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C Skidmore, Owings & Merrill to design the new 840,000 s/f, 38-story office tower Oliver Tyrone Pulver Corporation plans new office tower in Center City enter City, PA — Ol iver Tyrone Pulver Corporation
ISSUE HIGHLIGHTS Volume 29 Issue 1 January 13 - 26, 2017 A10 Capital funds $27m bridge loan
Donald Pulver , president of OTP. “This property presents a unique opportunity to build a state of the art office tower at the hub of our regional communications and trans- portation lines. The location and amenities at this office building will enable tenants to draw from a huge talent pool that expects a vibrant and accessible work location.” Skidmore, Owings & Merrill , one of the leading architecture, interior design, engineering, and urban plan- ning firms in the world, will design the new building. Lo- cated at the heart of Philadel- phia, 1301 Market St. will cre- ate a new locus for the city’s downtown core. Wrapped in curtains of glass, the slender tower will serve as a new bea-
con on the skyline. Designed to maximize natural light, the transparent sheath offers panoramic views of the city while establishing a visual connection with the street below. The mixed-use format will include modern office spaces, flexible retail zones, employee amenities, and two landscaped outdoor roof ter- races. Anchored at street level by a glass-enclosed po- dium, the tower will engage passersby with a striking double-height boutique lobby. Efficient floors, state-of-the- art ventilation systems, an advanced communications backbone and direct access to transportation systems will support tenant comfort and productivity in this model for sustainable office design. n
(OTP) , developer of over 14 million s/f of commercial of- fice properties in suburban and central U.S. cities, has signed an agreement of sale to purchase a building site at 13th and Market Streets in Philadelphia. The developer plans to build an 840,000 s/f, 38-story office tower and ame- nities on the site at the heart of Center City Philadelphia, at the locus of regional com- merce, highways, and public transit concourses. The build- ing will be ready for occupancy in early 2020. “We have a long history of developing world class of- fice buildings at the centers of regional business,” said
6A
WCRE Fourth Quarter Report
13th and Market St. rendering
6B
PrincipalsMilanaik&Porcek oversee operations of the Parsippany office Bridge Development sells 263,415 s/f industrial building in Union, NJ for $46.5 million
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Union, NJ — Bridge De- velopment Partners, LLC announced the sale of Bridge Point Port West, a class A industrial building totaling 263,415 s/f at 750 Union Ave. in Union, to a fund managed by J.P. Morgan for $46.5 million. Brian Fiumara, Michael Hines and Brad Ruppel of CBRE National Part- ners represented Bridge in the transaction. Nick Firth led the
Directory
750 Union Ave.
Financial Digest................................................5-10A Pennsylvania..................................................11-13A New Jersey................................................. Section B
Located directly in the northwest quadrant of the interchange of I-78 and Gar- den State Parkway, Bridge Point Port West offers excel- lent highway visibility, toll- free access and proximity to Port Newark (7.5 miles) and Newark Liberty International Airport (6 miles). Completed in 2015, the building features 36’ foot clear ceiling heights, 55-foot column spacing, 50 loading doors ESFR sprinkler
systems, T-5 lighting, and on- site parking for 150 trailers. Bridge acquired the site in 2014 and completed the building in late 2015. It is fully leased to Boxed.com and Union Beverage Packer. This is the first major proj- ect for Bridge since opening a new office in Parsippany in September 2014. Principals Jeffrey Milanaik and John Porcek oversee operations of the office. n
J.P. Morgan team. “Our first development since we opened a New Jersey of- fice has proven to be a great success,” said Bridge princi- pal Jeff Milanaik. “No other modern industrial space exists in the immediate area, so the location was highly desired by tenants and investors. The sales price, in excess of $176 psf, was well above typical prices for industrial buildings in that market.”
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FEBRUARY JANUARY 13 ...................................... DEADLINE: JAN 2 ROP (FRONT SECTION) : ................................ FINANCIAL DIGEST DEL/MAR/VA/DC: ................................. FINANCIAL INSTITUTIONS NEW JERSEY: ......................................................... SOUTHERN NJ PENNSYLVANIA: .......................................... NORTHEASTERN PA SPOTLIGHT: .......................................................... 2017 FORECAST JANUARY 27 ....................................DEADLINE: JAN. 13 ROP (FRONT SECTION) GREEN BUILDINGS SHOPPING CENTERS: MID ATLANTIC ICSC CONFERENCE & D.M ODM: ................................................. PROPERTY MANAGEMENT SPOTLIGHT: ....................................... ECONOMIC DEVELOPMENT FEBRUARY 10 . . . . . . . . . . . . . . . DEADL INE: JAN . 27 ROP ( FRONT SECTION): ...................... FINANCIAL DIGEST DEL/MAR/VA/DC : ......................................................... DELAWARE NEW JERSEY: ............................................................ CENTRAL NJ PENNSYLVANIA: ....................................................... WESTERN PA SPOTLIGHT: ................. HEALTHCARE/MEDICAL PROPERTIES FEBRUARY 24 . . . . . . . . . . . . . . . DEADL INE: FEB. 10 ROP (FRONT SECTION) SHOPPING CENTERS: .......................... MIxED-USE PROJECTS ODM: ................................ ENVIRONMENTAL/GREEN BUILDINGS SPOTLIGHT: ........................ COMMERCIAL OFFICE PROPERTIES MARCH 10 . . . . . . . . . . . . . . . . . . . DEADL I NE : FEB . 24 ROP (FRONT SECTION): ................................ FINANCIAL DIGEST DEL/MAR/VA/DC : ............. CONTRACTORS/SUBCONTRACTORS NEW JERSEY: ......................................................... NORTHERN NJ PENNSYLVANIA: ........................................................ CENTRAL PA SPOTLIGHT: ......................................................... 1031 ExCHANGE MARCH 24 . . . . . . . . . . . . . . . DEADL I NE : MARCH 10 ROP (FRONT SECTION) GREEN BUILDINGS SHOPPING CENTERS: ................................ INDUSTRY ExPERTS ODM: ................................. MULTIFAMILY FEATURING POA ExPO SPOTLIGHT: .............................................................. BEST OF 2016 MARCH
