July 2023

ISSUE HIGHLIGHTS Volume 35, Issue 7 July 2023

C Construction underway for First State Crossing in the I-95 Corridor First Industrial develops 358,000 s/f logistics facility in the Phila. Market

East Coast.” The rear-load distribution center will feature a 40’ clear height, 68 dock-high door po- sitions, 2 drive-in doors, 238 trailer stalls, 289 parking spaces, ESFR sprinklers and LED lighting. The building’s flexible design positions First Industrial to accommodate supply chain requirements for a single tenant or multiple us- ers across a range of industries. First Industrial’s team for this development is John Han- lon, executive director, Jim Knopka, director of develop- ment, and Brandon Carney, construction manager. The CBRE team of Dan Rattay and Drew Green will assist First Industrial with the leas- ing of this project. Construction is being led by Blue Rock , as the general contractor, and Jo seph V. Belluccia, AIA is the architect. MAREJ

LAYMONT, DE — First Industrial Re- alty Trust, Inc. an- nounced that construction is underway for a 358,000 s/f in- dustrial facility within the First State Crossing master-planned development in Claymont. The facility is being built on 28 acres of land that First Industrial purchased from Commercial Development Company, Inc. (CDC) earlier this year. Located at the inter- section of Philadelphia Pike and Naamans Rd. in New Castle County, the property is situated just 12 miles south of Phila- delphia International Airport and offers immediate access to both I-95 and I-495. The site was part of a former steel mill purchased by CDC which mas- ter-planned the community to include industrial, office, retail, and residential components. At the center of the project will be

SPOTLIGHTS

VIRGINIA

10A

CANNABIS INDUSTRY: RESHAPING REAL ESTATE MARKETS

14-15A

Industrial facility within the First State Crossing master-planned

a newly constructed transit hub which will connect First State Crossing to Philadelphia and other metropolitan areas. The total estimated invest- ment for the distribution center is $60.5 million with comple- tion expected in the first quar - ter of 2024. “We are excited that our facility is the first commercial component within the First

State Crossing development and construction is off to an excellent start,” said John Hanlon, executive director for First Industrial. “The Northern Delaware industrial market along the I-95 corridor is see- ing strong tenant demand due to its infill location serving the Mid-Atlantic consumption and efficient highway access to customers up and down the

Section D BROKERAGE DIRECTORY

UPCOMING CONFERENCES & WEBINAR

Anchor Health Properties celebrates completion of Bayhealth Total Care in Sussex County, DE

9th Annual NJ Apartment & Multifamily Conference Thursday, September 21, at the Sheraton Edison 9th NJ Annual Capital Markets Conference TBD For speaking & sponsorship info., please contact: Lea at 781-740-2900 or lea@marejournal.com

“Continuing our long-stand- ing relationship with Bay- health and Intuitive Health, we are delighted to support their mission and operations through achievement of their local expansion goals with this project,” shared Mat- thew Pirolli , VP, Develop- ment with Anchor. “Offering a broad spectrum of outpatient services is a testament to Bay- health’s dedication to deliver- ing convenient and affordable healthcare services to the surrounding community. We are honored to have worked alongside Bayhealth, Intui- tive Health, and the project team to deliver this dynamic, forward-looking healthcare fa- cility focused on what matters most, taking care of patients.” Locally based firms with extensive healthcare facility experience served on the proj- ect team, including Wohlsen Construction , as the general contractor, E4H (Environ- ments for Health) Archi- tecture as the architect, and Becker Morgan , as the civil engineer. MAREJ

SUSSEX COUNTY, DE — Dedicated to pursuing better healthcare through real estate solutions, Anchor Health Properties (Anchor) , a na- tional, full service healthcare real estate development, man- agement, and investment com- pany focused exclusively on medical facilities, recently cel- ebrated the project completion of Bayhealth Total Care, a new 48,500 s/f, two story hybrid free-

Bayhealth Total Care

Directory ROP (Front Section)........................................... Section A Financial Digest featuring Tax Issues/Accounting.......3-7A DelMarVa featuring Virginia.................................... 9-10A CIRC Delaware............................................................. 8A Retail Development Reimagined...........................11-13A CRE Organization’s Events Calendar............................ 16A Business Card Directory...........................................IBC A New Jersey............................................................FC-12B Southern New Jersey..............................................3-10B Pennsylvania........................................................13-BC B Owners, Developers & Managers.......................Section C Brokerage Directory.......................................... Section D www.marej.com

standing emergency depart- ment and urgent care clinic in the high growth area of Sussex County. Engaged as the fee for service developer by Bayhealth Medical Center, central and southern Delaware’s health- care leader, Anchor provided comprehensive development services and real estate plan- ning expertise to bring acces- sible care to the surrounding community through this com- prehensive healthcare facility. Strategically positioned on an 18 acre site at the inter- section of Lewes-Georgetown Highway and Hudson Rd. (18383 Hudson Rd.), the new

facility serves as the first of its kind in the community, addressing the full continuum of care, including primary care, specialists, extensive testing and diagnostics, and a spectrum of immediate and emergency care. Providing convenient access to various levels of healthcare in one location, the first floor will of - fer a combination emergency department and walk-in care center operated by Intuitive Health, the pioneer of the combined ER and urgent care model, while the second floor houses Bayhealth primary and specialty care physicians.

