ISSUE HIGHLIGHTS Volume 29, Issue 4 February 24 - March 9, 2017 SPO TLIGHTS Commercial Office Properties 7-20A Levin Mgmt. expands management portfolio

E Performance reflects continued robust activity in the NJ Regional Marketplace Cushman&Wakefield’sMetro. AreaCapital Markets Group reaches $3.2 billion in 2016 AST RUTHERFORD, NJ — Cushman & Wakefield’s Metropoli-

Bruce Lane , executive VP and managing director of Me- ridian, said the firm will con- tinue to pursue its successful investment strategy with the new fund. “Our investment strategy is focused on well-located, insti- tutional-quality assets near Metro stations, major high- ways, and walkable amenities in submarkets such as Wash- ington, DC; Tysons, Arlington, Alexandria and Reston, VA.; and Bethesda and Rockville, MD,” Lane said. “These are places where we can create value through repositioning, renovations, leasing, redevel- opment, development and land entitlements.” Meridian has already com- pleted five Fund II transactions totaling over $400 million: International Pl., a 12-story office building at 1735 Lynn St. in Rosslyn, VA. The Meridian Group is renovating and reposi- tioning the 293,539 s/f building. 1400 L St., a 12-story class A office building at the corner of L and 14th Sts. inWashington, DC. Merin noted that his team is watching closely for shifts in the market’s after the election this fall. “This is an election year – and a strange one at that,” he noted. “Wall Street has been doing well, but an- other hit could have investors again stepping to the sidelines. That said, if the economy con- tinues on its positive – albeit slow – trajectory the real estate investment sales market will continue to perform well.” n continued on page 4A tivity, as well as land, retail and multifamily trades. “Bid- ding activity across the board picked up nicely following a first-quarter slowdown,” Merin noted. “It may not be as fast- paced as last year, but is strong enough to ensure multiple healthy bidders per transac- tion. The influx of overseas money to the New Jersey/New York region remains impres- sive.”

BETHESDA, MD — Having fully invested its first discre- tionary real estate fund in Washington, DC real estate, The Meridian Group has closed its second fund, Meridian Re- alty Partners II, L.P., with $231.6 million raised from institutional investors. Meridian also raised and invested an additional $80 mil- lion of co-investment capital in Fund II transactions to date. With leverage and additional “We have seen reports about 2016 being an off year for investment sales, but in real- ity activity remains extremely healthy,” Merin said. “Nation- ally, year-over-year transac- tion totals are down, but it is important to consider that 2015 was very strong – and that 2016 got off to a rough tan Area Capital Markets Group has completed 2016 with more than $3 billion in commercial real estate sales volume in 74 transactions, both of which are a record for the team. According to Andrew Merin, who co-founded the team with David Bernhaut in 1987, this impressive per- formance reflects continued robust investment activity in the New Jersey regional mar- ketplace.

70 & 90 Hudson St.

start with the volatility on Wall Street. Without ques- tion, capital continues to chase opportunity throughout the greater New York/New Jersey suburbs.” In fact, the Metropolitan Area Capital Markets Group in recent months orchestrated two blockbuster office sales illustrating this point. They in- cluded Novo Nordisk’s 762,000 s/f North American headquar- ters in Plainsboro, which Hana Asset Management Co. pur- chased form Ivy Equities (and

deals fit our value-add invest- ment strategy very well, and we continue to be bullish on the DC real estate market. We’ve been investing in this region for the past 24 years, and we look forward to investing here for many more years to come.” Meridian has been an active buyer in the DC market. The firm, which invests exclusively in the metropolitan DC area, is now one of the largest fund operators in Washington. Total capitalization for acqui- sitions and development is over $2.5 billion during the past six years. Meridian has raised ap- proximately $1.0 billion of total equity capital through its first two funds. “We are very pleased with what we have accomplished with our funds,” said Gary Block , chief investment officer of Meridian. “Our proven track record, investment strategy and capabilities, along with the long-term strength of the Washington real estate mar- ket, attracted our institutional investors. We appreciate their confidence in us.” Intercontinental). The $305 million transaction marked the largest single-asset sale in New Jersey in 2016. In Jersey City, the team inked the $299 million sale of 70 & 90 Hudson St. from Gramercy Property Trust to Spear Street Capital – the market’s second-largest office transaction. Combined, the twin class A buildings total nearly 858,000 s/f . In addition to 40 office build- ing sale transactions, the team also has been involved in sig- nificant industrial sales ac-

The Meridian Group closes its second fund with $231.6 million raised for DC real estate


Upcoming Conferences March 9, 2017 3rd Annual NJ Land Development Summit March 30 Pittsburgh Multifamily Summit For more information, please contact: Linda at 781-871-3456 or lchristman@marejournal.com

co-investment capital, the firm expects to acquire properties totaling $1.5 billion for its new fund over the next several years. Meridian’s first fund, Me- ridian Realty Partners I, L.P. raised $160 million of discre- tionary funds, along with ad- ditional co-investment capital of $510 million, for a total of $670 million for acquisitions and development projects. To- tal capitalization is expected to be $1.8 billion. “I am very proud of our management team, which has grown rapidly and done an incredible job of raising and investing capital in the DC market,” said David Cheek , president of Meridian. “These Shown from left: Gary Block, David Cheek and Bruce Lane


