- DC

N Unique design includes plans for a daycare center at 360 New York Ave. Martin Architectural Group completes design of CitiBay mixed-use project in Newark

ISSUE HIGHLIGHTS Volume 29 Issue 11 June 9 - 22, 2017

Creative Financing Spotlight

CitiBay hired Martin Ar- chitecture Group to work on this project after the suc- cess of their collaboration on Station Commons, the first transit-oriented lux- ury apartment building in Elizabeth, NJ, that opened in 2015. The new seven- story building located at 727 Pennsylvania Avenue is near the North Elizabeth train station, minutes away from US Highway 22, major New Jersey Transit bus lines and the Newark Airport. “We chose Martin Archi- tectural for the Station Com- mons and New York Avenue projects because of the firm’s rich experience in urban planning and expertise in res- idential development,” said Albino Cerqueira , principal of CitiBay. “They are ahead of the curve on trends like transit oriented designs, cre- ating residential centers that offer ample connectivity for commuters, pedestrians and bicycle riders. They were able to create an unrivaled sense of community in the middle of a transportation hub with a walkable design.” n to the Redskins Stadium and Fed-Ex Field. As a union employer Wright’s was a member of the IronWork- ers Local #5 Union, repre- senting the Washington, D.C. Metropolitan area and more than 1,000 Iron Workers in the Mid-Atlantic Region. Matthew Hurley of Hur- ley Auctions headquartered in Greencastle, PA was asked to undertake this large scale auction with 190,000 s/f com- mercial warehouse and offices on 54+- industrial acres with railway access to the Bucking- ham Branch Railway as well as the remaining contents of the facility including trucks, lifts, industrial machinery and more! The real estate will be auctioned live to the public on June 16. n See page 13C for more in- formation.

EWARK, NJ — Mar- tin Architectural Group has completed the design process on a new five-story mixed-use 95,866 s/f building, owned by Ci- tiBay , located at 360 New York Avenue in Newark. The unique design includes plans for a day care center, with a drive-through drop off, on the bottom two floors with the top three floors offering residential living with new sustainable design materi- als. The superstructure for the project is currently being raised out of the ground as the project enters its con- struction phase. “We are extremely proud of our work on this new building,” said James Rivi- ello , president andmanaging partner, Martin Architec- tural Group. “Being able to create a cooperative design that positions the building to act as a community center for this area in Newark is a fantastic opportunity for us.” The existing half-acre of land where the new building will sit was formerly home


Northern NJ Spotlight


Central PA Spotlight


360 New York Avenue

to a dilapidated warehouse. “Completing the design was challenging because we had to combine intrinsically different types of uses with unique requisites and make them work on a half-acre of land, in a residential district, without negatively impact- ing the community,” said Riviello. The new day care will allow easy access to childcare for residents, and the building’s location offers proximity to

public transportation for people commuting to New York City. The townhomes will vary in size from 1,200 square feet to 1,350 square- feet, providing one, two and three bedroom options for potential occupants. The building will offer amenities that include game rooms, a gym, lounge and off-street parking. The project is expected to be complete before the end of this year.

Upcoming Conferences June 21, 2017 4 th Annual New Jersey Commercial RE

Forecast Summit June 22, 2017

2 nd Annual Philadelphia Healthcare & Medical Properties Conference For speaking and sponsorship information, please contact: Lea at 781-740-2900 or lea.christman@marejournal.com

MatthewHurley of Hurley Auctions undertakes Former Wrights Iron & Steel Works auction

Orange, VA — Former Wright’s Iron & Steel Works Inc, situated in historic Orange, Vir- ginia near the homes of Thomas Jefferson, James Madison and James Monroe, and well known


DelMarVa.......................................................... 3-6A Financial Digest Featuring Creative Financing...7-15A New Jersey................................................. Section B Pennsylvania.............................................. Section C

Wrights at The Pentagon

drews Air Force Base, Quan- tico Marine Base, Walter Reed Army Hospital, Bethesda Naval Hospital, FBI Academy, Secret Service Building, Maryland Order of Police, Air Line Pilots Association, Goddard Space Flight Center, and even the CIA Headquarters and the Pentagon. More renowned projects include renovations

in the area for their long time work in structural steel, renova- tions, fabrication and welding for much of the DC, Maryland, VA areas will be going up for auction later this month. Recognized for their work with many government and military projects, Wright’s has established itself in noted places such as Ft. Meade, An-

www.marejournal.com Upcoming Spotlights Retail/Restaurants Contractors/Subcontractors Mid-Year Review

Inside Cover A — June 9 - 22, 2017 — M id A tlantic

Real Estate Journal



growing the forest while a partner tends to the trees.

Like us, you believe in long-term value over short-term gains. And you’re always planning for what’s next. At Berkadia, we take care of the details of selling assets, securing the right financing and servicing your loan for its entire lifecycle. This certainty of execution lets you keep your sights right where they need to be: on the horizon.

See how our corporate values deliver value for our clients: www.berkadia.com

BERKADIA.COM a Berkshire Hathaway and Leucadia National company

Commercial mortgage loan banking and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Investment sales/real estate brokerage business is conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In California, Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116, and Berkadia Real Estate Advisors Inc. under CA Real Estate Broker Lic. #01931050. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing.aspx. © 2017 Berkadia Commercial Mortgage LLC. Berkadia® is a registered trademark of Berkadia Proprietary Holding LLC.

Real Estate Journal — June 9 - 22, 2017 — 1A


M id A tlantic

Meet some of our Speakers

joel Bergstein President Lincoln Equities Group

jose Cruz Senior Managing Director HFF

jack Fersko Co-Chair, Real Estate Dept. Greenbaum, Rowe, Smith & Davis LLP

Kristine Hurlbut Sr. Vice-President, Leasing Denholtz associates

Karly Iacono Sales associate

Darin Raiken Director of acquisitions Kushner Real Estate Group

james Rhatican Director of Land Use and Development

Tiffany Rolfing Energy Efficiency account Manager ICF International

Iacono Retail Group Marcus & Millichap

assistant General Counsel Hartz Mountain Industries

Drew Romanic, aIa Principal / Partner The Martin architectural Group, P.C.

