ISSUE HIGHLIGHTS Volume 34, Issue 10 Oct. 21 - Nov. 17, 2022
153 Linden Street trades from Waitex to Thor Equities Lee & Associates New Jersey negotiates $52 Million Passaic, NJ
ASSAIC, NJ — Lee & Associates New Jersey this month completed the $52 million sale of 153 Linden St., a 330,000 s/f, fully-leased in- dustrial property in Pas- saic. The commercial real estate services firm’s Rick Marchisio, Brian Lynch and Drew Maffey were re- tained by the seller to effect a sale of the property and ul- timately procured the buyer in the transaction. New York-based Thor Eq- uities purchased 153 Linden St. from Waitex . “In a fiercely competitive marketplace, all parties were able to negotiate an equitable deal – a testa- ment to both the seller and buyer,” Marchisio said. “The bidding process was highly competitive, which points to continued velocity and ap- petite for industrial product throughout the entire State PHILADELPHIA, PA — The team of Richard Goro- desky, SIOR and Adam Gorodesky, CPA have suc- cessfully leased 2801 Red Lion Rd. to International Vitamin Corporation on behalf of First Industrial Realty Trust. The property, at 180,171 square feet, is one of the larg- est single tenant industrial
SOUTHERN NEW JERSEY
WOMEN IN BUSINESS
153 Linden St.
of New Jersey.” The warehouse property sits on 10.7 acres in one of
the nation’s top-tier indus - trial markets close to Rte. 21. It offers easy access to
both Newark Liberty Inter- national Airport and Port Newark-Elizabeth. MAREJ
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Gorodesky, SIOR and Gorodesky, CPA of Colliers concludes full building lease at 2801 Red Lion Road
Directory ROP (Front Section) ........................................... Section A DelMarVa.................................................................. 5-6A Financial. .................................................................. 7-8A Retail Development Reimagined............................. 9-11A CRE Organization’s Events Calendar ............................ 14A Billboards & Business Card Directory.......................... 15A New Jersey..............................................................1-12B Pennsylvania........................................................13-BC-B Owners, Developers & Managers....................... Section C Women in Business........................................... Section D
2801 Red Lion RD.
this year. Colliers has kept this building continuously occupied since 2011, with the initial lease being to TJX who will be relocating to a larger facility at 9801 Blue Grass Road, which was also brokered by the Colliers team. International Vitamin Cor- poration (IVC), headquartered in Irvine, California, is the
number one seller of private label store brand vitamins and supplements in the United States and a contract manu- facturing partner to consumer wellness brands. IVC will be expanding its presence in Philadelphia and is expected to take occupancy at 2801 Red Lion Road in the 1st quarter of 2023. MAREJ
facilities in the City of Phila- delphia, covering 10.89 acres and located off the Roosevelt Boulevard (US Route 1) and adjacent to the Northeast Air- port in Northeast Philadelphia. Representing First Indus- trial Realty Trust in the trans- action, this lease will insure zero vacancy once the existing tenant’s lease expires later
Inside Cover A — September 23 - October, 20, 2022 — M id A tlantic Real Estate Journal
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M id A tlantic Real Estate Journal — October 21 - November 17, 2022 — 1A
2A — October 21 - November 17, 2022 — M id A tlantic Real Estate Journal
M id A tlantic Real Estate Journal
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M id A tlantic R eal E state J ournal Publisher, Conference Producer ..............Linda Christman AVP, Conference Producer ...........................Lea Christman Conference Producer .........................................Matt Wolpe Editor/Graphic Artist ......................................Karen Vachon Contributing Columnist ..Jason Aster, KBA Lease Services Mid Atlantic R eal E state J ournal ~ Published Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 117 HMS Halsted Dr., Hingham, MA 02043 USPS #22-358 | Vol. 34, Issue 10 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Phone: 781-740-2900 www.marej.com
How to negotiate a commercial lease to limit the effects of inflation
he burden of inflation - ary increases, like the ones currently ham - pering the economy, should be shared fairly by both ten - ants and landlords. Yet such increases in operating costs are often passed on to ten - ants through additional rent provisions in a lease. If you’re negotiating a new commercial lease or a sig - nificant lease modification, you have an opportunity to protect your interests and negotiate a cap on how high costs can rise in a given year. Here’s how to approach these negotiations. Agree on what expenses can be controlled As part of your lease, your landlord will typically require you to pay for certain operat - ing expenses. Some of these expenses the landlord will con - sider noncontrollable, including taxes, insurance, and utilities. Others are theoretically in the landlord’s control, like what maintenance or security service T
Our global network of 75 commercial real estate offices is the clear choice.
they hire, though there are nu - ances — if the selected team is unionized, for example, the landlord might argue the union rates are noncontrollable. Determine a cap for increases in controllable expenses Once you’ve reached an agreement on how to define controllable expenses, you can negotiate a cap on how high those expenses can rise each year. There are several ways to de - termine the specifics of how the cap calculation will work, some of which are more beneficial to you and some of which your landlord would prefer.
continued on page 16A Cumulative caps are less aggressive. A cap of 5% per year means your controllable expenses shouldn’t exceed 15% in the third year of your lease. You can also base caps on controllable expenses defined in your lease, or controllable expenses you paid previously. If you base caps on expenses de - fined in the lease — say, 105% of controllable expenses — your costs may be higher than what Landlords are most likely to prefer compounding caps which, as the name implies, compound quickly over time like an interest rate to the landlord’s benefit.
Firmly Rooted in the Law and in the Community We are well grounded in every facet of real estate law, from acquisition to construction. We are committed to serving the needs of our clients and our communities.
