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EWYORK, NY — In- vestcorp announced that its U.S.-based N 56 industrial properties for approximately $300 million Investcorp announces its largest U.S. warehouse portfolio acquisition house/manufacturing buildings in Phoenix
ISSUE HIGHLIGHTS Volume 30, Issue 15 Sept. 28 - Oct. 11, 2018
expand our presence in this important and growing indus- trial/warehouse sector in the US," said Mohammed Alar- dhi , executive chairman of Investcorp. "This investment further reflects our commit- ment to growing Investcorp's footprint in the US, which is a key driver of the firm's overall growth strategy and an area in which we will look to continue expanding as opportunities arise." This investment provides Investcorp with a 90% leased portfolio of class A and B ware- house, light manufacturing and flex buildings, across the e-commerce, manufacturing, design, wholesaling and food services industries. The port-
folio was purchased as a single investment, with over 60% of the property located in "Tier One" industrial markets. The properties that comprise this portfolio include: • Nine multi-tenant class A and B warehouses in Min- neapolis • 16 multi-tenant class B in- dustrial warehouse/flex build- ings in Dallas • 14 single and multi-tenant class B industrial warehouse/ manufacturing buildings in Chicago • Nine multi-tenant class A and class B industrial ware- house and flex buildings in Philadelphia / Delaware • Five multi-tenant class A and class B industrial ware-
SPOTLIGHTS
• Two multi-tenant class B industrial warehouse buildings in Houston • One multi-tenant class B industrial warehouse building in San Antonio "This investment will help our clients gain and increase exposure to the highly relevant industrial sector in a diversi- fied manner and benefit from some of the secular trends shaping the retailing industry in the US," said Rishi Kapoor, co-chief executive officer of In- vestcorp "The properties in this portfolio are located in supply constrained infill areas offering "last mile" proximity to major population centres."
real estate team recent- ly acquired i t s l arges t U.S. ware - house portfo- lio, totaling 4.5 million s/f and includ- ing 56 indus-
PA/NJ/DE CONFERENCE & DEAL MAKING
Rishi Kapoor
trial properties across seven metropolitan markets, for a total purchase price of $300 million. "We are proud to announce our largest US warehouse portfolio acquisition since the inception of the business, giving us the opportunity to BALTIMORE, MD — Ches- apeake Real Estate Group, LLC (CREG) and EverWest Real Estate Investors, LLC (EW) , on behalf of an EverWest separate account client, have executed a lease with Best Buy for 500,400 s/f of space within Brandon Woods III, a 259-acre site located near Fort Smallwood Rd. in Anne Arundel County. The Baltimore-based real estate company acquired the site from Exelon Corpora- tion last summer and, through a partnership with EW, intend to build up to 1 million s/f of industrial development. Matt Laraway and Scott Skogmo of Chesapeake Real Estate
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FALL PREVIEW
Section C
Chesapeake Real Estate Group and Everwest Real Estate Investors execute 500,400 s/f lease with Best Buy
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Brandon Woods III
Group represented the landlord and Michael Royce of Avison Young represented Best Buy in this lease transaction. Best Buy plans to consoli- date three existing locations throughout the Baltimore- Washington, DC, metropolitan region to occupy the building at 7550 Perryman St. CREG broke ground on this specula- tive building - featuring 36-foot- clear ceiling heights - last year, and it is currently 90% com- pleted. It is considered the largest industrial speculative project ever constructed in Anne Arundel County and one of the largest built in the state of Maryland. Best Buy expects to take occupancy in March 2019. The facility, which will sup- port 200 jobs, will be used to warehouse and distribute large
products to stores throughout the Mid-Atlantic region. “This lease validates our de- cision to acquire the 259-acre site last summer and immedi- ately proceed with the specula- tive development of more than 500,000 s/f of space. We intend to capitalize on current demand and the strong market funda- mentals by moving forward right away with our second building that will be 340,000 s/f,” said Matt Laraway, SIOR, partner, Chesapeake Real Es- tate Group. “With strategically located, large-scale sites be- coming increasingly difficult to assemble, our team understood the tremendous opportunity to create class A warehouse and distribution product to service emerging e-commerce and lo- gistical requirements. Among
the major strengths of Brandon Woods III is its access to nearly 50 percent of the nation’s popu- lation within a one-day truck drive and its immediate prox- imity to the Port of Baltimore and Baltimore-Washington International Airport.” Constellation Real Estate utilized a portion of this site to dispose of fly ash that was produced at its nearby Brandon Woods power plant. Immedi- ately upon its purchase of the Brandon Woods III site last year, CREG entered the prop- erty into the Voluntary Clean Up Program as outlined in the Land Restoration Program of the Maryland Department of the Environment. CREG has capped the brownfield fly ash portion of the site pursuant to MDE requirements.
