R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news
Terreno Realty acquires four-building Queens, NY, asset Cushman & Wakefield arranges $53.1 million JFK Airgate portfolio trade
ISSUE HIGHLIGHTS Volume 26 Issue 4 Feb. 28 - Mar. 13, 2014 Commercial office properties Spotlight Mid Atlantic R EAL E STATE J OURNAL ’ S A NNUAL C OMMERCIAL O FFICE Spotlight
MidAtlantic RealEstateJournal—CommercialOfficeSpotlight—February 28 -March 13, 2014—SectionC
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QUEENS, NY — Cushman & Wakefield ’s Metropolitan Area Capital Market Group has arranged the trade of a 229,000 s/f, four-building portfolio situated adjacent to JFK International Airport in Queens. Terreno Realty pur- chased the properties, known as JFK Airgate, for $53.1 mil- lion. Cushman & Wakefield’s Andrew Merin , David Ber- nhaut , Gary Gabriel and Kyle Schmidt , based in the commercial real estate ser- vices firm’s East Rutherford, NJ office, headed the assign- ment. Gabriel noted that the offering’s core characteristics drew an unprecedented level of interest from the investment community. “The portfolio’s functionality – highlighted by market-lead- ing product in an irreplaceable location – is best illustrated by its tenants, which include some of the largest, most so- phisticated and best-known logistics firms in the world,” Gabriel said. “The buildings are 99% leased, with FedEx, UPS, Kuehne +Nagel and SDV USA among the major users.
NathanKranz NAICIR
AnthonyCassano NAI JamesE.Hanson
BryanCole NAIKeystoneCommercial & Industrial
JayHaines NAI Summit
DanRattay CBRE
Jeff Silberman KaplinStewart
RobinZellers NAICIR
WilliamC.Hanson,SIOR NAI JamesE.Hanson
Robert J.Dileo NAIDileo-Bram&Co.
GaryMichael NAIMichael
KevinO’Hara NAIEmoryHill
AndrewGeorgelakos,SIOR NAIKLNB
INSIDE J EFFREY L. S ILBERMAN ,K APLIN S TEWART ......................2C H ARVEY H ANNA &A SSOCIATES , I NC . ..........................4C E ASTERN U NION .........................................................6C NAIG LOBAL S POTLIGHT .......................................9-19C 2013C OMMERCIAL O FFICE S ALESAND L EASES .....22 -24C
ScottMertz NAIMertz
JeffLicht NAIMertz
RebeccaTing NAIMertz
Section C
JFK Airgate
11-14A Retail Deals of 2013 EnsembleHotelPtrs. opens 172 room LEED certified prop.
They are here for a reason. ” Built between 1986 and 1991, the JFK Airgate port- folio’s one office and three in- dustrial buildings are decades younger than a majority of the surrounding submarket and consequentially offer tenants increased efficiency. Private truck courts accommodate full- size trailers, and below-grade car parking sets it apart from much of the competition and will always be a key differen- Estates, LLC , announced KevinWolfer , president and CEOof the direct private lend- er. Kennedy Funding had pr ev i ous l y provided a loan in that amount t o the borrower, secured by 2,654 acres of land at Ce- dar Mountain, Iron County, Utah. Located just 10 miles from the noted Brian Head Ski Resort in Cedar City, Utah, the site’s initial phase was approved for residential de- velopment, including 145 five-acre “off the grid” lots, of which most have been sold and improved with homes. Kevin Wolfer
tiator when competing for ten- ants, according to Schmidt. “Located just minutes from the tarmac, JFKAirgate serves as a critical conduit between the New York City Metropoli- tanArea and global commerce,” Schmidt said. “This property is wholly integrated with the region’s massive logistics and distribution system, providing efficient coordination between ‘wings and wheels.’” In a submarket with ex- Phase two was approved for 239 five-acre lots, followed by a 1,028-acre phase three zoned for 20-acre lots. “When the borrower initial- ly approached us, they needed a loan to move the project forward,” saidWolfer. “We are pleased to have been able to complete the note sale. “Lending for residential has become an important part of what we do,” said Wolfer. “It is arguably the strongest real estate sector right now, and when it’s paired with recre- ational and resort uses, or has them in close proximity, that is all the more attractive as an opportunity. In addition to the financing and even- tual note sale for the Cedar Mountain, Utah property, our firm has recently provided
tremely high barriers to entry and very few property trades, the JFK Airgate portfolio gen- erated over two dozen bids from major institutional play- ers and REITs. “The seller maintained and leasedAirgate to the highest level of insti- tutional standards,” Schmidt said. “Terreno Realty’s acqui- sitions team provided assur- ance that they would close as promised, and then executed their end perfectly.” n financing for similar projects in such diverse—and interna- tional—locations as Johnson- ville, SC, Tampa, FL and the Dominican Republic. Kennedy Funding, Amer- ica’s leading direct private lender, specializes in bridge loans for commercial property and land acquisition, develop- ment, workouts, bankrupt- cies, and foreclosures. The company has closed more than $2.5 billion in loans to date. The firm’s creative fi- nancing expertise enables the closing of loans of up to a 70% loan-to-value ratio, from $1 million to more than $50 mil- lion, in as little as five days. Kennedy Funding continues to actively seek new funding opportunities throughout the world. n
