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ISSUE HIGHLIGHTS Volume 37, Issue 4 April 2025 SPOTLIGHTS SPRING PREVIEW 3-9A
Built in 1974 and featuring 160 units, Pioneer Woods is situated on 30 sprawling acres P John Banas and Kris Wood secure permanent fixed-rate financing Northmarq secures $39.35M refinancing for two Philadelphia, PA apartments
HILADELPHIA, PA — Northmarq’s Phil- adelphia Debt + Eq- uity team led by John Banas and Kris Wood completed a combined $39.35 mil- lion in refi- nancing for two central Pennsylvania multifamily housing communities: • Pioneer Woods (9 Lamppost Ln., Lancaster, PA) • Rosedale Apartments (199 Cherry Dr., Hershey, PA) Northmarq arranged the permanent-fixed rate financ - ing on both opportunities on behalf of the borrower, Boyd Wilson , through its in-house Fannie Mae DUS platform. Each transaction was struc- tured with 10-year terms. SUMMIT, NJ — The Kislak Company, Inc. an- nounced the recent sale of The Parc at Summit, a 57-unit gar - den apartment complex at 26 Locust Dr. in Summit, Union County for $22,150,000. Kislak marketed the prop - erty on an exclusive basis with president Robert Holland and managing director Jeff Squires handling the assign- ment on behalf of the seller. Executive vice president Joni Sweetwood procured the purchaser. The parties were John Banas
surrounded by farmland in Lancaster County. It of- fers residents privacy along with views of the scenic countryside. The one-,
Pioneer Woods
FINANCIAL
Kris Wood
10-13A
two- or three-bedroom units feature central air conditioning, an in-home wash/dryer, 24- hour on-call emergency main- tenance, a deck or patio, fully- equipped kitchens and private entrances to select homes. Community features include maintenance-free landscaping, off-street parking, common green space, pet stations, two community playgrounds, a picnic area, and an outdoor BBQ and firepit.
12-13A
Rosedale Apartments
Rosedale Apartments, built in 1972 and featuring 160 units, offer a community in a quiet area minutes from downtown Hershey. One- and
two-bedroom apartments fea- ture central air conditioning, fully-equipped kitchens, and 24-hour on-call emergency maintenance. MAREJ
CONFERENCES 3 rd Annual Cannabis & CRE Conference April 24, 2025 8 th Annual Philadelphia Healthcare/Medical Properties Conference May 28, 2025 11 th Annual NJ Apartment & Multifamily Conference June 12, 2025 For speaking & sponsorship info., please contact: Lea at 781-740-2900 or lea@marejournal.com
Holland, Squires & Sweetwood arrange sale of 57-unit property in Summit, NJ Kislak sells The Parc at Summit for $22.15 Million and unit upgrades.
Located in the heart of Sum - mit, New Jersey, the property sits less than one-half mile from Summit’s vibrant and walkable downtown, which is listed on the National Register of Histor - ic Places. The city’s downtown is one of the most desirable in the tri-state area with a mix of local businesses, award win - ning restaurants, shops, and boutiques. The former Grand Summit Hotel, which is located next to the property, recently underwent a multimillion- dollar renovation and re-opened as the Albion Summit. The property is a short walk to the Summit Train Station, a hub for the Morristown and Gladstone lines that provide direct passenger service to and from New York’s Penn Station and the Hoboken Terminal. The property is less than one mile from Overlook Medi - cal Center, three miles from the Mall at Short Hills and 13 miles from Newark Lib - erty International Airport. It is minutes from highways and transportation. MAREJ .
Robert Holland
Jeff Squires
Joni Sweetwood
Directory
Spring Preview..........................................................3-9A Financial Featuring Appraisal................................10-13A Owners, Developers & Managers............................14-21 New Jersey featuring Southern NJ.........................24-31A CIRC Organization . ..................................................... 32A Pennsylvania......................................................... 34-39A People on the Move..............................................40-41A CRE Organization’s Events Calendar ............................ 44A www.marej.com
The Parc At Summit
not disclosed. Holland and Kislak also arranged the prior sale of the property to the seller. The sale is the largest mul- tifamily sale in terms of price and price per unit in Union County, New Jersey since 2022 and the largest multi - family sale in Summit in at least 10 years according to
data available from CoStar. Built in 1950, The Parc at Summit is a two-story brick, garden apartment complex with 57 units in five buildings on 3.34 professionally land - scaped acres. The property includes one- and two-bedroom units and three-bedroom town- houses and includes $1,500,000 in recent capital improvements
Inside Cover A — April 2025 — M id A tlantic Real Estate Journal
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M id A tlantic R eal E state J ournal Publisher, Conference Producer ..............Linda Christman VP, Conference Producer .............................Lea Christman Editor/Graphic Artist ......................................Karen Vachon Contributing Columnists .......................Richard J. DeMarco, AIA, MADGI Design; Becky McLaughlin, WithMe, Inc. Mid Atlantic R eal E state J ournal ~ Published Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 117 HMS Halsted Dr., Hingham, MA 02043 USPS #22-358 | Vol. 37, Issue 4 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage
Richard J. DeMarco, AIA
NYC commercial-to- residential feasibility C ommercial tenants cur- rently only use approx- imately 50% of their offices. Companies are either shrinking their space or not renewing their leases. To make matters worse, prior to the pan- demic, many owners of older, mortgage-free office buildings took out loans against the equi- ty. This leaves many landlords struggling to afford their mort- gages and desperate to either sell or find an alternative use. Converting a commercial building to a multi-family res - idential use potentially in- creases the revenues by 150%, providing a solution. Our firm is currently reviewing $2 billion worth of potential conversions for both current owners and potential buyers. The cost of converting large office towers ranges from $350 to $400 psf. In smaller buildings this might increase to $450 psf. Considering the current resi - dential rents, this means the buildings acquired for between $190/sf and $445/sf are viable for conversions.
REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Phone: 781-740-2900 www.marej.com
Commercial buildings con - structed between the 1920s and 1950s are particularly feasible, since many of these properties are less than two-thirds as profitable as they could be as residential buildings. Real estate tax abatements and the recent passage of NYC’s “City of Yes” law, also make this a good time to convert buildings. Currently, New York State real estate taxes are abated for 30 years, if a converted property contains at least 30% affordable housing units. The “City of Yes” is a mas - sive rezoning initiative that makes conversions easier by eliminating some of the burdens and restrictions in an effort to encourage the construction of affordable housing alongside market rate units. The initia - tive also rezoned Manhattan’s Midtown South section, opening
it to conversions. Developers are now permitted to build 20% more of a floor area and increase building heights to accommodate increased square footage of affordable units. Plus, zoning laws have been amended so that commercial properties that received a certificate of oc - cupancy prior to 1991 can now be converted to residential use amounting to 12 times of their lot area. This change adds ap - proximately 122 million s/f of commercial space eligible for conversions. Pre-1991 commercial prop - erties are usually overbuilt, meaning they are constructed to the sizes exceeding today’s zoning limits. Likewise, com - mercial buildings have a higher allowed floor area to height ratio than new multifamily buildings. That’s why the “City continued on page 16A
Firmly Rooted in the Law and in the Community We are well grounded in every facet of real estate law, from acquisition to construction. We are committed to serving the needs of our clients and our communities.
Contact: NEIL A. STEIN • nstein@kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-941-2469 • kaplaw.com Other Offices: • Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120 Kaplin Stewart Attorneys at Law
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S pring P review
By Meagan Kestler, Chatfield Green Roofing The Multifaceted Benefits of Green Roofing: A Smart Investment in Sustainability
G
reen roofing transforms ordinary rooftops into living ecosystems that
surrounding areas more com- fortable while reducing strain on air conditioning systems. Biodiversity & Green Space Enhancement In urban environments where natural habitats are scarce, green roofs create ecosystems for birds, pollinators, and ben - eficial insects. Even simple green roof systems support bio - diversity, providing stepping- stone habitats in concrete/pave - ment dominated landscapes. Additionally, they offer green spaces for urban dwellers, improving mental well-being and creating more aesthetically
pleasing cityscapes. Sustainability & Reusability Unlike traditional roofing that degrades over time, some green roof systems—such as those from Chatfield Green Roofing—are lightweight, low maintenance, non-biodegrad - able, and reusable. These systems can be relocated or re - purposed even after 10, 20, or 30 years, reducing waste and supporting long-term sustain- ability. This flexibility makes green roofs a future-proof in- vestment for building owners. Property Value Enhancement Buildings with green roofs
typically command higher mar- ket values and attract environ - mentally conscious tenants. Studies indicate properties with green roofs can see value increases of 11-25%, while green-certified buildings gen - erally enjoy higher occupancy rates and rental premiums of approximately 6%. Green roofing is more than an aesthetic enhancement—it’s a strategic investment in sus - tainability, cost savings, and building performance. From energy efficiency and environ - mental impact to stormwater management and extended
lifespan, the benefits are un - deniable. With innovations in lightweight, easy-to-install, and low-maintenance systems, integrating a green roof is now more accessible than ever. As society increasingly favors sustainable construc - tion and occupants demand greener buildings, green roofing is ready to meet these needs. To learn more about how Chatfield Green Roofing can help, contact us today! Meagan Kestler is the Sales & Marketing Coordi- nator for Chatfield Green Roofing. MAREJ
benefit build - ings, people, and the en- vironment. These sys - tems—fea- turing vege - tation grown on specially designed lay-
Meagan Kestler
ers—offer advantages beyond aesthetics. As climate concerns grow and sustainable building practices evolve, green roofs provide solutions to multiple challenges facing today’s build - ing owners and developers. From commercial skyscrapers to residential buildings, green roof technology has proven its value across diverse applications. Environmental Benefits & Stormwater Management Green roofs capture 70-90% of rainfall, significantly reduc - ing stormwater runoff in urban areas. This eases pressure on municipal water treatment drainage systems and helps prevent flooding. They act as air filters, with a 1,000 s/f in - stallation capturing 40 pounds of particulate matter annually while converting carbon diox - ide into oxygen, improving lo - cal air quality and supporting carbon reduction goals. Energy Efficiency & Cost Savings The insulation provided by green roofs delivers measur - able energy savings. Buildings equipped with these systems typically reduce cooling needs by 25-50% in summer and heat loss by up to 25% in winter. These reductions are one rea - son why green roofs are a cost- effective long-term investment. Extended Roof Lifespan By protecting waterproofing membranes from UV radiation, physical damage, and tem- perature fluctuations, green roofs can double or triple the lifespan of conventional roofs. While traditional roofing lasts 15-20 years, roof membranes utilizing green roofs can per - form effectively for 40-50 years, reducing replacement costs and construction waste. Urban Heat Island Mitigation Green roofs help counteract the urban heat island effect through evapotranspiration and reduced heat absorp - tion. Surface temperatures of green roofs can be up to 80°F cooler than traditional roofing, making buildings and
