hand-ful of purchases a year. “Mar-ket segmentation has created a unique opportunity,” according to the firm’s marketing materials.

Woodside is led by founder and managing partner Mark Hor-rell, along with partners Marcus Morriss and John Holt. Horrell previously was president and chief executive of FirstCity Finan-cial of Waco, Texas. Morriss also worked at FirstCity. Holt came from Calmwater Capital, a Los Angeles debt-fund shop.

February 8, 2017 8Real EstateALERT

www.IPAusa.com

MERGING INSTITUTIONAL AND MAJOR PRIVATE CAPITAL INTO UNMATCHED MARKET REACH

E X P E R I E N C E • E X P E R T I S E • E X E C U T I O N

MULTIFAMILY | RETAIL | OFFICE | INDUSTRIAL | STUDENT HOUSING | HEALTHCARE | CAPITAL MARKETS

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Hines Show Apartments Near BostonHines is shopping a luxury apartment building in suburban

Boston.The 200-unit Currents on the Charles, at 26 River Street in

Waltham, Mass., is expected to attract bids of $90 million, or $450,000/unit. At that price, the buyer’s initial annual yield would be 4.5%. JLL is representing Houston-based Hines, which completed the building in early 2015.

The occupancy rate is more than 90%.The mid-rise building encompasses a mix of studio to three-

bedroom apartments with quartz counters, stainless-steel appliances, walk-in closets, washer/dryers and patios or balco-nies. Community amenities include a heated pool, a dog-wash-ing station, electric-vehicle charging stations, a fitness center and a lounge with a two-sided fireplace.

The property, designated LEED silver, is across the street from the Charles River Greenway trail, near Route 128 and the Massachusetts Turnpike. It also is near an MBTA station with rail service to Boston, about 10 miles to the east.

Marcus & Millichap ranks Greater Boston as the third-stron-gest rental market in the U.S., behind only Los Angeles and Seattle. That’s up from 10th in 2016. While occupancy levels are down 10 bp from a year ago, to 96.7%, market participants expect the dip to be short-lived as a wave of development is absorbed. Rents rose 5.9% last year, even as the occupancy rate fell.

New Atlanta-Area Warehouse for SaleTrammell Crow is marketing a new warehouse in subur-

ban Atlanta that’s fully leased to a subsidiary of fast-growing e-commerce company Wayfair.

The 846,000-square-foot King Mill Distribution Center, in McDonough, Ga., could fetch about $48 million. At that $57/sf valuation, a buyer’s initial annual yield would be 5.25%. CBRE has the listing.

The triple-net lease to CastleGate Logistics runs until 2024 and is guaranteed by Wayfair. There isn’t a termination option, but there are three, five-year renewal options. The rent, now $3/sf, bumps up by 2% annually.

The property, at 130 Distribution Drive, was completed last year. It has high-quality features, including 36-foot ceilings, 185-foot-deep concrete truck courts, energy-efficient LED lighting and modern sprinklers.

Boston-based Wayfair is a home-goods online retailer founded in 2002. It has a market capitalization of $3.6 billion. The company launched CastleGate in 2015 to improve its distri-bution chain and speed delivery times by storing high-demand products in its own warehouses.

King Mill Distribution Center is in the Highway 155 corri-dor. Its competitive set, 51 bulk distribution buildings totaling 26 million sf, is 93% leased on average, slightly above the 92.2% overall rate for Atlanta’s 569.2 million-sf industrial market, according to marketing materials.

February 8, 2017 10Real EstateALERT

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February 8, 2017 12Real EstateALERT

Top Brokers of Multi-Family Properties in 2016 Brokers representing sellers in deals of at least $25 million