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Call or email Kerrin Devine email@example.com 781.740.2900
M id A tlantic Real Estate Journal — October 21 - November 17, 2022 — 3A
4A — October 21 - November 17, 2022 — M id A tlantic Real Estate Journal
Great CRE Events Cont. Ed…Speakers…Networking www.CircDelaware.org EVENTS SCHEDULE Nov. 9 (Wed., 5:30-8:30 PM) Joint Holiday Dinner Meeting – Networking with SIOR / CCIM / CIRC / TCSR / DREW /AI Speaker: Brian Cohen, Ensemble Real Estate Investments Presentation: Philadelphia Navy Yard 2022 Redevelopment Plan Location: Harry's Savoy Ballroom , 2020 Naamans Rd., Wilmington Dec. 14 (Wed., 11:30-1:30) Holiday Lunch Mixer Holiday Festivities & Charitable Giving with Raffle/Door Prizes Location: University & Whist Club , 805 N. Broom St., Wilmington Register online: circdelaware.org goto Event page CONTINUING EDUCATION Classes Accredited: DE*PA*MD*NJ accredited real estate school/instructors: Frederick Academy of Real Estate Jan. 11, 2023 (Wednesday) – DuPont Country Club 8:30 a.m. – Legislative Updates DE - Module 5 Legislative Updates MD - 2019-22 MD & Federal Legislative Issues (A) 3.0 Required
Annual Joint Holiday Dinner November 9 (Wed.) 5:30 PM Harry's Savoy Ballroom
—OFFICERS— President: Jay L. White , MAI, CRE® Apex Realty Advisory Vice President: Cindy Fleming Jones Lang LaSalle Treasurer: *Barton L. Mackey, Jr. Patterson-Woods Associates Secretary: Daniel Wham DSM Commercial Real Estate *2022-2023* Board of Directors —DIRECTORS— Past President & Cont. Ed. Chair:
This Joint holiday dinner event is a splendid opportunity for members and guests of the tri-state regional area's CRE organizations to join together for quality networking with Philadephia Chapter of SIOR—PA/NJ/DE CCIM Chapter—Commercial Chapter of Tri-County Suburban REALTORS—Delaware Real Estate Women—Appraisal Institute—and CIRC . Harry's promises–as always–a delicious evening in a convenient tri-state area location.
* Robert Stenta Pettinaro Management Program Co-Chair: Lorraine Sheldon NAI Emory Hill Program Co-Chair: Ryan Kennedy Harvey Hanna & Associates Membership Chair: * James Manna BrightFields, Inc.
PA - Real Estate Hot Buttons and Issues - 3.5 elective NJ - Real Estate Hot Buttons and Issues - 3.0 elective 1:30 p.m. – Professional Standards
Brian Cohen, SVP and Regional Director East for Ensemble Real Estate Investments will present
CIRC Welcomes New Members DE - Module 2 Professional Standards MD - MD Code of Ethics - 3.0 Required PA - Ethics in Real Estate - 3.5 elective NJ - Ethics in Real Estate - 2.0 Hours Credit - CORE Complete 2023 (Jan-Apr) CE Schedule is Posted Online: circdelaware.org goto Education page
—EX-OFFICIO— Business Manager Janet Pippert Landmark Science & Engineering Legislative Lobbyist C. Scott Kidner C. S. Kidner & Associates Legislative Affairs Chair Brett Saddler Claymont Rennaissance Dev. Corp. contact us (302) 633-1705 Janet@circdelaware.org www.circdelaware.org * Donald Robitzer The Commonwealth Group Benjamin Berger , Esq. Berger Harris, LLC * Carmen Facciolo NAI Emory Hill * Michael Hahn 44 Business Capital Neil Kilian, SIOR, CCIM NAI Emory Hill * Pamela Scott , Esq. Saul Ewing Arnstein & Lehr LLP * Elected to a new 2-year term
the 2022 Navy Yard Plan recently unveiled by PIDC and Ensemble/Mosaic, a transformative roadmap for equitable growth that through- out the next 20 years will deliver 12,000 new jobs, 8.9M SF of new life science, commercial, residential, retail, and mixed-use development
and $6B of new in- vestment—of which, $4.8B will be gener- ated by Ensemble/ Mosaic’s development initiatives.
LP talks First State Logistics
At our October 12 monthly membership meeting, Tim Zulick , SVP, and Tim Shaw , VP, of Logistics Property Company (LP) , spoke about their company and projects in the Notheast Region, which includes 1,000,000 square feet at First State Logistics Park in Glasgow, DE. See CIRC's Resources/Presentations web page for more info.
Newly-approved individual members attending the October lunch event (shown from left) : • Christopher Anders, Comcast Business • Mary Rennar – Premier Pro Cleaning Services • Tim Jack – PCS • Matt Terrell – DSO Furniture • Nicholas Koski-Vacira – Asset Management Alliance • Jason Pinder – Belfor Property Restoration and CIRC Membership Chair, Jim Manna, BrightFields. Photos by Dee Cairo for Sonitrol Security our photo sponsor.
