4-29-16

R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news

Buyer is joint venture between Vision Real Estate Partners & Rubenstein Partners CBRE announces $136 million sale of 820,000 s/f Warren Corporate Center

ISSUE HIGHLIGHTS Volume 28 Issue 8 April 29 - May 12, 2016

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the five buildings providing the opportunity to shift from a single tenant headquarters environment towards a multi- tenant office park. Warren Corporate Center benefits from an expansive on-site amenity base including three full service cafeterias, three fitness centers, day care cen- ter, and 4/1,000 s/f parking (90% provided in adjacent structured parking) within a natural campus setting. Located directly off I-78 (Exit 36) with proximity to I-287, Routes 202/206, and 22, the property has a regional loca- tion within a strong Northern New Jersey submarket that has recently seen leasing success. Dunne said: “The acquisi- tion of Warren Corporate Center provides Vision and Rubenstein with a premier of- fice asset offering the opportu- nity to create a multi-tenant environment and potential for further modernization to meet the demands of today’s occupiers. Many businesses are seeking modern genera- tion work environments that will attract and retain top talent.” n

ARREN, NJ — CBRE Gr o up , Inc . announced

Section C Spring Preview

that Jeffrey Dunne , Kevin Welsh , and Brian Schulz of CBRE Institutional Prop- erties in collaboration with Jeremy Neuer of CBRE’s East Brunswick office repre- sented Northwestern Mu- tual Real Estate in the $136 million sale of Warren Corpo- rate Center in Warren, NJ. The team was also respon- sible for procuring the buyer, a joint venture between Vi- sion Real Estate Partners and Rubenstein Partners . Jim Gunning and Donna Falzarano of CBRE’s Debt & Structured Finance Group also arranged a $123 million term loan, a portion of which is available for future capital, tenant improvements and leasing commissions led by Bank of America as adminis- trative agent. Warren Corporate Center is considered a best-in-class quality office development containing ±820,000 s/f across five, four-story buildings situ- ated on a 176-acre site off of a full interchange on I-78. The property was originally

Shopping Centers Featuring ICSC Las Vegas RECon

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For speaking and sponsorship information, please contact: Linda at 781-871-3456 or lchristman@marejournal.com UPCOMING CONFERENCES May 20, 2016 Delaware Forecast Summit June 30, 2016 NJ Mid-Year Commercial Real Estate Forecast Summit 9-21B ODM Featuring Engineering & the GP-FM Show

Warren Corporate Center

developed in 1996 as the headquarters of Lucent Tech- nologies and in 2004 Citibank fully leased the property and substantially improved the in- frastructure with fully redun-

dant power systems, supple- mental cooling, and enhanced the amenities. The property is currently 81% leased to Citibank which terminated its lease on one of

Mission Capital Advisors arranges $24.6 million for newly renovated women’s homeless shelter

from CGA Capital on behalf of Friedman Capital and an insurance company partner for the acquisition of 810 5th St. NW, a newly renovated property in the East End sub- market of Washington, DC. The Mission Capital team of Jordan Ray , Steven Buch- wald and Eugene Shevaldin represented the sponsors in arranging acquisition financ- ing for the 32,246 s/f, triple- net leased property, which is leased by the District of Columbia’s Department of Human Services. The building includes housing, administra- tive offices and professional development facilities. The property will provide tempo- rary assistance and support to homeless women while helping them maximize their potential for economic security

WASHINGTON, DC — Mission Capital Advisors Debt & Equity Finance Group has arranged $24.6 million of first-mortgage bond financing

Directory

Upcoming Spotlights NJAA CONFERENCE & EXPO PA’S PROJECTS/BUILDING SERVICES Shopping Centers Featuring RECon...................5-20A Owners, Developers & Managers............... Section B Spring Preview........................................... Section C

810 5th St. NW rendering

and self-sufficiency by offering on-site assessment and case management. “We knew this was a trans- action that some capital pro- viders might shy away from based on its specialty use,”

said Ray, a principal of the firm. “Ultimately, CGA Capi- tal was able to get comfort- able with the lease signed by the District and provide our clients with a 20-year high- leverage credit tenant loan.” n

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SAVE THE DATE 7:15 am Registration 7:30 am Breakfast 7:55 am - 12:00 pm Program

7:55 AMWelcome & Introduction

8:00 AM Retail Update: Opportunities and Trends – State of the Market • What type of Leasing Activity is occurring • Recap on the market from the past 12 months – Large Deals, New tenants & Trends • Mixed-use projects: Is it still the future or a thing of the past • How are retailers doing in today’s economy: who is still expanding in Delaware and why • What’s in store for development in 2016/2017 • Future Trends and Leasing predictions and what’s on tap for future Development 8:55 AM Opportunities in the Industrial Real Estate Market & Outlook for 2016/2017 • Industrial Market Update – State of the Industry and recap from the past 12 months • What types of industrial projects are in the pipeline • How much space will we need to add in the next 5 years: how much land will it take

