WebstaurantStore Distribution Center opens near Bloomsburg Kinsley completes constructionof 550,000 s/f distribution center in Pennsylvania

LOOMSBURG, PA — Kinsley Construc- tion, Inc. recently completed construction of a new 550,000 s/f Webstaurant- Store distribution center near Bloomsburg, PA. As the largest building in the area, the space features: • A temperature-controlled environment • A 11,400 s/f mezzanine with an elevator, offices, conference rooms, a storage space and a breakroom • A packing room • Conditioned storage space • 51 loading docks • A reception area and wait - ing room This new center will help the online restaurant supply company, owned by Clark As - sociates, better serve their Mid-Atlantic and New England BUSHKILL, PA — Der- mody Properties , a national private equity real estate investment, development and management company focused exclusively on the logistics real estate sector, has completed the construc- tion of two buildings total- ing 557,820 s/f in Eastern Pennsylvania. The property, LogistiCenter at Lehigh Val - ley East, is located at 450- 460 East Moorestown Rd. in Bushkill, which lies within B

they start shipping orders this fall. Kinsley Construction is a master builder headquartered in Central PA, with offices in WebstaurantStore distribution center

clients. The WebstaurantStore has hired 100 employees since opening the distribution center in June, and plans to hire an additional 150 employees once

Baltimore and Hagerstown, MD; Metro DC; Greater Phila - delphia and Eastern PA, serv- ing clients throughout the Mid- Atlantic region. MAREJ


Dermody Properties announces completion of LogistiCenter at Lehigh Valley East in PA

UPCOMING WEB CONFERENCES September 30, 2020 5 th Annual PA Healthcare & Medical Conference October 2, 2020 6th Annual NJ Industrial Real Estate & Development Conference For speaking and sponsorship info., please contact: Lea at 781-740-2900 or lea@marejournal.com

Properties’ commitment to this region and upholds our strategy to continue offering e-commerce-ready logistics properties for our customers.” LogistiCenter at Lehigh Valley East is only 20 min - utes from both I-78 and I-80. The property is 80 miles from the Port of New York and New Jersey and within prox- imity of the FedEx Ground Hub located in Bethlehem. “Eastern Pennsylvania is a key logistics market for Der- mody Properties,” said Timo- thy Walsh , partner and chief investment officer at Dermo - dy Properties. “Completion of LogistiCenterSM at Lehigh Valley East means another strategic opportunity for our customers in a high-demand area of the country.” LogistiCenter, a nationally trademarked brand owned and developed by Dermody Proper- ties, represents the company’s business philosophy of devel- oping class A distribution and logistics facilities that meet the supply-chain require- ments of the most innovative companies. MAREJ

Directory ROP (Front Section) .................................... Section A Contributing Columnist ... Paul G. W. Fetscher,CCIM, CRX, CLS Are You Ready for the “New Normal”? ................. 2A CCIM.................................................................... 4A Retail Development Reimagined . ..................... 5-11A People on the Move............................................ 14A Organization Events Calendar .............................. 16A Business Card/Billboard Directory .................... IBC A Owners, Developers & Managers ............... Section B Fall Preview. .............................................. Section C www.marej.com

LogistiCenter at Lehigh Valley East

the Northampton County submarket. Both buildings are immediately available for lease. Building 1 has 349,920 s/f of available space and offers a 36-foot clear height, 62 trailer spaces, one drive-in door, 197 car parking spaces and 1,750 s/f of office space. Building 2 has 207,900 s/f of available space and offers a 36-foot clear height, 39 trailer spaces, one drive-in door, 128

car parking spaces and 1,050 s/f of office space. “These state-of-the-art fa- cilities are in a highly desir- able location in the Lehigh Valley submarket, making the buildings ideal for compa- nies wishing to relocate to or expand in Eastern Pennsyl- vania,” said Eugene Pres- ton , East Region partner for Dermody Properties. “Logis- tiCenter at Lehigh Valley East demonstrates Dermody

Inside Cover A — September 25 - October 15, 2020 — M id A tlantic Real Estate Journal


M id A tlantic Real Estate Journal — September 25 - October 15, 2020 — 1A



AutoZone Philadelphia, PA $2,232,000

TD Bank Lexington, SC $2,400,000

Dollar General Mechanicsville, VA $1,665,000

Planet Fitness Thomasville, NC $2,250,000

CVS Stone Mountain, GA $3,000,000

Panera Bread Harrisburg, PA $2,025,000

Ethan Cole, PA Broker of Record License RMR003168 DZ Net Lease Realty, LLC, GA Broker of Record License H-63528





2A — September 25 - October 15, 2020 — M id A tlantic Real Estate Journal


M id A tlantic Real Estate Journal

M id A tlantic R eal E state J ournal Publisher, Conference Producer . .............Linda Christman AVP, Conference Producer ...........................Lea Christman Publisher ........................................................Joe Christman Marketing and Sales Specialist ................ Gabriella Gruber Editor/Graphic Artist ..................................... Karen Vachon Contributing Columnist ......................................Paul G. W. Fetscher, Great American Brokerage Inc.; Amy Lafontaine, CPA, Withum; Michael Mullin, IBS Mid Atlantic R eal E state J ournal ~ Published Semi-Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 350 Lincoln St, Suite 1105, Hingham, MA 02043 USPS #22-358 | Vol. 32, Issue 17 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Phone: 781-740-2900 | Fax: 781-740-2929 www.marej.com

Paul G. W. Fetscher CCIM, CRX, CLS

Are You Ready for the “New Normal”?

