R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news
ISSUE HIGHLIGHTS Volume 24 Issue 22 Nov. 23 - Dec. 6, 2012 GeoGenix installs solar PV system for Trans World Marketing
To occupy 77,000 s/f at the Mellon Independence Center Ruder of Archer & Greiner helps PPA quickly seal $46M lease deal
P
LLC , identified the Mellon build- ing space as a potential alterna- tive. Ruder served as the PPA’s chief drafter and negotiator for the transaction. He worked in close consultation with PPAman- agement, in particular Deputy Executive Director Richard D. Dickson Jr. “It was a result of Jay’s efforts that we were able to negotiate a lease in less than a week,” Dickson said. “He knew the issues important to us, commu- nicated quickly and effectively with the landlord’s counsel, and provided reasonable solutions to unresolved issues.” Ruder concentrates his practice on real estate law, representing global, regional and local businesses and institutions in transactions, tax assessment, land use and condemnation cases. ■ Photo provided by Brickstone Realty
HILADELPHIA, PA — The Philadelphia Park- ingAuthority (PPA) has
inked a $46 million deal to lease space for a Center City headquarters, a 2 5 - y e a r a g r e e m e n t with 30 years of renewal op- tions that was
Jay S. Ruder
negotiated and signed in less than a week under the guidance of the PPA’s attorney, Jay S. Ruder of Archer & Greiner P.C. Under the lease, the PPA will occupy 77,000 s/f on the fourth and fifth floors and part of the sub-basement of the Mellon Inde- pendence Center at 701 Market Street, the former Lit Brothers building that now houses BNY Mellon as its main tenant. Once LYNCHBURG, VA — SSH Real Estate has expanded its footprint in the past quarter, ar- ranging four investment trans- actions for properties stretching fromLynchburg, VA; to Erie and Harrisburg, PA; to the resort town of Snowshoe, WV. While SSH cannot release individual sale prices, the cumu- lative value of the four transac- tions exceeds $23 million. In the first transaction, SSH represented an affiliate of BPG Properties, Ltd in the sale of a 172,759 s/f, net leased indus-
13A
Mellon Independence Center
Professional Services Section B Shopping Centers featuring NY ICSC Deal Making
the new space is renovated for the PPA, scheduled for comple- tion in the early fall of 2013, the Authority will relocate its offices from 3101 Market Street and consolidate office operations at
701 Market. The lease arrangement ensued after negotiations on a different location failed to yield an agree- ment, and the PPA’s broker, Tactix Real Estate Advisors
SSH Real Estate expands footprint with 4 investment transactions valued at over $23M
Mid Atlantic R EAL E STATE J OURNAL P ROFESSIONAL S ERVICES FEATURING T HE R OAD TO R ECOVERY
MidAtlantic RealEstateJournal—ProfessionalServices—November23-December6,2012—SectionC
www.marejournal.com
DawnBernstel IBS
ArmandChristopher Jr. USAArchitects
LawrenceM.DiVietro Jr., PLS,PP,AICP LandDimensionsEngineering
AndrewGoldberg,CR,WLS RestoreCore
JeffreyHall FoxRothschild LLP
KimberlyHicks EWMA
ChrisHillmann Hillmann
DavidHirschman DavidHirschman RealtyCompany, Inc.
Leo Leyva ColeSchotz
BruceA. Johnson, CEM,BedfordStrategies andSolutions
EdHutchinson HutchinsonMechanical Services
DavidN. Johnson TheAztecCorporation
KurtKalafsky TheAztecCorporation andAztecArchitects
Charles Logan TheAztecCorporation
NicholasF.Talvacchia Cooper Levenson, Attorneys at Law
KarlW.Stefan EdificeRx
JeanneAnn McManus,Esq., Weiner Lesniak LLP
KatherineE.Wilde EdificeRx
Section C
Directory
Sawmill Village
Auction Directory ......................... 4-5A Owners, Developers & Managers 7-24A Green Buildings ........................ 13-19A People on the Move ...................... 26A Calendar of Events......................... 28A Shopping Centers .................. Section B Professional Services ............. Section C
trial property near Lynchburg, VA. The property was sold to Stag Industrial of Boston and featured a long term net lease to Hunter Defense Technolo- gies. Dan Mayock and Adam Gillespie quarterbacked the marketing for SSH and were assisted locally by John Les- inski and Joshua Gurland of Leland Group Commercial Real Estate. In the second transaction Doug Newbert , a partner in SSH’s Suburban Division, rep- resented a 1031 exchange inves-
tor in the purchase of two net- leased buildings totaling 77,626 s/f. The properties consisted of a Fedex Ground warehouse in Erie, PA and a CVS located in Harrisburg, PA. In Snowshoe,WV, SSH Real Estate handled the court-ap- pointed bankruptcy liquidation of the mortgage note backed by 88 partially-improved home building sites at Sawmill Vil- lage. The sites feature ski- in/ski-out access to Snowshoe Mountain’s 60 trails. Completed luxury homes in Sawmill Village
had sold for as much as $3.2 million within the private, gated development. The appraised value of the remaining lots had beenmore than $27 million prior to the recession. Adam Gillespie, senior vice president of the Investment Services team at SSH, handled the auction and liquidation on behalf of the bankruptcy court. Martha Giddings of ReMax Old Spruce Properties in Slatyfork, WV provided local ex- pertise to assist SSHReal Estate in the marketing process. ■
Upcoming Spotlight TAX ISSUES & ACCOUNTING
www.marejournal.com
Review 2012 triumphs & c make it ha Mid Atlantic Rea Annual Y
ngratulate all who helped pen in the Estate Journal’s arbook!!