Upcoming Spotlights 1031 Exchange Contractors/Subcontractors Shopping Centers................................................. 3A Office...............................................................7-20A Owners, Developers & Managers............... Section B


Inside Cover A — February 24 - March 9, 2017 — M id A tlantic

Real Estate Journal



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Real Estate Journal — February 24 - March 9, 2017 — 1A


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2A — February 24 - March 9, 2017 — M id A tlantic

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Immediate Action Required • Offers currently being considered Portfolio of Environmentally ImpactedDevelopment Sites Three Sites Located in New Jersey BANKRUPTCY SALE (Subject to Bankruptcy Court Approval) Offer Deadline: March 22, 2017 n Kearny, Hudson County, NJ – Belleville Turnpike 28.65 Acres Across 4 Parcels n Kearny, Hudson County, NJ – O’Brien Road 6.76 Acres Across 5 Parcels n Newark, Essex County, NJ – 5.82 Acres Across 2 Parcels All Environmental Issues Have an Active Responsible 3 rd Party

M id A tlantic Real Estate Journal

M id A tlantic R eal E state J ournal Publisher .................................................................Linda Christman AVP/Conference Producer ........................................Lea Christman Senior Editor/Graphic Artist ..................................... Karen Vachon Associate Publisher ....................................................... Kim Brunet Associate Publisher .............................................. Barbara Holyoke Associate Publisher .....................................................Steve Kelley Office Manager .........................................................Joanne Gavaza Contributing Columnists . ... David C. Freinberg, Anupam Goradia

David C. Freinberg

At torneys Need to Leave Egos at the Door in Commercial RE Deals

Mid Atlantic R eal E state J ournal ~ Published Semi-Monthly Periodicals postage paid at Rockland, Massachusetts and additional mailing offices

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hen attorneys leave their egos at the door and work with

REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Phone: 781-740-2900 | Fax: 781-740-2929 www.marejournal.com The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal

brokers as a team on commer- cial real estate deals, they are more likely to deliver better results for their clients, advises David C. Freinberg, a share- holder in national law firm LeClairRyan, in a Feb. 2 column published by GlobeSt.com. But that doesn’t mean it al- ways works that way. “In my 30-year career, I have run across plenty of lawyers who, perhaps out of arrogance or shortsightedness, deem- phasize collaboration,” writes Freinberg, who is based in the firm’s Newark office. “Operat- ing as though they were being handed a baton in a relay race, they essentially say to the bro- kerage team, ‘Thanks. I’ve got it from here.’” In the column (“There’s No ‘I’ in ‘Lease’”), Freinberg notes that giving short shrift to col- laboration is a mistake, espe- cially when it comes to large- scale deals. The former LeClairRyan CEO, who returned to his real estate and corporate practice at the firm last year, cites a deal in which he worked closely with his client’s broker to help a For- tune Global 100 company nego- tiate the lease for its U.S. head- quarters. “The negotiations were lengthy and complex,” Freinberg writes. “Fortunately, the broker I worked with was outstanding. We worked closely to dig into the details, structure the economics of the transaction and carefully consider business


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issues as they affected legal considerations in play.” The teamwork involved hud- dling with the client’s business- people to develop solutions that ultimately led to a very positive outcome, Freinberg writes. “By contrast, a silo-style ap- proach (‘I’ll take it from here’) would have sharply limited the amount of knowledge, as well as the multiplicity of perspec- tives, available to the client,” he noted. “Why do that?” In the column, Freinberg advises that neither brokers nor their clients should accept a truncated relationship with the legal team. When attor- neys and brokers collaborate, they make each other’s jobs easier and raise the overall quality of strategic analysis and intel, he explains. “If you get a sense that an attorney you plan to work with fails to appreciate the value of collabo- ration, think carefully about the potential implications,” Freinberg counsels. After all, brokers bring mar- ket intelligence to the table, he notes. “When the negotiations get heated, for example, a good tenant rep can honestly say to the prospective landlord, ‘Listen, I live and breathe this

market and am aware of a number of other viable sites. Your property is not the only game in town,’ “Freinberg writes. On the landlord side, a good broker understands how well or poorly competing properties in the marketplace are actu- ally performing; has a realistic grasp of tenant expectations; and knows the prevailing con- cessions typically demanded by tenants and granted by landlords in the marketplace, Freinberg said. Meanwhile, the attorney needs to bring a lot to the table as well with respect to legal and negotiating skills, creativ- ity, efficiency, technological savvy and other value-adds, Freinberg advises. “Simply put, an unwilling- ness to collaborate is a red flag—a sign that the lawyer could be stuck in an old men- tality based on maximizing billable hours rather than competing through superior service and providing value to the client,” he writes in the con- clusion to the piece. “Forward- thinking brokers and attorneys alike should see large-scale, high-stakes deals as a team sport—and play to win.” n

