9-17-21

28A — September 17 - October 21, 2021 — M id A tlantic Real Estate Journal

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M id A tlantic R eal E state J ournal

Bussel Realty Corp. launches new retail brokerage division BRC leases 22,300 s/f at 611 Commerce Rd. in Linden, NJ L

Feinberg Real Estate Advisors reps. seller of 12,060 flex prop.

BETHLEHEM TWP., PA — Feinberg Real Estate Advisors, LLC represented Meals on Wheels of the Great- er Lehigh Valley in the sale of 4240 Fritch Dr., a 12,060 s/f industrial flex property in Bethlehem Twp. The prop- erty, previously used as the headquarters for Meals on Wheels of the Greater Lehigh Valley since 1992 was sold for $1,100,00.000 on August 6, 2021. Cindy McDonnell Fein- berg, CCIM of Feinberg Real Estate Advisors represented the seller, Meals on Wheels of the Greater Lehigh Valley. The buyer, Cinder Properties, LLC, was represented by Doug Kelley of Emerald Realty. Cinder Properties, LLC plans to operate the property as an industrial flex building.

INDEN, NJ — Bussel Realty Corp. (BRC) leased the entirety of 611 Commerce Rd. in Lin- den, a 22,300 s/f industrial property, to American Royal Enterprise. Jordan Metz , senior vice president, and Eric Koons , sales associate, of BRC rep- resented the landlord, A&K Real Estate Group, LLC , and the tenant in the transac- tion. The Metz team is com- prised of Jordan Metz, Eric Koons, Benito Abbate , sales associate, and Wellern Yu , marketing and research as- sociate. “In order to best serve their rapidly expanding New York and New Jersey client base, American Royal chose the premier positioning of 611 Commerce Road to function as their newest warehouse and headquarters,” said Koons. 611 Commerce Rd. in Lin- den, is a 22,300 s/f free stand-

4240 Fritch Dr.

Meals on Wheels of the Greater Lehigh Valley moved to a new headquarters at 1302 N. Sherman St. in East Allen- town and held a ribbon cutting on August 26, 2021. Feinberg Real Estate Advisors, LLC also represented Meal onWheels of the Lehigh Valley for the pur- chase of the Sherman Street property. MAREJ

611 Commerce Rd.

for events? Imagine bride-to-be having a bridal shower for 50 friends – and then having to tell half of them that they can’t come to the wedding! So exactly how does the foodservice industry adjust to such factors? For one, nu- merous food service operators have pivoted from full service to Fast Casual. Moe than one operator has found that by dismissing their floor staff, and having people come to the counter, they have minimized ticket times, limited front of the house labor costs, and increased profitability. Gh o s t K i t c h e n s ha v e emerged as a rapidly growing segment. So let’s see, If we can have half the capital expendi- ture, occupying 1/3 the space, and paying 25% of the rent, isn’t it easier to turn a profit? A restaurant is a Meal Man- ufacturing Facility. To be more precise it is a warehouse, storage, preparation, cooking, assembly and sales facility. A ghost kitchen don’t have the need to have three times the space to accommodate patrons to consume three times the space and to be in a premium location in order to generate walk-in customers? Is there really a need to have on prem- ises consumption now that we have trained the consumer to simply call or use their app to ing warehouse that sits on one acre. Located near I-278, Rte. 1-9 and Exit 12 of the New Jer- sey Tpke., the property is only two miles from the Goethals Bridge, and provides access to NewYork City. 611 Commerce Rd. features 16-foot to 24-foot ceiling heights, two tailboard loading docks and two drive- in doors, 200 amps of electric power and 12 parking spaces. In other Bussel news, BRC launched a new retail broker- age division that expands