JUNE APRI L 14 . . . . . . . . . . . . . . . . . . . . . DEADL INE: APR I L 3 ROP (FRONT SECTION): ................................. FINANCIAL DIGEST DEL/MAR/VA/DC: .......................................................... MARYLAND NEW JERSEY: .......................................................... SOUTHERN NJ PENNSYLVANIA: ........................................... SOUTHEASTERN PA SPOTLIGHT: .................................................................. APPRAISAL APRI L 28 . . . . . . . . . . . . . . . . . . . . DEADL INE: APRI L 14 ROP (FRONT SECTION) GREEN BUILDINGS SHOPPING CENTERS: LAS VEGAS RECON ICSC CONVENTION ODM: ............................................................................. GP-FM 2017 SPOTLIGHT: ....................................................... SPRING PREVIEW MAY 12 . . . . . . . . . . . . . . . . . . . . . . . . DEADL INE: APR I L 28 ROP (FRONT SECTION): ................................ FINANCIAL DIGEST DEL/MAR/VA/DC: .............................. MANAGEMENT COMPANIES NEW JERSEY: ............................................................ CENTRAL NJ PENNSYLVANIA: ............. PA'S PROJECTS/BUILDING SERVICES SPOTLIGHT: .................................... NJAA ExPO & CONFERENCE MAY 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . DEADL INE: MAY 12 ROP (FRONT SECTION) GREEN BUILDINGS SHOPPING CENTERS: RETAIL ARCHITECTURE/CONSTRUCTION/ENGINEERING ODM: ............................................................ INDUSTRY LEADERS SPOTLIGHT: .................... INDUSTRIAL/DISTRIBUTION CENTERS JUNE 16 . . . . . . . . . . . . . . . . . . . . . . . . . . DEADL INE: June 2 ROP (FRONT SECTION): ................................ FINANCIAL DIGEST DEL/MAR/VA/DC: ............................................................... VIRGINIA NEW JERSEY: ......................................................... NORTHERN NJ PENNSYLVANIA: ........................................................ CENTRAL PA SPOTLIGHT: ................................................ CREATIVE FINANCING JUNE 23 . . . . . . . . . . . . . . . . . . . . . . . DEADL INE: JUNE 16 ROP (FRONT SECTION) GREEN BUILDINGS SHOPPING CENTERS: ........................... RETAIL/RESTAURANTS ODM: ................................. CONTRACTORS/SUBCONTRACTORS SPOTLIGHT: ...................................................... MID-YEAR REVIEW MAY
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Mid Atlantic R eal E state J ournal Publisher ............................................................................ Linda Christman Publisher ............................................................................... Joe Christman Associate Publisher ................................................................ Steve Kelley Associate Publisher ..........................................................Barbara Holyoke Associate Publisher ...................................................................Kim Brunet Associate Publisher ............................................................. Lea Christman Senior Editor/Graphic Artist .................................................Karen Vachon Production Assistant/Graphic Artist ...........................................Julie King Office Manager .................................................................... Joanne Gavaza Contributing Columnist .......................................................Glenn Ebersole Mid Atlantic R eal E state J ournal — Published Semi-Monthly Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 312 Market St. Rockland, MA 02370 USPS #22-358 | Vol. 29 Issue 1 Subscription rates: $99 - one year, $148 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Toll-Free: (800) 584-1062 | MA: (781) 871-5298 | Fax: (781) 871-5299 www.marejournal.com The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
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MA REJ A dvertising D irectory A10 Capital......................................................... 6A Alderfer Real Estate........................................... 4A Bussel Realty Corp............................................. 1B Cooper-Horowitz, Inc.......................................... 9A CREW Lehigh Valley PA. ................................ 19A CREW NJ.......................................................... 12B CRT. .............................................................. IBC-A Cushman & Wakefield. ................................ IBC-B Customers Bank........................................... IBC-A Deerwood Real Estate Capital........................... 7A Earth Engineering............................................ 14A Fowler. .......................................................... IBC-A Gebroe-Hammer Associates............................. 12A GREP............................................................. IBC-A Hinerfeld Commercial Real Estate......... 13,IBC-A Investors Real Estate Agency...................... IBC-A Kaplin | Stewart................................................ 2A Lee & Associates........................................... IBC-A M&T Realty Capital Corp................................ 10A Meridian Capital. ...........................................BC-B NAI Summit.................................................. IBC-A Poskanzer Skott Architects................................ 4B Redwood Realty Advisors................................... 3B SEBCO Laundry Systems.................................. 2B SNJ AI..............................................................8-9B SUBWAY....................................................... IBC-A The Berger Organization. ...............................IC-B The Kislak Co.. ................................................... 2B Warner Real Estate & Auction.......................... 3A WCRE.................................................................. 6B Whitesell............................................................. 7B The Mid Atlantic Real Estate Journal welcomes all editorial dealing with the commercial/industrial real estate industry. P.O. Box 26 • Accord, MA 02018 (mailing) 312 Market St. • Rockland, MA 02370 (overnight) e-mail editor@marejournal.com www.marejournal.com 781-871-5298 781-871-5299 fax Mid Atlantic Real Estate Journal
Governments&Developers Need to Cooperate to Achieve SmartDevelopment T here continues to be a great deal of frustra- tion for professionals in commercial development in Pennsylvania. This frustration results from a myriad of bar- riers to gaining approval for projects. There are efforts to change the development paradigm to make it more efficient and “user friendly.” However, this has been a monumental task, and just as it appears progress is made, new and more onerous regulations are adopted. The basic questions: Why is the commercial de- velopment paradigm so hard to change in Pennsylvania? What are the most significant barriers to a better commercial development process? Here are some of the major roadblocks: Local regulations often im- pede smart, strategic commer-
cial growth. Many times, zoning and subdivision regulations are very rigid and do not allow for flexibility that would encourage commercial development. Time is money in commercial development. Innovative de- velopers who propose projects that include businesses with well-paying jobs, provide a good real estate tax base with minor effects on schools and municipalities and provide sus- tainable and environmentally friendly planning and buildings often are stymied by inflexible regulations. When the cost and delay are too great, the rigid by-the-book approach often prevails over in- novation, resulting in projects being abandoned.