Featuring:
Head shots of all the Industry leaders Top headlines of 2012
Snapshot of all 23 Front Covers Personalized Advertisements: Happy Holidays, Special Thanks, Congrats & Tombstone Ads
DEADLINE: DECEMBER 14 Click Here for DetailS
Inside Cover A — November 23 - December 6, 2012 — Mid Atlantic Real Estate Journal
www.marejournal.com
If you own property in New Jersey with a building or other structure significantly damaged or destroyed as a result of Superstorm Sandy, the law requires you to take action seeking adjustment to the property’s assessed valuation before January 10, 2013. For more information about this topic, please see article in this issue.
Visit our website for a form letter and other helpful information: www.foxrothschild.com/hurricanesandyrecovery
Fox Rothschild LLP ATTORNEYS AT LAW A Pennsylvania Limited Liability Partnership
ATTORNEY ADVERTISING
Mid Atlantic Real Estate Journal — November 23 - December 6, 2012 — 1A
www.marejournal.com
Founded in 2001, GeoGenix is one of the oldest and most experienced solar integrators in the Mid-Atlantic region. A Solar Expert and Leader With Many Industry Achievements! 1 st First to engineer and install solar at a nuclear plant in the nation. 1 st Engineered and installed solar system to create the first “Net Zero” electric commercial building in the nation. Qua l i t y. E x pe r i en c e . Awa r d -Wi nn i ng S e r v i c e .
GeoGenix 8998 Route 18 Old Bridge, NJ 08857 | 1-877-4GRNPOWER | info@geogenix.com | www.geogenix.com
2A — November 23 - December 6, 2012 — Mid Atlantic Real Estate Journal
www.marejournal.com
Aldo Design Group .......................................................... 8A All-Rite Construction Co., Inc....................................... 10B ALT Realty....................................................................... 4B AmeriBid.......................................................................... 5A Associated Builders & Contractors, Inc. ...................... 23A Bedford Strategies & Solutions ...................................... 1C Belfor Property Restoration............................................ 8C Bennett Williams Realty Inc. ....................................... 13B BL Companies ............................................................... 20B Bohler Engineering ......................................................... 8B Borrus Associates ............................................................ 9B Capitol Aerials............................................................... 17A Cenova ............................................................................. 2B Cole Schotz .................................................................... 18C Cooper Levenson, Attorneys at Law............................... 4C Cooper Roofing Inc. ......................................................... 9A Corbett Exterminating.................................................. 19C CREATE......................................................................... 20B Crystal Window & Door Systems, Ltd. ........................ 16A D.F. Pray ......................................................................BC-B David Hirschman Realty Company, Inc......................... 3C Earth Engineering Incorporated .................................... 5B EdificeRx........................................................................ 18C Entech Digital Controls .................................................. 7C EWMA............................................................................ 13C Exchange Solutions ...................................................... IC C Fameco Real Estate....................................................... 13B Fowler ............................................................................ 24A Fox Rothschild LLP...................................................... IC-A Franchise World ............................................................ 12B GeoGenix ......................................................................... 1A Gilbeaux Associates, P.C. .............................................. 17A Haftek CWS................................................................... 11A Hutchinson Mechanical Services.................................. 10C Hutchinson Mechanical Services.................................. 18A Integrated Business Systems ....................................... 12C IREM.............................................................................. 20A Jottan Inc....................................................................... 11C Kaplin Stewart ................................................................ 2A Katz Properties.............................................................IC-B Kay Realty Services LLC.............................................. 10B KW Comm’l.- The James Balliet Grp............................. 2B Land Dimensions Engineering ....................................... 9C Landcore Engineering Consultants, P.C. ....................... 7B Levin Management ....................................................... 13B Liberty Property Trust................................................BC-C LMS Commercial Real Estate ...................................... 11B M. Miller & Son ............................................................... 3A Madison Commercial Real Estate Services ...............FC-B Manko Gold Katcher Fox LLP........................................ 7B Marcus & Millichap Taylor Zang.............................. 2B,5B Martin Architectural ....................................................... 5B Metro Commercial Real Estate, Inc. ............................ 10B Metropolis Capital Finance ............................................ 8A Montecalvo..................................................................... 14C Motleys............................................................................. 5A Nave Newell .................................................................... 4B NorthMarq....................................................................... 3A PennCap Properties ...................................................... 20B Perlmutter Properties, Inc........................................ IBC-B PlymouthRockEnergy ............................................... IBC C Poskanzer Skott Architects........................................... 10A RBS Citizens................................................................BC-A RD Management LLC ..............................................16-17B RestoreCore ................................................................... 17C River Drive Construction.............................................. 15A Shah Electric & Builder, Inc......................................... 10A Silbert Realty & Management Co., Inc. ......................... 6B Target Building Construction....................................... 20B The Azarian Group, L.L.C. ............................................. 1B The Aztec Corp./Aztec Architects LLC ........................... 6C Thesing Companies ....................................................... 12A USAArchitects .............................................................. 15C Vanatage ........................................................................ 11A Vantage Landscaping...................................................... 8A Warfel Construction ........................................................ 6B Weiner Lesniak LLP ....................................................... 2C Whitestone Associates, Inc. ............................................ 9B WP Realty ........................................................................ 3B MAREJ A DVERTISERS D IRECTORY
