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Jones Lang LaSalle arranges the transaction Castle Lanterra Properties inks $147.5m acquisition of apartment community B AYONNE, NJ — Cas- tle Lanterra Proper- ties (CLP) has com-
ISSUE HIGHLIGHTS Volume 27 Issue 21 Nov. 13 - 26, 2015 FINANCIAL DIGEST Featuring... Lender’s Directory
pleted the acquisition of Alex- an CityView, a 544-unit apart- ment community situated on 7.4 acres along the waterfront in Bayonne. The sale price was $147.5 million. The seller was a joint venture between an investment fund and a large property manager. Jones Lang LaSalle arranged the transaction. “This is a core-plus oppor- tunity, a class A property that was constructed in 2010, currently with 91 percent oc- cupancy,” said Elie Rieder , owner of CLP. “It is a good op- portunity on a price-per-unit, cap rate and yield basis.” The property features an array of amenities, including a 9,000 s/f clubhouse, fitness studio, indoor basketball half- court, children’s playroom, a resort-style saltwater pool, and a seven-story parking garage. The property also is LEED Silver certified. LIVINGSTON, NJ — Cen- tral and Northern New Jersey are figuring prominently on the state’s multi-family invest- ment landscape, leading with some of the region’s most note- worthy transactions arranged by Gebroe-Hammer Associ- ates . During the third quarter alone, the Livingston-based
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NAI James E. Hanson celebrates 60th Anniversary
Harbor Pointe
location along the Gold Coast that still has vacant land that is also master-planned, with- out the need to re-purpose any other land for construction,” said Loney. “The surround- ing area features a number of opportunities for growth, and we are in discussions with landowners of neighboring parcels to either joint venture with them on putting together combined amenities when they start to build, or to purchase their land to expand what we are able to offer our residents.” “Bayonne is on the upswing in terms of new development
and attracting new residents and businesses, and we see this particular investment as an extremely positive indicator,” said Bayonne City Administra- tor Joseph DeMarco. “Investors and developers are willing to put their trust in the City of Bayonne, and Castle Lanterra is going to be an important part of that transformation.” Harbor Pointe is a half-mile from the PATH light rail, pro- viding easy access to Manhat- tan. It is also 15 minutes from downtown Jersey City and five minutes from numerous retail centers. n
“Although the property al- ready offers an amenity pack- age that is superior to what is available at other nearby properties, we plan additional upgrades to the amenities, including updates to the club- house and an expansion of the gym,” said Benjamin Loney , head of acquisitions. The renamed Harbor Pointe is the initial development on the Peninsula at Bayonne Harbor, a 420-acre man-made peninsula, and offers water views and a panorama of Lower Manhattan. “The peninsula is the only investment brokerage firm recorded sales totaling more than $333 million involving 1,270 units spanning Morris, Somerset and Union counties. Each of the six separate transactions involved subur- ban apartment-home assets, ranging from newly renovated, upscale core communities to properties primed for capital improvements in order to ren- der them more competitive. Among those properties poised for repositioning was Hamilton House and Jefferson House. “This portfolio was highly unique in that almost 92% of the total units were distinct two-bedroom layouts,” said Stephen Tragash , senior vice president, who arranged the sale as part of a brokerage team that included managing director Joseph Brecher . “The opportunity to implement capital improvements, includ- ing condominium-style finishes in the kitchens and baths, to achieve significant rent ap-
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Pennsylvania’s Premier Available Properties
5-9C
UPCOMING CONFERENCES DECEMBER 9, 2015 NJ Comm’l Healthcare & Medical Properties Summit JANUARY 20, 2016 NJ Real Estate Development &Construction Summit FEBRUARY 5, 2016 PhiladelphiaMultifamily Summit
Gebroe-Hammer records $333m+ in Central/ Northern New Jersey’s most prominent Q3 sales
Directory
DelMarVa • DC...........................................................5-8A Financial Digest Featuring Lender’s Directory.........9-27A New Jersey Featuring Central NJ. ..................... Section B Pennsylvania Feat. Available Properties....... Section C
preciation is what rendered the already well-maintained Hamilton and Jefferson House an extremely desirable acquisi- tion.” Nearby, the Tragash and Brecher team also arranged the sale of a class-A garden- apartment community, where they represented the seller and identified the buyer. Additional Q3 trades in these submarkets included the sale of a 140-unit garden-
apartment community for $30 million in Morristown/Mor- ris County and the 404-unit trade of Greenbrook Gardens in North Plainfield/Somerset County, the latter of which was arranged by Pine and sales as- sociate Eli Herskowitz . Tragash and Pine also repre- sented the owner and procured the buyer of the three-story all- brick façade building located at 37 E. Main St., in Rockaway/ Morris County. n
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C ommercial R eal E state O rganizations ’ E vents C alendar
