Eastdil serves as broker in transaction Meridian Group acquires two office buildings in Tysons, VA for $58.25million
ISSUE HIGHLIGHTS Volume 32, Issue 9 May 15 - 28, 2020 5-19A NEW JERSEY/ PENNSYLVANIA MULTIFAMILY DEVELOPMENT SPOTLIGHT UPCOMING CONFERENCES 6 th Annual NJ Industrial Development Conference September 2, 2020 6 th Annual NJ CRE Leadership Honoring Women in Real Estate September 9, 2020 5 th Annual PA Healthcare & Medical Conference For speaking and sponsorship info., please contact: Lea at 781-740-2900 or firstname.lastname@example.org Section B
YSONS, VA — The Meridian Group has acquired two office buildings in Tysons: • 1951 Kidwell Dr., an eight-story class B office building. The 172,957 s/f building is 75% leased. • 1953 Gallows Rd., an eight-story class B office building. The 256,714 s/f building is 55% leased. Together, the buildings total 429,671 s/f and are 64% leased across both properties. • Broker: Eastdil • Purchase price: $58.25 million About the buildings: The properties are located at an ideal access point at the in- tersection of Rte. 7 and the Capital Beltway (I-495) and within a half mile of Tysons Corner Center. The build - ings offer an ideal combina- tion of unmatched location, competitive asking rents, signage visibility from I-495 and a recently upgraded ame- nity package. The property T
1951 Kidwell Dr.
1953 Gallows Rd.
at 1951 Kidwell Dr. features prominent signage opportuni- ties along I-495. The building at 1953 Gallows Rd. is adja - cent to Fairfax Square, the premier non-Metro mixed-use complex in the area boasting multiple full-service restau- rants, coffee bars and an Equinox fitness club. Both properties feature easy and rapid access in and out of Ty- sons via Rte. 7, Chain Bridge Rd. and Gallows Rd. Gary Block , partner and chief investment officer of
The Meridian Group, offers his perspective: Why did Meridian decide to buy these two buildings? “Meridian has long been believers in the ongoing re- naissance in Tysons,” Block said. “The 950,000 s/f of net absorption in Tysons in 2019 -- making it the top perform - ing DCMetro area submarket of the year -- further sup- ports our bullishness. These buildings fit into Meridian’s existing Tysons portfolio as a compelling value alternative
for cost-conscious tenants that are priced out of office buildings closer to Metro.” What plans does Meridian have for these buildings? “The majority of the capital invested into the property will be to lease up existing vacancies,” Block said. “Me - ridian is planning a capital project to drive leasing ac - tivity, including a modest renovation of the amenities and common areas as well as updating the back of the house.”
Cushman & Wakefield orchestrates sale of Lawnside Commons shopping center $31.55M
LAWNSIDE, NJ — Cush- man & Wakefield’s Capital Markets team has arranged the sale of Lawnside Commons, a 151,000 s/f retail property in Lawnside. Located at 310 White Horse Pike, Lawnside Commons traded from an undisclosed
Directory ROP (Front Section) .................................... Section A Contributing Columnist ...Steve Hovland, Marcus & Millichap Federal Reserve Delivers Aggressive Monetary Policy Early in Coronavirus Outbreak .............................. 2A Multifamily Development . ............................... 5-19A CIRC..................................................................... 4A Business Card Directory & Billboard Directory..... 23A New Jersey/Pennsylvania................................1-BC B People on the Move............................................20B www.marej.com
institutional seller to a joint venture partnership between MCB and United Hamp- shire US REIT . The com - mercial real estate services firm represented the seller and procured the buyer in the $31.55 million trade or - chestrated by East Ruther - ford-based investment sales specialists Andrew Merin, David Bernhaut, Gary Ga- briel, Brian Whitmer, Kyle Schmidt and Max Helfman, along with Karen Iman and
egress, including a signalized intersection off Rte. 30. “Lawnside Commons is sup- ported by affluent demograph - ics and a densely-populated trade area with a population of 286,000 people within a five- mile radius,” said Whitmer. “Currently 100% leased to a seasoned lineup of long-time national tenants, this asset presented an incredible oppor- tunity to acquire a best-in-class retail property just eight miles from Philadelphia.”
Keith Braccia of the firm’s Philadelphia office. Anchored by Home Depot, the center’s co-tenancy includes nationally-recognized names such as PetSmart, Wendy’s, T-Mobile and Mattress Firm. The property offers excellent visibility at the crossroads of a primary commuting corridor in proximity to I-295 and the NJ Tpke. Lawnside Commons boasts ample parking, excel - lent highway visibility and four separate points of ingress/
Inside Cover A — May 15 - 28, 2020 — M id A tlantic Real Estate Journal
In Memory of KIMBERLY BRUNET
A Great Friend and Coworker
Kimberly Brunet (Powers), age 37, of E. Bridgewater passed away suddenly on April 19, 2020. Kim attended schools in Canton and Braintree prior to graduating fromWhitman-Hanson Regional in 2001. After school Kim worked as a hairdresser for a few years until she got married moved to Pembroke and had two children. She enjoyed her work at Mid Atlantic Real Estate Journal for the last five years where she made many friends. Kim was a natural caregiver who always took care of others before thinking of herself. She loved spending time with her family above all else and had a special place in her heart for her dog, Layla. Kim is survived by her cherished children Logan, Cheyenne, and their father Jason of Pembroke. She is also the loving daughter of Theresa Sweezey (Flynn) and her husband Ken of E. Bridgewater, her sister Kathy Powers and her fiancé Kenny of S. Easton her grandmother Margaret Martyn (Flynn) of E. Bridgewater, and many loving aunts, uncles, cousins, and friends.
