HILADELPHIA — Berkadia announced financing for Morgan P 4,670 unit portfolio includes properties located in DE, NJ, PA and MD Piper&Falese of Berkadia secure $661M in financing for Morgan 22 Portfolio Freddie Mac is comprised of 22 individual 10-year fixed- rate loans sized to a max of an secure the debt terms prior to the market volatility and Freddie Mac once again did Properties is a national real estate investment and man - agement company head -

22 Portfolio, a 22-proper - ty portfolio comprised of 4,670 total units. The port - f o l i o i n - cludes prop - erties locat -

80 percent loan-to-val - ue ratio. The p r o c e e d s were used to pay off ex - isting debt, which was provided by Freddie Mac

“We are thrilled with the execution of this refinance,” said Piper. “We were able to secure the debt terms prior to the market volatility and Freddie Mac once again did an outstanding job to ensure the transaction closed in a timely manner.” - TJ Piper

TJ Piper

Robert Falese

quartered in King of Prus - sia, Pennsylvania. Morgan Properties and its affiliates, currently own and man - age a multifamily portfolio comprised of 300 apartment communities and over 75,000 units located in 15 states throughout the country, pri - marily in the Mid-Atlantic andNortheast Region. MAREJ can expand to 2.8 million s/f. The development parcel offers class A infrastructure with fully stubbed utilities allowing for a compressed development timeline. “This campus presents an opportunity to capitalize on the growing demand for phar - maceutical-grade lab space both locally and nationally,” said Ira Weidhorn , co-head of H.I.G. Realty Partners. “We look forward to building around the strong in-place anchor tenancy of PTC and leveraging H.I.G.’s real estate expertise and bio-health expe - rience to enhance the execu - tion of the value-add business plan.” The Princeton West Inno - vation Campus features nine principal buildings consisting of state-of-the-art clinical manufacturing, plug-and-play biological laboratories and of - fice space, plus freestanding R&D support space, storage facilities and a global data and command center. It is supported by a central utility complex (CUC), which provides wastewater man - agement, generator-backed electricity, chilled water and steam. MAREJ

an outstanding job to ensure the transaction closed in a timely manner. Morgan Properties is a best-in-class operator and we are proud to continue providing them the exceptional service they are accustomed to from Berka - dia.” Established in 1985 by Mitchell Morgan, Morgan

ed in Delaware, New Jersey, Pennsylvania, andMaryland. TJ Piper and Robert Fa- lese of Berkadia’s Philadel - phia office secured the $661 million in financing for the portfolio on behalf of the bor - rower, Pennsylvania-based Morgan Properties . The financing provided by

and originated by Berkadia in 2013. The pool qualifies as workforce housing as 87 percent of the units are af - fordable for renters making 100 percent of area median income. “We are thrilled with the execution of this refinance,” said Piper. “We were able to

Section B

UPCOMING CONFERENCES September 2, 2020 6 th Annual NJ CRE Leadership Honoring Women in Real Estate September 9, 2020 5 th Annual PA Healthcare & Medical Conference October 1, 2020 6 th Annual NJ Industrial Development Conference For speaking and sponsorship info., please contact: Lea at 781-740-2900 or lea@marejournal.com

Lincoln Equities Group & H.I.G. Realty Partners purchase 1.2M s/f Bristol-Myers Squibb Campus

HOPEWELL, NJ — Lin- coln Equities Group (LEG) , a full-service real estate firm, and H.I.G. Realty Partners , announced the acquisition of a 1.2 million s/f life sciences campus formerly owned by global biopharmaceutical com - pany Bristol Myers Squibb. Brokerage firm JLL is market - ing the 433-acre “Princeton West Innovation Campus,” located just seven miles from Princeton, to life sciences companies. The secure, mul - tipurpose research and devel - opment (R&D) and biologic/

© Bristol Myers Squibb

Directory ROP (Front Section) .................................... Section A Contributing Columnist ...Robin Zellers, CRE, NAI CIR Top Ten Issues Affecting Real Estate . .................... 2A Financial Digest................................................9-14A Retail Development Reimagined. ...................15-17A Business Card Directory & Billboard Directory... IBCA New Jersey.......................................................1-16B Pennsylvania..................................................17BC B Owners, Developers & Managers............... Section C www.marej.com

BMS campus

pharmaceutical manufactur - ing campus includes build- to-suit opportunities and is highly divisible into footprints of all sizes. “Given the current pub - lic health crisis, we antici - pate pharmaceutical and life sciences manufacturers to consider ‘reshoring’ and ex - panding operations in the U.S.,” said Joel Bergstein , president of LEG. “This spa - cious, modern BMS campus – located in the center of ‘Ein - stein’s Alley’ in Central New Jersey – is a prime location for continued innovation and

expansion.” The BMS campus is located along the Boston – Wash - ington, DC life sciences cor - ridor in central New Jersey’s research technology region – home to emerging and es - tablished Fortune 500 life sciences companies. Current tenants include PTC Thera - peutics Inc., which occupies over 200,000 s/f, including a biologics production facility and R&D buildings. The site is also zoned for commercial manufacturing and features 35 acres of additional development opportunity; it

