- DC
hiladelphia, PA — SSH Real Estate and Young Capital , P $100 million recapitalization of the 880,000 s/f in Philadelphia SSHReal Estate, Young Capital &Quilvest Private Equity purchase 123 South Broad St.
ISSUE HIGHLIGHTS Volume 30, Issue 9 May 11 - 24, 2018
ital acquired complete ownership of the Witherspoon Building, a boutique 155,000 s/f building with an entrance on Juniper St.. The partnership is evaluating the building for a residential apartment conversion. “We are excited to partner with Quilvest, an institutional investor with international real estate acumen. Quilvest’s investment and the new fi- nancing will enable us to complete our vision to make 123 South Broad St. the pre- mier historic office building in Philadelphia,” said Peter Soens , partner of SSH Real Estate. With capital allocated for building and tenant improve- ments, including upgrading the lobby and commons areas, the partnership is also explor- ing repositioning the building’s two-story dramatic penthouse space into a unique hub for business collaboration, signa- ture events and socializing. agent for the properties, which are 58 percent leased. • The sale of 1960-1970 Old Cuthbert Rd., a 90,000 s/f industrial building, in Cherry Hill. Mertz was the sole broker in this transaction. • The sale of 281 Benigno Blvd., a 74,000 s/f industrial building located within Inter- state Business Park in Bell- mawr. Mertz was the sole broker in this deal. The leases inked by Mertz include: • A lease at 1005 Middle- sex Avenue in Port Reading. The 230,100 s/f building was leased to Western Post, Inc., whomMertz represented in the transaction. • A 121,500 s/f lease to Go- Plus at 8-1 Corn Rd. in Dayton. Mertz represented the tenant in this transaction. • A 103,890 s/f lease at 80 Stults Rd. in South Bruns- wick to Acme Furniture. Mertz was the sole broker in this transaction.
aggressive leasing strategy successfully repositioned the property and increased occu- pancy from 79% to 95%. Wells Fargo is the anchor tenant with 225,000 s/f of space across multiple floors. The building is the headquarters of SSH Real Estate’s 60-person team, and boasts a diverse mix of over 50 professional companies and non-profits. The new partnership plans to invest capital to renovate the lobby and other common areas, create new best in class tenant amenities and accelerate the current leasing momentum. Over the last year, the property has signed 11 new tenants total- ing more than 75,000 s/f, and the property continues to at- tract creative users, innovative technology firms and traditional office tenants, such as Finch Brands, Design Science and Neumann Finance Company. As part of the new transaction, SSHReal Estate and Young Cap-
in partner- ship with the real es tate arm of Quil- vest Private Equity an- n o un c e d a $100 million recapitaliza- t i on o f the
Annual Conference & Expo
Section D
Pennsylvania Executive Profiles
Peter Soens
880,000 s/f 123 South Broad St. and Witherspoon Building complex. Located in the heart of Philadelphia’s Central Busi- ness District, the property consists of the entire block on Broad St. from Walnut to San- som Sts. The HFF team of Gerard Sansosti, Tom Hall, Jim Cadranell and Ryan Ade worked on behalf of the part- nership to secure financing through Guggenheim , which includes significant capital to complete the anticipated leas-
ing and capital improvements planned for the building. SSH Real Estate and Young Capital purchased floors six through 30 of 123 South Broad St. inMarch 2008. The partner- ship immediately embarked on a capital and leasing program, updating the building’s me- chanicals to reduce operating costs and undertaking repairs to the façade and interiors to achieve class A standards. Over a four-year period, the 123 South Broad St. photo credit Hart Roberts – Chair 8 Media
Billy Procida
Del Markward
NAI Mertz’s Scott Mertz records over $60 million in industrial sale & lease transactions in 1st Qtr
Pete Reinke
Jonathan Kinsley
20C
MT. LAUREL, NJ — NAI Mertz , a full-service com-
MAREJ Events May 30, 2018 Philadelphia Multifamily Conference For speaking and sponsorship information, please contact: Lea at 781-740-2900 or lea.christman@marejournal.com
mercial real estate firm c o n d u c t - ing business throughout the Uni ted States, and globally, from its regional
