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ISSUE HIGHLIGHTS Volume 28 Issue 22 Nov. 25 - Dec. 8, 2016
Cushman & Wakefield team represents the ownership VisionReal Estate/RubensteinPartners sell One MetLife Way for $95 million
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and LEEDPlatinum Interiors. The MetLife property neigh- bors Bayer Healthcare’s East Coast headquarters. The Vi- sion Real Estate Partners/Ru- benstein team sold 94 acres of the 67 Whippany site to Bayer in 2012, and subsequently redeveloped and expanded an existing building to create the pharma giant’s new 675,000 s/f, LEED-certified facility there. Earlier this year, Bayer purchased an additional 86 acres of adjacent land. A Cushman & Wakefield team led by Robert Don- nelly , Rob Donnelly, Jr. and Marc Rosenberg has represented the ownership throughout the entire pro- cess. The firm’s Metropolitan Area Capital Markets Group – headed by Andrew Merin , David Bernhaut , Gary Ga- briel and Brian Whitmer – also were involved in leading the Salus Government Proper- ties and Bayer sales. n
ANOVER, NJ — Vi- sion Real Estate Partners and Ru-
SPO TLIGHT
benstein Partners have sold the newly completed MetLife Investments Global Headquarters property in Ha- nover to Salus Government Properties . The $95 million transaction marks the culmi- nation of a pioneering, five- and-a-half-year initiative that has successfully repurposed and redeveloped the 194-acre former Alcatel-Lucent campus at 67 Whippany Rd. Bell Laboratories operated at 67 Whippany Rd. from the 1920s through 2009, and through mergers and acqui- sitions had become Alcatel- Lucent when the company relocated 2,100 employees to Murray Hill and put the prop- erty up for sale. In 2010, a joint venture of Vision Real Estate Partners’ predecessor firm, Vision Equities , and Ruben- stein Partners purchased the
ConstructionMgmt. & Design Build 6-13A PROFESSIONAL SERVICES
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ICSC NY National DealMaking Issue
MetLife building
the 14-acre, 185,000 s/f, One MetLife Way. The building opened in September, less than 18 months after MetLife signed its build-to-suit lease. The facility was designed to sustainability standards for LEED Gold Core and Shell
campus – including 15 vacant buildings totaling 1.4 million s/f – with the plan to redevelop it as a modern campus reflect- ing its highest and best use. Vision Real Estate Partners and Rubenstein Partners designed and constructed
Section C
SSH Real Estate completes sale of Chester County portfolio in four deals totaling $27.3m
UPCOMING CONFERENCES December 8th, 2016 Pittsburgh Commercial Real Estate Forecast Summit December 9th, 2016 NJ Commercial HealthCare & Medical Properties Summit December 14th,2016 Philadelphia Downtown Development Summit
WEST CHESTER, PA — The Investment Sales Divi- sion at SSH Real Estate has completed four separate sales of flex buildings on be- half of commercial real estate developer Chris Knauer of Knauer Properties . Three of the four properties are lo- cated in West Chester at 901 S. Bolmar St., 1075 Andrew
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Dr., and 1085 Andrew Dr. The fourth property is in the Lion- ville neighborhood of Exton at 180 Gordon Dr. The combined size of the four properties is 261,550 s/f, and it was 94% occupied by 28 tenants when the marketing process began. Chester County Portfolio 901 S Bolmar St. – 85,920 s/f 1075 Andrew Dr. – 65,200 s/f 1085 Andrew Dr.– 43,675 s/f
180 Gordon Dr. - 66,755 s/f Dan Mayock , the manag- ing director of investment services at SSH who oversaw the sale, initially advocated for marketing the four proper- ties as a portfolio. “While the owner was deal- ing with the sudden vacancy of a large tenant, the SSH team started looking at alternatives and determined that it would
make sense to split the portfo- lio into pieces. This resulted in four deals, three buyers, three lenders, and a 1031 sale (180 Gordon Dr.). We were fortu- nate to have a flexible seller with flexible time frames, so they were willing to consider all alternatives,” said Mayock. Dan Mayock was assisted by Tyler Berlinsky , who re- cently joined the firm. n
Upcoming Spotlight December 9 th TAX ISSUES & ACCOUNTING
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Commercial Real Estate’s Global Standard for Professional Achievement
The CCIM Institute is...
