S Cross River provides $50M in senior financing in addition to a $10MAR line of credit Meridian Capital Group arranges $60M in financing for Hudson Regional Hosp.

ECAUCUS, NJ — Me- ridian Capital Group arranged $60 million in financing to refinance Hudson Regional Hospital in Secau- cus, on behalf of the hospital’s chairman of the board, Yan Moshe . The loan, provided by Cross River , totals $50 million in senior financing in addition to a $10 million AR line of credit. The Cross River team was led by Doug Esposito and Raina Yoo . The transaction was originated by Meridian senior vice president, Jake Handelsman , and the financ - ing was negotiated by Merid- ian senior managing directors and heads of Meridian’s senior housing and healthcare plat- form, Ari Adlerstein and Ari Dobkin, managing director, Josh Simpson , and associate, David Gottlieb . Located at 55 Meadowlands MILLSBORO, DE — Mar- cus & Millichap announced the sale of Carillon Woods, a 204-unit apartment property located in Millsboro, accord- ing to Sean Beuche , regional manager of the firm’s Philadel - phia office. Clarke Talone, Andrew Townsend, Ridge MacLar - en, William McGlone , and Dan Bernard , investment specialists in Marcus & Milli-



Hudson Regional Hospital in Secaucus, NJ

Parkway, Hudson Regional Hospital is comprised of 204 beds across four stories. Since the property was acquired in 2018, the sponsor has invested tens of millions of dollars in renovations and technological innovations, attracting top-tier practitioners and surgeons from the New YorkMetro area. The hospital is home to the Institute for Robotic Surgery,

which was named a Center of Excellence in Robotic Surgery, a feat achieved by a very small number of hospitals in the United States. “Meridian Capital Group’s exceptional knowledge of the healthcare industry helped get this transaction across the finish line. I was remarkably pleased with the team’s profes- sionalism at every step of the

process,” said Moshe. “Yan Moshe did an exceptional job of strategically making capital and operational improvements to the property, transforming Hud- son Regional Hospital into a state- of-the-art facility offering top-tier care. In a challenging lending environment, Cross River stepped up to the plate and was a fantastic partner from start to finish,” said Meridian’s Ari Adlerstein. MAREJ dense urban locations, along with rental upside, generated strong buyer activity. The as- set closed at 99% of list price. “The sellers developed a beautiful community in this Sussex County submarket, which is experiencing tre- mendous growth right now,” said Clarke Talone. “The large units and impressive amenity package helped the property lease up quickly and generate strong rent growth with lease renewals and new leases.” “Carillon Woods is another example of the heightened de- mand we have seen for subur- banmultifamily assets,” added Andrew Townsend. “Our mar- keting process generated offers from buyers throughout the region looking to grow their portfolio in strong suburban locations such as Millsboro, which offers residents easy ac- cess to the beaches, shopping, dining, employment. Merion Realty Partners executed a smooth transaction and are excited to tap into a new sub- market”. MAREJ



Section D


Marcus & Millichap completes the sale of a 204-unit apartment community inDelaware

UPCOMING CONFERENCE September 30, 2021

7th Annual NJ Apartment Multifamily Conference October 27, 2021 Zoom Webinar 8th Annual NJ CRE Leadership Conference For speaking & sponsorship info., please contact: Lea at 781-740-2900 or lea@marejournal.com

Directory ROP (Front Section) ........................................... Section A Financial Digest....................................................... 3-10A DELMARVA . .......................................................... 11-12A Owners, Developers & Managers.......................... 13-24A Retail Development Reimagined. .......................... 25-27A People on the Move................................................... 28A Business Card/Billboard Directory............................ IBC-A New Jersey.............................................................. 1-10B Pennsylvania........................................................11-BC-B Fall Preview. ..................................................... Section D www.marej.com

Carillon Woods

chap’s Philadelphia office, had the exclusive listing to market the property on behalf of the seller, a Delaware-based de- veloper. The buyer, an affiliate of Merion Realty Partners , was secured by Clarke Talone, Andrew Townsend, Ridge Ma- cLaren, WilliamMcGlone, and Dan Bernard.

Carillon Woods is located at 34011 Harvard Ave. in Mills- boro. The 204-unit property is a class A 2019 construc- tion apartment community located in the strong submar- ket of Southern Delaware. The excellent location, which is experiencing increased de- mand as residents leave more

Inside Cover A — August 20 - September 16, 2021 — M id A tlantic Real Estate Journal


If You’re Considering A 1031 Exchange It’s Time To Set Sail!

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M id A tlantic Real Estate Journal — September 17 - October 21, 2021 — 1A



Advance Auto Parts Somerset, NJ $3,250,000

Outback Steakhouse & M&T Bank Clifton Park, NY $2,734,977 Walgreens Queens, NY $1 ,500,000

Mission BBQ & Sport Clips Marlton, NJ $3,830,810 7-Eleven Virgi ia 1 152,33

Chase Bank Roxbury, NJ $1,710,000

Bank of America Petersburg, VA $950,000

IHOP Grove City, OH $1,948,479 Commons at Hampton Ridge Barnegat NJ 2 275,000

Shoppes of Southland Orlando, FL $3,775,000 Popeyes Glen Allen, VA 2,621

7-Eleven Coppell, TX $4,400,582 Chipot Center N rwich, CT 55 ,000

Bojangles La Follette, TN $1,951,220 Bank of America ATM Wildwood NJ 550,00

Ethan Cole, NY Broker of Record, License 10491208561, NJ Broker of Record, License 2082582, CT Broker of Record, License REB.0791749 Brian Brockman, VA Broker of Record, License 225245999, Andrew Knight, VA Broker of Record, License 0225214094






