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ISSUE HIGHLIGHTS Volume 26 Issue 21 Nov. 14 - 27, 2014
Goeller, Kubler and Simon of KLNB brokered approx. 318,000 s/f NAI KLNB brokers sale of five building portfolio for $60.5 million C HANTILLY, VA – NAI KLNB has bro- kered the sale of a
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Adriatic Ct., Atlantic Blvd. in Norcross, GA; Peachtree Corners II on Kingston Ct.; and Kennestone Corners on Kennestone Circle, and is more than 93% occupied. Hartz found these proper- ties appealing both for their proximity to major inter- states 1-75, 1-575 and 1-285, the airport, and two railroad systems, and their location within a market with limited room for additional develop- ment which will reduce com- petition for future warehouse business. 219 Commerce Blvd. in Charlotte is situated within a one day’s drive of 60% of the country because of its prox- imity I-85, widely considered the industrial backbone of the Southeast, I-77, and I-40. Hanes Brand, Inc. recently signed a long-term lease, and since moving into this loca- tion in 1999, Hanes Brand, Inc. expanded the site on 2002 in and recently com- pleted a second expansion of 100,000 addition s/f to accommodate for the brand’s continued growth. n located in, historically, the healthiest and most prolific commercial office environ- ments in the country,” said Kubler, director of invest- ment sales for NAI KLNB. “This offering generated a great deal of high-quality investor interest and mul- tiple offers. The new owner acquired top-of the-class of- fice product in an extremely stable market situated just outside our nation’s capital. This portfolio provides excel- lent opportunities to create long-term value.” The same investment team at NAI KLNB is now tak- ing two more Avion Busi- ness Park assets to market, consisting of a commercial office building and a note collateralized by a separate building. n
ATLANTA, GA — Hartz Mountain Industries con- tinues to secure assets in growing Southeastern United States markets with the acquisition of a 2.5 million s/f portfolio consisting of 35 buildings in North Atlanta. This move comes after it recently secured a 575,718 s/f class A warehouse currently occupied by Hanes Brand, Inc., at 219 Commerce Blvd. in Kings Mountain, NC, just five-building commercial of- fice portfolio totaling approxi- mately 318,000 s/f of space, and located in the Avion Business Park in Chantilly to Hayden Maguire Real Estate Fund for $60.5 mil- lion. The NAI KLNB team of Kevin Goeller , Chris Kubler and Josh Simon , in cooperation with C-III Realty Services, LLC , bro- kered the transaction on be- half of JPMCC 2006-CIBC14 Chantilly Office, LLC. The sales price represented ap- proximately $190 per s/f. Originally built by the Trammell Crow Company between 1987 and 2001, the portfolio is contained within a nineteen-building office
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Penwood closes on 203,000 s/f in Piscataway
Avion Business Park
portfolio within Avion Busi- ness Park. The business com- munity is served by numer- ous highways including MD Rte. 50 and 28, I-66 and the Dulles Toll Rd. The park is positioned immediately south
of Washington Dulles Inter- national Airport and is within close proximity to fourteen hotels and 2.5 million s/f of retail space. “This mix of low and mid- rise flex/office product are
HARTZ continues Southeast commercial acquisitions including a 2.5m s/f portfolio
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west of Charlotte, and the 278,586 s/f, class ‘A’ indus- trial property located in the Baltimore-Washington Cor- ridor at 7448 Candlewood Rd. in Hanover, MD. These are the first trans- actions for Hartz in Atlanta and Charlotte and the third in the Baltimore port market, bringing its nationwide port- folio consisting of warehouse/ industrial, datacenter, office, retail and hospitality assets to more than 35 million s/f. “The Panamex expansion of the Panama Canal created additional transportation op-
tions to and from the Orient and the West Coast, making East Coast locations in large and growing areas more rele- vant,” said Emanuel Stern, CEO and president for Hartz Mountain Industries. “Popu- lation growth in cities like Charlotte and Atlanta make Baltimore and other mar- kets in the Southeast more appealing for us and other companies to expand their businesses into as well.” The North Atlanta portfolio consists of three develop- ments: Peachtree Corners I on Jimmy Carter Blvd.,
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Meet Our Speakers & Moderators
Roger Gross, NIA — National Realty, Inc. Speaker: 8:00 AM 2014 Retail Market Update