Some projects span two or more municipalities. This creates many challeng- es, including multiple pro- cesses that may be in conflict with the jurisdictions; lack of cooperation among the juris- dictions; redundant fees and costs because of different and conflicting reviews; and the additional time to go through the land-development process in each municipality. The best and most success- ful commercial developers are committed to smart, strategic commercial development. Un- fortunately, there are many outdated assumptions and perceptions that prevent de- velopers from building projects continued on page 16A
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M id A tlantic R eal E state J ournal Biddingwill beginonJanuary19thon2,511+/- s/f comm’l. building Warner Real Estate &Auction Co. to hold online only auction
If you are an industry leader, Then this is the paper for you!! The Journal . . . Through the past 14 years, the MidAtlantic Real Estate Journal has published Com- mercial real estate industry specific news, sales and lease transactions as well as new development throughout the NJ, PA, DE, MD, VA areas. Our paper circulation, e- newletter and internet presence offers the most exposure and visibility for you and your company than any other commercial real estate publication in the region Wewelcome and encourage, press releases, expert bylinearticles andcompany features. Advertising is affordable. All submissions appear in the paper edition as well as the digital edition. All press is shared on Facebook, LinkedIn and twitter. We also host industry specific conferences! SubScrIbe Today and Save $$ boGo* ❐ 1 year $99.00 ❐ 2 years $148.50 FREE Company Name ________________________ Customer Name ________________________ Address _______________________________ City ______________State________Zip_____ I am not ready to buy now, please send me a sample: ❐ I am requesting a copy of the Mid Atlantic Real Estate Journal _______________________________________ Signature _______________________________________ Date Linda christman, Publisher Mid Atlantic R eal e state J ouRnal ph: 781-871-3456 ~ fx: 781-871-5299
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Online Bidding will begin on January 19th at 8AM and will end on January 25 at 10AM. There will be a property tour on Sunday, January 22 from 12:00-1:00PM. Prospective buyers can also access the property by appointment if accompanied by a NJ Li- censed Real Estate Agent. The auction is being held online only at WarnerRealtors.com. Please visit the website for complete terms and condi- tions, visual tour, photos, reg- istration and online bidding, and property information packages. n the facility as a warehouse with the intention of setting up manufacturing in the space at some point in the future. The transaction was handled by JimPanczykowski , execu- tive VP with Binswanger. Constructed in 1992 with an expansion in 1998, the Auburn facility property featured sev- eral efficiency upgrades includ- ing a state-of-the-art HVAC system and T-5 lighting. n
bathrooms, storage rooms and paved parking lot with 19 parking spaces. The start- ing bid is ONLY $50,000! The property just appraised in May of 2015 for $325,000. According to Rich Warner of Warner Real Estate & Auc- tion, “This is an incredible opportunity to purchase this former daycare facility at your price. Whether you are cur- rently in the daycare business looking to expand into a dif- ferent market or you’ve been looking for a location to start your business, this property may work for you.” The property is located at 4900 Technology Park Blvd. in Auburn and was one of the premier large manufacturing and warehouse buildings that was still available for sale in the entire Northeastern US. Tessy Plastics LLC, a manu- facturer of plastic components for medical devices and con- sumer products purchased the property for $8 million. The company plans to initially use
lumsted TWP., NJ — WarnerReal Estate & Auction Company
is holding an online only, c o u r t o r - dered receiv- er real estate auction. 98A M a g n o - lia Ave. in P l u m s t e d Twp., is a 1
Rich Warner
Story, 2,511 +/- s/f commer- cial building situated on 1.45 +/- acres. This Former day- care facility consists of three classrooms, office, kitchen,
Binswanger’s Panczykowski brokers sale of 435,000 s/f industrial building in NY
Auburn, NY — On behalf of AAF-McQuay Real Prop- erty, Inc ., a subsidiary of Dai-
kin Applied , Binswanger a n n o u n c e d the sa l e o f their state- of-the-art in- dustrial facil- ity totaling 435,000 s/f on 30.70 acres.