Inside Cover A — July 24 - August 13, 2020 — M id A tlantic Real Estate Journal




Urstadt Biddle Properties is the premier grocery anchored shopping center REIT in the suburban New York Metro Area. With our expert team, dense portfolio and five decades of experience, Urstadt Biddle Properties delivers on the commercial real estate front. Visit us at: www.ubproperties.com

M id A tlantic Real Estate Journal — July 24 - August 13, 2020 — 1A



Chase Bank Prince Frederick, MD $5,625,000

Bank of America Clifton Park, NY $5,400,000

CVS Boston, MA $5,555,555

Dollar General Mechanicsville, VA $1,665,000

CVS Orlando, FL $6,090,000

Chase Bank Jacksonville, FL $6,714,738

Gillian Greenfield, Greenfield and Craun, MD Broker of Record, License 681790 Ethan Cole, FL Broker of Record, License BK3382287, NY Broker of Record License 10491208561





2A — July 24 - August 13, 2020 — 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 Publisher ........................................................Joe Christman Editor/Graphic Artist..... .................................Karen Vachon Contributing Columnist .......Robin Zellers, CRE, NAI CIR; Christina Martin and Shaun Comer, Edge Mid Atlantic R eal E state J ournal ~ Published Semi-Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 350 Lincoln St, Suite 1105, Hingham, MA 02043 USPS #22-358 | Vol. 32, Issue 14 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 | Fax: 781-740-2929

Robin Zellers, CRE

Top Ten Issues Affecting Real Estate

L EMOYNE, PA — Robin Zellers, SIOR, FRICS, CRE , and president of NAI CIR , shared the current and emerging issues expected to have the most significant impact on real estate in 2020 and 2021, as identified by The Counselors of Real Es- tate . The COVID-19 pandemic ranked as the leading concern of the 1,000-member organiza- tion. “The change wrought by the COVID-19 crisis and its aftermath will teach us about priorities, resilience, and de- mand in ways that we did not dare test before,” said Zellers, a Counselor of Real Estate. “The 2020-21 Top Ten Issues are highly interrelated and are an attempt to overlay this new world onto an already chang- ing real estate environment. In examining real estate markets, we must consider existing fra- gility, adaptability to new de- mands, and potential relevance to new markets. Demand will be defined by the extent to

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which this crisis leads us to abandon old habits and adopt new ones. The duration of the lockdown has been a factor, and so is the confidence with which we emerge.” Economic renewal ranked second on The Counselors’ list, with the U.S. economy showing signs of decline prior to the CO- VID-19 pandemic. “There were a number of statistical signals of deceleration for those willing to see them,” said Zellers. “The challenges facing the economy and the real estate industry are deep and persistent, with leisure and hospitality, retail, construction, and air travel see- ing slow and partial rebounds into 2022.“ The Counselors cite

that the impact of the economic lockdown on state and local tax revenues could reduce non-fed- eral government employment levels and shelve important in- frastructure projects, with such risks suggesting an unusual “W-shaped” recession. “The post-COVID-19 econ- omy will be constrained by long-run potential GDP growth of only 1.5 – 1.6%. That is the ‘new normal’ for which we need to prepare,” added Zellers. Capital market risk rounded out the top three issues of con- cern for The Counselors, as the last four months have present- ed not only real time volatility of the capital markets, but also continued on page 20A


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M id A tlantic Real Estate Journal — July 24 - August 13, 2020 — 3A


M id A tlantic R eal E state J ournal

Part of first phase of New Jersey Community Solar Energy Pilot Program Four Duke Realty industrial rooftops selected for Solar Landscape host sites in New Jersey


ERSEY CITY, NJ — Duke Realty , one of the largest domestic-only, pure-play logistics property REIT (Real Estate Investment Trust) in the United States, has announced it will host so- lar projects covering nearly 1 million s/f of roof space across four of its New Jersey indus- trial sites through a partner- ship with Solar Landscape. The New Jersey Board of Public Utilities (NJBPU) se- lected the four projects, total- ing 11.07 megawatts (MW), as the first of 77.61 MW of solar power awarded in year one of its three-year Community Solar Energy Pilot Program. The allocation represents more than 29% of rooftop solar awarded in the program’s first year. When completed, the combined projects will make Duke Realty the largest com- munity solar project host in New Jersey and deliver more than 250 million kilowatt hours (kWh) of renewable electricity to the community over the next twenty years. “We are pleased to have been selected as a major par- ticipant in the first round of New Jersey community solar,” said Megan Basore , Duke Realty’s vice president of Corporate Responsibility. “For nearly 50 years, Duke Realty has been one of the most prolific developers of logistics space in the United States, and we are proud to further our commitment to sustainable buildings with these projects in the New Jersey market.” Solar Landscape, a New Jer- sey based developer of large commercial and industrial solar integrations, will own and operate the solar projects. The projects will provide lo- cal homeowners, renters, and businesses with discounted, clean energy without incur- ring the cost of adding solar panels to their own properties. “The industrial real estate market – with its massive, often unencumbered rooftop spaces – is critical to the success of the New Jersey Community Solar Energy Pilot Program. These large scale projects mean that energy can be generated re- motely, and used by residents all across New Jersey,” said Shaun Keegan , CEO of Solar Landscape. “We are excited to partner with Duke Realty to bring the benefits of this his - toric program directly to the community we call home.”