2016 Market 2015 Market Amount No. of Share Amount No. of Share ’15-’16 ($Mil.) Properties (%) ($Mil.) Properties (%) % Chg. 1 CBRE $23,423.4 454 28.1 $21,183.8 407 27.2 10.6 2 HFF 13,549.7 240 16.3 12,215.9 244 15.7 10.9 3 ARA Newmark 11,994.9 247 14.4 9,288.2 204 11.9 29.1 4 JLL 5,438.9 91 6.5 6,658.0 131 8.6 -18.3 5 Marcus & Millichap 4,645.5 98 5.6 3,248.4 74 4.2 43.0 6 Cushman & Wakefield* 4,248.4 94 5.1 1,218.0 30 1.6 248.8 Cushman & Wakefield (pre-merger) 2,696.4 60 3.5 7 Berkadia 3,948.0 95 4.7 2,975.1 78 3.8 32.7 8 Eastdil Secured 3,907.9 42 4.7 8,206.1 39 10.5 -52.4 9 Moran & Co. 3,233.5 47 3.9 2,168.1 33 2.8 49.1 10 Walker & Dunlop 2,240.7 36 2.7 1,720.0 29 2.2 30.3 11 Colliers International 1,028.5 25 1.2 880.6 22 1.1 16.8 12 Rosewood Realty 750.9 17 0.9 1,448.2 47 1.9 -48.1 13 Savills Studley 542.7 6 0.7 84.0 1 0.1 546.1 14 Ariel Property 502.6 49 0.6 115.0 1 0.1 337.0 15 Meridian Capital 456.2 4 0.5 0.0 0 0.0 16 Kidder Mathews 424.2 6 0.5 29.0 1 0.0 1,362.8 17 BlueGate Partners 363.8 4 0.4 258.3 3 0.3 40.8 18 Eastern Consolidated 305.6 10 0.4 448.6 19 0.6 -31.9 19 Transwestern 287.8 8 0.3 590.6 9 0.8 -51.3 20 JBM 243.7 4 0.3 219.2 4 0.3 11.2 21 Greystone 210.0 8 0.3 0.0 0 0.0 22 HFO 199.0 5 0.2 0.0 0 0.0 23 Gebroe-Hammer Associates 174.2 4 0.2 410.0 4 0.5 -57.5 24 Westwood Realty Associates 169.9 2 0.2 186.9 4 0.2 -9.1 25 Multi Housing Advisors 168.8 5 0.2 284.8 8 0.4 -40.7 26 GFI Realty 89.5 2 0.1 0.0 0 0.0 27 Kislak Co. 65.6 2 0.1 211.1 5 0.3 -68.9 28 Cignature Realty 65.0 1 0.1 0.0 0 0.0 29 Voda Bauer Real Estate 62.5 1 0.1 0.0 0 0.0 30 Hodges Ward Elliott 50.0 1 0.1 0.0 0 0.0 31 First Capital Realty 47.6 1 0.1 26.4 1 0.0 80.3 32 Brennan Realty 42.0 1 0.1 0.0 0 0.0 33 ABI Multifamily 40.0 1 0.0 28.0 1 0.0 42.9 34 TerraCRG 39.5 1 0.0 37.0 1 0.0 6.8 35 Blueprint Healthcare Real Estate 39.0 1 0.0 0.0 0 0.0 36 MSP Group 38.5 1 0.0 0.0 0 0.0 37 CREC 36.2 1 0.0 0.0 0 0.0 38 Madison Partners 34.1 1 0.0 62.0 1 0.1 -45.0 39 Inland Brokerage 34.0 1 0.0 0.0 0 0.0 40 SVN 33.5 1 0.0 0.0 0 0.0 OTHERS 103.7 4 0.1 972.8 28 1.2 -89.3 Brokered Total 83,279.4 1,614 100.0 77,870.4 1,483 100.0 6.9 No Broker 12,077.1 192 10,292.1 264 17.3 TOTAL 95,356.5 1,806 88,162.5 1,747 8.2

* DTZ acquired Cushman and assumed its name on Sept. 1, 2015. The $1.2 billion figure for 2015 is the total for DTZ and post-merger Cushman.

RANKINGS

Multi-Family ... From Page 1

up 11% from the previous year. The full-service behemoth has been on top every year since the annual ranking began in 2001. It took a 28.1% share of last year’s brokered trades, up from 27.2%, to remain far ahead of its competitors.

HFF again took the runner-up spot with $13.5 billion of sales, also an 11% increase, giving it a 16.3% market share. Close behind it, Newmark Grubb’s multi-family division, ARA Newmark, saw its volume grow 29%, to $12 billion, for a 14.4% share. Since acquiring Apartment Realty Advisors in 2014, Newmark has gone from being an also-ran to a solid No. 3, and last year cut the gap with perennial No. 2 HFF in half.JLL moved up a notch to fourth place despite an 18% dip in sales to $5.4 billion. And Marcus & Millichap’s Institutional Property Advisors platform logged a hefty 43% sales increase, to $4.6 billion, to move to fifth from sixth place. Eastdil Secured dropped back to eighth place

from fourth, which it had captured in 2015 largely due to the $5.5 billion sale of Stuyvesant Town/Peter Cooper Village in New York.

