4-11-14

R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news

Rumley & Gartner of Metro Commercial negotiate sale Cedar Realty Trust acquires Quartermaster Plaza for $92.3 million P HILADELPHIA, PA — Cedar Realty Trust, Inc. announced that

ISSUE HIGHLIGHTS Volume 26 Issue 7 April 11 - 24, 2014 Financial Feat. Appraisal Spotlight

MORRISTOWN, NJ — G.S. Wilcox &Co. announced that they have arranged fi- nancing totaling $19,950,000 arranged by David Fryer , principal of G.S. Wilcox & Co. A loan totaling $19,950,000 was originated with Redwood Commercial Mortgage Cor- it closed on the acquisition of Quartermaster Plaza in Philadelphia, a 456,000 s/f grocery-anchored shopping center. The shopping center is 98% occupied and anchored by a BJ’s Wholesale Club. The asset was acquired for $92.3 million, including the assumption of $53.4 million of fixed rate debt. The acquisition is expected to be funded with anticipated pro- ceeds from asset sales. Pending such proceeds, the acquisition will be initially funded using the company’s credit facility. Quartermaster Plaza is lo- cated in the heart of the South Philadelphia retailsubmarket. Built in 2004, Quartermaster Plaza is situated on over 43 acres, with approvals for up to an additional 98,000 s/f. It is adjacent to Cedar’s South Philadelphia Shopping Center, a 283,000 s/f center anchored by a market-dominant Shop- Rite supermarket. With the strategic combination of these centers, Cedar owns 739,000 s/f,

7-17A

Lee & Associates reps. seller in $8.45m sale

Quartermaster Plaza

representing 22% of the South Philadelphia retail submarket. Further, Cedar now owns 5 shopping centers in the city of Philadelphia, with an aggregate of 1.3 million s/f and an aver- age population of over 300,000 people within 3-miles of our centers. With this acquisition,

Cedar is now the owner of the most open air shopping center square footage in the city of Philadelphia of any public shop- ping center REIT. “We are excited about the acquisition of Quartermaster Plaza. The acquisition fits per- fectly into our Washington DC

to Boston footprint and is con- sistent with our evolving view of the grocery business,” said Bruce Schanzer, president and CEO. The sale was negotiated on the buyer's behalf by Metro Commercial principals Paul Rumley and Steven Gartner. 

FC-B

Marcus &Millichap announces $47.25m sale

G.S. Wilcox&Co. closes $19.95million infinancing

FC-C

Directory

45 Brunswick Avenue in Edison, NJ

DelMarVa ................................................................5-6A Pennsylvania ................................................... SecƟon C Eastern PA .............................................................5-11C TriState OrganizaƟon ................................................19A New Jersey ...................................................... SecƟon B Southern New Jersey.............................................5-12B Financial Digest Feat. Appraisal .............................7-17A

in the Town of Clarkstown in Rockland County, NY. The rate was fixed for 10 years with a 30 year amortization. G.S. Wilcox & Co. is a full service mortgage banking firm which originates, underwrites, and services commercial real Rockland County Portfolio

poration with the borrower being Associates of Rockland County, LLC. The loan is for four flex warehouse buildings consisting of 210,563 s/f. The subject property is located at 612 & 614 Corporate Way, and 704 & 706 Executive Blvd.,

Upcoming Spotlights April 25, 2014 Spring Preview

estate mortgage loans. Locat- ed in Morristown, New Jersey the firm currently services $920 million in commercial real estate loans. G.S. Wilcox & Co., founded in 1994, is celebrating its 20th year anniversary. 

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Inside Cover A — April 11 - 24 , 2014 — Mid Atlantic Real Estate Journal

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25 Years

CORFAC International. Locally Owned.

Globally Connected.

CELEBRATING 25 YEARS BUILDING RELATIONSHIPS In 1989 a group of independent brokers joined together to create a new kind of commercial real estate network. As CORFAC International, these firms referred business around the world while retaining their local identity. 25 years later, CORFAC International has 60+ offices in North America and market reach in 65 countries, and continues to offer clients exemplary service at all levels.

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View the CORFAC Video

Here’s to the next 25 years of building relationships around the world.

MID-ATLANTIC AFFILIATES Chatham, NJ

Philadelphia, PA Arlington Group Real Estate, LLC/ CORFAC International www.arlingtongrouprealestate.com Pittsburgh, PA Weber Wood Medinger/ CORFAC International www.wwmrealestate.com Red Bank, NJ Arlington Group Real Estate, LLC/ CORFAC International www.arlingtongrouprealestate.com

Richmond, VA Porter Realty Company, Inc./ CORFAC International www.porterinc.com Silver Spring, MD Donohoe Real Estate Services/CORFAC International www.donohoerealestate.com Tysons Corner, VA Donohoe Real Estate Services/CORFAC International www.donohoerealestate.com

Washington, DC Donohoe Real Estate Services/ CORFAC International www.donohoerealestate.com

The Garibaldi Group/ CORFAC International www.garibaldi.com Lehigh Valley, PA

Wilmington, DE Patterson-Woods

Commercial Properties/ CORFAC International www.pattersonwoods.com

The Garibaldi Group/ CORFAC International www.garibaldi.com Paramus, NJ McBride Corporate Real Estate/CORFAC International www.mcbridecorpre.com

