March 2024

- DC THE MOST COMPREHENSIVE SOURCE FOR COMMERCIAL REAL ESTATE NEW IN THE REGION

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ISSUE HIGHLIGHTS Volume 36, Issue 3 March 2024 PRECARIOUS OFFICE MARKET POSES RISKS

OODBRIDGE, VA — Standard Com- munities is devel- W Funding for Jefferson Plaza Apts. is secured through Virginia Housing Standard develops 240-unit affordable housing project in Woodbridge, VA

affordable housing in high-cost communities like Woodbridge,” said Feras Qumseya , Stan- dard’s chief development officer. “Developing housing on the site of a former shopping center is not easy, requiring easements and rezoning. The support and assistance from Prince William County to facilitate the process was crucial.” he added. The property will be in- come-restricted to 60% of the Area Medium Income, mak- ing the units affordable to middle-income families and essential workers. Jefferson Plaza will fea- ture 354 parking spaces for residents, a 3,000 s/f club room, coworking space, a fit - ness center, bike storage, a playground and recreational area, greenspace and a dog park. Residents will have direct access to an adjacent park to be built out as part of the project. MAREJ

oping a ground up 240-unit 100% affordable community in Woodbridge. The Prince William Coun- ty project, Jefferson Plaza Apartments, is capitalized at $67.5 million. Nationally, Standard current- ly has more than 2,000 units in its new construction pipeline. Funding for Jefferson Pla- za Apartments was secured through Virginia Housing as the issuer of tax-exempt bonds, and Freddie Mac provided Low Income Housing Tax Credits through Hudson Housing Capital . “Our investment in Wood- bridge, VA, is consistent with Standard’s track record throughout the United States of creating high-quality af- fordable communities,” said Scott Alter , co-founder and

2A Todd C. Monahan

SPOTLIGHTS 1031 EXCHANGE SPOTLIGHT

Jefferson Plaza Apartments

principal of Standard Commu- nities. “At Standard, we have a passion for finding innovative solutions to build affordable housing that best serves resi- dents and communities. We are excited to bring new afford- able housing to Woodbridge,” said Alter. Jefferson Plaza Apartments, at 1305 Jefferson Plaza, will comprise seven three-story

buildings with 147 one-bedroom and 93 two-bedroom units. The community, being built on a 7.6 acre site of a former shopping center, is a transit-oriented de- velopment in the Rte. 1 Corridor within walking distance of the Woodbridge Virginia Railway Express station and close to I-95, with nearby shopping, restaurants and more. “There is a strong demand for

6-7A

Section C

Aventon Cos. breaks ground on 425-unit Loudoun County apartment community

UPCOMING CONFERENCES Cannabis & Real Estate Conference May 3, 2024 For speaking & sponsorship info., please contact: Lea at 781-740-2900 or lea@marejournal.com

parking garage. “Loudoun County contin- ues to grow rapidly. Fueled by the expansion of major tech companies, Loudoun is one of the fastest recovering post-COVID economies in the country. We are thrilled to be able to provide much-needed housing for its exploding popu- lation,” said Mark Coletta , senior managing director for Aventon Companies. “Located in the prestigious Moorefield master planned community, steps from the Ashburn Metro Station, and surrounded by top-rated public schools and Fortune 500 companies, our residents will be in the heart of it all.” Aventon Moorefield is lo- cated at 43601 Charitable Street in Ashburn and marks Aventon Companies’ fourth project in the region. Architec- tural design was led by Dwell Design Studios with interior design curated by Carlyn & Company . MAREJ

ASHBURN, VA — Aven- ton Companies announced that it has begun construction on a brand-new luxury apart- ment community located in Ashburn. Aventon Moorefield will consist of 425 units in a mid-rise, six-story building located in proximity to major transportation hubs including

Directory

Aventon Moorefield

ROP (Front Section) ........................................... Section A Financial Digest.........................................................5-8A Owners, Developers & Managers..........................11-19A CIRC Delaware...........................................................19A CRE Organization’s Events Calendar ............................ 20A Business Card Directory ...........................................IBC A New Jersey..............................................................FC-8B Pennsylvania............................................................. 9-BC People on the Move...................................................12B Best of 2023....................................................... Section C www.marej.com

Ashburn Metro Station and Dulles Int’l. Airport. Aventon Companies, a promi- nent multifamily developer and general contractor with active projects throughout the Mid-Atlantic and Southeast, announces that it has begun construction on a brand-new luxury apartment community located in Ashburn, Virginia. With floor plans ranging from studios to three-bed- rooms, Aventon Moorefield will be the premier luxury

asset in the Loudoun County submarket. Greeted by 20-foot lobby ceilings, residents will feel at home with amenities including ample on-site re- mote workspaces, a state-of- the-art clubroom and lounge, a 24/7 fitness center, and a pet spa within the pet-friendly community. Outside, a resort- style pool and picturesque garden courtyard await. Built for the modern era, 16 EV charging stations are offered within the property’s secure

