Represents the largest apartment sale in New Jersey in 2018 HFF’s Cruz, O’Hearn, Oliver & Simonelli represent seller in $146Msale
ISSUE HIGHLIGHTS Volume 30, Issue 10 May 25 - June 7, 2018 SPO TLIGHTS Industrial & Distribution Centers
apartment buildings, each with one story of covered parking at ground level. A large portion of units have been renovated since 2014. Community ameni- ties include an updated fitness center, newly renovated court- yard with lounge and grill- ing areas, clubhouse, private storage lockers and a Zipcar pickup/drop off station. The HFF investment adviso- ry team representing the seller included senior managing di- rector Jose Cruz , managing director Kevin O’Hearn and senior directors Michael Oli- ver and Stephen Simonelli . “Capital continues to be at- tracted to multifamily assets in markets with high barriers to entry and significant future rental growth,” said Cruz. “The Hudson Waterfront market re- mains a target for REITs, pen- sion fund advisors and private buyers alike.” Fridays. It is part of the New Haven trade area, 235,000 s/f , and was purchased in partnership with an institu- tional real estate fund and Silver Peak Real Estate Partners . “As major open-air centers with proven anchor tenants in strong locations, these centers are perfectly aligned with our established criteria for acquisitions,” said Tom Wilder , a Wilder principal. “Our goal is to build on each centers’ success to enhance the shopper experience while continuing to add value for the ventures.” “With these acquisitions we are expanding our presence in Connecticut and are pleased to reestablish ourselves in Pennsylvania,” said Shelley Anderson , director of new business development. Our operating platform and long- standing tenant relationships allow us to stay competitive and creative in the retail investment arena. Qualities that are highly valued by our institutional partners.”
oboken, NJ — Holliday Fenoglio Fowler, L.P. (HFF)
announces the sale of The Rivington, a 240-unit, luxury apartment community in Hobo- ken. This transaction repre- sents the largest apartment sale in New Jersey in 2018. The HFF team marketed the property on behalf of insti- tutional investors advised by J.P. Morgan Asset Manage- ment . Equity Residential purchased the property free and clear of existing debt. The Rivington is situated at 1130 Grand St. in the heart of the dynamic northwest section of Hoboken, which offers com- muters access into Manhattan via the Hoboken PATH Station, 14th St. Ferry Terminal and the NJ Transit bus line. Ad- ditionally, the property has a WalkScore of 94 and is within blocks of multiple retail ameni-
Kevin O’Hearn Michael Oliver Stephen Simonelli
GP-FM Show Section C
ties along Washington St. as well as the 5.4-acre Northwest Park. Completed in 1999, The
Rivington features 240 two- bedroom, market-rate units housed within four six-story
Wilder gains acquisitionmomentumwith two newassets totaling over 800,000 s/f in PA&CT
MAREJ Events May 30, 2018 PA Multifamily Conference
Mechanicsburg, PA andHamden, CT — Wild- er , the national retail real
June 7, 2018 NJ Land Development Conference For speaking and sponsorship information, please contact: Lea at 781-740-2900 or firstname.lastname@example.org
estate leas- ing, manage- ment , and development firm, in part- nership with an institu- tional real estate fund, continues to
Silver Spring Square
add to its portfolio by acquir- ing two more market domi- nating centers; over 800,000 s/f of space. Silver Spring Square in Mechanicsburg, PA is home to the only Wegman’s in the Harrisburg trade area. The powerhouse center is shadow anchored by the third ranking Target in its 13-store district, and Kohl’s, which is ranked first in its 14-store district. At nearly 570,000 s/f the center is well-positioned in one of the fastest growing communities in Central Pennsylvania.
