January 2024

SPOTLIGHTS MAREJ & CRE TV UNITE ISSUE HIGHLIGHTS Volume 36, Issue 1 January 2024

Ruppel and Cade of CBRE represent the seller PennCap Properties Denholtz Properties acquires 723,734 s/f Lehigh Valley Portfolio

EHIGH VALLEY, PA — Denholtz Proper- ties has acquired the Lehigh Valley Portfolio, an 18-building, 723,734 s/f port- folio spread across Allentown and Bethlehem. The trans- action is the latest acquisi- tion for Denholtz Properties’ joint venture which plans to acquire and develop multi- tenant industrial properties across the United States. Brad Ruppel and Tristan Cade of CBRE represented the seller PennCap Proper- ties in the transaction. The Lehigh Valley Portfolio is made up of versatile spaces situated in a coveted infill loca - tion along Rte. 22, within the I-78/I-81 Corridor. Each build- ing offers tenants exceptional connectivity to the entire Lehigh Valley market, along with the metropolitan areas of Philadelphia and NYC. L

2A PJ Argen

Lehigh Valley Portfolio

2024 FORECAST

“The Lehigh Valley’s fa- vorable demographics and ease of access to substantial population centers across the eastern United States paired with a constrained new con- struction pipeline make it a highly desirable market for

us,” said Mark Mahasky , di- rector, acquisitions and capi- tal transactions at Denholtz Properties. “We look forward to executing our time-tested asset management strategy across this portfolio to create a premier experience for the

area’s tenants.” According to the latest data from CBRE, the market con- tinues to see strong year-over- year rent growth and a limited supply of new construction that has positioned it for long- term stability. MAREJ

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UPCOMING CONFERENCES & WEBINARS 7th Annual NJ Healthcare Medical Properties Conference January 30, 2024 Webinar Series with Professor Ronald Shapiro February 6, 2024 Southern NJ CRE Forecast State of Markets Conference February 29, 2024 For speaking & sponsorship info., please contact: Lea at 781-740-2900 or lea@marejournal.com

Dalfen Industrial expands New Jersey presence with investment in 470,044 s/f Roxbury Logistics Center

ROXBURY, NJ — Dalfen Industrial has acquired a

470,044 s/f industrial building lo- cated in Rox- bury. The development project was sourced off- market by Joel Lubin,

Mike Cohen

Directory ROP (Front Section) ........................................... Section A 2024 Forecast Spotlight...........................................3-10A CIRC Delaware...........................................................21A Owners, Developers & Managers..........................11-19A Business Card Directory.............................................23A CRE Organization’s Events Calendar ............................ 24A New Jersey..............................................................FC-8B Pennsylvania..........................................................9-BC B People on the Move...................................................12B www.marej.com

quality speculative office, 48 docks, and adequate parking for both cars and trailers. The I-80/Morris County industrial submarket has strong tenant demand and many barriers to entry, including lack of developable land and large concentrations of institutional ownership, keeping its va- cancy at near 5%. “Dalfen is excited to expand our New Jersey footprint. The ability to acquire a state-of- Roxbury Logistics Center

the-art industrial property in a growing submarket with excellent proximity to I-80 and strong demographics makes Roxbury Logistics Center a great addition to our portfolio,” said, Mike Cohen , head of US acquisitions, for Dalfen Industrial. “We intend to continue growing our pres- ence in Northern New Jersey through acquiring and devel- oping properties in last mile locations”. MAREJ

Gary Politi and Chris Hile of JLL . The strategic last mile location of this property provides the opportunity for the tenant to service the greater NYC metropolitan area. Notable tenants in the area include Am- azon, UPS, and Seiko. Roxbury Logistics Center was com- pleted in 2022, having been acquired off-market by Dalfen. This rear-load property offers class A building amenities in- cluding a 40’ clear height, high

Inside Cover A — January 2024 — M id A tlantic Real Estate Journal

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2A — January 2024 — M id A tlantic Real Estate Journal

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M id A tlantic Real Estate Journal

M id A tlantic R eal E state J ournal Publisher, Conference Producer ..............Linda Christman VP, Conference Producer .............................Lea Christman Editor/Graphic Artist ......................................Karen Vachon Contributing Columnists..........................................PJ Argen, Diversified Digital Network TV; Howard Applebaum, CARA; Nathan Howell, AIA, NCARB, LSSYB, STV; Robert R. Stout, P.E., PLS, Stout & Caldwell Engineers Mid Atlantic R eal E state J ournal ~ Published Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 117 HMS Halsted Dr., Hingham, MA 02043 USPS #22-358 | Vol. 36, Issue 1 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 www.marej.com

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The Mid Atlantic Real Estate Journal and CRE TV Unite

