RED Continues Strong Growth with Construction Loan for EB-5 Eligible Senior Housing Development
R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news Columbus, OH Nov. 11, 2015 – RED Capital Partners, LLC, the proprietary debt and equity banking arm of comprehensive capital provider RED CAPITAL GROUP, LLC, recently lead a $36.4 million first mortgage construction loan to Homestead Senior Living LLC. The balance of the capital stack was provided by an institutional private equity group and Regional Capital Group, which will provide EB-5 Financing, along with sponsor’s equity. Pike Senior Housing Partners LLC, based in Paterson, NJ, partnered with Solvere Senior Living (an affiliated company of Solutions Ad isors LLC), based in Princeton, NJ, to dev lop the community. Homestead at Hamilton will be a 195-unit, Class A seniors housing community l cated in Hamilton, NJ, utside of Princeton and appr ximately a hour from New York City. The community will consist of 96 independent living units, 75 assisted living units and 24 memory care units. RED continues growth with loan for EB-5 eligible senior housing development RED arranges $36.4m construction loan for Homestead Senior Living LLC
ISSUE HIGHLIGHTS Volume 27 Issue 22 Nov. 27 - Dec. 10, 2015
AMILTON, NJ — RED Capital Part- ners, LLC , the debt and equity banking arm of comprehensive capital pro- vider RED Capital Group, LLC , recently lead a $36.4 million first mortgage con- struction loan to Homestead Senior Living LLC. The bal- ance of the capital stack was provided by an institutional private equity group and Regional Capital Group , which will provide EB-5 Fi- nancing, along with sponsor’s equity. Pike Senior Housing Partners LLC , based in Paterson, NJ, partnered with Solvere Senior Living (an affiliated company of Solu- tions Advisors LLC ), based in Princeton, NJ, to develop the community. Homestead at Hamilton will be a 195- unit, class A senior housing community located in Ham- ilton, outside of Princeton and approximately an hour H
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Homestead at Hamilton
from New York City. The community will consist of 96 independent living units, 75 assisted living units and 24 memory care units. The project has a highly complex and structured capi- tal structure, including an interim, bridge-to-EB5, mez- zanine lender. Due to the timing and uncertainty of the EB5 program, the borrower wanted maximum flexibility. Through creative structuring, RED Capital Partners worked closely with the borrower and other credit partners to achieve this goal. The project has a highly complex and structured capital structure, including an interim, bridge- to-EB5, mezzanine lender. Due to the timing and uncertainty of the EB5 program, the borrower wanted maximum flexibility. Through creative structuring, RED Capital Partners worked closely with he borrower a d other credit pa tners to achieve this g al. “The creativity, flexibility and perse eranc of the e tire RED team was outstanding. This ransaction presented unique challenges through the underwriting process,” stated David Weiner, Principal, Pike Seniors Housing Partners, LLC. Kristin Kutac Ward, Principal, Solvere stated, "As we continue to grow our management arm, Solvere S nior Living, we feel fortunate to have a part er in RED that believes in our vision and facilitate our growth.” “The creativity, flexibility and perseverance of the entire RED team was outstanding. This transaction presented unique challenges through the underwriting process,” said David Weiner , principal, Pike Seniors Housing Part- ners, LLC. Kristin Kutac Ward , prin- cipal, Solvere said, "As we continue to grow our manage- ment arm, Solvere Senior Liv- ing, we feel fortunate to have a partner in RED that believes in our vision and facilitate our growth.” “It’s always rewarding to
work with a partner on a com- plex structured deal like this opportunity,” said Kathryn Burton Gray , senior manag- ing director for RED. ”We are very pleased that we were able to provide a customized solution for the team at Home- stead Senior Living. James Scribner , manag- ing director for RED said, “I’ve worked with several princi- pals involved in Homestead over the years and am excited to see this project come to fruition. Each of the partners brings tremendous strength to the team.” n had the ability to upgrade the asset considerably with the implementation of a capital improvement plan,” said Wei- lheimer. “The multifamily market is so hot in New Jersey that the value of this property was increasing every day the prop- erty was under contract,” said Greenberg. “The purchaser is very familiar with the market, which confirmed his decision to acquire this asset.” Jamestowne Village is lo- cated just north of Rte. 37, approximately five miles west of the Atlantic Ocean, 56 miles north of Philadelphia and 73 miles south of New York City. Toms River and Ocean County are among the fastest growing municipalities and counties, respectively, in New Jersey. As of the 2010 United States Census, the county population increased 12.8% from the 2000 Census to become the fifth- most populous county in the state. n
Section C
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Kislak completes $35.2m sale of Jamestowne Village Apartments in Toms River, NewJersey
TOMS RIVER, NJ — The Kislak Company Inc. an- nounced the recent $35.2 million sale of Jamestowne Village Apartments in Toms River, Ocean County. Senior vice president Matt Wei- lheimer represented the seller, co-managing director Jeffrey Wiener and vice
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Jamestowne Village Apartments
The property was constructed between 1969 and 1971, and 90% of the units have been renovated. The sale of Jamestowne Vil- lage is the single largest sale of a multifamily property in Ocean County, New Jersey in terms of price since 2011 based on data available fromCoStar. “The seller was able to maxi- mize value, while the purchaser
president Jonathan Green- berg together represented the purchaser, JP Manage- ment, and chief operating officer Jason Pucci provided transaction management and support. The property includes 282 one- and 56 two-bedroomunits in 24 two-story brick garden style buildings with semi- private entrances on 16 acres.