• Urban vs. rural: where is the industrial development going • Future Forecast & Trends for Industrial Real Estate in Delaware

9:50 AM Break

10:00 AM Evaluation of the Office Market & What Tenants require today • Vacancy Rates: Delaware office market update - State of the Industry • Leasing trends: what projects are leasing up and why • What are the factors driving demand in the Office Market • How has the needs of tenants affected what brokers need to know • What are the requirements of the tenants and what do terms look like today • Predictions on where the office market will be in the next two years

11:00 AM Delaware Apartment Market/Multifamily Overview: • Apartment and Multifamily Market State of the Industry

• With vacancies at record lows how does Delaware stack up compared to the rest of the U.S. • What are the outside influences that are creating momentum in the Apartment Market • Investment Sales Update - How are apartment brokers getting deals done today • The changing fundamentals of Apartments and Multi Family • New Development vs. Existing: Where are the opportunities and why

12:00 p.m. Networking

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1031 Crowdfunding......................................................... 15C Advantage Engineers...................................................... 10B AGM Property Management Corp.................................. 14B Alston Construction........................................................... 2B American Anchor............................................................. 11B American Architectural Window & Door......................... 1B Apex Realty Advisory........................................................ 5C ARROW Steel. ................................................................. 26B AW Meyer........................................................................ 27A Azarian Realty Co.. ......................................................... 15A Barley Snyder.................................................................... 3C BEHR Building Services................................................ IC-B Bennett Williams Commercial........................................ 14A Berkadia......................................................................... BC-A Bohler Engineering......................................................... 16A Capitol Aerials................................................................... 2B Capstan Tax Strategies..................................................... 9C CBRE................................................................................ 26A Chiesa Shahinian & Giantomasi.................................... 24A Circuit Breaker Sales NE. .............................................. 17B Complete Property Restoration...................................... 16C Crystal Window & Door Systems..................................... 8B Earth Engineering, Inc. .................................................. 16B EB Cohen........................................................................... 6B Elliott-Lewis. ..................................................................... 7B Environmental Systems.................................................. 27A Exchange Solutions......................................................... 17C Fowler Route Co................................................................. 32 Green Partners LLC........................................................ 24B Hillcrest Paving & Excavating....................................... 27A Hillmann Consulting....................................................... 12C Hollenbach Construction................................................. 21B Hutchinson Mechanical Services.................................... 25B Integrated Business Systems. .......................................... 5B Investors Real Estate Agency......................................... 27A IREM................................................................................ 21B Jersey Infrared Consultants........................................... 19B Kaplin|Stewart............................................................... 13C Kay Commercial Realty.................................................. 27A Landmark Science & Engineering.................................. 20B Larken Associates........................................................... IC-C M. Miller & Son................................................................. 3B Marcum............................................................................ 27A Marcus & Millichap.............................................. 27A, BC-C Meridian Capital Group...............................................IBC-C Monmouth University..................................................... 10C NAI James E. Hanson..................................................... 11C NAI Mertz........................................................................ 14C NAI Summit...............................................................27A, 4C National Realty & Development Corp.............................. 6A Nave Newell....................................................................... 7A NJAA............................................................................... IC-A NorthMarq Capital............................................................ 1C P. Cooper Roofing. ......................................................... BC-B Pfister Roofing. ................................................................ 20A Poskanzer Skott Architects............................................... 4B Premier Compaction Systems......................................... 27B RD Management......................................................... 12-13A Real Property Capital........................................................ 2C Red Marketing Communications...................................... 6A Redwood Realty Advisors.................................................. 7C Rittenhouse Capital Advisors......................................... 10A ROCK Commercial Real Estate...................................... 18A Silbert Realty & Mgmt. Co.............................................. 11A Specialty Building Systems ........................................IBC-B Stark & Stark.................................................................... 9A Stout & Caldwell............................................................. 15B Subway............................................................................... 8A TDK Commercial Advisors. .............................................. 4A The Blau & Berg Co.. ........................................................ 6C Total Cleaning Associates LTD........................................ 2B WBG Commercial Lending............................................. 27A Weiss Realty.................................................................... 17A Williams & Williams Auctions.......................................... 3A WithumSmith + Brown................................................... 19C MAREJ 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 ................................................. Alissa Aronson Associate Publisher ...................................................Eric Ballenger 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 8 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 The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal

Ronald Shapiro

Ask the Professor

R egardless of whether you work in or with residential or com- mercial real estate, under- standing legal concepts and terminology is critical. Transactions involving land- lords and tenants, borrowers and lenders and owners and third party service provid- ers (brokers, engineers, ap- praisers, lawyers, etc) are all detailed and structured in one or more legal docu- ments which contain the role and responsibilities of the parties. This question pertains to a legal term used in commer- cial real estate finance and pertains to the repayment of the debt. QUESTION: Individual borrowers who exhibit excellent credit, out- standing financials, and a solid record of paying back their loans on time may be

able to negotiate a non- re- course loan. What does the term “non-recourse” mean? A. The property will not have any risk of loss of cash flow. B. The borrower is contrac- tually obligated to repay the debt no matter what happens to the market value of the property. C. The borrower has no re- sponsibility to repay the debt. D. The borrower can trans- fer the loan obligation upon the sale of the collateral Twp. Ida McMurray repre- sented the property owner, Jack Makdad, and The Bill Gladstone Group represented Derry Tire & Auto. Meridian Recycling Limited purchased three warehouse buildings totaling 15,300 s/f at 3243 Pennwood Rd. in the city of Harrisburg. The Bill Gladstone Group represented Meridian Recycling Limited. Jack Shepley, SIOR of Lee & Associates represented the seller, George Irwin. Rutter’s Farm Stores has purchased 18.5 +/- acres of land located in Port Royal, Juniata County. The site

property.

ANSWER: C. The borrower has no re- sponsibility to repay the debt. Ronald M. Shapiro is Assis- tant Professor of Professional Practice in the Finance and Economics Department at Rutgers Business School of Newark and New Brunswick where he teaches real estate finance. Prior toRutgersBusi- ness School, Ron was SVP with Union Center National Bank. n A Child’s Eye purchased a 3,058 +/- s/f office building at 4705 E. Trindle Rd., Hampden Township. The Bill Gladstone Group represented the sell- ers, Ryan and Valerie Priest. Sherry Portanova of ReMax First Advantage represented A Child’s Eye. Alexander Building Con- struction, LLC has leased 7,500 +/- s/f of flex space at 3525 N. 6th St., Susquehanna Town- ship. The Bill Gladstone Group handled the transaction. n In Lehigh Valley and in collaboration with the firm’s Bethlehem office headed by Michael Bartolacci , the team secured 9,070 s/f at 87 South Commerce Way in Bethlehem, PA. This space formerly occupied by St. Luke’s Health Network will now be occupied by Universal Clinical Laboratories, LLC a rare disease and specialized blood testing center. n

NAI CIR announces recent PA transactions PENNSYLVANIA — Un- spa, LLC, a spa business, has relocated and leased 1,982 s/f of office space at 1654 E. Chocolate Ave., Derry Town- ship. Ida McMurray, SIOR, CCIM of NAI CIR represented Unspa, LLC. will be a future Rutter’s Convenience Store. The Bill Gladstone Group handled the transaction.

URS Energy & Construc- tion Inc. has renewed its lease of 2,365 s/f office space at 600 Bent Creek Blvd., Spring Creek. Joe Bedard of NAI CIR represented property owner RSM Associate’s. Derry Auto & Tire has re- located and leased 9,155 s/f of warehouse space at 4551 Chambers Hill Rd., Swatara

Garibaldi Group Brokerage Team secures leases for 28,667 s/f CHATHAM, NJ — The Garibaldi Group brokerage team of Peter Blanchard and Lee Barnes leased 28,667 s/f of office space in March, in three different transactions that spanned fromMorristown, NJ to Beth- lehem, PA. The tenant, a healthcare provider specializing in in- tegrated medicine, is set to open their doors at the new location by September of this year. month after signing the lease and is currently fully occupy- ing their offices.

In Parsippany, the team as- sisted in leasing 9,816 s/f at 299 Cherry Hill Rd. to the law firm Kinney, Lisovicz, Reilly & Wolff PC. Thanks to an efficient landlord in Lincoln Property Group, LLC and property management team, the tenant was able to move into the space in less than one

In Morristown, the team brokered a lease of 9,781 s/f in Harding Plaza at 1200 Mt Kemble Ave. to The Gedroic Center for Integrative Medi- cine through the landlord Lincoln Equities Group .

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David Blitt and Peter Anderson represent tenant at 55,296 s/f industrial property Bussel Realty Corp. leases 27,648 s/f at 3390 Rand Road in South Plainfield, New Jersey S were responsible for the transaction.

OUTH PLAINFIELD, NJ — Bussel Realty Corp. (BRC) , a leading corporate and industrial real estate services firm in New Jersey, announced Strategic Delivery Solutions has leased 27,648 s/f at 3390 Rand Rd. in South Plainfield, a 55,296 s/f industrial property. BRC senior vice presi- dent David Blitt and vice president Peter Anderson represented the tenant and NAI Global ranked fourth among top 25 in Lipsey Survey NEW YORK, NY — NAI Global , the world’s largest, most powerful network of own- Estate Brands. The survey was conducted among 100,000 commercial real estate profes- sionals using a combination of ballot voting, phone interviews and focus groups to evaluate innovation, responsiveness and quality of service. NAI Global is the only commercial real estate network of inde- pendently owned and operated firms represented among the top five. “We are thrilled that our suc- cess and growth is recognized by our peers and reflected in this years Lipsey ranking,” said J ay Olshonsky, FRICS, SIOR , president, NAI Global. “The power of the NAI Global network has never been stron- ger, with 170+ Member firms who work together to drive business and create opportuni- ties for their clients worldwide. This represents the exception- al service that only a network of owner-operated brokerages can deliver.” The survey is conducted by The Lipsey Company, a lead- ing training and consulting firm specializing in the com- mercial real estate industry. The results of Lipsey’s 2016 Commercial Real Estate Brand Survey can be found at https:// lipseyco.com/brand-survey. NAI Global is the single largest, most powerful global network of owner-operated commercial real estate broker- age firms. n Jay Olshonsky er-operated commercial real estate firms, earned t he f our t h spot in the 2016 Lipsey S u r v e y o f Top 25 Com- mercial Real