The CBRE teamof BradNa- thanson , executive vice presi- dent, and John Colussi , sales associate, negotiated on behalf of the seller, DDR Corp. , and identified the buyer. Silver Spring Square fol- lowed shortly after the ac- quisition of The Marketplace at Hamden, CT. The center features one of the highest volume Stop & Shop locations in the New England and New York markets, T.J. Maxx, Staples, Old Navy, along with popular specialty shops Petco, Pier One Imports, and TGI
Shopping Centers.............................................5-17A Business Card/Billboard Directory.......................19A Owners, Developers & Managers............... Section B Industrial & Distribution Centers................ Section C
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COLLABORATIVE CULTURE RELATIONSHIP FOCUSED DEFINED EXPERTISE
Applebee’s Lynchburg, VA $2,000,000
Walgreens Deep River, CT $5,230,000
Oxford Commons Tallahasee, FL $3,845,000
Wendy’s St. Joseph, MI $1,760,039
Pizza Hut Newport, TN $ $784,000
KFC Rossford, OH $2,600,000
CVS Hyannis, MA $13,950,000
AutoZone Zebulon, NC $1,545,000
CVS Coconut Creek, FL $5,125,000
Closed $4,000,000,000 in Recent Transactions
Transactions 1,000+ in 36 States
Ranked #1 Industry Leading Team
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M id A tlantic R eal E state J ournal Publisher, Conference Producer . .............Linda Christman AVP, Conference Producer ...........................Lea Christman Associate Publisher ......................................... Steve Kelley Associate Publisher ........................................... Kim Brunet Associate Publisher ..................................... Miriam Buttrick Senior Editor/Graphic Artist ..........................Karen Vachon Office Manager, Social Media and Public Relations Coordinator ..............Marisol Chase Contributing Columnists: ............................................. Lisa Cassidy, ecoImagine; Jon Leifer, Case Real Estate Capital, LLC; Chris Mavros, Case Real Estate Capital, LLC; 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. 30, Issue 10 Subscription rates: $99 - one year, $148 - 3 years, $4 - single copy 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.marejournal.com The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
M id A tlantic Real Estate Journal
Insights on Trends in Capital Markets
C ompe t i t i on among commercial real es- tate lenders shows no sign of abating as borrowers continue to turn to private lenders for an influx of turn- around capital, according to Chris Mavros and Jon Leifer of Case Real Estate Capital, LLC (Case). How will recent tax reforms and rising inter- est rates affect the market? And what asset classes are garnering the most interest in this stage of the cycle? Q. On the lending side, there remains a steady stream of available capital. What is your prediction on demand in 2018 and how will lenders react? Mavros: Demand from bor- rowers will remain steady in 2018, which will only serve to further increase competition among lenders as new loan capital sources enter the mar- ket. The average lender will likely feel pushed to stretch on rate, leverage and structure to win deals this year. Leifer: The influx of new players is particularly notable in the bridge lending space. Overall, it is an excellent time for borrowers to receive multiple quotes, but they must keep in mind that lenders with a strong history of execution provide the best opportunity for quality financing. Q. What asset classes are garnering themost interest in themetro NewYork area and Florida in this stage of the cycle? Leifer: Industrial and mul- tifamily have the strongest fundamentals in the metro New York area and Florida markets. At eight-plus years into the economic recovery, new household formation con- tinues to create opportunities for redevelopers in the mul- tifamily sector. At Case, we have a healthy appetite for funding the repositioning of both industrial and multifam- ily assets. Q. How is the unrelenting force of e-commerce affect- ing the retail sector? Leifer: There’s no question that e-commerce, particularly Amazon, is remaking the sec- tor, and retail properties con- tinue to be adapted for new
uses. Urgent care and food hall facilities are springing up like weeds in former storefronts. We’ll continue to see improve- ments in multitenant property performance as we “right size” retail supply. Q. What are your predic- tions on land lending this year? Mavros: Case is actively lending on land development deals, even where there re- mains a level of uncertainty. We are targeting acquisition loans on entitled land and de- velopment ready deals. Overall, with regard to loans for unentitled land, lenders will hesitate to underwrite them given the multitude of risks inherent in early- to mid- stage projects. Borrowers will be pressured to pay significant fees and interest rates if they do not have entitled land. Q. What shifts in invest- ing will result from rising interest rates? Mavros: These rate-in- crease trends undoubtedly affect cap rates and real es- tate values. By extension, if underwriting loan payoffs in future refinancing becomes difficult as asset values de- cline, the dollar amounts lend- ers are willing to extend will be affected as well. Investors, especially institutional ones, will likely focus on debt rather than equity to avoid taking last-dollar risks. Q. How will recent tax reforms under the current administration affect CRE finance? Mavros: The real impact of the tax bill will be seen next year - 2019 - and from the commercial real estate per- spective, the reforms are very favorable. Any perks, though, will be offset by increasing interest rates. Corporate tax cuts and pass- through deductions are a sig- nificant boon to partnerships,
LLCs and S corporations that will not be taxed at the entity level. On a personal tax level, the elimination of the state income and property tax de- ductions will clearly have a negative effect, particularly in New York and New Jersey. Q. How is the aging Baby Boomer generation creat- ing opportunities in the market? Leifer: We are seeing in- creased opportunities in the medical office and assisted liv- ing property sectors, although the market has five to seven more years before the peak retirement years of the Baby Boomer generation. Self-storage is garnering a lot of interest as well, and new supply in this sector is trend- ing up and down the southern coasts of Florida, where de- velopers are building housing of every stripe. Baby Boom- ers are trading out of larger homes, generating demand for storage. Questions are arising about overbuilding in that sec- tor, though. Q. What are the major concerns in this stage of the cycle? How is Case ad- dressing them? Leifer: My main concern is that sponsors and their lend- ers maintain discipline in their underwriting. This is not a time to ignore the importance of mitigating risk. While there are good deals out there for strong sponsors with solid operational capabilities, if a deal seems too good to be true, it probably is. On a separate note, pricing expectations on the limited number of nonper- forming loans out there seem to be getting more realistic. At Case, we have the dis- cretionary capital that allows us to deliver on our promises, which distinguishes us in the market. We remain interested in senior secured financings continued on page 14A
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M id A tlantic R eal E state J ournal
By Richard Gacek, Gacek Design Group Design is Transforming
experiences that are authentic and specific to your target au- dience will capture attention and will resonate. The latest research on lifestyle prefer- ences shows the importance of providing social spaces that are flexible, can be used for live- work, and also appeal to the lifestyle of Renters of Choice to build a sense of community. SMART TECHNOLOGY: In the housing industry, tech- nology is no longer just an appliance, it has become a major part of the design. Smart technology enriches the experi- ence and research tells us that
continued on page 18A PERSONALIZATION: As residents use common spaces more often to live, work, and play, they have transformed free or reliable WiFi ranks as the highest preferred feature. Other tech on the radar is as follows: smart thermostats, keyless front entry, high tech door locks, built-in USB charg- ing ports, in-unit motion-de- tection cameras, and motion sensor lighting. Advanced digital capabilities such as online leasing forms, as well as credit card processing are also on the rise.