Inside Cover A — July 2023 — M id A tlantic Real Estate Journal

www.marej.com

Get Your FREE DST 1031 Exchange Tool Kit

SCAN HERE

Gain EXCLUSIVE ACCESS to TAX EFFICIENT 1031 Exchange DST Real Estate Investments

✔ LEARN the In’s and Out’s of 1031 Exchanges and Delaware Statutory Trust DST Investments ✔ MONTHLY Cash Flow Potential via ACH Direct Deposit*

✔ ACCESS a Diversified 1031 Exchange Portfolio- Multifamily, Industrial, Medical, Net Lease & More* ✔ CLOSE your 1031 Exchange Investments in as Little as 3-5 days

AS SEEN IN:

FEATURED REAL ESTATE FUND:

Call to Find Out More!

Preferred Return* 10.00%

Representative Photo

*Preferred return is not guaranteed and is subject to available cash flow. All offerings shown, if any, are Regulation D, Rule 506c offerings. Potential returns and appreciation are never guaranteed and loss of principal is possible. Please speak with your CPA and attorney for tax and legal advice.There is a risk Investors may not receive distributions, along with a risk of loss of principal invested.This material does not constitute an offer to sell nor a solicitation of an offer to buy any security.Such offers can be made only by the confidential Private Placement Memorandum (the“Memorandum”).Please read the entire Memorandum paying special attention to the risk section prior investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation.This material is not to be construed as tax or legal advice.There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods.There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. Securities offered through FNEX Capital LLC member FINRA, SIPC. 2.6.2023

M id A tlantic Real Estate Journal — July 2023 — 1A

www.marej.com

& HORVATH TREMBLAY SINGLE TENANT | MULTI-TENANT | 1031 EXCHANGE INVESTMENT REAL ESTATE BROKERAGE

Dollar Tree Camden, NJ $1,916,000

Outback Steakhouse & M&T Bank Clifton Park, NY $2,734,977 Dollar General Wilmington, DE $2,395,616

Mission BBQ & Sport Clips Marlton, NJ $3,830,810 Walgreens Clinton, MD $7,032,325

Dunkin’ Elkins Park, PA $1,000,000

Lowe’s North Providence, RI $15,300,000

IHOP Grove City, OH $1,948,479 WellNow Urgent Care Troy, NY $2,754,000

Shoppes of Southland Orlando, FL $3,775,000 Dollar General Albrightsville, PA $1,314,000

7-Eleven Coppell, TX $4,400,582 Caliber Collision Bordentown, NJ $5,890,000

Bojangles La Follette, TN $1,951,220 Mavis Sinking Springs, PA $2,690,000

Ethan Cole, PA Broker of Record, License RMR003168, NJ Broker of Record License 2082582, NY Broker of Record, License 10491208561, MD Broker of Record, License 5014819, RI Broker of Record, License REB0018287

2,000+ TRANSACTIONS IN 44 STATES

TOP RANKED INDUSTRY LEADING FIRM

$7 BILLION+ IN RECENT TRANSACTIONS

HORVATHTREMBLAY.COM

2A — July 2023 — M id A tlantic Real Estate Journal

www.marej.com

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 Editor/Graphic Artist ......................................Karen Vachon Contributing Columnists ....................Howard Applebaum, Corporate America Realty & Advisors; David L. Church, CCIM, U.S. Realty Capital, LLC; Marcia Nathanson and Bruce Puleo, Heritage Abstract Company; Jonathan Rundlett, Exit; Jacob Strauss, PE, EWMA 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. 35, Issue 7 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

Tips for Buying a Vacation Rental Jonathan Rundlett

efore purchasing a vaca- tion home, always take the time to review your financial situation. After all, buying a vacation home is a bit trickier than buying a primary residence. Lenders often con - sider it a riskier investment since people are more likely to default on a second home than on their primary residence, so prepare for stricter underwrit- ing guidelines and a higher down payment. The finances of owning a vacation property Many first-time buyers don’t realize that they need to be pre-approved for a loan before they even begin looking at properties, but this is crucial to getting the best deal on your vacation home purchase. Con - tact your bank or credit union to ask about their mortgage products and the rates they can offer. In addition to your monthly mortgage, you will need to cover additional maintenance issues. Remember that the older the B

property is, the higher your costs are likely to be. If you plan to rent your investment property, calculate for local cleaning, repair, and property management services. Working with a professional real-estate agent As you search for an invest - ment property, collaborate with a certified, professional real estate agent who can compare property values and determine whether local rent- al rates will enable you to achieve a positive cash flow. Real estate agents can also help you evaluate the current market and purchase when both prices and interest rates are at their best. Think through your goals for buying a vacation property

People purchase vacation homes for a variety of reasons. Some plan to offer the property as a short-term rental, some make it only available on a long-term basis, and others may reserve it strictly for personal use. Before you start looking at properties, it’s im - portant to solidify your goals. Do you want a vacation home, a rental property, or an invest- ment property? Short-term rentals offer higher rental income, but subject the property to greater wear and tear. Your plan for the property affects your cost of furnishing it. If you alone will enjoy the property, you can decorate it however you choose, but if you continued on page 12A

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.

