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Goldman Sachs &Co. provides the $163mmnon-recourse financing The Goldenberg Group breaks ground on $199m student housing community

ISSUE HIGHLIGHTS Volume 29 Issue 23 December 8 - 21, 2017

Commercial Real Estate Law P 10-11A

senior vice president at the firm. “The View at Montgom- ery has received an incredibly positive reception – both from students and the commu- nity. We intend to continue to provide best-in-class stu- dent housing to accommodate Temple’s students, and to be a source of positive transforma- tion in the neighborhood.” Goldman Sachs & Co. LLC’s Merchant Banking Division, through its Broad Street Real Estate Credit Partners III fund, provided the $163mm non-recourse financing and will hold and service the loan for the dura- tion of the term. Ackman-Ziff facilitated the transaction act- ing as capital advisor to Gold- enberg. IntechConstruction is the general contractor and Atlanta-based Niles Bolton is the project architect. n between 9th and 8th Avenues, Polyclinic Apartments is ideally situated just blocks away from Central Park. The property is in close proximity to mass transit, including the 50th Street Subway station, which is on the same city block. The historic building in which Poly- clinic Apartments is located was originally constructed in 1910, and a large addition was made to the property in 1930. Formerly a local hospital, the building underwent a complete renovation and conversion to multifamily apartments in 1981, when it was first awarded a Section 8 HAP Contract. The community has maintained an average occupancy of 99.4 per- cent over the past three years and maintains a waiting list ex- ceeding 180 potential tenants, thanks to its affordability and desirable location. Walker & Dunlop is one of the leaders in the multifamily lending space, ranking within the top five largest multifamily lenders with Fannie Mae, Fred- die Mac, and HUD. n

HILADELPHIA, PA — The Goldenberg Group has begun con-

struction on a $199 mil- lion student housing de- v e l o pme n t adjacent to its signature student tow- er, The View at Montgom- ery.

Camber RE Ptrs. & Advance Realty acquire 529,110 s/f

Kevin Trapper

Located at 12th St. and Cecil B. Moore Ave., the 470,000 s/f mixed-use facility will feature 984 beds. The project will incorporate 30,000 s/f of ground-level re- tail, restaurant and commer- cial space and activity areas. The project represents the second and final phase of Goldenberg’s master planned redevelopment of the 4.6-acre

The View at Montgomery rendering

site of the former John Wa- namaker High School. This phase was designed to comple- ment The Goldenberg Group’s existing 832-bed student hous- ing development, The View at Montgomery. The residential component of The View has been fully

occupied since opening, and the retail component has been 100% leased and occupied since the first year of opera- tions. “The Goldenberg Group is excited to move forward to fulfill the second phase of this project,” said Kevin Trapper ,

Hinerfeld brokers 166,499 s/f sale

Company’s first HUD forward rate lock and its largest HUD financing of 2017 Walker &Dunlop closes $94m loan, preserving 151 units of affordable housing in Manhattan

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erty’s 20-year Section 8 HAP Contract and obtaining a 35- year Article XI tax abatement approval through the New York City Department of Housing Preservation & Development. Rumul said, “ThisHUD trans- action was unusual because it involved an acquisition, the negotiation of multiple different tax agreements, and coordina- tion with several state and local government authorities. The team’s efficient, diligent under- writing focus and management of the HAP and tax abatement timelines ensured the success of this deal.” Standard Communities’ Co- Founder, Scott Alter, added, “Acquiring and preserving this unique and well-located prop- erty as affordable housing when it was at-risk of converting to a market rate property was important to us. We are glad that all parties were able to support the creative structure used to ensure these apart- ments remain affordable for years to come.” Located on West 50th Street,

Manhattan , NY — Bethesda, MD — Walker & Dunlop, Inc. announced that it structured a $93,925,200 loan with the United States De- partment for Housing and Urban Development (HUD) for Polyclinic Apartments. The Section 8 property provides affordable housing units to tenants in the Hells Kitchen neighborhood in New York

Directory

Polyclinic Apartments

City, one of the most expensive areas of the country. The Walker & Dunlop team, led by Chris Rumul , arranged the financing via HUD’s 223(f) program for Standard Commu- nities, the affordable housing division of Standard Property Company. The loan not only provides acquisition financing, but will also allow the borrower to make immediate repairs and fund future renovations. In conjunction with the purchase, the borrower preserved the existing 151 affordable housing units by renewing the prop-

Financial Digest:................................................ 5-9A DelMarVa.......................................................13-15A New Jersey................................................. Section B Pennsylvania.............................................. Section C