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S pring P review
Resilience emerges amid market volatility and shifting trade policies WCRE First Quarter 2025 Report: CRE Markets Holds Ground Amid Economic Shifts
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to 2024 and signs of resilience despite persistent headwinds. Transaction volumes and asset valuations remain under pressure due to elevated fi - nancing costs and tight credit conditions. Yet, core fundamen - tals are beginning to stabilize, supported by a solid macroeco - nomic backdrop and a notice - able shift in investor strategies. In Q4 2024, real GDP grew at an annualized rate of 2.4%, driven by robust consumer spending and a resilient labor market. Although inflation - ary pressures have resulted in higher delinquency rates
and tempered consumer ac- tivity, household finances remain relatively steady— supporting demand across several CRE sectors. Looking ahead, 2025 presents both opportunities and uncer - tainties. The aftermath of the 2024 election brings potential policy shifts in areas such as regulation, taxation, trade, and immigration-all of which could significantly influence CRE dynamics. While short-term expectations include continued inflation and moderate growth, longer-term proposals like tax cuts and regulatory easing may
spur economic activity and boost demand. Supply-side risks are also in focus. Potential tariffs could raise material costs and disrupt construction supply chains, while stricter immigration poli- cies may worsen labor short - ages in the building trades-par - ticularly in the multifamily and industrial sectors. Combined with elevated borrowing costs, these pressures are likely to suppress new project starts in the near term. Despite these challenges, in- vestor sentiment is improving. A recent global CRE survey
indicates that 70% of investors plan to increase capital de- ployment in 2025, with strong interest in multifamily, indus- trial, healthcare, and logistics properties. Value-add and core-plus investment strategies are gaining traction as inves - tors seek steady returns amid market volatility. “The commercial real estate industry is showing signs of adaptability and resilience,” said Jason Wolf , managing principal of WCRE. “While challenges remain, there is clear opportunity for those who stay agile, data-driven, and aligned with long-term trends in demographics, technology, and sustainability.” Select highlights from the report: • With the “flight to quality” trend driving leasing activity, the office sector continues to show signs of long-awaited stabilization. • Regional developers and private buyers dominated the Philadelphia retail sales mar - ket as the ongoing impact of high interest rates, coupled with economic uncertainty, kept large institutional inves - tors on the sidelines. • Retail fundamentals across New York remained resilient through Q1 2025, though the sector now faces headwinds from a rising wave of retailer bankruptcies and large-format store closures. • Southern NJ’s industrial sector entered 2025 with mo - mentum, particularly in Bur - lington County where leasing surged, pushing net absorption to 3.1 million s/f compared to the 1.9 million s/f of newly de - livered space. • For the first time in five years, the Philadelphia of - fice market has experienced positive annual net absorption, with tenants occupying 1.1 mil - lion s/f over the past year The quarterly report also covers notable transactions across property types and markets. For the first quarter, these include: • Faropoint acquired a portfolio of 10 fully occupied industrial properties across Northern NJ, totaling 770,000 s/f, for $144.5 million at a 6.7% cap rate. These properties, which were primarily built in the 1970s, are valued based on their strategic positioning and abundant parking. • The trend of owner-user continued on page 30A
ARLTON, NJ — WCRE CORFAC International
(WCRE) has released its Q1 2025 Mar - ket Report, offering in- sights into the state of the commercial real estate (CRE) sector
Jason Wolf
as it navigates a complex eco - nomic and policy environment. The report reflects a market entering Q2 with cautious opti - mism, buoyed by a strong finish
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S pring P review By Michael Mullin, Integrated Business Systems, Inc. Material Misrepresentation: A Cyber Insurance True Story
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answer, and Travelers could not prove their compliance. This turned out to be a signif - icant error with long-ranging financial implications. The Power of Preparedness Reflecting on the ICS ordeal, a question arises: How truly prepared are we? The chal - lenge lies not only in imple- menting policies but also in ensuring procedural fidel- ity . Could regular checks and balances provide that coveted peace of mind? What strategies can we employ to enhance not only the accuracy of our applica- tions but also the resilience
of our systems? What if our cyber defenses included a methodology that consistently and regularly measures internal policies against our cyber insurance requirements? What if we could quickly adapt to new threats, require- ment changes, and real-world scenarios through our ongoing checks and balances? Beyond the Surface: Getting and Keeping Your Coverage We’ve seen it happen when well-meaning insurance advi - sors suggest that “yes” is the right answer to every question asked in the cyber insurance
application process. Not so.