Jim Panczykowski
email: subs@marejournal.com *Offer Expires January 18, 2017
4A — January 13 - 26, 2017 — M id A tlantic
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www.marejournal.com F inancial D igest Williamscoordinates$27minpermanentfinancingfortheResidenceInnSecaucusMeadowlandsHotel Treitel of Meridian Capital Group arranges $28.8 million in financing for the apartment acquisition M id A tlantic Real Estate Journal — January 13 - 26, 2017 — 5A
N
ew Providence, NJ — Meridian Cap- ital Group negotiated
$28.8 million in financing for the acqui- sition of an a p a r tme n t c o m p l e x , l o c a t e d i n on behalf of Madison Hill Properties.
Elliot Treitel
The seven-year loan, pro- vided by a regional balance sheet lender, features a fixed rate of 3.50% and one-year of interest-only payments. This transaction was negotiated by Meridian senior VP, Elliot Treitel , who is based in the company’s Iselin, NJ office. “In this rapidly changing market, Meridian negotiat- ed an exceptionally low rate for seven years, allowing the borrower to carry out their business plan to renovate the apartments that will signifi- cantly increase rents and the property value, while remain- New York, NY — Zeev Douek of Q10 New York Realty Advisors arranged a $21.5 million Non-Recourse permanent loan on an 80,000 s/f office building located in New York City in close proxim- ity to Bryant Park. The loan was placed with a NY-based bank and was a cash-out re- finance of over $4 Million at a 3.29% fixed interest rate for 5 years. Q10 NY is affiliated with Houlihan-Parnes Realtors , a multi-dimensional privately owned real estate company. In other news, Houlihan- Parnes Realtors, LLC an- nounced the placement of a Vienna, VA — Love Funding announced the clos- ing of a $19 million loan that will help preserve and re- furbish an affordable senior housing community in Vienna. Tysons Tower was built in 1976 by The Fairfax Education Association Retirement Hous- ing Corporation (FEARHC) to provide affordable housing for
New Providence Gardens
Residence Inn Secaucus Meadowlands hotel
ing financially stable,” said Treitel. Secaucus, NJ & Or- lando, FL —Meridian Capi- tal Group arranged $27 million in financing for the Residence Inn Secaucus Meadowlands hotel in Secaucus, NJ and $14.5 million in financing for the Courtyard Orlando South hotel in Orlando, FL, on behalf of Concord Hospitality. The five-year, LIBOR-based, floating-rate, non-recourse loans, provided by a balance
sheet lender, were negotiated by Meridian hospitality finance specialist, Beau Williams , who is based in the company’s New York City headquarters. The Residence Inn Secaucus Meadowlands, located at 800 Plaza Dr. in Secaucus, NJ, is a newly constructed 154-room hotel, conveniently situated off of U.S. Rte. 3 and the New Jersey Tpke. The Courtyard Orlando South, located at 4120 West Taft Vineland Rd. in Orlando. n $12.49 million first mortgage on the office building located at Four West Red Oak Ln., in White Plains. The non- recourse loan is fixed for 7 years at 3.75%. The building contains 132,995 rentable s/f and is 99% leased. The loan, closed with a local bank, is pre-payable throughout the term on a declining scale and the borrower has an option to extend the loan for an addi- tional five years. The borrower was represented by Christie Houlihan , senior director and counsel of Houlihan-Parnes Realtors and title was provid- ed by Ray Cohen of Chicago Title Insurance . n Bolen, with the help of con- sultant Gates Dunaway , worked with the Office of Re- capitalization at HUD head- quarters to secure the new PRBA contract. Other support on the transaction was provid- ed by Virginia Community Capita l. n Assistance (PRBA) contract on 100% of the units.
The Courtyard Orlando South
Q10 NY Realty Advisors’ Douek organizes $21.5m loan
Eastern Union Funding’s Kessner arranges $19m loan for data center
80,000 s/f office building located in New York City
Love Funding’s Bolen closes $19m loan for VA apartment
senior residents. Love Funding director Ann Bolen was able to secure the new loan through the VHDA, after securing a commitment from the U.S. Department of Housing and Urban De- velopment’s (HUD’s) Rental Assistance Demonstration (RAD) program for a new 20-year Project Based Rental
2401 Locust St.
rower CRCO Phil LP in the transaction with a regional community lender. The four-story, 44,015 s/f mission-critical facility located at the intersection of 24th and Locust St.s was originally built in 1928 as a manufacturing facility. n
Philadelphia, PA — Eastern Union Funding has arranged a $19 million loan for the refinancing of 2401 Locust St. in Philadelphia. Meir Kessner , a senior managing director in Eastern Union’s Central New Jersey office, represented the bor-
6A — January 13 - 26, 2017 — Financial Digest — M id A tlantic
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F inancial D igest Pollack &Neuman of Meridian Capital Group arrange financing A10 Capital funds $27 million bridge loan on retail/ multifamily property
N
rate bridge loan. It refinanced the borrower’s existing loan of $23.5 million, and provided an additional $2 million in proceeds to the borrower at closing. “This is a valuable property in a prime location, although relatively small by New York City standards. The middle market expertise of A10 Cap- ital, along with our partner- ship with Meridian, helped the borrower realize the full value of 535 Broadway,” said Chris McDaniel , executive vice president at A10 Capital, who structured and closed the loan.