NOVEMBER 17 – ABC NJ Event: Northern Council Meeting Time: 4:00 PM – 6:00 PM Location: Hampton Inn & Suites Address/City: 118-124 Rte. 46 East, Fairfield, NJ
NOVEMBER 18 – CREW NJ Event: 2nd Annual Holiday Networking Cocktail Party Time: 6:30 PM – 9:00 PM Location: The W Hotel Address/City: 225 River St., Hoboken, NJ Cost: $75 Members $100 Guests $45 Students P: 609-585-6871 www.crewnj.org NOVEMBER 19 – CIRC SIOR CCIM TRISTATE Event: Annual Joint Dinner Meeting Time: 5:15 PM – 9:00 PM Location: Harry’s Savoy Ballroom Address/City: 2020 Naaman’s Rd., Wilmington, DE Cost: $65 Members $75 Nonmembers P: 302-633-1705 E: janet@circdelaware.org www.circdelaware.org NOVEMBER 19 – CORENET/NAIOP PITTSBURGH Event: Joint Meeting Time: 7:30 AM – 9:30 AM Location: Omni William Penn Hotel Address/City: 530 William Penn Pl., Pittsburgh, PA P: 412-928-8303 E: pittsburghchapter@corenetglobal.org www.corenetglobal.org NOVEMBER 19 – CREW PHILADELPHIA Event: 17th Annual Fall Charitable Luncheon Time: 11:00 AM Location: Hyatt at the Bellevue Address/City: Broad & Walnut Sts., Philadelphia, PA Cost: $135 Member $150 Nonmember P: 785-832-1808 E: chrisb@crewnetwork.org www.crewphiladelphia.org NOVEMBER 19 – IREM DELAWARE VALLEY Chapter Awards Night and Installation of 2016 Officers Time: 5:30 PM – 8:30 PM Location: Tendenza Address/City: 969 N. 2nd St., Philadelphia, PA P: 856-786-9260 E: admin@irem3.org www.irem3.org
DECEMBER 1 – IREM NJ Event: Holiday Dinner, Toy Drive & I
nstallation of 2016 Officers Time: 5:30 PM – 8:00 PM Location: Twin Brooks Country Club Address/City: 600 Mountain Blvd., Watchung, NJ Cost: $65 Members $85 Nonmembers P: 973-561-8855 www.irem1.org DECEMBER 1 – ULI PITTSBURGH Event: WLI Inaugural Reception Time: 5:30 PM – 7:30 PM Location: Reed Smith Centre Address: 225 Fifth Ave., 12th Floor, Pittsburgh, PA www.pittsburgh.uli.org DECEMBER 2 – CIANJ Event: Generation Now: Millennial Survival Guide “Health and Wellness” Time: 6:00 PM – 8:00 PM Location: Lakeland Bank Address/City: 417 Cedar Ln., Teaneck, NJ Cost: $25 P: 201-368-2100 E: ehallock@cianj.org www.cianj.org DECEMBER 2 – SMPS CENTRAL PA 4th Annual Member Meeting and Holiday Social Time: 5:00 PM – 7:00 PM Location: Cornerstone Coffeehouse Address/City: 2133 Market St., Camp Hill, PA www.smpscentralpa.org DECEMBER 3 – BOMA PITTSBURGH Event: Holiday Party Time: 11:30 AM – 2:00 PM Location: Grand Hall at The Priory Address/City: 614 Pressley St. Cost: $55 P: 412-261-2328 E: office@bomapgh.org www.bomapittsburgh.org DECEMBER 4 – EDANJ Event: Holiday Party & Franklin-Maddocks Awards Time: 11:00 AM – 2:00 PM Location: The Palace at Somerset Address/City: 333 Davidson Ave, Somerset, NJ Cost: $85 Members $100 Nonmembers P: 609-781-6051 www.edanj.com DECEMBER 4 – NAIOP NJ Event: Seminar: Transportation & Logistics Update Time: 7:45 AM – 11:00 AM Location: NYSA Training Center Address/City: 1210 Corbin St., Elizabeth, NJ Cost: $95 Members $125 Nonmembers www.naiopnj.org DECEMBER 11 – CREW LEHIGH VALLEY Event: Annual Holiday Luncheon Time: 11:30 AM – 1:00 PM Location: Lehigh Country Club in the Great Hall Address: 2319 s. Cedar Crest Blvd., Allentown, PA
P: 609-989-9110 www.abcnjc.org
NOVEMBER 17 – CREW BALTIMORE Event: CREW Connect igCC-Game Changer Time: 8:00 AM – 10:00 AM Location: 100 E. Pratt St., Conference Center, 12th Floor Address/City: Baltimore, MD Cost: $30 Members $55 Nonmembers P: 785-832-1808 E: crewbaltimore@crewnetwork.org www.crewbaltimore.org. NOVEMBER 17 – EDANJ Event: Joint Networking with BCONE & LSRPA Time: 4:30 PM – 7:00 PM Location: Los Amigos Address/City: 1926 Atlantic Ave, Atlantic City, NJ Cost: $25 Members $50 Nonmembers NOVEMBER 17 – ICSC Event: Complimentary New Jersey Alliance Reception Time: 5:00 PM – 7:00 PM Location: Tun Tavern Restaurant & Brewery Address/City: 2 Convention Blvd., Atlantic City, NJ P: 646-728-3648 E: jherrick@icsc.org www.icsc.org P: 609-781-6051 www.edanj.com NOVEMBER 17 – SIOR NJ Event: Membership Meeting Time: 5:00 PM – 8:00 PM Location: The Spanish Tavern Address/City: 103 McWhorter St., Newark, NJ Cost: Free-Members only www.siornj.com NOVEMBER 18 – ABC BALTIMORE Event: Professional Development Program Time: 8:00 AM – 10:00 AM Location: ABC Baltimore Address: 1220 E Joppa Rd., Suite 322, Towson, MD www.abcbaltimore.org
NOVEMBER 19 – SMPS CENTRAL PA Event: Tour of Gettysburg Visitors Center Time: 12:30 PM – 6:00 PM Location: Gettysburg Visitors Center Address/City: Gettysburg, PA www.smpscentralpa.org NOVEMBER 20 – ULI PHILADELPHIA Event: Real Estate Forecast 2016
NOVEMBER 18 – BOMA NJ Event: Membership Meeting Time: 5:30 PM – 8:30 PM Location: Westin - Governor Morris Inn Address/City: Morristown, NJ Cost: $85 Members $160 Nonmembers P: 973-696-2914 E: boma-nj@optimum.net www.bomanj.org
Time: 7:30 AM – 11:00 AM Location: The Union League Address/City: 140 Broad St., Philadelphia, PA www.philadelphia.uli.org NOVEMBER 20 – ULI PITTSBURG Event: My ULI: Maximizing Your Membership with the Urban Land Institute Time: 11:00 AM – 12:30 PM Location: Strada Address: 425 Sixth Ave., 7th Floor, Pittsburgh, PA P: 412-263-3800 www.pittsburgh.uli.org
NOVEMBER 18 – CIANJ Event: EBC Roundtable Meeting Time: 8:00 AM – 9:30 AM Location: McCarter & English, LLP Four Gateway Center 100 Mulberry St., Newark, NJ P: 201-368-2100 E: ehallock@cianj.org www.cianj.org
Cost: $35 Members Only www.crewlehighvalley.org
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2015 Healthcare/Medical Summit Meet Some of Our Speakers & Moderators!