Kennedy Funding completes $28.86 million note sale secured by 2,654 acres of land
ENGLEWOOD CLIFFS, NJ — Kennedy Funding has closed a $28.86 million note sale for Braffits Creek
7B
Directory
People on the Move.............................. 22A Owners, Developers & Managers..Section B Green Buildings............................... 7-14B Shopping Centers........................ 7-19A
Upcoming Spotlight March 14th, 2014 1031 Exchange
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Mid Atlantic R eal E state J ournal Publisher ............................................................................ Linda Christman Publisher ............................................................................... Joe Christman Publisher/Senior Account Executive ................................. Elaine Fanning Section Publisher .................................................................... Steve Kelley Senior Editor/Graphic Artist .................................................Karen Vachon Production Assistant ....................................................................Julie King Office Manager .................................................................... Joanne Gavaza Contributing Colomnist .............................................................. Albert Sica Mid Atlantic R eal E state J ournal ~ Published Semi-Monthly Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 312 Market St. Rockand, MA 02370 USPS #22-358 | Vol. 26 Issue 4 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
Mid Atlantic Real Estate Journal
By Albert Sica Certificate of insurance and compliance with contracts – myth or reality
O
ne of the most daunt- ing tasks in risk man- agement involves the
creation of a contract with clear and effective risk trans- fer provisions. Risk transfer protocols are complex and often left to attorneys familiar with state indemnity statutes and other compliance and regulatory provisions. It is important for the attorney and insurance advisor to work closely together, however, to: •Ensure the contract lan- guage captures the commer- cial intent of the risk being retained, and •Ensure the risk is trans- ferred in the transaction in an enforceable manner Insurance policies are com- plex. Coverage must be spe- cific, yet balanced, contingent on the size of the project or transaction, loss potential and the relative negotiation power of each of the contract parties. The larger and more complex the transaction, the greater the chance of obtain-
The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
ing comprehensive insurance coverage from the counter- party adequately covering the risk. However, there is a basic coverage baseline for most industries that you can apply. Coverage should expand from that baseline. Correctlydefine the scope of services The “Scope of Services” in a contract is very important. It defines the role of the coun- terparty and helps ensure any liability arising out of that scope will provide appro- priate recourse. The drafter of the contract can use con-
tractual penalties, insurance and indemnity provisions. The counterparty must have clear and defined performance obligations in order to assess how they may have breached that duty. They would then be responsible for the resulting damages. Insurable versus uninsur- able loss exposures – what to do? Some damagesmay be insur- able while others are uninsur- able. It is important to make that distinction early and write the contract’s insurance Continued on Page 24A
Washington Crossing
The Lennox Apartments
FOR SALE
Property
Location Hatboro, PA
Units
List Price $17,500,000 $9,200,000 $6,000,000 $4,400,000 $4,100,000 $3,750,000 $3,725,000 UNPRICED $3,700,000 $3,050,000 $1,600,000 $1,050,000 $1,000,000
Livingstone &Wellington Lennox Apartments Washington Crossing
189 155 108
Philadelphia, PA (Mt. Airy)
Allentown, PA
Philadelphia (University City)
25 Apartments & 8 Retail
4445-47 Chesnut/126-36 S 45th St
Gratz Street Portfolio 1206 Walnut Street
Philadelphia, PA (Temple University) 75 Beds (Student Housing)
Philadelphia, PA (Washington Square)
8 (Mixed-Use)
Sandy Street Development Site Main Line Development Site
Montgomery County, PA
Approved for 149 Approved for 33
Gladwyne, PA
Longford Apartments Cumberland Apartments
Ambler, PA
36 60 12 24
Wilkes-Barre, PA
914, 928, & 930 E. Passyunk Ave.
Philadelphia, PA (Bella Vista)
Casi Di Amici
Chester, PA
Blumenthal Chocolate Factory
Bridesburg, PA
Industrial
607 East Passyunk Ave.
Philadelphia, PA (Queen Village)
4 (Mixed-Use)
$855,000
KenWellar, Managing Partner ken@rittenhouserealty.com
Corey Lonberger, Managing Partner corey@rittenhouserealty.com
Mark Duszak, Director mark@rittenhouserealty.com
For information on these listings and more, visit www.RittenhouseRealty.com or call (215) 454-2852
Mid Atlantic Real Estate Journal — February 28 - March 13, 2014 — A
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M id A tlantic R eal E state J ournal Totaling 533 units in NJ, PA, MD and CT Meridian negotiates $26.2m in financing for multifamilies N EW YORK , NY – Meridian Capi- tal Group, LLC
UPCOMING SPOTLIGHTS!
