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Announces sale of Parsippany and Giralda Office Properties Mack-Cali BOD decides to sell suburban office portfolio for $288.5 million
ISSUE HIGHLIGHTS Volume 32, Issue 2 Jan. 31 - Feb. 13, 2020
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ERSEY CITY, NJ — Mack-Cali Realty Cor- porat ion announced that the Board of Directors of the company, at its regularly scheduled meeting held on December 17, 2019, received the report and recommenda- tions of the Shareholder Value Committee and its financial advisors regarding the com- pany’s strategic direction and alternatives for maximizing stockholder value. As previous- ly announced, the Mack-Cali board formed the Shareholder Value Committee comprised of four independent directors following the company’s 2019 Annual Meeting of Stockhold- ers to review the Company’s strategic direction and make a recommendation to the full Board. Goldman Sachs &Co. LLC served as financial advi- sor to the Shareholder Value
Advisors, L.P. and Axonic Capital LLC, for an aggregate purchase price of $285 million in cash and $3.5 million of as- sumed lease obligations. The company plans to use the avail- able sales proceeds to pay down its corporate-level, unsecured indebtedness. Mack-Cali expects to com- plete the sale of its entire sub- urban office portfolio in 2020. After the completion of the suburban portfolio sale, Mack- Cali’s entire holdings will con- sist of its waterfront class A office portfolio of approximately 5.0 million s/f and the Roseland multi-family operations. Going forward, the Board will continue to consider the recommendations provided by the Shareholder Value Com- mittee regarding available alternatives for maximizing stockholder value.
3A
SPOTLIGHTS 5-14A ECONOMIC DEVELOPMENT 2020 FORECAST
Parsippany buildings - photo credit: Ben Gancsos Photography
Committee. Mack-Cali also announced that, based on the recommen- dations of the Shareholder Value Committee, the board has determined to sell the com- pany’s entire suburban office portfolio totaling 6.6 million s/f of office space. As the first step of the company’s plan to sell
its suburban office assets, the board has approved the sale of two suburban office portfolios consisting of 2.4 million s/f of office space located in Parsip- pany and Madison, NJ, or 36% of the s/f of the company’s suburban holdings, to Onyx Equities, LLC in partner- ship with Taconic Capital
Section C
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Domenico of Progress Capital arranges $85 million loan for Bronx mixed-use building
baking facility for the Great Atlantic & Pacific Tea Com- pany, also known as A&P and later became the world’s larg- est warehouse and rebuilding facility for food processing equipment for Union Standard Equipment Company. In 2016, the building was purchased in partnership by the Bluestone Group, the Altmark Group, Madison Realty Capital and Galil Management who recently finished a $45 million renova- tion on the building to include new mechanicals, new eleva- tors, new ground floor retail space, office space, industrial space with private parking, a roof deck and a penthouse with 20-foot ceilings. Today, the building is now known as ‘Union Crossing’. The property welcomed its first tenant, Westhab, in Q4 of 2019, which currently occupies 8,233 s/f of space used for their execu- tive offices and a job training center. Westhab is a non-profit organization that develops quality affordable housing and provides youth programs and
BRONX, NY — Brad Do- menico , partner at Progress Capital arranged an $85 mil-
lion loan to refinance 825 East 141st St. located in the Port Morris section of the Bronx. Originally
constructed in 1916, the building once served as a major Brad Domenico
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Union Crossing
Domenico negotiated a LI- BOR floating loan to replace the construction loan and provide necessary funds to allow for tenant improvements and leas- ing commissions during lease up. LibreMax Capital , a New York based asset management firm, provided the debt. Progress Capital is a com- mercial real estate advisory firm with over $40 Billion in closed loans and $150 Million of directly funded bridge loans.
employment services. 260,000 s/f of space remains available for lease. Union Crossing is conve- niently located two blocks from the number 6 train and the Bruckner Expressway. Access to connective rail lines drove the early development of the Port Morris waterfront around the turn of the 20th Century and major transportation ar- teries continue to define the neighborhood today.