“Strategic Delivery Solu- tions will utilize the property as an additional facility to provide delivery and logistics services to the healthcare market,” said Blitt. Totaling 55,296 s/f on 6 acres, 3390 Rand Rd. is in close proximity to I-287 and Exit 10 of the New Jersey Turnpike. The property of- fers 24-foot ceiling heights, four tailboards and three drive-ins for loading, 35- foot by 40-foot column spac- ing and 25 surface parking spaces. n

3390 Rand Rd.

real estate auction

Historic Commercial Across from Belward Research Center Site Open Public Inspections 11am-2pm Fri May 13 & 20

GAITHERSBURG, MD • 15021 Dufief Mill Road Historic dairy barn. Former vet specialty hospital has three buildings on approx 1.81ac lot with 75+/- parking spaces. Largest building is 13,000+/- sf of medical build-out. Loft barn offers an additional 7,000+/- sf of unfinished space. Located approximately 1.8 miles from the Montgomery County Campus of Johns Hopkins University and across highway from Belward Research Center. Nominal Opening Bid: $500,000 Auction Coming in May

800.982.0425 • williams auction .com/Gaithersburg

MD DANIEL NELSON RE LIC 639143. WILLIAMS & WILLIAMS RE LIC 639143.LARRY MAKOWSKI AUC LIC CITY OF BALTIMORE AU0000019. BUYER’S PREMIUM MAY APPLY.

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M id A tlantic R eal E state J ournal TDK Commercial Advisors completes over $3.5 million in regional transactions

K

Realty in leasing over 12,000 s/f to several tenants. RSVP, an established non-profit group will lease over 5,000 s/f in a long term transac- tion. They will be relocating from Blue Bell. In another transaction, TDKCA repre- sented The AT Work Group, a staffing personnel agency in the leasing of over 1,800 s/f on the first floor. In the last transaction, TDKCA repre- sented the owner in the leas- ing of over 1,400 s/f to Main Line Recovery, a collection agency relocating fromGreat Valley, PA. These transac- tions will take the property to over 80% leased in just a

few short months. Kramer said that “TDKCA’s prov- en leasing and marketing

Recovery was represented by Binswanger . In other news, TDKCA

DDCWorks was represented by CBRE and Vanderweil was represented by Colliers International . TDKCA also completed two tenant representation assign- ment on behalf of long time clients. In the first transac- tion TDKCA represented Hello Creative, a new adver- tising and marketing firm in the leasing of over 2,200 s/f at 1845Walnut St. The firm has already opened for business. In the second transaction TDKCA represented Console Law Offices in the long term renewal of their lease at 1525 Locust St., a lease valued at more than $1.3 million. TDKCA is also pleased to announce that they have been named the sales and leasing agent for 106 Gay St., Philadelphia. The 12,000 s/f property is located in the heart of Manayunk, and is of- fered for sale at $1.5 million. The firm has also been named the leasing and mar- keting agent for 198 Allen- dale Rd., King Of Prussia. The property is 25,000 s/f and will be undergoing a complete building renovation over the next several months taking the property to class A status. With exciting design conception already in the works, the landlord plans to spend several million dollars and expects completion by Q3 2016. 198 Allendale Rd. is located only steps from the King Of Prussia Mall and will capitalize on the up- swing in activity in the King Of Prussia marketplace. “King Of Prussia is undergo- ing a tremendous transfor- mation as more residential and retail is constructed. It is proving to be a key suburban location for many businesses and residents alike. This full building renovation will help to make this stand-out office property become a class A project.” Kramer said. “We already have leases out for 25% of the property, with seri- ous negotiations underway for an additional 40%. We expect to be fully leased by the time renovations are complete. Kramer commented that, “TDKCA continues to gain momentum on both the land- lord agency and tenant rep- resentation side of the indus- try. We fully expect to begin to add significant staff and experienced brokers in the coming months as we con- tinue our projected growth”. n

ING OF PRUS- SIA, PA — Thomas Kramer , president of

TDK Com- m e r c i a l Ad v i s o r s ( TDKCA ) announced t h a t t h e f i r m h a s c omp l e t ed transactions totaling over

“King Of Prussia is undergoing a tremendous transformation as more residential and retail is constructed. It is proving to be a key suburban location for many businesses and residents alike.”

program continues to help owners and investors lease properties with quality ten- ants, in tough markets. Our model generates tremendous activity using a very specific agenda, and the results have been terrific”. RSVP was rep- resented by Gola Corporate Real Estate and Main Line

represented the owner of The Cast Iron Building (718 Arch St., Philadelphia) in the leasing over of over 10,000 s/f to two tenants. Vanderweil Engineers renewed their lease and expanded into 7,488 s/f while DDCWorks will be relocating from Con- shohocken into 4,500 s/f.

