R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news
ISSUE HIGHLIGHTS Volume 26 Issue 3 February 14 - 27 , 2014 Property Managment- IREM Conference & Expo Spotlight
For Camelot at Cinnaminson Harbour in Cinnaminson, NJ Meridian Capital Group arranges $40m in permanent financing C INNAMINSON, NJ – Mer idi an Capi ta l Group, LLC , a leading
Philadelphia, PA, Trenton and Cherry Hill, NJ. The commu- nity features state-of- the-art amenities including an outdoor pool, fitness center and business center. “When we began working on the financing for this property it was 55% occupied. Merid- ian leveraged its long-standing lender relationships andmarket knowledge to obtain 75% loan- to- value terms for our client based on a stabilized occupancy proforma,” said Munk. “This financing structure is extremely desirable for developers because they can forgo waiting for the property to lease up to 90% oc- cupancy for 90 days; it provides them with the ability to tap their equity quickly and invest in new projects,” he added. n
BALTIMORE, MD — Fin- marc Management, Inc. , a Bethesda, Maryland-based commercial real estate firm, has announced the sale of the Port Covington property in the southern section of Bal- timore City for $35 million to 2701 Port Covington Drive, LLC and their affiliates. Since 2002, the 58.71-acre site has supported a 142,000 s/f Wal-Mart, which continues to operate, and a 130,000 s/f former Sam’s Club, which closed in 2008. national commercial real estate finance and advisory firm, nego- tiated $40 million in permanent financing for Camelot at Cin- naminson Harbour, a luxury multifamily complex located in Cinnaminson. The five-year loan features a competitive fixed-rate of 3.64% and a 30-year amortization period. This transaction was negoti- ated byMeridian Capital Group vice president, Josh Munk . Camelot is a recently con- structed 405-unit waterfront multifamily complex. The property is part of Villages at Cinnaminson Harbour, conve- niently located just outside of
Section D
Gebroe-Hammer arranges $4.655m sale of multi-family package
Camelot at Cinnaminson Harbour
Finmarc Management sells 58-acre Port Covington retail development for $35 million
FC-B
Finmarc acquired the Port Covington property in March 2005, which is ideally posi- tioned off East Cromwell St. and the Hanover Rd. exit off I-95, with initial plans to de- velop approximately 150,000 s/f of additional retail space. “We realized the property was suitable for many dif- ferent development options,” said David B. Fink , prin- cipal – managing director for Finmarc Management. “Given its strategic position- ing on the waterfront, imme- diate proximity to the down- town core and large amount of available acreage, the site has long been considered ideal to support a mixed use of residential, retail and office development. It remains one the largest urban waterfront development sites available in the Mid-Atlantic region and could easily support a user in need of several million square feet of new develop- ment.” “With sale of this asset, over the last 18 months, along with our partners we have acquired or disposed of over $279,000,000 in assets and
Rittenhouse Realty Advisors sells housing portfolio for $23.8m
FC-C
Directory
DelMarVa........................................................ 7-10A Financial Digest............................................. 11-18A New Jersey.................................................Section B Central New Jersey.......................................... 7-11B Pennsylvania..............................................Section C Western PA................................................... 12-16C PA’s Engineer’s Spotlight. ................................ 5-11C
Port Covington, Baltimore, MD
60 acres in the early 1990s and subsequently constructed a state-of-the-art printing and distribution plant. The newspaper explored the pos- sibility of re-locating its entire operations from its current site on Calvert Street to Port Covington, although the plan never materialized. n
are actively seeking addi- tional real estate investment opportunities,” Fink added. The Port Covington retail development was part of a 130-acre assemblage formerly owned by CSX and used by Western Maryland Railway as a rail yard. The Baltimore Sun acquired approximately
Upcoming Spotlights February 28, 2014 Commercial Office Properties
www.marejournal.com
Inside Cover A — February 14 - 27 , 2014 — Mid Atlantic Real Estate Journal
www.marejournal.com
Commercial Real Estate Financing Multi-Family Lending Small Business Administration Loans Kearny Federal Savings and its Division, Central Jersey Bank, provide dynamic financing for New Jersey businesses of all sizes.With 41 offices in the state, we understand the market, opportunities and problems local business people face. Our experienced loan officers are right here to make fast de- cisions and provide “hands-on assistance” that regional banks can’t match. The Local Source For Commercial Lending
1-800-273-3406 kearnyfederalsavings.com/commercialfinancing
Mid Atlantic Real Estate Journal — February 14 - 27, 2014 — A
www.marejournal.com
MAREJ A dvertisers D irectory A — February 14 - 27, 2014 — Mid Atlantic Real Estate Journal ACE Mentor..................................................... 10C All-Rite Construction. ...................... IC-C & BC-B Altoona Blair...................................................... 2C Barry Isett.......................................................... 5C Bayshore Recycling. .............................6A, 6B, 2D BL Companies.................................................... 8C Bohler................................................................. 4C Bussell............................................................. IC-B Commercial Choice.......................................... 15C Cooper Horowitz.............................................. 18A Cushman & Wakefield....................................... 5B Deerwood.......................................................... 14A Diversified Financial....................................... 13A Diversified Rack............................................... 11B Door & Gate USA. ........................................... 13D Earth Engineering....................................6B & 9C Entech Digital Controls. ................................... 4D EPG &P............................................................ 11D G & C Electronics............................................ 14D Gebroe Hammer. ............................................. 14B Gerard Construction........................................ 10B GFCIB.............................................................. 16A GNDEP............................................................... 8A Grant Street..................................................... 