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ISSUE HIGHLIGHTS Volume 25 Issue 13 July 12 -25, 2013 WCRE secures new lease in South Jersey
To Cole Corporate Income Trust, Inc. Vision Equities, LLC sells $32.4 million interest in 299 Jefferson Rd., Parsippany
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ARSIPPANY, NJ —A $32.4 million sale of 299 Jefferson Rd. in
es, and upgraded landscaping and parking. Vision updated the building mechanicals, built a new fitness center with locker rooms, and renovated the cafeteria. Evonik took oc- cupancy in late 2011. According to Fred Arena , Vision’s co-managing partner, the sale fits perfectly with his firm’s vision for the proj- ect as well as its long-term investment approach. “We purchased a property that we knew had great potential, at- tracted a long-term credit ten- ant by providing quality prod- uct at a highly competitive rate, and were approached by a prominent REIT to invest in the finished product,” he said. “We remain involved in the building’s operation on a day-to-day basis, ensuring that our tenant will benefit from the same responsive, ef- ficient service they have come to expect.” ■
Parsippany marks the culmi- nation of a stabilization for the 150,500 s/f, classAoffice asset. Vision Equities, LLC , an institutional investor, has sold their interest in the property t o Cole Corporate Income Trust, Inc. ; Vision will contin- ue to provide asset/property management for the building, which serves as corporate headquarters for Evonik De- gussa Corporation. Vision Equities, a full-ser- vice real estate development and asset management firm, acquired 299 Jefferson Rd. with knowledge that the sole occupant would ultimately vacate its space. “We recog- nized that after we executed our redevelopment and mod- ernization plan, a building of this size and quality in such a desirable submarket
5-B
299 Jefferson Rd.
Landmark Comm’l. Realty arranges $4.6m multifamily sale
would appeal to a corporate user looking to establish a full-building operation,” noted Sam Morreale , Vision’s co- founder and managing part- ner. “We rolled out a reposi- tioning strategy, and Evonik – which had outgrown its space at another Parsippany building – understood the
value proposition.” Following Evonik’s May 2011 lease signing, Vision Eq- uities subsequently built out a multi-million-dollar head- quarters operation for the specialty chemicals company. Aesthetic highlights include a new, three-story atrium lobby, hardwood and granite finish-
Meridian Capital group arranges $12 million in permanent financing for garden-style apartment
8C
Property Management Spotlight
FAIRLESS HILLS, PA — Meridian Capital Group, LLC , a leading national com- mercial real estate finance and advisory firm, negotiated $12 million on behalf of Garnet Management for the refinanc- ing of Lakeview Terrace mul- tifamily property located in Fairless Hills. The 10-year HUD loan fea-
SECTION D
Directory
Upcoming Spotlight July 26, 2013 - BROKERAGE DIRECTORY DelMarVa ........................................7-10A New Jersey .................................Section B Central New Jersey .......................... 5-11B Pennsylvania ..............................Section C Eastern PA ....................................... 5-12C Property Management Spotlight ... Section D
Lakeview Terrace
tures a fixed-rate of 3.40% and was provided by Northfield Bank . Meridian Capital Group Abe Schonfeld based in the company’s Iselin, NJ office, negotiated this transaction. Lakeview Terrace is two-
ships and in-depth market knowledge and persuade them to write this loan in Pennsyl- vania,” said Schonfeld. “The professional management and ownership made this a desir- able loan,” he added. ■
story, garden-style complex that is composed of 288 units in total. “Even though the lender typically focuses on New Jer- sey, we were able to leverage our long-standing relation-
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Inside Cover A — July 12 -25, 2013 — Mid Atlantic Real Estate Journal
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VENDORS/FCF FOUNDATION COLLABORATE “Real Estate Managers for Families in Crisis Foundation recently made an Award of $10,000 to a local family,” announced FCF President Rita Vogt, “and although the Award is substantial, the family is in need of much more assistance. Their plight has to do with their house, which borders on the inhabitable. “ This single-parent family of four has been living without a functioning heater for the past six years and making do with a few space heaters. Just taking a shower is a big deal. Since the passing of the father in 2001, the mother has struggled to keep the family fed and clothed. However, she has a medical condition which prevents her from working outside the home, so there are no funds left at the end of each month with which to make house repairs or replacements. The family’s need was brought to the attention of FCF and after the family’s application was evaluated, FCF granted the Award. However, upon an inspection of the property, it was determined that more than the heating system was needed. A scope of work was formulated with an impressive list of repairs/replacements necessary to secure the property. A project team was formed and word went out to Friends of IREM and local vendors requesting they contribute some time, equipment and materials so the FCF Award could be stretched to cover more than the new heating system. Please see partial list of generous vendors who have made a commitment to date: ACADIAWindows & Doors American Furniture Rental Anthony Primolla, Tree Trimming AVCO Supply Inc. BP Environmental Services Inc. CIS Management Inc. CMQ Floor Covering Cohen and Willwerth, PC Lawn Connection Inc. Multi-Housing Depot by ARI PC Cooper Roofing Realty Landscaping Warrell Construction An impressive list to be sure and truly wonderful what these vendors are doing to help this family. But this project requires more. Still