Roger founded NIA National Realty in 1986 after spending two years with the Charles Klatskin Company, which primarily focused on the industrial segment of commercial real estate. He opened offices directly on Route 17, just north of Route 4, at one of the country’s busiest intersections, expanding his focus to include retail, office and invest- ments, on top of the industrial foundation. During NIA National Realty’s formative years, an interesting proposition became abundantly clear. A “cross-trained” brokerage expert would serve best in this highly unique market, especially given the concentration of national retailers, who also maintain offices, and even a storage component, all in the same market. Steve Hittman is a real estate developer and principal of Crossroads Companies, LLC, a regional shopping center development firm based in Mahwah, NJ. In career that has spanned approx. three decades, Steve has worked with regional & national retailers, lenders, lawyers, REITS, fund managers and investors in the acquisition & development of shopping centers. Prior to forming his own real estate development firm, Steve was a real estate executive for one of the largest ShopRite members in New York State with an approx. 1 million+ SF portfolio of corporate owned shopping centers. As the key executive in charge of real estate, the company increased the number of new stores in its portfolio by 60%s; and sales volume from $600,000 to $ 1+ billion a year. Jennifer Sofia — Cushman & Wakefield Speaker: 8:00 AM — 2014 Retail Market Update Jennifer Sofia joined Cushman &Wakefield in 2012 as a seasoned real estate professional with over 15 years of varied real estate experience. At Cushman &Wakefield, her main focus is to provide occupancy solutions to property owners to maximize income potential through leasing, development, disposition, and lease re-negotiations. In addition, she is responsible for targeting new clients. Prior to joining Cushman & Wakefield, Ms. Sofia held a role as Asset Manager in the Property Development Department of Toys R Us where she managed the company’s portfolio. She is a member of the International Council of Shopping Centers (ICSC) and the NJ Association of Realtors. Joe Latina — Patterson-Woods Commercial Properties/CORFAC International Speaker: 11:10 AM — Owners Perspective: What Does the Future Hold for the Restaurant Industry Joe Latina is one of the top Mid-Atlantic commercial real estate professionals with a focus on restaurant real estate. A principal with Patterson-Woods Commercial Properties/ CORFAC International in Wilmington, Joe has been active in this industry niche for 25 years. Representative Clients / Top Transactions include: McDonald’s Restaurants, Wendy’s Restaurants, IHOP Restaurants, Jake’s Wayback Burgers, Moe’s Southwest Grill, Zoup!, Primo Hoagies, Dunkin Donuts, Moro Restaurant, Cantwell’s Tavern, Ulysses Gastropub, El Dia- blo Burritos, Kitty Knight House, The Granary, Famous Taverns, 16 Mile Taproom. • $150,000,000+ in transactions • 250+ Restaurant/Bar transactions • 125+ Investment Sales Lori Grifa —Wolff & Samson Speaker: 8:50 AM Important Legal Considerations for Your Next Retail Project Lori Grifa rejoined Wolff & Samson in 2012 as chair of the Regulatory Affairs Group after having served in Governor Chris Christie’s Cabinet as the commissioner of the New Jersey Department of Community Affairs for two years. During her tenure, Lori also chaired the New Jersey Meadowlands Commission, the New Jersey Redevelopment Agency, the New Jersey Council on Affordable Housing and the New Jersey Housing Mortgage Finance Agency. As head of the firm’s Regulatory Affairs Group, Lori handles matters involv- ing administrative and regulatory law, as well as government affairs, before the NJ Departments of Banking and Insurance, Education, Environmental Protection, Health, Labor, Transportation and Treasury, and has represented clients before more than 20 of the State’s 42 professional licensing boards. Paul G. W. Fetscher — Great American Brokerage, Inc. Speaker: 11:10 AM — Owners Perspective: What Does the Future Hold for the Restaurant Industry Paul G. W. Fetscher CCIM, SCLS is President of Great American Brokerage Inc., a New York based firm specializing in restaurants and retail. His restaurant experience dates back to 1963, and as a principal since 1968. He started in commercial real estate in 1969 and was the top retail producer nationwide for Cushman and Wakefield Real Estate during the 1970s. Since founding Great American in 1980, he has been responsible for more restaurants throughout the Greater New York metropolitan area, than any other broker. Great American Brokerage Inc. does consulting in retail concept, design and development in lifestyle centers, downtown redevelopment, urban renewal, regional malls, & more. Ken Simon — Heidenberg Properties Group Speaker: 9:20 AM Trends & Opportunities: What Does the Future Hold for Retailers? Ken is a Vice President of Heidenberg Properties Group. He and his associates are actively involved in new development, redevelopment, acquisition, leasing and management of retail properties primarily located primarily in the Northeastern and Middle Atlantic, and Midwestern states. Ken is a licensed New Jersey Real Estate Salesman. He has been active in the retail real estate and shopping center business since 1970. He is knowledgeable in all facets of the shopping center business and has been an active member of the ICSC throughout his career. Before joining the Heidenberg organization, Ken had been associated with Lerner Heidenberg Associates in a similar capacity. George has been in the