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JUST LISTED - FOR SALE The Village at Upstream Farm Investment Offering Ground Lease
Pinewoods Association, LLC is offering for sale approximately 26 acres of land together with a 99 year ground lease with 82 years remaining containing a 55+ community in Forks Township, Northampton County. The Lessee is The Village at Upstream Farm Condominium Association. The development is comprised of 124 one and two-bedroom condominium units with garages. The ground lease began in July of 2001 and terminates on August 31, 2100 at which time the lessee has an option to purchase the property for $1.00.
• Monthly rental income: Pure NNN • Ground Lease with no landlord responsibilities • Annual increases at CPI not to exceed 5% per year • Homeowners association pays all costs of maintenance and capital repairs to the property • Clubhouse is included as part of the fee simple sale • Condominium Association has capital reserves for property upgrades and repairs • Potential for future property management • Condominium Association has never missed a payment
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M id A tlantic R eal E state J ournal Publisher, Conference Producer . .............Linda Christman AVP, Conference Producer ...........................Lea Christman Account Executive ........................................... Steve Kelley Account Executive ............................................. Kim Brunet Account Executive ........................................ Marisol Chase Senior Editor/Graphic Artist ..........................Karen Vachon Office Manager ...............................................Kerrin Devine Contributing Columnists: ........................ Scott R. Saunder Mid Atlantic R eal E state J ournal ~ Published Semi-Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 350 Lincoln St, Suite 1105, Hingham, MA 02043 USPS #22-358 | Vol. 30, Issue 18 Subscription rates: $99 - one year, $148 - 3 years, $4 - single copy REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Phone: 781-740-2900 | Fax: 781-740-2929 www.marejournal.com The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
M id A tlantic Real Estate Journal
New Warehouse Construction at the Award-Winning Haines Center
Scott R. Saunder
Opportunity Zones Provide Tax Deferral for Investors T he Tax Cuts and Jobs Act (TCJA) created a new investment vehicle called an Opportunity Zone (OZ) to encourage investment into distressed and low-income communities throughout the United States. The goal of this OZ tax incentive program is to attract taxpayers to invest capital through private invest- ments in businesses and real estate in distressed communi- ties to spur economic develop- ment in these communities. Under the TCJA, states could nominate communities they want to be designated as a Qualified Opportunity Zone to encourage economic revitaliza- tion. A Qualified Opportunity Zone retains this designation for ten years. Governors had until March 21, 2018, to sub- mit their recommendations for Zone designations by the U.S. Treasury unless the state requested a 30-day extension to April 20, 2018. If a governor did not submit an OZ nomina- tion by this deadline, they es-
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sentially opted-out of this tax incentive. The U.S. Treasury has approved OZ submissions for American Samoa, Arizona, California, Colorado, Florida, Georgia, Idaho, Kentucky, Michigan, Mississippi, Ne- braska, New Hampshire, New Jersey, New York, Oklahoma, Puerto Rico, South Carolina, South Dakota, Vermont, U.S. Virgin Islands, and Wisconsin. Taxpayers can defer some and potentially eliminate other capital gain taxes by investing in a Qualified Opportunity Fund (Fund). The taxpayer sells any type of asset that has a capital gain and invests the proceeds into a Fund with 180 days. This Fund is required
to have 90% of the Fund as- sets invested in Opportunity Zones. To become a Fund, an eligible taxpayer self-certifies and completes a form that the IRS is scheduled to release in the summer of 2018. Opportunity Zone invest- ments provide tiered capital gains tax benefits tied to in- vestments at five, seven and 10 year time frames. The tax benefits include temporary tax deferral and a small reduction in tax liability to, under certain circumstances, complete tax ex- clusion. There are three levels of tax benefits: 1. Temporary deferral of capi- tal gain taxes on gains invested continued on page 3A
REAL ESTATE AUCTION MAIN STREET, (DOWNTOWN) SUSQUEHANNA, PA! THREE INTERCONNECTED BUILDINGS, MONDAY, OCTOBER 29TH @11:00 A.M. 1322-24,1328, & 1332 Main Street Susquehanna County, Susquehanna, Pennsylvania 18847