13C GREP.................................................................. 2C Griffinland. ........................................................ 4C Harvey Hanna. .................................................. 9A Heller Industrial ............................................... 3B Hinerfeld............................................................ 1C HT Lyons............................................................ 5C Kaplin Stewart. ................................................. 2A Kearny Federal Savings................................. IC-A Keast & Hood................................................... 11C The Kislak Co. ................................................. 13B Landcore............................................................. 8C Landmark. ......................................................... 2C Lee & Associates................................................ 1B M. Miller & Sons................................................ 3A Marcus & Millichap........................................... 3A MBA.................................................................... 9B Mericle............................................................BC-C Meridian............................................................. 8B Michael Cervelli RE. .....................................BC-D MSB.................................................................... 6D NGKF............................................................... 14C NJ IFMA. ........................................................... 6A Northern Waterproofing.................................. 15D NorthMarq....................................................... 16C O’Donnell & Naccarato...................................... 7C Oppenheimer. .................................................... 1A P.O.A................................................................... 5A Penn-Northwest............................................... 12C Poskanzer Skott............................................... 12B Precis Engineering............................................ 6C Procida. .......................................................... FC-C Provident Bank..............................................BC-A PWC. .................................................................. 6A Rational Contracting......................................... 4B Real Property Capital...................................... 12A Rittenhouse........................................................ 3C Robert Blue........................................................ 9C Sebco......................................................... 2B & 1D Sheldon Gross ......................................... 3B & 3D Singer Financial.............................................. 15A Specialty Building Systems. ............................. 5D TUG Branding................................................... 6A WCRE................................................................. 4B Whitesell............................................................ 2B Wilkin & Guttenplan P.C...............................IC-D
www.marejournal.com
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 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 3 Subscription rates: $99 - one year, $198 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY 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: A headshot In the Jan. 31st issue of the Mid Atlantic RE Journal ran incorrectly. Michael Smith should have ran in the Greater Newark editorial piece. The Mid Atlantic RE Journal apologizes for the mistake. We take full responsibility . The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
Mid Atlantic Real Estate Journal
John Morris
Cushman & Wakefield: U.S. industrial sector performance strongest since 2005
N
EWYORK,NY —Inits strongest performance since 2005, the U.S.
industrial real estate market saw 328.5 million s/f in leasing activity and 117.2 million s/f of positive absorption in 2013, ac- cording to Cushman &Wake- field . The commercial real estate service firm this week released its year-end national market research data. “Growing demand for goods fromconsumers and businesses is propelling the industrial sec- tor into its most positive state since before the Great Reces- sion,” noted John Morris , leader of Industrial Services for the Americas . Industrial leasing activity was up 6.2% year over year. Greater Los Angeles continued to lead the nation, with 35.8 million s/f in activity, followed by Chicago with 30.9 million s/f. Seventeen of the 37markets tracked by Cushman & Wake- field reported increased activity in 2013. Northern New Jersey posted an impressive 40.0%
increase, while the PAI-81/I-78 Corridor recorded a 30.0%year- over-year increase. Additionally, net demand is up 23% from last year, with only one out of 37 markets tracked recording negative absorption. Dallas/Fort Worth led the na- tion with 15.1 million s/f of oc- cupancy gains in 2013, followed by the Inland Empire with 12.6 million s/f. As a result, the U.S. vacancy rate is tightening rapidly. It fell to 7.5% in the fourth quarter. The resulting upward pressure on rents brought the average di- rect asking rate to $5.92 per s/f in the fourth quarter of 2013, a
4.2% year-over-year increase. Ultimately, these positive fun- damentals have sparked a new wave of development. As the year came to a close, 79.4 mil- lion s/f of new industrial space was under construction, up 87% compared to year-end 2012. Morris anticipates continued progress in 2014. “Less fiscal drag and reduced uncertainty should lead to stronger eco- nomic growth this year,” he said. “Considering that demand for industrial space has been consistently strong through the economic resurgence so far, it should remain so as the recov- ery becomes more robust.” n
Committed to Your Goals
The guy on the left spent lots of money to hire a bunch of experts whose ideas never took ight. The guys on the right hardly took notice – they were too busy ying their idea. If they were law rms, which one of these guys would you rather work with?
Total commitment works wonders. Talk to us first.
Contact: DIRK M. SIMPSON dsimpson@kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-941-2544 • www.kaplaw.com Visit our Construction Blog: www.pennsylvaniaconstructionlawyer.com Other Offices: • Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120 Kaplin Stewart A t t o r ne y s a t L aw
To advertise, call 1-800-584-1062
Mid Atlantic Real Estate Journal — February 14 - 27, 2014 — 3A
www.marejournal.com
M id A tlAntic R eAl e stAte J ouRnAl E 183,800 s/f Easton, PA city hall & transportation center Spillman Farmer Architects break ground on $31m proj. ASTON,PA – Spillman Farmer Architects (SFA) and the City of
The Real Estate Investment Leader. Contact us today to access the largest inventory in the country.