Inside Cover A — March 2024 — M id A tlantic Real Estate Journal

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Shoppes of Southland Orlando, FL $3,775,000 Tires Plus Philadelphia, PA $2,849,120

7-Eleven Coppell, TX $4,400,582 Arby’s La Vale, MD $3,524,000

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Outback Steakhouse & M&T Bank Clifton Park, NY $2,734,977 Chipotle & McAlister’s Deli Fredericksburg, VA $4,408,842

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2A — March 2024 — M id A tlantic Real Estate Journal

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M id A tlantic Real Estate Journal

M id A tlantic R eal E state J ournal Publisher, Conference Producer ..............Linda Christman VP, Conference Producer .............................Lea Christman Editor/Graphic Artist ......................................Karen Vachon Contributing Columnists............................... Todd C. Monahan, WCRE | CORFAC International Mid Atlantic R eal E state J ournal ~ Published Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 117 HMS Halsted Dr., Hingham, MA 02043 USPS #22-358 | Vol. 36, Issue 3 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Phone: 781-740-2900 www.marej.com

Todd C. Monahan

Precarious Office Market Poses Risks

oday’s office market poses a number of risks for tenants. Office land - lords today are frequently tight on cash and have limited abil - ity to pay for major tenant im- provements. Couple that with the high cost of construction and you have a recipe making it challenging for tenants to renovate or relocate when ma - jor improvements are required. In typical market condi - tions, landlords demand to see a tenant’s financial state - ments before underwriting the risk associated with the lease transaction. Now, however, we are in a market where it’s es - sential that the tenant under - stands the landlord’s financial condition: How healthy is the landlord’s capital stack? What is their loan to value (LTV), debt service coverage ratio (DSCR), and loan maturity date? Is a landlord’s debt at a set interest rate, or is it floating and subject to inter - est rate fluctuations? With a T

near-term loan maturity, are the loan extensions defined or achievable? Is the current lender willing to refinance, given many lenders are redlin - ing office building loans and trying to reduce exposure to the office market? Tenants committed to pro - viding offices for their employ - ees are retrofitting to create an environment conducive to how employees work today. Employers are increasingly fo - cused on a workplace strategy that encourages collaboration. Workplaces require numerous conference rooms, small hud - dle rooms, casual soft seating and plug and play space where today’s mobile workforce can drop in and collaborate with their teams. Employers are

getting away from providing dedicated offices, as increas - ingly employees do indepen - dent work tasks at home or out of the office. Renovating older traditional space is expensive and many landlords are tight on cash. Construction prices have not eased as material pricing and labor costs have not dropped, despite lower inflation rates. This has created a capital environment that’s very chal - lenging for employers to create the offices they desire. Tenants interested in re - locating are increasingly studying prospective land - lords’ financial health to ensure they have the capital to fund improvements and continued on page 18A

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.

Contact: NEIL A. STEIN • nstein@kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-941-2469 • kaplaw.com Other Offices: • Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120 Kaplin Stewart Attorneys at Law

M id A tlantic Real Estate Journal — March 2024 — 3A

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M id A tlantic R eal E state J ournal

Electrical contractor selects two contiguous spaces to house operations Foit of St. John Properties brokers 93,800 s/f lease at Arcadia Business Park in Frederick, MD

F REDERICK, MD — Power Solutions, LLC, a commercial electrical contractor headquartered in Bowie, MD, has leased two contiguous spaces at Arcadia Business Park in Frederick, MD comprising 93,800 s/f. This represents the company’s fourth lease with St. John Properties, Inc., adding to its 48,720 s/f headquarters in Melford Town Center in Prince George’s County, as well as a 23,280 s/f presence at Ashburn Crossing in Loudoun County, VA for a total of more than 165,000 s/f. Power Solutions also maintains a regional office in Newport News, VA. Danny Foit of St. John Properties rep - resented the landlord and Jon Casella of CBRE represented the tenant in this transaction. Power Solutions provides electrical construction and maintenance on projects throughout the Mid-Atlantic region with an emphasis on data centers, hospitals, medi - cal laboratories, telecommu - nications centers, and gov - ernment facilities. In recent years, the company has built more than 16 million s/f of data center and associated support space and completed installa - tions for customers including Aligned Data Centers, Digital Realty, NTT, Vantage and Verizon. Additional large-scale projects have been completed for Kirkland & Ellis, Deloitte, and Bell Helicopter. Approximately 90 full-time employees are expected to work from 4754 Arcadia Dr., a one-story bulkwarehouse building equipped with more than 125,000 s/f of high-bay space which was delivered this year. Power Solutions intends to use the space to prefabricate and store piping and electrical parts for current and upcom- ing projects with an emphasis on data center construction and maintenance. “We have a significant pres - ence in Northern Virginia and Maryland to support our data center construction activities, and this new Frederick loca - tion positions our company to more effectively serve our many customers through - out the DMV region,” stated Kenny Johnson, president of Power Solutions. “The con - tinued growth of the industry and the demand for highly technical electrical construc - tion services necessitated our