2A — September 17 - October 21, 2021 — M id A tlantic Real Estate Journal


M id A tlantic Real Estate Journal

M id A tlantic R eal E state J ournal Publisher, Conference Producer . .............Linda Christman AVP, Conference Producer ...........................Lea Christman Publisher ........................................................Joe Christman Editor/Graphic Artist ......................................Karen Vachon Contributing Columnist ....Paul G. W. Fetscher CCIM CRX CLS, Great American Brokerage 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. 33, Issue 8 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Phone: 781-740-2900 www.marej.com

By Paul G. W. Fetscher, CCIM CRX CLS

Where Does Foodservice Go From Here? s you know, there h a v e b e e n ma n y changes to the restau- rant industry over the past few years. In 2015, the wage for a tipped employee was $5 per hour. That has now been raised to $12.75 and headed towards $15 per hour, a 200% increase. At the same time, meat prices are up over 20% in the last year. Insurance rates are up 35% - 40%. While the costs of doing business have raised substantially, the actual Cost of Living 2010 – 2020 has only gone up 1.67% compounded. Needless to say, the ability to pass the costs on to the consumer have not kept pace with the rise in operating costs. This past year brought gov- ernment mandated limited service if any. Many operators successfully pivoted. Some became grocery delivery services. Delivery of alcohol was one bright glim- mer of hope in a challenging landscape. Some landlords A

were understanding and bent their expectations. Others drew a line in the sand and demanded full rents; even when operators were prohib- ited from serving their dining room guests. I suspect there’s going to be a very long line at the Land- lord Tenant court. Of course, it’s better to reach an equitable agreement at the negotiating table. But some landlords will remain intransigent, and wind up losing tenants. Restaurant operators have fallen into four categories. The first of these is “Grab and Go”. Bagels, Pizza and even some Taco operations fall into this group. They may be down 10%

- 15%. Others are even UP in sales. They can tighten their belts and they are far from devastated. The second group is the Fast Casual. If they are dependent upon lunchtime office trade, they may be down 20% - 40% due to the people who aren’t going to their offices. Many of these have pivoted well with Third Party Delivery services. Others are suffering the ravages of devastated of- fices. I understand that 40% of all office space for lease in Manhattan is available on Sublease. Many offices have found that working at home cuts down on commuting, and continued on page 28A

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F inancial D igest F eaturing 1031 E xchange & A ppraisal

M id A tlantic Real Estate Journal — September 17 - October 21, 2021 — 3A


Award will spur projects focused on education and job creation in disinvested communities Cinnaire announces $60 Million New Markets Tax Credit Award from US Treasury CDFI Fund


economic development and wealth creation, and creating jobs by incentivizing private sector investors to partner in its community financing ef- forts. Cinnaire plans to lever- age the $60 million allocation to support education and job creation in disinvested com- munities across its nine-state footprint. “The NewMarkets Tax Cred - it has proven to be one of the most successful models for a public-private partnership, driving capital to America’s most disinvested neighbor- hoods,” said Mark McDaniel , Cinnaire president & CEO. “With this year’s award, we are focusing on organizations that support education, includ- ing early childhood, school-age children and adults seeking vocation training opportuni- ties. We also plan to support projects that create job opportu-

nities for individuals without a college degree or other barriers to obtaining employment. We look forward to partnering with and providing NMTC allocation to projects that will help all people have access to the tools and opportunities they need to succeed.” The NMTC is a uniquely bi- partisan program, supported by members of congress through- out Cinnaire’s footprint, that helps drive resources and in- vestment to areas that need it most. “We’re grateful to the mem - bers of congress on both sides of the aisle for their steadfast support of the New Markets program and helping CDFIs to access these important re- sources,” McDaniel said. The US Treasury’s CDFI Fund announcement brings the total amount awarded through the NMTC Program to $66 bil-

difficult by a lack of invest- ment. It’s critical that Congress sustain these investments over time by making the New Markets Tax Credit Program permanent.” Cinnaire has deployed pre- vious NMTC allocations to help launch impactful projects nationwide. • Paul’s Place-Groundwork Kitchen, Baltimore, Maryland • Mott Community College Culinary Arts Institute, Flint, MI • Fintech Building Supports Financial Technology in New- ark, DE • Southwood County YMCA in Rural Wisconsin Rapids, WI • New Market West Early Childhood and Health Care Services, Philadelphia, PA •Marygrove Early Childhood Center, Detroit, MI • Salvation Army Freedom Center, Chicago, IL MAREJ

ASHINGTON DC, — The US Depart- ment of Treasury’s

lion. Historically, NMTC Pro- gram awards have generated $8 of private investment for every $1 invested by the fed- eral government. Through the end of fiscal year 2020, NMTC Program award recipients deployed almost $56 billion in investments for communities and businesses earning low in- comes, with impacts such as the creation or retention of nearly 871,000 jobs and the construc- tion or rehabilitation of nearly 231.5 million s/f of commercial real estate. “These investments will cre - ate jobs and spur economic growth in urban and rural com- munities across the country,” Secretary of the US Treasury Janet L. Yellen said. “Many of the communities that will receive these funds have con- fronted economic challenges over many decades. Challenges which have been made more

Community Development Financial Institutions Fund (CDFI Fund) has awarded Cinnaire a $60 million New Markets Tax Credit (NMTC) Allocation. Since 2009, Cin- naire is an eight-time NMTC recipient with awards total- ing more than $419 million. Cinnaire, a non profit CDFI serving the Midatlantic region for more than 28 years, also manages an additional $251 million in NMTC allocation for partner organizations. Over the history of the program, Cinnaire has used NMTC investments to finance 42 high-impact projects in dis- invested communities with a total development cost of $1.46 billion. This award advances Cinnaire’s goal of creating healthy communities, spurring