Michael allen Seeve President Mountain Development

Russell I. Tepper Senior Managing

Timothy Touhey Team Leader Investors Bank

Director - Ny/Nj/CT/Pa Mill Creek Residential

Register Today! www.marejournal.com Early Bird Rates still apply

2A — June 9 - 22, 2017 — M id A tlantic

Real Estate Journal


Mid Atlantic Real Estate Journal

Mid Atlantic R eal E state J ournal Publisher, Conference Producer ...................................... Linda Christman Associate Publisher ................................................................ Steve Kelley Associate Publisher ...................................................................Kim Brunet AVP, Conference Producer . ................................................. Lea Christman Senior Editor/Graphic Artist .................................................Karen Vachon Office Manager ......................................................................Miriam Buttrick Sales Intern ........................................................................ Kevin Minassian Production Intern .................................................................. Erin Shepherd Contributing Columnists .....................................................Caroline Shelly Mid Atlantic R eal E state J ournal — Published Semi-Monthly Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 350 Lincoln St., Suite 1105 Hingham, MA 02043 USPS #22-358 | Vol. 29 Issue 11 Subscription rates: $99 - one year, $148 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion 781-740-2900 | Fax: 781-740-2929 www.marejournal.com

Headache #42 – Lighting – Is LED for you? I Caroline Shelly t is obvious when light- ing is bad; either there is not enough light, and it is hard to see, or there is too much light, and can be overpowering. Today, the internet is flooded with ways to light properly, but it is easy to glaze over on all the technical data. To help allevi- ate the headache from all the information on lighting here is an overview: History of the “LED” (Light- emitting diode): • LEDs were invented in the 1960s. • LEDs emerged as a main- stream energy option for com- mercial facilities in the early 2000s. Since then, lighting tech- nology has dramatically seen significant improvements, in- cluding ways to minimize the carbon footprint of buildings, improve efficiency of work, and even ways to save money just by switching light fixtures. For Instance: • FacilityManagers have taken steps to reduce lighting system

The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal

energy costs. • Changing out actual fixtures can bring more savings than changing to a more efficient lamp. • New fixtures can help im- prove both quality, lighting, and efficiency. • The US Department of En- ergy suggests the highest per- forming LED troffers were found to be up to 44% more efficient than fluorescent coun- terparts. • When LEDs are cor- rectly installed – they help lower: • Operating and energy costs • Replacement time and costs • Heat emittance • Facility cooling loads • Plus LEDs deliver on long life, reduced maintenance re-

continued on page 18A Once a basic review of the lighting control system has been started, several studies quirements and helps improve a buildings sustainability. As demand increases for lighting controls due to energy code requirements, so does the opportunity for the facility manager in existing buildings to use retro-commissioning to ensure the installed controls satisfy both the design intent and requirements. A 2009 study found that whole building commissioning produced 13% median energy savings, and 16% in existing buildings. The study also found that more than 1/3 of existing buildings have lighting defi- ciencies.

Leading the Real Estate Investment Market Contact us today to access the largest inventory of properties.

J.D. Parker Manhattan

Brian Hosey New Jersey (201) 582-1000 Bryn Merrey Washington, D.C. (202) 536-3700

(212) 430-5100 Brenton Baskin Philadelphia (215) 531-7000

Firmly Rooted in the Law and in the Community We are well grounded in every facet of real estate law, from acquisition to construction. We are committed to serving the needs of our clients and our communities.

Offices Throughout the U.S. and Canada



Contact: NEIL A. STEIN • nstein@kaplaw.com Kaplin Stewart Attorneys at Law

The Philadelphia market will never be the same. WCRE is in town.

910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-941-2469 • www.kaplaw.com Visit our Real Estate Blog: www.philadelphiarealestatelawyer.com Visit our Construction Blog: www.pennsylvaniaconstructionlawyer.com Other Offices: Cherry Hill, NJ 856-675-1550& Philadelphia, PA 215-567-3120

For more information, visit WolfCRE.com or call 215-799-6900 .

Building Successful Relationships TM King of Prussia, PA l Marlton, NJ

www.marejournal.com Real Estate Journal — DelMarVa — June 9 - 22, 2017 — 3A Sr. investment associate Schuldinger organizes sale of a Bank of America in Mount Airy, MD Greysteel arranges the sale of Marble Hall Gardens Located In Baltimore, MD for $31 million B altimore, MD — Greysteel , a national commercial real estate M id A tlantic

investment services firm, has arranged the sale of Marble Hall Gardens, a multifamily property located in Baltimore, MD for $31 million. This transaction was ar- ranged by Greysteel president & CEO, Ari Firoozabadi ; managing director, W. Kyle Tangney ; director, Rawles Wilcox ; senior investment associates, Ari Azarbarzin and Alicia Orkisz ; and in- vestment associate, Herbert Schwat ; who are all based in Greysteel’s Washington, D.C. and Baltimore offices. Marble Hall Gardens, built in 1947, is a 390-unit commu- nity located at 4300 Marble Hall Rd. in Baltimore. Posi- tioned just off Loch Raven Boulevard (MD 542), one of the city’s primary north-south thoroughfares, offering conve- nient access to major employ- ers throughout the Greater Baltimore Metro Area, such Newark, DE — Com- mercial real estate firm JLL and Delle Donne and As- sociates (DDA) , in partner- ship with the University of Delaware (UD), have an- nounced the development of a new trophy office tower at the University of Delaware’s Science, Technology and Advanced Research (STAR) Campus. The tower will en- compass 120,000 s/f of trophy office space. Approximately 80,000 s/f will be taken by the University of Delaware and allocated to its College of Health Sciences. The class A office property will be located at the gateway to the STAR Campus, foster- ing a community to learn, live, work and play. This goal to provide such community is prominent in major uni- versity settings throughout the nation. “We are excited to fur-