real estate industry since 1974. He spent most of the 1980’s as a principal with Hartz Mountain Industries where he was a partner and active in the development of over 20 million square feet. Mr. Jacobs started Jacobs Enterprises (“JEI”) in 1990. Currently, he is managing member of a $100 million+ (equity) acquisition and development fund seeking out real estate investment and development opportunities He received his BA, (Phi Beta Kappa) Rutgers; MCRP, Harvard University; and MBA, Rut- gers. He is a NJ-licensed Planner and Real Estate Broker in NJ and PA. He is a Counselor of Real Estate, one of the nation’s 1500 members, and served as NJ’s President in 2006-7 Marta Person Villa — CBRE’s Saddle Brook NJ Speaker: 9:20 AM Trends & Opportunities: What Does the Future Hold for Retailers? Marta Person Villa joined CBRE’s Saddle Brook office in 2011 as Vice President within the firm’s Tri-State Retail Services Group. Villa possesses over 20 years in the commercial real estate industry and has accumulated extensive knowledge and experience in landlord representation, occupier site selection and investment property acquisition and dis- position. Her current premier agencies include the new Prudential Tower – Shoppes on Broad for the Prudential Insurance Company of America (Newark) and the one million SF Newport Tower owned by Bentall Kennedy (Jersey City). Ted Zangari — Sills Cummis & Gross Speaker: 8:50 AM Important Legal Considerations for Your Next Retail Project Ted Zangari is a Member of Sills Cummis & Gross, a commercial law firm with New Jersey offices in Newark and Princeton. He is a Chair of the Firm’s Real Estate Department and serves on the Firm’s Management and Executive Committees. Zangari’s law practice is multipronged. He chairs the Firm’s Redevelopment Law Practice Group, captaining a team of Sills Cummis & Gross attorneys on large-scale mixed use projects including land assemblage, redeveloper designations and agreements, tax increment financing and other public incentives, environmental remediation, commercial condominiumization and construction contracts. In addition, Mr. Zangari chairs the Firm’s Public Policy and Governmental Affairs Practice Group Steve Hittman — Crossroads Companies, LLC Speaker: 10:20 Critical Capital Market Strategies George Jacobs — Jacobs Enterprises Speaker: 8:50 AM Important Legal Considerations for Your Next Retail Project
Alexander S. Arancio —Wakefern Food Corporation Speaker: 9:20 AM Trends & Opportunities: What Does the Future Hold for Retailers?
Alex Arancio is a senior real estate representative with Keasbey, N.J.-based Wakefern Food Corp., the retail cooperative whose members operate ShopRite stores. He has worked with people such as Peter Ripka of RIPCO Real Estate in New York; Glenn Goldstein, president of Related Retail in New York; and John Hanlon, SVP of CBRE in New York in the past.
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Mid Atlantic R eal E state J ournal Publisher ............................................................................ Linda Christman Publisher ............................................................................... Joe Christman Publisher/Senior Account Executive ................................. Elaine Fanning Section Publisher .................................................................... Steve Kelley Associate Publisher .............................................................Danielle Welch Senior Editor/Graphic Artist .................................................Karen Vachon Production Assistant ....................................................................Julie King Office Manager .................................................................... Joanne Gavaza Contributing Columnists ......... Don Frommeyer, NAMB; Corey Lonberger, Rittenhouse Realty Advisors; Beverly Blum, DesignWorkBuild 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. Rockland, MA 02370 USPS #22-358 | Vol. 26 Issue 21 Subscription rates: $99 - one year, $198 - two years, $4 - single copy
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Does Your Mortgage Broker Have the Lending Integrity Seal of Approval? Don Frommeyer T here’s more to buy- ing a house than re- searching the prop- erty and neighborhood, there are also certifications your mortgage broker should have to ensure your home buying process is a smooth one. Mort- gage expert Don Frommeyer, CEO of NAMB, explains that home buyers should search for the Lending Integrity Seal of Approval. “The Lending Integrity Seal of Approval is an accredita- tion that is unique to NAMB, The Association of Mortgage Professionals,” says From- meyer. “Mortgage profession- als who display it have been through a rigorous valida- tion process and meet our national standard for ethics, professionalism, integrity and service.” Frommeyer explains that
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the certification is the first na- tional standard for mortgage originators. “The Seal Certifi- cation focuses on professional development in the lending industry, including a verifica- tion of the knowledge in the mortgage origination field,” says Frommeyer. “Letters of reference and background checks are also a part of the certification process to ensure that past behavior and repu- tation are taken into account.” Frommeyer adds that The Lending Integrity Seal of Ap-