SCOPE Capital Group secures construction debt for 120-unit residential development in Philadelphia, PA

PHILADELPHIA, PA — SCOPE Capital Group, LLC announced that it has ar-

ranged $19.6 mi l l i o n i n construction financing for Vine Street Apartments, a 120 - un i t multifamily development in the Loft

Matthew Rosenberg

District of Philadelphia. The loan was funded by a regional bank to an affiliate of the Meri - tis Group. SCOPE Capital Group’s managing director Matthew Rosenberg negotiated the financing with the collabora - tion fromSCOPE’s investment sales group. The approximate loan to cost amounted to 60% includ- ing $15 million in hard con- struction costs. The loan was provided by a regional balance sheet lender and features a permanent conversion option to non-recourse and a no pre- payment penalty option to exit

Vine Street Apartments

the loan at any time. “Our capital sources have continued to show strong support for new construction multifamily housing projects surpassing 50 units in all pockets of the city of Philadel- phia,” adds Rosenberg. “Through extensive lender relationships, SCOPE Capi- tal Group has successfully secured over $70M in con-

struction loans for multiple projects scheduled to come online in the next 24 months throughout Philadelphia and the surrounding region.” Located at 1201-15 Vine Street, the project includes a two-story vertical overbuild above the Jarvis Building to be connected to a separate eight- story ground-up residential build. The Jarvis Building

currently houses the night- club, NOTO Philadelphia. The proposed plans, created by Cadre Design, will preserve the building’s existing brick exterior and the new addition will feature a modern design with gray metal paneling and public art components along 12th St. The entire project will be 83,635 s/f which will encom-

pass 120 new residential units and a 36-space automated parking garage. New residen- tial units will have a shared lobby space and will feature a mix of studio, one and two- bedroom units. The property borders the Rail Park, an elevated public park that will eventually provide three miles of landscaped greenery to neighborhood residents. MAREJ

4A — September 17 - October 21, 2021 — Financial Digest — M id A tlantic Real Estate Journal


F inancial D igest

By Steve Haskell, Kay Properties and Investments, LLC Why real estate income funds have distinct benefits for investors estate through participation in a fund.


he recent fluctuations in the United States stock market have

fund is $50,000,000 with a min- imum investment of $50,000. Example propert ies the funds seeks to acquire include those leased to recessionary- resistant, essential businesses that remained open and pay- ing rent during the pandemic, such as: Amazon, FedEx, Da- vita Kidney Care, Frito Lay, Walgreens, UPS, CVS, Coca- Cola, In-N-Out Burger, and 7 Eleven. *Preferred return is not guaranteed and is subject to available cash flow. Past per - formance is not a guarantee of future results. For further information about cash flow distributions from operations and capital events, please refer to the Private Placement Memo- randum. Three Distinct Benefits of Investing in a Real Estate Income Funds Diversification The ability to diversify in real estate funds has attracted conservative investors that want to avoid the concentra- tion risk that often accompa- nies purchasing one piece of real estate. Typically, real es- tate investing requires a large down payment in order to obtain a loan with reasonable terms, tying up a significant portion of investors’ wealth in a single asset. Funds allow an investor to often place a small- er amount of cash into a highly diversified portfolio, therefore mitigating risk through diver- sification. Not only do funds allow investors to diversify in different pieces of real estate all over the country but inves- tors can also diversify their investment by asset type and combined acquisition sources total $14,150,000. The financ - ing was arranged through Nick Saenz of Penn Community Bank. “Eastern Union attained at - tractive bank financing for this acquisition for two primary reasons,” said Tropp. “First, the sponsor brought a strong local market presence and a solid business plan to the table. And second, our company has de- veloped excellent relationships with scores of the country’s top lenders, and we leveraged these relationships to secure the most favorable terms possible.”

tenants. Funds may hold mul- tifamily apartments, net lease commercial assets, medical, industrial, etc. Asset types can have varying market cycles. Diversifying one’s investment across asset types and geogra- phy can potentially insulate their investment from market volatility. *Diversification does not guarantee profits or protect against losses. Depreciation An additional benefit to real estate income funds is the potential for depreciation. Many real estate income funds allow investors to depreciate their basis in the fund. The non-cash expense lowers the taxable income incurred from fund’s distributions. This may hold significant benefits for investors in high tax states such as California and New York. Investors should speak to their CPA to determine their own potential tax efficiencies from investing in real estate income funds. Able to Optimize Both Inflationary and DeflationaryMarket Cycles Finally, the ability for funds to continue to purchase real estate over time allows inves- tors to optimize both inflation - ary and deflationary market cycles. An inflationary market will theoretically drive up the value of the fund. In a defla - tionary cycle, the fund may continue acquiring assets, cost dollar averaging as the market retreats. Funds have the flex - ibility to pick up these assets at a discount. Cap rates often expand in a deflationary mar - ket, which will allow investors The portfolio is situated with- in an area considered to be Philadelphia’s most actively developed big-box retail/indus- trial corridor -- and a prime location for redevelopment. It is located in immediate proxim- ity to I-95, major ports, arenas and downtown Philadelphia. The three properties are at the center of a major logistics hub that includes a new Ama- zon logistics headquarters, a UPS distribution center, and a 700,000 s/f retail power center anchored by IKEA, Lowe’s and Best Buy. Further reflecting develop -