Marble Hall Gardens

Bank of America

UD’s STAR Campus master plan is comprised of a mix of commercial enterprises, re- search facilities, classrooms, housing, retail and green spaces. Intended to catalyze economic development, the University of Delaware’s STAR Campus is growing into a center of innovation that blends cutting-edge re- search, top-notch academics and thriving businesses in one location. STAR Campus provides educational and professional opportunities to students, research and collaborative inquiry to re- searchers and an educated and technologically savvy workforce to employers. STAR Campus is currently home to: • A performance computing company named by Forbes as one of America’s Most Prom- ising Companies • A manufacturer of clean and financing of a Bank of America. Greysteel senior investment associate Henry Schuld- inger represented the seller and procured the buyer while senior investment associate Brittany Wismer helped the buyer arrange financing. Bank of America opened at this site in 2006 and is in the middle of a 20-year triple net ground lease.Greysteel repre-

fuel-cell power sources whose energy servers provide power to Fortune 500 clients includ- ing Google, Wal-Mart, AT&T and Coca-Cola. • A 10,000 s/f wet lab busi- ness incubator for small re- search companies • A test zero-emissions vehicle laboratory supported by the U.S. Department of Energy, the State of Dela- ware, NRG Energy, Honda and BMW. • UD’s Health Sciences Complex of classrooms, re- search laboratories, and open- to-the-public care clinics. Op- erating under the name STAR Health, UD’s comprehensive clinics offer major health and prevention services including: primary care, physical ther- apy, speech therapy, mental health services, care coordi- nation, nutrition counseling, fitness counseling and health coaching. n sented the buyer in the process of assuming an existing loan with a 3.875% interest rate. “Our buyer was local and committed to the opportunity, even when financing obstacles surfaced,” said Schuldinger. “In the end, both seller and buyer got what they wanted, thanks to Greysteel’s ability to provide value across all parts of the transaction, from selling to financing.” n

as Medstar Good Samaritan Hospital and Johns Hopkins Hospital and Health Systems. Residents also benefit from close proximity to Downtown Baltimore’s latest mixed-use developments including the Marketplace at Fells Point, a $41 million project featuring new shops and restaurants, and Harbor Point, the city’s leading waterfront develop- ment.

"Marble Hall Gardens is a unique asset that blends conventional and student housing in one community,” said Azarbarzin. “The new owner stands to benefit from a healthy partnership with a growing university, while adding value through devel- opment, and limited capital improvements.” In Mount Airy, MD — Greysteel arranged the sale

JLL and Delle Donne and Associates Announce the Development of a new trophy office tower at The University of Delaware STAR Campus

UD STAR Campus office tower rendering

ther expand our relationship with Delle Donne and As- sociates,” said Jamie Vari , of JLL’s Delaware office. “STAR Campus is a major re-development of a Dela- ware legacy property that will bring another echelon of quality into the office market in New Castle County, Dela-

ware. With rail access, prox- imity to major road arteries, and built-in University of Delaware infrastructure, we believe that this campus will have similar success and characteristics to the Navy Yard in Philadelphia.” Formerly the site of 272- acre Chrysler assembly plant,

4A — June 9 - 22, 2017 — DelMarVa — M id A tlantic

Real Estate Journal


D el M ar V a Real estate brokerage increased property from 86% to 95% Leased in 90 Days NAI KLNB’s Investment Sales Group brokers Eastpoint Business Center totaling 81,774 s/f B altimore, MD — NAI KLNB , the full- service commercial real property sold for $4.3 million, equating to nearly $53 psf.

represented the seller, SCP- EBC LLC, in the deal. The purchaser was Maisel Devel- opment Company. NAI KLNB concurrently marketed the asset for lease and for sale, rapidly increasing the prop- erty’s cash flow to help meet the seller’s sale price expectations. At the time of settlement, the property occupancy grew from 86% to 95% with the addition of three new tenants. Today, Eastpoint Business Center comprises a mix of 15 ware- house and retail/quasi-retail users with bay space ranging from 1,850 to 2,150 s/f. The

“There is a shortage of vacant smaller industrial spaces in Baltimore County. Eastpoint Business Center meets this underserved demand well — it’s in a prime location, close to major Interstates and its functionality and flexible bay sizes appeal to a variety of pro- spective tenants,” said Kubler. “The addition of new tenants was a win-win for both the seller and the buyer: a higher purchase price at settlement and a stable roster of tenants for the purchaser.” Eastpoint Business Center was built in 1974 and is set on a full 5.805 acres. Its direct access to Interstates 95 and 695 and proximity to Eastern Avenue and North Point Bou- levardmakes the location desir- able to businesses in the ser- vice and warehouse industry. Operating expenses have been historically low, running less than $1.00 psf annually. The property features 141 parking spaces, with additional spaces in the rear, and accommodates a wide variety of users with its 16-foot high ceilings and mix of drive-in and dock-high load- ing space. Overall, tenants are self-sufficient and require little management attention. “The majority of the prop- erty’s tenants have established tenure, with half of the busi- nesses leasing for 18 years or longer,” Kubler added. “I am confident the property will en- joy high occupancy and steady rent growth for the foreseeable future.” n LLCS Management a n n o u n c e s t h e launch of its small space program Newark, DE — LLCS Management announces the launch of its small space pro- gram. Customizable office space ranges in size between 250 s/f and 1,500 s/f. The six building, office park is near Christiana Hospital, The University of Del- aware, and situated between downtown Newark and down- town Wilmington, with easy access to I-95, Rte. 1 and Rte. 273. Recently, University Office Plaza has signed several leases, including: Ziras for 1,120 s/f, Life Span Development for 353 s/f, Hong Teng for 437 s/f, Coop- erative Credit Union for 1,540 s/f and Resources for Human Development for 1,553 s/f. n

estate bro- kerage, an- nounced the sale of East- point Busi- ness Center, a n 8 1 , 7 7 4 s/f small bay i n d u s t r i a l building, lo- cated on East

Christopher Kubler

Baltimore St. in Baltimore County’s Dundalk neighbor- hood. NAI KLNB principal, Christopher Kubler, CCIM ,

Eastpoint Business Center

Your real estate financing should be built on “when”...not “if.” With your financing on the line, you need a reliable, credible and flexible financing partner with rock solid sources of capital.

