- DC
Alan Cafiero & Ben Sgambati represent sellers and procure one buyer Marcus & Millichap sells two NJ shopping centers for over $29 million P ARAMUS, NJ — Mar- cus &Millichap , one of the leading commercial
ISSUE HIGHLIGHTS Volume 27 Issue 15 August 14 - 27, 2015 Financial Digest Featuring... Multi-Family Financing
real estate investment servic- es firmwith offices throughout the United States and Cana- da, arranged the sale of two Northern New Jersey shop- ping centers in June 2015 for over $29 million, according to Brian Hosey , regional man- ager of the firm’s New Jersey office. One of the properties is the Sprout Brook Shopping Center, a 21,875 s/f multi- tenant retail center in Para- mus, that sold for over $680 psf, which is one of the highest prices per square foot paid for a multi-tenant center in New Jersey. The other multi-tenant asset is Franklin Commons, a 43,327 s/f neighborhood shop- ping center and medical office building that brought $14.825 million or $342 psf. Alan Cafiero and Ben Sgambati , vice presidents investments in Marcus & Millichap’s New Jersey of-
9-18A
NJ’s Company of the Month
Sprout Brook Shopping Center
Franklin Commons
fice, represented both sell- ers, and procured the Sprout Brook Shopping Center buyer. John Abuja , vice president investments in Marcus &Mil- lichap’s Chicago Downtown office, secured the purchaser of Franklin Commons. Both assets were acquired as part of a 1031 exchange transaction. “The strength of New York City’s job market has given stability to the Northern New Jersey retail market,” said Cafiero. “The vibrant econ-
omy, readily available low- cost financing and dropping vacancy are fueling investor demand.” “For the past year, the mar- ket has been dominated by local investors and buyers from across the Hudson,” adds Sgambati. “In particular, exchange buyers from New York City remain active in the market. Time constraints associated with 1031 transac- tions are prompting aggressive bidding and many of these
investors are accustomed to higher-pricedmarkets, driving Northern New Jersey prices upward.” Sprout Brook Shopping Cen- ter is located on 2.4 acres at 556 Rte. 17 North in Paramus. Rte. 17 has a traffic count of 150,000 cars per day. At the time of the sale, the center was fully occupied. Built in 2007 on five acres, Franklin Commons is locat- ed at 454 Elizabeth Ave. in Franklin Township. n multitude of uses, including “E-commerce” fulfillment. Topping the list of Heller’s design advantages will be the ability to store class I to class IV commodities in racks to a maximum of 40’ without the need for in-rack sprinklers. Next is the ESFR sprinkler system, designed specifically to operate without the need of a fire pump, saving the substantial and ongoing cost of frequent testing and main- tenance. Third is the clever interior roof-column layout, which allows the customer to install either standard aisle or narrow aisle pallet racking, without ever having a column protrude into an aisle. “Site work commenced this week,” according to Steve Adamowitz , executive vice president of I. Heller Con- struction Co., Inc . “The building should be under roof before winter sets in, and inte- rior tenant fit-out can continue throughout the winter.” n
TFAB Group, LLC
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Feinberg Real Estate Advisors represents seller in $4.65 million sale in Allentown, PA
Heller Industrial Parks breaks ground on new 285,000 s/f ind. warehouse/distribution center
SOUTH BRUNSWICK, NJ — Heller Industrial Parks has broken ground on a 285,000 s/f industrial warehouse / distribution cen- ter at Heller Park North in South Brunswick. The newest building in the New Jersey Turnpike Exit 8A submarket will re-affirm Heller as the
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leader in industrial develop- ment in central New Jersey by setting new standards for building design and land-use efficiency. “This new building is part of Heller’s long-stand- ing strategic plan to develop the best buildings in the best locations,” said Brian Ban- aszynski , president of Heller Industrial Parks. “We have been diligently monitoring the market demand for class A product, and determined it is an appropriate time to proceed with this new building on a speculative basis. Given the advantageous building design and the market condi- tions throughout Northern and Central New Jersey, we are confident that this new facility will be leased quickly.” The size of the building when it was originally de- signed was 350,000 s/f, maxi- mizing the building envelope with little regard to trailer and car parking. Heller’s new- ly approved design now offers full depth 190’ truck courts al- lowing ample room for trailer storage across from the docks, with other land available on- site for additional cars and/or trailers if needed. The current design allows for the build- ing to be easily adapted for a Rendering of 285,000 s/f industrial building at Heller Park North
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Jose Cruz, Senior Managing Director — HFF Jose Cruz is a Senior Managing Director in the New Jersey office of HFF with over 21 years of experience in commercial real estate. He specializes in investment sales in New Jersey, New York State and Connecticut. Over the course of his career, Jose has been involved in over $18.4 billion of office, industrial, retail, multi-housing and land sales. Mr. Cruz joined the firm in March 2010. Mark M. Scott, Founder/Principal — Commercial Mortgage Capital Corp. (CMC) | Mark M. Scott established Commercial Mortgage Capital Corp. (CMC) in 1996. Since then he has arranged over $6.1 billion dollars of debt and equity for his clients. His focus over a 25-year career has been multifamily finance. Scott continues to expand CMC’s strong commercial lending platform in New Jersey and the Tri-State Region. In April 2009, Mark appeared on Bloom- berg TV as a guest speaker regarding commercial real estate