forged by a shared commit- ment from both companies to the communities they both operate within. With these projects, Duke Reality le- verages existing industrial rooftop space to host photo- voltaic panels that generate solar power. Solar Landscape, in turn, connects New Jersey communities and businesses to the power produced. As part of its operations, Solar Landscape will also provide cost-free local solar energy job training and professional certifications to individuals in these communities. MAREJ

In the first year of the NJ Community Solar Pilot Pro- gram 252 applications were submitted to the NJBPU, totaling more than 650 MW of capacity. Just 45 projects were selected from the first year’s batch, allocating 77.61 MW for the program. Solar Landscape was awarded the most capacity of any contrac- tor, winning 20.358 MW, or more than 26 percent of first round capacity. Round two of the pilot program is now underway. The Duke Realty – Solar Landscape partnership was

Duke Realty set to become NJ’s largest community solar host.


Building a Clean Energy Legacy

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4A — July 24 - August 13, 2020 — M id A tlantic Real Estate Journal


M id A tlantic R eal E state J ournal

PRINGFIELD, NJ — Bussel Realty Corp. (BRC) , an industrial Mircovich represents Tathastu Trading in 16,000 s/f s/f of office space lease Irving of Bussel Realty Corp. brokers sale of 12,193 s/f 32 Commerce Street, Springfield, NJ S

real estate s e r v i c e s firm in New Je r sey an - nounced i t represented the sale of 32 C omm e r c e St. in Spring- field, a 12,193 s/f industrial/

Gregory Irving

flex property, for $1.92 million. Gregory Irving, SIOR , ex - ecutive vice president of BRC, represented the seller, Fargo

32 Commerce St., Springfield, NJ

122 Tices Ln., East Brunswick

Properties , in the transac- tion. The buyer, Vangellow Properties , was represented

by Ri che l C o mm e r - cial . “The prop- erty attract- e d m a n y b u y e r s a t t h i s p r i c e level which indicates the strength of

Business as Usual, Even in the Unusual.


the industrial real estate mar- ket in New Jersey,” not Irving. “We continue to see strong demand for industrial and warehouse product in all of the State’s major submarkets.” 32 Commerce St. is a 12,193 s/f industrial building near Rte. 22 and Garden State Pkwy., and is minutes to Port Newark/Elizabeth, and New- ark Liberty Airport. The property features 6,080 s/f of office space, a fully air- conditioned warehouse, 17- foot ceilings, two drive-in doors for loading, 600 amps of electric power, and 30-car parking. In a second transaction, BRC announced it leased 16,000 s/f at 122 Tices Ln. in East Brunswick, a 36,800 s/f industrial property, on behalf of Tathastu Trading. Anthony Mircovich , vice president of BRC, represent- ed Tathastu Trading in the transaction, and the landlord, Greek Development , was represented in-house. 122 Tices Ln. is a 36,800 s/f industrial property with ac- cess to the New Jersey Tpke. and Rte. 18. It features 22-foot clear ceilings, seven loading docks and one drive-in door, 400 amps of power, surface parking spaces and sits on 13.00 acres. MAREJ







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M id A tlantic Real Estate Journal — DelMarVa — July 24 - August 13, 2020 — 5A


D el M ar V a

PPERMARLBORO, MD— The Ironwork- ers Union had already Sale includes two buildings totaling 14,020 s/f at 9100 Old Marlboro Pike NAI Michael's Daniels, Luckett, Rogers & Mayr handle sale of of Upper Marlboro, MD property U

moved to its new quarters in Largo. Now it has sold the property it left behind. The Union turned 9100 Old Marlboro Pike over to the Baltimore Washington Labor District Council, in a $3 mil - lion deal just closed recently. The sale included two build- ings, totaling 14,020 square feet, one that served as office and union hall, the other as a training center. The Ironworkers Union, which includes the fearless folks that walk the steel beams on skyscrapers, had bought 9301 Peppercorn Place in Lar - go in early January, for $5.25 million. Marcus Daniels, Ed Luckett , and Terry Rogers at NAI Michael repped the Ironworkers on Old Marlboro Pike, while Andy Mayr at the same firm brought the Labor District Council. MAREJ Bancroft Const . opens regional off. in Salisbury, MD SALISBURY, MD — Ban- crof t Construct ion an- nounced the move into Salis- bury. Located at 2324 W Zion Rd., Ste. 108, in the Northwood Professional Center, Bancroft’s new office is strategically lo - cated in between downtown Salisbury and Sussex County, DE. The office will be led by proj - ect executive Rob Jadick and project manager Eric Butler , who both bring extensive ex - perience working in the local market. With support from ad- ministrative manager Cheryl Fearn , the team will work to- gether to successfully execute Bancroft’s mission of provid- ing best-in-class construction management services within the region. Bancroft’s current network of clients in the re- gion includes Maryland Dept. of General Services, Sussex Montessori School, Worcester County, and Harvey Hanna & Associates. One of the goals with the establishment of an office is to show Bancroft’s commitment to the workforce in the area. “As we’re going through the process to recruit talent in the area, people want to know we are here for the long-term and they have a future with Ban- croft Construction,” said Rob Jadick . MAREJ

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6A — July 24 - August 13, 2020 — DelMarVa — M id A tlantic Real Estate Journal


