8-10-18

- DC

M Clients are a balance of institutional investors & private individuals Gebroe-Hammer Associates tops rivals with 5,645 units sold for $775+M in Q1 &Q2 ulti-family invest- ment brokerage firm Gebroe -Hammer

ISSUE HIGHLIGHTS Volume 30, Issue 15 August 10 - 23, 2018 1031 EXCHANGE MULTIFAMILY FINANCING Section 8-11A D2 CAPITAL ADVISORS SECURES $70M BRIDGE FINANCING

nationally,” said Uranowitz. “A good percentage of our cli- ent base remains balanced between institutional investors and private individuals – many of whom have been associated with our firm since its inception 43 years ago and form the back- bone of multi-family ownership in the region.” While initially concentrating on and dominating the multi- family property space in New Jersey, Gebroe-Hammer has evolved during the past 43 years to establish a major presence in the northeastern Pennsylvania and New York State submar- kets as well as represent client interests nationally. “The first six months have been extremely robust in terms of deal totals and units sold, with demand for every as- set class – from Class-A to value-add B/C product – hit- ting all-time high levels,” said Uranowitz. “Apartment build-

ings, regardless of vintage or tenant demographic, are the frontrunner on investor lists that cover the full spectrum of neighborhoods from transit- rich cities that are all the rage among millennials to commut- er-friendly suburban-bedroom communities.” Gebroe-Hammer’s notable sales highlights during Q1 and Q2 mirror these trends. In early June, the firm finalized a groundbreaking $328M portfo- lio sale of 118 buildings/2,137 units spanning NJ’s Gateway Region of Hudson County. Ex- clusively representing a single seller, over the course of 18 months Gebroe-Hammer ar- ranged six separate deals of the urban low- and mid-rise proper- ties poised for repositioning. Other key NJ trades have involved several prominent properties throughout the state. These include the $56M sale of Thousand Oaks Village, a

304-unit garden community in Atlantic Highlands; $50M sale of 452 multi-family units at Forest Hill Terrace Apart- ments, a critical-mass garden- apartment community in New- ark’s tree-lined North Ward; and $30M sale of Donaldson Park Apartments in Highland Park. New price-per-unit bench- marks also were set in East Orange ($257K+/742 Park Ave.) and Cranford/Union County ($337,500/The Hamlet). “Our success is directly tied to every broker we have deeply en- trenched in individual territo- ries,” said Uranowitz. “Because of their unrivaled knowledge of market values and current active investors, they are able to achieve maximum value for owners. Despite upticks in interest rates, cap rates have not decompressed remarkably while demand continues to be voracious for multi-family product.”  employers, the MARC train, and commuter accesses in- cluding I-95, Hwy. 100, and BWI Airport. The 12-year loan is struc- tured with eight years of in- terest-only payments, followed by a 30-year amortization. The transaction was led by managing directors Matthew Hodson and Debra Gold- stein of M&T Realty Capital Corporation’s Falls Church, VA and Washington, DC of- fices, respectively. M&T Bank senior commercial real estate relationship manager LeVar Crooms also collaborated on the transaction. “Matt and I are delighted to have been able to assist Elm Street with their permanent fi- nancing needs for this wonder- ful new community,” Goldstein said. “Our Freddie Mac Multi- family loan programs provide long-term, non-recourse financ- ing to experienced developers, whether during lease-up or after full occupancy has been obtained.” 

Associates is outpacing its competitive set on a regional and national level with a re- ported $775+M in sales encom- passing 5,645 units for Q1

Ken Uranowitz

and Q2 2018, according to Ken Uranowitz , president. The firm serves a diverse client base of private individuals, private equity firms and institutional investors focusing on suburban and urban high-rise and garden- apartment properties. “These latest milestones have shored up Gebroe-Hammer’s posture within the multi-family investment brokerage space as the firm of choice among private and institutional in- vestors locally, regionally and

Hodson and Goldstein lead transaction with Crooms collaboration M&T Realty Capital provides $62.45M in permanent financing on recently constructedmultifamily prop.

MAREJ EVENTS September 20, 2018 NJ Apartment/Multifamily October 5, 2018 3rd Annual New Jersey CRE Leadership Summit For speaking and sponsorship information, please contact: Lea at 781-740-2900 or lea@marejournal.com

JESSUP, MD — M&T Re- alty Capital Corporation has closed a $62.45 million Freddie Mac Multifamily Conventional loan for the per- manent financing of The Elms at Shannon’s Glen, a 364-unit recently constructed apartment complex in Jessup. The project developer is Elm Street De- velopment , based in McLean,

Matthew Hodson

Debra Goldstein

LeVar Crooms

Directory

Financial Digest..........................................................3-11A Multifamily Financing. .................................................5-7A 1031 Exchange...........................................................5-12A DelMarVa.............................................................. 15-18A Central New Jersey Spotlight..................................... 5-9B New Jersey Professional Directory. ....................... 14-15B Pennsylvania......................................................Section C Central Pennsylvania Spotlight................................ 5-12C

www.marejournal.com Upcoming Spotlights 40 under 40

The Elms at Shannon’s Glen

VA. M&T Bank provided the prior construction financing for the project. The Elms at Shannon’s Glen is located west of the

