R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news
ISSUE HIGHLIGHTS Volume 25 Issue 3 FEBRUARY 8 - 21, 2013 22nd Annual Merit Construction Awards of Excellence
Fund has capacity to invest over $500 million in DC, Maryland, Virginia The Meridian Group closes real estate fund with over $160 million to invest
B
ETHESDA, MD —De- spite a troubled econo- my and uncertainty in
on real estate in the Washing- ton metropolitan area. “We are delighted to have this discretionary fund that enables us to capitalize on the attractive investment opportunities that we are seeing in our market as a re- sult of the slow economy, soft market conditions and low interest rates,” said David Cheek , president of Merid- ian. “We believe that it is a good time in the cycle to se- lectively invest inWashington real estate, and we expect to achieve our targeted returns as the market improves over the next several years and beyond.” With the new fund, Merid- ian already has completed three office acquisitions, to- taling 572,000 s/f, and a loan purchase, all in Northern Vir- ginia. The office acquisitions include One Ballston Plaza (148,000 s/f) in Arlington,
Cameron Run (144,000 s/f) in Alexandria, and Tysons Technology Center (280,000 s/f) in Tysons Corner. All of these buildings were approximately 75 percent leased at acquisition, and Meridian plans to add value through leasing the vacant space and repositioning and stabilizing the assets. In addition, Meridian is also currently working on several other transactions. “We are very proud to have completed one of the few first discretionary real estate funds raised in the U.S. since the financial crisis in 2008,” said Gary Block , managing director of Meridian. “Our proven track record, invest- ment strategy and capabili- ties, along with the long-term strength of the Washington real estate market, attracted our investors, and we appre- ciate their confidence in us.”
“Our investment strategy is focused on well-located, institutional quality assets near Metro rail, major high- ways and walkable ameni- ties in submarkets such as Arlington, Alexandria, Tysons Corner, Reston, Bethesda, Chevy Chase, Rockville and Washington, DC,” said Bruce Lane , executive vice presi- dent and managing director of Meridian. “These are all places where we can create value through repositioning assets, leasing vacant space, extending leases, renovations, redevelopment, new develop- ment, and rezoning and sell- ing land. “We have achieved excel- lent investment returns by doing all of this over a 20- year period and through five economic cycles now,” Lane said. “And we look forward to continuing this success with our new fund.” n
the real es- tate market, the Merid- ian Group has complet- ed the final closing on its first real es- tate private equity fund,
10-11A
David Cheek
Prism set to launch Edison Village
attracting more than $160 million of discretionary capi- tal from institutional inves- tors. With leverage, Meridian has the capacity to invest a total of over $500 million. Meridian also has an ad- ditional $160 million of avail- able co-investment capital committed from its limited partners on a deal-by-deal basis. The fund, Meridian Realty Partners I, is now one of the largest equity funds focused
3C
PA Engineers Week
7-10C
Property Mgmt. Featuring IREM Tri-State Conference & Expo
Tremont Realty Capital structures JV equity on $46 million Maryland apartment acquisition
Owings Mill, MD — The Boston office of Tremont Realty Capital arranged the joint venture equity for the $46 million purchase of the Falcon Crest Apart- ments. David Ross , managing director, arranged the JV
Section D
Directory
Upcoming Spotlight Commercial Office Properties Financial. .................................... 5-10A DelMarVa.................................. 13-15A New Jersey. ............................ Section B Central NJ Spotlight....................... 5-7B Pennsylvania.......................... Section C Western PA................................... 5-6C Property Management Spotlight.... Section D
Falcon Crest Apartments
equity, which was funded through a private invest- ment firm. The property was over 90% occupied at the time of closing. Amenities include a resi-
dent clubroom, fitness cen- ter, business center, and an outdoor swim club. Accord- ing to Ross, “The sponsor and investor were delighted to close on the Falcon Crest
transaction, further expand- ing the relationship Tremont arranged. This is the lat- est of multiple multifamily transactions they have done together.” n
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— Mid Atlantic Rea Featuring Commercial O February
Estate Journal — ur Annual fice Spotlight 22, 2013
This issue will publish as a special pullout section… featuring:
• A special LISTING of all the Office Space transactions recorded in MAREJ throughout 2012 • Bi-lined Articles submitted by Expert office brokers • Office Market Reports compiled by major companies • Society of Office and Industrial Realtors Organization • Special feature on NAI and it’s member firms • National Association of Industrial and Office Properties
DEADLINE: February 14 Click Here for DetailS
Inside Cover A — February 8 - 21, 2013 — Mid Atlantic Real Estate Journal
www.marejournal.com
10th Annual Special Edition March 29th spotlighting . . . The
BEST of 2012
Deadline is March 1, 2013 You are invited to participate in MAREJ’S “BEST of 2012” MID ATLANTIC REAL ESTATE JOURNAL will be hosting a “Best of the Best,” a “Who’s Who” of owners, brokers, developers, architects and financial institutions within the commercial real estate community. MAREJ will be compiling information and selecting the: Largest office, Industrial & Retail Transactions of the Year Best Shopping Center Development of the Year • Best Developer of the Year Best Financial Institution • Largest Financial Transaction of the Year Top Brokers List • Top Owners List Most Innovative Architect • Best Renovation Project
Help us select the Best of 2012! Call or email to receive your nomination form Ph: 800-584-1062 • Email: lchristman@marejournal.com
MAREJ’s Best of 2012 is a juried competition based on submissions and nominations from MAREJ’s commercial real estate community. Winners will be selected based on company size (# of employees) and size of the deal/transaction. Top brokers will be selected based on largest deal for 2012. Submissions from mid-Atlantic states outside of NJ, PA, DE, MD & VA will be judged in separate categories. All are welcome to participate.