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M id A tlantic R eal E state J ournal Publisher, Conference Producer . .............Linda Christman AVP, Conference Producer ...........................Lea Christman Publisher ........................................................Joe Christman Section Publisher ............................................. Steve Kelley Section Publisher ............................................... Kim Brunet Editor/Graphic Artist..... .................................Karen Vachon Office Manager ...............................................Kerrin Devine Contributing Columnists .............................. Gina Perrone, CPA, MST and Adam Nelson, CPA, MST, Sax, LLP; Ashley Kettler, CPA, Withum; Michael Mullin, IBS; Lee E Wasser- man, LEW Corporation; Noel K. Walsh, E.B. Cohen Mid Atlantic R eal E state J ournal ~ Published Semi-Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 350 Lincoln St, Suite 1105, Hingham, MA 02043 USPS #22-358 | Vol. 32, Issue 2 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Phone: 781-740-2900 | Fax: 781-740-2929 www.marej.com
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Adam Nelson, CPA, MST Gina Perrone, CPA, MST
Construction Industry Tax Update T here are many changes, rising challenges, and emerging trends facing the construction industry as it continues to evolve. As we kick off the new year and decade, consider the following tax up- date relating to the construc- tion industry when planning for success. Topics include tax accounting-method opportuni- ties, the Qualified Business In- come Deduction for contractors, the business interest expense limitation, and notable IRS compliance campaigns affect- ing businesses with over $10M of assets. Tax Accounting-Method Opportunities For tax-year 2019, contrac- tors with average gross receipts under $26M for the prior 3 years may use the cash method of accounting. Such contractors are also exempt from the per- centage-of-completion method of accounting for long-term con- tracts expected to be completed within 2 years. New Jersey does not pro- hibit “pay-if-paid” clauses in contracts. On a contract-by- contract basis, taxable income may be adjusted when the sub-contractor has not yet been paid. If sub-contracts contain the appropriate “pay-if-paid” provision, advance consent from the IRS is needed by fil- ing Form 3115 “Application for Change in AccountingMethod.” However, if sub-contracts don’t include this provision, and their wording is changed, this con- stitutes a change in facts — no Form 3115 is needed, and there is no $10,800 user fee. Note that the change should not impact normal business practices. The Qualified Business Income Deduction for Con- tractors This provision, created in December 2017, allows a 20% deduction of Qualified Business Income (QBI). Under current law, this provision will sunset in 2026. QBI is qualified in- come, gain, deduction, and loss from a partnership, S-Corp, or sole proprietorship. QBI does not include reasonable com- pensation paid to a partner or shareholder. Income from“specified service trades or businesses” (SSTB’s) is excluded. SSTB’s are law,
health, consulting, financial services, or any trade/business where the principal asset is the reputation/skill of one or more of the owners/employees. Engi- neers and architects are specifi- cally excluded from SSTB’s. If your 2019 married-filing-jointly income is under $321,400, your 2019 married-filing-separately income is under $160,725, or your single/head-of-household income is under $160,700, you can still benefit from the QBI deduction even if you work in an SSTB. The benefit phases out to $0 once income reaches $100,000 more than the stated thresholds. The AICPA reports that most contractors took advantage of the full QBI deduction for tax- year 2018. Profits were healthy and the W-2 limit had little or no impact. There are planning issues related to owners’ rea- sonable compensation. Aggre- gation with real estate entities is available for self-rentals and for businesses under common control. The Business Interest Expense Limitation for Contractors This provision, known as Section 163(j), also created in December 2017, limits the business interest expense de- duction to 30% of adjusted taxable income (ATI). ATI is calculated as taxable income without regard to non-business income/expense, business inter- est income/expense, the net- operating-loss deduction, the QBI deduction, and for years before 2022, deductions for depreciation, amortization, and depletion. Any limited interest expense deduction is carried forward and used in a subsequent year when the business generates enough ATI to take the deduc- tion. Businesses with average gross receipts under $26M for the prior 3 years are exempt. Real-property trades or busi-
nesses may elect out of Section 163(j) but must then use the slower Alternative Deprecia- tion System (ADS). Note that construction activities qualify as real-property trades or busi- nesses. Active IRS Large- Business Audit Campaigns The IRS continues to pursue audit campaigns to improve return selection, identify po- tential non-compliance issues, and make the best use of lim- ited resources. Here are the top 8 active audit campaigns impacting the construction industry: 1. S-Corp distributions 2. S-Corp losses claimed in excess of basis 3. S-Corp Built-in Gains tax, as it applies to assets sold by the S-Corp within 5 years of converting from a C-Corp. 4. Sale of partnership interests 5. Related-party transac- tions 6. Interest capitalization of self-constructed assets 7. Offshore private banking 8. Virtual Currency Reach out to Sax’s Construc- tion Practice to discuss plan- ning opportunities related to the topics above. We can help you evaluate the short- and long-term effects of account- ing-method changes, QBI, and Section 163(j), and many other important items to consider. Gina Perrone, CPA, MST is a senior tax manager at Sax LLP, and a mem- ber of Sax’s Construction Practice. She specializes in high-quality tax services and planning opportunities to meet clients’ ultimate goals and objectives. Adam Nelson, CPA, MST is a senior tax associate at Sax LLP, and a mem- ber of Sax’s Construction Practice. He specializes in addressing the compliance challenges of multi-state businesses.