to the cost of implementing the policies and procedures, the technological solution, or both, including an assessment of the potential costs if you are the victim of a cyberattack. In most cases, the cost of im - plementing a cybersecurity so - lution will be significantly less than the cost of self-funding recovery from a cyberattack. All the Last Details Here’s what happened: Trav - elers Property Casualty Compa - ny of America filed a complaint in federal court for rescission and declaratory relief against its insured, International Control continued on page 7A
s the financial leader of an organization, you’ve likely always trusted in
The correct answer is the accurate one; otherwise, you risk being denied coverage due to the dreaded phrase that Travelers has heard too many times: material misrepresen- tation. The finding was that their assertion that they had MFA in place was a material representation that made it possible for Travelers to deny their claim definitively. Suppose the accurate answer will cause your premium to be higher. In that case, you’ll need to evaluate whether the higher price is worth paying compared
predictabili - ty. Numbers do not de- ceive—they exist, telling their story with stark honesty. But what h a p p e n s
Michael Mullin
when the variables are as un - predictable as a cyberattack or a compliance misstep? Imagine, for a moment, the intricate network of our systems, each aspect relying on the others to remain functional. Now, imag - ine a single, overlooked error, a missed digit, an unchecked box. This case involving Travelers Insurance and ICS struck a far- reaching chord with both large and small businesses, illustrat - ing how a single “yes” answer on the cyber insurance application triggered a cascading impact, ultimately resulting in not only a denied claim but also a lawsuit and the rescission of the entire cyber insurance policy. Today’s fact: Cyber insurers lost money until they changed three key aspects: their appli- cation questions, compliance requirements, and the level of scrutiny they applied to the first two in the event of a claim. Guess which one bit Travelers Insurance? Reading Between the Lines The courtroom drama sur - rounding the Travelers/ICS matter reveals a simple yet daunting truth: accuracy is paramount when dealing with cyber insurance. Here lies the paradox: While your team may believe the answers they provided in the initial cyber insurance application or the renewal process are accurate, the finer details of your cyber defenses demand thorough inspection, as that is where the actual risks often lurk. The most critical piece is this: what your company states in the initial or renewal applica- tion must remain valid for the life of the policy, and you must be able to prove your compli - ance on demand as long as the policy remains in force. And if you have a cyber insur - ance claim, the most critical piece is the PROOF piece. Travelers said they had multi-factor authentication in place for all critical sys- tems. This was an inaccurate
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S pring P review By Andrew J. Solano, Emtec Consulting Engineers The Future of AEC: Sustainability, AI, and Collaboration
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he AEC industry is evolving, and sustain - ability, artificial intel -
enhance coordination are transforming the space. By automating complex calcula- tions and processes, AI en - sures efficiency and improve - ments to provide successful solutions. For instance, heat pumps and/or microgrids are precise and adaptable, help - ing the industry meet infra- structure needs, tight time- lines all while maintaining quality. This technology will continue to drive innovation in all facets of organizations. Collaboration: The Foundation of Success We like to Keep it Simple at Emtec, we see collabora - tion and communication aa the industry’s backbone, ensuring complex projects succeed. As buildings in - corporate advanced sys - tems like solar arrays or rainwater harvesting, open dialogue among architects, engineers, contractors, and utilities align priorities and prevent costly rework. Coor - dinated efforts produce clear engineering drawings for heating, electrical, plumb - ing, and safety systems, simplifying construction and ensuring reliability. It’s crit - ical that all trades, partners, stakeholders collaborate early and often with mutual focus on delivering solutions that perform smoothly and conserve resources. As proj - ects grow more intricate, teamwork will be critical to integrating sustainable technologies and achieving durable, cost effective, high- performing buildings. The AEC industry’s future lies in harnessing sustain- ability, AI, and collabora - tion. These trends will create buildings that thrive and are efficient, healthy, built to last. Stakeholders across the in - dustry can embrace this vision to shape a better tomorrow. Andrew J. Solano, with over 15 years experience at Emtec Consulting En- gineers, serves as man- aging partner, driving the firm’s operations and growth into the preferred trusted partner in MEP Engineering. Putting emphasis on strategic leadership, strong cli- ent relationships, build- ing a great team, and delivering high-quality engineering services, with plans for continued expansion. MAREJ
Powering Efficient Buildings Sustainability continues to reshape the industry by prioritizing improved energy efficiency to meet stringent regulations and enhance oc- cupant health. High-impact Energy Conservation Mea - sures (ECMs) are leading the charge, integrating systems like efficient heating and ventilation (e.g., geother - mal, heat pumps and energy- recovery ventilators, etc.) to optimize air quality and cut energy use. Advanced electrical designs (e.g., solar panels, battery storage and
High-impact Energy Conservation Measures are leading the charge, integrating systems like efficient heating and ventilation to optimize air quality and cut energy use.
