February 2023


The 438,000 s/f class A+ facility will be completed in early 2026 JLL Securities secures $409M CTL financing for Chubb’s Philadelphia office

HILADELPHIA, PA — Jones Lang La- Salle Securities, LLC (JLLS) has structured and placed a $409 million credit tenant lease financing for the development of a new office in Philadelphia for Chubb. JLLS served as the place- ment agent for the developer, Parkway Corp. The construc - tion-to-permanent loan was structured to mature co-termi- nus with the initial lease term and provide the borrower a single-source of financing at a long-term fixed-rate. Anticipated for delivery in early 2026, the new head - quarters facility will contain 438,000 rentable s/f of class A+ office space across 18 floors. The property will offer robust amenities, including a 6,000 s/f outdoor terrace on the 9th floor and two levels of underground parking. Chubb plans to create at least 1,250 new positions in CLAYMONT, DE – Com- mercial Development Com- pany, Inc. (CDC) announced the sale of 28 acres to First Industrial Realty Trust on which the REIT will construct a 358,000 s/f industrial distri - bution facility to be located within the “First State Cross - ing” development in Claymont. “We understand there is P

2000 Arch St. in the Logan Square neighborhood of Phila - delphia. Logan Square is home to many of the city’s iconic at - tractions, including City Hall and local museums and gal - leries, including The Franklin Institute, The Academy of Natural Sciences of Drexel University, and Philadelphia Museum of Art. In addition, the new is just a few blocks from the Suburban Station, provid - ing commuter rail access and connections to subway service throughout the city. The JLLS team represent - ing the developer was led by managing director Austin Johnson and senior managing director Bill Cavagnaro . Multiple JLL business lines collaborated on the execution, including JLL’s agency leasing team, which represented Park - way, JLL’s tenant rep team which represented Chubb and JLL’s project and development services team. MAREJ CDC purchased the retired Evraz Steel Mill in 2015 with plans to establish a mixed-use project on the 425-acre site. The first step was to relocate Claymont Transit Center to anchor the redevelopment. The $70 million transit center will be the busiest in Dela - ware with 44 trains per day. Claymont Station will open in August 2023 and will con - nect First State Crossing to Greater Philadelphia with express trains to 30th Street Station in just 25 minutes. First State Crossing is now projected to include 700,000 s/f of industrial, 500,000 s/f of office, 50,000 s/f of retail, and 1,200 apartments and townhomes. The value of the project is expected to exceed one billion dollars in construction costs and will represent the largest economic development project in the state, according to Brett Saddler , executive director of the Claymont Renaissance De - velopment Corporation. MAREJ




UPCOMING CONFERENCES & WEBINAR PA Mixed Use, Retail & Medical Properties Conference Thursday, March 30, 2023 At Courtyard Philadelphia Featuring Credit Unity www.creditunity.com Tuesday, April 18, 2023 Cannabis and Real Estate Conference April 20, 2023 At The Newark Liberty Int’l. Airport Marriott Hotel 8AM to 11AM For speaking & sponsorship info., please contact: City Ave Hotel Webinar Series Lea at 781-740-2900 or lea@marejournal.com

Chubb HQ rendering

taining a total of 3,200 jobs in Pennsylvania within five years following the opening. The property is located at

Philadelphia making it the company’s largest office in North America. Chubb has committed to creating and re -

Commercial Development Company announces the sale of 28 acres to First Industrial Realty Trust

358,000 s/f warehouse at First State Crossing

high-demand for ready-to- occupy logistics facilities, and we are pleased to work along - side First Industrial to bring this project to Claymont. It is a welcome kick-off to the First State Crossing masterplan,” said Stephen Collins , execu - tive vice president at CDC. The 358,000 s/f rear-load facility will feature 68 dock door positions, parking for 241 trailers and 40 ft. clear height. The building’s flexible design positions First Industrial to accommodate supply chain requirements for a single ten - ant or multiple users across a range of industries. “The I-95 Corridor is a criti -

cal distribution corridor and Northern DE, as part of the greater Philadelphia indus - trial market, has seen strong tenant demand due to its infill location and favorable business climate,” said John Hanlon , executive director for First Industrial. “Our project offers efficient high - way access to I-95 and I-495 and a strong local labor pool. We are excited to bring this state-of-the-art facility to serve businesses in this high barrier market.” The facility will be located on the site of the former Evraz Steel Mill adjacent to I-95 and I-495.

Directory ROP (Front Section) ........................................... Section A Retail Development Reimagined.............................9-10A Financial Digest.....................................................11-13A The Professor’s Comedy Corner..................................14A CRE Organization’s Events Calendar ............................ 16A New Jersey..............................................................1-10B Pennsylvania........................................................11-BC-B Owners, Developers & Managers....................... Section C www.marej.com

Inside Cover A — February 2023 — M id A tlantic Real Estate Journal


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M id A tlantic Real Estate Journal — February 2023 — 1A



Caliber Collision Bordentown, NJ $6,315,704

Outback Steakhouse & M&T Bank Clifton Park, NY $2,734,977 WellNow Urgent Care Troy, NY $2,930,087

Mission BBQ & Sport Clips Marlton, NJ $3,830,810 Dollar General Millville, NJ $1,925,925

Lexington Park Retail Lexington Park, MD $3,720,000

Starbucks New Castle, DE $3,118,812

IHOP Grove City, OH $1,948,479 Dollar General Gloucester, VA $1,736,174

Shoppes of Southland Orlando, FL $3,775,000 CVS Perry Hall, MD $6,461,301

7-Eleven Coppell, TX $4,400,582 Diary Queen & Downtown Retail Linden, NJ $1,700,000