Mid Atlantic Real Estate Journal — April 11 - 24, 2014 — 1A

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2A — April 11 - 24, 2014 — M ID A TLANTIC

Real Estate Journal

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Mid Atlantic R EAL E STATE J OURNAL Publisher ............................................................................. Linda Christman Publisher ................................................................................ Joe Christman Publisher/Senior Account Executive ..................................... Elaine Fanning Section Publisher ...................................................................... Steve Kelley Senior Editor/Graphic Artist.....................................................Karen Vachon Production Assistant.......................................................................Julie King Office Manager..................................................................... Joanne Gavaza Contributing Columnist........................................................... Debra Stracke Mid Atlantic R EAL E STATE J OURNAL — Published Semi-Monthly Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 312 Market St. Rockland, MA 02370 USPS #22-358 | Vol. 26 Issue 5 Subscription rates: $99 - one year, $198 - two years, $4 - single copy MARE Journal will not be responsible for more than one incorrect insertion Toll-Free: (800) 584-1062 | MA: (781) 871-5298 | Fax: (781) 871-5299 www.marejournal.com Correction: In the 3-28-14 Issue of THe Best of 2013 The wrong photo ran with Levin Management’s “The Developers Top Projects (Reno)” for the Best of 2013. The Mid Atlantic RE Journal apologizes for the mistake. We take full responsibility . REPORT AN ERROR IMMEDIATELY

Mid Atlantic Real Estate Journal

Andrew Merin

Plenty of Capital Flowing to New Jersey Commercial Real Estate

ith the first few months of 2014 in the books, we are

seeing plenty of capital flow- ing to New Jersey commercial real estate. Strong fundamen- tals across market sectors are attracting a diverse pool of in- vestors, ranging from private investors taking advantage of attractive financing rates to scoop up distressed properties, to public and private REITs, foreign entities and pension advisors seeking core and core-plus assets. INDUSTRIAL Healthy tenant demand for New Jersey industrial space resulted in 21.3 million s/f of leasing last year – an impres- sive 27.1% increase over 2012 and the second highest annual accrual in the last six years. The leasing of quality space has pushed vacancies down and net absorption up, and has boosted the asking rental rate 3.6% to $5.99 per s/f. It is no wonder, then, that investor appetite for industrial

MAREJ A DVERTISING D IRECTORY ARD.................................................................................................16A Bennett Williams .............................................................................2A BK Companies..................................................................................7A BL Companies ..................................................................................7C Business Card Directory................................................................20A Bussel Realty Corp....................................................................... IC-B BWR................................................................................................17A Classic Properties ............................................................................7C Cooper Horowitz...............................................................................9A Corfac Int’l.................................................................................. IFC-A Cushman & Wakefield...............................................................IBC-B Deerwood Real Estate Capital ......................................................11A Earth Engineering ............................................................... 5C & 14B Eastern Union ................................................................................10B Fortna Auctioneers ..........................................................................1C Gebroe-Hammer Associates ............................................................3B GFCIB...............................................................................................8A GREP ..............................................................................................10C Griffin Land......................................................................................8C Harvey Hanna..................................................................................1A Heller Industrial Parks ...................................................................4B Hinerfeld Commercial RE ....................................................... 12-13C Hinerfeld Commercial RE .............................................................20A Hutchinson Mechanical Services ....................................................6B IFMA...............................................................................................13B Jennings Auction Group ..................................................................4A Kaplin | Stewart..............................................................................2A Kearney Federal Savings ........................................................... BC-A Keast & Hood Co............................................................................16C Landmark Commercial Realty ........................................................4B Lee & Associates ..............................................................................1B LVEDC..............................................................................................3A Marcus & Millichap .........................................................................3A Mericle Comm’l. RE Svcs............................................................ BC-C Metro NJ Chapter Appraisal Institute .........................................14A NAI CIR............................................................................................4C NAI Keystone ...................................................................................9C NAI Summit ...................................................................................20A NAI Summit .....................................................................................8C NENJ Appraisal Institute .............................................................15A NJAA ..........................................................................................IBC-A NorthMarq......................................................................................11C PA DCED...................................................................................... IC-C PennCap Properties ............................................................... 2C & 8C Poskanzer Skott Architects ...........................................................13B PWC ..................................................................................................2A Rational Contracting .......................................................................2B Rocco’s Auction & Appraisals..........................................................3A RRA...................................................................................................3C SEBCO..............................................................................................3B Sheldon Gross Realty.......................................................................2B Sidney Gable Associates ..................................................................7C Singer Financial Corp....................................................................10A SNJ Appraisal Institute .......................................................... 12-13A SUBWAY ........................................................................................20A Target Building Construction .........................................................6C The Frederick Group........................................................................8C The Kislak Company .....................................................................14B The Prestige Group..........................................................................5C TriState Commercial Alliance.......................................................19A ULI Philadelphia .............................................................................6A Warner Real Estate & Auction Company.......................................4A Whitesell...................................................................................... BC-B Wolf Commercial Real Estate .........................................................7B

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

remains strong. Cushman & Wakefield recently surveyed a large group of national in- stitutional industrial players. Seventy-seven% of respon- dents said that New Jersey is their top investment target. In fact, industrial real es- tate investment sales in New Jersey reached a record high in 2013, with $1.1 billion in deals closed (besting the pre- vious, $922 million record set in 2006 and nearly doubling the volume closed in 2012). We see no sign of a slowdown heading into the heart of 2014, provided that properties continue to come online.

