R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news
For a 50-story hotel totaling 492 rooms Meridian arranges $135m in financing
CBRE|Fameco’s Famous consults LMS organizes sale of over 30 assets
ISSUE HIGHLIGHTS Volume 27 Issue 2 Jan. 30 - Feb. 12, 2015 SPOTLIGHT eCONOMIC dEVELOPMENT 3-10A MID ATLANTIC ICSC CONFERENCE AND DEAL MAKING Section C Upcoming Conferences 2015 Schedule: February 12, 2015 NJ Industrial RE and Development Summit Receive 4 CPD & 4 CE Credits!! April 2, 2015 NJ Land Dev. Summit May 7, 2015 NJ Office Summit June 25, 2015 NJ Commercial RE Forecast Summit For speaking and sponsorship information, please contact: Linda Christman at 781-871-3456 or lchristman@marejournal.com
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EW YORK CITY, N Y — M e r i d i a n Capital Group LLC
(Meridian) has arranged a $135 million mortgage for the refinancing of the Holiday Inn Manhattan-Financial District. The Holiday Inn Manhattan- Financial District is a 50-story, limited-service hotel totaling 492 rooms. The hotel is located at 99-103 Washington St. The developers recently completed construction of the property. Meridian arranged the mort- gage on behalf of developers Sam Chang and Jubao Xie. The two-year loan, provided by a na- tional balance sheet lender, fea- tures a competitive floating rate with interest-only payments for the full term. Emanuel West- fried , Meridian’s vice president, negotiated the transaction. According to Westfried, the loan was provided to recapital- ize the current sponsorship. The Fort Lee, NJ — HFF has closed the $120 million sale of The Crest at Fort Lee, a 351- unit multi-housing community. HFF marketed the prop- erty on behalf of the seller, Capri Capital Partners, LLC. Pantzer Properties purchased the asset for $120 million, or approximately $341,880 per unit, free and clear of any exist- ing debt. The Crest at Fort Lee is situ- ated on 13.09 acres at 900 Crest Lane in eastern Bergen County
120 North Pointe Blvd.
LANCASTER, PA — LMS Commercial Real Estate has reached an agreement to bring Paramount Realty Services, Inc. of Lakewood, NJ to the Central PA region. LMS Commercial Real Estate arranged the sale of over 30 assets, encompassing 2 million s/f, to affiliates of Paramount
Realty. With this transac- tion, Paramount Realty will have assets in excess of $1 billion, ownership 7.5 million s/f and leasing assignments in excess of 13 million s/f throughout CT, MD, MA, NJ and PA. Brandon Famous of CBRE|Fameco provided consulting services. n
The Holiday Inn
existing debt was $45 million from Cathay Bank. n
HFF closes $120m sale of The Crest at Fort Lee
Directory
Upcoming Spotlight February 12, 2015 Commercial Office Properties Shopping Centers . ....................... Section C Owners, Developers & Managers ..... Section B Green Buildings .............................. 13-17B
The Crest at Fort Lee
and is minutes from the New Jersey Turnpike/GeorgeWash- ington Bridge as well as nearby shopping and dining. The gated property, built in 1999, is 96% leased and has a mixture of one-, two- and three-bedroom floor plans averaging 1,058 s/f each. The property consists of seven residential buildings that include garage parking, tenant storage, balconies and some renovated units. Community
amenities include a clubhouse with heated outdoor swimming pool, state-of-the-art fitness center, indoor basketball court, community room and business center. The property also has a playground and grilling area. The HFF investment sales team representing the seller was led by senior managing director Jose Cruz , managing director KevinO’Hearn, asso- ciate director Steve Simonelli
and was supported by senior managing director Andrew Scandalios . Hyland Levin LLP served as legal counsel for the buyer and Krawnow Saunders , Kaplan & Beninati LLP represented the seller. “The buyer has an opportuni- ty to add value to the property in a market that is seeing new development and higher rents,” said Cruz. n
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Inside Cover A — January 30 - February 12, 2015 — M id A tlantic
Real Estate Journal
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Mid Atlantic Real Estate Journal is pleased to announce. . .
