16A — January 13 - 26, 2017 — M id A tlantic
Real Estate Journal
www.marejournal.com
M id A tlantic R eal E state J ournal
SVNAuctionServices broadens reach into Washington metro
ewark, NJ — The Blau & Berg Com- pany brokered the Conte, Crimmins &Murano represent seller and buyer The Blau&Berg Co. inks sale of 54,126 s/f retail property N
Washington, DC — SVN Auction Services’ founding partner SVN/Mot- leys has expanded its reach in the metro Washington region with the addition of senior advisor Brad Ross . Ross’ specialties include commercial real estate and asset distribu- tion, and providing asset-dis- solution services. His market focus includes Washington, D.C., Virginia and Maryland. “Brad brings a wealth of expertise to SVN,” said Mark Motley, CAI, AARE , manag- ing director of SVN/Motleys. “He knows the market ex- tremely well and embraces the opportunities it offers.” Ross hit the ground run- ning in his new position by managing the recent auction of Flooring Solutions warehouse in Sterling, VA. The property and business assets sold for
more than $5.2 million. Before joining SVN, Ross’ experience included analyzing and implementing marketing strategies for start-up ven- tures within various market sectors, such as online mar- keting for the investment/ financial sector, and identify- ing emerging markets and trade opportunities between the U.S. and African nations. He also managed business development and new tech- nologies in the alternative energy field for a Fortune 500 company, and oversaw implementation of federal gov- ernment programs with the Department of Agriculture. Ross, who attended Hamp- den-Sydney (Virginia) Col- lege, is a lifelong resident of the Washington area. He and his wife live in Alexandria, Virginia. n organizations. He was most recently co-founder and CEO of Score Enterprises, LLC (Athvita), an online retail company. Prior to Athvita, Brala was senior VP and CFO for Keystone Property Group. Brala is a licensed certified public accountant and started his career in public accounting with Price Waterhouse. “Pennrose has an industry- wide reputation for achieving exceptional results,” said Brala. “I am excited to join such a group of professionals, and I look forward to contrib- uting to the organization’s strategic goals.” The addition of Brala to the Pennrose team is seen as a key element in aligning all of Pennrose’s finance and accounting activities under an enterprise model that will enable the organization to execute its strategies for continued growth. Cristi Resciniti will remain CFO for management operations. All development financial op- erations will be transitioned to Brala. Rich Gower has been named senior vice president of asset management and treasurer, and will oversee the company’s expanded as- set management activities, investor related functions, and all principal related services. Pennrose is restruc- turing to a shared services model to streamline busi- ness functions to prepare for the organization’s expected growth. n
sale of a 54,126 s/f retail prop- erty located at 237-249 South Orange Ave. in Newark, to JJ Operating Inc. Alex Conte, CCIM, SIOR, Jason Crim- mins, CCIM, SIOR and Peter Murano, SIOR of The Blau & Berg Company were the procuring brokers represent- ing the seller and buyer in the transaction. “The proceeds of the sale will be recycled back into the community to help residents of inner cities improve the quality of their lives to reflect individual dignity and personal achievement,” said Richard Rohrman, CEO of New Com- munity Corporation, one of the nation’s largest and most comprehensive community development organizations and a major contributor to urban revitalization in Newark, New Jersey. Formerly occupied by Path- mark and with Dunkin Donuts leasing 2,100 s/f of space in a corner location on the property, planned to meet the needs and wants of the demographics of the multigenerational popula- tion and a diverse economy. There is a tendency to look at commercial developers and make an assumption that “they always do it that way,” rather than realizing that times are changing. Municipal fees and costs for commercial development con- tinue to rise, increasing land and construction costs. One of the major oversights in setting fees and costs is the failure to consider the benefits of smart, strategic development. There also is a shortage of suitable infill sites, making smart, strategic growth more expensive and complicated. Local and state governments need to provide incentives for the reuse of historic structures, brownfield development, down- town revitalization and other infill projects. Unfortunately, many state and local laws make smart commercial growth pro- hibitively expensive. Likewise, well-intended but overly rigid building codes deter infill de- velopment. Christopher Leinberger of Brookings Institute said there are only 12 kinds of real estate
237-249 South Orange Ave.
JJ Operating plans to redevelop the building to enhance the ex- terior, add visibility on Bergen St. and provide customizable space opportunities to retail- ers, medical offices and other complementary businesses. Significant revitalization oc- curring in the area has already sparked the influx of national retailers within the vicinity, including well-known brands projects that can readily receive bank financing. And each of the 12 kinds is a conventional, single-use project (e.g., strip shopping center, mini-storage units, and apartment build- ings). Leinberger also asserted that mixed-use projects are outside the financial mainstream. In- novative commercial develop- ers often have trouble getting financing because of a lack of comparables, the secondary financing market and bank procedures that favor so-called low-risk investments. The perception is that bank- ers fund projects with a formula which results in only standard developments, with predictable outcomes, receiving funding. The willingness of govern- ments to enter into public private partnerships has been missing for a long time. Recently, significant progress has been achieved, and there needs to be more of these public private partnerships for smart, strategic commercial develop- ment. This will result in the revital- ization of existing communities and will facilitate new commer- cial development on vacant or underutilized land. Barriers must be overcome
such as Marshall’s, PNC Bank and Rite Aid. “The building has tremen- dous potential”, said Jack Je- mal, partner, JJ Operating, Inc. “With the heavy amount of foot and car traffic on the Bergen & South Orange Ave. corner, we believe the building is primed for redevelopment.” The part- nership has begun marketing the vacant space. n to attain a positive and more efficient commercial develop- ment process. The tearing down of barriers can only occur with regional cooperation, including by adjoining municipalities. That cooperation taking place on a community-by-community and project-by-project basis will help elected officials, builders and bankers recognize there is a market for projects that make more efficient use of land, reduce infrastructure costs, increase transportation choices and are more respectful of com- munity character and natural resources. Another major factor in re- ducing the barriers is educa- tion. People and organizations involved in commercial devel- opment must work together to educate state and local officials on better practices and be com- mitted to be leaders in setting the example of what smart, strategic commercial develop- ment can be. Glenn Ebersole is themar- ket development manager at High Concrete Group, LLC, a leading producer of architectural and struc- tural wall panels and larg- est producer of precast concrete parking structure in the US. n
Brala joins Pennrose as senior VP and chief financial officer
PHILADELPHIA, PA — Patrick Brala , has joined Pennrose as senior vice
p r e s i d e n t a n d c h i e f financial of- ficer for the P h i l a d e l - phia-based multifamily real estate c o m p a n y . Bra l a wi l l
Governments & developers need to . . . continued from page 2A
Patrick Brala
lead the comprehensive fi- nancial operations for the enterprise, including devel- opment and management activities. He will oversee the financial, accounting and accounts payable functions located in the Philadelphia and Kingston Pennrose of- fices, oversee and monitor short and long-term financial planning, analyze cash flow, and manage all tax related functions. Brala is a proven leader and financier with nearly 30 years of experience in the areas of accounting, tax services, private equity real estate, and strategic planning. “Patrick will play a criti- cal role in creating the Pen- nrose Enterprise,” said Mark Dambly , president of Pen- nrose Properties. “His leader- ship, financial and entrepre- neurial expertise is going to help guide our organization into an intense and sustained period of growth and expan- sion.” Brala has expertise as the senior financial officer for several significant real estate investment and development
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