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W 155,713 s/f building sold to First Potomac Realty Trust Cassidy Turley represents BlackRock in $89m sale ASHINGTON, DC – Cassidy Turley , announced that it
Three month total is 450,000 s/f NAI KLNB brokers four leases totaling 142,000 s/f
represented BlackRock Real Estate on behalf of one of its clients, in the sale of 11 Dupont Circle, a 155,713 s/f office build- ing, located on Dupont Circle in Washington, DC. Vice chairmans Bill Collins and Paul Collins , and execu- tive managing directors Drew Flood , Jud Ryan and J ames Cassidy of Cassidy Turley rep- resented BlackRock in the $89 million sale to First Potomac Realty Trust . “Dupont Circle is synony- mous with prestige inWashing- ton, DC and 11 Dupont is one of the best assets in that market,” said Flood. “I give credit to BlackRock for their vision when they acquired it on behalf of their clients seven years ago, and I think First Potomac will enjoy tremendous long-term CHEVY CHASE, MD — Federal Capital Partners (FCP) has announced the $11.5 million acquisition of a 313,000 s/f industrial distribution fa- cility one mile from the I-95 and I-695 interchange on Sul- phur Spring Rd. just south of downtown Baltimore, MD. The facility recently underwent a $4 million renovation that included modernized dock ar- eas, high efficiency lighting, a new roof, site asphalt and new security features. FCP will pro- vide additional infrastructure improvements and has retained Cassidy Turley to lease the property. “2209 Sulphur Spring offers one of the only existing large contiguous blocks of industrial warehouse space in the supply- constrained Baltimore market,” said FCP vice president, Erik Weinberg . “FCP has planned additional site and building im- provements to complement the recent renovation and to further enhance the facility’s position in the market.” “Cassidy Turley is excited to
ness Parks; and Habitat for Humanity signing a lease for 25,466 s/f of space at 4311 Walney Rd. in the Walney Business Center in Chantilly, with Tasker and Moody rep- resenting the landlord, CIII Realty Services. Additional NAI KLNB ac- tivity included brokering a ten-year 129,580 s/f lease and the sale of 4.4 acres of land at Patriot Business Cen- ter, as well as brokering four leases totaling approximately 180,000 s/f of space at Airport Commerce Center near Wash- ington-Dulles International Airport. NAI KLNB’s Marc Tasker and Kevin Goeller rep- resented the landlords in these transactions. “The Northern Virginia industrial and warehouse market continues to exhibit strength and momentum, with the majority of activity migrat- ing to best-of-class buildings,” said Goeller, principal with NAI KLNB. n “Centric Commercial is a great fit for CORFAC Inter- national and fills a market that is central to our network platform of having top qual- ity firms in key locations. Given Austin’s rise as a ma- jor tech center in the U.S., we’re glad to have Craig, Russell and their colleagues on board,” said Dan Granot, SIOR , CORFAC Internation- al Affiliation Development Committee Chair. “Austin has become a Tier 1 city and increasingly sophisticated market.” n tions. Centric Commercial ex- clusively represents tenants in both lease and investment assignments.
VIENNA, VA — NAI KLNB has brokered four leases total- ing approximately 142,000 s/f of space in the Northern Virginia marketplace, bring- ing the recent three-month activity to more than 450,000 s/f of space comprising nine separate transactions. The most recent transac- tions include: Mr. Floor sign- ing a lease for 64,578 s/f of space at 5617 Industrial Dr. in Springfield, VA with Marc Tasker, CCIM, SIOR and Kevin Goeller, CCIM, SIOR representing Prologis; AT&T signing a lease for 22,600 s/f of space at 8308 Cinder Bed Rd. in Newington, VA with Marc Tasker and Jim Crowder representing the landlord, Curtis Investments; DynCorp signing a lease for 30,560 s/f of space at 7001 Newington Rd. in the Gunston Industrial Park in Newington, Virginia with Tasker, Ryan Moody and Josh Simon represent- ing the landlord, PS Busi- FALLS CHURCH, VA — CORFAC International president Robert Tillsley, SIOR , announced that Aus- tin-based Centric Commer- cial has joined CORFAC In- ternational as the network’s fourth Texas firm. Led by founder/principal Craig Couch and princi- pal Russell Todd , Centric Commercial/CORFAC In- ternational covers a wide range of real estate services including strategic planning, site selection, lease negotia- tions, lease renewals, lease expansion, financial analysis, construction/project manage- ment, relocation support, and property acquisitions/disposi-
11 Dupont Circle
success at 11 Dupont Circle.” 11 Dupont Circle offers Me- trorail access and is situated around primary DC thorough- fares, including, Connecti-
cut Ave. Massachusetts Ave. and New Hampshire Ave., which allow for express access throughout DC and to subur- ban Maryland. n