Sponsors Columbia Bank | Sitex Group | Bridge Development Marcus & Millichap | NJEDA | Envision Environmental
Organization Sponsors SIOR NJ | BOMA NJ | SNJ AIA | IREM SNJ
Speakers Include:
Gene Preston, Dermody Properties Margie Piliere, NJEDA Ted Zangari, Sills Cummins & Gross Bo Farkas, Sitex Group Peter Crovo, Prologis William Waxman, CBRE Omer Ahmed, Russo Development Dwight Angelini, TA Associates Dave Gibbons, Elberon Development
Paul Heilmann, Columbia Bank Andrew Merin, Cushman & Wakefield Michael Nachamkin, HFF Brian Milberg, Sitex Group George P. Molloy, GM Realty Advisors Inc. Jeff Milanaik, Bridge Development Brian Hosey, Marcus & Millichap Dennis Toft, Wolff Samson Meryl Gonchar, Greenbaum Rowe Smith & Davis
7:55 AM Welcome & Introduction 8:00 AM Industrial 2.0: the new approach to industrial development • More collaborative approach between client/city/developer – each knows what they want • Industrial Financial Trends • Generational shift of employees and their needs/wants in workspace • New trends/designs in industrial • Cities different outlook on industrial – now includes new sectors like medical technology, job creation, etc. 8:55 AM The Power of Collaboration – City/Counties partnering on economic development projects • Project case studies (Metro and non-metro) • How are cities and counties are working together to spur economic growth • Metro based programs
• Tools and Resources • New economic development tools for economic development – how can these resources improve projects 9:50 AM BREAK 10:00 AM Opportunities in the Industrial Real Estate Market • Market trends: vacancy, absorption, rental rates and new construction • Industrial developments: trends and issues • Investment outlook • Where is industrial Development going and why? Suburban vs. urban 11:00 AM Industrial Generals “A special gathering of respected industry experts in an open forum” • Current and Future Endeavors • War Stories of Past Industrial Experiences • What do they think is happening in the Industry and where is it headed • Advise to the current and next Industrial generation 12:00 PM Adjourn
For speaking and sponsorship information, please contact Linda Christman at 781-871-3456 or lchristman@marejournal.com
Real Estate Journal — January 30 - February 12, 2015 — 1A
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Meet Our Speakers & Moderators
Michael Nachamkin, Senior Managing Director, HFF | New Jersey Moderator: 11:00 AM | Industrial Generals “A special gathering of respect- ed industry experts in an open forum” BIO: Mr. Nachamkin is a Managing Director in the New Jersey office of HFF with more than 25 years of experience in the commercial real estate and finance industry. He specializes in industrial investment sales in the New York Metropolitan area and nationally. Paul Heilmann, Senior Vice President, Columbia Bank Speaker: 8:00 AM| Industrial 2.0: The new approach to industrial development BIO: Paul Heilmann is Senior Vice President (SVP) of Commercial Real Estate Lending and Commercial Construction Lending at Columbia Bank, one of New Jersey’s leading community banks with Total Assets of $4.3 Billion and 44 Branches. Heilmann is a member of the Bank’s Commercial Loan Com- mittee and Senior Loan Committee. His responsibilities include oversight of two lending groups. Andrew Merin, Vice Chairman, Cushman & Wakefield of New Jersey Moderator: 10:00 AM | Opportunities in the Industrial Real Estate Market BIO: Andrew J. Merin, a Vice Chairman of C&W, heads the Investment Sales Group of C&W’s East Rutherford, New Jersey office. He has served as a member of the firm’s Board of Directors and as a member of the Audit Com- mittee. Merin joined C&W in 1983 and subsequently joined the Investment Sales Group in 1987 after a 17-year career as an office leasing transaction specialist. George Molloy, President/Broker of Record, GM Realty Advisors Inc. Speaker: 8:00 AM | Industrial 2.0: The new approach to industrial dev. BIO: Mr. Molloy has been a commercial real estate service provider since 1983. During this period, he has completed several hundred transactions with aggregate values exceeding $1 billion. George has a proven track record of success in the 4th largest industrial real estate market in North America. Combining strong intuitive skills, keen business knowledge, and timely lease & sales data results in value-added transactions for investors and custom- ized real estate solutions for owners/occupiers of corporate real estate. Brian Milberg, Principal, Sitex Group Speaker: 11:00 AM | Industrial Generals “A special gathering of respected industry experts in an open forum” BIO: Brian Milberg, oversees acquisition and development opportunities throughout SG’s Target Markets in addition to working on the firm’s capital market ventures and equity sourcing. Brian Hosey, Regional Manager, Marcus & Millichap of NJ Moderator: 8:55 AM | The Power of Collaboration – City/Counties partnering on economic development projects BIO: Brian Hosey is Regional Manager for Marcus & Millichap’s New Jer- sey office. Brian joined the firm in September 2010. He was named “MVP” of the Manhattan office and in 2012 received his first sales achievement award. Hosey joined the management team in February 2013 as sales man- ager of the Manhattan office. In April 2014 he was promoted to regional manager of the New Jersey office. Jeff Milanaik, Principal, Bridge Development Speaker : 11:00 AM | Industrial Generals “A special gathering of respected industry experts in an open forum” BIO: Jeff Milanaik previously served as president/partner of Heller Industrial Parks Inc. and holds over 28 years of experience in commercial real estate. Jeff increased Heller’s industrial development activities to grow the portfo- lio by over 10 million s/f to a total of 16 million s/f in 6 states. William Waxman, CBRE Speaker : 11:00 AM | Industrial Generals “A special gathering of respected BIO: He is the leader of CBRE’s world renowned Port Logistics Practice, part of the Global Supply Chain Practice, EMEA and APAC Industrial Practices, and works on projects locally, across the country and around the world. He has published numerous articles, been featured and quoted in esteemed publications such as The New York Times and NJ & Co, and presented na- tionally and internationally on the emerging trends impacting industrial real estate.