finance. Timothy Touhey, CRE Team Leader — Investors Bank Timothy Touhey is a CRE Team Leader at Investors Bank, in charge of expanding the Bank’s Commercial Real Estate Finance Group into the Southern and Central New Jersey, Philadelphia and Delaware markets. Tim brings to Investors broad expertise in financial services, construction, housing and urban development, government affairs, and relationship building across many industry sectors. Alan R. Hammer, Partner — Brach Eichler LLC Alan Hammer joined Brach Eichler, LLC immediately after gradua- tion in 1971. He is former Managing Partner and a member of the Executive Committee and Real Estate Practice Group. He has concen- trated his practice in the areas of investment real estate transactions and tax appeals. He has been personally active in the acquisition, own- ership, management and operation of investment properties, primar- ily apartment complexes, throughout NJ and Eastern Pennsylvania. Mitchell Berkey, Co-Chair, Real Estate Group —Chiesa, Sha- hinian &Giantomasi | Mitchell Berkey is co-chair of the firm’s Real Estate, Development and Land Use Group. He concentrates on all as- pects of real estate ventures and transactions, including acquisitions, sales, financing, development, leasing, management, loan workouts, ownership restructuring and resolution of intra-ownership disputes. His extensive background spans all asset types, including office, retail, industrial, hospitality and mixed-use properties. Brian J. Whitmer, CCIM, Senior Director | Capital Markets Group —Cushman &Wakefield of NJ | Brian Whitmer serves as Senior Director of the Metropolitan Area Capital Markets Group in C&W’s East Rutherford, New Jersey office. Part of a 13-member team, Whitmer is responsible for managing, underwriting, and marketing investment properties for sale and arranging joint ventures in the sub- urban markets surrounding New York City. While he handles all asset types, his focus is on multifamily transactions. Paul Heilmann, Senior Vice President — Columbia Bank Paul Heilmann is Senior Vice President of Commercial Real Estate Lending and Commercial Construction Lending at Columbia Bank, one of New Jersey’s leading community banks with Total Assets of $4.3 Billion and 44 Branches. Heilmann is a member of the Bank’s Commercial Loan Committee and Senior Loan Committee. His re- sponsibilities include oversight of two lending groups. Prior to joining Columbia in 2004, he was the SVP of Commercial Lending at Penn Federal, a Newark, NJ based bank for 10 years.
Joni Sweetwood, Senior Vice President — The Kislak Com- pany, Inc. | Sweetwood joined The Kislak Company, Inc. in 1996. As both a senior vice president and sales associate, she is a leading producer, manages client relationships and transactions and has man- aged and mentored sales trainees.Throughout her career, Sweetwood has represented clients in multiple industries throughout New Jersey, including real estate, accounting and finance. John Motzel, Senior Vice President of Originations —Berka- dia Commercial Mortgage | Based in New York City and Shrews- bury, New Jersey, John Motzel is actively involved in originations of multifamily and commercial real estate financing throughout the United States. Berkadia Commercial Mortgage is a leading principal and intermediary providing debt and equity solutions for multifamily and commercial real estate nationwide. We serve as an national Fred- dieMac, Fannie Mae DUS and HUD Seller/Servicer. Ronald M. Shapiro, Executive Director — Rutgers Business School’s Center for Real Estate Studies | Ron Shapiro is Execu- tive Director of the Rutgers Business School’s Center for Real Estate Studies (“CRES”). As Executive Director, Ron has responsibility for developing the strategic vision and long term planning for CRES. He has full oversight and management of all outreach activities including creating executive education programs in real estate. Elie Rieder, CEO/Founder — Castle Lanterra Properties Elie Rieder is the Founder and Chief Executive Officer of Castle Lanter- ra Equity and Castle Lanterra Properties. An active real estate investor, owner and manager since 1998, Elie has been directly involved in ac- quiring in excess of 10,000 multifamily units and has invested across the real estate spectrum in residential, office, hospitality, retail and parking. Elie Rieder specializes in value-add acquisitions. Mark DeLillo, Managing Partner — BlueGate Partners Mr. DeLillo has 17 years of institutional real estate and finance experi- ence, and has contributed to the successful completion of more than $9 billion in multifamily, retail, office and land development investment sales, financing, joint venture and acquisition assignments. Prior to co- founding BlueGate Partners, he was a Managing Director & Partner of DTZ Rockwood, an international property advisory firm, where he worked for 11 years. Len Nitti, CPA, MST, Principal —Wilkin & Guttenplan, PC Len Nitti joined the firm in 1999. Len has a broad range of clientele including closely-held businesses, real estate entities, high net-worth individuals, professional athletes, officers of major corporations and not-for-profit organizations. Len’s knowledge in Federal and State taxation encompasses planning, research and audits. Major areas of taxation include partnership, state and local, green energy incentives and low income housing tax credit projects. Doug Root, Senior Managing Director — Greystar Doug Root is a Senior Director of Investments on the East Coast. He is primarily responsible for acquisitions and dispositions for the Mid- Atlantic and the Northeast. Previously Root was an Acquisitions As- sociate with Invesco Real Estate. During Mr. Root’s tenure at Invesco he assisted with sourcing, underwriting, and closing over $2 Billion of acquisitions. Prior to Invesco, he competed on the ATP professional tennis tour for 3 years. Mr. Root holds an MBA from Cornell Univer- sity’s Johnson Graduate School of Management.