Bojangles La Follette, TN $1,951,220 Pizza Hut Kittanning, PA $1,397,500

Ethan Cole, VA Broker of Record, License 0225258175, NJ Broker of Record License 2082582, PA Broker of Record, License RMR003168, NY Broker of Record, License 10491208561 Brian Brockman, DE Broker of Record, License RB-0020899, MD Broker of Record, License 678573








2A —February 2023 — M id A tlantic Real Estate Journal


M id A tlantic Real Estate Journal

M id A tlantic R eal E state J ournal Publisher, Conference Producer ..............Linda Christman AVP, Conference Producer ...........................Lea Christman Conference Producer .........................................Matt Wolpe Editor/Graphic Artist ......................................Karen Vachon Contributing Columnists ..................Joe Coradino, PREIT; Samantha Hoyte, CPA, MBA, CFE, Withum; Caroline Shelly, HF Planners, LLC; Michael J. Sladki, P.E., ECS Mid-Atlantic Mid Atlantic R eal E state J ournal ~ Published Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 117 HMS Halsted Dr., Hingham, MA 02043 USPS #22-358 | Vol. 35, Issue 2

Samantha Hoyte, CPA, MBA, CFE

Tax-Exempt Bond Financing for Affordable Housing

tate and local govern- ments, based on volume caps established by the federal government, are able to issue tax-exempt housing bonds. The proceeds of these bonds are used to finance mortgages for, among other uses, the production of af- fordable housing. Tax-exempt bonds are those where the in- terest paid to the bondholders is exempt from federal income tax and, in certain situations, state and local taxes as well. This tax benefit tends to result in a higher market price for the bonds, ultimately result- ing in lower interest rates for the mortgages financed by these bonds. The proceeds of these bonds can be used to finance one mortgage or many project mortgages. Issuance of this tax-exempt financing allows the project to apply for 4% low-income housing tax credits (LIHTC) on an “as-of-right ba- sis” and does not preclude the S

Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage

REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Phone: 781-740-2900 www.marej.com

project from receiving other government subsidies that are allowed for qualified projects. There are costs a property will incur for the mortgage including, but not limited to, bond counsel fees, trustee fees, issuer’s fees, underwrit- ing fees, etc. These costs vary depending on the specific transaction and normally are a percentage of the mortgage loan. Just as with any financ - ing, there are multiple steps to close on tax-exempt mort- gages. The most important first steps are: 1. A preliminary sources- and-uses schedule determin- ing how much financing is

needed for the project and how much will be supplied by tax- exempt financing; and 2. Securing the right devel- opment team to assist with the process. It is always important to ensure there is an efficient team for the process as well as ensuring requirements for applying for and closing tax-exempt bond financing are met. There are also a variety of tax-exempt bonds such as private activity bonds, exempt facilities bonds and other gov- ernment programs that allow for tax-exempt bond financing. Each bond has a specific set of continued on page 12A

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

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

M id A tlantic Real Estate Journal — February 2023 — 3A


Mid Atlantic R eal E state J ournal ’ s F amily -O wned B usinesses


Shown from left: Robert E. Atkins, Charles “Chick” Atkins, and Cory A. Atkins

Shown from left: Jason Zimmel, Jaime Zimmel, David Zimmel, Joel Natter and Jordan Zimmel of Zimmel Associates

Jason Crimmins and Ken Crimmins

Inside: Zimmel Associates......................................................................................................................................4-5A Atkins Companies..........................................................................................................................................6A The Blau & Berg Company............................................................................................................................7A

4A — February 2023 — Family-Owned Businesses Spotlight — M id A tlantic Real Estate Journal


F amily -O wned B usinesses

Father and son team Bernard (1928-2014) and David Zimmel formed company in 1986 Zimmel Associates - An Established Authority On New Jersey Real Estate F

ather and son team Bernard (1928-2014) and David Zimmel formed Zimmel Associates in 1986. Both men were already successful brokers serving the New Jersey commercial real estate industry when they were each offered a partner- ship interest in a new firm. Instead, they decided the time was right to form their own company. Within short order the duo were assigned exclusive listings and closing major transactions. Bernard Zimmel is recognized for originating the concept of industrial flex space for the industrial market in 1969. He shared the idea with a leading developer who implemented it and gave him the exclusive listing for the building. As other developers followed suit, the flex space concept had a major impact on the marketplace. Today, Zim- mel Associates’ tradition of creative solutions and father and son teamwork are stron- ger than ever. David Zimmel serves as CEO and three of his sons represent the third generation of Zimmels at the firm. They and their associ - ates are committed to deliver- ing the best deals possible for their clients. The Zimmel Associates Brokerage Team, experi- enced Real Estate Profes- sionals with exceptional track records of success for office, industrial, retail, and investment brokerage. David Zimmel CEO, Zimmel Associates David Zimmel has dedi- cated more than 44 years to the real estate industry. He has participated in the clos- ing of more than 5,000 real estate transactions, and $15 billion in investment sales. He is a highly experienced and skilled negotiator, armed with outstanding knowledge of the marketplace and the intrica- cies and tasks today’s brokers, investors, owners and tenants face prior to closing beneficial transactions. A solutions- oriented, creative thinker, David is often asked to share his market knowledge, insight and expertise with industry leaders, associations and media. He is a past president of IOREBA, an organization comprised of real estate pro- fessionals and owners in PA, NY, NJ and CT.

child, Rory Brett.

