R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news
ISSUE HIGHLIGHTS Volume 24 Issue 19 October 12 - 25, 2012
By the Solar Energy Industry Association and the Vote Solar Initiative Hartz ranks among top 20 commercial solar power users
Guest Columnists
S
ECAUCUS, NJ — A recent report by the So- lar Energy Industry
Association (SEIA) and the Vote Solar Initiative (Vote Solar), lists Hartz Mountain Industries among the top 20 commercial solar power users in the U.S. alongside some of America’s most iconic brands and biggest businesses includ- ing WalMart Stores, Kohl’s and IKEA. Hartz ranked 19th in the report based on the five solar systems for which Hartz is the direct user of the elec- tricity generated. However, supplementing this total with an additional 10 systems for which Hartz’s tenants are the direct users of the electricity generated would have moved Hartz’s ranking to 9th place, and the addition of Hartz’s 8.5 MW Solar Farm in Hamil-
2A
Naiop selects Brian Whitmer
Hartz Mountain Industries. “It is a key component to our sustainability efforts that benefits both Hartz Mountain Industries and our tenants who have taken advantage of our solar power program.” n
ton, NJ would have increased Hartz’s ranking to 5th place. Hartz’s solar portfolio now stands at a total of 17.5 MW, annually generating enough electricity to power 2,400 New Jersey homes.
“Solar power represents both a means to be kinder to the earth by reducing pollu- tion and is a significant factor in reducing our operational expenses,” said Emanuel Stern , president and COO for
16B
Four building, 75,560 s/f medical office portfolio located in New Jersey Cronheim Mortgage’s Turley and Proscia arrange $20 million in financing
Project of the Month: William Penn Commons
Fair Lawn and Carlstadt, NJ. The 70% LTV, 10-year loan was placed with Continental Ca-
NEW JERSEY — David Turley and Janet Proscia of Cronheim Mortgage teamed up to arrange permanent mort- gage financing totaling $20 mil- lion for a four building, 75,560 s/f medical office portfolio lo- cated in Oradell, Hackensack,
sualty , one of Cronheim’s i n s u r a n c e company cor- respondents, andCronheim wi l l r e t a i n servicing. The proper- ties - one, two and three-sto- ry buildings - are each very unique assets containing a wide range of medical uses. “Three of the b u i l d i n g s were convert-
8-9C
Directory
David Turley
Upcoming Spotlight Women in Business — October 26 th Featuring Insurance/Title............ 9-16A TriState Organization...................... 17A Calendar of Events. ........................ 24A New Jersey............................. Section B Pennsylvania.......................... Section C Auction Directory.......................... 4-6A Financial
New Jersey medical office portfolio
oncology/radiation therapy and surgery center space to more generic medical billing/admin- istration. We had to underwrite and understand each space type separately.” Turley added: “This was a highly strategic transaction for our borrower, a medical of- fice investor in growth mode.
He was able to consolidate four loans into one and correct underleverage and contingent liability issues to free up capital and borrowing capacity for new investments. We believe in the asset type and the health of the tenants that support the real estate. We are pleased to add it to our servicing portfolio.” n
Janet Proscia
ed 1980’s vintage structures while the fourth was completed only the month before closing,” noted Proscia. “The medical uses included highly specialized
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Inside Cover A — October 12 - 25, 2012 — Mid Atlantic Real Estate Journal
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2A — October 12 - 25, 2012 — Mid Atlantic Real Estate Journal MAREJ A DVERTISERS D IRECTORY Alfred’s Auctions, Inc. ....................................................... 5A ALT Realty .....................................................................8-9C Barry Isett & Associates, Inc.......................................... 14C BartonPartners .............................................................FC-C Bennett Williams Realty Inc. ........................................... 2C BL Companies ................................................................... 7C Bohler Engineering........................................................IC-C Brahney Paving................................................................. 6B Brasler Properties........................................................... 10C Bussle Realty Corp.........................................................IC-B Cenova ......................................................................... IBC-C Columbia Bank................................................................ 10A Cooper-Horowitz, Inc. ..................................................... 11A Earth Engineering Incorporated..............................11B, 5C Elias B. Cohen & Associates........................................... 14A Fidelity National Title .................................................... 13A Fitzpatrick Lentz & Bubba............................................. 14C Fortna Auctioneers & Marketing Group.......................... 4A Gerber/Somma Associates .............................................IC-B Greater Reading Economic Partnership.......................... 4C Griffin Land....................................................................... 7C Harvey Hanna & Associates, Inc................................... IC-A Hawley Realty Inc........................................................... 12C Heller Industrial Parks .................................................... 4B High Associates ................................................................. 6A Hinerfeld Commercial Real Estate .................................. 1C Hutchinson Mechanical Services ..................................... 9B Jottan Inc. ......................................................................... 1A Kaplan Stewart ................................................................. 2A Keast & Hood Co............................................................. 15C Lafayette Ambassador Bank ............................................ 9C Landcore Engineering Consultants, P.C.......................... 7C Landmark Commercial Realty Inc................................... 4C Langan Engineering & Environmental Services ............ 8C Lebanon Valley Economic Development Corporation ..... 