needed are gutters & downspouts, cabinetry, paint and painters, a plumber and electrician, and volunteer man-hours to “get it done.” Please consider what you can do to be a part of this great effort to help a family, who did not believe that anyone cared about them. Guaranteed there is nothing more rewarding in life than helping someone else, making their life a little better, or showing someone you care! Real Estate Managers for Families in Crisis Foundation is a 501 (c) (3) non-profit organization. All donations are tax deductible to the full extent of the law. The Foundation is governed by a volunteer group of real estate professionals. There are no salaries and 99% of contributions go directly to families in need. To join our project team as a “contributor”, please contact any one of the following: Rita Vogt at rita.vogt@verizon.net, Heather Kamasa at hkamasa@acadiawindows.com or Harry Bagot at hbagot@gmail.com. Visit Families in Crisis Foundation at: www.familiesincrisisfoundation.org
Mid Atlantic Real Estate Journal — July 12 - 25, 2013 — A
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COMMERCIAL LOANS SBA 504 & 7A PROGRAMS
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$600,000.00 Refinance Industrial Building Cape May, NJ
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Bar & Restaurant Farmingdale, NJ
Ocean Front Hotel Point Pleasant, NJ
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$2.4 MILLION Acquisition NJ EDA Loan 44,000 Square Feet 10 Year Fixed Term Manufacturing Company South Amboy, NJ
$160,000 SBA 7A Loan Refinance Fishing Boat Belmar, NJ $1.1 Million
$2.5 Million Refinance Bar/Restaurant Menlo Park, Edison
$6.3 Million Refinance Golf Course/Restaurant Stockton, NJ
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Please contact John Burke with any loan scenarios. 732-297-4700 Ext. 11 1882 Rt. 1 North, North Brunswick, NJ 08902 www.sbacoastal.com
2A — July 12 - 25, 2013 — Mid Atlantic Real Estate Journal MAREJ a dvertisers d ireCtorY Accutech Environmental Services.................... 4D Aegis .................................................................. 9D ALTRealty ..................................................... FC-C Appraisal Institute............................................ 9B Arrow Steel........................................................ 7D Bayshore Recycling ......................................... 10D Bennett Williams .............................................. 4C BL Companies ................................................... 6C Boyle Construction Management............... IBC-C Brasler Properties .......................................... IC-C Breslin Realty.................................................... 7C Bussel Realty Corp......................................... IC-B Coastal Commercial Grp. ....................... 1A, IC-D Cooper-Horowitz, Inc. ..................................... 13A Curini Appraisal.............................................. 10B Cushman & Wakefield ...................................... 3C Deerwood Real Estate..................................... 12B Earth Engineering Inc. ..................................... 5C EPGP ................................................................. 5D First Industrial Realty Trust............................ 4C Fortna Auctioneers......................................... 4-5A G&C ................................................................... 6D Gebroe-Hammer Associates............................ 12B Genova Burns Giantomasi Webster................. 8D Greater Reading................................................ 8C Griffin Land....................................................... 7C Harvey Hanna Associates................................. 9A Heller Industrial Park .................................... 11B Hinerfeld Commercial Real Estate .................. 1C Hinerfeld Commercial Real Estate .................. 1C Hylant Environmental Risk Management ...... 2C Investors Real Estate Agency........................... 3C Kaplin Stewart Attorneys at Law .................... 2A Keast & Hood Co. ........................................ IBC-C Lee & Associates ............................................. 10B Liberty Environmental, Inc. ............................. 2C M. Miller & Son................................................. 3A Max Spann Real Estate ................................. 4-5A Mericle ...........................................................BC-C Meridian Capital Group, LLC ........................ 12A Meridian Capital Group, LLC .......................... 6B NAI Summit ...................................................... 7C NorthMarq....................................................... 11C Penn’s Northeast ............................................... 4C PennCap Properties .......................................... 7C Poskanzer Skott Architects .............................. 3B Regal Bank ........................................................ 3B Rittenhouse Realty Advisors ............................ 6A Rock Commercial Real Estate .......................... 8A SEBCO Laundry Systems ................................ 2B Sheldon Good & Company................................ 4A Sheldon Gross Realty.................................11B,2D Singer Properties .............................................. 6A Specialty Building Systems .............................. 3D The Frederick Group......................................... 5C The Green Group .............................................. 3A The James Balliet Commercial Group............. 2C The Kislak Company, Inc.................................. 4B Thompson Management LLC........................... 2B Traffic Planning and Design, Inc...................... 4C Value Companies......................................IC,BC-D Warner Real Estate........................................... 4A Wolfe .................................................................. 7B Zamir Equities .................................................. 4B