multifamily complex located on Newman Place in Roselle, NJ. The loan features a rate of 4.00% and a 15-year term. This transaction was negoti- ated by Jay Jacobovitch . Meridian negotiated a new mortgage in the amount of $2,300,000 on a four-story, 72-unit multifamily property located on Garrett Rd. in Lans- downe, PA. The loan features a rate of 3.63% and a seven-year term. This transaction was ne- gotiated by Max Beyderman . Anewmortgageof $1,800,000 was placed by Meridian on a
three-story, 15-unit multifam- ily property located on East Biddle St. in Baltimore, MD. The loan features a rate of 4.41% and a seven-year term. This transaction was negoti- ated by Jay Jacobovitch. Meridian negotiated a new mortgage in the amount of $1,750,000 for the purchase of a three-story, 56-unit mul- tifamily complex located on Elam St. in New Britain, CT. The loan features a rate of 3.66% and a five-year term. This transaction was negoti- ated by Shalom Krohn . n
MARCH 28TH BEST OF 2013 DEADLINE: FEB. 14TH
announced the follow- ing transac- tions: Mer idian nego t i at ed a new mort- gage in the amount o f $4 , 480 , 000
APRIL 11 APPRAISAL DEADLINE: MAR. 28TH
Elliot Treitel
Sitar Co. announces sale of 332,000 s/f industrial building EDISON, NJ — Sitar Com- pany announced the sale of 45 Brunswick Ave. to 45 Bruns- wick Ave, LLC for an undis- closed price. The property, which consists of 332,000 s/f of industrial space, was owned by NJINDBrunswick, Avenue, LLC. Tom Monte and Bill Sitar, Jr. brokered the deal and the sale was finalized in January, 2014. n Meridian negotiated a new mortgage in the amount of $4,740,000 on three multi- family properties totaling 90 units located on Lincoln Ave. in Newark, NJ. The loan features a rate of 3.45% and a seven-year term. This transac- tion was negotiated by Russ Drebin . Anewmortgageof $3,000,000 was placed by Meridian on a two-story, 70-unit garden-style The Hampshi re Cos. sells multi- tenant ind. building for the purchase of a five- property multifamily portfolio totaling 150 units located in Bridgeport, CT. The loan features a rate of 2.88% and a three-year term. This transac- tion was negotiated by Elliot Treitel . Anewmortgageof $8,100,000 was placed by Meridian on the 80-unit Grand Lee Apart- ments multifamily property located in Leonia, NJ. The loan features a rate of 3.99% and a seven-year term. This transaction was negotiated by Abe Schonfeld . EastRutherford, NJ — The Hampshire Compa- nies announced the sale of a 135,498 s/f industrial building located at 25 East Union Ave. CBRE represented The Hampshire Companies in this transaction. n
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SEALEDBIDREAL ESTATEAUCTION 60+- ACRES ZONED INDUSTRIAL SEALEDBIDS DUE FRIDAYMARCH 21, 2014 @ 12PM
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www.marejournal.com M id A tlantic R eal E state J ournal By Scott Saunders&PamelaMichaels,Asset Preservation Due diligence when recommending a QI
OPPORTUNITY Promote Your Company
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• Brokered Transactions • New Services/Products • Projects Completed or Underway • Expert Articles • Appointments, Promotions, & Honors • Events • Mergers & Acquisitions • Financing Deals The Mid Atlantic Real Estate Journal welcomes all editorial dealing with the commercial/industrial real estate industry. P.O. Box 26 • Accord, MA 02018 (mailing) 312 Market St. • Rockland, MA 02370 (overnight) e-mail: editor@midatlanticjournal.com www.midatlanticjournal.com 800-584-1062 781-871-5299 fax Mid Atlantic Real Estate Journal
1
031 exchanges are on the rise in the Northeast and Mid Atlantic for many
poor selection can result in the exchange being disqualified on audit or worse, the loss of funds. Although a
Accordingly, it is important for both the taxpayer and the taxpayer’s tax/legal advisors to perform due diligence before choosing a QI company. The importance of this can be seen in Winters v. Dowdall (Winters v. Dowdall 63 A.D. 3d 650 (2009) 882 N.Y.S. 2d 100). In that case, the taxpayer sold a relinquished property in New York and retained Pat- rick Dowdall, of the law firm Dowdall and Associates, P.C. (“Dowdall” ), purported experts in the field, to provide guidance with their 1031 ex- change, and specifically with the selection of a QI. Dowdall selectedAtlantic Ex- change Company, LLC (“AEC”) to act as QI. During the course of the exchange, the taxpayer’s proceeds were stolen by AEC and Edward Okun, AEC’s sole member. The taxpayer’s loss was over $604,000. The tax- payer argued that his loss was caused by Dowdall’s legal mal- practice, including: · Failure to properly investi- gateAEC before selecting them as QI; · Failure to confirm that AEC was sufficiently bonded before recommending AEC as the QI; and · Failure to confirm that the taxpayer’s exchange proceeds were deposited into an account on behalf of the taxpayer as required by the terms of the exchange agreement. The Court determined that Dowdall did not adhere to their duty to perform sufficient due diligence because they did not sufficiently investigate the QI prior to recommending the QI to the taxpayer. Dowdall had represented that they were experts on the subject of 1031 tax deferred exchanges, and the taxpayer had relied upon these representations in hiring Dowdall. The Court specifically determined that the advice giv- en by Dowdall was negligent, and was the proximate cause of the damage to the taxpayer. Tax, legal and financial advi- sors should realize the impor- tance of performing sufficient due diligence before recom- mending a qualified intermedi- ary to facilitate a 1031 exchange on behalf of their clients. This due diligence should consist of an examination of the practices of the QI regarding the han- dling of client funds, and the security measures offered by the QI in the event of loss. continued on page 24A
reasons. The s i gn i f i c an t increase in capital gain rates in 2013 is a contrib- uting factor as is the ap- p r e c i a t i o n investors are
small number of states have enacted regu- lations gov- erning IRC Section 1031 exchange QI c omp a n i e s
Scott Saunders
PamelaMichaels
seeing in these markets. But investors seeking to perform a 1031 exchange should exercise caution in selecting a Qualified Intermediary (QI) as all are not equal by any means and a
(see Asset Preservation’s web- site for more information on various state QI regulations), there are no Federal regula- tions regarding QI’s and the safeguarding of exchange funds.