T he ”New Normal” … isn’t! We try to peer over the horizon to see what is ahead of us in the next quarter, next year and beyond. The picture is not very pretty. Retail real estate is different from any other type of com- mercial real estate. In retail, the rental value of the real estate is directly proportionate to the sales you can do at that premises. A 3,000 s/f attor- neys’ office real estate value is completely independent of his billings. It does not matter if he bills $1 million or $5 mil- lion per year, the value of his office space is simply a matter of supply and demand. But for the ground floor level retail space, there is a strong cor- relation between sales volume potential and retail rental rate. Nationwide, there have been substantial retail store clos- ings; Payless (2,500), GNC (1,200), Pier 1 (396), Stage Stores (738), Men’s Ware- house/Jos A Bank (500), New York & Co (405), Game Stop Exercising is a huge part of my outside activities when I am not working. I find it very helpful to exercise 1-2 hours a day to clear my mind and give myself a recharge. Another outside activity that I am passionate about is re- Matthew A. Cybularz Founder/CEO Years with company/firm: Alm st 5 Years Y ars in fiel : 5 Ye rs i real estat industry: 18


M id A tlAntic Real Estate Journal — 40 Under 40 — August 24 - September 13, 2018 — 19D


(320), Sears (closed 3,318 stores in the last decade), Forever 21 (791 Stores), Radio Shack (300), Kay Jewelers, Zale’s, Jared (300), Bed Bath & Beyond (260), AT&T (250), Victoria’s Secret (250), GAP (250), Modell’s (153), Borders, Barnes &Noble, Macy*s (125), Neiman Marcus, J C Penney (204), Lord &Taylor (21), Stein Mart, AC Moore, along with many others, continue to free up a glut of retail space. You don’t need to be a Nobel Laureate in econom- ics figure out what happens to rental prices when there is a vast oversupply of re- tail space and a significant slackening of demand. Prices

Drop-precipitously! There is an additional dis- tinction between dry retail space and a restaurant space. For instance, a 20,000 s/f ju- nior department store, on a slow day, can be run by two people. But when a busy Saturday comes, the retailer can put a dozen salespeople on the floor. A restaurant is not nearly so scalable. You can’t hire half a hostess, half a bartender, half a salad man, half a grill man or half a dishwasher. A restau- rant running at half capacity cannot scale to half the labor cost nor be profitable even if paying just half the rent. continued on page 14A corporate America. For me I knew my career path but I wanted to take any opp rtu- nity to get the experience. I was very fortunate it was an amazing company. It w s one of the best decision I made because I learned a lot. If you are a recent college grad that wants to be an en- trepreneur and start your own bus ess, go for it. Br instorm your ideas and just go with it. My website content and business model was created in the middle of the night when I woke up with an idea. I went for it. 

40 U nder 40 Matthew A. Cybularz, Level M Recruiting Group


“What makes me most successful is my passion and drive when working for clients and candidates”



hat is your great- est professional accomplishment?

advice would you give to a young executive gradu- ating from college today? My advice to a recent college grad would be to keep an ope mind when job hunting. I would focus more on op- portunity versus the salary/ hourly rate. If the comp ny is great and the opportunity is in the industry you want to be in, I would take it. Don’t get caught up on the pay, if you work hard you will be rewarded. As a recent college grad, I left our family business, taking a significant pay cut, to expl re


Commuting to college for four years while working a full- time job. After college, running two suc- cessful business at the same time is up there as well. How do you contribute to your company and/or the industry? As a person that has strong morals and values, I offer loyalty, honesty and integrity to our industry. Who or what has been the strongest influence in your career? Family: Mother, Father and 2 older brothers. What impact has social media/networking had on your career? Social media is a huge part of how I operate so efficiently. I have met with a lot of ex- tremely talented profession- als on LinkedIn, by far my favorite social media platform. What unique qualities and or personality traits do you feel makes you most suc- cessful in your profession? What makes me most success- ful is my passion and drive when working for clients and candidates. If someone gives me an opportunity, I refuse to let them down. I will work day in and day out to get what they need accomplished because I care. I would also say always be- ing flexible is big part of who I am. I always make myself available for clients and can- didates. What outside activities do you enjoy during your free time? these are a few of my favorite things College: Temple University Book: I do a lot of reading and research, however, they are all articles. Movie: Saving Private Ryan App: No Apps! I prefer using a desktop/laptop Team: New England Patriots Sport: I like all sports, wherever there is competition

searching or trading stocks and cryptocurrencies. Lastly, I enjoy cooking and ea t i ng hea l thy . Ea t i ng healthy home cooked meals is important to perform at a high-level day in and day out. What inspiring word of




Contact: Matt Cybularz President/CEO P:610-909-0409 | matt@levelmllc.com WWW.LEVELMRECRUITING.COM

M id A tlantic Real Estate Journal — September 25 - October 15, 2020 — 3A


M id A tlantic R eal E state J ournal

ACKENSACK, NJ — NAI James E. Hanson announced Lee of Coldwell Banker Fort Lee represents buyer in purchase of 80 Commerce Way Perkins &Todd of NAI James E. Hanson negotiate sale of 30,000 s/f Hackensack industrial building H

is among Bergen County’s smallest municipalities, its wide range of industrial build- ings and proximity to NewYork City make it stand out as a pre- mier industrial destination in the region,” said Perkins. “Our team’s deep experience in the Bergen County marketplace provides us with unparalleled insights into every town, city, and borough in the County that we can leverage on behalf of all of our clients looking for space in the market, whether they are a landlord hoping to attract a premier tenant or a tenant hoping to find a new home for their business.” MAREJ

kins, SIOR, Andrew Somple, SIOR , Todd, Greg James , and Justin Allessio represented the landlord, CPT NJ 30 Wes- ley, LLC, in the transaction with Guardian Data Destruc- tion, Inc. Standing at 246,000 s/f, 30 Wesley St. boasts 14’-20’ ceil- ings, two tailgates, and one drive-in. Less than one mile from I-80 and easily accessible from the NJ Tpke., Rtes. 17 and 46, The Garden State Pkwy., and NYC, 30 Wesley St. offers tenants an ideal location to service clients throughout the tri-state area. “Although South Hackensack

it has negoti- ated the sale of a 30,000 s/f industrial building lo- cated at 80 C o mm e r c e W a y i n Hackensack. NAI James E. Hanson’s Scott Per- kins, SIOR, and Chr i s Todd r e p - resented the s e l l e r , Ca - naan Korean Communi ty Chur ch , in the transac-

