R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news
ISSUE HIGHLIGHTS Volume 25 Issue 7 April 12 -25, 2013
Jones Lang LaSalle and JM Zell Partners represents Sanofi Colliers International arranges 198,000 s/f long-term lease on behalf of Ashland
P
arsippany, NJ — In one of the largest real es- tate transactions in the
opportunity through existing state-of-the-art infrastructure for life sciences companies to grow in or relocate to New Jersey.” “Ashland’s choice of Bridge- water as a first-class environ- ment for its specialty chemical business unit comes at the culmination of several factors,” added John Cahill , also of Colliers International’s Life Sciences Practice. “Ashland was drawn to the facility’s quality, design, infrastructure, and amenities, as well as to the state’s highly skilled workforce and intellectual property, and access to major highways.” Bryn Cinque and James Bailey , with Colliers Interna- tional, also represented Ash- land in the transaction. n
state so far this year, Colliers International has arranged a long-term, 198,000 s/f lease on behalf of Ashland, Inc. at 1041 Rte. 202-206 in the New Jersey Center of Excellence complex in Bridgewater. Ashland, set to utilize the facility for laboratory and office space, will relocate its specialty ingredients unit from Wayne to the new location later this year. “New Jersey has long been considered a premier national life sciences cluster and con- tinues to undergo a paradigm shift,” said John Cunning- ham , national director of Col- liers International’s Life Sci- ences Practice Group, who, BALTIMORE, MD — St. John Properties, Inc. has initiated construction activi- ties on more than 320,000 s/f of commercial office space spanning an area from Aber- deen Proving Ground (APG) in Harford Cty. to Ashburn Technology Park, located in Northern VA. Configured as a mix of single-story R&D/flex, single-story office, and multi- story commercial office prod- uct, the five new buildings are being built on a speculative basis with no pre-leasing com- mitments.
10-15A
Klein of Kay Realty facilitates 495,000 s/f
1041 Rte. 202-206
3B
with Larry Bergen of Colliers’ Philadelphia office, led the leas- ing efforts on behalf of Ashland.
“Large single-occupant cam- puses like The Center of Ex- cellence at Bridgewater create
Project of the Month : The New Green Tree School
St. John Properties initiates construction on 320,000+ s/f of speculative office space in MD & VA
16-IBC
8135 Maple Lawn Blvd.
Directory
“Despite persistent reports of economic uncertainty, gen- eral business indecision and a perceived slowdown in leas- ing activity, we see pockets of tremendous opportunity and sustained growth in select submarkets in the MD and Northern VAmarketplace,” said Jerry Wit , senior VP, market- ing for St. John Props . • In Harford Cty., the con- struction activity features 6170 Guardian Gateway, a single- story, 25,160 s/f class “A” office building located within The
Government and Technology Enterprise (The GATE) project, a 416-acre business community located inside Aberdeen Prov- ing Ground (APG). • Construction on 809 Pin- nacle Dr., a 51,240 s/f flex building, is underway at BWI Technology Park II in Anne Arundel County near the BWI Airport. • Through a joint partner- ship with Greenebaum En- terprises, Inc. , St. John Prop- erties is constructing 8135 Maple Lawn Blvd., a four-
story, 140,000 s/f class “A” office building within Maple Lawn, a 600-acre mixed-use business community in Howard County. Development of Maple Lawn includes 388,000 s/f of exist- ing office space, as well as the development rights for more than 800,000 of additional s/f of office space. • In Northern VA, construc- tion is underway on 44190Wax- pool Rd. and 44200 Waxpool Rd., two single-story 54,120 s/f buildings that are expected to be delivered in May. n
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Fox Rothschild Expands Real Estate Practice in New Jersey with Eight-Attorney Team In a move that bolsters our already significant Garden State presence, we are pleased to welcome Robert A. Klausner, Deirdre E. Moore and Christopher M. Rider – all noted by Chambers USA as leading real estate attorneys in New Jersey – as partners, along with Grace J. Shin and Mat D. Carlson also as partners, and as associates, Jennifer L. Solberg, Joshua J. Franklin and Corey D. Kaplan. This team possesses not only an extensive knowledge of the state’s real estate market but also a solid history of assisting leading real estate developers and nationally recognized companies as they cultivate and grow their real estate portfolios. With three offices currently in New Jersey – Roseland, Princeton and Atlantic City – and a new location slated to open this summer in Morristown – along with a bench strength of more than 150 attorneys statewide, we are solidifying our connection with and commitment to our clients in the Garden State.