M id A tlantic Real Estate Journal — May 15 - 28, 2020 — 1A
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2A — May 15 - 28, 2020 — M id A tlantic Real Estate Journal WE FIX: CRAWLSPACES
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M id A tlantic R eal E state J ournal Publisher, Conference Producer . .............Linda Christman AVP, Conference Producer ...........................Lea Christman Publisher ........................................................Joe Christman Editor/Graphic Artist..... .................................Karen Vachon Contributing Columnists ............ Steve Hovland, Marcus & Millichap; Ronald Diskin, Ronald Diskin Associates 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 9 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
Federal Reserve Delivers Aggressive Monetary Policy Early in Coronavirus Outbreak F ederal Reserve pulls all the levers to bridge U.S. economy through a global pandemic. The Fed- eral Open Market Committee (FOMC) unleashed its broad and sizable arsenal this week, highlighting the impact CO- VID-19 will have on the na- tional economy and the central bank’s willingness to be accom- modative early in the cycle to dampen an economic downturn. Nonetheless, an increase in unemployment claims and job cuts is unavoidable as a signifi - cant wave of retail, hospitality, travel and other parts of the consumer-based economy are shuttered. Congress is also undertaking dramatic efforts to minimize the consequences of job losses. Uncertainty sur- rounding the impact of these actions remains high, though little doubt remains on the will- ingness of the central bank to move far more quickly to prop up markets and the economy than during the early days of the Great Recession. In a decisive move, the
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Federal Reserve dropped the federal funds rate to be- tween 0 and 0.25% ahead of a regularly scheduled meeting. Decreasing the overnight rate to the “zero-bound,” where it rested for several years during the Great Recession, maximizes the use of one of the central bank’s tools to manage the global economic slowdown. The move is de- signed to maintain liquidity so financial markets do not freeze like they did in the last recession. The Fed leveraged another option in its toolbox as quantitative easing joined the rate cut to provide temporary support to the economy. The first action undertaken by the Fed was an injection of more
than $1 trillion of liquidity into the market by purchasing short-term Treasurys. When the Fed cut rates on March 15, it also included a $700 billion bond-buying round of quanti- tative easing. A total of $500 billion in Treasurys and $200 billion in mortgage-backed securities will be added to the bank’s balance sheet. Prior to the announcement, the Fed’s balance sheet was $4.3 trillion, down $200 billion from the $4.5 trillion level maintained through most of the recovery. The FOMC announced un- limited quantitative easing. In an effort to calm markets and soften the blow the U.S. econ- omy faces during the second continued on page 20A
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M id A tlantic R eal E state J ournal By Ronald Diskin, Ronald Diskin Associates Current state of the insurance market and challenges
s a building owner these are unusual and unprecedented
1. The current environment of the insurance market has seen a significant tightening of coverages and rising premi- ums. The industry premiums on the multifamily segment show up to a 30% average in- crease. Hotels, Office and retail buildings as well as industrial buildings are facing similar price increases. 2. Some insurance carrier have put a mortarium on new business and renewal premiums are rising SIGNIFI- CANTLY 3. Covid 19 has made collec- tion of rents very difficult, In
New Jersey tenants can ask to have their security used in lieu paying rent- check the statue in your state 4. Eviction process has been halted 5. Non admitted or excess carriers do NOT have to give you advanced notice of pre- mium increases or change in coverages-they can wait till the last minute to give you pricing Possible answers to ad- dresses these challenges: A. Talk to your agent at least 30 days in advance of your renewal -
a. Make sure they marketing your account b. Explore higher deduct- ibles to help decrease the renewal increase B. Ask if they have access to programs to meet your insur- ance needs on your portfolio C. Excess/umbrella premi- ums are on the rise-ask you agent if you qualify for an umbrella program. D. Especially if you are in- sured with a non-admitted or excess carrier, make sure you speak with your agent regard- ing the renewal pricing 30 to 45 days prior to your renewal.
Do not assume it will just happen and you want time to explore other options if there is a significant increase. In closing, it is extremely important for building owners to be proactive on their insur- ance. The last decade has been a soft market and carriers were offering renewals with very little increases. YOU MUST GET AHEAD OF THE RENEWALS. Ronald Diskin is presi- dent & CEO of Ronald Diskin Associates, A Divi- sion of Insurance Office of America (IOA).