Scott Perkins

80 Commerce Way

Chris Todd

tion with the buyer, Pilgrim Mission Church, who was rep- resented by William Lee of Coldwell Banker Fort Lee . Situated on 2.19 acres, 80 Commerce Way is a 30,000 s/f single-story industrial/flex building that features 14’ ceil- ings, 85 parking spaces, one punch-out for a tailgate and one drive-in. The highly adaptable property boasts an accessible location with close proximity to Rte. 4 and is also a short distance from Rte. 17, I-80 and the George Washington Bridge. While suited to a wide range of uses, the industrial property was converted to a church by the previous owner whichmade it an attractive investment for the buyer, Pilgrim Mission Church, another local church searching for a new home in the area. “On the surface, it may seem serendipitous that the buyer we helped our client secure was also a church with similar space needs and operating ob- jectives, but this transaction can, in fact, be chalked up to our successful, tailored market- ing campaign for the property,” said Perkins. “While we lever- aged our depth and breadth of expertise in the industrial sector to market the building to a range of prospective users, at the end of the day we were able to identify a buyer that was a perfect fit for the property’s for - mer usage and could also take full advantage of the existing buildout.” In South Hackensack NAI James E. Hanson has negoti- ated a lease for 27,177 s/f of industrial space at 30 Wesley St. NAI James E. Hanson’s Per-

Former Bank Branches Auction Online Oct 26 - 28 at auctionnetwork.com

Open Public Inspections: 11-2pm Friday October 2

Prefer Not to Wait for the Auction? Submit a Pre-Auction Offer!

CHESTER, CT 9 Water Street

ADAMS CENTER, NY 13235 Main Street, Route 11

BUFFALO, NY 1510 South Park Avenue 8,510+/- sf Freestanding bank branch with walk-up ATM, on 0.36+/- ac. Nominal Opening Bid: $150,000

1,760+/- sf single story office/retail, with 30 surface parking spaces on 0.59+/- ac. Nominal Opening Bid: $150,000

1,421+/- sf single story vacant office building on 0.50+/- ac, built in 1976. Nominal Opening Bid: $50,000

SARANAC LAKE, NY 75 Main Street 11,169+/- sf partially leased commercial building, on 0.13+/- ac lot. Nominal Opening Bid: $175,000

TULLY, NY 1 Clinton Street, Po Box 630

JEANNETTE, PA 411 Clay Avenue 10,752+/- sf beautiful Art Deco Building, includes two stories and basement. Nominal Opening Bid: $75,000

6,750+/- sf commercial building on 0.18+/- ac. Part of the second floor is leased. Nominal Opening Bid: $75,000

Also Auctioning: 8.43+/- acres in established industrial area in Hamilton Township, NJ


4A — September 25 - October 15, 2020 — M id A tlantic Real Estate Journal


Questions? Contact: Harry Young | Executive Director 717.614.4271

harry@panjdeccim.com www.panjdeccim.com

2020 PA/NJ/DE CCIM CHAPTER OFFICERS Stacy Martin, CCIM President Hankin Group Jeff Kurtz, CCIM Vice President High Associates, Ltd. Dominic Janidas, CCIM Secretary/Treasurer Hanna Langholz Wilson Ellis John Birkeland, CCIM Immediate Past President ROCK Commercial Realty Eric Gorman, CCIM District 10 1st RVP Avir Realty Group 2020 DIRECTORS Dan Berger, Jr., CCIM Chair, Scholarships U.S. Commercial Realty Michele Countis, CCIM Chair, Designation Jackson Cross Partners Dragan Dodik, CCIM Regional Chair, Central PA Pennian Bank Philip Earley, CCIM Chair, Nominating Lieberman Earley & Company Jonathan Epstein, CCIM Chair, Public Relations Berger-Epstein Associates, Inc. Cindy Feinberg, CCIM Regional Chair, Lehigh Valley Feinberg Real Estate Advisors Craig Fernsler, CCIM Chair, Legislative KW Commercial, Blue Bell Robert Fuller, CCIM Regional Chair, New Jersey CBRE Jeffrey Hoffman, CCIM Chair, Education JPH Realty Advisors

Neil Kilian, CCIM, SIOR Regional Chair, Delaware NAI Emory Hill Laura Martin, CCIM, CPM, WBE Chair, Membership SVN | Latus Commercial Realty Group Andrew Miller, CCIM Regional Chair, Pittsburgh CBRE Kathy Sweeney-Pogwist Regional Chair, Philadelphia Metro Brandywine Realty Trust

R etail D evelopment R eimagined

M id A tlantic Real Estate Journal — Retail Development Reimagined — September 25 - October 15, 2020 — 5A


Bob Horvath, Todd Tremblay &Matt Nadler represent seller in sale of Harrisburg, PA Panera Bread Horvath & Tremblay completes the sale of four retail properties for $11.58 million

EDGEWATER,NJ — Levin Management Corporation (LMC) has been named man- aging agent for Marketplace at Edgewater, a popular, 73,000 s/f shopping center located at 725 River Rd. in Edgewater. The assignment represents the expansion of LMC’s Bergen County shopping center portfo- lio and underscores the North Plainfield -based company’s expertise in grocery-anchored retail, according to Joseph Lowry , senior vice president of acquisitions and business development. Set on almost six acres, Mar- ketplace at Edgewater is strate- gically located in New Jersey’s affluent “Gold Coast” mar- ket along the Hudson River. The property’s tenant roster includes Trader Joe’s, Oran- getheory Fitness, Harmon Face Values, Pet Valu, among oth- ers, along with eight privately ARRISBURG, PA — Bob Horvath, Todd Tremblay and Matt Nadler have successfully completed the sale of a Panera Bread in Harrisburg. Horvath & Tremblay represented the seller to complete the transac- tion at a sale price of $2.025 million, a 6.0% Cap Rate. The Panera Bread is located at 4640 High Pointe Blvd. in Harrisburg. The stand-alone building consists of 4,495 s/f and sits on 0.43 acres of land. Panera Bread has 9+ years remaining on a corporately backed, Triple-Net Ground Lease with three, 5-Year Op- tions. The lease features 10% rent increases every five years throughout both the current term and the option periods. Panera Bread is an outparcel to High Pointe Commons, a regional shopping center anchored by Target. The prop- erty is adjacent to exit 2 on I-283, which sees more than 60,000 vehicles per day. Kyle Danielson and Jus- tin Spillane of Horvath & Tremblay have closed on a H

Bob Horvath

Todd Tremblay

Matt Nadler

Chick-Fil-A in Fredericks- burg, VA. Horvath & Trem- blay represented the buyer to complete the transaction at a sale price of $1.8 million, a 4.09% cap rate. Chick-Fil- A is located 4220 Plank Rd. in Fredericksburg, VA. The stand-alone building consists of 3,781 s/f, and sits on 1.09 acres of land. Chick-Fil-A has been at this location for 20 years and has 5-years remain- ing on an absolute triple-net ground lease with two, 5-year options, each with a 10% rent increase. Chick-Fil-A is well located in a dense retail cor- ridor and has excellent traffic counts along Plank Rd. and I-95, 70,000 and 149,000 ve- hicles per day respectively.