Mid Atlantic R EAL E STATE J OURNAL Publisher ............................................................................Linda Christman Co-Publisher .........................................................................Joe Christman Section Publisher ..............................................................Michael Campisi Section Publisher ................................................................Elaine Fanning Senior Editor/Graphic Artist ................................................ Karen Vachon Graphic Artist/Social Media Specialist ............................ Rachel Rugman Office Manager ...................................................................Joanne Gavaza Editorial Consultant ............................................................. Ben Summers Contributing Columnist .................................................. Howard R. Majev Mid Atlantic R EAL E STATE J OURNAL ~ Published Semi-Monthly P.O. Box 26 Accord, MA 02018 (Mail) 312 Market Street, Rockland, MA 02370 (Overnight) Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, P.O. Box 26, Accord, MA 02018 USPS #22-358 | Vol. 24 Issue 22 Subscription rates: $99 - one year, $198 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Toll-Free: (800) 584-1062 | MA: (781) 871-5298 | Fax: (781) 871-5299 www.marejournal.com
Mid Atlantic Real Estate Journal
By Howard R. Majev Measured optimism is the mood at Real Estate Conference
W
hen my law firm, Saul Ewing LLP, launched its first
Mid-Atlantic Real Estate Conference in Baltimore in 2009, the outlook for the in- dustry was grim. The bubble in the market had burst and developers were hav- ing great difficulty securing financing. What a difference a few years make. Listening to in- dustry players at our 4th an- nual conference last month at the Baltimore Convention Center, I gleaned that they had learned some important lessons. Even in a down market, they had discovered they could find opportuni- ties. However, they realized that they had to pick their opportunities carefully and finance them in ways to protect themselves against potential risks that remain. I’d call that cautious opti- mism, which sounds pretty good considering the hurdles that everyone in the in-
The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
dustry, including investors, advisors, financiers and law- yers have had to overcome. Although I wouldn’t say the real estate market is completely healthy, it is cer- tainly re-gaining some of its health. If you are still prone to feel pessimistic, our keynote speaker, Richard S. Sokolov, Chief Operating Officer of Simon Property Group, Inc., helped put the down side of the market in perspective by documenting the cyclical nature of real estate over the past 35 years. Despite a his-
tory of higher interest rates, credit freezes, the emergence of online shopping, the fi- nancial meltdown and many other factors, Simon has survived predictions of the demise of the shopping mall and has grown to become one of the largest real estate companies in the world. Si- mon owns or has an inter- est in 333 retail real estate properties in North America and Asia. One key, Sokolov said, has been making certain that each of its properties has Continued on page 6A
Contact: NEIL A. STEIN (ARVEST $RIVE "LUE "ELL 0! s s www.kaplaw.com Other Offices: s #HERRY (ILL .* s 0HILADELPHIA 0! Kaplin Stewart A t t o r n e y s a t L aw 'ETTING YOU THROUGH THE MAZE OF REAL ESTATE LAW Strategy. Skill. Success. Contact: GEORG BROSEMA
To advertise, call 1-800-584-1062
Mid Atlantic Real Estate Journal — November 23 - December 6, 2012 — 3A
www.marejournal.com
M ID A TLANTIC R EAL E STATE J OURNAL Ted Pfeifer Realty reps Auto Zone HighAssociates Ltd. reps E.W. Holdings in industrial sale
DEBT | EQUITY INVESTMENT SALES Capital Markets
S y s t e m s , I n c . h a s purchased t h e p r o p - erty at 207 Hempt Rd. in Mechan- icsburgfrom E.W. Hold- ings, Inc. M
provide companies with the ability to access the equity in their fixed assets to gener- ate liquidity while preserv- ing control of their facilities. “Many companies seek meth- ods to monetize their long-term investments without losing control of their real estate. Sale-leasebacks are a solution that allows the company to continue to run their business without interruption,” said Harris. “I am proud to join the dynamic team at Meridian and I look forward to leveraging my extensive triple-net lease and sale-leaseback expertise to enhance Meridian’s longstand- ing tradition of excellence and drive market share,” he added. ■ Liberty Auto Exchange has leased a 13,200 s/f ware- house in Newberry Town- ship from property owners Henry and Alice Treffin- ger , for an online auto sales business. Cass handled the transaction for both the landlord and the tenant. ■ seller, Hussein Shoukry. Ted Pfeifer of Ted Pfeifer Realty represented Auto Zone Development Corp.
E C H A N I C S - BURG,PA —Flight
new role withMeridian, Harris will be originating debt and equity transactions nationally, focusing on triple-net leased property owners and inves- tors. He joins Meridian from Marcus & Millichap where he was ranked as a “Top Five Broker” nationally from 2007 through 2011 and a “Top Loan Originator” for three consecu- tive years from 2008 to 2010. Harris’ team will benefit from current market trends where low interest rates have helped drive capitalization rates down and property values up. This dynamic has created a strong opportunity for compa- nies to sell and lease back their real estate. Triple-net lease and sale-leaseback products The property at 3050 Car- lisle Rd. in Dover has been sold to Auto Zone Develop- ment Corp. for a new store location. Cass of High As- sociates represented the Denise Cass of High As- sociates Ltd. represented the sellers, E.W. Holdings, Inc. , in the transaction. DanAlderman of NAI CIR represented Flight Systems, Inc.
Innovative solutions and deep expertise for all of your commercial real estate financing needs.
Denise Cass
northmarq.com
NEW JERSEY | PHILADELPHIA BALTIMORE | UPSTATE NEW YORK
Meridian Capital Group recruits Geoffrey Harris
33 offices coast-to-coast
NEW YORK, NY — Me- ridian Capital Group, LLC announced the addition of
G e o f f r e y Harris as a managing di- rector at the company. H a r r i s spec i a l i zes in financing commercial assets with
They wrote the policy.
We make sure they write the check.
Geoffrey Harris
a focus on triple-net lease and sale-leaseback transactions and will be responsible for overseeing Meridian’s recently formed Arizona office. Harris has 14 years of mortgage bank- ing experience and has closed more than 1,900 transactions totaling over $2.9 billion. In his
M. MILLER & SON Public Adjusters Since 1960
1211 Liberty Ave., Hillside, NJ 07205 ● Tel: 908-355-4800 adjuster@mmillerson.com ● www.mmillerson.com e Prints Reprint your articles and press releases as they appeared in the Mid Atlantic Real Estate Journal . Introductory rate for an e-print (printable pdf): $50 (one sided, 8.5 x 11 pdf) ; regular rate: $65 For double sided, larger versions, or traditional hard copies, please call for pricing.