Thomas Kramer

$3.5 million on behalf of a national client base as well as several new key listings. At Cedar Run Corporate Center (901 E. 8th Ave., King Of Prussia) TDKCA represented the owner, SJS

TDK Commercial Advisors creates outstanding solutions with proven results Landlord & Tenant Representation • Investment Sales • Consulting • Portfolio Management

Thomas D. Kramer , President Tom@TDKCA.com 215.292.5575 2200 Renaissance Boulevard, Suite 210, King of Prussia, PA 19406

www.TDKCA.com

S hopping C enters

Real Estate Journal — Shopping Centers — April 29 - May 12, 2016 — 5A

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Maryland-based Greenberg Gibbons purchases Reisterstown Shopping Center Institutional Property Advisors sells 167,210 s/f Baltimore County shopping center for $34.5m R

Super Market, a Baltimore area-based privately owned and operated grocery chain. Established in 1946, Mars is family owned and managed and currently has 15 loca- tions throughout Baltimore, Harford and Howard counties. “The strength of tenant sales within this property also built confidence among poten- tial investors,” said Burnham. “Ten of the 14 total tenants reported sales, which speaks volumes to the stability of the tenant base and popularity of the center.” At the time of the sale, the Reisterstown Shopping Center was 95% occupied by a strong mix of creditworthy national tenants including Wells Fargo, Bank of America, Rite Aid, Big Lots, Advance Auto Parts, and Dollar Tree. n

E I S TERS TOWN , MD — Institutional Property Advisors (IPA) , a division of Marcus & Millichap specializing in serving institutional and ma- jor private real estate inves- tors, is pleased to announce the sale of Reisterstown Shop- ping Center, a 167,210 s/f grocery-anchored community shopping center located in Reisterstown, MD. The $34.5 million sales price equates to $206 psf. Dean Zang , along with Mark Taylor , both IPA se- nior directors, and Chris- topher Burnham of IPA, represented the seller, a local partnership, and procured the buyer, Maryland-based Greenberg Gibbons . The offering had numerous unique elements that were framed EAST STROUDSBURG, PA — Winick Real ty Group ’s Investment Sales T e am a n - nounced the suc c es s f u l sale of The C r o s s i n g s a t M a r - shall's Creek i n E a s t S t r o u d s - bu r g , PA . The 106,616 s/f, grocery- a n c h o r e d retail center sits on 12.5 acres at the i n t e r s e c - tion of State Route 209 and Oak Grove Drive (State Route 402). Michael Cleeman and Dovid Kaufman repre- sented both the seller, CBL & Associates Properties, Inc. , and the buyer, Bluejay Management of NYC, in the $23.65 million off-market transaction. “The seller developed the Michael Cleeman Dovid Kaufman

Reisterstown Shopping Center the region and outside the area,” said Zang. “The ability to sell off leased pad sites is a popular strategy today. Our ability to substantiate aggres- sive resale cap rates for these pad sites enabled us to drive a substantial premium for our

as “value-add” opportunities, which led to more than 10 bids. “Our marketing campaign, conducted through IPA’s unique platform for creating maximum exposure, stimu- lated buyer interest from various buyer types, within

client.” Reisterstown Shopping Cen- ter is located on 20.5 acres along almost 1,000 feet of frontage on Reisterstown Rd. near the I-795 connec- tor. The shopping center is anchored by a 34,960 s/f Mars SUMMIT, NJ — Regal Bank has announced the opening of a new full-ser- vice branch at the corner of Springfield Ave. and Beech- wood Rd. in Summit. The new facility is part of the bank’s planned expansion of its com- munity bank network. Regal Bank now has a total num- ber of nine branches serving northern New Jersey. The grand opening took place on the morning of Sat- urday, April 9, 2016 and offered food, refreshments and entertainment for the community. Entertainment included The Lizard Guys, a juggler, a photo booth and giveaways of cash-filled Regal Bank piggy banks and NJ Lottery tickets. Thomas Lupo , president and chief executive officer of Regal Bank said, “We are thrilled to be part of the Sum- mit community. This new branch will enable us to sup- port businesses and families in the area with convenient banking solutions tailored to their needs. Relationships are very important to us and we believe that our new neigh- bors in Summit will appreci- ate the superior service that

Regal Bank branch arrives at 360 Springfield Ave. in Summit

Michael Cleeman & Dovid Kaufman represent both parties Winick Realty inks $23.65 million shopping center sale

we provide.” “All of us at Regal Branch want to thank everyone who came out and joined us for our Grand Opening,” said branch manager William Johnson . “Fun was had by all and we look forward to continuing to get to know our new neigh- bors and provide them with a great banking experience.” Well situated near the NJ Transit station and adjoining municipal lot, the new Sum- mit location at 360 Spring- field Ave. offers a wide range of customizable banking so- lutions including passbook savings, personal savings, business and personal check- ing, consumer and business loans, mobile banking, online banking, online bill pay and remote deposit. n 360 Springfield Ave.