Additionally, there are more than 117,000 people within a five-mile radius. Horvath & Tremblay’s Dan- ielson represented the buyer in the sale of Dollar General inMechanicsville, VA at a sale price of $1.665 million, a 6.0% cap rate. Dollar General is lo- cated at 6698 Cold Harbor Rd. in Mechanicsville, VA. This is a new construction Dollar General, the 9,100 s/f stand- alone building was completed in 2020 and sits on a 1.5 acre parcel of land. Dollar General has 14+ years of term remain- ing on a corporate guaranteed Absolute Net lease followed by five, five-year renewal options. The lease calls for a 10% increase at the start of

Panera Bread, Harrisburg

all five option periods. Dollar General is well positioned in the bedroom community of Mechanicsville, just northeast of Richmond. Bob Horvath, Todd Trem- blay and Brad Canova of Horvath & Tremblay have successfully completed the sale of CVS Pharmacy in Orlando, Florida. Horvath & Tremblay exclusively rep- resented the seller in this transaction and procured the buyer at a sale price of $6.09 million, a 5.12% Cap Rate. CVS Pharmacy is located at

particularly rewarding because it represents our first assign - ment with Capstone Realty Group . We intend to apply our proven management standards to all aspects of the center’s operation, to further enhance the property’s operational effi - ciency and maximize its strong curb appeal. Capstone was par- ticularly looking for our exper- tise and guidance to optimally navigate through the current COVID-19 retail environment.” Rob Friedberg , managing partner of Capstone added, “Marketplace at Edgewater, which has 33 tenants, has been more than 98% leased for the past six years. We chose Levin to manage our property due to their extensive experience and expertise with properties like this. Additionally, we felt that Levin will make a great part- ner with our leasing agents at Ripco .” MAREJ 5190 South Conway Rd. in Orlando, FL. The stand-alone building was constructed in 2003 and contains 13,824 s/f, including a drive through. The corporate lease has 20 years remaining on an Abso- lute Triple-Net Lease with an additional four, five-year op - tions. This location has fixed rent increases at the start of each option period. The property is well located near the intersection of South Con- way Rd. and Hoffner Avenue and sees more than 67,000 vehicles per day. MAREJ

Levin Management Corporation named managing agent for Marketplace at Edgewater in Edgewater, New Jersey

Marketplace at Edgewater ented center with an Internet- resistant tenant mix – includ- ing one of the most desirable

owned restaurants. “Marketplace at Edgewater is a well-occupied, service-ori-

specialty grocers,” said Lowry. “In addition to its high-profile nature, this appointment is

6A — September 25 - October 15, 2020 — Retail Development Reimagined — M id A tlantic Real Estate Journal


R etail D evelopment R eimagined

JLL team worked on behalf of The S.Hekemian Group, LLC JLL completes $116.3M construction financing for Phase One of the North Market development


a mezzanine loan through a life insurance company. Located at 1 Mercedes Dr. in the affluent neighborhood of Montvale, the North Market apartment development proj- ect will consist of a to-be-built luxury apartment community, including ground floor retail. The more general North Mar- ket project will be comprised of six buildings totaling 350 apartment units, 40,500 s/f of high-end boutique office space, a 150-room boutique hotel, 94,500 s/f of total retail space and a corporate office headquarter building of up to 250,000 s/f, positioned on

32.6 acres. North Market will play off the adjacent Shoppes at Depiero Farm, on its own additional 26 acres, a project also developed and owned by The S.Hekemian Group. The apartment units have been designed with functional floorplans, oversized windows, gourmet kitchens and designer finishes. The development will also focus on desirable com- mon area amenities such as a courtyard with a swimming pool, sundeck, barbecue grill and bar, outdoor firepit, fitness center, yoga and meditation room, co-working space and conference rooms, saunas and steam rooms and much more. JLL’s Capital Markets group representing the borrower was headed by senior managing director Thomas Didio . “The lenders did a terrific job committing and closing this project in the middle of the COVID-19 pandemic,” stated Didio. “If not for the best-in-class sponsorship, The S.Hekemian Group, and if the project wasn’t one of the best apartment projects being de- veloped in the Bergen County market, development would not have gone forward. Being located in the Montvale/Sad- dle River Market and directly adjacent to the Garden State Parkway and The Shoppes at Depiero Farms, with its We- gmans Supermarket, North Market is very uniquely posi- tioned. It will be the premier apartment property in Bergen County once it opens.” MAREJ Colliers facilitates three Hamilton Boulevard land sales ALLENTOWN, PA — Derek Zerfass and Scott Horner of the Collier s Allentown retail team have facilitated the land sales of 5621, 5591 and 5573 Hamil- ton Blvd. in Allentown. The teamworked on behalf of the owner, transacting the sales for $1.525 million. Purchaser TimTay Properties is a commercial real estate devel- opment company focusing in national tenants. Together, the adjacent sites comprise a 2.3 acre retail corner at Lower Macungie’s “Main and Main” – the inter- section of Hamilton Blvd. and Krocks Court. MAREJ

ORRISTOWN, NJ — JLLCapitalMar- kets has arranged

construction financing to - taling $116 mi l l ion for Phase One of the North Market de- v e l o pme n t i n Be r g e n County. T h e J L L

Thomas Didio

team worked on behalf of The S.Hekemian Group, LLC to arrange a three-year construction loan through an institutional senior lender and

Triboro Square


Julius Borrus Broker & President Borrus Associates 340 Rte 35 South Red Bank, NJ 0771 P: 908-839-0052

borruscommre@aol.com A Member Of The International Council Of Shopping Centers NY, NJ, CT, PA INVESTMENT REAL ESTATE