acek Design Group is laser focused on the transformation we see
spaces, Renters by Choice even have designers looking at apartment layouts differently. With Boomers at a downsizing life stage, they need room to en- tertain, accommodate guests, work at home, and pursue their hobbies. Millennials like what’s new and cool, and will give up apartment space if it means access to hot neighborhoods and conveniences. Adaptable living is the new norm where the apartment’s “physical com- ponents” meet the needs of many different households. Imagine an apartment where flexible spaces are created by
opening and closing walls – Or using lightweight panels that can snap in and out of place to expand or minimize walls. How about an exterior window that is flexible enough to open and transform to a balcony? SOCIAL CONNECTIVITY: The digital age has connected us in so many amazing ways, although has provided less opportunities for in-person interaction. With information at overload capacity, it has become more and more difficult to engage and retain the atten- tion of your target audience. Because of this, spaces and
i n De s i gn , particularly as it relates to our clients in the hous- ing industry. The shifts in demographic trends have positively im-
pacted multifamily housing with Millennials continuing to play a prominent role in renting. And as Baby Boomers enter the rental market, it can be challenging to determine the right housing/amenities that resonate with the lifestyles of both target markets. How do you accomplish this? There are many white papers, research, and point of views on how to appeal to this group that we call Renters by Choice . They do have a number of characteris- tics in common. The one thing we know for sure is that this new target market has forced many developers to think out- side the box, and to concentrate on making a connection with their audience in differing ways. Design is transforming and here are trends that we believe are worth exploring: WELLNESS: Consumers today are focused on health and wellbeing. This growing trend has impacted, for example, the amount of square footage allotted to fitness spaces. We see transformation from the typical treadmill/weight lifting center to a wellness experience that highlights the mind, body, and spirit. However, wellness is no longer a place just for the fitness zone. Build environ- ments are now valued by how they support overall health. The WELL Building Stan- dard is gaining popularity by measuring the performance of building features that impact health and wellbeing through air, water, nourishment, light, fitness, comfort, and mind. It is third-party certified by the Green Business Certification Incorporation (GBCI), which administers the LEED cer- tification programs. Healthy homes improve sleep, support healthy eating, improve air quality, and optimize our cog- nitive and emotional health. With improved studies, more data and better adoption, WELL certification will sup- port design transformation. ADAPTABLE SPACES : When it comes to adaptable
4A — May 25 - June 7, 2018 — M id A tlantic
Real Estate Journal
M id A tlantic R eal E state J ournal
a c k e n s a c k / Fairview/Passa- ic, NJ — In Bergen 145 units located in Hackensack, Fairview and Passaic Gebroe-Hammer arranges 3 multifamily sales totaling $22.6M in Bergen/Passaic, NJ apartment submarkets H elevators and feature a mix of layouts ranging from one- to four-bedrooms.
for even greater residential migration to a small city – out- side of New York City – where the residential housing stock is dominated by multi-family and the apartment-rental life- style is king.” Also in Bergen County, Pomerantz represented the seller and procured the buyer of 47 Bergen Blvd., Fairview. Built in 1989, the 12-unit property garnered a $204,167 per-unit price in the sale. The all-brick façade three-story building is close to a grocery store, diner, schools and sev- eral bus stops. “This area of the municipality stands out for its high concentration of bus lines, which about 20% of the population ride to get to work,” added Pomerantz. Rounding out Gebroe-Ham- mer’s recent Bergen/Passaic sales is the trade of 23-25-27 Jackson St., Passaic, also ar- ranged by Pomerantz. Sold for $2.15 million, the 18-unit gar- den-apartment community fea- tures a mix of one one-bedroom, 13 two-bedroom and four three- bedroom layouts. The building was constructed in 2002 and is close to the major thoroughfare of Rte. 21. New York City is only 12 miles away. Procida Funding provides $5.5million acquisition loan to revitalize RcaVictor HQ in Camden, NJ CAMDEN, NJ — Procida Funding announced a $5.5 million acquisition loan by its 100 Mile Fund to Millennial Place, LLC for the acquisition, marketing, light rehabilitation and lease-up of Camden’s his- toric RCAVictor World Head- quarters at 201 N. Front St. The office building was con- structed along Camden’s Dela- ware River waterfront in 1916. “The property is appealing for its historic value as head- quarters for the company that revolutionized the radio and television industry, as well as its location in Camden, a city that is on the cusp of a major renaissance,” said William ‘Billy’ Procida , president and CEO of Procida Funding, LLC who is also an accomplished singer and guitarist. “We’re excited to support a project that will transform the former epicenter of the music indus- try into its next generational use.”