Scott Mertz
Directory
281 Benigno Blvd.
Upcoming Spotlight INDUSTRIAL/DISTRIBUTION CENTERS Financial Digest.........................................................5-8A DelMarVa................................................................ 9-11A New Jersey.........................................................Section B Central New Jersey Spotlight................................... 9-17B Central New Jersey Professional Directory. ............. 12-13 Pennsylvania......................................................Section C Central Pennsylvania Spotlight................................ 7-13C
offices in New Jersey, greater Philadelphia and northeastern Pennsylvania, announced that Scott Mertz, SIOR , president, NAI Mertz, recently completed over $60 million in industrial sale and lease transactions totaling over 1,325,000 s/f throughout southern and cen- tral New Jersey. “The industrial market across southern and central New Jer- sey is showing no sign of slow- ing down,” said Mertz. “These transactions represent the
continued strength of this sec- tor and the desire of buyers and tenants to be well-positioned in locations that are in close prox- imity to both Philadelphia and New York City. I am pleased to have completed these deals on behalf of my clients,” he added. The sales completed by Mertz include: • The sale of a three-building industrial portfolio totaling 192,382 s/f in Swedesboro. The new ownership also retained Mertz to serve as the leasing
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COLLABORATIVE CULTURE RELATIONSHIP FOCUSED DEFINED EXPERTISE
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Walgreens Ewing, NJ $10,645,333
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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 Associate Publisher ................................................................Steve Kelley Associate Publisher .................................................................. Kim Brunet Associate Publisher ............................................................ Miriam Buttrick Senior Editor/Graphic Artist ................................................ Karen Vachon Contributing Columnists ........ Keith Bawolek, Vermillion Realty Advisors; Beverly Jenkins, EA, MST, Ellin & Tucker; Travis Klein, CPA, MBA, Ellin & Tucker Mid Atlantic R eal E state J ournal — Published Semi-Monthly Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 350 Lincoln St., Suite 1105 Hingham, MA 02043 USPS #22-358 | Vol. 30, Issue 9 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.marejournal.com The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
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The Questionable Status of Qualified Improvement Property Under the Tax Cuts and Jobs Act T Terri S. Johnson he Tax Cuts and Jobs Act (TCJA) was signed into law on December 22, 2017. his is the first comprehensive tax law reform since 1986, and it brings new opportunities, as well as some challenges, to the commercial real estate community. One of the most common issues we’re hearing about these days has to do with the status of Qualified Improvement Property (QIP) under the TCJA. Established by the PATH Act in 2015, the original QIP quickly became a fan-favorite, expanding the scope of Bonus-eligible assets by removing the restrictions associ- ated with other categories of quali- fied improvements. In fact, the only requirements necessary to meet the original definition of QIP were that the improvement be made to an in- terior portion of a building which is non-residential real property, and that the improvement be placed-in- service after the date the building was placed-in-service. And with a few small exceptions — building enlargements, escalators, etc. — voila, you’ve got Bonus-eligible as- sets with a 39-year life after Bonus. It is noteworthy that QIP was classified as 39-year after Bonus, as QLI (Qualified Leasehold
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Improvements), QRI (Qualified Restaurant Improvements), and QRIP (Qualified Retail Improve- ments) were all depreciated as 15-year SL. These various quali- fied improvements were, for the most part, not eligible for Bonus. The TCJA rules intended to cre- ate a new balance, establishing a new QIP that would encompass and replace all the old qualified improvement categories. Fur- thermore, this new QIP would be assigned a 15-year MACRS class life. However, there was a bit of a hiccup in the execution. The TCJA amended Section 168 to eliminate any reference to QLI, QRI, and QRIP. And it specifically repealed QLI, QRI, and QRIP from Section 168(e)(3)(E), the subpara- graph that lists assets eligible for a 15-year class life. As of 1/1/18, QLI, QRI, and QRIP no longer exist. So far so good. Unfortunately, the new of QIP was never actually put into
Section 168(e)(3)(E). So technically, the class life of the new QIP in the post-TCJA era is questionable. This could become crucial. Remember that Bonus-eligible assets must have depreciable lives of 20 years or less. If we don’t know the class life of QIP assets, how do we even know that they are eligible for the new 100% Bonus depreciation at all? Take a deep breath. This is probably just a small oversight, and in fact many tax professionals are referring to this colloquially as a “whoops.” It’s pretty clear that Congress intended to establish post-TCJA QIP as 15-year (P.L. 115-97), and odds are good that a technical correction will be issued to straighten this out. For the mo- ment, we’re advising our clients to proceed with caution, but we antici- pate that this will be resolved soon. Terri S. Johnson, CRE is a co-founder and partner at Capstan Tax Strategies.
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Arbor provides financing for the portfolio Sweetwood of Kislak brokers 7-building portfolio in Irvington, NJ for $17.8 million
I
rvington, NJ — The Kislak Company, Inc. announced the recent sale
of a seven- b u i l d i n g portfolio in I r v i n g t o n with 184 resi- dential units, six stores and one income- p r o d u c i n g antenna for $17.8 million.