(above, from left) Tim Shaw, Jay Whiate, and Tim Zulick)
M id A tlantic Real Estate Journal — October 21 - November 17, 2022 — 5A
An innovative development approach led to the creation of 240 apts. for low-income seniors County and state leaders celebrate grand opening of Lake Anne House in Fairfax County
ESTON, VA — En- terprise Commu- nity Development and Fellowship Square celebrated the grand opening and ribbon cutting of Lake Anne House, featuring 240 modern apartment homes for low-income seniors in Reston. Key project partners joining this celebration in - cluded Virginia Housing, Fairfax County Board of Supervisors, Fairfax County Redevelopment and Housing Authority, Virginia Department of Housing and Community Development, Capital One and the U.S. Department of Housing and Urban Development (HUD) . The in-person event marked the end of a multi-year effort to redevelop the 1970s-era hous - ing community and preserve affordable housing in Fairfax County, one of Virginia’s most expensive counties. “Lake Anne House is an ex - ample of the high-quality af - fordable housing we can build with ingenuity, tenacity, and partnership. It is what fixing our housing supply looks like - a demonstration of how we can work collaboratively at all levels to build and reha - bilitate housing - project by project, block by block, com - munity by community - across the country,” said United States Deputy Secretary of Housing and Urban Develop - ment Adrianne Todman , who spoke at today’s event. “The Biden-Harris Adminis - tration has prioritized hous - ing supply and affordability, and HUD partners with com - munities to build and rehab homes like Lake Anne House across the country each day.” “This new state-of-the-art building in terms of energy efficiency and accessibility sets a new standard for what affordable housing can be. Most importantly, it will enable financially fragile older adults to be able to age in place here in Northern Virginia for many years to come,” said Christy Zeitz , CEO of Fellowship Square. R
from the original building to the new Lake Anne House in phases over the summer. Demolition of the now vacant circa-1970 buildings on the east half of the site will occur by the first quarter of 2023, and the land will be sold for future townhomes to a third- party homebuilder. Lake Anne House is located at 11444 N. Shore Drive, Reston, in Fairfax County, Virginia. The architect for Lake Anne House is Grimm + Parker Architects , and the civil engineering firm is Charles P. Johnson and Associates . The owner’s rep - resentative is Orr Partners , and the general contractor is Bozzuto Construction . The building is managed by S.L. Nusbaum Realty , and Enterprise Community Development will provide resident services. To bring the vision to life, the development team secured project-based rental vouch - ers for 100% of the units and secured financing to meet its ambitious goal. The Fairfax County Redevelopment and Housing Authority awarded the project 122 new project- based vouchers, and HUD transferred and assigned all remaining vouchers from the old Fellowship buildings. The project financing incorporated $46.5 million in tax-exempt bond financing from the Vir - ginia Housing and a $700,000 loan from the Virginia Housing Trust Fund. Additionally, the financing package contained $21.5 million in Low-Income Housing Tax Credit equity provided through Enterprise Housing Credit Investments by Capital One, $3 million in Blueprint Funding from the Fairfax County Redevelop - ment and Housing Authority, $7.2 million in bridge financ - ing from the Enterprise Com - munity Loan Fund and equity from Enterprise Community Development and Fellowship Square. The market proceeds from the sale of the land under - neath the old Fellowship build - ings will provide repayment of all bridge financing. MAREJ
Show from left: Fairfax County supervisor for the Hunter Mill District Walter Alcorn; senior director, Real estate development for Enterprise Community Development Matt Engel; chief of programs for Virginia Housing Tammy Neale; Lake Anne House resident Steve McAvoy; Commissioner, Fairfax County Redevel- opment and Housing Authority, Hunter Mill District, Richard Kennedy; Capital One senior VP and senior capital officer for the Mid-Atlantic Region Ed Delany; Fellowship Square CEO Christy Zeitz; Enterprise Community Development president and CEO Brian McLaughlin; Scott Hoekman, president, Enterprise Housing Credit Investments; Director of Fairfax County Redevelopment and Housing Authority Thomas Fleetwood; Director of Partnerships and Communication for Jeffrey C. McCay, Chairman, Fairfax County Board of Supervisors, Natalie Nguyen Woodruff. Photo credit: Harry Connolly
the organization would con - struct a new building on an underutilized portion of the site. This would enable the seniors to relocate only once to their new apartments once the building was completed and enabled the developer the ability to create homes with improved accessibility, energy efficiency and numer - ous amenities. “When you look at Lake Anne House today, it’s easy to see its beauty and cut - ting-edge design. But there’s so much more,” said Brian McLaughlin “There’s a ter - rific story of working hand- in-hand with residents, of partnerships with the County and financing partners, and of staying determined and focused through an unprec - edented and difficult pan - demic. There’s so much to celebrate and be proud of in this moment.” Enterprise Community Development and Fellowship
While Reston is now one of the most expensive zip codes in the state, residents at the Lake Anne House – many of whom live on Social Security or Supplemental Security In - come alone, with an average income between just $10,000- $15,000/year – are able to live independently in the dynamic Reston community. In 2015, nonprofit senior housing operator Fellow - ship Square issued an RFP to redevelop the Lake Anne Fellowship House, an aging senior housing community built in the 1970s. Communi - ty Preservation and Develop - ment Corporation (Enterprise Community Development’s predecessor) responded with a novel solution to best meet the needs of Fellowship Square and its community of senior residents (age 62+) . Instead of updating the cur - rent building and causing its residents to inconveniently relocate during renovation,