As the nation’s largest privately-owned servicer and provider of commercial real estate debt and equity, NorthMarq Capital has the strength and stability to execute transactions with certainty and deliver results that suit even the most unique needs.

Visit northmarq.com/richmond or call 804.716.9153 to learn more!

C O M M E R C I A L R E A L E S T A T E D E B T , E Q U I T Y & S E R V I C I N G

Real Estate Journal — DelMarVa — June 9 - 22, 2017 — 5A


M id A tlantic

D el M ar V a

Thank You to our Moderators , Speakers & Sponsors


douglaS M. herShMan, eSq. CooCh and taylor, P.a.

ted C. WilliaMS, P.e. landMark SCienCe & engineering

BenJaMin J. Berger, eSq. Berger harriS, llP


WillS elliMan, Sior, MCr, CCiM neWMark gruBB knight frank

todd t. BreCk, aia Pe BreCkStone arChiteCture

Melinda BoSCo BuCCini/Pollin grouP, inC

Paul W. Chantler Sovereign ProPerty ManageMent, llC

J. gregory elliS, CCiM, PatterSon-WoodS CoMMerCial

Pat gioffre gioffre CoMMerCial realty

JoSePh latina PatterSon-WoodS CoMMerCial ProPertieS

MadiSon rogerS CaPano ManageMent Co.

JaMie v. vari JoneS lang laSalle

Jay White aPex realty adviSory

Bronze Sponsor:


organization Sponsor:

For More Information on future events Contact: Lea Christman at lea.christman@marejournal.com | 781-740-2900

6A — June 9 - 22, 2017 — M id A tlantic

Real Estate Journal


Commercial-Industrial Realty Council Great CRE Events...Cont. Education...Speakers...Networking www.CircDelaware.org Schedule of Events May 17 (Wed.) Sheraton Wilmington South Delaware State of the Market

PNC Financial's Chief Economist Presents Eco- nomic Forecast Augustine "Gus" Faucher, senior vice president and chief economist of The PNC Financial Ser- vices Group presented his annual economic real estate forecast to nearly 150 CIRC members and guests. Gus serves as the principal spokesperson on all economic issues for PNC. He is frequently cited in international, national, and regional me-

2016–17 d i r e c t o r s — O F F I C E R S — President Bert Root Vice President & Program Chair Donald Robitzer The Commonwealth Group Treasurer Timothy Cole DNB First, N.A. Secretary Bayard Snyder, Esq. Bayard & Associates — D I R E C T O R S — Education Chair Cynthia Fleming Jones Lang LaSalle Membership Chair James Manna BrightFields, Inc. Ad Hoc Legal Documents Benjamin Berger, Esq. Berger Harris, LLC Jeremy Abelson Rachael Justice Delle Donne & Associates Jim O’Hara, Jr. NAI Emory Hill-Retail Division Robert Stenta Pettinaro Management, LLC — E X - O F F I C I O — Business Manager Janet S. Pippert Landmark Science & Engineering Legislative Lobbyist C. Scott Kidner C. S. Kidner & Associates Economic Dev. Liaison - NCCo. Robert Chadwick New Castle County Ec. Dev. Council Economic Dev. Liaison - State of Del. David Archer Delaware Ec. Dev. Office (NCCo. Rep.) c o n t a c t u s Janet@circdelaware.org (302) 633-1705 www.circdelaware.org Legislative Affairs Chair J. Gregory Ellis Patterson-Woods Associates MidCoast Community Bank John Birmingham Cushman & Wakefield Carmen Facciolo NAI Emory Hill

Commercial Real Estate Forecast Summit This MidAtlantic Real Esate Journal CRE event, sponsored by Cooch & Taylor and Berger Harris, feature Delaware speakers you know and trust. CIRC members are eligible for a special discount. Register by May 10 for Early-Bird special, CIRC Discount Code good up to day of event. June 26 (Mon.) Hartefeld National Annual Golf Outing, Lunch, Dinner & Awards. Members may register online. Continuing Education Clarion Hotel-The Belle Instruction is provided by Frederick Academy of Real Estate. Register at www.CircDelaware.com May 10, 2017 - • AM - Ethical Practices (DE Mod.2/PA/MD/NJ) DE 3.0 CORE MOD. 3; PA 3.5 Elective; MD 3.0 REQD.; NJ 2.0 CORE (REQD.) • PM - Risk Reduction (DE Mod.4/PA/NJ/MD) DE 3.0 CORE MOD. 4; PA 3.5 Elective; MD 3.0 Elective; NJ 3.0 Elective October 11, 2017 - • AM - Property Management (DE Mod.6/PA/MD) DE 3.0 CORE MOD. 3; PA 3.5 Elective; MD 3.0 Elective • PM - Legislative Update (DE Mod.5/PA/MD) DE 3.0 CORE MOD. 5; PA 3.5 Elective; MD 3.0 REQD.. Jan. 10, 2018 - • AM - Agency (PA/NJ/MD/Comm.) PA 3.5 REQD.; MD 3.0 REQD. COMMERCIAL; NJ 3.0 CORE (REQD.); NO DE • PM - Agency (DE Mod.7/MD/Res.) DE 3.0 CORE MOD. 7; MD 3.0 Agency Residential (REQD. for all without COMMERCIAL Designation); NO PA; NO MD Feb. 14, 2018 - • AM - FairHousing (DE Mod.1/PA/MD/NJ) DE 3.0 CORE MOD. 1; PA 3.5 Elective; MD 3.0 (1.5 REQD. / 1.5 Elective); NJ 3.0 CORE (REQD.) • PM - Contracts/Law((DE Mod.3/PA/MD/NJ) DE 3.0 CORE MOD. 3; PA 3.5 Elective; MD 3.0 Elective; NJ 3.0 CORE (REQD.) * CE Online Info & Registration : www.circdelaware.org/education/schedule.cfm Download Registration Form : www.circdelaware. org/userFiles/CE_regForm_2017-2018.pdf

dia outlets including The Wall Street Journal and The New York Times. In addition, he ap- pears regularly on CBS Radio, NPR and Marketplace. CIRC President Bert Root welcomed Gus back to CIRC for a third successful presentation.