Worries about overbuilding — especially of luxury down-town rentals — have been growing over the last year or so. The steady stream of amenity-rich, high-priced apartments

appears to be dragging down rent growth in some markets, and that’s being reflected in falling sales volume. New York City’s sales plunged by more than a third last year, to $9 billion. San Francisco’s volume shrank to $161 million, a tenth of what it was two years earlier. The Boston, Philadel-phia and Northern Virginia markets — all with steady delivery of high-end units — saw sales decline amid softening rents.

Investors looking for growth potential have turned to older properties where they can upgrade amenities and boost rents, while still underpricing the newer properties.

“Eighty-five percent of renters cannot afford rents at the new Class-A buildings,”

See MULTI-FAMILY on Page 15

February 8, 2017 13Real EstateALERT

Multi-Family Property Sales by Market in 2016 Sales of at least $25 million

2016 2015 Amount No. of Amount No. of ($Mil.) Properties ($Mil.) Properties Top Brokerage in 2016

1 New York City $9,001.0 150 $13,673.8 212 CBRE 2 Denver Area 6,473.4 99 3,556.7 68 ARA Newmark 3 Atlanta Area 6,032.6 132 4,148.4 91 CBRE 4 Los Angeles Area 5,688.6 86 3,205.4 65 HFF 5 Central/Northern Florida 5,643.5 134 5,119.6 124 CBRE 6 South Florida 5,323.3 83 2,676.2 43 ARA Newmark 7 Seattle Area 4,192.3 74 3,524.0 71 CBRE 8 Phoenix Area 3,947.9 86 2,621.2 53 CBRE 9 Dallas Area 3,846.7 80 3,898.0 83 HFF 10 North Carolina 2,959.6 69 3,283.3 84 CBRE 11 Austin Area 2,905.8 54 2,009.1 45 CBRE 12 Houston Area 2,489.0 74 2,686.0 60 ARA Newmark 13 Portland Area 2,146.5 36 1,421.4 33 HFF 14 San Jose/Silicon Valley 2,039.6 20 1,375.9 15 Marcus & Millichap 15 Boston Area 1,926.6 32 2,385.6 35 JLL 16 Suburban Chicago 1,874.2 36 1,005.5 19 CBRE 17 Las Vegas Area 1,827.8 42 714.3 20 CBRE 18 Northern Virginia 1,698.1 20 2,793.0 29 Eastdil Secured 19 Maryland’s D.C. Suburbs 1,679.6 22 1,561.3 23 CBRE 20 Baltimore Area 1,670.1 35 1,062.7 18 CBRE OTHERS 21,990.2 442 25,441.1 556 TOTAL 95,356.5 1,806 88,162.5 1,747

RANKINGS

Multi-Family Sales Amount No. of ($Bil.) Prop.2007 $41.1 9552008 20.1 5082009 6.6 1692010 19.5 3872011 32.9 6942012 42.9 9162013 49.8 1,2742014 66.7 1,4962015 88.2 1,7472016 95.4 1,806

February 8, 2017 14Real EstateALERT

Top Brokers by Market 2016 Market Amount No. of ShareNew York City ($Mil.) Properties (%) 1 CBRE $1,660.9 8 21.3 2 Cushman & Wakefield 1,068.8 16 13.7 3 Eastdil Secured 889.0 4 11.4 4 HFF 739.2 8 9.5 5 Rosewood Realty 713.9 16 9.2 6 Ariel Property 502.6 49 6.4 7 Savills Studley 483.7 3 6.2 8 Meridian Capital 456.2 4 5.8 9 Eastern Consolidated 305.6 10 3.9 10 Marcus & Millichap 242.9 6 3.1 11 BlueGate Partners 211.3 1 2.7 12 Westwood Realty Associates 169.9 2 2.2 Other 357.6 7 4.6 Brokered Total 7,801.6 134 100.0 2016 Market Amount No. of ShareDenver Area ($Mil.) Properties (%) 1 ARA Newmark $1,735.7 25 36.3 2 CBRE 1,215.5 23 25.4 3 HFF 1,014.6 16 21.2 4 Moran & Co. 619.6 10 13.0 Other 191.7 5 4.0 Brokered Total 4,777.1 79 100.0 2016 Market Amount No. of ShareAtlanta Area ($Mil.) Properties (%) 1 CBRE $1,276.0 31 22.2 2 JLL 1,226.3 24 21.3 3 Cushman & Wakefield 889.4 24 15.5 4 Walker & Dunlop 837.8 16 14.6 5 HFF 753.3 11 13.1 6 ARA Newmark 262.1 6 4.6 7 Berkadia 229.8 6 4.0 8 Colliers International 109.0 3 1.9 Other 161.6 6 2.8 Brokered Total 5,745.3 127 100.0