3C M. Miller & Son................................................................. 3A Marcus & Millichap Taylor Zang ..................................... 6C Mericle ...........................................................................BC-C Meridian Capital Group, LLC .......................................... 3A MKSD Architects .............................................................. 8C NAI Mertz.......................................................................... 6A NAI Summit .................................................................... 12C NJ Paving .......................................................................... 2B NJIFMA............................................................................. 8A Norris McLaughlin & Marcus, P.A................................... 9C NorthMarq....................................................................... 11C Penn’s Northeast............................................................... 4C PennCap Properties .......................................................... 7C Phyllis Weber Associates ................................................ 11B Poskanzer Skott Architects .............................................. 5B RBS Citizens .................................................................BC-A Regal Bank ............................................................... 12A, 3B Riker Danzig ..................................................................... 2B Robert E. Blue ................................................................... 8A ROCK Commercial Real Estate ....................................... 3C SEBCO Laundry Systems ................................................ 2B Sheldon Gross Realty ....................................................... 2B Southern NJ Chapter of the Appraisal Institute .......... 13B Target Building Construction......................................... 15C The Berger Organization.................................................. 1B The Frederick Group....................................................... 12C The KISLAK Co. ............................................................... 3B THESING Companies..................................................... 15B TriCounty NJ.................................................................BC-B WCRE ................................................................................ 8B Whitesell.......................................................................... 10B
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Mid Atlantic Real Estate Journal
Mid Atlantic R EAL E STATE J OURNAL Publisher ............................................................................Linda Christman Co-Publisher .........................................................................Joe Christman Section Publisher ..............................................................Michael Campisi Section Publisher ................................................................Elaine Fanning Section Publisher ............................................................... Kevin MacLean Senior Editor/Graphic Artist ................................................ Karen Vachon Graphic Artist/Social Media Specialist ............................ Rachel Rugman Office Manager ...................................................................Joanne Gavaza Editorial Consultant ............................................................. Ben Summers Guest Columnists .................. Daniele Cervino, Esq. and Kristin Makar, Esq. Mid Atlantic R EAL E STATE J OURNAL ~ Published Semi-Monthly P.O. Box 26 Accord, MA 02018 (Mail) 312 Market Street, Rockland, MA 02370 (Overnight) Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, P.O. Box 26, Accord, MA 02018 USPS #22-358 | Vol. 24 Issue 19 Subscription rates: $99 - one year, $198 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Toll-Free: (800) 584-1062 | MA: (781) 871-5298 | Fax: (781) 871-5299 www.marejournal.com The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
he New Jersey Site Remediation Reform Act (SRRA), N.J.S.A. 58:10C-1 et seq., establishes certain new procedures and requirements that are designed to allow responsible parties to remediate contaminated sites in a timely manner without de- lay and with limited oversight by the New Jersey Department of Environmental Protection (NJDEP). A local governmen- tal entity that is a responsible party under the New Jersey Spill Compensation and Con- trol Act (Spill Act), N.J.S.A. 58:10-23.11 et al., must adhere to the obligations and manda- tory and regulatory deadlines set forth in the SRRA and its accompanying regulations. The SRRA requires the responsible party to complete key phases of the remediation process within the time frames established by the NJDEP and obligates the responsible party to hire a Licensed Site Remediation Professional (LSRP) to oversee T Impact of SRRA on Local Government and Utilities Cleanup Obligations By Daniele Cervino, Esq. and Kristin Makar, Esq.
the remediation of the site by May 7, 2012. Some of these deadlines have already been in place since March 2012. When are Local Governments Responsible Parties? Theremaybe instanceswhere a local governmental entity is not a responsible party under the Spill Act because it meets one of the following liability protections: (1) it did not cause or contribute to a discharge of a hazardous substance; and (2) it acquired title to the property involuntarily such as in cases of bankruptcy, tax delinquency, eminent domain, condemnation, abandonment,
or escheat; or (3) it acquired the property for purposes of promoting redevelopment. Under these circumstances, although the local governmen- tal entity owns contaminated property, it is not required to complete a remediation of these properties in compliance with the SRRA. It is, however, important for such local gov- ernmental entities to consider conducting investigative and remedial activities because any contaminated sites will remain on the State’s Known Contami- nated Sites List and will be difficult to market and return continued on page 16A
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Mid Atlantic Real Estate Journal — October 12 - 25, 2012 — 3A
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M ID A TLANTIC R EAL E STATE J OURNAL Cass handles three-acre parcel sale AACP honors two High Associates Ltd. properties
They wrote the policy.
We make sure they write the check.