Square took on this innova - tive development approach and constructed the new building adjacent to the origi - nal Lake Anne Fellowship House. The new Lake Anne House includes 56 studios, 178 one-bedroom and six two-bedroom apartments. Enhancements include nu - merous amenities for its older adult residents, including a fitness center, arts and crafts room, social hall, sunroom, game room, outdoor terrace, wellness clinic for visiting medical professionals, and on-site management and resi - dent services offices. All units incorporate Universal Design standards, which were not in place when the original building was constructed in the 1970s. Fifty-four of the 240 units are fully handicap accessible, and the building is Earthcraft and EnergyStar certified. Residents were provided relocation support and moved
6A — October 21 - November 17, 2022 — DelMarVa — M id A tlantic Real Estate Journal
D el M ar V a
Class A industrial park located in Manassas, VA Matan breaks ground on 232,000 s/f of spec warehouse
Firm expands portfolio in Virginia FNRP adds Promenade at Manassas in Virginia
REDERICK, MD — Matan Companies has broken ground on two buildings at its latest North - ern Virginia project, Redstone Industrial. The project, which was originally slated for four- buildings before Matan sold the south parcel last Spring, will deliver the newest class A industrial park to Manassas, VA. Located at 11501 Univer - sity Blvd., the 20-acre develop - ment site is ideally situated in the heart of Prince William County’s I-66 corridor near the FBI Headquarters and just off Prince William Parkway. Positioned in the Data Center Overlay District with M-1 zoning, the buildings will offer options to the widest array of users, from data center to bio - tech and all forms of industrial and last mile uses as well. The buildings will feature 32’ clear ceiling heights, tilt- up concrete construction, 50’ x 52’ column spacing, 60’ speed bays, 120’ truck court, along F WASHINGTON, DC — Na - tional interdisciplinary design firm HGA announces it has signed a lease to move its DC Metro region headquarters to the historic Woodies Building at 1025 F Street, NW, in Penn Quarter. HGA is taking 17,000 s/f on the building’s second floor which is located directly above Metrorail’s Metro Cen - ter station. The DC studio offers services in architecture, engineering (MEP, structural, fire protection), interior de - sign, lighting design, and workplace design. “Moving to one of Washing - ton’s quintessential historic buildings in the heart of the city puts us closer to our clients and offers HGA an extremely visible footprint in downtown Washington via our new sec - ond floor storefront,” said Jay Scruggs, principal and office director of HGA in DC. “We look forward to designing a truly HGA environment in this exceptional space that will showcase what we have learned about the post-Covid workplace.” Built in the late 1800’s, the building was home to the Woodward & Lothrop flagship department store, until it closed in the 1990’s. Douglas Development acquired the
Promenade at Manassas
MANASSAS, VA — First National Realty Partners, LLC (FNRP) announced the addition of Promenade at Manassas to its grocery- anchored shopping center port - folio. This 287,000 s/f asset marks the vertically integrated real estate firm’s expansion in Virginia and continues its na - tionwide growth in the open-air retail property sector. The market-dominant cen - ter is anchored by an ap - proximately 107,000 s/f Home Depot, a tenant at the center since it was constructed in 1995, and co-anchored by a new 43,000 s/f local interna - tional grocer, Oh! Market. The Promenade at Manassas tenant roster also features a strong mix of national retail - ers, including Ashley Home Furniture, Planet Fitness, The Tile Shop and Sherwin Williams. The remaining va - cancy in the center provides meaningful upside potential NEW YORK, NY — New- mark Valuation & Advi- sory (V&A) announced that Douglas L. Nickel, MAI, FRICS and Michael Silver- man, MAI, CRE, MRICS have been promoted to lead - ership positions to further strengthen Newmark V&A’s presence in the Mid-Atlantic region. Nickel has been pro - moted to senior managing director and market leader for the District of Columbia, MD, Northern VA and Dela - ware region; and Silverman has been promoted to senior managing director, serving as market co-leader for Eastern PA and Southern NJ, along - side Senior managing direc - tor, Joseph D. Pasquarella, MAI, CRE . Both Nickel and Silverman will report to U.S. Practice Lead, Helene Ja- cobson, MAI, MRICS .
by way of increased occupancy and cash flow. “The purchase aligns with FNRP’s strategic expansion targeting primary and key secondary markets across the country,” said Matt Annibale, senior director of acquisitions. “The property’s unmatched regional location and lineup of traffic-generating, destination tenants allow Promenade at Manassas to benefit from the tremendous demographics of this affluent and densely popu - lated in-fill market.” Promenade at Manassas is located 31 miles west of Wash - ington, DC, at the intersection of I-66 and Sudley Road. It serves a population of nearly 179,000 people, with average household incomes exceeding $122,000, within a five-mile radius of the center. Ryan Sciullo of CBRE represented the seller in the Promenade at Manassas transaction. MAREJ “Both Doug and Michael are highly skilled and knowl - edgeable appraisers who, along with Joe Pasquarella, have spent the last 25+ years helping clients and building strong relationships in the greater Mid-Atlantic region,” said Jacobson. “Their work ethic and expertise have al - lowed them to build com - mendable reputations, and we are thrilled to see them excel in these new Market Leader roles.” Prior to joining Newmark, Nickel worked at Integra Re - alty Resources serving most recently as senior managing director, until joining New - mark in 2017. Prior to joining Newmark, Silverman was a managing director at Integra Realty Resources until joining New - mark in 2017. MAREJ