2016 Market Amount No. of ShareLos Angeles Area ($Mil.) Properties (%) 1 HFF $1,574.9 16 31.1 2 Marcus & Millichap 1,197.1 23 23.6 3 Eastdil Secured 667.5 11 13.2 4 Moran & Co. 652.9 10 12.9 5 Berkadia 297.2 6 5.9 6 CBRE 199.8 4 3.9 7 ARA Newmark 147.2 2 2.9 8 Cushman & Wakefield 130.0 1 2.6 Other 195.6 4 3.9 Brokered Total 5,062.2 77 100.0 2016 Market Amount No. of ShareCentral/Northern Florida ($Mil.) Properties (%) 1 CBRE $1,929.4 47 35.5 2 ARA Newmark 1,032.0 22 19.0 3 HFF 821.1 25 15.1 4 Walker & Dunlop 498.5 7 9.2 5 Cushman & Wakefield 340.7 8 6.3 6 JBM 243.7 4 4.5 7 Berkadia 232.9 8 4.3 8 JLL 196.0 4 3.6 9 Marcus & Millichap 142.7 4 2.6 Brokered Total 5,437.0 129 100.0 2016 Market Amount No. of ShareSouth Florida ($Mil.) Properties (%) 1 ARA Newmark $759.6 14 32.3 2 Walker & Dunlop 517.9 6 22.0 3 CBRE 370.3 7 15.8 4 HFF 288.6 7 12.3 5 JLL 118.7 2 5.1 6 Eastdil Secured 117.0 1 5.0 7 Marcus & Millichap 104.2 2 4.4 Other 72.6 2 3.1 Brokered Total 2,348.9 41 100.0 2016 Market Amount No. of ShareSeattle Area ($Mil.) Properties (%) 1 CBRE $1,293.0 25 34.9 2 JLL 737.7 9 19.9 3 Kidder Mathews 424.2 6 11.5 4 Moran & Co. 347.5 5 9.4 5 Berkadia 321.1 8 8.7 6 ARA Newmark 221.7 5 6.0 7 HFF 135.0 1 3.6 Other 220.8 6 6.0 Brokered Total 3,701.0 65 100.0

RANKINGS

Multi-Family ... From Page 13

said Greg Campbell, senior managing director for acquisi-tions and dispositions with TruAmerica Multifamily of Los Angeles, a value-added player. “Developers are building to a rent level that has pushed renters to the brink of what they can afford.”

Still, ever-optimistic brokers and ever-cautious investors agree that construction has yet to dim the overall appeal of the multi-family sector.

“We have an economy that is ripping along right now . . . and expectations of wage growth and more consumer spend-ing,” said Kevin Kaberna, a senior managing director at Greystar of Charleston, S.C. Even in those markets with softening rent growth and occupancy, he and others think long-term pros-pects are sunny. Lower home-ownership rates have made for a larger tenant pool, and steady population growth is fueling household formation.

“On the demand side, things are still strong,” Kaberna said. “On the supply side, things could get a little bumpy, but that’s in the short term.” He said double-digit rent growth in some “gateway” markets is probably over for now, so investors seek-ing higher yields and value-added returns will have to hunt far-ther afield, in suburbs and secondary cities.

Money is already migrating away from the biggest core mar-kets. Investors last year poured capital into a handful of mar-kets they had been tepid about previously.

Greater Los Angeles, slower to emerge from the recession than other markets, roared to life with $5.7 billion of sales last year, up from $3.2 billion in 2015. The Denver area saw its volume nearly double, to $6.5 billion from $3.6 billion, as did South Florida ($5.3 billion from $2.7 billion).

Sales in the Atlanta area jumped to $6 billion from $4.1 billion, while the Austin, Portland, Ore., and San Jose/Silicon Valley markets all saw sizeable increases in sales. Many of the surging markets have become destinations for technology and creative businesses and their young, well-heeled workers look-ing for urban amenities.

Blake Okland, recently named head of ARA Newmark, said the shift in investment to those growing markets will continue. He expects many Sunbelt cities to attract yield-seeking buyers. “What are the hallmarks of a hot market, right now? It’s a mar-ket that was a little slower out of the downturn,” Okland said. “Phoenix was a little slower, Las Vegas, too.”

Attendees at last month’s National Multi-Housing Confer-ence in San Diego came away convinced that investors are still chomping at the bit for multi-family properties and that the competition for quality Class-B and suburban complexes is likely to be intense this year.