Cary Pollack , manag- ing director at Meridian Capital Group , who ar- ranged the financing together with Judah Neuman , vice president at Meridian Capi- tal Group, added, “We are pleased to have worked with A10 Capital and the Jangana siblings, Jack Jangana, Jenny Haim and Joyce Reiss , of Continental Eq- uities Group on this fi- nancing. A10 understood the borrower’s needs as well as the inherent value of the property and worked with us to deliver Continental a financing structure that that will allow them to maximize the value of this high-quality asset in the heart of SoHo.” A10 Capital Expanding National Footprint and Business The deal closes during a busy fourth quarter for A10 Capital, which is experienc- ing over twice as much clos- ing than its previous two business quarters. “We are extremely pleased that our business continues to expand with new borrower relationships, such as Conti- nental Equities. We believe our business model better serves these borrowers as they look for non-recourse terms and greater certain- ty in an otherwise volatile market,” said Jerry Dunn , CEO of A10 Capital. Dunn said borrowers are attracted to A10’s menu of multiple loan products, commitment to keeping all loans on its balance sheet, and in-house servicing for the life of the loans. “We believe our full- service platform and one-stop business model is unique in the commercial real estate lending industry.” Dunn also attributes the growth in volume to the company’s investment in new senior-level talent and focus on areas of the country with significant growth potential. Over 30 new employees have joined A10 year-to-date, in- cluding new loan originators in key markets and senior executives in Texas, Califor- nia and New Jersey. “Our footprint is expanding and we expect the recent business volume will continue to grow through 2017 and beyond.” A10 is based in Boise and Dallas and have regional of- fices in key markets nation- wide. n
ew York, NY — A10 Capital , one of the nation’s leading
providers of middle-market commercial real estate loans has closed a $27 million bridge loan refinancing a re- tail/ multifamily property on the Broadway retail corridor of SoHo, one of Manhattan’s top shopping destinations. The 5-story, 14,500 s/f prop- erty includes a ground-floor leased to a brand name na- tional clothing line, and four loft-style 2,500 s/f apart- ments above. A10 Capital structured its financing as a 2-year, floating
535 Broadway
Permanent Loans Bridge Loans
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We’ve simplified middle-market commercial real estate financing with our one-stop menu of loan products. Our full-service platform includes in-house underwriting, legal and servicing for the life of the loan. Contact us today to discuss how A10 can benefit you.
8 7 7 . 5 7 7 . 5 0 5 5 • w w w . a 1 0 c a p i t a l . c o m • i n f o @ a 1 0 c a p i t a l . c o m
Real Estate Journal — Financial Digest — January 13 - 26, 2017 — 7A
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F inancial D igest Blue Course Commons – State College, Pennsylvania
Colliers Int’l.’s Capital Markets Team team led by Banas & Wood complete $12MM in financing
C
mile of campus, Blue Course Commons is also adjacent to an 87-acre park and within walking distance to many local shops and restaurants, as well as a major grocery store. The team secured the financ- ing for a 3-year, fixed rate loan with a 2-year interest-only period. “This was an existing client venturing into a new market,” said Banas. “It repre- sented a unique opportunity to acquire an extremely well po- sitioned asset with significant value-add in one of the stron- gest student housing markets in the nation,” added Wood. n
ollege, PA — The Colliers Philadel- phia Capital Mar-
ke t s t eam led by John Banas and Kris Wood a r r a n g e d $12 million in financing for the ac- quisition and completion of Blue Course C o m m o n s into a 276- bed student housing com- plex in State College. Located on a bus route within one
John Banas
Blue Course Commons
Kris Wood
Ten-X closes $10.5 million infinancing through Deutsche Bank
Pittsburgh, PA — Ten-X announced the clos- ing of Comfort Inn & Suites Pittsburgh, which sold on the Ten-X Commercial online platform for $14.1 million. Ten-X Finance arranged $10.5 million in financing through Deutsche Bank for the buyer, an individual investor. Para- mount Lodging Advisors was engaged as broker on be- half of the seller and partnered with the Ten-X Commercial platform to secure more than 140 confidentiality agreements from qualified investors and successfully transact the asset. Along with Ten-X Commer- cial helping to generate a pool of qualified applicants and source the eventual buyer, the Ten-X Finance platform was utilized to fund the acquisi- tion, consisting of a 10-year termfirst mortgage with a 65% loan-to-cost. Shannon Stotts of Ten-X Finance sourced the debt from Deutsche Bank. Lo- cated at 180 Gamma Dr., Com- fort Inn & Suites Pittsburgh is a 223-key, full-service hotel 10 miles north of Downtown Pittsburgh in the RIDC Indus- trial Park. It is the only hotel permitted within the park. n Comfort Inn & Suites Pittsburgh
8A — January 13 - 26, 2017 — Financial Digest — M id A tlantic
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F inancial D igest
Developer, a joint venture partnership between Tulfra Real Estate &The Hampshire Companies HFF arranges $12.2 million construction financing for development of New Jersey self storage facility T