Baltimore-Washington Pkwy., biking distance to National Business Park and National Security Agency, and conve- nient access to other regional

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Mid Atlantic R eal E state J ournal Publisher, Conference Producer . .............Linda Christman AVP, Conference Producer ...........................Lea Christman Account Executive ........................................... Steve Kelley Account Executive ............................................. Kim Brunet Account Executive ........................................ Marisol Chase Senior Editor/Graphic Artist ..........................Karen Vachon Office Manager ...............................................Kerrin Devine Contributing Columnists .............................Keith Bawolek; Daniel Schuster,HF Planners, LLC; Jason Gottdenker, Bane Realty Capital; Jack W. Intrator CPM, RAM, ARM, Realty- Mark CityScape LLC Mid Atlantic R eal E state J ournal — Published Semi-Monthly Periodicals postage paid at Hingham, 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. 30, Issue 15 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 The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal

Is The Value Of Your Urban Parking Garage Hurting The Value Of Your Office Building? P Keith Bawolek arking is a critical com- ponent of any office property. For an office building to be competitive in the marketplace, there needs to be sufficient parking to meet the needs of tenants and visitors. However, the future demand of parking is uncertain today. You can’t pick-up a magazine or newspaper that doesn’t warn that the upcoming onslaught of self-driving cars will change the world’s driving (and parking) habits forever. Third-party ride sharing services are disrupting transient and to a lesser extent monthly parking. How do these trends impact the value of the parking facili- ties currently serving your of- fice project? More importantly, how does a declining parking garage value impact your of- fice building asset? Is it time to re-evaluate how your garage is managed, and more impor- tantly, is the current make-up of parking demand drivers appropriate for your urban location? Just like your retirement portfolio, it’s always good to

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re-evaluate your parking opera- tions annually. Parking Revenue Control Technology and Efficient Staffing Schedules There’s increasing pressure across the U.S. to increase non-union hourly wages to $15.00 per hour or more, which could have significant financial implications for office parking owners and operators. The good news is that there are tech- nological solutions available that effectively and efficiently minimize the amount of person- nel needed to operate garages, without sacrificing customer service. Do you have the right equipment for your parking op- eration? The correct software? It’s also important to stay on top of payroll administration. Make sure payroll withhold- ings and pension deductions accurately reflect the required

percentages of the state and city your garage is located in. Many garage owners have pen- sion costs deducted for hourly- garage workers as a garage operating expense only to find that many employees don’t stay employed long enough for the required vesting period. Where are those withholdings? Does your garage need to be open and staffed 24/7? Monthly tenant parkers can always access the garage via their proximity card or AVI tag. But have you kept the garage open and staffed after normal busi- ness hours and on weekends to capture transient restau- rant and bar business? If so, you may want to rethink your strategy because this parking demand driver is now serviced by the third-party ride sharing services and is a diminishing continued on page 18A

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www.marejournal.com F inancial D igest F eaturing M ultifamily F inancing & 1031 E xchange Klein &Hew represent the borrower, Wheelock Street Capital in $40Macquisition financing Abod & Carey of the HFF debt placement team represent borrower in $104 million financing M id A tlantic Real Estate Journal — August 10 - 23, 2018 — 3A

YSONS, VA — Holli- day Fenoglio Fowler, L.P. (HFF) announces $104 million in financing for Greensboro Park, a two-build- ing office portfolio totaling 505,085 s/f in Tysons. The HFF team worked on behalf of the borrower, Velocis and Altus Realty , to secure the five-year, floating-rate loan through JP Morgan Chase & Company . Loan proceeds were used to acquire the property. Greensboro Park is located at 8180 and 8200 Greensboro Drive in the Northern Virginia submarket of Tysons. The prop- erty has superior connectiv- ity to the entire Washington, D.C. metropolitan area via the Greensboro Metro and Tysons Corner stations as well as Leesburg Pike and the Dulles Access Toll Rd. Additionally, Greensboro Park is proximate to many of the area’s sought- after retail locations such as T PHILADELPHIA, PA — D2 Capital Advisors , the transaction advisory affiliate of the D2 Organization has secured $70 million in bridge financing to complete developer Eric Blumenfeld’s vision for North Broad Street. The financ- ing was provided by Guggen- heim CREF , Susquehanna Investment Group , and the Philadelphia Redevelop- ment Authority . “We are thrilled to begin the next chapter of the North Broad Street story,” said Eric Blu- menfeld, president of EBRM , “over the next six to 12 months, this corridor is going to take off like a rocket ship! In addition to the residential component of the Divine Lorraine, we have six new amazing dining establishments underway with prominent locally-based mar- quis chefs to continue the vision originally started by Marc Vetri at 640 Lofts. Thousands of new office folks, residents, and visi- tors alike will be converging to this long awaited reawakening of this grand corridor. North

loan with a financial services company. The 13-story Hyatt Regency Dulles features the LEED Silver, and IACC-certified Ex- ecutive Meeting Center con- structed in 2014 that consists of 29,000 s/f of meeting and event space, including a ballroom and outdoor gazebo reception area. Situated on 6.38 acres at 2300 Dulles Corner Blvd., the hotel is adjacent to the Washington Dulles International Airport, which welcomed almost 23 mil- lion annual passengers in 2017, and 1,000 feet from the new In- novation Center Metro station, which provides direct access to the airport and downtown Washington, D.C. Additionally, the property has access to and visibility from VA-28 and 267. The HFF debt placement team representing the borrower included managing director Steven Klein and senior direc- tor Chris Hew . 