to potentially realize higher distributions as they wait for the market to turn around. Additional Potential Ben- efits of Real Estate Income Funds • Passive income and/or dis - tribution potential • May provide monthly cash flow and/or distributions • Capital appreciation/equity • Typically low minimum investment amounts ($25k - $50k) • Professional asset manage - ment • Elimination of day-to-day management headaches While it is almost impos- sible to predict what the economic future will look like, many prudent investors are posturing their portfolios to mitigate risk while optimiz- ing their upside potential no matter which direction the market turns. As more inves- tors learn about the potential benefits of Real Estate Income Funds, their popularity will continue to grow throughout the coming years. growth potential • Tax advantages Securities offered through Growth Capital Services, member FINRA, SIPC. Office of Supervisory Jurisdiction located at 2093 Philadelphia Pike Suite 4196 Claymont, DE 19703. Potential returns and appreciation are never guaranteed and loss of princi- pal is possible. Please speak with your CPA and attorney for tax and legal advice. Steve Haskell is vice president of Kay Prop- erties and Investments, LLC. MAREJ ment trends within the area, a seven-acre manufacturing facility owned by the chemi- cal company Inolex -- situ- ated directly opposite the three properties -- is in the process of being sold to a large developer. The partnership expects that the sale and redevelopment of the site will generate added demand and attract new users to the district. “We’ve been seeing consis - tently high demand for flex industrial/commercial space in a supply-constrained market,” saidMichael Bauer, principal of BASH Capital. MAREJ

A Real Estate Income Fund is a specific subset of funds that is focused exclusively on investing in potentially income-generating real estate. Real estate income funds pro- vide another entry point for those looking to invest in large commercial or multifamily real estate portfolios. Real Estate Income Funds are particularly appealing to retail investors who want to own institutional quality real estate that would normally be out of reach for them. A Real Estate Income Fund pools capital from many investors, and then the fund’s sponsor oversees all the fund’s activities, including perform- ing due diligence, underwrit- ing, and propertymanagement. Investing in a Real Estate Income Fund is a great way to potentially generate passive income, gain access to institu- tional level assets, and avoid the responsibilities of direct ownership. An Example of a Typical Real Estate Investment Fund Exclusively Offered by Kay Properties Net Lease Income Fund 18 LLC: Focused on acquiring, owning, and actively managing a portfolio of single-tenant, Long-term, NNN lease, income producing tenants operating in the industrial, medical, and retail spaces throughout select United States markets. This Real Estate Income Fund targets an 8% preferred return* for investors with monthly distributions gener- ated through corporate backed leases. The offering size of this pany, arranged the mortgage on behalf of a partnership consisting of Michael Bauer through his investment arm, New York City-based BASH Capital , and West Chester, PA-based Joseph A. Cunane . The partnership owns and has successfully leased a neighbor- ing property at 22 Wolf St. The overall $9.75-million loan applies $5,194,300 toward acquisition, in conjunction with a credit facility of $4,555,700 for renovations and leasing costs. In addition to the mort- gage, the partnership raised $4,400,000 in equity. The two

many inves- tors looking for more con- servative and less volatile investments. On t o p o f that, tradi - tional invest- ment instru-

Steve Haskell

ments like stocks and bonds are similarly not looking very attractive because of their lackluster yield performances. Therefore, more and more in- vestors are attracted to Real Estate Income Funds. While Kay Properties & Investments is best known for its expert-level knowledge of Delaware Statutory Trust 1031 exchange investment strategies and opportunities, the company also has a great reputation for working with nationally recognized real estate sponsors to source and structure All-Cash/Debt-Free Real Estate Income Funds for accredited investors. What is a Real Estate Income Fund? In general terms, any “in - come fund” is simply a pool of capital that has been as- sembled on behalf of a group of investors. There are literally tens-of-thousands of different types of investment funds, including equity funds, bond funds, money market funds, mutual funds, and hedge funds. While direct ownership of real estate has been a popu- lar investment for centuries, recently many investors have also started investing in real PHILADELPHIA, PA — Eastern Union has secured $9.75 million in financing to - ward the acquisition of a three- property, 218,961 s/f, flex in - dustrial/office portfolio along Philadelphia’s Delaware River waterfront, one of the most highly developed industrial and logistical centers on the East Coast. The portfolio -- acquired off- market at a price below replace- ment cost -- includes 20 Jackson Street, 38 Jackson St. and 21 Wolf St. Marc Tropp , a senior man- aging director with the com-

Eastern Union secures $9.75 million in financing for acquisition of flex industrial/office portfolio On Philadelphia Waterfront

M id A tlantic Real Estate Journal — Financial Digest — September 17 - October 21, 2021 — 5A


F inancial D igest



Local Market Leader in Placement of Construction Debt

$19.6M Construction Loan 120-Unit Multifamily Development Philadelphia, PA

$20.5M Construction Loan 88-Unit Mixed-Use Philadelphia, PA

$14M Construction Loan 60-Unit Multifamily Philadelphia, PA


SCOPE Capital Group sources middle-market to institutional-level loan facilities, including, but not limited to, permanent acquisition, interim, construction, and recapitalization financing for multifamily-driven assets.