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0AMELA -ICHAELS %SQ 6ICE 0RESIDENT $IVISION -ANAGER -ANHATTAN \ ,ONG )SLAND PMICHAELS APIEXCHANGECOM \ APIEXCHANGECOM #ALL FOR A COMPLIMENTARY CONSULTATION
! .ATIONAL )2# e h1UALIFIED )NTERMEDIARYv
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Mid Atlantic Real Estate Journal — Shopping Centers — February 28 - March 13, 2014 — 7A
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ewportNews, VA — The Greysteel Co. has arranged the sale Neuman, managing director of Greysteel represented the seller Greysteel’s retail division arranges $12.850 million sale of Newport Crossing N
Virginia Financial Services and most recently Riverside Health System, the region’s top health care provider with over 7,000 employees in more than 100 locations. Greysteel’s retail di- vision led by managing director Gil Neuman represented the seller, Harbor Group Interna- tional LLC and procured the buyer, Coastal Equities Real Estate. “Harbor Group is pleased to have added value and through Greysteel’s institutional sales process secured a quality pur- chaser,” said Jordan Slone,
Chairman of Harbor Group International LLC. “We con- gratulate Coastal Equities on their acquisition and wish them further success.” “The sellers recently added a long term leased state-of-the- art Riverside Health Systems facility and regional head- quarters,” said Neuman. “The purchasers acquired a well- entrenched center with high grocer sales, the post-recession ‘new normal’ of a solid medical co-anchor and the opportunity to add value through further leasing.” n
of Newport Crossing Shopping Center located at 419&439-467 Oriana Rd. in Newport News. The sale price was $12.85 mil- lion. Newport Crossing is a 194,000 s/f grocery anchored community shopping center that lies just off of the heavily trafficked major Warwick and Denbigh Blvd. intersection. The center is 80% occupied by a credit tenant mix including Food Lion, Dollar Tree, Citi Trends, USADiscounters, First February 28, 2014 - March 13, 2014 HI-LIGHTS
Newport Crossing Shopping Center
Marcus & Millichap D.C. office brokers $750,000 sale
Zang, Taylor & Munley of Marcus &Millichap Phila. arranges $6.6 million sale
SPOTLIGHT Top Retail Deals of 2013 7-14A
Equity Retail Brokers negotiates 9,100 s/f lease at Cedarbrook
Former Bank of America branch, D.C.
WASHINGTON, DC — Marcus & Millichap Real Estate Investment Services announced the sale of a former Bank of America branch, a 2,419 s/f retail property situ- ated on a 16,644 s/f lot located in Washington, DC. The asset sold for $750,000.