Greensboro Park, Tyson, VA

Hyatt Regency Dulles

The Boro, Tysons Central, Tysons Galleria and Tysons Corner Center. Renovated in 2015, the 11- and 14-story tow- ers feature a premier amenity package, including a fitness center, conference facilities, tenant lounges, on site café and concierge service. Greensboro Park is anchored by BB&T and

is collectively 83 percent leased to 59 tenants. The HFF debt placement team representing the bor- rower consisted of managing director Cary Abod and direc- tor Robert Carey . In a second statement, HFF announced the $40 million acquisition financing for Hyatt

Regency Dulles, a 316-room, full-service hotel adjacent to Washington Dulles Interna- tional Airport in the Wash- ington, D.C.-area suburb of Herndon, Virginia. The HFF team worked on behalf of the borrower, Whee- lock Street Capital , to place the five-year, floating-rate

D2 Capital Advisors Secures $70M Bridge financing to help complete Eric Blumenfeld’s Vision for the North Broad Street Corridor in Phila.

Divine Lorraine interior

Street will become the model for bringing people together from all walks of life by creat- ing new jobs in a flourishing community that now has some of the best living and entertain- ment amenities that the city has to offer. ” The Divine Lorraine Hotel is an eleven-story building that has been transformed into 101 class A apartments and will in- clude 20,000 s/f of ground-floor retail facing North Broad St. Located just south of the Divine Lorraine is the Studebaker – a three-story mixed-use office building that was originally built in 1916. The restoration of

each building has contributed to the ongoing revitalization of Philadelphia’s North Broad cor- ridor, which has been pioneered by Blumenfeld. “It was important for us to partner with lenders that un- derstood the developer’s grand vision for North Broad,” said Keith Delaney , president of D2. “We knew the sub-market very well, having recently se- cured financing for The Met and Mural Lofts, and we are very optimistic about how all of EBRM’s properties along North Broad will work in col- laboration to enhance the com- munity. 

Divine Lorraine

Broad Street is about to hit its stride with lights on at every block as we become a 24 hour community that is as diverse as any community in the nation. Our story is as holistic as they come both architecturally and communally; it was a vision

originally started by Pastor Herbert Lusk, invigorated by chef Marc Vetri and with the introduction of the federal op- portunity zone, we now have a recipe to accelerate the attrac- tion of capital in urban America and I expect that North Broad

4A — August 10 - 23, 2018 — Financial Digest — M id A tlantic

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F inancial D igest

Kennedy Funding Financial Securing funding for properties in less-than-ideal locations

o you’ve finally found that perfect piece of real estate – but unfortunately, the

will happen in the event a bor- rower defaults on their loan. For properties in and around cities, lenders presume that that they can easily recuperate their money in the event of a defaulted loan. In rural areas, however, if a borrower defaults and the bank forecloses, the property could wind up on the market for months or years before a buyer comes along, devaluing it and creating a headache for the financing institution. The intended use of land in a rural area also impacts conven- tional lenders’ considerations.

For example, financing institu- tions face limits on foreclosing on a farm if the owner derives their primary income from the property. That can add 12 months from the date of default before foreclosure proceedings can even begin. The risk of getting tied up in years of re- cuperating efforts is enough to discourage most conventional lenders from issuing loans to these types of properties. Some lenders simply don’t see the value of extending financing to properties so far away from highly-traveled areas. For commercial proper-

ties in particular, conventional lenders fall into the trap of thinking that the lack of a mass market means the lack of a market altogether. Conventional lenders’ reti- cence aside, there are alterna- tive financing solutions, chief among them direct private lenders, who can work around these stringencies if they see the value of the property or the potential of the deal. They are not beholden to the same strict procedures as conventional lenders, so they can make exceptions to the rules that a traditional financing institu-

tion cannot. This gives them the latitude and the flexibility to extend loans to a property far from a population center. However, direct private lend- ers aren’t in the business of handing out money. There has to be true potential in order to fund a deal far from a major population center. Fac- tors such as housing, major highways, competition, and other commerce in the area are all brought into account. If you articulate the great value and potential you envision for the property, a direct private lender can share in your vision. “When a borrower comes to us with an opportunity in a remote location, we always ex- amine it to see the merits of the deal,” said Kevin Wolfer, CEO of Kennedy Funding Financial. “Oftentimes, there are factors which indicate that this deal will be successful and profit- able – and those are deals we are happy to fund for qualified borrowers.” Partnering with experienced lenders that can point to prov- en successes is key to a positive working relationship. Ken- nedy Funding Financial has a track record of supporting investments with tremendous potential because we see the value of the investment, just like you do. Kennedy Funding is a nationwide direct pri- vate lender specializing in bridge loans for com- mercial property and land acquisition, development, workouts, bankruptcies, and foreclosures.  Kennedy Funding closes $2.145M loan to Cali. developer ENGLEWOOD CLIFFS, NJ — Kennedy Funding, the Englewood Cliffs based direct private lender announced the closing of a $2.145 million loan to Tanglewood Racquet Village, LLC. Proceeds of the loan will be used to finance the purchase of 17.5 acres of raw land in Linda, CA. According to Kevin Wolfer, CEO of Kennedy Funding, the loan was more than 38% above the property purchase price of $1.5 million, a very uncommon occurrence when it comes to lending on real estate. “It is a welcome sign when property valuations arrive at values well in excess of the purchase price,” said Wolfer. 