Meryl Gonchar, Partner/Co-Chair (Redevelopment & Land Use Department), Greenbaum Rowe Smith & Davis Speaker: 8:55 AM | The Power of Collaboration – City/Counties partnering on economic development projects BIO: Meryl A.G. Gonchar is Co-Chair of the Redevelopment and Land Use Department at the New Jersey law firm of Greenbaum, Rowe, Smith and Davis LLP. Her practice encompasses all aspects of land use, zoning and re- lated litigation. Dennis Toft, Co-Chair, Wolff & Samson Moderator: 8:00 AM | Industrial 2.0: The new approach to industrial dev. BIO: Dennis Toft, co-chair of Wolff & Samson’s Environmental Group, is a re- nowned environmental lawyer who applies a keen understanding of science and the complexities of regulatory process when addressing the wide range of issues that his clients face. Eugene A. Preston, Partner (East Region), Dermody Properties Speaker: 11:00 AM | Industrial Generals “A special gathering of respected industry experts in an open forum” BIO: Eugene Preston is a Partner of Dermody Properties based in Con- shohocken, PA. He is responsible for all land and building acquisitions, build-to-suit projects, development activities, and asset management in the Eastern United States. Previously, Preston was Managing Principal at Woodmont Industrial Partners, LLC responsible for the company’s acquisi- tions and operations. Peter Crovo, Senior Vice President, Market Officer, NJ/NY, Prologis Speaker : 10:00 AM | Opportunities in the Industrial Real Estate Market BIO : Peter Crovo is Senior Vice President, Market Officer and is responsible for all operations, asset management, leasing and acquisitions for the New Jersey/New York market. Previously, he was Market Officer for the Prologis South Florida market for three years. Prior to joining Prologis in 2011, Mr. Crovo was responsible for acquisitions and leasing in South Florida and New Jersey for Seagis Property Group. Bo Farkas, Senior Vice President, Sitex Group Speaker: 10:00 AM | Opportunities in the Industrial Real Estate Market BIO: Bo Farkas, Senior Vice President oversees land acquisition and develop- ment opportunities throughout SG’s Target Markets. He has over 17 years of construction, engineering and industrial real estate investing experience: since 2004 Farkas has acquired and developed over $750 million of ground up industrial real estate. Ted Zangari, Member, Sills Cummis & Gross Speaker: 8:55 AM | The Power of Collaboration – City/Counties partnering on economic development projects BIO: Ted Zangari is a Member of Sills Cummis & Gross, a commercial law firm with New Jersey offices in Newark and Princeton. He is a Chair of the Firm’s Real Estate Department and serves on the Firm’s Management and Executive Committees. Margaret Piliere, Director of Business Banking and Community Dev., NJEDA Speaker: 8:55 AM | The Power of Collaboration – City/Counties partnering on economic development projects BIO: Piliere currently serves as the Director of Business Banking and Com- munity Development for the New Jersey Economic Development Authority (EDA) with the primary responsibility of managing the EDA’s sales team for all loan and incentive resources offered by the EDA; creating relationships with businesses, banks, municipalities and other business service providers; and managing the intake of applications for financial assistance. Omer Ahmed, Russo Development Speaker: 10:00 AM | Opportunities in the Industrial Real Estate Market Sr. Vice President Omer M. Ahmed joined Russo Development in 2006 as Vice President and Head of Acquisitions. He leads an aggressive acquisition campaign strategically expanding the firm’s development pipeline and prop- erty holdings spanning mission critical, commercial, and residential prop- erty types. Specifically, Mr. Ahmed has led the acquisition of approximately 1,000,000 SF of developable mission critical space and land entitled for over 1,500 residential units.