CIRC Welcomes New Members: Photo left to right: Bert Root, CIRC President; Patrick Taggart with Artisans' Bank; Paul Hughes with Sunesco LLC; Mary Kay Graver, Attorney with McElree & Harvey; Andrew Holloway with Cinnaire; and Jim Manna, CIRC Membership Committee Chairman.

Photo sponsor:

Good Times…Great Reasons to Join!

From left: #1) Dan Lesher, David Depetris; #2) Lorraine Sheldon, Becky Harrington; #3) Melinda McGuigan, Ed Jackson; #4) Brian Morgan, Lorriane Sheldon; #5 Jessica Cowperthwait, Walt Bryan; #6 Mystery Guests ;)

M id A tlantic F inancial D igest F eaturing C reative F inancing Company secured $49.6 million in financing for Meridia Metro HFF closes $92 million sale of enclosed mall in Long Island, NewYork

Real Estate Journal — June 9 - 22, 2017 — 7A



estbury, NY — Hol l iday Feno- glio Fowler, L.P.

(HFF) has closed the $92 million sale of The Mall at the Source, a 723,326 s/f, enclosed mall, and a loan secured by the adjoining Fortunoff Building, a vacant anchor store formerly occupied by Fortunoff, located in the Long Island community of Westbury. HFF marketed the property on behalf of the co-sellers, LNR Partners, LLC as manager for CMAT 99-C1 Old Country Rd., LLC a subsidiary of Starwood Property Trust, Inc., and a REMIC trust for which C-III Asset Management LLC is the special servicer. A private for- eign buyer purchased The Mall at the Source free and clear of existing debt and effectuated a deed-in-lieu of foreclosure transaction simultaneous with closing of the Fortunoff loan to acquire title to the Fortunoff Building. The 512,528 s/f Mall at the Source and the 210,798 s/f Fortunoff Building includes a four-story parking garage with 2,813 spaces in addition to the 1,025 surface parking spaces. Situated on a total of 38 acres at 1504 Old Country Rd., the transit-oriented property is positioned within the “Nassau Hub,” Long Island’s premier Queens, NY — Zeev Douek of Q10 New York Realty Advisors , an affiliate of Houlihan-Parnes Real- tors, arranged financing in the amount of $29.3 Million for two Queens apartment buildings (shown right). The buildings consist of a total of 240 units and offer a mix of Studios, 1-BR, & 2-BR units. The loans were placed with a NY-based bank. The interest rate for both loans was fixed at 3-3/8% for 5-years and pro- vided for a cash-out refinance of approximately $6 Million. “Both loans were tailored to the borrower’s specific financ- ing needs by locking into a

The Mall at the Source

Meridia Metro

commercial submarket. The Mall at the Source and the Fortunoff Building’s location places it in the heart of West- bury and 28 miles from NYC. The property sits in one of the wealthiest counties in the country, Nassau County, and has 143,470 residents earning an average annual household income of more than $124,258 living within a three-mile radius. The HFF investment sales team that represented the co-sellers was led by senior managing director Jose Cruz , managing directors Kevin O’Hearn and Chris Phaneuf , directors Michael Oliver and Stephen Simonelli and sup-

ported by senior managing director Andrew Scandalios . “We were very pleased as to the response from REITs, developers, and large institu- tional retail owners, local de- velopers. In the end, a foreign capital source was most ag- gressive on pricing and terms,” said Cruz. “The location and demographics were a major driver for this transaction.” FLORHAM PARK, NJ –— Holliday Fenoglio Fowler, L.P. (HFF) secured $49.6 million in financing for Meridia Metro, a six-story, 222-unit multi-housing property in Hackensack. HFF worked on behalf of the borrower, Capodagli Prop-

erty Company , to place the long-term, fixed-rate loan through MetLife Real Estate. Completed in 2016, Meridia Metro features a mix of one- and two-bedroom units with amenities such as stainless steel appliances, granite coun- tertops, hardwood floors and walk-in closets. Community amenities include a 24-hour fitness center; rooftop terrace with cabana bar and fire pit; social roomwith poker and pool tables; pet grooming room; and grade-level parking garage. The HFF debt placement team representing the borrow- er was led by senior managing director JonMikula andman- aging director Michael Klein .