ONTVILLE NJ — The Mid Atlantic Real Estate Jour- nal has joined forces with CRE TV , a network that employs Diversified Digi - tal Network TV technology. This collaboration opens the door for anyone with a press release, news, or by- lined article to transform their content into premium TV content, complete with affiliate TV channel owner - ship and distribution of high- quality TV, podcast, or video content. This innovative alliance merges the trusted legacy of the MARE Journal with CRE TV’s cutting-edge TV content creation and video distribution technol- ogy, offering an affordable solution for transforming written content into TV content and distributing it to a targeted audience. Affili - ates, as part of the CRE TV network, enjoy distribution M

benefits without extra fees as the network expands. Linda Christman , the visionary owner of the Mid Atlantic Real Estate Journal, recently revealed an excit - ing affiliation with CRE TV. This groundbreaking alli- ance aims to revolutionize how CRE industry leaders are showcased, and their expertise disseminated to a broader yet highly rel- evant audience. Christman expressed her enthusiasm, stating that every featured guest, leader, and educator in the MARE Journal becomes part of the CRE TV Network through this collaboration. Channel Ownership and Distribution Power:

A key highlight of this af- filiation is the opportunity for industry professionals featured in the Mid Atlantic Real Estate Journal to own their own CRE TV affili- ate channel. This not only provides a unique platform for showcasing expertise, but also grants control over their narrative in the dy- namic digital content land- scape. Linda Christman emphasized the vast distri- bution capabilities offered by CRE TV’s Diversified Digital Network TV tech- nology, ensuring premium content reaches a wide and targeted audience, blending credibility and reach. continued on page 22A

Firmly Rooted in the Law and in the Community We are well grounded in every facet of real estate law, from acquisition to construction. We are committed to serving the needs of our clients and our communities.

Contact: NEIL A. STEIN • nstein@kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-941-2469 • kaplaw.com Other Offices: • Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120 Kaplin Stewart Attorneys at Law

M id A tlantic Real Estate Journal — January 2024 — 3A

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Mid Atlantic R eal E state J ournal ’ s 2024 F orecast

FEATURING:

Robert Holland The Kislak Co., Inc.

Nat Gambuzza Berkadia

Jason Crimmins, CCIM, SIOR, The Blau & Berg Co.

Todd C. Monahan WCRE | CORFAC International

Will McKenna Progress Capital

David Zimmel Zimmel Associates

Inside:

Nat Gambuzza, Berkadia....................................................................................................................4A David Zimmel, Zimmel Associates......................................................................................................5A Will McKenna, Progress Capital........................................................................................................6A Todd C. Monahan, WCRE | CORFAC International......................................................................7A Robert Holland, The Kislak Company, Inc.....................................................................................8-9A

4A — January 2024 — 2024 Forecast — M id A tlantic Real Estate Journal

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2024 F orecast

By Nat Gambuzza, Berkadia A Deep Dive into the 2024 Real Estate Forecast for New Jersey

A s the real estate mar- ket continues to evolve, New Jersey stands at

the market is poised to see an uptick in transaction activity moving through 2024. Markets across the U.S. saw a decrease in deal activity over the last 18 months due to a tough lending environment, increased interest rates, and economic uncertainty. October of 2023 saw a peak of 5 percent on the 10-Year Treasury Yield, which naturally caused inves- tor hesitation. Today, it has dropped to the low 4’s, provid- ing investors some comfort coming into 2024. The Fed has also changed its sentiment on

raising rates further, taking a more accommodative approach. 2024 optimism can be found with the reduction of inter- est rates, lenders who have been sidelined reentering the market, and determina- tion from buyers and sellers to start transacting. All of this is happening while the fundamentals for apartments in NJ remain at the top of all national rankings. Regional Dynamics New Jersey’s real estate market has diversified pock - ets of capital for investors

to tap versus other parts of the country. Private capital has been and will continue to be the first movers in this cycle shift. Fortunately, New Jersey has plenty of it coming from family offices, high net- worth individuals, syndica- tors, and business owners outside of real estate. New Jersey also benefits from capital outside of the market targeting New Jersey. Northern New Jersey ranks as one of the highest in the country for rental

growth at 3.4 percent. This is happening while occupancy rates are climbing to north of 97 percent. All of this is tak- ing place as approximately 15,000 units of new supply enter the market. Outlook for 2024 The 2024 real estate fore- cast for New Jersey looks very promising. In fact, in November of 2023, New Jer- sey had the highest national lease renewal rate (81.5 per- cent) as compared to other MSAs. This year is providing a clearer line of sight for the multifamily sector, paving the way for transactions and more optimistic investors. Nat Gambuzza is se - nior managing director at Berkadia. MAREJ NAIOP NJ to host 2024 annual meeting & CRE Outlook SHORT HILLS, NJ — NAIOP New Jersey’s “An- nual Meeting and Commercial Real Estate Outlook,” which will be held on Thursday, Janu- ary 25, will include the election of the commercial real estate development association’s 2024 officers and trustees. Richard Barkham , global chief economist, head of Global Research & head of Americas Research with CBRE , will address the current global, regional and local economic climate. Following his keynote presentation, a panel of in- dustry experts will delve into the connection between local economic trends and the state’s commercial real estate sector. Confirmed panelists include Morris A. Davis, Paul V. Profeta Chair of Real Estate and professor of Finance and Economics, and academic di- rector, Rutgers Center for Real Estate ; Will Irving , associate professor of Prac- tice, Edward J. Bloustein School of Planning and Public Policy ; and Jeffrey G. Otteau , managing partner and chief economist, Otteau Group Inc. , and managing broker, Hudson Atlantic Realty Advisors, Inc ,. The January 25 event will take place at the Hilton Short Hills, 41 John F. Kennedy Parkway in Short Hills. Net- working and cocktails begin at 5 p.m., followed by dinner and the program. MAREJ