ligence (AI), and collabo - ration are set to define its future in 2025 and 2026. These forces will drive build - ings that are
microgrid(s), etc.) deliver renewable power and reduce waste. Plumbing innova - tions (e.g., rainwater har - vesting and high efficiency condensing boilers) conserve resources and lower costs. These technologies (ground- source heating, photovoltaic arrays, localized grids) can slash operating costs, align with efficiency standards,
create healthier spaces, set- ting a new benchmark for improving buildings. AI is revolutionizing indus - tries on a greater scale, it will undoubtedly affect the AEC field by enabling smarter, faster design processes. Tools that analyze energy flows, optimize system sizing, and Redefining Design Efficiency with AI
Andrew J. Solano
more efficient, resilient, and responsive to global chal - lenges, transforming how we design and construct for lasting impact.
M id A tlantic Real Estate Journal — Spring Preview — April 2025 — 7A
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S pring P review
By Jonathan Glick and Josh Glussky, Sheldon Gross Realty New Jersey’s Warehousing Market: Current Trends and Insights
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ew Jersey’s warehous - ing market – it’s nev - er, ever dull. If you’re
versus actual offers has been decidedly skewed. This discrep - ancy is primarily attributable to the after- math of the recent elec- tions and on- going uncer- tainty related to tariffs and global trade policies. Once these factors stabilize, expect demand for larger spaces to rise. A significant challenge – and one that won’t be solved by a recovery of overall demand – is the oversupply of class A Josh Glussky
warehouse space. To stay com - petitive, owners are offering substantial rent concessions and tenant improvements as they attempt to meet their ask- ing rental rates. This dynamic is further complicated by older properties, on which rental rates have been slashed by about 10 to 15%. Sales Demand for warehouse space on the sales side con- tinues to be strong across all size ranges, though supply is quite limited. Prices are remaining firm, and many transactions are closing near or even at replacement value.
We’re consistently seeing sell - ers willing to hold out for closer alignment with their asking price … and for the most part, this is proving to be an effective strategy. Office Space With office space, sales and leasing transactions continue to be few and far between. There’s simply little growth in the sector – in fact, there’s been a noticeable slowdown. Demand is stagnant. Industrial Outside Storage In recent years, the single most significant shift in the warehousing market has been the rise of IOS. This sector is
currently performing robustly, particularly with sales. This is particularly true with properties that offer the right zoning, par - cel configuration, and access to major trucking routes. However, leasing IOS spaces has become more challenging – even more so with large sites for which secur- ing financially stable tenants is difficult. Still, rental prices for IOS properties continue to be strong and should retain their value in the near term. Jonathan Glick is execu - tive VP and Josh Glussky is corporate sales repre- sentative at Sheldon Gross Realty. MAREJ
Services, Inc. (ICS). The lawsuit was dismissed, with judgment entered in favor of Travelers, af - ter ICS agreed to allow the court to issue a judgment rescinding the policy. In other words, ICS ended up with no cyber insurance policy and 100% on the hook to pay ev - ery cost associated with recovery from their ransomware attack. All because they allegedly “materially misrepresented” the extent to which they had implemented multi-factor au- thentication. Inviting Reflection and Action As you consider your cyber in - surance status and the need to not only remain compliant but also demonstrate compliance, consider aligning your business with an external third party. Such a relationship can help you navigate the increasingly complex waters and be an asset to you should you ever have a challenge to your insurability. One thing is for certain: the steps needed to obtain a cyber insurance policy and maintain a cyber insurance policy are not going to get any easier. Michael Mullin is presi- dent Integrated Business Systems, Inc. MAREJ continued from page 5A A cyber insurance true story . . . With larger spaces, however, there’s a different trend. Supply is ahead of demand, and the number of property showings searching for a word to describe it, “dynamic” is probably accurate, whether we’re talking about sales, leasing, or even the growing demand for industrial outside storage (IOS). Here’s a look at how we view the current warehousing mar- ket, divided into four sectors. Leasing With warehouse leasing, we’ve observed some interest - ing shifts, with particular em- phasis on private owners. For small bay, industrial spaces (1,500 to 20,000 s/f), demand is outpacing supply. And while rental rates have stabilized, tenants are still benefiting from incentives like free rent and tenant improvements. Jonathan Glick
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The information contained herein has been obtained from sources considered reliable, but no guarantee of its accuracy is made by this company. Subject to errors, omissions or withdrawal without prior notice.