Mid Atlantic Real Estate Journal — February 8 - 21, 2013 — A
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A — February 8 - 21, 2013 — Mid Atlantic Real Estate Journal
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Mid Atlantic Real Estate Journal
Mid Atlantic R eal E state J ournal Publisher ............................................................................Linda Christman Section Publisher ................................................................Elaine Fanning Section Publisher ..................................................................Andrew Hicks Section Publisher ....................................................................Steve Kelley Senior Editor/Graphic Artist ................................................ Karen Vachon Graphic Artist/Social Media Specialist ............................ Rachel Rugman Office Manager ....................................................................Joanne Gavaza Editorial Consultant .............................................................. Ben Summers Guest Columnist ................................................................... Michael Mullin Mid Atlantic R eal E state J ournal ~ Published Semi-Monthly P.O. Box 26 Accord, MA 02018 (Mail) 312 Market Street, Rockland, MA 02370 (Overnight) Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, P.O. Box 26, Accord, MA 02018 USPS #22-358 | Vol. 25 Issue 3 Subscription rates: $99 - one year, $198 - 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
Multi-FaMily apartMent lender & HealtHcare Finance
direct cMBS/conduit, nnn, FHa-Hud, portFolio & agency - nationwide.
By Michael Mullin Multifamily Resident Portals Moving to the Next Level
lowest Fixed rates, non-recourse.
Purchase/Refinance/New Construction.
M
ultifamily owners, operators and ten- ants have embraced
MAREJ A dvertisers D irectory Red Star Commerical Real Estate Funding 125 Woodgate Lane • Pauli, PA 19301 P: 610-578-0715 F: 610-578-0716 gpolao@gmail.com Gary Polao
resident portals as a conve- nient conduit for paying rent and submitting work orders. Now industry forward-thinkers are looking at additional ways to make these websites more relevant so they will draw visi- tors on a daily basis. Clearly, multifamily portals designed to accomplish busi- ness between landlords and tenants make sense from an operational standpoint. Money comes in online and is routed electronically, and these pay- ments automatically update the ledger and statements via the accounting system. Or, if someone submits a work order, it will route to the appropriate person. Residents can check on the progress, and once their job is completed they receive an automated notification. Nobody has to touch anything from the operational side, which can cut down processing expenses significantly.
The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
Yet these “Version 1.0” por- tals provide little motivation for residents to log on frequent- ly. So what else can they be engaged to do? Simply put, In- ternet portals provide a launch point for people when they go online. General portals like AOL, MSN and Yahoo! include information from multiple sources, such as news, stocks, weather and other items of interest. Niche portals – like those being used inmultifamily – are specialized to emphasize a particular interest or sub- ject area. To that end, multi- family owners are starting to customize their portals with information pertinent to their
individual communities. In taking a resident portal to the next level, as with any technology-related venture, it is important to work with the right partner. The first step in selecting a vendor should involve identifying the portal’s requirements and desired fea- tures, followed by interviews with and demos from two or three established players. Several portal companies spe- cializing in multifamily have strong reputations, with El- lipse, Property Solutions and Active Buildings among them. Be sure that the service and support culture, as well as the continued on page 3A
Auctioneers Directory..................4A B.R. Kreider & Son, Inc............ 12C Barry Isett & Associates, Inc....11C Bennett Williams Realty Inc. FC-C BL Companies............................. 7C Brasler Properties................... IC-C Business Card Directory...........17A Bussel Realty Corp.................. IC-B Cenova Snow & Ice Solutions.... 4C Cooper Horowitz..........................7A Corbett Exterminating............. 18D CP Rankin Inc.........................BC-D Delran Builders.........................10A Drexel........................................ 22D Earth Engineering Inc............. 10C Ehrlich, Petriello, Gudin & Plaza 12D Falcon Group............................ 14D Fitzpatrick Lentz & Bubba.......11C Geotechnical Engineering Consultants................................. 8C Gerber/Somma Associates.......... 1B Greater Newark DE..................14A Greater Reading Economic Partnership................................. 2C H.T. Lyons................................. 10C Harkin Builders.........................10A Hawley Realty, Inc...................... 4C Heller Industrial Parks.............. 6B Hillcrest Paving & Excavating...24D Hinerfeld Comm’l. RE.... IBC-A ,1C Kaplin | Stewart.........................2A Keast & Hood Co........................ 9C Landcore Engineering Consultants, P.C....................... 10C Landmark Commercial Realty... 3C Liberty Elevator. ...................... 24D LMS Commercial Real Estate.. 12C M Miller & Son..................12A,11D McMahon Transportation Engineers & Planners.............. 10C Mericle Commercial RE......... BC-C
Montecalvo Material Recovery Facility........................................ 2D NAI Keystone Commercial & Industrial, LLC........................... 3C NAI Summit................................ 2C Nave Newell................................ 9C Northern Waterproofing & Restoration................................ 16D NorthMarq.................................. 6C NRC Realty Capital Advisors.....1A Onorati Construction Inc........... 6D P Cooper Roofing Inc................ 15D Penn’s Northeast........................ 2C Penn-Northwest Development Corporation................................. 5C Pilera........................................... 5D Poskanzer Skott Architects........ 9B PRD Management, Inc............... 3D RCP Management..................... 13D Real Property Capital..................6A RealTime Technology Group...... 1D Red Star Mortgage Co.................2A Regal Bank........................ BC-A,3B Robert E. Blue. ........................... 8C Rose Metal Systems. .................. 2C SEBCO Laundry Systems...2B,21D Sheldon Gross Realty, Inc.....2B,4D Stafford Smith Realty................ 4B Subway...................................IBC-A The Green Group.........................3A The Kislak Company, Inc........... 3B Thesing Companies.................. 19D Thompson Management LLC.... 4B Transportation Resource Group. . 7C TriM............................................11A Warfel Construction..................11A Whitesell................................. BC-B Wohlsen Construction...............11A
Contact: Jeffrey A. Silberman 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-260-6000 • www.kaplaw.com Other Offices: • Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120 Kaplin Stewart At t o rne y s a t Law Getting you through the maze of real estate law. Strategy. Skill. Success.