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2A — April 12 - 25, 2013 — Mid Atlantic Real Estate Journal MAREJ A DVERTISERS D IRECTORY Bayshore Recycling ........................................... 3B Bennett Williams ............................................ 11C BL Companies ................................................... 9C Brasler Properties ............................................. 1C Business Card Directory................................. 17A Bussel Realty Corp......................................... IC-B Cooper Pest Solutions ....................................... 8B Cooper-Horowitz ............................................. 19A Cushman & Wakefield ...................................... 6B Deerwood Real Estate Capital ......................... 8B Earth Engineering .......................................9B,4C Fameco............................................................... 3C Fortna Auctioneers............................................ 4A Gerber-Somma Associates ................................ 1B GREP ................................................................. 2C Griffin Land....................................................... 8C Harvey Hanna & Associates............................. 7A Hawley............................................................... 3C Heller Industrial Parks .................................... 3B Hinerfeld.............................................. 17A, IFC-C Keast & Hood .................................................. 13C Landcore ............................................................ 9C M. Miller & Son................................................. 3A March of Dimes ................................................. 4C Mericle ...........................................................BC-C Metro Commercial ............................................ 2C Metro NJ Chapter of the Appraisal Institute 12A NAI CIR........................................................... 10C NAI Summit ...................................................... 8C Northmarq Capital ......................................6A,7C Penn Cap ........................................................... 8C Penn’s Northeast ............................................... 2C Phila. Metro Chapter of the Appraisal Institute 10A Poskanzer Skott Architects .............................. 9B Provident Bank .............................................. IC-A Regal bank......................................................... 4B Region VI Chapter of the Appraisal Institute 11A SEBCO Laundry Systems ................................ 2B Sheldon Gross Realty........................................ 2B Southern NJ Chapter of the Appraisal Institute 14-15A St. John Properties .................................................BC-A SUBWAY.......................................................... 17A Swope Lees ........................................................ 4C Target Building ........................................... IBC-C The coalition of PA Real Estate Appraisers ... 13A The Kislak Company ........................................ 4B Thompson Management ................................... 2B Tim Haas ........................................................... 9C Tom Hall Auctions............................................. 4A Tri-State REALTORS Alliance ....................IBC-A WCRE ................................................................ 7B Whitesell........................................................BC-B
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Mid Atlantic R EAL E STATE J OURNAL Publisher ............................................................................Linda Christman Publisher ...............................................................................Joe Christman Section Publisher ................................................................Elaine Fanning Section Publisher ....................................................................Steve Kelley Senior Editor/Graphic Artist ................................................ Karen Vachon Office Manager ...................................................................Joanne Gavaza Guest Columnist ........................................................... Karen Sacks, Esq. Mid Atlantic R EAL E STATE J OURNAL ~ Published Semi-Monthly P.O. Box 26 Accord, MA 02018 (Mail) 312 Market Street, Rockland, MA 02370 (Overnight) Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, P.O. Box 26, Accord, MA 02018 USPS #22-358 | Vol. 25 Issue 7 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
By Karen Sacks, Esq. VLJ Provides Pro Bono Legal Aid to NJ Victims of Superstorm Sandy
T
he wrath of Superstorm Sandy continues to take its toll on many New
Jersey residents, specifically those dealing with legal mat- ters directly related to the once- in-a-century storm. To aid those individuals, Volunteer Lawyers for Justice (VLJ) has created the Disaster Legal Response and Preparedness (DLRP) Pro- gram to provide them with pro bono legal services. Victims of Sandy have a number of ways to access assistance from the VLJ program including free le- gal clinics in Monmouth, Ocean andHudson Counties; extended representation; and a statewide hotline staffed by law students and VLJ staff and volunteer attorneys. “Although it has been sev- eral months since Superstorm Sandy devastated parts of the state, some legal needs of vic- tims of the storm are just now becoming acute. VLJ and our volunteers are poised to help with longer-term issues such as rebuilding and navigating the
insurance claims and appeals process,” said Karen Sacks, Esq., founding executive direc- tor of VLJ. At the free legal clinics, VLJ and its volunteer attorneys provide counsel, advice and limited scope assistance to par- ticipants. Matters often range from insurance, housing and landlord/tenant issues to public benefits, and FEMA appeals, among others. Volunteer attorneys at the clinics are from Citi, Duane Morris LLP, Gibbons PC, Jack- son Lewis LLP, McCarter & English LLP and Patton Boggs LLP. The clinics will be held twice a month at Brookdale
Community College’s Hazlet campus and Hoboken’s Hurri- cane Resource Center. Future clinics are planned in an Ocean County location and in Jersey City. All victims of the storm with legal issues in New Jersey, regardless of their income and assets are eligible to meet with a volunteer attorney at the legal clinic for advice and brief service. Clinic participants needing extended representa- tion are screened for financial eligibility and VLJ will attempt to locate a volunteer attorney to take on full representation of the client’s legal issue. n Applicants will be screened
Contact: Jeffrey A. Silberman 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-260-6000 • www.kaplaw.com Other Offices: • Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120 Kaplin Stewart At t o rne y s a t Law Getting you through the maze of real estate law. Strategy. Skill. Success.