Contact: NEIL A. STEIN • nstein@kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-941-2469 • kaplaw.com Other Offices: • Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120 Kaplin Stewart Attorneys at Law

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

M id A tlantic Real Estate Journal — July 2023 — 3A

www.marej.com

ONTVALE, NJ — JLL Capital Mar- kets has arranged JLL Capital Markets led financing efforts for the District Building 4 development The S. Hekemian Grp. lands financing to develop Valley Hospital Surgery Center at “The District” M

The project is under con- struction and is expected to be completed in early 2024. In addition to the Valley Hos- pital, the ground floor tenants will be Pottery Barn and Wil - liam Sonoma. The JLL Capital Markets Debt Advisory team was led by senior managing director Thomas R. Didio , senior di- rector Thomas E. Didio Jr., director Gerard Quinn and analyst Michael Mataras . “Building four will add three terrific tenants to the “the District” mixed use environ- ment. The medical use will bring more traffic to the retail space across Market Street, not to mention Pottery Barn and William Sonoma. The site and quality of tenancy on both sides of Market Street speaks for itself,” said Didio, Jr. MAREJ and nearby entertainment, dining, shopping and employ- ment opportunities. The fami - ly-friendly town is surrounded by high-ranking schools and parks, including Richard W. DeKorte Park, only 1.9 miles away and located along the Hackensack River. About Northmarq Northmarq is a full-service capital markets resource for commercial real estate inves- tors, offering seamless col- laboration with top experts in debt, equity, investment sales and loan servicing. We combine industry-leading capabilities with a flexible structure, en - abling our national team of experienced professionals to create innovative solutions for clients. Our solid foundation and entrepreneurial approach have built an annual transac- tion volume of more than $37 billion and a loan servicing portfolio of nearly $76 billion. Through the 2022 acquisition of Stan Johnson Company and Four Pillars Capital Markets, Northmarq introduces clients to expanded opportunities across all major asset classes. MAREJ

construction financing and mezzanine equity for the Dis- trict Building 4, a three-story, mixed-use building totaling 25,000 s/f of ground-floor retail space and 58,372 s/f of class A medical space in Montvale. JLL represented the bor - rower, The S. Hekemian Group , in securing the two- year, floating-rate construc - tion loan through Connec- tOne Bank . In addition, JLL arranged subordinate debt with a life insurance company. Located at 400 Market St., the property sits within the District, a mixed-use live/ work/play development that features four buildings com- prised of 308 luxury apart- ments, 40,000 s/f of boutique

400 Market St. rendering

office space, and 17,000 s/f of ground floor retail. Addition - ally, the District is adjacent to The Shoppes at DePiero Farm,

a 231,000 s/f retail center that is anchored by a Wegmans Supermarket that contributes to the high-end modern neigh-

borhood feel. Tenants include Starbucks, Lululemon, Chopt, Orange Theory Fitness, Ulta Beauty, Chipotle, and more.

Northmarq’s Ranieri arranges $13 Million financing of luxury multifamily property, The Opus in North Arlington, NJ

NORTH ARLINGTON, NJ — Northmarq’s Robert Ranieri , senior vice presi-

dent/manag- ing director ar ranged the $13 mil - lion finance of The Opus, a 49-unit multi fam- ily property located in

Robert Ranieri

North Arlington. The transac - tion was structured on a 5-year term with 1-year interest only followed by a 29-year amorti - zation schedule. Northmarq arranged the permanent-fixed loan for the borrower through its corresponding relationship with a local bank. “A local New Jersey bank offered and closed on very good loan terms for this class A apartment building which is best in class in North Arling - ton, New Jersey,” said Ranieri. Built in 2021, The Opus features one-bedroom units and penthouse suites with state-of-the-art kitchens, spa bathrooms with heated floors, high end finishes and mod-

The Opus

ern open concept floor plans. Floor to ceiling windows bring in natural light and offer breathtaking views of the NYC skyline. Resort-inspired amenities include a rooftop

terrace, fitness center, cozy lounge with fireplace and on- site parking. Situated in the northern New Jersey town of North Arlington with its small town feel, The Opus is

ideally located just 12-miles from Manhattan and 5-miles from the MetLife Stadium. Residents at this pet-friendly building benefit from easy ac - cess to public transportation

4A — July 2023 — Financial Digest — Tax Issues /Accounting — M id A tlantic Real Estate Journal

www.marej.com

T ax I ssues /A ccounting

By Nick Snyder, Kay Properties and Investments 2022 1031 Exchange Tax Extensions: Why Waiting Until the Deadline Could Potentially Be a Mistake

uring the 2022 calen- dar year, the United States had many natu-

must also close on the given properties by October 16, 2023. For Example: If an investor were to have closed on the re- linquished property on Febru- ary 1, 2023, they would have until March 18, 2023 to identify the replacements and until July 31, 2023 to then close on the properties. Now given the extension, investors have until October 16th to both identify and close on the properties for the 1031 exchange. With so many exchanges all facing the same deadline, there is a potential chance however that investors may run into some unaccounted-for issues. While the extensions were announced for a good reason, many investors may now be sitting back and waiting until they’re closer to the deadline to look for properties for their 1031 exchange. More time to look for properties is oftentimes a good thing for investors (al - though they may be missing out on a large amount of monthly rental income potential by being uninvested for a longer period of time*) but with a now larger pool looking for a finite number of properties, the demand may be heightened for 1031-eligible real estate. With such a potentially large demand and need for 1031-eli - gible real estate in the coming months, many investors are considering their options now before the extension deadline. One option that 1031 investors are looking at more than ever is the Delaware Statutory Trust (DST). Many investors are drawn to the DST because the properties are typically already pre-packaged and closed on by the DST sponsor companies. Because of the turn-key nature of the DST, it allows investors to potentially close in three to five business days while other real estate investments may take weeks or even months to close. With the DST 1031 ex - change investments quick clos- ing timeframe, investors are able to get their money working for them in an efficient manner and now generating potential monthly rental income*. All in all, many investors facing a 1031 exchange think