Seven-building portfolio in Irvington, NJ
properties with increasing rents.” Arbor provided financing for the portfolio in a market area where over 75% of the hous- ing is either small apartment buildings or larger apartment complexes.
Uniquely, the buildings at 780-86 Lyons Ave,(aka 106 Lin- coln Pl,) and 26-28 Chester Ave, (aka 80 Welland Ave,) house 22 and 11 residential units, respectively, and each have three stores at street level. The property at 979 Clinton Ave,
has 31 residential units and an income-bearing antenna on its rooftop. It is located in the heart of Irvington in one of its highest appreciating neighbor- hoods since 2000. “The properties were com- pletely renovated and include
luxury units in mint condition in an urban setting,” added Sweetwood. “The purchaser plans to maintain their luxury status and increase rents as there is a strong demand for quality housing in urban areas. The result is fully-occupied
Joni Sweetwood
The properties are located at 2-10 Wagner Pl.; 38-40 Chester Ave.; 979-983 Clinton Ave.; 494 Stuyvesant Ave.; 780-86 Lyons Ave.; 51 Linden Ave.; and 26-28 Chester Ave. Senior vice president Joni Sweetwood represented the seller and procured the pur- chaser. The sale marked both parties’ initial transaction with Kislak. Sweetwood noted the sale was reflective of the current market trend in which “owners are improving urban properties to a level that surpasses even properties in ‘high-end’ towns.” She added, “The sale moved swiftly to closing without any problems.” Media Iq triples space by moving from Feil’s 853 Broadway to 261 Fifth Avenue, NY New York, NY — Media iQ Digital has leased more than 23,000 s/f comprising the entire 25th and 26th floors of the landmarked 261 Fifth Ave., announced building owner and manager The Feil Organization . The asking price for the 10-year lease was $85 psf. Relocating from 8,013 s/f at Feil’s 853 Broadway, Media iQ is in the process nearly tripling its space. Its new location will include access to a portion of a private rooftop terrace via passenger eleva- tor. “We are happy to welcome Media iQ to its new home at 261 Fifth,” said David Turino, director of commercial leas- ing at The Feil Organization who represented the firm in the lease, while Brian Palumbo provided in-house legal counsel for Feil. Frank Coco and Owen Hane of JLL represented the tenant. “And we are looking forward to assisting them as they move in and continue to expand.”
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C ommercial R eal E state O rganizations ’ E vents C alendar May 15 – ULI DE
JUNE 21-25 – CORFAC Event: CORFAC International Summer Affiliate Meeting – Bucharest Location: Radisson Blu Address: Bucharest, Romania
Event: Cultivating Development: Sowing the Seeds of Innovation Location: 90 Acres at Natirar Address: 2 Main Street Peapack-Gladstone, NJ May 15 – ULI Philadelphia Event: Delaware Developer’s Forum
Cost: $149-$160 www.corfac.com SEPTEMBER 23 – CORFAC Event: 2018 Fall Summit Time: TBD
Time:11:00 AM - 1:00 PM www. philadelphia.uli.org May 17 – CREW PA Event: Effective Public Speaking Time: 11:30AM – 1:30 PM Location: 2929 Walnut St, Ste 1700, Philadelphia, PA MAY 23 – SIOR Philadelphia Event: 5 th Annual SIOR Office Property Summit Time: 10:00 AM – 2:00 PM Location: The Union League Golf Club at Torresdale Address: 3801 Grant Avenue Philadelphia, PA Cost: $0 www.siorphila.com/events MAY 31 – SIOR New Jersey Event: SIORNJ Annual Transaction Awards Location: W Hotel Address: 225 River St Hoboken, NJ 07030 Cost: $0 www.siornj.com/SIORNJ-Events JUNE 4/7 – CCIMPA Event: CI 101: Financial Analysis for Commercial Real Estate Time: June 4 @8:30 AM – June 7 @5:00 PM
Location: The Waldorf Hilton Address: London, England Cost: $398 www.corfac.com SEPTEMBER 30 – OCTOBER 2 – AGC