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Mid Atlantic R eal E state J ournal Publisher ............................................................................ Linda Christman Publisher ............................................................................... Joe Christman Section Publisher .................................................................... Steve Kelley Associate Publisher .............................................................Alissa Aronson Associate Publisher ..........................................................Barbara Holyoke Senior Editor/Graphic Artist .................................................Karen Vachon Production Assistant ....................................................................Julie King Office Manager .................................................................... Joanne Gavaza Mid Atlantic R eal E state J ournal — Published Semi-Monthly Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 312 Market St. Rockland, MA 02370 USPS #22-358 | Vol. 27 Issue 15 Subscription rates: $99 - one year, $148 - 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
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The Real Estate Side of Oil and Gas Royalties Alfred C. Teran, Patriot Energy W henever we hear the word “real estate” what comes to mind is the traditional categories of property we see and live in on a daily basis. There is Farmland, Ranchland, raw land, brick and mortar, commercial properties, multi-family structures and our homestead, all of which affect our daily lives in a positiveman- ner. These types of real property provide a variety of financial gain by generating cash flow or a revenue stream to the owner of these assets. Outside of our homestead, most real estate properties have an investment appeal that attracts all of us to one or more categories of real property assets. There is an additional benefit to own- ing one or more categories of property assets, and that is the appreciation of value most real estate provides, meaning that the initial purchase price of the property will grow in value once it is sold in future years. There is another category of real estate and real property not very well known by many of us and not readily available to ev- eryone. However, this category of real estate provides the same benefits as the traditional real estate we all understand. The greatest appeal to the purchase of real estate and real property is the fact that there is the pride of ownership that attracts all of us when we own an asset as part of our investment portfolio. The category of asset and real property I will introduce you to in this article will offer you the same benefit of “ownership” and a property class with the ability of appreciating in value with capital gains, all the while providing an income streamyou are looking for. You will also find it interesting to know that there is a secondary market for selling and liquidation of royalties that follows the same pattern as selling traditional real estate property. The real estate class I am speaking of is located sub- surface to the traditional real estate raw land or farmland or ranch land we know and understand. In particular, this property asset is classified as Oil and Gas Royalties, and is the real property that provides the revenue streamor income to the owner of the land and paid
J.D. Parker Manhattan
Brian Hosey New Jersey (201) 582-1000 Bryn Merrey Washington, D.C. (202) 536-3700
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to the landowner free of any ex- penses. The landowner not only owns the surface of the earth but often times owns the valu- able sub-surface minerals. This landowner is rewarded by the drilling operator a percentage of the oil and gas production in the form of cash revenue better known as “royalties”, without any expenses or cash calls con- nected to the drilling operation. The drilling operator must incur all of the expense and liability and will continue the development of drilling opera- tion on the property for years to come. This relationship between landowner and drilling operator exists because the landowner is “rich” in land and oil and gas minerals, and the drilling operator is “rich” in experience, technology and capital. On a broader scale, this re- lationship between landowner and drilling operator has taken place for decades and for over a century, billions of dollars of valuable “real property” known as royalties has been developed and continues to be developed on a daily basis. If you are familiar with the big major oil operators located on Wall Street such as Exxon-Mobile, Texaco-Shell, Chevron, Chesa- peake, Anadarko and the many thousands of operators, every time they drill on a landowners property, valuable royalties are created. The landowner and the royalties he receives represents the win, win side of the equa- tion since he assumes not one ounce of risk, only the publicly traded oil operator assumes all risk and capitalization for the drilling. It is important to understand this particular relationship between the landowner and the drilling operator so as not to confuse this, with a drilling investment many of us have been involved with. There is a big difference to a drilling program in which an “inde- pendent drilling operator” uses your money to look for the oil.