ROBERT PEAKE, Director Facilities, Construction & Real Estate, Atlantic Health System As Corporate Director of Facilities, Construction and Real Estate at Atlantic Health System, Robert is a seasoned healthcare executive with over 25 years of experience. Robert oversees 250 employees and manages existing buildings (over 6 million s/f) as well as all new construction, design and all real estate holdings; additional respon- ANDREW QUIRK, RA, FHFI , S enior Vice President & National Director, Healthcare Center of Excellence Andrew Quirk is senior vice president and national director of the Nashville‐based Healthcare Center of Excellence (COE) for Skan- ska, one of the nation’s largest construction and development firms and top health care builders. In his position, Quirk oversees Skan- ska’s health care construction business in the U.S., advises Skanska’s sibilities include Plant and Biomedical Engineering along with Fleet service. Atlantic Health System is a multi-hospital system that has completed $2.0 billion dollars of expansion and renovation over the past fifteen years under Robert’s direction. clients on building strategies, and works with a team of more than 600 experts to plan, design and build high‐quality, energy efficient facilities. Recently, Quirk was also named SVP, Director COE Strategies, overseeing a team that provides research, com- munications, training, and marketing support to leaders across Skanska’s building‐fo- cused Centers of Excellence. STEPHEN P. ALUOTTO, AIA, CID, LEED AP, President, NK Architects
PHIL STILLER , Chief Operating Officer. Pre-Construction Services, Holt Construction Phil’s 29 year career at Holt has touched every level of operations, from his early days as a carpenter and site foreman, to his successful move into the Project Management arena, Vice President and on to his current capacity as Chief Operating Officer. Mr. Stiller oversees the Pre-construction Services facet of Holt Construction. He man-
ages the estimating process in addition to being a key player in the proper allocation of manpower and resources to effectively complete all current and future projects. ROBERT GERARD, Senior Manager of Business Development, Holt Construction
Robert Gerard is an accomplished Entrepreneur and Senior Exec- utive with demonstrated ability to analyze business requirements and create effective solutions applicable to diverse industries. He has twenty-five years of extensive management, leadership and P&L responsibility with excellent results and is a skilled commu- nicator, with emphasis on building strong client relationships and
negotiating beneficial agreements. He is currently working for Holt Construction, a 96 year old company that is truly an American success story owned and managed by third and fourth generation Holt’s. Bob is responsible for developing the firm’s portfolio of services in Healthcare and Higher Education in New York, New Jersey and Pennsylvania and is currently working on a $22M Ambulatory Care project for Atlantic Health System. DEBORAH A. NAPPI, CPA, MST , Senior Health- care Manager , SaxBST LLP
As President of NK Architects for the past nine years, Steve provides leadership in setting the strategic goals of the firm and ensuring our mission and core values are instilled in our professional staff and reflected in the work we each do for our clients every day. Dedicated to NK for 25 years, he has served as Principal-in-Charge for many
Deborah Nappi, CPA is a senior health care manager with SaxBST and has more than 20 years of accounting and tax experience. Deb- orah is a member of the firm’s Healthcare Industry Services Group, where she performs accounting, consulting and analysis of key stat reports and billing for various medical practice groups, surgery
significant projects in education, healthcare, science and technology, and medical ed- ucation. He received his degree in architecture from NJIT and continues his graduate studies at the Harvard Graduate School of Design. DARREN M. LIZZACK, MSRE , Associate Vice Presi- dent, NAI James E. Hanson
centers and medical device companies. Deborah is a member of the New Jersey So- ciety of Certified Public Accountants, in which she is also a member of the Federal Taxation and Health Care interest group and Health Care Conference work group, a contributor to the NJ CPA magazie and a member of the New Jersey Medical Group Management Association. DAVID BEYEL , Marcus & Millichap
Mr. Lizzack has the skills and knowledge required to provide land- lords, tenants, developers, and investors with pertinent information and strategic advice in order to assist them in making informed real estate decisions. His background in finance and economics coupled with expertise and knowledge he has gained from working with ex-
Since joining Marcus & Millichap, David has forged strong work- ing relationships with many of the leading Healthcare systems, physicians practices, and healthcare real estate investors and de- velopers in the region. His client-first approach to healthcare real estate and has propelled his involvement in over $50,000,000 in Medical Office Real Estate Transactions, and over $250,000,000 in
perienced real estate professionals gives Darren access to one of the largest pools of real estate resources in the world. Over the past several years, Darren has completed over a million s/f of commercial space valued at more than $65.6 million in aggregate sales and rentals. Mr. Lizzack also founded the New Jersey Commercial Real Estate Alliance (www. njcrea.com) which is comprised of five divisions (Executive Board, Healthcare, Multi-family, Retail, and Office) and 58 firms all focused on commercial real estate. Mr. Lizzack leads the Executive Board and the Healthcare Division under his leadership.
healthcare real estate advisory work. David specializes in Single Tenant and Multi- Tenant Medical Office Investments. David is a member of the Healthcare Real Estate Group of Marcus & Millichap, and also leads the Healthcare Realty Advisors team based in Philadelphia.