stown Pike) and Arcadia Drive. The business community cur - rently features four single-sto - ry flex/R&D buildings totaling more than 160,000 s/f in addi - tion to two high-bay warehouse buildings comprising nearly 240,000 s/f. It is positioned within close proximity to In - terstates 270 and other nearby major roadways including I-70, US 15 and MD Rte. “Data centers are the most powerful economic develop - ment drivers in the Northern Virginia and Central Mary - land regions these days, and Power Solutions continues

to be a key service provider in the industry,” said Matt Holbrook , regional partner, Virginia, and Central MD for St. John Properties. “We speculatively developed the 125,000 s/f warehouse build - ing at Arcadia Business Park in anticipation of end-users needing immediate access to warehouse and logistics space. Power Solutions seized this available opportunity. St. John Properties enjoys an ex - cellent, long-term relationship with the company and we are thrilled to accommodate them in a third sub-market.” MAREJ

Arcadia Business Park

investment in new facilities to meet the needs of our existing and future customers in the

coming years.” Arcadia Business Park is located at MD Rte. 85 (Buckey -

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4A — March 2024 — M id A tlantic Real Estate Journal

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Kyle Danielson , Austin Smith, and Jason Woods orchestrate transactions Horvath & Tremblay completes the sale of three Mid-Atlantic retail properties for $9,195,842

ID ATLANTIC — Horvath & Trem- blay has complet - Kyle Danielson and Austin Smith of Horvath & Tremblay have successfully completed the sale of the Chi - potle & McAlister’s Deli in Fredericksburg, VA. Horvath & Tremblay represented the seller and procured the buyer to complete the transaction at a sale price of $4,408,842. The property is located at 5621 Plank Rd. (Ste. 100) in M ed the sale of three Mid-At - lantic retail properties for $9,195,842.

years remaining on their lease with four, five-year renewal options. Their lease features attractive 10% rent increases every five years throughout the base term and at the start of each option period. McAlister’s Deli has 9+ years remaining on their lease with two, five-year options. Their lease features attractive 10% increases every five years throughout the base term and at the start of each option peri - od. The property is shadow an - chored by Harrison Crossing, a Home Depot and Giant Foods anchored Shopping Center.

The property is seconds from the signalized intersection of Plank Rd. (VA Rte. 3) and Har - rison Rd. The location is part of an exceptional trade area centered around the Plank Rd. (VA Rte. 3) junction with I-95. Plank Rd. is home to numer - ous national tenants and retail centers, including Central Park, one of the largest open- air malls on the East Coast with more than 255 stores and services and the Spotsylvania Towne Centre mall, which has more than 150 stores. This shopping destination draws significant traffic to the area. Horvath & Tremblay’s Dan - ielson also facilitated the sale of an Arby’s in La Vale, MD. Horvath & Tremblay repre - sented the buyer to complete the transaction at a sale price of $3,524,000. Arby’s is located at 1206 National Hwy. in La Vale, MD. Arby’s has a new 20- year Absolute NNN Lease with two, five-year renewal options. The lease features attractive 7% rent increases every five years throughout the primary lease term and at the start of each renewal option. The loca - tion is operated by KBP In- spired, LLC , a wholly owned subsidiary of KBP Brands. The property is located adja - cent to a CVS at the signalized intersection of Campground Rd. and National Highway, the area’s primary commercial and commuter corridor, and is sec- onds from I-68. The property benefits from outstanding vis - ibility and frontage and is sur - rounded by national retailers that drive traffic to the area. Kyle Danielson and Jason Woods of Horvath & Trem - blay have successfully com - pleted the sale of an AutoZone in Newark, Delaware. Horvath & Tremblay represented the seller and procured the buyer to complete the transaction at a sale price of $1,263,000. AutoZone is located at 2675 Pulaski Hwy. in Newark, Delaware. The new construc - tion AutoZone has a 15-year Absolute NNN Ground Lease with four, five-year renewal options. The lease features attractive 7.5% rent increases beginning in year 11 of the primary lease term and at the start of each renewal op - tion. The property is part of LaGrange, a new construc - tion retail development that is located at the signalized intersection of Biddle Ave. and Pulaski Hwy. MAREJ

Kyle Danielson

Austin Smith

Jason Woods

Fredericksburg, VA. The build-to-suit, two-tenant plaza is improved with Chipotle and McAlister’s Deli and con - tains 5,781 s/f on a 1.01-acre

parcel. The property was com - pleted in 2023, Chipotle ben - efits from a modern design with outdoor seating and a Chipot - lane (drive-thru) and has 14+

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M id A tlantic Real Estate Journal — March 2024 — 5A

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MHERST, NY — M&T Realty Capi- tal Corporation an- The team secures favorable permanent financing terms for their client DMG Investments M&T Realty Capital Corporation provides $18M for a multifamily housing property in New York A center, on-site maintenance, and on-site management.