Matthew Rosenberg Managing Director matthew@scopecapitalgroup.com

Edward Brown Director edward@scopecapitalgroup.com Bradley Blankenship Vice President bradley@scopecapitalgroup.com

Taylor Walsh Associate taylor@scopecapitalgroup.com Joseph Wall Associate joseph@scopecapitalgroup.com

Zachary Bailine Associate zachary@scopecapitalgroup.com Alex Drobot Transaction Manager alex@scopecapitalgroup.com

Phil Sharrow Principal phil@scopecre.com

scopecapitalgroup.com // info@scopecapitalgroup.com // 215.302.4400 // @scopecapitalgroup

6A — September 17 - October 21, 2021 — Financial Digest — M id A tlantic Real Estate Journal


1031 E xchange


By Alex Madden, Kay Properties & Investments, LLC How real estate investors can use DST properties to replace debt in a 1031 Exchange


avvy real estate inves- tors understand the pri- mary reason for selling

1031 exchange can greatly help solve the debt replacement equation, imagine an investor exchanging a piece of real estate with a net value (sale price mi- nus closing costs) of $2 million. The investor has a mortgage on the property of $750,000. That $750,000 will be paid off at closing and must be replaced as part of the acquisition. In order to complete the exchange, the acquired property must be worth $2 million or more. The investor has several op- tions and may replace that $750,000 mortgage debt or be hit with capital gains taxes: • Take out another mortgage of $750,000 (or more if the new property costs more than the net sales price.) • Combine a smaller mort - gage of, say, $500,000 plus add- ing additional cash of at least $250,000 (to equal the original debt figure.) • Inject $750,000 which in cash which would basically re- place the original debt with cash. • Invest in a Delaware Statu - tory Trust 1031 exchange that already has built-in debt. How to Replace Debt using Delaware Statutory Trust 1031 Exchanges DST 1031 exchanges already have debt prepackaged into the investment, so they make the debt replacement component of a 1031 exchange relatively sim- ple to accomplish. In addition,

investors also have greater flexibility because they can put their investment dollars into multiple DSTs with a variety of debt and equity combinations which helps investors achieve their required debt replace- ment targets. Compare this scenario to an investor who conducts a 1031 exchange with a single property, like an apartment building. Not only would they have to find a replacement investment property within the desired price range, they most likely would also have to bring in their own money to the deal while working against the mandated 180-day time- frame allowed to complete the exchange. Delaware Statutory Trust 1031 exchanges allow investors a much greater choice of replacement property options with much less effort. One of the things many in- vestors like about Kay Proper- ties & Investments is the firm’s ability to provide investors seeking debt replacement a myriad of choices. Because of the firm’s ability to work with so many different sponsor companies, it provides clients the ability to participate in custom, exclusively available, off-market DST properties as well as those properties that are available to the wider marketplace. 8% Preferred Return* Debt- Free continued on page 10A

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and buying rea l es tat e via 1031 ex- change is to defer capital gains tax that would other- wise be due on the sale. By “exchang -

3-month free trial

Alex Madden

ing” one or more pieces of prop - erty for one or more like-kind pieces of equal or great value helps the investor defer capital gains taxes. However, one of the critical re- quirements that must take place to make any 1031 exchange work in the eyes of the Internal Revenue Service (IRS) and the individual real estate investor is to ensure that some form of debt replacement occurs in the event the relinquished property has been leveraged. Debt replace- ment practice basically states that when an investor acquires a replacement piece of property in a 1031 exchange, they must incur a level of debt that is equal to or greater than the amount owed on the former piece of real estate at the time of sale. A Simple Example of How a Delaware Statutory Trust 1031 Exchange Can Help in Debt Replacement To illustrate the concept of how a Delaware Statutory Trust

Mid Atlantic Real Estate Journal


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*This is a Regulation D Rule 506 (c) offering. All real estate and DST investments carry the risk of a complete loss of invested capital and that returns/ cash flow/appreciation/ distributions are not guaranteed and could be lower than anticipated. Preferred Returns are not guaranteed. Securities offered through Growth Capital Services, member FINRA, SIPC, Office of Supervisory Jurisdiction located at 582 Market Street, Suite 300, San Francisco, CA 94104. Potential returns and appreciation are never guaranteed and loss of principal is possible. Please speak with your CPA and attorney for tax and legal advice.

M id A tlantic Real Estate Journal — Financial Digest — Appraisal — September 17 - October 21, 2021 — 7A A ppraisal


By Michael J. Acquaro-Mignogna, MAI, SRA, AI-GRS, Mid-Atlantic Valuation Group, Inc. AI promotes state legislation limiting the time in which civil & administrative actions against appraisers can be filed


or a recent job search, my son augmented his resume with a video

appraisers, because the clock for filing a suit does not start ticking until the party filing the claim discovers, or should have discovered, the supposed defect in the appraisal. The Uniform Standards of Professional Appraisal Prac- tice (USPAP) requires an ap- praiser to “retain the workfile for a period of at least five years after preparation or at least two years after final disposition of any judicial pro- ceeding in which the appraiser provided testimony related to the assignment, whichever period expires last.” But these appraisals were often per-

formed years ago, so apprais- ers who routinely follow this rule and appropriately purge their files no longer have the ability to adequately defend themselves. A statute of limitations on appraisal claims will provide appraisers a better under- standing of their true exposure to lawsuits. As a result, ap- praisers can take appropriate and more effective risk man- agement steps in the areas of insurance coverage and record retention. Some states – like Minne- sota, Tennessee, Louisiana, Mississippi and Oregon – have

enacted legislation in the last few years that limit the time frame in which appraisal law- suits can be brought. Texas is the latest to enact this type of legislation, which just took effect September 1. Other states – like North Carolina, Kentucky and South Dakota – already had similar laws on their books. Closer to home, the Coalition of Pennsylvania Real Estate Appraisers has been work- ing with a lobbyist and the Appraisal Institute’s govern- ment affairs professionals to enact similar legislation. In late June, HB1255 passed the

Pennsylvania House of Repre- sentatives unanimously, and it moved to the State Senate for consideration. The goal is to get this signed by Governor Wolf as soon as possible. All appraisers who live, work or are licensed or certified in Pennsylvania should support this legislation and contribute to this effort. Keep the momen- tum going by supporting simi- lar legislation in neighboring states and nationwide. We have enough to worry about after more than a year of pandemic-related restric- tions and estimating values in continued on page 28A

he c reat ed showcasing his curricu- lum-des ign and videog- raphy skills. In referenc- ing the back- groundmusic he included in the video, he empha -