the forefront of upcoming opportuni- ties that are influenced by the state’s unique eco- nomic condi- tions. With pent up de- mand from

Nat Gambuzza

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M id A tlantic Real Estate Journal — 2024 Forecast — January 2024 — 5A

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2024 F orecast

By David Zimmel, Zimmel Associates Navigating the Commercial Real Estate Landscape in 2024

A s we step into the new year, it’s essential to take stock of the evolv-

downsize their office spaces. This transition towards a more flexible work environ - ment is here to stay, and the office market will need to adapt accordingly. Retail Sector: A Mixed Bag Turning our attention to the retail sector, the out- look varies depending on location and business type. Overbuilding in some ar- eas may lead to vacancies, prompting property owners to consider alternative uses for their spaces. For example, Monmouth Mall plans to transform its structure into

apartments and an open- air mall. Retailers who can diversify their business of- ferings may fare better, but overall, the retail sector is expected to experience only a minor downturn in 2024, in my opinion. Inflation and Interest Rates: A Delicate Balance Inflation has been a signifi - cant concern in recent times. However, in the last six to eight months, it appears to have slowed down, aligning with the Federal Reserve’s objectives. Furthermore, in- terest rates have decreased

by as much as one percent- age point over the last three months. While we are un- likely to return to the histori- cally low interest rates of the past, I anticipate rates will continue to decline modestly. The new norm may settle around five and a half to six percent, which could drive decision-making among in- vestors and developers. In conclusion, the commer- cial real estate landscape in 2024 will see a significant shift in the industrial sector, with increased availability of larger properties and a

potential dip in rents. The of- fice sector will need to adapt to the changing dynamics of remote work, while the retail sector may experience minor setbacks but also opportuni- ties for redevelopment. Fi- nally, as inflation eases and interest rates remain favor- able, the commercial real es- tate industry must navigate this delicate balance to seize new opportunities and thrive in the evolving market. David Zimmel is president and co-founder of Zimmel Associates in Edison, New Jersey. MAREJ

ing dynamics in the com- mercial real estate indus- try and fore- cast what lies ahead. In this article, I’ll share my insights on the commer-

David Zimmel

cial real estate market in 2024, focusing on the industrial, of- fice, and retail sectors, as well as the impact of inflation and interest rates. Industrial Sector: A Shift in Supply and Demand Let’s begin with the indus- trial sector. Over the last twelve to 18 months, we’ve witnessed a notable surge in available industrial proper- ties, particularly those ex- ceeding 100,000 s/f. The pri- mary catalyst for this influx is twofold. First, land sales have proliferated, leading to a surge in construction projects. Second, third-party logistics companies, initially expanding to support giants like Amazon, now find themselves with surplus space. Amazon, in particular, is looking to return some leased space in certain areas across the country. However, it’s crucial to note that the sub-100,000 s/f in- dustrial spaces remain in high demand. This continued de- mand is driving rental prices, which, despite the increase in availability, have not dropped significantly. Nevertheless, I anticipate a slight dip in industrial rents throughout 2024, possibly up to 10%, as more space becomes available and tenants prioritize securing lower rents over holding out for higher rates. Office Sector: Adaptation is Key In the realm of office space, the landscape remains chal- lenging. While prime A-grade buildings are likely to main- tain their resilience, the B to C-grade buildings may face difficulties. Companies are reevaluating their of- fice space needs, with many opting for reduced office us - age, favoring flexible work arrangements and remote work. As the trend of employ- ees working in-office three days a week instead of five continues, companies may

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6A — January 2024 — 2024 Forecast — M id A tlantic Real Estate Journal