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This Ad Prepared by SMM Advertising 631-265-5160 About the Mid Atlantic Real Estate Journal The Mid Atlantic R EAL E STATE J OURNAL encompasses all aspects of the commercial real estate industry. The Journal partners with professionals in commercial sales, construction, industrial, development and financial services to provide read- ers with valuable and current information that can strengthen and grow their business. The Journal is a great source to guide readers toward: • Issues effecting the industry today. • A source for commercial, industrial, construction, development, financial sales opportunities and services. • In-depth articles on issues facing commercial real estate in the Mid Atlantic area. • Reading about services and organizations to network with, to help better their business. There is nothing like the Journal The Journal reaches thousands of decision makers who finance the buildings, build the buildings, buy the buildings and tenant the buildings. Loyal advertisers of the Journal have enjoyed for years: • Brand recognition • Target audience of decision makers • Building and maintaining image • Consistent visibility equals staying power We Encourage You to Submit • News releases • Calendar of events • Photos • Expert articles • Transactions • Personal Profiles To Subscribe or Advertise call Linda Christman 781-740-2929 or email lchristman@marejournal.com www.marejournal.com


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The Mid Atlantic Real Estate Journal is a monthly publication highlighting real estate transactions throughout the Mid Atlantic including : • New developments, ground breakings and reconstruction in the ODM (Owners, Managers & Contractors ) section • Mortgage and banking in our Financial Digest • Retail and new developments in Shopping Centers • Annual spotlights.

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• Region specific news and spotlights in our Pennsylvania and New Jersey sections

S hopping C enters

Real Estate Journal — Shopping Centers — February 24 - March 9, 2017 — 3A


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amilton Twp., NJ — IP Associates, the owners of the In- 2465 South Broad Street in Hamilton Township, New Jersey Houlihan-Parnes Realtors celebrates Independence Plaza Shopping Center opening H

dependence Plaza Shopping Center at 2465 South Broad St. in Hamilton Twp. an- nounced the grand opening of a Regal Multiplex Theatre. The site had been the scene of an extremely long foreclosure. The property was acquired in early 2015 by a partner- ship made up of members of Houlihan-Parnes Realtors, LLC and the Jemal family. At that time, the property was approximately 80% empty. Since acquisition, a major turnaround has occurred. Four new major stores have opened: Ollie’s Bargain Out- let, Crunch Fitness and Save- A-Lot Supermarkets are already open. They are now joined by Regal’s Cinema Multiplex with 12 screens. Leasing activity has picked up dramatically and there are NORTH PLAINFIELD, NJ — Commercial real estate services firm Levin Manage- ment Corporation (LMC) has been named managing agent for two New Jersey shop- ping centers totaling 290,000 s/f, and located in Freehold Township and Hackettstown. The significant assignments – awarded on behalf of an exist- ing LMC client – underscore the strength of the company’s long-time client relationships, according to Robert Carson, executive vice president. In Freehold Township, LMC will manage Raintree Towne Center, a 134,000 s/f property situated on heavily traveled Route 537. Anchored by a Stop & Shop supermarket, the Monmouth County center also includes CVS Pharmacy, Starbucks and a Hallmark store. Raintree Towne Center is located near CentraState Medical Center and Freehold Raceway Mall, proximate to major highways including routes 9 and 33. LMC also was named man- aging agent for Mansfield Plaza in Warren County’s

leases out for signature for an additional 15,000 square

feet. Owners expect the bal- ance of the vacant space to

be rented quickly now that Regal’s is open and drawing

a large amount of traffic to the center. n

LevinManagement expands management portfolio withwith NJ properties

Plaza’s diverse tenant roster,” said Korris. “Retailers are attracted by Rutgers Plaza’s centralized location, excellent daily consumer traffic and two quality anchor tenants – Stop & Shop and Crunch Fitness. T-Mobile brings another valu- able service to the property and to the area.” In addition to its 74,000 s/f Stop & Shop and 29,000 s/f Crunch Fitness locations, Rut- gers Plaza features a comple- mentary lineup of national and regional tenants includ- ing Dollar Tree, Burger King, GameStop, Chase Bank, Plaza Cleaners, GNC and Venus Jewelers, among others. Situ- ated on Easton Ave. at Kenne- dy Blvd., Rutgers Plaza serves a growing residential popula- tion of more than 263,300 people within a five-mile ra- dius. The marketplace offers an average household income of nearly $106,000 within one mile of the property. The daily traffic count on Easton Avenue exceeds 39,000 vehicles. Space availabilities at Rut- gers Plaza range from 1,800 s/f to 20,810 s/f. n

Rutgers Plaza

Hackettstown. The 156,000 s/f shopping center, located on Rte. 57, is anchored by a high- volume ShopRite supermarket and features a tenant mix that includes discount store Dollar Tree and a 14-screen Cinepolis movie theater. These key assignments dem- onstrate how LMC continues to grow by continually exceed- ing clients’ expectations, said Robert Carson, CSM , over- sees coordination for Levin’s client properties. “We’ve been managing shopping centers on behalf of this client for more than 15 years,” he said. “It was because of this relationship – and the client’s satisfaction

and trust in LMC – that we were selected to manage these two properties. We intend to apply our proven manage- ment standards to all aspects of these centers’ operation in order to further maximize both properties’ response to tenants and curb appeal.” LMC is celebrating its 65th anniversary in 2017, and continues to grow its leasing and management portfolio. The firm was awarded several new assignments over the past year, most recently including a shopping center in Delran, NJ. LMC also was retained to continue its role following ownership changes at proper-

ties in Flemington, NJ, and Pottsville, PA. FRANKLIN TWP., NJ — Wireless voice and data com- munications services provider T-Mobile has leased 2,000 s/f of space at Rutgers Plaza in Franklin Township, becom- ing the latest tenant to join the retail mix at this premier Somerset County shopping destination. Levin Manage- ment Corporation serves as leasing and managing agent for the 266,000 s/f center. LMC’s leasing representa- tive Jordan Korris negoti- ated the long-term lease. “T-Mobile represents a high- quality addition to Rutgers