Real Estate consists: 1332 Main St., Former Kitchen & Bakery Front, 1,435 SF plus a undeveloped 2 nd Fl. 1328 Main St., Restaurant Dining Are & Counter Service, 1,455 SF, plus a undeveloped 2 nd Fl. 1322-24 Main St., Retail Rental Space (4): 2,530 SF, renovation of 2 nd Fl. as office suites *Thee Buildings interconnected. Two floors each with increased rental potential. Contact us for Further Details! *Restaurant Equipment (Some), Being Sold Separately @ 10:00 A.M..List being compiled! *Inspection: By appointment *Terms of Real Estate: 15%t Non Refundable Deposit by Successful Bidder. Balance to be paid upon Closing within 45 Days. Time being of the essence. Property Sold As Is & Subject to Approval! Hire The Commercial, Industrial & Real Estate Auctioneers! Col. Steve Sitar & Co. Cell: 570-954-7001 P.O. Box 779 Waverly, Pa 18471 Pa Lic. AU 2124-L PH: (570) 586-1397 www.sitarauctions.com www.auctionzip.com
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M id A tlantic R eal E state J ournal Montecito Medical purchases two-building medical office portfolio totaling $13.5 million Gainor & Martier of Zeustra facilitates medical office portfolio acquisition in Lancaster, PA
ANCASTER, PA — Zeustra , a healthcare real estate firm, an- nounced the sale of the medi- cal office portfolio owned by Lancaster NeuroScience & Spine Associates in Lancaster. Erik Gainor and Corey Mar- tier of Zeustra represented Lancaster NeuroScience & Spine Associates in the sale of the two-building medical office portfolio to Montecito Medical. The transaction was valued at over $13.5 million. “We are very pleased that our L in a Fund until the taxpayer exits the Fund or December 31, 2026, whichever occurs first. 2. Deferred capital gains re- sulting from investments in the Fund held a minimum of five years are given 10% reduction in the amount taxed and invest- ments held at least seven years are given a 15% reduction. 3. If a taxpayer holds an investment for 10 years, the capital gains accrued on the Fund investment itself (i.e. the property profit) will receive a full step-up in basis for that ten-year period. This final benefit results in tax exclusion and is a permanent exclusion of taxable income for investments into a Fund. Comparing An Opportunity Zone to a 1031 Exchange A significant advantage of an OZ is that contributions to the Fund can be any type of asset or investment and is not limited to only real property like in a 1031 exchange. However, investing in low-income communities with a ten-year investment time horizon presents a number of disadvantages. In a 1031 exchange, taxpayers can invest in any market in the United States which provides an in- vestment advantage to obtain better investment returns by redeploying equity immedi- ately into communities that are providing high economic growth and strong investment returns today. Moreover, since there is no predetermined hold- ing period in a 1031 exchange, taxpayers have the chance to reinvest equity multiple times compared to the ten-year hold- ing period required to obtain the most beneficial tax advan- tages in the OZ program. Scott R. Saunders is sr. vice president at Asset Pres- ervation, Inc. Opportunity Zones . . . continued from page 2A
focus and dedication to provide opportunities and services for our valued clients created a great result for both parties in this transaction.” said Erik Gainor, CEO of Zeustra. Established in 1972, Lan- caster NeuroScience & Spine Associates has developed an outstanding reputation for delivering excellent outcomes for patients. The Lancaster fa- cilities include the physicians’ offices, The Center For Spine Care (outpatient surgery center devoted to pain management), physical therapy and adminis- trative offices at 1671 Crooked
Oak Dr. In 2009, the physicians constructed a three-story medi- cal building, Eden Rd. Medical Center at 730 Eden Rd., where they own and operate an out- patient spine surgery center, The NeuroSpine Center. The NeuroSpine Center’s strategic proximity to the group’s ad- jacent main office allows the surgeons to streamline patient care in a more intimate and comfortable manner. In ad- dition to its facilities in Lan- caster acquired by Montecito, the group maintains an office in Lebanon, PA. The two adjoining medi-
cal facilities located at 1671 Crooked Oak Dr. and 730 Eden Rd. represent a combined total of 44,556 s/f. Lancaster NeuroScience & Spine Associ- ates occupies 90 percent of the space in the first building and approximately 40 percent in the second building. The other major tenant at 1671 Crooked Oak Dr. includes Lancaster General Hospital Outpatient Lab Services and at 730 Eden Medical Center the major ten- ants include The MRI Group, Lancaster General Hospital Physical Therapy, and Lan- caster Family Allergy. These
locations provide access to premier medical providers in the greater Lancaster region. “Erik and Corey have a wealth of knowledge in today’s healthcare environment which was key to achieving our goals. You can’t but admire their hands-on and direct approach throughout the entire process; they never once became disen- gaged. We are grateful for their dedication and working with Zeustra has been rewarding from beginning to end.” said Stephanie Kurtz, Administra- tor of Lancaster NeuroScience & Spine Associates.