of the extensions as a blessing but with so many exchanges going on at once, all with one deadline, it may potentially be prudent to take a look at currently available properties before the extension deadline is upon us. Nick Snyder is a senior as- sociate with Kay Properties and Investments. MAREJ About Kay Properties and Investments The www.kpi1031.com plat - form provides access to the marketplace of typically 20-40 DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients and a DST secondary market. Kay Properties team members collectively have over 200 years of real estate experience and have par- ticipated in over $30 Billion of DST 1031 investments. This material does not consti- tute an offer to sell nor a solici- tation of an offer to buy any se- curity. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum pay- ing special attention to the risk section prior investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. There are material risks associated with investing in real estate securities including illiquid- ity, vacancies, general market conditions and competition, lack of operating history, inter- est rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential ad - verse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the en- tire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. Nothing contained on this website constitutes tax, legal, insurance or investment ad- vice, nor does it constitute a

solicitation or an offer to buy or sell any security or other fi - nancial instrument. Securities offered through FNEX Capital, member FINRA, SIPC. Alabama – Tax Deadline: October 16, 2023 - Autauga - Barbour - Chambers - Conecuh - Coosa - Dallas - Elmore - Greene - Hale - Mobile - Morgan - Sumter - Tallapoosa Arkansas – Tax Deadline: July 31, 2023 - Cross - Lonoke - Pulaski California – Tax Deadline: October 16, 2023 - Alameda - Alpine - Amador - Butte - Calaveras - Colusa - Contra Costa - Del Norte - El Dorado - Fresno - Glenn - Humboldt - Imperial - Inyo - Kern - Kings - Lake - Los Angeles - Madera - Marin - Mariposa - Mendocino - Merced - Mono - Monterey - Napa - Nevada - Orange - Placer - Plumas - Riverside - Sacramento - San Benito - San Bernardino - San Diego - San Francisco - San Joaquin

- - - - - - - - - - - - - - - - - -

San Luis Obispo San Mateo Santa Barbara Santa Clara Santa Cruz

ral disasters that led to tax extensions for many taxpayers in seven states across the United States. Many counties in

Sierra Siskiyou Solano Sonoma Stanislaus Sutter Tehama Trinity Tulare Tuolumne Ventura

Nick Snyder

Alabama, Arkansas, Califor - nia, Georgia, Indiana, Missis- sippi, and Tennessee issued extensions for local taxpayers. The extensions were applied to individuals, businesses, and pass-through entities whose tax returns and payments were due to the states. (For a breakdown of each county, please refer to the bottom of the article). Please note that this article should not be considered tax or legal advice. You should speak with your CPA and tax attorney prior to making any investment and/or 1031 ex - change decisions. The extensions were due to many natural disasters includ- ing tornados, thunderstorms, and large floods across these various states. The IRS has also indicated that if a taxpayer was in a certain disaster area where state tax deadlines were extended, the federal tax return deadline was also extended. For real estate investors who are looking to complete a 1031 exchange, the extensions may be a blessing as there is now much more time to identify and close on each of the properties for their 1031 exchange. Typi - cally, real estate investors have 45 days after the close of the re - linquished property to identify the replacement properties and 180 days to then close on the identified properties. For real estate investors in states such as Alabama, Cali - fornia, and Georgia, they now have until October 16, 2023 to both identify and close on each of the properties for their given 1031 exchange. Many inves - tors may believe that they only must identify the replacement properties by the October 16th deadline however, this is not the case. Each of the investors

Yolo

Yuba Georgia – Tax Deadline: October 16, 2023 - Butts - Crisp - Henry - Jasper - Meriwether - Newton - Pike - Spalding - Troup Indiana – Tax Deadline: July 31, 2023 - Allen - Benton - Clinton - Grant - Howard - Johnson - Lake - Monroe - Morgan - Owen - Sullivan - White Mississippi – July 31, 2023 - Caroll - Humphreys - Monroe - Montgomery - Panola - Shakey Tennessee – Tax Deadline: July 31, 2023 - Cannon - Hardeman - Hardin - Haywood - Lewis - Macon - McNairy - Rutherford - Tipton - Wayne MAREJ

M id A tlantic Real Estate Journal — Financial Digest — Tax Issues /Accounting — July 2023 — 5A

www.marej.com

T ax I ssues /A ccounting

By Howard Applebaum, Corporate America Realty & Advisors What Is Keeping “You’re Friendly Banker and Real Estate Investors” Up at Night?

of loan repayments, which reduces its cash inflow. If the bank has to step in and manage the property, the rental income (if any) might need to be in- creased to cover the shortfall. 3. Operational Cost: Run- ning a commercial property is not a bank’s core competence. It might involve significant opera - tional costs, eroding the bank’s profits and cash reserves. 4. Capital Adequacy: Regulatory standards like Basel III ( the 2009 interna - tional regulatory accord that introduced a set of reforms designed to improve the regu-

potentially also its solvency - its ability to continue operations in the long term. While regulatory bodies and central banks have systems in place to prevent bank failures and their potential impact on the broader economy, the insolvency of a bank due to exposure to bad commercial real estate loans can still have sig- nificant economic consequences. This is particularly true if the failing bank is a major lender in its region or if many banks face similar issues simultaneously. Howard Applebaum is pres- ident of Corporate America Realty & Advisors. MAREJ

he newspapers and business media have stories about the prob-

on its balance sheet, decreasing its overall net worth. 6. Risk Concentration: Regional banks are often more exposed to local market conditions than larger, more diversified banks. If a regional bank has a high concentration of commercial property loans in its portfolio, a downturn in the local real estate market could hit the bank particu- larly hard, potentially leading to insolvency. The combination of these factors can strain the bank’s liquidity - its ability to meet short-term obligations, and

lation, supervision, and risk management within the global banking sector) require banks to maintain a certain level of capital compared to their risk-weighted assets. If the property loses value or can’t be sold, the bank might need to raise money to meet these regulatory requirements. In an extreme situation, failure to do so could result in regula- tory sanctions, including the bank being declared insolvent. 5. Asset Devaluation: If the real estate market is doing poorly, the bank may need to write down the property’s value

lem in Com- mercial Real Estate and Ba n k i n g with what is currently occurring with Mort- gage Financ- ing and Loan Defaults.

