14B — February 10 - 23, 2017 — New Jersey — M id A tlantic

Real Estate Journal


N ew J ersey

AdvanceRealtysigns16,201 s/f lease in Bridgewater

For assisted living facility in East Windsor Kennedy Funding Financial closes $1.705 million loan

BRIDGEWATER, NJ — The partnership of Advance Realty and CrossHarbor Capital Partners, LLC an- nounced that biotechnology company Clinical Genomics has signed a 16,201 s/f lease at the New Jersey Center of Excellence (NJCOE) in Bridge- water. The lease is an expansion for Clinical Genomics, which

was appointed executive di- rector in 2013. In her various roles at PlanSmart NJ she helped to advance initia- tives that promote economic development, environmental protection, social equity, and resource efficiency. Through her leadership she has helped move New Jersey into the vanguard of thoughtful, bal- anced regional planning. During her tenure, Ann has become a credible and much sought-after voice for repur- posing underutilized office and retail centers and has seen PlanSmart NJ become recognized as the state’s lead- ing independent planning organization. n Advance’s master plan for NJCOE calls for 400 luxury residences as well as numerous amenities of urban life, such as restaurants, a wellness center, a grocer, entertainment, shops and outdoor recreation — all amidst the serene backdrop and rolling hills of Central New Jersey’s Somerset County. n urban-sophisticate tenant base,” said Nicolaou. “This particular demographic wants a combination of luxury sub- urban and semi-urban living, with proximity to outdoor rec- reation, shopping and dining.” Like Cedar Wright Gardens, Nob Hill offers ease of access to a vast local, regional and national highway infrastruc- ture as well as mass transit options that include NJ Tran- sit bus and nearby rail service. Long recognized as popular bedroom communities of NYC, Lodi and Roseland are 18 and 21 miles from Manhattan, respectively. Gebroe-Hammer is the lead- ing multi-family investment sales brokerage firm in NJ and the entire tri-state region. In 2016, the firmclosedmore than 132 deals involving 12,117 to- tal units sold for $1.83+ billion while concentrating on subur- ban and urban high-rise and garden-apartment properties throughout the Northeast and nationally. Gebroe-Hammer also markets mixed-use and free-standing office and retail properties. Widely recognized for its consistent sales perfor- mance, the firm is a 12-time CoStar Power Broker. n has been a tenant at NJCOE since 2015.


struction , a method in which concrete wall panels are cast and tilted into place. It is faster and less expensive to use than brick. These new buildings are built with required ESFR high- density sprinkler systems and high density amplified lighting. Most big box buildings fea- ture 38 ft. ceilings, as compared to 24 ft. in older buildings. This allows the tenant to better uti- lize the space and stack prod- uct high, which in turn allows them to use less square footage. Other differences include big- ger loading doors, levelators, which bridge the space between and loading dock; and truck and larger areas for trucks to maneuver. Years ago, tenants needed 100 ft. for a truck. To- day, you need 130 to 140 ft. for trucks. These buildings are also developed with extra property to store trailer trucks on site. In 2017 we can expect to see another strong year for indus- trial real estate. I believe it will be an exciting one too. David Zimmel is CEO of Zimmel Associates in Edi- son, NJ, a full-service corpo- rate real estate services firm that is consistently awarded Power Broker and All-Star status. Over the past three decades he has participated in more than 3,500 closings, which include $10 billion in commercial real estate investment sales. n As senior housing occupancy has increased along with the aging population, he said, there are solid opportunities for in- vestment. The Trenton area, he added, has a high population with major employers such as Princeton University. n closed in December. But he also came away with something else — a positive experience and a valuable rela- tionship with Kennedy Funding Financial. “I found them to be honest, up-front and knowledgeable,” Michaelessi said. “Through all the difficulties, they fully supported me throughout the process.” Kennedy Funding Financial principals have closed more than $2.5 billion in loans to date for projects close to home and around the world. This project was attractive, Kennedy Funding Financial CEO and president Kevin Wolfer said, because of a need for senior housing.