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Surovich of Lakeland Bank served as lender Lucern Capital Partners exits Weymouth Court Apartments in Philadelphia, PA
P
cant capital was injected, cor- recting deferred maintenance and renovating units to market specifications. “When we purchased the portfolio, the majority of the tenancy at the property was materially delinquent, and the property was in deep dis- repair. We moved to re-tenant the property, replacing ap- proximately 75% of the tenant base with higher quality, pay- ing tenants, improving rents while simultaneously reducing delinquency to almost zero. To support a higher quality tenant base, we renovated common
areas, units, and dressed up the exterior of the building. We prudently invested, upgrading electric, upgrading heating systems to high-efficiency, and repairing major components of the plant,” said Frank Forte , who leads the firm. “We had initially planned to hold the asset longer, but we have begun to refocus our efforts on fewer, but larger transactions. We saw an op- portunity to divest and improve our resource allocation, while leaving the new buyer in a place to focus on improving rents fur- ther, and taking the asset to the next level. Our sale process, led by Eli Rosen of Gebroe-Ham- mer , was smooth and quick. Our lender on this deal was Rob Surovich of Lakeland Bank , who was a great partner to us from acquisition through sale. We are excited to move forward, but always nostalgic when we exit a transaction,” said Forte. Costanzo of Char i t y Rea l t y reps. Groome in relocation FAIRFIELD, NJ —According to Charity Realty Interna- tional , Groome Industrial Ser- be sweeping their corporate offices, warehousing and train- ing facilities to a free standing 22,000 s/f facility in Fairfield. James Costanzo , president of Charity Realty Internation- al who represented Groome’s relocation effort knew he was looking at Cinderella’s Slipper when he first toured 22 Au- drey Place. “It checked all the boxes; a professionally man- aged, first-class facility with easy highway access and both drive-in and tailboard load- ing, 22-foot clear ceilings, on an over-sized lot, with enough HVAC and finished space to accommodate the client’s needs, in an employee-centric location.” As a result of the transac- tion, Charity Realty Int'l. pre- sented a grant in the amount of $6,000 divided between four charitable organizations. James Costanzo v i ce Group a l ong wi th s u b s i d i a r y Groome Door & Mechani- cal Systems, both specialty service con- tracting com- panies will
HILADELPHIA, PA — Lucern Capital Partners , a real estate
private equi- ty firm head- quartered in New Jersey, has sold a two property port- folio in Phila- delphia, PA. Lucern Capi- tal Partners
Frank Forte
acquired the portfolio in an extremely distressed state in 2016 from a strained partner- ship that had neglected the asset. Upon purchase, signifi-
Weymouth Court Apartments
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761-unit multifamily asset draws strong national investor interest Pyramid Brokerage Company and Cushman & Wakefield arrange sale of Nob Hill Apartments S
growth in the education and medical sectors that have ben- efited the community,” said Scherreik. “The multifamily market in Syracuse remains on solid footing and is highly desirable to investors. Nob Hill demonstrates the strength of these market fundamentals as evidenced by consistent historically strong occupancy rates,” added Whitmer. Set on 27.6 acres and offer- ing a mix of one-, two- and three-bedroom apartments, Nob Hill is comprised of four mid-rise apartment buildings, a free-standing clubhouse and an indoor parking garage. Each building features a first- floor community room, storage space for each apartment, and laundry facilities on all the upper floors. On-site ameni- ties include a state-of-the-art fitness center, a playground, a picnic area, fire pits and a large outdoor swimming pool with sundeck. Exit 8a, in the midst of the hot- test industrial market in the state, and there is very little supply in this submarket." Accordia Realty and Ever- West will construct 85 Stults Rd. on 20 acres of land lo- cated adjacent to 83 Stults Rd.. The property will in- clude 36-foot clear ceiling heights, 52 load docks, four drive-in doors, 38 car parking spaces and 75 trailer stalls. Site work has commenced and construction on the new distribution and warehouse facility is expected to be com- pleted in early 2019. In April 2018, One Stop Lo- gistics inked a 10-year lease for the entire 369,000 s/f 83 Stults Rd.. JLL’s Golden rep- resented Accordia Realty and EverWest in the One Stop Logistics lease. One Stop Logistics was represented by Brian DiPinto , direc- tor, with The Blau & Berg Co.
HI-LIGHTS S ept . 28 - O ctober 11, 2018 Pyramid Brokerage Com- pany’s Robert Scherreik, CCIM, SIOR, MCR and John Clark, SIOR, CRE along with Cushman & Wakefield’s East Rutherford-based Capital Governor Carney appoints Williams to Chair Council YRACUSE, NY — Cush- man & Wakefield and Pyramid Brokerage Company have arranged the sale of Nob Hill Apartments, a 761-unit multifamily complex located at 100 Lafayette Rd. in Syracuse. The asset, which traded for $58.5 million, was acquired by a New York State based investor in joint venture with two equity partners.