Howard Applebaum

This article provides back- ground on what today’s “Friend- ly Bankers” and those that rely on the “Capital Markets” are worried about. Banks are in the business of lending money and earning interest on those loans. When they lend to commercial real estate projects, they expect the borrowers to repay the loans from the rental income or sell the properties at a profit. However, when a borrower defaults and a bank is forced to take back a commercial property, it can create severe liquidity and solvency issues. Here’s why: 1. Illiquidity of Real Estate Assets: Commercial properties are not readily convertible into cash. Unlike other assets such as Treasury bonds or cash reserves, selling a commercial property can take considerable time and often at a discount to the market value, particularly in a distressed situation. 2. Loss of Income: The bank loses the expected stream SCOPE arranges sale & financing of multifamily portfolio in Mantua PHILADELPHIA, PA — Scope Commercial Real Es- tate Services, LLC (SCOPE) has announced the sale of a 36-unit, seven-building multi- family portfolio located in the Mantua neighborhood of Phil- adelphia. The entirety of the portfolio sold for $6,750,000. Saam Tashayyod , vice president at SCOPE, had the listing to market the prop- erty on behalf of the seller, Haverford Square Proper- ties . Fahd Malik , director at SCOPE procured the buyer, 2X2 Capital. Edward Brown , senior director with SCOPE Capital Group, secured the acquisition financing. The loan was structured with a five- year fixed rate of 5.93%. MAREJ

COST RECOVERY SOLUTIONS LLC CRS

• Cost Segregation • Energy Tax Services • Tangible Asset Appraisals • Fixed Asset Reviews Expert tax-saving engineering services to reduce tax liability and increase return on investment

Discover the CRS difference:

106 Apple Street, Suite 105 Tinton Falls, NJ 07724 732.548.3855 info@crscostseg.com Co n tact us for a FREE pr ojection of ben e fits on specific p roperties or to discuss your valua tion needs! • 25 years of experience • ASCSP, ASA, CFA certifications • Serving clients nationwide • A trusted partner with proven results

www.CRScostseg.com

6A — July 2023 — Financial Digest — M id A tlantic Real Estate Journal

www.marej.com

F inancial D igest

ising interest rates and more conservative un- derwriting are begin- By David L. Church, CCIM, U.S. Realty Capital, LLC. Commercial real estate faces refinancing challenges as interest rates rise R

ning to have an impact on commercial real estate as five- and ten- year loans move toward maturity. The impact on multifam- ily projects is

David L. Church

likely to be far less than the im- pact on commercial properties, particularly office buildings. While multifamily continues to maintain very high occupancy rates with significant annual increases in rental rates, office occupancies have dipped, are likely to continue to deterio- rate, and rental rates will be flat at best for many properties in coming years. The example above high- lights the refinancing short - fall for a 60,000 s/f office

property financed five years ago. Rent psf was $30.00. The loan of $11,838,000 was closed at 4.0% on a 30-year amortization schedule. Five years later, the lender reviews the T-12 to underwrite the amount of a refinance. Both gross income and operating expenses increased at a rate of 2.5% per annum for four years. However, stabilized occupancy dropped from 95% to 88%. At

the same time, mortgage rates increased to 6.75%, the cap rate increased by 100 bps, and the maximum loan to value pro- vided by the lender fell to 65%. The refinance with a poten - tial new loan of $8,651,000 is constrained by loan to value. Since the outstanding principal balance on the original loan was $10,716,754 at refinance, the shortfall is $2,065,754. After factoring in transaction

costs, the total shortfall is ap- proximately $2,218,055, which is summarized to the below:

building in today’s market is a hardship for most investors and developers. U.S. Realty Capital can assist borrowers in deter- mining potential shortfalls on a conventional refinance and help structure creative solutions to minimize the actual cash out- lay. Please reach out to us and let us know how we can help. David L. Church, CCIM is managing director of U.S. Realty Capital, LLC. MAREJ

Having to produce signifi- cant new cash to refinance a

Independence National Historical Park Awarded $22.2 Million in Federal Funding

Kennedy Funding closes land loan on 192-home development

vives intact and established a template for bank archi- tecture for the next century and a half. Borrowing from classical design, the Penn- sylvania blue marble front facade features two-story Corinthian columns. The pediment above the columns features a sculptural panel with the rst known depic - tion of an American eagle with 13 arrows in its talons, evoking the Great Seal of the United States. Carved in mahogany, the sculpture’s preservation won the Grand Jury Award from the Preser - vation Alliance of Greater Philadelphia in 2021. Weathered elements of the facade will be repaired or replaced as part of the reha- bilitation, and the building’s grand interior, a oor-to-roof rotunda supported by 40 col - umns and crowned by scal- loped glass panes installed during a renovation in 1902, will be carefully retouched. All mechanical systems will be modernized and housed in a modest addition on the back of the building that will also serve as the primary entry for all visitors. The original front doors, which open onto South Third St., will continue to function and be used for special events. MAREJ