M id A tlantic Real Estate Journal — Retail Development Reimagined — September 25 - October 15, 2020 — 7A


R etail D evelopment R eimagined

ELVILLE, NY — A&G Real Estate Partners (A&G) Locations averaging 35,000 s/f are situated in prime shopping centers across the US A&G now marketing leases for 280 Stein Mart stores, plus distribution centers and offices M

has begun m a r k e t - ing l eases f o r 2 8 0 store loca- tions across the United States that a r e b e i n g c l o s e d b y


SteinMart, Inc. in connection with its voluntary Chapter 11 bankruptcy. The firm, which was retained as the retailer’s real estate advisor, is also of- fering leases for three distri- bution centers and two office properties. The Jacksonville, Florida- based chain’s stores range in size from 25,000 s/f to 51,000 s/f, and average 35,000 s/f. Stores are located in 30 states, with heavy concen- trations in Arizona, Califor- nia, Florida, Georgia, North Carolina, Ohio, South Caro- lina, Tennessee, Texas, and Virginia. “The Stein Mart stores of- fer excellent opportunities for expansion-minded retailers, grocers, gyms, entertain- ment venues, large medical facilities and other users to gain entry in coveted power centers, lifestyle centers and neighborhood centers at favorable rents,” said A&G Co-President Emilio Amen- dola . “With many of the leases also offering options, these sites are also attractive to investors.” Leases for distribution centers include a 91,761 s/f facility in Ontario, CA; a 75,050 s/f building in Grand Prairie, TX, and a 30,122 s/f site in Lithia Springs, GA. Also available are a pair of 32,200 s/f offices in Jackson - ville, FL. “These distribution centers and offices provide strong op - portunities for companies of all types to pick up leases for well-located properties at low rents,” said A&G senior man- aging director Mike Matlat . Stein Mart, Inc. and its subsidiaries filed voluntary petitions on August 12, 2020 for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Middle District of Florida – Jacksonville Di- vision. Liquidation sales are currently under way at all locations. MAREJ

Stein Mart

RECEIVER SALE Flex/Office Facility | Hagerstown, Maryland

INCREDIBLE SINGLE-USER FACILITY • 23,200 Sq. Ft. on 3.06 Acres • Turn-Key Facility • Built in 2005 • Office Suites, Over-Sized Conference Room, Computer Lab Ideal for Office, Industrial or IT Users

MIKE MATLAT 631-465-9508 | mike@agrep.com MICHAEL STANFORD 301-733-5388 | mstanford@cesproperties.com

8A — September 25 - October 15, 2020 — Retail Development Reimagined — M id A tlantic Real Estate Journal

M id A tlantic Real Estate Journal — Retail Development Reimagined — September 25 - October 15, 2020 — 9A



R etail D evelopment R eimagined

The owner-operator has continued to redevelop in PA and VT and across its portfolio Pandemic hasn’t stopped retail developer Heidenberg Properties Group from creatively adding value

F or the past few months, it hasn’t been hard to findretail horror stories. From the complete shut-down of enclosedmalls, thedramatic drop in retail sales, the rise in CMBS delinquencies for the retail asset-class and the ever- growing list of retailers filing bankruptcy including JCPen- ney, Nordstrom, J. Crew, 24 Hour Fitness, Gold’s Gym, California Pizza Kitchen, and GNC, there has been plenty of news about the retail indus- try…most of it bad. However, one retail developer has not only successfully man- aged its portfolio through the COVID-19 (coronavirus) pan- demic, Heidenberg Properties Grouphas launchedtworedevel- opment projects across different markets in itsportfolio, utilizing two different strategies. The first is the Hershey

While the partnership was memorialized prior to the Co- vid-19 pandemic, the partners

take advantage of them. In ad- dition to redevelopingHershey Square and creatively adding

“The COVID-19 (coronavirus) pandemic has brought uncertainty, stress and disruption to virtually every walk of life. It was critical for us to rally as a team, engage all of our stakeholders and work tirelessly to manage through it-together. However, we are in the business of adding value and that means both taking advantage of and creating opportunities to make our portfolio stronger. At Hershey Square, the Berlin Mall and other properties in the portfolio, there have been isolated victims, but those situations have allowed us to fine-tune our tenant-roster, add the type of retailers and non-retail users who have successfully evolved,

the convergence of Rtes. 422, 322 and 39, as well as being less than three miles from Hersheypark and its 2million annual visitors, Heidenberg Properties knew that the for- mer Kmart space would be at- tractive toavarietyof national retailers. Althoughfilling over 100,000 s/f of retail is never an easy task, the developer was poised once again to add value at the shopping center. From November 2019 through May 2020, Heiden- berg Properties executed

be desirable to top tier retail- ers and we couldn’t be more excited about the new tenant line up. The mix of treasure- hunt, value and experiential retailers that we are adding willwell-positionthisproperty for the long term.” To effectuate the redevelop- ment, Heidenberg Properties refinanced the property with Provident Bank. Provident Bank, headquartered in Is- elin, NJ provided the capital to take out the prior CMBS debt, as well as construction

and strengthen us for the years to come.” — Chief Operating Officer Jason Lazar

Hershey Square Shopping Center 1130 Mae Street,Hummelstown, PA 17036

received their official Act 250 Permit just weeks before the pandemic hit. While adjusting to the “newnormal”,Dousevicz, Inc., obtained its Vermont con- struction permit for Chestnut Place (the official name of the development) in May and commenced construction in June. Additionally, the Town of Berlin is pursuing a “New Town Center” designation for the mall property, as well as other adjacent lands, with the hopes of creating a walkable, pedestrian-friendly center that may include other housing, office and community uses. Most recently, the 34,000 s/f JCPenney location announced its closing, but the developers are signaling that a compelling replacement will soon follow as well as innovative uses for other outlots. Heidenberg Properties at- tributes its success in the pan- demic to theactiveengagement of its tenants, serviceproviders and lenders. The developer understood that each of these components were uniquely affected by the various stay- at-home orders and other gov- ernment restrictions and were determined to find mutually agreeable, if not ideal solu- tions. The upside was that this dislocation of “normal” created opportunities and Heidenberg Properties was determined to