times. See below for a list of some of the chal- lenges that b u i l d i n g owners are c u r r e n t l y facing and possible so- lutions:
NAI Global president & CEO Jay O l s hon s ky named honorary CCIM designee NEW YORK, NY — NAI Global senior VP operations LindsayFierro announced that
M id A tlAntic Real Estate Journal — New Jersey — May 11 - 24, 2018 — Inside Back Cover B
NAI Global p r e s i d e n t a n d C EO J a y O l - s h o n s k y , F R I C S , SIOR , has b e e n b e - stowed the H o n o r a r y
Customized Packages Apartment Complexes Co-op's Mixed Use Buildings (Apartments with Merc) Condo's Shopping Centers Office Buildings Warehouses Hotels & Motels
INSURANCE COVERAGE FOR INVESTMENT PROPERTIES RISK IS A GIVEN IN BUSINESS TODAY. HOW MUCH YOU MANAGE RISK IS NOT. You may be insured, but is your insurance really covering your needs? Purchasing insurance is a major business expense and probably one of the most misunderstood products you purchase. If not properly covered, you can suffer severe financial losses. COMPREHENSIVE COVERAGE AGGRESSIVE PRICING
CCIM designation from the CCIM Institute, one of the most prestigious associations in the commercial real estate industry. “The nominations for honor- ary CCIM status are for those who demonstrate a high level of knowledge, service, and suc- cess in the commercial real es- tate industry. Your petitioner, Karl Landreneau, CCIM, SIOR , and CCIM Institute are honored to recognize your accomplishments and leader- ship, and I hope that you will accept this honor and proudly join the ranks of CCIM,” wrote Gregory Fine, FASAE, CAE and CEO of CCIM Institute, in a letter to Olshonsky inform- ing him of the decision. CCIM is a commercial affili - ate of the National Association of Realtors and draws from over 1.4 million members and are the largest international commercial brokerage net- work in the world. There are 13,000 CCIM members based in more than 1,000 markets in 30 countries around the globe. Fewer than 10% of commer- cial real estate investors and advisors earn the CCIM des- ignation by completing highly complex courses that teach real estate professionals the science of buying and selling investment-grade property.
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4A — May 15 - 28, 2020 — M id A tlantic Real Estate Journal
Commercial-Industrial Realty Council Great CRE Events...Cont. Education...Speakers...Networking www.CircDelaware.org
2 0 2 0 d i r e c t o r s — O F F I C E R S — President: Robert Stenta Pettinaro Management, LLC Vice President + Program Chair: Jay L. White , MAI, CRE® Apex Realty Advisory Treasurer: Barton L. Mackey, Jr. Patterson-Woods Associates Secretary: Bayard Snyder , Esq. Bayard & Associates — D I R E C T O R S — Education Chair: Cynthia Fleming Jones Lang LaSalle
SCHEDULE OF EVENTS
May 13/June 9 - Luncheon CANCELLED June 29 (Mon.) - Golf Outing POSTPONED We will rescheduled our annual golf outing when restrictions have been lifted due to COVID-19. We believe that 2-per cart, and great food and beverage options are key! Check status online: www.circdelaware.org CONTINUING EDUCATION Instruction by Frederick Academy of Real Estate Check for future classes at www.CircDelaware.org Schedule of Classes Accredited: DE*PA*MD*NJ See Online Schedule for Credit Details. Discounts for early registration. Register online & Download PDF schedule at: www.circdelaware.org/education/schedule.cfm DUE TO COVID-19 CRISIS, WE HAVE CANCELLED OUR LAST TWO CLASSES. STAY TUNED. WE PLAN TO RETURN IN THE FALL. May 13/June 9, 2020 —CANCELLED DE Mod.1 - Fair Housing, Agency, Ethics DE Mod.7 - Exchanges & Opp. Zones We suggest that any Delaware and Pennsylvania continuing education re- quirements be completed using online retailer, such as The CE Shop or anoth- er retailer of your choice. Delaware License Renewal- 4/30/2020 When renewing, if you attested that you did not complete your CE requirement, you will be given 60 additional days once the Governor lifts the Delaware State of Emergency. Pennsylvania License Renewal- 8/29/2020 Under the State Real Estate Commission, renewal deadlines for all license types will be extended from May 31, 2020, to Aug. 29, 2020. The CE renewal cycle has also been extended to August 29, 2020. You must complete 14 hours of CE, including the required mandatory topics if applicable, between June 1, 2018 and August 29, 2020 in order to meet the requirements.
Membership Chair: James Manna
BrightFields, Inc. Past President:
Donald Robitzer The Commonwealth Group Benjamin Berger, Esq. Berger Harris, LLC Carmen Facciolo NAI Emory Hill Michael Hahn 44 Business Capital Jim O’Hara , Jr. NAI Emory Hill-Retail Division Lorraine Sheldon NAI Emory Hill Daniel Wham DSM Commercial Real Estate Ryan Kennedy Harvey Hanna & Associates — E X - O F F I C I O — Business Manager Janet S. Pippert Landmark Science & Engineering Legislative Lobbyist C. Scott Kidner C. S. Kidner & Associates Legislative Affairs Chair William Lower Harvey Hanna & Associates Economic Dev. Liaison - NCCC Robert Chadwick New Castle County Ec. Dev. Council Economic Dev. Liaison - State of Del. Joseph Zilcosky Delaware Div. of Small Business c o n t a c t u s Janet@circdelaware.org (302) 633-1705
Meet Our New Members (below, from left): Mike Boppell of LandCare; Bob Elder of Santora & Associates; Unknown; Giff Knowland of Knowland & Associates; Sharon Czerwinski of Paul Davis Northern Delaware; Tracey Shoemaker of Trinity Subsurface Engineering; Jeffrey Young of Elite Building Services; Jeff Finkle of Trinity Subsurface Engineering; Dann Gladnick of DSM Commercial; Thorpe Moeckel of Wohlsen Const- ruction; Shane Pierce, of EDiS Company; and Jim Manna of BrightFields, Inc. is our Chairman of the Membership Committee.
M id A tlantic R eal E state J ournal ’ s M ultifamily D evelopment S potlight
M id A tlantic Real Estate Journal — May 15 - 28, 2020 — 5A DBMC served as architect for DC project The UIP raises $9.8Mon CrowdStreet in +2 hrs.
