ARLSTADT , NJ — Russo Develop- ment and Forsgate C Spanning themunicipalities of Lyndhurst, Rutherford, &North Arlington Russo&Forsgate complete $42.5million purchase of Kingsland site fromNJSEA

ISSUE HIGHLIGHTS Volume 31, Issue 13 July 12 - 25, 2019

history,” said Edward Russo, CEO of Russo Development, whose company, along with Forsgate Industrial Part- ners, has been active in the Meadowlands since the 1960s and are both in their second generation of family manage- ment. With the country’s premier road network serving 20.3 million people within 60 miles and a skilled labor force of more than 1.3 million just eight miles from New York City, the Meadowlands region is unmatched as a logistics center. The region’s retail marketplace remains strong while the online economy has spurred new requirements for delivery solutions, all of which have driven growth in the market, resulting in an occu- pancy rate of more than 95% for logistics e-commerce facili- ties such as those planned for Kingsland Meadowlands.  “We saw this property as a unique opportunity to capital- ize on the positive momentum of the regional market and the limited supply of sites to accommodate large scale development. The strategic location and access to a plen- tiful and capable workforce provides a terrific opportunity for the modern industrial oc- cupiers whose demands we are building to meet.” said Johan Henrikson , vice president of development with Northpoint. The move represents North- point’s first investment in Delaware. The firm has been incredibly active throughout the United States with 13.3 million s/f of industrial space currently under construction and 11.7 million s/f leased in the past year. Industrial cli- ents of the development group include Amazon, The Home Depot, Staples, Chewy.com and Patagonia.  taxes and that local and state governments are supportive in the attraction of new busi- ness.”

Industrial P a r t n e r s have com- pl eted the $42.5 million purchase of the 718-acre Ki ng s l and Tract, a for- mer landfill




Edward Russo

718-acre Kingsland Tract

spanning the municipalities of Lyndhurst, Rutherford, and North Arlington, and will build Kingsland Mead- owlands, a new logistics e- commerce development of up to six buildings totaling more than 3 million s/f of industrial space. The property, which was owned by the New Jersey Sports and Exposition Au- thority NJSEA, has been the subject of redevelopment for decades. NEW CASTLE, DE — Col- liers International’s Logis- tics and Transportation Solu- tions team of Mark Chubb, Michael Zerbe, Summer Coulter has successfully sold a strategic east coast land site, a 190 acre parcel of industrially zoned land, on behalf of Akzo Nobel to Kansas City based Northpoint Development . The site is located at 1386 Schoolhouse Rd. in NewCastle

To close the transaction, which Russo and Forsgate won in a competitive bid- ding process in June 2015, the partners engaged in a complex entitlement and en- gineering design process that resulted in a master plan that will transform this blighted property into a modern indus- trial complex unlike any other development of its kind in the Meadowlands region. The Partners expect to deliver the

first building to the market in late 2021. “The Meadowlands submar- ket is one of the strongest in- dustrial/warehouse markets district in the United States, and the opportunity to build this project in such an out- standing location is a great accomplishment for not only our companies, but for the re- gion that we have helped de- velop over the course of more than 100 years of combined



Colliers Logistics teamsells one of the few large land sites in New Castle County, DE with 190-acre sale

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and is predominantly farm- land with a small previously developed portion historically operated on by Stauffer Chem- ical. It will be redeveloped by Northpoint as “Delaware City Logistics Park” (DCLP), fea- turing four industrial build- ings totaling over 2 million s/f of modern distribution and fulfillment space. “This site fielded great inter- est as one uniquely capable of accommodating modern/ bulk industrial development and ability to service the needs of fulfilment, distribution

and e-commerce users with a nearly equidistant central location to New York and Washington D.C. – and it is just 40 miles from Philadel- phia. This means it can service millions of customers in the Northeast, Mid-Atlantic and beyond 43% of the US and 53% of the Canadian population reside within a day’s truck drive.” said Mark Chubb, senior managing director of Colliers International. “It’s also well-known Delaware is a business-friendly state with low operating costs and

Inside Cover A — July 14 - 27, 2019 — M id A tlantic

Real Estate Journal


Real Estate Journal — July 12 - 25, 2019 — 1A


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Mid Atlantic Real Estate Journal

Mid Atlantic R eal E state J ournal Publisher, Conference Producer . .............Linda Christman AVP, Conference Producer ...........................Lea Christman Publisher ........................................................Joe Christman Section Publisher ............................................. Steve Kelley Section Publisher ............................................... Kim Brunet Editor/Graphic Artist ......................................Karen Vachon Office Manager ............................................... Kerrin Devine Contributing Columnist .................................. Doug Haines Mid Atlantic R eal E state J ournal — Published Semi-Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 350 Lincoln St., Suite 1105 Hingham, MA 02043 USPS #22-358 | Vol. 31, Issue 13 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 781-740-2900 | Fax: 781-740-2929 www.marej.com The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal

The Secret to Being Safe and Secure – Is a Puppy G Doug Haines uess what, the secret is in the process or formula to getting se- curity right. If you don’t follow it you won’t be safe or secure. THREE BASIC REALITIES Security must be in place be- fore the event occurs. You can’t protect against all threats. And protection from one threat will offer protection from a variety of others. First, before the event occurs. I don’t know how many times I’ve heard someone say, “Well I’ll get a camera system if I get broken in to”. How dumb. There won’t be anything else that they come back for because they’ve already took your valu- ables, stupid. Second, it is just too costly to provide protection from everything. If you were to try, you would have to cre- ate a solid lead box without a door that can’t be moved. If it can be moved, given enough time, someone will break into it. Besides, it wouldn’t be very effective to have a box that YOU


Celebrating 30 Years

the owner can’t get into in the first place. And thirdly, protec- tion from one risk will provide protection from other risks. For example, a laminated glass windowwill keep shards from a bomb blast from injuring people and it will also keep a burglar from breaking in. THE RISK FORMULA The formula is comprised of three factors; asset criticality, the threat and vulnerabilities. Asset criticality is just that, how critical is it to you or your stated function. Asset critical- ity is affected by a variety of factors, a couple being direct support to what you do or lack of redundancy somewhere else. You can affect asset criticality by recreating redundancy of

services/products or function at a second location that won’t be effected by a hazard at the first location. But the bottom- line is do you have something that someone else might want? The threat is the threat. It can be either natural or man- made. I bet you can come up with, and in pretty short order, about 50 or so threats. Natural hazards, of course include hur- ricanes/high winds, rain/snow, earthquakes, and the like, and here in California – fire. This is a great segway, into man-made threats, which include; fire/ar- son, criminal activity including terrorist attack, burglary, and vandalism and so on. Allot of time is spent on thinking you continued on page 8A

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Real Estate Journal — July 12 - 25, 2019 — 3A


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M id A tlantic R eal E state J ournal

URNEE, IL — Cen- terPoint Proper- ties announced an CBRE represents lessor and lessee in the 190,380 s/f transaction CenterPoint signs lease with Luxor, Prime Logistics Destination in Gurnee, Illinois G out to expand Luxor’s office needs.

just 30 minutes from O’Hare International Airport and eas- ily accessible via the four-way interchange at Grand Ave./ Rte. 132 and I-94.” Matt Yang , CenterPoint manager of development transactions, said, "We're glad we could provide this logistics solution for Luxor. This is an exceptional warehouse facil- ity that has been built from the ground up and is being customized to meet their ex- pansion needs.” CBRE represented both Luxor and CenterPoint in the transaction. 

The Gurnee facility, which is expected to be completed in September 2019, is located on a 9.88-acre site and includes 7,000 s/f of office space. Ad- ditional building features include 36ft clear height, 19 trailer stalls, 195 auto parking stalls, 20 docks, LED light- ing and an ESFR sprinkler system. “The location of this class A facility is a prime logistics des- tination,” said BrianMcKier- nan , CenterPoint senior vice president of development. “It’s

88-month lease with Luxor Workspaces, LLC for a 190,380 s/f speculative facility located at 1001 Tri-State Parkway in Gurnee, IL. This building will provide Luxor with additional warehouse space, as they have outgrown their current facilities due to an increase in consumer demand. "We selected CenterPoint as a strategic partner for this space because of their deep understanding of design for modern warehousing and logistics,” said Paul Roche, president at Luxor. Sk i l l ed nur s i ng portfolio sold by IPA Seniors Housing NEW JERSEY & PENN- SYLVANIA — Institutional Property Advisors (IPA) , a division of Marcus & Mil- lichap , announced the sale of three DePaul Health Care nursing homes, one in New Jersey and two in the Phila- delphia MSA. Paramount completed the financing and closing of this transaction with the assistance of Lazmor Cap- ital and Ziegler Investment Banking . The brokers in- volved were Mark Myers and Joshua Jandris , both of IPA. Paramount owns and operates skilled nursing facilities (SNF) in New York, New Jersey, Pennsylvania, and Maryland All three facilities were owned and operated by the DePaul family, a Philadel- phia developer of residential communities and health care businesses including medical office buildings and SNFs. IPA identified the ideal buyer for the portfolio and navigated through the challenges of sell- ing facilities for the DePaul family who built and owned the communities for decades. At the time of the sale, the facilities were operating at breakeven. However, the new operator will implement improved market- ing and services to enhance the census and census mix while simultaneously creating staff- ing efficiencies, all of which will increase earnings. The facilities in this sale are: Angela Jane Pavilion, a 49-bed SNF in Philadelphia; River’s Edge, a 120-bed SNF in Philadelphia; and Absecon Pavilion, a 162-bed SNF in Absecon, NJ. 

and 30,000 s/f of warehouse space, and in Birmingham, AL, with 150,000 s/f of ware- house space. The Waukegan warehouse operations will be relocated to Gurnee, and the Waukegan facility will be built

Luxor, a division of EBSCO Industries, manufactures a range of furniture and prod- ucts for education, business, healthcare and industrial uses. They currently operate in Waukegan, IL, with offices

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Mid Atlantic Real Estate Journal