otowa, NJ — Holli- day Fenoglio Fowler, L.P. (HFF) has ar- ranged $12.2 million in con- struction financing to reposition a light industrial building into a 1,246-unit, class A self storage facility in Totowa. HFF worked on behalf of the developer, a joint venture partnership between Tulfra Real Estate and The Hamp- shire Companies , to place the construction loan with M&T Bank . Tulfra purchased the larger 225,336 s/f light indus- trial building, which was 46%
leased at the time of purchase in February 2015 at a substantial discount. Tulfra has since cre- ated significant value by sub- dividing the facility into three condominium units. The future two-story self stor- age facility will comprise 1,235 climate- and 11 non-climate controlled units situated in 105,536 s/f of the light indus- trial building at 930 North Riverview Dr. The facility will be situated at a signalized intersection along North Riverview Drive within a densely-populated residential and commercial area within the Passaic County Self Stor- age submarket. The property’s location provides immediate access to Route 46, one of the primary east-west arteries and retail corridors in the region. There are more than 90,640 residents living within a three- mile radius of the property, with a 1.25 percent growth to 91,775 residents projected by 2020. The HFF debt placement team representing the borrower was led by senior managing director Jon Mikula and man- aging director Michael Klein . Largo, MD — HFF an- nounced that it has secured a $14.14 million refinancing for DoubleTree by Hilton Hotel Largo/Washington D.C., a 184- room, full-service hotel in the Washington, D.C. community of Largo. HFF worked on behalf of the borrower, Frontier Develop- ment & Hospitality Group, to secure the seven-year, 4.1-per- cent, fixed-rate, non-recourse loan through a financial in- stitution. Loan proceeds were used to refinance an existing construction loan used to ac- quire, renovate and rebrand the hotel from a Radisson into a DoubleTree. The financing also enabled the release of excess land that had been encumbered by the previous loan. Named the No. 1 hotel on Tri- pAdvisor for the Largo market, the newly-renovated Double- Tree by Hilton Hotel Largo/ Washington D.C. is the only Hilton-branded hotel in the Largo, Landover and Hyatts- ville business corridor. The six-story hotel features 2,700 square feet of meeting space; an indoor, heated swimming pool; fitness center; business center; market pantry and two food and beverage options, XC BAR & BISTRO and the SC LOUNGE. n
930 North Riverview Drive
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Real Estate Journal — Financial Digest — January 13 - 26, 2017 — 9A
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$225,000,000 Construction Financing
One ThOusand MuseuM 1000 BisCayne BOulevard MiaMi, FlOrida a 62 story, 83 unit luxury condominium tower The undersigned arranged the above financing
622 Third Avenue New York, NY 10017 (212) 986-8400 Fax: (212) 983-0512 www.cooper-horowitz.com
robert B. horowitz & deiter utner
Real Estate Financing
10A — January 13 - 26, 2017 — Financial Digest — M id A tlantic
Real Estate Journal
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F inancial D igest
anassas, Va — Grandbridge Real Estate Capital re- Closed a $5 million first mortgage refinance loan secured by Discovery Center Carroll of Grandbridge Real Estate Capital finances Virginia multi-tenant office property M
with an interest rate of 4.25%. “While it’s unusual for a commercial bank to make a long-term, fixed rate loan on a nonrecourse basis, the lender’s confidence in the long-term outlook for this Washington, DC area market was integral to making this deal work. The property is 100% leased to three tenants with lease maturities occur- ring during the loan term,” Carroll said. n Kennedy Funding Financial closes $1.705 million loan East Windsor, NJ — Kennedy Funding Fi- nancial has closed on a frastructure improvements at The Seasons at East Wind- sor, a proposed 121-unit/148- bed assisted living facility located at 359 Princeton Rd. in East Windsor. The property was pur- chased in July 2005 for $625,000. The 89,038 s/f improvements are scheduled for completion in 2017 and situated on a 3.97-acre site. The development will contain a mix of assisted and memory care units. “We are always excited to be lending for housing for seniors,” said KevinWolfer , president and CEO of Ken- nedy Funding Financial. “There is a tremendous need for senior housing. In New Jersey in particular, we seek out opportunities in that sector. We know that senior housing occupancy increased during the third quarter of 2016. That coupled with the aging population, bodes well for the success of this type of housing.” Despite the optimism in the lending market regard- ing easing of credit, it is still a major challenge to secure commercial real estate loans today. Kennedy Funding Financial has earned an envi- able reputation for providing fast short-term loans when banks and other conventional lenders cannot deliver. n Kevin Wolfer $1.705 mil- lion loan to EW Acqui- sition LLC. T h e l o a n p r o c e e d s will be used for working capital and to fund in-
cently closed a $5 million first mortgage refinance loan secured by Discovery Center, a 42,700 s/f multi-tenant office building inManassas. Built in 2011, the class A suburban of- fice building was 100 percent occupied at closing. Miami-based senior VP Philip Carroll originated the transaction. The 10-year, fixed rate nonrecourse loan was funded through one of Grandbridge’s commercial banking relationships, closing
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Equal Housing Lender. Based on internal customer data. All loans and all terms referenced herein are subject to receipt of a complete application, credit approval and other conditions. ©2016 M&T Realty Capital Corporation. Member FDIC.