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Mid Atlantic R eal E state J ournal Publisher, Conference Producer ......................................Linda Christman AVP, Conference Producer . .................................................Lea Christman Associate Publisher ................................................................Steve Kelley Associate Publisher .................................................................. Kim Brunet Associate Publisher ............................................................Belinda Kachel Senior Editor/Graphic Artist ................................................ Karen Vachon Office Manager ..................................................................... Miriam Buttrick Contributing Columnists .....................Deborah Nappi, Sax; Sean Clifford, Brockerhoff Environmental Services; Mark W. Eisenhardt, The Henderson Group 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, 350 Lincoln St., Suite 1105 Hingham, MA 02043 USPS #22-358 | Vol. 29 Issue 23 Subscription rates: $99 - one year, $148 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion 781-740-2900 | Fax: 781-740-2929 The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal

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health care from a distance. Telemedicine services can only be provided by licensed, certi- fied or registered health care professionals through interac- tive, real-time, two-way com- munication technologies. This specifically does not include audio-only telephone conversations, e-mail, instant messaging, faxing or texting. Telemedicine services for both primary and specialty care can be provided to new patients without an initial in-person visit, but will require identifica- tion of the provider and patient, and the provider must review the patient’s medical history and available patient medical records prior to the initial en- counter. This also applies to the issuance of prescriptions of most

medications, treatment and consultation recommendations. For both patient encounters and the prescribing of medication, a determination must be made that the same standard of care will be provided to the patient via telemedicine as would be provided with an in-office visit. For payments to the provid- ers, the Act requires that the various government payers, along with the private insur- ance payers provide coverage for telemedicine services on the same basis as services delivered in-person. However, it is stated that the reimbursement rate for telemedicine cannot exceed the in-person provider reimburse- ment rate. To begin with telemedicine continued on page 8A

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MID ATLANTIC Real Estate Journal Features Annual 2018 Forecast Spotlight

POTENTIAL TOPIC CHOICES: Brokerage • RE Law • Finance • Energy • A/E/C

Green Practices• Development • Building Services

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We are inviting a select group of top executives to forecast and or predict what they see for 2018 relating to their specific industry specialty. Highlighting future periods of economic activity in various related categories. Including but not limited to the overall economy, inflation, interest rates, future business growth, capital markets and other areas effected by commercial real estate. Kimberly Brunet, Publisher Mid Atlantic Real Estate Journal P: 781-740-2900 | kbrunet@marejournal.com

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$266,050,000

425 CENTRE 425 106 Th AvENuE NE

BEllEvuE, WAshiNgToN A 356,909 square foot office building. The undersigned arranged the above acquisition financing.

Richard horowitz

622 Third Avenue New York, NY 10017 (212) 986-8400 Fax: (212) 983-0512 www.cooper-horowitz.com

Real Estate Financing

F inancial D igest

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Team reps. seller and assists buyer in $72.012M sale and financing HFF announces 16 financings totaling $663M secured by class A retail properties in NY and NJ N EW YORK, NY — Holliday Fenoglio Fowler, L.P. (HFF) dense submarkets with afflu- ent demographics, including15 located in New Jersey and one in New York.

Arlington, VA — HFF announces the $72.012 million sale of and the financing for Two Liberty Center, a 178,700 s/f, class A office building in the Ballston submarket of Arlington. The HFF team represented the seller, an entity controlled by the Fred Schnider Invest- ment Group, and assisted the buyer, an entity controlled by Westbrook Partners, in secur- ing acquisition financing. The property was sold free and clear of existing debt. Two Liberty Center is situ- ated at 4075 Wilson Blvd. within the larger 2.25 million- s/f Liberty Center mixed-use development. The HFF team included Jim Meisel, Sue Carras, Andrew Weir, Steve Conley and Matt Nicholson . The property is just two blocks from the Ballston-MU Metrorail Station and offers excellent vehicular access via I-66 and Rte. 50. n structures and 100,000 s/f of flex space. The Subject’s largest building, previously leased to Restaurant Depot which accounted for 85% of the leasable area, was gut renovated in early 2016 and successfully re-leased in less than 6 months. The Subject is 100% occupied by 20 tenants including a sign manufacturer, bakery production center, DJ and entertainment company, and indoor trampoline and adventure park, among others. Units range from 1,280 s/f to 11,000 s/f. The property is strategically located in Bergen County with an entrance to Rte. 80 less than one quarter of a mile away and the New Jersey Tpke. just 2.5 miles east. These are two of the major highways serving the region, providing access to western NJ towards Pennsyl- vania, and east to NYC and the entire metro. The loan was originated and placed by Dev Morris, Al- lison Villamagna, and Andrew Stewart. n