“The borrower was seeking a way to take advantage of to- day’s historically low interest rates and avoid the contingent liabilities associated with the in-place construction loan while still in lease up,” Klein stated. “MetLife was able to lock the rate on a 15-year term at application, providing a structure that best met the borrower’s needs.” “HFF has been involved in several of these types of transactions of late,” Mikula added. “Many of our clients are looking to secure debt for a long-term hold or generation play and life companies are best equipped to handle this type of execution.” n favorable, low interest rate loan and allowed for the distri- bution of cash to accommodate the borrower’s strategy” said Douek. “The lender recognized the strong performance of the buildings which have histori- cally performed at near full occupancy and have generated consistent growth in income year after year.” Q10 | New York Realty Advisors, LLC is a member of Q10 Capital, LLC a com- mercial mortgage banking and investment sales company. Q10 NY is affiliated with Houlihan-Parnes Realtors, a multi-dimensional privately owned real estate company. n

Douek of Q10 New York Realty Advisors arranges $29.3 million in financing for 2 Queens apartment buildings

8A — June 9 - 22, 2017 — Creative Financing — Financial Digest — M id A tlantic

Real Estate Journal


C reative F inancing

Investing more than $10,000 per unit in interior and exterior upgrades Lucern Capital Partners breathes fresh life into Mt. Airy Asset

ucern Capital Part- ners, a real estate pri- vate equity firm head- quartered in Lakehurst, New Jersey, has acquired W i l t s h i r e Arms at the intersection of Critten- den Street and East Mt. Airy Avenue, in the Mt. Airy section of Philadelphia. The new owner plans to breathe fresh life into the asset, investing more than L Frank Forte

$10,000 per unit in interior and exterior upgrades, with the goal of repositioning the asset as a higher quality workforce product over the next twelve months. “We are incredibly excited to be part of the rapid trans- Riviera Beach, FL — Denholtz Associates , a pri- vately held, fully integrated real estate development, in- vestment and management company, has secured a five- year, $3.975 million refinanc-

formation of the historic Mt. Airy neighborhood. Our mis- sion is to invest in rental communities that serve the workforce demographi c, while providing above-mar- ket quality and management. Once complete, this asset ing on two of its flex proper- ties totaling 69,094 s/f at 7655 Enterprise Dr. and 7656 Byron Dr. in the Flamingo Commerce Center in Riviera Beach. Zach Nimhauser and Michael Brown of Ban-

will be the undeniable choice for renters in the immedi- ate area,” said Frank Forte, managing partner of Lucern Capital Partners. Frank Forte is managing partner of Lucern Capital Partners. n yan Commercial Capital negotiated the terms of the refinance with Mercantil Commercebank . Flamingo Commerce Cen- ter is a two building, single- story industrial complex of- fering front and rear load grade-level warehouse space with 24’ ceiling heights, ide- ally suited for office, ware- house, light assembly, show- room and light distribution requirements. Situated on 4.07-acres, the property is prominently located in the Sandlake Industrial Park between Northlake and Blue Heron Boulevard. With frontage on Inter- state 95, the property also offers easy access to the near- by Port of Palm Beach and PalmBeach Airport. Florida’s Turnpike is located two miles west of the property along the Bee Line Highway, which offers access to Miami to the south, and Orlando to the north. Cur rent l y 100 per cent leased, the Flamingo Com- merce Center includes a wide range of tenants making it an important piece of the Denholtz multi-tenant investment strat- egy. Tenants include Fastenal, Red Cross, Avid Gear, Maine-ly Remodeling, Vinyl Doctor, Tor- mentor Products, and Florida Kickboxing Academy. A 6,050 s/f lease was recently signed at the property by CTS3, an authorized Xerox partner. “At the core of the Denholtz investment strategy is a long- term strategic vision with an emphasis on opportunistic financing and refinancing of our holdings while building and maintaining strong re- lationships with local capital partners, no matter the mar- ket or business cycle,” said Stephen Cassidy , president of Denholtz Associates. This refinancing showcases the ad- vantages of this strategy and how we leverage our relation- ships with capital partners and understanding of local market conditions to ensure strong risk-adjusted returns through- out our portfolio.” n

Denholtz Associates secures $3.975m refinancing

Wiltshire Arms

Recently Closed Loans

$4,000,000 $5,362,500 $8,250,000 Multifamily Permanent Loan Office Acquisition/Bridge Loan Multifamily Permanent Loan Philadelphia, PA Fort Washington, PA Hamilton Township, NJ 75% LTV, 5/30, 4.11%, Non-Recourse 75% LTV, 24 Months, WSJP + 1.00% 75% LTV, 7/30, 4.0%, Non-Recourse

Real Property Capital is a Philadelphia based full service commercial mortgage banking firm with a regional focus and national capabilities. Our business model emphasizes client satisfaction through a high-touch, analytical approach that distinguishes us from the competition. Learn more about our distinct approach and proven track record of success at www.realpropertycapital.com . FOR MORE INFORMATION: R. Brenner Green, President 303 Harry Street • Conshohocken, PA 19072 • 610-456-9644 • bgreen@realpropertycapital.com

Real Estate Journal — Financial Digest — Creative Financing — June 9 - 22, 2017 — 9A


M id A tlantic

C reative F inancing



Designees on Staff


After all, you are a discerning customer TRUST THE PROFESSIONALS


516-771-2400 FREEPORT, NY 11520 Members of the Federation of Exchange Accommodators. Bonded and Insured EXCHANGE SOLUTIONS www.exchange-solutions.com Kim Rincones Sr. Exchange Coordinator Diane Schaefer, CES President Kim Rincones Sr. Exchange Coordinator Kim Rincones Sr. Exchange Coordi ator

Melissa Beck Exchange Coordinator

Diane Schaefer, CES President Diane Schaefer, CES ® President

Melissa Beck Exch nge Coordinator

10A — June 9 - 22, 2017 — Creative Financing — Financial Digest — M id A tlantic

Real Estate Journal


C reative F inancing

Barry Lefkovitz, Charles Nussbaum and Josh Munk handle financing Creative financing solution: Meridian arranged $11.1m in financing for the Alexander Hamilton Plaza


transaction was that the prop- erty is the only office tower in Paterson, in a market that is slowly beginning to pick up. The property was 97% occu- pied, but the market vacancy was 15%. The property has an appropriation clause and the primary tenant is the State of NJ. If the government discon- tinues the funding, any tenant has the right to vacate at any point, which was a concern to lenders. As part of the solution, Me- ridian focused on highlighting the property’s high occupancy, versus the market vacancy.