The Crossings at Marshall’s Creek

property in 2013 and was looking to divest and relo- cate their capital into other opportunities,” said Clee- man, senior vice president of investment sales. “The buyer was attracted to the property’s retail dominance along the Pennsylvania - New Jersey border. Having a newly-built grocer anchor with a healthy rent to sales

ratio, as well as the upside potential in leasing up the vacant space, made this property desirable.” At the time of the closing, The Crossings at Marshall's Creek was 94% occupied. The center is anchored by a 24-hour Price Chopper, Rite Aid, STS Tire and Family Dollar, and several regional shops. n

6A — April 29 - May 12, 2016 — Shopping Centers — M id A tlantic

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S hopping C enters

78 projects in 14 states Large retail power centers Grocery-anchored community shopping centers Corporate/Industrial business parks National Realty & Development Corp.

Mark Handwerker handles transactions for both parties The Goldstein Group places Tim Hortons in NJ locations

For more information on our portfolio call 1.800.932.7368 or visit us online at nrdc.com

3 Manhattanville Road, Suite 202 Purchase, NY 10577

Tim Hortons, Hazlet, NJ

41377_16_NR_MidAtlantic_Feb2016_FNL.indd 1 2/1/16 12:57 PM Get Recognition for Your Deals & Projects public relations services

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fee and doughnuts with over 4,500 locations worldwide. These two locations are some

Pathmark, K-Mart, Toys R’ Us, Bank of America, Ve- rizon, Aldi, and McDonald’s. Vice president, Mark Hand- werker , consummated the deal on behalf of the landlord and tenant. In Howell, Tim Hortons leased a 2,300 s/f space at 2501 Route 9. It’s a prime retail site with a daily car count of over 45,000 vehicles. Neighboring tenants of the location include 7-Eleven, Wawa, Chase Bank, Home Depot and Wells Fargo. Mark Handwerker was responsible for the transaction on behalf of the tenant and landlord. n

AZLET/HOWELL, NJ — The Goldstein Group , a leading pro-

New DeveloPmeNts | lease/sale tRaNsactioNs iNDustRY tReNDs | exPeRt aRticles, YouR bYliNe

of the first to open in New Jersey. In Hazlet, T i m H o r - tons leased a 3,600 s/f s p a c e a t C h e l s e a Place at 3250

vider of retail real estate services in New Jersey, announced it has placed a Tim Hortons restaurant in Hazlet and Howell New

Why Wait? Contact me Today! • News Releases • Content Marketing • Strategy and Planning • Social Media • Follow Up with Media

Chuck Lanyard

Mark Handwerker

Route 35. The center is a prime retail site in a densely populated marketplace with excellent highway access and visibility. Neighboring ten- ants include Super Foodtown,

Jersey according to Chuck Lanyard , president of The Goldstein Group. Tim Hortons is a Cana- dian quick service restaurant chain best known for it’s cof-

Rubenstein Partners announces team for Carlyle Tower ALEXANDRIA, VA — Ru- benstein Partners, LP an- nounced that it has completed the formation of the team for the rebranding and reposition- ing of Carlyle Tower located at 2461 Eisenhower Ave., a 14-story mixed-use office and retail property in Alexandria. Shortly after acquisition, Ru- benstein entered into a joint venture with Northpoint Realty Partners and then engaged Newmark Grubb Knight Frank for the office leasing and Rosenthal Part- ners for the retail leasing. EagleBank has provided financing to implement the redevelopment program that has been designed by Norti- take Associates .

lisa tolson, President Red Marketing communications

ExpEriEnCEd profEssional. provEn rEsulTs. 908-397-2286 • ltolson@marketingbyred.com

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Rubenstein acquired the 365,000 s/f mixed-use property at the end of last year. The property includes a 335,000 s/f office building with first floor retail along with a 32,500 s/f single-story retail center and to-be-built retail pad site that “wraps” the office building and contains multiple restaurants. Rubenstein and Northpoint have embarked on a complete

2461 Eisenhower Ave.

amenities. “Carlyle Tower is planned to be state-of-the-art in terms of physical building improvements and mixed- use Metro proximate ameni- ties,” said Steve Evans of Rubenstein. n

renovation to transform the property into a brand new class “A” office building with new skin, systems, lobby, fit- ness, conference and related tenant improvements, in ad- dition to the existing retail

Real Estate Journal — Shopping Centers — April 29 - May 12, 2016 — 7A

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By James Bannon, PE, Nave Newell Are you at risk for an ADA violation?