announced 16 financings total- ing $663 million secured by 15 class A retail properties and one industrial property total- ing 4.6 million square feet in New York and New Jersey. The HFF team worked on behalf of the borrower, Urban Edge Properties, to secure the 16 separate loans with two CMBS lenders, three life com- pany lenders and one bank. The loans include 14 fixed- and two floating-rate facilities with terms ranging from seven to 13 years. Loan proceeds will be used to pay off existing CMBS debt and create additional proceeds, while staggering and lengthening the duration of the borrower’s maturity schedule. The portfolio comprises 98.1%-leased retail centers anchored by grocery stores, including ShopRite, Stop & Shop and Aldi; Home Depot; Lowe’s; Costco; BJ’s Wholesale FAIRLESS HILLS, PA — Cronheim Mortgage announced the closing of a $33.5MM mortgage loan for a Fairless Hills Towne Center, grocery-anchored retail center in Fairless Hills. The loan was placed with a leading invest- ment bank and structured with a 7-year term and 30-year amortization schedule after an 18-month interest only period. The perm loan refinanced the bridge loan used to acquire and reposition the property. The client, a JV between Larken Associates and Red Starr Investments , acquired the 294,000 s/f property in May 2015 with 120,000 s/f of vacancy after Walmart left the center, relocating to a new SuperCenter a couple miles away. The owner immedi- ately undertook a full property renovation including a new façade, roof and HVAC replace- ments, parking lot repaving, new landscaping and signage. The cosmetic upgrades and an activist management approach led increased leasing velocity,

The HFF debt placement team representing the bor- rower included managing director Scott Aiese and se- nior managing directors Jon Mikula and Mike Tepedino . “This retail financing proves that the capital markets re- main highly liquid for assets in dense markets operated by best-in-class sponsorship,” Aiese said. “As lenders remain focused on diversifying their portfolios by asset type and geography, HFF experienced significant interest in the 15 retail term loan opportuni- ties.” HFF and Holliday GP Corp. are licensed New Jersey real estate brokers. which resulted in new leases and existing tenant term ex- tensions totaling over 170,000 s/f of space. Additionally, the client converted 35,000 s/f of “dead” retail space in the rear of the former Walmart space to climate-controlled self-storage. David Turley said: “Larken and Red Starr did a great job identifying the latent potential of this property and location and then executing quickly and creatively. We are pleased to have helped them recapital- ize their capital stack to allow them to harvest some equity and structure the debt for long- term cash flow.” HACKENSACK, NJ — CronheimMortgage secured $7.2 million in financing for a prime industrial property lo- cated in Hackensack. The loan was structured on a 15/25 basis with a 4.18% interest rate and was placed with Southern Farm Bureau Life Insurance Co., whom Cronheim represents as a correspondent and servicer. The subject property encom- passes three, free-standing

Urban Edge Properties portfolio HFF announces $72.012M sale and financing of Two Liberty Center in the Ballston submarket of Washington, D.C. Cronheim secures $33.5m for retail center in Fairless Hills, PA Club and Walmart in addition to one multi-tenant warehouse property in East Hanover, NJ. The 16 properties are in

Fairless Hills Towne Center

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2018 Editorial CalEndar Editorial dEadlinEs arE 14 days prior to publiCation datE

JANUARY

APRIL

FEBRUARY JANUARY 12 ................................... DEADLINE: DEc. 29 ROP (FRONT SECTION): ................................. FINANcIAL DIGEST DEL/MAR/VA/DC:.................................. FINANcIAL INSTITUTIONS NEW JERSEY: .......................................................... SOUTHERN NJ PENNSYLVANIA: ............................................ NORTHEASTERN PA SPOTLIGHT:........................................................... 2018 FOREcAST JANUARY 26 ....................................DEADLINE: JAN. 12 ROP (FRONT SECTION) GREEN BUILDINGS SHOPPING CENTERS: MID ATLANTIc IcSc cONFERENcE & D.M ODM: .................................................... PROPERTY MANAGEMENT SPOTLIGHT:........................................ EcONOMIc DEVELOPMENT FEBRUARY 9 . . . . . . . . . . . . . . . . . DEADL INE: JAN. 26 ROP ( FRONT SECTION): ....................... FINANcIAL DIGEST DEL/MAR/VA/DC:........................................................... DELAWARE NEW JERSEY: ............................................................. cENTRAL NJ PENNSYLVANIA: ........................................................ WESTERN PA SPOTLIGHT:................................................................. 30 UNDER 30 FEBRUARY 23 . . . . . . . . . . . . . . . . . DEADL INE: FEB. 9 ROP (FRONT SECTION) SHOPPING CENTERS: ............................. MIxED-USE PROJEcTS ODM: ................................. ENVIRONMENTAL/GREEN BUILDINGS SPOTLIGHT:......................... cOMMERcIAL OFFIcE PROPERTIES MARcH 16 . . . . . . . . . . . . . . . . . . . . DEADL INE: FEB. 23 ROP (FRONT SECTION): ................................. FINANcIAL DIGEST DEL/MAR/VA/DC:............... cONTRAcTORS/SUBcONTRAcTORS NEW JERSEY: .......................................................... NORTHERN NJ PENNSYLVANIA: ......................................................... cENTRAL PA SPOTLIGHT:.......................................................... 1031 ExcHANGE MARcH 30 . . . . . . . . . . . . . . . .DEADL INE: MARcH 16 ROP (FRONT SECTION) GREEN BUILDINGS SHOPPING CENTERS: .................................. INDUSTRY ExPERTS ODM: .................................. MULTIFAMILY FEATURING POA ExPO SPOTLIGHT:............................................................... BEST OF 2017 MARCH