11501 University Blvd.
with LED lighting and ESFR sprinkler systems. Matan an - ticipates delivering the shell buildings in Late Summer of 2023. “We are very happy to begin construction on these build - ings at a time that we feel is optimal for the submarket. With very few options in both Loudoun and Prince Wil - liam County, these buildings should supply the market renowned landmark, rezoned the property, fully renovated the interior, and restored the facades. The 10-story building, located in the heart of Wash - ington, offers 17-foot ceilings, 11-foot windows, open floor plans, retail and class A office space. “We look forward to be - ing part of the vibrant Penn Quarter neighborhood with its myriad restaurants, entertain - ment venues, and retail offer - ings,” added Bruno Grinwis , principal at HGA in DC. HGA’s completed and cur - rent projects in the greater Washington, DC region in - clude: Workplaces: Cushman & Wakefield’s new DC headquar - ters, AFL-CIO Housing Invest - ment Trust’s DC headquarters, The Salvation Army’s national headquarters in Old Town, Al - exandria, Va., and The Morris and Gwendolyn Cafritz Foun - dation in Washington DC Premier cultural insti- tutions: Capital One Hall corporate events and perform - ing arts center in Tysons, Va., the Northern Virginia Science Center, and Monticello Burial Ground for Enslaved People and Contemplative Site Healthcare facilities: Chil - dren’s National Hospital, Radi -
exactly what it is in need of,” said Brad Benna of the Matan Companies. “Our zon - ing is flexible to allow for just about any use suitable for the 32’ clear product. And while there are economic headwinds out there, early leasing activ - ity for the site has been strong as industrial demand remains strong in the very supply- constrained Washington DC Market.” MAREJ ology Department suites over the past 10+ years Mixed-use: The Parks by JBG Smith, Arlington, Va. Public projects: Lamond- Riggs Library in Washington, D.C., The FBI Central Records Complex in Winchester, Va., and the Arthur J. Altmeyer Building offices for Senior So - cial Security Administration personnel HGA DC is also leading ongoing work for many local higher education institutions including the College of Wil - liam and Mary, University of Virginia, University of Mary Washington, and the Virginia Community College System. HGA was represented by Art Santry, Kurt Richter, Ned Goodwin & Matt Gar- cell of Cushman & Wake- field. Douglas Development worked with Mark Klug, Car- roll Cavanagh, Dimitri Ha- jimihalis, Emily Eppolito of CBRE. The move is expected to take place in October, 2023. A vir - tual walkthrough of the vacant space can be viewed here: HGA Woodies Building Office Space. HGA will maintain a studio in Old Town Alexandria, VA to continue to best serve our long- standing and developing client relationships in VA. MAREJ
HGA relocating to historic Woodies building in Downtown DC’s Penn Quarter
Newmark promotes market leaders in the Mid-Atlantic Region
F inancial D igest
M id A tlantic Real Estate Journal — October 21 - November 17, 2022 — 7A
Awards recognize impactful use of the Low-Income Housing Tax Credit Cinnaire Investments capture prestigious Charles L. Edson Tax Credit Excellence Awards
IRGINIA — Two of Cinnaire’s invest - ments have been award - ed the prestigious Charles L. Edson Tax Credit Excellence Award (Edson Award). 1300 Residences, a 50-unit senior and veterans housing projects in River Falls, WI, has been selected as the recipient in the Green and Healthy Housing category, and Rauner Family Veterans Apartments by A Safe Haven Foundation, a 75-unit affordable housing community for veterans, has been selected as the winner in the Housing for Veterans of the Armed Forces category. The Edson awards recognize outstanding affordable housing developments and organiza - tions that have demonstrated especially impactful use of the Low-Income Housing Tax Credit. The awards are named in honor of Charles Edson, a longtime champion of afford - able housing well-known for his role in establishing the LIHTC. “Chuck’s role in establishing the Low Income Housing Tax Credit resulted in a program RICHMOND, VA — Mike Lowry, Keith Wells, Reina Mazicioglu , and Hunter Wood of Northmarq’s Rich - mond debt/equity team, ar - ranged the $29.8 million con - struction financing for the multifamily development. The 122,464 s/f plot is located at 103 East 2nd St., Richmond. The permanent-fixed loan was structured on a 5-year term with 3-years interest only followed by a 30-year amorti - zation schedule. Northmarq secured the financing through a local bank. In a second transaction, Reina Mazicioglu and Hunter Wood arranged the $14 million refinance of Hopper Lofts. The 139-unit/4-story multifam - ily property (built in 2012) is located at 700 Everett St., Richmond. The permanent- fixed loan was structured with a 10-year interest only term followed by a 30-year amortiza - tion schedule. Northmarq se - V
Charles L. Edson Tax Credit Excellence Award (Edson Award) presentation.
that has provided more af - fordable housing than any other program in existence,” said Mark McDaniel , Cin - naire president and CEO. “The Housing Credit has supported millions of affordable homes in urban and rural communi - ties across the country. It is an honor to have two of our investments, 1300 Residences and Rauner Family VA Apart - ments, receive the prestigious
Edson Award.” Since 1986, the Housing Cred - it has financed more than 3.6 million homes for low-income households, including formerly homeless individuals and fami - lies, people with disabilities, veterans of the armed forces, and senior citizens. Through public-private partnerships, the Housing Credit offers a proven track record of financing safe, quality, and stable affordable
homes in communities where they are needed most. “As rents have skyrocketed over the past year, these prop - erties have provided sorely needed relief to their residents while improving their commu - nities,” said AHTCC CEO Em- ily Cadik . “This year’s Edson Award winners have changed lives and neighborhoods for the better and show how much more we could gain if we further
expand the program.” Recipients were recognized at an awards ceremony in Washington DC that brought together members of Congress, business, and nonprofit lead - ers to celebrate LIHTC devel - opments that are strengthen - ing communities, improving health, and boosting the local economy in urban, subur - ban, and rural neighborhoods across the nation. MAREJ interest only and a 30-year amortization schedule. North - marq secured financing for the borrower through a regional bank. “The borrower was interest - ed in a short-term bank loan with a flexible prepayment. We went to numerous New Jersey banks for the best deal for this strong, locally based client. We had many options and were able to get the client the best mix of rate, proceeds and fees,” said Ranieri. Tireno Towers, constructed in the late 1960’s, is a 54-unit mid-rise building offering a mix of studio, 1-bedroom and 2-bedroom units. Amenities at the property include bal - conies, laundry facilities on each floor and covered and surface parking. Three former office suites are in the process of being converted to four ad - ditional apartment units. The lobby is also being completely renovated. MAREJ
Northmarq completes $29.8M construction loan for 103 East 2nd St.