4A — July 12 - 25, 2019 — M id A tlantic

Real Estate Journal


M id A tlantic R eal E state J ournal Signed over 15 new leases in recent months Azarian’s portfolio occupancy soars to historic levels N EW YORK & NEW JERSEY — John Azar ian , CEO o f



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The Shoppes at North Brunswick

John Azarian

nounced that The Azarian Group’s portfolio’s occupancy has soared to historic levels. The Azarian Group has signed over 15 new leases in recent months. Poke Bowl has leased 1200 s/f at The Shoppes at North Brunswick, Routes 1 and 130, North Brunswick. The Shop- pes at North Brunswick, a 150,000 s/f premium lifestyle center, with 43 national stores, services, and eateries and is one of the top Shopping Center destinations in the area with spaces ranging from 997 s/f to 10,444 s/f. Remaining vacant spaces range from 2,475 s/f to 8,426 s/f. The Fair Lawn Medical Arts Building is fully leased. Academy Spine and Physical Therapy has leased an addi- tional 1780 s/f and expanded its exiting practice and offers chiropractic, physical therapy, acupuncture and massage services. Applause Home Care has leased 1780 s/f. The Fair Lawn Medical Arts building is located on Fair Lawn Av- enue, right off Rte. 208, with underground private parking for tenants and staff, and full time, on site janitorial

Central Jersey Boxing are open for business. Remain- ing vacant spaces range from 2,925 s/f to 12,050 s/f. The Town Plaza II, 500 Rte. 303 in Orangeburg, NY, has leased 1580 s/f to C&E Island Flavor, which specializes in Caribbean cuisine. Remaining vacant spaces range from 900 s/f to 4,313 s/f. Plaza K Shopping Center, US-I , Woodbridge, NJ, has leased 3,153 s/f to Pho One Vietnamese restaurant which is now open. Remaining va- cant spaces range from 2,093 s/f to 2,615 s/f. The total renovation of the Pine Brook Plaza, Rte. 46West in Pine Brook, NJ, is now com- plete. There are spaces avail- able from 900 s/f to over 2,100 s/f. 900 s/f has been leased to Crave City which is now open. 1,286 s/f has been leased to Nail Connection, which will be opening soon. The Azarian Group is also pleased to announce new staff members including: lease ac- count administrator Jennifer Medina ; lease assistant/ so- cial media - Drew Heckman ; receptionist/ office assistant - Catelyn Sanges .  for the 2020 BOMA Interna- tional or volunteer to showcase our world class city as it nears. I would like to thank each per- son of BOMA Philadelphia for their confidence and support. I vow to carry on the tradition of excellence that precedes me.” said Resinski, incoming chair. “Steve is an excellent leader both here with his team in the Tri State region and within our national REMS platform. I congratulate him for earn- ing distinction in the pre- eminent trade organization of the commercial real estate industry and look forward to an exciting year.” said Doug Sayer , president and CEO of Colliers International in Philadelphia. 

services. The Livingston Town Cen- ter has leased 900 s/f to Lash Lounge which offers eyelash extensions, tinting and thread- ing and permanent makeup. Pure Barre has leased 1,886 s/f and has opened for business. Verizon Wireless has leased 1,456 s/f and will open soon. Remaining vacant spaces range from 612 s/f to 2,178 s/f. The Neptune Plaza Shop- ping Center, 2200 Rte. 66, Neptune, NJ, has leased 1,721 s/f to Jamagrille Restaurant, which offers the finest selec- tion in Jamaican cuisine. Nep- tune Plaza Shopping Center is fully rented. The Mountain Plaza Shop- ping Center, Rte. 46W, Rocka- way, NJ, has leased 1229 s/f to Hot Tips Beauty Lounge. The Mountain Plaza Shopping Center is fully leased. The Raritan International Center, 426 Raritan St., Sayreville, NJ, has leased 2,500 s/f to Ocean Spa, which provides the best in day spa services. 2,129 s/f has been leased to Central Jersey Boxing, which provides box- ing classes for men, women and children. Ocean Spa and

PHILADELPHIA, PA — Colliers International an- nounced that Steve Res- Resinski of Colliers named new BOMA Chair international organization that represents the owners and managers of all commer- cial property types. BOMA Philadelphia counts over 500 professionals throughout the Tri State in its member- ship. Its mission is to provide excellence among commer- cial real estate professionals and related service providers through advocacy, profession- al development, educational & training opportunities, in- formation sharing, forums for interaction, and community involvement. Steve Resinski inski RPA, C PM h a s been select- ed to serve as Chair of BOMA Phil- adelphia for t h e 2 0 1 9 - 2020 year , as it leads

up to serving as host city for the 2020 BOMA International conference, a four-day event attracting thousands of com- mercial real estate profession- als nationwide to Philadelphia. Founded in 1907, the Build- ing Owners and Managers Association (BOMA) is an

“This year will be an exciting one, with many opportunities for BOMAPhiladelphia profes- sionals to be involved through planning and execution phases