Easton broke ground for the new, three-story, 138,800 s/f TransportationCenter Garage. The structure is the first phase of a two-phase, Easton City Hall and Transportation Cen- ter public development project located in downtown Easton, an Eastern Pennsylvania town of 27,000. The garage will sup- port the second phase of the project, which will include the City of Easton’s new City Hall building, retail facilities, and a public transportation center. Spillman Farmer designed the $31-million, 183,800 s/f mixed- use complex. “This garage is the latest in the series of urban develop- ment projects that are making our city safer, more beautiful, and more successful. We are looking forward to the eco- nomic opportunities a new City Hall complex will bring to Easton,” Easton Mayor Salvatore Panto, Jr. said. “We are also excited to have Spillman Farmer on board.” Spillman Farmer design principal Joseph N. Biondo, AIA explained that the suc- cess of the project’s design is a result of integrated plan- ning efforts by the design and consultant team, the City of Easton, the Easton Planning Department, the Redevelop- ment Authority of Easton, the Historic District Commission of Easton, The Lehigh and Northampton Transportation Authority (LANta), and Trans- Bridge Lines. “The Lehigh Val- ley has unique opportunities for historical value and new growth to exist side by side, providing the kind of infra- structure, built environment, and social context that will continue to draw people to our area.” Biondo said. “The project will serve as a regional gateway at the conflu- ence of Delaware River and the Lehigh Canal. When designing the project, Spillman Farmer focused on restoring the site to its modern-day equivalent,” Biondo explained. “The city’s history of transportation and government has come full circle, and the site’s design will represent that milestone. The materials and design will reflect the creative, innova- tive, intellectual, cultural, and technological history that defines the region.” n
Bryn Merrey Washington, D.C. (202) 536-3700 J.D. Parker Manhattan (212) 430-5100
Spencer Yablon Philadelphia (215) 531-7000 Ryan Nee New Jersey (201) 582-1000
www.marcusmillichap.com
MMSON_MidlanticRealEstate_B&W_FINAL_Layout 1 4/5/13 1:08 PM Page 1 Easton City Hall & Transportation Center
Don’t get burneD. get WHAt’S CoMIng to You. ®
M. MILLER & SON Over 50 Years of Committed Service to the Policyholder
FIRE | WATER | WINDSTORM | COLLAPSE COMMERCIAL, INDUSTRIAL, RESIDENTIAL
LICENSED PUBLIC ADJUSTERS | SINCE 1960 1211 Liberty Avenue Hillside, NJ 07205 Toll Free: 877.664.5537 www.mmillerson.com
PROUD MEMBERS OF
A — February 14 - 27, 2014 — Mid Atlantic Real Estate Journal
www.marejournal.com
Mid Atlantic R eal E state J ournal N e w J e r s e y • P e n n s y lva n i a • D e l awa r e • M a ry l a n d • W a s h i n g t o n D . C . • V i r g i n i a • Auctioneers Directory
212-213-9770 www.sheldongood.com/jerseycity.php
www.fortnaauctioneers.com 1-855-831-4242 Offices in: PA, DE, NJ, MD & Ft. Lauderdale, FL
©2008 Sheldon Good & Co. Auctions NE, LLC
AUCTIONS NE, LLC
5th_floor • CLIENTS • S-CLIENT • Sheldon Good • 18000 Jobs 18448 Sheldon Good_New York • 18448 SG-3x2_MAREJ Mid Atlantic Real Estate Journal / business card 3 x 2 (28 lines) • Proof 1 • 5/1/08 • Debbie Richard G. Warner, President NJ & PA Licensed Real Estate Broker Warner Real Estate & Auction Co., Inc. 109 East Grant Street, Suite B Woodstown, NJ 08098 Ph: (856) 769-4111 ext 710 Website: www.WarnerRealtors.com
P lace your B usiness C ard in our A uction D irectory T oday ! C ompanies S pecializing in C ommercial /I ndustrial R eal E state C an P romote T heir C ompany and its S ervices in our T wice monthly D irectory E mail lchristman @ marejournal . com or F ill out C oupon B elow
Name: Company: Address: CIty: State:
Zip Code:
Phone #:
Fax #:
Email:
Web Address:
Mid Atlantic Real Estate Journal — February 14 - 27, 2014 — 5A
www.marejournal.com
M id A tlAntic R eAl e stAte J ouRnAl
EXPO 2014 April 9 th Wilshire Grand Hotel West Orange, NJ 5:00pm
Multi-Family Housing Professionals Mark Your Calendars! EXPO offers a unique business opportunity for companies to showcase their products and services to the exclusive membership of the Property Owners Association. With over 68 exhibitors showcasing the newest and latest offerings in the multi-family industry, this is a must attend event. Buffet dinner served throughout the evening. s "UFFET $INNER WITH +OSHER 3TATION s /VER %XHIBITORS s ,ATEST 4ECHNOLOGY AND )NFORMATION !VAILABLE s Prizes 4HROUGHOUT THE %VENING
Non-exhibiting associates will not be permitted to market their products or services unless they have reserved a booth. Otherwise they will be asked to leave.
Visit www.poanj.org for more information
A — February 14 - 27, 2014 — Mid Atlantic Real Estate Journal
www.marejournal.com M id A tlantic R eal E state J ournal
The Walter R. Cohn, Esq. Memorial EXPO POA nears sellout for annual trade show
W
ESTORANGE, NJ — The Property Owners Associa-
tion (POA) is now close to sold out for its annual trade show, The Walter R. Cohn, Esq. Memorial EXPO. The event will take place on Wednesday, April 9, 2014, at the Wilshire Grand Hotel, 350 Pleasant Valley Way, West Orange. “EXPO is the premier event of the Association’s calendar,” noted Executive Director, Kelly Voicheck . ”The show has consistently sold out in the past and we expect this trend to continue.” EXPO offers a unique busi- ness opportunity for vendors to showcase their products and services to the members of the Property Owners Asso- ciation and their guests. POA presents this annual exposi- tion of the newest and latest techniques available to the multi-family rental property industry. The cost to exhibit for advertisers is $450.00 for tabletop space and $600.00 for modular display. For non- advertisers, the charges are $700.00 and $800.00 respec- tively. Set-up time for exhibitors is 3:00 p.m. Exhibit doors will
open at 5:00 p.m., and the show will close at 9:00 p.m. A buffet dinner will be served in the exhibit hall. Acash bar will be available to all attendees. Attendance at EXPO is free for POA members and guests. Non-members can attend for a fee of $25.00. Property Owners Associa- tion, celebrating its 65th an- niversary this year, exists to bring together owners and managers of residential real estate, interested persons, and industry personnel for educational and information sharing purposes. The orga-
nization is comprised of own- ers and managers of multi- family rental properties and other individuals employed by a related business. Through an organized program of infor- mation dissemination, project development and educational seminars, the Association is keeping its members informed of all phases of the housing industry. For further information, please contact the POAoffice at 1072 Madison Ave., Lakewood, NJ 08701 or by calling KellyM. Voicheck at (732) 780-1966 or e-mail at kelly@poanj.org. n
February 19th Meeting: Topic: Emerging Trends in Adaptable and High Performance Interiors When: Wednesday, February 19, 2014 4:00 PM - 6:00 PM Where: Ogilvy CommonHealth Worldwide 400 Interpace Parkway Parsippany, NJ 07054 For more information, go to www.njifma.com
AttentionMulti-fAMily ProPertyowners AndMAnAGers! Apartment Marketing Kits Available Fully Customized! Including:
• Brochures • Presentation Folders • Property Colors • Matching Logo • Floor Plans • Maintenance Cards • Business Cards •Websites • Property SiteMaps • MuchMore!