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S hopping C enters Sam McCoy, Brett McNamee and Ali Newton to handle Roanoke and Salem properties Divaris adds two new assignments with 249,000 s/f to portfolio S alem, VA — Ger- ald Divaris , chairman and CEO of Divaris

mee and Ali Newton . The new properties in the company’s portfolio consist of: Cross Roads Shopping Cen- ter, a 150,000 s/f shopping center located on Hershberger Rd. Northwest in Roanoke, in a major shopping corridor adjacent to Towne Square and near Valley View Mall. The corporate headquarters of Advance Auto Parts are located on the site. Other ten- ants in the property include ALDI, TOP Nails, Subway and National Optical. There is 3,625 s/f of small shop space, flexible junior anchor and an-

chor space available for lease. Kmart SalemShopping Cen- ter is a 99,000 s/f shopping center that is available for sale. It is located at 1355 West Main St. in Salem on a major shopping corridor of the Salem market in the Roanoke Metro- politan Area. Tenants in the property include Kmart, UPS, Nail Tips, and Sally Beau- ty. Nearby retailers include: Lowe’s, Kroger and Walmart. This is a redevelopment op- portunity with the impending closure of the 88,000 s/f Kmart (anticipated in April 2017). There is also 2,500 s/f of small

shop space that is vacant. VIRGINIA BEACH, VA — Gerald Divaris announced the signing of five leases totaling 9,960 s/f of new and renewed retail space on the Southside of Hampton Rds., Virginia. negotiations were handled through the Virginia Beach, office of DRE. Ashley Stewart renewed its lease for 4,000 s/f of retail space in the Divaris-leased Victory Crossing Shopping Center located at 4000 Vic- tory Blvd. in Portsmouth. Ashley Stewart is a global fashion brand that stands for

The firm is working on a major renovation to the 172,453 s/f building, located less than two blocks from the McPherson Square Metro station. 11111 Sunset Hills Rd., a class A office building in Res- ton, VA. The 216,000 s/f build- ing is located near the Dulles Toll Rd. and the Wiehle-Reston East Metro station. The Hyatt Regency Bethes- da, a 390-room upscale hotel located at 7400 Wisconsin Ave. The firm is repositioning the well-known hotel. 1901 L St., an 8-story 132,000 s/f building at the corner of 19th and L Sts. in Washington, DC. Meridian is planning a ma- jor renovation to the building, including adding three floors. Meridian’s Fund I is develop- ing one of the largest projects in the DC area: The Boro, a 3.5-million s/f development located within steps of the Greensboro Metro station on the new Silver line. In September, Meridian broke ground on The Boro’s Phase One, an $850 million project that will feature 1.7 million s/f of space. When complete, The Boro will consist of more than 1,500 residential units, 1.3 million s/f of office space, 400,000 s/f of retail space, and a new hotel. Another Fund I investment includes 800 K and 801 Eye St., two adjoined office buildings formerly called Techworld and now known as Anthem Row. The firm is planning a major $160 million renovation of the office complex in Washington’s East End. n continued from FC-A The Meridian Group closes its second fund . . . uncompromising style, fash- ion, fit and empowerment for the woman who flaunts her curves. George Fox of Divaris Real Estate represented the landlord, Portsmouth Associ- ates, LLC, in the lease nego- tiations. Victory Crossing is anchored by Farm Fresh and Lowe’s Home Improvement. Mainly Gray leased 1,760 s/f of retail space in the Divaris- leased Boulevard Shops lo- cated at 920 South Battlefield Blvd. in Chesapeake. DRE’s Eric Hammond represented the landlord, Battlefield Bou- levard, LLC, in the lease ne- gotiations. n

Real Estate, Inc. (DRE) , ann o un c e d the addition of two prop- erties to its s a l e s a n d leasing port- f o l i o . T h e total space

includes 249,000 s/f of retail space located in Roanoke and Salem. Both properties will be handled by the Divaris team of Sam McCoy, Brett McNa- Gerald Divaris

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Built in 2001, this 4,860 SF, free standing commercial building is located immediately off Exit # 63 of I-295 and features 1 drive-in door, two private offices, showroom, full kitchen and 25 car parking. The property is ADA compliant and located just 2.5 miles from the Robert Wood Johnson Hospital. Ideal Uses Include: Radiology, OBGYN, Mental Health & Dermatology Center, Phys- ical Therapy, Vision, Medical, or Dental Practices, Physical Fitness, Veterinarian, Real Estate, Urgent Care, Engineering, and Architectural Firms, Child or Adult Care Centers, Retail Uses, Restaurants, Pest Control, Sign & Plate Glass Companies, Convenience Store, Liquor Store, Home Improvements, Flooring & Tile, Kitchen & Bath, Printing. Marketing, Bakery, Funeral Home, etc.