100 Lafayette Road
Upstate Medical University. New ownership plans to imple- ment a renovation and updat- ing initiative. “This premier residential asset is well-situated in a town that has seen compelling
Markets team of AndrewMe- rin, David Bernhaut, Gary Gabriel, Brian Whitmer , and Ryan Dowd , procured the buyer and represented the seller in the transaction. Nob Hill is one of the larg-
est apartment complexes in Syracuse, ideally located just minutes from major commut- ing corridors, the Syracuse Central Business District, Syracuse University and the area’s largest employer, SUNY
JLL arranges land sale to construct 203,488 s/f distribution and warehouse facility Accordia Realty Ventures, EverWest RE Investors to develop 85 Stults Rd. in Dayton, NJ
16A
DAYTON, NJ — A joint venture between Accordia Realty Ventures LLC and a separate account client of EverWest Real Estate Investors LLC began con- struction on the 203,488 s/f 85 Stults Rd. in Dayton, NJ. Accordia Realty Ventures and EverWest, on behalf of its client, was represented by Joel Lubin, executive managing director, and Bri- an Golden , executive vice president, both with JLL . The pair worked closely with Joseph Romano and Ja- son Bogart , principals, at Accordia Realty, and with Mark Bigarel , senior vice president and head of acqui- sitions, at EverWest, in the acquisition of the site, the planning of the new build- ing and will continue on as the marketing team for the project. The owners acquired the property and the adjacent 83
Aria Development Group acquires prominent corner site in DC
85 Stults Rd. rendering
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“Accordia Realty and an EverWest client bought the building and adjacent land in February 2017 with the intention of working with the local municipality to receive approvals for the construction a new distribution and ware- house facility at 85 Stults Rd.,” said Golden. “The risk was buying land that was not en- titled, but the site is adjacent to the New Jersey Turnpike’s
Stults Rd. building fromHer- mann's Services Inc. in Feb- ruary 2017. Accordia Realty and EverWest, on behalf of its client, later signed a sale- leaseback with the logistics and distribution company, al- lowing Hermann's Services to continue to occupy 83 Stults Rd. for one year. JLL repre- sented Accordia Realty and EverWest in both the initial sale and the sale-leaseback.
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O wners , D evelopers & M anagers Will be used to determine limits for each use type Union Investment develops newManage to Green strategy
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2050. The investment neces- sary to achieve these target values is factored into the due diligence process and is there- fore included in the profitability analysis. Union Investment will use these limits and target values to formulate specific CO2 savings targets and other goals for its real estate portfolio at the beginning of 2020 as the core element of its Manage to Green strategy. “The redesigned SI Check is having a significant impact on the strategic direction of our portfolio, which shows we are taking the aims of the German Climate Protection Plan very seriously and are considering the increasing sustainability requirements at an early stage. In doing so, we are safeguard- ing the quality of our portfolio in the long term and making proactive decisions in the inter- ests of our investors,” said Dr. Reinhard Kutscher, CEO and Chairman of the Management Board of Union Investment Real Estate GmbH. Union Investment conducts the SI Check prior to every pur- chase of a commercial property.