Contact:Yaacov Weiss P:732-552-5087
Yaacov@apartmentmarketingkits.com Web: ApartmentMarketingKits.com
Mid Atlantic Real Estate Journal — February 14 - 27, 2014 — A
www.marejournal.com
Mid Atlantic Real Estate Journal — February 14 - 27, 2014 — 7A
www.marejournal.com
Berlin and Rosa of Cushman & Wakefield represent seller in $5.2m sale NAI KLNB brokers sales totaling $16.62 million & 149,021 s/f in Alexandria and Fairfax County, NJ
A
LEXANDRIA, VA — NAI KLNB has brokered the sale of
building is positioned approxi- mately two miles fromNational Airport and Old Town Alexan- dria, one mile from the George Washington Parkway and is within walking distance to the Braddock Road metro station. FAIRFAX COUNTY, VA — NAI KLNB, in conjunction with C-III Realty Services, LLC , has brokered the sale of Wynwood I and II, a two- building portfolio containing approximately 88,000 s/f of of- fice space within the Chantilly sub-market of Fairfax County in northern Virginia for $5.62 million, or approximately $64 per s/f. Kevin Goeller , Chris Kubler and Josh Simon of NAI KLNB represented the seller, US Bank National Association, Trustee for Series 2007-C4 and Larry Fitzgerald of New- mark Knight Grubb Frank represented the buyer, Chalm- ers Property Company , in this transaction. The property consists of Wyn- wood I, located at 5160 Park- stone Drive and is comprised of nearly 47,000 s/f of space, and Wynwood II, which con- tains approximately 41,000 s/f of space and is located at 5180 Parkstone Dr. n
515 N. Washington St., a five- story 25,204 s/f historic building located in Old TownAlexandria to CAS Riegler Companies, LLC for $5.2 million. Josh Si- mon of NAI KLNB represented the buyer and Eric Berlin and Jorge Rosa of Cushman Wakefield represented the seller, the International As- sociation of Chiefs of Police in this transaction. The new owner plans to convert the building into resi- dential condominiums. Con- struction on the conversion is expected to commence in the second or third quarter of 2014. “Our research shows a contin- ued demand for amenity-based, high-end residential product that blends historic features with new, contemporary design elements. Realizing the under- lying market fundamentals were in place enabled us to be aggressive in our pursuit of this project” explained Josh Simon of NAI KLNB. In other news... NAI KLNB has brokered the sale of 410-420 Calvert Ave., a BALTIMORE, MD — The year 2013 exceeded expecta- tions for St. John Properties, Inc. which leased more than 1.2 million s/f of R&D/flex, office, retail and warehouse space to more than 240 differ- ent companies throughout its portfolio encompassing seven states. Founded in 1971, the Baltimore-based company now owns and has developed more than 17 million s/f of space in MD, CO, LA, NV, PA, VA and WI. For the year just concluded, St. John Properties signed new leases and renewals totaling more than 2.6 million s/f of space, representing 465 sepa- rate transactions. In addition, the company initiated construc-
420 Calvert Ave.
515 N. Washington St.
35,817s/f industrial/warehouse building located in Alexandria, Virginia to 410-420 Calvert LLC for $2.8 million. Josh Si- mon and Marc Tasker of NAI KLNB represented the buyer, and Michael Porterfield and Steve Beggs of Tartan Prop- erties represented the seller, The Protestant Episcopal Theo- logical Seminary in Virginia in this transaction. The industrial/warehouse
Wynwood 2013 recap: St. John Properties leases more than 1.2m s/f of new space for more than 240 separate tenants
in the northeastern section of Baltimore County. Other corporate highlights included: • sale of 34 acres of land in Ashburn area of Loudoun County to Corporate Office Properties Trust for $14 mil- lion • sale of 11 acres of land at former North Point Drive-In in Dundalk section of Balti- more County to K. Hovnanian Homes for $2 million • initiation of construction on first building in the company’s new Route 100 Tech Park near BWI Airport in Anne Arundel County • achievement of company’s 20th LEED building certifica- tion from United States Green
Building Council for satisfy- ing Leadership in Energy and Environmental Design require- ments • signing R/C Theatres to 45,000 square foot lease at Lexington Exchange in St. Mary’s County for a 12-screen movie theatre Larry Maykrantz , presi- dent of St. John Properties said, “The core fundamentals of the company that include placing our clients’ needs first, offering creative solutions to specific real estate problems and pro-actively anticipat- ing and responding to tenant requirements, has generated confidence and long-standing relationships among our more than 2000 tenants.” n
Greenleigh Rendering
tion on more than 350,000 s/f of commercial office space. Last spring, together with its joint venture partner Somerset Construction , St. John Prop- erties revealed conceptual de-
sign plans for the next phase of Baltimore Crossroads: Green- leigh, which will incorporate 2000 single-family, townhome and multi-family product in the mixed-use community located
8A — February 14 - 27, 2014 — Mid Atlantic Real Estate Journal
www.marejournal.com
d el M AR v A
Don’t Miss Our Commercial Office Properties Spotlight!