bank doesn’t seem to agree because it’s not located near a popu- lation center. Traditional financing in- stitutions are not willing to

Kevin Wolfer

fund deals outside of cities or other major population center, citing risk aversion. Banks and other conventional lend- ers are concerned about what

Investors welcome! Contact us

Contact: Carlos A. Perez-Santalla Executive Director-Investor Relations O:732-465-1231 csantalla@nordeninvestments.com

Real Estate Journal — Financial Digest — Multifamily Financing — August 10 - 23, 2018— 5A

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M ultifamily F inancing

Ware arranges $14.55 million Delaware multifamily refinance Aanonsen of Grandbridge originates $49.6 million loans for repeat clients in Virginia R

ICHMOND, VA — Grandbridge Real Estate Capital closed a $28.66 million first mortgage loan secured by First National Apartments, a 154-unit multi- family community in Richmond. Grandbridge Washington, DC based senior vice president Paul Aanonsen originated the transaction for a repeat client. The permanent, fixed rate loan was provided through Fannie Mae’s Green Rewards loan program. The nonrecourse financing was structured with an initial period of interest- only, followed by a 15-year term and 30-year amortization. The 19-story building, built in 1915 as a bank and office building, was converted to apartments in 2012. Com- mon area amenities for the downtown property include a fitness center, game room outfitted with billiards tables, shuffleboard, darts and WiFi lounge, valet dry cleaning ser- vice, controlled access, package acceptance, attached gated ga- rage parking, and convenient access to public transportation. In a second transaction, Grandbridge closed a $21 mil- lion first mortgage loan secured by Stuart Hill Apartments, a 180-unit multifamily com- munity in Winchester. The property is less than 20 miles from I-66, providing direct ac- cess to Washington, DC and the I-95 corridor, making it within commuting distance of the Washington, DC, area. Aanonsen originated the transaction for a repeat client. The permanent, fixed rate loan was arranged through Freddie Mac. The nonrecourse financing was structured with an initial period of interest- only, followed by a 10-year term and 30-year amortization. In addition, Grandbridg closed a $14.55 million first mortgage loan secured by Brandywine Apartments, a 444-unit multifamily commu- nity in Wilmington, DE. Grandbridge Tampa, FL based vice president Thomas Ware originated the transac- tion. The 20-year, fully am- ortizing loan, was arranged through one of Grandbridge’s life insurance company corre- spondents. Built in 1978, Brandywine Apartments is comprised of 37, three-story garden-style apart- ment buildings on 25.47 acres of land. 

First National Apartments

Stuart Hill Apartments

Brandywine Apartments

6A — August 10 - 23, 2018 — Multifamily Financing — Financial Digest — M id A tlantic

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M ultifamily F inancing

ASHINGTON, D.C. —The Parks at Wal- ter Reed, a 66-acre First Vertical Component closing & commencement of construction for Abrams Hall DC developers join forces to close on financing for $27MM deal to fund affordable senior community W has included both public and private funding, below is the monetary breakdown:

Sky Housing) with support from the District of Colum- bia, is an adaptive reuse of a vacant Army barrack build- ing— “Building 14M”—at Walter Reed. The building will feature 64 apartments targeting seniors earning 50 percent or less of area median income (AMI) and 16 perma- nent supportive housing units for seniors earning 30% or less of AMI. This project will help meet critical affordable housing needs for seniors in the Dis- trict upon completion in 2019. Financing for the project

• Citi will provide $12.5 mil- lion in construction financing and $5.4 million in permanent financing will be provided by the Federal Home Loan Mortgage Corporation (Freddie Mac) . • The D.C. Department of Housing and Community Development’s Housing Production Trust Fund will provide an additional $9.7 million loan alongside a $168K Department of Behavioral Health grant. • SunTrust Community Captial will invest $10.8 mil- lion in equity raised through the investment in Low-Income Housing Tax Credits. The developer team behind the project includes: • Urban Atlantic, a na- tionally recognized expert in large-scale, public-private redevelopment and finance. • Hines, a privately owned global real estate investment, development andmanagement firm with locations in 201 cit- ies in 24 countries. • Housing Up, an award- winning nonprofit affordable housing developer and provid- er of housing-based services designed to combat homeless- ness in DC • 1750 K Affordable Part- ners, a CBE joint venture between two experienced DC based developers: Evergreen Urban and Blue Sky Housing. “We are delighted that this is one of the first developments at The Parks at Walter Reed. The 80 affordable seniors apartments at Abrams Hall meet our promise to the com- munity and will serve one of the largest unmet needs in Washington, DC,” said Vicki Davis , managing partner at Urban Atlantic. Abrams Hall Senior Apart- ments is a component of the broader project –The Parks at Walter Reed—a 66-acre, 3.1 million SF public-private rede- velopment of the former Wal- ter Reed Army Medical Center campus. The Parks, led by the Master Development team of Hines, Urban Atlantic, and Triden Development Group, will feature adaptive reuse of existing historic buildings, new construction and over 20 acres of open space. The project is a public-private redevelopment in partnership with the Dis- trict of Columbia. 