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Mid Atlantic Real Estate Journal — February 8 - 21, 2013 — A
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M id A tlantic R eal E state J ournal G Jonas, Waisbrod, Weilheimer & Holland coordinated sale Kislak completes $13.5m sale of Glen Brook Apartments lenolden, PA — The Kislak Co. announced the $13.5 million sale
of Glen BrookApts., a 174-unit apartment complex with three commercial spaces in Gle- nolden. VPs Andrew Jonas, Barry Waisbrod and Matt Weilheimer and president Robert Holland coordinated the sale of the property on be- half of a NY Stock Exchange publicly-traded REIT to a private investor. “Our team did a fantastic job marketing the property, gen- erating tremendous interest among well-qualified investors and selling it,” said Jonas. “The seller engaged Kislak on an exclusive basis and the sale marked our 11th suc- cessful transaction together. The seller also realized the highest price per unit for any multifamily property sold in Delaware County.” Financing was provided by Spencer Savings Bank. At the time of closing, the property was 95% occupied. n technology, provide a good fit. Finally, a multifamily firm’s enterprise property manage- ment and accounting software should be able to integrate its systemwith the portal. Service representatives from both the enterprise system provider and the portal development company can work together to set up and ensure that the data exchange needed for those basic functions – payments and work orders – is running smoothly. Enterprise technol- ogy providers also should be able to feed resident data into the portal, so that as people move in and out their ability to log into the portal is granted or denied accordingly. Looking ahead, resident portals will continue to evolve from business tools to exciting platforms for community build- ing. Multifamily property own- ers and operators who advocate this transformation not only will reap tangible operational benefits but will be looked at by residents as a catalyst for advancing communication and, ultimately, their quality of life. Michael Mullin is presi- dent of Integrated Business Systems in Totowa, NJ. n Multifamily resident portal s moving to the . . .
Glen Brook Apartments
10th Annual Special Edition March 29th spotlighting . . .
BEST of
The
2012 You are invited to participate in marej ’s “BEST of 2012” MA R EAL E STATE J OURNAL will be hosting a “Best of the Best,” a “Who’s Who” of owners, brokers, developers, architects and nancial institutions within the commercial real estate community. Marej will be compiling information and selecting the: Largest o ce, Industrial & Retail Transactions of the Year Best Shopping Center Development of the Year 4 Best Developer of the Year Best Financial Institution 4 Largest Financial Transaction of the Year Top Brokers List 4 Top Owners List Most Innovative Architect 4 Best Renovation Project Deadline is March 1, 2013
Help us select the Best of 2012!
Call or email to receive your nomination form
800-584-1062 FAX : 781-871-5299 Email : lchristman@marejournal.com MAREJ’s Best of 2012 is a juried competition based on submissions and nominations from MAREJ’s commercial real estate community. Winners will be selected based on company size (# of employees) and size of the deal/transaction. Top brokers will be selected based on largest deal for 2012. Submissions from mid-Atlantic states outside of NJ, PA,DE,MD &VA will be judged in separate categories. All are welcome to participate.
A — February 8 - 21, 2013 — Mid Atlantic Real Estate Journal www.marejournal.com M id A tlantic R eal E state J ournal A uctions Mid Atlantic R eal E state J ournal N e w J e r s e y • P e n n s y lva n i a • D e l awa r e • M a ry l a n d • W a s h i n g t o n D . C . • V i r g i n i a • Auctioneers Directory NJ-PA-DE-NY-MD-VA DE, PA, NJ PA-MD-VA-W.VA
Richard G. Warner, President NJ & PA Licensed Real Estate Broker Warner Real Estate & Auction Co., Inc. 109 East Grant Street, Suite B Woodstown, NJ 08098 Ph: (856) 769-4111 ext 710 Website: www.WarnerRealtors.com
Residential, Commercial & Industrial Auction Specialists!
CALL NOW FOR A FREE CONSULTATION 866.4 BIDDERS HURLEY AUCTIONS www.HURLEYAUCTIONS.com
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P lace your B usiness C ard in our A uction D irectory T oday ! AUCTIONEERS P romote Y our C ompany and its S ervices in our T wice monthly D irectory P lease F ill O ut C oupon B elow A nd F ax I t T o 781-871-5299 or E mail lchristman @ marejournal . com
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www.marejournal.com Real estate fund manager meets borrower’s need for speed and surety Hudson Realty Capital Llc funds $11.6 million Pittsburgh, Pennsylvania office/retail bridge loan F inancial D igest Mid Atlantic Real Estate Journal — February 8 - 21, 2013 — A
P
ITTSBURGH, PA — Hudson Realty Capital LLC has
prehensive gut rehabilitation. The sponsor has finalized four signed leases, with one of the tenants already in oc- cupancy. “This borrower required dependable financing for base building construction and ten- ant fit out, which Hudson was able to provide with surety of execution in a relatively short timeframe,” said Spencer Garfield , managing director. “Given this submarket’s lowof- fice vacancy rate, timely lease- up of the remaining space is expected in accordance with the business plan.” n pike and Interstate 295 about 20 miles northeast of Center City Philadelphia. The center is fully leased to tenants in- cluding Dick’s Sporting Goods, OfficeMax, TGI Friday’s,AT&T Wireless, Burger King, Sleepy’s and IHOP. Burlington Towne Center is shadow anchored by Home Depot, Target and Kohl’s, which are not included in the loan collateral. The HFF team representing The Hampshire Companies was led by senior managing director Jon Mikula and di- rector Michael Klein . n the banking industry will be a great addition to our bank,” said Regal Bank chairman David Orbach. “Her extensive background, along with her fa- miliarity with the Livingston marketplace, are key qualities when it comes to serving our customers’ needs.” Portee completed her un- dergraduate degree in ac- counting at Upsala College in East Orange. She volunteers and fundraises for various charitable organizations in her community, including the American Heart Association, Kaleidoscope of Hope Founda- tion, National Breast Cancer Awareness, and the Harvest of Hope Foster Care Program. n
funded an $11.6 million Pitts- burgh office/retail bridge loan secured by a 70,478 s/f prop- erty. The sponsor plans to utilize the capital to retire the existing debt, complete renovation of the asset, satisfy outstanding obligations and establish reserves. Located within a few miles of the University of Pitts- burgh and Carnegie Mellon University, just north of the Shadyside neighborhood, the property is undergoing a com- Totowa, NJ - DevMorris and Andrew Stewart have arranged permanent financing in the amount of $13.2 million for a Toys “R” Us, Conway, Office Depot, and Bob’s Stores anchored shopping center in Totowa. The 7-year, fixed-rate loan was placed with Ameri- can National Insurance Company , whom Cronheim represents as correspondent and servicing agent. This is the second significant NJ shopping center financing recently done by American National, the other being a construction/per- manent loan done on Marlboro Commons, a Whole Foods an- chored center in Marlboro. The subject property is a 261,451 s/f community shop- ping center located in Passaic County approximately 15.0± miles west of Manhattan. The center features a mix of local and national retailers includingApplebee’s, Citibank, Linwood Pizza, and Harmon Discount, among others. It is located along U.S. Rte. 46, one of the most heavily traveled re- tail corridors in northern New Jersey which houses more than 6.4 million s/f of space. According to Morris, “This center is among the most vis- ible and accessible properties in its trade area and has occu- pied a dominant position since it was built in the early 1970’s, continuing to attract a desir-
Pittsburgh rendering
CronheimMortgagearranges $13.2m for Totowa Square Shopping Ctr.
