HAMPTON ROADS, VA: "Hampton Roads' Southeast region has seen a tremendous amount of buying activity from the real estate investment trusts (REITs). Shopping centers, especially grocery-anchored shopping centers, are selling well, as are multi-tenanted Class A and B office properties," according to Gresh Wall, vice president of Investment Sales for Divaris Real Estate. "Initial cap rates have ranged between ten and eleven percent. However, this increase in purchase activity is expected to level off as equity funding has become more limited due to the recent decline in the price of REIT stock," Wall explained.

"The decline in the price of REIT stock is adversely impacting the appetite of investors on Wall Street looking for new real estate. As a result, the rate of REIT purchasing activity is expected to slow down nationally," Wall said. In 1997, over 685,000 square feet of office space was purchased at an average price of $103.97 per square foot. This is up from 82,000 square feet of space at an average price of $75.50 per square foot in 1995.

"On the positive side," Wall continued, "interest rates are still very low and the debt markets are still considered very strong. Good opportunities still exist for local and regional investors who are using traditional means of financing. Banks are eager to loan money and interest rates continue to be low.

"The fact that so much construction is underway, particularly in downtown Norfolk and in Chesapeake and Virginia Beach, has created renewed interest from national and regional buyers, who are taking a closer look at Hampton Roads as a viable alternative to other markets of similar size. Construction activity, such as the 1,200,000 square foot, downtown Norfolk MacArthur Center mall scheduled to open in March of 1999, and the addition of 160 residential units at Freemason Harbor has stimulated interest in downtown. Also, Money Magazine's June article which named the Hampton Roads area as the most livable large metro area in the South, has caused additional interest in the region," he added.

The Norfolk/Virginia Beach/Newport News metropolitan statistical area, which encompasses approximately 1.6 million people between Gloucester, Virginia and Currituck County, North Carolina, was judged superior to Charlotte, Raleigh, Austin and Atlanta based on 37 criteria including: fresh air, good job growth, low crime rate, educated labor force, good schools, good transportation network, low cost of living, low cost of housing and strong average salaries. These factors all add up to a quality of life conducive to an excellent investment atmosphere.

HOME DEPOT BUYS SITE IN VIRGINIA BEACH, VIRGINIA
VIRGINIA BEACH, VA: Gerald Divaris, president of Divaris Real Estate, Inc., announced the sale of a site of approximately 9.3 acres located on Virginia Beach Boulevard at Little Neck Road in Virginia Beach, Virginia, to Home Depot. In addition, an adjacent site of approximately 3.2 acres was leased to Home Depot. The property, formerly known as Celebration Station, and the adjacent lease have been redeveloped to accommodate a new Home Depot store. The sale was negotiated by DRE's Gerald Divaris representing the Seller. The former Celebration Station site sold for $6,950,000.

DIVARIS REAL ESTATE SELLS BELLAIR PLAZA
DAYTONA BEACH, FL: Bellair Plaza, a 372,196 square-foot shopping center located in Daytona Beach, Florida was sold to the McClure Company. The Seller was CG Gulf Property Association, L.P. and the price was $12,500,000. The center, located near International Speedway Boulevard, is anchored by Publix, Winn Dixie, Walgreen's, Belk Lindsey, G.C. Murphy and Woolworth.

Established in the late 1950's by Leonard and Milton Pepper, two of the earliest pioneers of the shopping center industry, Bellair Plaza offers several redevelopment opportunities to its new owners. As leases rollover, these options will be evaluated for their viability.

The sale was negotiated by Divaris Real Estate's Stanton R. Englander who represented the Buyer in the transaction. Stanton Englander is based in Divaris' Tampa, Florida office.

DRE SELLS 63,887 SQUARE-FOOT SHOPPING CENTER IN NORFOLK
NORFOLK, VIRGINIA: Shore Drive Plaza, a 63,887 square-foot neighborhood shopping center in the East Oceanview section of Norfolk, Virginia was sold to Mair Development Corporation. Divaris Real Estate's Virginia Beach office represented the seller, Crown Life Insurance Company, in the negotiations. Electronic Systems Buys Land In Southport Business Park.