L
ANC A S T E R , PA — Two High Associ- ates Ltd. Lancaster
apartment communities re- cently were honored by the Apartment Association of Central Pennsylvania ( AACP ). Its Bentley Ridge and Greenfield Estates apart- ment communities received honors in the organization’s 12th Annual Best of Living Awards. Bentley Ridge was honored with a 1st Place for mainte- nance excellence and as a star performer for curb appeal. Bentley Ridge marketing representative AllisonWeav- er was named the Rookie of the Year as an outstanding individual who has served in the multi-family housing in- dustry for one year or less. Greenfield Estates was hon- ored with a 1st Place for curb appeal excellence. High Associates has been participating in the award program for 12 years and has been honored each year, last year accepting the most prestigious award for Man- agement Company of the Year, an award is given to the company that most impresses
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the judges in the areas of company mission, market- ing, maintenance programs, customer service philosophy, community service involve- ment, web site, employee training, and educational commitment. “I could not be more proud of our beautiful apartment communities and our man- agement teams,” said Tina McGinnis , regional manager at High Associates. “These awards represent our ongo- ing dedication to providing quality, enjoyable multifam- ily housing and exceptional
customer service.” The AACP’s mission is to support education and pro- fessionalism within the mul- tifamily housing industry so that its members are success- ful in providing quality rental housing in Central Pennsyl- vania. In other news, Newberry Pines LLC of Mechanicsburg has purchased a three-acre parcel in Newberry Township fromTheWhisler Family from Chicago, IL. Denise Cass of High Associates Ltd. handled the transaction for both the buyer and seller. ■ EXTRADISTRIBUTIONTOTHE Fastest Growing Firms • This issue will print as a pull-out section LISTINGLenders who are active in the New Jersey, Pennsylvania, Delaware, Maryland and DC area • To receive your FREE LISTING , complete and fax coupon below. • Call to reserve editorial space or expert article on the current state of the commercial lending market
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4A — October 12 - 25, 2012 — Mid Atlantic Real Estate Journal www.marejournal.com M ID A TLANTIC R EAL E STATE J OURNAL A UCTIONS
Bidding starts at $250,000 on property initially listed at $1.25 million Max Spann to sell historic Hopewell Homestead at Auction
T
opened in 1834, it stimulated business in the area. The com- plex was sold in 1841 to Jona- than Cowley, who immediately added two stories to the mill, giving it its current height. In the 1890s, the complex was purchased byWilfred Conover, who continued operations un- til World War I, when larger mills in the Midwest made the mill obsolete. The exterior of the stone home was recently renovated. A second post and beam home on the property was recently constructed. While the grist
mill is no longer in use, the building would make a fine of- fice as well as providing ample space for storage. The property also includes two lots along Jacobs Creek. The property is close to Hopewell, Princeton, Ewing and Lawrenceville as well as Route 31 and 95. To learn more about the property visit the Max Spann website to obtain a property information package. Preview the historic property at one of the open houses, attend the auction, and bid. ■
2012 at 2 p.m. on the property, located at 1200 River Road in Titusville. Bidding starts at $250,000 on the 8.1 acre homestead, which had been previously listed for $1.25 million. “This property is perfect for anyone who wants to own a piece of American history,” said Max Spann Jr. , presi- dent and CEO of the auction firm. Property previews have been scheduled from 4 to 6 p.m. on Tuesday, Oct. 16 and noon to 2 p.m. on Sunday, Oct. 21 and
Saturday, Oct. 27. The home and the grist mill, both built around 1739, reveal the origins and growth of the grist mill business in the Dela- ware Valley. The story begins in 1726, when Issac Smith received a land grant of 1,000 acres from the English Crown. He built a one-story mill and a two story house not long after. Known as the Somerset Roller Mills, it is believed to have supplied flour for the Continental Army during the Revolutionary War. When the Delaware Canal
ITUSVILLE, NJ — A historic, country-set- ting homestead fea-
turing a grist mi l l , stone house and a newl y con- structed post a n d b e am house along Jacobs Creek in Hopewell is to be sold at auction in November.
Max Spann Jr.
Max Spann Real Estate &Auction Co. has scheduled the auction for November 3,
Residential, Commercial & Industrial Auction Specialists!
Call us @ 800-584-1062
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PREMIER REAL ESTATE AUCTION NATIONAL & HISTORIC LANDMARK PROPERTY The Fairfield Inn 1757 15 West Main Street, Fairfield, PA 17320 Saturday, November 3rd at 11AM
Property Inspection: Property will be open for guided tour Sun. Oct. 14th @ 1pm & 2pm. A Once in a Lifetime Opportunity to purchase a piece of history dating back to 1757! An American treasure The Fairfield Inn offers all the refinement & charm one would expect from a small luxury hotel. Individually decorated bedrooms, spacious private bathrooms, & elegant, tastefully furnished suites & parlors invite you to relax. To compliment the fine accommodations, there is the Mansion House Restaurant & Squire Miller's Tavern serving a wide selection of classically prepared & artistically presented dishes. Built 19 years before the signing of the Declaration of Independence, the Inn is steeped in history & has played host to many distinguished guests. Statesman Patrick Henry, Thaddeus Stevens, Generals Robert E. Lee and J.E.B. Stuart & the Eisenhower are just a few notable Americans who have visited throughout the last 4 centuries. Used as a Colonial Meeting House, Civil War Hospital, Stage coach Stop & as part of the Underground Railroad, The Fairfield Inn remains one of America's oldest, continuously operated Inns. This property is being put up for auction due to the seller’s retiring from the business. Visit our website www.fortnaauctioneers.com for more of the historical property information & photos.