The transaction was led by Robert Barry , senior vice president, in M&T Realty Capital Corporation’s New York City office. Barry collabo - rated closely with the team at DMG Investments over several months to navigate the student housing market. “DMG trusted RCC to deliver strong terms in a tough rate environment. We are thankful for their continued partner - ship and look forward to future opportunities to support their growth,” said Barry. “Robert and the team at M&T dedicated considerable effort to this deal, skillfully assembling all involved par - ties and securing favorable terms for us from Freddie Mac, leading to a successful close. Without their expertise, our progress in the market would not have been as smooth,” said Zoe Ma , finance associate, DMG Investments. MAREJ

nounced the closing of a $18 million Fr edd i e Mac conven - tional loan for Air Buf - falo, a 154- unit multi - family hous - ing property

Robert Barry

located in Amherst. The team navigated challenging market conditions to secure favorable permanent financ - ing terms for their client DMG Investments . Air Buffalo, a luxury apart - ment building, is located ad - jacent to the University at Buffalo North Campus, hik - ing trails, restaurants, and shopping centers. The prop - erty offers studio-, one- and two-bedroom units for rent. Property amenities include an indoor pool and jacuzzi, fitness

Air Buffalo

Cronheim secures $17.5M Life Co financing for 2 NJ Grocery- anchored retail properties 285,638 s/f in Mercer & Union County

For the Garwood Mall, Cronheim secured $6.5M of debt financing from American United Life a life insurance company whom Cronheim represents as correspondent and servicer. The loan was structured on a 10/25 basis and features a flexible pre - payment structure. Constructed in 1971, the 89,624 square foot Garwood Mall is anchored by Kings Food Markets, and also features Crunch Fitness, AutoZone, and a variety of popular local mer - chants. Garwood, NJ is a small community with a walkable downtown featuring a myriad of shopping and dining, as well as the Garwood Train Station which is located just behind the property. With remarkably close proximity to this key piece of commuting infrastructure, the Garwood Mall will remain an attractive and highly desir - able real estate location for years to come. MAREJ

MERCER & UNION COUNTY, NJ — Cronheim Mortgage has arranged $17.5M for the financing of two grocery-anchored shopping centers: Town Center in East Windsor, and Garwood Mall in Garwood. Andrew Stewart, Dev Morris, and Allison Vil- lamagna secured the financing on behalf of a New Jersey-based real estate firm specializing in the development and acquisi - tion of New Jersey retail assets. For the Town Center Pla - za, Cronheim secured $11M of long-term financing from Southern Farm Bureau Life Insurance Co., an insurance company and commercial real estate lender whom Cronheim represents as servicer and correspondent. The loan was structured on a 15/30 basis and features a stepdown prepay - ment structure in the last 10 years of the loan. Constructed in 1998, the Town Center Plaza has since

Town Center Plaza

Garwood Mall

amassed an attractive tenant base including ShopRite, a regional movie theater, and Chipotle, among others. The 196,014 s/f property sits on a 35.51-acre lot, and features ample parking with over 1,250 spaces. Town Center Plaza is located in East Windsor, an upper-mid -

dle-class suburb in central New Jersey. The property benefits from the strong demograph - ics of its host market, with upwards of 16,000 households located within its three-mile trade area and an average annual household income ex - ceeding $155,000. Within East Windsor, the property is lo -

cated near the intersection of US Rte. 130 and NJ Rte. 133, also known as the Hightstown Bypass. These roadways see traffic volumes of 29,000+ and 20,000+ each day, respectively, providing the tenants of the property excellent visibility and consumers in the market exceptionally easy access.

6A — March 2024 — 1031 Exchange — Financial Digest — M id A tlantic Real Estate Journal

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1031 E xchange

EagleBank provides $18M in financing to DT Global

t’s both an exciting time and a very trying time when an investor sells By Dwight Kay, Kay Properties and Investments Three 1031 Exchange Investment Options I

Industrial (C&I) and Govern - ment Contractor underwrit - ing, back office and risk teams. ”We look forward to our partnership with EagleBank and its talented staff to sup - port our financing needs as we manage through contin - ued periods of growth,“ said Torge Gerlach, Chief Execu - tive Officer at DT Global. “It is important for a large government contractor with global operations spanning 90 countries to have found a partner that is not only will - ing, but eager, to support our needs and work with us as effectively and efficiently as the team at EagleBank has already proven to do.” DT Global is shaping a future where sustainable develop - ment and innovation empower individuals, communities, and nations. We work in partner - ship with local stakeholders to foster inclusive prosperity, so - cial equity, and environmental stewardship. Our global team of 2,500 staff and experts work in over 90 countries to solve complex problems in the peace - building, governance, economic development, environment, and human development sec - tors. With a track record of technical excellence and more than 60 years of international development experience and relationships, we deliver inno - vative solutions that transform lives. MAREJ