2016 PA/NJ/DE CCIM CHAPTER OFFICERS Jeffrey Hoffman, CCIM President JPH Realty Advisors
The Pennsylvania, New Jersey, Delaware CCIM Chapter is... Committed to excellence and offering opportunities that you can't afford to miss! Commercial real estate’s most inuential professional organization, with members closing $200 billion annually in commercial real estate deals. For more than 40 years, the Institute has been building opportunities through its respected education program, led by established practitioners. CCIM Institute members are eligible to earn the CCIM designation, the industry’s most prestigious certication. The CCIM designation is conferred upon commercial real estate leaders who have a proven record of success in the eld and have demonstrated a mastery of nancial, market, and investment analysis. CCIM designees come from a variety of professional backgrounds including brokerage, banking, property management, law and accounting.
Philip R. Earley, CCIM * Vice President Lieberman, Earley & Company
Charles Swope, Jr., CCIM Secretary Swope Lees Commercial Real Estate
Eric Gorman, CCIM * Past President Cushman & Wakeeld
2016 PA/NJ/DE CCIM CHAPTER DIRECTORS Christopher Baj, CCIM Chair, Lehigh Valley Sperry Van Ness | Imperial Realty John Birkeland, CCIM Rock Commercial Real Estate Gregg Broujos Chair, Pittsburgh Colliers International David Church, CCIM Chair, Membership U.S. Capital Realty, LLC Michele Countis, CCIM Chair, Designations Jackson Cross Partners Jonathan Epstein, CCIM * Berger-Epstein Associates, Inc. Craig Fernsler, CCIM * , GRI, SRES KW Commercial / KPG Cindy Feinberg, CCIM Feinberg Real Estate Advisors Neil Kilian, CCIM Chair, Delaware NAI Emory Hill Laura Martin, CCIM Chair, Central PA Latus Commercial Realty Tom Skeans, CCIM * Sperry Van Ness | Imperial Realty Kathy Sweeny-Pogwist Brandywine Realty Trust * Past PA/NJ/DE CCIM Chapter President
The Commercial Real Estate Industry is constantly evolving... are you?
For additional information and to register for events and classes, please visit CCIM PA NJ DE .com Brian Davison, CCIM High Associates, Lancaster, PA Robert Eshelman, CCIM Lieberman Early and Company, Wayne, PA Riley Halloran, CCIM U.S. Realty Capital LLC, Conshohocken, PA Jeff Kurtz, CCIM High Associates, Lancaster, PA Travis Mitchell, CCIM Bayer Corporation, Pittsburgh, PA Martin Perry, CCIM Newmark Grubb Knight Frank, Pittsburgh, PA Recognizing our 2016 Designees!
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Greg Ellis, CCIM of Patterson-Woods represented Marlette Funding in doubling its office space in Wilmington, Delaware Craig Fernelser, CCIM of KW Commercial was appointed to the National Association of Realtors® Public Policy Coordinating Committee. Neil Killian, CCIM of NAI Emory Hill sold a 49,000sf industrial building in Newark, Delaware for $2.55 Million
2017 EVENTS
January 18 Philadelphia, PA 2017 Economic Outlook with Dr. Peter Linneman. Partner event with CREW.
Kristin Tornetta Chapter Executive Director (610) 560-1266 kristin@panjdeccim.com CONTACT US
February 10 Lancaster, PA 1031 Exchanges: All you need to know
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Philadelphia, PA
CI-101: Financial Analysis for Commercial Investment Real Estate.
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American Architectural Window & Door.................1B AW Meyer. ...............................................................17A Azarian Realty Co.. .............................................. BC-C Bennett Williams.......................................................6C Blau & Berg Co..........................................................7A Brubacher. ...............................................................20B Capitol Aerials...........................................................2B Capstan Tax Strategies.............................................8A CCIM..........................................................................1A Colliers International..............................................17A Crystal Window & Door............................................7B Design Point.............................................................12B Earth Engineering...................................................13B Elias B. Cohen...........................................................4B Environmental Systems..........................................17A EPGP..........................................................................8B Foliage Design Systems. .........................................18B Fowler. ....................................................................... 27 Gerard Construction Corp.. ......................................9C Green Partners........................................................22B GREYHAWK............................................................10A Hillcrest Paving & Excavating...............................17A Hillmann Consulting...............................................10C Holt Construction....................................................10B IBS..............................................................................5B Investors Real Estate Agency.................................17A IREM........................................................................29B Kaplin Stewart. .........................................................6A Kay Commercial Realty. .................................. 17A, 3C Keystruct..................................................................15B LF Driscoll. ..............................................................14B M. Miller & Son.........................................................3B March Associates Construction, Inc.........................7C Marcus & Millichap......................................17A, BC-A Meridian Capital Grou..............................................9A NAI Summit.............................................................17A Nassimi Realty. ..................................................... IC-C Nave Newell...............................................................5C NorthMarq.................................................................3A P. Cooper Roofing. ................................................ BC-B PCS...........................................................................23B Poskanzer Skott Architects.....................................11B Proverb.....................................................................13A Quality 1st Contracting. .........................................11A RD Management................................................ 14-15C Ripco Real Estate. ...................................................11C SBS...........................................................................25B Silbert Realty.............................................................2C Spoken and Written Words.....................................17A Stark & Stark............................................................8C Stout & Caldwell. .................................................. IC-B Structure Tone.........................................................16B Subway.......................................................................4C Tantum.....................................................................17A The Goldstein Group.................................................1C Total Cleaning...........................................................2B Waters Retail Group. ..........................................IBC-C MA REJ A dvertisers D irectory