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Mid Atlantic Real Estate Journal
Mid Atlantic R eal e state J ouRnal Publisher ............................................................................linda christman Publisher ...............................................................................Joe christman Section Publisher ................................................................elaine fanning Section Publisher ....................................................................Steve Kelley Senior Editor/Graphic Artist ................................................ Karen Vachon Office Manager ...................................................................Joanne Gavaza Guest Columnist ................................................................H. Gary Gabriel Mid Atlantic R eal e state J ouRnal ~ Published Semi-Monthly P.O. Box 26 Accord, MA 02018 (Mail) 312 Market Street, Rockland, MA 02370 (Overnight) Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, P.O. Box 26, Accord, MA 02018 USPS #22-358 | Vol. 25 Issue 13 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 The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
By H. Gary Gabriel Changing Face of
Retail Likely to Spur Real Estate Revolution
W
hen it comes to retail real estate invest- ment, there currently
exists a massive spread be- tween what the capital markets community wants (i.e. grocery- anchored properties) and the category of “everything else.” That said, investors in the near term are going to have to begin looking at product differently, based on how people will shop in an increasingly ecommerce world. In the late 1990s, at the beginning of the Internet age, everyone decided that retail as we know it would cease to exist. Webvan would eliminate the need for grocery stores altogether. We all know how that story ended. Retail real estate clearly has not become a “dinosaur,” but ecommerce does continue to chip into traditional brick-and-mortar sales. According to Forrester Re- search, Inc., ecommerce sales in the United States will reach $262 billion this year, up 13% from 2012 and accounting for
8% of total retail sales. The For- rester report further predicts that ecommerce will grow at a compound annual rate of 9% through 2017. To compensate, retail formats are on the cusp of dramatic change, in terms of what a prototypical store will look like from a size perspective and how goods will be delivered to consumers. How will e-tailing, traditional retail and consumer shopping patterns intersect moving forward? The answer remains to be seen, but it likely will create an interesting shift in demand for what today are considered to be second-tier
assets. For example, the Internet has measurably impacted sales of hard goods at supermarket grocery stores, which is chal- lenging this favorite category. Chains like A&P, ShopRite and Safeway, to name a few, are in- corporating more perishables, organics and other items that cannot be ordered online. High- end and specialty concepts, like Whole Foods, Trader Joe’s and green grocers, are expanding rapidly but in smaller foot- prints than their traditional competitors. Further, it used to be that
continued on page A
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M id A tlantic R eal E state J ournal JLL & Landmark Comm’l. orchestrate transaction Dermody Properties sells 100,000 s/f to Select Capital
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HILADELPHIA, PA — Dermody Proper- ties announced the
sale of a 100,000 s/f light industrial building located in Harrisburg to Select Capital Commercial Properties, Inc. The building is located at 7917 Derry St. in the heart of the largest industrial sub-mar- ket in the Philadelphia region. It is currently 92% leased to seven tenants, including DHL Express, Pyramid Con- struction and United Hospital Services. “The sale of the building fits our strategy of recycling capital into development op- portunities in key distribution markets in the U.S.,” said Douglas Kiersey, Jr. , presi- dent of Dermody Properties. “We were pleased to work with Select Capital on this trans- action, which benefited both parties.” With 35% of the U.S. popu- lation within a one-day drive, the location offers a strong advantage for tenants look- ing to capitalize on the area’s exceptional transportation and shipping hub access. Julie Trogner , associate broker at Jones Lang La- Salle , represented Dermody Properties, and Jason Grace of Landmark Commercial Realty, Inc. brokered the transaction on behalf of Select Capital Commercial Proper- ties, Inc. In other news, Dermody Properties andAlbert’s Organ- ics, Inc. celebrated the grand opening of the organic food dis- tributor’s new 70,000 s/f facil- ity. Dermody Properties served as the industrial developer and operating partner on the proj- ect, which is located in Logan Township, NJ and Stonemont Financial Group served as the financial partner. Construction on the facility began in October 2012 and was completed in April 2013. The facility, which serves as a distribution center for Albert’s Organics, is located in Der- mody Properties’ LogistiCenter at Logan, at 1155 Commerce Blvd., in Logan Township. “This project was a per- fect fit for Stonemont,” said Zack Markwell , principal at Stonemont Financial Group. “We are happy to see it come to fruition, and are proud to have partnered with Dermody Properties to develop such an excellent facility for Albert’s Organics.” n
7917 Derry Street
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MULTI-PROPERTY AUCTIONS Saturday, July 27, 11am 3712 & 3720 Walnut St, Harrisburg, PA 6 Unit Apartment & Car Lot Offered Separately or in Combination 3712 Walnut St, Harrisburg, PA
AUCTION Commercial Real Estate 14,000± sf Commercial Building 3041 Freeport Rd, NATRONA HEIGHTS, PA Saturday, August 10 @ 11:00 AM