UPCOMING features SPOTLIGHTS
781.740.2900 Special Advertising Rates to All Participating Firms! Contact Joe Christman or your Account Rep JChristman@marejournal.com JANUARY 17 .............................................DEADLINE: JAN. 8 ROP (FRONT SECTION) ........................................ FINANCIAL DEL/MAR/VA.............................................................................. NEW JERSEY.................................................. SOUTHERN NJ PENNSYLVANIA.................................... SOUTHEASTERN PA SPOTLIGHT...................ECONOMIC DEVELOPMENT JANUARY 31 ............................................DEADLINE: JAN. 17 ROP (FRONT SECTION) .......................................................... RETAIL DEVELOPMENT REIMAGINED................................... ODM..................................LANDSCAPE SERVICE & DESIGN SPOTLIGHT......................................2020 FORECAST
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Questions? Contact: Jennifer Shockley, CAE | Executive Director 717.614.4271 jennifer@panjdeccim.com www.panjdeccim.com
2020 PA/NJ/DE CCIM CHAPTER OFFICERS Stacy Martin, CCIM President Hankin Group Jeff Kurtz, CCIM Vice President High Associates, Ltd. Dominic Janidas, CCIM Secretary/Treasurer Hanna Langholz Wilson Ellis John Birkeland, CCIM Immediate Past President ROCK Commercial Realty Eric Gorman, CCIM District 10 1st RVP Cushman & Wakefield 2020 DIRECTORS Dan Berger, Jr., CCIM Chair, Scholarships U.S. Commercial Realty Michele Countis, CCIM Chair, Designation Jackson Cross Partners Dragan Dodik, CCIM Regional Chair, Central PA Pennian Bank Philip Earley, CCIM Chair, Nominating Lieberman Earley & Company Jonathan Epstein, CCIM Chair, Public Relations Macada Properties Cindy Feinberg, CCIM Regional Chair, Lehigh Valley Feinberg Real Estate Advisors Craig Fernsler, CCIM Chair, Legislative KW Commercial, Blue Bell Robert Fuller, CCIM Regional Chair, New Jersey CBRE Jeffrey Hoffman, CCIM Chair, Education JPH Realty Advisors
STACY MARTIN, CCIM ELECTED CHAPTER PRESIDENT FOR 2020
The PA/NJ/DE CCIMChapter has elected Stacy Martin, CCIMof Hankin Group as its chapter president, making her the first female president since the chapter’s inception in 1979.
“I’mhonored to have this opportunity to work with such a progressive organization and talented group of leaders,” stated Martin.
“Our chapter made great strides last year under the leadership of John Birkeland, CCIM to re-engage the entire geographic area of our chapter, and I look forward to further connecting with CCIMs and our sponsors, both locally and nationally,” added Martin. Martin has been with Hankin for 18 years. As Director of Commercial Sales and Leasing for Hankin Group, she oversees over 1,500,000 sq. ft. of real estate. Additionally, Martin is on several other boards, including the Chester County Chamber of Business & Industry, Downingtown Area STEM Academy Advisory Board and i2n Board. Formerly, Martin served on the Chester County Economic Development Council Board and the CII Council Board.
Neil Kilian, CCIM, SIOR Regional Chair, Delaware NAI Emory Hill Laura Martin, CCIM, CPM, WBE Chair, Membership SVN | Latus Commercial Realty Group Andrew Miller, CCIM Regional Chair, Pittsburgh CBRE Kathy Sweeney-Pogwist Regional Chair, Philadelphia Metro Brandywine Realty Trust
4A — January 31 - February 13, 2020 — M id A tlantic Real Estate Journal
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E conomic D evelopment
M id A tlantic Real Estate Journal — Economic Development — January 31 - February 13, 2020 — 5A
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N ew J ersey
P ennsylvania
As we enter a new year, New Jersey is eager to convey one simple message to the Mid-Atlantic Real Estate Journal, and real estate professionals across the county: We are ready for your business.
Pennsylvania is starting out the 2020s with a strong economy, a welcoming business climate, and plenty of opportunity for investment. The past few years have brought increasing vi- brancy to every corner of Pennsylvania. The Lehigh Valley is one of the fastest growing regions of our nation. Pittsburgh and Philadelphia are drawing new residents of all ages eagerly seeking culture and opportunity. Lancaster has become known nationally as a place attracting new young people
We have a “can’t miss” geographic location, un- matched infrastructure, and boundless opportunities for development and redevelopment throughout our cities and towns. We also possess one of the largest commuter rail systems in the county, which presents numerous transit-oriented development opportuni- ties. These factors make us uniquely primed for com- panies looking for a location that is easily accessible, offers a vast pool of premier talent, and a state government that is eager to work with them to create a home in our great state. We are also making every effort to improve the interaction between state government and the private sector and make it easier to run your business. Permitting processes are being updated, more forms are being made available online, and we are at the forefront of implementing the Opportunity Zone tax incentive program. In fact, census tracts in Jersey City and Newark recently ranked near the top of Smart Growth America’s National Opportunity Zones Ranking Report for growth potential based on criteria such as housing diversity, walkability, job density, and proximity to central business districts. These are just a few of the numerous reasons why the Garden State is a can’t-miss location for the real estate industry. In October, we unveiled an entirely new economic plan to put our strategic advantages into clearer focus. I encourage you to see how New Jersey can fit your plans for a pros- perous and successful 2020. My very best, Phil Murphy, Governor Phil Murphy
Tom Wolf