at Zimmel Associates where he specializes in the acquisition and disposition of office, industrial and retail properties. “I am excited for the future and continued success of our firm. We all share mutual respect for each others skills, a lifelong passion for the industry and commitment to outstanding service.” Terri Zimmel, Interior Designer Extraordinaire, Zimmel Associates Touches of Terri are found in many of Zimmel Associ- ates’ commercial real estate properties - office, industrial and retail properties. The Zimmel family in- cludes those who are in- grained with the same dedi- cation, passion and ethics. Joel Natter, Executive Vice President, Zimmel Associates Joel Natter has been with the firm for more than 27 years. Joel is a knowledgeable and ver- satile corporate real estate pro- fessional who knows the New Jersey market and consistently delivers outstanding solutions for his clients. He has a B.A. Degree from SUNY Bingham- ton, is a talented musician, and

serves on a local planning board and the Edison, NJ Chamber of Commerce Board of Directors. Joel is known for being a great listener, highly organized and attentive with every business situation. He enjoys leasing in the office sector and has a great track record of consistently increasing occupancy levels as Exclusive Leasing Agent. “Zimmel Associates is a good fit for me profession- ally for many reasons. The company’s entrepreneurial nature works well for me, the support staff is excellent and the ability to interact with the company’s principals is extremely valuable.” Lauren LoFaro, Director of Office Operations, Zimmel Associates In 2015, Lauren LoFaro joined the Team of Zimmel As- sociates, bringing over thirty years of notable accomplish- ments, managing daily opera- tional functions and steering projects to successful comple- tion. By immersing herself in the commercial real estate market, she continues to have a positive impact on the overall performance and daily activities of Zimmel Associates. MAREJ

“Be honest, upfront and have integrity. Know the marketplace like the back of your hand. Be the best broker you can be. Treat every trans- action, large or small, with importance. That is what my father taught me and it is a philosophy that continues at our firm. It is the founda - tion for our long-term client relationships and the key to our success.” Jordan Zimmel joined the firm in 2009. He is a gradu - ate of Monmouth University where he majored in Business Management. His responsibili- ties include organizing trans- actions and the acquisition and disposition of industrial, office and retail properties, lease and purchase negotiations and rep- resenting landlords, tenants, buyers and sellers. “Having been taught the real estate business from both my father and grandfather has proven to be more inspiration- al, educational and valuable than words can express.” Jordan Zimmel, Vice President, Zimmel Associates Jordan and his wife Arielle recently welcomed their first

Jaime Zimmel, Vice President, Zimmel Associates

Jaime Zimmel has a B.A. in Liberal Arts from Penn State University. His friendly per- sonality and negotiating skills are naturals for a successful career in real estate. Jaime is committed to continuing the Zimmel tradition of profession- alism and perseverance, and enjoys problem solving. “It’s all about finding opti - mum solutions. The process of finding a great building, negotiating the right price for the client, and closing the deal makes working at Zimmel As- sociates rewarding.” July 26, 2020, Jaime Zimmel and Kristen Mendez married, additional blessings for the Zimmel family. Jason Zimmel has a B.S. in Business Administration and Real Estate from Monmouth University’s highly regarded Kis- lack Real Estate Institute. His education by esteemed industry brokers, bankers and developers prepared him well for success Jason Zimmel, Sales Associate, Zimmel Associates

M id A tlantic Real Estate Journal — Family-Owned Businesses Spotlight — February 2023 — 5A


F amily -O wned B usinesses


Tenants, owners, developers and investors have benefited from Zimmel Associates’ fully integrated commercial real estate brokerage, consulting, investment and property management services for more than 37 years. One of the most active boutique commercial real estate brokerage firms in the Garden State, Zimmel Associates consistently achieves CoStar Power Broker status for the New Jersey market based on the high volume and value of our sales and lease transactions. Our geographic scope includes New Jersey where we represent more than 7 million sq. ft. of exclusive office, industrial and retail space; and New York and Pennsylvania.


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6A — February 2023 — Family-Owned Businesses Spotlight — M id A tlantic Real Estate Journal


F amily -O wned B usinesses West Orange, NJ-based company creates spaces geared to the evolving needs of healthcare providers

Atkins Companies’ foundation of success is built on relationships


our handshake and your word are your bond – more impor-

roots and relationship-first ap - proach to cement its role as a pioneer in the development and management of state-of-the-art medical office facilities. Work - ing closely with many of the region’s largest healthcare sys- tems and physician groups in- cluding RWJBarnabas Health, Atlantic Health and Summit Health, Atkins Companies has helped to define the gold stan - dard for community-focused outpatient medical office build - ings. With visionary leadership and hands-on management of every property in its portfolio, Atkins Companies has suc- cessfully created spaces where

leading healthcare providers deliver care to thousands of patients across the northeast. Emblematic of the compa- ny’s focus on creating spaces geared to the evolving needs of healthcare providers are two of its recent success stories - Washington Square Town Center and the Bridgewater Medical Office projects. Aiming to construct one of the region’s first health- care-centric mixed-use com- munities, Atkins Companies worked closely with Woodmont Properties to construct the 35- acre Washington Square Town Center in Washington Twp, NJ. Anchored by a 40,000 s/f medical office building, the property also boasts a com- bination of residential apart- ments, townhomes, retail spaces, and an assisted living facility to create a truly one- of-a-kind community center in the heart of southern New Jersey. Currently leased to a diverse slate of healthcare tenants including Rothman Orthopaedic Institute, Wash- ington Square Town Center showcases how Atkins Com- panies’ creativity continually helps its healthcare partners deliver care more effectively into their local communities. Further showcasing the company’s creativity and unique understanding of to- day’s care delivery model is its recent project to transform a 95,000 s/f hybrid office/medical office building in Bridgewater, NJ into a regional healthcare hub for two of the area’s larg- est networks. Completed in late 2020, the project exempli- fied Atkins Companies’ ability to not only find value in an increasingly crowded market but create spaces geared to the needs of the region’s leading healthcare providers. Through their visionary strategic planning and creative asset management, Atkins Companies has continually met the diverse space needs of healthcare providers and has helped them make immeasur- able impacts in the lives of patients across the region. As the company looks toward the future of a rapidly chang- ing healthcare industry, their family leadership knows that one thing will never change – their singular focus on build- ing relationships with their partners through a steadfast commitment to integrity and trustworthiness in all of their work. MAREJ