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Tri-level Concrete & Steel Beam Superstructure on 1.17± Acres Located off Rt 28 N. in Western, PA
Visit our website www.FortnaAuctioneers.com for more info & photos of the property! INSPECTION: MONDAY, JULY 22, 11AM - 12PM Cell Tower Auction 3712 Walnut St, Harrisburg, PA The Mid-Atlantic Real Estate Journal, 5x6, Auction Section July 12 T WO AU C T I O N S 9 Unit Apartment Complex 3720 Walnut St, Harrisburg, PA AUCTION JULY 16 TH AT 10AM •196+/- Residential Properties & Lots in Philadelphia Property Seminars: July 2, and July 9 12-3PM AUCTION JULY 24 TH AT 1PM ARCHDIOCESE SURPLUS PROPERTY AUCTION •8 Commercial Properties in Philadelphia Property Preview: July 11 12-3PM Visit our website www.FortnaAuctioneers.com IRUPRUHLQIRWHUPV SKRWRVRIWKHSURSHUW\ visit maxspann.com for details. Call 888.299.1438 or visit maxspann.com In Cooperation with Prudential Fox Roach Realtors Robert L. Dann Auctioneer Lic #AU005609 Mid-Atlantic Real Estate Journal, 1/2 page, 5x12, July 12 A — July 12 - 25, 2013 — Mid Atlantic Real Estate Journal www.marejournal.com M id A tlantic R eal E state J ournal Shopping center is 86% leased Sitar adds three new tenants to Sea Girt Square in NJ S reflects our efforts to bring an enjoyable experience to shop- pers.” EA GIRT, NJ — Si- tar Realty Company – TCN Worldwide an- nounced four more tenants have signed leases at the com- pletely rebuilt Sea Girt Square shopping center. The new ten- ants are Sprint, Drishti Power Yoga, Learning Express Toys and The Little Gym. These tenants join other upscale ten- ants such as Massage Envy, European Wax Center, J. Mi- chael Salon, FINS TropiCali Cuisine, Carter & Cavero, Vil- lage Coffee, The Coal House, Miles Ahead Sports, The Sak, Ralph’s Italian Ices, Weight Watchers, Gail’s Optical, and Wings Fitness. The shop- ping center is now 86 percent leased. Sea Girt Square is located at 2100 Route 35, Wall Township, New Jersey, at the intersection of Route 35 and Ocean Road. The prime, highly visible, 6,200 s/f clock tower space is the last remaining vacancy at shopping centers with lots of restaurant tenants or gyms were considered “troubled.” However, these categories and other types of non-traditional tenants (doctor and dentist offices, veterinarians, etc.) are becoming favored because they will continue to draw pedes- trian traffic despite the growing popularity of online shopping. Lifestyle changes may also begin to impact the way con- sumers shop. More and more, people are sitting behind their computers to work. Social me- dia is becoming a primary form of human interaction. However, the fact remains that relation- this vibrant shopping center, which services the nearby communities of Wall Town- ship, Sea Girt, Spring Lake, Spring Lake Heights, Belmar, Manasquan and Brielle. It also draws customers from the extended region looking for quality goods, as Sea Girt Square is an easy drive from the Garden State Parkway (Exit 98), and Rtes. 195, 138, 34, 33, 71, 70 and 18. Andy Gottesman , CEO of Gottesman Real Estate Partners , the center’s owner, said, “Our focus from the be- ginning has been to attract strong, boutique shops deliv- ering quality products and personal service in an invit- ing environment. Particular attention was given to finding complementary tenants that serve the needs of the commu- nity. I believe the appearance and atmosphere of the center, as well as the attention to the customers by the retailers, ships are formed by interper- sonal meetings. As society be- gins to crave more face-to-face interaction, we may well see a transformation of retail into a quasi center of community. What kinds of tenants – and settings – will create that town center kind of environment? The bottom line is that the retail real estate is headed for a revolution. What has worked in the past will not remain the be- all and end-all. Of course, the retail real estate landscape is not going to change overnight. Investors today remain cau- tious in terms of where they will place their dollars. Conventional institutions, especially, remain firmly “in- side the box,” chasing best-in- class, grocery-anchored assets. However, private capital, op- portunity funds and the like can – and should – be looking at other spaces, which are priced more advantageously for the buyer. In short, getting away from the beloved and consider- ing the unloved may well reveal opportunities that will work just as well or better as retail’s next generation unfolds. H. Gary Gabriel is vice chairman of the Metropoli- tan Area Capital Markets Group of Cushman &Wake- field, in East Rutherford, NJ. n The retail leasing brokers for Sea Girt Square are Hel- ena Loelius and Edward Hughes from Sitar’s Sea Girt office. Both brokers provided the expertise to help redesign the center, provide insight into the center’s leasing strategy and conclude leases for the aforementioned tenants. n The center’s retailers rec- ognize the synergy of their businesses and are leveraging it by cross promoting, partici- pating in joint marketing and sponsoring various events. Often, the shopkeepers, jointly or individually, give back to the community by sponsor- ing events and promotions for non-profits such as the FoodBank of Monmouth and Ocean Counties, Restore the Shore, American Red Cross and Michael’s Feat, among others. INDUSTRIAL FLEX SPACE continued from page 2A Changing face of retail likely to spur real estate . . . RT.41 COMMERICAL OFFICE SPACE - F irst Class Office Building - 24,400 SF gross area - Brand new driveway - High speed Fios Cable ready - Central HVAC - Professionally Maintained - 24x7 digital survelliance MIDDLE OF Chesco Business District Only 3,200 SF LEFT *Private entrance with double glass doors *Completely renovated in 2011-12 *Gorgeous Wood flooring *Combination of big n’ small rooms Rent : $3,000 per month +NNN terms SIMPLY CALL for showing www.singer-properties.com Share with Social Media SiteS • StreaMing Video • direct traffic to Your webSite Mid Atlantic Real Estate