HFF secures $6.7m refinance for NJ retail power center
FLORHAM PARK, NJ — HFF announced that it has secured $6.7 million in acquisi- tion financing for Burlington Towne Center, a 91,881 s/f retail power center in Burling- ton Twp. Working exclusively on be- half of The Hampshire Com- panies, HFF placed the sev- en-year, fixed-rate loan with Webster Bank. Burlington Towne Center is located at 2703 Burlington Mount Holly Road, adjacent to the BurlingtonCenterMall and close to the New Jersey Turn- LIVINGSTON, NJ — Re- gal Bank recently appointed Princeton resident Annabella Portee as its vice president of loan administration. In this role, Portee is responsible for overseeing all aspects of loan administration and portfolio servicing. Prior to joining Regal Bank, Portee was vice president and manager of the Commercial Loan Servicing and Funding Department of a community bank based in Short Hills. Earlier in her career, Portee spent 15 years in various po- sitions with Livingston-based NorCrown Bank. “Annabella’s 20-year career in various positions within
able mix of local and national retailers.” In a separate transaction, David Turley and Anna Westhoff of Cronheim Mort- gage teamed up to place an $8.2 million permanent loan on a 53,878 s/f retail build- ing located on the Saw Mill Parkway in Dobbs Ferry, NY. The property is a four-story retail center anchored by New York Sports Club. The 12 year non-recourse loan was placed with one of Cronheim’s bank relationships. The rate was locked for 7 years at 3.85%. “This is a unique asset for its suburban location,” noted Tur- ley. “Most lenders steer clear of multi-story retail formats outside of core urban areas. However, this property has a compelling story and deserved serious consideration. It is lo- cated at a signalized intersec- tion on the Saw Mill Parkway where 60,000+ cars pass by a day. It is one of the best ame- nitized sports club facilities in Westchester County - one of only three with both sports courts and a pool. NYSC added a beautiful interior fit-out and success/fully operates this as one of the top 15 locations in the chain.” Westhoff added, “In spite of its unique features, it’s still an unconventional suburban retail asset anchored by an unrated fitness center. We
overcame some initial market reluctance to secure several attractive offers. After one of our bank relationships showed serious interest, we arranged property inspections and meetings between the bor- rower and committeemembers to build support for the credit approval. The bank eventually approved it as a non-recourse loan with carve outs only to the borrowing entity. The cli- ent was thrilled.” David Turley and Janet Proscia secured $23.8 mil- lion in acquisition financing for a two-building 135,000 s/f medical office building portfo- lio located just off the Merritt Parkway in Hamden, CT. The funding provided 70% loan-to- cost financing for the Fairfield County based client’s $34 mil- lion purchase. The loan was sized to an 8.5% debt yield and the rate locked at 4.37% for a 10 year loan term on a 30 year amortization schedule. Proscia noted, “The Prop- erty is a scarce commodity in a supply-constrained market, offering a strong regional location easily accessed from most of New Haven’s north- ern suburbs. These state-of- the-art medical facilities are occupied by a wide range of generalist and specialty medi- cal practices - the network ef- fect that creates referrals and visibility.” n
Regal Bank appoints Annabella Portee VP of loan administration
A — February 8 - 21, 2013 — Mid Atlantic Real Estate Journal
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F inancial D igest
By Brenner Green, Real Property Capital, Inc. The current commercial mortgage market
A
s I sit down to write my first article as the author of a column I
credit has eased significantly from the low point of 2009-2010. 2013 should be another banner year for mortgages. Here are four things to look out for over the remainder of 2013. 1. Conduits will continue their comeback - Asignificant event happened over the last couple of weeks in that conduit pricing eclipsed Fannie and Freddie for the first time since 2007. The conduits are back, and they are not going away. If you are borrowing $5 million or greater and a long term fixed non-recourse loan is important to you, you probably should be doing business with the
conduits if you are not already doing so. 2. Rate Creep - While I sup- pose I am sheepishly saying rates are going up, more specifi- cally I am saying that Treasury bonds are going to trade in a band that is higher and some- what tighter than where they have bounced around during the past eighteen months or so. I bet most of you would be surprised to know that the 10 year Treasury bond has traded in an relatively wide 80 basis point range betweenMarch and December of last year and a 101 basis point range over the last 12 months (according to Yahoo
Finance). This year, look for a 50 to 75 basis point range that doesn’t crack 1.75% again. 3. Bankswill do silly things – This is something that you can count on most every year, but because there is so much competition out there chasing the same asset class (multifam- ily), especially in our region, expect it to be acute this year. Now is the time to make a great deal on your refinance if you have been waiting or have been unable to get it done previously. The stories of the “cash-out” non-recourse apartment loan in a marginal neighborhood, or the owner-occupied deal at