103 East 2nd St. aerial
cured the financing through its in-house Fannie Mae platform. Highly rated and located in the upgraded industrial neighborhood of Old Town Manchester, Hopper Lofts lies within city attractions and river views. The Richmond International Airport is only 10.1 miles away from the prop - erty, equaling a 19-minute drive. Residents benefit from proximity to three shopping
centers: City View Marketplace (0.4 miles), Wilton Square at Tobacco Row (2.0 miles), and Fulton Yard Site C (3.6 miles). There are five parks within only 3 miles, conveniently ac - cessible to walkers and bikers. Property features include: Granite kitchen countertops, polished concrete flooring, spacious closets, pet play area with washing station, state- of-the-art fitness center, club -
house, courtyard, lounge, on- site maintenance, elevator, door-to-door trash pickup, and assigned parking space. WHITE PLAINS, NY — Robert Ranieri , senior vice president/managing director of Northmarq’s White Plains debt/equity office, arranged refinancing of $9 million for Tireno Towers. The trans - action was structured with a 10-year term with 1-year
8A — October 21 - November 17, 2022 — Financial Digest — M id A tlantic Real Estate Journal
F inancial D igest
By Gary Brozowski, Kearny Bank Kearny Bank Commercial Real Estate Lending: A range of product and market options
few players willing to make construction loans and we took full advantage of these opportu - nities to expand our reach into this market. We continue to focus on accommodating our top clients as well as working with other active developers in the market, primarily with $12- to $20-million construction loans. We’re now emphasizing two product lines. Our commer - cial mortgages feature three-, five-, and seven-year terms, and range from $2 million to $60 million. A few recent ex - amples are a $42.65 million loan for Valley Stream Village
Townhomes in Newark, DE, as well as a $63 million loan for 100 Water Street Develop - ment in Jersey City, NJ. In the warehouse/industrial sector, we just completed a slightly more than $26 million deal for a distribution center located in Morrisville, PA. Our other line, construction- to-permanent loans, is basically 18- to 24-month construction loans that convert upon comple - tion to three-, five-, or seven- year commercial mortgages. Recent examples include a $14 million loan for a multifam - ily project in Garfield, NJ, as well as an $11 million loan for a mixed-use project in East Rutherford, NJ. In the case of both product lines – commercial mortgages and construction-to-permanent loans – our emphasis is on multifamily, mixed-use, retail, and warehouse/industrial prop - erties. For the time being, the bulk of our construction loans are written for projects in New Jer - sey, New York, and Pennsylva - nia … but we’re eager to expand that footprint. And why not? We’re already offering perma - nent loans in these states, plus Maryland, Maryland, Virginia, Massachusetts, Rhode Island, and Connecticut. So, there’s plenty of room for us to grow. Gary Brozowski is senior VP/director of Commercial Real Estate Lending at Ke- arny Bank. MAREJ In the article “Kearny Bank Commercial Real Estate Lend - ing: A range of product and market options” By Gary Bro - zowski, Kearny Bank (Mid Atlantic Real Estate Journal Volume 34, Issue 9, Sept. 23 - Oct. 20, 2022, pp 3D) there was an error in the 4th column. The title ran with the letter D . All versions of this article have been corrected. Private Lender Law purchases HQ in Marlboro, NJ MARLBORO, NJ — Jona- than L. Hornik, Esq. and Pri- vate Lender Law announced plans to relocate its HQ to Marlboro in December 2022’. “This is the next step to providing exceptional ser - vices to our clients,” said Hornik. “Our new headquar - ters will allow us to continue to manage our growth as the marquee firm in the private lending industry.” MARE
bviously, there’s a sig - nificant amount of talk within the com -
steady improvement as the new year progresses. Why will 2023 be better? Because, quite simply, there will be increased opportuni - ty. We’re already seeing less well-capitalized players being steadily pushed out of the market in favor of larger firms with more robust development pipelines of deals. This creates more opportunity for institu - tions like Kearny Bank. Once we reach 2023, many more of these weaker entities won’t be able to compete in terms of ob - taining new projects, which will further pressure their ability to
expand. Putting it another way, the story of 2023 will be well- capitalized players succeeding at an increasingly consistent rate, with emphasis on lower risk construction deals. I suspect some people re - main unaware that Kearny Bank also does a robust busi - ness in commercial real estate construction loans. We got our start, in earnest, at about the beginning of the pandemic – when many companies were either taking a pause in con - struction lending or exiting the market altogether. In fact, for a time, we were among very
mercial real estate sector about the im - pact of ris - ing interest rates. I sus - pect we’re in for a bumpy ride through the holiday
season, though prospects look brighter for 2023. I’m not sug - gesting everything will turn rosy the instant the calendar flips – but we should see a
THERE’S NO APP FOR THIS. COMMERCIAL REAL ESTATE FINANCING We believe there’s no substitute for banking with real partnership — supported by real conversation and real interest in helping you finance your growth plans, improve cash flow or expand your portfolio. Recent projects financed by our Commercial Real Estate Lending Team...
MULTIFAMILY REFINANCE $42,650,000 291 Units in Newark, DE
MULTIFAMILY REFINANCE $63,000,000 233 Units in Jersey City, NJ
RETAIL CENTER ACQUISITION $42,375,000 Retail Center in Millville, NJ MIXED-USE CONSTRUCTION $10,750,000 54 Units and 1,000+/- SF Commercial Space in E. Rutherford
MULTIFAMILY CONSTRUCTION $14,000,000 79 Units in Garfield, NJ
INDUSTRIAL REFINANCE $26,812,500 Distribution Warehouse in Morrisville, PA
When you’re looking for commercial financing, visit Kearny Bank.
