18A — August 10 - 23, 2018 — M id A tlantic
Real Estate Journal
www.marejournal.com
M id A tlantic R eal E state J ournal
Lombardi &Babaian brokers 10,000 s/f lease Marcus &Millichap completes two mixed-use buildings sales
Cognetti handles two sales in Luzerne County PA Hinerfeld’s Keefer facilitates MOB sale totaling $6.4million
724 Broadway for $1.05 mil- lion. The property is located on the corner of Broadway's core business district and is a collection of three buildings which are suited with four commercial tenants and five apartments. The subject prop- erty is located just two blocks from the 34th St. Light Rail Station. "Recently, Bayonne has become an increasingly desirable destination for ten- ants, residents, and investors alike, as the extension of the Light Rail and continued development revitalizes the community," Fahri Ozturk said. This marks the eighth clos- ing for Ozturk and his team in Bayonne since late 2016. Marcus & Millichap an- nounced the sale of a 10,000 s/f net-leased property, occu- pied by a day care franchisee, located in Delran, NJ, for $3.66 million. Michael Lombardi and Greg Babaian , investment specialists in Marcus & Mil- lichap’s New Jersey office, had the listing to market the prop- erty on behalf of the seller, a private investor. the County’s efforts to support the creation of an innovative future workforce. Providing access to robotics and NASA technology, for example, cre- ates an environment where students can stretch their imaginations and build hope for the future.” (photo of Rte. 9 Library, if space permits) In short, what’s ‘new’ in New Castle County is ‘transparency and efficiency’, Morris says. “And that means making the County a welcoming and acces- sible place for entrepreneurs and businesses of all shapes and sizes. Building trust begins with being open, honest and committed. And we are ener- gized every day to make New Castle County an even better place to be somebody.” The mission of the Delaware Economic Development Office (DEDO) is to be responsible for attracting new investors and business to the State, for promoting the expansion of existing industry, for assist- ing small and minority-owned businesses, for promoting and developing tourism, and for creating new and improved employment opportunities for all citizens in Delaware. To learn more about New Castle County contact the Department of Economic Development.
BAYONNE, NJ — Marcus & Millichap , announced the sale of two mixed-use
CRANTON, PA — Hin- erfeld Commercial Real Estate announced the sale of the Mount Pleas- ant Medical and Professional Center at 521 Mt. Pleasant Dr. in the Mt. Pleasant Corporate Center in Scranton. Owned by Beacon Summit at Scranton LLC , the 30,750 s/f two story office building on a 3.6 acre parcel was sold to Geisinger-Community Medical Center for $6.4 million. Griff Keefer of Hinerfeld Commer- cial handled the transaction. The building was fully oc- cupied at the time of the sale. Hinerfeld Commercial Real Estate reported two sales of transportation related indus- trial properties in Luzerne S As referenced earlier, the advent of third-party ride shar- ing services, such as Uber and Lyft, have had a measurable impact on auto usage and park- ing demand. Although many of us in the parking industry are trying to come up with an exact measure these ride- share services will have on future parking revenues and requirements, taxi cab usage and rental car companies ap- pear to have borne the initial brunt. Event, on-airport, and off-airport parking revenues have not been immune to this new parking/driving dynamic either. Additionally, valet rev- enues at urban garages are now trending lower, especially if those facilities have restau- rants and hotels functioning as demand generators. Third-party ride sharing also has a unique impact on urban office/garage owners. In the past, if a non-tenant had a meeting in another part of the city, he would simply go down to the garage and use his car for the trip and return after the meeting. There are increas- ing instances where, instead of retrieving the car, visitors are using a third-party ride share service for the trip across town, thus avoiding additional transient charges by leaving their car in the garage. This reduction in transient “turns” hurts the profitability of urban revenue for all urban parking garages. It may be more profit- able to keep your garage closed during off-hours. Third-Party Ride Share Services
buildings on Br oadway , l o c a t ed i n Bayonne. Fahri Oz- t u r k a n d Tyler Van Wagone r , investment sales special-
Fahri Ozturk