tant than any written contract.” Guided by those 14 words es- poused by its founder S. Stephen Atkins, West Orange, NJ-based Atkins Companies has steadily grown from humble roots as a post-World War II homebuilder into one of the northeast’s pre- mier healthcare real estate investors and operators. Now under the second and third generation of Atkins fam- ily leadership, Atkins Compa- nies’ decades-long commitment to a relationship-first approach has powered its success and

ongoing evolution in what has become one of the nation’s most competitive and crowded asset classes. Decades in the making, At- kins Companies’ entrance into the healthcare industry has

truly been a multigenerational family affair. Under the lead- ership of S. Stephen’s sons Robert, Chick and Jack, as well as his grandson Cory, Atkins Companies has successfully built upon its development

Over six decades of commercial real estate development, ownership, and management experience

M id A tlantic Real Estate Journal — Family-Owned Businesses Spotlight — February 2023 — 7A


F amily -O wned B usinesses A family-branded firm synonymous with Northern New Jersey real estate The Blau & Berg Company attributes growth and success to family roots


hen Ken Crimmins took a temporary job with The Leslie

Blau Company in 1972, mostly to find properties for his fa - ther’s construction business, he hardly envisioned that over 50 years later he would build a family-branded firm synonymous with Northern New Jersey real estate. Since becoming the major principal in 1990, Crimmins has led the Short Hills-based firm through the rigors of an uber-com- petitive market to continued year-over-year growth. Now comprised of 36 brokers, Blau & Berg’s core is still family. Jason Crimmins, Ken’s son, is the President of the com- pany; Sheryl Crimmins, Ken’s wife is the firm’s Controller. Daughters Laura and Vanessa are Executive Director and Accounting Specialist, respect- fully, while daughter-in-law, Whitney Driver-Crimmins is the Director of the company’s marketing department. The Blau & Berg Company has forged a path in the tough New Jersey industrial sector, specifically in port-centric ar - eas like Newark, Jersey City, Secaucus, and surrounding towns. Soaring demand for warehouse and distribution space has caused a surge in rents and property values in once-maligned areas that are now increasingly vital to not just New Jersey, but the na- tional supply chain. Ken Crim- mins attributes this growth to the region’s large population and consumer base, as well as a scarcity of land. The Blau & Berg Company has forged a path in the tough NJ industrial sector, specifically in port-centric areas like Newark, Jersey City, Secaucus, and surrounding towns. Despite its boutique status, Blau & Berg now boasts nine individual brokers with the prestigious SIOR designation as members of the Society of Office & Industrial Realtors, a critical networking group. Jason Crimmins manages the day-to-day operations of the company and is a firm believer in sticking to the basics. “It’s still a people business. We like to keep things simple. Rela- tionships and hard work go a long way, and there’s a lot of worth in a name. People know Blau & Berg”. MAREJ

Jason and Ken Crimmins

Ken and Sheryl Crimmins


Local expertise. Global reach.

830 Morris Turnpike, Suite 201, Short Hills, NJ 07078 973.379.6644 www.blauberg.com Since 1932, The Blau & Berg Company has held a leading position in the New Jersey and Tri-State commercial real estate market. As an independent, full service commercial brokerage firm, we provide an array of services in the industrial, retail, multifamily and office fields. . . . . .

8A — February 2023 — M id A tlantic Real Estate Journal


Great CRE Events Cont. Ed…Speakers…Networking www.CircDelaware.org


Economic Outlook At our February 8 Economic Outlook/Membership Lunch at DuPont Country Club,

—OFFICERS— President: Jay L. White , MAI, CRE® Apex Realty Advisory Vice President: Cindy Fleming Jones Lang LaSalle Treasurer: Barton L. Mackey, Jr. Patterson-Woods Associates Secretary: Daniel Wham DSM Commercial Real Estate *2022-2023* Board of Directors —DIRECTORS— Past President & Cont. Ed. Chair: Robert Stenta Chatham Financial Program Co-Chair: Lorraine Sheldon NAI Emory Hill

Mar. 8 (Wed., 11:30-1:30) Membership Lunch Topic: Location Intelligence's Role in Real Estate Speaker: Matt Felton, DataStory Location: DuPont Country Club April 12 (Wed., 11:30-1:30) Membership Lunch Topic: Trail, Rail and Transportation Update Speakers: Dave Gula and Heather Dunigan, WILMAPCO Location: DuPont Country Club May 10 (Wed., 11:30-1:30) Annual Meeting & Lunch Topic: New Castle County Reassessment Panel Discussion Panelists: Jay White, MAI, CRE-Moderator, Richard Forsten, At - torney, Tyler Technologies, New Castle County Location: DuPont Country Club Register online: circdelaware.org goto Event pages CONTINUING EDUCATION Classes Accredited: DE*PA*MD*NJ March & April, 2023 accredited real estate school/instructors: Frederick Academy of Real Estate March 8, 2023 (Wednesday) – DuPont Country Club Instructor: Andrew Taylor, Esq.

David B. Hanson, CPA, CFA, Chief Executive Officer of Fulton Finan- cial Advisors and Fulton Private Bank, was on hand to present an economic outlook (not a forecast!) that was very interesting and even somewhat optimistic. You had to be there. Were you? A crowd of over 120 attended and enjoyed great networking and fine foods and desserts!

