- DC

indsorMill,MD — Morgan Proper- ties , a real estate in- W Company acquires over $800m of multifamily investments in last year Morgan Properties acquires $247m, six property portfolio consisting of 1,979 units

ISSUE HIGHLIGHTS Volume 29 Issue 8 April 14 - 27, 2017

vestment and management c o m p a n y , ann o un c e d today that it has acquired a $247 mil- lion, six prop- erty portfolio consisting of


Southern NJ Spotlight

Silver Spring

Granite Run

Avery Park


unit apartment portfolio span- ning Maryland, Pennsylvania, North Carolina, and South Carolina • Avery Park, a 606-unit apart- ment community located in Silver Spring, Maryland • Grand Pointe, a 325-unit apartment community located in Columbia, Maryland • Henson Creek, a 450-unit apartment community located in Temple Hills, Maryland Morgan Properties has ac- quired 21 apartment com- munities and 6,300 units this year and has closed on all the deals it has been awarded. To support these assets, the company has hired 140 new employees. “Morgan Properties is one of the nation’s largest and fastest growing multifamily owners

and operators. Our recent growth is attributable to our ability to deploy capital, gain scale and quickly leverage off our operational efficiencies to achieve high occupancy and resident satisfaction,” said JonathanMorgan , president of Morgan Properties JVMan- agement. Since its inception in 2011, Morgan Properties JV has been one of the most active investors in the Mid-Atlantic and Northeast Region, and has acquired more than $2 billion of multifamily invest- ments and 17,000 units. The Company has a proven track record of creating value for its equity investors through value-add repositioning, re- habilitation, and professional management expertise.

Morgan adds, “We intend to continue growing by acquiring class B, multifamily assets in infill, high-barrier markets where our operational exper- tise can quickly add value for our investors and residents. We have the capital to move quickly to acquire sizable mul- tifamily portfolios in major MSAs nationwide.” Morgan Properties intends to acquire $1 billion in real estate assets in 2017. The Company will invest $60 mil- lion in value-add renovations to reposition recently acquired properties. Amenities will include premium kitchen and bath upgrades, as well as the addition of fitness centers, resident lounges, dog parks, playgrounds, grilling areas, and exterior fitness stations. n than 500 tenants. “We are enthusiastic about the investment potential of this portfolio and the ability to extend our national industrial footprint to over 45 million s/f,” said David Luski , presi- dent of DRA Advisors. According to Franz Col- loredo-Mansfeld , CEO of Cabot Properties, this block- buster deal concludes disposi- tion activity for his firm’s Fund II assets. “We are pleased to have closed this large, complex transaction, which marks the successful and profitable close of an investment program we launched in late 2005,” Col- loredo-Mansfeld said. “Con- tinuing strong tenant demand and very favorable conditions in the industrial property markets should also make this a successful investment for DRA Advisors.” n

Jonathan Morgan

1,979 units located in Wind- sor Mill from Harbor Group International. The acquisition, called the Rolling Road Port- folio, includes Crosswinds at Rolling Road, Diamond Ridge, Glens at Rolling Road, Granite Run, Rolling Wind and Strat- ton Meadows. The acquisition comes on the heels of five other recent transactions closed by Morgan Properties. This brings the company’s total multifam- ily investment during the last year to over $800 million and 6,300 units. Morgan Proper- ties’ other recent transactions include: • Bishop’s View, a 200-unit apartment community located in Cherry Hill, New Jersey • The Star Portfolio, a 2,826-

SOutheastern PA Upcoming Conferences April 26, 2016 New Jersey Office Summit April 27, 2017 Philadelphia Capital Markets Summit May 10, 2017 Pittsburgh Multifamily Summit May 17, 2017 2nd Annual Delaware CRE Forecast Summit For speaking and sponsorship information, please contact: Linda at 781-740-2900 or lchristman@marejournal.com 5-13C

DRA Advisors acquires $1.07 billion portfolio from Cabot Properties, assets span 21 markets

NEW YORK, NY — New York City-based investment advisory firm DRA Advisors LLC has acquired a 19.8 mil- lion s/f industrial portfolio on behalf of its funds from


Financial Digest................................................9-23A New Jersey................................................. Section B Pennsylvania.............................................. Section C