Josh Feldman and Benja- min Wilson in Marcus & Mil- lichap’s Washington, D.C. office, had the listing to market the property on behalf of the seller. The buyer, Congressional Com- mercial, LLC, was also secured and represented by Feldman and Wilson. n
Winslow Plaza
SICKLERVILLE, NJ — Marcus & Millichap Real Estate Investment Services announced the sale of Winslow Plaza, a 40,695 s/f shopping center. The asset sold for $6.61 million subject to the purchas- er’s assumption of an existing conduit loan. Dean Zang, Mark Taylor and Christopher Munley , investment specialists in Mar- cus & Millichap’s Philadelphia office, had the listing to mar- ket the property on behalf of the seller, a joint venture of RPC Real Estate and Merion Realty Partners. The buyer, Wheeler Interests was also secured and represented by the agents. Michael Fasano , broker, assisted in closing this transaction. The sale Cap rate was in
the 8% range on the forward looking year’s net operating income. n
15A
LMS Commercial leases 8,775 s/f in three transactions
10A
ALSO Business Card Directory ........ 13A Retail Brokerage Directory .18-17A www.marejournal.com
A — February 28 - March 13, 2014 — Shopping Centers — Mid Atlantic Real Estate Journal
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Along with Angelo, Gordon & Co. Colliers Int’l. secures 14,430 s/f retail at Ephrata Marketplace E p h r ata , L a n - caster County, PA — Colliers Inter-
Our Core Service Areas:
• Site Traffic Development • Traffic Engineering • Transportation Planning • Highway / Roadway Design
• Traffic Signal Design • Parking Studies • Expert Consultation
York Town Center
national concluded 14,430 s/f of retail leases at the Eph- rata Marketplace in 2013. The site, a multi-phased retail development, consists of an assemblage of retail strip center space and development outparcels. The brokerage team of Wil- liam Aiello, George Lulos and Larry Kostelac , of Col- liers International’s Harris- burg office, represented the owner. Initially working in a development consultant role, Colliers secured the site for the developer and then managed the traffic and zoning issues. Colliers secured Giant Food as the anchor and proceeded to lease up the space (only 4,200 s/f remains). New strip center tenants include (but are not limited to): GNC, Subway,
Shoppes at Tecport
Our Retail / Commercial Sectors :
• Town Centers / Big Box • Commercial / Office • Fuel / Convenience • Food / Grocery
• Pharmacy • Restaurants • Banking • Hotels
Gateway Gettysburg
Buckhorn Plaza
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Ephrata Marketplace
GameStop, Great Clips, and Golden Chicken; the outpar- cels have also been secured by well-known tenants such
as Starbucks, Five Guys, Ve- rizon Wireless, McDonalds, and Members First Credit Union. n
Wilmington, DE — Pat- terson-Woods Commercial Properties/CORFAC Inter- national president Duncan Patterson, CCIM , announced Tom Ryan has represented Dafa Investments in the sale of a 2,315 s/f retail property located at 2707 Concord Pike Patterson-Woods/CORFAC Int’l. sells $740,000 retail property in Wilmington. The buyer is investor Church Road LLCwhich paid $740,000, or approximately $315 a foot at an initial return (capitalization rate) of 5.3 percent, according to Ryan. “The location and credit-wor- thiness of the tenantsmade this an attractive local investment for this asset,” Ryan said. The property is located on busy Concord Pike between U.S. 13 in Wilmington and the Pennsylvania border. The two tenants are Delaware Gold Exchange and Casapulla’s Subs. n
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S hopping C enters
onshohocken, PA — Equity Retail Brokers agents Brian Wherty & Samtmann of Equity represent tenant Equity Retail Brokers negotiates 9,100 s/f lease at Cedarbrook Plaza C
• Project Management
• Development Due Diligence & Feasibility Studies
• Agency Permitting
Wherty and Rob Samtmann represented Empire Beauty School in leasing 9,100 s/f from Cedarbrook Plaza, LLC at Ce- darbrook Plaza in Wyncote. Empire Beauty School re- cently acquired the newly renovated former Toys“R”Us space in the 600,000 s/f Cedar- brook Plaza Shopping Center located at 1000 Easton Rd., Wyncote. n Gr u s k i n Gr oup wins ICSC U.S. De- sign&Development Award Springfield, NJ — Gruskin Group has been awarded a Silver Design and Development Award by the In- ternational Council of Shop- ping Centers (ICSC) for its design of the Double Wide Grill, located in Mars, PA. ICSC’s U.S. Design and Development Awards recognize outstanding projects for excellence in the creation of new retail projects within the Continental U.S. Gruskin Group designed the 6,700 s/f restaurant as a vin- tage gas station-turned-restau- rant that offers a unique dining experience for history buffs and “open-road” enthusiasts. Specifically, Gruskin Group’s design for the Double Wide Grill won the Silver Award in the Retail Store Category, which honors and recognizes how professional store design contributes to the success of the overall retail industry. Ac cord ing t o Kenne th Gruskin, AIA, principal of Gruskin Group, “We appreci- ate being recognized by ICSC for a project like this since a lot of passion on both our part and the part of our clients went into its creation. The design evokes a nostalgic feel that connects to the public’s love for ‘motorabilia,’ and has captured the imaginations of its custom- ers.” Double Wide Grill’s design features the flowing “Airstream” curves of a 1950’s filling station complete with gas pumps and trailers, typical of that era. The ICSCAward is the latest honor that Gruskin Group’s design for the Double Wide Grill has received. The firm earned an honorable mention in the Fast Food/Casual Din- ing Category from Chain Store Age’s “Retail Store of the Year” competition in March 2013. n
• Land Development Design
• Construction Phase Services
• Graphic Services
PHILADELPHIA METRO OFFICE: 8614 Montgomery Avenue Wyndmoor, PA 19038 215-836-2510 LANCASTER OFFICE: 1853 William Penn Way, P.O. Box 10368 Lancaster, PA 17605-0368 717-672-0614
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NEW JERSEY OFFICE: 100 Overlook Center, Suite 200 Princeton, NJ 08540 609-920-0268
LANDCOREconsulting.com
Cedarbrook Plaza
SHINE THE SPOTLIGHT ON YOUR COMPANY!