A drilling program is different, in that it is a highly speculative venture and often time’s leads to less than expected results. This article is to direct you to the opportunity where the oil and gas has already been discovered, developed and gen- erating “cash flow”. This type of venture is associated with the publicly traded wall-street operators who are highly capi- talized to develop a property for many generations, and do not use your money for the drilling operation. This valuable asset, although not visible to the naked eye, has been the focus of major institutions, foundations, hedge funds, pension plans, uni- versity endowment funds as well as equity funds for over a century. It is this asset class that provides pure cash with no maintenance and no liability all the while appreciating in value and with no cash calls. If you are an individual inves- tor wanting to know what the proper application would be to owning a royalty property in your portfolio, understand that if traditional real estate is your interest, then royalties will fit this traditional role. A royalty property will provide you the monthly revenue stream with double digit returns you look for in rental property, such as multi-family housing, of- fice buildings, and triple net lease properties. Royalties can be replacement properties for Like-Kind Exchanges and IRC- 1031 transactions, suitable for Qualified Plans like IRA’s, Roth IRA’s Profit Sharing Plans, inside of a Family Trust, Fund a College Program for children, and finally by donating a roy- alty property to a Charitable Fund you will continue your legacy for generations to come. Become an active buyer of valu- able royalty assets and find how simple it is to own. Alfred Teran is president of divestitures at Patriot Energy. n
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M id A tlantic R eal E state J ournal Promoted to lead all NY manufacturing operations Crystal Windows names Chang VP of manufacturing F LUSHING, NY — Crys- tal Window & Door Systems announced
real estate auctions
supervisors and 250 produc- tion employees, Chang directs this operation and coordinates with Crystal's other production facilities in Chicago, Riverside (CA), and St. Louis to ship products to 40 states across the country. "Joseph Chang is a tremen- dous asset to our senior man- agement team," said chief oper- ating officer Steve Chen . "As Crystal expands its production capabilities, the coordination and integration of company operations requires vision and experience, and Joseph brings this and more to the position. In recent years, Joseph and his team have been instrumental in specifying, acquiring and “Rob’s extensive experience and impeccable reputation in the industry will significantly strengthen our Long Island- based team, which we view as a core market,” said Brian Cooper , co-CEO of Kensing- ton Vanguard. “As we con- tinue to grow both organically and through acquisitions, we remain focused on targeting top professionals and teams
bringing online major new equipment investments and he has reengineered our processes to shorten production times. Joseph meets every challenge squarely, assuring great suc- cess for the company." Chang has been with Crystal for 15 years and has been a key player in the company's extraordinary growth. He started working in Crystal's Shipping Department and moved into positions of pro- gressively greater responsibil- ity throughout the production operations at Crystal's New York manufacturing plant. Chang is a 2014 recipient of the Queens Rising Star Busi- ness Award. n to join our organization.” Over the course of his ca- reer, Brady has cultivated a great many relationships with attorneys, builders, de- velopers and lending insti- tutions. Most recently with Ambassador Abstract based in Huntington, NY, Brady comes to the firm with deep experience in both the title insurance and mortgage sec- tors having worked at PNC and JP Morgan. n
Mid Atlantic Real Estate Journal 4 x 4.25 7/31 Printing and Promotional Products IntegrityGraphics NJ PETER COSTANZO AUCTIONEERS, INC. PETER COSTANZO, BROKER (732) 776-7222. BUYER’S PREMIUM MAY APPLY. 800.982.0425 • williams auction .com/NJ 8,000 +/- sf Vacant Commercial Building Open 11-2pm Friday August 7 & 14 NEPTUNE CITY, NJ • 68 Highway 35 North. Medical and office use permitted. 4,000+/- sf floor plates with 4,000+/- sf built out basement. Centrally located near Routes 18, 33, 66 and the Garden State Parkway. Close proximity to Jersey Shore Medical Center. Auctions: 12pm Fri Aug 28 on site or bid live online at auction network.com Also Auctioning in August EAST ORANGE, NJ • 90 Washington St #108. 7,680+/- sf office condo. GARFIELD, NJ • 100 Pierre Ave & 112 Monroe St. Light manufacturing buildings. LEDGEWOOD, NJ • 1445 Route 46 West. Former motorcycle/ATV sales/service. Integrity Graphics is a full service provider of printed and promotional products. With our extensive network of manufacturers we can satisfy the printing needs of many businesses and industries. Whether you are looking for a specific item or just browsing for ideas, our site is your one-stop source. . . Your One-Stop Source Integrity Graphics/ Printing and Promotional Products Account Executive: Alan Aronson Office: 339-987-5533 ext.126 | Cell: 508-612-2438 Aaronson@i-graphics.net Visit our website at: i-graphics.net
that Joseph C h a n g h a s been promoted to the position of vice president of manufacturing. In this role, he is responsible for all produc-
Joseph Chang
tion, scheduling, purchasing, inventory, quality assurance, and logistics and shipping at the company's main facility in Queens, NY. Crystal's NY facility manu- factures 400,000 vinyl and alu- minum window and door units each year. Through a staff of 18
Kensington Vanguard expands Long Island presence NEW YORK, NY — Kens- ington Vanguard National Land Services , one of the largest independent full-ser- vice national title insurance and settlement agencies in the United States, announced that Robert Brady has joined the firm as vice president and will be based in the Garden City, NY office. This addition expands the firm’s Long Is- land presence which launched last year in conjunction with hiring industry veteran Tom Aurrichio .
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UIP acquires Rhode Island Gardens in for $7.6 million
G Transactions totaling nearly $650m in first half 2015 Equus announces $29.4m sale of three-office portfolio A I THERSBURG , MD — Equus Capi- tal Partners, Ltd.
