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578 units in Washington D.C. Metro and Orlando, Florida Avanath acquires two affordable communities for nearly $100 Million

ISSUE HIGHLIGHTS Volume 31, Issue 23 December 13 - 26, 2019

PISCATAWAY, NJ — Rockefeller Group , a real estate developer, owner and operator, along with joint venture partner PCCP, LLC , announced that SHI Interna- tional, one of North America’s top 10 largest IT solutions providers, has purchased a 396,750 s/f building in Rock- efeller Group Logistics Center for $59.5 million. SHI will use Management, LLC , a private real estate investment manag- er and Registered Investment Adviser, has purchased two affordable apartment commu- nities with a combined total of 578 units in Alexandria, VA – a city in the Washington D.C. Metro area – and Orlando, FL. The assets were acquired for a combined total of $99.175 million, according to JohnWil- liams , president and CIO of Avanath Capital Management. “Both the Washington D.C. Metro and Orlando markets align well with Avanath’s in- vestment strategy of targeting markets with strong economic, job, and population growth where home affordability is be- coming increasing more difficult and market-rate rents continue to rise,” said Williams. “These A LEXANDRIA , VA and ORLANDO, FL — Avanath Capital

nine for specialized mechani- cal, electrical and plumbing equipment to support SHI’s data operation; and increased roof load to accommodate a solar rooftop application. The building is located at 400 Ridge Rd. in Piscataway. “This new facility allows SHI to scale with customer demand as organizations increasingly adopt and deploy hybrid cloud and data center technologies,” said Thai Lee, president and CEO of SHI International. “Rockefeller Group Logistics Center has the infrastructure in place to support our techni- cal needs and the location is ideal for our company as we continue to grow nationally. This state-of-the-art data cen- ter adds to our footprint in New Jersey, and positions SHI to have the largest IT integra- tion footprint east of Chicago.” Cushman & Wakefield’s Stan Danzig, Jules Nissim and Marc Petrella repre- sented the seller. Cushman & Wakefield’s Shawn Straka represented the buyer.  submarkets are undergoing significant growth, which Williams says is in part due to Amazon’s planned second headquarters in Crystal City, Virginia, less than 7 miles from Alexandria Station. Avanath Capital Manage- ment also purchased Brooke Commons, a 288-unit mixed income community in Orlando, FL for $46.5 million. Built in 2000, Brooke Com- mons is a 99% occupied family community comprising 36 two- story buildings. 5% of the units at the property serve residents that make 55% of AMI, 50% of the units serve residents who make 60% of AMI, and 45% of the units serve residents who make 60-80% of AMI. The asset is located three miles from the University of Central Florida, one of the largest universities in the U.S., according to Williams. 

SPOTLIGHTS

CRE LAW

2-3A

CONTRIBUTING COLUMNIST

Alexandria Station Apartments

are some of the nation’s most cost-burdened markets with a demonstrated demand for affordable housing properties. They present opportunities for our firm to invest in proper- ties where we can preserve affordability for residents and produce steady returns for our investors.” Avanath Capital Manage- ment has acquired Alexandria Station, a 290-unit affordable

apartment community in Alex- andria, VA, for $52.675 million. Built in 1965 and renovated in 1998 and 2010, Alexandria Station is a 97% occupied af- fordable family community comprising 25 three-story structures. The property marks Ava- nath’s eighth investment in the D.C. Metro area, including Virginia and Maryland. Alex- andria and its surrounding

Jason Borofsky, CPA, MBA

UPCOMING CONFERENCES December 17, 2019 6 th Annual NJ Capital Markets Conference December 18, 2019 4 th Annual Philadelphia Apartment Multifamily Conference For speaking and sponsorship information, please contact: Lea at 781-740-2900 or lea@marejournal.com

SHI International purchases 396,750 s/f building inRockefeller Group Logistics Center for $59.5M

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Rockefeller Group Logistics Center

the building primarily for IT configuration. “The addition of SHI to Rockefeller Group Logistics Center shows the growing diversity of logistics parks, that they can attract uses other than warehousing and distribution,” said Heath Abramsohn , Rockefeller Group vice president and regional director for the New Jersey and Pennsylvania re- gion. “SHI had a unique vision for their integration center,

and we were able to accom- modate them by developing a facility that could serve as a high-end IT configuration center with a large number of employees.” The 396,750 s/f building was developed specifically for an IT tenant. It features 36-foot clear ceiling heights; an 8,000 amp, primary service connection in- cluding a full building backup generator; a chiller plant for tenant data/software equip- ment; a steel platform mezza-

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WE KEEP CLOSING DEALS

Mercury West Apartments Purchased by Cyclone Investment Group 204-Unit Multifamily Property Hampon, VA FINANCED $17,100,000 3-YEAR TERM | INTEREST ONLY 2.75% + LIBOR | 80% LTC 100% FUNDING OF CAPEX

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UPCOMING features SPOTLIGHTS