OFFICE With its second-highest leasing volume since 2009 (7.9 million s/f), the New Jersey office market ended 2013 on a bright note, with stepped- up demand and rising rental rates. Despite the region’s continued struggle with space absorption, a lack of new office construction and the adaptive reuse of some existing product will help the market turn the corner in 2014. While slightly below the historical average of $1.5 bil- lion, 2013 office investment sales volume totaled a healthy continued on page 18A

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Mid Atlantic Real Estate Journal — April 11 - 24, 2014 — 3A

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M ID A TLANTIC R EAL E STATE J OURNAL Investments reflect wider net being cast by buyers Gebroe-Hammer arranges $30m+ in multi-family sales P

The Real Estate Investment Leader. Contact us today to access the largest inventory in the country.

HILADELPHIA, PA — Gebroe-Hammer Associates announced three recent sales – two of which were distressed – ar- ranged by the investment bro- kerage firm. The brokerage team of Jo- seph Brecher , managing director, and Eli Rosen , senior vice president, represented the seller and the buyer, local real estate investor Philip Balder- ston, in the $15.875 million sale of Coachman Manor in Lindenwold, NJ. Located at 401 E. Gibbsboro Rd., the 546- unit complex is comprised of a mix of one- and two-bedroom/ one-bath and three-bedroom/ two-bath layouts. “Coachman Manor fit in well with the buyer’s multi-family portfolio profile,” said Rosen. “This acquisition is a sound investment because of the opportunity to implement a renovation program that will render the complex even more competitive in today’s strong rental market.” Gebroe-Hammer also repre- sented the seller and identified the buyer, a local investor, in the $4.3 million sale of 104-unit Lindley Towers, located at 1220 Lindley Ave., in the Logan sec- tion of North Philadelphia. “In addition to Philadelphia's strong renter pool tradition- ally comprised of hard-working families and empty nesters, it is seeing an influx of new college graduates from area universi- ties who have decided to remain in the city and work here,” said Brecher, in regard to the Phila- delphia market. “This trend, along with attractive pricing for multi-family product, has contributed toward growth at pre-recession levels.” In the third transaction, Gebroe-Hammer represent- ed a limited partnership led by Balderston in the $10.35 million acquisition of Edgely Estates, located at 1610 Ed- gely Rd., in Levittown, Bucks County, PA. The property is comprised of newly renovated studio, and one- and two-bed- room units. “Coachman Manor and Ed- gely Estates are examples of the types of properties for which investors are casting a wider net to add value. Both complexes were less than 80 percent occupied at the time of sale and are being repositioned to maximize each market’s strong rents and occupancy levels,” added Brecher. 

Bryn Merrey Washington, D.C. (202) 536-3700 J.D. Parker Manhattan (212) 430-5100

Spencer Yablon Philadelphia (215) 531-7000 Brian Hosey New Jersey (201) 582-1000

www.marcusmillichap.com

Coachman Manor

REAL ESTATE AUCTION FORMER CORRY MEMORIAL HOSPITAL Saturday April 26 Th at 10 AM 612 West Smith St. Corry, PA 35 miles South East of Erie, PA Take Rt. 6 East to Corry, turn right at W. Smith St. to 612 W. Smith St. Corry, PA

Well maintained 80 bed hospital with 83,000 sf, two story brick building with full basement, two elevators, plus detached 4 bay garage, ample o ī street parking. Situated on a 4 acres with all public u Ɵ li Ɵ es, plus access to all 4 surrounding streets. Could be converted to assisted living, nursing or residen Ɵ al uses.

Call for details or bidders packet. Photos at www.roccoauc Ɵ ons.com

AU-2352-L

4A — April 11 - 24, 2014 — Mid Atlantic Real Estate Journal

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M ID A TLANTIC R EAL E STATE J OURNAL A UCTIONS Bidders will have the opportunity to bid on one or two tracts or the entire farm Warner Real Estate to auction 228 acre farm in Quinton/Lower Alloway Creek Townships, NJ

cellent for home sites. Road frontage on Cross and Beasley Neck roads. Property inspection will take place on Sunday, April 13, 2014 12:00 - 2:00 pm. The auction will be held on Friday, April 25, 3:00 pm, Holiday Inn Select, 1 Pureland Drive, Swedesboro, NJ 08085 (Exit 10, I-295). The auction is open to buyers, investors, and Realtors. Accord- ing to Rich Warner, president and founder of Warner Real Estate and Auction Company, bidders will have the opportu- nity to bid on one or two tracts or the entire farm. The success- ful high bidder will be required to place a 10% deposit ($25,000 in the form of certified funds for individual tracts, $50,000 for the entire farm) and the remainder in cash or personal checks due immediately upon conclusion of the auction. This particular farm offers buyers both agricultural and develop- ment opportunities. Detailed property and bidding require- ments are available by calling Warner Real Estate and Auc- tion Company, 856-769-4111. 

