Campbell with Cushman and Wakefield served as listing broker Duke Realty developing 615,600 s/f build-to-suit warehouse inMyerstown, PA



for efficiently serving our 16 regional distributions centers via its proximity to I-81, I-78 and I-83. The site was pad- ready which expedited the building’s delivery. We are extremely pleased with the results and our partnership with Duke Realty.” The new building, which will be known as Central Logistics Park 100, is located at 100 Fort Motel Dr. in My- erstown. Max Finkelstein’s new building includes 7,000 s/f of office space and incor - porates 45' clear height and LED lighting. The remain- ing acreage on the site can accommodate additional de- velopment of up to 584,820 s/f Vincent Ranalli with CBRE represented Max Finkelstein, Inc. in the trans- action while Duke Realty was represented by listing broker Adam Campbell with Cushman and Wake- field and Scott Henderson, SIOR and Caitlin English with Duke Realty. MAREJ

YERSTOWN, PA — The Pennsylva- nia office of Duke

Realty Cor- pora t i on , one of the leading do- mestic only, pure-play lo- gistics prop- erty REITs (Real Estate Investment

Adam Campbell

Trust) in the United States, announced that progress on the 615,600 s/f, build-to-suit warehouse for Max Finkel- stein, Inc., one of the nation’s largest independent, family- owned wholesale distributors of passenger and light truck tires, is on schedule with de- livery expected in the spring of 2020. The building is being constructed on part of a 132- acre parcel less than 10 miles east of the split between I-81 and I-78 in Berks County, PA, at the western edge of the Le- high Valley submarket. “Max Finkelstein has been

Central Logistics Park 100

in business for more than 100 years and has operations throughout the Northeast and Mid-Atlantic States. We are excited to deliver a new, cus- tom-designed, state-of-the-art facility that will be a core com- ponent in their supply chain,” said Art Makris , senior vice president for Duke Realty in the Northeast region of the United States. “This new facility incorporates modern features, including increased clear heights, enhanced light- ing and a state-of-the-art fire protection system, which will

provide them with enhanced storage and warehouse ca- pabilities, along with a safe operating environment.” “Designing a state-of-the- art, purpose-built warehouse to serve as the hub of our distribution center network, meeting all of our specific requirements, is critical to our growth.” said Sean Fran- ciscus, chief operating officer with Max Finkelstein. “We selected Duke Realty due to their ability to deliver a facil- ity with all of the features we need and in the ideal location


UPCOMING CONFERENCES 6 th Annual NJ Industrial Development Conference September 2, 2020 6 th Annual NJ CRE Leadership Honoring Women in Real Estate September 9, 2020 5 th Annual PA Healthcare & Medical Conference For speaking and sponsorship info., please contact: Lea at 781-740-2900 or lea@marejournal.com

Brennan Investment Group acquires Lehigh Valley 380,274 s/f 3-building industrial portfolio

LEHIGH VALLEY, PA — Brennan Investment Group announced the ac- quisition of a three-building industrial portfolio, totaling 380,274 s/f located in the Le- high Valley. The buildings are 100% leased to five tenants. The portfolio is located in the

Directory ROP (Front Section) .................................... Section A Contributing Columnist ........ Scott R. Saunders, Asset Preservation, Inc. IRS Notice Extends 1031 Exchange Deadlines . ...... 2A Creative Financing ............................................ 5-13A CIRC.................................................................... 16A Business Card Directory & Billboard Directory ..... 15A New Jersey.......................................................1-12B Pennsylvania .................................................13-BC B www.marej.com

folio's location provides access to all major thoroughfares, including Rtes. 22 and 23, as well as I-78 and I-476. "The I-78/I-81 Industrial Corridor has strong funda- mentals, with 1.6 million s/f of positive net absorption year- to-date and an occupancy rate of 94%," said Chris Massey , managing principal at Bren- nan Investment Group. "We are excited to add this invest- ment to our Northeast portfo- 100 Cascade Dr., Allentown, PA

I-78/I-81 Industrial Corridor, one of the most sought-after locations in the Northeast for logistics having direct access to NewYork and Philadelphia. The portfolio is in close prox- imity to the new $335 million FedEx Ground hub which will be the largest FedEx facility in the U.S. The buildings are also adjacent to Lehigh Valley International Airport, where Amazon will build a new hub for consumer goods. The port-

lio, which is now approaching five million s/f in 14 submar - kets throughout this region." "This acquisition demon- strates Brennan's capabil- ity to acquire assets below replacement cost in strong infill locations while support - ing our objective of delivering strong risk adjusted returns to our investors," said Michael Brennan , chairman andman- aging principal at Brennan Investment Group. MAREJ

Inside Cover A — June 12 - 25, 2020 — M id A tlantic Real Estate Journal


M id A tlantic Real Estate Journal — June 12 - 25, 2020 — 1A








2A — June 12 - 25, 2020 — M id A tlantic Real Estate Journal WE FIX: CRAWLSPACES


M id A tlantic Real Estate Journal

M id A tlantic R eal E state J ournal Publisher, Conference Producer . .............Linda Christman AVP, Conference Producer ...........................Lea Christman Publisher ........................................................Joe Christman Editor/Graphic Artist..... .................................Karen Vachon Contributing Columnists .............Scott R. Saunders, Asset Preservation, Inc. Mid Atlantic R eal E state J ournal ~ Published Semi-Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 350 Lincoln St, Suite 1105, Hingham, MA 02043 USPS #22-358 | Vol. 32, Issue 11 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Phone: 781-740-2900 | Fax: 781-740-2929 www.marej.com