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M id A tlantic R eal E state J ournal Publisher .................................................................Linda Christman Publisher ....................................................................Joe Christman Senior Editor/Graphic Artist ..................................... Karen Vachon Production Assistant/Graphic Artist ............................... Julie King Associate Publisher ....................................................... Kim Brunet Associate Publisher .............................................. Barbara Holyoke Associate Publisher .....................................................Steve Kelley Office Manager .........................................................Joanne Gavaza Mid Atlantic R eal E state J ournal ~ Published Semi-Monthly Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 312 Market St. Rockand, MA 02370 USPS #22-358 | Vol. 28 Issue 22 Subscription rates: $99 - one year, $198 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Toll-Free: (800) 584-1062 | MA: (781) 871-5298 | Fax: (781) 871-5299 www.marejournal.com
Jim Wilson
Real estate increasingly seen as a “catalyst for change” when it comes to operating and workplace efficiencies ortfolio optimization, smart technology, and workplace strategy are becoming staples on the agen- da in board rooms across the globe as C-suite executives increasingly look to real es- tate as a catalyst for change, according to a new paper from CBRE Group, Inc. In the third paper in a thought lead- ership series on workplace performance, CBRE examines how real estate optimization is influencing all aspects of business strategy in today’s global economy. “There is a strong correla- tion between a client’s work environment and the C-suite’s view of workplace relative to its contribution to achiev- ing primary business goals and objectives,” said Jim Wilson , Americas chief ex- ecutive officer for CBRE’s Global Workplace Solutions business. “Creating highly productive and transforma- tional environments across a portfolio involves a significant amount of capital as well as change management, which, by definition, requires a fully engaged and supportive C- suite.” In CBRE’s latest Global Occupier Survey, 46% of re- spondents indicated the need to improve executive-level sponsorship as a prerequisite to delivering priority goals. In order to be more effective, respondents are asking for commitments from senior leadership to make informed and bold decisions within their portfolio to support new employee-centric enterprise goals and enable productivity. “The workplace can be used to gain both operating and workforce efficiencies, and will continue to be an integral part of boardroom discussions as uncertainty in the global economy continues,” said Ju- lie Whelan , head, Americas occupier research, CBRE. The paper looks at how real estate is influencing business strategy in several core areas on the C-suite agenda: 1.Optimizing the Portfolio Managing assets and ser- vices holistically at a portfolio level is a necessary approach P
The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
to bothmaintaining cost disci- pline and achieving the high- est levels of performance. To translate business strategy into a proactive, as opposed to reactive, real estate strategy, occupiers should always be aware of specifics about the individual buildings in their portfolio—especially where their real estate is located and when they have lease expirations or breaks—to appropriately manage and ac- tion against the rent cycle. At the same time, it’s important to be able to quantify space utilization within individual buildings, and even business units within those buildings, to help inform decisions based on where the organization may be looking to grow or contract across its portfolio. Of course, achieving an op- timized real estate portfolio is only part of the discussion. The key is to maintain and build upon that success. “The role of the physical as- set is changing and growing. Today it encompasses not only property, but such broader questions as internal work flow and alternative work- place strategies. At the same time, the C-suite will use the physical real estate to help drive cultural transformation. So this issue has impact be- yond the individual property and portfolio and includes the individual employees that occupy the space,” said Bill Concannon, chief executive officer, Global Workplace So- lutions, CBRE 2.Using the Supply Chain More than ever, educated occupiers are building lean, strategically focused internal teams and partnering with third-party providers to bet- ter manage facilities and ex- penditures and optimize the value chain across their entire operating portfolios. One significant cost savings
factor for outsourced facilities management models is the supply chain. Providers bring greater scale and purchasing power to the client, manage the vendor set professionally, and introduce options to self- perform work at enhanced cost and quality. Seventy-two percent of recently surveyed Fortune 500 corporate real estate executives reported the outsourcing their facili- ties management function, indicating the trend towards this business model. “We are moving beyond tra- ditional sourcing strategies to new levels of engagement with suppliers that unlock innova- tion, quality improvements and next-generation savings strategies,” said Matt Wer- ner , president of enterprise facilities management, Global Workplace Solutions, CBRE. 3.The Evolving Role of Technology Buildings are becoming smarter. Automation systems are increasingly being used to control security, lighting, HVAC and a roster of applica- tions that address a building’s sustainability—and are mak- ing an impact on costs and oc- cupant health and well-being. The challenge, in large part, is the breakneck pace of change in both hardware and software, says Matthew Toner, managing director of the CBRE Institute. Sys- tem sensors, such as those that control the light levels, “seem to be outdated every six months. They will last, but there’s always a better one coming on the market for twice the power and half the price. How do you roll out thousands if not millions of these devices across a port- folio in a cost-effective way? The challenge is to figure out how best to accomplish those results and that cost effectiveness.” n
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M id A tlantic R eal E state J ournal $12.4m acquisition loan and a $6.6m refinance Deerwood Capital closes $19 million in loans in Freehold F
Maple Lawn VI OFFICE BUILDING FULTON, MD | 131,000 SF | LIFE COMPANY Better relationships. Better results.