reater Newark, DE is going through a revolu- tionary transformation. By Michael Smith, Greater Newark DE Greater Newark: it all adds up G
regarding, place, driving innova- tion. GreaterNewark, DE is well situated to be the place in the Mid-Atlantic mega region driv- ing innovation. Global leaders such as Air Liquide, AstraZeneca, Chris- tiana Care, DOW Chemical, DuPont, W.L. Gore, FMC, GE Aviation and Siemens Health- care Diagnostics have chosen to locate in the Greater Newark Area because of its strategic lo- cation in the Mid-Atlantic near Interstate 95, its highly educated workforce, its proximity to a top research university and its re- sponsive local government—as well as a quality of life that’s af- fordable, fun and family-friendly. These innovative companies see
Greater Newark as the place driving innovation. Along with these global lead- ers, Greater Newark’s new an- chor tenant is the University of Delaware. After Chrysler shut down their car manufacturing facility, the university purchased the 272 acre brownfield site as the new innovation opportu- nity zone for the region. To date, Bloom Energy from Sunnyville, CA has moved their East Coast operations to STAR Campus at UD. They manufacturer Bloom Energy Boxes. These boxes put natural gas through a catalytic process that outputs electricity. Bloom is trying to revolutionize energy in the United States. Along with Bloom Energy, the CollegeofHealthSciencesopened their new building on January 2nd of this year. They will have three wings of the building to promote cross-collaboration between academia, government and business. Recently, the Data Centers, LLC also signed a land- lease deal with the University of Delaware for 900,000 s/f of space. They will co-generate their own power for 100%reliability.As you can see, the new STAR Campus is bringing businesses that can work in collaborative ways with the University of Delaware and make the University the eco- nomic development driver for years to come. To go with its new innovation hub, Greater Newark, DE has a vibrant downtown. New devel- opment projects continue to pop up on Main Street that cater to a mixed use, urban crowd. The Philadelphia 76ers moved their D-League basketball teamto the University of Delaware’s Bob Carpenter Center.You canwatch the 76ers top prospects play in the Newark one week for the 7’s and then make the short drive to Philadelphia to see them star in the NBA. Greater Newark, DE isn’t just for the university students. With new, executive style restaurants like Taverna, 16 Mile Taphouse and Iron Hill Brewery, people of all ages are migrating downtown. Baby boomers and millennials alike are wanting to live, work and play in Greater Newark, DE for its location, opportunity, quality of life and cost of living/doing business. In Greater Newark, DE, the creative economy is set to take off and be the new leader in the Mid-Atlantic mega region for innovation. Place matters and Greater Newark, DE is the place that is driving innovation for the future. In Greater Newark, DE, it all adds up. n
The Greater Newark Eco- n om i c De - v e l o pm e n t Partnership h o s t e d a n event around a t h o u g h t p r o v o k i n g economic de-
Michael Smith
To participate, please call Linda Christman at 781-871-5298 x 203 or Email Lchristman@marejournal.com
velopment trend on Thursday, January 23rd at the Embassy Suites in Newark, DE. GNEDP brought in world renowned thought leader Steven Pedigo from Richard Florida’s Creative Class Group. The heart of the presentation and discussionwas
9A — February 14 - 27, 2014 — Mid Atlantic Real Estate Journal
www.marejournal.com
M id A tlAntic R eAl e stAte J ouRnAl
www.HyattPlaceDeweyBeach.com 888-216-2804
The perfect place for your special event. Located on the bay and one block from the ocean.
Convenient hotel accommodations at the NEW Hyatt Place Dewey Beach Wedding receptions & catering at the Baycenter or Cove featuring: r Stunning panoramic waterfront views r Professional event planning r Receptions for up to 500 guests r Over 13,000 sq. ft. of event space
Now selling a limited collection of 2 and 3 bedroom condominiums overlooking the Atlantic Ocean and the Rehoboth Bay in Dewey Beach, Delaware.
www.TheResidencesDE.com | 302-212-0002
Call today to learn about custom luxury living in Dewey Beach.
Lighthouse Cove Resort | 1301 Coastal Highway, Dewey Beach, DE 19971 www.LighthouseCoveDeweyBeach.com
10A — February 14 - 27, 2014 — Mid Atlantic Real Estate Journal
www.marejournal.com
Commercial-Industrial Realty Council Register for Upcoming Events & Accredited Real Estate Continuing Ed. www.circdelaware.org
N ext membership event is on February 12, 2014 - our Annual Eco- nomic Forecast Meeting & Monthly Membership Luncheon. Back by popu- lar demand:
M arch 12, 2014 - Monthly Member- ship Luncheon and Con- tinuing Education Classes (get Modules 6 and 7) at the Clarion Belle, New Castle, DE 19720.
S peaker: David B. Hanson, CPA, CFA, CTFA - Chief Executive Officer, Fulton Financial Advisors, (Fulton Bank, N.A.), Clarion Belle, New Castle, DE.