UINTON/ LOWER ALLOWAY CREEK TWPS., NJ — Warner Real

E s t a t e & A u c t i o n Company , a leading real estate firm in New Jersey, will conduct an Auction ordered by the co-executors, estate of the late Albert M. Bell. The property, offered sepa- rately and in its entirety, con- sists of 228 +/- Acres, 4 BR, 2 Bath Farm House, irrigation pond, (2) pole barns located in Quinton and Lower Alloway- Creek Townships, NJ. Tract #1: Block 18, Lot 2, Block 29, Lot 3 and Block 10, Lot 3, 134.83 +/- acres (pre- served), 2 dug wells. Tract #2: Block 18, Lot 3, 44.26 +/- acres, two story 4 bedroom, 2 full bath colonial stylefarmhouse, (2) pole barns, irrigation pond and (2) wells Tract #3: Block 29, Lot 4, Q-Farm, 51.94 +/- acres. Ex- Rich Warner

Tracts Aerial

ESTATE AUCTION By Order of Co-Executors, Estate of Albert M. Bell )ULGD\$SULOWK30 228± Acre Farm

ABSOLUTE REAL ESTATE AUCTION Thursday, April 17th at 1:00 PM 3 Adjoining Front Street Properties Selling at auction 3 adjoining Harrisburg riverfront mansions, located in the Academy Manor area on Front St. between Division and Manor Streets. This is perhaps the best residential or office development site in the area…with great river views and a com- bined footprint of approximately 1.97 acres. 2901, 2909 & 2917 North Front Street, Harrisburg, PA 17110

PREVIEW by appointment, please call to see property!

General Terms: The sale of all real estate shall be in As-Is condition without warranty or representation as to the use or condition of the property. Properties will be offered individually or in any combination, selling ultimately to the highest bidder(s) as individual properties or as combined. A deposit of 10% of the high bid(s) will be due at auction by cash or PA check; out of state checks accepted with bank letter of guarantee (unless approved in advance by auctioneer). Balance at settlement which must be between June 16 – June 20, 2014. Broker Participation offered. Property Information Packet on website or call. Announcements at auction take prece- dence over all printed advertising and materials.

Offered in Three Tracts and in its Entirety Auction Location: Holiday Inn, Swedesboro, NJ (Exit 10, I-295) Property Location: 18 Beasley Neck Road, Quinton, NJ

856-769-4111 www. WarnerReal tors .com

Mid Atlantic Real Estate Journal — April 11 - 24, 2014 — 5A

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Mid Atlantic Real Estate Journal — April 11 - 24, 2014 — 5A

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ARC Hospitality to commence monthly distributions on April 5, 2014 $101.5 million: ARC Hospitality completes acquisition of first six hotels

B ALTIMORE, MD — American Real ty Capital Hospitality Trust, Inc. (“ARC Hospital- ity”) announced that it closed on the acquisition of interests in six hotels on March 21, 2014, marking ARC Hospital- ity’s first property acquisitions. ARC Hospitality acquired the fee simple interests in the Courtyard® Inner Harbor Hotel in Baltimore, MD, the Courtyard® Providence Down- town Hotel in Providence, RI, and the Homewood Suites® in Stratford, CT, as well as a leasehold interest in the Geor- gia Tech Hotel & Conference Center in midtown Atlanta, GA, for an aggregate purchase price of $101.5 million, exclu- sive of closing costs. Addition- ally, ARC Hospitality has ac- quired joint venture interests in The Hilton Garden Inn® in Blacksburg, VA, and the Westin Virginia Beach Town Center in Virginia Beach, VA, for an aggregate purchase WASHINGTON, DC — HFF announced that it has closed the $79 million sale of The Army and Navy Club Building, a 108,000 s/f, class A office property located on the northeast corner of 17th and Eye Streets, NW over- looking Farragut Square in the heart of the Central Business District (“CBD”) of Washington, DC. HFF exclusively repre- sented the seller, Beacon Capital Partners , in the transaction. Washington Real Estate Investment Trust (WRIT) purchased the property for $79 million contingent to existing debt. The HFF investment sales team representing the seller was led by executive man- aging director Stephen Conley , senior managing directors Jim Meisel , Dek Potts and Andrew Weir , and associate director Matt Nicholson . 

tourist attractions, airports, retail centers or convention centers. The six hotels are managed by American Realty Capital Hospitality Properties, LLC and Crestline Hotels & Resorts, LLC , ARC Hospital- ity’s property manager and sub-property manager. William M. Kahane , chief executive officer and president of ARC Hospitality, comment- ed, “The purchase of these six assets marks our first acqui- sition and is representative of the durable income assets we intend to purchase. The portfolio includes branded hotels franchised by Hilton Worldwide, Marriott Interna- tional and Starwood Hotels & Resorts located in strong markets with embedded mar- ket demand generators. As the U.S. economy continues to improve, we fully expect the hospitality sector to benefit from GDP growth.” Jonathan P. Mehlman , chief investment officer of ARC

Hospitality, added, “Each of these hotels is the leader in its respective market from an average daily rate, occupancy and Revenue Per Available Room perspective. We are very excited to have procured this high quality hotel portfolio in an off-market transaction and at a price which is at a discount to current replacement cost.” Additionally, pursuant to authorization from its board of directors, ARC Hospitality declared a distribution rate, which will be calculated based on stockholders of record each day during the applicable peri- od at a rate of $0.00465753425 per day, based on a per share price of $25.00. The distribu- tions will begin to accrue on April 1, 2014, and will be payable by May 5, 2014. Go- ing forward, distributions will be payable by the fifth day following each month-end to stockholders of record at the close of business each day dur- ing the prior month. 

