46A — June 22 - July 12, 2012 — Mid Atlantic Real Estate Journal
www.marejournal.com
M ID A TLANTIC R EAL E STATE J OURNAL
Located in Long Branch & Wall, NJ Emerald Creek issues $2,800,000 loan secured by 2 retail properties
By Joseph Langan, River Drive Const. Why now is the time to upgrade your business . . .
W
ALL, NJ — Emer- ald Creek Capital issued an eighteen-
trial market, with an increase in leasing velocity, a decline in vacancies and sizable trans- actions paving the way for recovery, according to Cassidy Turley. The vacancy rate in the Central New Jersey subsector fell to 9.1 percent in Q4 from 9.4 percent in Q3, marking three consecutive quarters of positive demand. While industrial vacancies, at least in Central New Jersey, remain at historically high lev- els, there has been considerable improvement since the end of 2010, when the rate was 10.4 percent, the report said. The Exit 8A submarket dem- onstrated the strongest leas- ing activity in the Central New Jersey submarket, with 490,423 s/f of positive demand in Q4 and 1,514,880 s/f for the year. River Drive Construction has recently done a number of projects at Exit 8A, including a $1.3 million, 600,000 s/f project for Synnex in South Brunswick, which Cassidy Turley counted as one of the most noteworthy leases of year in the Central New Jersey submarket. The prediction of industry ob- servers is that commercial real estate leasing activity will in- crease throughout 2012, result- ing in reduced opportunities for tenants, increased rental rates and decreased landlord concessions. These trends are expected to pick up as com- panies expand in response to increased consumer spending and GDP growth. But while the commercial real estate market may be turning around, the construction indus- try isn’t — not yet at any rate. Although it’s getting stronger, as of October, 2011 (the lat- est data available) the state’s construction payrolls were five percent below the June 2009 level, when the national reces- sion was officially deemed to be over, with employment in the construction industry expected to decline further in 2012. Which means that many in the construction industry are looking for work. This unique confluence of factors — avail- able cash, a still depressed but improving commercial real estate market and a local construction industry that has yet to rebound — makes now the ideal time for companies to renovate, expand or relocate. Joseph Langan is president and CEO of River Drive Construction, Elmwood Park, NJ. ■
continued from page 2A portunity closes. The increase in demand for corporate fit-outs is good news for New Jersey’s downtrodden construction industry. While large, ground-up projects are the goal of most builders, it is corporate fit-out work that is often their bread and butter — a steady flow of which is what pays the bills and keeps the ship afloat. Moreover, an increase in corporate fit-out work is often the harbinger of a full-fledged recovery. At River Drive Construction, we have seen a bump up in corporate fit- out work since the beginning of the year. The same is true for renovations of industrial prop- erties, particularly at the New Jersey Turnpike’s Exit 8A. This is no surprise. U.S. companies are sitting on a lot of cash. In a recent report, Moody’s said the 1,600-plus U.S.-based companies it rates had $1.2 trillion in cash at the end of 2010—11.2 percent more than a year earlier. With memories of the sever- ity of the recent downturn still vivid, many companies are still reluctant to hire. But they do seem to be willing to open up their moth-infested wallets to spruce up their surroundings or make the jump to higher quality space, especially with rents poised to start moving back up. In the Central New Jersey subsector, for example, the office market posted positive, albeit minimal, net absorption for 2011 for the first time since 2005, while average asking rent increased $0.12 over the previous year, coming in at $23.24 psf, according to the 2011 Q4 report from Cassidy Turley Commercial Real Estate Services. “Overall,” the report con- cluded, “the annual numbers indicate that market activity has increased in comparison to previous years, and this year’s positive absorption is a welcome sign that confidence among tenants is improving.” One of strongest sectors in terms of leasing activity is life sciences, reflecting New Jersey’s position as a pharma- ceutical industry hub. River Drive has recently secured a number of contracts for cor- porate fit-outs in the life sci- ences sector, including a 19,000 s/f, high-end tenant fit-out for Asubio Pharmaceuticals Inc. in Paramus. The same is true in the indus-
NEWARK, DE –First State Endocrinology, P.A., a sub- sidiary of Christiana Care Health Sys- t ems , ha s leased Suite 100 of the H a m p t o n B u i l d i n g a t 1 0 8 2 C h u r c h - mans Road in Newark to open a second facility for Jim O’Hara, Jr. Situated on 1.15 acres on Route 35, the property in Wall, NJ totals 13,200 s/f and is also currently occupied by three tenants. “With allocations for a partnership buyout, soft costs, and Cap Ex, there were a lot of moving parts,” noted Jeff Seidler, Emerald Creek Capital’s senior vice president: “By focusing on the underly- month $2,800,000 loan secured by retail properties in Long Branch, NJ and Wall, both in Monmouth County. Situated on a 3.2 acre site adjacent to Mon- mouth Racetrack, the property in Long Branch totals 28,000 s/f and is currently occupied by three tenants. Allocations were made to improve the value of the collateral by subdividing an outparcel.