C ost for these events is $35 for members and $45 for non-members. R egister with CIRC online at: www.circdelaware.org
2013 Board of Directors WÙÝ®Äã :Ê«Ä®ÙîĦ«Ã ƵƐŚŵĂŶΘtĂŬĞĮĞůĚŽĨĞů͘ s®WÙÝ®Äã ÙãZÊÊã ,ĂƌǀĞLJ,ĂŶŶĂΘƐƐŽĐŝĂƚĞƐ dÙÝçÙÙ <ã«Ù®Ä>͘^®½®ãÊ͕W 'ƵŶŶŝƉΘŽŵƉĂŶLJ͕>>W ^ÙãÙù ùÙ:͘^ÄùÙ͕ ÝØ͘ ĂLJĂƌĚΘƐƐŽĐŝĂƚĞƐ ®ÙãÊÙÝͬÊÃîãã çã®ÊÄ«®Ù͗ Ä>Ý«Ù WĂƩĞƌƐŽŶtŽŽĚƐƐƐŽĐŝĂƚĞƐ >¦®Ý½ã®ò«®Ù͗ :͘'Ù¦ÊÙù ½½®Ý WĂƩĞƌƐŽŶͲtŽŽĚƐƐƐŽĐŝĂƚĞƐ WÙʦÙÃÊͲ«®Ù͗ ÊĽZÊ®ãþÙ dŚĞŽŵŵŽŶǁĞĂůƚŚ'ƌŽƵƉ DÃÙÝ«®Ö«®Ù͗ :ÃÝDÄÄ DŝĚŽĂƐƚŽŵŵƵŶŝƚLJĂŶŬ ĹîÄ:͘Ù¦Ù͕ ÝØ͘ ĞƌŐĞƌ,ĂƌƌŝƐ͕>> :®ÃK͛,Ù͕:Ù͘ E/ ŵŽƌLJ,ŝůůͲZĞƚĂŝůŝǀ͘ Z«½:çÝã® dWKŚƌŝƐƟĂŶĂ DÙò®Ä^«Ý ĞůůĞǀƵĞZĞĂůƚLJŽ͘ ƌŝŐŚƚ&ŝĞůĚƐ͕/ŶĐ͘ :ÙÃù½ÝÊÄ ͘^͘<ŝĚŶĞƌΘƐƐŽĐŝĂƚĞƐ ÊÄÊîò͘>®®ÝÊÄÝ EóÝã½ÊçÄãù«ÃÙ Ê«ó®» E Đ͘Ğǀ͘ŽƵŶĐŝů ^ããÊ¥½óÙ ò®Ù«Ù KEŽ͘ZĞƉ͘ ®ãùÊ¥t®½Ã®Ä¦ãÊÄ :¥¥&½ùÄÄ KĸĐĞŽĨ ĐŽŶŽŵŝĐĞǀ͘ ŽŶƚĂĐƚhƐ ǁǁǁ͘ĐŝƌĐĚĞůĂǁĂƌĞ͘ŽƌŐ ;ϯϬϮͿϲϯϯͲϭϳϬϱ ũĂŶĞƚΛĐŝƌĐĚĞůĂǁĂƌĞ͘ŽƌŐ øͲK¥¥®®ÊDÃÙÝ çÝ®ÄÝÝDĦ٠:Äã^͘W®ÖÖÙã /Zͬ>ĂŶĚŵĂƌŬ ^ĐŝĞŶĐĞΘ ŶŐŝŶĞĞƌŝŶŐ >¦®Ý½ã®ò>Êù®Ýã ͘^Êãã<®ÄÙ
Meet our Members and Speakers
Dave Heaney and Bert Root
David Smith, of Greater Newark Partnership, and Frankie Vassallo
Pat Forester, Erin Mannis, Kim Connell, and Janet Killian
Jill Riley and Joanne Clark
Joe Coco and Susan Miller
Vicki Duchene and Steve Dobraniecki
John Pastor, with Delaware’s /ŶƚĞƌŶĂƟŽŶĂůdƌĂĚĞ͕>ĂƌƌLJ ŝ^ĂďĂƟŶŽĂŶĚtŝůůƐ ůůŝŵĂŶ
Pete Davisson and Leigh Johnstone
CIRC members heard from Michael Smith of the Greater Newark Economic Develop- ment Partnership at the January 8 luncheon. He discussed the partnership created by the City
of Newark and the New Castle County Chamber of Commerce to bring new opportunities to the Greater Newark Area. Check out their website at www.great- ernewarkde.com
P hotos courtesty of Pat Forester who has taken the position of Marketing Coordina- tor for Sonitrol Security of Delaware Valley. More photos can be viewed at: www.sonitrolde.com/blog/2014/01/ commercial-industrial-realty-council- circde-hosts-january-luncheon/
CIRC-sponsored Continuing Education - Register Now! Class Instruction provided by: Frederick Academy of Real Estate March 12, 2014 (Wed.) Real Estate Hot Buttons (DE MOD. 7) Time: 8:30 AM
Credits: DE 3.0 Core Mod. 2, PA 3.5 Elec., MD 3.0 Elec., NJ 3.0 Elec. Charitable Giving in Real Estate (DE MOD. 6) Time: 1:30 PM Credits: DE 3.0 Core Mod. 6, PA 3.5 Elec., MD 3.0 Elec. CLASS INFORMATION Location:Clarion Belle Hotel, 1612 N. DuPont Hwy., New Castle, DE 19720
CIRC Class Cost: $35 Member/$45 Non-member DUE PRIOR TO CLASS DATE REGISTER ONLINE: www.circdelaware.org/education/schedule.cfm
11A — February 14 - 27, 2014 — Mid Atlantic Real Estate Journal
www.marejournal.com
Cassidy Turley’s John Campanella and Paul Spellman represent owner in transaction Cassidy Turley arranges $100m in financing for The Meridian Group F inancial D igest
Mid Atlantic Real Estate Journal — February 14 - 27, 2014 — 11A
www.marejournal.com
A
RLINGTON, VA — Cassidy Turley , a leading commercial
president Paul Spellman of Cassidy Turley arranged the financing on behalf of The Meridian Group . As part of the 4.5 million- s/f Potomac Yard mixed-use development in Arlington, National Gateway I and II are situated in the Crys- tal City submarket, within minutes of Ronald Reagan National Airport, two Me- trorail lines, the Pentagon and downtown Washington, DC. Both buildings achieved LEED-EB Gold Certification in 2012. n
real estate services provider in the US, announced that it has arranged financing total- ing $100 million for National Gateway I and II, 3500 & 3550 South Clark St., in Ar- lington. National Gateway I & II is a two-building office complex with a retail com- ponent, including a 45,000 s/f LA Fitness health club, totaling 437,379 s/f. Ex- ecutive managing director John Campanella and Vice
3500 & 3550 S. Clark St., Arlington, VA
Jones Lang LaSalle secures nearly $70M for purchase of 5 Giralda Farms
Kennedy Funding completes $28.86m note sale secured by 2,654 acres of land
MADISON, NJ —On behalf of a partnership between Lin- coln Equities Group, LLC , and Lakestar Properties , Jones Lang LaSalle’s (JLL) Capital Markets experts an- nounced the firm has secured $69.8 million in acquisition and future “good news” fi- nancing for the purchase of 5 Giralda Farms, a 463,435 s/f trophy, class A+ office build- ing located in Madison, within the Giralda Farms Corporate Campus. NorthStar Realty Finance provided the five- year, non-recourse loan. Executive vice president Dustin Stolly and vice presi- dent Aaron Niedermayer led the JLL team on the transac- tion. “This property is considered the premier corporate facility in the state of New Jersey, providing the epitome combi- nation of quality and location,” said Stolly. “The best-in-class sponsorship, along with the expectation of a single, credit tenant to sign a long-term lease at the property, made this opportunity compelling to banks and money managers, and the process was extremely competitive.” 5 Giralda Farms offers an unparalleled and state-of-the- art amenity package including a 345-seat cafeteria, conference
ENGLEWOOD CLIFFS, NJ — Kennedy Funding has closed a $28.86 million