while retaining longtime residents. And, our smaller communities are thriving due to strategic investments that set our commonwealth on a path to long-term prosperity. Pennsylvania offers unparalleled geography, transportation and culture. We have the sites needed for businesses to thrive along with world-class road, rail and port. And, the investments we’re making in education ensure businesses of all sizes can get the talented, skilled workers they need. Pennsylvania is primed for investment. I commend our local commercial real estate professionals and the Mid-Atlantic Real Estate Journal for their commitment to our commonwealth and look forward to sharing the new opportunities that continue to arise in Pennsylvania. Tom Wolf, Governor On behalf of the State of Maryland, it is my plea- sure to recognize the real estate industry and all business professionals in Maryland and through- out the Mid-Atlantic region. Our state is proud to provide a business-friendly environment for all en- trepreneurs, from newly-created start-ups to large, established corporations. Economic development has always been one of our administration’s top priori- ties, and we are proud to have the fastest job growth in the Mid-Atlantic region and the highest median household income in America. Maryland is Open for Business, which means our state has many tools and resources to help businesses thrive. The modernization of Maryland’s transportation system includes the largest proposed public-private partnership (P3) highway program in North America to support our state’s robust economy. We’ve also dedicated significant resources to STEM educa- tion with a particular focus on increasing the number of women in computer science and related fields. Maryland has launched a one-stop business portal for Maryland’s commercial real estate professionals and small businesses to plan, start, manage, and grow their business at businessexpress.maryland.gov. I am so proud of Maryland’s com- mercial progress and it is a true privilege to provide this message for the Mid Atlantic Real Estate Journal. I am happy to learn there is strong interest in this years’ issue and I am sure it will be even more successful than in past years. I wish you continued success and I look forward to working with you in the future. Sincerely, Larry Hogan, Governor Larry Hogan M aryland
D elaware
On behalf of the State of Delaware, I am honored to extend greetings to commercial real estate pro- fessionals in the Mid Atlantic region and readers of the Mid Atlantic Real Estate Journal. Your work is an important part of our overall goal to generate economic opportunity in Delaware. Delaware is focused on strengthening our inno- vation economy and bringing new businesses and good-paying jobs to our state. Through supporting
John Carney
small businesses and partnering with the private sector, Delaware is making improvements that will shape our economy for years to come. The Delaware Prosperity Partnership, a public-private partnership that is committed to advancing prosperity in Delaware, works to attract and retain businesses and talent. This strategic partnership focuses on innovative small businesses and large employers alike -- to strengthen our economic climate and bring good jobs to the people of our state. Delaware’s reasonable cost of living, beautiful beaches and tourism industry, and accessibility to major cities in the northeast make it a great place to live, work and raise a family. Thanks for all that you do to support Delaware and our region.
Best wishes, John C. Carney, Governor
6A — January 31 - February 13, 2020 — Economic Development — M id A tlantic Real Estate Journal
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G reater R eading , PA By Pamela J. Shupp, AICP, CEcD, Greater Reading Chamber Alliance The Year is 2020, but do we have 2020 Vision?
F
or the past several years, I have been pro- jecting what I expect
attract and retain talent for our existing companies while accommodating new business
local communities to be places where employees want to work and where people want to be. 2. Ready to go Sites – We Have Them. After years of turning away prospects who wanted to locate in our community because we just didn’t have a ready-to-go site, Greater Reading is ready! The pipeline for industrial land de- velopment in Berks County is substantial. There is 7 million + SF in industrial, commercial and logistics inventory coming on-line or already prepared in Greater Reading. The foot- prints of many of these sites
and buildings are flexible and will accommodate existing Berks County business expan- sions and new companies look- ing for that affordable East Coast location with access to workforce and infrastructure. 3. New Housing and Life- style Choices are Para- mount. Housing availability and opportunities have quickly become top of mind and part of our economic development con- versation and strategy. In or- der for people to choose Greater Reading, we are committed to identifying housing opportuni- ties and developments where people want to live, filled with the amenities they are seeking and layouts that are conducive to their lifestyle preferences. (Who hasn’t heard of open concept floor plan?) 4. Location, Workforce, Talent, Quality of Place, Diversity – it’s not just one thing, but you can find help at One Place. Location, loca- tion, location – this real estate mantra drove many company location decisions. It gave way in recent years to workforce, workforce, workforce. And now, it has given way again. It’s about Location, Available Talent, Quality of Place and Diversity. To effectively focus on this market basket of com- pany wants, Greater Reading is positioned to proactively and aggressively address these wants. At the Greater Reading Chamber Alliance (GRCA), we are an economic development powerhouse that combines public and private financial resources and more than 100 years of economic, business, and workforce expertise. We are hitting our stride in po- sitioning Greater Reading as THE best place to locate a busi- ness in 2020. With a commitment to down- town revitalization and place- making, we are creating the places where people want to work, live and spend leisure time. We are committed to growing and supporting our Latino entrepreneur and small business community who are becoming one of the most criti- cal growth components of the fabric of our business com- munity. Yes, 2020 is our year. Join GRCA to Be Something Greater. Pamela J. Shupp, AICP, CEcD is executive vice president &COOof Great- er Reading Chamber Alli- ance.