BETHESDA, MD — Eagle - Bank, one of the largest com - munity banks in the Washing -

ton, DC area, announced it has success - fully closed $18 million in credit fa- cilities to DT Global, LLC and Subsidiaries. The facilities

property. NNN Properties often are priced from $1.5 Mil - lion to over $10 Million so it may be hard to diversify and investors could end up being over concentrated in one asset class, with one tenant, and one location. During the Covid 19 crisis, many tenants asked for rent relief including even Starbucks, an investment grade tenant. This means NNN owners might have to hire an attorney to negotiate with a massive company over terms and payments which would be tricky for most 1031 investors to say the least. There are also other manage - ment issues that many own - ers don’t think about such as making sure insurance is up to date, that any common area maintenance fees are prorated and collected, that the tenant is indeed paying property taxes in a timely manner and how to re-tenant the build - ing if the property becomes vacant. If there is a loan on the property, the monthly mortgage payment has to be made by the owner even if there is no tenant paying rent. It can get burdensome and be incredibly more risky than 1031 exchangers are often led to believe. 1031 Exchange Investment Opportunity Number 3: Another way to invest in a 1031 Exchange is into DST 1031 Properties. The DST Delaware Statutory Trust property is where the inves - tors own a piece of the prop - erty instead of owning the whole property. By dividing up their investment funds into multiple properties, an investor can own properties in different geographic locations, with different asset classes and different tenants and even different property man - agers. With a DST, investors are usually investing in high quality properties that they might not be able to afford on their own. These proper - ties are professionally man - aged and so they are passive investments where the DST sponsor companies (the asset managers) are the ones re - sponsible with the day-to-day issues involving real estate ownership. Tenants, toilets, and trash are no longer a con - cern for the investors. If the 1031 investor needs to replace debt in their 1031 Exchange, the loans in the DSTs are

non-recourse to the investors which means that the investor doesn’t have to sign person - ally for the loans. For those investors not wanting the risk of lender foreclosure and not needing debt replacement in their 1031 exchange, due to the fact that they already paid off their mortgages and own their property free and clear, debt free DSTs are available with no long-term mortgages encumbering the assets. DSTs feature properties in most of the major asset classes in - cluding multi-family, medical office, NNN retail, industrial, and even self-storage. Dwight Kay is founder & CEO of Kay Properties and Investments. About Kay Properties and www.kpi1031.com Kay Properties and Investments is a national Delaware Statutory Trust (DST) investment firm. The www. kpi1031.com platform provides ac - cess to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor companies, and real estate research and analysis on each DST (typically 20-40 DSTs). Kay Properties team members collectively have over 200 years of real estate experience and have participated in over 30 billion of DST 1031 investments. Past perfor - mance does not guarantee or indicate the likelihood of future results. Diver - sification does not guarantee profits or protect against losses. All real estate investments provide no guarantees for cash flow, distributions or ap - preciation as well as could result in a full loss of invested principal. Please read the entire Private Placement Memorandum (PPM) prior to making an investment. This case study may not be representative of the outcome of past or future offerings. Please speak with your attorney and CPA before considering an investment. There are material risks associated with investing in real estate, Delaware Statutory Trust (DST)properties and real estate securities, including il - liquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating com - mercial and multifamily properties, short-term leases associated with mul - tifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. All offer - ings discussed are Regulation D, Rule 506c offerings. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential distribu - tions, potential returns, and potential appreciation are not guaranteed. For an investor to qualify for any type of investment, there are both financial requirements and suitability require - ments that must match specific objec - tives, goals, and risk tolerances. Secu - rities offered through FNEX Capital, member FINRA, SIPC. MAREJ

a property and wants to defer taxes in a 1031 Exchange. A 1031 Ex - change is when an in - vestor sells a property that was held for

Eric Pietras

refinanced existing debt and increases DT Global’s work - ing capital to support their growth-driven needs. This transaction highlights Eagle - Bank’s significant presence in supporting federal defense and government services contrac - tors, including those operating in the USAID space. “We are thrilled to work with DT Global, LLC amidst their growing USAID portfolio,” said Lindsey Rheaume , executive vice president and chief lend - ing officer for C&I. “EagleBank is the right financial partner for contractors within this segment of the market, and we look forward to supporting DT Global, LLC in their mission to transform lives.” The transaction was origi - nated, structured and handled by Eric Pietras , senior vice president and relationship manager, with support from many others in EagleBank’s experienced Commercial &