redevelopment of the former Walter Reed Army Medical Center, announced the close on financing for Abrams Hall Senior Apartments, a $27 mil- lion deal to fund an 80-unit affordable senior housing de- velopment. The project, led by a joint venture between Urban At- lantic, Hines , non-profit Housing Up and 1750 K Af- fordable Partners (a CBE joint venture comprised of Evergreen Urban and Blue

Rendering of The Parks at Walter Reed (Courtesy Walter Reed Army Medical Center Local Redevelopment Authority)

Real Estate Journal — Financial Digest — Multifamily Financing — August 10 - 23, 2018— 7A

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Construction begins on $10 million Affordable Housing Development in Richmondville HCR works with CPC to identify qualified developers and projects R

12 one-bedroom, five two-bed- room and three three-bedroom units. All the apartments will be affordable to moderate- income residents and feature green building practices, includ- ing energy efficient appliances, building envelope, mechanical systems, and fixtures. The project is being developed by Housing Visions . Financing for the almost $10 million Candlewood Court I and II development was delivered primarily through the State’s Small Project Affordable Rental Construction. SPARC provides financing on small rental proj- ects with between eight and 20 apartments. SPARC is funded from the Governor’s Office of Storm Recovery’s $4.4 billion federal Community Develop- ment Block Grant-Disaster Recovery allotment, and can only be used in areas that were impacted by SuperstormSandy, Hurricane Irene, and/or Tropi- cal Storm Lee. HCR worked with the Community Preser- vation Corporation (CPC) to identify qualified developers and projects via a competitive Request for Proposals. CPC administers the program under HCR’s guidelines. Each 20-apartment phase of Candlewood qualified sepa- rately under the program. The two phases combined received a total of $7.5 million from HCR through the SPARC program. CPC is providing two $1 mil- lion permanent loans – one per phase – financed through their partnership with the New York State Common Retire- ment Fund. The construction of Candlewood is being financed by CPC through two $4.6 mil- lion construction loans, one per phase. “Hurricane Irene and other severe storms that have im- pacted our upstate communities have shown us how indispens- able our affordable housing stock is,” said Glenn Lunde , VP& mortgage officer at CPC. “Working with GOSR and HRC to administer the SPARC pro- gram is opportunity to lend our unique expertise to help communities recover and re- build what these storms have taken. My sincere thanks to Housing Visions for their work and partnership, to Governor Cuomo and his teams at HCR and GOSR, and to Comptroller DiNapoli and our funders at the CRF for their commitment to investing in housing opportu- nities throughout the state.” 

ICHMONDVILLE , NY — New York State Homes and Commu- nity Renewal announced the beginning of construction on Candlewood Court, a $10 mil- lion, two-phase development to create 40 affordable apart- ments that will serve as a gateway to Richmondville and help continue its recovery from Hurricane Irene’s flooding and the destruction it caused to the area’s housing stock. New York State Homes and Community Renewal Commis- sioner RuthAnne Visnauskas said, “Candlewood Court will deliver affordable housing to

Candlewood Court is built outside the flood plain, safe from future rising waters, in keeping with Governor Andrew M. Cuomo’s pledge to help flood-damaged communities build back stronger, better and smarter. When complete, Candlewood Court will join a Candlewood Court rendering

a region in critical need while helping New York State’s com- munities build back stronger and smarter. We are lucky to live in a state where the Gov- ernor knows that safe, resilient, affordable housing is essential to guaranteeing the continued expansion of our economy.”

Dollar General store and Radez Elementary School, which are already part of the gateway. Both phases of the $10 million development are now under construction. The Candlewood Court devel- opment will consist of two 20- unit buildings, each containing