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C ommercial R eal E state O rganizations ’ E vents C alendar
DECEMBER 1 – CORENET GLOBAL Mid-Atlantic Chapter 2015 Annual Holiday Party Time: 6:00 PM – 9:00 PM Location: Long View Gallery Address/City: 1234 9th St., NW, Washington, DC www.corenetglobal.org DECEMBER 1 – IREM NJ Holiday Dinner, Toy Drive & Installation of 2016 Officers Time: 5:30 PM – 8:00 PM Location: Twin Brooks Country Club Address/City: 600 Mountain Blvd., Watchung, NJ Cost: $65 Members $85 Nonmembers P: 973-561-8855 www.irem1.org DECEMBER 1 – ULI PITTSBURGH Event: WLI Inaugural Reception Time: 5:30 PM – 7:30 PM Location: Reed Smith Centre Address: 225 Fifth Ave., 12th Floor, Pittsburgh, PA P: 724-687-0707 E: holly.muchnok@uli.org www.pittsburgh.uli.org DECEMBER 2 – BOMA NJ Event: Annual Holiday Celebration Time: 6:00 PM – 9:00 PM Location: The Conservatory at the Madison Hotel Address/City: Morristown, NJ Cost: $150 Members $185 Nonmembers E: boma-nj@optimum.net www.bomanj.org DECEMBER 2 – CIANJ Event: Generation Now: Millennial Survival Guide “Health and Wellness” Time: 6:30 PM – 8:30 PM Location: Wilshire Grand Address: 350 Pleasant Valley Way, W. Orange, NJ P: 732-780-1986 Cost: Members Free with a toy/$45 Nonmembers & www.poanj.org DECEMBER 2 – SMPS CENTRAL PA 4th Annual Member Meeting and Holiday Social Time: 5:00 PM – 7:00 PM Location: Cornerstone Coffeehouse Address/City: 2133 Market St., Camp Hill, PA www.smpscentralpa.org DECEMBER 2 – ULI PITTSBURGH Event: 2016 TRENDS Emerging Trends in Real Estate featuring Kathleen Carey Time: 8:00 AM – 10:00 AM Location: Rivers Club Address/City: 301 Grant St., 4th Fl, Pittsburgh, PA P: 412-391-5227 www.pittsburgh.uli.org DECEMBER 3 – BOMA PITTSBURGH Event: Holiday Party Time: 11:30 AM – 2:00 PM Location: Grand Hall at The Priory Address/City: 614 Pressley St. Cost: $55 P: 412-261-2328 E: office@bomapgh.org www.bomapittsburgh.org Time: 6:00 PM – 8:00 PM Location: Lakeland Bank Address/City: 417 Cedar Ln., Teaneck, NJ Cost: $25 P: 201-368-2100 E: ehallock@cianj.org www.cianj.org DECEMBER 2 – POA NJ Event: Holiday Networking Party & Toy Drive
DECEMBER 3 – CIANJ Event: Holiday Networking & Open House Time: 5:30 PM – 7:00 PM Location: Mack-Cali Center IV, Atrium CIANJ Office Address/City: 61 South Paramus Rd., Paramus, NJ Cost: $20 P: 201-368-2100 E: ehallock@cianj.org www.cianj.org DECEMBER 3 – CREW BALTIMORE Event: 30th Anniversary Celebration Time: 6:00 PM – 9:00 PM Location: Miles & Stockbridge Address/City: 100 Light St., 5th Fl., Baltimore, MD E: joshual@crewnetwork.org www.crewbaltimore.org DECEMBER 3 – NAIOP PITTSBURGH Event: Holiday Party Time: 5:30 PM – 7:30 PM Location: The Duquesne Club Address/City: 325 Sixth Ave., Pittsburgh, PA Cost: Members Free/$50 Nonmembers P: 412-928-8303 E: info@naioppittsburgh.com www.naioppittsburgh.com DECEMBER 4 – ABC NJ Event: Holiday Party & Board Installation Time: 6:00 PM – 9:00 PM Location: Boogie Nights Address/City: 2831 Boardwalk, Atlantic City, NJ E: sschlags@njpsi.com www.abcnjc.org DECEMBER 4 – EDANJ Event: Holiday Party & Franklin-Maddocks Awards Time: 11:00 AM – 2:00 PM Location: The Palace at Somerset Address/City: 333 Davidson Ave, Somerset, NJ Cost: $85 Members $100 Nonmembers P: 609-781-6051 www.edanj.com DECEMBER 4 – NAIOP NJ Event: Seminar: Transportation & Logistics Update Time: 7:45 AM – 11:00 AM Location: NYSA Training Center Address/City: 1210 Corbin St., Elizabeth, NJ Cost: $95 Members $125 Nonmembers www.naiopnj.org DECEMBER 4 – NAWBO DE Event: First Friday: Come Celebrate You! Time: 9:00 AM – 10:30 AM Location: Ivy Gables Address/City: 2210 Swiss Ln., Wilmington, DE Cost: Members Free/$20 Nonmembers E: info@nawbowdelaware.org www.nawbodelaware.org Address/City: 1 Crest Dr., West Orange, NJ Cost: $100 Members $130 Nonmembers E: info@ioreba.com | www.ioreba.com DECEMBER 7 – SMPS PITTSBURGH Location: Ten Penny Downtown Pittsburgh Address/City: 960 Penn Ave, Pittsburgh, PA Cost $25 Members $35 Nonmembers P: 412-304-2885 www.smpspittsburgh.org Event: Annual Holiday Party Time: 5:30 PM – 7:30 PM DECEMBER 7 – IOREBA Event: Annual Holiday Party Time: 6:00 PM – 9:00 PM Location: Highlawn Pavilion
DECEMBER 8 – SMPS CENTRAL PA Event: Webinar: Proposal Essentials: Putting Your Best Foot Forward to Get That Foot in the Door Time: 8:00 AM – 10:00 AM Location: Harrisburg, York, and State College Cost: $25 Members $40 Guests www.smpscentralpa.org DECEMBER 8 – ULI PHILADELPHIA Event: Annual Holiday Party Time: 5:30 PM – 7:00 PM Location: Vesper Address: 223 Sydenham Street, Philadelphia, PA Cost: $55 Members $75 Nonmembers P: 800-321-5011 www.philadelphia.uli.org DECEMBER 9 – CIRC DE Event: Annual Holiday Luncheon Time: 11:30 AM – 1:30 PM Location: University & Whist Club Address/City: 805 N. Dupont St., Wilmington, DE Cost: $45 Members $55 Nonmembers P: 302-633-1705 E: janet@circdelaware.org www.circdelaware.org DECEMBER 9 – MARE JOURNAL 2015 Healthcare & Medical Properties Conference Time: 8:00 AM – 12:00 PM Location: Sheraton Parsippany Address/City: 199 Smith Rd., Parsippany, NJ P: 781-871-5298 E: lchristman@marejournal.com www.marejournal.com DECEMBER 9 – USGBC NJ Event: Greening Garden State Schools & Colleges: Building & Operations Time: 7:30 AM – 12:45 PM Location: Waterfront Technology Center at Camden Address/City: 200 Federal St., Camden NJ Cost: $40 Members $50 Nonmembers www.usbgcnj.org Location: Top of the World-Baltimore Trade Center Address: 401 E. Pratt St., 27th Fl., Baltimore, MD P: 443-322-1115 E: lcook@mmhaonline.org www.irem16.org DECEMBER 10 – NJBA Event: 2015 Building Code Update Time: 9:00 AM – 12:00 PM Location: Woodard and Curran Auditorium Address/City: 50 Millstone Rd., East Windsor, NJ www.njba.org DECEMBER 10 – IREM MD Event: 2015 Annual Holiday Party Time: 4:30 PM – 8:30 PM
DECEMBER 10 – SIOR NJ Event: Holiday Party Time: 5:00 PM – 8:00 PM Location: The Huntley Tavern Address/City: 3 Morris Ave., Summit, NJ www.siornj.com
DECEMBER 11 – CREW LEHIGH VALLEY Event: Annual Holiday Luncheon Time: 11:30 AM – 1:00 PM Location: Lehigh Country Club in the Great Hall Address/City: 2319 S. Cedar Crest Blvd., Allentown, PA