Event: CLC Leadership Development Conference Location: Washington, DC Cost: $365 Early bird Member Rate $475 Non-member & post early bird $55 Student Rate & Guest Rate www.eiseverywhere.com OCTOBER 1 – SIOR New Jersey Event: Natirar Event Time: TBD Location: Natirar Address: TBD Cost: $0 www.siornj.com/SIORNJ-Events OCTOBER 11-13 – SIOR New Jersey Event: SIOR Fall Conference Time: TBD Location: Denver, CO Address: TBD Cost: $0 www.siornj.com/SIORNJ-Events NOVEMBER 8-9 – SIOR New Jersey
Location: TBD Address: TBD www.panjdeccim.com/event JULY 9/13 – CCIMPA
Event: SIOR Northeast Regional Conference Time: TBD
Event: CI 104: Investment Analysis for Commercial Investment Real Estate Time: July 9 @8:00 AM – July13 @ 5:30 PM www.panjdeccim.com/event June 20-22 – IREM Event: Northeast Regional Meeting
Location: Bank of New York Facility Address: Bryant Park New York, NY Cost: $0 www.siornj.com/SIORNJ-Events DECEMBER 12 – SIOR New Jersey Event: SIORNJ Holiday Party Time: TBD Location: The Huntley Taverne Address: 3 Morris Ave Summit, NJ 07901 Cost: $0 www.siornj.com/SIORNJ-Events
Location: Seaport Hotel and World Trade Center Address: 200 Seaport Boulevard Boston, MA www.irem.org/events
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F inancial D igest
Real Estate Journal — May 11 - 24, 2018 — 5A
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A combined 307 units on eight properties throughout New Jersey NorthMarq Capital’s Cohen finalizes $30 million refinance of DeMatthesis multifamily portfolio
N
100 Hillside Ave.) Edison, NJ “The borrower is a full ser- vice real estate investment company whose business activities encompass the ac- quisition, development, re- development and manage- ment of strategically located neighborhood/community shopping centers and apart- ment complexes in around NJ,” said Cohen. “NorthMarq was able to help the borrower secure long term financing with a national life company at an attractive rate. Owner- ship was able to pay off their debt service and recoup equity which will be reinvested into all eight properties.” n variety of other companies out- side of the traditional scope of manufacturing and industrial enterprises, and it can also fi- nance costs associated with the acquisition of machinery and equipment, as well as working capital costs. Through this initiative, RIDC will begin focusing on offer- ing PIDA loans to companies throughout the region that meet the program’s criteria, whether or not they are located in an RIDC property. Donald Smith, Jr. , RIDC’s CEO, said: “RIDC plays a unique role in this region, de- veloping properties that become economic drivers for their com- munities and supporting the growth of companies that popu- late those properties and create jobs. Our partnership with these companies and under- standing of their needs is what attracts so many fast-growing businesses, in fields ranging from robotics to life sciences to manufacturing, to RIDC sites. “Being able to serve as a con- duit for PIDA loans, not only to our tenants, but to companies throughout the region that are contributing to our economy, creating jobs and growing our tax base will now enable us to play an even greater economic development role with a far greater number of businesses.” n
at 34-36 Elm St., Morristown, NJ • Morris Hill Apts. located at 34 Hill St., Morristown, NJ • Elmwood Gardens located at 30 Elm St., Morristown, NJ • Franklin Hill Apts. lo- cated at 44 Hill St., Morris- town, NJ • Highland Manor Apts. located at 330-338 Crowells Road, Highland Park, NJ • Park Ridge Manor Apts. located at 304 South Second Ave., Highland Park, NJ • Bridgeton Apts. located at 101-130 Martin Terrace, Woodbridge, NJ • Hillside Apts. located at 307-311 Division St. (AKA
EWJERSEY — Gary Cohen , senior vice pr e s i den t /manag -
ing director o f No r t h - Marq’ s NJ regional of- fice, arranged the $30 mil- lion refinance of the DeMat- theis Multi- family Portfo-
Gary Cohen
lio, which contains a combined 307 units on eight properties. The transaction was structured with a 15-year term on a 30- year amortization schedule. NorthMarq arranged financ- ing for the borrower through
DeMattheis Multifamily Portfolio in New Jersey
its correspondent relationship with a life insurance company.
