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Title Insurance Spotlight ISSUE HIGHLIGHTS Volume 25 Issue 19 October 11 - 24, 2013

On Richmond’s $110 million Gateway Plaza Project Hirschler Fleischer Commercial Real Estate team provides counsel


ICHMOND, VA — Hirschler Fleischer announced its involve-

Jones estimates that the project will generate 812 construction jobs with more than $50.7 mil- lion in wages. “Wo r k i ng c l o s e l y wi t h Hirschler Fleischer has enabled us the opportunity to incorpo- rate innovative and mutually- beneficial legal and financial approaches that benefit the City of Richmond, its residents and the businesses who operate there,” said Larry Chapman, principal of Clayco. Dan Siegel of SandsAnder- son also represented Clayco Inc. in the legal work related to the city’s issuance of bonds. Paul Macon and David Orwick of the St. Louis office of Thompson Coburn , rep- resented Clayco in connection with leasing matters and the construction loan financing for Gateway Plaza. ■ and large funds (such as pri- vate equity or pension funds) in particular are among the most active investors in single tenant net lease properties, which are also attractive to 1031 Exchange buyers.” “We saw the current market climate as being an advanta- geous time to capitalize on the demand for high-quality, long-term leased assets in solid locations, and are extremely pleased to have been able to complete this transaction with Inland”, said Profeta. CBRE executive VP Ster- ling Champ , one of the lead- ers of CBRE’s Net Leased Property Group, brokered the transaction on behalf of Profeta. Stated Champ: “We were pleased to assist Paul V. Pro- feta andAssociates on this im- portant transaction. The qual- ity of the properties attracted a strong buyer pool, and we were fortunate to be able to work with Inland Real Estate Acquisitions as the ultimate buyer of the portfolio.” ■

also signifies a turning point in our local economy. The col- laboration between the City of Richmond and the developer, Clayco, is reflective of the private-public commitment to revitalizing downtown.” The City of Richmond is financing construction of the public portion of the develop- ment’s parking garage through the issuance of general obliga- tion bonds that will be paid primarily by incremental gains in real estate taxes. Gateway Plaza, located on the site of a former parking lot fronting Canal Street between Eighth and Ninth streets, is slated for completion at the end of 2014. The 18-story office tow- er includes 315,000 s/f of office space, 14,000 s/f of retail space and over 500 parking spaces. Richmond Mayor Dwight C.

ment in the downtown Rich- mond commercial develop- ment, Gateway Plaza. The firm’s commercial real estate team represented Chicago- based developer Clayco, Inc., in the legal and government relations work required for the acquisition of multiple land parcels, closure and vacation of a public street, creation of a commercial condominium and ground lease structure, a master development agreement and other contracts, easements and municipal requirements for the $110 million project. Hirschler Fleischer partners involved in the project include Brian Jackson and Michael Terry . “Gateway Plaza is a land-

Gateway Plaza

mark property that represents the growth of downtown Rich- mond,” said Jackson. “Not only does the project create new jobs – both short-term in the development stages and in the long-run, thanks to the retail, restaurant and commercial leasing space created – but it


Southern NJ Spotlight

To Inland Real Estate Acquisitions for $60 million Paul V. Profeta & Associates completes sale of 12 Walgreens-occupied properties


Eastern PA Spotlight

WEST ORANGE, N J — Paul V. Profeta and As- sociates announced that the

company has c o mp l e t e d the sale of 12 properties in nine states to Inland Real Estate Ac- quisitions . The proper-


Paul Profeta


DelMarVa ..........................................5-8A New Jersey .................................Section B Southern New Jersey....................... 5-15B Pennsylvania ..............................Section C Eastern PA ....................................... 5-12C

Walgreens stock photo

ties, all of which are occupied under long-term leases with theWalgreens pharmacy chain, were sold for $60 million. The Walgreens leases are 75 years in duration with Walgreens maintaining the right to cancel after 25 years. The properties are located in Illinois, Kentucky, Michigan, Minnesota, Missouri, Mon- tana, North Carolina, Ohio and Texas. “Single tenant leases that

are triple net and leased by a credit worthy tenant such as Walgreens are extremely appealing and very fungible, much more so than typical commercial real estate,” said Paul Profeta , principal of Paul V. Profeta and Associ- ates. “There is a very large, vibrant market for these types of assets, which are the least management-intensive com- mercial properties to own. Real estate investment trusts

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