“It seemed like everybody there was saying to us they are net buyers for 2017,” said Christine Akins, senior managing director of CBRE’s multi-family sales platform. “We’re telling

See MULTI-FAMILY on Page 16

February 8, 2017 15Real EstateALERT

Top Brokers by Market (continued)

2016 Market Amount No. of SharePhoenix Area ($Mil.) Properties (%) 1 CBRE $1,776.9 34 47.2 2 Berkadia 601.5 17 16.0 3 Marcus & Millichap 449.5 10 11.9 4 Colliers International 405.0 9 10.8 5 Cushman & Wakefield 291.3 7 7.7 6 ARA Newmark 105.3 3 2.8 Other 135.6 3 3.6 Brokered Total 3,765.1 83 100.0 2016 Market Amount No. of ShareDallas Area ($Mil.) Properties (%) 1 HFF $1,408.7 27 37.0 2 CBRE 1,299.4 28 34.1 3 ARA Newmark 854.6 18 22.4 4 Berkadia 141.2 3 3.7 5 JLL 108.5 3 2.8 Brokered Total 3,812.4 79 100.0 2016 Market Amount No. of ShareNorth Carolina ($Mil.) Properties (%) 1 CBRE $1,015.6 23 36.6 2 ARA Newmark 867.2 22 31.3 3 JLL 286.3 5 10.3 4 HFF 198.8 6 7.2 5 Cushman & Wakefield 162.2 4 5.9 6 Walker & Dunlop 104.4 2 3.8 Other 137.4 3 5.0 Brokered Total 2,771.9 65 100.0 2016 Market Amount No. of ShareAustin Area ($Mil.) Properties (%) 1 CBRE $1,268.4 26 43.7 2 ARA Newmark 1,012.3 19 34.8 3 HFF 434.3 7 14.9 4 JLL 190.8 2 6.6 Brokered Total 2,905.8 54 100.0

2016 Market Amount No. of ShareHouston Area ($Mil.) Properties (%) 1 ARA Newmark $1,234.2 38 49.6 2 HFF 640.0 17 25.7 3 CBRE 221.6 6 8.9 4 Greystone 172.0 7 6.9 5 Berkadia 113.0 3 4.5 Other 108.2 3 4.3 Brokered Total 2,489.0 74 100.0

RANKINGS

Multi-Family ... From Page 15

everyone that if they’re interested in making a play in the sub-urbs, they should do it now.”

ARA Newmark’s Okland added that his firm isn’t convinced the value has gone out of the big markets, even as sales have slowed. He said much of the inventory in those cities changed hands in recent years, and the core and core-plus buyers who scooped them up are holding on to them.

As for the ultra-high-end properties favored by developers, Okland expects them to prove their value in the long term. He said that until the current cycle, large, luxurious apartments with extensive amenities were rare in U.S. cities outside New York, but noted they are more common in other countries where home-ownership rates have traditionally been lower.

“We’ve really introduced a whole new product type here in the last 4-6 years,” Okland said. “There will be some ebbing and flowing [of rents], but it is absorbing well. It’s a child of this cycle.”

The rankings are based on multi-family transactions that closed last year and involved full or partial stakes valued at $25 million or more. When multiple brokers shared a listing, the dollar credit was divided evenly, but each broker was credited with one transaction. Only brokers for sellers were given credit. Portfolio transactions were included if the overall price was at least $200 million or if one or more properties in the portfolio had a value of at least $25 million.