ORFOLK, VA — Col- liers International has closed two major AxiomRealty Ptrs. sellsMaple Ridge &West CreekManor Colliers Int'l. reps. Aria Legacy Group in multifamily sales N
multifamily sales on behalf of Aria Legacy Group in Cen- tral and Southwest VA. Maple Ridge, located at 600 Reusens Rd. in Lynchburg, was sold to Axiom Realty Part- ners based in Westport, CT. The community includes 152 units in a scenic location near Lynchburg’s historic district and high-end residential area. Originally built in 1981, Maple Ridge offers a complete amenity package. “These sales are a testa- ment to our team’s dedication to providing quality service to our clients across the Virginia,” said G.S. (Hank) Hankins , se- nior vice president with Colliers International. “This corridor is getting a lot of interest from out-of-market investors.” Maple Ridge is located near Liberty University, the Univer- sity of Lynchburg, Randolph College and Virginia Episcopal School with total enrollment in excess of 18,000. With a small percentage of student tenants, opportunity exists to grow the student renter base. West CreekManor, located at 410 Westside Blvd. NW in Roa- noke, was sold to Woodrock Property Group . The com- munity was built in 1974 and renovated in 2010. It comprises 197 units that have benefited from exceptional maintenance and capital investment. It is located less than a mile to Salem VA Medical Center and three miles from Lewis-
Maple Ridge in Lynchburg
to lease the remaining market- rate units as they become available. DBMC served as architect for the adaptive reuse project. Background on project capi- talization: • $9.8 million CrowdStreet investors’ equity • $18.7 millionmortgage loan from insurance company • Proceeds from sale-lease - back of the land “This was our second of- fering on the CrowdStreet Marketplace and it apparently could not have come at a better time. We sold out our offering in less than 24 hours during a tumultuous period for the stock market in the midst of the coronavirus crisis," said Steve Schwat , principal with The UIP Companies, Inc. “Frequency is a class A prop- erty and our most contempo- rary apartment community to date. We see investors’ bullish- ness in the property as a flight to quality, a flight to real prop - erty, and a sign that serious investors are allocating more capital to real estate.”
WASHINGTON, DC — UIP Companies, Inc. acquired 4000 Brandywine St., NW in 2016, and converted the office building to multifamily in a creative adaptive reuse project. UIP has recapitalized the project with $9.8 million in crowd-sourced equity capital raised on CrowdStreet from 225 individual investors. Sepa- rately, the sponsor has obtained a new mortgage loan and a ground lease on the property. Barely 24 hours before the online fundraising window opened, the Dow Jones Indus- trial Average recorded its worst one-day point drop in history, the S&P 500 finished down nearly 12% and the Nasdaq Composite ended down 12.3%. 4000 Brandywine, known as Frequency apartments, is now a 50,000 s/f property (increased from 36,000 s/f) on the east side of Wisconsin Ave. The build- ing has 100 units. The Ten- leytown submarket is supply constrained. American University leases 88 of the 100 units under a master lease and has the right
Maple Ridge in Lynchburg
West Creek Manor in Roanoke
Gale Medical Center, employ- ing more than 4,500 people. West Creek Manor occupies a strategic location adjacent to the city’s main thoroughfares with easy access to downtown Roanoke, major retail hubs, key employment nodes and local amenities. Per CoStar , Roanoke is ex- periencing tremendous rent growth with average effective rent of $852 and year-over-year
rent growth of 6.2%. G.S. (Hank) Hankins, se- nior vice president; Victoria Pickett , first vice president; Charles Wentworth , senior vice president; Will Mathews , managing director; Rawles Wilcox , senior vice president; Clay Ellis , associate; and Gar- rison Gore , associate, with the Colliers Mid-Atlantic Team represented the seller, Aria Legacy Group.
INSIDE: Gebroe-Hammer Associates................................................. 6-7A Mark Duszak, Rittenhouse Realty Advisors............................8A Michael Wagoner, Quadrangle Development Corporation.....9A
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6A — May 15 - 28, 2020 — Multifamily Development — M id A tlantic Real Estate Journal
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Ken Uranowitz of Gebroe-Hammer Associates addresses Multifamily in COVID-19: CRE’s most resilient asset type remains a sound investment
garding the short - and l o n g - t e rm “COVID-19 Ef f e c t ” on multifamily pr ope r t i e s a n d c o m - mercial real estate as a W
hile some are look- ing to a crystal ball f or answers re -
This is because in today’s environment, apartment build- ings are functioning as a sanc-
long-term appeal across every tenant-demographic cohort. As with most times of uncer- tainty, tremendous patience and watchful waiting are the best antidote. Of this I am certain after 45 years in the multifamily investment bro- kerage profession and weath- ering economic protractions in virtually every decade. Based on personal experience and the history books, it is completely premature to begin trying to pinpoint the exact how and when of an economic recali- bration. Despite these ambiguities,
there is something of which we can be assured: multifam- ily will keep demonstrating its buoyancy, especially in those submarkets and metros that have historically trended with stability. The inner resiliency of apart- ment properties will win out across the board. Such was the case in the aftermath of the stock market crash of Oc- tober of 1987 known as Black Monday, the dot-com bubble of the late 1990s/early 2000s, the sudden attacks of 9/11 and the height of the Great Re- cession in early 2009. Apart- ment properties have always bounced back faster, stronger and in much better shape than office, retail, industrial and hospitality. Always. In addition to its long-term investment and performance appeal, multifamily will re- tain its front-runner position as the preferred housing option for the foreseeable future. The pandemic’s eco- nomic impact will only add to a renter-population base that was already eschewing single-family homeowner- ship. As a result, the tenant pipeline will be fed across all tiers, from class A to B/C assets as well as urban high rises and suburban garden complexes. Interestingly, new tenant needs are being born out of this pandemic. Owners and property managers are rising to the occasion with nimble solutions and investors are considering pandemic-related retrofits to future value-add capital-improvement check- lists. While we often rely on les- sons learned from the past to navigate the future, CO- VID-19 has thrust the world as we know it into a new dimension. With so many questions yet to be answered, one need not have a crystal ball to determine the fate of multifamily investment prop- erties. Regardless of public health issues, the state of the economy, the manner in which we engage with others and the places fromwhich we work or receive an education, apartments are unwavering in their tenacity. This is at- tributable to one basic prem- ise: they offer shelter. And a place to call home. Ken Uranowitz is presi- dent of Gebroe-Hammer Associates.