T ax I ssues & A ccounting

Real Estate Journal — July 12 - 25, 2019 — 5A


M id A tlantic

By Stuart A Katz, CPA, MST, Friedman LLP Philadelphia Use and Occupancy Tax

S ince the financial cri- ses of the late 2000s, out-of-town developers

month or $500 per quarter. Where there are multiple ten- ants or businesses occupying a property, the exemption must be allocated equally among all the users. How to Pay on Time. The tax can be filed and paid electronically online through the City’s eFile/ePay site. Monthly filers must file and remit the tax by the 25th of each month. Some small filers can apply to the City to file an- nually instead of monthly. A 1% deduction may be taken as compensation for the expense of collecting and remitting the tax by the person who collects and timely remits the tax due. No commission is permitted for an owner of the property continued on page 8A

Tax? U&O is imposed on business- es who use or occupy real estate within the City of Philadelphia School District to engage in any business, trade, occupation, profession, vocation or any other commercial or industrial activity. The user is subject to the tax, but landlords and their rental agents collect it on a monthly basis from their ten- ants. While the tax is collected by the City, the Commissioner of Revenue administers the tax and the generated revenue is used to fund the school district. Origins of the Use &Occupancy Tax. U&O was birthed in an effort to shift more of the tax burden to commercial and industrial property, while adhering to the

1967 Pennsylvania Supreme Court decision Madway v. Board for the Assessment and Revision of Taxes. The ruling prohibited multi-rate taxation of different types of real estate within a jurisdiction, which is frequently practiced in other areas. Since U&O is not of- ficially a real estate tax, it’s constitutionally permissible. How the City Imposes this Tax. For the fiscal year ended in June 2018, according to the Philadelphia Department of Revenue’s 2018 Annual Report, Use and Occupancy tax collec- tions were $176 million. This represents 16% of collections for the school district. Use and Occupancy Tax collections increased by $37 million from FY17 to FY18, or 26.6%, largely

due to rising property values. In the last ten years, Use and Occupancy Tax collections have increased 43% from $112.7 mil- lion to $175.6 million. The tax is imposed at the rate of 1.21% of the assessed value of the property. The assessed value is determined by the Office of Property Assessment “OPA.” Since 2014, the OPA has been assessing properties based on their fair market value according to the City’s Fair Value Initiative. For years beginning July 1, 2015 and thereafter, there is a $165,300 exemption amount that is sub- tracted from the assessed value of the property actually used for business purposes. This exemp- tion translates into a $2,000 annual exemption, or $167 per

and institu- tional funds have flooded Philadelphia t o cap i t a l - ize on real e s t a t e o p - portunities. However, few out-of-state

Stuart A Katz

developers knew about the city’s hefty and rather confus- ing School District Business Use and Occupancy tax—also known as “U&O.” This article takes a closer look that this tax and explores opportunities for you to ease your burden and focus on growth. Who Gets Pegged With the



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Real Estate Journal


T ax I ssues & A ccounting

Integrated apps. bolster the bottom line via streamlined tasks & improved communication How to Build the Best Construction and Development Technology Stack W hy should you care about your tech- nology stack? Wait

resides in the cloud. Here’s why you should care. A well-integrated technology stack helps streamline rou- tine business tasks and also greatly increases the ability to use information to improve planning. The “stack” is pow- ered by the multi-cloud world. This means multiple business applications and services in the cloud effortlessly interact in a way that best serves the individual users. With the universal growth of platforms powering business functions, the importance of a technology stack is being recognized in all industries, old and new, small

and large. Within this context, con- struction and development practitioners are adopting cloud platforms and appli- cations that facilitate proj- ect management, property management, estimating, budgeting and valuation, AP processing, and document and approval management. In turn, the construction and development technology stack is taking shape, incorporating a variety of tools to increase ef- ficiency and accuracy, improve focus on value-add opportuni- ties, and enhance the ability to make confident decisions.

The enterprise construc- tion management/accounting platform serves as the core of a well-assembled construc- tion tech stack. Today’s most cutting-edge products (such as Acumatica Construction Edi- tion) allow other components of the stack to integrate with this core, sharing data in real time to facilitate every aspect of doing business. As you’re assembling a tech- nology stack for your construc- tion or development organiza- tion, take a look at these best- in-class technology platforms. Project Management Procore improves visibility

and enables management of multiple projects from one central program. Offering real-time access and instan- taneous tracking for every team member, it keeps every- one up to date from bidding to completion. Procore is a drawing-centric application. Submittals, RFIs, punch lists, photos and other details are included in the most current drawing set. Popular collaboration soft- ware SmartSheet enables teams to automate timing for tasks like collecting informa- tion from different workers and sending requests for ap- proval from one colleague to another. The intuitive inter- face enables fast implementa- tion to configure, adapt and improve processes. Smart- Sheet boasts “frictionless shar- ing” and the creation of clear accountability to bolster task ownership and team engage- ment. Honest Buildings is the leading integrated, data-driv- en project management and procurement platform built for commercial real estate. Companies use Honest Build- ings to centralize project data, increase transparency, auto- mate bid management and standardize reporting. Hyphen Solutions , spe- cifically designed for the resi- dential construction sector, enables homebuilders to man- age schedules and streamline order processes with suppliers, distributors and manufactur- ers. Its full suite of digital services addresses everything needed to keep projects on time and under budget. Property Management IBS’s Imperium Powered by Acumatica serves as a single source for capturing and processing real estate enterprise data, and includes deep functionality in the areas of escalations and recoveries – with robust lease abstract- ing, and utility and tenant service billing features for multi-family, commercial and other specialized markets. Elegantly integrated solu- tions for electronic rent pay- ments, payment processing, and resident screening make managing day-to-day tasks automatic and convenient, often resulting in significant cost savings over conventional approaches. It provides all of this, along with unparalleled integration capabilities. continued on page 14A