D el M ar V a

AGERSTOWN, MD — Kins l ey Con- struction, Inc. has 12,500 s/f hospital dev. will contain 20 patient rooms Kinsley builds expansion to treat COVID-19 patients H

Cushman & Wakefield | Thalhimer inks 45,793 s/f lease

landlord. International Christian Min- istries renewed their lease of 4,625 s/f of office space at 701 Johnston Willis Dr., Chester- field County. Scott Douglas, SIOR handled the lease negoti- ations on behalf of the landlord. Roots Natural Kitchen leased 2,700 s/f at 6602 W. Broad St. in Henrico County. Annie O'Connor handled the lease negotiations on behalf of the tenant, and Connie Jordan Nielsen represented the land- lord. Morse Capi tal Partners leased 2,031 s/f of office space in Stony Point I in Richmond. Rett Turner, CCIM, SIOR handled the lease negotiations on behalf of the tenant. Ray Olson, LLC leased 1,756 s/f of office space at Bookbind - ery, 2201 West Broad St. in the City of Richmond. Mark Doug- las, CCIM, SIOR handled the lease negotiations on behalf of the landlord. My Elite Physique, LLC leased 1,700 s/f of retail space at 10801 Midlothian Tpke. in Chesterfield County. O’Connor and James Ashby IV handled the lease negotiations on behalf of the landlord. MAREJ

RICHMOND, VA — Cush- man & Wakefield | Thal - himer announced recent Rich-

mond , area lease transac- tions: A p p a l a -

p a r t n e r e d w i t h G i l - bane, Inc. to construct a 12,500 s/f hospital ex- pansion that will contain 20 pa t i en t rooms dedi- cated to treat-

chian Insu- lat i on Sup- ply renewed i ts lease of 45,793 s/f in Interchange @ Northlake- Building C at 11860 N. Lak- eridge Pkwy. in Hanover County. Evan Magrill and N . D e a n Meyer han- dled the ne- gotiations on behalf of the landlord.

Evan Magrill

Jon Kinsley

ing those with COVID-19. Kin- sley’s Steel, Building and Site teams are working together to deliver the expansion at Meritus Health’s Hagerstown Hospital. “Our clients are really on the front line of this pandemic, so we’re honored to help them through this time,” said Jon Kinsley , president and CEO. “We’re taking an all hands on deck approach to deliver the expansion and are proud of our employees’ hard work on this project.” The expansion is anticipated to open in late July. MAREJ

N. Dean Meyer

Maximus, Inc. leased 43,782 s/f in Boulders Center in Ches- terfield County. Amy Broder- ick and Magrill handled the lease negotiations on behalf of the landlord. CH Briggs Co. leased 28,325 s/f of industrial space at 120 Giant Dr. in Richmond. Dawn Calabrese handled the lease negotiations on behalf of the

Meritus Health’s Hagerstown Hospital expansion

Every project is unique. Getting to know my clients helps me deliver a space built just for them.

Joan Project Manager



M id A tlantic Real Estate Journal — DelMarVa— July 24 - August 13, 2020 — 7A



D el M ar V a

ALDORF, MD — Waldorf Park, a new retail development Retail development in Waldorf, MD breaks ground KLNB to bring retail tenants to prime new development W



Symptoms of a Crawlspace Problem

in Waldorf broke ground on June 23, according to The Republic Family of Compa- nies , the project’s developer. The center is slated to open to the public in the first half of 2021. Leading tenants that have signed leases at Waldorf Park include Starbucks, Chick-fil-A, and Jersey Mike’s. KLNB prin- cipals Dimitri Georgelakos and Bob Morris represented Chick-fil-A, and retail special - ist Michael Ginsburg repre- sented Jersey Mike’s. “We are thrilled to be bring- ing Waldorf’s second Chick-fil- A to market, its only Starbucks with a drive-through, and its first Jersey Mike’s. Charles County has been one of the fastest growing counties in Maryland for several years running, and Waldorf Park is strategically placed right in the center of that growth,” said Stacy Hornstein , senior vice president at Republic. Construction financing is be - ing provided by Sandy Spring Bank . “We are very proud to be working with Sandy Spring Bank, and appreciate their

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commitment to our project and their 152-year dedication to providing financing to the greater Baltimore-Washington area,” said Hornstein. In the evolving retail indus- try, Waldorf Park focuses on convenience retail and seeks to benefit from Charles County’s strong retail fundamentals. “The benefits of convenience retail has been a trend that has been on-going for years: the retail customer of today is seeking convenience, and Wal- dorf Park has been designed to provide customers and tenants with just that,” said Nicolas

Aragon , VP at Republic. “In addition, Charles County has one of the highest per-capita sales leakage of any county in MD, making it a prime opportu- nity for tenants,” said Aragon. Located right off of Crain Highway (Rt. 301), Waldorf Park boasts high visibility (54,281 AADT), multiple easy access points, and a variety of square footage opportunities. The project is also located ad- jacent to the 1.0 million square foot St Charles Towne Center mall, and several other na- tional tenants that anchor the immediate area. MAREJ



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8A — July 24 - August 13, 2020 — DelMarVa — M id A tlantic Real Estate Journal