Debbie Pomerantz orches- trated two sales involving a low-rise building in Fairview as well as a garden community in Passaic. In the Hackensack trade, Ge- broe-Hammer represented the seller and procured the buyer of 115 total units at Regency Apartments, 50 Anderson St.; 46 Anderson St.; and Park Lane Apartments, 430 Union Ave. Each is situated adjacent to Anderson Park and within steps of NJ Transit’s Anderson Street/Union Avenue bus stop on the corner. Collectively, the mid-rise buildings have
“As the recent recipient of a New Jersey Smart Growth Award, Hackensack is cur- rently in the midst of a renais- sance targeting the downtown district that will bolster its population density, which is already extremely high in the Bergen County seat,” said Nicolaou. “In addition to extensive residential rede- velopment, public initiatives such as the Atlantic Street Park and transit-village des- ignation are paving the way
and Passaic counties, where effective rents are projected to advance modestly through 2019, Gebroe-Hammer As- sociates has arranged three separate transactions totaling 145 units sold for a combined $22.6 million. The brokerage team of executive managing director David Oropeza and senior vice president Nicho- las Nicolaou , along with executive vice president Greg Pine , arranged the sale of a three-property package in
430 Union Ave.
Hackensack for $18 million while senior vice president
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S hopping C enters
Real Estate Journal — Shopping Centers — May 25 - June 7, 2018 — 5A
M id A tlantic
Baltimore County shopping center planned for redevelopment sells for $5.4M Marcus & Millichap arranges the sales of $10M grocery center in major Maryland market
ilver Springs, MD — Marcus &Millichap , a commercial real estate investment services firm with offices throughout the United States and Canada announced the sale of Safeway (Albert- sons Guaranty), a 44,600 s/f supermarket located in Silver Spring. The asset sold for $10.425 million. Preet Sabharwal and Mi- chael Scali of Marcus & Mil- lichap’s Manhattan office had the listing to market the prop- erty on behalf of the seller. Dean Zang and Joshua Ein of the firm’s Washington office procured the buyer. “The cap rate on this deal signifies that there is still a strong demand for neces- sity based retailers despite the negative portrayal painted by the national media” said Scali. “This transaction is evidence that investors are still bullish on necessity based retailers with substantial credit.” S 40,000 s/f retail building at Hampden Commons, 5800 Carlisle Pike, Hampden Twp., Cumberland County, PA. Ollie’s Bargain Outlet, Inc. leased the space from Voor- hees Environmental Corp. Brad Rohrbaugh and Chad Stine of Bennett Williams Commercial represented the landlord in the transaction. 11,000 s/f retail building at 777 Baltimore St., Penn Twp., York County. Michael Humbert dba Ideal Auto Body leased the space from 1221 As- soc., Inc. Karen Neiderer of Bennett Williams Commercial represented the tenant and Denny Neiman of Bennett Williams Commercial rep- resented the landlord in the transaction. 1.03 AC land at Blakeslee Blvd. East, Lehighton Bor- ough, Carbon County, PA. Mavis Tire Supply, LLC leased York County, PA — Bennett Williams Commer- cial completed the following retail transactions in PA:
traded throughout the country. Bryn Merrey, senior vice president of Marcus & Mil- lichap acted as the broker of record. In Timonium Marcus & Millichap announced the sale of Padonia Park, a 24,239 s/f mixed-use property located in the Baltimore suburb of Timonium. After a successful marketing process that gener- ated five offers and interest from investors, developers and users, the asset sold for $5.4 million which equates to $222 psf and over $2.3 million per acre. Christopher Burnham , senior associate in Marcus & Millichap’s Baltimore office and Zang had the listing to market the property on behalf of the private seller, and also secured and represented the unnamed buyer. Padonia Park is comprised of a 12,890 s/f neighborhood retail strip center and a two- space fromCarlisle Commerce Center Associates. Blake Gross and Jeremiah Ham- ilton of Bennett Williams Commercial represented the landlord in the transaction. 12,380 s/f retail building at 21 N. College St., Palmyra Borough, Lebanon County. Firehouse Holdings, LLC pur- chased the property from Citizens Fire Company No 1. Chris Seitz of Bennett Wil- liams Commercial represented both the buyer and the seller in the transaction. 18,000 s/f retail building at 1305 Manheim Pike, Lan- caster City, Lancaster County. AUA Lancaster I, LLC pur- chased the property from Ker- ry Schanz and Eliese Schanz. Blake Gross of Bennett Wil- liams Commercial represented the seller in the transaction. 5.87 AC land Old Harrisburg Pike, Rapho Twp., Lancaster County, PA. Flyway Prop- erties, LLC purchased the property from PA-RAPHO- OLDHBGPIKE, LP. Jeffrey
story 11,459 s/f office building. “The property has a tremen- dous location and benefits from a large 2.28-acre parcel,” said Zang. The property is strategi- cally located on a cross street one-half mile from Interstate 83, the area’s north-south artery and York Rd., a robust retail corridor. This is the second shop- ping center transaction the Marcus & Millichap team has completed along the York Rd. corridor and the fifth in Mary- land year to date. “This is a low velocity market and when properties become available, there is a feeding frenzy,” said Burnham. “This asset had a lot of potential but many buyers pay for what is in place and do not want to pay “market value” for a property’s potential to- day. Our marketing process converted our perception of the property’s potential into top of the market pricing for our client,” concludes Burnham. Herr and Jeff Herr of Ben- nett Williams Commercial rep- resented both the buyer and the seller in the transaction. 1,491 s/f office space at 1600 Sixth Ave., Spring Garden Twp. Sudeep Pramanik MD, PC purchased the property from PDL Enterprises, LLC. Cami Miller of Bennett Wil- liams Commercial represented the seller in the transaction. 3,225 s/f retail building at 4395 W. Market St., West Manchester Twp. Parliament York, LLC purchased the property from David Zech and Patricia Zech . Behler and Denny Neiman of Ben- nett Williams Commercial represented the seller in the transaction. 3,784 s/f retail building at 705 Loucks Rd., York City, York County, PA. SILK Man- agement, LLP purchased the property from Frontier York, LP. Rohrbaugh, Stine, and Joe Spagnola of Bennett Wil- liams Commercial represented the buyer in the transaction.