Interested in joining the many Retail Experts who are already participating?
Shopping Centers Featuring 7th Annual Retail Experts
Issue Date: March 28, 2014 Deadline: March 14, 2014
For details on how to submit your Expert Bylined Article Contact Elaine Fanning to reserve your space P: 800.584.1062. x212 E: efanning@marejournal.com
10A — February 28 - March 13, 2014 — Shopping Centers — Mid Atlantic Real Estate Journal
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S hopping C enters
MacKenzie Retail’s Gioioso rep. tenant in 1,875 s/f lease LMSCommercial Real Estate leases 8,775 s/f in three transactions L
ancaster, PA — LMS Commercial Real Estate has re- cently arranged the following lease transactions: Randy’s BBQ has leased 3,000 s/f lease at Northgate Shopping Center, York. The landlord was represented by Travis Riley and David Nicholson , of LMS Commer- cial Real Estate. Little Caesar’s Pizza has leased 1,875 s/f at Eastern Blvd. Shopping Center, Essex, MD. The landlord was repre- sented by Wilay Boensch, of LMS and the tenant was repre- sented by Michael Gioioso , of
Grandview Plaza
MacKenzie Retail, LLC . New York Diner has leased 3,900 s/f lease at Grandview Plaza Shopping Center, Ha-
Cranford, NJ — In- dustry veteran Thomas Ko- rnitzer officially joined Win- Wi n i c k R e a l t y GroupNJwelcomes industry veteran Thomas Kornitzer nover. The landlord was rep- resented by Ryan Myers , of LMS Commercial Real Estate. n
RE_ad_version1.qxp 11/2/2005 11:54 AM Page 1
ick Realty Group NJ, where he will serve as se- nior director, working out of the com- pany’s Cran- ford office. In this position,
We’re looking for sites in PA End Cap, In-line, Free Standing Flexible Space Requirements Retail Opportunities Needed Consistently Ranked #1 Franchise - 45+ Y ear T rack Record
Thomas Kornitzer
Kornitzer will be in charge of both landlord and tenant ac- counts, specifically working with such exclusive clients as Safeguard Self Storage, Pep Boys and Wendy’s. n
a section of the Mid Atlantic Real Estate Journal P.O. Box 26, Accord, MA 02018 781-871-5298 • 800-584-1062 fax 781-871-5299 www.marejournal.com Shopping Centers Real Estate Journal
Non-Traditional Venues - Hospitals/Colleges Universities/B&I/Stadiums/Casinos/Airports
Local Contacts:
Eastern PA — 610-366-8120 x 24, Cheryl Green green_c@sdepa.com Philadelphia PA — 610-768-8990, Rawley Shelton rawleyshelton@gmail.com
Section Publisher Elaine Fanning efanning@marejournal.com
Section Editors Julie King Karen Vachon editor@marejournal.com
realestate.subway.com www.subway.com
facebook.com/SDEPA1
S hopping C enters S potlight T op R etail D eals of “2013”
Mid Atlantic Real Estate Journal — Top Retail Deals 2013 — February 28 - March 13, 2014 — 11A
www.marejournal.com
SEEKING GROCERY ANCHORED PROPERTIES ON THE EAST COAST
T OWN C ENTER AT T WIN H ICKORY ▪ G LEN A LLEN , VA ▪ S EPTEMBER 2013
HERITAGE PARK PLAZA ▪ E AST L ONGMEADOW , MA J UNE 2013
GOLDEN RING PLAZA ▪ R OSEDALE , MD J UNE 2013
TOPS PLAZA N ORWICH , NY D ECEMBER 2012
SHAKER TOWN CENTER S HAKER H EIGHTS , OH D ECEMBER 2012
WAYLAND VILLAGE W AYLAND , MA D ECEMBER 2012
EAST RIVER PARK W ASHINGTON , DC A UGUST 2012
WESTGATE PLAZA M ANASSAS , VA M ARCH 2012
FAIRHAVEN PLAZA F AIRHAVEN , MA N OVEMBER 2012
PLAZA 352 B ROOKHAVEN , PA A UGUST 2012
Eric Wolf ▪ ewolf@katzproperties.com ▪ www.katzproperties.com ▪ 267.528.3113
12A — February 28 - March 13, 2014 — Mid Atlantic Real Estate Journal
www.marejournal.com
Featur Top Retail S hopping C enterS t o
TrUsT.
It’s not just part of our name. It’s our commitment to YOU. Always.