Upcoming Spotlights GP-FM 2017 Spring Preview Industrial/Distribution Centers

6000 Green Pointe Drive

Boston-based private equity real estate firm Cabot Prop- erties, Inc. Eastdil secured and Cushman & Wakefield represented Cabot Properties in the $1.07 billion trade. The portfolio is geographi-

cally diversified across 21 markets throughout the Unit- ed States, including major in- dustrial hubs such as Dallas, Chicago, Columbus, Houston and Atlanta. Its 184 proper- ties are 94% leased to more


Inside Cover A — April 14 - 27, 2017 — M id A tlantic

Real Estate Journal


C ommercial R eal E state O rganizations ’ E vents C alendar

APRIL 20 – CREW BALTIMORE Event: Women of Influence Luncheon Time: 11:30 AM-2:00 PM Location: Center Club Address/City: 100 Light St., 16th Fl., Baltimore, MD Cost: $65 Members $80 Nonmembers www.crewbaltimore.org APRIL 20 – CREW NJ Event: Environmental Update Time: 11:30 AM – 1:30 PM Location: APAWoodbridge Hotel Address/City: 120 Wood Ave. South, Iselin, NJ P: 609-585-6871 www.icrewnj.org APRIL 20 – CREW PHILADELPHIA Event: Annual Past President Event: A Look at the Changing Landscape of Industrial Space Time: 8:30 AM – 1:00 AM Location: Quorum at the University City Science Center Address/City: 3711 Market St., Philadelphia, PA Cost: $45 Members $65 Nonmembers www.crewphiladelphia.org Time: 5:30 PM – 7:00 PM Location: Stadium Square Address/City: 145 West Ostend St., Baltimore, MD Cost: Members Free/$40 Nonmembers P: 410-844-0410 E: Baltimore@ulit.org www.baltimore.uli.org APRIL 22 – USGBC NJ Event: Sustainability Night at Red Bull Arena Time: 7:30 PM – 9:30 PM Location: Red Bull Arena Address/City: 600 Cape May St., Harrison, NJ P: 973-290-0013 www.usgbcnj.org APRIL 24 – 2017 AIA Philadelphia Event: Golf Outing Time: 10:30 AM – 7:30 PM Location: Huntingdon Valley Country Club Address: 2295 Country Club Drive, Huntingdon Valley, PA P: 215-569-3186, ext. 101 E: juliaiaphila.org www.aiaphiladelphia.org APRIL 25 – ABC METRO WASHINGTON Event: ABC.XYZ Presents TopGolf Time: 4:00 PM – 7:00 PM Location: TopGolf Address/City: 6625 S. Van Dom St, Alexandria, VA Cost: $115 by 4/14. $125 after 4/14 www.abcmetowashington.org APRIL 25 – CIANJ Event: Non-Profit Management, Operation and Charitable Fundraising Compliance Time: 8:30 AM – 10:00 AM Location: Hilton Meadowlands Address/City: 2Meadowlands Plaza, East Rutherford, NJ Cost: $55 Members $85 Nonmembers www.cianj.org APRIL 25 – NJ BANKERS Event: Women’s Leadership in the 21st Century: A Communication Boot Camp Time: 8:30 AM – 4:00 PM Location: 411 North Avenue East, Cranford, NJ P: 908-272-8500 www.njbankers.com APRIL 20 – ULI BALTIMORE Event: Content Before Cocktails