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Mid Atlantic Real Estate Journal — April 12 - 25, 2013 — 3A
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M id A tlAntic R eAl e stAte J ouRnAl Property was purchased from owner, Wyckoff Associates Bussel brokers acquisition of 100,000 s/f industrial facilit C ARtEREt , nJ — Bussel Realty Corp. (BRC) , a leading in-
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dustrial real estate services firm in New Jersey, announced that it has represented Ever- flow Supplies, a leading dis- tributor of valves, heating components, plumbing spe- cialty and pipe products in New Jersey, in the acquisition of its new distribution head- quarters at 100 Middlesex Ave. The 100,000 s/f industrial property was purchased from owner, Wyckoff Associates . vice president Jordan Metz of BRC was responsible for the transaction. “Vacant for some time, 100 MiddlesexAvenue was an ideal opportunity for Everflow’s growing operations,” noted Metz. “I have represented Everflow’s real estate needs for years, and as it became ap- parent that the best business solution was to expand into a larger facility, we immediately set out to locate a property which would provide growth while remaining in close prox- imity to its current customer, vendor, and employee base. 100 Middlesex Avenue pro- vided every solution: high ceil- ings, abundant loading, offices, parking, and situated at an excellent location at Exit 12 of the New Jersey Turnpike, near to Port Newark and Central New Jersey. We are delighted to help them achieve their real estate goals.” The new owner plans on making several renovations and upgrades to the property as well. The property is stra- tegically located near several major roadways, including the New Jersey Turnpike, Routes 1 and 9, and proximate to Port Newark, Central New Jersey and Lower Manhattan. “We are excited to be moving into this well-located facility which will enable us to better serve our clients,” said owner David Templer of Everflow. “Jordan did an outstanding job of “frontloading” and complet- ing the entire due diligence process prior to ever going to contract on the property. By do- ing this, we assured the seller we were a qualified buyer, which led to a clear path for us to close the deal, even in spite of several last minute bids by other parties.” The City of Carteret was instrumental in the transaction, providing sup- port to all parties concerned
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throughout the entire due dili- gence and sales process. Metz will also market the 65,000 s/f of industrial space being vacated by Everflow at
its former Linden location. 2401 East Linden Ave. is an 85,000 sf industrial facility and 3,000 s/f of newly-renovated office space. n
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A — April 12 - 25, 2013 — Mid Atlantic Real Estate Journal www.marejournal.com M id A tlantic R eal E state J ournal A uctions Approval of Lon Morris College sale is positive for estate, community AmeriBid LLC opens Reston, VA Office: Second Office in Washington DC Area
R
eston, VA — Amer- iBid LLC announces the opening of their
comes as AmeriBid LLC is expanding its auction ser- vices to offer homeowners the opportunity to include their own property in AmeriBid’s monthly auctions. “This is an exciting opportunity for ho- meowners as we offer a way to create excitement about the sale of a property that is unparalleled in the resi- dential real estate market,” said Stephen Karbelk , the co-chairman and founder of AmeriBid LLC. Before the new service came online, homeowners had few options beyond list- ing their home for sale. Now, sellers have the opportunity that AmeriBid’s corporate clients have been leveraging for years: to take advantage of the excitement a profes- sional auctioneer creates on auction day to sell their property to the high bidder. A professionally marketed auction brings buyers to the property on auction day
who are excited to have the chance to buy the property. Additionally, the company is excited to announce the recent hiring of Eugene Davidzon . Davodzon brings a decade of real estate expe- rience to the company along with degrees from the Uni- versity of Michigan in Eco- nomics and Urban Planning. He is a licensed real estate broker in Washington, D.C., Maryland, and Virginia. “The DC real estate market is heating up so auctions will drive the prices even higher,” said Eugene Davidzon. “I’m excited to join a company with the vision and experi- ence needed to become an industry leader.” In other Ameribid news, Court approval of the auc- tion of Lon Morris College in Jacksonville, TX was good news not only for the estate, but for the entire Jackson-
ville area, according to Kar- belk, which marketed the college and managed the auction. “The Jacksonville Inde- pendent School District got a great value on the properties it bought, including land that will serve as the site for a new elementary school. And an area business obtained land and facilities it can use to expand. This puts these properties in the hands of organizations that can put them to positive use to cre- ate jobs and support the local economy,” said Karbelk. Most of the assets were purchased by the Jackson- ville Independent School District and 11 x 17 inc., an office supply company, in a sale that totaled $2,490,500. The sale was confirmed by the U.S. Bankruptcy Court for the Eastern District of Texas. “It was an exciting project for AmeriBid, with a lot of
unique challenges. But as with any other property we sell, we had to look at the assets, determine their po- tential uses, and identify the markets for them. This called for a lot of decisions and for close coordination with chief restructuring officer Dawn Ragan . Seeing it all work out successfully is immensely gratifying,” said Karbelk. While unique, the proj- ect was well suited to the methods honed by AmeriBid through scores of auctions for financial institutions. “What- ever assets you’re selling, it is important to realistically assess the market, and to position them to attract pro- spective bidders. Sometimes -- as was the case with Lon Morris College -- you have to reach out to prospective buyers across the country and create the urgency of an auction in order to sell it to someone in the immediate area,” said Karbelk. n
second o f - fice in the DC market area. AmeriBid LLC is ex- cited to an- nounce it is expand i ng i t s ope r a -
Stephen Karbelk
tions in the Washington, DC metropolitan region with the opening of a second office in the local market. The com- pany will operate an office in Reston, VA and Gaithers- burg, MD with more offices to open shortly. Located just off the Dull- es Toll Rd. in the Reston Town Center, the new office will help the company serve the need for residential, commercial, and industrial real estate auction services throughout the region. The new office opening
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Info & Terms at: www.tomhallauctions.com Tom Hall Auctions (#1734)
Mid Atlantic Real Estate Journal — April 12 - 25, 2013 — A
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Merger makes group largest in the region ManekinjoinsColliers Int’l. | Baltimore
1,022 mixed-use site “Greenbelt Station”, MD The Roseview Group advises on 1,022-units $26.575m sale