Cost: $35 Members Only www.crewlehighvalley.org
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American Architectural Window & Door......... 1B Arrow Steel...................................................... 18B Azarian Realty Co.. ..................................... IBC-C Bennett Williams Commercial........................ 15C BL Companies.................................................. 11C Bohler Engineering. .......................................... 3C Bussel Realty Corp.......................................... 10A Capitol Aerials................................................. 17B Crystal Window & Door Systems..................... 9B DesignPoint........................................................ 8A E.B. Cohen......................................................... 4B Earth Engineering inc....................................... 6B Elliott-Lewis. ................................................... 10B Fowler. ............................................................. 22B Friedman LLP. .................................................. 3B Gerard Construction Corp.. ............................ 14C Hillcrest Paving & Excavating....................... 17A Hillmann Consulting......................................... 6C Hollenbach Construction................................... 8B Hutchinson Mechanical Services...................... 5B Integrated Business Systems. ........................ 23B Integrity Graphics............................................. 3A Investors Real Estate ..................................... 17A IREM................................................................ 21B Jardim, Meisner & Susser, PC....................... 12B Jewel Electric Supply CO................................ 17B JJ Operating.................................................... 10C Kaplin Stewart. ................................................. 9A Kay Realty. ...................................................... 17A Keast & Hood..................................................... 3A Keystruct Construction................................... 13B LEW Corporation. ............................................. 6A M. Miller & Son................................................. 5B March Associates Construction........................ 9C Marcus & Millichap.............................. 17A, BC-C Martin Architectural......................................... 2C Meridian Capital Group................................BC-A Metropolitan Valuation Services...................... 7A NAI Summit..................................................... 17A Nassimi Realty. .............................................. IC-C NK Architects.................................................. 11A NorthMarq Capital............................................ 4A P. Cooper Roofing. .................................. 7C, BC-B Poskanzer Skott Architects............................... 2B Premier Compaction Systems......................... 16B RD Management......................................... 12-13C Silbert Realty &Management Company.......... 5C Specialty Building Solutions........................... 14B Stark & Stark.................................................... 8C Subway............................................................... 4C The Henley Group.......................................... IC-B Total Cleaning Associates................................. 3B Vandemark & Lynch....................................... 11B Warner RE & Auction....................................... 4A MAREJ A dvertisers D irectory
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M id A tlantic R eal E state J ournal Publisher .................................................................Linda Christman Publisher ....................................................................Joe Christman Senior Editor/Graphic Artist ..................................... Karen Vachon Production Assistant ........................................................ Julie King Associate Publisher ................................................. Alissa Aronson Associate Publisher .............................................. Barbara Holyoke Office Manager .........................................................Joanne Gavaza Contributing Columnist . ...................................... Frank Romeo, Jr. Mid Atlantic R eal E state J ournal ~ Published Semi-Monthly Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 312 Market St. Rockand, MA 02370 USPS #22-358 | Vol. 27 Issue 22 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
T he demand for urban space is continuing to surge among this new generation of consumers. Developers and building own- ers are continuing to pursue adaptive reuse opportunities as a solution to meet this demand and give new life to an ever-increasing inventory of abandoned and obsolescent structures. The practice of adaptive reuse is not new, but as urban areas have seen a resurgence of interest and popularity, it has become nec- essary for developers, owners, and investors to consider this as a viable option in order to get a foothold in these areas. While adaptive reuse is an at- tractive option due in part to the fact that it is generally a faster more cost effective way to get a ‘new’ building up and running, it also offers signifi- cant opportunities for energy efficiency and sustainability measures. Sometimes the building with the best opportunity to be considered “green” is one that is already built. At the most basic level, adaptive reuse is the greatest example of the recycling culture. Materials like wood and metals can be preserved, energy and re- sources necessary to demolish the building, like manpower, fuels, and CO2 emissions, can be conserved and environ- mental disturbances can be avoided. In some cases, these materials may, be of a higher, more sustainable quality than those that would be used for new construction. Operational Efficiency Over time, buildings are subject to performance deg- radations, changes in use, malfunctions or other system Materials and Energy Output The sustainability aspect of adaptive reuse Frank Romeo, Jr.