REEHOLD, NJ — DeerwoodReal Estate Capital , a commercial real estate advisory firm based in Englewood Cliffs, NJ, closed a $12.4 million acquisition loan with a national non-recourse bridge lender and a $6.6 mil- lion refinance with a local bank. The deals, negotiated by Deerwood’s Yaakov Leiser , include a 200,000+ s/f multi- tenant office park and a 60,000 s/f multi-tenant office building, both located in Freehold, NJ. The proceeds of the refinance were used for the acquisition. The borrower is a new client for Deerwood and was very sat- isfied with the deals facilitated by Deerwood. n EAST ORANGE, NJ — Lee & Associates of New Jersey recently announced the sale and leaseback of 310 Central Ave. in East Orange. Peter Rasmusson, CCIM of the firm’s Elmwood Park office represented the buyer, Global Medical REIT. The seller of the property, Prospect Medical Holdings, master leased the 68,000 s/f building for an undisclosed term. The sale price was ap- proximately $12 million. “There was a great deal of
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Lee & Associates of NJ announces $12m sale and leaseback
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The Mid Atlantic Real Estate Journal is a monthly publication highlighting real estate transactions throughout the Mid Atlantic including : • New developments, ground breakings and reconstruction in the ODM (Owners, Managers & Contractors ) section • Mortgage and banking in our Financial Digest • Retail and new developments in Shopping Centers • Annual spotlights. Medical REIT totaling nearly $31 million —including medi- cal buildings in South Dakota, Ohio and New J rsey— i s larg- est spending spree since going public in July, when it raised a total of $150 million in its IPO. The modern three-story ad- joins the mai campus of East Orange General Hospital. The building houses more than a dozen different medical prac- tices, and the hospital also utilizes por ions of the buildi g for its lab, wound center and dialysis center. n
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310 Central Ave.
interest by our investors in this asset,” said Rasmusson. “The sale underscores the robust- ness of the sale and leaseback market, especially in the medi- cal sector.” The purchase is part of a string of acquisitio s for Global
Linda Christman, CEO/Publisher Mid Atlantic Real Estate Journal 312 Market Street • Rockland, MA 02370 P: 781-871-5298 | F: 781-871-5299
• Region specific news and spotlights in our Pennsylvania and New Jersey sections IOREBA’s Fall event brings crowdfunding experts to the table WEST ORANGE, NJ — The Industrial and Office Real Estate Brokers As- sociation of the New York Metropolitan Area (IOREBA) recently hosted its Fall Kick- Off Event to a group of in- dustry experts eager to learn about the night’s topic: Crowd- funding for Commercial Real Estate. try are much different from a typical Kickstarter platform, which deals in products rather than in equity, and are essen- tial online marketplaces for owners and investors. “These platforms allow you talk directly to investors, and I like that,” said Cassidy. “Investors; however, are not typically real estate investors, making them sometimes slow to make decisions. But, in the long run, if you don’t use these platforms in our industry, I think you will be left behind,” he added.
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“Essentially, we are do- ing marketing for real estate companies—bringing sponsors and investors together and helping them get access to equity,” commented Esquivel. “Historically, real estate pro- fessionals have a county club mentality, but with these new platforms we are assisting them in expanding their net- works,” he added. “It is a very transparent technology,” added Florent. “All of your real estate docu- ments are online, and owners and investors can see what is going on at all times.” Steven Cassidy shared that his company is entering into its third crowdfunding invest- ment, and just last year raised about $800,000 in equity on a crowdfunding platform, which helped acquire and reposition an office building in Florida.