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M id A tlantic R eal E state J ournal Publisher .................................................................Linda Christman Publisher ....................................................................Joe Christman Section Publisher .........................................................Steve Kelley Senior Editor/Graphic Artist ..................................... Karen Vachon Production Assistant ........................................................ Julie King Associate Publisher ................................................. Alissa Aronson Office Manager .........................................................Joanne Gavaza Guest Columnists ............... S t e ve A l E r dmann , CPA , MS , WithumSmith+Brown PC ; Brian Arenofsky, BH Security; Beverly Blum, DesignWorkBuild; Joseph Lowry, Levin Management; Mike Mullin, IBS Mid Atlantic R eal E state J ournal ~ Published Semi-Monthly Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 312 Market St. Rockand, MA 02370 USPS #22-358 | Vol. 27 Issue 2 Subscription rates: $99 - one year, $198 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Toll-Free: (800) 584-1062 | MA: (781) 871-5298 | Fax: (781) 871-5299 www.marejournal.com The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
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Market for Smaller Retail Property Trades Heats Up Joseph Lowry
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heated up in 2014, with de- mand for well-located shopping center properties returning to pre-recession levels. According to Levin Management’s Joseph Lowry, director of acquisitions/ business development for the North Plainfield-based retail real estate services firm, this ideal investing environment has re-fueled the market for both smaller and value-add assets, following several years dominated by institutional- grade trades. At the same time, Lowry notes that many opportunities to buy and sell neighborhood and convenience centers con- tinue to fly under the radar. In the following interview, he dis- cusses the market for smaller retail properties, the related challenges and the value of working with an advisor. Which smaller properties are catching investors’ eyes? Lowry: Class A, grocery- anchored shopping centers in established retail hubs remain the “darling” of the institutional investment com- munity. However, recently we are seeing more private-player interest in smaller properties – those assets under and around 50,000 square feet that may be unanchored or have a drug store or junior anchor tenant. And because leasing velocity has improved markedly over the past 12 to 18 months, value-add opportunities in this niche also are attracting more attention. However, flight to quality rules regardless of as- set size and type. The proper- ties that are trading well are set in more prominent retail locations with strong demo- graphics, and have histories of high occupancy and longer- term tenants. Higher barrier to entry markets with lower retail supply are preferred. For value-add plays, investors are also being highly selective, focusing on under-retailed, in-
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fill locations and markets with high barriers to entry. Why is this a good time for owners to contemplate selling? Lowry: Interest rates remain historically low (for now), cap rates have compressed con- siderably and credit is readily available once again. As such, leasing, investment demand and pricing all are quickly re- turning to pre-recession levels, presenting an ideal time for owners to stabilize or reposi- tion their properties and test the market. There is a huge in- ventory of solid smaller shop- ping centers in the Northeast that are highly marketable to private investors within this context. For example, earlier this year Levin Management took on leasing for a small shopping center in central NJ. At the time, one, 7,500 s/f vacancy represented 20% of its GLA. We successfully secured a desirable tenant to fill the space and recently began to selectively look for a buyer. Interest has been robust. What are the challenges in this investment niche? Lowry: Bringing sellers and buyers together can present the biggest hurdle in these smaller-center scenarios. A significant%age of properties in this class are privately held, family-owned real estate. While they may not want their properties out on the market publicly, they are interested in selling if the right buyer comes along. On the flip side, investors need to be more careful than ever before when it comes to buying properties. The retail industry is chang- ing, and challenges facing
bricks-and-mortar proper- ties – such as the reduction in number, or right sizing of stores by national and regional tenants as well as the growth of e-commerce – require buyers to vet potential investments thoroughly and with a healthy sense of caution. What advice do you have for sellers and buyers of smaller retail assets? Lowry: An increasing num- ber of small-asset sellers and buyers are reaching out to companies like Levin Manage- ment in an advisory capacity, to assist in alleviating some of the concerns and complexi- ties of the trading process. For sellers, advisors can help improve the position of prop- erties prior to their sale. As with the Central NJ shopping center mentioned earlier, this might mean bringing an asset to full occupancy to maximize value, or implementing needed repairs or cosmetic upgrades to enhance curb appeal. Estab- lished third-party real estate service providers also will have good relationships with the brokerage community, should a seller wish to go to market, and will know of potential buy- ers if an off-market disposition is preferred. On the buyer’s side, good advisors know their markets on a granular level. Their role may include helping investors better understand market specific retail fundamentals, providing market lease rates and other terms. They can also provide demographic profiles for tenants, iden- tify specific shopping center continued on page 14A
M id A tlantic Real Estate Journal — Economic Development — January 30 - February 12, 2015 — 3A E conomic D evelopment Economic Development
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Real Estate Journal — January 30 - February 12, 2015 — 3A
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D elaware
N ew J ersey
Delaware welcomes new business and nurtures existing companies with a highly touted business-friendly atmosphere, a skilled work- force, opportunities to innovate, and an entrepreneurial spirit that thrives in any economic condition. The First State boasts a favorable tax climate, stands as one of the lowest business cost locations in the country and offers a variety of financing programs designed for businesses of all sizes. As a result of these efforts and others, the state’s job growth has out-paced the nation’s for the past two years and we were recently recognized as one of the top two states best-prepared for the new economy.