Dwight Kay

business or investment use and then exchanges into an - other property of equal or greater value in an effort to defer taxes. There are three basic choices that investors can make in 1031 Exchange investment opportunities. Before reading on, make sure you visit the Kay Properties resource page and learn more about 1031 exchange basics so you invest like a professional. 1031 Exchange Investment Opportunity Number 1: An investor can purchase a property that they own and manage on their own. This is what most investors think about and at first blush, seems like the easiest choice. How - ever, when an investor tries to find a property, do their due diligence, and then close on the property within the timeframe of a 1031 Exchange, it’s often not as easy as it looks. If the purchase can be accomplished in time, the investor then has the burden of property man - agement with the dreaded ten - ants, toilets, and trash that go along with management. Of - ten, when purchasing a prop - erty to manage, investors find they must put all their money into one property which, to the investor’s detriment, negates any form of diversification * . The investor may even have to go to a bank to borrow funds to complete the purchase. Adding financing to a prop - erty adds potential recourse against the investors other assets, potential cash flow sweeps, and the potential to lose the property to the lender in foreclosure. 1031 Exchange Investment Opportunity Number 2: A second option is when the investor purchases a Triple Net Leased NNN property where the commercial tenant is responsible for rent, taxes, insurance, and some or all of the maintenance on the

Kennedy Funding Closes $2.75 Million land loan for Kansas City multi-family

is one of the prime reasons it’s poised for future success," said Kevin Wolfer , Kennedy Funding’s CEO/president. “By doing our due diligence we followed through with the deal, which showcases Ken - nedy’s commitment to stepping in when traditional funding sources cannot meet the needs of developers.” "Where traditional lend - ers see obstacles, we see op - portunities,” said executive loan officer Mark Falzone . “Our expertise in delivering funding solutions for land ac- quisition and development is unmatched, and we're proud to add the Kansas City project to our portfolio of success stories." As a direct lender, Kennedy Funding's streamlined process does not depend on bureau- cratic red tape and onerous loan provisions and large loan committees that borrowers face with traditional lenders, allowing for a quick turn - around on loan closings. MAREJ

ENGLEWOOD, NJ — Ken- nedy Funding announced the closing of a $2.75 million land loan for a 420-unit multifamily project in Kansas City, MO. LOF GP, LLC, the borrower, acquired the 31.51-acre prop - erty, called Kimpton Falls, in April 2023 for $4.5 million and secured the loan from Kennedy Funding for working capital and cash-out. Steven Wilson , president of Barefoot Mortgage , the bro - ker on the transaction, said the loan demonstrates Kennedy Funding's ability to provide competitive funding solutions where other lenders fall short. "We’d been through the ringer with another lender that was supposed to close,” said Wilson. “Kennedy's interest rates were superior, with lower prices than others, and a fee structure that was far more competitive. They were pro - fessional, direct, up-front, and responsive,” he added. "The location of this property

M id A tlantic Real Estate Journal — Financial Digest — 1031 Exchange — March 2024 — 7A

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1031 E xchange

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8A — March 2024 — Financial Digest — M id A tlantic Real Estate Journal

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F inancial D igest

FIRST HOMES FIRST . STEPS. For 140 years, Kearny Bank has been here for both. As a trusted mainstay of the community, Kearny Bank has helped generations of families and businesses grow, prosper and meet change with strength and stability. TOGETHER, OUR BEST IS YET TO COME. Empowering prosperity. Connecting community. Delivering trust. kearnybank.com | 800-273-3406

O wners , D evelopers & M anagers

M id A tlantic Real Estate Journal — March 2024 — 9A

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Prominent international developer shows strong confidence in 2024 Visionstream expands into Southern NJ with Coordinated Project Solutions, led by Andy Jain S TRATFORD, NJ- CRE TV — Visionstream's ambitious ventures into

to diverse segments of the population, and the incorpora- tion of supporting retail stores emphasizes Visionstream's holistic approach, recognizing the interconnectedness of resi- dential and commercial spaces in community development. “Andy Jain’s invitation to the public clearly demon- strates his commitment to the community and his dedica- tion in shaping the future of Southern New Jersey” said St. Maur. As Visionstream looks ahead to 2024, the com- pany's clear vision is to be recognized as the most trusted and well-known housing and retail developer in the New Jersey area is both inspiring and achievable. The commit- ment to quality, affordability, and community well-being, coupled with the expertise of their strategic partnership positions Visionstream for success in redefining the real estate landscape in Southern New Jersey. MAREJ The space incorporates the latest workplace technologies, including high quality video conferencing cameras, and conference room occupancy sensors. Advanced monitor- ing systems track and display air quality throughout the of- fice , while daylight harvesting systems combine with Power over Ethernet (PoE) lighting displays to meet Bala’s well- ness and sustainability goals. The office also features ample access to natural light, high- quality acoustics, biophilia, and sit-to-stand desks that promote healthy movement throughout the day. “Bala’s new headquar- ters is a celebration of our employees. We endeavored to create a place of overall physical and emotional well- ness that fosters innovation and collaboration across all our teams,” said Kimberly Burkert , CEO of Bala Con- sulting Engineers. MAREJ