Mid Atlantic Real Estate Journal

Mid Atlantic R eal E state J ournal Publisher, Conference Producer . .............Linda Christman AVP, Conference Producer ...........................Lea Christman Publisher ........................................................Joe Christman Section Publisher ............................................. Steve Kelley Section Publisher ............................................... Kim Brunet Editor/Graphic Artist ......................................Karen Vachon Office Manager ............................................... Kerrin Devine Contributing Columnist .. Jason Borofsky, CPA, MBA, Sax, LLP 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. 31, 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 www.marej.com The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal

781.740.2900 Special Advertising Rates to All Participating Firms! Contact Joe Christman or your Account Rep JChristman@marejournal.com JANUARY 17 ...........................................DEADLINE: DEC. 27 ROP (FRONT SECTION) ........................................ FINANCIAL DEL/MAR/VA.............................................................................. NEW JERSEY.................................................. SOUTHERN NJ PENNSYLVANIA.................................... SOUTHEASTERN PA SPOTLIGHT...................ECONOMIC DEVELOPMENT DECEMBER 27 ........................................DEADLINE: DEC. 18 ROP (FRONT SECTION) ........................................................... SHOPPING CENTERS......................................... ICSC RECAP ODM....................................................... INDUSTRY LEADERS SPOTLIGHT.................................... ANNUAL REVIEW

Prepping Real Estate Firms for an Economic Downturn E Jason Borofsky, CPA, MBA conomists, CEOs and business owners each have their own opinion on if or when the U.S. economy will fall into a recession. Some experts indicate that there is a good chance an economic downturn or recession will happen within the next two years, making it logical for real estate professionals to begin bolstering protections. Regardless of the timing of the recession in the future, adequately addressing a down market is essential to business survival. What steps can real estate firms take now that will help them get through a reces- sion and come out the other end even stronger? Loan Considerations Evaluate your portfolio to determine which properties will be most vulnerable during a recession. If passing your loan covenants are an issue today, would the company still pass if there was a decrease in occupancy or if you were forced to freeze or decrease rents to retain tenants? Decreased occupancy or rents would also result in a lower net operating income and a decreased valuation. This could be an issue if the loan on your property is ma- turing within the next several years and the company will need to refinance. What you can do now is run various sce- narios and evaluate if it makes financial sense to refinance today, as rates continue to be low, or wait for the maturity date of the loan. Most com- mercial loans have a prepay- ment penalty outlined in the agreement that would have to be taken into consideration. One potential result of per-

forming your projection on loan covenants or ability to ob- tain necessary financing dur- ing a recession could lead to a decision to sell the property. Better to sell the property now than during a recession when your valuation is likely to de- cline, and the company may be dealing with loan covenant and financing issues with the bank. Improve Quality of Assets Do you have significant de- ferred maintenance on your property? You should consider completing deferred mainte- nance through funds available from current cash flow. During the downturn, this could prove to be difficult due to decreased cash flow, issues with capital calls with existing owners and the potential dif- ficulty in obtaining financing to complete the maintenance. In addition, consider per- forming renovations or invest- ments in technology that will improve the quality of the property and even result in re- duced expenses and increased attractiveness to tenants. More and more properties are being built or retrofitted with smart technologies that will enable the building to operate with greater efficiency. An example of a smart technol- ogy is the ability to easily track and perform preventive maintenance on the property. As a result, this will reduce the likelihood of equipment

breaking down, ensure the equipment is running as ex- pected, and prolong the life of the equipment. Whether you are reducing your deferred maintenance projects, performing renova- tions, or making investments in smart technologies, this will only improve the quality of your property and the at- tractiveness to buyers or ten- ants regardless if you are in a recession or not. Another way to improve the quality of your asset(s) is to evaluate the likelihood that your tenants can withstand a downturn. Your net operating income and valuationmight be acceptable today, but what if your tenant is negatively af- fected by the downturn and va- cates their space? Performing financial stress tests on your property based on the likeli- hood that the tenant will stay in business and pay their rent is an important component of financial planning and will help you make informed deci- sions in the areas previously discussed. Planning now for the next recession will only help you stay ahead of the curve and continue to capitalize on op- portunities as they arise be- fore, during, and after the recession. Jason Borofsky, CPA, MBA is a partner at Sax LLP and a member of the firm’s Real Estate Practice. 

ECONOMIC DEVELOPMENT SPOTLIGHT MAREJ invites all to send in editorial pertaining to: County/Regional Demographics

Mayor's Pictures & Message Special Incentive Programs Opportunities for Business Relocation Commercial Property & Parks Available For Lease or For Sale

FIRST SPOTLIGHT IN 2020!

Contact Kim Brunet or your Account Rep for More Information! kbrunet@marejournal.com 781.740.2900 Deadline: December 27 Publication Date: January 17

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M id A tlantic R eal E state J ournal Jointly execute redevelopment with Dermody Properties Harvey Hanna announce plans for former GM plant redevelopment

impressed by its nearly limit- less potential,” said Preston. “Between its strategic location along the I-95 corridor, proxim- ity to a coveted deepwater port in the Port of Wilmington, and history as a nucleus for DE’s economy, it represents an ideal asset for today’s boom- ing e-commerce and logistics industries. We are excited to be working with Harvey Hanna to contribute meaningfully to this region’s vitality.” The two companies have worked together over the past year to refine the project’s re- development plans to convert

the former GM plant into a modern logistics campus that will attract world class com- panies, in turn creating qual- ity jobs in the local economy. The redevelopment pro- gram calls for the complete demolition of all dormant buildings on the former plant property. The campus will be constructed in phases, with additional green space, traffic and pedestrian im- provements, improved storm water management and new landscaping buffers added to the new class A business and distribution campus. 