15411 New Hampshire Avenue
The subject property is situ- ated at the signalized, hard corner intersection of New Hampshire Avenue and Briggs Chaney Rd. This intersection sees more than 21,000 vehicles
per day and provides direct ac- cess to the Nation’s capital city. Safeway located at 15411 New Hampshire Avenue is part of a larger portfolio of Single- Tenant retailers that are being
40,000 s/f Rohrbaugh & Stine of Bennett Williams Commercial represent landlord in 40,000 s/f transaction in Hampden Twp., PA
the property from Debra Kay and Joseph Bennett. Adam Hagerman , Rohrbaugh, and Stine of Bennett Williams Commercial represented the tenant in the transaction. 2,436 s/f retail space at Rich- mond Square, 605 Richmond Dr., Manheim Twp. Rachel’s Café & Creperie, LLC leased the space from Wetherburn Town Center, LP. Abe Khan , Rohrbaugh, and Stine of Ben- nett Williams Commercial represented the landlord in
the transaction. 1,160 s/f retail building at 2990 W. Market St., West Manchester Twp. Lakala T. Green dba Affordable Whipz and Hoopties leased the space fromWalter A. Williams. Bob Behler of Bennett Williams Commercial represented the landlord in the transaction. 1,655 s/f retail space at Carlisle Commerce Park, 2159 White St., West Manchester Twp. James Q. Pham and Uyen Bao Tran leased the
6A — May 25 - June 7, 2018 — M id A tlantic
Real Estate Journal
S hopping C enters
By Robert Cohen, Earth Treks Planet Granite The benefits of blending tenants from a variety of industries
R E T A I L
RETAIL BROKERAGE. REDEFINED .
n today’s development market, a focus on col- laboration and community
This is perfectly exemplified in Baltimore’s Union Collec- tive, where a variety of ten- ants are taking over a space in hopes of providing a one-stop locale for people to shop, eat, and recreate. The space, for- merly a Sears Roebuck ware- house, is set to open in May and is expected to attract new local interest in the variety of tenants, which include Well Crafted Pizza, Union Craft Brewing, The Charmery Ice Cream, Vent Coffee Roasters, Earth Treks Climbing and Fit- ness, and Huckle’s Hot Sauce. These opportunities benefit not only the tenants, who re- ceive increased business due
to a variety of cross-traffic, but they also benefit the com- munity as a whole. Along with providing diverse op- tions – which creates a more efficient and exciting shop- ping trip - they also provide a unique experience which goes far beyond that of an average shopping center. A perfect example of a dis- tinct and impactful tenant in the Union Collective space is Earth Treks Climbing and Fit- ness, who is opening a boulder- ing gym in the location. Climb- ing gyms, like Earth Treks, are powerful tenants for these locales - they not only attract a unique demographic, but they also bring them in con- sistently. While a family may go out to dinner once or twice a week, climbers frequent gyms three times per week on aver- age. This foot traffic not only boosts the gym’s performance, but also that of other retailers who benefit when a climber stops in for a coffee or a meal after a workout. Earth Treks, who recently merged with Planet Granite Climbing, Yoga and Fitness, is a prime illustration of the opportunities that lie within the climbing industry, which has been steadily growing in recent years. Nearly four new major gyms opened every month in 2017, and since 2010 the growth rate hasn’t dipped below 6%. Additionally, the merger of Earth Treks and Planet Granite was backed by private equity firm, Tengram Capital Partners, which set a precedent for the rapidly- expanding industry. Invest- ment firms are now seeing the breadth of opportunity that exists in indoor climbing – as new gyms develop nationwide, climbing retail also continues to flourish, growing at 20% per year – with Earth Treks rank- ing as the country’s top indoor climbing retailer. Climbing gyms are perfect tenants for these collaborative spaces, as they meld exercise, climbing, yoga and general fitness in locations that bring people together. Add bars, coffee shops, restaurants and retail and you have a meeting place for local communities that invites people back time and time again. By creating these collaborative spaces, we’re creating newways for re- tailers to flourish while provid- ing places for the community to continued on page 8A
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is key. More modern re- tail centers are incorpo- rating ten- a n t s f r om a variety of industries, and they are recognizing
the benefits that these oppor- tunities offer. These spaces boost tenant success by draw- ing a diverse crowd - attract- ing customers who may have otherwise not have patronized the businesses.