As a society and as an in- dustry, we find ourselves in unchartered territory. Under-
"Multifamily will keep demonstrating its buoyancy, especially in those submarkets and metros that have historically trended with stability."
tuary for normalcy. A safe haven, they also are command central for telecommuting (for those who have that option) and/or remote learning for students of all ages, from kin- dergarten through college. In turn, they are fortifying their
standably, such conditions are breeding unease. However, as in the past, adaptation is setting the stage for what multifamily properties do best – rebound faster than any other commercial real estate property category.
whole, the best – and really only – option for those who own, manage, invest in and reside in apartments is to remain agile.
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M id A tlantic Real Estate Journal — Multifamily Development — May 15 - 28, 2020 — 7A
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8A — May 15 - 28, 2020 — Multifamily Development — M id A tlantic Real Estate Journal
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he multi-family real es- tate market is moving forward in a dynamic By Mark Duszak, Rittenhouse Realty Advisors How will Covid -19 Change multi-family investment in the Tri-State? Looking Forward… T
including 42 units in Wilming- ton, DE, which traded north of $115,000 per unit, and 64 units in Easton, PA, which traded north of $110,000 per unit. We have a full pipeline ahead and expect this positive sales trend to continue. Rittenhouse Realty Advisors is extremely bullish on the future of multi-family in- vestments in the Tri-State once the area is open for business. Mark Duszak is director of Rittenhouse Realty Ad- visors based in Philadel- phia, PA. RRA sells prime Center City, Phila. development site PHILADELPHIA, PA — Rittenhouse Realty Advi- sors sold an 8,970 s/f devel-
up for business. Buyers will continue to ac- tively invest in multi-family because interest rates are the lowest in history, allowing extremely favorable financ- ing for acquisitions. In addi- tion, the recent volatile stock market will shift more equity into stable multi-family invest- ments which will keep capital- ization rates low. Even though COVID-19 has had a negative impact on construction lend- ing, the resulting reduced supply of new apartments will create more demand for existing apartments and will keep prices for those proper-
ties high. The universal truth will remain that renters will con- tinue to rent. We expect lon- ger tenant retention because renters will be less likely to move post-COVID-19 to avoid new contacts and to avoid unnecessary credit implica- tions. With the more volatile employment market, many renters will need to put off planned home purchases. Furthermore, we feel there will be less roommate sharing in a post-pandemic, health- conscience environment which will also increase the number of units rented.
Multi-family investment sales in New Jersey, Pennsyl- vania and Delaware were ex- tremely robust pre-COVID-19. Rittenhouse Realty Advisors notable Tri-State sales before the pandemic include 108 units in Carney’s Point, NJ which traded north of $90,000 per unit; 124 units in West Chester, PA which traded north of $300,000 per unit; and 62 units in Philadelphia, PA which traded north of $350,000 per unit. Since on the onset of CO- VID-19 in March, Rittenhouse Realty Advisors has closed sevenmulti-family investments
fashion that c o n t i n u e s t o e v o l v e weekly. So- cial distanc- ing, on-line apa r tmen t t ours , and less person- to-person in-
teraction will be the new norm in this highly people-oriented industry. However, we feel investor demand will return to be pre-COVID-19 strength once the Tri-State opens back-
opment site l o c a t e d a t 701 S. Broad St. in Center City, Phila- delphia. The property was approved for 6 0 a p a r t - ment uni ts and was eli- gibl e for a 10-year tax abatement . The parce l has frontage on three St.s: Br oad St . , Bainbr idge
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St., and Kenilworth St.. “We were able to close a 60 unit development site during the middle of COVID-19 in the heart of Center City, Phila- delphia. We are still seeing a lot of activity from developers looking for prime development opportunities,” said Ken Wel- lar , managing director at RRA. The site is located on Phila- delphia’s “Avenue of the Arts” where many cultural institu- tions including the Kimmel Center and the Academy of Music are located. There is a subway stop for the Broad St. Line just two minutes away. It is also within walk- ing distance to major area employers including Jeffer- son University Hospital and Pennsylvania Hospital. “This is a great sale for RRA given the current environment we are in. With the excellent location we were able to sell the long-term upside in the project to the buyer,” said Corey Lonberger , managing partner at RRA.