Scott R. Saunders

IRS notice extends 1031 Exchange deadlines

Symptoms of a Crawlspace Problem

• Rising Odors • Mold • Rotting beams

• Higher Cooling or Heating Bills • Cold Floors • Termites or Ants

I RS announces extensions for Section 1031 “like- kind exchange” deadlines (COVID-19). Notice 2020-23, released by the IRS in the af- ternoon of April 9, 2020, ampli- fies and significantly expands the relief previously provided in Notice 2020-18 and Notice 2020-20 in response to the coro- navirus (COVID-19) pandemic. You are welcome to include this article in your publication if you feel it would be of value to your readers. Many real estate investors seeking tax deferral in a 1031 exchange or contemplating a sale of an investment property in the near future and intend- ing to perform a 1031 exchange have been anxiously awaiting guidance from the IRS on the impact of the COVID-19 pan- demic on the time deadlines in an exchange. On April 9, 2020 the IRS issued Notice 2020-23. This Notice extended many deadlines for real estate inves- tors affected by the COVID-19 outbreak including Section 1031 exchange time deadlines.

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This Notice provides that any person performing a time- sensitive action listed in either § 301.7508A-1(c)(1)(iv) of the Procedure and Administrative Regulations or Revenue Pro- cedure 2018-58, 2018-50 IRB 990 (December 10, 2018), which is due to be performed on or after April 1, 2020, and before July 15, 2020 (Specified Time- Sensitive Action), is an Affected Taxpayer. This includes the 45- Day Identification and 180-Day Exchange Period deadlines in both deferred and safe-harbor reverse 1031 exchanges. Therefore, pursuant to No- tice 2020-23, if the end of an investor’s 45-day Identification Period or 180-day Exchange Pe- riod in a deferred exchange or

the parallel periods in reverse exchanges under Revenue Pro- cedure 2000-37 falls between April 1 and July 15, the appli- cable period is automatically extended to July 15, 2020, un- less the investor chooses to opt-out of the extensions. Real estate investors who choose to opt-out of these extensions should notify their qualified intermediary (QI) in writing as soon as possible. In the absence of further IRS guidance, only deadlines currently scheduled to occur between the dates of April 1 – July 15, 2020 are extended. Notice 2020-23 does not ad- dress deadlines that fall before or after this specific time period continued on page 14A



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M id A tlantic Real Estate Journal — June 12 - 25, 2020 — 3A


M id A tlantic R eal E state J ournal

4A — June 12 - 25, 2020 — DelMarVa — M id A tlantic Real Estate Journal


D el M ar V a

ILMINGTON, DE — CBRE has ar- ranged for the sale Kranzel, Fahey, Hannan and Corcoran market building on behalf of the previous owner CBRE arranges sale of 207,000 s/f class A office building in Wilmington, DE W

the long-term home of the US Bankruptcy Court, along with being an outstanding value-add opportunity at 67% occupancy," said Jerry Kran- zel, senior vice president at CBRE. "Ultimately, we were extremely fortunate to select Chopp Holdings as our buyer, as they performed perfectly despite all of the current chal- lenges in closing transactions." 824 North Market, which boasts 44 parking spaces, was 67% occupied at the time of sale. MAREJ Divaris' Hampton Roads office completes leases and a land sale of six acres VIRGINIA BEACH, VA — D ivaris Real Estate, Inc. (DRE) announced the completion of transactions in Hampton Roads. Corporate Park Associates 8, LC purchased six acres of land located at 220 Corporate Blvd. in Norfolk from FHC Property Holdings, LLC for $2.25 million. V ivian Turok and Jason Oliver repre- sented the buyer in the sale. Corporate Park Assoc. 8 is an affiliate of Robinson Develop - ment Group. Tidewater Physicians Mul- tispecialty Group leased 6,211 s/f of medical office space in the Divaris-leased Harbour Breeze Professional Center, Building 5, located at 1500- 1540 Breezeport Way in Suf- folk. Krista Costa and Ni- cole Campbell represented the landlord in the lease ne- gotiations. The LAB leased 2,375 s/f of industrial space located at 1009 Scenic Pkwy. in Chesa- peake. Costa and Campbell represented the tenant in the lease negotiations. AMG National Trust Bank leased 1,970 s/f of office space in the Divaris-leased Wind- wood Centre located at 780 Lynnhaven Parkway in Vir- ginia Beach. Elizabeth Paas- ch represented the landlord in the lease negotiations. Harvesttime Office Fur- niture renewed its lease for 1,007 s/f of office space in the Divaris-leased Harbour Breeze Professional Center, Building 5 located at 1500- 1540 Breezeport Way in Suf- folk. Costa and Campbell rep- resented the landlord in the lease negotiations. MAREJ

office building is located in the heart of the Wilmington CBD directly across from Wilming- ton’s US District Courthouse. Currently, 62% of 824 North Market’s existing occupancy is General Services Administra- tion tenants, anchored by the U.S. Bankruptcy Court, which occupies 65,941 s/f. The prop- erty also houses retail tenants such as Santander Bank, Brew HaHa! and Jimmy John’s, among others. "We had many buyers who were attracted to 824 North Market St. because of the combination of stability af- forded by the property being

of a class A office building lo - cated at 824 North Market St. in downtown Wilmington to Chopp Holdings of Lakewood, NJ. This was Chopp Holdings’ first acquisition in the State of Delaware. Jerry Kranzel, Robert Fahey, Erin Hannan and Jack Corcoran of CBRE Capital Markets’ Institutional Properties team marketed the building on behalf of the previous owner of 824 North Market St. Built in 1982, the 10-story