Wall, NJ
tan, NY. Emerald Creek Capi- tal provides loans secured by all kinds of commercial real estate. The firm provides loans to middle market borrowers, gen- erally in the amounts of $1-20 Million. ■
ing real estate fundamentals, we were able to execute very quickly.” Emerald Creek Capital has enjoyed success nationwide, but is especially active in and around itshomebaseofManhat-
its practice. Dr. Ripudaman S. Hundal, M.D., owner of First State Endocrinology, is a gradu- ate of Yale and the Albert Einstein College of Medicine. The practice’s other office suite is located in Ketlay Plaza in Middletown. JimO’Hara, Jr., a principal of NAI Emory Hill, repre- sented landlord Hampton Point Corporation in the lease transaction of 2,096 Philadelphia for a sale price of $275,000. The property was owned by the Richard Cohen family who built many one story buildings in the will appear in on-camera interviews discussing their experiences and sharing in- sights into their challenges and successes. “Our earlier venture, CFO Studio, continues to achieve tremendous success in dispel- ling the old stereotypes that finance executives are merely green eyeshade numbers fund manager in the ranking, based on 2011 revenues. To be eligible, companies must be at least 51 percent independently owned by minority individu- als. Hudson, which was founded by Managing Directors Da- PHILADELPHIA, PA — Marvin Baron, of Sidney E. Gable Associates, Inc. sold a 10,000 s/f one story building at 906-10 E. Lycoming Street, Baron of Sidney E. Gable Assoc. completes sale SOMERSET, NJ—Andrew Zezas, SIOR, CEO of New Jer- sey based Real Estate Strate- gies Corporation, and Host of CFO Studio, announced the launch of the company’s new- est venture, General Counsel Studio, an online promotional venue where general counsels and chief legal officers from New Jersey area companies Real Estate Strategies Corp. launches General Counsel Studio NEW YORK, NY — Hudson Realty Capital LLC (Hudson) has been named one of the New York area’s largest minority- owned companies for the fourth year in a row. The firm placed #12 among the Top-25 compa- nies and is the only real estate Hudson ranked among NY area’s largest minority-owned firms O’Hara of NAI Emory Hill reps landlord in 2,096 s/f lease to First State Endocrinology s/f. The remainder of the total of 12,000 s/f of space in the Hampton Building is still available for lease. The elevator-served building is in close proximity to Christiana Care Hospital just off Rt. 7 and I-95. Christiana Care Health System, headquar- tered in Wilmington, is one of the country’s largest health care providers, ranking 17th in the nation for hospital admissions. ■ Hunting Park Avenue area. The buyer was PAJO Fam- ily Realty who was repre- sented by ReMax Access Company. ■ people and in promoting New Jersey area CFOs as diverse and sophisticated business executives” said Andrew Ze- zas. He added “In many re- spects, the General Counsel has had similar experiences, often being mistaken as “the legal person” and the person to read contracts and defend against a law suit.” ■ vid Loo and Richard Ortiz, along with Sanford Herrick, has closed $3.5+ billion in transac- tions since its inception in 2003. Last year, the company funded more than $120 million in new originations and $400 million in loan portfolio acquisitions. ■
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