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M id A tlantic Real Estate Journal — Multifamily Development — May 15 - 28, 2020 — 9A
M ultifamily D evelopment
By Michael Wagoner, Quadrangle Development Corporation COVID-19 and the Washington, DC Apartment Market
declaration o f a pub - l i c hea l th emergency on Ma r ch 1 1 , 2 0 2 0 serves as a useful start- ing point for evaluating W
strong job growth in retail trade, leisure and hospitali- ty, and education and health services. Unfortunately, these sectors are among the hardest hit by the pandemic. Class A apartment buildings that traditionally rent to those employed in profes- sional and business services or financial activities should fare relatively better; howev- er, if weakness in the class B market becomes significant, this may result in attrac- tive rental options for more price-sensitive class A rent- ers and affect the broader market.
Given the severity of this economic disruption and the uncertain timeline for re- covery, landlords that have developed priorities to guide property-level execution of revenue and leasing strate- gies are positioned to weather the downturn. This guidance first looks to determining break-even occupancy and rent levels; it then turns to assessing whether the overall strategy for the asset, and in particular hold time, should be re-examined. Landlords with a longer-term horizon have tended to focus on in- creasing rent levels (or at
least holding them steady) while maintaining accept- able levels of occupancy, while those with the goal or necessity of near-term capi- tal events have often focused on how to stimulate occu- pancy even at the expense of stabilized revenue. Whatever the ultimate goal, any strategy can be most successful if tailored to specific property-level con- ditions and trade-offs. For example, if the challenge is low prospect traffic, lower rents may generate a higher closing ratio but potentially at the expense of revenue
goals. In all events, successful strategies allow on-site staff to negotiate renewals in real time and within parameters that implement asset-level strategy. Empowering the on- site team within this frame- work allows for a consistent approach that builds cred- ibility with existing residents, increases retention ratios and reduces downtime, and results in outcomes that align with ownership’s objectives. Michael Wagoner is as- sistant vice president of Quadrangle Development Corporation in Washington, DC.
ASHINGTON , DC — Ma y o r Muriel Bowser’s
the impact of COVID-19 on the Washington, DC apart- ment market. The stay-at- home order quickly impacted multi-family operations in a variety of ways. Property managers have responded to these challenges by adopt- ing 100% virtual leasing and taking additional measures to ensure resident safety such as closing amenity spaces, restricting visitor access, and increasing clean- ing disinfecting of touchable surfaces and common areas. Many of these initiatives increased operating costs at the very time that revenues were pressured, leading to uncertainty about how best to position to weather these events. Given its economic base, the Washington region typi- cally fares better than the country as a whole during downturns. However, the Washington region’s apart- ment market is not totally immune from the effects of increased unemployment and activity restrictions that have combined to dampen leasing activity. While mand is impacted, the region is also experiencing significant new deliveries in 2020. Further, statutory initiatives from the District government have imposed tenant-friendly policies that temporarily prohibit increasing rents at renewal, imposing late fees, and proceeding with evic- tions. As a result, landlords have had to be creative in developing revenue and leas- ing strategies to minimize adverse impacts on cash flow and asset value. In recent years, absorp- tion in the region has kept pace with increased sup- ply due to strong growth in employment, household formation, and population. A key component of market balance has been positive absorption in the class B market due to particularly
Apartment and Mixed‐Use Experts in the Washington, DC Region for 50 Years
�uadrang�e De�e�opment Corpora�on 1001 G Street, NW | Suite 900 | Washington, DC 20001 h�p������.�uadrang�ede��orp.�om 202.393.1999
10A — May 15 - 28, 2020 — Multifamily Development — M id A tlantic Real Estate Journal
M ultifamily D evelopment By Chuck Savage, JC Elite Construction Services, LLC Middlesex Community College celebrates modular construction anniversary
at the factory was the use of full four-inch brick exteriors installed onto a structural frame using wide flange 14”pe - rimeter “I” beams with a 4” reinforced concrete sub-floor. Each of the modular sec- tions weighed over a 100,000 pounds and required special transporters in order that the building sections could be to delivered the 250 miles to the project site without damaging them. Once on site they were installed with the use of a 600- ton crane to erect the sections onto the foundations. Another unique design fea- ture was green-house section
of the biology lab being con- structed with a 12’ long cantile- vered modular section that did not need of any supports to the ground. This was also a first for the modular industry. Some of the other innovations that were included was the use of special louvers that looked like dormers and chimneys as part of the pitched roof that were actually air intake and exhaust systems respectively. This allowed for all the HVAC equipment to be concealed in the roof cavity to avoid any potential vandalism as well as protecting the condensers from being covered by annual heavy snow fall if left on the ground. Most of the interior finishes such as parquet floors, in the student lounges, full height ceramic tile walls and floors in the bathrooms were all in- stalled at the factory. A com- plete kitchen designed to serve over 2,000 meals a day was shipped within the modular sections for the cafeteria por- tion of the project. All the heating and cooling ductwork, most of the sprinkler system, and majority of all the electrical systems were all installed at the factory within each building section. All inte- rior and exterior doors as well as all windows were installed at the factory. For the music class- rooms they were all specially designed soundproof rooms. All the chemistry classrooms had the necessary gas lines run at the factory for the work stations and each chemistry and biology lab had special eye washing stations as well as complete decontamination showers in- stalled at the factory. The use of this type of modu- lar construction enabled Mid- dlesex Community College to open their new campus a year sooner than if conventional construction was utilized thus allowing them to save an entire year of rent at the two locations that they were currently occu- pying at the time. In addition, the State of Massachusetts was able to save 20% for all the work constructed at the factory since that scope of work was not subject to the prevailing rate as it was built offsite. I am proud to have been part of this groundbreaking modular project. Chuck Savage is direc- tor of Modular Buildings, Design and Construction at JC Elite Construction Services, LLC.