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MAREJ A dvertising D irectory Alpha Funding Solutions................................. 20A Appraisal Associates, Inc................................. 10B ARD Appraisal Co.. .......................................... 17A Asset Preservation.............................................. 4A Atlas Commercial Capital................................ 12A Barry Isett & Associates.............................. IBC-C Beneficial Bank................................................. 10A Berkadia..........................................................BC-A Bussel Realty Corp............................................. 7B CBRE................................................................... 8C CIRC DE. ............................................................ 8A Cooper-Horowitz............................................... 19A CREW Lehigh Valley PA Chapter.......... 16-IBC-C CREW NJ.......................................................... 15B Cushman & Wakefield. ...................................IC-B Deerwood Real Estate Capital......................... 13A DesignPoint................................................... IBC-C Earth Engineering, Inc.. .................................... 2C EDANJ.............................................................. 16B Electronic Office Systems................................... 3B Fowler Companies............................................ 29A Gebroe-Hammer Associates............................... 2B Harvey Hanna. ................................................... 7A Heller Industrial Parks...................................... 8B Hillcrest Paving & Excavating........................ 29A Hinerfeld.................................................... 29A; 1C Integrity Graphics.............................................. 4A Investors Real Estate Agency......................... 29A Kaplin | Stewart ............................................... 3A Kearny Bank..................................................... 14A Keast & Hood...................................................... 2C Marcus & Millichap............................................ 3A Mericle.............................................................BC-C Meridian Capital Group.................................BC-B Moonstone Environmental........................... IBC-C NAI Dileo-Bram & Co.. ...................................... 9B NAI James E. Hanson...................................... 13B NAI Keystone...................................................... 7C NAI Summit........................................................ 4C PennCap Properties. .................................... IBC-C Poskanzer Skott Architects................................ 4B Progress Capital Advisors................................ 18A Provident Bank................................................. 15A Real Property Capital....................................... 16A Rittenhouse Capital Advisors............................ 3C SEBCO Laundry Systems.................................. 2B Singer Financial Corp...................................... 21A Sitar Auctions..................................................... 9C SNJ Appraisal Institute..............................22-23A Subway.............................................................. 29A The Berger Organization. .................................. 1B The Frederick Group.......................................... 5C The Henley Group, Inc..................................... 11A The Kislak Company, Inc................................... 6B WCRE.................................................................. 3B
Mid Atlantic R eal E state J ournal Publisher ............................................................................ Linda Christman Publisher ............................................................................... Joe Christman Section Publisher .................................................................... Steve Kelley Associate Publisher .............................................................Alissa Aronson Associate Publisher ..........................................................Barbara Holyoke Senior Editor/Graphic Artist .................................................Karen Vachon Production Assistant ....................................................................Julie King Office Manager .................................................................... Joanne Gavaza Guest Columnist ..................... ............................................... Patricia Fripp Mid Atlantic R eal E state J ournal — Published Semi-Monthly Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 312 Market St. Rockland, MA 02370 USPS #22-358 | Vol. 27 Issue 21 Subscription rates: $99 - one year, $148 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Toll-Free: (800) 584-1062 | MA: (781) 871-5298 | Fax: (781) 871-5299 www.marejournal.com The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
Mid Atlantic Real Estate Journal
8 Steps to Outstanding Sales Structure Patricia Fripp Y ou have great prod- ucts and services, of- ten complicated and technical, which require trust in order to sell them. Even if you’ve made a compelling presentation, it often takes weeks before you get a re- sponse. Therefore, you must burn vivid examples and key ideas into the prospect’s mind so they cannot forget how you’re different from your competition. The structure of your pre- sentation is the skeleton under the flesh of your words. You must design and deliver your presentation to be remem- bered and repeated. What is the typical structure? “Hi, I’m Fred Smith. Let me introduce my team: Tom, Dick, and Harriett. Thanks for your time. We’re from . . . This is what we do . . . This is how long we’ve been in business . . . This is what we’re known for . . . These are our clients . . . We would like to work with you . . .” That is a dreary presenta- tion at its worst. What’s an ef- fective structure? This simple, 8-step process frees you to make a seamless argument. 1. Sincere compliment . Start with something they’re proud of; that shows you’ve done your homework: •“Congratulations on your recent product launch.” •“Your latest advertising campaign is spectacular.” 2. Introduction to their challenge or problem . Do not mention your product or solution now. Instead, talk about their current responsi- bility, challenge, or opportu- nity. Then, follow up: •“This is the time to make a bold move and . . .” •“Your board of directors has challenged you with . . .” •“Your competition is in- creasing in . . .” 3. Differentiate fromyour competition. Everyone else thanks prospects for their time. Don’t. Instead, say, “Thanks for the opportunity to discuss how our company (be specific with your service or product) can . . . •“help you accomplish your goals.”