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S pring P review By Joe Betesh, Premier Centers The Great Retail Reset: Experience & value will define winners
T
he future of retail real estate isn’t just chang - ing. It’s dividing.
The winners in this new landscape understand a fundamental truth: Con - sumers want either excep- tional VALUE or exceptional EXPERIENCE. Nothing in between survives. This bifurcation is reshap - ing retail real estate as we know it. The value players (Costco, TJ Maxx, Dollar General) continue expanding their physical footprints. Why? Because discount shopping remains a treasure hunt – an experience that doesn’t translate digitally.
Finding that bargain cre - ates dopamine. It’s biology, not retail strategy. At the other end, premium experience-driven retailers are thriving. Apple Stores generate more revenue per square foot than any other retailer because they’re not stores – they’re temples of innovation where consum - ers worship at the altar of aspiration. Lululemon doesn’t just sell overpriced yoga pants; they sell community and identity. The store is merely the physical manifestation
of that promise. The implications for retail real estate are profound: Location premium is invert - ing. Suburban and exurban locations with strong demo- graphics are outperforming traditional urban centers. Re - mote work has redistributed spending power away from central business districts. Size flexibility matters. The most innovative retailers are experimenting with format. From micro-stores to flag- ships, the rigid box mentality is dead. Retail spaces must adapt to community needs.
Tech integration is non-ne - gotiable. Smart retail spaces blend digital and physical seamlessly. The store of the future knows who you are when you walk in and what you want before you do. Mixed-use will dominate. The most valuable retail real estate will be embedded in ecosystems where people live, work, and play. Stand - alone big boxes? Dinosaurs awaiting extinction. The mall as we knew it is over. But community gathering spaces are eternal. What does this mean for investors, developers, and retailers? First, bet on extremes. Ei - ther pristine locations that command premium rents from experience-driven retailers or value-centered locations with strong traffic patterns. Second, flexibility is curren - cy. Lease structures, space configurations, and tenant mixes must evolve more rap- idly than ever before. Third, community integra - tion is essential. Retail spaces must serve genuine commu - nity needs beyond commerce. The retailers who will flourish understand their role isn’t selling products – it’s delivering solutions to human problems. The real estate that hosts them must facilitate this mission. Success in retail real es - tate now requires asking different questions: Not “How many square feet do you need?” but “What experience are you creating?” Not “What’s your mer - chandise mix?” but “How does your physical space complement your digi- tal presence?” Not “What’s the foot traf - fic?” but “What’s the community engagement?” The future belongs to those who recognize that retail real estate isn’t about buildings. It’s about build - ing relationships between brands and humans. The middle is evaporat - ing, but the extremes are expanding. Your strategy must pick a lane. Value or experience. Choose wisely. Joe Betesh is princi- pal of Premier Centers. MAREJ
Let’s be clear: physi- cal retail isn’t dead – medio- cre retail is. The pan - demic didn’t create new consumer behaviors;
Joe Betesh
it accelerated existing ones. What would have taken a decade happened in months. The weak were exposed, the strong strengthened.
M id A tlantic Real Estate Journal — Spring Preview — April 2025 — 9A
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10A — April 2025 — Financial — M id A tlantic Real Estate Journal
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F inancial $58M Freddie Mac LIHTC forward loan secured Merchants Capital secures $120M for mixed-use dev.