Journal — July 12 - 25, 2013 — A www.marejournal.com Ferrell of NorthMarq’s Baltimore office places $2.5 million mortgage for Parkway Building Deeter of NorthMarq’s Philadelphia office arranges $15.75 million for Fredericktowne Crossing tephens Ci ty, VA — Phil Deeter , senior vice president and managing director of NorthMarq’s Philadelphia regional office, arranged first mortgage refinancing of $15.75 million for Freder- icktowne Crossing, an 88,418 s/f retail center located in Stephens City. Martin’s, a regional grocery chain, is the major tenant at the site. Financing was based on a 10-year term and a 30- year amortization schedule. NorthMarq arranged this financing for the borrower through its relationship with a CMBS lender. Hanover, MD — Nan- cy Ferrell , senior vice presi- dent and managing director S WASHINGTON, DC — Hines announced that 1200 Nineteenth Street, a trophy- class, 11-story LEEDPlatinum office building in downtown Washington, DC, has been sold to Fosterlane. The building owner, the Hines U.S. Core Office Fund, was represented in the trans- action by HFF . “We are happy to have select- ed Fosterlane as the new owner of 1200 Nineteenth Street. Together we share a 30-year history of successful real estate investment and development,” said Hines senior managing director ChuckWatters . “This sale underscores the strength and stability of the downtown D.C. office market. Hines is committed to continue to build on our high level of activity in D.C., particularly with further investment and development opportunities.” 1200 Nineteenth Street is 86 percent leased to tenants in- cluding: McKinsey &Company, Inc., United States; Squire Sanders (US) LLP; Navigant Consulting, Inc.; Womble Car- lyle Sandridge & Rice LLP; and MOI, Inc. In addition to the office tenancy, the build- ing includes 23,000 s/f of retail space that is fully leased to Fredericktowne Crossing Parkway Building of NorthMarq’s Baltimore regional office, arranged acquisition financing of $2.5 million for the Parkway Building, a 27,555 s/f office building located at 7257 Parkway Dr. in Hanover. Financing was based on a 10-year term and a 25-year amortization schedule and was arranged for the bor- rower, Parkway 100 Hold- ings, LLC, by NorthMarq through its relationship with a correspondent life company lender. n Hines sells 1200 Nineteenth Street in DC to Fosterlane U.S. Core Office Fund acquired the property and, in October 2007, implemented a rede- “This sale underscores the strength and stability of the downtown D.C. office market. Hines is commit- ted to continue to build on our high level of activity in D.C., particularly with further investment and de- velopment opportunities.” — Chuck Watters velopment program, adding three stories to the building, which expanded the property to 340,000 s/f. The redevelopment also included: elevator up- grades; new mechanical, elec- trical and plumbing systems; replacement of the existing façade with a high-efficiency glass curtain wall and full- height glass retail storefronts; new paving and landscaping; new amenities including a “green” planted roof with a deck; and the addition of a fit- ness center. After completion of the redevelopment in June 2009, 1200 Nineteenth earned its LEED Platinum certifica- tion, and is still one of the few multi-tenant office buildings in D.C. with that designation. n 1200 Nineteenth Street was originally completed in 1964 as 1200 Nineteenth Street restaurants and a men’s fash- ion retailer. a 245,000 s/f, eight-story office building. In 2003, the Hines A — July 12 - 25, 2013 — Mid Atlantic Real Estate Journal RELY ON RETAIL MARE Journal 4 x 4.8 Ad 12 04 04_Layout 1 6/6/2013 9:57 AM Page 1 www.marejournal.com D el M ar V a A licensed broker in DC, Virginia and Maryland SloanStreetAdvisors’Anderson named Top RE Professional M cLean, VA — Debra Stracke Anderson , presi- derson is one of only three awardees who received up- wards of five nominations from SmartCEO readers. Anderson is a licensed bro- ker in the District of Colum- bia, Virginia and Maryland and earned both the CCIM and SIOR professional des- ignations, for which only a small percentage of industry practitioners have qualified. She founded Sloan Street Ad- visors, Inc. in 2000 following a nearly 20 year career as an executive with regional and international commercial real estate companies. Her firm provides tenant representa- tion, buyer representation and consulting services for corporate and government us- ers of properties in the District of Columbia and its suburbs, in addition to representing clients on an international basis. The company serves as the Washington, D.C. regional affiliate for ITRA Global, the largest commercial real estate organization devoted to repre- senting corporate tenants and buyers, with service in major markets around the world. Anderson served as ITRA global chairman of the Board for 2010 and 2011, and was elected ChairmanEmeritus for 2012 and 2013. She has been a member of the ITRA Global board of directors since 2004 and received the Exemplary Service Award, highlighting outstanding leadership and contributions to the organiza- tion. She is a member of the Society of Industrial and Office Real Estate , is a Cer- tified Commercial Investment Member of the CCIM Insti- tute and is a frequent author for business publications. She was named one of the “Best of 2010” and “Best of 2011” by the Mid-Atlantic Real Estate Journal and represented the tenant in one of the Washing- ton Business Journal’s “Larg- est Office Leases in 2010”. Anderson has also served on the board of directors for Stop Child Abuse Now and on the advisory council for Programs for Youth. n Equus Capital Partners leases 32,317 s/f to Med- Immune GAITHERSBURG, DC. – (June 5, 2013) – Equus Capi- tal Partners, Ltd. , formerly BPG Properties, Ltd., (BPG) announced that MedImmune, LLC. has executed a 32,317 s/f, seven year lease extension at 25 West Watkins Mill Road, which is part of