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Crowdfunding is slowly emerging as a new technology platform for real estate invest- ment firms. Panelists agreed that it hasn’t yet caught the at- tention of large businesses and that the concept needs more exposure and belief amongst potential users. “It is on companies like us that are using crowdfunding, to perform and show our in- dustry that it works, and when the big guys see the results they will see that it is great to have another line of equity for deals,” said Bogart. “So far, we’ve had moderate success in this sector. In the long-term, I feel like it is going to be a great vehicle for us,” he added. n
Moderated by Greg Brown , managing di rector , NAI DiLeo-Bram & Co. , the pan- el featured commercial real estate crowdfunding experts William Florent , founder of Selequity and Brian Es- quivel , director of invest- ments at Realty Shares ; along with commercial real estate veterans who have had recent success in using these platforms, Stephen Cassidy , president of Denholtz Asso- ciates ; and Jason Bogart , owner of Accordia Realty Ventures . There is amystery surround- ing crowdfunding and how it works. The platforms for the commercial real estate indus-
• Brokered Transactions • New Services/Products • Projects Completed or Underway • Expert Articles • Appointments, Promotions, & Honors • Events • Mergers & Acquisitions • Financing Deals
The Mid Atlantic Real Estate Journal welcomes all editorial dealing with the commercial/industrial real estate industry. P.O. Box 26 • Accord, MA 02018 (mailing) 312 Market St. • Rockland, MA 02370 (overnight) e-mail editor@marejournal.com www.marejournal.com 781-871-5298 781-871-5299 fax Mid Atlantic Real Estate Journal
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Barry Mertz, SIOR formed the firm in 1981 NAI Mertz celebrates 35th year in business proficiently.
T. LAUREL, NJ — NAI Mertz , a full- service commercial real estate firm serving south- ern New Jersey and greater Philadelphia, is celebrating its 35th anniversary since Barry Mertz, SIOR , chief executive officer, formed the firm in 1981, with his wife Faye , in Pennsauken, NJ. Barry started the company as a commercial real estate bro- kerage and property manage- ment firm with one employee, and a goal to add additional sales staff to broaden market coverage in the region and to service clients’ needs more M
Bucks County and Wilkes- Barre, PA, which helped in- crease its market coverage and enabled the company to better meet its clients’ needs. Over the years, NAI Mertz broadened its reach to provide expert services in brokerage, leasing, sales, investments, property management, site selection and construction management in the industrial, office and retail sectors. Jeff Licht , senior vice presi- dent, joined the firm in 1994 to head the office in Bucks County. Two years later, he was joined by AdamLashner , vice president, and the duo have amassed a formidable track record of industrial and commercial sales and leases in Philadelphia and its suburbs. Joining the NAI Global net- work—one of the largest man- aged networks of commercial real estate service providers— was a significant milestone for the firm. Operating as NAI Mertz, the company is able to service their clients’ nationally and globally, offering more resources and greater market knowledge to its client base. “NAI Global is a powerful organization and one that we are thrilled to be a part of,” said Barry Mertz. “We were one of the original members of NAI, and I proudly served four terms on its leadership board. NAI also has bestowed our firm with the NAI Global Eagle Award for Outstanding Service and Leadership on two occasions,” he added. At the forefront of NAI Mertz’s success in the region is its staff. NAI Mertz has built a team of seasoned profession- als, many of whom have been with the firm for over 20 years, who are dedicated and knowl- edgeable experts in their craft. NAI Mertz impressively has eight brokers on its staff who earned the prestigious Soci- ety of Industrial and Office Realtors (SIOR) designation. Rebecca Ting , vice president and 21-year veteran with the firm, currently serves as the SIOR New Jersey Chapter’s president; and Roy Kardon , vice president-industrial divi- sion and 21-year veteran with the firm, serves as the current treasurer of the SIOR New Jersey Chapter. NAI Mertz entered its sec- ond generation in 1999 when Barry and Faye’s son, Scott Mertz , joined the firm. In 2014, Scott was recognized continued on page 12A
With Faye serving as CFO and managing the back office of the firm, and Barry at the helm, NAI Mertz experienced significant growth in its early years and soon secured over 1.5 million s/f of property that it managed throughout south- ern New Jersey. NAI Mertz has since moved its headquarters to Mount Laurel, surrounded by some of southern New Jersey’s pre- mier office and industrial parks. As part of the firm’s sus- tained growth, new offices were added in Philadelphia,
Shown from left: Barry Mertz, SIOR, CEO and Scott Mertz, SIOR, President of NAI Mertz
Tax Issues/ Accounting Spotlight in the December 9 - Financial Digest Deadline November 30th We invite you to submit an article and inform our readers on tax issues that may affect the commercial real estate industry. Such topics might include:
How to protect your assets Discover effective cost recovery solutions What are the latest tax issues?