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2024 F orecast

By Will McKenna, Progress Capital 2024 Outlook: The Hard Part is Over

I f you’re reading this, con- gratulations! You’ve of- ficially survived what

all the larger companies in our space meaningfully cut headcounts this past year. The theme of my article for this column last year was that the next year will prove to be interesting… I can safely say that I will never wish for “interesting times” again! One thing I’ve learned over the past 6-9 months in the lending markets is that the death of low-interest rates was not the biggest issue driving the lack of lending, but rather the increased rate volatility. More so than any-

thing else, banks hate uncer- tainty. Lending dried up the most when banks and other lenders were uncertain where and when we’d find a ceiling to rate hikes and spreads on debt offers widened as a hedge against future rate hikes – which seem to have ended. Following the Decem- ber FOMC meeting, where the Fed paused on rate hikes for the second meeting in a row, Jerome Powell made a state- ment that since “inflation has eased over the past year but remains elevated” they plan

to “proceed carefully” this year and anticipate three interest rate cuts on tap for

size of those cuts, but the fact that Powell has come out and signaled an end – regardless

will *knocks on wood* go down as the worst year in the CRE i ndus t ry in many of our careers. Transaction volume fell off a cliff, fi -

Behind the Numbers: Reflecting on a Year of CRE Industry Turmoil. It wasn’t Just Low-Interest Rates, but the Dreaded Rate Volatility. Powell’s Announcement Brings Stability, Paving the Way for a Promising 2024.

Will McKenna

nancing activity dried up across many of the traditional avenues for borrowers, and

2024. I believe we’ll see more than that, depending on the

of whether they pull back or not – lenders now have the confidence to know what their ceiling looks like and no longer worry about the real monster under the bed, rate volatility. With the glaring excep - tion of office products, most fundamentals of CRE have remained solid. The higher interest rate environment has led to lower levels of debt being provided to borrowers across the board – the days of 85%+ LTV/LTC loans are probably not coming back anytime soon. While we haven’t seen the type of distressed asset fire-sales many had anticipated, due in part to banks being flexible in working out extensions with borrowers, we should continue to see increased pressure on property owners to de-leverage existing debt with capital calls or sales this year now that financing is more readily available. The market consensus for 2024 is that rate hikes are over. The Federal Re- serve has paused, and many economists are predicting that inflation will continue to moderate and level off over the next few months. If that does happen, we believe that the FOMC will slowly start cutting rates again beginning at their May or June meeting of 2024 and continuing towards a Fed Funds rate of 4.00-4.25% by the end of the year. While many of my readers here may hope to see huge rate cuts and free money again, I don’t believe we’ll get there… but do anticipate much more activity, for both lending and transaction volume, as the light at the end of the tunnel looms closer this year. Will McKenna is manag - ing director at Progress Capital . MAREJ

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M id A tlantic Real Estate Journal — 2024 Forecast — January 2024 — 7A

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2024 F orecast

By Todd C. Monahan, WCRE | CORFAC International WCRE 2024 Forecast: Uncertain future for office sector amid remote work shift

E very quarter, WCRE conducts surveys of the Southern New Jersey

as 1818 Market Street (979K sf), where Shorenstein has a loan maturing in March. Key metrics measuring the finan - cial performance of key assets reveal financial distress and underperforming loans. Loan to Value (LTV), Debt Coverage Ratio (DCR) and Cash on Cash returns have put many owners of office building in precarious scenarios, unable to refinance or sell their assets. Several owners have handed the keys back to the lender despite the lenders not want- ing the assets on their books. This trend will continue in

2024 and 2025 with no obvious solutions in sight. In contrast, the industrial property market continues to see high demand both for large box and smaller buildings due to an increase in manufactur- ing, along with e-commerce- driven warehouse demand. Higher interest rates in 2023 impacted asset sales but user demand has not abated. We expect this to continue in 2024 as consumer demand remains strong, which directly impacts this asset class. And although the industrial vacancy rate decreased slightly in 2023, it

remains historically low. Resilient consumer spend- ing continues to support retail space demand, with minimal new supply con- tributing to rent stabil- ity and low vacancy rates. However, a scarcity of retail space in desirable locations may impede leasing activity. Despite facing headwinds, the U.S. economy has dis- played resilience in 2023 and it appears a “soft landing” is very likely in 2024. The Fed- eral Open Market Committee (FOMC) has refrained from further rate hikes, adopting

a cautious stance on easing policy until sustained infla - tion aligns with its 2% target. Forecasts indicate a potential 225 basis points cut in the fed funds target range be- tween Q1-2024 and Q1-2025. While lower interest rates may stimulate transaction activity and bolster valuations, pro- jections indicate a slowdown in consumer spending, which will cool economic growth ever slow slightly. Todd C. Monahan is execu- tive vice president & manag- ing director at WCRE | COR- FAC International. MAREJ

and Phila- d e l p h i a commercial real estate marke t s , providing an in-depth analysis of various fac- tors shaping its perfor-