“Lending for residential has become an important part of what we do,” said Wolfer. “It is arguably the strongest real estate sec- tor right now, and when it’s paired with recreational and resort uses, or has them in close proximity, that is all the more attractive as an op- portunity. In addition to the financing and eventual note sale for the Cedar Mountain, Utah property, our firm has recently provided financing for similar projects in such diverse—and international— locations as Johnsonville, SC, Tampa, FL and the Do- minican Republic. Kennedy Funding, Amer- ica’s leading direct private lender, specializes in bridge loans for commercial prop- erty and land acquisition, development, workouts, bankruptcies, and foreclo- sures. The company has closed more than $2.5 billion in loans to date. The firm’s creative financing expertise enables the closing of loans of up to a 70% loan-to-value ratio, from $1 million to more than $50 million, in as little as five days. Kennedy Fund- ing continues to actively seek new funding opportunities throughout the world. n
n o t e s a l e for Braffits Creek Es- tates, LLC , announced KevinWolf- er , president and CEO of the d i r e c t private lend-
Kevin Wolfer
er. Kennedy Funding had previously provided a loan in that amount to the bor- rower, secured by 2,654 acres of land at Cedar Mountain, Iron County, Utah. Located just 10 miles from the noted Brian Head Ski Resort in Cedar City, Utah, the site’s initial phase was approved for residential de- velopment, including 145 five-acre “off the grid” lots, of which most have been sold and improved with homes. Phase two was approved for 239 five-acre lots, followed by a 1,028-acre phase three zoned for 20-acre lots. “When the borrower ini- tially approached us, they needed a loan to move the project forward,” said Wolfer. “We are pleased to have been able to complete the note sale.
5 Giralda Farms
facilities and a 15,000 s/f fitness center with a basketball court and locker rooms. In addition, the property features a sepa- rate 13,000 s/f day-care facility and a 9,200 s/f carriage house, ideal for corporate functions and executive dining. It is lo- cated within the Route 24 office submarket, an established cor- porate location in New Jersey that boasts a dominant pres- ence of Fortune 500 companies includingAT&T, Bank of Amer- ica, Pfizer, Prudential, Morgan Stanley and Quest Diagnostics.
The Route 24 corridor has his- torically commanded strong asking rents due to the appeal of the location and quality of the Class A product. Jones Lang LaSalle Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global inves- tor knowledge delivers the best- in-class solutions for clients — whether a sale, financing, repositioning, advisory or re- capitalization execution. n
12A — February 14 - 27, 2014 — Mid Atlantic Real Estate Journal
www.marejournal.com
F inAnciAl d igest By Brenner Green, Real Property Capital, Inc. The current commercial mortgage market
I write this article from the 2014 MBA-CREF convention in Orlando,
year. It’s all good news. The conference attendance is up, to the highest level since 2007 as more and more lenders con- tinue to appear in the market. The big story is that there are 37 companies actively look- ing to originate CMBS loans. The convention floor is about four times what it was in 2010 at the bottom of the market, and lenders are throwing lots and lots of parties. People are smiling and it is an upbeat atmosphere. It wasn’t all that long ago that I can recall there being only one or two parties at the entire conference, and they
weren’t even called parties but rather “networking events” for fear of backlash from financial regulators. This year there are dozens. Those grim days fortunately now seem like “a long long time ago in a galaxy far far away…” but also fortu- nately we are not back to the orgy-like atmosphere of 2007 either. Last I checked, Lehman Brothers isn’t hosting an Eagles reunion concert with Joe Walsh and Glen Frey gratis for 2,000 bankers (circa 2007) and no one is raffling a dodge Viper (circa 2001). There is still an air of sensibility among the lenders,
at least for the time being. That being said, given all of the new lenders (at last count there are in excess of 30 CMBS shops looking to origi- nate loans) and various types of lending platforms that continue to appear in the market, it does beg the question of whether there is really a need for all of this capital in the current envi- ronment and how they all are possibly going to make enough loans to make money and stay in business. With all of this competition to put out money, the next chapter of the story as we all know is not so pretty
and involves lenders starting to make loans that leave one wondering first “why would they do that?” and second “how will they ever make money on that one?” But I reiterate; we are not quite there yet. What this means for you as a borrower is that now is prob- ably the optimal time in the cycle. Terms are favorable, deals are seemingly sustainable in that lenders are not eager to overleverage properties, and there are a great many options to choose from in terms of dif- ferent types of capital sources. The outlook for 2014 continues to be bright. Rates should re- main low and stable as the US continues to prove itself the world’s reserve currency now as much as ever and mortgage spreads continue to tighten as competition increases. Look for transaction volume to post robust increases, especially in CMBS volume, again this year. While I cannot tell you what things might look like a year from now, 2014 will be nothing but positive for commercial real estate borrowers and lenders alike. So while the party is on, we will be there. R. Brenner Green is a 15 year veteran in commer- cial real estate finance and president of Real Property Capital, Inc., a full service commercial mortgage bank- ing firm based in the Phila- delphia suburbs. n Navesink River Capital closes $300,000 loan SAYREV I LLE , NJ — Navesink River Capital, LLC has completed a $300,000 loan to TRM Holdings, LLC, an en- tity owned by Mark Zientek, and Peop l e Pl easer s o f NJ, Inc. The 12-month loan was secured by a 5,400 s/f wa r ehous e , c u r r e n t l y owned byPeople Pleasers, at 1819 Route 35 in Sayreville, NJ. “The Borrower needed a one- year term loan to refinance the premises with a conventional lender,” said JonathanHornik , founder and CEO of Navesink River Capital, a Freehold, NJ- based direct private lender. “We are pleased to have been able to meet the borrower’s require- ments with this transaction.” n Jonathan Hornik