Editorial Requirements include: 550 word article wrapping around a half page ad with all author’s headshots on the cover of the spotlight.
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By Neil A. Stein, Esq., Kaplin Stewart Real estate lawyers face an uncertain future
e d , I c o n - jure up the lyrics from The Who ’ s song, "Won't Get Fooled Again." Yes, indeed, the Presidential election has W
hen I think about where the real estate legal market is head-
real estate is back for now. Developers are developing again and buyers and sellers are doing deals. Even lenders (at least some) have stepped back into the real estate game. With a real estate developer occupying the White House, there may be a regulatory re- versal in the offing. Just as we had become accustomed to the regulatory challenges of real estate development, we may see a rollback in the extent of environmental regulation originally designed to control development. Couple this re- versal with potential favorable tax changes and the loosening
of lending restrictions, and one could easily envision another real estate boom. Lawyers, as they always are, will be at the forefront of these changes. What is should mean is a much more user- friendly government, together with a more common sense approach to regulation. While it is certainly a laudable goal to protect wetlands that re- ally have a connection to navi- gable waterways, there never was sufficient justification for protecting isolated wetlands. While real estate lenders had to be reined in due to the questionable practices of some
in the 2006 to 2009 era, the enactment of significant regu- latory restraints on lending has created a complex process that keeps many credit-worthy potential homeowners out of the marketplace. Social media will continue to play a major role in our so- ciety generally and in our legal community as well. As the real estate industry continues to rely upon social media for a great many of its marketing and other needs, legal issues will continue to arise. What can and cannot be said through social media; what constitutes fraud or discrimination; and
how can the public have con- fidence that confidential in- formation is not being hacked. Even the lending industry is affected as the race for private equity dollars moves away from the traditional offering memorandum and into the realm of crowdfunding. While crowdfunding is a relatively new means of raising capital for real estate projects, the platform is continuing to grow at an exponential rate domes- tically and overseas. While certain modest fixes have already been made to crowd- funding legislation, expect more changes to evolve that will expand the marketplace. Again, the possibility of fraud will be a concern for the public and a hot topic for lawyers. Like most of you, I too have heard what seems to be bi- partisan support for a signifi- cant infrastructure spending program. The need to mod- ernize and expand our roads, bridges, airports, and other infrastructure will no doubt require government to acquire property amicably or take it through condemnation. Cer- tainly, lawyers practicing in the eminent domain arena will be kept busy as a result. Finally, I can never skip the opportunity to mention the commercial real estate impacts which will come from the legal- ization of marijuana. Property must be acquired for produc- tion, storage and dispensing. These properties will undoubt- edly need some level of entitle- ments, perhaps with the added challenge of local government or neighborhood opposition. These issues will make their way first through the local government process and then the appel- late court process. The results should be very interesting. All-in-all, the next few years should be a very exciting time for commercial real estate lawyers. New development introduces a whole new level of complexity and issues to the real estate attorney. In order the appropriately handle a transaction and draft proper documents, the real estate must continue to stay in- formed as to both current and pending changes in the law. I’m looking forward to what the future holds for the real estate industry. Neil A. Stein is a co- founder and principal of Kaplin Stewart and a mem- ber of the Land Use, Zoning & Development group. n
Neil Stein
taught us that anything is pos- sible and that perhaps, a new revolution may be on the way. Or, could it be “meet the new boss, same as the old boss.” Certain commercial
Firmly Rooted in the Law and in the Community We are well grounded in every facet of real estate law, from acquisition to construction. We are committed to serving the needs of our clients and our communities.
Contact: NEIL A. STEIN • nstein@kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-941-2469 • www.kaplaw.com Visit our Real Estate Blog: www.philadelphiarealestatelaw.com Visit our Construction Blog: www.pennsylvaniaconstructionlawyer.com Other Offices: Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120 Kaplin Stewart A t t o r ne y s a t L aw
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he New Jersey In- dustrial market has proven to continue its By Jason M. Crimmins, CCIM, SIOR and Alex Conte, CCIM, SIOR of The Blau & Berg Company The New Jersey industrial market remains scorching hot T mortar retail stores are los- ing volume to e-commerce as consumers are finding better simply buying goods such as clothing, electronics and housewares with immediate need for big box retail has therefore dwindled to smaller boutique retail stores. The e-commerce and logistic com- panies as industrial space continues to dwindle.