1. Talent Attraction can trump Physical Locations. Talent attraction and talent
to see in the coming year. Wh a t n a - tional and re- gional trends wi l l a f f ec t us? How will it affect our business at- traction and
At the Greater Reading Chamber Alliance, we are an economic development powerhouse that combines public and private financial resources and more than 100 years of economic, business, and workforce expertise.
growth. Through strategic partnerships, and our Meet Greater RDG platform, we will be helping companies to attract new skilled talent and retain their current talent by enhancing and spotlighting our
retention are an integral com- ponent of Greater Reading’s economic and community development strategy. With several Greater Reading com- panies looking to expand, we will be focused on how we
Pamela J. Shupp
growth strategies? What will we see locally? Well, here are my projections for what you are going to see in Greater Reading in 2020.
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M id A tlantic Real Estate Journal — Economic Development — January 31 - February 13, 2020 — 7A
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E conomic D evelopment
By William E. Holloway, AIA LEED AP, Bernardon Happiness by Design: How applying corporate design can enhance the healthcare workplace I n healthcare design, the focus has recently shifted to the needs of health-
83 percent of clinicians, clinical leaders, and healthcare execu- tives view physician burnout as a problem. It’s figures like these that reinforce the need for a new approach to create more efficient workplaces. With healthcare organi- zations seeking to improve employee experience, and employees seeking to improve their well-being, designers are looking to elements of corporate design to improve both. While attending the 2019 Healthcare Facilities Sympo- sium & Expo in Boston, my team and I heard industry ex- perts cite the benefits of apply-
ing corporate design to health- care workspaces. Marberry also lists learning from the corporate environment, such as giving professionals more choice and control, as a means to carry this out – and we at Bernardon agree. One way of doing this is open-concept design. As team-based care becomes more widespread, these open-concept layouts help to keep employees more engaged and connected. At the same time, the private office is becoming more and more ob- solete, and “hoteling”, a trend where a clinician or nurse may occupy a workspace for
a shift and then use a huddle area for a collaborative task, is becoming more common. Incorporating sufficient col- laborative space within the interior design of healthcare facilities will serve to reinforce these new workplace trends. Fluid and flexible, these open-concept layouts will re- quire additional elements to enhance their usability. Ad- justable components and sys- tems that can be reconfigured into different layouts enhances flexibility and also provides a sense of privacy. Popular in corporate office environments, standing-height desks and:
collaborative seating areas allow for a reprieve for nurses who are often sitting, standing up, and walking around during their shifts. Ensuring restful working conditions also carries over to break rooms, where rest is sought after the most. Cre- ating residential-style break rooms through incorporating soothing paint colors, fabrics, and wood finishes serve to cre- ate a home-like atmosphere. Additionally, addressing acous- tics by providing sound-absorb- ing materials in the ceilings and walls can help create a stronger sense of privacy. continued on page 10A
care profes- sionals and their work- s p a c e . A t Bernardon, we have tra- ditionally de- signed with the needs of our c l i ent ,
WilliamHolloway
and ultimately their patients, in mind. However, this para- digm shift reflects the need to improve the workplace condi- tions of the healthcare profes- sional, so that in turn, their patients can benefit as well. Oftentimes, healthcare fa- cilities can be chaotic environ- ments wherein professionals face challenges of adminis- tering effective care within a not-so-effective workspace. Yet, what we see is often just a glimpse into a much larger issue. Those who spend days and nights working in hospi- tals, medical offices, and care centers face the limitations of their workspace on a daily ba- sis. Whether its dealing with spatial issues like overcrowd- ing or lack of resources within the work areas, healthcare professionals often endure less-than-ideal working condi- tions along with the daily chal- lenges of providing optimum healthcare services to patients and residents. We anticipate that health- care facilities will respond to this need and seek to imple- ment design solutions that address both the concerns of the staff and the patients in order to create a healthier, happier environment. More- over, healthcare employers are seeking ways to attract and retain talent, and provid- ing an optimal workspace is surely one of many ways to accomplish this. So, where are designers gathering inspira- tion for these workspace im- provements? It might be con- sidered a surprising source: the corporate office. Applying Concepts from Corporate Design This heightened focus on the healthcare workspace involves taking into consideration the challenges of healthcare pro- fessionals. Healthcare design consultant Sara Marberry has reported that nurses often feel undervalued and more than half suffer from musculoskel- etal pain. Whereas Healthcare Design Magazine shares that
DREAM. DESIGN. SUCCEED.