JUNE APRI L 13 . . . . . . . . . . . . . . . . . . DEADL INE: MARcH 30 ROP (FRONT SECTION): ................................. FINANcIAL DIGEST DEL/MAR/VA/DC:........................................................... MARYLAND NEW JERSEY: .......................................................... SOUTHERN NJ PENNSYLVANIA: ............................................ SOUTHEASTERN PA SPOTLIGHT: .................................................................. APPRAISAL APRI L 27 . . . . . . . . . . . . . . . . . . . . DEADL INE: APRI L 13 ROP (FRONT SECTION) GREEN BUILDINGS SHOPPING CENTERS: LAS VEGAS REcON IcSc cONVENTION ODM: ..... GREATER PHILA. FAcILITY MANAGEMENT ExPO 2018 SPOTLIGHT: ....................................................... SPRING PREVIEW MAY 11 . . . . . . . . . . . . . . . . . . . . . . . . DEADL INE: APRI L 27 ROP (FRONT SECTION): ................................. FINANcIAL DIGEST DEL/MAR/VA/DC:............................... MANAGEMENT cOMPANIES NEW JERSEY: ............................................................. cENTRAL NJ PENNSYLVANIA: .............. PA'S PROJEcTS/BUILDING SERVIcES SPOTLIGHT:..................................... NJAA ExPO & cONFERENcE MAY 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . DEADL INE: MAY 11 ROP (FRONT SECTION) GREEN BUILDINGS SHOPPING CENTERS: ... RETAIL ARcHITEcTURE/cONSTRUcTION/ENGINEERING ODM: .............................................................. INDUSTRY LEADERS SPOTLIGHT:..................... INDUSTRIAL/DISTRIBUTION cENTERS JUNE 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . DEADL INE: MAY 25 ROP (FRONT SECTION): ................................. FINANcIAL DIGEST DEL/MAR/VA/DC:................................................................ VIRGINIA NEW JERSEY: .......................................................... NORTHERN NJ PENNSYLVANIA: ......................................................... cENTRAL PA SPOTLIGHT:................................................. cREATIVE FINANcING JUNE 22 . . . . . . . . . . . . . . . . . . . . . . . . . DEADL INE: JUNE 8 ROP (FRONT SECTION) GREEN BUILDINGS SHOPPING CENTERS: ............................. RETAIL/RESTAURANTS ODM: .................................. cONTRAcTORS/SUBcONTRAcTORS SPOTLIGHT:....................................................... MID-YEAR REVIEW MAY

ROP — Run of the Paper is the first section in each issue. This covers news for all five states and offers prime advertising positioning. Editorial Requirements: Press Release 350-500 words with property photo and broker photos. Expert Articles: 550 words with author headshot and 25 word bio. Deadline: 14 days prior to publication date. We host industry specific conferences www.marejournal.com For DIGITAL ADVERTISING Please contact us for more information Linda Christman | Owner/Publisher | Conference Producer lchristman@marejournal.com Mid Atlantic Real Estate Journal | 350 Lincoln St., Suite 1105 Hingham, MA 02043 781-740-2900 x207 | Fax 781-740-2929

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July

OCTOBER

NOVEMBER OcTOBER 12 . . . . . . . . . . . . . . . DEADL INE: SEPT. 28 ROP (FRONT SECTION): ................................ FINANcIAL DIGEST DEL/MAR/VA/DC: .......... cOMMERcIAL REAL ESTATE BROKERS NEW JERSEY: ......................................................... SOUTHERN NJ PENNSYLVANIA: ........................................... SOUTHEASTERN PA SPOTLIGHT: ...................................................... INSURANcE/TITLE OcTOBER 26 . . . . . . . . . . . . . . . . . DEADL INE: OcT. 12 ROP (FRONT SECTION) GREEN BUILDINGS SHOPPING CENTERS: ......................................... RETAIL DESIGN ODM: ................................................................ ASK THE ExPERTS SPOTLIGHT: ........................... ExEcUTIVE WOMEN IN BUSINESS NOVEMBER 9 . . . . . . . . . . . . . . . . . DEADL INE: OcT. 26 ROP (FRONT SECTION): ................................ FINANcIAL DIGEST DEL/MAR/VA/DC: .......................................................... MARYLAND NEW JERSEY: ............................................................ cENTRAL NJ PENNSYLVANIA: ....................................................... WESTERN PA SPOTLIGHT: ................................................ LENDERS DIREcTORY NOVEMBER 23 . . . . . . . . . . . . . . . . DEADL INE: NOV. 9 ROP (FRONT SECTION) .. HEALTHcARE & MEDIcAL PROPERTIES GREEN BUILDINGS SHOPPING CENTERS: ............................ NY IcSc DEAL MAKING ODM: ............... cONSTRUcTION MANAGEMENT/DESIGN BUILD SPOTLIGHT: ....................................... PROFESSIONAL SERVIcES DEcEMBER 14 . . . . . . . . . . . . . . .DEADL INE: NOV. 30 ROP (FRONT SECTION): ................................ FINANcIAL DIGEST DEL/MAR/VA/DC: ............................................................... VIRGINIA NEW JERSEY: ......................................................... NORTHERN NJ PENNSYLVANIA: ........................................................ cENTRAL PA SPOTLIGHT: ............................ cOMMERcIAL REAL ESTATE LAW DEcEMBER 28 . . . . . . . . . . . . . . DEADL INE: DEc. 14 ROP (FRONT SECTION) GREEN BUILDINGS: ................................... ENERGY EFFIcIENcY SHOPPING CENTERS: ............................ MIxED-USE PROJEcTS ODM: ............................................................. INDUSTRY LEADERS SPOTLIGHT: ........................................................ ANNUAL REVIEW DECEMBER