Real Estate Journal — Shopping Centers — February 24 - March 9, 2017 — 5A


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S hopping C enters Welcoming Quiet Storm, Amaryllis, and ZenLife as part of $20 million renovation Three new tenants to join Trader Joe’s at The Shops at Kenilworth

ow s o n , Md — Greenberg Gibbons announced that three new tenants will celebrate openings during the first quar- ter of 2017 at The Shops at Kenilworth, the landmark shopping destination in Tow- son. The new tenants include: • Amaryllis will be opening a new, 750 s/f boutique in March 2017. This will be the second location for this established retailer, which is well-known in Baltimore for its selection of unique, affordable and hand- crafted designer jewelry and ac- cessories. Amaryllis’ new store will be located on the first floor, near Stebbins Anderson and across from Towson Bootery. • Quiet Storm, which is well- known for its surf shops in Rehoboth Beach and Ocean City, will open its newest store at The Shops at Kenilworth in March 2017. The 3,595 s/f space will offer a range of clothing and accessories for men and women, including beach, outdoor and preppy- inspired brands like Patagonia, Vineyard Vines, Fish Hippie, Johnny-O, Billabong, RVCA, Rip Curl, Stance and Costa Sunglass. Quiet Stormwill also be located on the lower level, near Stebbins Anderson and across from Towson Bootery. • ZenLife, will offer a variety of wellness services, including yoga, nutrition advice, energy treatments, wellness coaching, acupuncture, reflexology and meditation, as well as yoga- inspired clothing and accesso- ries. The new 2,680 s/f studio will also feature a juice bar. ZenLife is set to open in March T Reisterstown Village trades for $4.1 million REISTERSTOWN, MD, — Marcus & Millichap an- nounced the sale of Reister- stown Village Shopping Cen- ter, a 21,685 s/f retail property located in Reisterstown. The asset sold for $4.1 million. Christopher Burnham, associate , and Dean Zang , senior managing director in- vestments in the firm’s Bal- timore and Washington, D.C. offices respectively, had the listing to market the prop- erty on behalf of the seller, Reisterstown Development, LLC. Burnham and Zang also secured the buyer, Robyn Properties. n

2017 on the lower level of The Shops at Kenilworth, between Jos A Bank and Wilkes & Ri- ley. Pre-launch yoga classes are currently being offered in a temporary space on the up- per level and pre-enrollment memberships are available for purchase at www.zenlifeyog- aboutique.com. The Shops at Kenilworth is undergoing a $20 million reno- vation that includes updating the exterior and interior into a more contemporary and wel- coming specialty shopping and community gathering place. Retailers remain open during

the transformation, which is taking place in phases to mini- mize disruptions. “Opening three Maryland- based retailers along with Trader Joe’s and Kenilworth Wine & Spirits during the first half of 2017 is an extraordinary start for what’s to come. We are very excited about the progres- sion of this renovation,” said Tom Fitzpatrick, President of Greenberg Gibbons. Greenberg Gibbons began managing The Shops at Ke- nilworth in July 2014 and assumed full ownership of the property in April 2015. n

The Shops at Kenilworth

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S hopping C enters

50,400 s/f building leased to Federal Express REMCO sells investment property for $3.57 million B

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ranchburg, NJ — Peter Gallicchio president of Somerset based Remco Realty Group has announced that the firm recently sold a single tenant net leased Industrial property located at 161 Meister Ave. to a New Jersey based invest- ment group. The 50,400 s/f building which has been leased to Fed- eral Express since its construc- tion in 1988 sits on 3.5 acres and features 28’ clear ceilings, five drive-in doors and 8,000 s/f of office space. This first time to market of-

161 Meister Ave.

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Joint venture acquires Thompson Square Shopping Ctr. Monticello, NY — A joint venture partnership be- tween Heidenberg Proper- ties Group, Strategic Real Estate Partners (SREP), and Norse Realty Group announces the $19.1 million acquisition of the Thompson Square Shopping Center in Monticello. Thompson Square is a 117,944 s/f shopping center anchored by a 54,300 s/f ShopRite. n Branchburg is home to such well known companies as; Amneal Pharmaceuticals, Agfa Corp, Acorn Display, Biosearch Medical, Beumer Corp, Bio-Connexx, Century Labs, Chubb Insurance, DA Marketing, Falcon Safety, FedEx, GE Power Systems, Hagelin & Co, Hydromer Inc, Imclone Systems, Intermex of America, Kinedyne Corp, Ki- netics Systems, Life Cell Corp, Merck & Co, Power Integra- tions, Pharmax Group, Sym- rise Inc, Shuutz Container, Tekni-Plex Films, Trimline Medical, Viva Optique, Vol- taix, and Zeus Scientific just to name a few. Remco was appointed by the seller to market this offering, and also secured the buyer. n fering generated interest from buyers in multiple States, and ultimately sold for $3.57 mil- lion or $70.83/s/f. The property is located in the Branchburg Business Park, midway between the Lehigh Valley Industrial Hub in Pennsylvania and Ports Newark and Elizabeth in New Jersey.