The tool is also used to analyse existing holdings on an an- nual basis in order to identify potential for continuous im- provement in the sustainability performance of office, retail, hotel and logistics properties. Properties can achieve a score of between 1.0 and 5.0. The EMPORIO office building in Hamburg currently holds the top score in the Union Invest- ment portfolio at 4.3. “The results of the SI Check are already an important point of reference for our fund man- agers and our institutional customers,” said Dr. Kutscher. “By updating the evaluation procedure, we are aiming to es- tablish the SI score even more firmly as a property-specific equivalent to the ESG scores widely used for securities.” The revised SI Check eval- uates criteria across seven categories: energy, economy, resources, user comfort, op- erational measures, location and building automation. The “building automation” category has been added to the revised check to enable the extent of continued on page 10A
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tial construction sector, en- ables homebuilders to manage schedules and streamline order processes with suppliers, dis- tributors and manufacturers. Its full suite of digital services addresses everything needed to keep projects on time and under budget. Property Management IBS’s Imperium Powered by Acumatica serves as a single source for capturing and pro- cessing real estate enterprise data, and includes deep func- tionality in the areas of escala- tions and recoveries – with ro- bust lease abstracting, and util- ity and tenant service billing
features for multi-family, com- mercial and other specialized markets. Elegantly integrated solutions for electronic rent payments, payment processing, and resident screening make managing day-to-day tasks automatic and convenient, often resulting in significant cost savings over conventional approaches. It provides all of this, along with unparalleled integration capabilities. Estimating PlanSwift’s digital estimat- ing and takeoff software for the construction industry enables contractors and estimators to continued on page 16A
multiple projects from one central program. Offering real- time access and instantaneous tracking for every team mem- ber, it keeps everyone up to date from bidding to comple- tion. Procore is a drawing- centric application. Submittals, RFIs, punch lists, photos and other details are included in the most current drawing set. Popular collaboration soft- ware SmartSheet enables teams to automate timing for tasks like collecting informa- tion from different workers and sending requests for ap- proval from one colleague to another. The intuitive interface
enables fast implementation to configure, adapt and improve processes. SmartSheet boasts “frictionless sharing” and the creation of clear accountability to bolster task ownership and team engagement. Honest Buildings is the lead- ing integrated, data-driven project management and pro- curement platform built for commercial real estate. Com- panies use Honest Buildings to centralize project data, increase transparency, automate bid management and standardize reporting. Hyphen Solutions, specifi- cally designed for the residen-
wha t I S a t e c hno l o g y stack? It’s ac- tually pretty s i m p l e . A tech stack is a group of mul- tiple technol- ogy applica- tions that to-
Michael Mullin
day’s businesses use to manage their core functions. Decades ago, it was an actual stack of hardware in the IT department. Now, like most technology, it’s virtual and resides in the cloud. Here’s why you should care. A well-integrated technology stack helps streamline routine business tasks and also greatly increases the ability to use in- formation to improve planning. The “stack” is powered by the multi-cloud world. This means multiple business applications and services in the cloud effort- lessly interact in a way that best serves the individual us- ers. With the universal growth of platforms powering business functions, the importance of a technology stack is being recog- nized in all industries, old and new, small and large. Within this context, con- struction and development practitioners are adopting cloud platforms and applications that facilitate project management, property management, estimat- ing, budgeting and valuation, AP processing, and document and approval management. In turn, the construction and development technology stack is taking shape, incorporating a variety of tools to increase ef- ficiency and accuracy, improve focus on value-add opportuni- ties, and enhance the ability to make confident decisions. The enterprise construc- tion management/accounting platform serves as the core of a well-assembled construc- tion tech stack. Today’s most cutting-edge products (such as Acumatica Construction Edi- tion) allow other components of the stack to integrate with this core, sharing data in real time to facilitate every aspect of doing business. As you’re assembling a tech- nology stack for your construc- tion or development organiza- tion, take a look at these best- in-class technology platforms. Project Management Procore improves visibility and enables management of
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10A — September 28 - October 11, 2018 — Owners, Developers & Managers — M id A tlantic
Real Estate Journal
www.marejournal.com
O wners , D evelopers & M anagers
ONTCLAIR, NJ — The Ki s l ak Company, Inc. an- VP Joseph Keenan arranges quick sale of high-demand multifamily properties Kislak sells 70 residential units in Montclair, NJ for $17.25 million M
parking. The property includes a solid tenant base with oc- cupancy typically near 100%. The apartments are spacious with eat-in kitchens; have separate dining, living and bedroom spaces; and are well maintained with high ceilings, hardwood floors and crown molding throughout. Polished marble lobbies welcome resi- dents and visitors. The property on Forest Ave. is a three-story, shingled house containing two units and was previously purchased to expand the parking availability for the residents at the North Fuller- ton property. Both properties, located in the heart of downtown Mont- clair, within short walking dis- tance of theWalnut Street train station, were only briefly mar- keted when Kislak procured the purchaser and negotiated the deal in less than 10 days. “The purchaser was quick to act due to the significant upside in rents andMontclair’s lack of rent control,” Keenan further commented. “There is a voracious appetite among investors for well-located, high quality multifamily properties. Buildings of this size in this location do not come on the market often,” he said. Joshua Herbst was the attorney for Oak Tree Capital LLC while David Faloni, Esq. represented Falad Prop- erties, LLC in the sale. Ori- tani Bank provided financing for the purchaser who plans to immediately implement a value-add program to spe- cifically upgrade all apartment interiors. digitisation within a property to be captured more accurately. In addition, the former “opera- tion” category has been rede- fined as “operational measures” so that it now covers smaller- scale energy-saving measures as well as major redevelop- ment projects such as façade renovation. The importance of green leases is also given more weight in this revised category. The overall aim of the updated SI Check is also to ensure that greater account is taken of the specific features of the different use types. Union Investment started using the revised evalu- ation procedure at the begin- ning of September 2018. continued from page 8A Union Investment develops . . .