824 North Market St.


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F inancial D igest F eaturing C reative F inancing

M id A tlantic Real Estate Journal — June 12 - 25, 2020 — 5A SEDA-COG offers businesses impacted by COVID-19 new loan program


MADDD Equities acquires vacant Ruppert Ice House Progress Capital arranges $50 million construction loan B

CENTRAL PA —Business- es impacted by the COVID-19 crisis in 11 central Pennsylva-

Economic Development Administration (EDA) and thanked them. “We know businesses are hurting and we are using cre- ative solutions to help meet the current needs in this ever- changing economic climate,” Brown said. “As the local com- munity and economic develop- ment agency, we are thrilled to partner with the EDA to further assist our region.” Doug Wilburn , director of SEDA-COG’s Business Fi- nance program, worked with the EDA to get these funds reallocated for a broad array of businesses since they were originally limited to specific business sectors. “This loan fund was real- located by SEDA-COG in re- sponse to the COVID-19 crisis. The partnership of SEDA-COG and the EDA will give busi- nesses in our region some relief. SEDA-COG has heard the voice of our communities and we will continue to look for ways to help local businesses through these trying times,” Wilburn said. As a community and eco- nomic development agency, SEDA-COG enhances the quality of life and economic advantage for residents and businesses in 11 central Penn- sylvania counties through its vital partnerships and initia- tives. SEDA-COG also is an advocate for the interests of its communities at the state and federal levels. MAREJ

nia counties now have an- other fund- ing option – a new loan pro- gram estab- lished by SE- DA-Council of Govern- ments (SE- DA-COG) .

RONX, NY — Brad Domenico , partner at Progress Capi- tal secured a $50 million construction loan for the long-vacant Ruppert Ice H o u s e l o - cated at 18- 22 Bruckner Blvd. in the Mott Haven neighborhood of the Bronx. Jorge Madruga’s MADDD Equities acquired the prop- erty along with partners Eli Weiss and Drew Katz and is converting the building to a K-12 “DREAM” Charter School. DREAM (non-profit) provides inner-city youths of East Harlem, the South Bronx and Newark with opportuni- ties and inspiration by recog- nizing their potential to fulfill their dreams. One of the challenges that Brad faced during the loan process included the ongo- ing impact resulting from COVID-19. With volatility in the markets, difficulties in underwriting credit risk and disruption with construction projects, Domenico needed to navigate many hurdles to get to the closing table. The 188,000 s/f space will be designed by world renowned architect, Sir David Adjaye, who designed the National Af- rican American Museum and was recently knighted by Her Majesty the Queen for services to Architecture. All levels will be fully renovated, including adding specialty classrooms such as a dance Room, art Room, graphic design lab, a Brad Domenico

Douglas Wilburn

No payments are due in the first six months for the new SE - DA-COGEDA COVID-19 Loan Fund. There is a limited pool of funds available, so interested businesses should apply now. Funds are available until they are exhausted. Funds can be used for ac- quisition of commercial real estate, working capital, and equipment. Funds can be dis- bursed based on past working capital expenses. For-profit businesses can ap - ply for loans of at least $10,000. Contact SEDA-COG for inter- est rate information. The loans are for businesses in SEDA-COG’s region of Cen- tre, Clinton, Columbia, Ju- niata, Lycoming, Mifflin, Mon - tour, Northumberland, Perry, Snyder, and Union counties. There is a $500 underwriting fee and a $100 Uniform Com- mercial Code (UCC) filing fee. SEDA-COG executive direc- tor John Brown said SEDA- COG worked hard to secure these funds through the U.S.

18-22 Bruckner Blvd.

JLL secures $20M refi. for cold storage facility located near Port Newark-Elizabeth

library hall, and a large 6,670 s/f gymnasium. The rooftop will be transformed into a full recreational space/playground for the students. “It’s one of these projects that you feel will define your whole life,” said Weiss. “You’re taking a building that’s been vacant for decades and using it to educate and facilitate liquidity in an all-in-one secure environment. “Powered by Nth Round, our private, proprietary pro- gram enables our investors to access financial reports, K-1’s, tax information, and periodic operating updates about the properties in which they have invested. We plan to also provide information about new investment op-

inner-city youth.” The property’s history in- cludes serving as a former ice warehouse built at the turn of the century by American brew- er Jacob Ruppert, Jr. Ruppert is best known as the owner of the New York Yankees and the man who built the original Yankee Stadium. MAREJ

PHILADELPHIA, PA — Stockton Real Estate Ad- visors, LLC has collaborated with Nth Round to provide a new tool for Stockton’s inves- tors to gain “real-time” 24/7 access to investment portfolio information. Nth Round is a comprehensive equity man- agement platform for com- panies that wish to manage equity, engage shareholders, portunities, enabling current and prospective investors to review information at their convenience. This is the start of an evolving investment management process that provides our investors with enhanced transparency, con- venience, and clarity,” said Sean Myers , Stockton’s head of acquisitions and develop- ment. MAREJ Stockton Real Estate Advisors syncs with Nth Round to Premiere