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Mid Atlantic Real Estate Journal — Commercial Office Spotlight — February 24 - March 9, 2017 — 7A

M id A tlantic R eal E state J ournal ’ s A nnual C ommercial O ffice Spotlight

Scott K. Perkins NAI James E. Hanson

Scott K. Perkins NAI James E. Hanson

Shaz Perrone NAI DiLeo-Bram & Co.

Art Campbell Campbell Commercial Real Estate

Jay Olhonsky, FRICS, SIOR NAI Global

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8A — February 24 - March 9, 2017 — Commercial Office Spotlight — M id A tlantic

Real Estate Journal

C ommercial O ffice P roperties

Mack-Cali purchases asset from Alfieri, increasing Monmouth County presence Cushman & Wakefield: Red Bank, NJ Office Campus trades for $26 million


property includes 100 and 200 Schultz, and 230 Half Mile Rd.. The current occupancy presented an opportunity with strong upside potential, accord- ing to Cushman & Wakefield’s Andrew Merin , who headed the transaction with David Bernhaut, Gary Gabriel, Brian Whitmer and Andrew MacDonald . “Mack-Cali has been focus- ing its investment activity in certain geographic areas, and these buildings sit adjacent to another, highly successful asset in the firm’s regional portfolio,” Merin said. “Mack- Cali plans to incorporate them as part of one cohesive campus with shared amenities, which will enhance the potential of this already great value-add play.” Merin added that the prop- erty historically has attracted credit tenants drawn by its easy accessibility and the re- gion’s strong labor pool. Lo- cated immediately off Exit 109 of the Garden State Pkwy., the campus offers a full-service caf- eteria and fitness center and a well-landscaped central court- yard with outdoor seating. n BDO expands real estate practice in Woodbridge, NJ Woodbridge, NJ — BDO USA, LLP , one of the nation’s leading professional Woodbridge. This expansion will allow the team to better service existing clients with additional local resources. “We are excited for the op- portunity to better service the NJ marketplace, specifically within industrial, commercial, and multi-family real estate which we see poised for signifi- cant growth,” said Anthony La Malfa , assurance partner. “Our team of industry experts will add significant resources to serve our existing clients, and our growing client base, to meet the demand for these services.” The BDO NJ office is cen- trally located at 90 Wood- bridge Center. n Anthony LaMalfa service or- ganizations, announced the expan- sion of their Real Estate, C o n s t r u c - t i o n a n d Hospitality practice in

ED BANK, NJ — Cushman & Wake- field’s Metropolitan

Area Capi- tal Markets Group has arranged the $26 million o f f -ma r k e t t r ade o f a three-build- i n g o f f i c e property in

Andrew Merin

Red Bank. Mack-Cali Realty Corp. purchased the 17-acre, multi-tenant campus from Al- fieri Company, Inc. Totaling 280,500 s/f, the

100 Schultz

Same address. New look. www.BergmanRealty.com

Bergman Real Estate Group is pleased to announce the launch of our new website! Our new site features all of our properties and is mobile friendly .

For more information, please call 732-855-8600

Bergman Real Estate Group is an entrepreneurial, family- owned real estate firm specializing in the acquisition, ownership, management, leasing and construction supervision of office buildings and commercial properties.


Real Estate Journal — Commercial Office Properties — February 24 - March 9, 2017 — 9A

M id A tlantic

C ommercial O ffice P roperties


10A— February 24 - March 9, 2017 — Commercial Office Properties — M id A tlantic

Real Estate Journal

C ommercial O ffice P roperties By Art Campbell, Campbell Commercial Real Estate, Inc. A Tale of Two Cities

I t was the best of times, it was the worst of times. Depending on your position

years of 2006 and 2007. Total dollar value however, was not anywhere close to years with similar number of transactions. Central Pennsylvania, espe- cially the Harrisburg Market, has seen some of the highest and lowest office sale prices ever paid. On the “Best of Times” end of the market, fully leased office buildings with credit ten- ants and specialty buildings, such as medical with long term leases, have sold at record val- ues. Investors seeking a place to put their money are chas- ing what they perceive as safe cash flow. These transactions have reduced cap rates overall

without any real positive sub- stantive changes to the market. This may eventually have a negative effect to those inves- tors that are over-leveraged. During the same period that we have seen record high sales, a lot of transactions were done by local investors who acquired vacant office building at 20 to 30 percent of replacement cost. Even at low acquisition costs, there is risk in how long it will take to renovate and lease the buildings, or in several cases, repurpose them for other uses. A notable transfer is the now vacant Senate Plaza building with 260,000 sq. ft. and the now

vacant 200,000 sq. ft. building previously occupied by HP on GrandviewAvenue, also in East Pennsboro Township. Two va- cant buildings with 61,000 sq. ft. in Rossmoyne, Upper Allen Township, have also recently been acquired and will be reno- vated. The 170,000 sq. ft. build- ing, previously headquarters of PSECU, and 2605 Interstate Drive with over 80,000 sq. ft., previously headquarters for PEMA, are additional examples of vacant or near vacant larger building transfers at very low square foot prices. On the other end of the spec- trum are transfers from $140.00