Terms: A 10% buyer's premium will be added to final purchase price. Property is being sold completely turnkey including Liquor License, Name, Antiques, Equipment & Furnishings. Buyer would have to apply for liquor license with PLCB no later than 3 business days after the auction. Copy of application must be faxed to 717.867.5265. Settlement then takes place 30 days after final approval from PLCB.
Mid Atlantic Real Estate Journal — October 12 - 25, 2012 — 5A M ID A TLANTIC R EAL E STATE J OURNAL A UCTIONS
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Real Estate Auction Saturday, October 20, 2012 @ pm 310-312 Orange St, Millville, NJ 08332 Open House: October 7, 2012 9am to 12 noon
Industrial/Commercial Property • Approx. 2.13 acres w/ 2 building
The property at 310 Orange St is a 5,000 sq ft building. The one section is 2,500 sq ft with 8 offices, conference room, kitchen, planning room, foyer, data closet, 2 bathrooms (1 with shower) and additional attic space for storage. the other section is also 2,500 sq ft with 3 sm. offices and garage space. Central Air with a split system for hot and cold throughout. The property at 312 Orange St. is a building with three sections. The first area is a 36'x40' shop with 2 overhead doors, water, bathroom and is heated. The second area is 30'x52' closed and heated storage area. The third area is 30'x80' open air
storage. The property is surrounded with a 6' chain link fence. www.auctionzip.com Member #1070 609-448-7653
Dan Skeba - Broker
Alfred Finocchiaro - Auctioneer
SATURDAY, OCTOBER 27, 2012 AT 10AM 1600 RIVER RD, TITUSVILLE, NJ 08580 OPEN HOUSE: OCTOBER 14, 2012 9AM TO 12 NOON
This 200+ year old Colonial offers plenty of living space. Set on 5.4 acres and surrounded by preserved land, this home has MRC Zoning, Residential / Agricultural, it allows the existing nursery - landscape business to continue on the property. The 10 Room, 5 bedroom home offers natural black walnut woodwork, stone fireplace, hardwood floors, screened porch with flagstone floor, balcony and full basement. It has an in-ground pool with privacy fence and screened gazebo. On the grounds is a separate 2 story stone building, a 4 car garage, greenhouse, storage sheds and a man made pond. A wonderful recreation area - near parks, fishing/boating on the Delaware River, biking/ walking on the tow path. Just down the road from historic Lambertville and New Hope attractions. Close enough to I-95 and the Hamilton Train station for Commuters. www.auctionzip.com | 609-448-7653
Member #1070
Dan Skeba - Broker
Alfred Finocchiaro - Auctioneer
6A — October 12 - 25, 2012 — Mid Atlantic Real Estate Journal
www.marejournal.com M ID A TLANTIC R EAL E STATE J OURNAL Shopping center at 755-789 St. Georges Avenue NAI Hanson lands 74,618 s/f management assignment W OODBRIDGE, NJ — NAI James E. Hanson announced
334 Rising Sun Road, Bordentown, New Jersey
the management assignment of a 74,618 s/f shopping center at 755-789 St. GeorgesAvenue in Woodbridge. NAI Hanson Management LLC, led by Steve De Mattheis, Ivette Correa and Virginia Con- rad , will oversee management of the property on behalf of its current owners. 755-789 St. Georges Avenue currently has 17,927 s/f occu- pied by 11 tenants, including Rita’s, Subway, Papa John’s, Supercuts, Hollywood Tans
Ŷ 39,000 SF distinctive ofÛce space Ŷ Suites available from 4,023 SF Ŷ Teknion furniture available 2 Advantage Court
1 Advantage Court Ŷ 41,000 SF warehouse space Ŷ Multiple docks/drive-in access Ŷ 8,800 SF ofÛce also available
Direct access to Exit 7 of the NJ Turnpike, Exit 56 of I-295, and Routes 206 & 130 Centrally located between Philadelphia (32 miles) and New York City (64 miles) Close to a variety of dining establishments, banks, & convenient retail services Owner managed property management services
755-789 St. Georges Avenue
and Dollar Surplus. “We are looking forward to taking over the management of this Center. We are confi- dent our management team will provide the tenants and the owners with the excel- lent service they expect and
deserve,” said De Mattheis. “Woodbridge, with a current population of almost 100,000, has developed into one of New Jersey’s primary retail mar- kets and we’re excited to be a part of this market.” ■ Lincoln Property Co. signs leases at 180-188 Mt Airy Rd. Basking Ridge, NJ
856.234.9600 Roy Kardon, SIOR | roy.kardon@naimertz.com Rebecca Ting, SIOR | rebecca.ting@naimertz.com Julie Kronfeld | julie.kronfeld@naimertz.com Leasing Contact:
interchange7businesspark.com
SPACE AVAILABLE
Lancaster, PA ³ 600-acre, Master-planned Business Campus ³ Industrial & Flex Space 5K-55K SF ³ Class-A & Class-B Office Space 1K-25K SF ³ + Acres Available for Built-to-Suit Harrisburg, PA Region ³ PA Turnpike I-76/Route 15 ³ Industrial & Flex Space 12K-14K SF ³ Class-A & Class-B Office Space 1K-4,600 SF ³ On-site Hotels & Restaurants Chester County, PA ³ 200-acre, Master-planned Business Campus ³ Industrial & Flex Space 4K-63K SF ³ Class-A & Class-B Office Space 800-6,500 SF ³ Easy Access/Highway Frontage