February 8, 2017 16Real EstateALERT

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STRATEGIC HOLDINGS

Large Multi-Family Transactions in 2016 Price Property Units Buyer Seller Broker ($Mil.) 1 72 complexes 23,262 Starwood Capital Equity Residential (None) $5,365.0 2 16 complexes 5,294 Blackstone Bridge Investment (None) 748.0 3 24 complexes in Southeast 6,294 Strata Equity DRA Advisors CBRE 721.0 4 15 complexes in Las Vegas area 4,686 Oaktree Capital, Bascom Camden Property CBRE 627.7 5 Kips Bay Court, New York 894 Blackstone Phipps Houses CBRE 620.0 6 20 student-housing complexes 3,880 Campus Advantage, Saban American Campus HFF 508.0 7 Runway Playa Vista, Los Angeles 292 Invesco Real Estate, partner Lincoln Property, Phoenix HFF 475.0 8 9 California complexes 662 Fulcrum Group, SPI Holdings AEW Capital Eastdil Secured 430.5 9 63&67 Wall Street, New York 807 Rockpoint Group Eastbridge Group Eastdil Secured 430.0 10 Woodland Park, East Palo Alto, Calif. 1,813 ADIA, Sand Hill Property Equity Residential Eastdil Secured 412.5 11 5 complexes in Stamford, Conn. 1,214 Gaia Real Estate Building and Land JLL 395.5 12 RiverTower at Sutton Place, New York 311 Slate Property, GreenOak Equity Residential CBRE 390.0 13 47 complexes in East Harlem, New York 1,181 Isaac Kassirer Fairstead, E&M Associates Ariel Property 357.5 14 Breakers Resort, Denver 1,523 Pensam Capital, partners Koelbel & Co., Bascom ARA Newmark 350.0 15 14 student-housing complexes (90% stake) 3,316 (Unidentified) Aspen Heights HFF 346.5 16 7 complexes in Maryland 2,490 BDMG, Quest Management Federal Capital, Ross CBRE 328.0 17 Indigo, Redwood City, Calif. 463 Aimco Pauls Corp. (None) 320.0 18 11 apartment complexes 2,830 Morgan Properties SouthStar Capital (None) 316.0 19 Savoy Park, New York 1802 Fairstead Capital L&M, Savanna Savills Studley 315.0 20 234 East 63rd/355 East 72nd, New York 330 S.W. Management Elghanayan Family Cushman & Wakefield 310.0

RANKINGS

Mass. Industrial Package AvailableAn Oaktree Capital partnership has listed three Class-B

industrial properties in suburban Boston with an estimated value of $27 million.

The 1.2 million-square-foot portfolio encompasses a vacant building in Tewksbury and two fully occupied properties, in Tewksbury and Norwood. The preference is to sell them as a package, although separate offers will be considered. JLL is rep-resenting Oaktree and its partner, Hackman Capital, both of Los Angeles.

Both Tewksbury properties are in Riverview Technology Park, about 30 miles northwest of Boston. The vacant facil-ity is the largest, a 575,000-sf building at 495 Woburn Street that is suitable for research-and-development, manufacturing or offices. It recently received an $8 million renovation that included a new facade and entrance. It has ceiling heights of up to 18 feet and 13 loading docks. The property is on 125 acres that could accommodate additional development. Comparable properties nearby are at least 90% occupied.

The offering also includes a 126,000-sf building across the street, at 515 Woburn Street, that is occupied by Interstate Electric under a lease that runs until 2022.

Rounding out the portfolio is a 460,000-sf distribution build-ing at 625 University Avenue in Norwood. It is occupied by mul-tiple tenants with a weighted average remaining lease term of eight years. Home Depot occupies about half of the space. PODS

also is a tenant. The building has ceiling heights of up to 54 feet, numerous loading bays and rail service. It is near the intersec-tion of Route 95 and Route 128, about 15 miles south of down-town Boston.

Supermarket ... From Page 1

of 16-24 months.Eighty percent of the units, or 289, command market rents,

while the remaining 72 fall under New York City rent restric-tions. The units range in size from studios to two bedrooms and feature granite countertops and floor-to-ceiling windows. Recently updated amenities include a residents’ lounge, a bil-liards room, a pingpong room, a fitness center and a rooftop sundeck with gas grills. There is also a 24-hour concierge. A buyer could look to boost its return by upgrading the apart-ments.

There is 72,000 square feet of retail space on the street level. Whole Foods has a lease on nearly all of that space at below-market rents until 2028, with extension options totaling 25 years.

The building is on the southwest corner of Houston Street, next to a subway stop and within walking distance of SoHo, Greenwich Village, the East Village and Little Italy.

Ashkenazy, led by chief executive Ben Ashkenazy, bought 229 Chrystie Street from the building’s developer, a partner-ship between AvalonBay Communities of Arlington, Va., and J.P. Morgan Asset Management.

February 8, 2017 17Real EstateALERT

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Orlando ApartmentsPassco Cos. has purchased a 282-unit apartment com-

plex in Orlando for $50.3 million. The 12-building Marisol at Viera was completed last year and is roughly 95% leased. The $178,000/unit price indicates a 5.4% capitalization rate for Passco, of Irvine, Calif. Cushman & Wakefield brokered the sale, which closed at yearend, for a partnership including Pollack Shores Real Estate of Atlanta. The complex is at 2439 Casona Lane, just west of Interstate 95.