SEPTEMBER JULY 13 . . . . . . . . . . . . . . . . . . . . . . . . DEADL INE: JUNE 22 ROP (FRONT SECTION): ................................ FINANcIAL DIGEST DEL/MAR/VA/DC: ........................................................ ATTORNEY'S NEW JERSEY: ......................................................... SOUTHERN NJ PENNSYLVANIA: ........................................... NORTHEASTERN PA SPOTLIGHT: ........................................ TAx ISSUES/AccOUNTING JULY 27 . . . . . . . . . . . . . . . . . . . . . . . . DEADL INE: JULY 13 ROP (FRONT SECTION) GREEN BUILDINGS SHOPPING CENTERS: ................................ RETAIL BROKERAGE ODM: ................................................. ARcHITEcTS & ENGINEERS SPOTLIGHT: ................ cOMMERcIAL BROKERAGE DIREcTORY AUGUST 10 . . . . . . . . . . . . . . . . . . . DEADL INE: JULY 27 ROP (FRONT SECTION): ..................... MULTIFAMILY FINANcING DEL/MAR/VA/DC: ................................................ WASHINGTON Dc NEW JERSEY: ............................................................ cENTRAL NJ PENNSYLVANIA: ..................................... PA'S ELITE cOMPANIES SPOTLIGHT: ......................................................... 1031 ExcHANGE AUGUST 24 . . . . . . . . . . . . . . . . . . . DEADL INE: AUG. 10 ROP (FRONT SECTION) GREEN BUILDINGS SHOPPING CENTERS: ............ PA/NJ/DE/IcSc IDEA ExcHANGE ODM: ................................................................... INDUSTRY LEADERS SPOTLIGHT: .................................................... STUDENT HOUSING SEPTEMBER 14 . . . . . . . . . . . . . DEADL INE: AUG. 24 ROP (FRONT SECTION): ................................ FINANcIAL DIGEST DEL/MAR/VA/DC: .......................................................... DELAWARE NEW JERSEY: ......................................................... NORTHERN NJ PENNSYLVANIA: ........................................................ cENTRAL PA SPOTLIGHT: .................................................................. APPRAISAL SEPTEMBER 28 . . . . . . . . . . . . DEADL INE: SEPT. 14 ROP (FRONT SECTION) GREEN BUILDINGS SHOPPING CENTERS: ....... SITE SEEKING & RETAIL SERVIcES ODM: .. GOVERNOR’S cONFERENcE ON HOUSING & EcON DEV. SPOTLIGHT: ............................................................ FALL PREVIEW August

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EW YORK, NY — ManageGo , the na- tionwide cloud-based N Enable renters to use Bitcoin, Ethereum and Litecoin ManageGo announces 1st crypto currency rent payment platform onds, the system will convert and transfer cash to a property manager’s account. All tenants need is their own coin wallet and there is no crypto risk for the property manager.

Recently Closed Loans

and will roll out the exclusive feature during the first quarter of 2018 across their property management client network. ManageGo is the only major cloud-based real estate solution that provides property manag- ers with customized, client- branded online and mobile front-end tenant portals. Along with other accepted forms of payment, such as checking account, debit card, and credit card, the crypto option will be integrated into a property manager’s website. Tenants will simply log in, select the payment option, and in sec-

tenant pay- m e n t a n d p r o p e r t y management platform, will now enabl e renters to use three of the most widely- accepted cryp- tocurrencies: Bitcoin, Ethe- reum and Litecoin. ManageGo has already com- pleted a number of cryptocur- rency payment transactions ChaimLowenstein