his year marks the 30th anniversary for the modular construc-
tion indus- tries ’ most monumental project of its’ time. Middlesex Community Co l l ege in Bedford, MA was the first
and since only college campus to be built entirely with steel frame factory constructed modular building sections. The project consisted of 260 six sided volumetric modules
Middlesex Community College in Bedford, MA
forming 156,000 s/f of two and three-story structures which comprised the campus. Some
of the innovations that were incorporated during construc- tion of the modular sections
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M id A tlantic Real Estate Journal — Multifamily Development — May 15 - 28, 2020 — 11A
M ultifamily D evelopment By Bruce E. Gudin, Esq., Ehrlic, Petrillo, Gudin & Plaza, P.C. Reasonable accommodations for animals comments on revised H.U.D. guideline
ask in substance: (1) “Is the animal required because of a disability?” and (2) “What work or task has the animal been trained to perform?” Do not ask about the na- ture or extent of the person’s disability, and do not ask for documentation. ➢ If the answer to ques- tion (1) is “yes” and work or a task is identified in response to question (2), grant the requested accommodation, if otherwise reasonable, be- cause the animal qualifies as continued on page 16A
he Assistant Secre- tary for Fair Housing and Equal Opportu-
and facilities covered by the federal FAIR HOUSING ACT (FHA), including apartments, condominiums, cooperatives, single family homes, nursing homes, assisted living facili- ties, group homes, and other types of housing covered by the FHA, regardless of whether the housing is private, public, or receives federal financial assistance. It is for the benefit of In- dividuals with disabilities that affect major life activity who may request a reason- able accommodation, and by other members of the public,
including healthcare providers who may be asked to provide supporting information for persons who are requesting a reasonable accommodation for a disability. WHAT THE HOUSING PROVIDER MAY ASK: A: SERVICE ANIMALS – Housing providers may use the following questions to help them determine if an animal is a service animal 1. Is the animal a dog? ➢ If “yes,” proceed to the next question. ➢ If “no,” the animal is not a service animal but may be
another type of assistance animal for which a reasonable accommodation is needed. 2. Is it readily apparent that the dog is trained to do work or perform tasks for the benefit of an individual with a disability? ➢ If “yes,” further inquiries are unnecessary and inappro- priate because the animal is a service animal. ➢ If “no,” proceed to the next question. 3. It is advisable for the housing provider to limit its inquiries to the following two questions: ➢ The housing provider may
nity of the Department of Housing and Urban R e n e w a l , b y No t i c e dated Janu- ary 29, 2020, revised the gu i d e l i n e s
Bruce E. Gudin
that had been issued in 2013. These are comments on the five sections (and the appendix) of the revised guidelines. The five sections are: Part I: Service Animals Part II: Analysis of reason - able accommodation requests under the Fair Housing Act for assistance animals other than service animals Part III: Criteria for assessing whether to grant the requested accommodation Part IV: Type of Animal Part V: General Consider - ations Over one half of Fair Housing Act complaints concern reason- able accommodation and dis- ability issues, and requests for reasonable accommodation for assistance animals are almost half of those. The issue has become prevalent by the in- creased practice of the sale and use of so-called “certificates” for assistance animals and in some instances, they have been used by persons who do not meet the requirements for a reasonable accommodation. The result has been confusion among housing providers. The Department therefore released this guidance to assist housing providers, individuals with disabilities, and the public to understand when the FHA requires a housing provider to grant a reasonable accom- modation to an individual who has a disability-related need for an assistance animal, including when the need for such an animal is not obvious and the animal does not have individualized training. The Notice does not affect any already-granted reason- able accommodations; it is intended to provide clarity for analyzing future requests for reasonable accommodations. WHO IS AFFECTED: The Assistance Animals Notice applies to housing, in- cluding public and common use areas of housing developments WHY THE NEW GUIDELINES:
12A — May 15 - 28, 2020 — Multifamily Development — M id A tlantic Real Estate Journal
M ultifamily D evelopment
AGERSTOWN, MD — Joe Burke , ex- ecutive vice president/ Burke &Bowman leverage their in-house Fannie Mae team to deliver a successful execution NorthMarq arranges $8.47 million refinancing of Hunter Hill Apartments in Hagerstown, MD H
tion schedule. NorthMarq arranged financing or the borrower through its in-house Fannie Mae team. “Ou r i n -
senior man- aging direc- t o r , a n d Brett Bow- man , vice p r e s i den t of North- Marq ’s Bal- timore office finalized the
house Fan - n i e M a e team worked d i l i g e n t l y to ensure a s u c c e s s f u l e x e c u t i o n
despite the uncertainty of the current market. Together, we were able to achieve the bor - rower's goal of securing long term financing with an attrac - tive interest rate," said Burke.
$8.47 million refinancing of Hunter Hill Apartments. The 105-unit property is located in Hagerstown. The transaction was structured with a 15-year term on a 30-year amortiza -
Hunter Hill Apartments
Bertini joins The Watermark at Brooklyn Heights luxury senior community as exec. director BROOKLYN , NY — Rocco Bertini, CDAL , has joined The Watermark at As a capital markets leader, NorthMarq offers commercial real estate investors access to experts in debt, equity, invest - ment sales, and loan servic- ing to protect and add value to their assets. For capital sources, we offer partnership and financial acumen that support long- and short-term investment goals. Our culture of integrity and innovation is evident in our 60-year history, annual transaction volume of $13 billion, loan servicing port- folio of more than $61 billion and the multi-year tenure of our more than 600 people.