Philadelphia, PA West Chester, PA Wilmington, DE www.bernardon.com
8A — January 31 - February 13, 2020 — Economic Development — M id A tlantic Real Estate Journal
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E conomic D evelopment
Bedford County Development Association Warehouse distribution & manufacturing companies find doing business is better in Bedford W hen asked what the secret to success in Bedford County
Adjacent to and within two miles or less to three inter- states (I-70/76 and I-99) Bed- ford County Business Park I & II sites offer prime access to the Mid-Atlantic Region. DC/Baltimore – 140 miles; Philadelphia – 200 miles; NYC - 270 miles; Pittsburgh – 100 miles. Equally attractive is the availability of a skilled and dependable workforce. With 11,400 laborers labeled as “out-commuters” – people who leave the county for jobs – new and expanding employ- ers enjoy a loyal labor force eager to secure employment
closer to home. Bedford County, PA is the home to an 850,000 s/f Walmart Food Distribution Center and REI’s 525,000 s/f East Coast Distribution Cen- ter. Suppliers are beginning to take note: TramBar/Kate’s Real Food, purchased Lot 19 in Bedford County Business Park I in 2019. The proximity to the REI Distribution Warehouse and major markets made sense for the health food manu- facturing and distribution company. A strong manufac- turing base is thriving in the 15522 zip code. Over the past two years: CaptiveAire invested $11 million to double its Bedford County plant size, Bedford born and based Creative Pultrusions acquired the former Oklahoma based com- pany Tower Tech and brought those operations home, Lam- pire Biological Labs expanded both the Bedford based lab and "pharm" campus. Green Leaf Medical, a medical can- nabis grower/processor op- eration, made the decision to call Bedford County PA home and purchased a 274,000 s/f vacant industrial building, investing $15 million in phase one of their Bedford facility. Phase two kicks off in Bedford County this year. Corle Build- ing Systems, BC Stone, MEC, JLG, Mission Critical Solu- tions and others in the region have also invested in Bedford County and are experiencing ongoing growth. The Bedford County Devel- opment Association (BCDA) welcomes new and expand- ing businesses with a robust inventory of competitively priced pad ready sites, a total of approximately 122 acres over 10 lots. Lots as small as 4 acres and as large as 82 acres are pre permitted and designed to accommodate facilities as large as 780,000 s/f and as small as 12,000 s/f. BCDA looks forward to breaking ground on the next Spec building in the Business Park this year. Currently in the design phase, they specu- late this particular structure could be as small as 22,000 s/f or as large as 100,000 s/f The Bedford County De- velopment Association is the first stop for any business person considering expand- ing or locating in Bedford County.
Pennsylva- nia is, Bed- ford County D e v e l o p - me n t A s - soc iat ion’ s Bette Slay- ton tells us - “It is simple. Our sites are
Bette Slayton
strategically located and truly pad ready. The pre- permitting work we‘ve done saves time and money. Ad- ditionally our sites are desig- nated as KOZ sites, meaning
Bedford County Business Park II lot 4 aerial
no property taxes through 12-31-25. Our 80 acre tract, adjacent to REI’s distribution
center, is ready to go. This tract can accommodate up to a 780,000 s/f building.”
FEBRUARY 4-5, 2020
NEW BRUNSWICK, NJ
MEET THE PROFESSIONALS WHO FINISHED 14,000 CLEANUPS IN NJ! This exciting two day conference will host the LSRPA Annual Meeting, feature speakers, posters and presentations, networking opportunities and 36 Continuing Education Credits! The NJ Site Remediation Conference will offer courses in ethics , technical and regulatory subjects pertaining to site remediation in New Jersey.
REGISTER TODAY AT www.lsrpa.org under the NJ SRC Header
The Licensed Site Remediation Professionals Association is anonprofit organization supporting professionals involved in environmental remediation in New Jersey
Providing LSRPs with the opportunity to enhance professional fundamentals through technical, regulatory and ethics courses.
M id A tlantic Real Estate Journal — Economic Development — January 31 - February 13, 2020 — 9A
www.marej.com
E conomic D evelopment
10A — January 31 - February 13, 2020 — Economic Development — M id A tlantic Real Estate Journal
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E conomic D evelopment
Helping businesses launch, expand or relocate in New Jersey New Jersey Business Action Center encourages entrepreneurship
T he New Jersey Busi- ness Action Center is a state office with ex- perts ready to help all New Jersey businesses, answering the questions they face when navigating government at all levels. Housed within the New Jersey Department of State in Trenton, the center charges no fees and works confidentially with businesses across the Garden State on an individual basis. Our Business Helpline, 1-800-JERSEY-7, is often the way business owners first interact with us. The helpline staff gets answers to questions often within minutes, but al- ways within 24 hours or less. We’ve adopted the slogan, “Business questions? NJBAC has answers!” because it truly defines our mission. Often the questions busi- nesses have, particularly those related to construction, expansion and redevelopment, require consultation and dis- cussion and that’s when our Business Advocates spring into action. Our advocates are experts in how New Jersey businesses
Each year we award thou- sands of dollars in STEP grants to companies so they can attend tradeshows, have their websites translated into other languages and have pro- motional materials prepared for other countries. The program has been in- credibly successful and this year we have $900,000 in Cultivating More Happiness in Healthcare Finding happiness in work is a goal across many profes- sions. Whether influenced by corporate design or through industry trends, providing improved workspace design for healthcare professionals will serve to impact the over- all atmosphere and morale of the healthcare environment. The American Hospital Asso- ciation recently reported that nearly 60% of hospital execu- tives anticipate that their hos- pital will implement strategies to increase employee job satis- faction. It’s important to note
grant money available. Quali- fying companies can receive up to $15,000 to aid them as they pursue the export market. We encourage anyone doing business in New Jersey (or interested in coming to the Garden State) to talk to us and let us help you grow and succeed. that employee satisfaction can tie back to patient satisfaction. By implementing more em- ployee-focused design, includ- ing collaborative workspaces and more enhanced break rooms, healthcare profession- als can experience a happier, healthier workplace, and their patients can reap the benefits of a happier healthcare experi- ence, too. WilliamE. Holloway, AIA LEED AP, is a principal of Bernardon and registered architect specializing in healthcare, higher educa- tion, corporate, and civic & cultural design. He’s based in Wilmington, DE.