$6,360,000 $35,000,000 $20,400,000 252-Unit Multifamily Bridge Loan 161-Unit Multifamily Permanent Loan Office Construction Loan Tulsa, OK Philadelphia, PA Bethlehem, PA 80% LTV, 36 Months, LIBOR + 450 bps 75% LTV, 10/30, 5.5%, Non-Recourse, Full-Term I/O 90% LTC, 24 Months, 4.625%

A cryptocurrency is a digi- tal asset designed to work as a medium of exchange using cryptography to secure code, manage transactions and verify transfer of assets. “ManageGo is leading the evolution to facilitate safe, secure rental payments using cryptocurrency,” said Chaim Lowenstein , ManageGo VP of business strategy. “Our exclusive program is the first we know of that easily enables tenants to pay a rent or other expenses using Bitcoin or other approved cryptocurrencies.” “This Bitcoin advpancement is going to be historic, in the same way giving tenants the option to write a check instead of handling large amounts of cash every month changed the way people pay rent,” said Ja- cob Bernat , president of Plaza Management. “We’re pleased to be one of the first to offer our tenants this convenient, no- risk, instantaneous payment method.” n services, a proper provider- patient relationship must be established, and various reg- istration and record-keeping requirements must be adhered to. Applicable professional li- censing boards will adopt regu- lations while implementing the provisions of the Act, but providers do not have to wait for those as the Act has already taken effect. All telemedicine organizations operating in New Jersey will need to register with the New Jersey Department of Health and file annual reports with specific encounter data which will be compiled to help analyze telemedicine regula- tions and telemedicine’s impact on the health care industry. Telemedicine will directly benefit New Jersey’s patient population that finds it difficult to schedule in office physician visits while maintaining the quality of care and patient safety. It provides improved patient access while extend- ing the reach of physicians beyond their office. Debbie Nappi is senior healthcare manager at Sax . n continued from page 2A Telemedicine in NJ: The Future . . .

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Real Estate Journal —December 8 - 21, 2017 — 9A

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10A —December 8 - 21, 2017 — Commercial Real Estate Law — M id A tlantic

Real Estate Journal

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C ommercial R eal E state L aw By Adam J. Sklar, Cole Schotz P.C. Contractors, Know Your Contracts!

R ecently, New Jersey’s Appellate Division re- affirmed the principle

mine the dispute, even if the court believes that strictly applying the contract terms would be unfair to one of the parties under the circum- stances. While this is not a novel legal principle, the Appellate Division, in its unpublished opinion, Wallace Bros, Inc. v. East Brunswick Board of Education, Docket No. A- 1432-15T3 (N.J. App. Div. Nov. 9, 2017), reiterated this tenet in reversing a trial court that granted summary judgment to a general con- tractor that claimed it was

owed final payment on a school construction project because the school board had waited too long to object to the contractor’s work. The Appellate Division found that there were numerous material factual disputes between the parties when examining their allegations and the language in the par- ties’ contract. It, therefore, reversed the trial court’s judgment, and remanded the case back to the trial court for further proceedings. Criti- cally, it appeared from the facts proffered by the school

board that the contractor had not yet complied with the contract’s provisions re- garding the right to receive final payment, such as the contractor’s obligations to provide standard close-out documentation and its failure to complete punch-list work. Wallace Bros. serves as a reminder of how important it is for a contractor to review and, where possible, negoti- ate the terms of a contract before signing it, and then strictly comply with all con- tract provisions during the course of the project through

completion. In the public contracting context, as in Wallace Bros., the contrac- tor generally must accept the terms of the contract on which it bids. It then must strictly follow the procedures set forth in that contract when seeking payment for its work, particularly those provisions which explicitly set forth prerequisites to pay- ment. For example, change order provisions will typical- ly require written documen- tation signed by the owner setting forth the additions or changes to the specified contract work, along with the price to be paid for that work, before such work is even per- formed, and therefore before payment is required to be made by the owner for any such work. Also, as illustrated in Wal- lace Bros., contractors must be sure to compile and main- tain their close-out docu- mentation throughout the project, so that when it is time to submit their close-out packages in connection with final payment, they are not delayed tracking down or lo- cating items such as subcon- tractor lien waivers, as-built drawings, and manufacturer warranties. Note that in the private contracting context, a contractor may attempt to negotiate all contract provi- sions to try to ease the bur- dens of onerous payment and close-out requirements, as well as other critical terms, such as dispute resolution provisions and requirements relating to the performance and inspection of the work itself. In sum, contractors must stay on top of their admin- istrative duties and respon- sibilities in connection with their contracts, in addition to ensuring the proper and complete performance of the work itself. No contracting party wants a construction dispute to end up in litiga- tion, but if it does, the con- tractor will want to ensure that it has done everything by the book (or by the con- tract) to avoid getting tripped up by a technical contract prerequisite with which it failed to comply. Adam J. Sklar is a mem- ber of Cole Schotz P.C.’s Litigation Department and Construction Services Group. n

that a court must strict- ly apply the terms of a c o n s t r u c - t i o n c o n - tract when determining a d i s p u t e between con-