APRIL 27 – ABC EAST PA Event: PAC Dinner 2017 Time: 5:00 PM – 8:00 PM

APRIL 18 – AIA PHILADELPHIA Event: Six Steps to Growing Your Business and Becoming an Asset to Your Firm Time: 5:30 PM – 7:00 PM Location: Center for Architecture & Design Address/City: 1218 Arch St., Philadelphia, PA Cost: $10 AIA/SMPS Member $20 Nonmember www.aiaphiladelphia.org APRIL 18-20 – AIA PHILADELPHIA Event: 2017 ABAA Conference & Trade Show Location: Hyatt Regency Reston Address/City: 1800 Presidents St., Reston, VA Cost: 1 Day-$295; 2 Days-$495; 3 Days-$695 P: 866-956-5888 E: kreimer@airbarrier.org www.aiaphiladelphia.org APRIL 18 – SMPS CPA Event: Building Your Company’s Growth Engine from First Contact to Close Time: 1:00 PM – 6:00 PM Location: Hershey Lodge-Wild Rose Meeting Space Address/City: 325 University Dr., Hershey, PA www.smpscentralpa.org APRIL 19 – ABC NJ Event: Membership Committee Time: 8:30 AM – 9:30 AM Location: ABC NJ Office Address/City: 100 Gaither Dr., Suite C, Mount Laurel, NJ www.abcnjc.org APRIL 19 – AI PHILADELPHIA Event: 3rd Annual Real Estate Trends Time: 8:30 AM – 4:30 PM Location: Villanova University-Bartley Hall Address/City: 800 Lancaster Ave., Villanova, PA Cost: $180 Members $195 Nonmembers P: 610-326-0100 www.aiphilametro.org APRIL 19 – NJAA Event: Fair Housing: What You Need To Know Time: 8:30 AM – 12:00 PM Location: Feinstein Raiss Kelin & Booker - So. Entrance Address/City: 290 W. Mt. Pleasant Ave., Livingston, NJ www.njaa.com APRIL 20 – ABC VA Event: Ladies Networking Event: Muse Paint Bar Time: 4:00 PM – 7:00 PM Location: Muse Address/City: 2920 District Ave., #100 Fairfax, VA Cost: $75 Per Person www.abcva.org APRIL 20 – ABC VA Event: Member Mixer at Havana ‘59 Time: 5:00 PM – 7:00 PM Location: Havana ‘59 Address/City: 16 N. 17th St., Richmond, VA Cost: $48 Per Person www.abcva.org APRIL 20 – ABC VA Event: Networking at Marker 20 Time: 5:30 PM- 8:00 PM Location: Marker 20 Address/City: 21 East Queens Way, Downtown Hampton, VA Cost: $45 Members $55 Nonmembers

Location: Normandy Farm Hotel and Resort Address/City: 1401 Morris Rd., Blue Bell, PA Cost: $40 Per Person P: 610-279-6666 E: aaldred@abceastpa.org www.abceastpa.org APRIL 27 – CREW LEHIGH VALLEY Event: Commercial Real Estate Meets Medical Marijuana Time: 11:30 AM – 1:00 PM Location: Brookside Country Club Address/City: Macungie, PA Cost: $35 Members $55 Nonmembers. www.crewlehighvalley.org

APRIL 27 – USGBC CENTRAL PA Event: The Regenerative Business: Beyond Corporate Sustainability

Time: 2:00 PM – 5:00 PM Location: HACC Midtown Address/City: Room 206, 1500 North 3rd St., Harrisburg, PA Cost: $40 Members $60 Nonmembers www.usgbc-centralpa.org MAY 1 – BOMA PITTSBURGH Event: PAC Golf Classic Time: 9:30 AM Location: Valley Brook Country Club Address/City: 425 Hidden Valley Rd., McMurray, PA www.bomapittsburgh.org MAY 2 – CIANJ Event: Small Business Workshop Time: 8:00 AM – 11:00 AM Location: Saddle Brook Marriott Address/City: 138 New Pehle Ave., Saddle Brook, NJ Cost: $55 Members $85 Nonmembers www.cianj.org MAY 3 – CCIM PA/NJ/DE Event: The University City: What’s Next Time: 5:30 PM Location: FMC Tower at Cira Centre South Address/City: 2929Walnut St., Level 28, Philadelphia, PA Cost: $25 Members $35 Nonmembers P: 610-560-1266 E: kristen@panjdeccim.com www.ccimpanjde.com MAY 8 – CIANJ Event: 49th Annual Golf Outing Time: 10:30 AM – 8:00 PM Location: Upper Montclair Country Club Address/City: 177 Hepburn Rd., Clifton, NJ www.cianj.org MAY 9 – ABC METRO WASHINGTON Event: ABC.XYZ Pig Roast with Cornhole and Kickball Tournaments Time: 2:00 PM – 7:00 PM Location: Smokey Glen Farm Address/City: 16407 Riffle Ford Rd, Gaithersburg, MD Cost: $75 www.abcmetrowashington.org MAY 9 – AI NORTHERN NJ Event: 11th Annual Meadowlands Conference Time: 8:30 AM – 4:30 PM Location: Teaneck Marriott at Glenpointe Address/City: 100 Frank W. Burr Blvd., Teaneck, NJ www.nnjchapter.ai.org