Features Tax Issues/ Accounting
If you are one of these experts, call to reserve your marketing space today. Issue Date: December 7 | Deadline: November 30 Contact Linda Christman for details lchristman@marejournal.com | 1.800.584.1062 ext. 203 www.marejournal.com We are inviting a select group of top advisory and CPA accounting firms, to write a byline article on specific accounting, and tax service topics, as well as corporate finance, internal audits, and risk management, litigation services, consulting, private business services, employee benefit plan audits, forensic accounting, and other professional advisory services.
for more information
800-584-1062
4A — November 23 - December 6, 2012 — Mid Atlantic Real Estate Journal www.marejournal.com M ID A TLANTIC R EAL E STATE J OURNAL A UCTIONS
Mid Atlantic R EAL E STATE J OURNAL
N E W J E R S E Y • P E N N S Y LVA N I A • D E L AWA R E • M A RY L A N D • W A S H I N G T O N D . C . • V I R G I N I A • Auctioneers Directory
PA-MD-VA-W.VA
DE, PA, NJ
NJ-PA-DE-NY-MD-VA
Richard G. Warner, President NJ & PA Licensed Real Estate Broker Warner Real Estate & Auction Co., Inc. 109 East Grant Street, Suite B Woodstown, NJ 08098 Ph: (856) 769-4111 ext 710 Website: www.WarnerRealtors.com
Residential, Commercial & Industrial Auction Specialists!
CALL NOW FOR A FREE CONSULTATION 866.4 BIDDERS HURLEY AUCTIONS www.HURLEYAUCTIONS.com
Call us @ 800-584-1062
www.fortnaauctioneers.com 1-855-831-4242
P LACE YOUR B USINESS C ARD IN OUR A UCTION D IRECTORY T ODAY ! C OMPANIES S PECIALIZING IN C OMMERCIAL /I NDUSTRIAL R EAL E STATE C AN P ROMOTE T HEIR C OMPANY AND ITS S ERVICES IN OUR T WICE MONTHLY D IRECTORY P LEASE F ILL O UT C OUPON B ELOW A ND F AX I T T O 781-871-5299 OR E MAIL LCHRISTMAN @ MAREJOURNAL . COM
Name: Company: Address: CIty: State:
Zip Code:
Phone #:
Fax #:
Email:
Web Address: 1-800-584-1062 • Fax 1-781-871-5299 • lchristman@marejournal.com
Mid Atlantic Real Estate Journal — November 23 - December 6, 2012 — 5A M ID A TLANTIC R EAL E STATE J OURNAL A UCTIONS
www.marejournal.com
LAND DEVELOPMENT AUCTION
December 11 TH 11 AM
Place your Business Card
in our Auction Directory Today!
Companies Specializing in
Commercial/Industrial Real
Estate Can Promote Their
877-895-7077 4619 Southern Ave., Capitol Heights, MD AmeriBid.com 4 Coml. Lots Near Retail Totaling 0.5± Acres Zoned C-S-C
1.27± ac Res. Lot Near 2 Metro Stations Ideal Development Parcel Zoned R-2 4400 Minnesota Ave. NE, Washington DC
Company and its Services in our
Twice monthly Directory
Email lchristman@marejournal.com
10% Buyer Premium | 2% Broker Participation | F. Palacios, Broker #534177 (MD); #PB700491 (DC)
AUCTION
ADJACENT/SOUTHPARK MALL, COLONIAL HEIGHTS
16,341±SFCommercial Buildingon5.9±AC
TRACT 1: Commercial Building 16,341± SF & 2.47± Acres
TRACT 2: 2.01± Acres TRACT 3: 1.42± Acres
3 Tracts offered separately & as an entirety. t3FUBJMGMFYDPNNFSDJBMTQBDF zoned (Business Class 3) t #BZEPPSTFOUSBODFT t -PDBUFESFHJPOBMTIPQQJOHBSFB t .JMFTUP'PSU-FF DSPTTSPBET BU* *3UNBLFT QSPQFSUZBDDFTTJCMFUPSFUBJMFST CVTJOFTTFTUSBWFMFST
3
2
1
16,341± SF BUILDING
Metes & bounds depicted are approximate.