Adam J. Sklar

tracting parties. Where the contract terms speak directly to the issue in dispute, a court may not employ equi- table considerations to deter-

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Real Estate Journal — Commercial Real Estate Law —December 8 - 21, 2017 — 11A

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C ommercial R eal E state L aw By John Sylvanus, Barley Snyder Good archiving can save you money

H ave you ever searched for a specific email in your firm’s database? I f n o t ,

ing sure your construction lawyer can find documents is critical to success or failure. Spend some time, and per- haps money, to make certain your files are litigation-ready, or prepare for the cost of not doing so. John Sylvanus is an of counsel at Barley Snyder and a member of the firm’s litigation group. He works in construction litigation de- fense for construction and development companies. To reach John, contact him at 717-852-4988 or at jsylva- nus@barley.com. n

certain they have it. If you don’t, I don’t and I can't help prepare you to respond to the

are all in a submittal file, with a subfile properly labelled to that submittal than if all sub-

mittals in separate subfiles rather than as a whole. The same goes for change order requests and change orders, job conference reports, daily reports and all documents. The smaller the file the easier it is to search. Finally is format . All docu- ments should be converted to PDF format. It is easy to open and, most importantly, searchable. Searchability is critical to locating documents. In a real sense, your ar- chival procedures can save you thousands of dollars in the event of litigation. Mak-

give it a try. Don’t ask IT or someone else to do it for you. Open the files and s e a r c h f o r yourself. If your system

Well-organized and searchable files make locating relevant documents easy and inexpensive.

claims in that email. Next is labeling and or- ganization . Remember the days of paper files with file labels? Documents are no good to me if I can't locate them. If I’m looking for a specific submittal, the return stamped copy and resubmit- tals, it’s much easier if they

mittal documents are saved chronologically as produced. Searchability is worth mentioning again. If docu- ments aren’t saved in search- able PDF or other form, they are worthless. An often overlooked ele- ment is size. Save emails by months, not years. Save sub-

John Sylvanus

administrator has saved ev- erything in PDF format, it is searchable. Use a keyword and find the specific email you want. Then read the rest of this article. If everything is saved in what is called “native” format, good luck. How a company archives its electronic documentation could save it tens of thousands of dollars in major construc- tion litigation. Federal courts require agreements on elec- tronic document production which can stretch to 10 or 12 pages of details on how and in what form documents are exchanged. Construction is a compli- cated process. Every decision involves multiple people email- ing each other. Gone are the days when these matters were handled in site meetings and telephone calls, with a type- written letter commemorating the decision. Today there are email chains. While you are in your email archives, search for the emails related to a specific matter you recall as being a difficult negotiation and resolution. See how many times an individual email is repeated. For each individual in your organization, there is a separate email chain each time that person sent or re- ceived an email relating to that issue. At the close of the process, an email saying “I concur” can add an additional 100 pages to the electronic files. When a dispute arises and I get involved, the “rubbermeets the road.” Well-organized and searchable files make locating relevant documents easy and inexpensive. What constitutes “well-organized” to the person charging you by the hour to find things? First and most important is completeness . Make certain everyone is dedicated to the process. A missing email can be problematic. If it favors your opponent, you can be

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Real Estate Journal —December 8 - 21, 2017 — 13A

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Sale of SunTrust Tower in Baltimore’s Central Business District Cushman & Wakefield closes sale of 327,000 s/f office building

For cider facility in Virginia Beach Farmhouse Brewing plans additional $750k investment

Virginia Beach, VA — Farmhouse Brewing, LLC, is a partnership with Back Bay Brewing Co., Eddie Hewitt, a local developer whose wife, Sara, is a descendant of the William E. Wood family and Ross Vierra, the president and CEO of Axis Global Enter- prises , the general contractor. The company is renovating the historic Wood Family farm- house at 1805 Kempsville Road for Back Bay’s second brewery location in Virginia Beach. The farmhouse was built in 1910, and plans include tasting rooms, lounges and ADA-ac- cessible facilities. The 8.6-acre site will also include a metal building where small-batch beer will be brewed, a pergola, fruit orchard, horseshoe area, picnic tables, open-air market, tented outdoor wedding and special-event space and an area for crops that will sup- port the brewing operation. The brewery is currently under construction with plans to open on March 24. The brewery has recently announced plans to build an additional 2,500 s/f building that will become the first Vir- ginia FarmWinery in Virginia Beach. The new facility will fo- cus on producing hard cider us- ing Virginia apples. In addition to bringing a new amenity and destination to Virginia Beach, Farmhouse Cidery will create a new stream of tax revenue. Five jobs with average annual salaries of $45,000 will also be added. The tasting room for Farm- house Cidery will be located in the renovated historic farm house. Cider production will take place in the new 50’ x 50’ metal building on the site with an attached 20’ x 30’ walk-in cooler. A separate building will house the cider packaging area, which will be shared with the brewery. On-site apple trees will complement apples that the company plans to source from other Virginia pro- ducers, including Silver Creek Orchards in Nelson County. “Today’s announcement of Farmhouse Cidery’s new in- vestment and jobs in Virginia Beach, and their commitment to purchase 100% of their apples from Virginia farm-