Companies operating in traditional sectors such as agriculture and manufacturing continue to grow in Delaware by keeping current with the latest technologies and training their employees to operate cutting-edge equipment. Pharmaceutical and biotech firms place our state on the forefront of innovation with groundbreaking advances in curing and treating disease and accurate diagnosis. Our financial sector grew in the face of the recent downturn and has emerged ready to benefit from the growing economy. We’re growing niche sectors, such as aviation, by expanding training opportunities. And, as we know, every large company once started small, and with that in mind we do everything we can to foster entrepreneurship, start-ups and small businesses. Thanks to our five-star beaches, Delaware has become the go-to destination for summer vacationers, and tax-free shopping ensures busy holiday seasons at our malls and outlets. But our state is also home to an endless array of tourist sites and museums waiting to be discovered, and we make them easy to find with a series of trail systems. On behalf of the State of Delaware, I extend my best wishes for a successful 2015 to com- mercial real estate professionals in New Jersey, Pennsylvania, Delaware, Maryland, and Virginia. I look forward to working with you to continue to grow the First State’s economy. Sincerely, Jack A. Markell Governor
P ennsylvania
V irginia
It is my pleasure to extend my best personal regards and appreciation to the real estate professionals of the Mid-Atlantic Region. I commend you for contributing to the vitality of the Commonwealth’s economy and for working towards a more prosperous future for Pennsylvania and our neighbors. The Commonwealth remains committed to economic growth and job creation for our state’s citizens. My administration recognizes
that growing the private sector is the only way to accomplish these goals. I am confident that you share my passion for creating economic growth and I look forward to continue working with you in the years ahead to better serve Pennsylvania’s citizens and make our region an attractive place for businesses to grow and succeed. As Governor, and on behalf of all Penn- sylvanians, I am pleased to extend my best wishes to the real estate professionals of Penn- sylvania, Delaware, Virginia and New Jersey for continued success in growing the economy in our state and our region.
Sincerely, Tom Wolf, Governor
4A — January 30 - February 12, 2015 — Economic Development — M id A tlantic
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E conomic D evelopment By Jon Scott, Greater Reading Economic Partnership Manufacturing rebound benefits Greater Reading, Pennsylvania
T
he rebound in U.S. manufacturing is being experienced firsthand
in 2013 and reflect economic trends: 75 percent were from manufacturing and distribu- tion-related businesses. This interest in our area is understandable: • As the one-time site of the world’s largest textile plant, as well as other industries, Read- ing maintains its reputation as a global manufacturing center. It is still home to a number of international companies representing specialty metals, medical devices, food products and other industries. At the same time it is seeing growth in the business and financial services sector.
• The workforce is produc- tion-oriented. Of 13 cities in New Jersey and Pennsylvania analyzed by the Philadelphia Federal Reserve in 2014, Read- ing has maintained the highest percent – 20 percent – of jobs in manufacturing versus 12 percent for the other cities. In addition, Reading’s growing population is getting younger, which presents workforce de- velopment opportunities that will benefit relocating and ex- isting local companies. • The county is well situated for business success, with close proximity and easy access to major traffic arteries and mar-
kets in the mid-Atlantic and Northeast. • With its beautiful rolling hills, the area provides an at- tractive lifestyle close to, but outside of, large metro markets such as Baltimore, Washington D.C. and New York City. The location means a lower cost to live and do business, while pro- viding access to cultural, sports and educational opportunities available here and in nearby Philadelphia, Lancaster and Allentown. • The business community is proactive, agile and intercon- nected. The number of bank- ing, engineering, and economic
development organizations provide a highly supportive environment for companies to establish and grow their opera- tions. Moving to Greater Reading One example is Seibu Gik- en’s North American Opera- tions, SG America. In 2013, the Minnesota-based air handling systems company was looking at alternate U.S. sites to give them access to a larger labor pool and lower cost of business. With the support of the Greater Reading community and busi- ness leaders, they relocated and are now operating in a 25,000 s/f location. The area is also responding to the pent-up demand for East Coast distribution centers. Two national retailers looking to establish such centers recently set up operations at a 323-acre complex in the northern part of the County. PetSmart and Dollar General opened their facilities in 2014 and from the site, Pet Smart alone is looking to supply 25 percent of its retail stores nationwide. The complex, called Berks Park 78, is close to Interstate 78, a key interstate stretching from west of Berks County to New York City. With its rural location and close proximity to densely populated East Coast areas, this and other planned distribution parks will benefit from the distribution center trend. Local Expansion Manufacturing companies already based in Greater Read- ing are taking part in the rebound. Several years ago, the parent of Cambridge-Lee Industries LLC, a local maker and distributor of copper tube and other metal products, was interested in transferring a new manufacturing facility planned for Mexico to Cambridge-Lee’s Reading site. Given the oppor- tunity to retain and add jobs, the county, economic develop- ment organizations and local contractors worked to expedite the project, allowing it to open on schedule. Other businesses moving to or growing in Greater Reading include: • Cambridge-Lee Industries • Carpenter Technology • East Penn Manufacturing • RM Palmer • SunRich Fresh Foods • Sweet Street Desserts • TAB Industries Developing a SkilledWorkforce continued on page 6A
in our region, a long-time and resilient h o m e f o r manufactur- ing and in- dustry. As the pri- mary market- er for Greater
Jon Scott
Reading, PA, located in south- eastern Pennsylvania, we’ve seen inquiries from companies and site selection groups grow- ing steadily over the past four years. They reached new highs
How Cambridge-Lee went to market faster in Greater Reading.