Michael J. Acquaro- Mignogna

sized that the music had a public copyright license, com- menting wryly, “because noth - ing sounds better than not getting sued.” I couldn’t agree more. All real estate appraisers would agree, and so does the Appraisal Institute. The AI’s government affairs specialists have been working to enact state legislation limiting the time in which civil and ad- ministrative actions against appraisers can be filed follow - ing the date the appraisal was performed. Here’s the basic issue. For years following the 2005-08 real estate “bubble,” apprais - ers nationwide have been faced with lawsuits from over- ly litigious law firms alleg- ing that defective appraisals were performed for mortgage transactions that have since gone into default. While some of these law firms represent lenders, others bought the rights to sue appraisers from financial institutions that are desperate to recover their losses. Usually, though, the real reason for the default is a significant value change over time or poor underwriting at the time the loan was made. But the appraiser is often the “last one standing” with any connection to these mortgage loans, especially if the original mortgage lender failed during the real estate crash, with no one else left to sue. Lawsuits are also filed alleging that an appraiser’s inflated value resulted in a purchaser bor- rowing or paying too much for a property. Many of these allegedly “bad” appraisals result in complaints to state appraiser regulatory agencies and dis- ciplinary action against ap- praisers. With current law as it is in most places, the “Discovery Rule” results in a nearly infinite statute of limitations for claims against

Principals Michael J. Acquaro-Mignogna, MAI, AI-GRS Gary E. Heiland II, MAI, AI-GRS

Providing Real Property Valuation and Consulting Services in Pennsylvania, New Jersey, Delaware and Maryland

Recent Assignments

99-lot age-restricted subdivision Chester County, PA

148-unit apartment complex Cumberland County, PA

500,000 sf warehouse Franklin County, PA

16,500 sf industrial building Centre County, PA

220,000 sf retail building Allegheny County, PA

98,000 sf office building Lancaster County, PA

20,000 sf industrial building Baltimore County, MD

Proposed 265-unit apartment complex Atlantic County, NJ

Office Locations Wayne, PA (Suburban Philadelphia) ● York, PA (Central PA) www.mvginc.com

8A — September 17 - October 21, 2021 — M id A tlantic Real Estate Journal 20B — September 17 - October 21, 2021 — Souther New Jersey — M id A t Antic Real Estate Journal

www.marej.com j. .

Southern New Jersey Chapter www.ai-snj.org Telephone 856-415-0281 • Fax 856-415-1952 SNJDC Public Policy Speaker Series


PRESIDENT Michael Descano, MAI mdresolutions@gmail.com VICE PRESIDENT Joseph V. Heenan, MAI, SRA jheenan@gsvcsllc.com

NJ DOT Commissioner Diane Gutierrez-Scaccetti Rowan University President Ali Houshmand On August 24th, SNJAI Executive Director Lisa Weiss represented the chapter at the Southern New Jersey Development Council Public Policy Speaker Series, held at Rowan University Rohrer College of Business. The featured speaker was NJ DOT Commissioner Diane Gutierrez-Scaccetti. This speaker series provides an opportunity to hear the views and plans from New Jersey’s Congressional and Legislative Delegation as well as key state policy makers. SNJDC offers you an excellent opportunity to meet with business associates and elected officials and to showcase your business/organization. Appraisal Institute Encourages Graduates to Consider the Valuation Profession The Appraisal Institute, the nation’s largest professional association of real estate appraisers, is seeking new faces and encourages recent graduates to consider a career in the valuation profession. “One of the Appraisal Institute’s diversity, equity and inclusion priorities is to attract new individuals into the valuation profession,” said Appraisal Institute President Rodman Schley, MAI, SRA. “Our organization is working diligently to expand opportunities for aspiring appraisers and help them on their path to success.” The Appraisal Institute has several existing programs concentrating on attracting new entrants to the profession, including the Appraiser Diversity Initiative with Fannie Mae and the National Urban League, along with the Minorities and Women Course Scholarship Program from the Appraisal Institute Education and Relief Foundation. The Appraisal Institute Education and Relief Foundation has committed $150,000 over three years to the Appraiser Diversity Initiative. The scholarships cover the three entry level courses required of appraisers and winners are matched with advisers who help them through the education and credentialing process. “There are numerous benefits to a career in real estate valuation, including flexible schedules, interesting assignments and a solid earning potential,” Schley said. Appraisers play an essential role in the economy and the real estate industry by developing reliable and credible opinions of value for their clients. Appraisers offer risk mitigation to help ensure safety and soundness of the lending system. In addition to residential and commercial lending work, appraisers provide valuable services such as client counseling, litigation support, right-of-way and eminent domain work, taxation-related valuation and many other areas of specialization. The Appraisal Institute Board of Directors adopted a strategic framework to enhance the Appraisal Institute’s affiliation model at its November 2020 meeting. This new framework is inclusive of all practicing appraisers affiliating with the Appraisal Institute, while maintaining AI’s ethics and continuing education requirements. With a more inclusive affiliation model, the Appraisal Institute aims to maintain distinction for Appraisal Institute Designated Members, while being inclusive of those who are new to the organization. “Whether you are fresh out of college and are interested in the valuation profession, or you are looking at a career change, the Appraisal Institute is here with tools and resources to help you stand out in the profession,” Schley stated. To learn more about an appraisal career, visit www.appraisalinstittue.org . Upcoming Education – please visit www.ai-snj.org for registration information! Complex Litigation Appraisal Case Studies Tuesday, September 28, 2021 7 CE hrs