180 Mt. Airy Rd.
BASKING RIDGE, NJ — Michael Taylor , senior VP of Lincoln Property Co. , announces the signing of several new leases at 180-188 Mt. Airy Rd. Lincoln Property Company’s vice president Rick Genthe served as in-house leasing agent on behalf of the land- lord. A few of the new leases re- cently completed at 180-188 Mt. Airy Rd.: • Foth Productions leased 3,027 s/f at 180 Mt Airy Rd. and was represented by Anne Hanson & Ron Ganter of CRESA Partners . • Anchor Management leased 2,199 s/f at 180 Mt Airy Rd. • Precision Staffing leased 4,136 s/f at 180 Mt Airy Rd. • Mendham Capital leased 3,243 s/f at 180 Mt Airy Rd. and was represented by Lee Barnes of The Garibaldi Group. • Our House leased 3,886 s/f at the 188 building and was represented by Peter Wis- niewski of Coldwell Banker Feist & Feist . • The Learning Experience leased 10,000 s/f at 188 Mt Airy Rd. • Montgomery Academy is taking an additional 5,800 s/f to add to 30,575 s/f. Montgom- ery Academy was represented by Steve Fleming of Jones Lang LaSalle . ■
Search more than 300 available properties at: www.highassociates.com/propertysearch s email: highassociates@high.net
Mid Atlantic Real Estate Journal — October 12 - 25, 2012 — 7A
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8A — October 12 - 25, 2012 — Mid Atlantic Real Estate Journal
www.marejournal.com M ID A TLANTIC R EAL E STATE J OURNAL As a senior managing director Bruce Strasburg joins HFF Washington, DC office W ASHINGTON, DC — HFF announced that Bruce Stras-
SAVE THE DATE
October 17 NJ IFMA October Chapter Meeting
and flex/office investment sale transactions in the Mid- Atlantic region. During the course of his 30-year career, he has completed portfolio and single asset transactions valued in excess of $6.0 bil- lion, representing 30 million s/f of improved property and 1,500 acres of land. Stras- burg joins HFF from CBRE , and prior to that, Trammell Crow . He is a graduate of
Bucknell University. “With 30 years of experience in the sale of institutional quality assets in the Mid- Atlantic market, Strasburg is consistently recognized as a top producer in the market and commended for his repu- tation, creativity and work ethic,” said Steve Conley , executive managing director and co-office head in HFF’s Washington, D.C. office. ■
b u r g h a s j o i ned t he firm as a se- nior manag- ing director in its DC of- fice. Strasburg will focus on i ndu s t r i a l
Location: Children’s Specialized Hospital Address: 200 Somerset Street, New Brunswick, NJ Cost: $25 Members/ $45 Non Members P: 908-393-9984 • E: admin@njifma.com www.njifma.com
Bruce Strasburg
CENTREVILLE, MD – The management team of Mc- Crone, Inc. announces the relocation of its Centreville office from 207 Liberty Street across town to 320 Pennsyl- vania Avenue as of October McCrone relocates Centreville, MD office 8, 2012. McCrone’s team will continue to provide expertise in all phases of land surveying, civil engineering design, land use planning, and environmen- tal engineering from their new Centreville location. McCrone, Inc. is a full ser- vice civil engineering, land planning and surveying firm serving the MidAtlantic region from the following Maryland locations: Annapolis, Centrev- ille, Elkton, and Salisbury. ■
Douglas Development signs lease with Lime Fresh Mexican Grill
“We are very excited to bring a new, fresh, and healthy Mexi- can restaurant into one of our properties,” said Douglas De- velopment principal, Norman Jemal . “We are confident that Lime Fresh will be a great addi- tion to the vitality of the neigh- borhood, appealing to both the lunch and dinner crowds,” Jemal continued.
Potbelly will close its doors before the opening of Lime Fresh in mid-2013. “At Douglas Development, we want to continue attracting new tenants that will add to the growth and success of restau- rants and retail shops in DC’s Penn Quarter and the signing of Lime Fresh is consistent with this philosophy,” said Jemal. ■
WA S H I N G T O N , D C — Douglas Development announced that Lime Fresh Mexican Grill will occupy 2,000 s/f in the Douglas Development- owned property at 726 7th St. in Penn Quarter. The space is currently occupied by Potbelly Sandwich Works and is sched- uled to open as Lime Fresh Mexican Grill in mid-2013.