ILMINGTON, DE — Harvey Hanna & Associates and

D e r m o d y P r o p e r - t i e s h a v e announc ed p l a n s t o j o i nt l y ex - e c u t e t h e large - scal e r e d e v e l o p - ment of the former General Motors (GM) plant in Wilmington. Dermody Props. has acquired 88 acres of the 142-acre prop- erty on Boxwood Rd. for the project, which will be named LogistiCenterSM at I-95 Wilm- ington. Harvey Hanna will retain ownership of the remain- ing 54 acres. The former home of a GM automotive plant, the 142-acre Boxwood Rd. property has sat dormant since General Motors’ Bankruptcy in 2009. The prop- erty is located along the I-95 corridor and is set in one of the country’s most dense popula- tion bases, making it an ideal setting for distribution, fulfill- ment and logistics users and businesses. Offering easy ac- cess to major markets including Philadelphia, NYC, Baltimore, Washington, DC and many of the major Canadian markets, the property is a springboard to multiple major U.S. highways, including I-95, I-295 and I-495. Dermody Properties will remain in close coordination with Harvey Hanna through the duration of the redevelop- ment process. “Harvey Hanna’s ultimate goal for the former GM plant property has always been about one thing – returning long-term, sustainable jobs to Wilmington and New Castle County,” said Thomas Hanna , president of Harvey Hanna & Associates. “By working with a respected, experienced and best-in-class national devel- oper like Dermody Props., we are ensuring that a truly first- class business and distribution campus will rise in its place. Most importantly, with this arrangement with Dermody Properties, we are dramatically accelerating the timeline at this site towards delivering jobs and creating a new economic en- gine for Delaware. New Castle County is open for business.” “After learning about Harvey Hanna’s plans for the former Boxwood plant property, Der- mody Props. was immediately Thomas Hanna

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4A — December 13 - 26, 2019 — Commercial Real Estate Law — M id A tlantic

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Commercial Real Estate Law By Scott C. Butler, Kaplin Stewart Protecting redevelopment opportunities in retail leases

ational retail ten- ants normally desire that the site plan of

well as restaurant pads, in areas that may not have been identified on the original site plan for the shopping center. Therefore, it is important for landlords to keep as much freedom as possible to recon- figure the shopping center. Control over the site plan is important to the tenant for three main reasons: vis- ibility, parking and access. The visibility of the premises from the adjacent roads and within the shopping center is a key factor for having a suc- cessful store. However, after evaluating the sight lines of the shopping center from the adjacent roads and factoring in any pylon signage being provided, the tenant might realize that there is only a limited area in front of the premises that has a material impact on such visibility. is the law. Oregon recently passed its own rent control law, and Massachusetts may not be far behind. Experts disagree on the effectiveness of rent control. Some believe it tends to accelerate gen- trification by incentivizing landlords to convert rental housing into higher-end con- dominiums. Others believe it may reduce the displacement of lower-income tenants and the elderly. New York state law makers recently approved a package of bills allowing communi- ties to establish rent-control policies when they face severe housing shortages. These initiatives expanded rent stabilization rules that were already in place in New York City and a few surrounding counties. A group of New York landlords have responded by challenging aspects of the new laws in court, particularly those provisions no longer allow units to become un- regulated when tenants leave.

Available parking spots in the parking field in front of the premises is clearly impor- tant to the tenant to attract customers and not dissuade them from going to a com- petitor’s store located nearby (or electing to purchase any needed items from a competi- tor on-line). The tenant also might be concerned over any overflow parking from other areas of the shopping center; however, this might be re- solved by adding a minimum parking ratio for the shopping center. Access roads are also very important for a tenant in order for customers to have easy access to the parking field im- mediately in front of the prem- ises, as well as to ensure that the tenant’s trucks will have access and turning ability in order to deliver inventory to Landlords allege such laws are unconstitutional takings of private property without compensation. Unfortunately, this argument has been previ- ously tried and failed in many jurisdictions. Large parts of California are currently facing intense gentrification pressures. Local activists argue that the dis- placement crisis has been fu- eled by greedy speculators and actions taken by banks, pri- vate equity, and Wall Street firms that encourage displace- ment. In San Francisco, the proposed Community Oppor- tunity to Purchase Act, will allow nonprofit housing orga- nizations to buy an apartment building before it goes on the open market, thereby protect- ing tenants from displacement and preserving their homes as permanently affordable. Cali- fornia lenders and investors are also being asked to em- brace an Anti-Displacement Code of Conduct. The Washington Supreme