(from left: David Hanson of Janet Dougherty, of Ful- ton Bank, and Jay White, CIRC President.)

Don't Miss Upcoming Events: Location Intelligence's Role in Real Estate (Matt Felton, DataStory) Trail, Rail & Transportation Updates (D. Gula/H. Dunigan, WILMAPCO) New Castle County Reassessment Panel Tyler Technologies, NCC, Appraiser & Attorney Make the Most of your CIRC Membership. Renew Today!

Program Co-Chair: Ryan Kennedy Harvey Hanna & Associates

Membership Chair: James Manna BrightFields, Inc.

8:30 a.m. – Real Estate Hot Buttons & Issues DE - Module 7 / MD, PA & NJ - Elective credits

—EX-OFFICIO— Business Manager Janet Pippert Landmark Science & Engineering Legislative Lobbyist C. Scott Kidner C. S. Kidner & Associates Legislative Affairs Chair Brett Saddler Claymont Rennaissance Dev. Corp. contact us (302) 633-1705 Janet@circdelaware.org www.circdelaware.org Donald Robitzer The Commonwealth Group Benjamin Berger , Esq. Berger Harris, LLC Carmen Facciolo NAI Emory Hill Michael Hahn 44 Business Capital Neil Kilian, SIOR, CCIM NAI Emory Hill Pamela Scott , Esq. Saul Ewing Arnstein & Lehr LLP

1:30 p.m. – Agency & Fair Housing DE - Module 1 Agency and Fair Housing MD - Fair Housing (1.5 hr Required, 1.5 hr Elective) PA - Fair Housing 3.5 Elective credits NJ - Fair Housing & NJ Law Against Discrimination 3.0 CORE April 12, 2023 (Wednesday) – DuPont Country Club Instructor: W. Duncan Patterson, CCIM 8:30 a.m. – Property Mgmt., Advertising & General Supervision

Jim Manna welcomes Charlotte Cook-Heidingsfelder, of CHCH Design

PA - New MANDATORY Course - 3.5 hrs. DE - Module 6 - Property Management MD and NJ - Property Management - Elective credits 1 :30 p.m. – Real Estate Documents Instructor: W. Duncan Patterson, CCIM DE - Module 3 / PA, MD, NJ - Elective credits

(from left): Donna Davies, Denise Ross, Lisa DeRose.

Left: CIRC welcomes (from left) Marcus Henry (Candidate for New Castle County Executive) and County Councilman John Cartier. Also shown: Janet Pip- pert, Brett Saddler, Leg. Affairs Chair, and Lorraine Shelcon, Program Co-Chair. Right: (foreground, from left) David Ken- ney and Michael Burcham

R etail D evelopment R eimagined

M id A tlantic Real Estate Journal — Retail Development Reimagined —February 2023 — 9A


The 203,907 s/f grocery-anchored shopping center is located at 111 Hulst Drive Larken Associates acquires Westfall Town Center in Matamoras, PA M ATAMORAS, PA — Larken Asso- ciates , a regional

executive vice president of Raider Realty , the in-house brokerage division of Larken Associates. “We look forward to continuing the repositioning and renovation program begun by the prior owner and holding the asset for appreciation and long-term cash flow.” David Iacobucci , chief in- vestment officer of Larken Associates added, “Finding success in today’s retail market requires an unmatched level of local market knowledge paired with deep expertise in leasing and property management. We take immense pride in our time- tested ability to identify and acquire retail properties that possess both strong in-place tenancy and long-term value creation opportunities. We look forward to continuing to add similar assets to our portfolio over the year to come.” MAREJ is a common occurrence for the KLNB Investment Sales Group and is a testament to the pro- fessionalism and unmatched knowledge of the team. “Marlboro Square has been a solid asset for ownership since we acquired it in 2017,” said Adam Steuer of Versa Real Estate , one of the sellers of the asset, “KLNB did an excellent job of marketing the center, vetting prospects, and making sure the deal got across the finish line. As an out of state operator, we relied on KLNB to bring the asset to fruition for the partnership.” With limited competition in the surrounding market, and only five other grocery stores in a five-mile radius, Marlboro Square serves as a central retail hub for the com- munity. Marlboro Square is in the county seat of Prince George’s County and 11 miles from Washington, D.C. The property is positioned along Crain Highway, and with di- rect access from Pennsylvania Avenue, the property enjoys nearly 100,000 VPD. MAREJ

leader in commercial and residential real estate build- ing, development and man- agement, announces it has ac- quired Westfall Town Center, a 203,907 s/f grocery-anchored shopping center located at 111 Hulst Dr. in Matamoras. Situated in Pike County along PA Rte. 6 just across the border from New Jersey and New York, Westfall Town Center is anchored by a brand- new 73,000 s/f ShopRite as well as a 25,000 s/f full-size TJ Maxx. Additionally, the shop- ping center boasts a diverse slate of complimentary retail tenants including Planet Fit- ness, Dollar Tree and a movie theater operated by Flagship Cinemas, a cinema company with theaters throughout UPPER MARLBORO, MD — KLNB , one of the Mid-At- lantic region’s largest privately held CRE brokerage firms, announced the $10.8 million 5715 Crain Hwy. in Upper Marlboro. The KLNB Retail Investment Sales Group of Vito Lupo, Chris Burnham, Andy Stape and Jake Fur- nary represented the seller, Marlboro Investors, LLC in the transaction of the 92,649 s/f shopping center. Renaud Consulting represented the purchaser. Anchored by a freestanding 37,981 s/f Weis supermarket, the 19-unit property is 100% leased with a strong mix of retail tenants that are well suited for the surrounding neighborhood demographics. These tenants include junior anchors Advanced Auto and Dollar Tree, and a variety of brands that encompass fitness, personal healthcare, food and beverage, and eyecare. In ad- dition, there is approximately 10,800 s/f of vacant land di- rectly adjacent to Weis provid- ing additional development