uses to theBerlinMall,Heiden- bergProperties is intheprocess of negotiating new leases to spur development across its portfolio. According to Chief OperatingOfficer JasonLazar, “The COVID-19 (coronavirus) pandemic has brought uncer- tainty, stress anddisruption to virtually every walk of life. It was critical for us to rally as a team, engage all of our stake- holders and work tirelessly to manage through it-together. However, we are in the busi- ness of adding value and that means both taking advantage of and creating opportunities to make our portfolio stronger. At Hershey Square, the Berlin Mall and other properties in the portfolio, there have been isolatedvictims, but those situ- ations have allowed us to fine- tune our tenant-roster, add the type of retailers and non-retail users who have successfully evolved, and strengthen us for the years to come.” AboutHeidenbergProperties Heidenberg Properties is a full-service real estate devel- opment company focused on the acquisition and develop- ment of open-air shopping centers, net leased properties, and secured note purchases in the Eastern United States. The group is actively seeking newacquisitions and develop- ment opportunities. MAREJ

FromNovember 2019 throughMay 2020, HeidenbergProperties executed leases for over 90,000 s/f with companies comprising a “who’s who” of today’s leading retailers. In what the developer has been calling “Hershey Square 2.0,” Heidenberg Properties has entered into new ten-year leases with T.J. Maxx, Big Lots, Five Below, and Planet Fitness, and is building a new pad for Chipotle (including a drive thru and “Chipotlane”) in front of the Weis Markets. In addition, Weis added additional term to its lease, further demonstrating its confidence in the center.

leases for over 90,000 s/f with companiescomprisinga“who’s who” of today’s leading retail- ers. In what the developer has been calling “Hershey Square 2.0,” Heidenberg Properties has entered into new ten-year leases with T.J. Maxx, Big Lots, Five Below, and Planet Fitness, and is building a new pad for Chipotle (including a drive thru and “Chipotlane”) in front of the Weis Markets. In addition, Weis added addi- tional termto its lease, further demonstrating its confidence in the center. According to Heidenberg Properties’ VP of Real Estate Ken Simon, “These are exactly the types of opportunities we seekwhen we make acquisitions. We knew that this space would

financing for the re-tenanting. While the capital markets have been largely stagnant, Heidenberg Properties closed on this $32M refinancing in July and will commence construction in September. All new tenants are projected to be open and operating by Spring 2021. Provident chief lendingofficerWalterSierotko stated, “Refinancing in this environment is primarily sponsor-driven, especially as it relates to redevelopment. Heidenber g Properties and its partner, Strategic Real Estate Partners have the experience and track record to sufficiently mitigate executionrisk.Weare confident that thesedevelopers will deliver on their business plan and we are pleased to

Square Shopping Center lo- cated in Hummelstown, PA. Upon the departure of Kmart from 107,000 s/f in March 2019, Heidenberg Properties began marketing the anchor space for lease.Despitehaving an anchor in Kmart that was neither a draw nor a driver of cross-shopping, the balance of the tenantsatHersheySquare thrived. The 55,000 s/f Weis Markets, which added a beer garden in 2018, the 10,000 s/f Fine Wine & Good Spirits- Premium Collection, as well as Panera Bread, Five Guys, Visionworks, and Applebee’s all contributed tomakingHer- sheySquare thecenterof retail activity in the Hummelstown market. When combined with Hershey Square’s location at

The Berlin Mall Redevelopment in Progress 282 Berlin Mall Road, Berlin, VT 05602

The Berlin Mall 282 Berlin Mall Road Berlin, VT 05602

bring theminasnewcustomers to the bank.” Upon completion of the ten- ant fit-outs, Heidenberg Prop- erties projects Net Operating Income to increase by over 22% from its previously stabilized number. The Berlin Mall in Berlin, VTrepresentedanentirely dif- ferent sort of challenge for the

Properties Group entered into a unique partnership with Dousevicz, Inc. to develop 98 units of Independent, Assisted Living andMemoryCare units onone of theMall’s outlots. The Dousevicz family isavertically- integrated owner and operator of over 500 senior housing units throughout Vermont and being equally familiar

withVermont’s uniqueAct 250 Permit process, represented an ideal partner. By adding a residential component located on land adjacent to the exist- ingmall buildings,Heidenberg Properties will be taking its first step towards creating a vibrant town center, where people of all ages live, work and play.

New Jersey-based developers. The Berlin Mall boasts thriv- ing anchors in Walmart (one of only five in Vermont), Kohl’s which opened in March 2016, and the more recently added junior anchorPlanet Fitness in December2017.Despite strong performing anchors however, the Mall’s inline tenants have experiencedmixedresults. The

Mall’s owners were convinced that in order to survive long term in this challenging envi- ronment, a new approach was required. Taking advantage of the property’s size (over 65 acres), proximity to major highways such as Routes 89 and 62 and major employers such as the Central Vermont Medical Center, Heidenberg

10A — September 25 - October 15, 2020 — M id A tlantic Real Estate Journal


M id A tlantic R eal E state J ournal

Johnson, CCIM negotiates sale of Pepper’s Ferry Plaza on behalf of the seller Ashby IV & Strieffler of Cushman & Wakefield | Thalhimer handles 12,995 s/f lease at Stony Point SC

ICHMOND, VA — Cushman & Wake- field | Thalhimer announced that Trader Joe’s leased retail space to join Stony Point Shopping Center, a 114,422 s/f neighborhood center located at Huguenot Road and Forest Hill Avenue in Richmond, Virginia. Trader Joe’s will co-anchor the center in a 12,995 s/f space that is currently under renova- tion in the former Martin’s/ Ukrop’s space. Stony Point Shopping Center is being re- named to Stony Point Village, and a new pylon sign will be installed in the near future. R