BALTIMORE, MD — Col- liers International | Bal- timore and Manekin LLC , two of the region’s full-service commercial real estate firms, announced that Manekin’s property management and brokerage groups will merge with Colliers International | Baltimore. Manekin brings 10 million s/f of managed property to Colliers’ 7 million s/f, which combined totals 17 million s/f, making the merged company the largest third- party property management organization in the region. The merged entity will be branded and identified as Colliers In- ternational | Baltimore, and Manekin principals Richard Alter and Cole Schnorf will become equal partners in the combined management company. As part of the merger, more than 40 employees with Manekin’s property manage- ment and brokerage groups, including six brokers, will join Colliers’more than 80 existing employees. Manekin’s senior vice president and director of brokerage Adam Nachlas and senior vice president George Santos will also become principals within the Colliers International | Balti- more brokerage group. “My partners and I have admired the principals and leaders of Manekin for many years. Many of our partners and associates have had great success working with the Manekin principals,” said Timothy Hearn , CEO of Colliers International | Bal- timore. “The opportunity to grow our management com- pany by 10 million s/f, expand our brokerage team, and add 40 valuable employees is not an opportunity that comes around very often.” Manekin, founded in 1946, is one of the largest full-ser- vice commercial real estate companies in the region and has a history of projects val-
G
reenbelt, MD — The RoseviewGroup announced the sale,
estimated $10 million over the course of 18 months. The rare infill location with partially completed infrastructure and a rapidly recovering residential market in PG County contrib- uted to many exceptionally strong offers from some of the country’s top multifamily de- velopers. Significant physical and political barriers to entry made this site unique and in high demand for multifamily/ mixed-use development. “After widely marketing the property, we were able to obtain an offer that rewarded our clients and their shareholders for a thoughtful and patient approach to maximizing value at this bank-owned site,” said Stephen Corridan , partner at The Roseview Group. “The advanced level of in-place in- frastructure and approvals provided investors an increas- ingly rare opportunity to hit the ground running and capture
significant revenue in year one. We are pleased that the market responded so favorably to this previously stalled development. It is a testament to the years of thoughtful planning and the current cooperative relation- ship enjoyed with the local planning authorities.” Roseview engaged a local broker on behalf of the lender, oversaw the preparation of a comprehensive marketing package, and managed an ef- ficient and competitive sales process. The sale closed on February 27, 2013 at a price of $26.575 million. Kenneth Michaels Co.’s, Ken Michaels, Wayne Curry and Jeff Ludwig acted as seller’s brokers and develop- ment consultants in the trans- action. Randy Rutledge of Miles and Stockbridge was the legal counsel representing the seller. n companies and also represents charitable, medical and educa- tional institutions both in the United States and in more than 50 countries worldwide. “This building is the ideal location for our expanding Delaware practice, and we are pleased that Keystone was able to accommodate our current and future space needs with this transaction,” said Mark Silow, Esq. , firmwide manag- ing partner at Fox Rothschild. “We are confident that this new space will facilitate a more seamless business operation for our firm as we continue our growth.” The building is within close proximity to both I-95 and pub- lic transportation via the Wilm- ington Amtrak Station. The Philadelphia International and NewCastle County airports are within a 20-minute drive. Wilmington is referred to as the “corporate capital” of the world. More than 50% of For- tune 500 companies call the city their corporate home due to a beneficial tax structure. n
on behalf of a bank advi- sory c l i ent , of an 87-acre mixed-use site featuring ap- provals for up to 1,022 resi- dential units. This shovel-
Richard Alter Timothy Hearn
ued at more than $2 billion. “Manekin is excited about the opportunity to associate
Stephen Corridan
ready infill site is located be- tween the I-495 Beltway and MD -193. The seller took ownership of the property in 2011. At that time, Roseview was hired to develop a plan to stabilize the property, mitigate future devel- opment risks and coordinate the eventual disposition. Rose- view subsequently renegotiated three development agreements and modified existing zoning approvals which increased the value of the property by an WILMINGTON, DE — Key- stone Property Group an- nounced that Fox Rothschild LLP has signed an 11-year lease for 20,184 s/f on the second and third floors at Citi- zens Bank Center, an 18-story, 221,686 s/f office building at 919 North Market St. A tenant of the building for 15 years, Fox Rothschild had previously occupied 17,000 s/f on two non-contiguous floors. With this transaction, the firm gains the opportunity to have contiguous space on two floors with an interconnecting stair- case, as well as a private lobby and elevator. “Fox Rothschild now has the ability to create a new, modern office environment to better serve its growing base of cli- ents,” said Richard Gottlieb , senior VP of Keystone Property Group. Fox Rothschild’s new space overlooks the recently upgrad- ed Rodney Square. Within the core of Wilmington’s cultural district, the building is only steps away from the DuPont
“My partners and I have admired the principals and leaders of Manekin for many years. Many of our partners and associates have had great success working with the Manekin principals,” said Timothy Hearn
with an international compa- ny that also provides for local leadership. The opportuni- ties that Colliers can provide our employees, in terms of educational and professional development and access to an expanded geographic platform with 1.25 billion s/f under management globally, is out- standing. We’re looking for- ward to having access to the additional resources to better serve our clients,” said Alter. Alter will continue as CEO of Manekin’s development and building ownership groups with Cole Schnorf leading development and Craig Wess also continuing as the presi- dent of Manekin construction. Manekin development and construction are not a part of the merger. Alter went on to say, “This is a particularly unique op- portunity as well, given that several of the Colliers Interna- tional principals had started their careers at Manekin, and the fact that Tim Hearn and I have had a long friendship founded on common busi- ness interests, a commitment to civic involvement, and a passion for the real estate industry.” “We consider Richard, Cole and their development team to be leaders in this region. We look forward in the future to furthering our relationship with the development and con- struction groups at Manekin,” Hearn said. n
Fox Rothschild LLP expands and renews at Keystone Property Group’s Citizens Bank Ctr.