735 Dowd Ave.

MORRISTOWN, NJ — JLL Capital Markets announced has arranged a $20 million re- financing for 735 Dowd Ave., a 175,000 s/f cold-storage facility near Port Newark-Elizabeth in the suburban NYC community of Elizabeth, NJ. JLL worked on behalf of the borrower, Elberon Develop- ment Group , to place the

20-year, fixed-rate loan with a life insurance company. Loan proceeds were used to refi- nance the existing debt on the property. The JLL Capital Markets teamrepresenting the borrow- er was led by senior managing directors Michael Klein and Jon Mikula and analyst Carlos Silva . MAREJ

6A — June 12 - 25, 2020 — Creative Financing — Financial Digest — M id A tlantic Real Estate Journal


C reative F inancing By Brenner Green, Real Property Capital, Inc. To Fix or Not to Fix?


at the low rate of 3.8% through a forward swap even though the renovation funds would not be drawn down until sometime in the future up to 36 months out. The first three years were interest only and the following four years were scheduled to amortized over 30 years. This structure provided the client with maximum flexibility to ex - ecute their business plan while providing the lowest overall cost of capital. Our ability to provide this level of flexibility is one of the ways we are able to retain clients long term. This structure won us a “client for life” with

whom we look forward to doing more in the future. R. Brenner Green is a 20-year veteran in commer- cial real estate finance and

just about any combination you can imagine. Last year, we financed the ac - quisition of a 45-unit apartment complex in suburban Philadel- phia that included around $8.5 million in acquisition and clos- ing funds and around $1 million of available loan proceeds for future capital improvements. Overall, this represented 75% of total project cost. The client’s plan was to reno- vate half of the units initially and the other half over time as they turn over, funded through cash flow. We were able to fix the entire loan for seven years

hat is the question. In any rate environment, clients are wrangling

president of Real Property Capital, Inc., a full-service commercial mortgage bank- ing firm based in the Phila - delphia suburbs. MAREJ

over whether to fix the rate or f l oat i t . Particularly when you get i n t o s wa p dea l s , thi s issue tends to arise. We h a v e d o n e

Houlihan-Parnes Realtors announce the placement of a $29M first mortgage

Brenner Green

deals were clients fix part of the loan and float part of it, where they float with the right to fix for up to the first 24 months following closing, or

BRONX, NY — James J. Houlihan, Bryan Houlihan, and Christie Houlihan of Houlihan-Parnes Realtors announced the placement of a $29 million first mortgage on the 222,637 s/f office condomin - ium at 1775 Grand Concourse in the Bronx. The 10-year, non-recourse loan closed with a local bank at a fixed rate of 2.90%. The mortgage covers a commercial condominium interest in the 300,000 s/f building that shares ownership with Verizon. Verizon uses their two floors to house their central switching boards for all land lines in the Bronx. The borrower was represented in the transaction by Elizabeth Smith of Goldberg Weprin Finkel Goldstein, LLP and title was acquired by First American Title . The property is owned by Sam Jemal of JJ Operating, Inc. and members of his family together with James J. Houli- han and members of Houlihan- Parnes Realtors, LLC. The property was acquired in February 2012 from Ve- rizon and is the second large successful turnaround project engineered in the Bronx by the Houlihan and Jemal families. Their initial project was the successful conversion of the vacant former Alexander’s/ Caldor’s department store on the N/W corner of Fordham Road and the Grand Con- course into a multi-tenant retail/office building in 2001- 2004. In other news, Ed Graf of Houlihan-Parnes Realtors, LLC has arranged for 1st mortgage re-financing for a single tenant Dialysis Cen- ter. The property is located at 3440-3448 Boston Rd., Bronx. The non-recourse loan for $3.5 million is fixed at 3.9% for seven years with a 30- year amortization schedule. The borrower has a 5-year option. MAREJ 3440-3448 Boston Road, Bronx

1775 Grand Concourse, Bronx

M id A tlantic Real Estate Journal — Financial Digest — Creative Financing — June 12 - 25, 2020 — 7A C reative F inancing




Designees on Staff


After all, you are a discerning customer TRUST THE PROFESSIONALS


516-771-2400 FREEPORT, NY 1 1520 Members of the Federation of Exchange Accommodators. Bonded and Insured EXCHANGE SOLUTIONS www.exchange-solutions.com Kim Rincones Sr. Exchange Coordinator Diane Schaefer, CES President Kim Rincones Sr. Exchange Coordinator Kim Rincones Sr. Exchange Coordinator 516-771-2400 1975 Hempstead Tpke., Ste. 201, East Meadow, NY 11554 Members of the Federation of Exchange Accommodators. Bonded and Insured Melissa Beck Exch nge Coordinator

Diane Schaefer, CES ® President

Melissa Cheverko Exchange Coordinator

Diane Schaefer, CES President

8A — June 12 - 25, 2020 — Creative Financing — Financial Digest — M id A tlantic Real Estate Journal