the rear of the store. The ten- ant, however, might only be concerned about the main en- trance to the shopping center, and not expect their customers or deliveries to be using all of the ancillary entrances and access drives. As a result, instead of grant- ing a tenant complete control and approval rights over the entire site plan, a landlord and tenant should agree upon specific “no-build” areas in order to protect the foregoing key items. Identifying such specific areas in the parking fields and access drives that a landlord will not be able to modify should satisfy the tenant’s concerns, while also giving the landlord some flex- ibility in the future. Also, a landlord and tenant should agree on which portions of the shopping center should Court recently heard argu- ments about the constitution- ality of two Seattle housing laws that affect how landlords select tenants. In 2016, city council passed a “first-in- time” law requiring landlords to lease their rental units to the first person to submit an adequate application. Under the law, landlords have no flexibility to use their own judgment in selecting a ten- ant. A second law prohibits landlords from inquiring about criminal history, run- ning a criminal background check or relying on criminal history when considering a rental applicant. The two laws represent a trend in regulation aimed at limiting a property owners’ ability to exercise discretion in the rental process. It is doubtful that the court will rule that such laws constitute a “regu- latory” taking of property. Alleging a regulatory taking is often perceived to be less of a constitutional issue and

have height limitations, so that some areas can have the ability to be multi-story residential or office buildings. Even if a landlord intends to keep the shopping center as currently constructed, circumstances can change, vacancies can arise, and a future ability to create more value can happen. As a re- sult, negotiating “no build” areas, height restrictions and parking ratios are some of the most important parts of a lease negotiation with a retail tenant. Scott C. Butler is a prin- cipal of Kaplin Stewart and a member of the Real Estate Transactions and Corporate &Business Law Departments. He con- centrates his areas of ex- pertise in real estate and corporate transactions.  more like a tired landlord refrain about making less money than usual. While this region has large- ly been immune from heavy- handed property regulation, the current political climate may portend changes. Hop- ing for the best is not a strat- egy I would recommend that landlords think seriously about preventive measures rather than hoping for the best. Neil A. Stein is a prin- cipal of Kaplin Stewart and a member of the Land Use, Zoning & Develop- ment Department. He has extensive experience in zealously representing landowners, developers, institutions, and non-prof- it groups in all phases of real estate law, including complex transactions, en- tity structuring, financ- ing, land use approvals, land use litigation, emi- nent domain, and real estate tax appeals. 

t h e s h o p - ping center not change f rom what is initially attached as an exhibi t to the lease, and that the

Scott C. Butler

height of the other build- ings not exceed one story in height (and sometime not exceed the height of their premises); however, such a provision will severely limit the ability to reconfigure the shopping center to maintain, keep and create value in the event of future vacancies. In recent years, landlords have been able to save failing retail centers by adding multi-story residential and office uses, as

By Neil A. Stein, Kaplin Stewart Cities begin to impose stricter regulations on landlords; The potential impact on private property rights

SanFranciscoandNewYork City have recently sought to impose tighter regulatory

controls on multi-family l and l o r d s . These con- t r o l s w i l l likely cause l a n d l o r d s to incur un- foreseen ad-

Neil A. Stein

ditional costs that will impact the economic value of their investment. The question is whether courts will allow constitutionally protected property rights and invest- ment-backed expectations to be eroded by such regulation. Today, many landlords will not remember when Philadel- phia had its own form of rent control, principally because it was struck down by the Pennsylvania Supreme Court in 1955. In the last 65 years, there has been no meaning- ful desire to see its return. However, in New York and San Francisco, rent control

Real Estate Journal — Commercial Real Estate Law — December 13 - 26, 2019 — 5A

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Commercial Real Estate Law LAWYERS OF

Gregg I. Adelman Principal Phone: 610-941-2552 Fax: 610-684-2001 gadelman@kaplaw.com

Simi Kaplin Baer Principal Phone: 610-941-2657 Fax: 610-684-2036 skbaer@kaplaw.com

George Broseman Principal Phone: 610-941-2459 Fax: 610-684-2005 gbroseman@kaplaw.com

Areas Of Practice: Real Estate Transactional; Real Estate Financing; Planned Communities and Condominiums; Joint Venture Agreements; Commercial Leasing; Land Use, Zoning, and Development; Site Development and Brownfield Redevelopment (Act 2)

Areas Of Practice: Land Use, Zoning, and Development; Building Codes;

Areas Of Practice: Land Use, Zoning, and Development; Entitlements; Subdivision and Land Development Approvals; Administrative Proceedings and Litigation; Environmental Law; Environmental Mitigation and Permitting; Permitting; Outside Agency Permitting; Property Tax; Tax Assessments Appeals and Exemptions

Environmental Migration and Permitting; Philadelphia Zoning; Subdivision and Land Development Approvals; Tax Assessments Appeals and Exemptions; Administrative Proceedings and Litigation; Permitting; Regulatory Compliance; Site Development and Brownfield Redevelopment (Act 2); Real Estate Transactional; Deeds; Easements.