D el M ar V a Commercial-Industrial Realty Council Great CRE Events...Cont. Education...Speakers...Networking www.CircDelaware.org

2 0 2 0 d i r e c t o r s — O F F I C E R S — President: Robert Stenta Pettinaro Management, LLC Vice President + Program Chair: Jay L. White , MAI, CRE® Apex Realty Advisory Treasurer: Barton L. Mackey, Jr. Patterson-Woods Associates Secretary: Bayard Snyder , Esq. Bayard & Associates — D I R E C T O R S — Education Chair: Cynthia Fleming Jones Lang LaSalle

Commercial Real Estate Post COVID-19 Outlook Panel by: Robert Stenta (CIRC President) and Jay L. White,MAI CRE (CIRC Vice President)

“W ithout the ability to meet in person at our monthly membership meetings, on June 25 th we hosted our first-ever CIRC Zoom meeting, with an es- teemed panel of commercial real estate professionals and over 150 industry attendees. Here is a brief summary of what was discussed and what we learned. The COVID-19 business shutdown was swift as it spread over the local econo- my, drastically changing consumer behavior and forc- ing area landlords, brokers, and economic development

COVID-19 has changed many things, including our industry. But after dealing with adversity and adapting to the "New Nor- mal," hopefully with a vaccine over the mid-term, the market uncertainty will surely diminish and, eventually, we can resume business and economic gains. Hopefully we will be able to look back on these days with pride in the way we worked together to get through it safely. But until that day, we have a lot of work to do, so let’s get to it!” Look for CIRC's upcoming events in the fall, starting September 9. Meet the Presenters (1st Row - Program organizers): Robert Stenta , Pettinaro Jay L. White , Apex Realty Advisory Janet Pippert , Landmark Sci. & Eng. (Lorraine Sheldon, Emory Hill- not shown) (2nd Row, Moderator & Panelists): Bill Russell , Wye Realty Advisors (Mod.) Jeffrey Flynn , City of Wilmington E.D. Robert Buccini , Buccini/Pollin Group (3rd Row, Panelists): Neil Kilian , SIOR, CCIM, NAI Emory Hill Pamela Scott , Esq., Saul Ewing CIRC Sponsors Polls 1. Should Rob Stenta shave the COVID- Stash and get a haircut? 67% - No, I like the Wyatt Earp look! 33% - Yes, it's got to go! 2. How much do you think local commercial real estate values have changed since COVID-19 began? 3. What is your outlook for local office leasing demand over the remainder of 2020? 55% - Absorption will be flat 30% - Absorption will decline 15% - Absorption will increase 4. What will our economic recovery look like? 72% - "Nike Swoosh" (slow & gradual) 55% - Downward by < 10% 11% - Downward by > 10% 30% - No change/held flat 4% - Increased

Membership Chair: James Manna BrightFields, Inc. Past President:

professionals to adapt to the uncertainty of the market as well. Most of the com- mercial landlords have reported the need to provide some sort of rent relief to a portion of their tenants, primarily to re- tailers. Typically this relief has been in the form of rent deferrals as opposed to rent reductions or abatements. Retail tenants have clearly been the most impacted, with restaurants, day cares, salons, and, of course, fitness centers being the hardest hit. While some office tenants have been adversely impacted, most have been able to proceed smoothly with their employees working from home, and, while they aren’t excited about paying for space they aren’t using at the moment, they have continued to pay their rents, largely, on time and in full. On a positive note, residential multi- family leasing activity and rent collec- tions have remained strong, while hotels are slowly, but surely, recovering after a significant and painful drop in their occupancy rates that occurred when almost all business and personal travel came to a screeching halt in March. The “shining star” in all the commercial real estate sectors, post-COVID, has been industrial. With its important place in our world when it comes to the manufac- turing, storage, and delivery of essential products and goods, demand for indus- trial space has increased and shows no signs of slowing down. In Delaware, construction was deemed essential during the shutdown, allowing major construction projects to continue with new safety guidelines. Amazon’s

massive (3.8 million square foot) distri- bution center on a portion of the former GM Boxwood plant at Del. 141 was one of the most visible projects we have watched proceed rapidly during the shut- down. In addition, the demolition of the former DuPont Barley Mill Plaza office complex was also completed during the shutdown, continuing to pave the way for a mixed-use complex which will include Delaware’s first Wegmans. In short, our panelists, and most of CIRC’s membership, have kept very busy combating the impacts of the virus in its own unique ways. Whether it is by help- ing a company get its paperwork together to apply for a federal PPP loan, working through a rent deferment plan, retrofit- ting offices to promote more social dis- tancing, or ensuring office buildings have enhanced cleaning/janitorial services to fight the virus and make it safe for people to return to the office. There is so much we are doing to help our community through these challenging times. With more projects pushing forward as our industry looks to the future, the com- mercial real estate community is banking on people desperately wanting to get back out into the world. Whether for a face-to-face meeting with a client after months of “Zoom Fatigue,” or shar- ing a great meal with friends at a favorite restaurant, commercial real estate will always be a very important part of all of our lives.