Georgia Tech Hotel Exterior

price of $5.0 million, exclusive of closing costs. The hotels contain 1,181 rooms and approximately 38,960 s/f of meeting space. Each of the hotels is a globally branded select-service or full- service hotel, or, in the case of the Georgia Tech Hotel &

Conference Center, a hotel and conference center affiliated and owned by the endowment of the university. All of the ho- tels are located near “demand generators” such as corporate headquarters, colleges or uni- versities, state capitals or gov- ernment agencies, hospitals,

Marcus &Millichap arranges the $5.191m sale of 2Wendy’s

HFF closes $79 million sale of The Army and Navy Club Building

liability companies, were se- cured and represented by Nathan Pealer. The properties were sold subject to brand-new 20 year net leases. “Investor demand for this type of property contin- ues to be very high because of a lack of available properties that have long-term leases with great tenants at great locations,” said Nathan Pealer. “We were able to close these transactions at over 96% of the asking price and both transac- tions settled within 80 days of the beginning of our market- ing efforts.” 

CAPITOL HEIGHTS MD — Marcus &Millichap Real Estate Investment Services has announced the sale of two Wendy’s properties located in Capitol Heights and Leonard- town, MD, according to Bryn D. Merrey , regional manager of the firm’s Washington, DC office. The two properties sold for $5,191,000 combined. Nathan Pealer , senior associate in Marcus & Millic- hap’s Washington, DC office, had the listing to market the properties on behalf of the seller, a franchisee of Wendy’s. The purchasers, both limited

The Army and Navy Club Building

6A — April 11 - 24, 2014 — Mid Atlantic Real Estate Journal

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D EL M AR V A

Delaware Regional Satellite Council Presents: Delaware Economic Development Summit Thursday, April 24, 2014 ~ 8:00-10:00am The (new) Westin Wilmington, on the Christina River, 818 Shipyard Drive, Wilmington, DE 19801 Explore the economic development landscape in the State of Delaware -- new corporate commitments, employment gains, and real estate transactions which have enabled the State to re-establish itself post-recession. Within the Greater Philadelphia Standard Metropolitan Statistical Area (SMSA), the State of Delaware, New Castle County and the City of Wilmington are important independent economic drivers with strengths in financial services, “eds & meds,” bio-pharmaceuticals, legal services and more. The City, County and State have successfully attracted new corporate commitments and stabilized recession-era real estate markets, leading to adaptive re-use of older obsolete facilities, redevelopment of formerly vacant properties, and new ground-up development. Business and real estate professionals, whether based regionally or in Delaware, will hear the latest on local economic development trends and the industries and corporations making a difference. FEATURED KEYNOTE: Tom Murphy, ULI Canizaro/Klingbeil Families Chair for Urban Development and former Mayor of Pittsburgh, PA, will open the program. Panelists include Alan Levin , Cabinet Secretary, Delaware Economic Development Office ; Patrick Grusenmeyer, President, Christiana Care Health Initiatives; David Hastings , Executive Vice President and Chief Financial Officer, INCYTE; and Thomas Horne, Head of Card Operations, JPMorgan Chase. Special Thanks to Event Sponsors:

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F INANCIAL D IGEST F EATURING A PPRAISAL

Mid Atlantic Real Estate Journal — April 11 - 24, 2014 — 7A

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Marc Tropp and Eli Breiner close a series of deals Eastern Union closes over a quarter billion during the last three days of March

T hree business days. Over $250 mi l l i on closed. That’s how E a s t e r n U n i o n capped off a m o n t h which also saw $461 million in new deals under ap- p l i c a t i o n and 400 new loan submis- Ira Zlotowitz

mortgages totaling $32,370,000 on five retail properties with a combined 75,160 s/f located on Westchester Ave., Grand Concourse, East Burnside Ave. and Morris Ave. in the Bronx, NY. The loans feature rates of 3.63% and five-year terms. Moshe Majeski and Jeffrey Berkes negotiated these trans- actions. Anewmortgage of $5,000,000 was placed by Meridian on a 34-unit, five-story mixed-use building on East 86th St. in New York, NY. The loan fea- tures a rate of 3.38% and a five-year term. This transac- tion was negotiated by Shamir Seidman and Daniel Neiss . Meridian negotiated a new mortgage in the amount of $4,000,000 on a 26-unit, five- story multifamily building on wich, CT. The transaction is a 25- year fully-amortizing, private- placement bond deal to finance the construction of the Center’s garage and the new office building, with a set rate at time of closing that may be lowered in the future. The transaction provides phased funding for the construction to minimize negative arbitrage to the borrower as well as a fee loan to the interest holder. NorthMarq arranged financing for the borrower through its re- sions, signalling more surges in the near future. Executives at the firm attribute the activity to bro- kers’ relationships with an expanding network of lend- ers combined with the com- pany’s internal Loan Tracker system keeping an influx of mortgage data accessible and organized. “We’re ecstatic with the growth,” said company presi- dent Ira Zlotowitz . “And