Scott Butler Principal Phone: 610-941-2560 Fax: 610-684-2037 sbutler@kaplaw.com

Matthew Cosenza Principal Phone: 610-941-2545 Fax: 610-684-2008 mcosenza@kaplaw.com

Amee Farrell Principal Phone: 610-941-2547 Fax: 610-684-2010 afarrell@kaplaw.com

Areas Of Practice: Real Estate Transactional; Commercial Leasing; Acquisitions and Sales; Real Estate Financing; Planned Communities and Condominiums; Business and Corporate Law; Joint Venture Agreements; Private Placement Memorandums; Declarations and Restrictive Covenants; Easements; Mergers and Acquisitions.

Areas Of Practice: Real Estate Transactional; Commercial Leasing; Joint Venture Agreements; Business and Corporate Law; Acquisitions and Sales; Real Estate Financing; Easements; Declarations and Restrictive Covenants; Site Development Agreements; Brokerage and Management Agreements; Planned Communities and Condominiums; Loan Acquisitions and Workouts; Business Planning; Mergers and Acquisitions.

Areas Of Practice: Land Use, Zoning, and Development; Building Codes; Outside Agency Permitting; Philadelphia Zoning; Subdivision and Land Development Approvals; Tax Assessments Appeals and Exemptions; Environmental Migration and Permitting; Regulatory Compliance; Site Development and Brownfield Redevelopment (Act 2); Permitting; Real Estate Transactional; Easements

Marc Kaplin Co-Founder & Principal Phone: 610-941-2666 Fax: 610-684-2000 mkaplin@kaplaw.com

Craig Robert Lewis Principal Phone: 610-941-2584 Fax: 610-684-2021 rlewis@kaplaw.com

Maury Reiter Managing Principal Phone: 610-941-2476 Fax: 610-684-2025 mreiter@kaplaw.com

Areas Of Practice: Land Use, Zoning, and Development; Building Codes; Environmental Migration and Permitting; Philadelphia Zoning; Subdivision and Land Development Approvals; Tax Assessments Appeals and Exemptions; Administrative Proceedings and Litigation; Permitting; Regulatory Compliance; Site Development and Brownfield Redevelopment (Act 2); Real Estate Transactional; Acquisitions and Sales; Real Estate Financing; Easements.

Areas Of Practice: Real Estate Transactional; Business and Corporate Law; Mergers and Acquisitions; Contract Review; Joint Venture Agreements; Real Estate Financing; Tax Law; Estate Planning and Administration

Jeffrey Silberman Principal Phone: 610-941-2518 Fax: 610-684-2028 silberman@kaplaw.com

Marc Snyder Principal Phone: 610-941-2562 Fax: 610-684-2119 msnyder@kaplaw.com

Neil Stein Principal Phone: 610-941-2469 Fax: 610-684-2029 nstein@kaplaw.com

Areas Of Practice: Real Estate Transactional; Business and Corporate Law; Real Estate Financing; Commercial Leasing; Mergers and Acquisitions; Joint Venture Agreements; Planned Communities and Condominiums; Easements; Site Development Agreements.

Areas Of Practice: Land Use, Zoning, and Development; Real Estate Transactional; Business and Finance Transactions; Commercial Tax Litigation; Appeals and School District Appeal Defense; Eminent Domain; Business Planning.

Areas Of Practice: Real Estate Transactional; Commercial Leasing; Contract Review; Deeds; Easements; Joint Venture Agreements; Acquisitions and Sales; Real Estate Financing; Planned Communities and Condominiums; Business and Corporate Law; Mergers and Acquisitions; Private Placements Memorandums.

William Stewart Of Counsel Phone: 610-941-2555 Fax: 610-684-2030 wstewart@kaplaw.com

Adam Taylor Principal Phone: 610-941-2526 Fax: 610-684-2031 ataylor@kaplaw.com

Areas Of Practice: Real Estate Transactional; Commercial Leasing; Contract Review; Deeds; Easements; Joint Venture Agreements; Acquisitions and Sales; Real Estate Financing; Tax Assessments Appeals and Exemptions; Business and Corporate Law; Healthcare Law; Mergers and Acquisitions

6A — December 13 - 26, 2019 — M id A tlantic

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P eople on the M ove

DITIO assoc. receives executive nomination in 48-0 vote Smeltzer appointed to PA Board of Certified Appraisers

LVEDChosts discussionamong Lehigh Valley’s CRE leaders

assessors. In addition to pass- ing upon the qualifications and fitness of applicants for certifi- cation, the Board's functions include establishing standards of professional appraisal prac- tice and conducting hearings upon complaint.” “We are grateful to Governor Tom Wolf for appointing Mark to this position,” said DITIO president, Ronan Jones. “It is a testament to Mark's lifelong efforts, character and capa- bilities that the Pennsylvania Senate would propel him to this position with such an over- whelming vote!” Throughout hi s di st in- guished 41-year career, Smelt- zer has served in a variety of successful real estate valuation and appraising positions. Since 2011, he has excelled in the position of Director of Opera- tions for DITIO, incorporating quality control initiatives and pursuing diversified prod- ucts of the highest standard. Smeltzer is also a nationally