Markets we serve: Commercial Industrial Residential
Electrical Contractors State, Municipal & Government Hospital & Institutions Property Management & Hospitality Products we offer: Wire, Pipe, Fittings & Wiring Devices Switchgear, Panelboards, Motor Controls & Motors Lighting & replacement Lamps LED Retrofits, Fixtures and other Energy Efficient Products Sub-Metering Equipment Meters, Tools & Ladders Safety Devices & Equipment Fire Alarms, Smoke Detectors & Burglar Alarms Generators Services we offer: On time Deliveries to meet customer requirements 24/7 Emergency Response Inventory Management Project quotes Lighting & Energy Audits Customer Training
Brooklyn H e i g h t s , a 275-unit luxury se- nior living r e s i d e n c e at 21 Clark St., opening i n Sp r i ng 2020, as ex-
455 Third Street Jersey City, NJ 07302 Ph: 201-653-1613 Fx: 201-653-5470 Bob Kilroy bkilroy@Jewelelectric.com
© Ola Wilk/Wilk Marketing
ecutive director. The Brook - lyn Heights location is one of four in Watermark’s Élan Collection lifestyle brand of premier properties offering personal service with grand scale amenities. The $330 millionWatermark at Brook- lyn Heights is currently un - dergoing a renovation and conversion from a beloved historic Brooklyn hotel into the borough’s first luxury senior community. Rocco Bertini
Markets we serve:
M id A tlantic Real Estate Journal — Multifamily Development — May 15 - 28, 2020 — 13A
M ultifamily D evelopment
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14A — May 15 - 28, 2020 — Multifamily Development — M id A tlantic Real Estate Journal
M ultifamily D evelopment Freddie Mac Optigo SBL loan product fills unique capital needs of NY apartment building CPC Mortgage Company closes $3.9 million in Freddie Mac financing
house mid-rise property is located at 113 Richardson St. “During these extraordi - nary times multifamily own- ers are still facing the same, if not more challenging issues of finding stable capital and a steady hand to help them navigate the financial needs of their properties,” said John Cannon , president of CPC Mortgage Company. “From finding the best prod - uct to providing first-class technical assistance through - out the process, we’re focused on creating a partnership and ensuring that our borrowers
know we’re here for all of their needs.” “ Fr om Wi l l i ams bu r g , Brooklyn to Mott Haven in the Bronx, small multifam - ily rental buildings are the backbone of our communi- ties,” said Richard Carr , vice president & mortgage originator at CPC Mortgage Company. “The Freddie Mac Small Balance Loan product allows us meet the unique needs of a critical segment of the New York City’s housing stock, and gives our borrow- ers the flexible terms and expedited process they’re
looking for.” Originally built in 2012, the property features one one-bedroom, seven two- bedroom, and one three-bed - room units. All units include an in-suite washer/dryer, dishwasher, stainless steel appliances, marble counter- tops, wood laminate cabi- nets, wood floors throughout, and ceramic-tiled bathroom floors. Through a common area stairwell, all tenants have rooftop access. The Williamsburg neigh - borhood is a cultural center of New York City. This prop -
erty is in close proximity to the subway system, with easy commutes to Midtown Manhattan and Downtown Brooklyn. Additionally, Met - ropolitan Avenue andMcCar - ren Park are located nearby, providing tenants with ample access to restaurants, retail, services, public institutions, recreational activities, and more. CPC Mortgage Company offers a suite of Agency lend- ing products to their partners and customers, including acquisition, refinance, re - habilitation, and construc - tion through Freddie Mac, Fannie Mae, and Federal Housing Administration (FHA) products. The com - pany’s expertise across the industry allows them to pro - vide unparalleled technical assistance and deal execution to their borrowers. With CPC Mortgage Company’s strong ties to their parent company, they help to support the non - profit work of CPC, and their work across a wide range of communities, while support - ing a broad range of capital needs. As a Freddie Mac Optigo lender, CPC Mortgage Com - pany offers a range of com- petitively priced, reliable mortgage products for the acquisition and refinance of multifamily properties. This includes Freddie Mac’s conventional financing with loans ranging from $5 mil- lion to $100 million with 5- to 10-year terms, and the SBL product which helps to close the gap in the mar - ket for flexible financing for small buildings by offering loans from $1 million to $7.5 million with flexible terms, prepayment options, competitive low rates, and a streamlined pricing, under- writing, closing, and funding process. FreddieMac’s Tar- geted Affordable Housing (TAH) loans are available to preserve affordable rental housing in underserved com - munities. Eligible properties are affordable to tenants with low and very-low incomes and may include Section 8 financing, Section 236 financ - ing, tax abatements, or other affordability components. CPC Mortgage Company is able to provide cash loans, bond credit enhancements, tax-exempt loans, and other options.
ROOKLYN, NY — CPCMortgageCom- pany LLC , a subsid-
iary of The Communi- ty Preser- vation Cor- p o r a t i o n (CPC) , an- nounced the closing of a $3.9 million F r e d d i e
Mac Optigo Small Balance Loan (SBL) to refinance a nine-unit apartment building in Williamsburg, Brooklyn. The four-story plus pent -Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48
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