Donald Robitzer The Commonwealth Group Benjamin Berger, Esq. Berger Harris, LLC Carmen Facciolo NAI Emory Hill Michael Hahn 44 Business Capital Jim O’Hara , Jr. NAI Emory Hill-Retail Division Lorraine Sheldon NAI Emory Hill Daniel Wham DSM Commercial Real Estate Ryan Kennedy Harvey Hanna & Associates — E X - O F F I C I O — Business Manager: Janet S. Pippert Landmark Science & Engineering

Legislative Lobbyist: C. Scott Kidner C. S. Kidner & Associates Legislative Affairs Chair: William Lower Harvey Hanna & Associates Economic Dev. Liaisons:

Robert Chadwick , NCCC EDC Joseph Zilcosky, Div. Small Bus. Kurt Foreman, Del. Pros. P'ship Jeff Flynn, City of Wilmington c o n t a c t u s Janet@circdelaware.org (302) 633-1705 www.circdelaware.org

16% - "W" recovery 12% - "V" recovery

5. How optimistic about the future are you after hearing from our panelists?

51% - More optimistic 47% - About the same 2% - Less optimistic

F inancial D igest F eaturing T ax I ssues /A ccounting

M id A tlantic Real Estate Journal — July 24 - August 13, 2020 — 9A


Nalbandian and Zilenziger represent borrower JLL arranges $59.975 Million financing of class A office assets P

For South Amboy multi-family acquisition Cronheim secures $38.625M financing & preferred equity

ARSIPPANY, NJ — JLL Capital Mar- kets has arranged $59.975 million in financing for Morris Corporate Center 1 & 2, a two-building, class A of - fice complex totaling 550,000 s/f in Parsippany. Working on behalf of the borrower, P3 Properties , JLL placed a four-year, float - ing-rate acquisition bridge loan through Bridge Invest- ment Group . The properties are located at 300 Interpace Pkwy. and 1 Upper Pond Rd. within the larger Morris Corporate Center master planned de- velopment in the Parsippany submarket of New Jersey. The 31-acre site is less than a mile from I-80 and in close proximity to Rte. 46. Morris Corporate Center 1 & 2 fea- tures four full-height atrium lobbies, two full-service cafes, a 5,000 s/f fitness center with locker rooms and a yoga studio, two conference areas including an executive board - room, covered and surface parking and a central pond with trellis seating areas and walking path. The four-story properties are currently 67% leased to a variety of tenants including Zurich Insurance, York Risk Services, Ipsos, ICAP and Wallenius Wil - helmsen. The JLL Capital Markets team representing the bor- rower was led by senior man- aging director Greg Nalban- dian and associate Andrew Zilenziger . “This value-add bridge loan

Bayside Cove Apartments

Amboy Train Station, the planned South Amboy Ferry Terminal and the Raritan Bay Waterfront. In Union, NJ, Cronheim Mortgage has secured $12.8 mi l l ion in financing for a 350,000 s/f shopping center on Rte. 22. One of Cronheim’s life com- pany correspondents provided a long-term mortgage on the center which features Shop- Rite and Best Buy as anchors. The 10-year, non-recourse loan provided a rate lock at applica- tion fixed in the low 3%’s. The loan was closed in late- April, despite several tenants required to remain closed by State mandates related to COVID-19. Cronheim worked to get the lender comfortable with the collateral and market despite the interruption to business. This seven-building center is well-located in a densely popu- lated area of Union County, NJ, and has been well occupied since opening in the 1950’s. MAREJ

SOUTH AMBOY, NJ — Cronheim Mortgage has ar- ranged a $32.625 million loan and $6 million preferred equity investment for the acquisition of Bayside Cove Apartments, a 127-unit, class A multi-family complex located in South Am - boy. The Sponsor went under con- tract on the acquisition in late 2019, and Cronheim secured a commitment from a local bank shortly thereafter. The seven- year loan provides two years of interest only, a fixed interest rate at 3.375% and an LTV of 75%. The preferred equity was provided by a private investor, sourced by Cronheim. Despite the COVID-19 lock- down and the unknown future impact from the virus, Cron- heim was able to maintain the initial debt and equity terms and closed the acquisition in late-March. The complex was constructed in 2018 and features luxury amenities. It is located within walking distance of the South

Morris Corporate Center 1 & 2

was closed just before the impact of the Covid-19 crisis became widespread,” Nal- bandian said. “Bridge distin- guished themselves from the onset and executed flawlessly, providing P3 with a very at- tractive rate at 80% LTC with a future funding facility on a non-recourse basis.” In other news JLL Capital Markets news, the team of senior managing director Thomas Didio and analyst Gerard Quinn has arranged $30 million in financing for Ivy Lane, a 237-unit, garden- style multi-housing commu- nity in Bergenfield, Bergen County. JLL worked on behalf of the borrower, Tower Manage- ment Service, L.P., to secure the 10-year, fixed-rate loan through Freddie Mac . The loan will be serviced by Hol- liday Fenoglio Fowler LP, a JLL company and a Freddie Mac Optigo lender. Ivy Lane is located on the

border of Teaneck and Ber- genfield along Liberty Rd. less than eight miles from Manhattan. The property consists of 17 two-story build- ings that house a mix of 142 one-bedroom, 86 two-bedroom and nine three-bedroom units with an average unit size of 582 s/f. Ivy Lane also includes 227 on-site parking spaces and 102 garages. The borrow- er also owns and operates the adjacent Omni Apartments and both communities have experienced high historical occupancies. Didio and Quinn repre- sented the borrower . “We were very pleased to execute this fixed-rate loan during the current market conditions,” Didio said. “Tow- er Management and Freddie Mac did a great job commit- ting to and closing the loan, and a big thanks to our in- ternal Freddie Mac team for their hard work getting this to the closing table.” MAREJ