East 21st St. in New York, NY. The loan features a rate of 3.57% and a five-year term. Isaac Filler and Sam Shifer negotiated this transaction. Anewmortgage of $2,000,000 was placed by Meridian on an 83-unit, six-story multifamily building on University Ave. in the Bronx, NY. The loan features a rate of 3.25% and a five-year term. This transac- tion was negotiated by Judah Hammer and Daniel Neiss. Meridian negotiated a new mortgage in the amount of $1,950,000 on a 28-unit, five- story multifamily building on Andrews Ave. North in the Bronx. The loan features a rate of 3.19% and a five-year term. David Hayum and Moe Rosenblum negotiated this transaction.  even happier we were able to do it all while keeping to our core values and focus serving small to mid-size commercial real estate property owners and encompassing diversity and structure.” True to cause, during these three days, loans closed in six states, 29 were less than $10 million, 10 were purchases and 26 featured fixed inter- est rates between 3.25 and 3.875%.

By way of illustration, se- nior managing director Marc Tropp of the Maryland office closed six deals in that state each under $10 million. Senior managing director Eli Breiner closed a series of deals for 11 buildings in the Bronx on Monday, arrang- ing a total of $33,755,150. In keeping with the theme of creativity, Breiner struc- tured a commitment allowing his client to order another

appraisal anytime after the first year, and borrow on 80 percent of the new valuation. “Everyone’s aggressive right now,” Zlotowitz said. “Rates are still hovering in the mid 3 percent range, clients are positioning them- selves for the long term and they need a firm that can navigate the market like a GPS. We are that GPS complete with a powerful engine.” 

Meridian Capital Group negotiates $50m in financing in NY & NJ

Mark Scott’s CMC arranges $14.27m loan assumption for Carriage Club

EAST ORANGE, NJ — Me- ridian Capital Group, LLC , a leading national commercial

real estate finance and a d v i s o r y f i rm , a n - n o u n c e d the follow- ing transac- tions: Newmort- gages total-

Elliot Treitel

ing $4,655,500 were placed by Meridian on two multifam- ily properties composed of 74 units. The properties are located on Lincoln St. and Prospect St. in East Orange, NJ. The loans feature rates of 2.99% and five-year terms. This transaction was negotiated by Elliot Treitel . Meridian negotiated new NEWYORK, NY – NAIOP ’s Connecticut and suburban NewYork chapter awarded the Connecticut Deal of the Year award to The Bridgeport Hos- pital Park Avenue Campus. The property was financed with a $115 million construc- tion and permanent mortgage placed by NorthMarq Capi- tal ’s Ernest DesRochers , se- nior vice president/managing director and Deanna Polizzo , vice president. The award was presented at the Night of Stars Awards event held in Green-

The Carriage Club

heating up between lenders, all of whomhave lofty targets,” said Mark Scott , founder and president of Commercial Mortgage Capital. “According to the Mortgage Bankers As- sociation, originations of com- mercial and multifamily mort- gages are projected to grow to $300 billion in 2014, a 7% increase from 2013 volumes, while originations of multi- family mortgages are forecast at $116 billion in 2014.” Located in the WesternMor- ris County submarket, the seven-acre community boasts a mix of one- and two-bedroom units that range in size from 790 s/f to 1,030 s/f, and a generous amenity package, including a clubhouse, indoor heated pool, fitness center, bil- liard room, library and putting green. 

MOUNTARLINGTON, NJ — Mark Scott’s Commercial Mortgage Capital (CMC) , a leader in real estate finance that arranges permanent, con- struction and mezzanine loans for a wide range of commercial properties including multifam- ily, office, retail, industrial and healthcare facilities primarily in New York, New Jersey and Connecticut, announced that it has arranged a $14.27-million loan assumption for a 80,355 s/f active adult community located at 1 Hillside Dr. in Mount Arlington. Landmark Companies LLC acquired the 105-unit Carriage Club from Pantzer Properties and as part of the sale, the buyer assumed the Freddie Mac loan. “The market is currently in full swing and competition is

NorthMarq Capital transaction wins NAIOP Conn. and Suburban NY Chapter Connecticut Deal of the Year Award

lationship with a CTL Lender. The 120,000 s/f class-A fa- cility, located at 5520 Park Avenue, Trumbull, Conn. will contain a three-story state-of- the-art outpatient facility.  Bridgeport Hospital

8A — April 11 - 24, 2014 — Mid Atlantic Real Estate Journal

www.marejournal.com

F INANCIAL D IGEST

Moravec and Stewart arrange financing Cronheim Mortgage arranges $8m financing for ShopRite anchored retail center

ELLEVILLE, NJ — Allison Moravec and Andrew Stewart have arranged $8 million in financ- ing for a ShopRite anchored retail center located in Bel- leville, Essex County. The loan, placed with Athene Asset Management , was structured with a 10 year term and 25 year amortization, with 5 years of interest only pay- ments. The rate was locked 180 days prior to ShopRite opening, allowing the borrow- er, Belleville Center, LLC, to take advantage of rates while the ShopRite was being built. Belleville Center is a 70,450 B