2.5% for 10 years, will continue to be the subject of conversation in 2013. Overall, expect the general inconsistency and lack of stabilization in the banking industry to continue this year, largely to the benefit of bor- rowers. 4. Not all asset classes are doing great – While the world has been a great place for those in multi-family and student housing, suburban office and hospitality continue to suffer, albeit from different problems. Suburban offices (in most places other than the D.C. area) are suffering from a lack of tenants as a result of a fundamentally weak economy, while the hospitality sector is suffering from a lack of capital interested in the sector even though occupancy and ADR have shown strong improve- ment since the bottom of the recession. Stronger properties that outperform the market will be the deals that get done, but it will once again be a case of the “haves and have nots” in 2013. R. Brenner Green is a 15 year veteran in commer- cial real estate finance and president of Real Property Capital, Inc., a full service commercial mortgage bank- ing firm based in the Phila- delphia suburbs. n NEW YORK, NY — Strate- gicAlliance Mortgage, LLC, (SAM) announced that its members closed $9.4 billion in loan transactions in 2012, with a total of 1,067 transactions originating with 221 different lenders. Additionally, SAM member servicing volumes surged to $40 billion as of year’s end — an increase of 10% over the previous year’s volume. The figures represent an in- crease from 2011, when SAM members closed $7.6 billion in loans, with a total of 884 transactions originating with 190 different lenders. “We have experienced an astounding resurgence over the past two years, witnessed significant improvements in the lending climate, and are encouraged to see healthy lenders across every spectrum of the capital stack,” said SAM president Brock Walter, who is a founding principal with Pin- nacle Financial Group . n SAMcaps 2012with $9.4billioninclosed transactions
have followed f o r y e a r s , the state of things sure looks bright in the world of commer- cial real es- tate finance. Fifteen years
R. Brenner Green
in the industry and it seems appropriate to state that I am observing the beginning of my second boom cycle. Record low interest rates have created a huge demand for financing, and
Recent Closings
Office/Retail Refinance • Princeton, NJ $1,600,000
Student Housing • Bloomsburg, PA $30,000,000 Real Property Capital is a Philadelphia based full service commercial mortgage banking firm with a regional focus and national capabilities. Our business model emphasizes client satisfaction through a high-touch, analytical approach that distinguishes us from the competition. Learn more about our distinct approach and proven track record of success at www.realpropertycapital.com.
Subsidized Senior Housing • Branford, CT $2,240,000
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Mid Atlantic Real Estate Journal — February 8 - 21, 2013 — A
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$20,500,000
OAK PARK COMMONS 901-913 OAK TREE ROAD SOUTH PLAINFIELD, NJ
136,939 square foot shopping center
The undersigned arranged the above financing
51 East 42nd Street New York, NY 10017 (212) 986-8400 Fax: (212) 983-0512 www.cooper-horowitz.com
Real estate Financing
A — February 8 - 21, 2013 — Mid Atlantic Real Estate Journal
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M id A tlantic R eal E state J ournal
A 286,452 s/f community shopping center developed on a 35-acre site Five additional businesses join High Real Estate Group LLC’s Mill Creek Square in Lancaster, PA
L
ANCA S T ER , PA — High Real Es - tate Group LLC an-
nounced that five additional businesses are joining its Mill Creek Square shopping center in East Lampeter Township. Tran Nailery & Spa, provid- ing superior nail care services, opened a 1,672 s/f spa in No- vember. Kiwi Yogurt, a fam- ily-owned fresh frozen yogurt chain, will open a 1,633 s/f space on January 31. Veritas Christian Bookstore will open a 3,321 s/f bookstore in Febru- ary. Honeybaked Ham, special- izing in premium handcrafted spiral-cut ham, will open a 1,955 s/f store in March. And Noodles & Company, a casual restaurant featuring Asian, Mediterranean, and Ameri- can-inspired fare, will open a 2,740 s/f restaurant later this spring. “We’re so pleased to offer this vibrant Lancaster market loca- tion at Mill Creek Square,” said H. Stephen Evans , senior vice president and managing director-retail division for High Associates Ltd. “It’s gratifying that these businesses recognize this as a great place to serve their customers.” Other stores and restaurants at Mill Creek Square Stores al- ready opened since Mill Creek EAST RUTHERFORD, NJ —On paper and on the street, New Jersey’s commercial real estate market looks to be on an upward trajectory, albeit a slow upward trajectory, with improving fundamentals in a climate of continued uncer- tainty. Four female brokers from commercial real estate services firm Cushman & Wakefield, Inc. including DawnArrabito (office), Bonni Heller (industrial), Rachel Pittard (industrial) and Nan- cy Erickson (retail) – recently weighed in on what they are seeing in their respective sectors. In the following Q&A interview, they discuss key Garden State drivers, shifts and projections heading into 2013. What top drivers are impacting the state’s com- mercial real estate sectors today? Heller (industrial): The market definitely is improv- ing, but the economy – and its impact on employment
Noodles & Company
Tran Nailery & Spa
Veritas Christian Bookstore
Square’s launch in fall 2010 include: Kohl’s; Bed, Bath, & Beyond / buybuyBABY; Christ- mas Tree Shops; Ross Dress for Less; Staples; PETCO; Red Robin; Shoe Carnival; Verizon Wireless; Sally Beauty; and Hair Cuttery. Retail development and phases Mill Creek Square is a 286,452 s/f community shop- ping center developed on a 35-acre site situated along the established commercial cor- ridor of Lincoln Highway East Phase I: 230,818 s/f opened fall 2010 Phase II: 55,634 s/f opened summer 2011 Phase I of Mill Creek Square is 99 percent leased; overall with Phase II the shopping center is 91 percent leased. Op- portunities remain for a junior and housing, especially – continues to hamper a true industrial recovery. People need incomes and homes in order to buy goods and fur- nishings. Until the economy picks up, consumer demand for the products contained in New Jersey’s warehouses will remain lackluster. Arrabito (office): For the of- fice market, state incentives are playing a major role in attracting tenants to New Jersey. This is particularly true in our cities, where the Urban Tax Hub credit can be cited as the catalyst for high-profile projects like the new Panasonic headquar- ters, under development by Matrix and SJP Properties in Newark. Erickson (retail): Market density and traffic drive to- day’s retail tenants. As such, companies coming into or expanding in New Jersey are targeting highway locations and grocery-anchored centers in highly populated areas. On