– what IS a t echno l ogy stack? It’s ac- tually pretty s i mp l e . A t ech s tack i s a group of multiple t echno l ogy applications

Michael Mullin

that today’s businesses use to manage their core functions. Decades ago, it was an actual stack of hardware in the IT department. Now, like most technology, it’s virtual and

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Real Estate Journal — Tax Issues & Accounting — July 12 - 25, 2019 — 7A


M id A tlantic

Tax Issues & Accounting By Bruce Johnson, Capstan Tax Strategies Compare & Contrast: 1031 Exchanges and OZs: Both options can be good investment vehicles for CRE


ntil recently, tax- payers who wanted to defer recognition

property selection, restrictive timelines, etc. On the other hand, contrib- uting to a pooled fund of this nature means that underlying assets are illiquid — extract- ing oneself from an QOZ in- vestment may be more chal- lenging than simply cashing out of a straightforward 1031 exchange. QOZs have two major limi- tations — they are finite in number and geographically limited. Rapidly gentrifying areas are going fast — with potential for overinvestment continued on page 14A

appreciated assets (stocks, bonds, etc.). However, a sale to a related party is not a permissible source of gain. In another contrast, only capital gains from the sale have to be reinvested into the QOF. A taxpayer certainly may invest the principal or other mon- ies, but only the capital gains portion will be eligible for the tax advantages. Investments in QOFs must be in cash, and there is no “middleman” required. In one sense, QOFs have a little more flexibility than 1031 exchanges — as noted

earlier, the QOF can invest not only in real estate but also in operating businesses with personal property, in company stock, in capital resources like factory equipment, etc. In this sense, QOZ investments may have more potential for diversification, and they may become useful resources for start-up operations in need of capital. QOZ investments are also attractive to the pas- sive investor. Since these pooled funds are diversified and professionally managed, the individual investor doesn’t have to concern himself with

Qualified Opportunity Zone Investments Enacted by the TCJA, Quali- fied Opportunity Zones (QOZs) are 8,700-plus federally-des- ignated Census tracts in low- income communities nation- wide. Interested investors may defer capital gains tax by reinvesting capital gains into a Qualified Opportunity Fund (QOF) that will be used to acquire property and/or businesses located in an ap- proved QOZ. The gains to be reinvested may stem from the sale of real estate (similar to a 1031), or from the sale of other

o f c a p i t a l gains when selling real estate had one opt i on — the 1031 e x c h a n g e . However, the Tax Cuts and Jobs Act of

Bruce Johnson

2017 introduced the Qualified Opportunity Zone, a new op- tion that has many investors and developers intrigued. Both of these vehicles defer capital gains tax, increase buying power and encourage reinvest- ment, but as the saying goes, the devil is in the details, and the thoughtful investor will familiarize himself with all the nuances before determining which strategy might be most suitable. The 1031 Consider a taxpayer who owns a property that has greatly appreciated in value. The taxpayer would like to sell, but fears the sizeable associated capital gains tax. For almost 100 years, the 1031 exchange has been a viable solution: the taxpayer may sell the property in question— the relinquished property — and fully reinvest the proceeds into a replacement property, in the process deferring capital gains tax on the sale. While a suitable replacement property is being located, a qualified in- termediary holds on to the pro- ceeds from the relinquished property. 1031 exchanges are essen- tially “swaps” of “like-kind” real property. Under the new rules instituted in the Tax Cuts and Jobs Act of 2017 (TCJA), real estate sales are the only permissible starting point, and both the principal and the capital gains portions of the sale must be reinvested in the replacement property in order to defer the entire gain. The properties must be held for investment purposes or be a trade/business — an exchange can’t involve land being developed or properties purchased for resale, for ex- ample. There is no geographic restriction on 1031 property, and the exchange may even take place between related parties. Furthermore, the investor is under no obligation to improve the replacement property in any way.