WAYNE, PA — Meyer an- nounced the completion of Bala Consulting Engineers’ rede- signed corporate headquarters in Wayne. The completely renovated 21,500 s/f office em - braces the highest standards of neurodiversity and universal design in a thoughtfully de- signed workspace that fosters the health, connectivity, and innovation of Bala’s engineers and professional staff. The project was designed according to WELL Build- ing Standards, a roadmap for creating and certifying spaces that advance human health and wellbeing and is currently being evaluated for certification. Bala Consulting Engineers supports a 100% in-person workforce, so it was important that the design be as comfortable, productive, and welcoming to staff and clients as possible. “Our goal was to create a destination headquarters that Southern New Jersey is led by Andy Jain , who presents an exciting value add for the local community and the com- mercial real estate industry. Visionstream already has a sound foundation of 15 years of experience in delivering pre - mium projects in Northern and Central New Jersey. Now with a collaboration with Rich St Maur, founder of Coordinat- ed Project Solutions based in Stratford, the firm is well- positioned to make a significant impact on the Southern region of New Jersey, specifically in Glassboro and Camden County. Jain's unique combination of a master’s degree in Civil Engineering and an MBA in Finance brings a valuable blend of technical expertise and financial acumen to the Visionstream team. “This [Jain’s] dual profi- ciency in Civil Engineering and

245 E. High Street rendering

214 E. High Street rendering

Finance will play a crucial role in the success of their upcom- ing projects,” said St Maur. Since 2021, the strategic partnership with St. Maur and Coordinated Project So- lutions, LLC demonstrates Visionstream's commitment to expanding its reach and enhancing its capabilities. This collaboration aligns seamlessly with their mission to become the best-in-class quality developer, providing competitively priced retail

and residential solutions to the community. The plans for 2024 showcase Visionstream's dedication to transforming the local land- scape, including the com- mencement of construction for three projects situated in Glassboro, NJ: 1. An 89-unit apartment building at 245 E. High Street. 2. A state-of-the-art Self- Storage facility at 214 E. High Street. 3. Another self-storage

facility at 555 Aura Road. Beyond Glassboro, Vision- stream has expanded devel - opment projects to Camden County, revealing a broader vision for the region. These projects encompass Premium Market Rate Apartments, Age- Restricted Apartments (55 and older), Senior Care Projects with Independent Living, As- sisted Living, and Memory Care Facilities, along with vari- ous supporting retail stores. Visionstream aims to cater

Meyer announces the completion of Bala Consulting Engineers’ redesigned corporate headquarters in PA

Bala Consulting Engineers’ redesigned headquarters (credit: Jeffrey Totaro).

prioritizes employee health and innovation,” said Debra Breslow, NCIDQ, IIDA, WELL AP , leader of Meyer’s Corporate Practice. “The hu- man-centric design speaks to Bala’s values as an organiza- tion, and Meyer is proud to

have partnered with them on this important project, which pushes the envelope for sus- tainable workspace design.” Bala’s headquarters brings together a diverse population of staff in an open office set - ting that promotes hospitality

for employees, clients, and guests. A large café with gam- ing options and other ameni- ties converts to a training and conference room for flexible gathering, and digital signage highlights messaging from all of Bala’s office locations.

10A — March 2024 — Owners, Developers & Managers — M id A tlantic Real Estate Journal

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O wners , D evelopers & M anagers

think growth Changing rules and regulations within a highly competitive market creates greater challenges to achieving your vision for growth. Withum’s Real Estate Services Team provides opportunities and long-term strategies to help weather the highs and lows of challenging times. From due diligence to digital transformation, from cost segregation studies to lease analysis and review services, we can help commercial, industrial and residential real estate companies be in a position of strength. Visit withum.com/thinkgrowth to learn more.

M id A tlantic Real Estate Journal — Owners, Developers & Managers — March 2024 — 11A

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O wners , D evelopers & M anagers 16-unit apartment building sells for $2.35 million