ists in Marcus & Millichap's New Jersey office, had the listing to market the proper- ties on behalf of the sellers, two separate private owners. They also secured and rep- resented the buyers for both transactions. 554-556 Broadway, located along Broadway between E 25th St. and E 26th St., closed for $1.95 million. The mixed-use building comprises of 10,260 s/f of ground floor retail space and 7,510 of sec- ond floor office space. The new owner will seek approvals to redevelop the property as a four-story mixed-use building. Additionally, Ozturk and Joe Koicim , from the Man- hattan office, closed on 718- core industry clusters. The newly announced ex- pansion of the Port of Wilm- ington, development of the new Amtrak transportation hub in Claymont and leverag- ing economic development and job creation potential at the New Castle County Airport are examples of the new pos- sibilities that Morris pitches to businesses searching for cost effective alternatives to Dela- ware’s surrounding states. Quality of life is a major con- sideration for entrepreneurs and businesses of any size. Expounding on the currently qualities of the county, the Meyer administration passed legislation expanding clean energy capability and will an- nounce a new bike trail that will offer the first bike path in NewCastle County connecting the City of Wilmington to Bat- tery Park in Old New Castle. “Strong, sustainable commu- nities are essential to attract- ing companies to New Castle County. Companies want a talented workforce, cool places to live with great restaurant and entertainment options.” said Morris. “The technology driven programming at the new Route 9 Library & Inno- vation Center is an example of
521 Mt. Pleasant Dr.
parking garages and if it con- tinues, will also be a detriment to future revenue growth. Real Estate&Parking Taxes While the impending intro- duction of the driverless cars and emergence of third-party ride sharing services is forc- ing developers and owners of parking garages to come up with new design, revenue and marketing strategies (includ- ing the growing acceptance of third-party aggregators), the biggest detriments to the long- term value of an urban parking garage are rising real estate and parking taxes. Federal, State and Municipal agencies are faced with widen- ing budget deficits caused by under-funded pension liabili- ties and decreasing financial support fromFederal and State budgets. This has led to ris- ing real estate taxes and has forced municipalities to pursue other sources of revenue such as the implementation and/or an increase of parking taxes, which are typically a significant percentage of gross parking revenues. Increasing real estate and parking taxes are the biggest impediment to the long-term value of your parking garage asset; not driverless cars and third-party ride sharing ser- vices. Asset Management of Parking Assets are a Priority for the Future The current headwinds fac- ing the parking industry mean that, as an owner of a park- ing facility, you can no longer assume that it’s business as usual. Every owner of a parking County PA. At 137 Armstrong Rd. in the O’Hara Industrial Park in Pittston Twp., the former Ste- phenson Equipment building was sold to NFI. The 10,700 s/f facility on two acres was sold for $1.05 million. John Cognetti, SIOR, CCIM rep- resented NFI. In Plains Twp. at 90 Eugene
facility that supports an owned office building asset should strongly consider evaluating the parking operations. Rates, staffing, hours of operation, as well as new marketing strate- gies, need to be reviewed and implemented to combat the future loss of parking volumes and downward pressure on parking rate growth. While engaging a competi- tive parking operator could be a good resource to assist with your evaluation, remember they have an ulterior motive in that typically they will perform their review with a strong mo- tivation to unseat your current parking operator. You could also turn to a parking consult- ing firm, as well. As you evalu- ate their expertise, it’s impor- tant to understand the depth of their knowledge. Although superior in technical and engi- neering expertise, many have never owned or operated a parking facility where they had their own money invested. When your own personal dol- lars are on the line, you operate a parking facility much differ- ently than if you were earning a management fee. This is a distinction that most owners miss when hiring a parking consultant. It’s time to make sure your garage is positioned for the future so it does not impair the value of your office asset for a future refinancing or sale. Keith Bawolek is theman- aging principal and CEO of Vermillion Realty Advisors, a real estate and invest- ment firm specializing in parking. Dr., the former A. Duie Pyle Inc. terminal consisting of a 31 crossdock terminal, shop and offices on 3.81 acres was sold to Saia Motor Freight Line, LLC for $850,000. Fortis Institute currently leases part of the land and offices for their truck driving training program. Cog- netti whandled both transac- tions for A. Duie Pyle.
continued from page 2A Is the value of your urban parking garage? . . .
continued from page 15A The ‘New’ in New Castle County . . .
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