Belleville Center Before Renovations

Belleville Center After Renovations

s/f shopping center, anchored by a newly built, 60,000 s/f ShopRite. The Subject was previously anchored by Path- mark, who vacated the center in 2010. The subject under- went extensive renovations and ShopRite recently opened their doors. This location is operated by Nutley Park Shop- Rite, Inc, who also operates the ShopRite in Nutley, NJ. The remaining space is 100% occupied by Pizza Hut, Kelly’s Liquors, and a local jeweler. According to Andrew Stew- art, “the developer, who car- ried the property subsequent to Pathmark vacating, was patient enough to negotiate a mutually beneficial lease with a premiere ShopRite operator and complete a substantial renovation. This is now posi- tioned as a fortress asset for many years to come.” The Subject has excellent visibility, with 840 feet of frontage, and great acces- sibility, with three points of ingress and egress along the north side of Washington Av- enue. There is ample surface parking as well as an under- ground parking lot with capac- ity for over 140 vehicles. The underground lot is monitored by surveillance cameras and is serviced by a new shopping cart elevator which provides direct access to the interior of ShopRite. Shoppers took full advantage of the elevator this winter, justifying the ad- ditional investment. Belleville Center is located on the eastern edge of the suburban town of Belleville, an Essex county municipality. The three mile trade area sur- rounding the subject property houses an estimated 230,000 residents with a median household income of $61,000. 

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Mid Atlantic Real Estate Journal — April 11 - 24, 2014 — 9A

www.marejournal.com

F INANCIAL D IGEST

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10A — April 11 - 24, 2014 — Mid Atlantic Real Estate Journal

www.marejournal.com

F INANCIAL D IGEST

David Merkin of Eastern Union negotiates senior loan Small business gets big lift through$1,560,900 Eastern Union loan

Y A T T S V I L L E , MD — EASTERN UNION Eastern

U n i o n Fund i ng arranged a $1,560,900 l o a n f o r t h e r e f i - n a n c e o f single-ten- ant, owner o c c u p i e d

David Merkin

building in Hyattsville. The loan was originated and negotiated by senior loan consultant David Merkin . The loan was provided by Liberty SBF and covers

Kenilworth Laundromat, 4711 Kenilworth Ave., Hyattsville, MD

85% of the valuation for the property--Kenilworth Laundromat, located at 4711 Kenilworth Ave. The rate is prime plus 200 basis points for 25 years. “The client refinanced a loan which was costing him eight percent interest,” Merkin said. “We reduced that to five and a quarter which put thousands of dollars in his pocket. The loan was supplied in accordance with the Small Business Administration, a government agency that provides support for small businesses and entrepre- neurs. There has been an uptick in loans for small busi- nesses recently, but secur- ing these loans can be, as Forbes Magazine put it in a March 4 article, “ a very de- manding process.” To gain confidence from a lender for a given investment, banks need a clear picture on the deal, which can be a rigor- ous. Even still, Forbes writes hints at good news for main street: “small business own- ers can dramatically in- crease their chances of se- curing loan approval.” Merkin’s client witnessed all this firsthand. “Getting an SBA loan can be a difficult process, but David’s persistence and knowledge were key in keep- ing the deal together and making my dream a reality,” said Michael Frizzell, owner of Kenilworth Laundromat. In this case, the first ap- praisal came in short. Mer- kin went through that with a needle and thread, and ulti- mately the second appraisal guaranteed the loan. 

Mid Atlantic Real Estate Journal — April 11 - 24, 2014 — 11A

www.marejournal.com

F INANCIAL D IGEST

On behalf of Madison Investments MAC raises $27.4m acquisition & development financing for 14th Street Corridor project

ington, DC. In addition, MAC placed a limited recourse senior construction facility from a regional bank for the transac- tion, which closed on March 10, 2014. Madison Investments will re- habilitate the existing historic buildings and ground-up de- velop a new nine-story concrete high-rise tower on the existing parking lot. The Project will contain 56 residential units and approximately 13,000 s/f of retail. Construction is expected to begin in June 2014 with de- livery planned for early 2016. “The limited availability of mixed-use development sites

on 14th Street make this trans- action especially compelling," said SiaMadani , a principal of Madison Investments. “Madi- son is incredibly excited to break ground on 14th Street!” Ben Lazarus , senior di- rector with MAC said, “MAC worked with the senior lender to help them underwrite the substantial in-place land basis, which resulted in a construc- tion loan that required a lim- ited amount of cash equity and best-in-class terms.” Andrew McAllister, Bruce Levin , Ben Lazarus, and Car- en Garfield led the placement effort for MAC. 