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such as relocating or restriping parking spaces and access aisles or installing the correct signage. It’s important to complete ADA evaluations during your due diligence phase. Are you taking over a site liability? Are you going to need to immedi- ately replace sidewalk and curb ramps? These are just a few of the issues that need to be con- sidered before purchasing a new building or property. While implementing compli- ance measures cannot guaran- tee protection from lawsuits, it can reduce your exposure and make your site more wel- coming to potential tenants

and customers. Through an ADA compliance program, a civil engineering consultant will identify shortcomings and help design a cost-effective action plan to bring your holdings into ADA compliance. Don’t wait until it’s too late! Nave Newell has devel- oped a unique ADA evalua- tion program that has been implemented at over 200 retail stores and commercial sites throughout the Mid-Atlantic Region. For more informa- tion, contact Nave Newell’s ADA Expert, Jim Bannon at jbannon@navenewell.net or 610.265.8323. n

he number of ADA lawsuits continues to grow. Could you be tar-

geted next? The Ameri- c a n s w i t h Disabilities Act (ADA) is a civil rights law that pro- h i b i t s d i s - crimination and ensures

James Bannon

equal opportunity for persons with disabilities. One way the ADA does this is by ensuring that persons with disabilities have equal access to goods and services at all office buildings, shopping centers, and other businesses open to the public. The Americans with Dis- abilities Act has been in effect for over 25 years, but the number of lawsuits has escalated in recent years for a variety of reasons, including “drive-by” lawsuits with the objective of receiving a monetary judgment. You May Think You’re Compliant, but You’re Not. Did you know that if you are improving your property, you need to make sure that you are also increasing the accessibil- ity? In fact, if alterations are made to any primary function of your facility, you should spend an amount up to 20% of the cost of alterations on increasing ac- cessibility to that altered area. Do you have an accessible route from the public right- of-way to your accessible en- trance? While most businesses and property owners know that they need accessible parking spaces, many do not under- stand the need for an accessible route from the public right- of-way. Generally speaking, every building constructed since 1994 should have at least one accessible route from the site arrival point (street, sidewalk, or transportation stop) all the way to the accessible entrance. Does yours? Best Course of Action – An ADA Compliance Program. For many owners, the cost of compliance is holding them back from making improve- ments. But is the hesitation worth the risk and an even more costly lawsuit? It is best to take a proactive approach and implement an ADA compliance program, rather than reacting to lawsuits which generate bad publicity and run up legal fees. The good news is that improv- ing the accessibility of your site is often readily achievable through inexpensive measures,

8A — April 29 - May 12, 2016 — Shopping Centers — M id A tlantic

Real Estate Journal

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By Michael McGrail, Tiger Capital Group Out of fashion: The trouble with tweens and teens

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pparel retailers target- ing tweens and teens are taking a big hit.

In the heyday of the Ameri- can mall, retailers of this type were major traffic drivers. Why are they so challenged today? Historically, the mall played a significant role in the daily social lives of American tweens and teens. This was especially true in the 1980s and 1990s, when kids would hang out at the mall for hours on end. But beginning with the release of the iPhone in 2007, social media began to displace the mall in the hearts and minds of America’s youth. Gradually, young people and their par- ents began visiting malls less

frequently. The 2008 economic collapse, which drove even af- fluent Americans straight into the arms of Target, Walmart and Costco, didn’t do teen- focused specialty retailers any favors, either. In its spring 2014 “Taking Stock with Teens” report, Piper Jaffray Cos. cited a 30% decline in mall traffic by teen visitors over the past ten years. More than 7,500 respon- dents reported an average of 29 annual visits to the mall — as opposed to 38 in 2007. They also described spending more on food and events than on clothing — a first since the

study launched in spring 2001. For its part, Green Street Ad- visors predicted in a January 2015 report that same-tenant sales at U.S. malls would grow just 1.2% between 2016 and 2019. Previously, the firm had predicted a 2.6% increase for this timespan. Green Street also forecast a slowing mall rental rate of 1.5% for the next three years, down from a previous 2.5% estimate. To be sure, time-pressed, working moms have discov- ered how easy it is to stay at home and order the kids’ clothes and shoes from online players such as Zappo’s, Over-