Todd C. Monahan

mance. In terms of a 2024 outlook, the commercial real estate landscape, particularly in the office sector, faces chal - lenges contributing to an un- certain future. The rise of remote work has led companies to reassess their office space requirements, put - ting sustained pressure on the office market. Employers have struggled to develop a coherent workplace strategy post Covid given remote work. However, 2023 saw more employers es- tablishing hybrid work models and forcing employees back to the office several days per week. In turn, this has given employers more clarity on their office space needs and square footage. Many employ- ers are changing the office design with more meeting space and collaborative work areas with less dedicated em- ployee work spaces. For many employers, this has resulted in leasing less space but re- locating to the best quality buildings, where state of the art air filtration, amenities and enhanced security provide the most modern and healthy work environments. The flight to quality will continue in 2024 enabling trophy assets to thrive and older more obsolete assets struggling to maintain occupancy levels. 2024 will be the year where the disparity between the haves and have nots widens. In 2023 many over leveraged office assets failed to secure loan extensions or successful refinancing. This trend will continue in 2024 as more loans mature and lenders, reluctant to carry office debt, decline to finance or refinance office building loans. Our market has seen numerous defaults such as Center Square at 1500 Market (1.8M sf) the Wanamaker Building (1.8M sf), One South Broad (473K sf) and others. Several significant loan maturities loom, such

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8A — January 2024 — 2024 Forecast — M id A tlantic Real Estate Journal

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2024 F orecast

By Robert Holland, The Kislak Company, Inc. Stage set for success in 2024

T he reviews are in for 2023, and Kislak main- tained its longstand-

increased CD and Treasury rates – Kislak continued to put together and close significant deals and produce impressive transaction statistics. Most notably, we closed 120 closed transactions in 2023. As the curtain rises on a new year, the stage is set for excit - ing opportunities and achieve- ments. Now in its 118th year, Kislak knows what it takes to achieve long-running success and remain influential year after year. While evolving and adapting to changes in the times and

technology, the Kislak team also relies on the traditions and techniques that have been at the heart of the business since 1906. The Kislak com- mitment to personal, one-on- one service is never sacrificed and we value our connections with our clients. Calls, emails and texts are always impor - tant, but what sets Kislak apart is in-person meetings and really getting to know our clients and their needs. Flexibility, ingenuity and integrity are part of the pack- age we bring to the table, and

with our knowledge of the market and understanding of our clients’ goals and expecta - tions, we are well-positioned to make deals happen. Investment dollars that have been waiting in the wings for some time are likely to find their way into deals in our primary markets of New Jersey, Pennsylvania, New York and south Florida. We see strong potential for new investors seeking to broaden their portfolios, as well as for our longtime clients. Many recent studies are re-

porting the financial benefits of renting in today’s economy, which enhances multifamily real estate’s status as a highly desirable investment. We are seeing more renters than ever for a wide variety of reasons – from 20-somethings to empty nesters – and collections are strong. In this environment, the reliable and comparatively low-risk returns of multifam- ily property maintain their strong appeal. Kislak’s commercial sales and leasing division expects significant activity for office, warehouse and retail space throughout New Jersey. There are unique opportunities as workplaces and workforces continue to redefine priorities and expectations. In addition to an exception - ally well-informed and proac- tive sales force, Kislak has highly skilled marketing and administrative teams that pro- vide detailed and timely data and communications critical for clients’ decision-making. Kislak focuses on serving as its clients’ eyes and ears in the marketplace. We put in the time, effort, research and homework needed to help en- sure our clients are prepared and informed as we put togeth- er deals that serve our buyers, sellers and communities well. Legwork and knocking on doors might sound old-fash- ioned, but it’s that kind of determination and the connec- tions it creates that have seen Kislak and its clients through more than a century of change and challenges. Every type of market is a good market for Kislak. We can see our brokers shine even in demanding markets because they have diligently built relationships that make it possible to find the right buyers and sell properties. For 2024, the plot remains clear and the Kislak story remains positive. Bring together great casts, put the spotlight on terrific deals, and successful closings take center stage. Robert Holland is presi - dent of The Kislak Compa - ny, Inc. Holland joined Kislak in 1984 and became president in 2012. Consistently, among the leading brokers of apart- ment buildings in central and eastern Pennsylvania, Holland is one of Kislak’s all-time lead- ing salespeople with sales total- ing more than $3 billion. MAREJ

ing run of outstand- ing perfor- mances. In a year that saw a vari- ety of chal- lenges for real estate investment – including

Robert Holland

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2024 F orecast

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FEATURED 2023 MULTIFAMILY SALES

Irvington, NJ $19,500,000 190-Unit Portfolio

Belleville, NJ $11,800,000 95 Units

East Orange, NJ $10,850,000 94 Units

Bayonne, NJ $9,900,000 197-Unit Development

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Marietta, PA $7,000,000 41 Units

Long Branch, NJ $9,750,000 52 Units

Long Branch, NJ $6,450,000 32 Units

Union City, NJ $6,150,000 44 Units

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West New York, NJ $5,210,000 13 Units

Passaic, NJ $4,300,000 13 Units

West New York, NJ $3,850,000 16 Units

Montgomery, NY $3,475,000 20 Units + Land

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Spring Valley, NY $3,400,000 29 Units

Jersey City, NJ $2,550,000 13 Units

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MULTIFAMILY SALES | INVESTMENT SALES | COMMERCIAL SALES | COMMERCIAL LEASING The Kislak Company, Inc. | kislakrealty.com | 732 750 3000