ronmental and other upgrade requirements necessary for renting it out. It is certainly doable. Last year, we handled the sale of an older building to an expe- rienced developer who com- pletely overhauled the building. We were awarded an exclusive listing for it, experienced a high level of activity and secured a buyer within three weeks. Big Money Wants to Invest in Industrial There i s a t remendous amount of money on the side- lines, meaning REITs, hedge funds, private investors and more are looking to invest in in- dustrial real estate. It remains a highly popular investment with a very strong audience looking to invest. If you can buy today and finance for ten years and the rental covers your debt, invest- ing looks attractive. Big Box Leads Speculative Building We do see more new construc- tion and speculative building. It is primarily big box, 400,000 to 500,000 s/f and up; built for users that need 200,000 to 600,000 s/f. This is exciting and due in no small part to the expansion of e-commerce, but it does not address the lack of flex and mid-sized units required by smaller companies. New big box spec buildings are built using Tilt-Up con- Cliffs, but had never worked with them. Michaelessi knew the company had a reputation for being able to close quickly, and that’s just what he needed. Even with the optimism in the lending market over the easing of credit, it can still be difficult for developers to secure commercial real estate loans from conventional lenders. That’s where a direct private lender like Kennedy Funding Financial steps up. Securing lending from a direct private lender is a different process than going to a bank for a loan. Financing is secured based on the value of the collateral of the property, not simply the bor- rower’s credit. The process in- cludes appraisal, environmen- tal inspections, title searches, and providing a repayment plan and exit strategy. Michaelessi got what he needed for his White Plains- based Hudson Capital Group client as the $1.705 million loan to EW Acquisition LLC was

ast Windsor, NJ — After 30 years in the mortgage business, not

much can sur- prise Larry Michaelessi. But when he shopped a land loan for an assisted living facility in East Wind- sor, he kept

After nearly 25 years of service to PlanSmart NJ, exec. dir., Brady is retiring

Kevin Wolfer

T r e n t o n , N J — PlanSmart NJ’s executive director, Ann Brady , has

landlord will put their current space on the market unless they renew a few months in advance. Industrial Investments We will see more industrial buildings being put on the mar- ket for sale if interest rates continue to rise. Three to four rate hikes during the course of 2017 could mean a one point or a point and a quarter increase by year’s end. When potential sellers see the bottom of the interest rate run, they will move forward. When a rental building’s sale price is based on a cap rate, the lower the interest rate, the higher the price the seller gets for their building. This sup- ports more off-market deals. Brokers who are highly active have first-hand knowledge of potential buyers and sellers. Many investors in New Jer- sey industrial real estate prefer to buy existing buildings rather than build from scratch because the approval process to buy land and build new can take 18 months to two years. Lack of adequate parking and ample room for today’s larger trailer trucks to maneuver are issues for some older industrial buildings. An investor has to expertly uncover all expen- ditures they will have to put into an older building to meet the power, fire safety, envi- Then Michaelessi came across a story about Kennedy Funding Financial in Scots- man Guide . He had heard good things about Kennedy Fund- ing Financial, a direct private lender based in Englewood getting turned down. Seven times, in fact. Traditional lenders, he found, are hesitant to do land loans in the assisted living sector. Concerns include overbuild- ing, developers overestimating income potential, and regula- tions regarding how much risk a lender can take on.

informed the Board that she is retir- ing. Brady has been a dedi- c a t e d em- p l oyee f o r n e a r l y 2 5 y e a r s and

Ann Brady

she brought a unique com- bination of planning and business skills to the orga- nization. Brady joined PlanSmart NJ (then MSM) as a planner in 1992, and quickly became the managing director and

continued from page 12B New Jersey’s industrial real estate market in 2017. . .

continued from page FC-A Gebroe-Hammer Associates closes two nine-digit North Jersey multi-family . . .

shops, first-class offices and dining establishments rising at the former Curtiss Wright airplane factory site, surround the station. “The introduction of new- ly constructed multi-family product in the area is having a positive influence on exist- ing garden and low-, mid- and high-rise assets like Cedar Wright Gardens, bolstering market fundamentals and fueling heavy demand,” said Pine. On the heels of the Cedar Wright Gardens sale was the $130 million trade of Nob Hill Apartments, a sprawling 360-unit garden-style com- munity in suburban West Essex County. In addition to offering a broad selection of apartment-home layouts, com- munity spaces and facilities, Nob Hill’s prominent profile is linked to its superior, pictur- esque location tucked into the base of a low-rise mountain. “Investors are clamoring for assets like Nob Hill where they can expand upon in-place capital improvements to aug- ment existing amenities – and even expand upon them – in order to appeal to the area’s

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