JLL Capital Markets finances Pittsburgh CBD office tower
N
EWARK, NJ — Mer- chants Capital an- nounced $120 million
in financing for the con- struction of M u s e u m Parc, a 250- unit mixed- i n c o m e , mixed-use and retail de- velopment in
Michael Milazzo
One Oxford Centre aerial
downtown Newark. The devel - opment will integrate housing units with the 4,120 s/f Newark Museum of Art (NMOA) gallery and 2,300 s/f of ground-floor retail space, serving as an anchor to the Newark Arts & Education District. Merchants Capital secured $58 million, comprising a Freddie Mac 9% Low-Income Housing Tax Credit (LIHTC) Forward permanent loan and a $62 million construction loan from Merchants Bank for Museum Parc. “This deal represents Mer - chants’ streamlined internal collaboration, and we are proud of the efficiency dem - onstrated across the organi- zation to arrange key com - ponents in the capital stack,” said Michael Milazzo , senior vice president of Origina - tions at Merchants Capital. “Likewise, Museum Parc is a unique concept, representing the innovative ways our part - ners are providing affordable housing solutions nationwide. We look forward to witnessing its impact in Newark.” Of the 250 apartments, 20 percent will be income re - stricted. Forty-five units will
is an iconic class A, trophy asset. Since the pandemic, the building has been challenged in terms of occupancy levels. This new team’s commitment and financial wherewithal to the asset will undoubtedly drive One Oxford Centre’s oc - cupancy levels back to the 90% range. In fact, once it became public that Aaron Stauber was leading the team that was acquiring the asset, several existing tenants have already exercised lease renewals.” In addition, JLL Capital Markets has arranged con - struction financing for Liberty Storage Center, a 103,530 s/f, to-be-built self-storage facility in Jersey City, New Jersey. JLL worked on behalf of the borrower, Tulfra Realty Company , to secure the con- struction loan with Fulton Bank, NA . The property will be leased and managed by Public Storage. Liberty Storage Center is located at 300 McGovern Dr. in the southern portion of Jersey City, the second most populous city in New Jersey. Upon completion, Liber - ty Storage Center will be a six-story building with 795 climate-controlled units aver - aging 77.3 s/f each. The ground floor of the building will feature 30 covered parking spaces. JLL’s Capital Markets Debt Advisory team representing the borrower was led by se - nior managing directors Jon Mikula and Michael Klein and VP Ryan Carroll . “Self-storage continues to be one of the most resilient asset classes and has seen a surge in demand over the last few years,” said Mikula. “As a result, lender inter - est was strong, particularly given Liberty Storage Cen - ter will benefit from the undersupply of self-storage in the growing Jersey City market and the strong de- mographics surrounding the property.” MAREJ
PITTSBURGH, PA — JLL Capital Markets announced that it has arranged a note-on- note financing for One Oxford Centre, a trophy class A office tower totaling 1.03 million s/f in the heart of Pittsburgh’s central business district. Working on behalf of the borrower, led by Aaron Stau- ber , president of Rugby Re- alty , and a group of local investors, JLL placed the three-year acquisition loan with Dollar Bank . One Oxford Centre is located at 301 Grant St. and occupies two city blocks between Grant and Smithfield Streets. The 45-story office tower is cur - rently 65% leased to a mix of office and ground-floor retail tenants, including PWC, Clark Hill and Pietragallo Gordon Alfano Bosick & Raspanti law firms. Amenities at the tower include The Rivers Club, a full- service health/business club and a multi-level, 850 space parking garage. The JLL Capital Markets Debt Advisory team represent - ing the borrower was led by executive managing director John Pelusi , senior manag- ing director Claudia Steeb , senior managing director Nick Unkovic and Zach Barone . “Our team has been involved with One Oxford Centre since 1982, having arranged the debt and equity financing for its con - struction, refinancing it several times over the years, and then selling it to Shorenstein in 2016 and arranging the financing on their behalf,” said Pelusi. “We were pleased to secure this transaction on behalf of a buyer team that truly has a demonstrated commitment to the City of Pittsburgh. The Rugby team has an impressive portfolio of local CBD office properties along Grant Street and its suburban office prop - erties, including Foster Plaza and Cherrington, along the Parkway West Corridor,” add - ed Pelusi. “One Oxford Centre
Museum Parc
be affordable to households earning 50 percent of AMI and the remaining five will be reserved for households earn - ing 30 percent of AMI. The development is designed to foster community and con- nection to NMOA via indoor and outdoor space. It will in - clude a six-story building and a 12-story structure, housing, a fitness center, co-working space, lobby, bicycle room, game room, lounge and speak- easy, as well as a 3,000 s/f roof terrace accessed through the garden room and commercial kitchen area. Museum Parc is co-devel - oped by LMXD and MCI Collective . As the mixed- income and market-focused member of the L+M family of companies, one of the nation’s leading builders and devel - opers of affordable housing, LMXD focuses on culture, community and sustainability in the Northeast and across the country. Urban revital - ization firm MCI Collective
delivers quality housing and retail by reimagining urban spaces, with an emphasis on arts and culture to enhance design and value. “Museum Parc will help an - chor the Newark Arts & Edu - cation District by providing much-needed mixed-income rental housing, the expansion of the Newark Museum of Art, and ground-floor retail to activate the streetscape,” said Jake Pine , managing director at LMXD. “We are grateful for our partners at Merchants Capital for helping make this project happen.” “This project wouldn’t be possible without a top-tier partner like Merchants Capi - tal, whose expertise brought our vision to life,” said Siree Morris , managing partner at MCI Collective. “It’s a game-changer for Newark, strengthening arts and cul- ture while supporting the Newark Museum.” Museum Parc is expected to be completed by 2027. MAREJ Beach Gardens, Florida. “Looking back to day one in 2015, we are humbled by all our accomplishments and inspired by the loyal partner - ships built over the years,” said co-owners Turchi and Duffield. “In approaching this anniversary, we reflect on the countless friendships developed among colleagues and customers. We are truly grateful for every affiliation. Regardless of each milestone – past and future – there is one constant. NITA is a fam - ily that together uplifts our clients and one another. We look forward to doing so for many years to come.” MAREJ
NITA marks 10 years under the leadership of Fran Turchi and George E. Duffield Sr.