get Uber Eats or Door Dash to bring them food? Covid-19 has been both an accelerant and a catalyst. Our industry has evolved years … in months. Paper costs are at an all time high, due to the ex- ponential increase in “To Go” orders. We have fewer people front of the house. We had third party deliveries increas- ing day-by-day. Full service is morphing to Fast Casual. Politicians are raising mini- mum wages which basically have operators paying more for no increase of goods or ser- vices rendered from their staff. As Norman Brinker observed, 76% of all employees in food- service are not the primary wage earners in their families. Tipped employees have always earned more from tips than from base salary. But politi- cians can earn more votes, at the cost of the restaurant operators. The year 2021 will reward those who have pivoted well. Foodservice will continue to generate jobs. We can remain hopeful and rest assured that there will be a way to survive, end even thrive, as long as people continue to have an appetite. Paul G. W. Fetscher CCIM CRX CLS is presi- dent of Great American Brokerage Inc. MAREJ BRC’s offering of commercial real estate brokerage services to focus on the retail market. Chandler Vanderbeek , vice president, and Connor Vanderbeeck , vice president, of BRC, joined the company to spearhead the new retail brokerage division practice. At BRC, Chandler and Connor will be responsible for all op- erations of the retail division including research, property marketing, and transaction services. MAREJ

AI promotes state legislation limiting the time in . . .

continued from page 7A the midst of rapidly changing market conditions. The threat of litigation for an appraisal completed years ago shouldn’t be another concern. Like my son quipped, nothing sounds better than not getting sued. And yes, he got that job. Michael J. Acquaro-Mig-

nogna, MAI, SRA, AI-GRS is a principal with Mid-Atlan- tic Valuation Group, with offices in Wayne and York, PA. He is the Treasurer of the Coalition of Pennsylva- nia Real Estate Appraisers and is a member of the Ap- praisal Institute’s National Board of Directors. MAREJ

Where does foodservice go from here?

actually can wind up as being more productive for workers. It will be a long time, if at all, that offices return to believing that the best way to work is in the office Monday to Friday; 9:00 AM – 5:00 PM. The third category is the Sit Down, Full Service res- taurants. The TGI Fridays of the world have had to main- tain “Social Spacing” in their dining rooms. However, their normal “Social Gaggling” at the bar is no longer acceptable or even legal. Their sales may be down more than 40%. The fourth and most pro- foundly impacted are the White tablecloth restaurants. In Manhattan, these restau- rants are highly dependent on Business Travelers and Tour- ism, both of which have evapo- rated in 2020. It may be a very long time before New York City again sees 64,000,000 tourists gracing our sidewalks. These purveyors can still pro- duce food and manufacture meals. While other midscale operators have boosted their takeout and delivery, white tablecloth has had a great challenge. When was the last time most people ordered a $75 takeout meal for one? Also, in the fourth and most devastated category are the ca- terers. A 50 person maximum continued from page 2A

A Foray into Non-Traditional REITs not engage in certain activities such as record handling, scan- ning or faxing records, courier services, and secure document shredding. They would need to engage an outside party for those activities. out any issues of impermis- sible income. According to an article by S&P Global Market Intelligence from December 2020, communication and data center REITs recently raised $15.46 billion and $9.75 bil- lion in capital, respectively (Mooney & Hudgins, 2020). Prison REITs continued from page 16A

Cell Tower, Data Center, and Infrastructure REITs According to Forbes, besides the major cell phone providers there are three big players in 5G technology, and they are all REITs. Between cell towers, data centers, small cell towers, and other infrastructure such as fiber networks, it takes a lot of real estate to transmit infor- mation. These REITs hold the real estate assets and lease the use of the assets to technology companies. REITs can design the system, oversee construc- tion, monitor the systems, and perform inspections and minor repairs without causing issues. Data center REITs own and manage real estate that cus- tomers use to safely store data. These REITs can provide telecommunications infra- structure and certain “remote hands” services directly with-

Just had to throw this one in here to grab your atten- tion. Yes, prison REITs are a real thing! Prison REITs own detention facilities that they lease back to government agencies. It’s worth noting here that there have been leg- islative proposals that would limit or eliminate federal use of private prisons. Wrap Up and Next Steps In every scenario the REIT owns, operates, and manages the real estate assets, and leases the property to another party who operates the busi- ness. A REIT helps with rais- ing capital while the operating company can focus on its busi- ness without the added burden of being a landlord. Ashley Kettler, CPA is a real estate services team member at Withum. MAREJ

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