anchor of 10,331 s/f and small shop spaces of 1,534 to 2,110 s/f, with assemblage of space possible up to 7,000 s/f. Project leadership Mill Creek Square is a de- velopment of High Real Es- tate Group . High Real Estate Group is the co-developer of High Pointe Commons in Har- risburg and York Town Center in York. HighAssociates Ltd. is the managing agent for Mill Creek Square. Additional High Real Estate Group affiliates Greenfield Architects Ltd. and High Construction Com- pany are providing the proj- ect’s design and construction. Financing has been provided by Integrity Bank. Location and trading area The site forMill Creek Square is situated along the estab- lished retail corridor of Lincoln What do you see as your sector ’s most notable “event” in 2012? Arrabito (office): My an- swer again is going to take an urban spin. In November, 744 Broad in Newark traded following a few years without much investor movement in that city. For me, this is ex- citing because it shows that changes really are happening there. Between stepped-up of- fice investment, development and tenant movement, it is becoming clear that Newark is emerging as a preferred place for business. Erickson (retail): The grow- ing alternative use of re- tail space certainly is worth highlighting. Landlords love bringing in non-traditional tenants like urgent care clin- ics and dentist offices. My team currently is represent- ing three centers for which the owners have asked us to
Highway East (US Route 30) in East Lampeter Township, Lancaster County. Mill Creek Square offers high-quality, value-oriented shopping to the community for the benefit of residents living in the eastern portion of the County who want the convenience of closer-to- home shopping, and from a regional shopping perspective, the center complements the outlet shopping experiences available in this area, as well as other national value-oriented retailers who have wisely posi- tioned themselves here. Overview/description of the area Mill Creek Square is in the heart of the value-oriented re- tail concentration in Lancaster Country situated between the Rockvale Square and Tanger Outlets, and near other domi- Pittard (industrial): With lower industrial vacancy rates, confidence in rising rental rates and optimism about consumer activity, speculative big box construc- tion has returned to New Jersey. Five construction projects have broken ground ranging from 200,000 to 878,000 s/f. How has the landscape changed over the past 18 months? Erickson (retail): Retail fundamentals remain rela- tively flat in New Jersey. That said, the disappearance of larger tenants marks a significant change. On the other hand, smaller, largely franchised concepts with requirements of 1,500 to 4,000 s/f are eagerly seeking space. In turn, landlords are becoming more open to fill- ing vacancies with multiple replacement tenants. Heller (industrial): Indus-
nant value-oriented retailers such as Target, Wal-Mart, Cost- co, and Best Buy proximate to the confluence of US Route 30 and Routes 23 and 222 as well as I-283. It is ideally situated for retailers seeking to serve the nearby neighborhoods, the immediate trade area of the Eastern portion of the county, and a far-reaching regional trade area. Noodles, a Denver, Colo.- based casual fare restaurant, rises on the pad site by the entrance to Mill Creek Square shopping center in Lancaster. Tran Nailery & Spa opened its Lancaster location at Mill Creek Square shopping center in November, 2012. Mill Creek Square shopping center, in Lancaster will wel- come Veritas Christian Book- store in February. n trial developers and owners are looking more closely than ever at maximizing their properties. Some are upgrading and modernizing to improve competitive po- sitioning. Others, with older properties that have become functionally obsolete, are exploring reuse. To that end, we are seeing a real increase in industrial-to-data center and industrial-to-residential conversions in the region. Arrabito (office): The most dramatic change in the office sector involves its transfor- mation from a tenant-driven market to a landlord-driven market. For the past several years, property owners did everything in their power to secure long-term commit- ments. Recently, we have been seeing more landlords opting for – and even insist- ing on – shorter-term deals, with the expectation that within a couple of years they will be able to leverage rising rental rates. n
Cushman & Wakefield brokers weigh in on NJ market sectors the other hand, properties situated off the beaten path continue to struggle. pursue healthcare-type space users.
www.marejournal.com Mid Atlantic Real Estate Journal — February 8 - 21, 2013 — A MAREJ M onthly S ales and L ease R e port As Reported In The Mid-Atlantic R eal E state J ournal ~ J anuary 11 - F ebruary 7, 2013
Seller/ Owner/ Lessor
Rep. of Seller/ Lessor
Buyer/ Tenant/ L ssee
Rep. of Tenant/
Seller/ Owner/ Lessor
Rep. of Seller/ Lessor
Buyer/ Tenant/ Lessee
Rep. of Tenant/ Buyer
Property
Property Name
Address
Price
Size
Desc. S/L PG Desc.
Name
A dre s
Buyer
Price
Size
S/L PG
Swan Court Apts.
Rochelle Park, NJ
Genwill
Marcus & Millichap
RE Growth Advisors
Marcus & Millichap
$15m
126 Unit
Multifamily Multifamily
S S L
FC-A FC-A
Dover Hills
Dover, NJ
The Kislak Co.
The Kislak Co.
$11.45m 100 Unit
1782 Lincoln Way East Chambersburg, PA
Sprinwood Comm’l. Sprinwood Comm’l. Sprinwood Comm’l. Sprinwood Comm’l.
