Mid Atlantic Real Estate Journal — New Jersey — January 11 - 24, 2013 — 18A


N ew J ersey

Larken’s business center more than 90% leased warehouse space.

Brach Eichler reps. Mile Square Taxpayers Association Court denies appeal on Hoboken Rent Control Election

an existing substation is even better. The most cost-effective way to increase capacity is to re- quest more power on current 13.2 kV lines, which provide residential-grade power. If the existing line is maxed out, the next most cost-effective way may be to tap into additional power from another 13.2 kV line close to the property. Once all 13.2 kV options have been exhausted, then it be- comes necessary to consider 26 or 69 kV. If a site requires five to 20 megawatts of power, most utilities will mandate a move to these higher, industrial-grade services – which require small onsite substations. This voltage is very stable, and the substa- tions are designed with an A and B side, so if one side goes down the other can carry the entire building load. However, the cost to build a 26 or 69 kV substation ranges from $2.5 million to $6.5 million, and it can take nine to 18 months to complete. Similarly, what consti- tutes “good fiber?” Brady: Data center users want access to as many fiber providers as possible, as this creates redundancy and pricing competition. There are more than 30 fiber providers in the market today and they typi- cally run lines along railroads and major highways. Bringing fiber to a building usually takes four to nine months and can be expensive. That said, if high user demand exists, providers may bring it in more quickly and sometimes for free. Who are typical data cen- ter users, and do their needs differ? Brady: Data center users fall into three categories: Those who lease space in a particular market, including enterprise (corporate-owned) Hillsborough, NJ — Since August Larken As- sociates has signed five new leases at the Hillsborough Business Center bringing its occupancy rate to more than 90 percent. Tronics World, LLC leased 1,500 s/f, Sunlight General Capital LLC leased 3,125 s/f, ESS Home Theater moved into 2,380 s/f, Kentrel now occupies 1,500 s/f and NRWellness, LLC signed a lease for 3,405 s/f, in the complex consisting of 525,000 s/f of industrial and

centers; Wholesale operators, that build the warm shells and lease the space to enterprise or col- location users who come in and operate their own servers; and Third-party operators that offer collocation, managed services and Cloud service. They run the data center and manage racked servers for their clients. All three will have different locational and image needs but most all will have similar basic power and fiber needs for redundancy. In terms of location, why has New Jersey become such a popular data center mar- ket? The Northern NJ data center market extends from southern Rockland County, N.Y., down to Newark; more than 1.5 mil- lion s/f of new product has been delivered there in the past nine months alone. The Southern NJ market extends fromUnion and northern Middlesex County to Bridgewater in Somerset County and west, to I-287. These two areas are the most popular concentration of data centers because power there is the cheapest in the tri-state area (Northern New Jersey has the best cost per kWh and is served by three major provid- ers – PSEG, O&R/ConEd and JCP&L). Additionally, its fiber network is the region’s best and most diverse. NJ has become a data center hub for other reasons as well. It has one of the strongest en- gineering/IT workforces, great roads and a top-ranked mass transit system. Then there is the not-so-small factor of its location adjacent to 330 million s/f of office tenants and Wall Street in NYC. The result? Ap- proximately 6.3 million gross s/f of third-party data center space – a number that is still growing. n Additionally Yili Inc., which has been at Hillsborough Busi- ness Center for one year and Absolute Painting which has been there since 2004 are both expanding to nearly twice their original sizes from 3,125 to 6,190 s/f, and 1,500 to 2,963 s/f respectively. “We are really pleased with the progress we have made,” said Victor Kelly , executive vice president of Larken As- sociates’ Commercial Divi- sion. n