12/11 @2PM SALE HELD: 445 Charles H. Dimmock Pkwy., Colonial Heights, VA 23834 & Online
6A — November 23 - December 6, 2012 — Mid Atlantic Real Estate Journal
www.marejournal.com
M ID A TLANTIC R EAL E STATE J OURNAL
Measured optimism is the mood at Real Estate Conference
NOLA, PA — RSR Realtors announced that Drayer Physical NAI CIR reps tenant in 4,500 s/f lease RSR Realtors completes 23,900 s/f in transactions E
Continued from page 2A a market to serve. Every project must create value and take market share from competitors. The goal is to draw tenants because that is where other retailers are doing business. “That goal guides our deci- sions,” Sokolov told the 200 people at our conference, called “Real Estate in 2013 – A Primer for an Extended Recovery. So where are the players who came to our conference from locations extending from Florida to Massachu- setts finding their opportu- nities? One of our panel modera- tors, P. David Bramble, Man- aging Partner of MCB Real Estate, LLC in Baltimore, observed that investors seemed particularly keen on distressed properties, but were taking a conservative approach to underwriting them to provide yields as deals progress. Panelist Rick J. Band, Senior Vice President of CAPREIT, Inc. in Rockville, Maryland., said his company is finding stable opportu- nities in the Midwest and Southeast – particularly in B and B+ class multi-fam- ily properties in secondary markets and blending them to provide a solid return for investors. However, CAPREIT is staying away, generally, from the big-city primary markets. Band reported that properties in these markets are not a good fit for his company because they tend to attract large institutional investors. Panelist John M. Prugh, President and Chief Execu- tive Officer of Alex. Brown Realty, Inc. in Baltimore, said the suburbs and second- ary markets are his firm’s main focus. But he saidAlex. Brown is staying away from markets where unemploy- ment is high and growth is slow. Prugh said he expects to see slow, progressive growth in real estate over the next 12 to 24 months, but he does not anticipate a rapid recovery. Vincent J. Costantini, a panelist and Chief Execu- tive Officer of The Roseview Group in Boston, said that on the development side, activity is slow, but where it is happening, there are good opportunities. He also thinks the single-family home mar-
ket is coming back and that he is seeing top homebuilders acquiring large tracts of land for future development. Ge n e r a l l y, h owe v e r, Costantini thinks the cur- rent U.S. market is divided into “haves” and “have-nots.” He is seeing a huge pent-up demand to buy good proper- ties, particularly in gateway markets like New York City. In other markets, prices are down. To secure these good properties, he said, investors not only have to be lucky, but smart. The market also still has its share of risks – but smart investors may be able to turn those risks into opportuni- ties, our panelists said. Luke Dann, Managing Director and Chief Credit Officer of LNR Property LLC in Miami Beach, said the number of loans his company handles in special servicing is up significantly, and not just for undesirable proper- ties. Investors looking to unload good but over-lever- aged properties are turning to special servicing as well. Dann said there are also still many over-leveraged properties on the horizon. Many properties purchased at the height of the market in 2006 and 2007 were bought with 10-year loans. Those loans will not mature until 2016 and 2017. “Maybe there won’t be a tremendous train wreck,” Luke said, “but there is po- tential for it.” Still, savvy investors will find opportunities. Some of these loans may very well be refinanced, assuming the economy strengthens and capital markets respond. In other cases, investors may find opportunities by buy- ing some of these distressed properties. More generally, our speak- ers said that the presence of distressed properties often has consequences for every- one in a given market. Panelist Geoffrey Wood, Vice President of Asset Man- agement for CW Capital in Washington, D.C. said that often when a distressed property is re-priced, he sees the market re-set for rents. According to Wood, this means that other nearby properties won’t see a return to the full value of rents until the distressed property fills with tenants. One key to a successful deal in this market, other panelists said, is making
sure to leave something for the next buyer. The next in- vestor has to see some upside in the asset to invest. Jonathan B. Schultz, Pres- ident of Onyx Equities, LLC in Woodbridge, New Jersey, said the biggest problem he sees is people not defining the buyer for a given prop- erty or determining why the property should be bought and how the deal is going to evolve. The key, Schultz said, is understanding your exit strategy. “To me, this will be the most opportunistic time in the real estate industry and we all need to be ready for it,” he said. “You don’t need a lot of deals to make a lot of money. You just need to be properly focused.” Back at CAPREIT, Band said his company is thinking ahead to 2016-17. He said CAPREIT’s deals tend to be closed with 10-year financ- ing, with the goal of tying up the assets and generating double-digit cash-on-cash yields to ride out potential problems. Other panelists said in- vestors are turning to solu- tions such as selling proper- ties through online auction sites. Some panelists encour- aged investors to consider deals involving public-pri- vate partnerships, known as P3s, a growing trend in Virginia, Texas, Florida and Puerto Rico for projects such as roads, courthouses and schools, and a well-estab- lished practice in Europe, Canada and Australia. Owen J. Rouse, Jr., a panel moderator and Senior Vice President of Manekin LLC in Columbia, Maryland, said the speakers at the confer- ence definitely expressed a current of optimism, but emphasized that every geo- graphic location is different and therefore, requires a different approach. “The recovery is lumpy,” Rouse said. “Live with it.” I’d have to say that’s a pretty fair assessment. Howard R. Majev is a Partner at Saul Ewing LLP, resident in theFirm’s Baltimore office, and Co- Chair of the Firm’s Real Estate Practice Group. Saul Ewing LLP is a full service law firm with 240 lawyers in 11 offices in Pennsylvania, Mary- land, Massachusetts, New Jersey, Delaware, New York and the District of Columbia. ■
Therapy has leased 4,500 s/f of office spaceat 2250 Millennium Way in Eno- la from Mil- l e n n i u m Partners . IdaMcMur-
2250 Millennium Way
Stewartstown from State- wide Properties LP. Russ Bardolf of Rock Commer- cial Real Estate represent- ed the tenant. Jim Koury and Andrew Lick of RSR represented the property owners. Skynet Property Manage- ment has purchased a 14,000 s/f building at 1841 N. Third St. in Harrisburg from MJ Trust Properties . Greg Rothman of RSR Realtors represented the seller. Koury and Lick represented the buyer. ■ office building in Fairview commanded the sales price of $1.225 million. Sgambati andAlan Cafiero had the listing to market the property on behalf of the seller. The property is leased on a net basis with little to no management effort required on the part of the new owner. It was the new owner’s pri- mary objective to buy a net leased asset in the north- ern New Jersey area and by acquiring this property they will enjoy a stable and growing cash flow from an es- tablished and proven tenant within the medical profession in an excellent location. ■ ing. Facilities Management was previously located at 1616Walnut Street in Center City. Steve Gartner , president of Metro Commercial Real Estate , cooperated with Per- naFrederick and represented Facilities Management Ser- vices in finalizing the terms of the lease that will com- mence March 1, 2013. The second agreement was the renewal of an existing lease for some 3,605 s/f on the eight floor of 1608Walnut occupied by the law offices of Michael Hanamirian and Sidney Leabman. ■