ELECTRONIC SYSTEMS BUYS LAND IN SOUTHPORT BUSINESS PARK
VIRGINIA BEACH, VA: William G. Kamarek, president of Electronic Systems, Inc. purchased 2.485 acres of vacant land in Southport Business Park in Virginia Beach's Central Business District. Electronic Systems, a computer and software sales and training company, will house its corporate offices and training facility on the property -- along with some office and distribution space.

The new building is close to completion and will be occupied by the fall of 1998. Surplus space is being leased by Divaris Real Estate.

DRE's Gerald Divaris and Gresh Wall represented Electronic Systems in the negotiations. The Seller was represented by Crestar Bank's trust department.

BED BATH & BEYOND BUYS A SITE IN NEWPORT NEWS
NEWPORT NEWS, VA: Bed Bath & Beyond purchased a 2.45 acre site at Yoder Plaza on Jefferson Avenue in Newport News, Virginia. The site will be developed to accommodate a new 40,000 square-foot Bed Bath & Beyond store.

Yoder Plaza already accommodates such notable tenants as: Target, Toys ŚR Us, Circuit City, Office Max and Barnes and Noble. Bed Bath & Beyond will be constructed between Toys ŚR Us and Target. Bed Bath & Beyond will bring to this bustling corridor of Newport News an outstanding selection of housewares, linens, and other home goods products.

The sale for $2,270,000 was negotiated by Gerald Divaris of Divaris Real Estate's Virginia Beach office. He represented Bed Bath & Beyond in the transaction.

HOLLYWOOD VIDEO PURCHASES SITE IN VIRGINIA BEACH
VIRGINIA BEACH, VA: ACL Devel-opment Corp. of Atlanta, Georgia purchased a one acre site at Hannaford Plaza on Shore Drive in Virginia Beach, Virginia. The site, located close to the intersection of Shore Drive and Northampton Boulevard, has been developed to accommodate a new Hollywood Video store. The sale was negotiated on behalf of the Seller by Divaris Real Estate, Inc.

PRIME JEFFERSON AVENUE SITE SOLD
NEWPORT NEWS, VA: A prime commercial property of approximately 15 acres, situated on the northwest corner of Jefferson Avenue and Oyster Point Road in Newport News, Virginia was sold to an affiliate of Interface Properties Company of Boca Raton, Florida. The site, located directly across the street from Patrick Henry Mall, has been home to the engineering division of Newport News Shipyard and Drydock Company for many years. The purchase price was $11,000,000.

The shipyard has relocated into new facilities in downtown Newport News in the former Sears building. A new parking garage has been built to support the Shipyard's occupancy. The existing buildings on the Jefferson Avenue site will be demolished and a new 185,000 square foot shopping center will be constructed. The new center will include a 131,000 square foot Costco store and a 28,200 square foot CompUSA store. There will be one additional 25,000 square foot store in the center. Divaris Real Estate is the exclusive leasing agent for Interface Properties.

The sale was negotiated by Gerald Divaris and Melissa Martinovich of Divaris Real Estate who represented the Seller, Newport News Shipyard and Drydock Company in the transaction.

LYNNHAVEN COMMONS SOLD BY DIVARIS REAL ESTATE
VIRGINIA BEACH, VA: Gerald S. Divaris, president of Divaris Real Estate, Inc., announced the sale of the 30,000 square-foot Lynnhaven Commons Office Park at Lynnhaven Parkway in Virginia Beach, Virginia for $1.6 million. The Divaris leased Lynnhaven Commons is comprised of three 10,000 square-foot office buildings and a one-acre pad site, which is available for future development. Michael B. Divaris, DRE's executive vice president and Daniel Finkle represented the Seller, The Breeden Companies, in the negotiations. Divaris Real Estate's John Duffy has been retained by the Purchaser, Andrianos Touzos, to lease the complex.