A S H I N G T O N , DC — MAC Re- alty Advisors, LLC

HFF Philadelphia hires Christopher Munley PHILADELPHIA, PA – HFF announced that Chris- topher Munley has joined (“MAC”) , on behalf of Madi- son Investments , success- fully arranged a $27.4 million private investment and senior construction loan for the acqui- sition and development of 1921 14th St. NW. The development site is an existing parking lot, retail, and vacant apartment building located at the heart of the 14th St. Corridor half a block south of U Street and across the street from Louis on 14th in Northwest Wash- Munley joins HFF from Marcus & Millichap , where he specialized in the sale of single and multi-tenant retail real estate, closing more than $1 billion of transactions dur- ing his tenure there. He has been recognized as one of Real Estate Forum’s “Top 5 Brokers” in 2013, and while at M&Mwas a four-time Sales Recognition Achieve- ment Award winner and a three-time National Achieve- ment Award winner. “Chris has established him- self as a top retail professional in the Mid-Atlantic region, and we are pleased that he will be a member our growing Philadelphia investment sales team,” said Mark Thomson , senior managing director and co-head of the HFF Philadel- phia office. “We have built a success- ful track record of working together with Chris over the years,” said Zac Pierce , se- nior managing director and co-head of HFF’s Philadelphia office. “Many owners of multi- housing assets also own retail properties and Chris’ exten- sive transactional history and market knowledge have been extremely valuable to our clients.”  Chris Munley the firm as a managing director in its Philadel- phia office to focus on r e t a i l i n - v e s t m e n t sales trans- actions in the Mid-Atlantic region.

1921 14th St.

12A — April 11 - 24, 2014 — Mid Atlantic Real Estate Journal

www.marejournal.com

Southern New Jersey Chapter www.ai-snj.org Telephone 856-415-0281 • Fax 856-415-1952

Installation and Dinner Meeting: Informative Successes

Southern NJ Chapter Appraisal Institute 2014 Chapter Officers President Jacob Ramage, MAI VP Michael S. Sapio, MAI Treasurer Albert Crosby Secretary

n Tuesday, January 28th, the Southern New Jersey Chapter of the Appraisal Institute hosted its first dinner meeting of the year at the Adelphia Grand Ballroom in Deptford. The 2014 slate of officers and directors were installed, including Chapter President Jake Ramage, MAI , who is the chapter’s first president to serve consecutive terms. The keynote speaker was the 2014 Appraisal Institute National President Ken Wilson, MAI, SRA.

He passed on his insight on Appraisal Institute’s direction in 2014 through a “State of the Industry” presentation that was both interesting and informa- tive. Other special guests braved the winter night and pending snow and joined our members. This included National Board of Directors Member TomReynolds, SRPA , and Region VI Director Ryan M. Hlubb, SRA . On Tuesday, April 1st, the chapter held its annual Appraiser/Assessor joint event. Nearly 100 people were in attendance to see new and old friends and colleagues. The 2-hour seminar “The Art of the Adjustment Process,” presented by George R. Brown, III, SCGREA & George L. Librizzi, SC- GREA , started the event. The present- ers reviewed the classical development

Edward T. Molinari, SRA Director (Term through ’16) Michael Descano Director (Term through ’16) Samuel Levi, MAI Director (Term through ’15) Errett Vielehr Director (Term through ’15) Robert Kirwan, SRA Director (Term through ’15) Jackie Marmur Director (Term through ’15) Timothy W. Sheehan, MAI, SRI Director (Term through ’14) James Carr Director (Term through ’14) Joshua Garretson

As part of the tradition of the evening’s ceremony, President Wilson presented a gavel plaque to 2013 SNJAI President Jake Ramage, MAI.

& application of adjustments in the sales comparison approach. “Recent NJ Tax Court decisions suggest the lack of adequate support for adjustments will undermine the credibility of appraisals,” said Brown. “A strong message has been sent to the appraisal community by the courts that absent substantiation of adjustments your valuation will be booted.” Text- books were cited and the sequence of adjustments were analyzed, both for commercial and residential property. Qualitative and quantitative adjustments were considered. Substantiation of typical adjust- ments were explored including the application of paired sales analysis and other common applica- tions. Simple linear regression were evaluated as a tool to check over-all values, value ranges such as neighborhood values, and to develop adjustment fac- tors such as price per bedroom or unit. Utilizing the grid and selected sales as a framework for confirming adjustments was discussed. Other common sources readily available to appraisers and assessors were cited for support of typical adjustments. The concepts of customary and usual versus market derived adjustments were compared. After dinner, “A View from the Bench: Reviewing Tax Court Issues & Recent Cases” was pre- sented by Judge Patrick DeAlmeida . He discussed tax court issues & recent cases from across the state. As always, his insight and experience was a great benefit to all. The Appraisal Institute is a global association of real estate appraisers, with more than 23,000 valuation professionals in nearly 60 countries throughout the world. Its mission is to advance professionalism and ethics, global standards, methodologies and practices through the profes- sional development of property economics worldwide. Organized in 1932, the Appraisal Institute advocates equal opportunity and nondiscrimination in the appraisal profession and conducts its activities in accordance with applicable federal, state and local laws. Appraisal Institute profes- sionals benefit from an array of education and advocacy programs, and may hold the prestigious MAI, SRPA and SRA designations. Learn more at www.appraisalinstitute.org. The Southern NJ Chapter holds 4 dinner meetings a year: January, April, September and November. All except the January meeting include 2-3 continuing education credits. This is a wonderful way to meet your CE requirement and talk to new and old friends and colleagues. For more on the Southern NJ Chapter, email lisamayweiss@hotmail.com. Judge DeAlmeida gave a lot of useful information to those in attendance at the April event.

President Ex Officio Jerome McHale, MAI

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