The properties are located at: • Morris Elm Apts. located
RIDC partners with Pida to expand low-interest loanprogram
Jacobovitch and Munk of Meridian arranges $13 million in financing
Pittsburgh, PA — Re- gional Industrial Develop- ment Corporation of South-
tion was negotiated by Merid- ian senior vice presidents, Jay Jacobovitch and Josh Munk , who are based in the company’s Iselin, NJ office. The commercial properties span 132,574 s/f and are lo- cated at 15, 20, 25, 37, 80-100, 356 and 363-365 Market St. and 360 Carnegie Ave. in Ke- nilworth, NJ. Tenants include Community Bank, KinderCare Learning Center, and Atlantic Federal Credit Union. “Maximizing loan proceeds on a seven-property office and industrial portfolio is a of Silver Arch Capital Part- ners. “More owners, investors and developers than ever before are taking note and sending their loan submis- sion forms to us.” The expansion is a natural next step for a firm whose partners have closed more than $2 billion in loans over the course of their careers. Wolfer added that the firm’s specialty, bridge loans to owners, investors and devel- opers in the commercial real estate market, has driven its growth in a cautious commer- cial real estate market. “We get more and more
challenging assignment, and finding a balance sheet lender ready to fill the space typically occupied by CMBS lenders adds another layer of complex- ity,” said Jacobovitch. “We were able to leverage Merid- ian’s strong relationships with a wide network of lenders, identifying a suitable balance sheet lender to provide the financing at a very competi- tive rate. This execution gave the borrower both the flexibil- ity and post-closing customer service indicative of a balance sheet loan.” n calls from borrowers who need to access capital to complete these multi-facet- ed commercial real estate transactions,” Wolfer said. “Bridge loans can be tricky, and borrowers want to make sure that these loans are in capable hands. They’ve come to the right place.” The expansion comes right after the launch of a mobile- friendly website, which fea- tures an easy loan submis- sion form for borrowers. “We’re proud to continue to serve our borrowers both online and offline,” Wolfer said. n
Kenilworth, NJ — Meridian Capital Group ar- ranged $13 million in financ- ing for the refinance of the
w e s t e r n Pennsylva- nia (RIDC) i s par tne r - ing with the Pennsylva- nia Indus- t r i a l D e - velopment A u t h o r i t y
Cristie Port- folio, seven commercial p r o p e r t i e s l o c a t e d i n Kenilworth, on behalf of Pierre Devel- opment Corp. The seven-
Donald Smith, Jr.
(PIDA) to market an expanded offering of PIDA’s programs of low-interest loans and lines of credit for businesses. By of- fering a wider range of PIDA assistance, a larger number of Pennsylvania businesses can commit to creating and retain- ing full-time jobs within the commonwealth. RIDC has primarily utilized PIDA real estate loans in the past to finance the develop- ment of industrial parks and multi-tenant facilities and has been responsible for financing more than 300 projects total- ing more than $295 million through the assistance of PIDA. Prior to the PIDA consolidation which occurred in November 2014, PIDA loans were only available for the purchase or improvement of real estate as- sets. By utilizing the full range of PIDA’s current loan offer- ings, RIDC can now assist a
Josh Munk
year loan, provided by a bal- ance sheet lender and features a rate of 4.375%. This transac-
Silver Arch Capital Partners expands Hackensack, NJ HQ
HACKENSACK, NJ — Silver Arch Capital Part- ner announced the expan-
s i on o f i t s h e a d q u a r - ters at Conti- nental Plaza, a 650,000 s/f office com- plex located on Hacken- sack Ave. in Hackensack.
Jeffrey Wolfer
“We are known nationally for our flexibility, creativity and speed in a field not typi- cally associated with any of those traits,” said Jeffrey Wolfer , president and CEO
6A — May 11 - 24, 2018 — Financial Digest — M id A tlantic
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F inancial D igest
By Beverly Jenkins, EA, MST, and Travis Klein, CPA, MBA Tax planning for tenant improvement allowances
I
t is common practice for commercial real property trade or businesses to offer
the timeline and, most impor- tantly, who will pay for the im- provements. It is pertinent to
of getting the improvements completed themselves, and the tenant pays out of pocket expenses that exceed the bud- get. The tenant improvements are depreciated over a given useful life, as set forth in In- ternal Revenue Service (IRS) technical guidance. The other way TI allowances can be handled is when the property owner gives the ten- ant cash and the tenant goes out and contracts the improve- ment work themselves under guidelines and parameters set forth in the lease agreement. In this instance, there is a dif- ferent tax treatment on those
payments, for both the prop- erty owner and the tenant. The property owner amortizes the costs over the life of the lease. Since the costs are amortized over the life of the lease, there is no accelerated depreciation eligible on this property for the property owner. While the tenant can control the process in-house and depreciate the improvements, they must pick up the cash as taxable income in the year the cash is received. When the property owner provides the cash allowance to the tenant, there is a way to avoid the unfavorable treat- ment. Internal Revenue Code
(IRC) Sec. 110 allows the tenants to exclude the cash received from income and the property owner depreciates the improvements over the useful life. In order to get this favorable treatment, the lease agreement must mention the safe-harbor under Sec. 110 or that the improvements are for real property only. In this situ- ation, these costs are eligible for accelerated depreciation by the property owner. Sec- tion 110 requires a disclosure with a taxpayer’s timely filed tax return, including exten- sions, by both the property owner and the tenant. The disclosure should include the name and address, tax iden- tification number, location of the property and the amount of the construction allowance that qualifies under Sec. 110. When executing a lease, it is pertinent for the prop- erty owner and the tenant to be aware of the use of Sec. 110, and to specify within the lease agreement that their TI allowance will be used to improve qualified long-term real property for a short-term retail lease not to exceed 15 years. For the purposes of Sec. 110, the term “retail lease” has a very broad definition and includes tenants that sell services to the public. Small details within the lease agree- ment when receiving cash to perform tenant improvements can be the difference between picking up income and the ac- celeration of cash-less deduc- tions in the current year for tax purposes. Beverly Jenkins, EA, MST is a principal in El- lin & Tucker’s tax depart- ment and leader for many of Ellin & Tucker’s most prominent commercial and residential real es- tate engagements. She has more than two decades of expertise in tax reporting, compliance and manage- ment advisory services for real estate firms, business owners and investors. Travis Klein, CPA, MBA is a manager in the tax department and is a well- respected advisor for many of the firm’s commercial and residential real estate engagements. Travis has a strong grasp of the complex real estate tax planning, consulting, and compliance matters facing real estate business owners.