operate and they stay up-to- date on the latest rules and regulations businesses should abide by in the Garden State. They have experience working with companies of all sizes and understand their needs. They can help with site selection when you’re look- ing to relocate. We use the latest data and have strong connections with real estate professionals specializing in commercial properties. Our team can connect you to the right government pro- grams, state agencies, non- profits and community college workforce development cur- riculums designed to deliver the best employees to help businesses thrive. They can connect your busi- ness with the right person in the right state office regarding a transit question, permitting requirements, energy savings and more. Any one property may re- quire multiple permits at the local, county and state level and our advocates will help you navigate them. As they guide you through the permitting process, they
can set up meetings or make connections with the appro- priate agencies and officials to support your efforts. Our advocates understand the state’s transportation systemwhether that be access to highways, airports, public transportation and ports. That knowledge can be invalu- able in terms of logistics and how you reach your customers in New Jersey and around the world. What’s more we can create a customized summary of re- sources to identify, describe, and quantify government grants and financing pro- grams available to support business expansion, retention, and consolidation projects. In addition, our Office of Export Promotion can help get your New Jersey goods to customers in other countries. The Office of Export Promo- tion team knows the ins and outs of what can, at the outset, appear to be a complicated process. The team also administers the federally-funded State Trade Expansion Program better known as STEP grants.
continued from page 7A Happiness by Design: How applying corporate design can enhance the . . .
REDEVELOPMENT OPPORTUNITY IN THE HEART OF HAMPTON! 4030 West Mercury Blvd., Hampton VA 23666 19.56 ±AC • Zoned C-3 • Prime Location Perfect for Retail, Restaurants, Condos, Apartments & More!
FOR SALE
SITE 19.56 ± AC
For More Information Contact: Phillip Baxter at (540) 847-2385 or visit svnmotleys.com
M id A tlantic Real Estate Journal — Economic Development — January 31 - February 13, 2020 — 11A
www.marej.com
E conomic D evelopment
MISSION STATEMENT
12A — January 31 - February 13, 2020 — Economic Development — M id A tlantic Real Estate Journal
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E conomic D evelopment By Jackie Madden, The Garibaldi Group/CORFAC International Unlikely landlords make space in New Jersey for the Life Science Boom
T
he millennium began with a large migration of life science compa-
opment (R&D) space has two problems. First, the available class A lab supply can barely
driving real estate decisions throughout the region and beyond. Life science firms are
expects. To solve this market challenge, answers are coming from non-traditional sources. Take Amarin Pharmaceuti- cal, the company that holds the patent for the FDA-approved drug Vascepa, which improves cardiovascular health. After a string of favorable test results, the company’s prospects have soared and they now have a mandate to double their U.S. employee base. To accommo- date the expanded workforce, they moved from roughly 21,000 s/f in an amenity-free space in the quiet town of Bedminster to 67,747 s/f at
440 Rte. 22 in the heavily trafficked area of Bridgewater. Known as Grande Com- mons, the amenity-rich cam- pus that Amarin now calls home is minutes from the walkable downtown and the Bridgewater Commons Mall. What makes the deal unique is that the campus is a tra- ditional office park, but the landlord has agreed to build a state-of-the-art R&D lab to accommodate Amarin’s needs. Cellularity’s relocation to Florham Park this past April tells a similar tale. The clin- ical-stage cell therapeutics company leased 145,000 s/f of space at The Green at Flo- rham Park, moving from an older space in Warren. Again, a landlord in a traditional office park was willing to build a brand new R&D lab to help Cellularity immerse themselves in the flourish- ing Florham Park innova- tion community. The new lab also enables streamlining the firm’s manufacturing and distribution by incorporating the newest technologies and workflow studies. In addition, emerging inno- vation centers and life science- focused shared office and lab spaces are helping to support the demand. Those too are coming from non-traditional operators such as Bristol- Myers Squibb (formerly Cel- gene) at their Summit campus and Princeton University who operates the Princeton Innova- tion Center BioLabs. The New Jersey Bioscience Center at New Brunswick is home to many young firms. In the heart of New Jersey's "Research Corridor,” the Bio- science Center is a 46,000 s/f biotech incubator in a 50-acre research park that is run by the New Jersey Economic De- velopment Authority. As we begin a new decade, opportunistic landlords will continue to reap the rewards of filling the lab gap. The demand for a vibrant and diverse work experience validates blurring the lines between office and lab space, so expect more office landlords to open their doors to R&D. Amore uncertain future may be ahead for landlords of traditional lab space that aren’t adapting to this new reality. Jackie Madden is direc- tor of brokerage services at The Garibaldi Group/ CORFAC International.