per sq. ft. to well over $200.00 per sq. ft. for fully occupied medical buildings. Two new Class A buildings constructed for Deloitte in Silver Spring Township and one for HP in East Pennsboro Townships are examples of meeting the need for upscale space with higher density occupancy. The new standard and expectation of having 6 – 8 employees per 1,000 sq. ft. of space has cre- ated a need for higher parking ratios and upgraded HVAC systems. Unfortunately, with the relocation to these newer Class A buildings, more vacancy has been created. A few leases with companies new to the area are close to being finalized, but even with the over 100,000 sq. ft. anticipated with those trans- actions, close to 2,000,000 sq. ft. remains available. The large discrepancy in sale prices coupled with large blocks of vacant space, has cre- ated a quandary for appraisers and brokers. Which buildings should be used as comparables? Historically, distressed sales were not being used in ap- praisals, however when a large number of buildings sold are distressed sales, and they make up a large percentage of the sales, those transactions cannot be ignored. The long followed adage in real estate of location, loca- tion, location has remained extremely important. How- ever, also to be included is un- derstanding every nuance that can affect each building’s mar- ketability and value. It is not uncommon to now see almost identical office buildings sell at price differentials as much as 50%. Occupancy, owner’s equity, and lease terms have never had a greater effect on valuations. The future valuation of the market’s office buildings will depend on several factors that are still uncertain. Obviously the overall economy and job creation by office users is a major part. Interest rates, regulations effecting building renovations, and repurposing will also have an effect. It appears 2017 will not see any major changes to the market and it will still remain somewhat uncertain, which will create opportunities for some and, unfortunately, the “Worst of Times” for others. Art Campbell is the presi- dent of Campbell Commer- cial Real Estate, Inc. n

as an owner or broker in the Central Pennsylva- n i a o f f i c e ma r k e t i s how appl i - c a b l e y o u may th i nk the famous

Art Campbell

line from Charles Dickens A Tale of Two Cities is to you. In terms of total square footage sold, 2016 was a near record year for office building sales, matching the high transaction


(717) 737-6161 • www.acampbell.net

C ommercial O ffice S potlight NAI GLOBAL


Mid Atlantic Real Estate Journal — Commercial Office Spotlight — February 24 - March 9, 2017 — 11A

Inside: NAI Dileo-Bram............................................................................................................................................ 12A NAI Global. 13A NAI Michael............................................................................................................................................. 14-15A NAI James E. Hanson................................................................................................................................. 16A NAI Mertz. .................................................................................................................................................... 18A NAI Keystone............................................................................................................................................... 19A NAI Global offices are leaders in their local markets NAI Global is a leading global commercial real estate brokerage firm. NAI Global offices are leaders in their local markets and work in unison to provide clients with exceptional solutions to their commercial real estate needs. NAI Global has more than 375 offices strategically located throughout North America, Latin America, Europe, Africa and Asia Pacific, with over 6,700 local market professionals, managing in excess of over 400 million s/f of property. Annually, NAI Global completes in excess of $20 billion in commercial real estate transactions throughout the world. NAI Global provides a full range of corporate real estate services, including brokerage and leasing, property and facilities management, real estate investment and capital market services, due dili- gence, global supply chain and logistics consulting and related advisory services. NAI Global offices deliver market-leading services locally and combine their in-market strengths to form a powerful bond of insights and execution for clients with multi-market challenges. The overall U.S. industrial market recorded a net absorption of positive 80,048,240 s/f in the fourth quarter 2016. In comparison, the U.S. industrial market recorded a net absorption of positive 118,281,847 s/f in the third quarter 2016. “Looking at the retail side of things of the Mid-Atlantic area, the overall Washington DC retail market recorded a net absorption of positive 745,039 s/f in the fourth quarter 2016. said Jay Olshonsky, FRICS, SIOR , President of NAI Global, “In comparison, the Washington retail market recorded a net absorption of positive 401,086 s/f in the third quarter 2016.” The overall Philadelphia office market recorded a net absorption of positive 998,728 s/f in the fourth quarter 2016. In comparison, the Philadelphia office market recorded a net absorption of positive 1,449,583 s/f in the third quarter 2016. “Although there was a slowdown in projects completed last quarter, rising rents continue to signal a healthy real estate environment,” Olshonsky said. “Investors can remain confident with a number of major projects on the horizon,” he added. Jay Olshonsky