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8A — July 12 - 25, 2019 — M id A tlantic

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M id A tlantic R eal E state J ournal

LD BRIDGE, NJ — R.J. Brunelli & Co., LLC announced Schlossman of Castle RE Services handles 9600 s/f lease R.J. Brunelli &Co. ink leases for Dollar Tree in NJ & NYC O

NAI Hanson negotiates lease for MOB space in Hackensack, NJ

have developed your Design Basis Threat (DBT). Use this “new” DBT to determine what security system you need to use in order to protect your- self. Some threats require the application of electronic secu- rity systems and others don’t. Incorporating non-electronic mechanisms, especially when designing inhabited space or in the built environment are usu- ally more effective. Security for the most part should be hidden, it’s there but the untrained eye doesn’t see it. People use the space because it makes them feel warm and fuzzy. You know the feeling – like when you get a puppy. Remember, two things: First, security cannot be a burden to those using the premises. If it is, people will figure out how to circumvent it and it will become ineffective, and second, when you think you’re done, start over. Doug Haines is owner/ CEO of Haines Security Solutions, LLC in Ventura, CA.  Located a block away from Hackensack University Medi- cal Center, 83 Summit Avenue is a 3,000 s/f, two-story medical office building currently leased to Specialized Therapy Associ- ates, North Jersey Surgical, and Cardiac Care Associates. Ide- ally located nearby the area’s largest hospital as well as Rte. 17 and I- 80.

can affect the threat. Well, the truth is you can’t. You can affect its likelihood of occurrence or how bad it can become but that really has to do with vulnerability. So, the question to ask yourself is how vulnerable am I? Each hazard has its own tactic(s). Some require tools and others don’t THEPROCESS –MAKEALIST First, determine how criti- cal is what you are trying to protect to your overall service/ product/location. That will tell you if you need to protect it or not. Think of it this way, you wouldn’t build a $1,000 shed to put your $15 bike inside of. Then make a list of possible hazards – both natural and man-made. For example, I live in California so fire is on my list twice. Then make a list of possible tools that would be needed for the “bad guy” to perpetrate his/her crime or for the hazard to occur. And, then for each tool, see if you are sus- ceptible to its use. Now you’ve completed the risk formula and HACKENSACK, NJ — NAI James E. Hanson has negoti- ated a 1,325 s/f lease for Dr. Linda Silva-Karcz at 83 Sum- mit Ave. in Hackensack. NAI James E. Hanson’s Dominic Fittizzi represented the land- lord, Brian Walsh , and the tenant, Dr. Linda Silva-Karcz, in the NAI James E. Hanson transaction. WEEHAWKEN, NJ — Cervelli Real Estate & Property Managements announced the sale of 2406- 2408 Palisade Avenue. The 9 unit apartment house in Weehawken sits on the cliffs and offers views of Manhat- tan skyline. The seller, an operator of this lone property decided to sell and take ad- vantage of the hot Hudson county market. Weehawken in particular is of interest to investors given its access to Manhattan via various sources as well pas its highly rated school systems. The buyer, was completing a 1031 and quickly realized the value hidden in this building given its low rents and undeveloped garden level residential space. Headquartered in North Bergen, New Jersey, Cervelli Real Estate & Property Man- agement was founded in 1983

the square footage occupied by each tenant. It is also prorated by the days of actual use or occupancy during the business year, defined as 360 days. What is the Actual Value Ini- tiative? As noted above, The Phila- delphia OPA is charged with providing fair and accurate property assessments. The Actual Value Initiative (“AVI”) was implemented in Tax Year 2014 for the assess- ment of all real property, land and buildings in Philadelphia at their current market value. Market value reflects the ap- proximate amount a property would sell for in today’s real estate market. The purpose of AVI has been to make sure that all values are assessed fairly and in compliance with state laws, statutes and indus- try standards. It ensures that properties of equal value get the same assessments. For commercial properties, the OPA considers the income approach, market approach, and in some situations, cost approach, and utilizes the ap- proach that is most appropri- ate based upon property type and use. It also considers the income and costs of operating the property to determine its value, or considers the cost of construction and land. How You Can Minimize the Tax. You may want to consider an appeal of the real estate tax assessment if the owner believes the assessed value In the Hamilton transac- tion, co-brokered by Metro Commercial , Dollar Tree signed for a 9,764 s/f inline space at Hamilton Plaza, a 151,000 s/f center located on White Horse Pike and Kuser Rd. The chain will occupy a portion of a former Kmart store at the site, whose other tenants include Planet Fit- ness and a soon-to-open Star- tional Wholesale Liquidators space in the Planet Fitness- anchored center. Ripco Real Estate served as a co-broker on the deal. Elsewhere in the state, leases were signed that are projected to bring Dollar Tree to locations in Deptford (southern New Jersey) in Sep- tember 2019, and Hamilton (central region) and Denville (northern region) in October 2019.