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Mick Law P.C. LLO: Based in Omaha, Nebraska, Mick Law is a specialty firm comprised of a�orneys who each possess a concentrated area of exper�se and in-depth knowledge. The a�orneys also have professional and educa�onal creden�als, including MBAs and securi�es industry licenses. While providing a broad range of legal services to our valued clients, our firm focuses on two principal areas of prac�ce: Broker/Dealer, Registered Investment Advisor (RIA), Family Office Representa�on; and Real Estate Finance. Addi�onal areas of prac�ce include Real Estate Transac�ons, Corporate Law, Corporate Finance, FINRA Adver�sing Review, and Li�ga�on. Broker/Dealer, Registered Investment Advisor, Family Office Representa�on: Our firm understands the needs of today’s local and na�onal broker/dealers, registered investment advisors, and family offices since we have been in their shoes. Firm a�orneys have been employed by broker/dealers who have syndicated real estate equity offerings in hospitality, senior living, office and retail development and acquisi�on, and have provided business planning and tax counsel. Our firm’s due diligence representa�on involves a concentra�on in real estate equity fund, development project, distressed debt and REIT reviews. We also have significant experience in oil and gas, private equity, leasing and mortgage securi�es products. We provide clients individualized legal opinions with an addi�onal focus on project and fund structure, financing, valua�on and exit analysis. We believe this experience allows us to assist our clients by understanding not only what the regulators require, but more importantly how a DPP product compares to its peer group and the likelihood of program performance. Our Mission: As we at Mick Law hold ourselves to the highest professional and personal standards, we know that our clients deserve the same. We feel that it is impera�ve in today’s business environment to provide the highest level of legal representa�on, quality customer service, valuable economic analysis, and reasoned direc�on. Very simply, our firm is investor-centric.

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10A — August 10 - 23, 2018 — §1031 Exchange — Financial Digest — M id A tlantic

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1031 E xchange

By Edward Fernandez, 1031 Crowdfunding, LLC 8 reasons to consider a DST for your 1031 Exchange

Delaware Statuto- ry Trust (DST) is a separate legal entity

repairs or faces unexpected expenses. However, all earn- ings and proceeds above the reserve amounts must be dis- tributed to the beneficiaries on a regular basis and within the expected timeframe. 5. Investors do not have to qualify for the debt. Investors do not have to quali- fy for the property’s mortgage loan. The DST is the only entity liable for the mortgage loan and it is nonrecourse to the investor. Investors do not have to provide personal docu- mentation for loan approval and do not have to worry about other personal assets or liabilities affecting the status of the loan. 6. No stress over exchange deadlines. Because an investment in a DST can close very quickly, investors do not have to worry that the acquisition transac- tion won’t close on time or that they won’t be able to acquire a chosen property because of the competition in the market. 7. Eliminate boot. When a replacement property is lesser in value than the previously sold property, the remaining money must be taxed. This leftover money is known as excess boot. With a DST you can invest down to the penny, ensuring that 100% of your exchange funds are invested. 8. 1031 exchange backup plan. 1031 exchange investors can include a DST property among their three candidate properties identified during their identification period. If they cannot acquire their first two choices of identified can- didate properties in time to meet their deadlines, the DST property remains an option that can close very quickly to meet the exchange deadline. 1031 Crowdfunding, LLC is an online marketplace where real estate investors can find, view, and purchase a variety of available, turn-key, invest- ment-grade properties. We present investors with 1031 exchange-qualified properties through Delaware Statutory Trusts (DSTs) to ensure every 1031 exchange investor has the opportunity to complete a successful exchange. Edwa r d Fe rnande z is founder/CEO of 1031 Crowdfunding, LLC based in Orange County, CA. 

is treated as a direct interest in real estate, you are as- signed fractional ownership of equity and debt, fulfilling your exchange requirements. Minimum investments are typically between $25,000 and $100,000; therefore, a single investor may own a fractional interest in a single property or entire portfolio and receive distributions from the opera- tion of the trust, from rental income and the eventual sale of the assets. Here are 8 reasons why we keep talking about DSTs. 1. No management respon-

investors to acquire partial ownership and experience the benefits only found with these types of properties. 3. Opportunities for diver- sification. Because you can choose the amount you invest in a DST, you can split your investment among multiple DST proper- ties, giving you an opportunity to diversify your real estate portfolio. 4. Regular distributions. DSTs are permitted to keep a reasonable amount of cash reserves to be prepared in the event the property requires

sibilities for you. If you’ve owned rental real estate in the past, you know that property management is time-consuming and stressful. Some investors find that it can be a major relief to hand over the management and the decision-making responsibili- ties to a professional team of experienced managers. 2. Acquire investment-grade, high-value properties. Most real estate investors cannot afford to invest in multi-million-dollar proper- ties on their own. DSTs pro- vide a unique opportunity for

created as a trust under D e l a w a r e S t a t u t o r y Law. A DST al l ows you to co-invest wi th other investors in one or nu-

Edward Fernandez

merous properties. Although DSTs aren’t new, current tax laws have made them popular among 1031 exchange inves- tors. Purchasing into a DST

Real Estate Journal — Financial Digest — §1031 Exchange — August 10 - 23, 2018 — 11A

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1031 E xchange

Designees on Staff

• 20 YEARS EXPERIENCE • COMPETITIVE FEES • CERTIFIED EXCHANGE SPECIALIST® ON STAFF • 24/7 TELEPHONE ASSISTANCE • NATIONALLY RECOGNIZED • DEFINITIVE ANSWERS TO YOUR EXCHANGE TRANSACTION • BONDED AND INSURED • SEGREGATED QUALIFIED ESCROW ACCOUNTS 3 6 ’ I