Outdoor Living
4000 SF 2850 SF
Retail
3A 3A 3A 3A
296 Pleasant Acres
Springettsbury,
Keeping it Green Outdoors
Mixed-Use
L
Twp., PA
Off I-83
York County, PA Springettsbury,
12.54 Acres Comm’l. Land S
2290 Industrial Hwy
CDI Fitness
2218 SF
Retail
L
Twp., PA
701 Union Blvd.
Totowa, NJ Livingston, NJ
Roche
CBRE
Digital Realty Trust
$16.8m
271,800 SF Ind
S S S L L S L S S S S S S S S L S S L L L L L L L L S L L S L L L L S S S L S S L L L L L L L L L L S S S S S S S S S S L L L L L L L L L L L L L L L L L L L L L S L L
9A
Chesterfield Gardens
Chesterfield Assoc
Gebroe-Hammer
Solomon Org
Gebroe-Hammer
$16.55m 172 Unit
Multifamily Multifamily
10A 13A
300-400 Neptune Blvd, Neptune, NJ
Cushman & Wakefield
$7m
162 Unit
1819 Bangs Ave. Pulaski Dist. Ctr. Pulaski Dist. Ctr. 115 Moonachie Ave 9030 Rte. 108 6317 Macaw Ct. Lexington Apts. 34 Main St 260 Alpha Dr. 20 Wright Ave. Willow Street, PA 4139 Oregon Pike 1300 E Market St 260 Lafayette St. 1954 Carlisle Rd. 910 S George St. 1400 AIP Dr. 11 Ind. Rd, 770 S. West St. 5500 Paxton St. 5939 Linglestown Rd. 22-26 Northeast 1104 Carlisle Rd. Silver Creek Plaza 7615 Whitaker Ave. 1506 Centre Tpke. Penn Mutual Towers 1529 Walnut 18th & Chestnut 1608 Walnut St. 1525 Walnut St. 2040 Market St. 1632 Sansom St. 2000 Hamilton St. 1318 Chestnut St. Butz Corp. Ctr. 1911 Greve Ave. 23 Bustelton Pike 16601 Chargrin Blvd. 321 Dulty’s Ln 2830 Woodberry Rd. 50 N. Duke St 390 E. Chestnut St. Cloister SC Market Sq Penn Warner Penn Warner Humboldt Ind. Pk.
Jersey City, NJ Jersey City, NJ Moonachie, NJ Burlington, NJ Columbia, MD Elkridge, MD Silver Spring, MD O’Hara Twp.,PA Lancaster, PA Lancaster, PA York County, PA York County, PA York County, PA York County, PA York County, PA York County, PA York County, PA DA Landis
ProLogis ProLogis Russo Dev. PREI fund RREEF RE Macaw Ct.
Peapod
JLL
345,000 SF Dist 395,000 SF Dist 168,000 SF Ind 188,294 SF Ind 337,228 SF Flex
13A 13A 14A 15A 23A 23A 23A 23A FC-B FC-B
JLL
Imperial Paper Bag & Paper
CBRE
Cornerstone RE Advisors Cornerstone RE Advisors
Whitesell Construction
NAI Mertz
Ta Chen
NAI Mertz
Orbital Science Campus Sterling, VA
HFF
$85.6m $3.6m $3.1m $3.6m $1.06m $1.35m
Colliers | Baltimore Colliers | Baltimore Marcus & Millichap
Way Station Inc.
Colliers | Baltimore
28,750 SF 12,000 SF
Medical Whse/Off Multifamily
TKW Chesapeake Props Pat Dougal & Assoc.
Marcus & Millichap
55 Unit
New Kingstown, PA Lexmain Realty Investors Cushman & Wakefield
Woodmont Ind. Ptrs.
Cushman & Wakefield $5m
180,333 SF Whse
RIDC
Practical Medical Solutions
10,200 SF 16,748 SF
Ind
Metro Bank
NAI Comm’l. Ptrs.
WS Realty
Prudential Homesale
Whse/Off
2B
Svcs. Grp
NAI Comm’l. Ptrs.
REMAX Assoc NAI Comm’l. Ptrs.
$560k $10m
12.87 Acre Ind Site
2B 2B 3B 3B 3B 3B 3B 3B 3B 3B 4B 4B 4B 4B 4B 4B 4B 4B 4B 4B 5B 8B 8B 8B 8B 9B 9B
Parsons Brinckerhoff 1300 East Market St
80,000 SF 7944 SF
Office Off/Apt
ROCK ROCK ROCK ROCK ROCK ROCK
Coldwell Banker Select $215k
True Bread Community ROCK
$125m
13,980 SF
Church
Canadochly Const. Wellspan Props
20,000 SF 12,630 SF 4800 SF 3676 SF 2000 SF 1856 SF 73,200 SF 50,400 SF 4500 SF 4182 SF 2000 SF 42,115 SF 1721 SF 1440 SF 2200 SF 5745 SF
Ind Off
ROCK ROCK ROCK ROCK
Motorlink Cars
Retail Office Office
221 W Philadelphia St. York County, PA
Moxie Design & Marketing ROCK
S. Grove Winfosoft
ROCK
Off Ind
Lwr. Swatara Twp., PA Conewago Contractors NAI CIR
ORS Nasco Crow Trans. Mahi Props.
Cushman & Wakefield
Elizabethtown, PA Harrington Hoists
NKFSM NAI CIR NAI CIR
NAI CIR
Whse
Carlisle, PA
Dist
Swatara Twp., PA Lwr. Paxton Twp., PA
Precision Digit-All Pink Dream Studio C&G Squadron Carlisle Froyo Weight Watchers Yougurt Works Café
RSR
Whse
Bill Gladstone Grp.
Off
Derry Twp., PA Camp Hill, PA Ephrata, PA Shrewsbury, PA
NAI CIR
Off/Flex
Cedar Cliff
Bennett Williams Bennett Williams Bennett Williams
Retail Retail Retail Retail
Mechanicsburg, PA Smith Land & Improvement
Cloister Assoc. Shrewsbury, LP
Bailey Design & Consign Bennet Willams
9747 Commerce Circle Kutztown, PA
Endurance, Thackeray Ptrs. Cushman & Wakefield
Woodmont,
$21.3m
385,000 SF Ind
AEW Capital Mgmt.