P ennsylvania
S hopping C enters
Broujos of Colliers International represented the seller Feinberg Real Estate Advisors represents 3801 Paxton Equities, LLC in $6.7 million purchase S www.marejournal.com M id A tlantic Real Estate Journal — Pennsylvania — 11A watara Twp, PA — Feinberg Real Es- tate Advisors, LLC
President, CAI. “Our central Pennsylvania business has seen great growth and we’re fortunate to have found a new location within steps of our current leased facility.” “It was a challenge to find a great new location for CAI in central Pennsylvania.” said Attorney Feinberg. “We searched the market and con- sidered existing properties and development sites. When 3801 Paxton St. became avail- able we knew we found the perfect property.” “Gregg is a consummate professional with extensive knowledge of the real estate process, “ said Salvaggio. “He represented us as our real estate broker and attorney which helped streamline the process with our partnership purchase of the building and our lease negotiations.” n
represented 3801 Paxton E q u i t i e s , LLC on the purchase of 3801 Pax - t on St . , a 62 , 000 s / f office build- ing located in Swatara
Gregg Feinberg
HI-LIGHTS January 13 - 26, 2017 Twp., Dauphin County. The property will become the new central Pennsylvania location for Computer Aid, Inc. (CAI). Brala joins Pennrose
3801 Paxton St.
Gregg Feinberg of Fein- berg Real Estate Advisors represented the buyer, 3801 Paxton St. Equities, LLC and Gregg Broujos of Colliers International represented the seller, First National Bank of Pennsylvania. The prop- erty sold for $6.7 million plus
furnishings. Prior to being owned by First national Bank of Pennsylvania the property was the headquarters of Com- merce Bank and Metro Bank. The property is located in TecPort, the former AMP, Inc. headquarters. The rede- veloped 100 acre office park
in east Harrisburg includes hotels, restaurants, car deal- erships, office buildings and provides convenient access to businesses in central Penn- sylvania. “We’re excited to have a new facility in central Pennsyl- vania,” said Tom Salvaggio,
Rothman of RSR, REALTORS brokers $2.8m sale of 3240 School House Road in Middletown
MIDDLETOWN, PA — A Middletown building owned by the first licensed geologist in
the state now leased by the Pennsylvania Department of Conserva- tion andNatu- ral Resources has been sold to an invest- ment firm for $2.8 million.
Patrick Brala
16A
Bill Rothman
Bill Rothman , founder of Lemoyne-based RSR, REAL- TORS, represented both the seller, RE Wright Associates Inc., and the buyer, 3240 School House Investors LP. The two- story building at 3240 School House Rd. sits on 13 acres off Middletown Rd.. “The new owners are plan- ning to remodel and upgrade the building, which has a state lease with DCNR, which has leased the building since 2002 and has extended the agree- ment through at least 2021,’’ Rothman said. “This office building, which is in good con- dition and has a stable tenant, represents the kind of commer-
19A
www.marejournal.com February 10 CENTRAL PA March 10 Contact Steve Kelley for more information 781-871-3456 Upcoming Spotlights: WESTERN PA Healthcare /Medical Properties
3240 School House Rd.
cial investment property that is in high demand and which RSR, REALTORS specializes in.’’ In addition to DCNR office, the building houses an exten-
sive library pertaining to the geology of PA that is open to the public. Rothman said early next year the building will be renamed the “Richard B. Wright Building,’’
after the man who built the two- story building in 1988 to house his company, which is no longer active. Wright also co-founded the Pennsylvania Council of Professional Geologists. n
12A — January 13 - 26, 2017 — Financial Digest — Tax Issues & Accounting — M id A tlantic
Real Estate Journal
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N ortheastern PA $60 million in multi-family sales for Gebroe-Hammer Associates in past 12 months Philly’s population growth & citywide employment gains lay groundwork for greater multi-family demand
hiladelphia, PA —Demand for Greater Philadelphia apart- ment rentals and invest- ments are on the rise in the wake of healthy population growth citywide and regional employment gains, according to Gebroe-Hammer Associ- ates’ Senior Vice President Eli Rosen. The Philadelphia area market specialist closed more than $60 million in multi-family sales involving 780+ units in 2016 and antici- pates a quick start to the new year in terms of apartment- rental trading. P
“Apartment performance in Philadelphia proper and the surrounding submarkets has been gaining in terms of rent appreciation and tenant and investor demand, which mir- rors growth in the business/ professional services, health- care and educational sectors,” said Rosen. “Millennials and empty nesters, the majority of whom are renters by choice, as well as renters by necessity are flooding the tenant-pool pipeline, strengthening occu- pancy rates and establishing new rent-increase bench- marks that are manageable,
given the current economic climate, rendering multi-fam- ily investment more desirable than ever.” Investors are eyeing all types of multi-family prod- uct, from older downtown properties to established apartment-rental communi- ties in adjacent counties, according to Rosen. In terms of well-established, relatively historic properties, recent transactions include the $3.925 million sale of 87 units at 1605 W. Allegheny Ave., in the Temple University/ Upper North Philadelphia neighborhood; the $2.54 mil- lion trade of 39 units in the up-and-coming Germantown section of the city; and the sale of a four-story Colonial Revival apartment building comprised of 28 units in West Philadelphia. Beyond Phila- delphia County, Rosen also recently spearheaded two separate transactions involv- ing a total of 128 units sold for a combined $8.25 million in Delaware County. “Philadelphia’s gentrifying neighborhoods are gradu- ally extending their reach to surrounding city blocks and once-blighted parts of the city,” said Rosen. “The City of Brotherly Love’s transforma- tion will continue – and even accelerate – as sweeping re- development initiatives, such as the Comcast Innovation and Technology Center, FMC Tower and the Navy Yard project, significantly add even more renters to the existing tenant pipeline. Today’s ten- ants are seeking high walk and transit-score residential living options readily avail- able in new hip and trendy neighborhoods.” Since the late 1990s, Ge- broe-Hammer Associates has been a leader in representing multi-family property own- ers and investors in apart- ment-building transactions throughout the Philadelphia/ South Jersey MSA. The firm’s brokerage activities concen- trate on suburban and urban high-rise and garden-apart- ment properties throughout the New Jersey/Pennsylva- nia/New York State corridor. Gebroe-Hammer alsomarkets mixed-use and free-standing office and retail properties. Widely recognized for its consistent sales performance, the firm is an 11-time CoStar Power Broker. n