Andrew Lick
ray of NAI CIR represented the tenant. Andrew Lick of RSR Realtors represented the property owners. In the Light Ministries has leased 2,000 s/f of commercial space at 500 Kelker St. in Harrisburg Hamilton Health Center. Lick of RSR Realtors handled the transaction. Memorial Enterprises has leased 3,400 s/f of medical office space at Cornerstone Plaza at 200 Bailey Dr. in UNION, NJ — Marcus & Millichap Real Estate Investment Services has announced the sale of 2317 Rte. 22, a 16,235 s/f retail property located in Union. The asset commanded a sales price of over $5.5 million. Ben Sgambati , a VP of investments together with Alan Cafiero , a senior as- sociate and David Cafiero , an investment specialist in Marcus & Millichap’s NJ of- fice, had the listing to market the property on behalf of the seller. They also secured the buyer. In a separate transaction Open MRI of Fairview, a 5,526 s/f net leased medical PHILADELPHIA, PA — PernaFrederick Com- mercial Real Estate has represented 1608 Walnut Associates, L. P. , the owner of 1608 Walnut Street here, in arranging two office lease agreements for approximate- ly 16,643 s/f having an ag- gregate rental exceeding $1.6 million. One of the multi-year agreements brokered by Joe Viturello , a vice president of PernaFrederick, involved the relocation of Facilities Management Services of Pennsylvania to 13,038 s/f on the fourth floor the build-
Marcus & Millichap NJ office sells 16,235 s/f retail building
PernaFrederick represents 1608 Walnut Associates in two office leases
O WNERS , D EVELOPERS & M ANAGERS
Mid Atlantic Real Estate Journal — November 23 - December 6, 2012 — 7A
www.marejournal.com
LAINFIELD , NJ — Treetop Develop- ment’s plan for expan- Steven Fleissig of Greenberg Traurig represented buyer in transaction Treetop Development expands NJ presence with acquisition of $9.8 million apartment complex P
acquisition program Treetop implemented several years ago which has added of more than 3,000 units to its portfo- lio in Cities such as Newark, East Orange and Jersey City. Since 2009, Treetop Devel- opment has taken advantage of challenging market condi- tions by purchasing high- performing and well-located HUD apartment assets. After acquiring the properties, Tree- top institutes an extensive capital improvement program thanmodernizes living spaces, common areas and building systems. “We consistently analyze the marketplace, searching for properties that fit well into our investment plan,” says
Adam Mermelstein , a Tree- top principal. “We’re looking for well-located, market-rate rental communities that can be purchased at competitive prices, immediately generate capital and possess future upside as well. “This property met all these criteria and was the perfect opportunity to establish a footprint in the Union County market. The property has been undermanaged for sev- eral years and after complet- ing one of our trademark ‘turnaround” programs, we will be able to reintroduce these apartments as an af- fordable option. As a result, the potential for the property is tremendous.” ■
ELMWOOD PARK, NJ — River Drive Construc- tion, based in Elmwood Park announced the firm has com- pleted a $1.3 million reno- vation and expansion of the Salumeria Rosi Parmacotto II Ristorante, a new Italian deli and restaurant located on New York City’s Upper East Side, at 903 Madison Ave. River Drive served as general contractor and contract man- ager, expanding the facility to encompass 4,000 s/f divided between the basement and the first floor. The architect on the project was Daniel O’Connor Archi- tects , based in NYC. “We thank Salumeria Rosi for providing us with the op- portunity to demonstrate our expertise in restaurant fit-outs, enabling them to continue their long tradition of culi- nary excellence,” said Joseph Langan , president of River Drive. “Salumeria is the Ital- ian word for delicatessen, and this wonderful deli gives New York’s residents and visitors the unique opportunity to share in an Italian tradition of visiting their local deli to purchase spe- cialty foods and delicacies.” Construction work included The $9.8 million purchase is the initial foray for the fast growing Teaneck based real estate concern into yet another one of the state’s housing markets. Treetop is entering the Union County market after significantly in- creasing its portfolio of homes in Hudson, Bergen and Essex Counties through innovative acquisition techniques. Ste- ven Fleissig of Greenberg sion in New Jersey is taking another step forward with the recent acquisition of a 108-unit HUD garden apart- ment complex in the Union County.
825 East Front Street
The purchase of the HUD apartment complex is a con- tinuation of an aggressive
Traurig represented Treetop Development in the transac- tion.
River Drive Construction serves as general contractor and contract manager on $1.3m renovation/restoration project
ter in New York City. “River Drive has completed the work with sensitivity to our every need, including our needs for
the work to be completed on time and within budget. In the restaurant business, time is of the essence.” ■
DMR Architects announces Weatherization education and training center opening
Salumeria Rosi Parmacotto II Ristorante
extending the back dining area; reconfiguring of the stairway; adding new tile and wall panels on the first floor; new heating, ventilation and air conditioning (HVAC); new fire protection, electric, light- ing, gas and water lines; and the installation of a new sun roof and storefront. Salumeria Rosi Parmacatto II Ristorante, whose existing sister Upper West Side facility is located across town between 73rd and 74th Streets, expand- ed to the MadisonAvenue loca-
tion as a result of the success of the West Side facility. Gruppo Parmacotto, owned by the Rosi family, also own restaurants in Paris and in Parma, a city in the Emilia-Romagna region of northern Italy. “We’re excited by River Drive’s work on our new East Side restaurant,” said Cesare Casella, executive chef and partner of Salumeria Rosi, who is a multiple award-win- ning chef, authority on Italian cuisine and the dean of The International Culinary Cen-
BCCAP’s Weatherization Education and Training Center
former warehouse into space which accommodates training areas as well as office, reception and meeting space. BCCAP’s program is part of a nationwide stimulus which has weatherized one million homes in America, and 1,000 in Bergen County alone. BCCAP is an anti-poverty agency that provides services to low-income individuals to support independence and success. ■
GARFIELD HEIGHTS, NJ — On October 4, DMR Architects joined the Bergen County Community Action Partnership’s (BCCAP) in celebrating the grand opening of BCCAP’s Weatherization Education and Training Center, designed by DMR Architects. At the ribbon cutting, BCCAP also celebrated the graduation of the eighth class of the Weath- erization Training Program. DMR’s design converted the
8A — November 23 - December 6, 2012 — Owners, Developers & Managers — Mid Atlantic Real Estate Journal
www.marejournal.com O WNERS , D EVELOPERS & M ANAGERS Multi-family investing hits its stride with brisk pace Gebroe-Hammer records 30 deals, $100+m in Q3 sales
Vantage provides quality landscaping services to commercial and industrial property owners and managers in the mid-Atlantic area. We specialize in customized programs that meet your needs and expectations.