Ziff Properties

Stony Point Shopping Center

RE_ad_version1.qxp 11/2/2005 11:54 AM Page 1

Owned by Ziff Properties Inc. , out of Charleston, SC, current tenants in the cen- ter include Good Foods Gro- cery, Gelati Celesti, Pet Valu, Southbound Restaurant, The Music Tree, Hair Cuttery, Bikram Yoga, and Einstein Bagels. Stony Point Shop- ping Center enjoys excellent access along Huguenot Road and is surrounded by major residential just south of the James River. Trader Joe’s is an Ameri- can chain of grocery stores headquartered in Monrovia, California. By 2015, it was a competitor in “fresh format” grocery stores in the United States. By November 2019, Trader Joe’s had over 503 stores nationwide in 42 states and Washington, D.C. James Ashby IV and Pam Strieffler of Cushman & Wakefield | Thalhimer han - dled the lease negotiations on behalf of the landlord. The cen- ter currently has up to 20,774 square feet adjacent to Trader Joe’s available for lease. In other news, Cushman & Wakefield | Thalhimer an - nounced the sale of Pepper’s Ferry Plaza (shown above) located at 290 Peppers Ferry Rd. in Christiansburg, VA. Collegiate Investment 290, LLC purchased the 9,525 s/f retail strip center from Family Peppers Ferry, LLC for $3.25 million as an investment. Jessica Johnson, CCIM of Cushman & Wakefield | Thalhimer handled the sale negotiations on behalf of the seller. MAREJ

Seeking Retail Opportunities Consistently Ranked #1 Franchise - 50+ Y ear T rack Record

Looking for sites in PA & S. NJ End Cap, In-line, Free Standing Flexible Space Requirements

Non-Traditional Venues - Hospitals/Colleges Universities/B&I/Stadiums/Casinos/Airports

Eastern PA — Local Contacts: Philadelphia PA & Southern NJ —

610-366-8120 x 24, Cheryl Green green_c@sdepa.com 410-752-6760, Evan Brodie evan@sandhumanagement.com

realestate.subway.com www.subway.com


M id A tlantic Real Estate Journal — Retail Development Reimagined — September 25 - October 15, 2020 — 11A


R etail D evelopment R eimagined

Issenberg Britti Groupwith assistance of Beuche ink deal Marcus&Millichap arranges sale of walgreens for $5.7M

Bennett Williams Commercial complete 12.80 acre sale

LLENTOWN, PA — Marcus & Millichap announced the sale of Walgreens, a 15,064 s/f net- leased property located in Allentown, according to Ryan Nee , regional manager of the firm’s Miami office. The asset sold for $5.75 million. The buyer was secured and represented by Gabriel Britti, Ricardo Esteves and Ronnie Issenberg , investment spe- cialists inMarcus &Millichap’s Miami with assistance fromPA regional manager and broker of record, Sean Beuche . “This was a 1031 replace- Fox and Zarpas of DRE broker 4,800 s/f lease A Suffolk West Plaza VIRGINIA BEACH, VA — Divaris Real Estate, Inc. (DRE) announced the following transactions: The Fishin’ Hole leased 4,800 s/f of retail space in the Divaris-leased Suffolk West Plaza located at 837 West Constance Rd. in Suffolk, VA. George Fox and Caroline Zarpas represented the land- lord in the lease negotiations. Fresenius Kidney Care re- newed its lease for 4,800 s/f of retail space in the Divaris- leased and -managed Armory Plaza located at 1311 Armory Dr. in Franklin. Fox repre- sented the landlord in the lease negotiations. JPM Real Estate Va, LLC purchased the 3,825 s/ f Dunkin and Subway leased strip center located at 208 Birdneck Rd. North in Vir- ginia Beach from Kaveri En- terprises, LC for $1,377,500. George Fox represented the buyer in the investment sale. The buyer owns and operates the Dunkin at this location. Taco Vamonos leased 1,800 s/f of retail space in Hayes Shopping Center lo- cated at 7254 George Wash- ington Memorial Highway in Hayes, VA. Kris Fuller and George Fox represent- ed the tenant in the lease negotiations. MAREJ

170 Crossway Dr.

I-83 & Leader Heights Road. The very robust demographics, and a short drive time from Baltimore MD, Harrisburg, PA and Lancaster attracted many buyers to the site and ulti- mately South County Brewing was the buyer for a sale price of $1.1 million. MAREJ

YORK TWP., PA — Keith Kahlbaugh and Dennis Nei- man of Bennett Williams Commercial represented the seller and buyer in the sale of 12.80 acres of commercially zoned land located at 170 Crossway Dr., York Twp. The property offers direct access to

1702 W. Tilghman St.

ment property for our client who assumed the in-place CMBS loan supporting the strong demand for essential business, single tenant proper- ties,” said Issenberg.

Walgreens is located at 1702 W. Tilghman St. in Allen- town, PA. “There is 14+ years remaining on an original 20- year, absolute net lease,” said Esteves. MAREJ

No matter what lies ahead in a world of constant change, Levin has the experience and skill to guide you through.

Levin’s retail professionals provide integrated solutions that keep our clients’ assets fresh and ahead of the competition. With nearly 70 years of proven commercial real estate expertise and a focus on the Northeast market, it is no wonder so many owners switch to Levin to navigate today’s complex waters. Get the Levin focus for your property. levinmgt.com

Contact Us Today JOSEPH LOWRY SR. VP, Acquisitions & Business Development 908.226.5297

12A — September 25 - October 15, 2020 — M id A tlantic Real Estate Journal


M id A tlantic R eal E state J ournal

Trader of Rinnier Development represents buyer SVN Miller Commercial Real Estate ink 12,216 s/f mixed-use S

Whitty &Ford of MacKenzie CRE rep. tenant Murray of CREG arranges 3000 s/f lease at 210 Allegheny Ave.