The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
issues. As a result, these sys- tems experience deterioration in function, an inefficiency in operation or unacceptable thermal conditions, which can account for a significant amount of wasted energy consumption. Considering that many buildings being repurposed were built well be- fore current energy efficiency codes were in place, sometimes simple fixes can restore the functionality and increase the energy savings with these large building systems. If you are retrofitting your building’s infrastructure, a simple tune up to get your systems back up and running effectively can pay for itself in one year. Easy Solutions with Quick Returns Some quick and easy sus- tainability upgrades with great ROI for adaptive reuse projects include switching existing light fixtures out for energy efficient LED lighting, using optimizing/program- mable building controls ceiling fans or installing low-flow fix- tures. Building envelopes can be retrofitted with building fabric, window shading/glaz- ing or air tightening measures to greatly reduce the heating and cooling system demands. Funding and Incentives There are many sustain- ability incentives and funding opportunities available which
can be utilized by developers, owners and investors. One funding source, dsireusa.org, lists over 2000 energy and sustainability grants, loans, and incentive programs by state and type, and also lists all of the regulatory policies for these improvements. In the state of New Jer- sey, public utility company, PSE&G, has created its own energy efficiency program which will benefit a variety of building types and customers who otherwise might not make the investment in energy effi- ciency measures due solely to the fact that they cannot afford the up-front costs, or the wait for ROI. The market demand for sus- tainably responsible space will continue to grow exponentially as more and more programs and incentives become avail- able for developers and own- ers. Greater tenant retention, the ability to demand higher rental rates and greater re- turn on assets and equity can all result from implementing sustainability measures in your adaptive reuse projects. Frank Romeo, Jr. is prin- cipal of Partner Engineer- ing and Science, Inc., a national engineering, en- vironmental and energy consulting firm serving the commercial real estate industry. n
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M id A tlantic R eal E state J ournal Fund II will acquire office, retail, multi-family & ind. Rock Creek Property Group closes $60 million Fund II
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investment climate and our platform continue to evolve, we determined that it is more beneficial to our investors to mix development and oppor- tunistic plays within the same investment vehicle as income- producing assets.” Rock Creek will continue to focus on the DC region, where its four principals each have more than 25 years of experi- ence. “We have been involved in many real estate cycles over the years and developed a unique niche,” Schlager said. “We have experience across all major product types, which allows us to both avoid tunnel- vision investing and to hone in on the highest and best use for each asset, sometimes in less obvious ways.” This investment strategy has served Rock Creek well over the past few years, with its redevelopment of office buildings at 1100 16th St., NW, and 1438 U St., NW, along with the joint-venture development of multi-fami- ly assets including Takoma Flats, an 88-unit gut renova- tion in DC, and The Shelby, a 240-unit, class A ground-up
development in Alexandria. Rock Creek’s Fund II is already off to a successful start, having acquired three projects, including the joint- venture acquisition of 646-654 H St., NE, in Washington’s emerging H Street Corridor. This property is located on a prime corner next to a Whole Foods that is under construc- tion, and where Rock Creek will develop a mixed-use proj- ect. Rock Creek’s Fund II has also acquired two turn-around office/retail plays at 1413- 15 22nd St., NW, in Dupont Circle, and 6833 4th St., NW, two blocks from the Takoma Metro station. Rock Creek anticipates that a portion of its deal flow in Fund II may be strategic joint ventures with other operators. Glick emphasized that “Rock Creek provides much more than just capital. We make projects better and more profitable for our part- ners by filling in the gaps where needed, providing a full platform of development and investment services to help maximize value on each investment.” n
A S H I N G T O N , DC — Principals of Rock Creek Prop-
erty Group announced that they have successfully closed on their second real estate fund, in which they raised $60 million. Fund II will acquire office, retail, multi-family and industrial properties through- out the Greater Washington, DC region. As with Rock Creek’s Fund I, launched in 2010, Fund II will continue to invest primarily in the $3 million to $30 million “middle-market” space, tar- geting development projects, value-added opportunities and strategic joint ventures. In addition, Fund II will look to acquire well-located, income- producing assets which have the potential for long-term appreciation. “Not every property will be developed or acquired with a goal to exit in the short term,” said Rock Creek principals Gary Schlager and Andy Glick . “Lessons learned from Fund I, and our current deal flow both support the premise that certain assets should be held longer term. As the LIVINGSTON, NJ — Eisenhower Corporate Cam- pus continues to expand its onsite amenities with the recent addition of Hills Fit Studio, Northern New Jer- sey’s indoor cycling studio. Livingston-based Hills Fit relocated to the 380,000 s/f class A office property in early November, providing tenants and employees – as well as area residents – with another distinct option for achieving their health and fitness goals. The building’s fitness amenities also include a tenant-only fitness center, one-on-one personal training at It’s Beyond Fitness and appointment-only massage services from New Jersey Massage. Located at 290 West Mount Pleasant Ave., Eisenhower Corporate Campus is owned and managed by Eastman Companies of Livingston, along with its joint venture partner LongWharf Real Es- tate Partners of Boston, MA. “Eisenhower Corporate Campus is a wonderful fit for our studio,” said owner Hill- ary Schumer. “Our new space allows us to serve existing
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clients in a more efficient set- ting while introducing Hills Fit Studio to a whole new customer base.” Ei senhower Corporate Campus is comprised of four interconnecting buildings set on 33.5 acres. Campus ame- nities include a full-service cafeteria with catering ca- pabilities, 24-hour security, electric car charging stations and a 600-vehicle parking structure with LED light- ing and enhanced security features. “Top-tier office buildings that offer a variety of first- rate amenities continue to at- tract – and retain – tenants in search of flexible, convenient
work environments,” accord- ing to Michael Schofel , Eastman’s co-managing part- ner. “The addition of Hills Fit Studio – in combination with our professionally supervised tenant-only fitness center and personal training at It’s Be- yond Fitness – significantly raises the bar for corporate health and fitness offerings. ” Ei senhower Corporate Campus offers tenants di- rect access to Route 280 and is easily accessible to inter- states 78, 80, 287, the Garden State Parkway and Newark Liberty International Airport. Garibaldi Group/CORFAC International is leasing agent for the property. n
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M id A tlantic R eal E state J ournal CEVA Logistics is leasing 125,000 s/f of space HHA welcomes tenant to Twin Spans Business Park
Better relationships. Better results.