Fencing Chain Link Ornamental Gate Systems
L
demonstrates that market fun- damentals have dramatically improved and demand contin- ues to surge,’’ said Uranowitz, a 37-year Gebroe-Hammer in- vestment brokerage veteran. Northern New Jersey re- mains quite fertile due to its high concentration of existing multi-family properties. The region’s tenant base also is primarily comprised of young professionals whose lifestyle needs are driven by proxim- ity to transportation hubs and direct access to New York City. With a high density of existing apartment buildings through- out Essex, Bergen and Hudson counties, the Northern/Central New Jersey corridor continues to lure investors who are seek- ing stability and an opportunity to enhance their investment portfolios. In Hudson County, Gebroe- Hammer’s market specialists orchestrated four separate transactions totaling $5.925 million involving 77 apartment- rental units and four ground- floor retail units in Jersey City and Union City. In Newark and East Orange, the firm exclu- sively represented long-term A certified Project Manage- ment Professional (PMP), she has served as president and board member of the NYC chap- ter of the Project Management Institute (PMINYC); founding member of the Transportation Diversity Council, vice-president and board member of the Council of Minority Transportation Of- ficials (COMTO-NYC); and as a member of the Security Advisory Committee ofASIS International.
clients in two Essex County sales netting $10.225 million for 183 units. Rounding out Gebroe-Hammer’s impressive trading pace were two sales in Bergen County, which included 84 units sold for $12.35 million in East Rutherford and 24 units in Dumont that netted $2.75 million. In addition to focus- ing on northern, central and southern New Jersey, Gebroe- Hammer’s market specialists report high levels of activity in Pennsylvania as well. The most recent transaction involved the $23.25 million sale of 352 units in Bensalem, PA. “Affordability, a highly un- stable single-family housing market and the appeal of living in transit-oriented locations are all major factors that are drawing more people than ever before to an apartment-living lifestyle,” added Uranowitz. “Across the board, vacancies are declining, rental rates are steadily rising and there is little-to-no new development drawing young professionals and working-class families away from the current in- ventory of class A, B and C buildings.” ■ Dawson is also a retired military ordnance and logistics officer, bri- gade commander, and a veteran of Operation Iraqi Freedom. PWC president Lenore Janis says, “We are thrilled to be able to honor a woman whose blend of courage and professionalism have led her to a position of true leadership in the industry.” She notes too that this is one of PWC’s most popular events, “a rare op- portunity to network in a festive atmosphere with some of the industry’s leaders and decision makers; it’s a time to see and be seen.” ■
IVINGSTON, NJ — New Jersey’s multi-fam- ily market hit its stride
Parking Lot Services Snow Removal
dur ing Q3 , returning to pre-recession f un d ame n - tals and an imp r e s s i v e transaction pace, accord- ing to Ken Uranowitz ,
Seal Coating Line Striping
Vantage Landscaping Inc. P 0 Box 400 Skippack, PA 19474
Tel 610.222.0202 Fax 484.932.8306
Mulch Blowing Mulch and Topsoil Playground Chips Erosion Control
vantage@vantagelandscaping.com vvww.vantagelandscaping.com
Ken Uranowitz
managing director of Gebroe- HammerAssociates . The firm arranged 30 multi-family deals totaling 1,400 units valued at more than $100 million. In one four-week timeframe alone, Gebroe-Hammer closed 13 deals representing 724 units, which sold for in excess of $54 million. “Over the course of the last two years, the multi-family market has emerged as the strongest commercial property type, in terms of overall de- mand and asset appreciation. The last few months represent a milestone for the market- place and our firm, both in the historic number of closed deals and the cumulative value of these transactions. It clearly
Eric Hynek Director 4630 Montgomery Avenue | Suite 500 Bethesda | MD | 20814 Office 240-743-4178 Fax 301.657.3698 Mobile 202-841-4156 erich@metcapfinance.com www.metcapfinance.com
NEW YORK, NY — On Fri- day, December 14, Profession- al Women in Construction PWC to honor PANYNJ’s Dawson at Holiday Gala Rail; as well as all operations, services and public safety depart- ments. She was most recently the Authority’s chief of staff.
(PWC) wi l l honor Stepha- nie Dawson , acting COO of the Port Authority of New York & New Jersey at its annual holiday black tie dinner dance gala.