recognized educator who has taught numerous courses and seminars on real estate and appraisal topics. He earned an MBA from the University of Pittsburgh Katz Graduate School of Business. A longtime member of the Pittsburgh Metropolitan Chapter of the Appraisal Institute , Smeltzer has held several positions of responsibil- ity and he served twice as chap- ter president. In 2014, he was the recipient of the institute’s Barone-Berman Past Presi- dent’s Award and recognized as a Volunteer of Distinction. The appointment of Smelt- zer to the Pennsylvania State Board of Certified Real Estate Appraisers exemplifies DITIO’s leading vision to provide excel- lence in real estate valuation related services. DITIO has a long tradition of offering the best possible solutions for a healthy and successful real estate market throughout the Southwestern PA region.  In other Barley Snyder news, attorney Abby Medin Tucker has been named to the board of directors at the Lancaster Housing Opportunity Part- nership (LHOP) . LHOP works to cultivate partnerships and resources to increase the availability of quality, fair and affordable housing in central Pennsylva- nia. It works with partners to help people of the community buy, rent or build a home. In addition to her appoint- ment, she has been named secretary of the board. “I’ve worked with LHOP in the past and it’s an organiza- tion that is always looking for ways to improve the quality of life in Lancaster through its housing initiatives,” Tucker said. “Affordable housing is a vital component of any suc- cessful and vibrant commu- nity, and the work that LHOP does is essential in Lancaster County and beyond. I’m happy to be part of the group that will help guide the organization’s future.” Tucker is part of the firm’s Real Estate and Business practice groups. She also is on the board of SoWe, a com- munity organization supported by LHOP which works to im- prove the Southwest Lancaster neighborhood. 

ITTSBURGH, PA — DITIO , a premier provider of real estate

v a l u a t i o n services, is thrilled to an- nounce Mark Sme l t z e r , MAI, SRA, AI-RRS , will lend his ex- pertise to the Pennsylva-

LVEDC hosted a gathering of the region’s commercial and industrial real estate leaders.

Mark Smeltzer

The regional office mar- ket was also discussed. Jill Wheeler, Vice president of sales & marketing with City Center Allentown, noted that younger audiences are increas- ingly seeking smaller spaces in apartments. She stressed that the region should continue to tell and diversity Lehigh Val- ley’s story and draw attention to the urban cores available in the region. One of the ways to do so is through Made Possible in Le- high Valley, a new marketing initiative launched by LVEDC to share the success stories of the people and companies in our region and market Lehigh Valley as an attractive location for businesses and talent Attendees were also provided the first copies of the new Le- high Valley Commercial and Industrial Real Estate Report, which was released Nov. 14. Published by LVEDC, the re- port provides an overview of the region’s industrial, office, and flex markets, as well as major transactions and other economic data. The Lehigh Valley industrial market has grown to 124 mil- lion s/f as of the third quarter of 2019, with 2 million s/f in deliveries in 2019 so far and 6.4 million s/f more under con- struction. The Lehigh Valley office market currently includes 27.37 million s/f, with 629,000 s/f more under construction. Cunningham also highlight- ed recent major industrial and office deliveries in the Lehigh Valley. On the office side, that includes the the 295,000 s/f Five City Center building in Allentown, where ADP recently held a ribbon-cutting for its campus for 1,000 employees. Industrial deliveries include the Park 100 Bldg. A (730,000 s/f) in Upper Macungie Twp., 2900 Brodhead Rd. (515,000 SF) in Bethlehem Twp., Rock- efeller Lehigh Valley Building B (290,000 s/f) near the Lehigh Valley International Airport, and Carson 33 Bldg. A (140,000 s/f) in Palmer Twp. 

UPPER SAUCON TWP., PA — The Lehigh Valley Economic Development Corporation (LVEDC) hosted a gathering of the region’s real estate leaders on Nov. 14 for a discussion about economic de- velopment and insights about the regional commercial and industrial real estate markets. “We wanted to sit down with some of you who are out on the front lines to understand what you see going on out there in the Lehigh Valley market,” said LVEDC president & CEO Don Cunningham . “We want to understand the challenges you’ve faced, the strengths you’ve seen in the market, and hear your thoughts on what we as an economic develop- ment organization ought to be focused on.” More than two dozen people attended the gathering at Melt in the Promenade Shops in Upper Saucon Twp., where Cunningham led a discussion among the real estate pro- fessionals, and provided an overview of the Lehigh Valley economy and trends in regional development. Cunningham said 16 of 38 currently active LVEDC proj- ects fall within the manufac- turing industry. This reflects a high demand for small-foot- print manufacturing and flex space in the 40,000 to 100,000 s/f range, for which there is currently a shortage in Lehigh Valley. “The number of people we have looking for this size range greatly exceeds the number of end users we have looking for 1 million s/f,” Cunningham said. “But right now, we don’t have the product to do that. What- ever can be done to create more speculative industrial flex, it can be met.” Brian Knowles , principal with Lee & Associates , said he has been using surveys to track industrial projects for 10 years, and that for the first time in that time, Lehigh Valley has more active projects than the Central Pennsylvania region.