Westfall Town Center

and Walmart Superstore. “We are very excited about this recent off-market pur- chase in Pike County as it fits perfectly within our strategy to acquire well-located retail centers with value-add po- tential,” said Victor Kelly ,

Maine, Maryland, New Jersey, New York and Pennsylvania. A Wendy’s and Perkins Res- taurant are also situated on two outparcels at the center. Westfall Town Center’s strategic location is just a short drive from both New

Jersey and New York, plac- ing 106,394 people with an average household income of $95,663 within a 15-minute drive. The shopping center is also located along Matamo- ras’ retail corridor featuring a nearby Lowes, Home Depot

KLNB Retail Investment Sales Group secures $11M Washington, DC area shopping center sale

Marlboro Square

potential. Despite a lending environ- ment that continues to present challenges, and Weis’ relative- ly short remaining lease term, KLNB’s Retail Investment Sales Group secured seven first-round offers, leading to a competitive bidding environ- ment for the seller. “While grocery-anchored centers are an attractive asset

class, the short term nature of Weis made this sale par- ticularly challenging,” said KLNB’s Vito Lupo. “It takes a dedicated group of brokers to uncover the most qualified buyers and aggressive bids. Our firm understands the mar - ket, knows the submarket fun- damentals, and has unrivaled expertise in the dynamic retail sector. As a result, we analyze

each property we sell through both a leasing and sales lens, allowing us to position each listing in such a way that we can overcome property- specific hurdles and execute on complex transactions for our clients.” This is the second transac- tion KLNB has facilitated for ownership. Partnering with cli- ents on successive transactions

10A —February 2023 — Retail Development Reimagined — M id A tlantic Real Estate Journal


R etail D evelopment R eimagined By Joe Coradino, PREIT Retail Revolution: The Changing Landscape of Retail Development in 2023

hile the traditional mall model contin- ues to evolve amidst years of uncertainty, develop- ers are seeking to differentiate their retail offerings to keep up with consumer demand and current trends. With re- tail occupancy exceeding pre- pandemic levels in many cases, it is evident that physical stores have gained relevance. However, locations are now being chosen with strategic considerations, ensuring more dynamic options for consumers than ever before. Malls and shopping centers are now hubs for entertainment, food and W

digitally native brands, will continue to headline retail addi- tions. Should retailers continue to expand, the best retail centers will continue to attract new-to- market tenants. Shoppers are increasingly committed to diverse experi- ences including dining, en- tertainment, off-price, fast fashion and health & wellness. Particularly, dining and enter- tainment has grown in popu- larity in recent years. Several malls in PREIT’s portfolio have recently welcomed new brands in new markets, allowing the company to present a compel- ling, diverse portfolio. As the

mall experience continues to transform, it is essential that owners and developers are ac- tive in diversifying the tenant mix at their properties - add- ing elements seen less often at malls, like grocery anchors and medical centers. Moorestown Mall in Moore- stown, New Jersey is a great example of reshaping tradi- tional mall assets that are in competitive retail environ- ments. The mall offers a true community hub complete with dining, entertainment, fitness offerings – Planet Fitness and Orangetheory, as well as a value retail collection includ- ing HomeSense, Sierra and Five Below. And now under construction are Cooper Uni- versity Healthcare and a 375- unit apartment complex. These tenants are replacing a vacant Sears and underutilized land expanding utility for the com- munity and driving traffic to the property. While the economic backdrop certainly provides some chal- lenges for consumers, it is well- proven that an evolved mall experience including transfor- mation into community hubs with partnership from local partners is a more sustainable business model. Real estate owners of all varieties should always consider the highest and best use of their land - in the case of malls, which are horizontally situated snapping up vast swaths of land, this means going vertical - add- ing apartments and hotels to these sites. “Do-everything” centers are the future, and we’ll continue to see new-to- market experiences added to tenant mixes in 2023. You can buy groceries, see your doctor, dine out, and enjoy family fun in addition to shopping and socializing with friends. Also important to highlight, en- hanced safety and convenience measures such as contactless payment options and strong security are necessary compo- nents of any successful retail development project in the coming years. In 2023, retail real estate will continue to undergo major transformation. Unbeatable shopping experiences tailored specifically for today’s consum - ers is how retailers are reimag- ining and transforming the operation of their stores - and there is more to come. Joe Coradino is CEO of PREIT. MAREJ

Moorestown Mall

beverage offerings, and outdoor recreation opportunities like parks and trails. Incorporating

local, small, and diverse busi- nesses in addition to experien- tial tenants, value retail, and

F inancial D igest

M id A tlantic Real Estate Journal —February 2023 — 11A


501,907 s/f shopping center is in the Five Towns area of Nassau County, just east First American Title acquires title for 253-01 Rockaway Blvd., Woodmere, New York Houlihan-Parnes Realtors, LLC places $55M first mortgage on the Five Towns Shopping Cen ter W OODMERE, NY — James Hou- lihan and Bry-

a local bank for 10-year term with an interest-only rate of 5.42%. While we do live in a market with elevated inter- est rates, Houlihan-Parnes Realtors was able to negotiate beneficial terms should there be a shift in the market. Since 2017, the property has been anchored by The Goddard School of Westport, comprising over 65% of the space. Several smaller tenants include RE/MAX, GAC Ship- ping USA, and Chirag Shah Consulting. The borrower was represented by Elizabeth Smith and Cindy Albstein of Goldberg Weprin Finkel Gold- stein, and title insurance was provided by Wayne Baird of First American Title Insur- ance Company. MAREJ

of JFK In- ternational A i r po r t . The Center has a ro- bust tenant roster that i nc l udes L o w e ’ s Home Cen- ter, Stop &

an Hou- l ihan of Houlihan- P a r n e s Realtors, LLC an- nounced the placement of a first mortgage in the amount