PHILADELPHIA, PA — Independence National Historical Park (INHP) has been awarded $22.2 million in federal funding from the Great American Outdoors Act (GAOA) Legacy Restoration Fund, to help rehabilitate the landmark First Bank of the United States building con- structed in Philadelphia in the 1790s, with the intention to transform it into an interactive museum. The Independence Historical Trust (Trust), the nonpro t philanthropic partner of INHP, had earlier raised $4.5 million toward the building’s rehabilitation for essential architectural and construction documents and for the design, fabrication and installation of state-of-the-art interactive and immersive exhibits. The First Bank of the United States was a central part of Secretary of the Treasury Alexander Hamilton’s vision to create a national nancial system that would knit to- gether the economies of the 13 newly independent states. The First Bank building is one of the rst federal build - ings constructed by the U.S. government and sits a mere 1,000 feet from Independence Hall. Now part of INHP, it is regarded as one of the most important artifacts of George

The First Bank f the United States Washington’s administration. With funding secured for the rehabilitation, the INHP and the Trust aim to open the First Bank by the 250th anniversary of the founding of the United States in 2026. The Trust is now leading an effort to raise $6.6 million to fabricate and install dynamic exhibits about the First Bank and America’s early economy in the building. “Rehabilitat - ing the First Bank will meet a long-held goal for INHP – it was acquired in 1956, with the establishment of the park, but has been closed to the public for many years. The landmark building gives the park the op- portunity to showcase aspects of the economy of the early republic and the role of the controversial bank,” Amnesty Kochanowski , acting super- intendent of Independence National Historical Park, said. The building’s facade sur -

Vines of Sandhill

specializes in and maintains the robust network necessary for rapidly and successfully closing loans. “To successfully secure funding, you need to under- stand the obstacles to fund- ing and how to work through them to secure the deal you need, and more importantly, you need a partner who can navigate those challenges,” said Wolfer. “At Kennedy Funding, we have the knowl- edge and experience to evalu- ate deals on their merits for the community, not on painstaking criteria that traditional lenders impose on borrowers that cause un- necessary delays.” To date, Sandhill Real Es - tate Investments, L.L.C. has completed three phases of the six-phase Vines of Sand- hill development, and those three phases have since been sold off. MAREJ

MILTON, DE — Traditional banks’ slow approval periods and the tight lending market can hold up projects when time is of the essence. That’s why Sandhill Real Estate Investments, L.L.C. turned to Kennedy Funding to se- cure the financing they needed for Vines of Sandhill, a single- family residential development project in southern Delaware. The Englewood Cliffs, NJ- based direct private lender provided a $1 million short- term bridge loan for the bor- rower. The loan proceeds will be used for working capital for roadwork that will move the development project into its final phases. Kevin Wolfer , CEO/presi - dent of Kennedy Funding, said that obtaining real estate financing when the market is competitive and needs are urgent can be highly chal- lenging, but Kennedy Funding

M id A tlantic Real Estate Journal — Financial Digest — Tax Issues /Accounting — July 2023 — 7A

www.marej.com

T ax I ssues /A ccounting

Designees on Staff

• 20 YEARS EXPERIENCE • COMPETITIVE FEES • CERTIFIED EXCHANGE SPECIALIST® ON STAFF • 24/7 TELEPHONE ASSISTANCE • NATIONALLY RECOGNIZED • DEFINITIVE ANSWERS TO YOUR EXCHANGE TRANSACTION • BONDED AND INSURED • SEGREGATED QUALIFIED ESCROW ACCOUNTS 23 6 30

After all, you are a discerning customer TRUST THE PROFESSIONALS

EXCHANGE SOLUTIONS www.exchange-solutions.com Kim Rincones Sr. Exchange Coordinator Diane Schaefer, CES President Kim Rincones Sr. Exchange Coordinator Kim Rincones Senior Exchange Coordinator Melissa Cheverko Senior Exchange Coordinator

Diane Schaefer, CES President

Melissa Beck Exchange Coordinator

Frances Picone Client Care Coordinator

Diane Schaefer, CES ® President

516-771-2400 FREEPORT, NY 1 1520 Members of the Federation of Exchange Accommodators. Bonded and Insured 516-771-2400 1975 Hempstead Tpke., Ste. 201, East Meadow, NY 11554 Members of the Federation of Exchange Accommodators. Bonded and Insured

8A — July 2023 — M id A tlantic Real Estate Journal

www.marej.com

Great CRE Events Cont. Ed…Speakers…Networking www.CircDelaware.org EVENTS SCHEDULE Sept. 12 (Tues., 11:30-1:30) Membership Meeting & Lunch Topic: Avenue North Mixed-Use Development Update Speakers: Ernest Delle Donne, Delle Donne & Associates, Inc. Location: DuPont Country Club, Wilmington, DE Oct. 11 (Wed., 11:30-1:30) Membership Meeting & Lunch Topic: Climate Change and its Impact on CRE De Panelists: Kirsten McGregor, Sagax Associates, Douglas Corrigan, Marsh USA. Location: DuPont Country Club, Wilmington, DE Nov. 16 (Thurs., 5:30-8:00) Joint Holiday Dinner Network with SIOR / CCIM / CIRC / TCSR / DREW / AI Speaker: Gerard "Jerry" Sweeney, Brandywine Realty Trust. Location: Harry's Savoy Ballroom, Wilmington, DE Register online: circdelaware.org goto Event pages RE Continuing Education Classes - Jan.-Apr. 2024 Our next complete rotation of all, or most, credits needed for your license renewals in Delaware, Pennsylvania, Maryland, and New Jersey will be hosted by CIRC at the DuPont Country Club starting on January 12, 2024. Frederick Academy of Real Estate Instructors Andrew Taylor, Esq. and W. Duncan Patterson, CCIM, will teach the classes. For a complete listing of classes, accreditation, dates and times, and to register online, visit us at circdelaware.org and go to the Education page.