919 North Market St.
Hotel, Grand Opera House, the Baby Grand, DuPont Play- house Theatre and the histori- cal Queen Theatre and World Café Live. Doug Simon of Newmark Grubb Knight Frank rep- resented Fox Rothschild in the transaction. This national law firm has more than 500 attorneys practicing in 17 of- fices coast to coast. The firm provides a full range of legal services to public and private
6A — April 12 - 25, 2013 — Mid Atlantic Real Estate Journal
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Team secures $18.6m in equity from an insurance co. MAC Realty Advisors places $28.6m construction loan
W
ASHINGTON, DC — MAC RealtyAd- visors, LLC(MAC) ,
ter House’s surface parking lot. Construction of the five- story wood-frame building is planned delivery in the first quarter of 2015. “Kalorama West’s infill loca- tion in a desirable submarket was recognized by several lenders and resulted in a com- petitive process that led to best-in-class terms,” said An- drew McAllister, executive director at MAC. “MAC worked with the bank to help them understand and underwrite the substantial in-place land basis which re- sulted in a loan that required virtually no new cash equity,” added Britton Browne, senior director at MAC. AndrewMcAllister, Bruce Levin, Britton Browne and Nick Rubenstein led the placement effort for MAC. ■ In a separate MAC trans- action, on behalf of Brad- dock Metro Place Investors, successfully placed equity and debt for a $50 million apartment development. The team secured $18.6 million in equity from an insurance company and $29.2 million in a non-recourse senior con- struction-to-permanent loan from a separate life insurance company for the development of Braddock Metro Place, a 165-unit residential develop- ment site in Alexandria, VA. JW Capital Partners and a local partner, together with John Moriarty & Asso- ciates (JMA) as the gen- eral contractor, will develop a 10-story concrete building steps away from the Braddock Metro Station and a short dis- tance to the heart of Old Town Alexandria. Groundbreaking is scheduled for the first quar- ter of 2013. “The strength of the devel- opment team coupled with the location of the development were so compelling that it garnered best in class terms from both the equity inves- tor and senior lender,” said McAllister. The Braddock submarket is increasingly popular due to its excellent access to Metro and proximity to Old Town and major arteries that connectAl- exandria to the DCMetropoli- tan region. This project will be the closest residential building to the BraddockMetro station. Andrew McAllister, Bruce Levin, and Caren Garfield led the placement effort for MAC. ■
on behalf of Kalorama West, LLC , a joint venture between Columbia General Corpo- ration and Potomac Invest- ment Properties , placed a senior construction loan for the development of Kalorama West, a 117-unit apartment building located in the Ad- ams Morgan neighborhood of Washington, DC. The team secured a $28.6 million non- recourse loan from a national bank. The transaction closed in March 2013. The venture developed and
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Kalorama West
owns the adjacent 394-unit Dorchester House. Kalorama West is an expansion of the existing apartment building, which will be built on Dorches-
Mid Atlantic Real Estate Journal — April 12 - 25, 2013 — 7A
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A — April 12 - 25, 2013 — Mid Atlantic Real Estate Journal
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Commercial-Industrial Realty Council
www.circdelaware.org
2013 Board of Directors President J. Gregory Ellis Patterson-Woods Associates Vice President of Delaware Treasurer Katherine L. Silicato, CPA Gunnip & Company, LLP Secretary Bayard J. Snyder, Esq. Bayard & Associates Committees / Directors Education Chair: Dan Lesher Patterson-Woods Associates Legislative Chair: J. Gregory Ellis Patterson-Woods Associates Program Chair: John Birmingham Cushman & Wakefield MidCoast Community Bank Benjamin J. Berger, Esq. Berger Harris, LLC Jim O’Hara NAI Emory Hill-Retail Div. Donald Robitzer The Commonwealth Group Bert Root, V Harvey Hanna & Associates Marvin Sachs Bellevue Realty Co. Science & Engineering Legislative Lobbyist C. Scott Kidner C. S. Kidner & Associates New Castle County Economic Dev. Liaison (open) New Castle County Chamber Liaison Bob Chadwick, Director NCC Economic Dev. Council State of Delaware Economic Dev. Liaison Jeff Stone State of Delaware, DEDO City of Wilmington Economic Development Liaison Jeff Flynn Mayor’s Office of Economic Development Ex-Officio Directors Business Manager Janet S. Pippert CIRC / Landmark John Birmingham Cushman & Wakefield of Delaware Membership Chair: James Manna BrightFields, Inc. Directors Jeremy Abelson
Attend our Next CIRC Member Networking Luncheon: April 10, 2013 (WED) Clarion Hotel-The Belle, 1612 N. Dupont Hwy.,New Castle, DE 19720 New Castle County Update Thomas P. Gordon, County Executive
Join us in welcoming New Castle County Executive Tom Gordon and hear about his future plans for the county, its budget, economic development, Unified Development Code and other items of interest to our members. Thomas P. Gordon was sworn in November 13, 2012 as County Executive, beginning his second tenure with New Castle County.