Falls Twp., PA Falls Twp., PA Humboldt, PA
249 Canal Road LP 259 Canal Road LP
Roddy Roddy
Future Foam Future Foam
$2.45m $2.65m
56,086 SF 60,000 SF
Ind Ind
Mericle Comm’l. RE Svcs. Cushman & Wakefield, Genco
Cushman & Wakefield,
200,000 SF Ind
Summit
Summit
Philadelphia, PA Schuylkill Cty., PA Philadelphia, PA Philadelphia, PA Philadelphia, PA Philadelphia, PA Philadelphia, PA Philadelphia, PA Philadelphia, PA Philadelphia, PA Philadelphia, PA Allentown, PA
Marcus & Millichap
Marcus & Millichap
$625k
10 Unit
Multifamily
Meck Realty Ptrs. Onyx Equities
NAI Keystone
Advanced H2O
CBRE
153,941 SF Ind
NGKF
Levin, Fishbein, Sedran PernaFrederick
14,152 SF
Office
& Berman
PernaFrederick Metro Comm’l.
PernaFrederick
5808 SF 1865 SF 13,038 SF 2355 SF 6186 SF 635 SF 3000 SF 3200 SF 1800 SF
Office Retail Retail Retail Retail Retail Office Medical Mixed-Use
9B
Midwood Mgmt. PMC Prop. Grp.
Allen Edmonds
10B 10B 10B 10B 10B 10B 10B 10B
Medical Rehabilitation Ctr. Metro Comm’l.
LUSH
National Penn Bank Federal Donuts 1318 Brauhaus HD Power Solutions Hand & Stone Massage
Metro Comm’l.
Philadelphia Sansom Rodin Market Ptrs S. Rappaport Family
Metro Comm’l.
NAI Summit
Spring Lake Heights, NJ
Gebroe-Hammer Assocs. Gebroe-Hammer Assocs. $19.225m 79-unit
Apt.
4A
Feasterville, PA
Soloff Realty & Dev.
National Retail Group $7m
24,803 s/f
Retail
FC-B FC-B FC-B FC-B
Shaker Heights, OH
Katz Properties Katz Propertties Katz Properties
123,000 s/f Retail
297 Boston Post Road Wayland, MA
32,000 s/f 85,000 s/f
Retail Retail Retail
Main Street AutoZone
Noriwch, NY
Edgewater Park, NJ
Marcus & Millichap
Marcus & Millichap
$2,650,000 7,360 s/f $5,000,000 3 prop. $1,425,000 3,990 s/f $990,000 3,240 s/f $2.675m 10,000 s/f
3B 5B 5B 5B 6B 6B 6B 6B 7B 7B 7B 7B 7B 7B 7B
1313,1315, & 1317 14th Washington, DC
Ten-R-Ten, LLC
Douglas Development Corp Marcus & Millichap
Mixed-Use Mixed-Use
1502 21st St. NW
Washington, DC Thurmont, MD Woodbridge, VA Winchester, VA Washington, DC Brandywine, MD Baltimore, MD Oxon Hill, MD
Marcus & Millichap Marcus & Millichap McShea & Company
Marcus & Millichap Marcus & Millichap
Wendy’s
Retail Retail Retail Retail Retail Retail Reatil Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail Retail
4800 Dale Boulevard Pleasant Valley SC Rhode Island Row Brandywine Crossing Mount Clare Junction Oxon Hill Plaza Loch Raven Plaza Loch Raven Plaza
Delaney Plaza, LLC
McLean Village, LLC
H&R Retail H&R Retail
12,000 s/f 2,480 s/f 3,995 s/f 38,843 s/f 7,340 s/f 18,861 s/f 7,566 s/f 2,000 s/f 724 s/f 1,400 s/f 12,000 s/f 2,220 s/f 2,000 s/f 3,861 s/f 1,950 s/f 3,500 s/f 1,300 s/f 1,580 s/f 2,088 s/f 6,032 s/f 7,020 s/f 4,258 s/f 6,500 s/f
H&R Retail
Faison-Brandywine, LLC
DLC Management Corp. DLC Management Corp. DLC Management Corp. DLC Management Corp. DLC Management Corp. DLC Management Corp.
PriceRite
Ocean Beauty ALDI Food Market Aaron’s Furniture
Towson, MD Towson, MD
Eastover Shopping Ctr. Oxon Hill, MD Eastover Shopping Ctr. Oxon Hill, MD
Envy
Rose’s Boutique
1225 Eye Street, NW
Vienna, VA
Rosenthal Properties
Starbucks
North Dover Shopping Ctr.Dover, DE
Brixmor Property Group Brixmor Property Group Brixmor Property Group Brixmor Property Group
Party City
Trout Daniel & Associates
11B 11B 11B 11B 11B 11B 11B 11B 11B 11B 11B 12B 13B 13B
Ocean Heights SC Hanover Square
Philadelphia, PA
Weight Watchers Weight Watchers Shagun Restaurant
Mechanicsville, PA Brixmor Property Group
Katsias Company
Collegeville Shopping Ctr. Collegeville, PA
Village West
Allentown, PA
Sweet Frog Frozen Yogurt BDC Realty
Nesconset Shopping Ctr. Pt Jefferson Station, NY Brixmor Property Group
Create-A-Cake The Gold Spot
Culpeper Town Mall Hancock Village Bell Creek Market Bermuda Crossroads Bermuda Crossroads
Washington, DC Chesterfield, VA
Brixmor Property Group
Taylor Long Properties Bird Watchers, Inc. Taylor Long Properties Eric Winn Salon Taylor Long Properties Buffalo Wild Wings Taylor Long Properties Bojangles
Mechanicsville, VA
Chester, Va Chester, Va Bristol, PA Princeton, NJ
1.218 Acres Retail
2664 Route 13
Equity Retail Brokers
Marketfair
Madison Marquette
Corner Bakery Café
4952 Mercantile Road White Marsh, MD
Fed.Realty Investment Trust Segall Group
Mr. Tire
Segall Group
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