—OFFICERS— President: Cindy Fleming Jones Lang LaSalle Vice President: Barton L. Mackey, Jr. Patterson-Woods Associates Secretary: Daniel Wham DSM Commercial Real Estate Co-Treasurers: Robert Stenta Chatham Financial Michael Hahn 44 Business Capital *Board of Directors *as of 7/1/23* —DIRECTORS— Past President: Jay L. White , MAI, CRE® Apex Realty Advisory Program Co-Chairs: Lorraine Sheldon NAI Emory Hill Ryan Kennedy Harvey Hanna & Associates

Our 24th Annual Golf Outing at Harte- feld National on June 26 was a BLAST with 128 golfers and a beautiful day! We thank our amazing group of volunteers and sponsors who work tirelessly to bring everyone a great networking golf event. Through your generou- sity, we raised over $4,900 for the Delaware KIDS Fund and other non-prof- its to be identified during the year by the Board of Directors. Visit our website's GOLF page for all the details - Golfers, Contest Winners, Raffle Winners, Golf and Amenity Sponsors, and Photo Album. www.circdelaware.org/golf

Membership Chair: James Manna BrightFields, Inc.

—EX-OFFICIO— Business Manager Janet Pippert Landmark Science & Engineering Legislative Lobbyist Donald Robitzer The Commonwealth Group Benjamin Berger , Esq. Berger Harris, LLC Carmen Facciolo NAI Emory Hill Neil Kilian, SIOR, CCIM NAI Emory Hill Pamela Scott , Esq. Saul Ewing Arnstein & Lehr LLP Claymont Rennaissance Dev. Corp. Economic Development Liaisons Joseph Zilcosky, Del. Becky Harrington, DPP contact us (302) 633-1705 Janet@circdelaware.org www.circdelaware.org C. Scott Kidner C. S. Kidner & Associates Legislative Affairs Chair Brett Saddler

M id A tlantic Real Estate Journal — July 2023 — 9A

www.marej.com

ONTGOMERY COUNTY, MD — After tenants of Westchester West Apartments, a 345-unit residential property sells for $67 Million Enterprise and DHCA team up to preserve affordable housing through Silver Spring purchase M

property that includes pre- serving affordability, curing deferred maintenance, and improving operations and ser- vices for residents. Enterprise Community Development has budgeted more than $5 million in capital expenditures over 10 years to preserve the long- term viability of the property. Total transaction costs came to $75.8 million. “Preserving the affordabil- ity and enhancing the living experience at Westchester West Apartments is not only a crucial step toward ensur- ing long-term preservation of affordable housing, but also a testament to our commitment to providing residents with a great place to call home,” said Interim President of En - terprise Community Devel - opment Christine Madigan. “Through necessary upgrades and improvements, we aim to create a thriving community that fosters a high-quality liv- ing experience for all.”

“Preserving affordable hous- ing is an essential part of a successful affordable housing strategy,” said Montgomery County Executive Elrich. “I directed DHCA to use the County’s right of first refusal to match the sale offer, pur- chase this building, and then transfer to an affordable hous- ing partner. The bottom-line is that we saved the homes of hundreds of families who could have been forced out by increased rents if we did not intervene. If we are going to solve our affordable housing problems, we must get serious and use everything in our tool- box, including using our right of first refusal to intervene in similar transactions that could price out current residents.” Current rents at Westchester West Apartments are consid - ered affordable to households with incomes between 55% and 60% of Area Median Income (AMI) under DHCA’s 2022 rent and income limits. MAREJ

Westchester West Apartments were informed that their build- ing was going to be sold, they worried that rents would rise even more than they already had and so they worked with the community organization Action in Montgomery (AIM), to ask Montgomery County to intervene, which it is allowed to do under the County’s Right of First Refusal (RoFR) law. Montgomery County Executive Marc Elrich , in agreement with Councilmember Natali Fani-Gonzalez , asked the Department of Housing and Community Affairs (DHCA) to find a partner who could preserve the affordability for the long term. This naturally occurring affordable housing rental property includes a large number of three-bedroom or “family-sized” units. After working with non-profit hous - ing organization Enterprise

Westchester West Apartments

Community Development, on June 8, 2023, Montgomery County’s DHCA purchased Westchester West Apartments, a residential property with 345 units located at 3214 Hewitt Avenue in Aspen Hill, MD., from Westchester Gardens LLC., for $67 million. After purchasing the apart - ment building, DHCA imme -

diately sold the rental housing property for the full amount to ECD Westchester Apart - ments, LLC, an Enterprise Community Development af - filiate. Enterprise Community Development assisted DHCA in the underwriting and due diligence of the acquisition opportunity and will carry out the long-term plan for the

Cresa and Stream Realty Partners represent the AFA in $16.25 Million sale of 1501 Langston Blvd. in Arlington, VA

that includes creating new, technology driven space in a location that puts it closer to its business partners and government agencies. We look forward to continuing our partnership with the entire AFA team and helping advance its mission well into the future.” 1501 Langston Blvd. was 79% leased at the time of sale. The Air & Space Forces As - sociation is an independent, non-profit 501(c)3 associa - tion dedicated to advocating for investment and support for the U.S. Air Force and U.S. Space Force, and for supporting Airmen, Guard - ians, and their Families. Founded in 1946, AFA is the single largest entity of its kind focused on air and space power. With more than 113,000 members and 200 chapters spread around the world, our mission is to promote dominant U.S.