January 25 ~ February 7, 2013 Nathanson formerly of Marcus & Millichap negotiates $7M purchase of The Shops at Walnut Grove. Soloff of Soloff Realty & Development represented the seller Katz Properties acquires 3 anchored centers totaling $22.4M Cronheim Mortgage arranges $13.2M financing for Totowa Square Shopping Center Gerlach of Metro Commercial negotiates $775K sale of 3.85 acres on Rte. 73 Gallicchio of Remco Realty reps buyer & seller in $600K sale of former Blockbuster February 22 ~ March 14, 2013 Divaris Real Estate, Inc. brokers sale of Hungarybrook Shopping Center for $5.7M Nicholson & Myers of LMS Commercial Real Estate secure $1.85M sale Balliet of KW Commercial completes $1.151M sale of retail strip center WP Realty announces the 447,037 s/f sale of Fairlawn Town Center Stine & Rohrbaugh of Bennett Williams rep seller in $2.6M sale / WRDC purchases the 142,965 s/f Shippensburg Shopping Center March 29 ~ April 11, 2013 JV of Katz Properties & Spectrum Partners acquire Red Lion SC for $31.4M Morris & Stewart of Cronheim Mortgage arranges $15M for Crossroads Center Vastgood/Southern Realty venture purchases 129,600 s/f Thruway Plaza In JV, Onyx Equities & Artemis R.E. Ptrs. acquire 218,600 s/f Plainsboro Plaza Gorman & Shover of Marcus & Millichap arrange $9.333M sale of Shopping Center Taylor, Zang & Munley of Marcus & Millichap sell net leased building for $9.3M Zamir Equities acquires 180,000 s/f Power Center Greenberg Gibbons celebrates 49,002 s/f Harris Teeter Opening May 31 ~ June 13, 2013 NAI Hanson’s Messer & James close sale of $6.3M Shopping Center in Woodbridge, NJ. Duggan & Jones of NAI DiLeo Bram & Co. represented the buyer Gallicchio of Remco Realty Group completes $3.3M sale of Shopping Center Greenberg Gibbons & Vanguard kicks off $140M revitalization project Veraxia CRES selects 5.09 site in Hamburg, PA for Cigar’s International newest Super-Store. Lobar Associates was the design build contractor for the project June 28 ~ July 11, 2013 NAI Hanson announces sale of $400K retail site in Bergenfield, NJ Nathanson formerly of Marcus & Millichap secures buyer in $1.7M sale April 26 ~ May 9, 2013
Sales | Leasing | Investment | CRE Advisory Services
Costas J. Hrousis, CCIM Shawn M. Donahue, MBA | Co-Founder + Principal | Co-Founder + Principal
610.997.0100 | www.VeraxiaCRES.com | Bethlehem, PA
Calkain continued to grow in 2013
Transactions Aggregate Average CAP Rate of 5.98% $9 Billion in sales in 9 years Meet us at the ICSC Mid-Atlantic Conference
Urstadt Biddle acquires The Village Shopping Center in NJ for $34.85M Lombardi & Sabharwal of Marcus & Millichap NJ sell $5.4M strip center NAI Hanson’s Herrick & Schilp rep owner in sale of $1.1M development site Remco Realty Group, LLC celebrates 5 Years The Promenade at Wymossing Square retail center under development
Brad Nathanson
The Promenade AT WYOMISSING SQUARE
www.promenadeatwyomissingsquare.com
For leasing inFormation contact: greg Heflin 215-592-8905 gheflin@brickstoneco.com John Buccino 610-370-8508 jbuccino@naikeystone.com For leasing inFormation contact: WYOMISSING SQUARE LIVE. WORK. PLAY. SHOP. DINE. STAY.
Mid Atlantic Real Estate Journal — February 28 - March 13, 2014 — 13A
www.marejournal.com
d 2013 Headlines r etail D ealS of 2013
July 26 ~ August 15, 2013 Katz Properties acquires two Shopping Centers for $52.5M Lulos & Aiello of Colliers International concluded $4.45M sale of Bank of America representing Kimco Realty Corp. Bennett Williams Realty’s Stine, Rohrbaugh & Brown rep both parties in $1.775M sale of Su- percenter Plaza August 30 ~ September 12, 2013 McShea & Company announce $5.1 Sale of DC retail condo. Douglas Development acquires the 6,000 s/f property Azarian Realty’s 75,000 SF Raritan International Center breaks ground Next Realty Mid–Atlantic signs LA Fitness to 40,000+ s/f The Goldstein Group has leased a combined total of 18,000 s/f September 27 ~ October 11, 2013 Katz Properties acquires Town Center at Twin Hickory in Glen Allen, VA for $16M Divaris Real Estate brokers sale of Norton Commons for $6.9M in Virginia Neuman of Greysteel sells 37,000 s/f Miramar Plaza Shopping Center for $5.2M National Realty & Development Corp. leases of 98,000 s/f at Pohatcong Plaza in NJ Calkain Companies arrange $1.26M sale of Chase Bank ground lease Frantzman of Levin Mgmt. negotiates 22,000 s/f lease at The Shoppes at Flemington. Welkis of Welco Realty reps HomeGoods the tenant NAI Summit’s Crampsie reps owner in 14,000 s/f lease transaction at Luzerne Plaza October 25 ~ November 7, 2013 Pealer of Marcus & Millichap NJ arranges 2.215M sale of Woodland Plaza in NJ Metro Commercial completes +/-34,097 s/f lease for Ashley Furniture Schuster with Ripco served as the tenant’s broker in leasing 13,640 s/f for Petco WP Realty announces grand opening of Ollie’s Bargain Outlet in 625,000 s/f plaza November 22 ~ December 5, 2013 Marcus & Millichap arranges sale of 26,115 s/f Staples Shopping Center for $6.16M Phillips Edison-ARC Shopping Center REIT Inc acquires 3 shopping centers Rohrbaugh & Stine of Bennett Williams represent seller in $4.697M sale December 20 ~ January 16, 2014 Avison Young announces $3.5M sale of Cosner’s Corner Retail Center Equity Retail Brokers’ McEvoy & Delfiner execute sale of 2,848 s/f paint store National Realty & Development Corp. 13,500 Old Navy opening at Orange Plaza