1605 W. Allegheny Ave.
Real Estate Journal — January 13 - 26, 2017 — 13A
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M id A tlantic
NORTHEASTERN PENNSYLVANIA FLEX SPACE FOR LEASE
KEYSTONE INDUSTRIAL PARK KEYSTONE INDUSTRIAL PARK
Throop Strategically located in Keystone Industrial Park at Exit #188 of I-81, near Interstate Routes 84 & 380, & U. S. Route 6. • 3,600 square feet. • 4,800 square feet (can be combined). • 8,400 square feet (can be combined). • 17’-0” Clear, 200 amp electrical service, T-1.
Throop Located at the confluence of I-81; I-84; I-380; and US Route 6 (Casey Highway). 5 miles to I-476 and 4 miles to the airport. • 5,130 square feet storage space with drive in door. • 19,500 square feet with 3 dock doors & 1 drive in door. • 400 amp, 208 volt, 3 phase electrical service.
CANDO CORPORATE CENTER
Scranton Located near Exit 182 of Interstate Route 81 & convenient to Routes 84, 380, 476 and the Wilkes-Barre/ Scranton International Airport. • 5,400 square feet. • 200 amp electrical service. • Recessed fluorescent lighting • Heavy duty water, sewer, gas and electricity. • Fiber optic cable. STAFFORD AVENUE BUSINESS PARK
Hazleton Located mid-way between Hazleton and Wilkes-Barre at Exit 262 of Interstate Route 80 & less than four miles east of interchange with Interstate Route 81. • 5,400 square feet. • 19’ clear ceiling heights. • Drive-in Door. • Wet sprinkler systems. • 200 amp electrical service.
Scranton Located in Lower Green Ridge section, about 4 blocks east of N. Main Avenue. 1.9 miles to exit 190 of Interstate Route 81. • 3,500 square feet. • 16’ clear ceiling hights. • One dock level door. • 200 amp, 3 phase electrical service.
14A — January 13 - 26, 2017 — Pennsylvania — M id A tlantic
Real Estate Journal
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P ennsylvania
Cognetti, SIOR, CCIM brokers 44,000 s/f five-story transaction Hinerfeld Comm’l. Real Estate brokers the sale of Historic Samter Building in downtown Scranton S cranton, PA — The Hinerfeld Com- mercial Real Estate
Located at the corner of Penn Ave. and Lackawanna Ave., the five story 44,000 s/f building was last occupied by the State of Pennsylvania for government offices. A land- mark building, it is part of the Downtown Scranton Historic District and was restored in the mid-1990s after sitting vacant for many years. In its heyday, the Samters Depart- ment Store, as it was then known, featured fine men’s and women’s clothing equal in quality to that found in the finest stores in New York and Philadelphia.
John Cognetti, SIOR, CCIM of Hinerfeld Commer- cial, broker in the transac- tion, said “this important corner will add new life and most likely a different use continuing the revitalization of Downtown begun 40 years ago when Scranton residents became reacquainted with the City’s rich architecture and history.” n Stockton RE Advisors ink 10 leases totaling 40,000 s/f Philadelphia, PA — Jim Paterno , founder of Stockton Real Estate Advisors, LLC announced the signing nearly 40,000 s/f of office space at 1760 Market St., including nine new leases and four renewals. 1760 Market St., a 126,000 s/f building at the corner of 18th & Market Sts., is owned by 1760 Market Part- ners, LP, a partnership of affiliates of Alterra Prop- erty Group (“Alterra”) and Stockton Real Estate Advi- sors (“SREA”). Recent renova- tions to the building include a redesign of the lobby, new exterior lighted canopy, new landscaping, and upgraded common areas and tenant exclusive spaces. New to the recently reno- vated building, Security Risk Advisors explored a number of potential location options and found that 1760 Market fulfilled all the requirements needed for its cybersecurity consulting company. Secu- rity Risk Advisors leased the entire 3rd floor of 9,152 s/f. Ed O’Brien of F irst Base represented Security Risk Advisors in the transaction. Anderson Kill, P.C.will be relocating from existing space at 1600 Market St. Sandy Richardson of Colliers represented Anderson Kill in the lease transaction. Also relocating to 1760 Market St. early in 2017 is Kutak Rock. New to the building is Cap- stone Law Group/Your Out- sourced CFO, both of which will be moving in the first quarter of 2017. DanMoller , leasing representative for the landlord, 1760 Market Part- ners, LP, negotiated the lease transaction with Capstone and Your Outsourced CFO. n
C omp a n y announc ed the sale of a vacant of- fice building at 101 Penn Ave. in down- town Scran- ton owned by NBT Bank, NA.
John Cognetti
The building was purchased by Scranton-Samter, LP. The purchaser has not yet revealed their plans for its use.
101 Penn Ave.
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