Stephanie Dawson
Dawson is responsible for aviation; tunnels, bridges, and terminals; Port Commerce; PATH
GET YOUR NAME OUT THERE
Advertise with the Mid Atlantic Real Estate Journal today! 800.584.1062
Mid Atlantic Real Estate Journal — Owners, Developers & Managers — November 23 - December 6, 2012 — 9A
www.marejournal.com
O WNERS , D EVELOPERS & M ANAGERS
Residential • Commercial • Industrial COOPER ROOFING INC. We Service New Jersey, Pennsylvania, Maryland and Delaware Specializing In Commercial and Industrial Roofing
Low,
Low
Prices We Not Only Install New Roofs, We Repair Also! 30 Years of Experience
www.cooperroofing.com 970 River Rd. • Croydon, PA 19021
24 Hour Service Call 800-945-2833
10A — November 23 - December 6, 2012 — Owners, Developers & Managers — Mid Atlantic Real Estate Journal
www.marejournal.com O WNERS , D EVELOPERS & M ANAGERS Asset commands a sale price of $600,000 Marcus & Millichap sells an 11 unit apartment building
GENERAL CONSTRUCTION
Commercial • Industrial • Residential
O
RANGE , NJ — Mar- cus & Mi l l ichap Real Estate Invest-
HVAC • NETWORK • SOLAR PANEL INSTALLATION • SECURITY • CAMERA • SWIMMING POOL GROUNDING • FIREALARM INSPECTION & INSTALLATION Contact: VINAY SHAH P: 201-488-6088 F: 201-488-6087 Email: shahelec@aol.com 123 Hudson St, Rear Bldg, Hackensack, NJ 07601 Fully Bonded & Insured License #11574
ment Services has an- nounced the sale of an 11 unit apartment property located in Orange. The asset commanded a sale price of $600,000. Christopher Rizzolo , senior associate in Marcus & Millichap’s New Jersey of- fice, had the listing to market the property on behalf of the seller. He also secured the buyer, a local investor. The subject property is lo-
325 Henry Street
cated at 325 Henry Street.
This mixed-use apartment building contains 10 residen- tial units and 4000 s/f retail space occupied by pharmacy business. The unit mix con- sists of six one-bedrooms and four studio apartments. ■ WillowConstruction honors Thomas for 25 years of service
EASTON, MD — Willow Construction is proud to honor superintendent Eu- gene “Buddy” Thomas for 25 years of service. Thomas started with Wil- low in 1987 and has over 42 years of experience in the construction industry. He has worked on many projects over the years, in- cluding constructing the Fifth Floor (LDRP Suite) at Easton Memorial Hospital, the Joslin Diabetes Center and Easton Utilities Office Building. Thomas holds a Health- care Construction Certificate from the American Society for Healthcare Engineering of the American Hospital As- sociation. ■ Shown from left: President Mike Hiner, superintendent Buddy Thomas and VP Andy Cheezum.
Mid Atlantic Real Estate Journal — Owners, Developers & Managers — November 23 - December 6, 2012 — 11A
www.marejournal.com
O WNERS , D EVELOPERS & M ANAGERS 100,000 s/f replaces deteriorated facilities BBS serves as architect and engineer for $3.8m track, field
VANTAGE FACILITY MAINTENANCE SERVICES ✔ Landscape Construction ✔ Landscape Maintenance ✔ Tree Service ✔ Snow Removal PARKING LOT MAINTENANCE ✔ Sweeping ✔ Paving ✔ Seal Coating ✔ Line Stripping COMMERCIAL JANITORIAL ✔ Cleaning ✔ Cleaning Supplies 24 Hour Emergency Response 610.222.0202 or Fax 484.932.8306 www.vantagelandscaping.com
G
LEN HEAD, NY — The leadership of the North Shore School
District, community lead- ers and BBS Architects, LandscapeArchitects and Engineers celebrated the official opening of the new athletic field, running track and supporting facilities. The district encompasses a high school, middle school and three elementary schools. BBS served the district as architect and engineer for the project. Savin Engineers provided construction man- agement services. “The new, $3.8 million, 100,000 s/f sports complex replaced and expanded the deteriorated facilities which were insufficient for the needs of the district’s 2,850 stu- dents,” said BBS director of architecture Joseph Rettig, AIA, LEED AP . “The new complex includes a multi- use, synthetic turf field; an eight-lane running track; and a 1,700 s/f concession, bath- room and storage building.” The BBS team faced sev- eral engineering challenges, including the requirement to protect a neighboring wetland recharge basin and a poorly
North Shore School District athletic field and track
draining fill and soil at the site of the new field. BBS developed solutions that corrected the soil condi- tion and protected the nearby basin. “The new field features a subsurface drainage and a water detention system that prevents storm run-off from entering the wetland,” said Rettig. “The drainage system consists of a permeable stone base beneath the synthetic turf surface and a perforated pipe network that directs rain water to the underground, plastic detention chambers.” The storm water manage- ment system utilizes Storm-
tech SC-740 drainage cham- bers. The system is designed for detention of 30,000cf of water using six inches of stone at 40% porosity. The complex also includes a new, one-story, multi-pur- pose building that serves as the main entry port to the athletic facilities. The build- ing consists of two structures connected by a pitched steel truss roof with gray asphalt shingles and a reverse gable. The entryway between the buildings is protected by a decorative iron gate. The en- tire athletic facility received a new security system. ■
Haftek CWS Safe. Responsible. Enviromentally Friendly.
Protected by US Patents 7118633, 7121288, 7124767.
A Complete Solution - We Take Care of Everything.
• Highly economical way to remove and recycle your concrete washout water
• Eliminates costly fines and fees for non-compliance
• Containment prevents spill damage to concrete and asphalt
• Replaces outdated washout procedures which are costly and damaging to the environment
• Reduces unsightly messes on job sites
www.haftekcws.com 179 RYERSON AVENUE PATERSON, N.J. 07502 P: 973.942.3131 | F: 973-956-5086 | E-mail: info@haftekcws.com
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82Made with FlippingBook - Online magazine maker