nia State Board of Certified Real Estate Appraisers . The Pennsylvania State Senate confirmed Smeltzer’s executive nomination in an impressive 48-0 vote on October 23. In this role, Smeltzer will lend his long career of exper- tise to assist the certification of real estate appraisers and as- sessors in the Commonwealth of Pennsylvania. As stated by the PA Department of State, “…the Board examines for, denies, approves, issues, re- vokes, suspends and renews certificates of appraisers and

Barley Snyder elects Lobach to fourth term as managing partner & Tucker named to LHOP BOD

fices has helped Barley Snyder increase its level of service to both existing and new clients, Lobach said. “ I t w a s

LANCASTER/YORK, PA — Barley Snyder announced the firm’s partnership has reelected

Jeff Lobach as its manag- ing partner and chief ex- ecutive officer for a two-year term starting in 2020. L o b a c h ’ s fourth term as managing

h u m b l i n g w h e n o u r partnership e l ec t ed me as the firm’s m a n a g i n g partner six years ago,” he said. “To earn

Jeff Lobach

AbbyMedin Tucker

their trust for a fourth term suggests their approval of the course we have charted these last few years. The partners and our entire teamhave stead- fastly supported our regional model of practice to ensure sustainability and success in our markets – and our future markets. I am grateful our partnership continues to have the confidence in me to lead the firm into the future.” Lobach is a member of the firm’s Business, Finance & Creditors’ Rights, Real Estate and Education practice groups, as well as the Construction, Health Law, Banking and Hos- pitality industry Groups. He has been named to “The Best Lawyers in America” list each year between 2013 and 2020 for his work in the Commercial Litigation and Corporate Law practice areas.

partner starts Jan. 1. The po- sition entails the oversight of operations and the long-term planning for the firm. In his six years in this role, he has witnessed the exciting growth of the firm from about 55 at- torneys in 2014 to more than 100 attorneys currently. The firm has opened five of- fices during Lobach’s managing partner tenure, in Harrisburg, Gettysburg and Schuylkill Haven in Pennsylvania, and in Hunt Valley and Columbia in Maryland. It has tripled the size of its existing Hanover of- fice and has moved its Malvern office to a technologically ad- vanced location that will allow for current and future growth. The firmhas heavily invested in its technological infrastructure and has implemented addition- al employee reward programs. Adding new attorneys and of-

P ennsylvania

S hopping C enters

Real Estate Journal — Pennsylvania — 7A

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M id A tlantic

1760 Dekalb Pike (Rte. 202), Shops at Blue Bell is in an established retail location KPR purchases retail center in an established retail location in suburban Philadelphia Galbally, Munley and Behr of JLL arrange $29.35M sale of Giant-anchored retail center B LUE BELL, PA — JLL has closed the $29.35 million sale

in Montgom- ery County and 15 miles from down- town Phila- delphia. The p r o p e r t y has multiple points of ac- cess from lo- cal thorough- fares Rte. 202 and Town - s h i p L i n e R d . M o r e than 70,000 r e s i d e n t s earning an average an- nual house- hold income of $111,525 live within a three-mile radius of the p r o p e r t y . S h o p s a t Blue Bell is

HI-LIGHTS DECEMBER 13 - 26, 2019 JLL marketed the property on behalf of the seller, a real estate investment manager managing the sale on behalf of one of its separate account clients. KPR , formerly known as Katz Properties, purchased the asset. Situated on 11.54 acres at of the Shops at Blue Bell, 103,580 s/f, grocery-anchored neighborhood shopping center in the suburban Philadelphia community of Blue Bell.

James Galbally

Shops at Blue Bell

Chris Munley

anchored by Giant, the top grocer in suburban Philadel- phia andMontgomery County. Giant has occupied the center for the past 24 years. Addi- tionally, the 98% leased center is home to a mix of retailers, including Santander, True Value, IHOP, Supercuts and GNC.

The JLL Retail Capital Markets team representing the seller was led by senior managing director James Galbally , managing director Chris Munley and senior vice president Colin Behr . According to a recent JLL Retail Outlook report, second- quarter 2019 net absorption

in U.S. shopping centers (i.e., community, neighborhood and strip centers) remained positive at 1.9 million s/f, with the majority coming from neighborhood center demand. Additionally, neighborhood centers – like Shops at Blue Bell – are sought after among small retail locales. 