trend of be- ing scorching ho t . Leas - ing velocity at 8A has once again landed big tenants for big blocks of space. The
The New Jersey industrial market forecast for the fore- seeable future is strong due to continued need and lack of inventory on the market. With net absorption continu- ing to outpace deliveries there is little reason to expect a slowdown or recession in the coming year. Jason Crimmins, CCIM, SIOR is president of The Blau & Berg Company while Alessandro Conte, CCIM, SIOR is senior ex- ecutive director. n
pricing and convenience with online s h o p p i n g . N e x t a n d s ame d a y delivery is relieving the need for the consumer to
“There is no doubt that e-commerce is leading the surge in absorption, but also in record price per square foot leases. This allowed speculative construction to the tune of nearly 3,000,000 s/f to break ground over the next two years.”
Jason Crimmins
Alex Conte
and free delivery as well as returns can and has shifted away from brick and mortar, services such as hair salons, restaurants and automotive repair simply cannot go. The
similarities between ware- houses and big box retail stores are so close that one could expect to see some of these big box retail stores convert into warehouses for
go to a brick and mortar store for goods. This has caused a slowdown in retail leasing velocity, especially those geared towards the sale of goods and not services. While
Blau & Berg Company procured 343,485 s/f for UPS for its ecommerce fulfillment, Central Garden & Pet as- sumed 550,050 s/f and Way- fair leased 1,240,000 s/f. Not to be outdone, Amazon forged ahead to absorb 809,000 s/f at exit 12, which brings their total New Jersey footprint to +/- 7,000,000 s/f. There is no doubt that e-commerce is leading the surge in absorption, but also in record price per square foot leases. This allowed specula- tive construction to the tune of nearly 3,000,000 s/f to break ground over the next two years. With same/next day delivery becoming the norm for these companies, it has become all too important that their warehouses and distribution centers be situ- ated as close as possible to densely populated areas. With the drop in vacancy and increase in demand, the average asking lease rate is back to the highs of 2009 and peak prices have far sur- passed those rates. Overall net absorption for the year has surpassed 13,000,000 s/f with no signs of slowing down, thus projecting 2016 to be the best single year on net absorption in modern times. 2,600,000 s/f of new construc- tion deliveries are expected in the fourth quarter of 2016 alone, yet net absorption for the year is still expected to outpace this new construction four to one. While e-commerce has been the driving force for the better part of this absorp- tion, it is important that we acknowledge logistic compa- nies such as FedEx, Creative Logistics and CDS for taking on over 800,000 s/f in the third quarter of 2016 alone. Retail sales, however, have remained relatively unchanged over the past year. This is mainly due to a shift in the way consumers are now buying their prod- ucts and goods. Brick and
8A — November 25 - December 8, 2016 — Professional Services — M id A tlantic
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P rofessional S ervices
By Ronald C. Kerins, Jr., CCM, LEED AP, GREYHAWK Construction management and consulting
U
nlike many other busi- nesses, construction can be one of the most
experts, advising and acting in a building owner’s best interest to effectively manage all aspects of the construction process. Then why is it that when embarking on a construction project, some owners hesitate to bring this expertise to the table? First, let us define construc- tion consulting. The scope includes the overall planning, coordination, and control of a construction project from beginning to completion. The service ensures a client's re- quirements to produce a func- tionally and financially viable
project are met. The con- struction consultant provides comprehensive management of every stage of the project, beginning with the original concept and project definition, to yield the greatest benefit to owners. Should a project not go as planned, construction consultants may be engaged to resolve issues or provide an opinion on who bears re- sponsibility. As professionals, construction consultants have a responsibility to advise and protect a client’s interests, even if the advice is not what the client wants to hear. Building owner clients who
view the construction man- ager as a trusted advisor, such as an accountant or lawyer, find that the guidance pro- vided can be most valuable before the project commences and a great asset in the plan- ning process. Financial mat- ters are an ongoing business function that may rely on the independent advice of an ac- countant to guide a company in financial decisions. Legal matters are another ongoing business function that re- quires the independent advice of an attorney. The key with reliance on these two profes- sions is that their services are
ongoing. Construction may be once- in-a-lifetime, or a once-every- 10-years event that occurs when an organization has a planned capital expenditure. If construction, for most own- ers, is a unique event that oc- curs infrequently in the course of a company’s growth, why not seek the advice of profes- sional consultants to provide independent expertise? One of the key factors is that the owner may not be aware that professional con- struction consulting services exist. Another may be that an owner perceives the service as redundant to the architect or contractor. Some owners may have stakeholders who are armed with some knowledge of construction and do not find the process complicated enough to seek outside advice. Today, parallel growth in both the educational and medical markets has created more opportunities for profes- sional construction project management. Growth in the volume and complexity of projects in these sectors has forced many institutions to seek the expertise of consul- tant construction manag- ers. Projects are increasingly complicated by inclusion of Building Information Model- ing (BIM), Integrated Project Delivery (IPD), advanced Building Automation Systems (BAS); the use of drones; and the requirements and certifacations for sustainable design, including Leadership in Energy and Environmental Design (LEED), GreenGlobes, and other programs. No longer can design and construction teammates agree that if the building is still standing, they did an OK job. Financial and environmental metrics, occupant satisfac- tion, and other criteria now weigh heavily in determining project success. The benefits to the owner and team in terms of project organiza- tion and accountability make the services and guidance of a professional construction consultant more valuable than ever. Ronald C. Kerins, Jr. CCM, LEED AP, is a prin- cipal of GREYHAWK, an award-winning construc- tionmanagement and con- sulting firm headquar- tered in Mount Laurel, NJ. He can be reached at RKerins@greyhawk.com. n
complicated to manage. Every proj- e c t – and every day – presents a different set of challenges and unfore- seen issues
Ronald Kerins, Jr.