NEW RETAIL SPACE Kmart Center Rte. 37. Toms River
The James Balliet Commercial Group
“The Lehigh Valley’s Premier Full Service Commercial Real Estate Company”
1,000 SF - 40,000 SF AVAILABLE Hotel / Retail
• Shopping Center Sales & Leasing • Retail, Office, Medical & Industrial Properties • Distressed Property & Asset Management • Tenant Representation • Business Brokerage • Commercial Land Brokerage • Multi Unit Apartments
PAD SITES AVAILABLE
610-435-4711
Ocean, NJ
www.lehighvalleycommercial.com
KW Commercial | 40 S. Cedar Crest Blvd.| Allentown, PA 18104
14A — February 28 - March 13, 2014 — Top Retail Deals 2013 — Mid Atlantic Real Estate Journal
www.marejournal.com
T op R etail D eals “2013”
Bennett Williams Realty, Inc.
Remco Realty Group
Remco Realty Group North Brunswick, NJ
BENNETT WILLIAMS REALTY INC. 3528 Concord Rd., York, PA 17402
Top deal of 2013: : Remco served as the sole broker in the $3.3m investment sale of Hillsboro Club Plaza, a 55,000 S/F neighborhood Shopping Center situated on 5.5 acres. The property is located at the signalized intersection of Route 206 So. & Andria Avenue, adjacent to TD Bank and directly across fromBurger King and a newly constructed Chase Bank, on the former Charlie Browns site.Tenants at the center include: Body Shop Fitness, Cafe’ Graziella, Jem Cleaners, Allstate Insurance and Wine Manor. Currently, a 22,000 S/F vacancy exists, which was previously occupied by Cost Cutters.
Total Sales or Acquisitions: $178,258,762 Total of S/f Leased, Sold or acquired: 2,005,619 S/F
Top deal of 2013: $4.697m sale of Randolph Park SC (1720 S. Queen St., York, PA). The 30,000 S/F center features tenants such as Jos. A. Bank, Starbucks, and Chico’s.
OVERVIEW OF 2013: 2013 was an amazingly impressive year. At our firm, we saw exponential growth in both the dollar amount sold, and the square footage leased in all areas of commercial real estate (retail, office and industrial). Our firm has also seen healthy growth in the number of active, high-volume agents we employ. Overall, 2013 was one of best years in recent history. 2014 Outlook: The year ahead, 2014, looks to grow and expand on the market growth we have seen in the past year. We are very
OVERVIEW OF 2013: In 2013, we enjoyed a very steady volume of both closed transactions, and new marketing assignments. Some of those closed transactions include the sale of a 15,000 s/f Industrial building in Branchburg to WJ. Casey Rigging; the sale of the 55,000 s/f Hillsboro Club Plaza Shopping Center, the leasing of 3,200 s/f to Sherwin Williams in Hillsborough, and the leasing of 15,000 s/f to Dollar Tree in Hazlet. 2014 Outlook: We believe that 2014 shall remain as steady as 2013, or slightly better. We are starting 2014 with several deals in the paper stage, and just signed a new listing for a 7,500 s/f building for sale on Rte. 22 in Green Brook, which was formerly home to National Pools & Spas. Remco recently celebrated its 6th year Anniversary in business, with the launching a brand new website. The firm has been extremely active over the years with both landlord and tenant representation assignments, and investment sales transactions.
Bradley Rohrbaugh
Chad Stine
excited to see what the new year holds for us. n
Our hard work ethic and commitment to providing the highest level of service to our clients has been the keys to our success.
B ennett W illiams R ealty I nc .
R emco R ealty G roup
7,500 SF Retail/Commercial Building
Green Brook, NJ — Free-standing 7,500 s/f Retail/Commercial building, formerly home to National Pools & Spas for sale or lease. The property features a large pylon sign, 30 car parking, and large rear yard for storage. *Additional Property Bonus* includes a 7,500 s/f basement, with bathrooms and 2 drive-in loading docks, that may be leased out separately, making this property a great opportunity for a User / Investor seeking to purchase and collect rent. Area demographics include a population of over 94,000 within a 3 mile radius, earning over $93,000 of median household income.
For more information contact: Peter Gallicchio (732) 253-0888 | pgallicchio@remcorealty.net www.remcorealty.net
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