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Real Estate Journal — May 25 - June 7, 2018 — 7A
M id A tlantic
M id A tlantic R eal E state J ournal
500,000+ s/f hybrid power and lifestyle center developed by Allied Properties MSC Retail completes 38,000 s/f of lease transactions at the Christiana Fashion Center
to be announced shortly. The site enjoys tremendous regional access off of I-95 and DE Rt. 1 and is positioned directly across from the Nord- strom/Target anchored Chris- tiana Mall. The center is a popular shopping destination given its accessibility, tax- free shopping, and strong co- tenancy. MSC Retail handles addi- tional centers in Allied Prop- erties portfolio, including: Merchant Square, Berkshire Mall, Concord Mall, Christiana Town Center, and Brandywine Square.
ewark, DE — MSC Retai l announced lease transactions be-
tween eight tenants and Allied Properties at the Christiana Fashion Center, Fashion Cen- ter Blvd., Newark. MSC Retail represented Wilmington-based property management and development company, Allied Properties, during the lease transactions. Over the past year, MSC Retail completed 38,000 s/f of lease transactions with eight tenants at the Christiana Fash- ion Center, including: • Jersey Mike's Subs (1,500 s/f ): New Jersey-based sand- wich chain, now open • The Fortunoff Backyard Store (9,000 s/f ): New York- based outdoor furniture re- tailer, now open • MidiCi The Neapolitan Pizza Company (3,000 s/f ): Ital- ian wood-fired pizza restaurant, opening in May • Mattress Warehouse (5,500 s/f ): Locally owned and operated mattress retailer, opening in May • OrangeTheory Fitness (3,000 s/f ): Boca Raton-based HIIT group workout chain, opening in the summer • David's Bridal (10,000 s/f ): America’s largest bridal-store chain, opening in the fall • honeygrow (2,500 s/f ): Philadelphia-based stir fry and salad fast casual restaurant chain, opening in the fall • Turning Point (3,500 s/f ): Daytime breakfast, brunch, and lunch restaurant, opening in the fall The Christiana Fashion Cen- ter is a 500,000+ s/f hybrid power and lifestyle center de- veloped by Allied Properties in three phases. The center contains an appealing retail mix including a collection of large format specialty retail- ers, restaurants, entertain- ment, and lifestyle tenants. MSC Retail represented Zoe’s Kitchen, Qdoba, and Shake Shack during the Phase I leas- ing, which also included The Container Store, REI, Nord- strom Rack, Saks OFF 5th, DSW Shoes, Jared, Zoup!, and ULTA. During Phase II, MSC Retail leased the eight tenants listed above, joining Marshall’s & HomeGoods, Ted’s Montana Grill, and super regional enter- tainment concept, Main Event Entertainment, also in the Phase II lineup. MSC Retail is actively working on 11,000 s/f worth of deals, with additional big box and small shop tenants
Christiana Fashion Center
The difference is clear. Our transaction history attests to our market knowledge and an uncompromising commitment to your success.
If you have questions regarding investment advisory, financing, distressed debt/REO, loan sales, equity recapitalization, restructuring services, or advisory services please contact an HFF representative.
Jose Cruz Senior Managing Director (973) 549-2011 firstname.lastname@example.org
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Jim Cadranell Senior Managing Director (973) 549-2007 firstname.lastname@example.org Steve Simonelli Senior Director (973) 549-2035 email@example.com
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Greg Nalbandian Senior Managing Director (973) 549-2021 email@example.com
Michael Klein Managing Director (973) 549-2005 firstname.lastname@example.org
Kevin O’Hearn Managing Director (973) 549-2018 email@example.com
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Jordan Avanzato Director (973) 549-2012 email@example.com
Marc Duval Director (973) 549-2015 firstname.lastname@example.org
Matthew Pizzolato Director (973) 549-2024 email@example.com
200 Campus Drive, Suite 410, Florham Park, NJ 07932 • (973) 549-2000
© 2018 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.
DEBT PLACEMENT | INVESTMENT ADVISORY | EQUITY PLACEMENT | FUNDS MARKETING | M+A & CORPORATE ADVISORY | LOAN SALES | LOAN SERVICING
8A — May 25 - June 7, 2018 — Shopping Centers — M id A tlantic
Real Estate Journal
S hopping C enters
icklerville, NJ — Richard L. Soloff of Soloff Realty & De- MSC Retail represent buyer in $4.5 million NJ sale Soloff Realty & Development announces sale of 19 AC. to Aldi S
For acquisition of renovated Neptune plaza Progress Capital’s Domenico secures $2.775M mortgage
lit intersection in the growing Sicklerville Trade Area. The other three corners at the intersection are tenanted by a Target/Lowes anchored center, ShopRite Market anchored center and an Acme Market anchored center. MSC Retail represented ALDI, Inc. in the transaction. In Philadelphia, PA&PIZZA recently signed a 10-year lease valued at over $1.5 million in the densely populated Uni- versity City area. This space is strategically located on the ground floor of The Radian Student Housing Apartment
Building at 3925 Walnut St. and is in easy walking distance to the University of Pennsyl- vania’s Campus. &Pizza will join CVS Pharmacy, Sweet Green, Jimmy John’s, City Tap House, Bobby’s Burger Palace and Chipotle Mexican Grill. Richard Soloff of SRD repre- sented the tenant in this leas- ing transaction, and Jackie Balin of CBRE represented the landlord, The Scion Group, LLC of Chicago, IL. The re- start is currently under con- struction, opening late Sum- mer 2018.