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

12A — August 10 - 23, 2018 — Financial Digest — M id A tlantic

Real Estate Journal

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F inancial D igest

ILLBURN, NJ — The medical office building located at Newark apartment complex refinances for $4,810,000 in Newark, NJ Domenico of Progress Capital negotiates a $6.8 million permanent mortgage for office building M

90 Millburn Ave. recent- ly changed hands in an $8.5 million transaction. Br ad Do - menico ne- g o t i a t ed a $6.8 million

Brad Domenico

permanent mortgage, or 80% LTV, for his client to purchase the property, adding to an al- ready robust commercial real estate portfolio. Encompass- ing 21,834 s/f over two floors, the building is divided into 11 individual units and was fully occupied at the time of pur- chase by nine medical tenants. Accompanying the loan is a seven year fixed rate at 4.75% with a 15-year term and 30- year amortization. The loan may be repaid without penalty at any time. Domenico also arranged a $4.81million non-recourse per- manent mortgage for a client to refinance their multifamily property at 469 Elizabeth Ave.

469 Elizabeth Ave.

in the Weequahic Neighbor- hood of Newark. The subject property is a six-story brick elevator building containing 58 residential units. The unit mix includes (38) 1-bedroom units, (8) 2-bedroom units and (12) 3-bedroom units. The building sits along the popular Weequahic Lake and adjoining park and is within close prox- imity to downtown Newark, transit into NYC and Newark Liberty International Airport. Domenico arranged a 5-year fixed-rate at 4% on a 20-year term and 30-year amortiza- tion. The loan represents a

65% LTV. The loan is also assumable and the borrower may prepay the loan at any time based on a declining prepayment schedule. The proceeds of the loan will be used to retire the existing debt on the property and provide a cash-out of vested equity to the borrower which will be used to fund additional multifamily acquisitions throughout NJ and the NY metro area. Domenico negotiated the amount and terms of the 10- year loan Progress announced in Janu- ary 2017 a 8,400 s/f mixed-use

185 Broadway in Newark

commercial building located at 183-185 Broadway in New- ark caught fire which caused severe damage throughout the entirety of the structure. Renovations to the structure began immediately after the fire, building out 10 modern and spacious residential units on the 2nd and 3rd floors with one retail unit encompass- ing the ground level. The residential unit mix includes (6) 1-bedroom units and (4) studios. Recently stabilized, the borrower, working with

Domenico, sought to retire the existing construction debt and enter into a permanent mort- gage on the newly renovated asset. The $1.2 million mortgage has a 10-year term amortized over 30-years. The loan has a 5-year fixed-rate at 4.92%, a declining prepay schedule and represents 70% of the subject property’s value. The proceeds of the loan allowed the borrow- er to recapture over $500,000 to be invested back into their commercial portfolio. 

NEW PRICE - APPROX. 117.92 ACRES WESTMORELAND COUNTY, PA  FORMER GOLF COURSE WITH SEVERAL MODERN BUILDINGS AT ONE END OF PROPERTY  POTENTIAL DEVELOPMENT — RESIDENTIAL HOMES, SENIOR LIVING COMMUNITY, ELDER CARE CAMPUS, HOSPITAL CAMPUS OR LARGE ESTATE PROPERTY  ALL PUBLIC UTILITIES READILY AVAILABLE  ADJACENT TO WESTMORELAND COUNTY COMMUNITY COLLEGE  QUICK ACCESS TO US ROUTE 119, INTERCHANGES OF I-70 & TURNPIKE PA ROUTES 66 & 76.  VARIETY OF ZONING SURROUNDING PROPERTY: INSTITUTIONAL, NEIGHBORHOOD COMMERCIAL, CORRIDOR & SUBURBAN RESIDENTIAL  ADDITIONAL INFORMATION AVAILABLE ON LOOPNET INVESTORS REAL ESTATE AGENCY JAMIE HENRY jamiehenry9@aol.com 724-925-0215 MARK ALLISON mallison5@aol.com 724-925-0215

Your 1031 Exchange Resource We work with you to construct a customized replacement portfolio through the use of Delaware Statutory Trusts (DSTs) and/or actively managed properties.

Edward Kasperavich, CFA, Deborah Stackpole, and Matthew Nielsen 45 N. Broad Street, Suite 401 Ridgewood, NJ 07450 201-258-4762 1031@stonecrestpartners.com www.stonecrestpartners.com Securities offered through Stonecrest Capital Markets, Inc., Member FINRA/SIPC

Real Estate Journal — August 10 - 23, 2018 — 13A

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Forget what you ‘knew’ about NewCastle County The ‘New’ in New CastleCounty,Delaware