nies out of New Jersey, but more re- cent years have found a new crop of young sci- ence-related f i r m s e s - tablishing a
The demand for a vibrant and diverse work experience validates blurring the lines between office and lab space, so expect more office landlords to open their doors to R&D.
meet demand. The second is where the available space is located. In a strong economy buoyed by record-low unemployment numbers, recruitment and employee satisfaction are
regularly having to double or triple their employee base seemingly overnight, and New Jersey’s current lab offerings and their locations do not of- fer the desired live-work-play atmosphere today’s labor force
Jackie Madden
name for themselves in the state. The challenge now is: where? New Jersey’s current stock of lab and research & devel-
Real Personal. Real Successful. Real Estate. Your commercial real estate transaction demands innovative expertise and principal involvement. Our network of 80 global offices is exceptionally experienced and intentionally independent. Let’s talk today.
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M id A tlantic Real Estate Journal — Economic Development — January 31 - February 13, 2020 — 13A
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K ent C ounty , M aryland
Kent County Economic Development Kent County provides incentives and workforce development tools to help businesses grow K ent County is a scenic peninsula on Mary- land’s Upper Eastern building and is expected to be completed in the Spring of 2020. A Gigabit County
Business & Professional Park, and the I-301 Industrial Area. The region has access to a work- force close to 300,000 within a 30-minute drive and the un- employment rate continues to be below the national average. County businesses benefit from county corporate income tax exemption, low personal income tax, and a variety of tax credits making it a profitable place to do business. Chestertown Business Campus The Chestertown Business Campus is one of the largest economic development projects in the county’s history. The 80- acre site will be home to Dixon Valve & Coupling’s new distri- bution facility, new corporate headquarters, a newmanufac- turing facility, and a new facil- ity for the growing YMCA. The site has also been approved for six apartment buildings and commercial speculative space for other businesses to locate in Chestertown. Phase I of the project includes the recently completed 188,000 s/f distribu- tion facility. Phase II includes a 60,0000 s/f headquarters
Shore of the Chesapeake Bay, ideally situated less than a two- hour drive from Philadelphia, Washington DC, Annapolis, Dover and Northern Virginia. It is home to two designated Main Streets, an Arts & En- tertainment District, several worldwide manufacturers, historic Washington College, and one of the largest marina communities in Maryland. Kent County is Open for Business Kent County is actively pro- viding incentives and work- force development tools to help businesses grow. The County is developing broadband infra- structure and has implemented a 110-mile fiber optic broad- band network for high-speed gigabit connectivity. Portions of the County are located within Commerce Zones, an Opportu- nity Zone, an Enterprise Zone, and a HUBZone. The office of Economic Development works with businesses to identify the tax credits they are entitled to for locating to, and growing
Kent County has completed the backbone implementation of a 110-mile fiber optic back- bone throughout the county. The county has entered into a public-private partnership with Kent Fiber Optic Systems to provide public institutions with high-speed reliable internet ac- cess. KentFOS’ open access net- work allows Internet Services Providers the ability to offer 1G service to businesses and residences. The primary goal was to enhance the infrastruc- ture needed to support new and existing businesses and organizations in Kent County, particularly affordable, robust, and high capacity internet access. By taking this action, the county is expanding the competitive capability of local businesses and organizations, and providing more jobs and opportunities for residents. Ad- ditionally, this infrastructure improves the ability to attract new residents and businesses to the County.
The new KRM/Dixon development as part of the Chestertown Business Campus.
within, those designated zones. In addition, the County offers access to programs including the Maryland Commercial Property Assessed Clean En- ergy (MD-PACE) Program, the Maryland Manufacturing Extension Partnership (MD MEP), and the ExportMD Program. Business Overview Kent County is home to a
wide variety of businesses in in- dustries including manufactur- ing, aquaculture, agriculture, health services, education, maritime, culinary and profes- sional services. Several of the major employers are world- wide manufacturers and the county is home to several large business parks including the Kent County Business Park at Worton, the Radcliffe Creek
Live ● Learn ● Work ● Connect OPEN for Business • Tax Incentives • Fiber Gigabit Connectivity • Business Associations • Interstate Access • Loan/Capital Assistance
• Access to Higher Education • Designated Growth Areas • 17 Million People Within 100 Miles
ECONOMIC DEVELOPMENT
CONTACT US! Call 410-810-2169 or visit kentcounty.com/business
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