Susskind of Hudson Atlantic brokers sale of Grand Gardens Apartments in Jersey City, NJ J ERSEY CITY, NJ — Hudson Atlantic , a lead - ing real estate brokerage firm, an -

strategic approach through - out the sale process. "We are proud to have Ben as part of our team, and his success with Grand Gardens represents our commitment to delivering exceptional results for our cli - ents. The collaboration between Ben and the rest of the Hudson Atlantic team highlighted the strength of our collective exper - tise in the real estate industry," said Zweibel. Grand Gardens was built in 1950 and is situated in a prime neighborhood in Jersey City surrounded by new de - velopments all around it. The

property consists of 1- and two- bedroom apartments that have $600+ rent upside and is within walking distance to a light rail station offering a 20-minute commute to Manhattan. Hudson Atlantic continues to be a driving force in New Jersey real estate. The firm's commitment to excellence and strong bench of expertise posi - tions it as a trusted partner in achieving the real estate in - vestment goals of their clients. Hudson Atlantic is an invest - ment brokerage firm specializ - ing in multifamily investment sales in New Jersey. MAREJ

nounced the successful sale of Grand Ga r d en s , a 16-unit apartment building for $2.35 mil - lion. Grand Gardens is in

Ben Susskind

the heart of Bergen-Lafayette section of Jersey City. The property was listed, marketed, and sold by Ben Susskind , one of Hudson Atlantic’s rising stars, with support from Adam Zweibel , co-founder and man- aging partner of the firm. The property traded at an impressive 4.46% cap rate when lending rates are sig - nificantly higher provides testament to Hudson At - lantic's unparalleled ability to identify the right target buyer pool. Susskind ex - pressed his enthusiasm for a successful deal. "I am thrilled to have closed my first deal only eight months into the industry and to have played a key role in its successful sale. The support and mentorship from Zweibel and the entire Hudson Atlantic team were instrumental in achieving this outcome," said Susskind. Zweibel, commended Suss - kind for his professionalism and ANNAPOLIS, MD — Thomas Park , a commer- cial real estate and manage - ment firm, announced the launch of Thomas Park Construction , a new service line specializing in high- quality general contracting and construction manage - ment services for commercial interior projects. Thomas Park Construction fills a critical gap in the mar - ket by offering its expertise exclusively to smaller-scale commercial interior projects in the lower middle-market. With +35 years of combined development and contracting experience leading the team, Thomas Park Construction brings a wealth of knowledge and proven success to every project. MAREJ Thomas Park launches new construction services

Grand Gardens

12A — March 2024 — Owners, Developers & Managers — M id A tlantic Real Estate Journal

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O wners , D evelopers & M anagers

Peloquin, Thomas, and Choisser, secures acquisition financing for the buyer Northmarq finalizes sale of 95-unit, build-to-rent community in Northern Virginia W INCHESTER, VA — A Northmarq specialty Build-To-

Northmarq represented the seller in the transac - tion. The team also included Chris Doerr, Will Harvey, Shack Stanwick, Matt Straughan, Wink Ewing, and Anthony Pino . Northmarq’s Debt + Equity team of Tom Peloquin, Cabell Thomas and Rich Choisser secured acquisition financing on behalf of the buyer, a joint venture between RockBridge Investment Group and DSP Real Estate Capital . “Build-to-rent acquisition opportunities are extremely rare in Virginia and the Mid-

Atlantic region at this time,” said Azarbarzin. “Investors were drawn to this offering because of dynamic growth in the Winchester region, and its strategic location within commuting distance of Wash - ington DC and the Dulles Technology Corridor.” “We enjoyed working with Ari Azarbarzin and the capital markets team at Northmarq on our purchase of West Wind Townhomes,” said Purna Dok - ku, managing partner at DSP Real Estate Capital. “This is our first of several build-to- rent communities we plan on acquiring this year. North - marq made the transaction proceed smoothly and, most importantly, on time." MAREJ alliance to support lenders, investors, and servicers with distressed assets Mackenzie and InspiRE form LUTHERVILLE, MD — The MacKenzie Companies, LLC , together with InspiRE CRE, LLC , have announced the formation of Asset Adver- sity Group , a new alliance that combines InspiRE’s distressed asset and receivership experi - ence with MacKenzie’s full spectrum of commercial real estate services. The alliance is designed to support financial institutions, investors and other entities by helping stake - holders optimize asset value on distressed and underperform- ing commercial real estate as - sets in their portfolios. Marc Fischer , president and founder of InspiRE CRE, has more than 30 years of experience in optimizing asset value. InspiRE’s distressed as - sets group helps lenders navi - gate the financial, operational, and legal challenges posed by distressed properties. When necessary, Fischer serves as a court-appointed receiver or owner’s representative. In other MacKenzie news, Morgan Wimbrow has been promoted to senior real estate advisor, MacKenzie Commer - cial Real Estate Services, LLC, the full-service brokerage divi - sion of The MacKenzie Com - panies. Formerly real estate advisor, Wimbrow joined the company in 2019 and has more than seven years of business and commercial real estate experience. MAREJ

Rent team led by Ari Azarbarzin and Gabe Tovar has completed the sale of West Wind, a 95-unit, build-to-rent community

Ari Azarbarzin

located at 113 Holt Court in Stephens City, a northern Virginia town located 14 miles south of Winchester.

West Wind

QUALITY COMMITMENT PERFORMANCE

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