TREASURER Mary Fox, MAI foxmai@aol.com

SECRETARY Sherrie Lisa Galderisi, SRA, AI-RRS Sherrielisa43@aol.com


Joshua Garretson, MAI, AI-GRS, AI-RRS

Lee Ann Kampf, MAI

Robert Klein, MAI, AI-GRS

Maria Nucci, SRA, AI-RRS

Instructor: Brian Flynn, MAI, AI-GRS 25th Annual September Symposium (Yes, in October --- falls right into line with all the craziness we are handling!) Thursday, October 7 2-5pm 3 CE hours Instructor: Susanne Curran, MAI, AI-GRS Artificial Intelligence, AVMs, and Blockchain: Implications for Valuation Thursday, October 14, 2021 (Zoom) 4 CE hrs Instructor: Mark Linne, MAI, SRA (COURSE DEVELOPER) Getting It Right from the Start: A Workout Plan for Your Scope of Work Wednesday, October 27, 2021 (Zoom) 7 CE hrs Instructor: Robert L Moorman, MAI, SRA, AI-GRS

Meghan Payne, MAI

Susan Roettger, MAI


7Hr. Nat’l USPAP Update Friday, Oct. 29, 2021 (Zoom)

7 CE hrs

Instructor: Brian Flynn, MAI, AI-GRS SAVE THE DATE! 2022 Installation of Officers/Directors Holiday Dinner & Chapter Meeting Thursday, December 2nd at the Adelphia Restaurant Special Guest: Rodman Schley, MAI, SRA (2021 National President of the Appraisal Institute) Visit www.ai-snj.org for registration information


M id A tlantic Real Estate Journal — September 17 - October 21, 2021 — 9A M id A tlAntic Real Estate Journa — Southern New ersey — September 17 - October 21, 2021 — 1 B


Southern New Jersey Chapter Of the Appraisal Institute www.ai-snj.org

As the leading organization for professional real estate appraisers, the Appraisal Institute represents over 17,000 members in nearly 50 countries worldwide. The Southern New Jersey Chapter has nearly 150 members. They perform a variety of services ranging from single family valuation to feasibility studies for regional malls & hotel-casinos. Whether it’s assistance on a home purchase or providing expert testimony for litigation, our members are uniquely qualified to meet these needs. For more information regarding the Southern NJ Chapter of the Appraisal Institute visit: www.ai-snj.org, or call Executive Director Lisa Weiss at 856-415-0281. 2021 Designated Members of the Southern NJ Chapter of the Appraisal Institute

Peter A. Maher, SRA, AI-RRS Kathy J. Marmur, SRA Charles A. McCullough, MAI, AI-GRS Jerome J. McHale, MAI Edward Molinari, SRA, AI- RRS Leonard Molinari, SRA Donald Moliver, MAI Christopher Murphy, MAI Maria Nucci, SRA, AI-RRS Robert Parmley, SRA Meghan E. Payne, MAI Richard A. Plock, MAI Michael Pratico, Jr., AI-GRS Jacob Ramage, MAI Thomas C. Reynolds, SRPA Jeffrey D. Richwall, SRA Susan T. Roettger, MAI Lee L. Romm, MAI, SRA Taylor Santoro, MAI

(609) 465-9978 (856) 582-5892 (856) 906-7890 (267) 675-4907 (609) 261-4220 (856) 753-3030 (609) 438-9063 (609) 223-4911 (215) 280-4563 (609) 714-7402 (215) 587-6004 (215) 928-7526 (215) 493-5000 (215) 806-3268 (856) 764-6500 (212) 916-4614 (856) 375-2148 (973) 970-9333 (215) 231-9900 (856) 234-9250 (856) 429-8800 (215) 925-1212 (609) 884-1995 (973) 283-2266 (856) 451-0933 (215) 561-8976 (856) 691-7055 (609) 457-7297 (856) 453-8889 (609) 391-8862 (609) 770-7146 (732) 286-9250 (609) 736-0695 (609) 597-2211 (215) 963-4047 (856) 287-3690 (732) 886-6695 (609) 221-7274 (215) 842-0649

(732) 928-1550 (732) 406-6978 (609) 832-2102 (609) 914-4679 (856) 853-7622 (732) 682-9949 (732) 571-3660 (267) 675-4905 (609) 214-8418 (609) 292-2573 (267) 253-5926 (732) 389-3600 (201) 794-4386 (215) 888-3560 (302) 575-0955 (856) 396-0000 (609) 914-4679 (856) 983-5500 (267)-256-1803 (856) 292-3021 (609) 432-0616 (609) 568-0432 (856) 468-0068 (856) 662-0027 (856) 546-4900 (856) 787-6290 (856) 218-2800 (609) 918-1000 (856) 234-2893 (732) 576-2037 (609) 943-3492 (609) 391-0404 (856) 216-2388 (856) 761-3012 (609) 238-6200 (856) 795-8700 (732) 605-0791 (609) 586-3500 (469) 228-4123

Cape May Ct. House Turnersville Haddonfield

Jackson Point Pleasant Maple Shade Lumberton Woodbury New Egypt Rumson Burlington West Deptford Trenton Audubon Shrewsbury Fair Lawn, NJ Philadelphia Wilmington, DE Medford Cherry Hill Marlton Philadelphia Linwood Mt. Laurel Absecon Wenonah Cherry Hill Haddon Heights Mt. Laurel Sewell