A Buffet Luncheon will be served. ($35 member/$45 non-member) Register online at www.circdelaware.org /meetings/nextMeeting.cfm
Upcoming Schedule of Events:
April 10, 2013 Membership Luncheon (see above) May 8, 2013 Membership Luncheon 11:30 - 1:30 Topic: City of Wilmington Update May 8, 2013 Real Estate Continuing Education 8:30 a.m.Foreclosures (Del. CORE Module 7) 1:30 p.m. Real Estate Investment Fundamentals - (Del. CORE Module 6) (Full C.E. schedule and registration: www.circdelaware.org/education/schedule.cfm) June 10, 2013 Annual Golf Outing @ DuPont Country Club
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Information & Online Registration: www.circdelaware.org CIRC Events : March 13, 2013: Annual Economic Forecast
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Mid Atlantic Real Estate Journal — April 12 - 25, 2013 — A The property is managed and leased by David Adam Realty Cronheim Mortgage’s Morris and Stewart arrange $48.5 million for NJ lifestyle cener F inancial D igest F eaturing T he A ppraisal I nstitute
www.marejournal.com
W
oodcliffLake, NJ — Dev Morris and Andrew Stew-
ar t have arranged permanent financing in the amount of $48.5 million for New Jersey’s most successful lifestyle center located in Woodcliff Lake. The 10-year loan was structured with five years of interest only, and amortizes over a 30 year schedule thereafter for the sponsor, WS Tice’s Corner Marketplace L.L.C. The subject property encom- passes 119,272 s/f and is cur- rently 100% occupied by some of the most well-known nation- al retailers including Apple, Williams-Sonoma, Athleta, J. Crew, Anthropologie, Pottery Barn, and Banana Republic. The property was developed in 2001, purchased by the sponsor in 2002, and has maintained an average occupancy of 99.4% since it stabilized in 2003. Ac- cording to Stewart, “the owner has done an excellent job alter- ing the tenant mix to ensure that this property maintains its dominant position for years to come.” The subject property is Tri-State Region — Commercial mortgage bro- kerage firm Eastern Union Funding announced that it has arranged approximately $15 million in financing for industrial properties located in the New York Tri-State region. Select transactions in- clude: • $9.8 million to acquire a 50,000 s/f industrial property on Grand Street in Brooklyn, NY, on a 10 year term, at 4 percent, and 15 year amor- tization. Ira Zlotowitz and Dov Zabrowsky arranged the transaction. The financing, with Investors Bank, was only possible due to Eastern Union’s strong relationship with the lender, and its ability to ar- range creatively structured
Lifestyle center located in Woodcliff Lake, NJ
located approximately 18 miles northwest of New York City and enjoys excellent visibility at the intersection of Chestnut Ridge Road and Tice Boulevard in one of the most affluent communities in New Jersey. Within a one- mile radius of the Subject, the average family household income and median home value exceed $178,000 and
$878,000, respectively. The property is managed and leased by David Adam Realty (DAR. Cronheim has been involved with multiple transactions for the sponsor including the 2012 disposition financing of a three-story retail build- ing with the Gap and Brooks Brothers, located in the prime shopping district of Westport,
CT. Cronheim’s Channel Real Estate Funds affiliate has also invested in the Westport redevelopment of an Urban Outfitters and an adjacent mansion converted to retail, restaurant, and office, a proj- ect that is now 100% leased. In December 2012, Channel Stamford became the largest equity investor in the future Cummings Point Executive
Park, a 210,000 s/f facility on the Stamford/Greenwich border that is currently being marketed to a variety of us- ers. According to Dev Morris, “DavidAdam Realty’s creativ- ity and hard work is adding value to all of these projects in an efficient and thought- ful manner. This is creating premium yields for our equity investors.” n
Under the overall supervision of managing partner Bergman company launches credit quality division Eastern Union Funding places $15 million in financing for for industrial properties located in NY Tri-State region deals.
process for banks, and elevate conversion rates on its loan submissions. Bankers will benefit from the new unit because they will be able to make decisions about Eastern Union loan applications faster and more efficiently. Eastern Union’s deal vol- ume has been rising steadily and dramatically. The com- pany now manages some 300 new submissions each month, and the pace continues to accelerate. Eastern Union’s multi-billion-deal pipeline is on a path to nearly triple its 2012 volume, itself the highest in the firm’s 11-year history. Within the coming weeks, Eastern Union will announce the leadership of the new division, which will function
outside the firm’s commission structure. Operating under the overall supervision of managing part- ner AbrahamBergman , the unit will establish an internal system of checks and balances through which loan submis- sions will be reviewed by an experienced finance profes- sional with a strong credit background. The division’s leadership will have extensive knowledge of commercial banking, and will work in tandem with a bank’s underwriting, credit and processing departments. “Eastern Union has always taken pride in our ability to consistently unite the inter- ests of lender and borrower by closing only top-quality transactions,” said Bergman.