new, prospec- tive or long- standing ten- ants a tenant improvement (TI ) a l l ow- ance. These costs are used to help offset the tenant’s
properly re- view all lease agreements for pitfalls and leasing issues hidden beneath the legal jargon. Normally, a real proper-
Beverly Jenkins
Travis Klein
cost of moving into the space and/or retrofitting the space to meet industry guidelines or unique needs. The lease agreement outlines who will complete the design, the work,
ty trade or business (property owner) will give a tenant a set budget or a maximum amount they are willing to spend on the improvements. Typically, the property owner is in charge
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www.marejournal.com Real Estate Journal — May 11 - 24, 2018 — 9A ACA receives Economic Development Investment Program grant in the amount of $500,000 ACA International to invest $52 million for 130,000 s/f data center in Virginia Beach, VA M id A tlantic
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and also serve as the cable landing station for future subsea telecommunications cables. ACA International will also create 30 jobs with aver- age annual salaries of $59,000. Completion is anticipated in 4th quarter of 2019. “Virginia Beach is the new center for coastal continen- tal edge ultra-high speed global telecommunications on the East Coast with new connectivity options being developed connecting Europe, Africa, and LATAM,” said Joel Ogren, president and CEO for ACA International. “The city, especially the Economic Development Department, has been extremely proactive in creating the framework to take advantage of the next stage of global digital infra- structure. The future of cities depends on their ability to connect globally as efficiently and effectively as possible,
and Virginia Beach is now on par with other top tier cities around the world.” Since 2015, ACA Interna- tional has been involved in multiple undersea network projects and international telecom strategies and fea- sibility studies and serves clients in the United States, Europe, Australia, Latin America, Middle East and Asia. The company provides strategy, project planning, development and oversight of broadband, satellite, sub-sea cables, wireless/mobility and smart city planning. “Virginia Beach has cap- tured the world’s attention with the fastest subsea data cables installed by Microsoft, Facebook and Telxius,” said Virginia Beach Economic Development Director War- ren Harris . “Businesses in Virginia Beach can reach customers in Europe, Africa,
the Middle East and South America more quickly and ef- ficiently than from anywhere else in the world. Additional cables are being planned and will be announced later this year that will provide even more incentives to estab- lish data centers in Virginia Beach.” The Virginia Beach De- velopment Authority has awarded ACA International an Economic Development Investment Program grant in the amount of $500,000 based on the company’s total capital investment of $52 million. Corporate Landing is a 325-acre publicly developed business park owned by the Virginia Beach Development Authority. Virginia Beach has laid the ground work for a world-class telecommunica- tions system complete with 163 acres of available sites, certified power requirements
by Dominion Energy, and available fiber access hubs. Additional benefits that Vir- ginia Beach provides include a low cost of doing business, reduced property taxes for data centers, no machinery and tools tax and a highly skilled workforce. The city’s infrastructure and economic potential have been ranked in the top 10 for mid-sized cities in the Western Hemisphere. The mission of the Vir- ginia Beach Department of Economic Development is to attract and retain national and international businesses to stimulate capital invest- ment and create jobs. The Department of Economic De- velopment received re-accred- itation through the Interna- tional Economic Development Council in 2016 and is one of only 50 economic development organizations in the world to have this recognition.