J. Paul Bainbridge, MAI Steven Bartelt, MAI, SRA, AI-GRS Craig A. Bickel, MAI Lawrence E. Bowne, MAI Pamela J. Brodowski, MAI Steven Brownell, MAI Richard J. Carabelli, Jr, MAI J. S. Carduner, MAI, AI-GRS Cynthia Carpenter, MAI, AI-GRS Lana Chiappetta, MAI, AI-GRS John P. Corbett, MAI Albert Crosby, MAI Susanne Curran, MAI, AI-GRS Eugene P. Davey, SRA Thomas C. Davis, SRA Thomas A. DeMartin, MAI, SRA Michael A. Descano, MAI Russell V. DiLello, MAI, AI-GRS John E. Doyle, MAI Scott A. Eiffes, MAI, AI-GRS E. Guy Elzey, III, SRA Philip Fortuna, MAI, SRA Mary F. Fox, MAI Sherrie Lisa Galderisi, SRA, AI-RRS Joshua Garretson, MAI, AI-GRSAI-RRS Timothy P. Golden, Jr., MAI Ronald A. Hagel, MAI, SRA Mark J. Hanson, MAI, SRA, AI-GRS Donna Harris, SRA Joseph V. Heenan, MAI, SRA

Burlington Eastampton West Berlin Hamilton Robbinsville Summit Medford Philadelphia Philadelphia Yardley Philadelphia Delran New York, NY Cherry Hill Morris Plains Philadelphia Moorestown Haddonfield Philadelphia Cape May Ocean View Bridgeton Philadelphia

Michael S. Sapio, MAI William J. Sapio, MAI

Dennis A. Scardilli, Esq, MAI Jack Sheehan, MAI, AI-GRS Timothy Sheehan, MAI, SRA Richard Sheldon, MAI, SRA Richard Shorter, SRA Thomas J. Sliwowski, SRA Peter E. Sockler, MAI Pasqual A Sorge, MAI James Stuart, MAI, SRA, AI-GRS Robert J. Tighue, MAI Deborah P. Tordella, MAI, SRA Merilynn P. Verderame, SRA Errett Vielehr, MAI Benjamin R. Vukicevich, SRA John H. Walton, Jr, MAI, SRA Richard J. Ward, SRA John Weber, Jr., MAI, SRA Thomas Westerfield, SRA

Vineland Audubon Shiloh Ocean City Cape May Ct. House

Hightstown Mt. Laurel Colts Neck Trenton Ocean City Haddonfield Haddonfield Stratford Cherry Hill

Michael D. Jones, MAI Tony F. Kamand, Jr, MAI

Toms River Ocean City Manahawkin Philadelphia Newark, DE Lakewood Philadelphia Philadelphia

Lee Ann Kamph, MAI Robert W. Kirwan, SRA Robert M. Klein, MAI, AI-GRS Bruce Leff, SRA Samuel Levi, MAI Bonnie L. Longo, MAI, SRA Eileen Lynn, MAI, AI-GRS

Monroe Township Hamilton Square Fort Wayne, IN

10A — September 17 - October 21, 2021 — Financial Digest — M id A tlantic Real Estate Journal


F inancial D igest

JLLCapitalMarkets arranges loan to refinancenew luxurymulti-housing community in suburbanNYC BrightSpire provides $43 Million refinance on luxury Jersey City apartment building


struction and unit design, BELA offers a diverse mix of spacious one- and two-bedroom apartments. The eight-

erty State Park’s Hudson-Ber- gen Light Rail station, BELA also is less than one mile from

ERSEY CITY, NJ — JLL Capi tal Markets an- nounced has arranged a $43 million bridge loan for BELA, a newly constructed, 104-unit, luxury multi-housing community in the growing Ber- gen-Lafayette neighborhood of Jersey City. JLL represented the borrow- er, Golden Glades Capital Management , in arranging a three-year, floating-rate loan with a financing subsidiary of BrightSpire Capital, Inc. that allowed the borrower to lower their cost of capital and finish their lease-up. Featuring best-in-class con-

Interstate 78, wh i ch pr o - vides acces- sibility to the Hudson Wa- terfront, low- er Manhat - tan and the greater New York MSA.

s tory prop- er ty ’ s com- munity ame- nities include rooftop views of the Man- hat tan and Jersey Ci ty

Matthew Pizzolato Thomas Didio, Jr.

skylines. BELA also offers onsite parking and bike stor- age via its first-floor garage and approximately 2,600 s/f of ground-floor retail. Situated one block from Lib-

The JLL Capital Markets debt team that represented the borrower was led by direc- tors Matthew Pizzolato and Thomas Didio, Jr. The team previously secured acquisition financing for the borrower in 2020, while the JLL Capital Markets Investment Sales Ad- visory team brokered the 2020 sale of the property. “JLL’s New Jersey Capital Markets team has been at the forefront of many of the largest Hudson County and Northern New Jersey’s multi-housing trades and financings over the past 18 months,” Dido added. “This financing is a testament to the cohesive approach our market-leading practice takes servicing our clients, both on investment advisory and debt and equity financing. We are grateful to the Golden Glades team in entrusting us to ex- ecute this bridge financing that will allow them to stabilize full occupancy and season the asset’s performance at a cheap cost of capital with flexible structure.” MAREJ How real estate investors can use DST properties to replace debt in . . . This also means that Kay Properties & Investments mar- ketplace features investment opportunities with leverage that span a wide range of debt levels that can accommodate just about every investor’s particular needs. Also, for investors that don’t have any debt to replace since they owned their previous property free and clear of with no loans, Kay Properties DSTmarketplace also has debt free DST properties which have no mortgages. So, it is easy for investors to find options that fit their investment objec - tives and that can match their equity and debt targets. Alex Madden is vice president and DST 1031 expert at Kay Properties and Investments. MAREJ continued from page 6A


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