James Houlihan Bryan Houlihan

Shop, TJMaxx, Ashley Fur- niture, Foot Locker, and Chick fil a. The borrower was represented by Eliza- beth Smith of Goldberg Weprin Finkel Goldstein LLP and title was acquired by First American Title . James Houlihan and An-

of $55 million on the Five Towns Shopping Center located at 253-01 Rockaway Blvd., Woodmere. The loan was placed with a local bank with a fixed rate of 5.75% for a term five years with 3 years Interest Only. The approximately

Five Towns Shopping Center

located at 20 Saugatuck Ave. in Westport, CT. Owned and operated by GHP Office Realty LLC, the 17,561 s/f building is fully leased and was acquired by the owners in 2014. The loan was placed with

drew Greenspan of Hou- lihan-Parnes Realtors, LLC and GHP Office Realty LLC announced the place- ment of $2.7 million of first mortgage financing on the class A mixed-use property

Cronheim Mortgage secures $11.5 Million for grocery anchored retail property located in Belleville, NJ

ELLEVILLE, NJ — Cronheim Mortgage has arranged $11.5 million in permanent financ - ing for a 70,450 s/f grocery- anchored shopping center located in Belleville. Alli- son Villamagna and Andrew Stewart secured the 12-year financing which amortizes over 25 years. The loan was placed with Farm Bureau Life Insurance Company , whom Cronheim represents as correspondent and servicer. The subject property is anchored by ShopRite who occupies 61,000± s/f and is complemented by a liquor store, Pizza Hut, and a jew- eler. The Subject underwent extensive renovations to bring in ShopRite after Pathmark vacated the center in 2010. This location is operated by Nutley Park ShopRite, Inc., who also operates the Shop- Rite in Nutley. The property has excellent visibility, with 840 feet of frontage, and great acces- sibility, with three points of ingress and egress along the north side of Washington Avenue. There is ample sur- face parking as well as an B

ShopRite anchored center located in Belleville, NJ

underground parking lot with capacity for over 140 vehicles. The underground lot is moni- tored by surveillance cameras and is serviced by a shopping cart elevator which provides direct access to the interior of ShopRite. Cronheim Mortgage has secured 75% LTC financing for the acquisition of The Cali- fornia Building in downtown New Orleans, LA. Originally an office building, the property

had been converted to class A multifamily. Currently, the units were leased as a combi- nation of both multifamily and short-term rentals due to the building’s unique advantage of holding a hotel license. The property is located adjacent to the French Quarter, Superdo- me and Tulane Medical Center providing an ideal location for both residents and visitors. The Sponsor, Servio Capital, plans to convert the building

to condos and sell units to both short term rental investors and owner occupants. The building’s unique ability to operate entirely as short-term rentals makes it an ideal in- vestment for those who want to enjoy part-time use of the units while also earning a re- turn by renting out their unit when not in use. David Turley , chief operat- ing officer of Cronheim Mort- gage , noted: “Capital markets

have changed dramatically in recent months. A compre- hensive marketing effort for debt is more important than ever, not only to ensure the best terms but also to create multiple options. We saw that pay off here when the initial lender ultimately could not get comfortable with the busi- ness plan and we were able to quickly pivot to another option without putting the Sponsor’s hard deposit at risk.” MAREJ

12A —February 2023 — Financial Digest — M id A tlantic Real Estate Journal


F inancial D igest

Cortese & Frankel secure loan through TriState Capital Bank D2 Capital Advisors arranges $8.5M refinance for office bldg.

Newmark’s Fromm leads financing team AAC refinances Renaissance Plaza for $7.5M in Atlantic City

requirements in order to not only apply for the bond, but also maintain the bond as well. It is key to understand these requirements when deciding step 1 noted above. The issuance of municipal government bonds is governed by state law, which results in varying processes and require- ments depending on the loca- tion of the property. For the State of New Jersey Most tax-exempt bond fi- nancing for housing is issued by the New Jersey Hous- ing and Mortgage Finance Agency (“NJHMFA”). Projects financed through the sale of tax-exempt bonds must com- ply with Section 142(d) of the Internal Revenue Code and the applicable U.S. Depart- ment of Treasury regulations. These bonds are also subject to a statewide volume cap for the funding of housing projects. Information for the financing of multifamily projects for the State of New Jersey is located on the NJHMFA’s website. For the State of New York Housing investment bonds for New York are done through the New York State Housing Finance Agency (“NYSHFA”), a department of the New York State Homes and Commu- nity Renewal. The NYSHFA “provides tax-exempt bond financing that generates ‘as-of- right’ 4% federal Low-Income Housing Tax Credits for multi- family rental housing projects developed by private for-profit and not-for-profit owners.” NYSHFA is authorized to allocate “as-of-right” credits to projects that also receive benefits from other state agen - cies, but the project would still be subject to monitoring by the NYSHFA. Information on ATLANTIC CITY, NJ — Ashkenazy Acquisition Corporation (AAC) , a pri- vate real estate investment firm, announced a year-end refinancing of $7.5M for Re - naissance Plaza, a 76,000 s/f grocery anchored shopping center located in Atlantic City. AAC received a 7-year fixed-rate loan from Provi- dent Bank as part of the refinancing of an existing loan that was maturing. The financing was brokered by a team led by Daniel Fromm , a senior managing director of the debt & structured finance team at Newmark .