Services offered include: •Land Development Design and Permitting Civil Engineering • Land Surveying Landscape Architect
• Boundary and Topographic Surveys
R EAL E STATE J OURNAL
•ALTA/ACSM Land Title Surveys
Features EXECUTIVE WOMEN IN BUSINESS
•Accident Scene Surveys
•Stormwater and Drainage Design, Planning and Permitting
Mid Atlantic Real Estate Journal will publish our Annual Executive Women in Real Estate and Allied Fields Annual edition October 26, 2012, Deadline October 16, 2012 Executive Women are effecting change and taking leadership roles in a traditionally male dominated industry. Many have reached the top of the commercial real estate field, founding their own firms or establishing themselves in Key positions with the industry giants. The October 26, 2012 edition will feature these women! Be a part of this very special issue highlighting your area of expertise; tell us about your background and your unique success stories and on how you made it to the top in your field. If you are interested or know someone who would like to submit material for inclusion in this special issue, please call 800-584-1602 x 203 or if you prefer email: lchristman@marejournal.com
• Forensic Engineering and Surveying and Expert testimony and Reporting
•Construction Inspection, Stakeout and Administration
•Development Feasibility, and Zoning Analysis
•Value Engineering Analysis
This is our most loved edition; readers say they read it cover to cover.
Linda Christman: Mid Atlantic Real Estate Journal Tel: 800-584-1062 x 203 ~ www.marejournal.com Let me know if you have additional questions, or would like to reserve some space
1149 Skippack Pike |Blue Bell, PA 19422 Tel: 610.277.9441 |Fax: 610.277.9897
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F INANCIAL D IGEST F EATURING I NSURANCE /T ITLE
Mid Atlantic Real Estate Journal — October 12 - 25, 2012 — 9A
www.marejournal.com
Secured by Redland Corporate Center First Potomac Realty Trust handles $68.4m
Closes $10.9m in Fannie Mae Loans For Phila. portfolio Beech Street Capital closes $26.3m Freddie Mac loan
wards our stated balance sheet strategy.” said Douglas Do- natelli , chairman and CEO of First Potomac Realty Trust, “This financing improves our liquidity profile and allows us to take advantage of the current interest rate envi- ronment. Redland was 40% occupied when we acquired it and we recently brought it to stabilization, which gave us the opportunity to put perma- nent financing in place The rate of the loan fits well with our overall capital structure, and we plan to take additional steps to improve our liquidity in the near future.” ■ I-695 interchanges, just one mile away. “Like many owners of class B and class C assets in the nation’s middle markets, this sponsor needed a competitively priced, non-recourse bridge loan to stabilize the property for the longer term,” said Geof- frey Smith , one of Hudson’s managing directors. ■ The loan provided the bor- rower with a five-year term and was structured with inter- est-only payments throughout the entire term of the loan. The deal was arranged by Abe Katz and Mark Silber- sher . ■ dent housing portfolio at Temple University listed by Marcus & Millichap RE Investment Ser- vices’ agents Ken Wellar and Cory Lonberger . “We financed our client’s acquisition of the Temple Uni- versity properties through the refinancing of his University of PA properties,” said Banas. “Working with more than 20 properties spread out over two universities with a bor- rower who is not a commercial real estate professional cre- ated a challenging scenario for lenders.” ■
ROCKVILLE, MD — First Potomac Realty Trust an- nounced the closing of a new secured financing. The company recently closed on a $68.4 million mortgage loan that is secured by Redland Corporate Center in Rockville. The mortgage has a five year term, a fixed interest rate of 4.2%, and a 30 year amortiza- tion schedule. The net pro- ceeds from the mortgage were used to repay a portion of the balance outstanding under the Company’s unsecured revolv- ing credit facility. “We are pleased with the progress we have made to- ARBUTUS , MD — A 689,000 s/f industrial build- ing located in the Baltimore suburb of Arbutus has secured at $12.5 million bridge loan from real estate fund man- ager Hudson Realty Capital LLC . Located just south of Balti- more, Interstate 95 is easily accessible via the I-295 and WASHINGTON, DC — Deerwood Real Estate Cap- ital , a commercial mortgage brokerage and advisory firm, closed on a $52 million loan class A multi-family property in the heart of Washington, DC. PHILADELPHIA, PA — Marcus & Millichap Capital Corporation ( MMCC ) has arranged two student housing portfolio loans totaling $6.9 million. JohnBanas and KrisWood , directors in MMCC’s Phila- delphia office, arranged the loans. One loan was arranged to re- finance the borrower’s 14-prop- erty student housing portfolio at the University of PA. The other loan utilized the equity derived from the refinancing to fund the acquisition of a 10-property stu-
L INDENWOLD, NJ — Beech Street Capital, LLC provided a $26.3 million Freddie Mac Capital Markets Execution loan for the acquisition of The Land- ings at Pine Lake, a 520-unit apartment complex. Abe Hirsch and Moshe Majeski originated the trans- action for Meridian Capital Group, LLC , which was fi- nanced by Beech Street Capi- tal as part of its correspondent relationship with Meridian. The borrower, Azure Part- ners LLC is a repeat Freddie Mac client with over 20 years of real estate experience. “We have done many loans with Fannie and Freddie on prior transactions and Beech Street’s execution in procur- ing this loan was flawless,” said Arthur Rosenberg , CEO of Azure Partners LLC. “It was really as smooth as one could hope for and we will be doing more business with Beech Street in the near future.” The property, currently 95 percent occupied, consists of 46, three-story apartment buildings and a leasing center. Built in 1971 and 1976 origi- nally as a condominium proj- ect, the property is situated on over 36 acres of land with Pine Lake as the centerpiece of the community. The seller of the property was a large pension fund that had continuously invested in the property. The fixed-rate loan has a 10-year term and three years interest-only. PHILADELPHIA, PA — Beech Street provided $10.9 million in Fannie Mae DUS
Deerwood Real Estate Capital closes $52 million in financing
The Landings at Pine Lake
Hudson Realty Capital funds $12.5 million bridge loan
Apartment portfolio located in Philadelphia