ers demonstrates the impact agriculture can have in urban areas of the Commonwealth,” said Governor Terence McAu- liffe. “Investments like this create jobs, tourism activity, and grows the tax base, while creating new markets for Vir- ginia’s farmers as craft bever- age producers look to source apples, hops, fruit, honey, and other agricultural products. The announcement is a great win for Virginia’s craft bever- age industry and our ongoing efforts to build a new Virginia economy.” “This innovative land use preserves our history and cre- ates a new destination for the Kempsville area,” said Virgin- ia Beach Mayor Will Sessoms. “We are also pleased to be the first cidery in the region that will focus on Virginia-made products and promote our rich agricultural heritage.” The Virginia Department of Agriculture and Consumer Services worked with the City of Virginia Beach and Farm- house Cidery to secure this project for Virginia. Governor McAuliffe approved a $20,000 grant from the Governor’s Agriculture and Forestry In- dustries Development (AFID) Fund. Additionally, the Vir- ginia Beach Development Authority will review an Eco- nomic Development Invest- ment Program grant proposal in the amount of $20,000 based on the new $750,000 capital investment at its November 21 meeting. “Through its commitment to sourcing ingredients from Virginia’s agricultural pro- ducers, Farmhouse Cidery is further supporting Virginia’s robust apple industry,” said Secretary of Agriculture and Forestry Basil Gooden. “I am pleased the Commonwealth could partner with the City of Virginia Beach through the AFID Program to support this innovative local business in a quickly growing industry.” The Virginia Beach Devel- opment Authority previously granted an Economic Devel- opment Investment Program grant in the amount of $35,000 in June 2016 based on the com- pany’s initial projected capital investment of $1,420,000. n

ALTIMORE, MD — Cushman & Wake- field announced that it closed the $32.8 million sale of 120 E. Baltimore St. on Friday, October 20, 2017. The 25-story, Class A office tower was 75% leased at the time of sale with high-profile anchor tenants such as SunTrust Bank, State of Maryland Pen- sion System and Baltimore City State Attorney’s Office. Grander Capital Partners, a Boston-based commercial real estate investment manage- ment services company, was the buyer of the building. “The sale is indicative of the increased confidence that investors are showing in the Downtown Baltimore office market,” said Jonathan Car- penter , executive director at Cushman & Wakefield. “This is the fourth major office tower investment sale in 2017, with several more transactions in process.” Graham Savage , director and Nicole Keelty , senior director also represented the client in the transaction. Jona- than, Graham and Nicole all reside in Cushman & Wake- field’s Baltimore office. n B nego t i a t ed two l eases i n Su s s e x County, rep- resenting the landlords in both transac- tions. HMDGear, a company that sells tactical clothing and Ann Bailey RICHMOND, VA — Mar- cus & Millichap announced that Mike Early has rejoined the firm as first vice president investments and a director of the National Retail Group (NRG). Early will be based in the firm’s Richmond and Nor- folk offices. “Marcus & Millichap has a true entrepreneurial spirit

120 E. Baltimore St.

Lewes, DE — NAI Emo- ry Hill’s Lewes office broker Ann Bailey, CCIM , recently NAI EmoryHill negotiates leases in Sussex County, DE items for police, firemen, first responders and EMTs, leased 1,565 s/f of retail space at 18389 Olde Coach Dr. (Storage Solutions Building known as Colonial Square) in Rehoboth Beach. The landlord was Co- lonial East LP. There is cur- rently one space still available at this location. Blvd. in Lewes. Bailey rep- resented the landlord, Vine- yards Rental Holdings, LLC. Dr. Tananis’ office will be a general dentistry practice. The Vineyards at Nassau is a mixed-use office and retail complex on 82 acres with two buildings and pad sites in historic Lewes close to the Delaware beaches and coastal towns with prime visibility on Rte. 9. Two remaining spaces are available. n “We are pleased to welcome Mike Early back to the firm,” said Bryn Merrey , senior vice president and southeast division manager. “Over the past 18 years he has completed investment asset sales across 13 states and the District of Columbia. n Michael Early rejoinsMarcus &Millichap as a director Dr. Richard Tananis, DDS, LLC, leased 3,514 s/f of of- fice space at the Vineyards at Nassau at 12000 Old Vine that is paramount to marketing properties, building relation- ships, and representing a cli- ents’ best interests,” said Early. “Central, Southeastern and the Commonwealth of Virginia as a whole is an exceptional market where outside capital is eager to seek entrance. Marcus &Mil- lichap has an unparalleled abil- ity to import and export capital across markets and truly drive pricing.”

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