velopment, Inc. (SRD) h a s c o n - f i rmed the p u r c h a s e of a 19 acre commercially zoned prop- erty by ALDI, Inc. at the in-
36 State Rte. 35 in Neptune
NEPTUNE, NJ — Brad Domenico , partner at Prog- ress Capital , secured a $2.775 million non-recourse perma- nent mortgage for the acqui- sition of the retail strip plaza located at 36 State Rte. 35 in Neptune. The subject property is a newly renovated 18,150 s/f retail shopping plaza at the
former Wonderbread / Hostess Regional Bakery and Outlet. The plaza was 100% occupied
and anchored by an 8,900 s / f Fami l y Dollar at the time of acqui- sition. Domenico negotiated a 30 year term with 30 year
tersection of Berlin, Cross Keys Rd. and Chews Landing Rd. in Sicklerville. The trans- action valued at $4.5 million, is situated at a prime traffic-
amortization and an initial 5 year fixed rate period at 4.25%. The borrower will adhere to a declining pre-pay schedule. This loan represents 65% of the borrower’s acquisition cost. NAIMertz inks land sale for Lukoil Bucks County, PA — NAI Mertz announced the recent land sale of 305 East
Poten al Outdoor SalesArea
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come together. Amidst chang- ing real estate markets, a focus on collaboration and commu- nity is vital – and Union Col- lective and Earth Treks are at the forefront of this shift. Robert Cohen is CEO of Earth Treks Planet Granite. continued from page 6A The benefits of blending tenants . . . corridor for Republic Bank,” stated Charokopos. “We are pleased to have represented our client in this transaction and to also bring a quality tenant to this popular area of Bucks County,” added Gordon.
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Real Estate Journal — Retail Architecture • Construction • Engineering — May 25 - June 7, 2018 — 9A
M id A tlantic
R etail E ngineering
Advantage Engineers sponsors Connect (X)
A registered professional chemical engineer Precis Engineering hires Kristina Pumphrey, PE
front of industry trends, and this is a fantastic opportunity to highlight our innovative services to leaders across the country.” Advantage Engineers is dedicated to being at the fore- front of industry trends, which is why McGrath was a speaker in a breakout session on The Role of Public Safety Broad- band Networks in the Smart City. FirstNet is working to build a national data commu- nications network that would put “smart phone” technology in the hands of police, fire, and other public safety agencies. McGrath shared his thoughts on how cities can leverage FirstNet and public safety networks for new services and applications. Advantage Engineers man- ages all aspects of infrastruc- ture deployment processes including site acquisition, ar- chitecture and engineering, and construction management. Advantage Engineers’ par- ticipation in the event dem- onstrates their advocacy of The Wireless Infrastructure Association as they continue to support the overall industry.
COLUMBIA, MD — Ad- vantage Engineers a provid- er of telecommunications in- frastructure deployment announc ed they spon- s o r e d Th e Wireless In- frastructure Association’s Connectivity Expo , a l so known as Connect (X), in Charlotte, NC. The conference and trade show garnered industry lead- ers and professionals for three action-packed days of learning and networking. Attendees ex- perienced cutting-edge discus- sions, workshops, and keynote speeches from leaders across multiple industries. “Connectivity is the essence of The Wireless Infrastructure Association and Connect (X) is the hub of education for the wireless community,” said Advantage Engineers chief executive officer John Mc- Grath . “The wireless ecosys- tem is rapidly evolving which is why Advantage Engineers is focused on being at the fore- John McGrath
ficiency, quality, and safety. As an engineering leader in the pharmaceutical and bio- technology industry, Precis Engineering relies on process engineering to help clients improve product quality and bring drugs to market safely and efficiently. Pumphrey is a registered professional chemical engineer with nearly two decades of industry experience in process engineering for life scienc- es, pharmaceutical, and bio- technology clients. Her broad knowledge base spanning in- dustry technologies includes material handling, potent com- pounds, and hazard analysis. Among other roles, she has led process engineering for a greenfield cell culture facility, managed and served as in-field technical liaison for construc- tion of a vaccine manufacturing facility, and managed on-site process engineering operations for a bulk API manufacturing facility. A certified Lean Six Sigma Black Belt, Pumphrey uses her lean manufacturing expertise to help clients plan
for the future by improving operational efficiency. “I am excited about the op- portunity to expand Precis’ existing process engineering capabilities,” said Pumphrey. “I look forward to helping our clients identify the right pro- cess and equipment solutions to get the most out of their investments and advance on the best path.” Pumphrey extends her phar- ma industry leadership to the professional community as a member of the International Society for Pharmaceutical En- gineering (ISPE) and executive vice president of the Delaware Valley Chapter. Pumphrey has spoken and published exten- sively; recent presentations include Designing for Op Ex in OSDManufacturing Facilities presented at INTERPHEX; Factoring in the Impact of Operations During Facility De- sign and Equipment Selection presented at ISPE Carolinas- South Atlantic Chapter; and Improving Packaging Line Efficiency presented at Pack Expo East.