•“minimize your risk in . . . ” •“expand your markets in . . . ” •“demonstrate how our tech- nology will be able to . . . ” 4. Make heroes of your contacts. If you have a cham- pion or if individuals have helped prepare you for the meeting or have taken you through the discovery process, thank them now. •“Thank you, Mike and The- resa, for your time and knowl- edge to help us understand the ABC Company’s goals, com- mitments, and challenges.” •“Mike tells us that your vision is to . . .” or “that your priorities are . . .” •“In the next 30 minutes (60 minutes, three hours), you will hear (learn, discover, see demonstrated) how our solution (company, technology, unique methodology) can help you achieve that goal.” •Never say, “I’m going to talk about . . .” or “What I would like to do . . .” 5. Provide examples, ex- perience, and social proof. Knowing your product or ser- vice isn’t enough. Your prospect must understand how it could improve their business and that you are not just a salesperson but also a trusted advisor. Tell stories and case histories about satisfied clients. 6. Review key ideas. Do this with a rhetorical question or a simple statement based on your premise: •“How is ABC Company better off by doing business with us?” •“As you heard, we would help you accomplish your goals by . . .” •“Our technology would increase your efficiency by . . .” •“Our training would im- prove your . . .” 7. Head into the close with confidence, not a question. Many of your com- petitors close on questions. No. No. No. Close on a high, and let your last words linger. Make sure they’re yours. The
warm-up to that is a ques- tion: “Based on what you have heard, what are your specific questions?” After you answer questions (and possibly objec- tions), drive the sale forward. Depending on the complexity of your offering or how many people are involved, you may want to say, •“At this point, our most logical step is . . .” •“At this point, may I recom- mend we . . .” •“At this point, our best clients elect to . . .” 8. Reinforce your key idea. Your last words are the most important you’ll say, so never introduce a new idea that you have no time to de- velop. Good copywriters often write the P.S. of a sales letter first, because it confirms the key idea in the letter. Your ap- proach might sound like this: “Again, thank you for the op- portunity to demonstrate how our approach could be what you’ve been searching for. We look forward to our next meeting. In your discussions, remember the results of [other successful clients]. Be secure in knowing we pioneered this industry.” Most professionals are fairly smooth in the body of their presentation. Very few, how- ever, open and close effectively and memorably. Take these eight steps, and apply or adapt what is appropriate to your situation. Script your opening and closing for specificity and brevity. You won’t read it, but work from an outline. In the middle of the night, if your spouse asked, “How will you open and close next week’s presentation,” your automatic response should be exactly what you will say. For 25 years Patricia Fripp, CSP, CPAE, has taught indi- vidual salespeople and sales teams how to speak more powerfully and boost their sales beyond expectations. For more information, go to www. FrippVT.com. n
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M id A tlantic R eal E state J ournal VP’s Keenan & Baxter handle off-market transaction Kislak inks $33.1 million sale of a 118-unit portfolio C HATHAM, NJ — The Kislak Company Inc. announced the recent
Leading the Real Estate Investment Market Contact us today to access the largest inventory of properties.
off-market sale of a three- building multifamily portfolio with a total of 118 units in Chatham, Morris County for $33.1 million. Vice president Joseph Keenan represented the seller and vice president Donald Baxter represented the purchaser. The portfolio includes Gar- den Court with 42 units at 500 Main St., Suburban Court with 38 units at 525 Main St., and Colonial Manor with 38 units at 550 Main St. The purchaser was Madison Hill Properties . The properties are located less than onemile fromtheChatham train station and a NJ Transit bus service stop is directly in front of the properties. “This was a wonderful story” said Keenan “The properties had been in the same family for over 60 years -- the parents of the sellers were the original builders. Identifying the pur- chaser and the negotiating the final purchase price were just a small part of the transaction. When you are selling a piece of someone’s family history, you must be able to build a trust- ing relationship with them
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end, it was a wonderful expe r i enc e for the sell- ers, buyers and brokers. It was among t h e m o s t g r a t i f y i n g sales of my
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Kislak’s hands-on approach throughout every aspect of the transaction that ensured a smooth and successful closing – one that all parties involved will speak favorably of for years to come.” “This sale, although off mar- ket, was strewn with competi- tion from other brokers and interested purchasers,” said Baxter. “I believe our success in closing the sale resulted from our relationships with the parties involved. In the
career.” At the time of closing, the properties were approximately 99% occupied. The seller was represented by James Otto- bre of Bourne, Noll & Ken- yon of Summit, NJ. The pur- chaser was represented by Jay Greenfield of A.Y Straus of Roseland, NJ. Financing was arranged by Elliot Treitel of Meridian Capital Group and provided by ConnectOne Bank through loan officer Mi- chael Straus . n
The study of real estate revolves around risk and reward (cash flow). Investors confront risks all the time in buying, selling, investing and develop- ing real estate. Pick the letter choice below which correctly shows these risks: a. Return on Investment, depreciation, cap rates & flex space b. Liquidity, time, management exper- tise, & capital constraints c. Tax basis, interest rates, obsolescence & load factors d. Assessed values, government incen- tives, insurable value & property type “All real estate investors confront one or more of these risks when evaluating a real estate investment. Liquidity and time are major con- straints since real estate may require a long time period to sell the asset to generate cash than other non-real estate assets. The time period affects investors risk tolerance and need for liquidity. Real estate requires specialized knowledge and expertise and thus management becomes critical. All real estate investors require capital and thus the amount of capital available becomes an inherent risk. An investment in real estate may prevent an investor in investing in another asset.” A “B” - Liquidity, time, management expertise and capital constraints
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Ronald M. Shapiro is Assis- tant Professor of Professional Practice in the Finance and Economics Department at Rutgers Business School of Newark and New Brunswick. He teaches real estate finance and serves as the director of student services for theCenter for Real Estate. Prior to Rut-
Kaplin Stewart A t t o r ne y s a t Law
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gers Business School, Ron was SVP with Union Center National Bank (now Connect One) and served in executive management positions at Prudential Financial and Wells Fargo. n