Additionally, the building is situated in the heart of Paterson’s Central Business District, directly across from the NJ Transit’s main line to Hoboken and is adjacent to the Robert Roe Federal Building, the Passaic County Court- house, and the County Ad- ministration building, which makes this asset very attrac- tive. “Ultimately, because of its location and high occupancy, we were able to demonstrate Alexander Hamilton Plaza as a unique business opportunity and negotiated a 10-year loan, featuring a fixed rate and the

lexander Hamilton Plaza, located at 100 Hamilton Plaza in Pa-

Meridian Capital Group’s Treitel & Helmreich arrange $18m in balance sheet financing $11.1 million in proceeds re- flect a 75% loan-to-value ratio,” said Meridian Capital Group managing director, Barry Lefkowitz . Meridian’s VP, Charles Nussbaum , and VP, Josh Munk assisted in the transaction. n

terson, NJ, is a high-rise class A office tower. The property features a full-service fitness center club, a reception desk with security guard and a gourmet cafeteria, and offers panoramic views of the city from the 12th floor. The com- mercial office tower houses a variety of tenants, including state and legal agencies, and medical and financial profes- sionals. The challenge that Merid- ian was facing during this

100 Hamilton Plaza


Carriage Club Apartments

Arlington, NJ — Merid- ian Capital Group arranged $18 million in balance sheet financing for the purchase of the Carriage Club Apartments multifamily property, located in Mount Arlington. The seven-year loan, provid- ed by a regional balance sheet lender, features a fixed rate of 3.50%. This transaction was negotiated by Meridian senior vice president, Elliot Treitel and senior underwriter, Ste- ven Helmreich , who are both based in the company’s Iselin office. Carriage Club Apartments, located at One Hillside Drive in Mount Arlington, NJ, is a three- story, 106-unit garden-style apartment complex, nestled in a quaint west end community. “The sale was predicated on our client assuming the existing agency financing,” said Treitel. “Despite this condition, Merid- ian negotiated more accretive and flexible acquisition financ- ing from a local savings bank and worked with the client to use the new financing to pay off the in-place agency financing," he added. In Caldwell, Meridian Capi- tal Group arranged $15.3 mil- lion in balance sheet financing for the purchase of the Marian Manor senior housing property located in Caldwell. The 10-year loan, provided by a balance sheet lender, fea- tures a fixed-rate of 4.45%. This transaction was negotiated by Meridian vice presidents, Jay Jacobovitch and JoshMunk , who are both based in the com- pany’s Iselin office. n

Flexible terms | Fast approval | Low interest rates

$3,500,000 30-unit building | East Rutherford $3,850,000 44-unit building | Union City

$4,650,000 70-unit building | Maple shade $6,825,000 71-unit building | Keyport

Livingston, Roseland, Florham Park, Millburn, West Orange, Summit, Somerset, Springfield & Somerville regalbanknj.com EqualHousing Lender EqualOpportunity Lender Member FDIC

Real Estate Journal — Financial Digest — Creative Financing — June 9 - 22, 2017 — 11A


M id A tlantic

C reative F inancing



Marian Manor Caldwell, NJ Senior Housing Property 159 Units

Jay Jacobovitch | Vice President 732.301.3220 | jjacobovitch@meridiancapital.com Josh Munk | Vice President 732.301.3226 | jmunk@meridiancapital.com



MAREJ – CYBDT - $15.3MM – Marion Manor – Jacobovitch – Munk – 5-26-17.indd 1

5/22/17 10:52 AM

12A — June 9 - 22, 2017 — Creative Financing — Financial Digest — M id A tlantic

Real Estate Journal


C reative F inancing

Loan will fuel construction of 4,500 residential units and some light commercial properties $2.28Million loan fromKennedy Funding Financial launches Housing Development in Jamaica K ennedy Funding Financial , an Engle- wood Cliffs, NJ-based Jamaica and the Caribbean helped Pegasus get its project off the ground. housing and commercial de- velopment. experience with Kennedy 16 years ago and I knew that they could make the deal happen.”

east of May Pen, the capital of and largest town in Ja- maica’s Clarendon Parish. May Pen is one of the most important trade centers and marketplaces in the entire Parish, with a large residen- tial community that mostly works in the agriculture and mining industries. The town is located approximately 35 miles west of Kingston, the capital of Jamaica, and the two population centers are connected by a section of the nation’s major thoroughfare, Highway 2000. The property is an attrac- tive investment, because home prices have risen 41% in Jamaica from 2010-2015, with young professionals and first-time homebuyers in middle-income brackets typically purchasing two-to- three bedroom homes for up to US$200,000 and single- occupancy apartments for up to US$178,957. These trends are expected to continue, as mortgage rates in the country are currently low. Borrowers in the Carib- bean can have great difficulty securing loans. Their local banks and lenders often can’t produce the funds, and con- ventional U.S.-based banks and lenders may simply re- fuse to shoulder the risk. When borrowers reach out to Kennedy Funding Financial, they find that our extensive history working in Caribbean markets allows us to quickly and efficiently provide them with the means to turn their dreams into reality. About Kennedy Funding Financial Kennedy Funding Finan- cial, one of the largest direct private lenders in the country, specializes in bridge loans for commercial property and land acquisition, development, workouts, bankruptcies, and foreclosures. The principals of the company have closed over $2.5 billion in loans to date. The firm’s creative financing expertise enables the closing of loans of up to a 75% loan- to-value ratio, from $1 million to more than $50 million, in as little as five days. Kennedy Funding Financial continues to actively seek new funding opportunities throughout the world. Kevin Wolfer is CEO/ president of Kennedy Funding Financial. n

Closing a land loan in the Caribbean is no small task for any lender. So when Pegasus’ Canadian-based mortgage broker needed to find money for its client in Jamaica, they knew there was only one com- pany who could deliver it. “Kennedy Funding Finan- cial,” said Angelo Butsianis , president of Equis Capital Finance . “They were the only lenders that I knew of that could close a loan in the Caribbean. I had a positive