“With deal volume rising sig- nificantly, we will continue to live up to this high standard by ensuring that brokers understand the way bankers think about credit.” “A banker ’s time is pre- cious,” he said, “and we want bankers to know that East- ern Union speaks their lan- guage.” “Even with a major surge in deal flow, our new credit quality division means that Eastern Union will maintain the high credit standards we have always set for bor- rowers,” said Eastern Union president Ira Zlotowitz. “Our powerful relationships with bankers are critical to our suc- cess. The new credit quality unit will reinforce and fortify these relationships.” n
• $3.3 million to refinance a 44,000 s/f industrial property in Bergen County, NJ, on a 10 year term, at 4.05 percent, and 30 year amortization. Eli Breiner of Eastern Union ar- ranged the transaction. • $2 million to refinance a 20,000 s/f industrial property on 121st St in Queens, on a 10 year term, at 4.74 percent, and 20 year amortization. Jonathan Singer of Eastern Union arranged the transac- tion. In other news, on pace to close $3 billion in mortgage financing in 2013, Eastern Union Funding is launching a credit quality division that will further enrich its relationship with the banking community, speed the mortgage approval
10A — April 12 - 25, 2013 —Financial Digest — Mid Atlantic Real Estate Journal
www.marejournal.com
A ppraisal I nstitute By Michael J. Acquaro-Mignogna, Philadelphia Metro Chapter of the Appraisal Institute Philadelphia’s “Actual Value Initiative” falls short on updating tax assessments
O
ver the years, Phila- delphia’s real estate tax assessment system
signed to every property in Philadelphia. These new as- sessments are intended to reflect the full market value of each property, rather than the partial assessments of the past. Since the reassessment is supposed to result in approxi- mately the same amount of revenue, a much lower tax rate will be applied in 2014 to the much higher total tax base. Though most agree the in- tent of AVI is fairness for all, the implementation has been a mess. Residents and small business owners looking at huge tax increases are up in arms. City Council members in
the areas most acutely affected by increases are calling the process flawed and arbitrary. Those anticipating tax breaks are mostly keeping quiet, as would be expected. Much has been written and discussed about AVI “shift- ing” the tax burden from com- mercial properties onto the backs of City residents. But as noted above, assessments of commercial properties were routinely kept more current than those of residential prop- erties. That doesn’t mean the old assessments for commercial properties were accurate: it just means that commercial proper- ties – as a class - were paying more than their fair share of real estate taxes all along. And even if the new 1.3%-1.4% tax rates being discussed result in lower tax amounts than in pre- vious years, owners of commer- cial property should not blithely accept their new “actual value” assessment as accurate. The table above shows repre- sentative appraisals of Phila- delphia properties that I have personally been involved with over the last few years. As can be seen, there is a wide varia- tion between the market value that was estimated and the new “actual values” set by the Office of Property Assessment. From this sampling, it ap- pears as though office proper- ties in particular may be the most prone to over-assessment. Apartment properties seem to be assessed most fairly, while the widely held perception that vacant land has been under-as- sessed is not refuted here. A particular Center City of- fice building is another case in point. It is reported as having sold last fall for $66 million, but the assessors have pegged its value at nearly $81 million. Even though its tax bill will decline by about $200,000 with a new ±1.3% tax rate, that ±$15 million difference translates into an additional $195,000 of taxes that might not be war- ranted. Illustrating the opposite situ- ation, the recent sale of a differ- ent Center City office tower for $110 million was just reported. The AVI assessment of that property, though, is only $88.7 million. At a 1.3% tax rate, a $21.3million under-assessment would translate into $276,900 potentially missing from the City’s budget. For commercial properties in continued on page 16A
has become wildly inaccu- rate. Because the state does not require a set periodic timetable for counties to reassess, and because of the
Michael Mignogna
City’s practice of valuing com- mercial properties more fre- quently than residential prop- erties, ad valorem assessments bore no resemblance to market values. Changes were promised
after considerable media atten- tion was focused on assessment inaccuracies and cronyism at the assessing authority, and
at long last, the “Actual Value Initiative,” or AVI, was rolled out this February. New assessments were as-
Shocked by your new tax assessment in Philadelphia?
Philadelphia’s Actual Value Initiative is being implemented for tax year 2014 and beyond. The new assessments are supposed to be based on 100% of market value.
Has your property been fairly assessed? Let a Member of the Appraisal Institute help you find out.