IRGINIA BEACH, VA — Assured Com- munications Advisors
Internation- al (ACA In- ternational), an interna- tional tele- communica- t i on s c on - sultancfirm h e a d q u a r - tered in Vint
Warren Harris
Hill, Virginia, has announced plans to invest $52 million in Virginia Beach to open a 130,000 s/f data center. ACA International is pur- chasing a 10.2-acre site in Cor- porate Landing Business Park from the Virginia Beach Development Authority for $2.04 million. The company will build a 130,000 s/f facil- ity that will house its new corporate headquarter offices, a tier III data center providing neutral co-location services Washington, DC — Common Good City Farm and Consigli Construction Co., Inc. broke ground today on the final portion of a storage shed that will assist the farm in housing more seasonal pro- duce that can be used by the community. Common Good City Farm is a non-profit ur- ban farm and education center located on a half-acre plot in LeDroit Park. Consigli will be donating their time for this project. The farm uses sustainable urban farming techniques and includes a vegetable garden, fruit orchard, beehives, and a composting system. In addi- tion to being a community food source, Common Good City Farm is an outdoor learning center, offering agricultural workshops and youth educa- tion. The Farm is located on D.C. Parks and Recreation land and is part of the De- partment’s efforts to connect residents to their local envi- ronment.
Common Good City Farm and Consigli Construction BreakGround on final portion of WashingtonDC project
Shown from left: Andy Miller, Consigli Construction; Eric Tievy, Consigli Construction; Sam Wetzel; Janet Bloomberg, AIA, WAF; Allen Lew, Washington Architectural Foundation; Taylor Scott; Kenan Dunson
In 2017, the Washington Architectural Foundation and Catholic University’s School of Architecture worked with a team of high-school students who helped design a storage shed for the farm so more sea- sonal produce could be used by the community. This project is
a unique use of D.C. Depart- ment of Parks and Recreation land, which allows for people to actually improve their health through healthy food. The first part of the shed, for dry storage, was completed last year. Work on the final portion began today.
“Our Foundation’s mission is to bring design to the com- munity and this structure, small though it may be, shows the power of that,” said Mary Fitch, Executive Vice Presi- dent of the Washington Ar- chitectural Foundation. “This project involved high school
students, college students, architects and local citizens all with the common goal to support healthy food in our community.” The Foundation is partnering on this project with Consigli, KUBE Archi- tecture and Matthew J. Daw, PE.
10A — May 11 - 24, 2018 — DelMarVa — M id A tlantic
Real Estate Journal
www.marejournal.com
D el M ar V a
Expands AKF’s presence in Virginia & South East Bold Rock Engineering joins AKF Group
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said AKF CEO, Dino DeFeo , PE , “for AKF, for Bold Rock, and especially for our clients. Collectively, we’ll build on our experience to deliver innova- tive and client-centric solu- tions exceeding our clients’ expectations.” “Having collaborated with Bold Rock on successful proj- ects,” DeFeo continued, “we felt this was an excellent op- portunity to grow the AKF family by acquiring a firmwith a shared vision and culture of Engineering Leadership.” AKF’s presence in Richmond also empowers the firm to
provide additional support to existing clients, such as VCU Health, James Madison University, Inova Health, and Children’s National Medical Center. “This is a natural progres- sion for AKF. We’ve experi- enced great success with the launch of our Baltimore office, and our new office in Rich- mond enhances our growing operations in the Southeast,” said DeFeo. “We’re also excited to be a part of and contribute to the growth in Richmond and across Virginia.” Bradley Lownsbury , Bold Rock’s managing principal, stated, “We’ve always cham- pioned a client-first focus and simply put, joining AKF ben- efits our clients. As AKF Rich- mond, we are now a firm with local roots and global reach.” Lownsbury also empha- sized AKF’s robust offering of integrated services includ- ing IT/AV/security, fire and life safety, architectural code consulting, lighting design, and energy and sustainability as additional advantages for clients in the region. Thompson Creek WindowCo. relocates corporate office in Lanham, MD LANHAM, MD — Thomp- son Creek Window Compa- ny recently relocated its cor- porate headquarters to 4200 Parliament Pl. in Lanham in Prince George’s County. The six-story, 122,000 s/f class “A” commercial office building houses over 150 Thompson Creek employees. A partnership between Thompson Creek and the Chesapeake Real Estate Group purchased the build- ing in 2017. Improvements to the building include the lobby common areas, a new confer- ence center facility and tenant deli. The on-site fitness facil- ity was updated with modern equipment, and new exterior landscaping was added. "This investment in 4200 Parliament Place elevates the asset to best-in-class status in the Lanham sub-market and provides Thompson Creek Window Company with an impressive corporate head- quarters that best showcases its products and people," said James Lighthizer , manag- ing partner of Chesapeake Real Estate Group.