that must be addressed in prompt fashion, lest they cause delays in the project’s completion. Professional con- struction consultants exist to serve as subject matter
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Real Estate Journal — Professional Services — November 25 - December 8, 2016 — 11A
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P rofessional S ervices
By Tom Roman, Quality 1st Contracting Affordable fixes for sunken and uneven concrete
W
hen listing a resi- dential or indus- trial property, re-
through dime size holes, weighs only about 4 pounds per cubic foot and is environ-
on roads, bridges, industrial buildings, warehouses, and railroads with great success. It is also the perfect solution for residential homes as it has a very clean installation and works great for interior slabs, driveways, sidewalks, pool decks and porches. The PolyLevel Lifting & Leveling System comes with a warranty and completely eliminates the need to remove and replace slabs, making it much more cost effective for the property owner. This lift- ing and leveling system, not only results in a permanent solution that looks better
and lasts longer, it is less destructive to the applied surface. PolyLevel is a quick, affordable solution that will eliminate trip hazards and restore property value. Tom Roman is the owner of Quality 1st Contracting. He has been helping real- tors, property managers, and homeowners fix their homes “the right way the FIRST time” since 1986. His expertise in leveling sinking slabs, along with basement waterproofing, and foundation and crawl space repairs has made him a leader in the industry . n
So , i f mud j ack i ng doesn’t work and slab replacement is too expen-
altors often find sunken concrete in s idewalks , warehouse floors, load- ing areas , pool decks, and patios, along with
“Quality 1st Contracting offers the PolyLevel Lifting & Leveling System which takes the original concept of mud jacking and combines it with modern knowledge and technology”
mentally safe. It is strong enough to support substan- tial loads and can be driven on within 15 minutes after installation. The high capac- ity strength of PolyLevel has a lifting force from 2,000 to 4,000 pounds per square foot. It can lift very heavy structures and has been used
sive, what’s the solution? Quality 1st Contracting offers the PolyLevel Lifting & Leveling System which takes the original concept of mud jacking and combines it with modern knowledge and technology. A light weight polymer foam, PolyLevel is injected under the slab
Tom Roman
tilting or uneven concrete steps. These are trip hazards and potential buyers will quickly shy away from these issues when the question of how to fix it looks expensive. Most sinking slab problems only get worse in time as the soil beneath the slab contin- ues to shift and settle. In the past, contractors used the obsolete practice of mud jacking. Mud jack- ing is expensive, messy, and doesn’t always maintain the lift necessary to keep the area safe. The mud injected under the slab was subjected to the same conditions that made the slab sink in the first place. Water moving through the ground under the slabs can wash away the soils that support the concrete. As soil washout continues, it creates voids and empty space under the slab. Because mud jack- ing uses the same type of soil that already washed away, over time, the property owner will find the concrete begin to sink again. Replacing the concrete is another option that is disrup- tive and expensive for the seller or potential buyer. First the slabs must be jackham- mered to break them apart and then the broken concrete must be hauled away. Then, weather permitting, the new concrete must be poured and given time to cure. This pro- cess could result in damage to the lawn and landscaping and the color of the original concrete may not match the new slabs. For interior slabs, everything in the room must be removed, along with base- boards and the lower portion of the walls. A new floor is then poured and must be allowed to cure for at least two weeks before the inte- rior walls can be rebuilt and floor coverings re-installed to make the room usable again. Either inside or outside, both are extremely expensive and can cause major disruption to the property.
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» less than half the cost of replacement » concrete can be used again in 15 MINUTES » smaller & less holes than traditional mud jacking
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