Federal Capital Partners acquires 313,000 s/f building for $11.5 million
Centric Comm’l joins CORFAC Int’l
2209 Sulphur Spring Rd.
Turley principal and senior vice president Jarred Testa . “2209 Sulphur Spring has many ame- nities that industrial users in the market desire, including ample trailer parking, secure access and outside storage.” FCP extends its appreciation to Cris Abramson and Brian Kruger of Cushman Wake- field , who represented the seller in this transaction. Financing was provided by Eagle Bank . n
be working with Federal Capi- tal Partners and is focused on exposing 2209 Sulphur Spring Road to the Mid-Atlantic in- dustrial market,” said Cassidy
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Commercial-Industrial Realty Council Joint Dinner (Nov.20) SIOR * CIRC * CCIM * TriState Great Real Estate Event...Great Speaker ...Great Networking www.circdelaware.org
Annual Joint Dinner SIOR * CIRC * CCIM * TriSTate REALTORS November 20, 2014 (Thursday) Harry's Savoy Grill & Ballroom Networking, Sponsorships, Food, Speaker
Schedule of Upcoming Events Dec. 10, 2014 (Wed.) Annual Holiday Luncheon University & Whist Club Jan. 14, 2015 (Wed.) Monthly Lunch Meeting
2013 Board of Directors President John Birmingham Cushman & Wakefield Vice President Bert Root Harvey Hanna & Associates Treasurer Katherine L. Silicato, CPA Gunnip & Company, LLP Secretary Bayard J. Snyder, Esq. Bayard & Associates Directors /Committee Education Chair: Dan Lesher Patterson Woods Associates Legislative Chair: J. Gregory Ellis Patterson-Woods Associates Program Chair: Donald Robitzer The Commonwealth Group Membership Chair: James Manna MidCoast Community Bank Benjamin J. Berger, Esq. Berger Harris, LLC Jim O’Hara, Jr. NAI Emory Hill-Retail Div. Rachael Justice ATAPCO Christiana Marvin Sachs Bellevue Realty Co. BrightFields, Inc. Jeremy Abelson C. S. Kidner & Associates Economic Dev. Liaisons New Castle County Chamber Bob Chadwick NCC Ec. Dev. Council State of Delaware David Archer DEDO NCCo. Rep. City of Wilmington Jeff Flynn Office of Economic Dev. Contact Us www.circdelaware.org (302) 633-1705 janet@circdelaware.org Ex-Officio Members Business Manager Janet S. Pippert CIRC / Landmark Science & Engineering Legislative Lobbyist C. Scott Kidner
Clarion Hotel-The Belle Jan. 14, 2015 (Wed.) R.E. Continuing Education * Mod. 2 / Ethics in Real Estate Mod. 3 / Contracts/Contract Law Mar. 11, 2015 (Wed.)
Happy Hour: 5:15-6:30 Dinner/Program: 6:30-8:30 Buffet: Harry’s Award-Winning Prime Rib, Atlantic Salmon, Breast of Chicken and much more! Cost: $60 member / $70 non-member More Info & CIRC Registration: circdelaware.org/meetings/nextMeeting.cfm
R.E. Continuing Education * Mod. 1 / Fairhoursing/Agency/Ethics Mod. 6 / R.E. Investment Fundamentals * Visit us on the web for more information on provider and credits for DE*MD*PA*NJ: circdelaware.org/education/schedule.cfm
Bill Hankowsky, President, Chairman & CEO of Liberty Property Trust to offer Joint Dinner keynote speech
Woodlawn Trustees...Fulfilling One Man's Vision Vernon Green of Woodlawn Trustees, Inc., spoke at CIRC's October meeting about the not-for-profit real estate business established in 1901 by mill owner Wil- liam Poole Bancroft for the preservation of open space, affordable housing in the City of Wilmington, and orderly planned development to benefit the community and to provide funding for Woodlawn’s activities. As VP/COO of the Todmorden Foundation, Vernon shares in its deep commit- ment to affordable rental housing and improving the quality of life in Wilmington, Delaware. Since Todmorden’s inception in 2011, Vernon has spearheaded the drive for the redevelopment of the “Flats” in the City of Wilmington, a historic urban neighborhood envisioned by William Bancroft over 100 years ago to house mill workers and other working families. The project will span ten+ years, adding more housing units, parking, and community services.