P: 757-855-8220 www.abcva.org

Real Estate Journal — April 14 - 27, 2017 — 1A


M id A tlantic

apa HoteL WooDBrIDGe, 120 WooD avenue SoutH, ISeLIn, neW JerSey

SpeakerS Include

Jason R. Bogart Principal Accordia Realty Ventures

Edwin H. Cohen Principal Partner Prism Capital Partners

Jose Cruz Senior Managing Director HFF | New Jersey

Benjamin D. Korman Principal C&K Properties

Jan Alan Lewis Member Cole Schotz P.C.

Sam Morreale Founder & Managing Partner Vision Real Estate Partners

Tiffany Rolfing Energy Efficiency Manager ICF | NJs Clean Energy Program

Dana Nalbantian Assoc. AIA, Principal, Studio Director Gensler

Robert Rudin, Vice Chairman Cushman & Wakefield

Joseph J. Sarno, Jr. Executive Vice President CBRE’s East Brunswick

Jonathan Schultz Co-Founder and Managing Principal Onyx Equities

Kevin Welsh Senior Vice President at CBRE

Bronze SponSor

Corporate SponSor

reGISter toDay! WWW.MareJournaL.CoM

2A — April 14 - 27, 2017 — M id A tlantic

Real Estate Journal


Mid Atlantic R eal E state J ournal Publisher ............................................................................ Linda Christman Associate Publisher ................................................................ Steve Kelley Associate Publisher ..........................................................Barbara Holyoke Associate Publisher ...................................................................Kim Brunet Associate Publisher ............................................................. Lea Christman Senior Editor/Graphic Artist .................................................Karen Vachon Office Manager .................................................................... Joanne Gavaza Sales Intern ........................................................................ Kevin Minassian Contributing Columnists .............James Malcolm, RAM Real Estate Asset Management; and John Oberer, GZA GeoEnvironmental, Inc. Mid Atlantic R eal E state J ournal — Published Semi-Monthly Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 350 Lincoln St., Suite 1105 Hingham, MA 02043 USPS #22-358 | Vol. 29 Issue 8 Subscription rates: $99 - one year, $148 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion 781-740-2900 | Fax: 781-740-2929 www.marejournal.com The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal

Mid Atlantic Real Estate Journal

Leading the Real Estate Investment Market Contact us today to access the largest inventory of properties.

James Malcolm

10 Questions to Ask your Commercial Agent

When Leasing an Office Space

J.D. Parker Manhattan

Brian Hosey New Jersey (201) 582-1000 Bryn Merrey Washington, D.C. (202) 536-3700

(212) 430-5100 Brenton Baskin Philadelphia (215) 531-7000

Y ou can never be too care- ful when signing a lease for commercial office space and failure to do your due diligence can lead to prob- lems. For instance, the wrong space can hurt your business if it’s difficult for your clients to access your building or if you don’t have the amenities you require. To minimize the chances of these (and other) disasters occurring, consider asking your commercial prop- erty managing agent the fol- lowing questions: 1. What happens if the space isn’t ready by the expected move-in date? Unless the space you want to occupy is already vacant and fits yours needs exactly, there are all types of last minute is- sues that can come up. Your lease should clearly detail what happens if the space isn’t ready by the purported move in date. Be wary of any clauses

Offices Throughout the U.S. and Canada


that allow the landlord give you an alternative space if the new space isn’t ready on time. This solution only magnifies the costs and other issues as- sociated with moving. 2. Does the lease come with an option to renew? After your lease expires, the landlord is under no legal obligation to offer the same space to you - unless there’s a renewal clause in your lease. This guarantees that you will have first dibs on the space when the lease expires. 3. Will the landlord take on the cost of changes (like new carpet, special electri- cal needs, etc)? You will probably want to modify and update your new

continued on page 28A Is your building in a central location that’s close to train stations and airports to accom- modate heavy business travel or out of town clients? Depen- dent on your business type, this may help determine the amount of traffic that you will receive. The agent should have information about community demographics, car counts, etc. available. office space to meet your spe- cific requirements. In most cases, you will be responsible for these costs. But there are some landlords will amortize the costs over the term of the lease. 4. How much traffic does the area get?