When copper tube manufacturer Cambridge-Lee Industries decided to expand operations, they chose to build a new plant in Greater Reading. More than just an affordable, strategic location in southeastern Pennsylvania, Greater Reading gave them access to a skilled workforce, a choice of excellent properties, and a well-connected business community that streamlined the approval process—so they could break ground months ahead of schedule. Discover greater possibilities. Visit GreaterReading.com.
GreaterReading.com • (610) 376.4237 Be something greater.
Real Estate Journal — Economic Development — January 30 - February 12, 2015 — 5A
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E conomic D evelopment By Scott Mertz, SIOR, NAI Mertz An Industrial Renaissance in Florence, New Jersey
A
NAI Mertz is acting as the exclusive leasing agent for the property, which can ac- commodate a single big box user or can be divided for multiple tenancy. While recent statewide economic development initia- tives in New Jersey tend to fa- vor repressed areas, Florence has introduced measures that have allowed the township to compete in an incentive-driv- en marketplace. With oppor- tunities for both a five-year tax abatement and a 30-year PILOT (Payment in Lieu of Taxes) program, Florence has
remained successful in luring new business during the wave of activity spurred by the Eco- nomic Opportunity Act. Sitting at the crossroads of the NJ & PA Turnpikes, Flor- ence has always been geo- graphically desirable to both corporations and employees. The pro-business climate of both the township and Bur- lington County has Florence well positioned to continue to thrive as a manufacturing and distribution hub. Scott Mertz, SIOR, prin- cipal, NAI Mertz. n
bout 45 minutes north of Center City Phila- delphia and an hour
and a half south of New York City, F l o r e n c e Townsh i p , New Jersey, has become a hub f o r i ndus t r i a l and ware -
Scott Mertz
house facilities because of its central location within the northeast corridor. Of- fering easy access to the NJ Turnpike, PA Turnpike, I -295, and many of Southern New Jersey’s major routes and roadways, Florence is the ideal location for manu- facturing and distribution centers. The area's indus- trial parks including Haines Industrial Park, NFI Park at Florence Crossings and Logistics Pointe (formerly Cedar Lane Industrial Park) are home to a number of large employers. Familiar names such as BJ's Wholesale Club, Sports Authority and Christ- mas Tree Shops have made Florence the home base for their northeast distribution operations. Over the past two years, the area has experienced a surge in corporate reloca- tion and expansion activ- ity. Subaru of America and Destination Maternity both opted to build new state-of- the-art distribution centers, and Burlington Coat Factory reinforced its commitment to the county that provides its name by breaking ground on both a new corporate head- quarters and distribution center. The area now boasts a daytime population of 17,000 people. Unlike other popular locations for distribution centers, Florence still has a considerable amount of land available for development. Florence’s connectivity will be further enhanced by an infrastructure project under- way in Pennsylvania that will provide direct access to I-95 from the PA Turnpike. The initial phase of the project is expected to be completed by 2018. The high demand for state- of-the-art distribution fa- cilities in Florence has led to proposed construction at Covington Group’s Logistics Pointe. Plans are underway for a new 577,200 s/f, cross-
Logistics Pointe: Southern New Jersey
house will feature 32’+ clear ceiling heights with 58 tail- gate docks with punch-outs for an additional 50 docks.