The two-year private loan from Kennedy Funding Fi- nancial will give Pegasus the working capital and soft costs it needs to begin construc- tion on approximately 4,500 three bedroom/three bath residential units, as well as some light commercial de- velopment. The project will consist of three phases to be completed over a period of several years. The site is located north-

direct pri- vate lender announced that it has c l o s e d a $2,228,000 loan to Peg- a s u s D e - ve l opment C o m p a n y

There are many challenges to getting a land deal done overseas: banks and lenders in a foreign nation might not be able to find the money for a large-scale loan, and the lack of knowledge of for- eign government regulations and politics can frighten off U.S.-based traditional lend- ers. Fortunately, Kennedy Funding Financial’s vast experience in closing loans in

Kevin Wolfer

Ltd. Pegasus needed a bridge loan to turn 595.83 acres of undeveloped land in Jamaica into a massive residential

Working Capital Residential Community

Working Capital 121-Unit Assisted Living Facility

Acquisition/Working Capital Multifamily Development


$1,705,000 EW Acquisition, LLC East Windsor, New Jersey


Bedford Crest, LLC Suitland, Maryland

P egasus Development Company Ltd. Clarendon Parish, Jamaica

We offer 24-hour commitments and closings in as little as 5 days.

1-800-342-8500 KennedyFunding.com

borrow $1million-$50 million: land, development, acquisitions, bankruptcies, discounted payoffs, note purchases, workouts and foreclosures HOW CAN WE FUND YOU ?

Real Estate Journal — Financial Digest — Creative Financing — June 9 - 22, 2017 — 13A


M id A tlantic

C reative F inancing $50,000,000

19 East 64th strEEt NEw York, NEw York A 5 story iconic luxury townhouse. mansion consisting of 21,000 square feet. The undersigned arranged the above financing.

David Horowitz Richard Horowitz

622 Third Avenue New York, NY 10017 (212) 986-8400 Fax: (212) 983-0512 www.cooper-horowitz.com

Real Estate Financing

14A — June 9 - 22, 2017 — Creative Financing — Financial Digest — M id A tlantic

Real Estate Journal


C reative F inancing

By Barry A. Furman, Esquire, Kaplin Stewart Compromising an SBA loan


usinesses and indi- viduals who are un- able to pay a Small

SBA is final and conclusive on the Borrower, the SBA and the bank that made the loan (“Lender”). The circumstances under which the SBA will approve an OIC, however, are narrow and the rules for submitting an OIC are strict. The SBA will generally not consider an OIC if the business is a going concern. Whether the loan is secured by business assets or real estate, the SBA will generally require that the collateral be liquidated before the SBA will consider an OIC. In the case of a loan made

to purchase real estate for a real estate business, the go- ing concern rule may be more easily satisfied than a busi- ness that has not yet closed its doors. Compromise of a going concern, however, may be ap- proved if the viability of the business is at stake or liquida- tion of collateral commenced. An OIC must first be sub- mitted to the Lender since SBA loans are made by banks, not the SBA. Rather, the SBA is the guarantor of payment to the Lender. The OIC must be submitted on

SBA Form 1150 together with a completed financial state- ment, generally Financial Statement of Debtor, SBA Form 770, and fully substan- tiated with documentation. The Lender must approve the OIC before sending it to the SBA for approval. Factors that will be con- sidered for acceptance of an OIC include the following: the Borrower’s ability to pay; ap- plicable state and federal ex- emptions; and cost and time that would be required to collect through enforcement

mechanisms. Hardship may also be considered. In the case of an individual Borrower or guarantor, personal health, age and economic situation will likely be considered for hardship. Generally, an OIC will not be accepted unless it reflects the Borrower’s ability to pay and should be in an amount that the Lender/SBA could re- cover in a reasonable amount of time through enforcement mechanisms. An OIC will not be accepted if the Bor- rower can pay its obligation in full through an installment agreement or if acceptance would harm the integrity of the SBA loan programs. These factors are similar those considered by the IRS when reviewing an offer in compromise. In the case of loans made under Section 7(a) of the Small Business Act, the Lender has the sole respon- sibility for conducting all liq- uidation activities. Generally, the Lender has unilateral authority to take all neces- sary action to liquidate the loan. All substantive Lender liquidation activities and decisions must be justified and documented to obtain the SBA’s written approval of the OIC. Submitting an OIC does not ensure that it will be ac- cepted. Rather, it begins a process of evaluation and ver- ification. Generally, an OIC that reflects the Borrower’s ability to pay will be accepted if the information required is submitted and substantiated and includes an explanation of financial hardship. Barry A. Furman is a principal with Kaplin Stewart. n CronheimMortgage secures a cash-out refinance Davenport , IA — Cronheim Mortgage se- cured a cash-out refinance in the amount of $14.5 million for Village Shopping Center in Davenport, Iowa. After ac- quiring the property in early 2014 - only 70% leased and in need of re-branding - the borrower completed a full cosmetic upgrade, stabilized near-term lease rollover and brought in new tenants in- cluding a new anchor, Ross Dress for Less. n

Business Ad- ministration (“SBA”) loan may be able to pay less than the full amount o f the indebt- e d n e s s i n set t l ement

Barry A. Furman

of the Borrower’s obligation. This is referred to as an offer in compromise (“OIC”). An OIC that is approved by the

Firmly Rooted in the Law and in the Community We are well grounded in every facet of real estate law, from acquisition to construction. We are committed to serving the needs of our clients and our communities.

Kaplin Stewart Attorneys at Law

Contact: Barry A. Furman • bfurman@kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-941-2529 • www.kaplaw.com Visit our Real Estate Blog: www.philadelphiarealestatelawyer.com Visit our Construction Blog: www.pennsylvaniaconstructionlawyer.com Other Offices: Cherry Hill, NJ 856-675-1550& Philadelphia, PA 215-567-3120

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64

Made with FlippingBook - Online Brochure Maker