(“Equus”) , one of the na- tion’s leading private equity real estate fund managers, announced the sale by one of its affiliates of 25, 35, and 45 West Watkins Mill Rd., a three-building office/lab portfolio totaling 139,938 s/f in Gaithersburg, a submar- ket of Washington, DC. The properties were acquired by Tritower Financial Group for $29.4 million and were 95% leased at the time of sale. “Equus’ ability to attract and retain triple net leases with high quality tenants, including AstraZeneca sub- sidiaries MedImmune and Amplimmune at the time of sale speaks volumes about the strength of this portfolio,” said Brian Fitzgerald , se- nior vice president of Equus who is responsible for the development, leasing and management of Equus’ Wash- ington, DC portfolio and for overseeing the firm’s regional office in the market. Equus was represented by Holliday Fenoglio Fowler, L.P. (“HFF”) in the sale. The HFF investment sales team representing Equus included senior managing directors Jim Meisel and Dek Potts , and associate director Matt WILMINGTON, DE — CBRE, Inc. has brokered two new leases to Courthouse Square in Wilmington, a sign that the ongoing renovations are attracting new tenants. K&L Gates LLP, one of the largest law firms in the world, has signed a lease for the ninth floor. Old Republic Title has leased space on the ground floor. CBRE’s John Kaczow- ka represented Courthouse Square in both transactions. “The renovations undertaken in Courthouse Square are cre- ating an elegant and modern space that has immediately be- gun attracting major clients,” said Kaczowka, senior vice
25, 35, and 45 West Watkins Mill Rd.
distance of the new Watkins Mill Town Center and offer easy access to area roadways including Routes 117 and 124, Rockville Pike, and the Intercounty Connector. Equus Capital Partners, Ltd. (“Equus”) is one of the nation’s leading private eq- uity fund managers. Equus’ portfolio consists of over 24 million s/f of office, retail, and industrial properties and more than 16,000 apartment units in over 60 communities located throughout the United States. The firm is headquar- tered in the Philadelphia area with regional offices in Los Angeles, Chicago, Washing- ton DC, Boston, Atlanta, and Raleigh-Durham. n will continue to attract clients across all fields of business.” AIG, Courthouse Square’s owner, has invested $10 mil- lion in renovations, which are expected to be completed in the fall. Included in the renova- tions are: a new lobby, which includes a two-story glass atrium that will be added to the front of the building; all new elevators and elevator components; complete HVAC overhaul; exterior façade up- grades; new landscaping and additional outdoor seating; a new conference center on the top floor of the building; and a new fitness center on the ground floor. n
Nicholson . “Gaithersburg is a dynamic submarket known for its high concentration of innovative technology and bio-tech com- panies, making it an incred- ibly attractive location for life sciences companies,” added Chris Locatell , senior vice president of dispositions, who also oversaw the disposition for Equus. Located just 17 miles north- west of Washington, DC, 25, 35, and 45 West Watkins Mill Rd. are located within Mont- gomery County’s highly-desir- able I-270 corridor, a leading life sciences center widely known as “DNA Alley.” Ide- ally situated on 12.7 acres, the properties are within walking
Rhode Island Gardens
and upgrades, and upgrading all common areas and apart- ment interiors (with a par- ticular focus on kitchens and baths), while maintaining the structure’s historic character. “As with many of our other apartment building renova- tions, Rhode Island Gardens residents who stay through the renovation will enjoy a modernized apartment build- ing with no increase in rent,” added Schwat. Rhode Island Gardens is lo- cated in the Edgewood neigh- borhood, a flourishing, urban infill setting just north of NoMa, one of the top employ- ment centers in the Nation’s capital. The structure has a prominent presence on the corner of 3rd St. and Rhode Island Ave. NE, a major commuter route connecting Prince George's County to the District of Columbia. The nearby Rhode Island Avenue Metro station on Metro’s Red Line provides direct connections to NoMa (just one stop away), Union Station, and the rest of the metropolitan area. Within ten minutes’ walking dis- tance, residents have access to Rhode Island Row, a large mixed-use project completed in 2012, with 150 s/f of retail space including CVS, Caro- lina Kitchen, Jersey Mike’s, and more. n
WASHINGTON, DC — Ur- ban Investment Partners (UIP) has acquired Rhode Is- land Gardens, with 81 apart- ment homes, for $7.6 million. Originally built in 1931, the property is located at 230 Rhode Island Ave. NE just a half mile from the Rhode Island Avenue Metro station. The seller, Roydun Corpora- tion, is an affiliate of Washing- ton, DC-based DARORealty , a longtime local apartment owner and manager. CBRE represented the seller. UIP coordinated the acqui- sition with the Rhode Island Gardens Tenants Association. “This is our fourth acquisition for the year and our third development agreement with a tenant association in 2015, highlighting UIP’s unique level of experience and strong desire to participate fully with tenants in the properties we buy,” said Steve Schwat , principal at UIP. UIP and the tenants’ associ- ation worked together to plan a $7 million renovation of the building to be performed by UIP subsidiary UIP General Contracting Inc. The project will include adding five apart- ments on the building’s lower level, upgrading electric ser- vice, installing individually controlled heating and air conditioning in each apart- ment, plumbing replacements