C reative F inancing

ew Jersey is one of a select number of states where commer- By Shaun Keegan, Solar Landscape Rooftop leases offer New Jersey commercial property owners long-term revenue N

points for various aspects, including the portion of low- to-moderate income subscrib- ers and level of community support. Solar Landscape was awarded 50 percent of the projects from the last round for prioritizing these aspects, in addition to launching a solar energy jobs training program in partnership with local orga- nizations. Once the project is awarded, construction is required to be complete within 12 months. The majority of solar devel- opers will sell the project to another company that owns, operates and maintains it. There are some companies though, such as Solar Land- scape, that develop, build and own solar energy systems, so lease negotiation, construction planning and lease payments are all handled by the same company long-term. Program Details The community solar pro- gram is approaching the sec- ond application round – ex- pected to open sometime this summer. The second round is expected to be larger than the first, which was limited to 75 megawatts, to make progress on Governor Murphy’s renew- able energy target goals. The first round was limited to 75MW, which is the equivalent of about 7,500,000 s/f in roof space. Shaun Keegan is CEO of Solar Landscape. MAREJ CLINTON, NJ — Unity Bancorp, Inc. was the top ranked New Jersey community bank on the recently published American Banker magazine list of the Top 200 Publicly Traded Community Banks with less than $2 billion in assets. Unity was ranked 15th nationally on the respected industry list, which reviewed 511 institu- tions throughout the U.S. “We are honored to be the top ranked community bank in New Jersey on the American Banker list as it illustrates Unity’s continued financial strength and performance,” said Unity Bank president & CEO James Hughes. The magazine ranked banks and thrifts that had total as- sets of less than $2 billion as of Dec. 31, 2019 and are publicly traded. MAREJ Unity Bank ranked 15th Nationally by industry survey

project as part of New Jersey’s program run by the Board of Public Utilities (BPU) that launched last year. There is no obligation for the building owner to buy any of the power produced, instead, it is fed onto the local utility grid and pur- chased by nearby homeowners and businesses. This is an opportunity for property owners to monetize un-used roof space while pro- viding a pollution-free, afford- able and reliant source of en- ergy for the local community. Lease Structures A solar rooftop lease is sim-

ple, its essentially a long-term silent tenant. Solar companies typically pay a reduced quar- terly lease payment during construction and a full pay- ment when the system begins operating and is intercon- nected to the electric grid. Construction typically lasts 12 weeks. Another lease op- tion some companies offer is to pay a lump sum up front by discounting future lease pay- ments. This is a good option for companies needing to make up income shortfalls in the near- term or if a re-roof is needed. In addition to benefitting

from lease payments, there is an ownership structure that allows for property owners to take advantage of the federal Investment Tax Credit, which is currently 26 percent. The Process A solar developer will han- dle assessing the roof from a structural standpoint and verify that the local utility infrastructure can receive the energy produced. Then a lease agreement is negotiated and the application for the BPU’s program is prepared. The BPU awards projects based on a scoring rubric that grants

cial property owners can lease roof - top space to host a com- munity solar array. Prop- erty owners are paid a lease rate per

Shaun Keegan

square feet of space, typically totaling 80,000 s/f or larger, on a quarterly basis for a term of 20 or more years. The roof is used to host a community solar


Building a Clean Energy Legacy

www.solarlandscape.com 844-765-2769

M id A tlantic Real Estate Journal — Financial Digest — Creative Financing — June 12 - 25, 2020 — 9A C reative F inancing Thinking about selling your investment property? CONSIDERING A 1031 EXCHANGE?


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multifamily apartment community. Located in the Seattle Metropolitan Area which is home to a strong workforce with Amazon, Microsoft, and Expedia. This all-cash/debt-free 1031 exchange offering is believed to potentially possess a defensive cash flow profile with ex- isting and resilient occupancy along with the potential for asset appreciation as the demand from Seattle’s core central business district supports greater growth in broader submarket neighborhoods. The offering which is available to 1031 exchange and cash investors also has a cost segregation report prepared to poten- tially enhance investors depreciation write offs and tax sheltering of projected potential monthly income.

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A long-term net lease offering with a corporate Walgreens guarantee. Walgreens has been a tenant at this location since 1999 and recent- ly extended their lease an additional 10 years, showing a strong commitment to the site and trade area. The offering which is available to 1031 exchange and cash investors also has a cost segregation report prepared to potentially enhance investors depreciation write offs and tax sheltering of projected potential monthly income.

** All offerings shown are Regulation D, Rule 506(c) offerings. This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily proper- ties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. Securities offered through WealthForge Securities, LLC. Member FINRA/SIPC. Kay Properties and Investments, LLC and WealthForge Securities, LLC are separate entities.These testimonials may not be representative of the experience of other clients. Past performance does not guarantee or indicate the likelihood of future results.These clients were not compensated for their testimonials. Please speak with your attorney and CPA before considering an investment. ABOUT KAY PROPERTIES and WWW.KPI1031.COM Kay Properties is a national Delaware Statutory Trust (DST) investment firm. The www.kpi1031.com platform provides access to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor companies, full due diligence and vetting on each DST (typically 20-40 DSTs) and a DST secondary market. Kay Properties team members collectively have over 115 years of real estate experience, are licensed in all 50 states, and have participated in over 15 Billion of DST 1031 investments. WWW.KPI1031.COM 855.899.4597 LEARN MORE:

10A — June 12 - 25, 2020 — Creative Financing — Financial Digest — M id A tlantic Real Estate Journal


C reative F inancing Enabling investor to diversify into multiple DSTs once again for their 1031 exchange transaction Kay Properties completes a $2.25 million DST 1031 Exchange on behalf of a repeat client


ple potential income-streams by way of a diversified 1031 DST real estate portfolio. Similar to the previous trans- action, the client was able to invest into several DSTs in various geographic locations as well as differing asset classes.” Salmon continued, “It’s gratifying and extremely validating to have the phone ring and it’s an existing 1031 DST client from years earlier that is looking to conduct an- other 1031 exchange or make a direct cash investment into DSTs with Kay Properties.”