INSIDE: Michael Mullin, Integrated Business Systems........................................................................................................................... 10A Robert Rahner, Cost Recovery Solutions LLC........................................................................................................................... 11A Dwight Kay and Chay Lapin, Kay Properties and Investments, LLC..................................................................................12-13A Ryan Williams, WithumSmith+Brown......................................................................................................................................... 14A

10A — July 24 - August 13, 2020 — Financial Digest — Tax Issues/Accounting — M id A tlantic Real Estate Journal


T ax I ssues /A ccounting

ost construction busi- nesses select a ba- sic accounting soft- Transitioning to an ERP System may be the key to growing your profitability 10 signs the time has come for a new construction accounting system M transmissions are in one shared repository.

developer when that “standard” accounting product is simply not enough – a time when a full Enterprise Resource Planning platform (ERP) makes sense. Here are 10 common signs that your business is ready for a full ERP system. 1. Your company has be- come multiple entities. There are many reasons why your corporate structure may need to become more complex. For example, a developer that manages its own properties may want to track projects as separate entities during con- struction and after build-out. Your business software should

accommodate multiple entities while still providing an overall view of your business finances. 2. You need to manage customer relationships more closely. A robust ERP system with a fully integrated customer resource management (CRM) platform should function as the single storehouse for all docu- ments and agreements. This includes information about billing milestones, work order submittals, change orders and other compliance records that impact a project. Additionally, ERP integrates with email, so all related conversations and

duplicate data entry. As companies mature, they often need to add more pow- erful payments processing, CRM, marketing automation and business analysis tools. A robust ERP system built on open application programming interface (API) standards en- ables dissimilar software ap- plications to communicate with each other and dynamically share data (i.e. “talk” to each other), eliminating the need for duplicate entry. 5. You need greater in- sight into your business. Your accounting system should help you manage the business and improve perfor- mance. Look for ERP software that lets you set up visual, intuitive dashboards contain- ing widgets that track key performance indicators and applications from inside and outside your organization. Us- ers should be able to drill down to quickly access and track critical project data, material arrival timelines, invoice ap- provals and expenses. 6. You’ re not gett ing enough customization or innovation. Your business sof tware should adapt to your business, not the other way around. If you want to take advantage of business functionality that en- hances profitability, you’ll need to make the move to an ERP platform that offers customiza- tion, and delivers new proptech features and innovations that can radically enhance the way you run your whole business – not just your accounting. 7. You’re not receiving the benefits of a true SaaS system. True SaaS provides access anywhere, anytime on any de- vice. A modern cloud ERP plat- form allows you to access your business applications from any web-enabled device without installing software. There won’t be additional services to buy, applications to install or special configurations to endure. 8. You’re running out of user licenses. When you first signed up, your software’s user capacity probably seemed like more than enough. But as your business grows and adds locations and headcount, you may find that you’re running through those licenses quickly – and can’t even consider providing limited secure access to users such as continued on page 16A

3. You need greater con- trol over production and inventory. The capability to track your inventory across all locations is essential to timely deliv- ery and efficient operations. Your software should give you the flexibility to choose your method – whether average cost, first in first out or last in first out – and to change over time. Your system should be intui- tive as well, making proactive inventory replenishment sug- gestions. 4. You’re wasting time on

ware program wh e n t h e y first launch ope ra t i ons . At that point, it is a good choice – af- fordable, and easy to set up and use. And the software

Michael Mullin

may even have limited func- tionality specifically designed for the industry. But there comes a time in the lifecycle of every growing contractor and

Integrated Business Systems and Acumatica provide the best business management solution for transforming your company to thrive in the new digital economy. Connected Business. Delivered.


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M id A tlantic Real Estate Journal — Tax Issues/Accounting — Financial Digest — July 24 - August 13, 2020 — 11A T ax I ssues /A ccounting


By Robert Rahner, Cost Recovery Solutions LLC Cost segregation in a COVID-19 world: a key tax strategy that can provide CRE a silver lining

estate have taken due to COVID- 19 . Depending on which expert predi c t i ons you choose to believe, there is a chance t h a t t h e worst of the W

e all know the hits that certain sectors in commercial real

to apply 100% bonus deprecia- tion to Qualified Improvement Property (QIP), which refers to certain interior improvements made to a non-residential building. The change is also retroactive to 2018 and 2019. • It provided a five-year loss carryback for 2018 – 2020 tax returns, allowing some inves- tors to modify prior tax returns to offset taxable income and obtain a refund. Taxpayers can benefit even more by combining these new provisions. For example, if a company chose to apply 100% bonus depreciation for QIP

identified in a 2018 cost seg - regation study and it created a significant loss, it could use the loss to modify its return in a prior year when tax rates were higher. Cost segregation gives in- vestors more opportunities to create significant losses and increase cash flow in this COVID-19 pandemic. Do cost segregation providers have to be licensed, and how are studies performed? Currently, there are no for- mal licensing requirements continued on page 20A