stock or Amazon. However, this is not simply an e-com- merce story. It is also about shifting customer preferences. Back in the 1980s, tweens and teens were exceedingly brand- conscious. The shoes had to be Air Jordans, the jeans Levi’s. Walking into the school with clothes from a discounter or, God forbid, thrift shop, would have resulted in merciless teasing. Today, those kids who do care about clothes understand that mixing and matching your own fashions — creating your own style, from a num- ber of sources, not just the “authorized” ones at the mall — is cool. Fewer kids feel that their identity has anything to do with the brand of jeans or shoes they wear. Pop culture has changed to the point that rapper Macklemore scored a hit with “Pop Some Tags,” a song extolling the virtues of thrift shopping. Increasingly, what teens do care about happens on a pixelated screen: In Piper Jaffray’s fall 2015 iteration of “Taking Stock with Teens,” for which 9,400 teens were surveyed, 73% of respondents said they anticipate buying a next-generation gaming con- sole or already own one, a six percent increase over the prior year. That means more kids and parents will be shelling out $60 or $80 for video games —money that, in the old days, might have been spent in ap- parel stores. Given the reduced role of brand consciousness in today’s marketplace, it is little wonder that some tween/teen retailers have stopped putting oversized brand logos on their apparel. Tween and teen retail is a heavily competitive vertical. Just losing a small percent- age of your brick-and-mortar sales — even if those sales transfer right to your online channel—still leaves you with the significant burden of your leases and four-wall expenses. In today’s tough retail market- place, it doesn’t take much of a reduction in store profitability to reach a point of no return. What about the much-hyped promise of omni-channel retail to keep chains in the black? While online strategies are certainly necessary today, they hardly amount to a panacea. After all, creating a truly vi- able online infrastructure that can compete with Amazon is continued on page 22A

Wh i l e w e have already seen filings fromthe likes o f C a c h e , We t S e a l , dELiA*s and Deb Shops, this is likely just the be-

Michael McGrail

ginning of a larger trend. Amid dwindling sales at many (but not quite all) tween and teen- focused chains, the sector is positioned for further consoli- dation and additional filings.

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By Jerry A. Nelson and Thomas S. Onder, Stark & Stark Ensuring compliance with your leases

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Chapter 11 retail bankruptcy filings. As a landlord, you need to know how the lease will be treated in the bankruptcy case. Hiring effective counsel is key. But it is also important to ensure your lease provides for collection of those fees in the bankruptcy. Make certain that counsel reviews the lease provision and correct it if need be with an amendment before the filing. Jerry A. Nelson and Thomas S. Onder are share- holders and members of the Commercial, Retail and Industrial Real Estate Group at Stark & Stark. n

hopping centers are re- quired to comply with many municipal, state

percentage rent is a “no-no,” as it is viewed as a kick-back. 4. Environmental Issues

sion is key to managing the risks associated with these tenants. Don’t forget to have

tion of the lease term. 5. Residential Leasing Adding a multi-family com- ponent to a shopping center can really drive traffic and make a good center great. However, multi-family, mixed use and other residential com- ponents need to comply with residential lease laws that can be much different than retail leasing laws. Safeguard that the residential lease addresses any security deposit, removal, abandoned property, as well as collection of attorneys’ fees/ costs. 6. Bankruptcy There has been a rash of

and federal laws, codes, ordinances, r u l e s a n d regulations. Fa i l u r e t o comply can incur fines, p e n a l t i e s , damages and

“Adding a multi-family component to a shopping center can really drive traffic and make a good center great. However, multi-family, mixed use and other residential components need to comply with residential lease laws that can be much different than retail leasing laws. ”

Jerry Nelson

Centers to- day deal with hazardous sub- stances frommedical uses, dry cleaners and gas stations. It is critical that the lease provide a system for proper disposal. Further, the insurance provi- Thomas Onder

the lease provide for the use of qualified and licensed en- vironmental professionals for inspections and disposal when needed, as well as proper sur- render of the premises at the expiration or earlier termina-

lost opportunities. It is vital that you retain experienced counsel that understands these complex compliance issues to save both cost and time. The following are just a few com- pliance issues to note on your next lease: 1. Land Use/Licensing The lease use and improve- ment provision is crucial to compliance. If a variance, license or other approval is required, savvy lease drafting should provide who will be responsible to obtain it and when, as well as what happens if approvals are not timely obtained. 2. ADA Americans with Disabilities Act (“ADA”) provides persons with disabilities an equal op- portunity to access and enjoy places of public accommoda- tion. However, the industry has seen a rise in serial ADA litigants “trolling” for techni- cal violations to simply shake down a landlord. Having rou- tine audits to correct violations can prevent both violations and these suits from occurring. In addition, the lease should allocate responsibility for per- forming work in compliance with ADA requirements inside tenant spaces, as well as the parking lot and other common areas. 3. Medical Use and Health Care The rise in urgent care cen- ters, clinics, labs and other medical uses is a boon to land- lords. Navigating the variety of laws, including the Stark Law, Anti-Kickback Statute, Affordable Care Act, False Claims Act, Exclusion Statute, Civil Monetary Penalty Law and the Health Insurance Por- tability and Accountability Act (“HIPAA”) can be daunting. However, certain exceptions and safe harbors can help avoid costly violations. It is impor- tant that counsel understand these laws and not simply use the same lease for other non- medical use space. For example, many people do not know that

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