Kay Properties is a national Delaware Statutory Trust (DST) investment firm. The www.kpi1031.com platform provides access to the mar- ketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor com- panies, full due diligence and vetting on each DST (typically 20-40 DSTs) and a DST secondary market. Kay Properties teammembers col- lectively have over 115 years of real estate experience, are licensed in all 50 states, and have participated in over $15 billion of DST 1031 invest- ments. *Diversification does not guarantee profits or protect against losses. *This case study may not be representative of the experi- ence of other clients. Past per- formance does not guarantee or indicate the likelihood of future results. Please speak with your attorney and CPA before con- sidering an investment. This material does not consti- tute an offer to sell nor a solici- tation of an offer to buy any se- curity. Such offers can be made only by the confidential Private Placement Memorandum (the "Memorandum"). Please read the entire Memorandum pay- ing special attention to the risk section prior to investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. There are material risks associated with investing in real estate securities including illiquid- ity, vacancies, general market conditions and competition, lack of operating history, inter- est rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential ad - verse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the en- tire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. Securities offered through WealthForge Securi- ties, LLC. Member FINRA/ SIPC. Kay Properties and Investments, LLC and Wealth- Forge Securities, LLC are sepa- rate entities. MAREJ

ay Properties an- nounced the comple- tion of another 1031

again for their 1031 exchange transaction. The Delaware Statutory Trust exchange investments were completed by Jason Salmon, Kay Properties and investments senior vice presi- dent and managing director of real estate analytics. Salmon said, “It was a great pleasure to help this client in- vest again into multiple DSTs for their 1031 exchange. Over the years, the client and I have discussed their overall estate plan, goals, risk toler- ances and objectives, and the client’s desire to have multi-

Dwight Kay , founder and CEO of Kay Properties, stated, “We were thrilled to have helped this client in yet another 1031 exchange into DSTs. Salmon has continued to assist our clients in find - ing the right DST offerings for them and their particular situation while at the same time being a true leader in the 1031 DST industry by pro- viding continuing education to CPAs, attorneys and real estate professionals on DSTs and 1031 exchanges.” About Kay Properties and www.kpi1031.com

exchange for a repeat client that sold farm- land. This

client had worked with Jason Salmon and Kay Properties several years ago for a similar 1031 DST transaction after selling their business as well as the real estate associated with it. This investor was comfortable with the previous results and was able to diver- sify into multiple DSTs once

JUNE 26 Tax Issues and Accounting DEADLINE: JUNE 17


M id A tlantic Real Estate Journal — Financial Digest — Creative Financing — June 12 - 25, 2020 — 11A C reative F inancing


By George Johnson, Rittenhouse Capital Advisors Getting back to “Business as usual”


and/or, reserves. Rates remain favorable in the low to mid-3’s for 5 and 7 year money. Agency lenders, much like in the Great Recession, have once again become (virtually) the only game in town. They’ve adapted on the fly by mitigat - ing risk with a new reserve requirement of 9-12 months of principal and interest pay- ments. Financing for student apart- ments has hit a wall as the uncertainty of a vaccine has tempered most everyone’s desire to return to “normal campus life.” On the construction and

development side of things, there are a fair amount of banks willing to consider fi - nancing new projects. The preference is for lower leverage here as well. One of the new underwriting dynam- ics we’re seeing is a trend to un- derwrite very low rent growth over a 10-year hold. This com- bined with a burn-off on your tax abatement naturallymakes a given project tougher to underwrite resulting in lower leverage. This should serve to con- strain new supply deliveries, which could be a silver lining for existing inventory, allow-

ing absorption to ratchet up with maybe even a hint of rent growth down the line. From here, expect banks to slowly dip their toes back in the water and be extremely selective as we move into the 2nd half of ‘20 and early ’21. Lenders will simply be extra cautious and underwriting will tighten up. There will be upward pressure on cap rates. The pace of additions to sup- ply across all asset types will have slowed considerably and that will allow existing proj- ects to recover and properties and markets to re-stabilize in concert with the recovery of the

economy. There has never been a real estate market dealing with so many factors all at once. So yes, getting a deal financed today is a major ac - complishment. The current blend of issues will slowly work it’s way out, concur- rent with a vaccine and the recovering economy and by late ’20, early ’21, we’ll be getting back to “business as usual”. I’m sure you are like me and can’t wait for that. George Johnson is presi- dent and CEO of Rittenhouse Capital Advisors. MAREJ

t this immediate point in time, like no other in history, simply get-

ting any real estate deal f i n a n c e d s h o u l d b e considered a major accom- p l i shment . It has been challenging to get deals