Guest speaker, Vernon Green of Woodlawn Trustees, CIRC President John Birmingham, and Scott Kidner of CSK Associates
Board of Directors Jeremy Ableson of MidCoast Community Bank, and Greg Ellis of Patterson Woods/Corfac
Todd Breck, AIA, entertains Woodlawn Trustees' VP/COO Vernon Green and Board Director Jim Eversmann
Barry Snyder, Esq. of Snyder Assoc., Edd Connor of NAI Emory Hill, and Chuck Brown of Brown Appraisal
Margi Kandra of Floor Covering Consultants, Mike Janis of RCI, and Melinda McGuigan of EDiS
Photos courtesty of Sonitrol Security of Delaware Valley. View more photos at: www.sonitrolde.com (select “News & Alerts” then select “CIRC/DE” for monthly events photographed by Marketing Coordinator Pat Forester)
JOINT DINNER SPONSORS
Pat Forester, our photogra- pher, with Sonitrol Security, and Michele, Chynoweth of NAI Emory Hill
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$420,000,000
45 EAST 22ND STREET NEW YORK, NY
A to be built 83 unit luxury condominium tower
Developer Ian Bruce Eichner The Continuum Company LLC
The undersigned arranged the above construction & preferred equity financing.
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Real Estate Financing
www.marejournal.com F inancial D igest F eaturing L ender ’ s D irectory 56-unit 333 Greene Ave. now nearly 100% leased Eastern Union funding arranges $26m for Bonjour Capital’s multifamily tower N EW YORK — East- ern Union Funding refinanced a 12 story M id A tlantic
Real Estate Journal — November 14 - 27, 2014 — 7A
borhood—its lavish structure, stunning views and incredible amenities enhance the stan- dards set by the community.” Dayan says that 333 Greene has only one vacancy--the first update on the building’s status since word broke in April of this year that the building’s 56-units were completed and marketable. Additionally, the penthouse which was last re- ported as off-market has been rented. When purchased, 333 Greene was an unfinished skeleton of a building, a dra- matic contrast to what are now pristine lofts and apartments with floor-to-ceiling windows, stainless steel appliances and Caesarstone countertops.
“Charles built a lot out of what could have been com- pletely unused space,” said Ira Zlotowitz , president of Eastern Union Funding. “The due diligence it took to take a building that was headed in the wrong direction, and pull an efficient 180 can’t be overstated.” The loan was arranged by Eastern Union Funding, and underwritten by Shaya Son- nenschein , who was recently promoted to managing director after heading an underwriting division in the company for the past decade. It features an in- terest rate of 3.45% on a seven year term and was provided by Mercantile Bank . n
tower at 333 Greene Ave., a $26 million loan which official- ly brings life to a construction project that fell victim to the recession before it was bought out of foreclosure by Charles Dayan , owner of Bonjour Capital , in 2013. “The team at Eastern to- gether with our team closed the deal very quickly, without any hitches and with every- body’s goodwill it was a smooth process.” Dayan said. “With permanent financing in place and the building 99 percent leased, 333 Greene compli- ments this emerging neigh- PITTSBURGH, PA — HFF announced that it has closed the sale of the Crowne Plaza Pittsburgh South, a 179-room hotel across from the South Hills Village Mall in Pittsburgh. HFF marketed the proper- ty on behalf of the SageCrest Liquidating Trust , rep- resented by its liquidating trustee, Jack Huber , and portfolio director Christo- pher Brown , bothmanaging directors of SOLIC Capital, LLC . OxfordDevelopment Corporation purchased the hotel unencumbered with management for $6.1 million. The Crowne Plaza Pitts- burgh South is situated on a 5.4-acre site at 164 Fort Couch Rd. in Pittsburgh’s South Hills area, which is 10 miles from downtown. This places the hotel near demand drivers such as Southpointe Office Park as well as lei- sure destinations including PNC Park, Station Square, Heinz Field and Rivers Ca- sino, among others. The property has 13 suites and 13 extended stay suites in addition to the guest rooms. Hotel amenities include an outdoor pool, fitness center and business center. The hotel also features 15,000 s/f
333 Greene Ave.
HFF closes $6.1 million sale of Crowne Plaza Pittsburgh South, a 179-room hotel
$9.65m cash-out refinancing arranged by Marcus & Millichap Capital Corporation
Riggs Plaza
ing that allows for possible property redevelopment in three to five years,” said Cas- sidy. “We demonstrated to the borrower our ability to execute on a transaction of this size, sourced a local bank that structured terms aligned with our client’s goals and maximized cash flow without over-leveraging risk.” The loan is fixed for five years at 4.35% with 25-year amortization. The first two years of the term are interest- only, with no prepay for years three, four and five. The LTV is 58%. n
HYATTSVILLE, MD — Marcus & Millichap Capi- tal Corp. (MMCC) , a pro- vider of commercial real estate financing and capital markets expertise, has arranged $9.65 million in cash-out refinancing for a 77,000 s/f retail build- ing in Hyattsville. Jared Cassidy , associate director in MMCC’s Washington, DC office, arranged the financing. “Amaturing CMBS loan and a Washington Metropolitan Area Transit Authority light rail station that’s been pro- posed near the site prompted the borrower to seek refinanc-
Crowne Plaza Pittsburgh South
of meeting space throughout 10 rooms. The HFF investment sales team representing the seller was led by managing director Denny Meikleham , senior managing director Mark Popovich and senior real estate analyst Alan Suzuki . SOLIC Capital, LLC pro- vides financial advisory, prin- cipal investing and distressed asset management for mid- dle-market companies. For 50 years, Oxford Devel- opment Company has stood
at the forefront of the mar- ketplace as a developer and full service commercial real estate provider with experi- ence in the local, regional and national marketplace. Its portfolio in the specialty as- set classes of healthcare, and sports and entertainment projects alone consists of $1.2 billion in development man- agement and construction. All told, the firmhas provided project management services for clients on projects totaling over $9 billion. n
8A — November 14 - 27, 2014 — M id A tlantic
Real Estate Journal
www.marejournal.com
L ender ’ s D irectory Cassidy Turley’s Philip Mudd and Bradley Geiger represent owner in transaction Cassidy Turley arranges $20m in financing for National Real Estate Advisors & The Lenkin Co.