Gary F. Brozowski SVP/Director of Commercial Real Estate Lending 973 . 244 . 8834 firstname.lastname@example.org
800 . 273 . 3406 | kearnybank.com
R etail D evelopment R eimagined
M id A tlantic Real Estate Journal — Retail Development Reimagined — October 21 - November 17, 2022 — 9A
EWARK, DE — Neu- man Commercial Group, LLC an - N Gil Neuman with thier Maryland Broker of Record rep. the sellers, Atlantic Realty Cos. Neuman Commercial Group arranges $33.5M sale of Newark shopping center at University of DE
the center included completely renovating and expanding the cinema, providing direct connectivity to the Pomeroy Trail, and adding a walkable multifamily housing compo - nent to the site. In addition to working with the citizen lead - ers, Atlantic personnel had the opportunity to meet and work with Marilyn Minister, one of the original 1955 tenants of Newark Shopping Center, and US Senator Chris Coons who grew up in the area.” Gil Neuman, Principal of Neuman Commercial Group, stated: “While the university’s Covid shutdown paused our first marketing process, own - ership worked with tenants to assist them through the chal - lenging times. This resulted in fortifying what had already been a strong rent roll. There was strong interest in Newark Shopping Center and Atlantic worked closely with a top buyer who closed as promised, albeit
during a late-breaking interest rate surge.” Newark Shopping Center lies in the city’s urban core near the University of Maryland, one of the country’s oldest higher learning institutions, with an enrollment of 24,000 students. Access to new One Easton, a separate six-story housing complex, is reached directly through the property. Newark is located east of the Maryland state line between Philadelphia and Baltimore serviced by highways I95/Maryland Tpke., I-295 and I-495. With no state sales tax, low property tax and surrounded by 12,000 acres of public parks and outdoor recreation areas, Kiplinger ranked Newark in 2019 in its Top 16 Great Small Towns for Early Retirement. New Castle County has the state’s largest population, and is home to ma - jor companies DuPont, Astra - Zeneca, Zenith Products, Tire Rack, and Speakman. MAREJ
nounced the sale of 145,400 s/f Newark Shopping Center, the primary entertainment, food, service, and retail community center servicing Newark and the University of Maryland. The sale price was $33.5 mil - lion. Built in 1955 and reno - vated in 2017, the center at 230 E. Main Street is 93% oc - cupied by thirty-one national and regional tenants. They include Newark Natural Foods grocer since the 1960’s, state- of-the-art Main Street Mov - ies 5, PNC Bank, Wing Stop, Capriotti’s, Dollar Tree, Orange Theory Gym, Goodwill, Frese - nius Medical, Enterprise Rent- aCar, T-Mobile, Rita’s, Tropi - cal Smoothie, and new Chase Bank. Newark lies within the Philadelphia Metropolitan Statistical Area. Gil Neuman of Neuman Commercial Group with its Maryland Broker of JEANETTE, PA — Broad Reach Retail Partners LLC , owner and operator of retail shopping centers, com - pleted its third acquisition of 2022 with Penn Crossing Shopping Center in Jeanette. This is also the second acqui - sition to take place in Penn - sylvania in 2022, as Broad Reach Retail continues to expand in the Mid-Atlantic region. Penn Crossing Shopping Center is a 107,339 s/f cen - ter anchored by a dominant Giant Eagle, which is the only grocery store within a 3-mile radius. Located just 25 miles east of downtown Pitts - burgh, Penn Crossing serves a community of approximately 70,000 people within a 5-mile radius. The strong tenant mix is comprised of essential necessity-based retailers, which adds value to the sur - rounding area the center serves. “Penn Crossing is an excel - lent shopping center that ex - emplifies our focus of acquir - ing grocery-anchored invest -
230 E. Main Street
He added: “As the second oldest shopping center in the State of Maryland, Newark Shopping Center already had an incred - ible history with strong fun - damentals. The last improve - ments to the center were over 50 years ago and we worked with the tenants and the com - munity to update the center to meet the needs of today. A few of the major improvements to
Record represented the sellers, Atlantic Realty Companies , in their fifth sales transaction together, and procured the pri - vate buyer. “Atlantic Realty specializes in working with residents, citi - zen leaders and local govern - ment to improve neighborhood and community centers” said Adam Schulman , principal at Atlantic Realty Companies.
Broad Reach Retail Partners acquires value-add center
Penn Crossing Shopping Center
available. Our team has iden - tified a few retail voids for this market, specifically within health and wellness space, restaurants, and auto sup - port. Our team believes this will add immense value to the community. MARE
ments with true value-add potential. As owners, we value the tremendous topographical challenges to developing new retail in the area, thereby providing high barriers to entry for new competition. As the only major shopping
center in the submarket, Penn Crossing has a near monopoly on an affluent customer base. In fact, average household incomes surpass $107,000 within three miles of the property. We are proud to be the new
owners of Penn Crossing and look forward to creating value for our Partners, Properties and the People our shop - ping centers serve.” – Nate McKay , acquisitions officer. Penn Crossing is currently 87% leased, with 10,856 s/f
10A — October 21 - November 17, 2022 — Retail Development Reimagined — M id A tlantic Real Estate Journal
R etail D evelopment R eimagined
Sabre Real Estate inks 911 s/f in Livingston Town Center Azarian Realty Company announces new retail leases
Blau & Berg facilitates sale of ± 3,800 s/f retail/office space
EPTUNE & LIV- INGSTON, NJ — KPOT Korean BBQ
and Hot Pot has leased 10,000 s/f in the Neptune Plaza Shop - ping Center on 2200 US-66 in Neptune, NJ. The Korean Hot Pot restaurant will be taking a portion of the prime junior anchor space facing Rte. 66. KPOT Korean BBQ and Hot Pot, founded in 2018, has 10 locations throughout the tri- state area. The restaurant’s website describes itself as “…a unique, hands-on, all-youcan- eat experience that merges traditional Asian hot pot with Korean BBQ flavors.” Kevin Pelio of Azarian Realty Co. represented the landlord and Stephan Miller from Welco Realty represented the ten - ant in this transaction. With the addition of KPOT Korean BBQ & Hot Pot in Neptune Plaza Shopping Cen - ter, 60,000 s/f of the highway- facing junior anchor space remains available. Reasonable subdivisions considered. Other tenants in Neptune Plaza Shopping Center are World Class Shop Rite, TD
Livingston Town Center
Retail/office space on Millburn Ave.