is too high. Appeals are filed with the OPA noted above. You can search and compare property values through the City’s online property search application. https://www.phila.gov/de- partments/office-of-property- assessment/ Secondly, only the actual space rented by a tenant is subject to tax. To compute the tax attributable to each tenant, take the number of s/f of floor space contained in any building or other struc- ture exclusive of the number of s/f in service, utility and common areas. All such space other than service, utility and common areas is included in "square feet available for use or occupancy,” even though some or all of such space may be excludable from the numer- ator of the tax apportionment fraction (see Section 505 of the U&O regulations) because it is vacant or because its use may be specifically excluded from taxation. Building owners should work with the building engineers to determine the “s/f available for use or occupancy” to insure that tenants are not being overcharged. Please contact Stuart Katz or your Friedman LLP adviser to assist with a review of your current or projected U&O li- abilities and the accounting involved in allocating the tax among the tenants. Stuart Katz is senior tax manager inFriedmanLLP’s Philadelphia office.  bucks. The Denville lease, co-brokered by Bill Schloss- man of Castle Real Estate Services , will bring Dollar Tree to a 9,600 s/f inline space at 559 East Main St., adjacent to the New Jersey Transit Station. The chain will absorb a portion of a space previously occupied by a Foodtown supermarket. Fi- nally, in Deptford, a lease was signed for a 10,000 s/f loca- tion in an outparcel building shared by Auto Zone. Home Depot anchors the property, which is located at 1360 Hurffville Rd. The Deptford lease was co-brokered by Keith Seymour of Equity Retail Brokers . All of the Dollar Tree leases were brokered by Danielle Brunelli , president and prin- cipal of the Old Bridge-based firm. 

the recent completion of a series of leases that wi l l int ro - duce nation- al and local r e t a i l e r s and service providers to

continued from page 2A The Secret to Being Safe . . .

Danielle Brunelli

that uses the property for its own business. Who’s Excluded? Certain types of property us- age are excluded from the tax, including: • Use of the dwelling or prin- cipal place of residence of user or occupier • Any use of the property sub- ject to the Pennsylvania Hotel Occupancy Tax • Service, Utility and Com- mon areas • Use or Occupancy for a nonbusiness purpose • Vacant commercial proper- ties, or portions of commercial properties that are not cur- rently in business use • Persons engaged in activi- ties related to the Port of Phila- delphia are also exempt • Eligible taxpayers located in a Keystone Opportunity Zone will receive a credit against their use and occupancy tax • Any person exempt from real estate tax is also exempt from the U&O tax. For ex- ample, property leased to the government, schools, hospitals and religious organizations are exempt. To be excused from col- lecting tax from a nonprofit, a landlord must obtain a copy of the nonprofit’s Federal Exemp- tion Notice. The landlord must submit this document with the first tax return filed after receiving it. For each occupant, the tax is computed separately. In a multi-story commercial office building, the tax is based on sites in New Jersey and NYC. In its role as Dollar Tree’s real estate representative statewide, R.J. Brunelli bro- kered four additional leases for sites in New Jersey. In the central region, Dollar Tree is expected to open in July 2019 in a 15,000 s/f inline unit at Linden Square Shopping Center located on West Saint Georges Ave. in Linden. The chain occupies the former Na-

continued from page 5A Philadelphia Use and Occupancy Tax . . .

Cervelli Real Estate & Property Managements announces apt. sale

and is recognized as one of the state’s most experienced specialists in commercial investment real estate and property management. Its primary aim is to provide professional brokerage ser- vices to private investors and financial institutions involved in income producing multi-family properties and shopping centers, and Cer- velli offers comprehensive, research-driven transaction solutions.  2406-2408 Palisade Avenue

Real Estate Journal — July 12 - 25, 2019 — 9A


M id A tlantic

M id A tlantic R eal E state J ournal


1588-1600 Amsterdam Avenue Hamilton Heights, Central Harlem 44 Apartments | Nine Stores

FINANCED ACQUISTION LOAN Financing Brokered By: Judah Hammer, Vice President jhammer@meridiancapital.com | 212.612.0163

SOLD $16,800,000

Sale Brokered By : Amit Doshi, Senior Executive Managing Director adoshi@meridiancapital.com | 212.468.5959 Shallini Mehra, Managing Director smehra@merdiancapital.com | 212.468.5958

1588-1600 Amsterdam Avenue_6-6-19.indd 1

6/6/19 10:01 AM

10A — July 12 - 25, 2019 — Tax Issues & Accounting — M id A tlantic

Real Estate Journal


Tax Issues & Accounting

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Diane Schaefer, CES President Diane Schaefer, CES ® President

Melissa Beck Exch nge Coordinator

Real Estate Journal — July 12 - 25, 2019 — 11A


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M id A tlantic R eal E state J ournal

Adaptive reuse of mixed-use development creates 56 apt. units +17,700 s/f of commercial space CPC & Empire State Development celebrate revitalization of historic building in Utica, NY U

Comptroller DiNapoli and our partners at the State’s Com- mon Retirement Fund, Mayor Palmieri, Empire State Devel- opment, JPMorgan Chase and National Grid.”