Why a Member of the Appraisal Institute? x
Appraisers who hold the Appraisal Institute’s MAI and SRA designations have met stringent educational requirements, have considerable professional experience, and are required to adhere to strict standards and ethics of professional practice that exceed those required by state or federal law. x The MAI membership designation is held by appraisers who are experienced in the valuation and evaluation of commercial, industrial, residential and other types of properties. x The SRA membership designation is held by real estate solutions providers who are experienced in the analysis and valuation of residential real property. How can you find a local member of the Appraisal Institute to assist you? x It’s easy: visit www.aiphilametro.org and select the “Actual Value Initiative” link. There you will see a list of our Members who can help you determine whether or not your assessment is reasonable, and whether a formal appeal is warranted.
Mid Atlantic Real Estate Journal — Financial Digest — April 12 - 25, 2013 — 11A
www.marejournal.com
APPRAISAL INSTITUTE – REGION VI DELAWARE, MARYLAND, NEW JERSEY, PENNSYLVANIA, WASHINGTON DC
A message from Region VI Chair, Thomas Reynolds, SRPA, R/W-AC and Region VI Vice Chair Robert Robidoux, MAI The Appraisal Institute continues to be the leader in the real estate profession for over 75 years. Whether you’re an appraiser, analyst, broker or government official, the Appraisal Institute expands the “Body of Knowledge” with its great leadership and its dedicated membership. Our organi- zation protects the public and appraisal profession by its dedication to assisting real estate professionals in their production of excellent analysis and appraisal services. The Appraisal Institute is now offering new “Advanced Level” courses along with other high quality seminars and webi- nars to real estate professionals across the country and throughout the world. Many of these offerings are accessible both locally as well as on- line (log on to www.appraisal institute.org). Exciting developments by the Appraisal Institute include the new “Candidate for Designation” program. This program has seasoned designated appraisers working hand-in-hand with aspiring real estate professionals seeking designation status within the appraisal industry. This program tru- ly continues the Appraisal Institute’s commitment to producing practitioners considered by the industry at large to be the “BEST OF THE BEST”. The pool of newly designated members has grown rapidly over the past several years. These professionals represent those who are best educated and most aspiring within our profession. I am proud to provide to the real estate community a list of our newly designated members. Not only have these individuals committed themselves to the professional standards of our industry but are also dedicated to moving our profession forward in the 21st Century. We extend our heartiest congratulations to them. They are to be applauded for their efforts.
Region VI Directors
REGION VI CHAPTERS
Delaware
Delaware
www.ai-delaware.org
Thomas C. Reynolds, III, SRPA Region VI Chair tomreynolds@rac.net Robert J. Robidoux, MAI Region VI Vice Chair rjrobidoux@hotmail.com Russell K. Sterling, MAI Region VI Past Chair rsterling@sdadvisors.com
District of Columbia
Washington DC Metropolitan
www.wdcmacai.com
Maryland
Maryland
www.ai-md.org
New Jersey
Metro New Jersey
www.ai-newjersey.org
Northeast New Jersey
www.nnjchapter-ai.org
Southern New Jersey
www.ai-snj.org
Pennsylvania
Central Pennsylvania
www.aicentralpa.com
Northeastern Pennsylvania
www.ai-nepa.org
Northwestern Pennsylvania
www.ai-nwpa.org
Philadelphia Metropolitan
www.phila-ai.com
Pittsburgh Metropolitan
www.pghai.org/
Region VI Directors
Congratulations to our new Designees:
Upcoming Events
Thomas C. Reynolds, III, SRPA Region VI Chair
tomreynolds@rac.net
Robert J. Robidoux, MAI
Region VI Vice Chair
rjrobidoux@hotmail.com
2nd Quarter National Board of Directors Meeting - Chicago May 2 & 3 LDAC - Washington DC May 21 -23 2013 Joint Regional Meeting Indianapolis July 21 2013 Chapter Leadership Program Indianapolis July 23 - 25 3rd Quarter National Board of Directors Meeting -Indianapolis July 26-27 Region VI Virtual Meeting October (TBD) 4th Quarter National Board of Directors Meeting November 14 - 15 Indianapolis July 22 & 23 2013 AI Annual Meeting
Russell K. Sterling, MAI
Region VI Past Chair
rsterling@sdadvisors.com
Maryland Chapter Harry J. Begg, MAI Southern NJ Chapter rai A. Bickel, MAI Samuel Levi, MAI
Upcoming Events 2 nd Quarter National Board of Directors Meeting - Chicago May 2 & 3
Washington DC Chapter James M. Dorey, Jr., MAI Michael A. Hausmann, MAI Philadelphia Chapter Richard A. Hideck, MAI Joseph J. Sisson, MAI Delaware Chapter Alexander D. Knight, MAI Central PA Chapter Robert W. Zogorski, MAI Metro NJ Chapter Joseph A. Murray, Jr., SRA
LDAC - Washington DC May 21 -23
2013 Joint Regional Meeting Indianapolis July 21
2013 Chapter Leadership Program Indianapolis July 22 & 23
2013 AI Annual Meeting Indianapolis July 23 - 25
3 rd Quarter National Board of Directors Meeting -Indianapolis July 26-27
Region VI Virtual Meeting October (TBD)
4 th Quarter National Board of Directors Meeting
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