TOWSON, MD — Chesa- peake Real Estate Group, LLC (CREG) has elevated 210 Allegheny Ave., a five- story, 30,000 s/f commercial office building situated in Towson to 87% occupancy with its recent 3,000 s/f lease to Blue Harbor Benefits, LLC. Christopher Murray , vice president of Chesapeake Real Estate Group repre- sented the landlord and Bill Whitty , senior vice president and principal of MacKenzie Commercial Real Estate Services and Henson Ford , senior real estate advisor, MacKenzie Commercial Real Estate Services represented the tenant in this transaction. Blue Harbor Benefits in- tends to locate from its exist- ing location on York Rd. by the end of the year. The com- pany provides a full range of benefit programs to individu - als and businesses including

ALISBURY , MD — Chris Peek, CCIM with SVN Miller Commer- cial Real Estate recently bro- kered the sale of 2330 Scenic Dr., Salisbury. Peek worked with listing agent Matt Trad- er of Rinnier Development . Peek represented the buyer, prominent regional developer Gillis Gilkerson, and Trader worked on behalf of the seller. As noted by Joey Gilkerson of Gillis Gilkerson , “We are thankful for the collabora- tive environment within our brokerage community. Peek and Trader worked together to make this transaction as smooth and seamless as possi- ble. We truly felt that Peekhad our best interests at heart every step of the way.” The high ceiling, 12,216 s/f office-warehouse building was previously occupied by RDI

210 Allegheny Ave.

There are three areas to be addressed with respect to rents: Past, Present and Future. There is no “One Size Fits All” solution. Different seg- ments of the restaurant indus- try had differing levels of pain. QSRs with a drive-thru could still do 80% of sales. Fast ca- sual operations were closer to 50% of sales. Full service with liquor was hit even harder, with catering hit worst of all. A white tablecloth restaurant with a $75-$100 check average simply cannot compete in the take-out market. A well-tailored solution needs to permit everyone to get thru the Covid-19, and the other challenges facing the industry. There will be a certain sharing of pain. It will require some belt tightening and some sacrifices. We will still need help from federal and state governments to help preserve jobs. With mutual understanding we can all emerge and survive. We can take solace in the fact that man is a social animal. We like to gather. We have been going to the market for over 4,000 years. But most of all, we know that people will still have to eat. We need to have restau- rants there to serve them. Paul Fetscher, CCIMCRX CLS is a commercial real estate broker with decades of experience in restau- rants and retail. MAREJ health insurance, dental and vision plans, and group life and disability coverage. The firm also performs executive benefit planning and insur - ance analysis among other services. “We successful executed our strategy to build long- term value in this asset by raising 210 Allegheny Ave. to best-in-class status within the Towson central business core and attracting strong creditworthy compa- nies to the building,” said Murray. MAREJ

2330 Scenic Dr., Salisbury

Wire and Cable Solutions. The building is located in the Northwood Industrial area and is a clean, turnkey solution

with both drive-in and dock- high access for users looking for prime office-warehouse space at a reasonable price. MAREJ

Are you ready for the “New Normal”?

recently reported the highest number of vacant stores ever. Restaurants and retailers are failing at an unprecedented rate, with more permanent closings to come. So, what’s a landlord to do? First is the realization that the tenant must have an oc- cupancy cost that is prudent. The rents that will be tolerable in the future, may not be, and probably will not be as much as the previous tenant was pay- ing. We are entering into an extraordinarily strong buyer’s market. Any restaurateur will be able to pick and choose among numerous turnkey op- portunities in the marketplace. Equipped spaces that used to command key money, tomor- row will simply be spaces that will be more likely to command some rent, any rent, sooner. Second is the need to be flex - ible in deal and rent structure. Several deals are currently being written with just a per- centage of gross sales until Covid-19 restrictions are lifted. Landlords used to have con- cerns about getting reliable sales figures. In today’s touch - less society, transactions are taking place via credit cards. Everyone wants the “miles” from their credit cards. So, re- liable sales figures can rather easily be tracked from credit card statements coupled with non-resettable grand total cash registers. Simply put, with the drastic

rise in labor costs, coupled with significant rises in insurance premiums, today’s restaurant cannot afford to pay the same rent they could a mere six years ago. Those that have survived the current crisis are unlikely to see any profits whatsoever this year and into next year as well. There is no precedent or roadmap for the present situ- ation. Some landlords have already defaulted to the posi- tion of “We have a lease. Pay me the scheduled rent.” Not so fast! Restaurateurs did not choose to be denied “Use and Occupancy”. What we have is a matter of Force Majeure. A typical clause pro- vides for: “Landlord and tenant shall each be excused from perform- ing its obligations in the event, but only so long as the perfor- mance of its obligations are prevented or delayed, retarded or hindered by act of God, fire, earthquake … riot, mob vio- lence … government action or inaction …or any other cause, weather similar or dissimilar to the foregoing, not within the reasonable control of the party or its agents, contractors or employees.” A landlord has the right to argue that in court ... and get on the end of an awfully long line. “Something is better than nothing -and sooner is better than later”. Preferably, parties

can come to the negotiating table and work out a solution. Restaurants throughout many nations have been or- dered to shut. If a restaurant has been forced to close, there is no question about it, the restaurant does not have the ability to pay rent. And, unfor- tunately, there is no certainty as to when this will be over! After an initial shutdown, the focus became figuring out how to cope. Restaurants that previously had 10% of their sales in takeout or delivery, soon had a 100% increase in that category. That meant they were only down 80% of their sales. Operators did their best to Pivot. They did meal kits, box lunches, produce & grocery de- livery services. Mercifully, east coast states and others have permitted delivery of alcohol. Try though they might, sales were still below normal, and staff had to be laid off. Not all retailers need as much help thru this. Grocery stores, pharmacies, and liquor stores have enjoyed above usual sales. But restaurants need the help most of all. A landlord with numerous tenants is faced with individ- ual negotiations. As a prepara- tion, it would be productive to have one meaningful negotia- tion with the lender. Interest only or forbearance would give himmore latitude to work with his tenants.

continued from page 2A Here are the brutal facts of the restaurant industry. Due to Covid-19, by April 30, 2020, 80% of the New York State restaurant workforce had been laid off or furloughed. Without help, almost 2/3 of all New York restaurants are likely to close by the end of the year. The majority of those believe they will be unable to last past October unless there is a strong federal program of ad- ditional financial assistance. Were it not for PPP (Payroll Protection Program), the ma- jority of all restaurants now would already find themselves closed permanently. The economics of the restau- rant industry have changed drastically. Comparing 2019 to previous years, sales were flat, commodity costs were up, but labor costs were way up. In 2014, the New York tip credit wage was $5/hour. No one who signed a lease in 2014 or ear- lier saw a $15/hour minimum wage coming down the road. Many leases have annual 2%-3% annual increases. The reality is, comparing the costs of living, the actual increase from 2010 to 2020 was a mere 1.63%/year, compounded. So, costs grew more than sales. There is no dismissing cer- tain undeniable factors. New York City and its surroundings are currently enduring grow- ing high vacancies. CBRE, the commercial real estate firm,

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