the 282,523 s/f Gaithersburg office and lab portfolio in Gaithersburg. The landlord was represent- ed in the lease negotiations by BernardMcCarthy of Jones Lang LaSalle . MedImmune, LLC was represented by Pe- ter Briskman of Jones Lang LaSalle . Equus acquired the Gaith- ersburg office and lab portfolio in February of 2013. n dent of Sloan StreetAdvi- sors / ITRA Gl oba l , a commercial real estate firm based in the Wash- ington, D.C. a r e a , h a s been selected The Power of Team For in-depth market research. For high quality locations. For creative ways to fill your center. For a unique team-based approach. Ben Chiaro , CCIM - Larry O’Brien , CCIM John Birkeland - Greg Finkelstein Debra Stracke Anderson one of the Top Real Estate Professionals in the region by a readership poll organized by SmartCEO magazine. An- 717.854.5357 www.rockrealestate.net 2013 EDITORIAL CALENDAR SEPTEMBER JULY JULY 12 ......................................................... DEADLINE: JUNE 28 ROP DMV SEPTEMBER 13 ........................................ DEADLINE: AUGUST 30 ROP DMV Delaware, Maryland, Virginia, DC Southern Eastern Property Management Delaware, Maryland, Virginia, DC Northern Central Appraisal NJ PA SP NJ PA SP JULY 26 .......................................................... DEADLINE: JULY ROP GRN SC ODM SP Shopping Centers - Retail Brokerage featured in Spotlight Architects/Engineers Brokerage Directory SEPTEMBER 27 ...................................DEADLINE: SEPTEMBER 13 ROP GRN SC ODM SP Building Services Post ICSC Highlights & Retail Services Healthcare Fall Preview AUGUST AUGUST 16................................................ DEADLINE: AUGUST 2 ROP DMV CALENDAR KEY Delaware, Maryland, Virginia, DC Central PA Elite Companies NJ PA SP ROP DMV GRN Run of Press Delaware, Maryland, Virginia, DC Green Building NJ New Jersey AUGUST 30.............................................. DEADLINE: AUGUST 16 ROP GRN SC ODM SP Energy Efficiency PA/NJ/DE ICSC Idea Exchange* Building Interiors Commercial Real Estate Law ODM Owners, Developers & Managers PA SC SP Pennsylvania Shopping Centers Spotlight Steve Kelley, Associate Publisher Toll-Free: 800-584-1062 x209 | Fax: 781-871-5299 skelley@marejournal.com | www.marejournal.com Mid Atlantic Real Estate Journal — July 12 - 25, 2013 — 9A www.marejournal.com d el M AR V A THE NEW STANDARD IN LUXURY LIVING AT DEWEY BEACH Welcome to a new way of living in Dewey Beach, DE. Introducing The Residences at Lighthouse Cove Dewey Beach, an exclusive collection of penthouse residences that will feature sunrise and sunset views over the Atlantic Ocean and Rehoboth Bay from every unit, located atop the new Hyatt Place Dewey Beach. With construction on the new hotel and residences already underway, our sales gallery and model are now open to the public. Located on-site, take a tour of our furnished 3-bedroom model and experience the grandeur of your new beach-side residence. Contact the sales office today and make an appointment to see these amazing residences that feature picturesque views of both the Atlantic Ocean and Rehoboth Bay. For the best selection of homes schedule your appointment by calling 302.212.0002. THE RESIDENCES AT LIGHTHOUSE COVE DEWEY BEACH Two, Three, and Four Bedroom Residences | Ocean and Bay Views Expansive Terraces and Balconies TWO-BEDROOM - TWO BATH FROM $575,000 THREE BEDROOM - THREE BATH FROM $850,000 SALES GALLERY OPEN DAILY & BY APPOINTMENT FOUR BEDROOM - FOUR BATH FROM $1,500,000 124 DICKINSON STREET DEWEY BEACH, DE 302.212.0002 T he R esidences de. com 10A — July 12 - 25, 2013 — Mid Atlantic Real Estate Journal www.marejournal.com Commercial-Industrial Realty Council www.circdelaware.org 2013 Board of Directors President J. Gregory Ellis Patterson-Woods Associates Vice President of Delaware Treasurer Katherine L. Silicato, CPA Gunnip & Company, LLP Secretary Bayard J. Snyder, Esq. Bayard & Associates Committees / Directors Education Chair: Dan Lesher Patterson-Woods Associates Legislative Chair: J. Gregory Ellis Patterson-Woods Associates Program Chair: John Birmingham Cushman & Wakefield MidCoast Community Bank Benjamin J. Berger, Esq. Berger Harris, LLC Jim O’Hara NAI Emory Hill-Retail Div. Donald Robitzer The Commonwealth Group Bert Root, V Harvey Hanna & Associates Marvin Sachs Bellevue Realty Co. Science & Engineering Legislative Lobbyist C. Scott Kidner C. S. Kidner & Associates New Castle County Economic Dev. Liaison (open) New Castle County Chamber Liaison Bob Chadwick, Director NCC Economic Dev. Council State of Delaware Economic Dev. Liaison Jeff Stone State of Delaware, DEDO City of Wilmington Economic Development Liaison Jeff Flynn Mayor’s Office of Economic Development Ex-Officio Directors Business Manager Janet S. Pippert CIRC / Landmark John Birmingham Cushman & Wakefield of Delaware Membership Chair: James Manna BrightFields, Inc. Directors Jeremy Abelson Real Estate Continuing Education...”It’s the Law :” Delaware’s NEW Commercial Broker’s Lein Law September 11, 2013 t/FYU.FNCFS-VODIBNtQN$MBTT Photos compliments of Pat Forester and ^ddKĸĐĞ^ŽůƵƟŽŶƐ͘DŽƌĞƉŚŽƚŽƐĂƚ͗ ƐƚĂƚŽĸĐĞƐŽůƵƟŽŶƐ͘ĐŽŵͬŶĞǁƐͲLJŽƵͲĐĂŶͲƵƐĞͬ Contry Club. A good time was had by all - in spite of a wee monsoon - and over $2,000 was raised for charity for The Delaware KIDS Fund. Thank you Bert Root for chairing another great event! C redits: DE (Mod. 6) 3.0; PA (Elec./Hot Buttons) 3.5; MD (Comm. Lien Elective) 1.5 Cost: $35/mem.; $45/Non-mem. REGISTER for this and other classes at: www.circdelaware.org O n May 8, 2013, members of the Commercial-Industrial Realty Council (CIRC) gathered at the Clarion Belle for their last luncheon and con- tinuing education until September 11, 2013 Wilmington Mayor Dennis P. Wil- liams was the featured speaker. Mayor Williams provided a frank assessment D elaware is now among the states in our region - Pennsylvania and Maryland - to offer a commercial broker lien law to help protect your commis- sions. This course will be