10A — January 2024 — 2024 Forecast — M id A tlantic Real Estate Journal

www.marej.com

2024 F orecast

By Jason Crimmins, CCIM, SIOR, The Blau & Berg Company 2024 Forecast: Navigating volatility, shifting trends, and the booming cannabis market

2 024 is projected to be a year of continued vola- tility in the real estate

considerable demand in the areas surrounding the ports of New Jersey and New York, as companies address solutions to the deficiencies in their critical last-mile e-commerce opera- tions. Vacancy rates have start- ed to rise, rents are stabilizing, while tue absorption rate has turned negative for the third straight quarter. Growth for the majority of the 3PLs and logistics companies has slowed. With all that said, the New Jersey industrial dynamics remain tight. As the new con- struction pipeline starts to

dry up, logistic demand and vacancy rates should gain their balance again. The office market, still bur - dened with excess inventory amidst a new world of hybrid work schedules, ended 2023 with a vacancy rate hover- ing around 25%. Companies are trying to determine how much space they’ll require go- ing forward. Office developers have pivoted to repurposing existing properties into mixed- use. Massive projects, such as the Riverton Development in Sayreville, one of the largest

over financial benefits versus perceived community concerns have resulted in contentious town hall discussions and strict zoning restrictions but legal cannabis is here to stay, and real estate will be one of the many beneficiaries. The overall economy pres- ents the largest unknown to all forms of real estate. Em- ployment cuts are occurring across most business models for efficiency and sustainabil - ity purposes. Capital markets continue to struggle to fill the gap between seller’s pric- ing expectations and buyer’s target values, resulting in longer periods of stagnancy with listings. Borrowing has become increasingly prob- lematic, with interest rates hovering near 15-year highs. The fed fund futures market has effectively priced in mul- tiple rate cuts in 2024, but the Federal Reserve has hesitated to to date as inflation data continues to be mixed. As always, the real estate market will continue to evolve and reinvent itself. Jason Crimmins, CCIM, SIOR, is the president and Broker of Record for The Blau & Berg Company, an independent, full-service commercial real estate bro- kerage firm providing ser - vices in the industrial, re- tail and office spaces. MAREJ The Blau & Berg Co. secures sale of ±1.42 acres on Tompkins, Rd., Newark, NJ NEWARK, NJ — The Blau & Berg Company has ar- ranged the sale of ±1.42 AC on Tompkins Rd. in Newark. Lau- ra Crimmins, SIOR , of The Blau & Berg Co. represented the buyer, Atlanta-based Axis Electrified Solutions. Jason Crimmins, CCIM, SIOR, Alessandro (Alex) Conte, SIOR, and Peter J. Murano, Jr., SIOR of The Blau & Berg Company represented the seller, 275 Pacific LLC. The site is earmarked to become NJ’s first high-end electric truck charging lot. Located near Newark Liberty International Airport and the NY and NJ port area, and with direct access to Rtes. 21, 9 and the NJ Tpke. MAREJ

redevelopment projects on the East Coast with more than 2 million square feet of residen- tial and commercial space, are going to become more the norm. Cannabis has become a time- ly contributor to the retail & in- dustrial markets. More than 50 dispensaries opened in 2023, bringing the total in state to 79 dispensaries in 18 counties. The Cannabis market brought in more than 800 million dol- lars in 2023 and is projected to easily surpass 1 billion in 2024, and this is just the beginning. In many small towns, the fight

industry, as the market capitulates to the expe- dited changes brought on by Covid and the pandemic: The indus- trial market remains sol-

Jason Crimmins

id, albeit a bit more tepid than the explosive period from 2021-2023. There remains

Elizabeth Metropolitan Logistics Center 103,912 - 299,999 Sq. Ft. Industrial Opportunity

830 Morris Turnpike, Suite 201, Short Hills, NJ 07078 973.379.6644 www.blauberg.com .

19.75 Acres TOTAL ACREAGE

196,087 Sq. Ft. BUILDING 1 103,912 Sq. Ft. BUILDING 2 53 Tailboards LOADING

174 Spaces AUTO PARKING 84 Spaces TRAILER PARKING

299,999 Sq. Ft. TOTAL BUILDING SIZE Q2 2024 ESTIMATED DELIVERY

40’ Clear CLEARANCE

M id A tlantic Real Estate Journal — January 2024 — 11A

www.marej.com

O wners , D evelopers & M anagers

M id A tlantic Real Estate Journal — January 2024 — 11A

www.marej.com

C Susskind orchestrates sale of Grand Gardens in Jersey City totaling $2.35 Million Hudson Atlantic's Zweibel & Favorito inks sale of of 61 unit affordable housing portfolio for $5.9M