Air and Space Forces as the foundation of a strong Na- tional Defense; to honor and support Airmen, Guardians, and their Families; and to remember and respect the enduring heritage of the Air and Space Forces. Stream Realty Partners is a national commercial real estate firm offering an inte - grated platform of services including leasing, Legendary CX property management, tenant and landlord repre- sentation, capital markets, investment management and sales, development, construc- tion management, national program management, work- place strategies, strategic marketing, and dedicated research. Since 1996, Stream has grown to more than 1,200 professionals and now com- pletes more than $5.8 billion annually in office, industrial, retail, healthcare, land, and data center transactions. MAREJ

ARLINGTON, VA — Cresa’s Mindy Saffer and Natalie Gosnell, along with Stream Realty Partners’ Matt Pacinelli and Charlie Smiroldo , represented the Air & Space Forces Associ- ation (AFA) in the sale of its national headquarters build- ing, located at 1501 Langston Blvd., in Arlington, VA, to Taicoon 1501 Langston LLC for $16,250,000. AFA, which has owned the property since 1984, signed a short-term leaseback prior to relocating. AFA’s Board of Directors approved the sale in April. “The building has served our association very well for many years,” said AFA presi - dent & CEO Lt. Gen. Bruce Wright, USAF (Ret.) . “But as we have evolved it, it has become clear that the AFA of today, and especially tomor- row, has different needs than those of 40 years ago. A more

1501 Langston Blvd., in Arlington

modern and flexible facility will enhance our operational capability and open new doors to growth in the future. That, in turn, will enable us to be ever more effective ad- vocates for the Airmen and Guardians of our U.S. Air Force and Space Force.” The 85,422 s/f, class B of -

fice building sits on 1.3 acres in the prominent and much sought after Rosslyn neigh- borhood in Arlington’s Ross - lyn-Ballston Corridor. AFA occupies 28,715 rentable s/f while the rest of the property is leased to 10 other tenants. Added Saffer, “AFA is on a mission to modernize and

10A — July 2023 — Virginia — DelMarVa — M id A tlantic Real Estate Journal

www.marej.com

V irginia

Modern affordable housing in Norfolk’s St. Paul’s District Lawson celebrates the grand opening of Market Heights Apartments

ORFOLK, VA —Vir- ginia State Delegate, Angelia Williams Graves, City of Norfolk Mayor Kenneth Cooper Alexander, Virginia Housing CEO, Susan Dewey, Virginia Department of Housing and Community Development Director, Bryan Horn, civic and business lead- ers, and partners celebrated the Grand Opening and rib- bon cutting of Market Heights Apartments, a new 100% af - fordable apartment community in Norfolk’s St. Paul’s District. “One of the things that’s special about Market Heights N

is that it’s truly indistinguish - able from luxury apartments.”, said Lawson president and CEO, Carl Hardee . “It has a great location, great archi- tecture, great amenities, and will provide great service to its residents.” Market Heights Apartments is a 164-unit multifamily com - munity serving individuals and families earning 40%, 50%, and 60% AMI with af - fordable 1-, 2-, and 3-bedroom apartments featuring ame- nities comparable to near- by market rate apartments. Rents range from $591-$1,290.

Seventeen apartments are handicapped-accessible Sec- tion 504 compliant units and 80 units include Universal Design components. Lawson partnered with Hope House and Volunteers of America Chesapeake and Carolinas to provide on-site supportive services to resi- dents with developmental disabilities and mobility im- pairments. Hope House will also manage a $100,000 grant from LISC Hampton Roads powered by Sentara Health to fund community program- ming benefitting all residents, including a food pantry and telehealth booth. Community amenities at Market Heights include a resi- dent community room, secure building access, elevators, fitness center, playground, on-site laundry, indoor and outdoor bicycle storage, and a dog park. Apartment ameni - ties include granite kitchen countertops, in-unit washer/ dryer hookups, and modern kitchens. The buildings were built to energy efficient Earth - craft-certified standards. “Market Heights is not only a 164-unit complex, it’s an over $34 million investment, it created over 300 construc- tion jobs, and there will be more than eight permanent jobs here on this campus”, said City of Norfolk Mayor Ken - neth Cooper Alexander. “Let’s continue to work together to build the city that we want to see in the future.” Market Heights is the first property approved under the City of Norfolk’s new resiliency code. This code mandates spe - cific resilient measures that ap - ply to flooding, energy efficien - cy, and building integrity. The project site has been raised out of the flood plain and includes a new public sidewalk that improves safety for students walking to the neighboring Ruffner Middle School. “Everyone is not going to be a bazillionaire, but every- one deserves quality in their home.”, said Delegate Angelia Williams Graves, representa - tive for the 90th District in the Virginia House of Del- egates. “Lawson, along with these partners, have provided that here at Market Heights. Thank you so much for invest- ing in Norfolk, believing in Norfolk, and helping us solve a little bit of our affordable housing issues.” MAREJ

Shown from left: Norfolk City Councilman, John “JP” Paige, Norfolk City Councilwoman, Danica Royster, Virginia Housing CEO, Susan Dewey, Lawson President and CEO, Carl Hardee, City of Norfolk Mayor, Kenneth Cooper Alexander, Virginia Department of Housing and Community Development Director, Bryan Horn, and Virginia State Delegate, Angelia Williams Graves.

MEP / FP Engineering 3D Scanning and Scan-to-Revit ®️ Arc Flash and Short Circuit Coordination Code Consulting Commissioning Energy + Performance Fire & Life Safety Infrastructure Design Instrumentation & Building Controls Lighting Design by Lightcraft Master Planning Smart Building Consulting Technology Services GLOBAL ENGINEERING & INTEGRATED DESIGN SERVICES

POWERING HUMAN POTENTIAL akfgroup.com

Page 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

Made with FlippingBook - Online catalogs