CBRE brokers two new major leases at Courthouse Square in Wilmington, Delaware
Courthouse Square
president with CBRE’s Wilm- ington, DE office. “The location proximate to the Courthouse and the U.S. Bankruptcy Court is ideal for a law firm like K&L Gates, and with the Double Tree Hotel next door this space
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EWES, DE —Real es- tate firms Keller Wil- liams and Legum & Ann Bailey of NAI Emory Hill represents landlords NAI Emory Hill executes leases to two real estate firms L
Marathon Consulting to expand significantly in Virginia Beach
VIRGINIA BEACH, VA — Marathon Consulting, LLC, a Hampton Roads-based pro- vider of information technol- ogy and digital marketing solutions will almost double in size and add 34 full-time positions to its Virginia Beach headquarters. The company, founded in 2006, is currently located at 505 S. Independence Blvd. Marathon has entered into a lease for 9,000 s/f of office space in 5 Columbus Center, 4525 Columbus St. in the Virginia Beach Town Center. The company will add 34 full-time employees to the existing 59 in the areas of web and application developers, business analysts and project managers. Marathon will also invest more than $200,000 in business property with this expansion. “Marathon Consulting, LLC has consistently hit it out of the park,” said Warren Harris , director of Virginia Beach Economic Develop- ment . “They had an opportu- nity to look at expansion op- tions outside Virginia Beach, and we are so proud of the decision to keep the corporate headquarters here and to join us in Town Center. They bring a tremendous wealth of technology talent to Virginia
Beach, and these new jobs will attract even more. Our depart- ment has worked hard to bring more than 600 new high-tech jobs to Virginia Beach over the past year.” Harris Pezzella, president of Marathon Consulting, said “Marathon has always taken great pride in being a repre- sentative of the ongoing eco- nomic expansion taking place in the region, and particularly, its affiliation with the Central Business District and Town Center. We are very appre- ciative of this generous grant from the Virginia Beach Eco- nomic Development Authority, as it goes a long way towards assisting Marathon’s goal of becoming the premier provider of information technology services throughout Hampton Roads and beyond.” The Virginia Beach Eco- nomic Development Authority has approved an Economic Development Investment Pro- gram grant in the amount of $85,000 based on the number of jobs to be created with this expansion. The company was assisted in their real estate search by Sezin Cortinas and Krista Costa of Divaris Real Es- tate, Inc. The Divaris Group is headquartered in Virginia Beach. n
Norman have bo t h s i gned five-year leases for office space in two l oca- tions in Lewes through com- mercial real es- tate brokerage firm NAI Emory Hill .
Ann Bailey
Keller Williams leased the entire 6,340 s/f office building at 18344 Coastal Highway, while Legum & Norman signed a lease for 3,590 s/f of space in the Vineyards of Nassau Valley on Rte. 9. NAI Emory Hill Lewes broker Ann Bailey, CCIM , represented the landlords in both transactions. Elizabeth Vasilikos represented her own company, Keller Wil- liams, as the tenant broker, and Swearingen Company of Dallas, TX was the na- tional broker for Legum & Norman. Jack Lingo Real- tors represented the tenant locally. Space is still available at the Vineyards of Nassau Val- ley, which is comprised of two POCOMOKE CITY, MD — Henry Hanna, CCIM, SIOR , senior advisor with Sperry Van Ness – Miller Commercial Real Estate announced the expansion of Hardwire Armor Systems in Pocomoke City. Hardwire, a manufacturer of protec- tive systems, has signed a 5 year lease with an option to purchase the flex indus- trial building located at 1731 Broad St. The 42,000 s/f building is the third build- ing occupied by Hardwire in Pocomoke City. With the expansion of Hardwire comes more jobs and more money for the Pocomoke City community. Henry Hanna said, “This business expansion in Poco- moke was only possible with the extraordinary help pro- vided by the Maryland Eco- nomic Development Cor- poration (MEDCO) , Bill Badger and the Worcester County Economic Devel- opment Office .” LAUREL, DE — Wesley Cox, CCIM , senior advisor
18344 Coastal Highway
Vineyards of Nassau Valley
three-story, fully landscaped buildings that provide a mix of office and retail space as well as pad sites in a prime
location near Delaware’s beaches and coastal towns. It is approximately 75% oc- cupied. n
Hanna of Sperry Van Ness – Miller assists Pocomoke City business with local expansion
Acton Mobile leases expanded space with St. John Properties
1731 Broad St.
at Sperry Van Ness – Miller Commercial Real Estate an- nounced that First Financial Bank is entering the Eastern Shore market with a location in Sussex County, DE. First Financial will be occupying 2,000 s/f of brand new pro- fessional office space at the Stone Creek Business Park in Laurel, DE. “First Financial has been an absolute pleasure to deal with in helping them secure their first location in the area and it is exciting to see the growth of the agricultural market they serve,” said Cox. Allen Ginn, vice president of First Financial says, “We
The Avery Row Apartments
Shown from left: Brian Hegi, Prophet Equity; Ingrid West, president, Acton Mobile; and Rodney Shrader, COO, Acton Mobile.