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M id A tlantic R eal E state J ournal By Pamela A. Michaels, Esq. Asset Preservation, Inc. What to do about expenses in a §1031 Exchange?(Part 2) I RS Form 8824, the tax form filed with IRS to report a §1031 exchange
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Examples of these expenses include qualified intermediary fees, escrow closing costs and broker commissions. See e.g. Letter Ruling 8328011, Mer- cantile Trust Co. of Baltimore v. Comm, 32 BTA 82 (1935), Rev. Rul. 72-456, 1972-2 CB 468. Other selling expenses that might be excluded include transfer taxes, attorney’s fees, recording fees and the cost of the owner’s title insurance policy. Note however, that an excludable selling expense does not encompass all clos- ing costs or transactional ex- penses that may be paid with exchange proceeds within the
safe harbor provisions of the regulations. For instance, real estate taxes, rent and other prorations and adjustments are not excluded from amount realized in a taxable sale or added to the basis of the prop- erty by the buyer. Rather, they are operating costs incurred due to the ownership of the real property. Likewise, as to possible costs to remove or sat- isfy mechanic’s liens or other assessments. Transactional items that may be paid from exchange proceeds in an exchange, but are usually not considered selling expenses include loan related fees, such as points, mortgage insurance fees, ap- praisal fees, lender’s title in- surance premiums and other fees related to financing the acquisition of the replacement property. Such fees must gen- erally be amortized over the life of the loan, do not increase basis in the property and do not affect the calculation of realized or recognized gain. Rev. Rul. 70-360, 1970-2 CB 103, S&L Building Corpora- tion, 19 BTA 788 (1930). While the payment of such costs from proceeds may result in cash boot in the exchange, such expenses may be deductible as well. Some legal and tax advisors take the position that where financing is an express condition to closing in the pur- chase contract, the payment of finance related fees out of exchange proceeds should not generate boot. Security deposits, repair costs and prepaid rent that are allocated among buyer and seller in a purchase and sale contract through a stan- dard prorations clause, can be another source of taxable boot if not handled carefully. The prorations clause works by adjusting the amount of cash that must be paid by the buyer at closing. For example, a typical rent proration clause would credit the buyer with rents already received by the seller that are allocable to the period following the closing thereby reducing the amount of cash the buyer must deposit. Such a clause generates boot as the seller has, in effect, treated the prorated amount allocated to the buyer as part of the buyer’s consideration for the property. At closing, this cash is in the seller’s hands and does not pass to seller’s qualified intermediary to be continued on page 12A
transaction, provides that exchange ex- penses are to be deducted from the con- tract price in the determi- nation of re- alized gain.
Pamela Michaels
In this context, the term ex- change expense is not defined but appears to mean an ex- pense of sale that would be excluded from amount realized in a taxable sale transaction.
Exchange Smart. Security you can bank on
Pamela Michaels, Esq. Vice President / Division Manager Manhattan: 866.317.1031 | Long Island: 866.394.1031 pmichaels@apiexchange.com | apiexchange.com Call for a complimentary consultation.
A National IRC §1031 “Qualified Intermediary”
Real Estate Journal — November 13 - 26, 2015 — 5A
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Marcus &Millichap arranges the $1.2m sale of 8,173 s/f
H Cushman & Wakefield serves as leasing agent Federal Capital Partners acquires office bldg. for $84m ERNDON, VA — Federal Capi tal Partners (FCP) an-
nounced the $84 million ac- quisition of One Dulles Tower, a 400,000 s/f class A office building prominently located at 13200 Woodland Park Dr. on the Dulles Toll Rd. in Hern- don, VA, just two miles east of Dulles Airport. FCP vice president, Erik Weinberg , said, “One Dulles Tower, which has been 100% leased to Booz Allen Hamilton, will be vacated at the end of the year, providing FCP with the perfect opportunity to renovate and reposition the building. With the largest contiguous block of space on the Toll Road and upgraded amenities, lobby and common areas, One Dulles Tower will be highly competi- tive in the headquarters office building offerings in the Dulles Corridor.” “We are thrilled to be work- ing with the team at FCP and are excited to reintroduce One Dulles Tower to the mar- ketplace,” said Cushman & Wakefield executive director, Matt Bundy , who has been selected, along with colleague Josh Masi , to provide leas- BALTIMORE, MD — The Mullan Contracting Com- pany has initiated construc- tion activities for a new 7,800 s/f free-standing retail build- ing, situated on the parking lot of TimoniumSquare Shop- ping Center in Baltimore County. Upon completion of this structure next sum- mer, the project will house Starbucks Coffee and Zoe’s Kitchen. Both the shopping center and this new retail addition are owned by Kimco Realty Corporation and located at 2161 York Rd. in Lutherville. Several years ago, The Mul- lan Contracting Company completed a comprehensive make-over of the 200,000 s/f Timonium Square, which entailed the renovation of the exterior facade, the ad- dition of large canopies, the
1301 Good Hope Rd. SE
ever, due to the Anacostia submarket andMarcus &Mil- lichap’s marketing platform, we were able to get a response that satisfied our client.” 1301 Good Hope Rd. SE is located one block from the intersection of Good Hope Rd. and Martin Luther King Jr. Ave., a hub of develop- ment in Historical Anacostia neighborhood and less than one mile from the Anacostia metro station. Neighboring properties include the DC Department of Housing and Community Development (DHCD) as well as the future Busboys and Poets, planned for 2016. ‘This transaction serves as evidence of the strength of the market today, especially east of the river,” Feldman concluded. “With Busboys and Poets coming in 2016 and additional proposed devel- opments, the area is seeing an unprecedented influx of capital.” n of new Riverfront homes in this last phase at Justison Landing. We would love to have another 100 riverfront condominiums that we could market because demand for these units is only growing.” With an average of 6,000 employees working on the riverfront daily, the need for permanent luxury housing is expected to increase. BPG is addressing that demand in part with the recent grand opening of The Harlan Flats luxury apartments. The next phase of Riverfront residen- tial development is slated to break ground in 2016 on parcels between Harlan Flats and Penn Cinema Riverfront & IMAX. n