CENTURY REALTY JOINS CORFAC AS PGH AFFILIATE

Colin Behr

Johnson of Rittenhouse Capital Advisors delivers Hunt Real Estate Capital Delaware County portfolio

NAI SUMMIT: 2019 HIGHLIGHTS

$3.9 million to finance the ac- quisition of Springfield Place Apartments. Located at 420 East Woodland Ave. in Spring- field, the property consists of nine two- and three-story gar- den apartment buildings con- taining a total of 39 units. The property was built in 1966, and the unit mix consists of all two-bedroom, one-bathroom apartments. The loan has a 12-year term with 24 months of interest only payments followed by a 30-year amortization sched- ule. Property amenities in- clude a laundry facility and storage in each building, as well as surface parking for 51 vehicles. Media Towers Apart- ments. Media Towers Apart- ments is located at 295 East Jefferson St. in Media. Hunt Real Estate Capital provided a Fannie Mae Small Loan in the amount of $4.7 million to acquire the property. The loan

has a 12-year term with re- payment based on 24 months of interest only followed by a 30-year amortization schedule Media Towers Apartments is a 1973-built six-story, mid- rise apartment building with 47 units. The unit mix consists of six studio apartments; 10 one-bedroom, one-bathroom units; 21 two-bedroom, one- bathroom units; and 10 two- bedroom, two-bathroom apart- ments. Amenities include a front entry lobby and elevator, as well as surface parking for 61 vehicles. Rolling Green Apart- ments. Hunt Real Estate Capital provided a Fannie Mae DUS multifamily loan in the amount $11.1 million to secure the acquisition of Rolling Green Apartments. The property is located at 301 North State Rd. in Springfield. Rolling Green Apartments is a 103-unit, garden-style apartment community that

is comprised of 25 two- and three-story buildings. The property was developed in 1965, features 180 parking spaces, and is situated on an 8.06-acre parcel of land. The loan term is 12 years with three years of interest only, followed by a 30-year amorti- zation schedule. “Both Springfield and Me- dia are located within the Philadelphia MSA in strong, infill locations,” said Harris Heller , managing director at Hunt Real Estate Capital. “Springfield Place and Roll- ing Green Apartments are located in a desirable inner ring suburb of Philadelphia with good school districts, and are a short distance from a large number of supporting services, such as mass transit and retail. Media Towers is located in Downtown Media, which is walking distance to all the amenities the dynamic borough has to offer.” 

DELAWARE COUNTY, PA — Hunt Real Estate Capital has provided $19.7 m i l l i o n i n Fannie Mae Gr e e n Re - wards loans to finance the acquisition of a three-prop- erty multi- family portfo- lio located in Delaware County that totals 189 units. The deal was brought to Hunt Real Estate Capital by George Johnson at Ritten- house Capital Advisors . The sponsors of the acquisi- tion are James Robertson, Matthew Robertson , and Robert Roskamp . The properties included in the portfolio consist of: Springfield Place Apart- ments. Hunt Real Estate Cap- ital provided a Fannie Mae Small Loan in the amount of George Johnson

ATKINS BOLSTERS ITS PGH PORTFOLIO WITH MOB ACQUISITION 12A

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16C ANNUAL REVIEW ECONOMIC DEVELOPMENT contact: Joe Christman jchristman@marejournal.com

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8A — December 13 - 26, 2019 — Pennsylvania — M id A tlantic

Real Estate Journal

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Real Estate Journal — Pennsylvania — December 13 - 26, 2019 — 9A

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P ennsylvania

Penwood purchases facility on I-95 Corridor Scott of Colliers facilitates 100,800 s/f ind. sale in Bristol

Recently Closed Loans

RISTOL, PA — Col- liers announced the sale of 220 Ritten-

house Circle in Br i sto l . The proper- ty, a 100,800 s/f and 6.79 acre indus- trial facility t raded f o r $6.8 million. T h e n e w

$6,250,000 $4,500,000 $9,580,000 Multifamily Permanent Financing Industrial Bridge Financing Multifamily Bridge Financing Bloomsburg, PA Norristown, PA Bala Cynwyd, PA 4.25%, 10/30, 71% LTV, Non-Recourse 5.55%, 3-Years Interest Only, 70% LTV 4.5%, 3-Years Interest Only, 75% LTV

Real Property Capital is a Philadelphia based full service commercial mortgage banking firm with a regional focus and national capabilities. Our business model emphasizes client satisfaction through a high-touch, analytical approach that distinguishes us from the competition. Learn more about our distinct approach and proven track record of success at www.realpropertycapital.com. FOR MORE INFORMATION: R. Brenner Green, President 303 Harry Street • Conshohocken, PA 19428 • 610-456-9644 • bgreen@realpropertycapital.com

Jim Scott

owner is Penwood Real Estate Investment Man- agement . 220 Rittenhouse sits along the I-95 corridor, less than three miles from New Jersey and 17 miles from downtown Philadelphia. Penwood plans to implement a capital im- provement program, which PITTSBURGH, PA — CORFAC International , the worldwide network of indepen- dent commercial real estate brokerage firms, announced Century Realty LLC/COR- FAC International , with offices in Pittsburgh, PA, and Wheeling, WV, is the newest US affiliate to join the growing global network. “Century Realty is excited to

220 Rittenhouse Circle

includes adding additional loading to improve the prop- erty’s attractiveness for lead- ing logistics companies. Jim Scott of Colliers facili- tated the transaction.  begin its affiliation with COR- FAC International. Our team is experienced in all property types across the Pittsburgh re- gion to handle inbound transac- tions fromCORFAC colleagues, and the network relationships help us provide our clients with in-depth market knowledge nationally and internationally,” said John Aderholt , owner/ broker of Century Realty. 

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Century Realty LLC joins CORFAC International as Pittsburgh affiliate

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