ter, a two-building, 120,000 s/f business community de- veloped and managed by St. John Properties . Acton Mo- bile provides modular space for the construction, commer- cial, education, healthcare and government industries. The company serves twenty-one locations in twelve states in and maintains a fleet of more than 10,000 modular units. n
BALTIMORE, MD — Ac- ton Mobile, a Baltimore-based provider of modular space rental services, recently cel- ebrated the opening of its expanded corporate head- quarters space with a ribbon- cutting ceremony at its offices at 809 Gleneagles Court in Baltimore. Acton Mobile now leases approximately 20,000 s/f of space at Cromwell Cen-
Stone Creek Business Park have financing solutions that can be tailored to your poul- try operation. First Financial Bank and our dedicated customer service team are looking forward to serving the needs of both existing and new poultry producers on the Eastern Shore.” n
Real Estate Journal — August 14 - 27, 2015 — 7A
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8A — August 14 - 27, 2015 — M id A tlantic
Real Estate Journal
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Commercial-Industrial Realty Council Great CRE Events...Cont. Education...Speakers...Networking www.CircDelaware.org
CIRC Executive Committee Elected
New Members Join CIRC Board
2 0 1 5 BOARD OF DIRECTORS O fficers President Bert Root Harvey Hanna & Associates Vice President Donald Robitzer The Commonwealth Group Treasurer Timothy Cole Parke Bank Secretary Bayard J. Snyder, Esq. Bayard & Associates D irectOrs / c Ommittees Past President Education Chair Marvin Sachs Bellevue Realty Co. Legislative Affairs Chair: J. Gregory Ellis Patterson-Woods Associates Membership Chair John Birmingham Cushman & Wakefield James Manna BrightFields, Inc. Program Chair Donald Robitzer The Commonwealth Group Jeremy Abelson MidCoast Community Bank Benjamin J. Berger, Esq. Berger Harris, LLC Jim O’Hara, Jr. NAI Emory Hill-Retail Div. Rachael Justice ATAPCO Christiana Cynthia Fleming Jones Lang LaSalle e x -O fficiO m embers C. S. Kidner & Associates Economic Dev. Liaisons New Castle County Chamber Bob Chadwick David Archer DEDO NCCo. Rep. City of Wilmington Jeff Flynn Office of Economic Dev. Contact Us www.circdelaware.org (302) 633-1705 janet@circdelaware.org NCC Ec. Dev. Council State of Delaware Business Manager Janet S. Pippert CIRC / Landmark Science & Engineering Legislative Lobbyist C. Scott Kidner
Cindy Fleming is an Associate-Broker with Jones Lang LaSalle in Wilmington
Tim Cole is a Vice President of commercial lending at Parke Bank in Philadelphia
New Officers will serve for this fiscal year beginning July 1, 2015. (from left): Don Robitzer, Vice President, Barry Snyder, Secretary, Bert Root, President, Janet Pippert, Business Manager (ex-officio member), and Tim Cole, Treasurer
Good Times…Great Reasons to Join!
Golfers & Volunteers!
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October 14, 2015 (Wed) * Mod. 4 / Office Management Mod. 5 / Legislative Issues: Agency Clarion Hotel-The Belle January 13, 2016 (Wed) * Mod. 7 / Contemporary Issues Mod. 3 / Real Estate Documents Clarion Hotel-The Belle March 9, 2016 (Wed) * Mods #/# to be announced Clarion Hotel-The Belle * Visit us on the web: CircDelaware.org for more information on our educa- tional course provider and credits for DE*MD*PA*NJ: circdelaware.org/education/schedule.cfm
F inancial D igest F eaturing M ultifamily F inancing
Real Estate Journal — August 14 - 27, 2015 — 9A
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NorthMarq Capital arranges $51.844mmultifamily refinance
RLINGTON, VA — Holliday Fenoglio Fowler, L.P. (HFF) Debt placement teamwas led by Carras, Coker &Crivella HFF furnishes $62.5mfinancing for dev. of leasehold interest A
has arranged $62.5 million in financing for the develop- ment of the leasehold inter- est in 1008 North Glebe, a to-be-built, 15-story, 267-unit, class A mixed-use apartment and retail property situated on Marymount University’s Ballston Center Campus in Arlington. HFF worked on behalf of the developer, The Shooshan Company , to secure the con- struction financing with Sun- Trust Bank. The Shooshan Company was selected by Marymount University in 2012 to evalu- ate their Ballston Campus, a 110,000 s/f site with a 1960’s- era office building that Mary- mount purchased in 1992 as an extension to their main cam- pus. A site plan was approved whereby Marymount could demolish the aging classroom building and redevelop the site into two new buildings: a class A 165,000 s/f classroom/office building owned byMarymount, and a class A mixed-use apart- ment and retail tower owned by an affiliate of The Shooshan Company on a leasehold inter- est in the land. 1008 North Glebe is prominently situated at the corner of North Glebe Rd., North Fairfax Dr. and I-66 in the transit-oriented Rosslyn-Ballston Corridor. The combined project is expected to be complete by spring of 2017. The HFF debt placement team representing the bor- rower was led by Sue Carras, Walter Coker and Brian Crivella . GREENSBORO & HIGH POINTE, NC — Holliday Fenoglio Fowler, L.P. has secured financing totaling $49.801 million for a three- property apartment portfolio totaling 811 units in Greens- boro and High Pointe. HFF worked on behalf of the borrower, Hudson Capital Properties, to place three sepa- rate 10-year, fixed-rate loans with Freddie Mac’s (Federal Home LoanMortgage Corpora- tion) CME Program. The secu- ritized loans will be serviced by