Multifamily includes +/-10,600 s/f retail space DSMCos. announce approval for Newark, DE mixed-use

n 2016, New Castle Coun- ty residents elected an entrepreneur to the post of County Executive. Matt Meyer, a corporate attorney by training, had launched two successful businesses, served as an American diplomat in Iraq on an economic develop- ment mission and worked as an economic development advisor to former Delaware Governor JackMarkell before running for office. The new County Execu- tive brings a fresh perspective to county government and busi- ness expansion. So, what’s ‘new’ in New Castle County? “The County Executive was purposeful in bringing in a diverse leader- ship team of smart, ethical and innovative professionals who share his commitment to creative ideas, best practices, and tackling issues that have plagued the county for years” said Tamarra Morris, Director of Economic Development. Morris joined county gov- ernment with more than 15 years of experience in the pri- vate sector. Most recently, she was responsible for new business development, sales, and marketing for a global firm specializing in real estate development, construction, and property management. One of the County Executive’s fresh ideas is an innovative ap- proach to reform the Depart- ment of Land Use’s develop- ment review process. Develop- ers want predictability when it comes to the planning process. For this reason, the county’s new “Fast Track” initiative streamlines the process for job- creating development projects by employing electronic plan review and improving coordina- tion between land use planners and the Delaware Department of Transportation (DelDOT). As a result, the county now has an unprecedented ability to push important projects for- ward and bring much needed employment opportunities to county residents. Fast Track completed the planning process for a Major Land Development Plan for the new Incyte head- quarters in a record-breaking I

Park N Shop rendering

apartments on the second and third floors. DSM Companies is commit- ted to making Park N Shop a destination for residents, as well as, bringing in outside business. In addition to the new retail development, DSM has been recognized for at- tracting Jerry’s Artarama, Anytime Fitness, DP Dough and Good Uncle to the recently renovated Park N Shop. 

NEWARK, DE — DSM Companies is excited to an- nounce the unanimous ap- proval to build apartments and additional retail space in the Park N Shop Shopping Center in Newark. The closed M&T Bank building at the corner of South Main St. and Apple Rd. will be replaced with a three-story building con- taining +/-10,600 s/f of retail space on the first floor and 12

County Exec. Matt Meyer and Dir. of Economic Dev., Tamarra Morris

225 days. (stock photo of In- cyte building from last year’s article) New Castle County is also working to build a culture of collaboration with other eco- nomic development agencies like the City of Wilmington Mayor’s Office of Economic Development, the Delaware Prosperity Partnership and the State of Delaware Division of Small Business, Develop- ment and Tourism. “The goal: to develop an uncomplicated system that prioritizes small business support and makes the planning process easy. The ‘new’ in New Castle County is our unapologetic commit- ment to rebranding the largest county in Delaware as Open for Business,” said Morris. “The tremendous advantage to be- ing a small state is the ability to quickly communicate with elected officials and get the right people to the table”. The county’s Department of Economic Development is especially focused on support- ing innovation and entrepre- neurship. Whether a graduate student is seeking affordable laboratory space to research new chemistry or a technol- ogy startup has discovered a new application to streamline reverse logistics, New Castle County has options. The Dela- ware Innovation Space, located at the DuPont Experimental Station, and the Emerging Enterprise Center (housed within the New Castle County Chamber of Commerce) are just two of many incubator spaces and business support resources

committed to fostering growth of new enterprise. And to further support small business enterprises, the Meyer administration is launching NCCInnovates. Announced in March 2018, NCCInnovates is a targeted initiative that will provide small grants to startup business owners. These entre- preneurs will compete in pitch contests, and the winners will receive small grants for their businesses. “A few thousand dollars won’t mean much to a company the size of Incyte, but it could be a game changer for an entrepreneur searching for seed money to build a pro- totype”, said Morris “Delaware universities are producing fu- ture leaders in BioTech, Chem- Tech and Life Sciences and it is our responsibility to foster an environment of support so new companies are created right here”. Morris has also observed that the county lacks a cohesive resource and service database for entrepreneurs. Businesses need direct access to assistance and that is why New Castle County is a proud supporter of DelawareIQ. Slated for go live in 2018, DelawareIQ is an online, centralized resource for some of Delaware’s strongest industries, including FinTech, Life Sciences, Chemistry &Ma- terials, LegalTech and Small Business Entrepreneurship. With DelawareIQ, entrepre- neurs will have access to a comprehensive database of resources and service providers focused on NewCastle County’s continued on page 18A

Lee & Associates brokers 23,435 s/f lease to Utz Quality in Columbia, MD

8909 McGaw Court

single-story building featur- ing 18-22 foot ceiling heights, multiple platform loading docks and large bays that of- fer outstanding flexibility for end-users. It is situated near Snowden River Pkwy. and offers immediate access to Maryland Rte. 175 and I-95. UTZ Quality Foods intends to utilize the location for logistics and warehousing to serve the greater Baltimore-Washing- ton, DC marketplace. In addition to UTZ Quality Foods, Lee & Associates has brokered leases this year with Classic Brands (18,759 s/f); NEARCommunications (9,401 s/f) and Game of Rooms (8,802 s/f). 

COLUMBIA, MD — Lee & Associates Maryland , a fully-integrated commercial real estate brokerage and management firm has bro- kered a 23,439 s/f lease with UTZ Quality Foods at 8909 McGaw Court in the Columbia section of Howard County. The building is owned by Velsor Properties . Allan Riorda, SIOR , principal; Kate Jor- dan, SIOR, principal; Marley Welsh , senior associate rep- resented the landlord in this transaction. The lease elevates the occupancy of the 141,000 s/f warehouse and industrial building to 86%, a figure that stood at 57% this February. 8909 McGaw Court is a

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