ichmond, VA — AKF , a global leader in mechanical, elec-
based Bold Rock Engineer- ing Group , an MEP/FP and commissioning firm serving
ment, and utilities sectors. Bold Rock’s notable proj- ects include the redevelop- ment of Main Street Station, Richmond’s historic railroad station; the expansion and renovation of Washington Dulles International Airport's International Arrivals Build- ing; Loudon County’s Metro Rail Station Parking; the new Regattas Dining Hall at Chris- topher Newport University in Newport News, VA; and the recently renovated 410-key Richmond Marriott. “This partnership makes sense for all parties involved,”
trical, plumb- i n g , f i r e p r o t e c t i o n engineering (MEP / FP ) , information and commu- nication tech- nology (ICT), a s we l l a s commission-
the region for nearly four decades. Bold Rock’s commitment t o h i g h e r e du c a t i o n , workp l ace , hospitality, and health- care clients
Dino DeFeo
Bradley Lownsbury
ing, design, and consulting, has expanded its presence in the Southeastern U.S. with the acquisition of Richmond
complements AKF’s already strong portfolio in these prac- tice areas, as does its expertise in the transportation, govern-
Integrated Settlement Services A Delaware Full-Service Title Agency Service At Its Best.
At Integrated Settlement Services , we work with Purchasers, Ground Lessors and Lessees, Developers, Brokers and variety of Mortgage Lenders to ensure that the title to the property being transferred or loan being placed is legally valid, correctly recorded and free of problems. Integrated Settlement Services provides a complete line of commercial title insurance products and services. Our Title Officers, Title Examiners, Attorneys , and Underwriters are technologically proficient and extremely knowledgeable about local market conditions. Our Escrow Officers have the expertise to adhere to the strictest of lender instructions. We communicate clearly and consistently with all parties to the transaction, and pride ourselves on our friendly professionalism.
We have provided services to clients acquiring small commercial properties as well for the acquisition and financing of large commercial projects, including multi-state transactions.
Benjamin J. “Buddy” Berger has been a practicing real estate attorney for over 33 years. Buddy has extensive experience in the title insurance industry as a title agent for several national title insurance companies and has handled a variety of commercial transactions including mixed use projects, student housing projects, and securitized and mezzanine financing transactions.
Benjamin J. Berger, Managing Member | 302.655.1140 | bberger@bergerharris.com www.integratedsettlementservices.com
Real Estate Journal — May 11 - 24, 2018 — 11A
www.marejournal.com
M id A tlantic
D el M ar V a Company completes 13 projects in the county since 2017 Homegrown: How Harkins is helping transform Howard Cty.
• Staffing Needs? • Confidential Replacements? • Top Talent Acquisition? SS i stewart search inc. GREAT VISION REQUIRES GREAT TALENT!
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onstruction in How- ard County can be seen everywhere ,
and Harkins is not only part of it, but they are right in the middle of it. They began building in Columbia in 1966, and relocated their corporate headquarters to downtown Columbia in 2016. Fifty-two years after their first job, Har- kins is still fully entrenched in bringing Howard County construction projects to life. As robust residential, commer- cial, and government building activity can currently be seen in downtown Columbia and up and down the Route 1 Cor- ridor, Harkins is the construc- tion manager of five projects totaling over $100M. Along the Route 1 and 100 corridors in Elkridge, Harkins is building over 600 apart- ment units with 1,250 parking spaces in two communities. Verde II at Howard Square is the final phase of the How- ard Square development for Atapco Properties. The two- building mixed use project will contain 344 apartment units, surrounded with a five- story precast parking garage offering 750 parking spaces and 30,000 s/f of retail. Dart-
Howard Stewart, Managing Partner Stewart Search Inc. 3000 Village Run Road, Suite 103 Wexford, PA 15090 561-818-1007 www.stewartsearchinc.com
Verde II at Howard Square project
moor Place at Oxford Square, for Preston Scheffenacker Properties, is a new five-story building that will contain 258 market rate units and will be adjacent to a five-story precast parking garage offering 500 parking spaces. Harkins has also been tapped to help local govern- ment agencies with a multi- tude of projects. Mendenhall Court, which will serve as office space for the Howard County Public Works and Police Department, is under- going two phases of interior renovations. The first phase included mechanical, electri-
cal, plumbing, and sprinkler upgrades. The second phase includes the construction of an interior arms and evidence vault. Additionally, the Patux- ent Woods office building, which will serve as office space for the Department of Commu- nity Resources and Services, the Department of Housing and Community Develop- ment, Office of Human Rights, and the Howard County Fish program, is undergoing a full- service restoration. The two- building project will be gutted in its entirety and Harkins will be completing the demolition continued on page 12A
- DC
Presents INDUSTRIAL/ DISTRIBUTION CENTERS Featuring Expert Articles and Market Reports May 25, 2018
Contact: Steve Kelley P: 781-740-2900 x205 skelley@marejournal.com
12A — May 11 - 24, 2018 — M id A tlantic
Real Estate Journal
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