$51,844,000 EXCELSIOR II HACKENSACK, NJ | 267 UNITS | FREDDIE MAC
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EW CASTLE, DE — Harvey, Hanna & Associates, Inc.
(HHA) is pleased to welcome CEVA Logistics to the Twin Spans Business Park in New Castle. CEVA Logistics is cur- rently leasing 125,000 s/f of warehouse, office and distri- bution space at 800 Ships Landing Way in the Twins Spans Business Park (TSBP) in New Castle. At the Twin Spans site, CEVA will dedicate its entire space at 800 Ships Landing Way to meeting and fulfilling logistical and supply chain
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Twin Spans Business Park
requirements for a multi- national conglomerate serv- ing agricultural, industrial and consumer markets. “We are excited to welcome CEVA Logistics to New Cas- tle, as freight management and logistics activities are a natural fit at Twin Spans,” said Thomas Hanna , HHA COO. “CEVA’s partnership with its major customer is bringing more quality jobs to Delaware, and we are proud to further the success of these two world-class or- ganizations,” Hanna added. TSBP features 1.85 mil- lion s/f of class A commercial warehouse space spread across 135 acres of land along the Delaware River. Twin Spans offers immediate access to I-95, I-295, I-495 and the Delaware Memorial Bridge. n NAI Commercial Partners announces $4.2m ind. sale LANCASTER, PA — NAI Commercial Partners, Inc. announced the sale of an
i n d u s t r i a l b u i l d i n g comprised of 144,620 s/f. The building is located at 1 2 7 5 / 1 2 7 7 M a n h e i m Pike in Lan- caster. The
NJ and PA Licensed Real Estate Broker Warner Real Estate & Auction Company, Inc. 53 East Avenue Woodstown, NJ 08098 Ph: (856) 769-4111 Website: www.WarnerRealtors.com
Tom McDermott
property sold for a price of $4.2 million. Tom Mc- Dermott, CCIM, SIOR of NAI Commercial Partners, Inc. represented the buy- ers, Hess Brothers, LLC and Brian Hilger of Cushman &Wakefield represented the Sellers, Delmarva Millwork Corporation. n
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Steven J. Schleider Metropolitan Valuation Services
Lee Wasserman LEW Corporation
Mohammad Ghiasuddin Kaplin | Stewart
Les McCoy DesignPoint, Inc.
Jordan Metz Bussel Realty Corp.
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E nvironmental C onsulting
fter January 1, 2016, if you have any intention of performing or pro- By Lee Wasserman, LEW Corporation Thanksgiving, Christmas, New Year’s Eve & New York State Mold Regulations become the Law! A
State Regulation, (Chapter 551, Section 1, Article 32). By State definition, you will be required to be licensed prior to such services! Home Inspectors will be required to be licensed if their inspections and reports include an assessment of mold and/or moisture intrusion con- ditions in the home or property in question, or they offer to do any mold testing. There are some exemptions, but for those who are not exempt you must be certified by January 1, 2016!! There has been some discussion of accepting the MRS and CMP certifications for mold remediation and mold
testing, issued by Institute of Inspection, Cleaning and Res- toration Certification (IICRC) provided it is issued within two years of the additional four (4) hour New York State regula- tory required summary course. Additionally it should be noted that the MRS and CMP certifi- cation would only be valid for exemption through March 4, 2016. After that the expecta- tion is a New York State issued Certification is required. With less than 45 days left before the law becomes effec- tive it becomes critical that you follow the below guidance steps to obtain the proper
Mold Assessor, Remediation Supervisor, and Remediation Worker State required certifi- cation/licensure, especially if your business is mold testing or mold remediation. Steps to obtain a Mold li- cense: 1.Attend a DOL approved Mold Assessor course. Ap- proved training providers can be found on the DOL website. 2.Pass the course. Full at- tendance is required. 3.The training provider for the course will issue a cer- tificate of completion to the licensee. 4.Licensee will then submit
the application form, appropri- ate fee, and a copy of the certifi- cate of completion to the DOL. 5.The DOL will issue the Mold Assessor license, which is valid for two years. As of the date of this article, New York Department of La- bor has approved eleven (11) training providers to teach the 32 hour Mold Assessor course, nine (9) entities approved to teach the 24 hour mold Reme- diation Contractor Course, and there are eight (8) entities who are approved to teach the 16 hour Mold Abatement Worker course. All can be found at: http://labor.ny.gov/worker- protection/safetyhealth/mold/ mold-training-providers.shtm During the courses students may be educated on following topics depending on which discipline they are attending; Moisture/Mold Sources, condi- tions and Prevention of Mold Growth, Potential Health ef- fects, PPE, Technical and Legal