ENTRAL & NORTH- ERN NJ — Hudson Atlantic announced the successful closing of three properties in the New Jersey counties of Somerset, Mercer, and Hudson. The first two properties, known as Hillside at Mont- gomery and Springside at Robbinsville, consisting of a diverse mix of 1, 2, and 3-bed - room units, was sold for an impressive $5.9 million at a 6.5% cap rate. The Hillside included 23 units in Skillman and was constructed in 2014 in one of New Jerseys top tier school districts making it an ex - tremely attractive address for tenants. The Springside, built in 2017 has 38 units and is in the highly desirable town of Robbinsville. Adam Zweibel , co-founder and managing partner listed and marketed the portfolio while Nick Favorito iden- tified the buyer. "This was a challenging sale as the properties still had 20 years

Grand Gardens in Jersey City

impressive 4.46% cap rate when lending rates are sig- nificantly higher provides testament to Hudson Atlan- tic's unparalleled ability to identify the right target buyer pool. Susskind expressed his enthusiasm for a successful deal. "I am thrilled to have closed my first deal only eight months into the industry and to have played a key role in

its successful sale. The sup- port and mentorship from Adam Zweibel and the entire Hudson Atlantic team were instrumental in achieving this outcome," said Susskind. Grand Gardens was built in 1950 and consists of 1- and 2-bedroom apartments that have $600+ rent upside and is within walking distance to a light rail station. MAREJ

Hillside at Montgomery and Springside at Robbinsville

remaining on their income restrictions. I positioned this investment as a ‘bond’ that would mature with a 4X-Pay- off when the restrictions burn off and it reverts to market rents," said Zweibel. In a separate transaction, Hudson Atlantic announced the sale of Grand Gardens,

a 16-unit apartment build- ing for $2.35 million. Grand Gardens is in the heart of Bergen-Lafayette section of Jersey City. The property was listed, marketed, and sold by Ben Susskind , one of Hudson Atlantic’s rising stars, with support from Zweibel. The property traded at an

Grosvenor completes new athletic facility at British International School of Washington in the Georgetown area

the art, dual-use facility func- tions as both a gymnasium and auditorium and will bring athletic functions on site that previously occurred at area rec centers or other schools. Once the full redevelopment of the site is complete, the school will also receive a new play area in the plaza between the two buildings, and approxi - mately 5,700 s/f of expansion space in the ground floor of the multifamily building. The proposed multifamily building at 3300 Whitehaven will include approximately 280 units upon completion, approximately 15% of which will be affordable. The use of mass timber, a leading-edge building technology that will offer a substantial reduction in the building’s embodied carbon footprint, is also being considered for the project’s construction. MAREJ

WASHINGTON, DC — Grosvenor announced the com- pletion of a new athletic facility at the British International School of Washington (BISW) in the Georgetown area of Washington DC, located ad- jacent to the company’s new redevelopment project at 3300 Whitehaven St. Grosvenor acquired the site in 2020 with two existing build - ings in place – a Georgetown University occupied office building at 3300 Whitehaven St. and the BISW building at 2001 Wisconsin Ave. Since then, Grosvenor has launched a redevelopment plan to replace the former George- town University office with a new 280 unit class A rental apartment while preserving and enhancing the school’s ex - isting facilities. As part of the school’s upgrades, Grosvenor began building a brand new

British International School of Washington gym

athletic facility in a portion of the existing below-grade park - ing garage, located between the

school building and the new planned multifamily property. Construction on the athletic

facility began in September 2022 and is now completed and ready for use. The new state of

12A — January 2024 — M id A tlantic Real Estate Journal

www.marej.com

think growth Changing rules and regulations within a highly competitive market creates greater challenges to achieving your vision for growth. Withum’s Real Estate Services Team provides opportunities and long-term strategies to help weather the highs and lows of challenging times. From due diligence to digital transformation, from cost segregation studies to lease analysis and review services, we can help commercial, industrial and residential real estate companies be in a position of strength. Visit withum.com/thinkgrowth to learn more.

M id A tlantic Real Estate Journal — Owners, Developers & Managers — January 2024 — 13A

www.marej.com

O wners , D evelopers & M anagers The new interior design group to focus on workplace, commercial, residential, and more Brooklyn-based design firm IMC Architecture launches interior design studio B ROOKLYN, NY — The Brooklyn-based multi-family, commer-