taught by An- drew Taylor, Esq. who was instrumental in writing Delaware’s new commercial broker lien law. Every broker and agent doing business in Delaware should take this course...whether you need the certificate for continuing education OR NOT! CIRC News Your Can Use : CIRC Meeting with Mayor Williams & Golf Outing of his efforts to make the City of Wilm- ington the best it can be despite several challenging situations. He promised to open the lines of communication with the business community, especially com- mercial real estate professionals. C IRC’s Annual Golf Outing was held on Monday, June 10 at the DuPont F inancial D igest Mid Atlantic Real Estate Journal — July 12 - 25, 2013 — 11A www.marejournal.com ew York, NY — American Realty Capi ta l Proper- N 2,579 single tenant properties net leased to 470 tenants across 29 industries in 48 states ARCP to acquire American Realty Capital Trust IV in a Merger Transaction valued at $3.1 billion IV will be converted into a right to receive, at the election of each ARCT IV stockhold- er, a fixed exchange ratio of 2.05 shares of ARCP common stock, valued at $31.02 based on ARCP’s volume weighted average stock price of $15.13 for the five trading days ended July 1, 2013, subject to ad- justment or cash payment at ARCP’s option to establish a guaranteed floor value of $30.62 per share. Alternative- ly, an ARCT IV stockholder may elect to receive $30.00 per share in cash, limited to the consideration paid with respect 25% of the ARCT IV shares outstanding. The portion of the consideration consisting of ARCP shares will be tax-free for ARCT IV shareholders. ARCP shares issued to ARCT IV stockhold- ers will not be subject to any “lockup.” Metzger and Nate Hyman of Eastern Union arranged the transaction. • $6 million for the refi- nance of a 70 unit multi-fam- ily property in Brooklyn, at 3.55 percent, on a 10 year term, and 30 year amortiza- tion. Shaya Ackerman of Eastern Union arranged the transaction. n University satellite campus in Harrisburg, where there are less than 10,000 students,” says Banas. “This made it chal- lenging to get agency financing but a perfect fit for one of our banking relationships. There was a substantial portion of equity cash out to the sponsors and the property just opened in September 2012, so there was really no financial history,” continues Banas. “The refinance that we ar- ranged paid back the construc- tion loan as well as a majority of the developer’s cash equity.” concludes Banas. n Philadelphia, PA — DavidTurley,AnnaWesthoff and Janet Proscia of Cron- heim Mortgage advised on the $50 million refinance of a three-property, 750,000 s/f of- fice building portfolio located in suburban Philadelphia. The loan was provided by a national bank, which funded a non-recourse, moderately leveraged, 5-year facility. The one and two-story pro- fessional office buildings are occupied with a mix of small professional office, medical, corporate satellite, education, and government users. “Sponsorship bought the assets a few years ago with a As a result in part of this pending acquisition, ARCP has increased its 2014E ad- justed funds from operations (“AFFO”) guidance to $1.19 - $1.25 per share, equivalent to approximately 31% growth over 2013E AFFO per share at the midpoint of the respec- tive ranges. This projected AFFO growth rate leads the net lease industry. In addition to the projected impact of the acquisition of ARCT IV, revi- sions to 2014 guidance include the reduction of outstanding debt as well as refinancing of certain short- and medium- term borrowings to longer term indebtedness in order to maintain financial flexibility and further ARCP’s intention to seek an investment grade corporate credit rating. Fur- ther, ARCP will increase its annualized dividend to $0.94 per share, effective upon the New York, NY — Mark Scott’s Commercial Mort- gage Capital (CMC) recently closed $55 million worth of loans with life company cor- respondents and investment banks. CMC arranged a $21-million loan for iPark Hudson Build- ing Three, a recently renovat- ed 152,149 s/f office/research earlier to occur of the close of this merger and the close of ARCP’s previously announced merger with CapLease, Inc. The dividend increase will be ARCP’s 7th consecutive quar- terly dividend increase. Commenting on the trans- action, ARCP’s chairman and CEO, Nicholas Schorsch , said, “Today’s announced merger solidifies our lead- ership position in the net lease real estate sector. Less than two years after listing ARCP on NASDAQ, subject to completing this acquisition and the CapLease merger, together with the recently announced portfolio purchase from GE Capital and other organic acquisitions, we will have increased our enter- prise value from $250 million in September 2011 to $10 billion, becoming the second largest net lease REIT. n value-add investment strategy. They improved the assets with the help of significant build- ing upgrades and a focus on brand/image enhancement,” noted Westhoff. “The institu- tional prejudice against older suburban office was a chal- lenge, but one we were able to overcome.” “Under the client’s direction, we conducted an extensive marketing effort to create op- tions representing a variety of financing strategies. In the end, they executed a bank facility that offers low-cost, flexible financing at an attrac- tive leverage point,” Turley added. n t i e s , I n c . ( “ ARCP ” ) and Ameri- can Realty C a p i t a l Tr u s t I V , Inc. (“ARCT I V ” ) a n - nounced that t h e y h a v e be approximately $10 billion, with annualized rent of more than $527 million, of which 57% will be from investment grade tenants. The merger agreement has been approved by the independent directors of both companies, and is sub- ject to customary closing con- ditions, including stockholder votes by both companies. The acquisition is expected to close by the end of the third quarter of 2013. Stockholders of record for each company as