WASHINGTON, DC — Marcus & Millichap an- nounced the sale of 1301 Good Hope Rd. SE, a 8,173 s/f mixed-use property located in the Historical Anacostia neighborhood of Washing- ton, DC, according to Bryn Merrey , regional manager of the firm’s local. office. The property sold for $1.2 million, or approximately $146.82 psf. Ian Ruel , investment spe- cialist, and Josh Feldman , associate vice president in- vestments in Marcus & Mil- lichap’s Washington, DC of- fice, had the listing to market the property on behalf of the seller, a local family who has owned the property for 32 years. Ruel and Feldman also secured the buyer, a promi- nent developer with an ex- panding footprint in the area. “This was a very difficult transaction in which we had to overcome major environ- mental concerns and a lack of cash flow,” Ruel said. “How- WILMINGTON, DE – Wilmington-based developer Buccini/Pollin Group, Inc. (BPG) announced a pivotal moment for Riverfront Wilm- ington -- the sale of the final condominium at Justison Landing. The revitalization of the Riverfront Wilmington has reached new heights now that 126 families call Justi- son Landing Condominiums home. “I’m excited about what is happening at the Riverfront and the rapid absorption of residential units in the past few years has been a major enabler,” said Boris Kaplan , vice president of development at BPG. “We sold over $15 million worth
One Dulles Tower
scale Woodland Park master planned development, with ex- traordinary 360-degree views, convenient access to more than 140,000 s/f of retail, a hotel and 5-acre park and is one half mile from both the future Herndon and Innovation Center Silver Line Metro Stations. FCP extends its appreciation to Bill Collins , Paul Collins , James Cassidy , Jud Ryan and Drew Flood of Cushman &Wakefield for their represen- tation of the seller, Corporate Office Properties Trust. n The brick and glass re- tail building features a con- temporary architecture with enlarged areas for tenant signage. The structure fronts on York Rd. and faces the Timonium Race Track. In ad- dition to Giant Food, tenants at Timonium Square include Staples, Dress Barn, Sher- manWilliams, Bromwell Jew- elry Center and Jason’s Deli. “The York Road corridor is a heavily-retailed environment and contained within among the most sought-after retail sub-markets in the State, based on the surrounding demographics,” said Joseph Rode , president of The Mul- lan Contracting Company. “The shopping center owner recognized the opportunity to create additional retail capac- ity on this site to capitalize on continuing demand.” n
ing services for One Dulles. “The prominence of this asset is simply unmatched. The highly efficient floor plan and amenities that today’s tenants demand are already in place, including conference facilities, fitness center, 4/1,000 covered parking ratio, convenient food service and outdoor collabora- tion space with water views.” One Dulles Tower directly faces the Dulles Toll Rd. to the north and overlooks a lake to the south. The build- ing is located within the up-
The Mullan Contracting Co. begins construction on a 7,800 s/f free-standing retail building
Buccini/Pollin’s The Condominiums at Justison Landing sell out in DE
Timonium Square Shopping Center
incorporation of clock tow- ers throughout the center and the installation of new tenant signage. Mullan Con- tracting also simultaneously performed a ground-up con- struction of a new 55,000 s/f Giant Food grocery store on the site.
6A — November 13 - 26, 2015 — DelMarVa — M id A tlantic
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DRE leases 19,500 square feet of office space in Hampton Roads Divaris Real Estate completes 22,000 s/f of office leases in Richmond
ICHMOND, VA — Michael B. Divaris , president of Divaris Real Estate, Inc. (DRE) , an- nounced the signing of three leases totaling 22,399 s/f of office space in the greater Rich- mond metropolitan area. All leases were handled out of DRE’s Richmond office. Park Group leased 15,865 s/f of office space at 1207 North Blvd. in Richmond. Other ten- ants in the property include Cort Furniture. DRE’s senior vice president Brett McNamee represented the landlord, BHL, LC, in the lease negotiations. R
Vanguard Utility Services leased 4,782 s/f of office/ware- house space in the Divaris- leased property located at 126 Agency Ave. John Madures of the Richmond office of DRE represented the landlord, DBK Properties, LLC. Gillman Services leased 1,752 s/f of office space in the Divaris-leased and –man- aged Fountain Park located at 9321 Midlothian Turn- pike in Midlothian, Virginia. Madures handled the nego- tiations on behalf of the land- lord, Midlothian Partners of Virginia, LLC.
Tower 4, LLC, were handled by Michael Divaris , Vivian Turok and Krista Costa of DRE’s Virginia Beach office. The Town Center of Virginia Beach is leased by Divaris Real Estate and managed by Divaris Property Manage- ment Corp . The Oozlefinch Craft Brew- ery leased 4,662 s/f of office/ warehouse space in Building 12 located at 81 Patch Rd. in the historic former army base Fort Monroe. The 565-acre National Historic Landmark District is being leased by DRE and managed by Divaris affili-
ate Old Point Comfort Real Estate Services, LLC . The lease negotiations with the landlord, Fort Monroe Author- ity, were handled by DRE’s Sandy Cohen , Chris Bendit and Elizabeth Greer . Care Advantage signed a lease for 3,025 s/f of office space at 611 Lynnhaven Park- way in Virginia Beach. Greer and Bendit represented the tenant in the lease negotia- tions with the landlord, Mc- Cormack Enterprises, LLC. State Farm Insurance leased 2,500 s/f of office space in the Divaris-leased Lynnhaven Commons Office Complex at 562 Lynnhaven Parkway in Virginia Beach. The landlord, Lynnhaven Commons, LLC was represented by DRE’s Paasch and Greer. n Mueller Assoc. relocates to Linthicum, MD LINTHICUM,MD — Muel- ler Associates , an award- winning mechanical, electri- cal, and plumbing engineering firm, has signed a lease for a new office at Airport Square in Linthicum. The firm, which has been based in the Balti- more area since its founding in 1966, relocated to the new space on September 25. Mueller Associates employs a staff of 40 engineers, de- signers, and administrative personnel. The firm is known nationally for its work in en- gineering spaces with complex building system requirements, such as museums, librar- ies, performing arts centers, higher education facilities, labs, and corporate spaces. The new, 13,000 s/f space, lo- cated on Airport Square’s first floor at 1306 Concourse Dr., will enhance design and pro- duction efficiency and provide expanded meeting space for the firm, which is also known for its cutting-edge technical expertise, sustainable design, and historic preservation port- folio. The building is owned and managed by Corporate Office Properties Trust . DTZ rep- resented Mueller Associates in the lease transaction. Mueller’s current projects include renovations to the Smithsonian Institution’s National Air and Space Mu- seum and George Washington University’s Corcoran School of the Arts & Design in Wash- ington, DC. n
VIRGINIA BEACH, VA — Divaris Real Estate, Inc. announced the signing of four leases totaling approximately 19,500 s/f of office space across the Hampton Roads area. Negotiations were handled through the Virginia Beach office of DRE. Morgan Stanley Smith Bar- ney Financing renewed its lease for 9,310 s/f of office space at the Armada Hoffler Tower in the Town Center of Virginia Beach, located at 222 Central Park Ave. The lease negotiations with the landlord, Armada Hoffler
Congratulations to all the honorees recognized in Mid Atlantic Real Estate Journal’s Executive Women in Business .