considerations, Performance of a Mold Assessment and instrumentation usage, Sam- pling methods, Mold Testing, building sciences and moisture control, HVAC systems, data interpretation, writing mold management plans, Liability and Insurance costs associ- ated to Mold services, Work Practices for safety of mold removal, Mold Remediation, cleaning and treating mold, worker protection as well as Respiratory protection, State of the Art remediation practices, and mold clearance sampling. So what does this all mean? It means that as of January 1, 2016 you are required to have a New York State Department of Labor Mold assessor or re- mediation license. If you offer services of Mold and Moisture assessment, mold testing or moisture/ mold removal and do not have a New York State Department of Labor issued mold certification you would be in violation of law and could be held accountable! If in violation of the licensure requirement you would also be considered negligent in a legal proceeding if an action was ever brought against you by a customer or an employee. So, to assure you do not violate the law, and to reduce the risk of a mold litigation claim being brought against you, get certi- fied prior to offering any mold or moisture related services in the State of New York. For more information contact Lee E. Wasserman, at info@lewcorp.com. n
viding a mold or moisture inspection or assessment for real prop- erty that is des i gnat ed to discover mo l d , c on - ditions that
Lee Wasserman
facilitate mold, indication of conditions that are likely to facilitate mold or any com- bination thereof, you will be performing a, “Mold Assess- ment,” as defined by New York
Lead • Asbestos • Mold • IAQ Tanks • Radon • ESAs • Healthy
Homes and more “With LEW Corporation you get the best! Over 20 years experience, unsurpassed service, national relationships and recognized expertise.”
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The Lead-Safe EPA Certification for your company is valid for 5 years. Be aware of your expiration date! Submit your re-certification application at least 90 days before your expiration date. LEW Corporation is the MOST recognized environmental lead-based paint entity in the country. LEW trained over 20,000 prior RRP students in Spanish & English.
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Real Estate Journal — Professional Services — November 27 - December 10, 2015 — 7A
www.marejournal.com
M id A tlantic
V aluations
he first article I wrote about green buildings was published four By Steven J. Schleider, MAI, FRICS, LEED-AP BD + C, Metropolitan Valuation Services The Green Premium on Building Value T on energy efficiency only.
seem, however, that in a static model tenants are willing to pay a premium for energy efficiency. Moreover, the premium related to energy rating increases with the level of certification which seems to suggest that the more efficient a building is the larger the value created.” As a green building apprais- er, I have found sustainability metrics have become more important in commercial prop- erty investment decisions. We are seeing a marked increase in commercial appraisal as- signments where green tech- nologies are noted with signifi- cance in the initial Request for
(valuation work) Proposal stage. As research continues to grow, the green building revo- lution has become a steady and assured evolution. We have reached a critical mass of profit and not-for-profit propo- nents, sustainability-educated and experienced professionals, government mandates and client/tenant preferences to say that we are traveling the right road toward the destina- tion of living a healthier, more sustainable life. Steven J. Schleider, MAI, FRICS, LEED-AP BD + C is president of Metropolitan Valuation Services. n
“Measuring Green Value: An International Perspective” which studied the U.S. as one of three core markets including the “rapidly growing body of research on the economic value of certification premium in the office market.” Their findings said there is a “significant rental premium and increase in market value (selling price) as well as a corresponding discount in utility expenses.” The report also showed an interesting juxtaposition. “As in an energy efficient building the charges are expected to be low- er, the difference can be passed on to the customer. It would
The number of LEED-cer- tified buildings in New York City and especially Manhattan office buildings has increased exponentially. Most are Silver or Gold certified but there is a smattering of Platinum includ- ing The Solaire (the first eco- advanced residential building in the U.S. which I appraised twice); Tiffany &Co.; Skanska; Chase, among others; and the big daddy of them all, One Bry- ant Park, the first Platinum LEED skyscraper. The Royal Institution of Chartered Surveyors (RICS) published a report entitled
y e a r s a g o . Its timing re- flected a “per- fect storm of eco-laws” in- cluding New York City’s then new Lo- cal Laws 84, 85, 87 and 88.