MARLTON, NJ — Nation- al Integrity Title Agency (NITA) celebrates 10 years of providing full-service title insurance and settle- ment agency for commercial and residential real estate throughout the region and beyond. Initially founded in 1992, partners George Duff - ield Sr. and Fran Turchi took the helm in March 2015 with clear goals and a passion for the industry. Cutting-edge technology, top-tier customer assistance and innovative, engaged title professionals have contributed to strong, long-term relationships and the ultimately success of the
company. Today, NITA has grown to more than 40 team members and expanded be - yond its traditional Greater Philadelphia roots to Palm Fran Turchi & George Duffield Sr.
M id A tlantic Real Estate Journal — Financial — April 2025 — 11A
www.marej.com
F inancial
Several large investors fully subscribed the latest $45M offering immediately Calvert Impact’s Cut Carbon Note Program surges past $100M with institutional backing
B
partnerships officer of Calvert Impact, noting the offering was fully subscribed immediately. “Within the past five months, we’ve doubled the Cut Carbon portfolio to $100 million and the impact continues to grow.” Sixty percent of the projects in the Cut Carbon Note portfolio go beyond standard Commercial Property Assessed Clean En - ergy (C-PACE) requirements and meet the new CIRRUS Low Carbon Standard developed by PACE Equity and the New Buildings Institute . The cumulative impact is now expected to save over 206,000
metric tonnes of carbon and $69 million in energy costs over the weighted average life of portfolio projects, along with ap- proximately 181 million gallons of lifetime water conservation. “All of this impact is addi - tive,” said Beau Engman , founder and president of PACE Equity, the originator of the financing to the C- PACE projects. “This means that we’ve been able to work with developers to make en - ergy efficiency and renewable upgrades that would not have happened otherwise.” Though this latest issuance
was purchased by institution - al investors, the Cut Carbon Note program has over 100 investors and is accessible to both individuals and in - stitutions starting at $1,000 in brokerage accounts. The product is ultimately expect- ed to grow to $400 million, and Calvert Impact plans to announce future issuances of the Cut Carbon Note in coming months. The program won the 2024 Grunin Prize for Law and Social Entrepre - neurship for its innovation, impact, and scalability. Calvert Impact Climate,
ETHESDA, MD — Cal- vert Impact announced the closing of the third
Inc. , a subsidiary of Calvert Impact, Inc., is the issuer of the Cut Carbon Notes. The Notes are an asset- backed security and will be issued by and payable exclu - sively from the assets of Calvert Impact Climate, Inc., a special purpose vehicle. InspereX LLC serves as lead agent on the Cut Carbon Note and US Bank Trust Company serves as in - denture trustee and custodian. Morgan, Lewis & Bockius LLP, Warner Norcross + Judd LLP, Husch Blackwell, and Mayer Brown serve as counsels on the program. MAREJ
issuance of its Cut Carbon Note ® , with large invest - ments from an insurance c ompany , two pension funds, and an advisory firm.
Beau Engman
Eastern Union obtains $10.965M to refinance 71,000 s/f “We’re thrilled to see this product resonating so strongly with institutions,” said Justin Conway, chief product and This brings the Notes - an investment-grade fixed-income product that finances sustain - ability upgrades for commercial and multifamily buildings - to more than $100 million.
Flexible Capital Solutions for Commercial Real Estate Projects ACCOMPLISH MORE
The BLVD rendering NEWARK, NJ — East- ern Union has arranged a $10.965 million loan to refi - nance construction of a 71,000 s/f, mixed-use property in the Central Ward of Newark. The mortgage was secured by company vice president Chaim Greenfield and loan originator Joseph Sasson . Alex Jaffa served as under - writer for the transaction. The refinancing carried a 24-month term with interest- only payments throughout that period. The interest rate was not disclosed. The borrower was Mid-At- lantic Investment Alliance , a real estate company special- izing in urban redevelopment projects in both established and reemerging locales. “Eastern Union worked diligently to structure a transaction that positioned the borrower to attract good financing,” said Greenfield. “We overcame challenges associated with today’s eco - nomic environment and we successfully negotiated good terms for our client.” MAREJ
Stephen Arrivello sarrivello@pace-equity.com
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