cial real es- tate services provider in t h e U . S . , announced that it has arranged fi- nancing for 1625 Mas- sachusetts W
conference center, totaling approximately 6,000 s/f. It also features a two-story lob- by and underground garage with 200 parking spaces. The building is located just two blocks from Dupont Circle, with access to public transportation, including the Dupont Circle Metro Station (Red Line), a Capital Bike- share station, located on the East side of the building, and approximately 15 bus lines, including the DC Circulator, located within two blocks. 1625 Massachusetts Ave. is 97% leased. n
venture with The Lenkin Company . Executive managing direc- tor, Philip Mudd and vice president, Bradley Geiger , of Cassidy Turley, arranged permanent financing, total- ing $20 million. Prudential was the lender. 1625 Massachusetts Ave, a 117,000 s/f office building, is located in Washington DC’s Central Business District. The property contains recent improvements, including upgraded common areas and bathrooms, as well as a planned fitness center and
ASHINGTON, DC – Cassidy Turley , a leading commer-
Philip Mudd
Ave. in Washington, DC. The property is owned on behalf of National Real Estate Advisors ’ open-end, build-to-core fund, in joint
1625 Massachusetts Ave.
MONTGOMERY COUN- TY, PA — GFCIB and Advisors, LLC announced that it has secured financing through its affiliated com- pany, DIP Lending, LLC for a private real estate partner- ship in Pennsylvania. The ownership engaged GFCIB and Advisors, LLC to provide exclusive financial advisory and loan placement services to them. Managingmember, H. Jack Miller said “On this deal we represented the ownership of a parcel of commercial devel- opment land in Montgomery County, Pennsylvania that had the land under agreement of sale. There was an opportu- nity with its existing lender to pay it off and receive a sub- stantial discount” GFCIB ar- ranged for a refinance on the property to take advantage of the discount the bank was offering through an affiliated company DIP Lending, LLC. Miller said that “We have done numerous transactions with this client and like most of our transactions they are repeat clients and referrals and it is very gratifying when they are pleased and keep coming back.” GFCIB and Advisors, LLC, a nationally recognized advi- sory firm for commercial real estate owners, developers, builders and mid-sized busi- nesses, focuses on provid- ing advisory services to cli- ents, including restructuring, workouts, and financing. DIP Lending, LLC is a private lender of companies in Chapter 11 Bankruptcy or under financial distress. n GFCIB secures financing through DIP Lending in PA
Real Estate Journal — November 14 - 27, 2014 — 9A
www.marejournal.com
M id A tlantic
L ender ’ s D irectory
NorthMarq arranges $2,537,500 in acquisition financing for an office building NorthMarq Capital finalizes $9m refinance of 1122 Franklin Ave. office building in NY
G
ARDEN CITY, NY — Charles Cotsalas and Ernie DesRo-
chers , s e - n i o r v i c e p r e s i d en t s o f No r t h - Marq Capi- t a l ’ s Ne w York metro b a s e d r e - gional office secured the $9 mi l l i on refinance of 1122 Frank- lin Ave., a 48,383 s/f of- fice building l o c a t e d i n Garden City. The t rans - action was