Robert Rahner

crisis is yet to come. The uncer- tainty the future holds leaves many investors searching for a plan to position themselves to weather more potential storms. One promising avenue is through a cost segregation study. What is cost segregation and how can it help me? This IRS-approved, engi- neering-based tax strategy maximizes depreciation de - ductions on commercial real estate property. Commercial buildings generally must be de- preciated over 27.5 or 39 years. However, the IRS has desig- nated certain types of building components and land improve- ments that can be depreciated at a much faster rate of 5, 7 or 15 years (such as flooring, ac - cent lighting, decorative mill- work and landscaping). Under the Tax Cuts and Jobs Act (TCJA) of 2017, an additional immediate 100% bonus depre- ciation incentive effectively cut that rate even further to just 1 year. Cost segregation studies identify which assets in and around a property qualify for these reduced depreciation schedules. Reclassifying quali- fied assets can save real estate investors tens of thousands or even millions in income taxes. A study can be performed on new construction/acquisitions, or even on previously owned property (up to 15 years) with- out amending tax returns. The table above details the percentage of assets that can typically be reclassified as part of a cost segregation study and the resulting tax savings gained based on different prop- erty types. A quality study can provide critically needed tax relief to many in our COVID-19 world. Did the CARES Act affect cost segregation? The CARES Act provided some key benefits for real es - tate investors: • It restored a 15-year depre - ciation schedule and the ability

Increasing cash flow one property at a time COST RECOVERY SOLUTIONS LLC CRS

• Cost Segregation • Energy Tax Services • Tangible Asset Appraisals • Fixed Asset Reviews Experts in helping commercial property owners increase their tax savings and return on investment Discover the CRS difference: • 20+ years of experience • ASCSP, ASA, CFA certifications • Serving clients nationwide • A trusted partner with proven results 106 Apple Street, Suite 105 Tinton Falls, NJ 07724 732.548.3855 info@crscostseg.com Call for your FREE benefits proposal to start saving today!


12A — July 24 - August 13, 2020 — Financial Digest — Tax Issues/Accounting — M id A tlantic Real Estate Journal


T ax I ssues /A ccounting

By Dwight Kay and Chay Lapin, Kay Properties and Investments, LLC Kay Properties creates online real estate and 1031 exchange educational platform A

t Kay Properties we have created an online real estate platform and marketplace at www. kpi1031.com that provides in- vestors the opportunity to ex- plore various 1031 exchange investment opportunities across the entire country and across multiple real estate asset classes. More importantly, we have created an extensive real estate and 1031 exchange educational platform. Over the years, investors from across the world have used the Kay Properties Platform to

published book, live updated blog, case studies, press cen- ter, video content, podcasts, weekly educational confer- ence calls, an audiobook, free Subscription to the DST industry magazine and a free subscription to the 1031 Exchange Times newspaper (Sign up for free at www. kpi1031.com or email info@ kpi1031.com to sign up for your free subscriptions). The Kay Properties Market- place Platform has provided investors access to over 25 different real estate sponsor companies that put together

various opportunities for in- vestors primarily within the asset classes such as Mul- tifamily/Residential, vari- ous Commercial Assets, Net Lease Properties, Industrial, Medical and Self-Storage. Within the marketplace, investors can review offering documents that include the business plan, due diligence materials and the risk factors of each 1031 investment. This is where the www.kpi1031. com marketplace platform really sets itself apart from others. If an investor were to go

out on their own to purchase real estate, they may have to potentially spend thousands of dollars on legal fees and due diligence reports (property condition report, appraisal, environmental report, survey, zoning report, etc) in order to confirm that there are no major issues with the prop- erty, and these due diligence reports can take weeks to be completed as well as are very costly. On the Kay Properties marketplace, this information has already been completed and provided for investors to review. The typical investor that has invested in the Kay Prop- erties Marketplace has looked to complete a 1031 exchange, diversify their real estate holdings by making cash investments, or utilizing vari- ous other investment options such as Opportunity Zone Fund investments. These investment options can be great for investors who have very real capital gains tax problems due to selling appreciated assets, for those investors who no longer want to manage their property and deal with tenant headaches, as well as for investors who have a full-time job and dont have time to manage real estate on top of their full schedule. One potential advantage that the Kay Properties Plat- form provides to investors is access to nationwide data; we work and partner with some of the largest real estate companies in the country that provide us with their research and give an overview of their assets and performance. This can potentially help to set in- vestors on the www.kpi1031. com marketplace ahead of others. The Kay Properties Plat- form has had clients from across the country invest into over $20 billion worth of real estate offerings that were both for 1031 exchange inves- tors via Delaware Statutory Trust - DST offerings, Oppor- tunity Zone Fund investors and direct cash investors seeking a way to diversify away from stock market volatility. Dwight Kay is CEO and founder of Kay Properties and Investments, LLC. Chay Lapin is senior vice president of Kay Properties continued on page 20A

educate themselves and learn about the various categories within the 1031 exchange and real estate investing industry. Every investor learns in their own way and we have been able to accommodate various options for people within our educational plat- form, a few examples are: a

Deadline: August 14, 2020 INVESTMENT/ MULTIFAMILY

FINANCING 40 Under 40


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