FL. For those of you not fa- miliar with thi s event , the conven- t i on i s the annual gath- ering of com- mercial real estate finance
Brenner Green
professionals, brokers, equity sources and lenders alike, and is typically a good barometer of what to expect in the financ- ing market for the upcoming
Mid Atlantic Real Estate Journal — February 14 - 27, 2014 — 13A
www.marejournal.com
F inAnciAl d igest Sale reflects mortgage firms’ relationships and uptick for Prince George’s County Eastern Union facilitates $11.223m Maryland multifamily acquisition
P
RINCE GEORGE’S COUNTY, MD — Commercial mortgage
“We’re not in the business of arranging sales, but we are in the business of building trust
half a mile from the Suitland Metro Station. According to a report avail- able on the county website, va- cancy rates in Prince George’s County are just 3.3% and, de- spite a hard hit from the 2010 foreclosure crisis, the county is witnessing a surge in the num- ber of housing units sold. The purchaser plans to invest approximately $5 million into renovation and improvements, according to Romirowsky. “These improvements, cou- pled with the location and reinforced by other amenities make it highly sought-after by tenants.” n
f i rm East - ern Union Funding an- nounced the $11,223,000 sale of Silver Hill Apart- ments, a 216- unit apart- ment c om-
and ma i n - taining re- lationships,” Tropp said. “ T h e d e a l came to us through one client and we presented it to another.
Marc Tropp
Shai Romirowsky
When we can leverage our lending network like this, it’s a nice illustration of how sturdy it is.” Silver Hill Apartments sits on 10.5 acres of land less than
With $234,903,000 in total loans originated, Eastern Union Funding finished the month of January with roughly four times the total loanamount closed over the same month last year. The company closed just shy of $2 billion in 2013, according toReal EstateWeekly. Thenum- bers put up inJanuaryaloneput Eastern on a trajectory closer to $3 billion for 2014. The month was punctuated by a $20 million deal by new rising star broker Jake Han- delsman . Eastern Union president Ira Zlotowitz attributes theaggres- sive 2014 kick-off to Eastern’s stronger banking relationships, an upgraded underwriting de- partment, investments ineduca- tion and technology. Educating staff, no matter how experienced they are, is central to Eastern’s never-end- ing quest for perfection. From the technology end, Eastern invested heavily this year in a wide area of upgrades and new features on Loan Tracker, Eastern’s internal customized CRM software and app. “Everything from intricate ‘must-do’ reminders to detail- oriented customized reports in- crease communication, efficiency and production and ultimately creates a happier client,” said Ben Neuwirth , director of software implementation at Eastern. “We’re off to a great start,” AbeBergman ,managing part- ner at Eastern told staff at a recent meeting. “Let’s keep that momentum going and raise the bar yet again in 2014.” n Eastern Union sees 300% increase in January plex in Prince George’s County, Maryland. Senior managing director Marc Tropp and vice president Shai Romirowsky helped facilitate the sale by locating a buyer.
Silver Hill Apartments
Alan LaCava (O) 800-308-8696
Diversified Financial Services Group, Inc. 1800 JFK Blvd, Philadelphia, PA 19103
info@divfinservices.com www.divfinservices.com
We offer a variety of long term financing programs under the following terms and conditions: Minimum Loan Amount: $500,000 Maximum Loan Amount: $200,000,000 Amortization: 30 year, 25 year, 20 year, 15 year Rate Adjustments: 1-3-5-7-10 years Prepayment: Negotiable Recourse: Available for both Lending: All 50 States in the United States. CMBS Pool: It is available minimum $1 million / Maximum $100 million. Loan to Value: Maximum 75% DSC: Varies based upon type of property Through a related Corporation, we originate, sell, and service through a number of life insurance and credit companies. In almost each situation, a representative will be required to meet with and talk to the borrower. Industrial Properties:
Retail Properties: • Regional malls • Apartment Bldgs. • Strip Centers
• Single Tenant • Multi-Tenant • Multi-Tenant Incubator • Warehouse and Distribution Facilities • Manufacturing Multi-Family Residential: Recourse and Non/recourse financing is available for apartment complexes, and mixed use apartment and r centers Other Property Types: • Credit Tenant leased properties • GSA Leased properties • Flagged Gas Station and truck facilities
• Neighborhood Centers • Big Box Retail Stores • Single Tenant Retail buildings • Hotels Office Properties:
• Class A, office building, Multi-tenant buildings • Class B, office building, Multi-tenant buildings • Medical Office buildings
• Single Tenant office Buildings • GSA occupied Office Buildings
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88Made with FlippingBook - Online catalogs