Charles Cotsalas
1122 Franklin Ave.
26 Parkridge Rd.
Ernie DesRochers
structured with a 12-year term with 5-years interest only and 30-year amortization. North- Marq arranged financing for the borrower, 1122 Franklin LLC, through its correspon- dent relationship with a life insurance company. “Through our correspondent life company relationship we placed attractive long-term financing at 4% with 5-years interest only, taking out a CMBS loan,” said Cotsalas. “The borrower realized a sig- nificant cash out with little, if any, capital remaining. This was a high leveraged loan on a suburban office building.” HAVERHILL, MA — Ed Riekstins , senior vice presi- dent of NorthMarq Capital’s
Recently Closed Loans
Boston based regional of- fice secured acqui s i t i on financing of $2 , 537 , 500 for a 42,000 s / f o f f i c e building lo- cated at 26
$7,473,669
$27,000,000 $2,029,125
Mixed-Used Apartment Conversion Residential Land Development 11-Unit Apartment Conversion Philadelphia, PA Malvern, PA Philadelphia, PA 80% LTC, 24 Months, 300 bps over LIBOR 3 Years, 1,150 bps over LIBOR, I/O 75% LTC, 12 Months, 4.25% I/O
Ed Riekstins
Parkridge Rd. in Haverhill, Massachusetts. The transac- tion was structured with a 20- year term and 25-year amorti- zation. NorthMarq arranged financing for the borrower through its correspondent re- lationship with a life insurance company. “The strong location of the property as well as the lender’s assistance to complete a quick closing made this a successful transaction,”said Riekstins. “We look forward to doing more business with both the borrower and the lender.” n
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 75 East Butler Avenue • Ambler, PA 19002 • 610-456-9644 • bgreen@realpropertycapital.com
10A — November 14 - 27, 2014 — M id A tlantic
Real Estate Journal
www.marejournal.com
L ender ’ s D irectory
80, 877 s/f Sea Girt, NJ lifestyle retail center part of $160m acquisition Cronheim arranges $11.5m in financing with a 15 year interest-only mortgage for Brook 35 Plaza
EA GIRT, NJ — An- drew Stewart , Dev Morris , and Allison Moravec have arranged $11.5 million in financing for Brook 35 Plaza, located in Sea Girt. The loan was structured with a 15-year interest-only term and was placed with American General Life Insurance Com- pany and National Union Fire Insurance Company of Pitts- burgh, PA for the borrower, Sea Girt Limited Partnership, an affiliate of Federal Realty Investment Trust. Brook 35 Plaza is an open air, lifestyle center consisting S
Brook 35 Plaza
of three retail buildings con- taining 80,877 s/f. The proper- ty, built in 1986, is leased to a high-quality mix of 20 national
and local retailers, including Chico’s, Coach, the Gap, Star- bucks, Victoria’s Secrets, and Williams-Sonoma. In addition,
the central building was con- structed with a second floor containing 13,240 s/f, 100% leased to Morgan Stanley and
Premier Executive Suites. With easy access to Rte. 36 and the Garden State Parkway, the subject is con- veniently located along the Rtel 35 retail corridor in Sea Girt, Monmouth County. This 25-mile retail corridor has traffic counts of approxi- mately 24,800 vehicles per day. Moreover, the subject location of Sea Girt, one of Monmouth County’s most affluent communities, has a solid year-round population base; Sea Girt was listed on Forbes Magazine’s 2012 list of “America’s Most Expensive Zip Codes,” with a median home price of $1,135,184, and a population of over 512,000 within a five-mile radius. Sea Girt is especially desirable as one of the major beach towns along the New Jersey shoreline. Ac c o r d i ng t o And r ew Stewart, “This property will continue to evolve as one of Monmouth County’s premier lifestyle shopping centers, and is a strategic addition to the Federal Realty portfolio.” Founded in 1897, David Cronheim Mortgage Corpora- tion and its affiliate compa- nies located in Chatham, NJ provide an array of real estate services including debt and eq- uity for investment grade real estate. Through their Channel Real Estate Funds affiliate they have provided mezzanine and equity capital for numer- ous real estate projects in an efficient and cost effective manner. Cronheim Mortgage maintains correspondent and/ or servicing relationships with 15 institutional investors, mostly insurance companies, and currently services $2.0 billion of debt. The company and its insurance company correspondents have substan- tial debt and equity capital to invest in quality real estate at pricing below alternative sources, especially for long- term debt. n
Recent DelawareValley Transactions
$12,328,000
$10,000,000
$31,600,000
Student Housing
Residential Land Development
Office Redevelopment
Philadelphia
& Construction Revolver
Western Suburbs
Construction/Mini-Perm
Bucks County
Construction/Mini-Perm
$3,000,000
$5,000,000
$5,300,000
Retail Development
Community Development Corp
Mixed Use Portfolio
Central New Jersey
Philadelphia Based
New Castle County
Construction/Mini-Perm
Line of Credit
Permanent Loan
To talk about your plans today, contact: Chris Unger, VP Business Development Chris.Unger@susquehanna.net 856.756.3502 office | 856.816.5152 cell
At Susquehanna Bank, we combine the strength and resources of a diverse financial services company with local decision making and customer service, delivered by our talented in-market team of CRE professionals. Please consider Susquehanna for your upcoming project financing needs.
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