OBOKEN, NJ — In a scathing indictment of the integrity of a

Ron Simoncini , executive director of Mile Square Tax- payers Association , which was represented in the mat- ter by Charles Gormally of Brach Eichler in Roseland. “They have aligned themselves with a public interest law firm, an attorney specializing in ex- ploiting the misadministration of the rent control law by the Hoboken rent leveling office to squeeze settlements and judg- ments from landlords, and the City of Hoboken’s legal depart- ment and special counsels. “And this in the face of a judicial decision that found Hoboken’s rent control ordi- nance was unconstitutional as applied and a general acknowl- edgement by public officials and residents that rent control in Hoboken is broken. Hoboken Fair Housing Association will stop at nothing to protect its political relevance, misrep- resenting even court orders, when in fact not one existing resident in Hoboken will be af- fected by the Amendment that will appear on the ballot. “HFHA’s cynical program in- cluded timing an appeal so that it postponed a vote on the mat- ter until the November 5th elec- tion and could have deprived the voters of the right to vote entirely. The support of Mayor Dawn Zimmer, who named a self-avowed rent control advo- cate to the Rent Leveling Board early in her administration and has been turning a blind eye to the abuses inherent in such an arrangement ever since,

is especially troubling. In the previous rent control election 8,196 voters supported the Referendum to reform rent control and in the election before that more than 68 per- cent of the voters supported a Council-adopted ordinance to prevent legal abuses against property owners. Rather than attempt to resolve problems with the rent control ordinance, the Administration blindly supports HFHA initiatives, ignoring libelous statements on its website and permitting erroneous application of its rent control laws. HFHA has sued Hoboken on several occasions and still finds support in the Administration.” Why Will Hoboken Revote on Vacancy Decontrol? In an attempt to accommo- date voters who were displaced by Hurricane Sandy, the State announced it would allow voters to vote at any polling place and assured them that they would be able to vote on all of their local elections. However, Hobo- ken ballots were only available in Hoboken, so voters who cast ballots outside of Hoboken were not able to vote on the local elec- tions, despite being told they could. The Vacancy Decontrol public question was decided by just 52 votes, and because as many as 200 voters cast ballots that did not offer the question, Superior Court Judge Christine Farrington determined that voters were disenfranchised of a constitutional right and she ordered a new election. n

cycle of litiga- tion brought by Hoboken Fair Hous- i ng As s o - ciation , the New Jersey A p p e l l a t e Division af- firmed a Su-

Ron Simoncini

Cushman & Wakefield’s Brady defines the ultimate data . . . continued from page 2B

perior Court order to place a public question on rent control on the November election bal- lot. Summarizing a four-page de- cision that deconstructs every contention made by HFHAand its named petitioner, Cheryl Fallick, the Court wrote, “We find Fallick’s appellate conten- tions without merit and, except as addressed herein, they do not warrant discussion.” The Court soundly rejected Fallick’s claim that there was no legally competent evidence that 114 voters from Hoboken actually cast provisional ballots outside of Hoboken. “The evidence on that point was undisputed. In fact, the 114 number was con- ceded by theAttorney General, who vigorously defended the election results.” “Since The Hoboken Housing Improvement Initiative first collected signatures to put rent control reform on the ballot in June 2012, HFHA has brought seven separate legal actions in an attempt to prevent voters from voting to enact necessary reforms to rent control,” said Princeton, NJ — Cas- sidy Turley has negotiated a 43,500 s/f lease at 19 Roszel Rd. in Princeton. Hill Wallack LLP will relocate its headquarters to Roszel Square, occupying the top two floors of the first building in the 100,500 s/f, two- building, class A development. Construction is slated to begin in the fourth quarter of 2013 with delivery expected in early 2015. Milton Charbonneau, senior VP, principal of Cassidy Turley, represented the development team, led by Andy Gottesman of Gottesman Real Estate Partners and Michael Seeve of Mountain Development Corp . Sab Russo , president of Mercer Oak Realty , repre- sented the tenant. Hill Wallack chose Roszel

Cassidy Turley negotiates 43,500 s/f lease

19 Roszel Rd. in Princeton

Square because of the conve- nient location, efficient interior layout and opportunity to create a cutting-edge legal work envi- ronment in a first generation space. Together with famed architecture firm Gensler , the development team will work closely with Hill Wallack in the building design develop- ment process. Roszel Square

will feature superior building systems, refined architecture and abundant landscaping in a vibrant setting. “Roszel Square is a high- design alternative to standard offices in the area,” said Gottes- man. “And it is only five minutes from downtown Princeton and all the unique amenities the university town has to offer.” n

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