Bank, and IHOP. In other news, Azarian Re - alty Co. details leasing activ - ity in Livingston Town Center: Three recent leases in Liv - ingston Town Center include a fitness concept, a spa, and a smoothie bowl shop. King Strength & Perfor - mance has leased 3,097 s/f for its third New Jersey location. King Strength & Performance offers strength training fitness classes in both individual and group formats. King Strength & Performance has two exist - ing locations in Cranford, NJ
and Metuchen, NJ. Pelio represented the land - lord and John Tawfik of eXp Realty represented the ten - ant in this transaction. Also in Livingston Town Center, Windows to Paradise Spa has leased 667 s/f. The NJ-based spa offers custom - ized facial treatments and currently has two existing locations. Other tenants in Livingston Town Center include Wells Fargo Bank, QQ Asian, Mixol - ogy, and Anthony’s Coal Fired Pizza. MAREJ
SHORT HILLS, NJ — The Blau & Berg Company an - nounced the sale of a ±3,800 s/f retail/office space on Millburn Ave. in Short Hills. Tamara J. Blau and Brad P. Jacobs , senior directors with The Blau & Berg Company, represented both the current owner, a non- profit, and the new owner. “We were able to bring an interested investor to the table before the listing could make it to market, and any time you can match an inves - tor with a seller that quickly it’s a win for all involved,” said Tamara J. Blau. The sale of 549 Millburn Ave. continues a streak of real estate successes in Short Hills and the sur -
rounding areas for the team of Blau & Jacobs. The Blau & Berg Company was founded in 1932 and holds a leading position in the New Jersey and Tri-State com - mercial real estate market. Headquartered in Short Hills, New Jersey, The Blau & Berg Company is an independent, full-service commercial real estate brokerage firm, provid - ing expert and personalized services in industrial, office and retail real estate, includ - ing: site selection, acquisi - tions, dispositions, leasing, tenant representation, port - folio sales, asset repositioning, and property & construction management. MAREJ
Sheldon Gross Realty vice president Eric Weston completes $750K sale of commercial property
types of businesses focused on maintaining cars, including body repairs. This transaction is one of those that’s a win not only for the buyer and seller, but for the local community as well.” Only a short drive from Rte. 21, Rte. 280, and several bridg - es across the Passaic River, the property is ideally positioned to address area residents’ au - tomotive service needs. MAREJ fast and results-driven. With over 1,750 studios across 45 countries, the global franchi - sor places an emphasis on a mix of circuit and high-inten - sity interval training (HIIT) workouts geared towards ev - eryday movements. “One of the leading causes of people opting to avoid the gym is a lack of approachable options within a reasonable distance of their home,” said Tara Levitt, senior director of operations of Club Sports Group, the owner/operator of the Summit Plaza F45 fran - chise.” MAREJ
NEWARK, NJ — A New - ark commercial property has been sold for $750,000, in a
tween Mt. Prospect Avenue and Summer Avenue, the loca - tion will continue to be used as an auto body shop. The proper - ty features various equipment required for conformation with environmental safety protocols, including a spray paint booth, a vehicle frame rack, and a lift. “Newark’s a busy, thriv - ing community, with a lot of motorists,” Weston observes. “There’s opportunity for all
Breslin Realty’s Delavale brokers 10,500 s/f Skechers lease
deal brokered by Sheldon Gross Real- ty vice presi - dent Eric Weston . Lo c a t ed along Verona Avenue, on the block be -
Alfred Sanzari Enterprises organizes lease to bring global fitness franchise to Hackensack, NJ
including Trinity Rehab, GNC, Harmon Face Values, Great Expressions Dental Centers, Labcorp, Juicy Platters, metro by T-Mobile, Fresh as a Daisy Cleaners, Wize Guys Pizzeria, and Noble Nails & Spa. The property boasts a strategic location at the intersection of Routes 17 and Interstate 80 with ample parking to ensure ease of access for customers visiting the property’s busi - nesses. F45 Training is a global fit - ness community specializing in innovative, high-intensity group workouts that are fun,
HACKENSACK, NJ — Al- fred Sanzari Enterprises announced that F45 Training has signed a lease for 2,749 s/f of retail/gym space at Summit Plaza, a +/-88,000 s/f retail complex located at 370-380 West Pleasantview Ave. in Hackensack. Alfred Sanzari Enterprises was represented by David Greenman of Silbert Realty and F45 Training was represented by Gary Krauss of Pierson Commercial Real Estate Anchored by a Stop & Shop supermar - ket, Summit Plaza features a diverse array of tenants
landlord by Robert Delavale of the Breslin organization. Additional Whitman Pla - za retail includes ShopRite, Pennsylvania Department of Transportation, Burlington Coat Factory, Ross Dress For Less, Goodwill, KPot Korean BBQ, Subway, Dunkin Do - nuts, Citizens Bank, Blink Fitness, Party City, ChenMed, Cavity Busters, Rainbow Shoppes, GameStop, Rent-A- Center, GNC, MRCP, Sally Beauty, Love City Vet, and more. MAREJ
PHILADELPHIA, PA — Breslin Realty is proud to announce the signing of a long-term lease with Skech - ers at 330 W Oregon Ave., Philadelphia. Skechers will be occupying 10,500 s/f in the Whitman Plaza shopping center. Skechers is an athletic foot - wear brand with over 540 stores in the United States, and more than 3,700 interna - tional stores. The transaction was ar - ranged and negotiated for thePage 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88
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