As a nonprofit housing fi- nance company with a long history of serving communities throughout New York State, CPC understands the impor- tance of investing in projects that help breathe new life into neighborhoods and which con- nect them with their historic past. Former industrial build- ings like mills, factories, and warehouses, which were once hubs of activity throughout New York can be put back into use as new housing and retail space – again serving as an- chors of activity and economic opportunity for neighborhoods continued on page 14A

TICA, NY — The Community Preser- vation Corporation (CPC) joined New York State Comptroller Thomas DiNapoli, senior advisor to Governor Cuomo for Upstate Economic Development John Maggio- re , Utica Mayor Robert Palm- ieri, the development partners of DoyleHardware Building LLC, Empire State Devel- opment Corporation (EDC) , and other stakeholders for a ribbon cutting to celebrate the opening of the former Doyle Hardware building located at 330 Main St. in Utica. The over $15 million adaptive re- use project has transformed the formerly vacant four-story building, resulting in 56 new market rate apartment units and more than 17,700 s/f of commercial space on the build- ing’s ground floor. “Today marks yet another step forward in the ongoing transformation of Downtown Utica into a true neighborhood. The addition of these 56 loft apartments and the ground- floor commercial space will add a vitality to the Bagg’s Square neighborhood that had previously been lacking. In addition, this project has been a catalyst for other projects in the immediate vicinity that are either already underway or in the planning stages – all contributing to making Utica the best little city. Thank you to State Comptroller Thomas P. DiNapoli, the Community Preservation Corporation, Empire State Development and all of the various project partners for your investment in this project and in the City of Utica,” said Robert Palmieri, Mayor of Utica. "We are pleased to partner with the Community Preserva- tion Corporation to invest in housing at the former Doyle Hardware Building,” said DiNapoli. “As trustee of the state pension fund, I welcome this opportunity for a sound investment for our retirement fund that has also helped reha- bilitate this building.” “Projects like The Doyle, that put our historic buildings back into use as resources of housing and economic op- portunity are critical to the future of cities like Utica,” said Thomas McGrath , se- nior vice president, director of Upstate Revitalization at the Community Preservation Corporation. “My thanks to

The former Doyle Hardware building is a historic site sit- ting on 1.11 acres of land across the St. from Utica’s historic and still operating Union Station. The property, now called The Doyle has been converted into one micro-unit, 15 studio apartments, 26 one- bedroom apartments, two one-bedroom apartments with loft and 12 two-bedroom/two- bathroom apartments. Former Doyle Hardware building located at 330 Main St. in Utica, NY.

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12A — July 12 - 25, 2019 — M id A tlantic

Real Estate Journal



D el M ar V a Hodson and Goldstein lead transaction M&T Realty Capital Corp. provides $16.05M in financing

On behalf of Roger Schlossberg, Esq.

Hager Hall Conference Center & Restaurant/Bar Business & Property For Sale in Hagerstown, MD

p o r a t i o n has closed a $16,050,000 Freddie Mac O p t i g o S M G r e e n U p loan for the acqui s i t i on of Berkeley & Warwick Place, a 265- unit rental t o w n h o m e c ommun i t y in Richmond on behalf of Walde Enter- prises. Walde R

Enterprises will make upgrades to the property to improve both energy and water usage as part of the Green Up program. Berkeley & Warwick Place offers one-, two-, and three- bedroom units for rent. Each unit features an eat-in kitchen with a walk-in pantry and a roomy floor plan. Property amenities include laundry rooms and a playground. The property is located near Chip- penham Parkway and I-95, offering convenient access to lo- cal employers and to downtown Richmond. The 10-year loan is struc- tured with three years of in- terest-only payments, followed by a 30-year amortization.

The transaction was led by managing directors Matthew Hodson and Debra Gold- stei n of M&T Realty Capital Corporation’s Falls Church, VA and Washington, DC offices, respectively. “Freddie Mac’s Green Up program offers multiple ben- efits to owners who are inter- ested in reducing the energy and water consumption at their properties,”states Matthew Hodson. “The improvements Walde Enterprises plans to make to Berkeley & Warwick Place will help their tenants save money on both energy and water usage, while bringing the property in line with modern sustainability standards.”  • Penthouse units • Private balconies • Luxury finishes throughout • A rooftop lounge • Surface parking • Short- and long-term bicycle storage Owned by Lock7 Develop- ment and financed by Adler Financial, the project is cur- rently under construction and will be complete in 2020. *Rendering courtesy of Square 134 Architects. 

ICHMOND, VA — M&T Realty Capital Co r -


• Turn-key opportunity includes all 3 businesses - Hager Hall : 30,000 sq.ft. with ballroom plus 3 entertaining spaces - Barefoot Bernie’s Bar & Grille : 240 seat restaurant + 24 seat bar - Cancun Cantina Bar : 8,000 sq.ft. nightclub, 7 indoor/outdoor bars • Well-maintained buildings totaling 56,000 sq.ft. on 9.6 acres • All offers encouraged

Matthew Hodson

Mike Matlat (631) 465-9508 mike@agrealtypartners.com

Michael Stanford Broker: (301) 733-4183 mstanford@cesproperties.com

Debra Goldstein

Kinsley breaks ground on new condo Building in DC

WASHINGTON, DC — Kinsley Construction, Inc. was recently awarded a con- tract to construct a new mul- tifamily building in Wash- ington, DC. Located at 4111 Kansas Ave., NW, the building will be constructed on the now vacant lot behind the YES! Organic Market in Petworth. The new 33,000 s/f, 40-unit building will include: • One-, two- and three-bed- room units with open floor

Client: A&G Realty Partners Publication: Mid-Atlantic RE Journal Issue Date: 7/12/19 Size/Color: 4” x 4.25” BW


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