of July 2, 2013 will be entitled to vote on the proposals re- lated to the merger. Pursuant to the terms of the merger agreement, each outstanding share of ARCT mixed-use portfolio of 4 prop- erties in the Bronx, on a 7 year term. This loan featured 80 percent LTV and 2 years IO. Eli Breiner of Eastern Union arranged the transaction. • $8 million for the refi- nance of a 52 unit mixed-use property in Manhattan, at 3 percent, on a 7 year term and 30 year amortization. David John Banas and Kristo- pher Wood , both directors in MMCC’s Philadelphia office, have arranged the following refinance debt: • $11.7 million to refinance a 66-unit student housing prop- erty in Middletown, Pa. • $6 million to refinance a 580-unit hotel in Syracuse, N.Y. • $5.7 million to refinance a 31,000 s/f classAoffice building in Phoenixville “The Middletown property is located at the Penn State signed a definitive merger agreement wherebyARCPwill acquire all of the outstanding shares of ARCT IV for stock and cash in a transaction valued at approximately $3.1 billion. As a result of this and other previously announced acquisitions, ARCP will own 2,579 single tenant proper- ties net leased to 470 tenants across 29 industries in 48 states. ARCP’s projected pro forma enterprise value will New York, NY — Com- mercial mortgage brokerage firm Eastern Union Fund- ing announced that it has arranged approximately $60 million in financing for com- mercial real estate properties in New York City. Select transactions include: • $25.6 million for the refi- nance of a multi-family and PHILADELPHIA, PA — Marcus &Millichap Capital Corporation (MMCC) ar- ranged in excess of $244,000,000 in debt during the month of May 2013, according to Wil- liam Hughes , senior vice president and managing direc- tor of MMCC. “May was a busy month for us,” says Hughes. “We closed more than 100 transactions, thanks in a large part to our firm’s initiative and deep mar- ket knowledge. The range of these transactions, in terms of property sectors and challeng- es, is a testament to the power Eastern Union arranges $60 million in New York City financing Cronheim completes $50m financing assignment in PA Marcus & Millichap Capital Corp. places $244m+ of the Marcus & Millichap platform,” adds Hughes. building. In addition, Mr. Scott arranged an $18-million, long- term, self-liquidating loan for a 400 unit multi-family complex in Parsippany, NJ. Also in New Jersey, CMC arranged a $16- million, 10-year self-liquidating loan for a 140,000 s/f single- tenant office building located in Florham Park, NJ, a prime Morris County location. n CMC closes $55 million in loans 12A — July 12 - 25, 2013 — Mid Atlantic Real Estate Journal www.marejournal.com F inAnciAl d igest Free and clear of existing dept HFF closes $3 million sale of multi-housing community in White Plains, Ny F LoRHAM PARK, NJ —HFF announced that it has closed the sale of close to The Bronx River Parkway and Interstate 287, and directly across from the Metro-North White Plains train station providing access to Manhattan. Renovated in 2004, the property features studio, one- and two-bedroom units averaging 727 square feet each. Community ameni- ties include a fitness center, residents lounge, internet café and a 159-space parking garage. According to Jose Cruz , “DSF has been very active in the Northeast during the last several years. This was DSF’s first acquisition in the New York area and they did a great job of working through the transaction and closed on time.” The HFF team representing the sellers was led by senior managing directors Jose Cruz and Andrew Scandalios, managing directors Kevin o’Hearn and Jeffrey Julien and associate director Ste- phen Simonelli. Celebrating 100 years of real estate management and investment experience, Kor- man Communities seeks ac- quisition opportunities for its premierAKAandAVE brands. Korman Communities special- izes in AAA quality properties in major urban markets across the United States and in Lon- don. The primary growth markets for Korman Commu- nities include New York City metro (including northern New Jersey and southern Con- necticut), Philadelphia metro, Washington metro (including District of Columbia, northern Virginia, and southern Mary- land), Boston, Los Angeles, San Francisco, and London. With more than $1.5 billion invested in four million square feet since 2000, the DSF Group has quietly become one of the most successful private real estate investment firms in the country. n PHILADELPHIA, PAAND MELBoURNE, FL — HFF has arranged $127.5 million in financing for a 37-property industrial, office and retail portfolio located in suburban Philadelphia, PAand Mel- bourne, FL. Working on behalf of The Henderson Group and Trin- ity Capital Associates , HFF placed the three-year, floating- rate loan with Natixis Real Estate Capital LLC . Loan proceeds are refinancing exist- ing debt on the properties and consolidating ownership under the company founder, Wilbur Henderson. n HF F p o s i t i o n s $12.5m for PA & FL portfolio 25 Martine Ave. , a 12-story, 124-unit multi-housing com- munity in White Plains, NY. HFF marketed the property on behalf of the seller, a joint venture between Korman Communities and an insti- tutional partner. The DSF Group purchased the commu- nity for $34 million free and clear of existing debt. Twenty-five Martine Ave., situated in downtown White Plains, is located adjacent to The Galleria at White Plains, 25 Martine Ave., White Plains, NY Relationship Driven. Execution Focused. Only Meridian Capital Group’s powerful financing relationships can consistently achieve the unparalleled results our clients require. Meridian Capital Group, LLC WYV\KS`HK]PZLKVUÄUHUJPUNMVY[OL MVSSV^PUN[YHUZHJ[PVU! 9 North 9 409-Unit Luxury Apartment Building Philadelphia, PA $25,000,000 7LYTHULU[-PUHUJPUN 9V\[L:V\[O:\P[L0ZLSPU51c c^^^TLYPKPHUJHWP[HSJVT July 2013 9 North 9 .indd 1 6/27/13 9:10 AM
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