docked facility at this indus- trial park with immediate access to Exit 6 of the New Jersey Turnpike. The ware-
6A — January 30 - February 12, 2015 — Economic Development — M id A tlantic
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E conomic D evelopment Penn’s Northeast Penn’s Northeast creates new vision for Northeastern Pennsylvania
I
f you were to describe 2014 in Northeastern Pennsyl- vania, it would be one word-
the region. Recently, Penn’s Northeast also identified the most important assets of the region and developed strategies to enhance and market them to businesses looking to relocate. For example, the organiza- tion saw great potential when recruiting high volume natural gas users. Due to the close prox- imity to the Marcellus Shale formation, the region is able to deliver low cost natural gas. “If you’re sensitive to the price of natural gas Northeastern Pennsylvania is the place to be,” Penn’s Northeast president Ron Maloney said. “Industrial gas users in New Jersey and New York will find the cost of
natural gas to be on average thirty-one to thirty-six percent lower in our area.” Penn’s Northeast also rec- ognized labor costs twenty percent lower than the national average, and it’s close proxim- ity to much of the population as benefits to the region. As a re- sult, the organization identified four main industries that had the greatest incentives to locate in Northeastern Pennsylvania- security & defense, food & bev- erage manufacturing, certain aspects within bioscience and natural gas consumers. In order to recruit these busi- nesses, they implemented a new lead generation program.
Previously, Penn’s Northeast recruited through the leads received by the state. This pro- gram allows the organization to also recruit companies it iden- tifies as potential leads. The recruitment process increased the organizations exposure and continually strengthens the re- gion. “Since November 2013, we had thirty-four reactive leads and twenty-one unique leads, a huge transition from the one hundred percent reactive leads from previous years,” Maloney said. With sights to the future, Penn’s Northeast is planning a major fundraising campaign. The campaign focuses on find-
ing new investors to enhance the already diverse representa- tives of the area. “We want to focus on adding new people to our scope,” Maloney said. “If we work towards a regional mar- keting plan, our entire region will prosper.” Many are already seeing promise in these changes. For example, previously Equilib- rium Equities invested in the organization, however the deci- sion makers stopped seeing the benefit of contributing and de- cided to end their partnership a few years back. After seeing the recent progress the group decided to reinvest in Penn’s Northeast. At the end of the day, Penn’s Northeast still has the same mission it always practiced. “We serve as a no pressure, neutral third party, single point of contact to help a business ex- plore how Northeastern Penn- sylvania can expand its base, better serve existing customers or reduce costs, said Maloney. He also pointed out the organi- zation also works to help busi- nesses search for properties, incentives, research and more when choosing the region. “Now we just have a clearer picture of how to do so.” Penn’s Northeast is a pub- lic/private partnership of agencies dedicated to assist- ing businesses interested in locating within Northeast- ern Pennsylvania. n The manufacturing rebound means an ongoing need for workers with the right techni- cal skills. With the growing number of youth in this area as well as a large immigrant Latino population, we saw this as an enormous opportunity for our region. The response has been programs like “Careers in 2 Years,” our partnership with a local community college and career and technology centers to provide training in mechatronics, welding and other skills. The graduates of this program are already help- ing to meet the needs of area manufacturers. With these and other initia- tives, Greater Reading is well positioned to serve the needs of U.S. and global manufactur- ers looking for opportunities to grow. Jon Scott, President and CEO, Greater Reading Eco- nomic Partnership. n continued from page 4A Jon Scott . . .
Rebuilding. Th a t ’ s b e - cause that’s e x a c t l y what Penn’s No r t h e a s t , the region’s economic de- v e l o pm e n t organization, accomplished.
Ronald Maloney
Since its inception, Penn’s Northeast worked to bring new businesses to Northeast- ern Pennsylvania by helping business decision makers learn the benefits of operating in
More Natural Gas More Savings More Potential
WWW.PENNSNORTHEAST.COM 570-883-0504 ext. 1
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8A — January 30 - February 12, 2015 — Economic Development — M id A tlantic
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P Colliers Int’l. concludes sale of Pennsauken Office Building Airport Industrial Park Physical and Tactical Healthcare Services, LLC receives incentive package by the NJEDA
signment for our office, since we were trying to sell a well maintained office building located in the middle of an industrial park,” said Marc Isdaner, a principal in Colliers International’s Mount Laurel office. “However, we were able to overcome that ‘obstacle’ by creating and implementing a direct marketing campaign for this property.” The Airport Industrial Park is situated between Routes 38, 70 and 130, providing direct access to Routes 676 and the Ben Franklin Bridge. n EDA announces new approvals under the Retail Fuel Station (RFS) Program Trenton, NJ — In sup- port of the Christie Adminis- tration’s ongoing commitment to addressing emergency fuel supply challenges highlighted during Superstorm Sandy, the NJ Economic Develop- ment Authority (EDA) an- nounced new approvals under the Retail Fuel Station (RFS) Program. The $7 million grant program allows tar- geted retail fuel stations, on and near evacuation routes, faster and more reliable ac- cess to back-up power during an energy emergency. This round of 29 approv- als represents grants total- ing $1.23 million. To date, 62 stations have completed required environmental and design reviews and can now move forward with plans to install back-up power solu- tions using grants provided through the RFS Program. Of the 62 approvals, 42 will install permanent generators, while 20 will rely on “quick connect” devices, which pro- vide connection points for mobile generators. Grants for the approved stations total more than $3 million. “The RFS program is a critical component of the State’s overall strategy to rebuild in a resilient man- ner,” said EDA CEO Michele Brown . “Each new approval is meaningful for the sense of security it will help to foster on a very local level during emergencies.” The RFS Program is funded through the federal Hazard Mitigation Grant Program. n
ADT had been the only tenant to ever occupy the building. The buyer, Physical and Tactical Healthcare Services, LLC (PATHS), was recently awarded an incentive pack- age by the New Jersey Eco- nomic Development As- sociation (NJEDA) related to the Economic Opportunity Act of 2013. The building was ideal for PATHS because of the proximity to their current Cherry Hill facility as well as the abundant amount of park- ing spaces. “This was a challenging as-
ennsauken, NJ – Colliers Interna- tional’s Southern New Jersey office concluded the sale of an 18,240 s/f office building located in the Air- port Industrial Park at 7895 Browning Rd. in Pennsauken. The Colliers team of Evan Zweben, Ian Richman , and Marc Isdaner marketed the facility on behalf of The Bloom Organization. The property sold for $1.75 million. The Bloom Organization built 7895 Browning Rd. in 1985 for ADT, who vacated the building earlier this year.