mbler, PA | Cary, NC — Precis Engi- neering, Inc. , anMEP
engineering f i rm head - quartered in Ambler has h i r e d v e t - eran process engineer and o p e r a t i o n s excellence ex- ecutive Kris-
tina Pumphrey, PE , to man- age and grow the firm’s newly created process engineering group. Pumphrey joined the leadership team in April. “Kristina is an accomplished change-agent and a strategic leader,” said Precis principal Vincent O’Brien, PE . “She has a keen eye for identifying improvement opportunities. We are confident that her pro- cess engineering expertise will immediately support efficiency and cost-effectiveness for our clients.” Process engineers are re- sponsible for designing, im- plementing, and optimizing industrial processes for ef-
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10A — May 25 - June 7, 2018 — Retail Architecture • Construction • Engineering — M id A tlantic
Real Estate Journal
R etail C onstruction
Paramount Assets welcomes Blink Fitness to Newark, NJ
Project team includes: Gilbane, HOK and Shelton Mindel Ceruzzi &Kuafubegins build on 230,000 s/f mixed-use dev.
The foundation system re- quired coordination with the MTA through the numerous logistical phases. The construc- tion team, led by Gilbane , per- formed abatement, demolition and excavation activities with minimal street and sidewalk space for material, equipment and loading out. The team overcame this challenge and accelerated the demolition and excavation phase. The building’s superstructure is steel reinforced concrete. “We are proud of the work completed to date with Gilbane and are thrilled to be bringing an elegant mixed-use develop- ment to the Upper East Side,” said Ceruzzi president Art Hooper . “The team has worked tirelessly to progress the con- struction timeline and bring this complex project one step closer to reality.” “Our commitment is to our clients first, and as such, we’re proud to be managing this complex project for such a high- quality owner and design team,” said Gilbane project executive Melissa Steeves .
anhattan, NY — According to Ceruzzi Holdings LLC , con-
struction is underway at 147- 151 East 86th St., its 18-story, 210-ft. mixed-use development in partnership with Kuafu Properties . Construction fi- nancing has been provided by TCI Fund Management Ltd. and arranged by Holliday Fenoglio Fowler, L.P. (HFF) . The project, which will offer 61 condominium homes, totals 230,000 s/f – 25,000 of which will be dedicated to retail space on the ground, second and lower level of the building. Sales are expected to commence in the coming months and the major- ity of the retail space has al- ready been leased to Old Navy, who signed a 15-year term for 18,500 s/f on the ground and second floors. The construction process be- gan with the demolition of the 147-151 East 86th St. proper- ties, and an excavation program which included line drilling, rock excavation and adjacent property foundation reinforce- ment and underpinning. One
Shown from left: Richard Dunn, senior vice president, Paramount As- sets; Solomon Levy, chairman, Paramount Assets; Newark Mayor Ras Baraka; and Maurice Levy, chief operating officer, Paramount Assets.
and later converted for medi- cal use, Ironbound Plaza sits on the corner of Market St., adjacent to Newark Penn Station. Its new retail tenants will benefit from that facility’s 30,000-person average week- day passenger count. At the same time, Blink Fitness and 7-Eleven and are positioned to serve the city’s growing Ironbound district residential population, as well as CBD commercial occupants. Paramount Assets pre- served many original features in the renovation and redesign of Ironbound Plaza, including the building’s architecturally distinct facade. The firm’s in- house construction teamhead- ed the Blink Fitness fit-out.
NEWARK, NJ — A for- mal ribbon-cutting for Blink Fitness at Ironbound Plaza in Newark marked the first tenant opening at this his- torically significant and newly redeveloped property. Para- mount Assets purchased the triangular-shaped, limestone- clad building at 2 Ferry St. vacant in early 2017; it has been renovated and fully leased, with interior fit-out work underway for its second tenant, 7-Eleven. Members of the Paramount Assets team joined local resi- dents, dignitaries and Blink Fitness leadership at the cer- emony on April 27. Initially built as a bank building in Newark’s heyday
of the first major steps in this process was to build the new temporary MTA sidewalk en- trance in front of 147 East 86th St., which included demolition of the existing structure in the basement of the old buildings and construction of the new staircase entrance from station to street level. Once completed, there will also be a new ADA elevator from the sidewalk to the station below. Shownfrom left: Ceruzzi/Kuafu/ Gilbane team: Melissa Steeves, Robert Skolnick, Chris Sameth, AndrewAlt, Ken Cartelli, Rob Van Akin, Steven Ruggiero, Mathew Healy, and Bryan Cappelli
We Build it Better
370,620 SF Facility
PRECONSTRUCTION • CONSTRUCTION • RENOVATION DEVELOPMENT • MANAGEMENT
Chris Donnelly Vice President of Business Development 973.672.1800 x142 email@example.com
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First multilevel ecommerce distribution center on east coast A joint venture between DH Property Holdings and Goldman Sachs Asset Management Private Real Estate has retained Hollister as Design Builder to lead the design, planning and construction of the first multi-level e-commerce distribution center on the East Coast.
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