loans to refinance a four- property apartment portfolio totaling 230 units located in Philadelphia. Avi Wein- stock and Chaim Tessler originated the transaction for Meridian Capital Group. The properties are located
in the Olney/Oak Lane sub- market of Philadelphia and consist of low-rise, brick ve- neer apartment buildings. The uncrossed, fixed-rate loans have a seven-year term with 6.5 years of yield main- tenance. ■
Marcus & Millichap Capital Corp. positions loans totaling $6.9 million
BRANCHBURG, NJ — G. S. Wilcox & Co. has arranged total mortgage financing of $46,340,628 in three separate transactions. The first transaction of $20,000,000 was made with The Prudential Insurance Company and secured by a 210 unit apartment building with one office tenant and underground parking. The G. S. Wilcox & Co. arranges financing of $46,340,628 loan term is a 20 year fixed rate with a 30 year amortiza- tion at 3.9%. The second transaction involved four separate loans all made through Great-West Life & Annuity Insurance Company and secured by 4 distinct properties compris- ing 564,895 s/f of industrial space. The loan amount of $24,240,628 has a 7 year fixed rate term at 3.62% and a 30 year amortization. Investors Bank provid- ed financing for the third transaction, a 68,810 s/f industrial building located in Branchburg, NJ. The sub- ject property involved a loan amount $2,100,00 with a 5 year adjustable rate 10 year term. ■
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10A — October 12 - 25, 2012 — Mid Atlantic Real Estate Journal
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F INANCIAL D IGEST
By Bruce Coin, Bruce Coin Consulting, Inc. The current commercial mortgage market
A
s we head in to the last quarter of the year, there is abun-
Fannie and Freddie to keep li- quidity in those markets while keeping long term interest rates low • The Mortgage Bankers Association reported that “The apartment market remains healthy with increased mort- gage debt outstanding and increased absorption.” • Morningstar Credit Rat- ings reported that “One half of the $1.4 billion in performing commercial mortgage backed securities loans scheduled to mature in August paid off in full as scheduled”.
• Fitch Ratings indicated that “delinquencies in com- mercial real estate loan col- lateralized debt obligations declined for the fourth straight month.” •Also according to the Mort- gage Bankers Association, $2.37 trillion of commercial/ multifamily mortgage debt was outstanding at the end of this year’s second quarter which was $10.4 billion, or 0.4 percent lower than the balance of loans in CMBS, CDO and other Asset Backed Securities at the end of the first quarter
as issues continued to de- cline.” • Buyers of commercial mortgage-backed securities are accepting yields on new issues as narrow as 0.85 per- centage points above an (re- spective) interest rate bench- mark, the lowest (rate spread) since 2007. • In the multifamily sector, Marcus and Millichap Real Estate Investment Services stated: “Because the supply side of the equation is pretty much in check, we’re expect- ing the current favorable
dynamics in the apartment market to continue. In fact it is safe to declare that we have regained pre-recession levels of vacancies across the country and across the entire apartment sector.” • The U.S. Labor Depart- ment on September 27th , in a revision of its preliminary estimate of its “benchmark” closely watched payrolls data, stated that the U.S. economy likely created 386,000 more jobs in the 12 months through the end of March of this year than it previously estimated. 453,000 more total private sector jobs were created than initially projected including 145,000 more jobs in the trade, transportation and utilities category, plus 85,000 more in construction. It is very possible that the additional QE III market support could impact the com- mercial mortgage and real estate markets as well as the targeted housing market. By keeping long term bond and mortgage rates low, more in- vestors seeking higher yields may look to commercial real estate and mortgages. Prices of equities, high yield bonds and the more risky CMBS bonds gained about 12% in 2010 as a result of the “fed’s earlier QE II easing. QE III could have a similar but probably not as pronounced impact. Analysts at Fitch Ratings feel that the QE III could also have a positive impact on Real Estate Investment Trusts. Obviously, if QE III drives long termU.S. Treasury rates even lower, all borrowers, including REITs, will benefit and that benefit could attract more investors to REITs. As stated in an earlier col- umn, the last 3 months of any (non-recessionary year) are usually a great time to obtain mortgage financing and usu- ally a great time to buy or sell depending on which side of that equation your busi- ness lies. The foregoing sup- ports that these last 3 months should see abundant amount of activity as confidence is and has been returning to the commercial mortgage market. Hopefully, the outcome of Na- tional election on November 6th will further stimulate confidence. Bruce J. Coin is director of Bruce Coin Consulting, Inc. ■
dant “good news ” and support for optimism for participants of the com- mercial real estate and financing in- dusties:
Bruce Coin
• The Federal Reserve fi- nally announced its QE III (quantitative easing) plan to buy more mortgage bonds from
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Mid Atlantic Real Estate Journal — October 12 - 25, 2012 — 11A
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F INANCIAL D IGEST
$14,500,000
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The undersigned arranged the above financing
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12A — October 12 - 25, 2012 — Mid Atlantic Real Estate Journal
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F inancial D igest
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Mid Atlantic Real Estate Journal — October 12 - 25, 2012 — 13A
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I nsurance /T itle
By Bernie Bittner, Fidelity National Title and Chicago Title Insurance Pennsylvania approves title insurance rate changes
F
or the first time in ten years, the Pennsylvania Department of Insurance
munity investment act, short form residential policies and enhanced residential coverage policies. Most of these classifications have been simplified to two categories, sale rates and non- sale rates. The loan modifica- tion and assignment rates and the various residential policies will continue to be available. The basic, re-issue, leasehold, subdivision, condominium, refinance, permanent loans following a construction loan, and community investment act rates will no longer be available.