AIA, NCARB; and Domi - nick Casale, AIA, NCARB . Working mainly in the highly regulated urban environ- ments of New York City and the greater New York area, the founders believe compli- ance and creativity aren’t mutually exclusive. “We play by the regulatory rules and design beautiful buildings,” said Casale. The firm’s portfolio features in excess of seven million s/f of architectural design and zoning consulting projects, to- taling more than $750 million in construction value. MAREJ

cial and institutional architec- tural firm IMC Architecture has launched its new interior design studio. Director of De- sign Federigo Luzzi leads the new interior practice, with fo- cus on workplace, commercial, retail, healthcare, hospitality and residential work. “Our new interior design group will both serve its own clients and support IMC’s ar- chitectural projects. The stu- dio will take advantage of the increasing volume of interior work in the New York City, national and international markets,” shared IMC Princi- pal Eugene Mekhtiyev, AIA, LEED GA . “Our interior design team brings together a group of ac- complished designers with a wealth of experience and famil - iarity with international and multi-cultural aesthetics and practices. This expertise has already helped us win several new corporate, educational and residential projects,” added Luzzi. The new interior design stu- dio’s current projects include the 4,000 s/f office fit-out for Brooksville and boutique 1,000 s/f workplace for We Lend in Manhattan; 10,000 s/f work- place for Bawabeh Realty Hold- ings in Brooklyn as well as interior design work for several charter and private schools in Manhattan, the Bronx and Brooklyn. In the retail and hospitality markets, the studio designed the new Le Café Cof- fee at the One Dag office tower in Midtown Manhattan. Known for its quality ar- chitecture, contemporary aesthetic, technical acumen and zoning expertise, IMC Architecture has designed some of the most prominent recent projects in New York City and the greater New York Area. The firm is one of the pioneers of the modular design and construction technology in New York City and regional multi-family properties. In addition to design services, the firm also operates an af - filiated zoning, expediting and permitting consultancy CORE Consultants . Three principals established IMC in 2015, following ac- complished careers at leading regional and national firms: Eugene Mekhtiyev, AIA, LEED GA; Jonathan Imani,

Photo courtesy of IMC Architecture.

IMC Architecture has launched its new interior design studio. Three principals established IMC in 2015: Eugene Mekhtiyev, AIA, LEED GA; Jonathan Imani, AIA, NCARB; and Dominick Casale, AIA, NCARB. Director of Design Federigo Luzzi leads the new interior practice, with focus on workplace, commercial, retail, hospitality and residential work.

QUALITY COMMITMENT PERFORMANCE

Geotechnical Design & Analy

nvironmental Site Assessments and

www.earthengineering.com Corporate Headquarters: 610-277-0880 Lehigh Valley: 610-967-4540 Central PA: 717-697-5701 South Jersey: 856-768-1001

14A — January 2024 — Owners, Developers & Managers — M id A tlantic Real Estate Journal

www.marej.com

O wners , D evelopers & M anagers

The Affordable Housing Production Fund from NJHMFA contributes partial funding The Alpert Group breaks ground on West Orange senior housing community in Essex County, NJ

W EST ORANGE, NJ — Ceremonial shovels hit the dirt at the site of the West Orange Senior Housing Community, where local political dignitar- ies and other key stakehold- ers joined full-service real estate company The Alpert Group LLC for the project’s official groundbreaking on December 1. The 100% affordable, 65-unit community will make West Orange a model for the type of affordable housing that senior residents need to age in place. "We've been looking forward

to this groundbreaking, as it's critically important for West Orange's seniors who have a strong need for local, af- fordable housing,” said West Orange Mayor Susan McCart- ney. “We'll also be providing a helping hand to homeless seniors through dedicated per- manent housing and access to essential social services. This new building is the result of sig- nificant collaboration between many local and state organiza- tions that are improving the lives of seniors." Located at 46 Mount Pleas- ant Ave., the West Orange

Senior Housing project will include one-bedroom and two- bedroom units, on-site park- ing, modern amenities, and age-friendly features. Incorporating Permanent Homeless Housing Units The five units of age-restrict - ed, permanent supportive housing units for homeless persons will allow those resi- dents to access a comprehen- sive array of social services focused on helping them live independently in a safe and secure environment. Services provided to those residents will include service coordina- tion/case management, link- ages to healthcare and treat- ment programs, educational/ vocational training programs, employment and job readiness programs, financial empow- erment programs, life skills training, transportation, and wellness resources. The income-restricted com- munity is helping to satisfy West Orange’s affordable hous- ing obligation, and is partially funded by the NJHMFA Af- fordable Housing Production Fund, an appropriation from the NJ. Coronavirus State and Local Fiscal Recovery Fund. Joseph Alpert , president of The Alpert Group, said, "The West Orange Senior Housing Community building is ad- dressing a dire need in New Jersey for affordable senior housing, and we are proud to partner with financing entities that believe in this mission. When it opens in late summer 2024, the project will likely be transformative for many people in West Orange. This is the sort of development that uplifts everyone in the community." Financial partners include New Jersey Housing and Mortgage Finance Agency, Enterprise Community Partners, TD Bank, Essex County, and The Township of West Orange. Essex County executive Jo- seph N. DiVincenzo, Jr. , said, “I am pleased that Essex County is able to partner with the Twp. of West Orange and The Alpert Group to support this mixed-use development that will bring space for the community and affordable rental units to the township’s Main Street corridor. This unique combination of uses enhances ratables for West Or- ange while providing first-class public space.” MAREJ

The Alpert Group and local political and housing representatives attend the groundbreaking ceremony for the West Orange Senior Housing Community in West Orange, NJ.

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