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8A — November 13 - 26, 2015 — DelMarVa — M id A tlantic
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Commercial-Industrial Realty Council Great CRE Events...Cont. Education...Speakers...Networking www.CircDelaware.org
Schedule of Events MEMBERSHIP LUNCHEONS
Joint Dinner: SIOR|CCIM|TriSate|CIRC November 19 | 5:15-8:30 | Harry's Savoy S teve Collins from St. Louis based Commer-
2 0 1 5 B oard of d irectors o fficers President Bert Root Harvey Hanna & Associates Vice President Donald Robitzer The Commonwealth Group Treasurer Timothy Cole Parke Bank Secretary Bayard J. Snyder, Esq. Bayard & Associates d irectors / c ommittees Past President Education Chair Marvin Sachs Bellevue Realty Co. Legislative Affairs Chair: J. Gregory Ellis Patterson-Woods Associates Membership Chair James Manna BrightFields, Inc. Program Chair Donald Robitzer The Commonwealth Group Jeremy Abelson MidCoast Community Bank Benjamin J. Berger, Esq. John Birmingham Cushman & Wakefield Berger Harris, LLC Jim O’Hara, Jr. NAI Emory Hill-Retail Div. Rachael Justice ATAPCO Christiana Cynthia Fleming Jones Lang LaSalle e x -o fficio m emBers C. S. Kidner & Associates Economic Dev. Liaisons New Castle County Chamber Bob Chadwick David Archer DEDO NCCo. Rep. City of Wilmington Jeff Flynn Office of Economic Dev. Contact Us www.circdelaware.org (302) 633-1705 janet@circdelaware.org NCC Ec. Dev. Council State of Delaware Business Manager Janet S. Pippert CIRC / Landmark Science & Engineering Legislative Lobbyist C. Scott Kidner
October 14, 2015 (Wed.) Clarion Belle Speaker/topic: Bernice Whaley, Delaware New Delaware Economic Development Of- fice Director [and Alex Rittberg, DNREC, on Clean up Liability Assoicated with USTs] 11:30 - 1:30 p.m / Cost: $35 M/$45 NM Nov. 19, 2015 (Thurs.) Harry's Savoy Joint Dinner: SIOR, CCIM, TriState, CCIM Speaker/topic: Steve Collins, Commercial Development Company, Inc., First State Crossing Redevelopment at Claymont Steel 5:15 - 8:30 p.m / Cost: $65 M/$75 NM Dec. 9, 2015 (Wed.) Univ. & Whist Club Festive Holiday Networking Luncheon 11:30 - 1:30 p.m / Cost: $45 M/$55 NM CONTINUING EDUCATION* Clarion Hotel-The Belle October 14, 2015 (Wed) * Mod. 5 / Legislative Issues: Agency DE/PA/MD Mod. 4 / Office/Risk Management DE/PA/MD/NJ January 13, 2016 (Wed) * Mod. 7 / Commercial R.E. Hotbuttons DE/PA/MD/NJ Mod. 3 / Contracts & Contract Documents DE/PA/MD March 9, 2016 (Wed) * Mod. 4 / Foreclosure Prevention & Loan Modification DE/PA/MD/NJ Mod. 7 / Short Sales Done Right DE/PA/MD * Visit us on the web: CircDelaware.org for more information on our Continuing Education offerings, the course provider, and accrreditation in DE*MD*PA*NJ: circdelaware.org/education/schedule.cfm
cial Development Com- pany and Environmental Liability Transfer will discuss the company's unique strategy for re- developing some of our nation's dirtiest former industrial sites, beginning with a com- plete environmental site clean up. This is now oc-
curing at the former Claymont Steel (Evraz) Plant, with the concept plan, called "First State Crossing," now underway. Steve will also present rede- velopment projects in New Jersey -- all sure to be of interest to the bro- kerage and development community! Register directly with your SIOR, CCIM, TriState RCA, or CIRC organization, and consider becoming a spon- sor for great exposure! A ttend CIRC's NEXT Membership Meeting on Wed., October 14 at The Belle. Hear from Bernice Whaley, new Director of Delaware Economic Development Office. DNREC's Alex Rittberg will also be on hand to discuss Changes in Cleanup Liability Associated with USTs (effec- tive January 1, 2016). The State's Brownfield Program will now extend to commercial properties with USTs, with a special residential program. S eptember meeting featured Brian DiSabatino speaking about the new development of the Town of Whitehall, and CIRC presenting the its Golf Outing charitable donation of $2,745 to the Delaware KIDS Fund.
Good Times… Great Reasons to Join!
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