he approached me to sell these properties that he and his sib- lings had owned for nearly 20 years. The purchaser is a part of a multi-generational real estate family and this is the second deal he has closed since forming his own company. I am thrilled that he purchased these properties and look for- ward to closing many more deals together in the future.” The property at North Fuller- ton Ave. consists of a pre-war, five-story elevator building with 68 units comprised of seven studios, 32 one-bedroom apartments, and 29 two-bed- room apartments with on-site
nounced the recent sale of 70 residential units at 31-49 North Fullerton Ave. and 36 Forest Ave. in Montclair, New Jersey for $17.25 million. Kislak marketed the prop- erties on an exclusive basis with vice president Joseph Keenan representing both the purchaser and seller, Oak Tree Capital, LLC and Falad Properties, LLC , respectively. The seller, a longstanding client with whomKislak has complet- ed numerous transactions over the years, is a family-owned
39-41 North Fullerton Avenue
said Keenan. “I have known the seller for over 12 years and we completed many deals together. I was honored when
investor. The purchaser is a locally-based private investor. “I am grateful to have been a part of this transaction,”
Real Estate Journal — Owners, Developers & Managers — September 28 - October 11, 2018 — 11A
www.marejournal.com
M id A tlantic
O wners , D evelopers & M anagers
By Scott Sounart, PE, Kleinfelder Improving Your Lot’s Life
I
transverse cracking increase inmagnitude and density, they form block-like patterns called block cracking. Block cracking is a series of interconnected cracks that appear as rectan- gular pieces. Like longitudinal cracks, block cracking can also allowmoisture to infiltrate the asphalt, which can undermine the pavement. When aggregate or asphalt binder materials wear away at the surface, raveling results. Raveling is essentially the disintegration of the asphalt causing pieces of the pavement to come loose. This can lead to gaps within the pavement sur-
face, roughening of the surface, and the formation of puddles, which can lead to vehicle hy- droplaning and other related problems. While these first four types of deterioration are signs of trou- ble, they can often be treated with inexpensive preventative maintenance procedures such as a crack seal or seal coat. Un- fortunately, many owners and their maintenance consultants unnecessarily utilize more costly reconstruction, and as a result end up spending thou- sands more than necessary to fix what are essentially simple and common issues.
t’s easy for building own- ers to take their park- ing lots for granted, but
require major overhauls, sav- ing owners and their property managers tens of thousands of dollars. Seven Signs Of Trouble There are seven common types of asphalt deterioration, and they tend to progress from one to another other. The first sign of trouble appears in the form of longitudinal cracks. Longitudinal cracks typically appear along joints, which are the weakest part of the pavement. They can result from poor joint construction or location, or they may be an indication of fatigue within the stabilizing base below. Even
though longitudinal cracks are just an early form of deterio- ration, they can cause major problems down the line by allowing moisture to infiltrate the concrete. The next common form of deterioration is transverse cracking, which extends across the pavement perpendicular to longitudinal joints. Transverse cracking usually results from shrinkage of the stabilizing base below and is often related to low temperatures impacting the asphalt. Transverse crack- ing is also often an indication that the stabilizing base is also cracked. As longitudinal and
they play a vital role in the success of the buildings they serve. A run-down parking lot c r ea t e s an u n a t t r a c t - ive and un-
Scott Sounart
welcoming impression that makes the entire complex seem less appealing and inviting. Perhaps more importantly, a derelict lot can also pose po- tentially hazardous conditions for visitors and employees and their vehicles. Not only can this undermine a business by making it’s location less attrac- tive to potential customers, but it can also lead to costly legal liability if visitors or employees suffer personal injury or dam- aged vehicles. Yet in spite of the obvious hazards that can be caused by run-down or improperly maintained parking lots, many owners treat their lots as an afterthought. This is partly a perception problem. Many owners mistakenly assume that their parking lots are es- sentially maintenance-free and that once the lots are developed they can forget about them. While it’s true that the typi- cal lot requires less mainte- nance than a parkade, proper maintenance is essential. A parking lot’s pavement under- goes a great deal of wear and tear every day from multi-ton vehicles and it’s essential to have an assessment and main- tenance plan to preserve the property’s aesthetics, ensure customer and tenant safety, and extend the service life of the pavement. Pavements can be one of a commercial facility’s most ex- pensive assets tomaintain, but these costs can be minimized. There are seven primary types of asphalt distress, any one of which can require repair. The good news is that a pavement evaluation program, led by a trained and experienced pave- ment assessor, can identify potential problems before they continued on www.marejournal.com Scott Sounart, PE is a senior principal withKlein- felder and director of the firm’s pavement engineer- ing practice.