bond financing of multifamily projects in New York is located on the Homes and Community Renewal’s website. For Other States Visit the website of the State Agency that is responsible for issuing the bonds. Common Requirements for Tax-Exempt Bonds • Qualified project • Low-income set aside • Rent restrictions • Subject to the terms of a regulatory agreement • At least 95% of the bond funds must be used for eligible costs • Must pass the 50% test 95% Test Under IRC Section 142, tax-exempt financing requires that 95% or more of the net proceeds be used to provide an exempt facility. In some cases, if the issuer fails to meet these spending requirements, it may remedy that failure by taking certain remedial actions. Only eligible costs are taken into consideration when determin- ing costs expended for the exempt facility. 50% Test Under IRC Section 42(h) (4)(B), “if 50% or more of the aggregate basis of any build- ings and the land on which the buildings are located is financed by tax-exempt bonds, then the credit is based on the entire eligible basis of the qualified low-income build- ings, regardless of the source of funds used to finance the qualifying costs. If less than 50% of the aggregate basis of the building and land are financed with tax-exempt bonds, then only the eligible basis actually financed with the tax-exempt bonds is in- cludable in eligible basis.” Samantha Hoyte, CPA, MBA, CFE, Withum. MAREJ “Despite the challenges brought upon by the pan- demic, this property has done exceptionally well,” said Joe Press , COO at Ashkenazy Acquisition Corporation. “Owning one-of-a-kind, irre- placeable assets will always be in demand.” “This financing is a testa - ment that strong sponsors like AAC continue to tap the debt capital markets even in these volatile times,” Fromm added. Ashkenazy Acquisition Cor- poration is a NY-based pri- vate real estate investment firm. MAREJ

OLLEGEVILLE, PA — D2 Capital Advisors has ar- ranged an $8.5 million refi - nancing for an 81,400 s/f of- fice building at 1000 Campus Dr. in Collegeville. Working on behalf of 1000 Campus Partners LLC (an af- filiate of the D2 Organization), D2 Capital Advisors’ Jack Cortese and David Fran- kel secured the loan through TriState Capital Bank. 1000 Campus Partners LLC acquired the building in June 2017 for $13.26 million, that acquisition financing was also arranged by D2 Capital Advi- sors. The building was fully leased to Iron Mountain on a long-term deal, but ownership was aware of Iron Mountain’s plans to eventually consolidate to their Royersford, PA loca- tion. In November 2020 own- ership came to an agreement with Iron Mountain, who had several years left of their term, on a buyout of its lease at 1000 Campus Dr. The loan proceeds will be used to refinance the acquisi - tion debt and provide funds for C FORT LEE, NJ — Unity Bank has opened a new full service branch in Fort Lee, increasing its service footprint to 20 branches and enhancing its retail presence in Bergen County. The new branch is located at 899 Palisade Ave. at the intersection with Co- lumbia Ave. “We are committed to Ber- gen County and Fort Lee is a natural fit to our footprint,” said Unity Bank President & CEO James A. Hughes. “Bank- ing services at the branch level are increasingly important to our customers, particularly small business owners who still, even in the age of elec- tronic banking, rely on branch- es. Community banks are engines for economic growth and we are focused on bringing that drive to Bergen County.” Unity is bringing a local fla - vor to the 1890 s/f branch. The facility features the abstract landscape oil paintings of Ber- gen County artist Sol Zaretsky of Teaneck. Unity purchased several of Zaretsky’s paintings through its program to support local artists in communities where it has branches. The facility, previously oper- ated by another bank, includes

1000 Campus Dr.

capital expenditures, tenant improvements, leasing com- missions, and carry costs. “This financing provides a lot of flexibility to market the property that most office land - lords do not have right now,” said David Frankel, COO of D2 Capital Advisors. “Executing a new loan on a vacant office building speaks volumes to the business plan, our relation- ships, and the property itself.” The owner plans to re-tenant the now vacant building and has the by-right ability to build another 80,000 square foot property on the 18-acre site.

For additional development, the site has received interest for life sciences, residential, and self-storage development. 1000 Campus Dr. is situated in the 340-acre master planned Providence Corporate Center. It is located at the intersection of Route 422 and Route 29. The immediate area offers a deep talent pool and more af- fordable office rents than the neighboring King of Prussia sub-market. Its proximity to the GSK, Dow, and Pfizer campuses has attracted atten- tion from life science users and developers. MAREJ

Tax-exempt bond financing . . . continued from page 2A

Unity Bank opens Fort Lee, New Jersey branch

Unity Bank

dedicated parking and drive- up banking and ATM services. Surrounding businesses in- clude an insurance company, salon and a dentist. Ryan Peene , Unity Bank’s senior vice president/chief depository officer, who is well known in the Bergen County and Hudson County communi- ties for his leadership roles on the City of Hoboken Planning Board and Greater Bergen Community Action, leads the development of the Fort Lee branch and all of Unity’s retail banking operations. The Fort Lee team also in- cludes Franca Fabrizio , area manager; Sunita Pereira , operations manager; Vince

Forma , commercial lender; Kathleen Hay , SBA lender; and mortgage lenders Nicho- las Aversa and Pasquale Grande . Fort Lee is the second new branch opened by Unity in the last two months. In December, the bank opened a branch in Lakewood in Ocean County. Unity Bank now provides financial services to retail, cor - porate and small business cus- tomers in Bergen, Hunterdon, Middlesex, Ocean, Somerset, Union and Warren Counties in New Jersey and Northampton County in Pennsylvania. The bank holds about $2.4 billion in assets and $1.8 billion in deposits. MAREJ

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