Sales transactions will be charged at the sale rate and all other transactions at the non-sale rate, although there are some limited exceptions to that rule. One example is the simultaneous issue of an own- er’s and lender’s policy. Similar to the existing regulations, it will still be possible to charge only for the higher liability amount policy with the lower liability policy being provided at no additional charge, other than endorsement costs to the loan policy. The charge for the larger policy will be based upon the sale rate regardless
of whether that higher liability policy is an owner’s or lender’s policy. Another exception to the sale/non-sale application of rates relates to purchase and sale transactions in which a Buyer declines to obtain an owner’s policy but a loan policy is issued. In that case, the loan policy would be charged at the sale rate. Endorsements for simul- taneously issued owner and lender policies that are based upon a percentage of the pre- mium will be charged at the sale rate using the highest liability amount policy being
issued, regardless of whether that policy is an owner’s or loan policy. If only one policy is being issued, the percentage endorsements would normally be charged at the sale rate for owners’ policies and at the non- sale rate for lenders’ policies. However, if the transaction represents one of the excep- tions discussed above and the loan policy is being charged at the sale rate, percentage lender endorsements would also be charged based upon the sale rate. It should be noted that the regulations will continue continued on page 14A
has approved an increase in title insur- ance costs, which will be effective for all closings occurring on or after July 1st, 2012. In
Bernie Bittner
addition, the manner in which title charges are calculated will be simplified. Title insurance can be highly regulated, as it is for example in Delaware, New Jersey and New York, where the cost of insurance is strictly set by each State’s Department of Insur- ance. In some states, rates are negotiable, but there may be caps and floors to the permis- sible charges. Other states are very much unregulated and al- low for totally negotiated costs. Pennsylvania’s current rate structure is somewhat unique in its approach in that it main- tains a two tiered system that is strictly regulated up to a cer- tain threshold amount (which amount has changed over the years), but which is completely negotiable for liability amounts above that threshold. For the past decade or so, the rates were set for transactions up to $30 million and insurance pur- chased above that amount has been unregulated as to price. As a result of the new changes, costs will be set for all transac- tions, including that portion of the insurance policy that is over $30 million. In addition to setting the cost of insurance, the Pennsylvania title insurance regulations cover a wide range of matters including types of policies, coverages and endorsements that are available. The overall system of regulations under the current laws is rather complex. In fact, it’s probably safe to say that the details are only under- stood by title companies! Those rates and coverages include a basic, re-issue, leasehold, subdivision, condominium, refinance for loans that are up to two years old, refinance for loans that are two to four years old, modification rates for loans that are up to five years old, that are five to seven years old and that are over 10 years old, permanent loans following a construction loan, assignments of mortgages, properties covered by the com-
Strength. Expertise. Service.
Strength is a continuous process that requires effort, dedication, and discipline.
James D. Pullman, Vice President, Pennsylvania Commercial Manager 1515 Market Street, Suite 1325
Chicago Title and Fidelity National Title are mem- bers of the strongest title insurance family in the industry. Our rich history dates back more than 160 years and includes underwriters who col- lectively insure almost half of all the title insur- ance policies in the U.S. today. That’s the kind of strength that can benefit you and your custom- ers. We are proud of our accomplishments, our posi- tion in the market, the trust that our clients and partners place in us, our expert employees, and our financial strength — but we are never satis- fied. The same effort, dedication, and discipline that has helped us gain our current strength is what will help us maintain it. Call us to learn how our strength, expertise, and service can help your business.
Philadelphia, PA 19102 215-875-4179 (direct) 609-304-2848 (cell) pullmanj@CTT.com (email) Bernie Bittner, Vice President, Commercial Counsel 1515 Market Street, Suite 1325 Philadelphia, PA 19102 215-875-4139 (direct) 609-314-7217 (cell) Bernie.Bittner@FNF.com (email)
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