12A — September 28 - October 11, 2018 — Owners, Developers & Managers — M id A tlantic
Real Estate Journal
www.marejournal.com
O wners , D evelopers &M anagers By Lisa Cassidy, ecoImagine 6ways tomaximize your next B2B Marketing Campaign S uccessful marketing means getting in front of the right audience,
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the following six methods are sure to maximize the impact. #1 Know your audience. In order to connect with your audience, you need to be hon- est about who your audience is and what their preferences are. Start by getting answers to these not so simple questions. • What are the features of your best/most profitable cus- tomers and how can I find more prospects like them? • Where do your prospects go to gather information? Newspa- per? TV? Social media? Email? • What types of messages resonate with this audience? • What format do they like to
get their information? Video? Print? Word of mouth? • What are their interests or pain points? • What role do they have in the organization? • What motivates them to take action? #2 Focus on channels that yield results. Not every busi- ness needs to have a presence on Facebook to be successful. Before spending too much time trying to be everywhere, focus on the places your prospects go to get information. Then spend a few months measuring the value of the leads coming from each channel. If Facebook leads turn into customers, put more money into Facebook posts and ads. If Google Adwords yields better leads, invest there. Just make sure to put enough time and effort into each chan- nel before pulling the plug. Adwords, in particular, takes several months for ads to show up consistently. #3 Be clear, compelling and concise with your mes- sage. Resist the urge to go overboard. Your message must be clear (not confusing or filled with jargon), compelling (inter- esting or topical to your audi- ence) and concise (to the point), or readers will lose interest. We suggest testing multiple messages, while controlling for other variables, to see which approach is most effective. #4 Have a consistent look and feel. Create a visual con- nection with your audience. Everything should look like it is coming from the same company. The overall design should have the same look and feel whether it is the style of photography, font types or color combinations. The visual theme should be repeated across all channels. Visual consistency will help prospects remember you and is the key to looking organized and professional. #5 Create content for all the stages of the buyer’s journey. All content is not the same. In the early stages, a prospect may not yet be aware that they need your product or service, so creating awareness is more valuable to them then pricing, for example. Google is often the first place buyers go to research topics they are interested in learning more about, so it is important to have blogs, ebooks and social media posts available for discovery on relevant key words. continued on page 14A
w i t h t h e right mes- sage, at the right time. It is a process designed to ensure that all messag- ing and com- muni cat i on
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strategies are consistent across all channels and are centered on the prospect’s needs. While there is no one sure-fire formula to creating a successful inte- grated marketing campaign,
P o s k a n z e r S k o t t A r c h i t e c t s 550 North Maple Avenue, Ridgewood, NJ 07450 201.445.2322 www.poskanzerskott.com
Real Estate Journal — Owners, Developers & Managers — September 28 - October 11, 2018 — 13A
www.marejournal.com
M id A tlantic
Expert Technical Engineering & Professional Consulting Services Commercial Sites & Residential Communities
Stout & Caldwell Engineers is a provider of professional and technical engineering and consulting services. Founded in 2004, the firm specializes in site plan design, land survey and environmental solutions, including flood elevation certificates, and serves clients throughout New Jersey, Pennsylvania and Delaware. CORE SERVICES · Site Engineering · Environmental · Utility Design · Testing · Surveying · Municipal · Permitting · CAD/Renderings Skilled Expertise in Multi-Family Communities Main Street at Marlton Apartments / Mixed Use Residential and Commercial Site 42 East Main Street Marlton, New Jersey
Disciplines Utilized · Conceptual and Major Site Plan · Boundary and Topographic Survey · Phase I & II Environmental · Wetlands · Environmental Impact Study · Soil Testing and Analysis
· Storm Water Design · Traffic Engineering · Permitting · Planning Board Testimony Site Size 3 +/- Acres Building Size Residential - 36,357 SF Retail - 4,000 SF Project Status Phase I: Complete Phase II: Pending Special Permitting Planning Board, NJDOT Partners Bob Meyer Communities Inc., Barton Partners Architects Planners Inc. and Shropshire Traffic Engineering
DESCRIPTION South Jersey home builder and community developer, Bob Meyer Communities Inc. alongside its partner Steve Jaffe, engaged Stout & Caldwell to provide comprehensive civil engineering, environmental and surveying services for a new mixed use residential and retail site. This included conceptual and major site planning, boundary and topographic surveys, stormwater design, Phase I & II Environmental, permitting and planning board testimony. Located on 3 +/- acres in the heart of Marlton, New Jersey, the newly constructed Main Street
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Contact Us To Learn More 705 US Route 130 South, PO Box 2290 | Cinnaminson, NJ 08077 | 856-786-2202 | www.stoutcaldwell.com
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