12A— February 24 - March 9, 2017 — Commercial Office Properties — M id A tlantic

Real Estate Journal

NAI D i L eo -B ram & C o . The hire represents the addition of a seasoned lease analysis professional Shaz Perrone joins NAI DiLeo-Bram & Co. as vice president N AI DiLeo-Bram an- nounced that Shaz Perrone has joined

of clients. She has previously worked for JLL at the corpo- rate offices of AT&T. Shaz has been responsible for lease and expense analysis of a portfolio of about 200 retail stores and offices. Her col- lective analyses lead to the recovery of tens of thousands of dollars for the client and created future savings by cor- recting errors going forward Shaz leveraged this skillset to establish a consulting company which reduced oc- cupancy costs for numerous businesses. In addition, she has per- formed lease reviews and

financial analysis for prop- erty owners who have imple- mented her strategies to maximize revenue from their investments. For this reason, Shaz has become a trusted professional highly sought after by clients. “We believe she will be a great addition to the NAI DiLeo-Bram team”, said Robert Dileo, principal of NAI DiLeo-Bram. NAI DiLeo-Bram & its predecessor companies have been market leaders since 1937. The 4th generation company is the premier in- dependent full service com- mercial real estate company

in Central New Jersey. NAI DiLeo-Bram is celebrating its 80 year anniversary and has a team of over 40 accomplished real estate professionals and support staff dedicated to their clients’ success through unrivaled local expertise and global reach. As a completely integrated real estate services com- pany, NAI DiLeo-Bram & Co.’s success is attributed to their strong client relation- ships to their employees. The team is made up of over 40 professionals between the brokerage and property man- agement divisions, and each

team member serves a very important, integral purpose. “From the top to the bottom – everyone at the firm takes ownership for servicing the clients,” Greg Brown, man- aging director said. “We were recruiting a broker last week and I had no hesitation tell- ing him that we have, hands down, the best administrative staff in the Northeast.” Be- cause of this unique synergy, NAI DiLeo-Bram & Co. has the ability to think quickly, and act even quicker. Ear- lier this year, the firm was brought in to work on a dis- position assignment for C-III Capital Partners (the parent company of NAI Global). The 150,000 s/f multi-use asset was being serviced by C-III on behalf of the lender that owned the building. De- spite being on the market for nearly five years with another brokerage company, no deal was ever made. NAI DiLeo- Bram& Co. obtained the list- ing, contracted for, and closed on the asset within 100 days. The firmwas then retained as the listing agent to lease the building for the purchaser. The asset was 100% leased in 9 months from closing. The C- III deal is another example of the firm providing stability to clients by having the ability to remain flexible to market cycles and trends. The firm still stays true to their client first mantra. “From class ‘A’ space to the local neighbor- hood store – our success corre- lates to following the ‘Golden Rule’: provide services and respect to the client that you yourself would expect and demand,” said DiLeo. “We have been a part of our cli- ent’s success as much as they have been a part of ours.” NAI Global is the world’s only managed network of owner-operated commercial real estate brokerage firms providing a full-range of cor- porate real estate services, including brokerage and leas- ing, property and facilities management, real estate investment and capital mar- ket services, global supply chain consulting and related advisory services. Founded in 1978, today NAI Global member firms span, the US and 54 other countries, with 400 offices and more than 5,000 local market experts on the ground, completing $55 billion of transactions annually. n

the firm as vice presi- dent . The hire repre- s e n t s t he addition of a seasoned lease analy- sis profes- s i o n a l t o

Shaz Perrone

service clients in real estate transactions as the company continues to grow. Shaz comes to NAI DiLeo- Bram with an established career servicing a wide array

We Are Office Properties

100, 200 Metroplex Corporate Center Edison, New Jersey • 265,000 SF Office Campus • At Edison Rail Station • 20,000 SF available - will divide • Available units 2,000 -6,000 SF • Food service in buildings • Garden State Parkway, I-287, Route 27 and New Jersey Turnpike close by • Surrounding area amenities include hotels, banking, restaurants, and shopping

184 North Avenue East Cranford, New Jerse y

90 Woodbridge Center Drive Woodbridge, New Jersey • Class A 245,000 SF – 11 Story Office Building • At New Jersey Turnpike, Garden State Parkway and US Routes 1 and 9 • 20,500 SF available – will divide • On-site banking and ATM • New Café with outdoor seating • 10,000 SF Event Center • New A/C, elevators, restrooms, and attended lobby reception desk

• 7,500 SF Office Condo for Sale or Lease • 1,200 – 3,700 SF available immediately • 1 st Fl – 6 perimeter offices, large open area, conference room and kitchenette • 2 nd Fl – 7 perimeter offices, large open area, conference room and kitchenette • 19 car parking per condo • ½ Mile to Garden State Parkway Exit 137

• 226,000 SF - 2 Story Office Building • Large floor plate – Ideal for high density users. Parking + 8/1,000 SF • 150,000 SF available – will divide • Located at I-287 Exits 4 (Durham Avenue) and 5 (Stelton Road.) • Surrounded by shopping, restaurants and banking 5000 Hadley Road South Plainfield, New Jersey

Two Sylvan Way Parsippany, New Jersey

150 Morris Avenue Springfield, New Jersey

• 40,000 SF Office/Medical Building • At I-78/Route 24 • Available units 900 – 12,000 SF – will divide • Covered reserved parking • Downtown Springfield location with shopping, restaurants and banking • Close to Union County and Essex County Courthouses

• 56,000 SF – 3 Story Office Building • At Route 10, US Route 202 and I-287 • full floor available 18,700 SF – will divide • Other available units 1,700 SF – 4,300 SF • Common area upgrades to lobby, elevators & restrooms • New parking lot

1315 Stelton Road Piscataway, NJ 08854 naidb.com

For Further Information Please Contact Exclusive Broker: tel 732 985 3000

5,000 local commercial real estate market leaders.

55 countries.

400 local offices.

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