Steven Schleider
I put forth the opinion that going green increases property value and referenced a “grow- ing body of evidence” to support that educated opinion. But in 2011, although it was growing, there wasn’t much evidence available. Green was still new. The results of decreased opera- tional costs and increased rents and building value had yet to be deeply researched, which is why my article received consid- erable attention, even winding up for sale on amazon.com. I wrote then that “Measure- ment standards, a larger com- pilation of hard data, sales and lease market reports, studies and an understanding of how sustainability doesn’t often show up in depreciation ac- counting, will all come into play in the accurate valuation of green properties.” Now, at the end of 2015, I’m still certain going green increases property value ex- cept now there are in-depth research and evaluation stud- ies, years of supportive data and numerous books on the subject of green building and value. My opinion is no longer a stretch, but proven reality. In 2013, the World Green Buildings Council published a detailed 124 -page report, a compilation of research from numerous studies. Among its findings were green buildings need not cost more than conventional buildings; it was getting less expensive to build green; supply chains are more able and adept; and, while a less visible financial benefit, green buildings provide greater health and productivity. The study also said green buildings make more money for owners. This was also my opin- ion in 2011 as New York City’s only LEED-AP BC+D commer- cial real estate appraiser. Certifications, primarily LEED and Energy Star, have made a huge difference in cat- egorizing green and energy sav- ings benefits. While LEED in- cludes all aspects of a building’s eco profile including energy efficiency, Energy Star focuses
Commercial Real Estate Valuation Market Studies Martin B. Levine, MAI – Chairman Steven J. Schleider , MAI, LEED-AP BC+D - President
Feasibility Analysis Trusts and Estates Litigation Support
METROPOLITAN VALUATION SERVICES, INC. 44 East 32nd Street, New York, New York 10016 Phone (212) 213-8650 • Fax (212) 213-8621
8A — November 27 - December 10, 2015 — Professional Services — M id A tlantic
Real Estate Journal
www.marejournal.com
I nterior D esign Five medical practices are linked together by a common design theme DesignPoint provides interior architecture and design for Valley Medical Group
IDGEWOOD, NJ — In 2014, The Valley Hospital of Ridgewood purchased a 150,000 s/f medi- cal office building and decided the facility’s 24,000 s/f third floor would be home to Val- ley Heart Group, Heart Care for Women, Hospital Heart Risk and Screening Program, Comprehensive Heart Care Imaging Services and a Re- spiratory Care Practice. Col- lectively, these five specialties created the Michael Luckow Heart Center, named after a man who passed away from a heart attack at the young age of 44. The Luckow Family R
Valley Medical Group at Parkview Plaza, Ridgewood
Foundation gifted the hospital with $5 million to establish the Center in Michael’s name. Robert Luckow, Michael’s un- cle said “This Center, named in memory of Michael, will ensure that our community has access to state-of-the art cardiac services in one conve- nient location.” The challenge was to create a space for these five unique but complimentary practices; to be contiguous, but separate. Valley Medical Group gave the interior design challenge to Design- Point in Bethlehem, PA. “The third floor space was previously occupied by a fi- nancial services group, and it was a complete renovation, tearing everything out leav- ing only the main structure,” said Les McCoy , president of DesignPoint. “We started with a fresh canvas and provided the complete interior archi- tecture and design for the new Center.” The design process com- menced with meetings with the key practices of Cardiology and Imaging at their exist- ing locations. McCoy and his team interviewed physicians, nurses, office staff and other health professionals. They analyzed how the practices worked, what they liked and disliked about their current facilities. McCoy guided the hospital leadership through an evaluation of the floor space of the new Center, testing space plans and workflow. The center also includes a public meeting room with teaching kitchen to host class- es on nutritious cooking and eating. Besides cooking classes a yoga studio was also includ- ed to teach mental control and well-being for creating a sense of inner peace, harmony, and clarity of mind. n
“Interior design is a combination of analytical and artistic talents, and it takes a unique firm to handle both concepts well.” — Les M. McCoy, IIDA
54 S. Commerce Way, Suite 110 Bethlehem, PA 18017
610-807-9670 www.designpoint-interiors.com
Real Estate Journal — Professional Services — November 27 - December 10, 2015 — 9A
www.marejournal.com
M id A tlantic
C onstruction L itigation By Mohammad A. Ghiasuddin, Esq., Kaplin|Stewart Managing risk of faulty workmanship remains challenging under PA law
R
isk mitigation is a key focus in construction management , and
The Court relied on several recent decisions, including the Third Circuit Court of Appeal’s decision in Zurich v. R.M. Shoemaker et al. (3d Cir., 2013), which found that “faulty workmanship under a contract is not sufficiently fortuitous” to meet the defini- tion of “occurrence” under a general liability policy. The Third Circuit explained that “the crucial inquiry dictating whether a general liability insurer must defend its in- sured under an occurrence- based policy is whether an event was sufficiently for- tuitous from the perspec-
tive of the insured to qualify as an ‘occurrence’.” That is, occurrence-based gen- eral liability policies are not generally intended to cover claims arising from failure to perform contractual obliga- tions. Both the Third Circuit and the State Farm Court relied heavily on an earlier Pennsylvania Supreme Court opinion, Kvaerner Metals Div. of Kvaerner U.S., Inc. v. Com- mercial Union Ins. Co. (Pa. 2006) and a 2007 Pennsylva- nia Superior Court opinion, Millers Capital Insurance Co. v. Gambone Brothers Development Co. in reaching
their conclusions. The State Farm Court clarified that “[r]egardless of whether the claims are phrased as negli- gence, breach of warranty or breach of contract claims, the underlying litigation concerns faulty workmanship” and that therefore coverage was not triggered. Given the state of the law in Pennsylvania, mitigation against the risk of faulty workmanship remains a se- rious challenge for contrac- tors and construction man- agers. Care must be given in attempting to meet that challenge, and construction
professionals should seek the advice of their lawyers and brokers in considering other tools to help manage that risk. Mohammad A. Ghiasuddin is a principal of Kaplin Stew- art and a member of the Con- struction Law and Business & Commercial Litigation de- partments. Mr. Ghiasuddin’ s litigation practice involves representation of a variety of businesses in the con- struction industry, including developers, general contrac- tors, constructionmanagers, trade contractors, design professionals, insurers and bonding companies. n
many con- tractors and c o n s t r u c - tion manag- ers attempt t o re l y on occurrence- based gen- eral liabil- ity insurance po l i c i e s t o help manage
Mohammad Ghiasuddin
that risk. However, when it comes to the risk of claims arising from faulty work- manship, reliance on such policies is often misplaced. Although the question of whether occurrence-based policies provide coverage for damages arising from faulty workmanship has been treat- ed unevenly throughout the country, recent court cases interpreting Pennsylvania law have sided in favor of insurance companies. For example, in State Farm Fire & Casualty co. v. Brigh- ton Exteriors, Inc. (E.D. Pa., 2015), a federal district court inPennsylvania found that an insurer had no duty to defend or indemnify a subcontractor against claims of damages allegedly arising from faulty workmanship. Brighton, a stucco subcontractor, was insured by State Farm un- der a contractor’s policy and an umbrella policy, both of which were occurrence-based. Brighton had performed cer- tain stucco remediation work for a homebuilder. The owner of the home later sued the homebuilder for a variety of alleged defects with the property, including stucco issues, and the homebuilder in turn joined Brighton into the lawsuit as an addition- al defendant, alleging that Brighton was responsible for performing the stucco remediation work in a skill- ful and workmanlike man- ner. Although State Farm initially provided a defense to Brighton, it did so under a reservation of rights and brought the federal court law- suit for a determination that it had no obligation to defend or indemnify Brighton. The Court found in favor of State Farm, finding that the occurrence-based policies did not cover claims of faulty workmanship and that State Farmwas not obligated to de- fend nor indemnify Brighton.