7895 Browning Rd.
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New board members represent a diverse range of knowledge and experience Schuylkill Economic Development Corporation announces new officers and directors
OTTSVILLE, PA — New Chairperson of the Schuylkill Eco- nomic Development Cor- poration (SEDCO) , Dr. Ir- vil Kear , recently welcomed new members to the Board of Directors and Officers of the corporation. At the January 8, 2015 an- nual meeting of the Board Directors, Kear first thanked immediate past Chairman, John Boyer for his service. “John accomplished a lot during his tenure as Chairman and I P VABeachEconomic Development announces industrial facility sale Virginia Beach, VA — Tidewater Valve and Fitting, Inc., a wholesale plumbing supplier primarily serving industrial, government and commercial business seg- ments, is under contract to purchase a 2.94-acre site at 2825 Crusader Circle in Vir- ginia Beach. The company, a certified small, woman-owned busi- ness, has been leasing prop- erty at 1373 London Bridge Rd. in Virginia Beach since 2011. This new location signi- fies its success and growth in Virginia Beach. “Tidewater Valve and Fit- ting has participated in the YesOceana program with its previous expansion,” said Warren Harris , director of Virginia Beach Economic Development . “This facility purchase reaffirms the com- pany’s commitment to remain in Virginia Beach and allows them to take advantage of the incentives associated with this corridor.” The facility on Crusader Circle will be 9,797 s/f when complete. The industrial dis- tribution facility remains in the YesOceana corridor of Virginia Beach. The Virginia Beach Development Authority has awarded an APZ-1 EDIP grant in the amount of $40,000 based on the company’s capital investment of $1,124,371. GreshWall of CB Richard Ellis is representing the com- pany in this transaction. The YesOceana program was established in response to the Base Realignment and Closure Commission’s rec- ommendation to close NAS Oceana in 2005. n
certainly have big shoes to fill. I hope to pick up where he left off and continue in guiding the economic development activi- ties of SEDCO.” Kear also welcomed Ken Huebner and Karen Kender- dine to the officers group. “Ken and Karen have given a lot of time and service to SEDCO over the years and will make tremendous officers moving for- ward. I welcome them both to our leadership team and trust they share in my excitement to get to work.” In addition to the new officers installed at the annual meet-
ing, five new members were named to the Board Directors. Kirk Fanelli of L & K Con- struction, Michael Hammer of Sapa Extrusions, Champ Holman of the Arro Group, Lance Miller of Wegman’s, and Michael Rader of the PA Senate’s Agriculture and Ru- ral Affairs Committee were nominated to fill board seats. “Our new board members represent a diverse range of knowledge and experience,” said Kear. “Their addition to the Board of Directors will certainly help strengthen our organization.” n
Shown from left: Ken Huebner, Assistant Treasurer, Karen Kenderdine, Treasurer, John Boyer, Immediate Past Chair, Dave Snyder, Secretary, Dr. Irvil Kear, Chairperson, Letitia Reiser, Assistant Secretary, Steve Field, Vice Chairman.
Highridge Travel Plaza Schuylkill County, PA
a• Direct Access To Busy I-81 Trucking Corridor Via Exit 119
• I-81 average traffic volume: 24,000 vehicles each day
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• 36 Acre Travel Plaza
• Fully-Permitted, Pad-Ready Site
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570-622-1943 | www.sed-co.com
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