George Johnson

funded and will continue that way for the near term until there is a vaccine for CO- VID-19 and jobs lost through the pandemic come back and bring a return to single-digit unemployment. The Fed deserves a much credit for stepping up in a big way to buy bonds and equities and shoring up the capital markets. There is no question; major lessons were learned from the Great Recession. The Fed has acted swiftly and logically and by support- ing the capital markets has provided a needed sense of hope and optimism as we move into the next phase of recovery In the mean time, there has been a definite pause in the lending action due to the immediate shock caused by COVID-19. Since then, bank- ers have focused on managing loans already on the books and processing a multitude of PPP applications. Bank balance sheet lenders remainmostly on the sidelines. Those that are quoting deals are proceeding with caution and looking for some combina- tion of lower leverage, recourse G.S. Wilcox & Co. secures $17M loan ELIZABETH, NJ — G.S. Wilcox & Co. recently an- nounced that it has secured $17 million in financing for a 221,000 s/f warehouse build- ing in Elizabeth. The loan was arranged by Wesley Wilcox , vice president, and Al Ray- mond , principal, through Mu- tual of Omaha , a correspon- dent life insurance company lender of the firm. “G.S.Wilcox&Co. is pleased to secure this financing on behalf of our client. Given the current situation with Covid-19, we were thrilled to be able to close this loan especially with the increased necessity for distribution space in our market,” said Wilcox in a prepared state- ment. MAREJ

R I T T E N H O U S E C A P I T A L A D V I S O R S E x p a n d i n g C l i e n t B a s e & R o s t e r o f L e n d i n g O p t i o n s T h r o u g h C O V I D - 1 9

P r o p e r t y T y p e s I n c l u d e : M u l t i - F a m i l y , S e n i o r L i v i n g , M i x e d - U s e , R e t a i l , O f f i c e , M e d i c a l O f f i c e , H o s p i t a l i t y , S i n g l e T e n a n t N e t L e a s e

George Johnson President & CEO

Joe Hanascin VP, Lending Operations

William Patton Transaction Manager

Ken Wellar Partner

Corey Lonberger Partner

107 S. 2nd Street, 4th Floor Philadelphia, PA 19106 ph. 215.454.2852 info@rittenhousecapital.com

12A — June 12 - 25, 2020 — Creative Financing — Financial Digest — M id A tlantic Real Estate Journal


C reative F inancing Summit Capital Partners, LP The value of private lending in the for-sale housing industry

s a result of limitations placed on commercial banks by regulators, coupled with the effects of the coronavirus, the ideal capital stack has become harder to secure, and ultimately, this tightening is requiring inves- tors to get creative. With some traditional banks still on the sidelines, an option more fre- quently availing itself to inves- tors is private debt. Most inves- tors interpret private debt as a financing option for sponsors with poor credit and/or limited experience. In some cases, that may be true, but more often and A

as is the case at Summit Capital Partners, LP, private lending is an alternative financing vehicle

loan) has been noticeable. Over the past 60-days, there has been a verifiable flight from

to existing plans. As far as we can see, this will likely be short lived and market partici-

Private lending takes many forms, and as with most in- dustries, has its fair share of dishonest participants. When considering a private lender, attempt to quickly understand who the decision makers are. The “quick close” often ad- vertised could be derailed by bureaucracy and committees within the firm. Smaller, but still well capitalized firms, may offer an advantage should timing be a critical element. Fromwhat we have seen, most sellers have been reasonable in tolling purchase agreements, but as restrictions loosen, buy- ers will need to be prepared to close. Timing (and lever- age) is a direct result of the lender’s market familiarity. More than ever, real estate is local and private lenders who limit their reach to certain geographic areas have the po- tential of moving quicker and providing better terms as they may already be familiar with a submarket. It is not a one size fits all model, but a private lending relationship could prove to be a valuable tool during these uncertain times. Summit Capital Partners, LP is a private lender that primarily originates senior mortgages and mezzanine loans collateralized by real estate throughout NY, NJ, PA and DE. MAREJ The Blau & Berg Co. arranges first capital markets loan SHORT HILLS, NJ — The Blau & Berg Company ar- ranged the first capital markets deal for the company. Scott Savastano of The Blau & Berg Company represented client, Camisa Physical Therapy and Sports Rehab. Savastano as- sisted in finding them 5,800 s/f to sublease for six months and then a lease thereafter. The space was previously a personal training gym. Savas- tano’s client purchased that business, assumed the remain- ing six months of the gym’s lease and created a brand new physical therapy facility inside the space. Savastano sought out loan possibilities and met with several banks and their SBA departments. Merrill Lynch and RBAC - Regional Business Assis- tance Corporation provided the SBA loan. This process be- gan in October 2019. MAREJ

Private lending is an alternative financing vehicle that provides short term, high leverage financing to experienced borrowers, specifically in support of single family and multifamily for-sale product.

that provides short term, high leverage financing to experi- enced borrowers, specifically in support of single family and multifamily for-sale product. Although we briefly paused in March and early April, the increase in activity (buyer and

the denser urban areas of New York City and Philadelphia to the suburbs of the Delaware Valley, central New Jersey and Long Island. Projects already in the ground will benefit from this wave of activity, but the virus may have just added urgency

pants should remain rational in their underwriting. A housing market to keep an eye on is northern Delaware --- proxi- mate to Philadelphia, one of the country’s most affordable states and a public-school system con- sistently ranked in the top-20.

M id A tlantic Real Estate Journal — Financial Digest — Creative Financing — June 12 - 25, 2020 — 13A C reative F inancing Debt & Equity Financing


Our Philadelphia team has closed or placed under application over $45 million in loans in the last 90 days

$6,000,000 MHC Refinance Montgomery Co.