1008 North Glebe rendering
Excelsior II
HFF through its Freddie Mac Program Plus Seller/Servicer program. The properties included in the portfolio are Steeplechase at Adam’s Farm located at 1338 Adams Farm Parkway in Greensboro; Park Forest located at 3214 Brassfield Rd. in Greensboro; and Deep River Pointe located at 3971 River Pointe Place in High Pointe. The garden-style com- munities have a variety of floor plans ranging from one- to three-bedroom units. Commu- nity amenities vary for each property but include features such as swimming pools with sundecks, 24-hour fitness cen- ters, business centers, tennis courts and walking trails. The portfolio is 96% leased. The HFF debt placement team was led by senior man- aging director Thomas Didio and director Luke Vander- poel . “Hudson Capital Properties is excited about bringing these three properties into its grow- ing portfolio,” Hudson Capital Properties president Frank Huttle III said. “We have been an owner of multifamily prop- erties in North Carolina and are delighted to expand our footprint to Greensboro. Many thanks to HFF for their help in making this transaction a reality.” “We are pleased to have secured favorable debt for the Hudson Capital Proper- ties’ acquisition of three qual- ity apartment assets in the Greensboro and High Pointe, North Carolina markets,” said Didio. “Our Freddie Mac team did a great job securing the
interest rate prior to closing the purchase.” EATONTOWN, NJ — Hol- liday Fenoglio Fowler, L.P. has secured a $10 million refinanc- ing for West Ridge Corporate Center, a 113,715 s/f, office/flex campus in Eatontown. Working on behalf of the bor- rower, Bollerman Real Estate Services, Inc., HFF placed the 10-year, fixed-rate loan with Principal Commercial Capi- tal, a lending platform jointly formed by Macquarie Group and Principal Real Estate In- vestors. Loan proceeds were used to refinance an existing loan on the property. The HFF debt placement team representing Bollerman was led by director Michael Klein . West Ridge Corporate Cen- ter is located at One Industrial Way West within the Eaton- town Business Park. The five- building, office/flex complex is located just west of Rte. 35, one mile south of its intersection with Route 36 and less than three miles from Interchange 105 of the Garden State Park- way and Rte. 18. The property, which was constructed in 1983 and pur- chased by Bollerman in 2004, is currently 96% leased. “Bollerman was seeking a long term loan that would en- able them to take advantage of low interest rates in argu- ably a soon to be rising inter- est rate environment,” said Klein. “Principal understood the submarket and the short term leases associated with this product type and was able to provide a loan that best met Bollerman’s needs.” n
Lakeshore Apartments
for the sponsor as he was able to significantly reduce his in- terest rate while cashing out significant equity.” LOWELL & DRACUT, MA —Ranieri arranged supplemen- tal financing of $1.5 million for Lakeshore Apartments, two multifamily properties with a combined 146 units located at 390 & 395 Mammoth Rd. in Lowell, and 325-355 Tyngsboro Rd. in Dracut. The transaction was structured with a 7-year term with 2-years interest only followed by a 30-year amorti- zation schedule. NorthMarq arranged financing for the bor- rower through its seller-servicer relationship with Freddie Mac. “The borrower wanted to bor- row additional funds in order to upgrade the property,” said Ra- nieri. “Cash flow was sufficient to provide this second mortgage opportunity. We did two years of interest only as that is the period in which the majority of the work will be done.” n
HACKENSACK, NJ — Rob- ert Ranieri , senior VP/man- aging director of NorthMarq Capital’s Greater Westchester NY/CT based regional office and Greg Nalbandian , senior VP/ managing director of North- Marq’s NJ based regional office collaborated to arrange the $51.844 million refinance of Ex- celsior II, a 267 unit multifamily property with 11 professional spaces located at 170 Prospect Ave. in Hackensack. The trans- action was structured with a 10-year term and 30-year amor- tization schedule. NorthMarq arranged financing for the bor- rower through its seller-servicer relationship with Freddie Mac. “The loan represented a re- finance of an existing Freddie Mac mortgage for a long-time Freddie Mac borrower,” said Ranieri. “The property is one of the premiere multifam- ily complexes in Hackensack.” Nalbandian added that “this early refinance was a win-win
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