Silicon Valley OfficesBuyers are set to close on two Silicon Valley office prop-

erties. Equus Capital of Yardley, Pa., has agreed to buy the 107,000-square-foot Walsh@Bowers complex in Santa Clara, Calif., for $31.5 million, or about $294/sf. The single-story building, at 2845-2855 Bowers Avenue, is home to Miramar Labs. The seller, Swift Realty of San Francisco, acquired it as part of a five-property portfolio from DivcoWest Properties four years ago. Meanwhile, an undisclosed buyer has agreed to pay DRA Advisors of New York $36 million, or $191/sf, for the 188,000-sf Alviso Tech Park in San Jose. That four-build-ing complex is a mix of office and research-and-development space. Cushman & Wakefield is brokering both trades.

NEW DEALS

Mixed-Use Savannah Package ListedInvestors are getting a crack at 102,000 square feet of street-

level retail space, 50 apartments and some offices along the main street of downtown Savannah, Ga.

The offered space, spread across 18 low-rise buildings on Broughton Street, has an estimated value of $90 million. At that price, the buyer’s initial annual yield would be about 5.4%. All of the space is expected to be fully occupied by April.

Investors have to bid on the entire package. CBRE is repre-senting the unidentified seller.

The buildings are on both sides of Broughton Street, along the six blocks between Montgomery and Abercorn Streets. They were built between the early 1800s and 1945, and were renovated over the past three years.

The properties, which are three blocks north of the Savan-nah River, provide an opportunity to become a major retail landlord in the city. They account for nearly one-third of the retail space along Broughton Street, Savannah’s primary retail corridor for 200 years.

The retail tenants include Club Monaco, H&M, Lululemon, Michael Kors, Tommy Bahama, Victoria’s Secret and Vineyard Vines.

The pitch is that a buyer could boost its return as leases roll over by attracting higher-rent restaurants run by prominent chefs. The city has emerged as a major culinary hotspot in recent years, attracting top chefs.

The Class-A, loft-style apartments, which cater to creative professionals, generate 25% of the net operating income. The office space totals 22,000 sf.

Savannah is a major tourist attraction, drawing 13.5 million visitors annually who spend $5.4 billion, according to mar-keting materials. The metropolitan area has a population of 382,000 people. It is home to 19 colleges and universities with 60,000 students.

Redevelopment Play in Downtown SFA redevelopment site is up for grabs in San Francisco’s

posh Union Square shopping district.The parcel, at 300 Grant Street, currently houses a vacant

three-story retail building, but approvals are in place for a six-story property with 62,000 square feet of retail and office space.

Bids are expected to reach $75 million, or $1,210 per build-able square foot. HFF is representing the property’s owner, St. Bride’s Managers of London.

The existing building, at Grant and Sutter Streets, was con-structed in 1908 and renovated in 1999. The estimated cost of demolishing and replacing it is up to $25 million. The approv-als allow for three lower retail floors totaling 32,000 sf and three upper office floors totaling 30,000 sf.

The site is in the heart of the city’s shopping district. Retail-ers in the district include Burberry, Dior, Dolce & Gabana and Harry Winston. The retail occupancy rate for Union Square is 97.1%, and rents average $685/sf.

February 8, 2017 18Real EstateALERT

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Brennan ... From Page 1

had an overall occupancy rate of 92%, would command a 7% capitalization rate. But the offering was complicated by a cum-bersome ownership structure: The properties are held by sev-eral joint ventures involving Brennan and separate partners. Investors are being told the new offering is cleaner, involving a single ownership entity, fully stabilized properties and a bigger return.

The properties have long-term, absolute-net leases with average annual rent bumps of 2.4%. The tenants are responsible for maintenance and capital repairs, according to marketing materials, leaving limited property-management responsibili-ties for the owner — ideal for investors seeking a relatively pas-sive investment.

The offered portfolio consists of 23 industrial properties and one office building, spread across 19 markets. There are 21 ten-

ants, and 14 of them are headquartered in their space. They have a weighted average remaining lease term of 12.5 years and an average tenure of 25 years. Leases on just 16% of the space mature within 10 years, providing stability, and no single ten-ant generates more than 17% of the net operating income.

There are industrial properties in three Ohio markets: Cleve-land (356,000 sf), Toledo (238,000 sf) and Cincinnati (218,000 sf). There are also three in Florida: Jacksonville (198,000 sf), Sarasota (106,000 sf) and Tampa (39,000 sf).

The others are in Roanoke, Va. (696,000 sf); Winston-Salem, N.C. (351,000 sf); Des Moines, Iowa (248,000); Milwaukee (175,000 sf); Chicago (144,000 sf); South Bend, Ind. (118,000 sf); Philadelphia (112,000 sf); Houston (100,000 sf); Albany, N.Y. (78,000 sf); Pittsburgh (62,000 sf); Spartanburg, S.C. (55,000 sf); and San Diego (44,000 sf).