$6,000,000 Office Refinance Delaware Refinance Suburban Philadelphia $11,250,000 Office

Robert A.C. Jacoby Managing Partner 610.246.4218 (m) rjacoby@ usrealtycapital.com

$3,800,000 Land Development Refinance Montgomery Co.

Bruce C. Robertson, Jr. Partner 215.416.4545 (m) brobertson@ usrealtycapital.com

$13,100,000 Shopping Center

$6,400,000 Special use facility and line of credit Delaware

Riley J. Halloran Managing Director 215.450.6126 (m) rhalloran@ usrealtycapital.com

Refinance Delaware

USRC provides permanent, construction, mezzanine, bridge, joint venture and equity funding for office, industrial and flex buildings, multifamily, retail, hotel, self-storage, MHC and HOA lending. www.usrealtycapital.com

14A — June 12 - 25, 2020 — M id A tlantic Real Estate Journal


M id A tlantic R eal E state J ournal

EW YORK, NY — CoreNet Global NYC (CoreNet) hosted a vir- During virtual webinar: CoreNet Plugged In CORENET NYC discusses impact of augmented reality on the real estate industry N

or, most importantly, identifi - cation or exchange completion periods that ended before April 1 or pending exchange periods that end after July 15. In ad- dition, this Notice is different frommany previous IRS Disas- ter Relief Notices and does not provide clear answers to other deadline related issues. This Notice does not refer- ence Section 17 of Revenue Procedure 2018-58, which pro - vides an extension of 120 days or until the date specified in the Notice, whichever is later. It is uncertain and not clear in Notice 2020-23 if the 120-day deadline extension provided in previous IRS Disaster Relief Notices applies. Finally, some real estate investors were seeking IRS extensions of dates falling after the date of the FEMA and Staf- ford Act declaration on March 13, 2020. Other investors were hoping for a deadline extension to apply from the date of the FEMA disaster declaration on January 20, 2020. At this point in time, taxpayers should make decisions based only upon known IRS guidance. It is unknown whether ad- ditional guidance will be re- leased by the IRS addressing these and other uncertain issues. Every investor should consult with their own legal and/or tax advisors regarding the tax consequences of any specific 1031 exchange trans - action. Scott R. Saunders is sr. vice president at Asset Preservation, Inc. MAREJ continued from page 2A IRS notice extends 1031 . . . of fact, not a matter of predic- tion.” Their message was that the industry needs to be better prepared for the impact of this rapidly developing technology. CoreNet Global NYC Chap- ter’s mission is to advance innovation and professional development for the corporate real estate sector, and to serve as a thought leader and forum for current industry issues. The organization’s more than 1,000 members represent corporate end-users and service provid- ers from New York’s largest publicly held companies at the forefront of real estate planning, development and innovation, in- cluding Fortune 500 companies generating over $1 billion in annual revenue. MAREJ

how it affects tenant and land- lords, and how the technology is being utilized and developed across the industry. For most of the industry, this is unchartered water. Focusing on the recent ad- vancements in AR and VR technology, Mandt and Whitt demonstrated how AR will change the way people approach work, the logistics and legalities of virtual spaces, who owns AR rights, who profits from them, and what corporations can do to protect and manage the virtual space attached to their physical properties in a largely

unregulated environment. They demonstrated examples both in New York and around the world to highlight a trend that has gone largely unnoticed in the real estate world. In the process, they revealed both the cyber security, brand dilution issues and legal ramifications that should concern tenants, as well as the potential financial benefits for landlords and ten - ants, and the players that will seek to control the sector as the technology develops. The roll- out of 5G technology will be an instant enabler for these new technologies

“Years ago, I am sure, when the first person came up with air rights above a building, everyone said, ‘You’re crazy. You can’t sell the air above the building,’” and now, of course, air rights are something that we all commonly talk about,” said Whitt. “So think of AR rights like air rights. You can sell them separately, and bifurcate them from the property.” “It is easy to dismiss it and say that it will never happen, that it feels like something out of Back To The Future or Minority Report,” said Mandt. “It already is happening. It is a matter

tual webinar, CoreNet Plugged In: Impacts of Augmented Re- ality on Real Estate, on April 29. Featuring Layer Group Partner Neil Mandt and Col- liers International president of Real Estate Management Services Karen Whitt , and moderated by Marcus Rayner, Colliers International New York vice chairman, the event revealed the growing trend of Augmented Reality (AR) in the real estate sector, including the issue of who owns AR rights,

Environmental sampling at brownfield site

Foundation recommendations for warehouse development

Land use consulting


Our engineers and scientists provide geotechnical engineering, environmental services, and land-use consulting, supporting New Jersey’s development: • Over five decades of award-winning geotechnical experience • LSRP leadership and four decades of award- winning environmental experience • Resiliency, dam engineering and other water resources consulting • Comprehensive ecological and land-use planning and permitting experience

For more information about GZA’s services:

Southern NJ/Philadelphia John J. Oberer, LSRP John.Oberer@gza.com 215.591.3800 Northern NJ David Winslow, Ph.D., PG David.Winslow@gza.com 973.774.3300 Central NJ Eugene Gallagher, P.E. Eugene.Gallagher@gza.com 732.356.3400 Melick-Tully, a Division of GZA

Known for excellence. Built on trust.


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