Firmly Rooted in the Law and in the Community We are well grounded in every facet of real estate law, from acquisition to construction. We are committed to serving the needs of our clients and our communities.
Kaplin Stewart
A t t o r ne y s a t L aw
Contact: Mohammad A. Ghiasuddin • mghiasuddin@kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-941-2546 • www.kaplaw. com Visit our Construction Blog: www.pennsylvaniaconstructionlawyer.com
Other O ces: Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120
KS Ad 6X5.5 Tree Neil S.indd 1
1/29/15 11:42 AM
10A — November 27 - December 10, 2015 — Professional Services — M id A tlantic
Real Estate Journal
www.marejournal.com
I ndustrial B roker By Jordan Metz, Bussel Realty Corp. Central/Northern New Jersey market is on the rise again
S
ince having joined the industrial real estate industry straight out
Central/Northern New Jersey area is flourishing, once again. With these port proximate central/northern NJ markets coming into 2015 hovering around 7% vacancy off the heels of a fairly inspiring 2014, the voracious demand for this space has outpaced any levels of current supply. Even with several mas- sive development projects and redevelopment projects completed and underway, businesses absorbed and oc- cupied that space as quickly as it came out of the ground and online. Some notable de-
velopments include Prologis with over 3,000,000 s/f of new development underway and completed from Jersey City, Elizabeth, to Carteret/ exit 12 market, to Duke Realty with over 750,000 s/f on the former GM site in Linden, with an- other 500,000 s/f plus coming online, with Clarion building at 279,208 s/f in Elizabeth, and Hampshire/JPM with 460,000 s/f of construction in Avenel, NJ, along with several acquisitions/repositioning of other older sites. While there was massive pent-up demand for a new
space to be developed, as developers and owners had been sitting on the sidelines for some years post-recession, the actual pace with which the market absorbed such a con- siderable amount of new space has been encouraging. With over 5,000,000 s/f additional in those markets marked for immediate development with some sites being pre-leased, I do not foresee this appetite for port-proximate industrial space to slow down anytime in the foreseeable future! In my capacity as a buyer/ tenant representative, I pro-
vide research and analytic based market information, supported by almost 12 years working specifically in these specific port-proximate NJ markets, to my clients, both to educate them and guide them through the process of securing these facilities for their business operations. I go through a tedious site selection process, and narrow it down to a list of the top options. I then manage and oversee the dozen or more other professionals, govern- ment entities, and city officials that we encounter along the several-month long due dili- gence/closing process. JordanMetz is vice presi- dent of Bussel Realty Corp. in Edison, NJ. n
of college in l a t e 2004 , I have wit- nessed a lot of changes. Some good, s ome bad , e s p e c i a l l y during the i n c r e d i b l e
Jordan Metz
collapse of our real estate industry and greater economy as a whole. However, the real estate market is on an up rise, and more specifically, the
Industrial Properties For Sale in NJ
Bussel Realty brokers sale in Elizabeth, NJ
• 123,632 SF • 7,264 SF Office • 22’ Ceilings • Fully Racked
with 6,000 Pallet Positions
• 14 Tailboards • Near I-287 & NJ Turnpike • South Plainfield, NJ • 88,352 SF • 8,000 SF Office • Racking for 8,700 Pallet Positions • 24’ Ceilings • 10 Tailboards • Near Routes 1, 130 & Exit 8A of NJ Turnpike • South Brunswick, NJ • 41,500 SF • 5,000 SF Mezzanine • Image Building • 22’ Ceilings • 5 Loading Docks • Ideal as Showroom • At 2A of I-287, near the NJ Turnpike • Metuchen, NJ
429-449 Schiller St.
EDISON, NJ — Bus- sel Realty Corp. (BRC) , a leading industrial real estate services firm in New Jersey, announced its ar- ranged the sale of 429-449 Schiller St. in Elizabeth, NJ, a multi-tenant investment and industrial facility of approximately 40,000 s/f on four acres. The sales price for the transaction was not dis- closed. The buyer was Sitex Group, LLC (SG) and the seller was Major Associates. BRC vice president Jordan Metz was the broker repre- senting both the buyer and the seller in the transaction. Metz will be retained as exclusive broker to oversee leasing for the new owner. Sitex will make major capi- tal improvements that will enhance the property, mak- ing it even more attractive to prospective tenants. “Sitex made a quick, well-informed market decision which ul- timately positioned them ahead of several other suitors for this unique acquisition,” Metz added. n
Exclus i ve Broker Jordan Metz, Vice President | 973.493.0385 | jmetz3@me.com
Bussel Realty Corp 2 Ethel Road, Suite 202A, Edison, NJ 08817 | 732.287.3777 | Bussel.com Information obtained from sources deemed to be reliable, but no guarantee of its accuracy is made by the Company.
Jordan Metz, Bussel Realty.indd 1
11/24/2015 8:25:51 AM
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