The one office building is the 33,000-sf Chrysalis Center in Fort Lauderdale, Fla., which is fully leased until 2028.

February 8, 2017 19Real EstateALERT

MARKET SPOTLIGHT

Chicago Office PropertiesSales of large properties slumped to $3 billion last year. That was down from $6.2 billion in 2015, when the

total was boosted by the $1.3 billion sale of Willis Tower. Some 8 million square feet of leases were signed last year, down from 9.4 million sf in 2015, according to

JLL. The average occupancy rate at yearend was 90%, up from 88% a year earlier.Gains in rents and occupancy rates might be tempered this year as the completion of several large office

projects increases supply, according to Green Street Advisors.

On the Market Hit SF Estimated ValueProperty Seller Market (000) ($Mil.) (Per SF) Broker540 West Madison Street Third Millennium June 1,100 $650 $591 HFF401 North Michigan Avenue Zeller Realty January 772 370 479 CBRE300 South Wacker Drive Beacon Capital January 536 165 308 JLL125 South Wacker Drive MetLife Real Estate Investors January 575 135 235 JLL33 North LaSalle Street John Buck Co. November 400 75 188 CBRE310 South Racine Avenue LSC Development December 180 50 278 Eastdil Secured300-320 North Elizabeth Street Sterling Bay February 166 43 259 CBRE

Recent Deals SF Sales PriceProperty Buyer Closed (000) ($Mil.) (Per SF) Broker181 West Madison Street HNA Group, partners (Pending) 937 $360 $384 Eastdil Secured 123 North Wacker Drive LaSalle Investment December 541 147 272 JLL680 North Lake Shore Drive TopMed Realty, Golub & Co. December 493 110 222 HFF150 North Wacker Drive (Unidentified) (Pending) 247 75 304 HFF363 West Erie Street Spaulding & Slye November 122 34 279 JLL205 West Randolph Street Farbman Group January 199 29 144 (None)1333 North Kingsbury Street Credit Suisse (Pending) 96 28 292 CBRE

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February 8, 2017 20Real EstateALERT

New York this week as an executive vice president. He spent the last two years at local developer Kuafu Proper-ties, and before that logged nearly nine years at Extell Development, also of New York. Midwood buys and develops retail, office, residential and mixed-use properties. Executive recruiter Keller Augusta handled the search.

Denver office-sales specialist Peter Merrion has jumped to HFF from JLL. He started last week as a director, reporting to senior managing director Mark Katz, who transferred last year from HFF’s Chi-cago office. Merrion was a vice president at JLL, where he had worked since 2013.

Industry veteran Ashley Powell is joining Property Reserve, the real estate investment arm of the Church of Jesus Christ of Latter-day Saints, as director of acquisitions. Powell starts March 1 at the Salt Lake City headquarters. He

was previously a senior vice president at Bentall Kennedy focused on the Western U.S. He also has worked at RREEF, Transpacific Development and CBRE.

Retail fund operator Sterling Organi-zation has hired D.J. Belock as chief financial officer. Belock, who joined the Palm Beach, Fla., firm two weeks ago, will serve on the investment commit-tees of its funds. He reports to manag-ing principal and chief executive Brian Kosoy. Belock was previously senior vice president of finance at Phillips Edison, a retail investment shop in Cincinnati. He had prior stints in real estate invest-ment banking at Goldman Sachs and Bear Stearns.

Andrew Cohen joined Arel Capital last week as a partner in the New York shop. He’s tasked with identifying acquisitions and new markets for investment. His duties were similar in his previous post at First Atlantic Real Estate of New York, where he spent almost seven years and left as a managing director. Before that, he was at AREA Property for 13 years.

Arel invests in multi-family properties in large metropolitan areas such as New York, Houston, Austin and Denver.

Slater Traaen started at GLL Real Estate in New York last month. He’s working on asset management and acquisitions for the German investment manager. Traaen came from New York-based Treeview Real Estate, where he spent five years in asset management and operations. Previously, he had several stints at brokerages, including a year at Cushman & Wakefield.

Online brokerage Ten-X has added two staffers in Manhattan to focus on busi-ness development. Senior director Evan Koransky and director Keith Fischer moved over in the past few weeks from New York research firm REIS, where Koransky spent 12 years and Fischer six. Ten-X has been actively recruit-ing business-development staffers and investment-sales brokers since it hired Camille Renshaw last summer as execu-tive managing director and head of the institutional group.