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The Mid Atlantic Real Estate Journal is a monthly publication highlighting real estate transactions throughout the Mid Atlantic including : • New developments, ground breakings and reconstruction in the ODM (Owners, Managers & Contractors ) section • Mortgage and banking in our Financial Digest • Retail and new developments in Shopping Centers • Annual spotlights.

Subscribe at marejournal.com

Kaplin Stewart Attorneys at Law

Contact: William J. Levant • wlevant@kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-941-2474 • www.kaplaw.com Visit our Real Estate Blog: www.philadelphiarealestatelawyer.com Visit our Construction Blog: www.pennsylvaniaconstructionlawyer.com Other Offices: Cherry Hill, NJ 856-675-1550& Philadelphia, PA 215-567-3120

Linda Christman, CEO/Publisher Mid Atlantic Real Estate Journal 350 Lincoln Street, Suite 1105 Hingham, MA 02043 P: 781-740-2900 | F: 781-740-2929

• Region specific news and spotlights in our Pennsylvania and New Jersey sections

Real Estate Journal — April 14 - 27, 2017 — 3A


M id A tlantic

Providing Innovative Financing for Affordable Housing andMixed-Use Development www.njhousing.gov • 1-609-278-7518

4A — April 14 - 27, 2017 — M id A tlantic

Real Estate Journal


M id A tlantic R eal E state J ournal By Stellar Management and Imperium Capital of 220 Fifth Avenue Progress Capital represents Dino & Sons Realty Corp. in the leasehold acquisition N EW YORK, NY — Kathy Anderson of Progress Capital

in 1912 and is renowned for its Neo-Gothic architecture which is visible for blocks because of its two-story copper mansard roof. “220 Fifth Ave. is a special building that has been in the Tomassetti family for over 30 years,” said Anderson. “It was important to find the perfect strategic partner to continue the family’s vision and I’m honored to have been trusted by both the Tomassetti’s and Stellar/Imperium to help ac- complish this.” As part of its capital im- provement program, Stellar

and Imperium will renovate the lobby and update and modernize the building sys- tems. The partnership is also completing high-end, custom pre-builds for turn-key office space. There are currently six full floors available for lease comprising 9,000 RSF each. “The location is unbeatable and we are excited to begin upgrading the base building and amenities to offer this as a premium office space for ten- ants,” said Matthew Lembo, a principal at Stellar Manage- ment. “This coveted building an-

choring the corner of 26th and Fifth Ave. is a jewel of the red hot Madison Square Park sub- market,” said Morris Mishan of Imperium Capital. John Park, Leo Leyva, Jordan Fisch, Jeff Schecter and Patrick Quinn of Cole Schotz provided legal coun- sel for Dino & Sons Realty Corp. while Ira Nesenoff and Ariya Waxman of Nesenoff & Miltenberg represented Stellar Management and Im- perium Capital. n Montgomery Mc- Cracken adds five attorneys to NY Real Estate Team NewYork, NY — Mont- gomery McCracken an- nounced the addition of four attorneys and one law clerk from the New York-based firm Mishaan Dayon & Li- eblich. The group brings sub- stantial experience in the fields of commercial and real estate law and associated transactions and litigation. Saul Mishaan and Jef- fery Dayon will join as partners; Dayon will also serve as Chair of the Firm’s Commercial Leasing and Development Practice Group. MatthewBondy will join as of counsel; Daniel Lavian will join as an associate; and Abraham Ally Dayon will join as a law clerk. “I am excited to welcome this group of talented lawyers to our firm,” said Montgom- ery McCracken Chairman Louis Petroni. Mishaan has practiced for over 35 years focusing his practice on all types of commercial and real estate matters, including complex leasing transactions. Dayon brings over 30 years of experience advising pri- vate lenders, small and large privately held real estate op- erating companies, investors and high wealth individuals on planning, structuring and executing highly complex real estate and corporate transactions, commercial leasing, and sophisticated fi- nancing transactions includ- ing securitized mortgages, multi-tranche mezzanine loans and preferred equity transactions. Bondy focuses his practice on commercial litigation, real estate finance, and commer- cial leasing. n

A d v i s o r s negot i ated the transfer of the lease- hold interest in 220 Fifth Ave. from a subsidiary of Dino & Sons Realty Corp.

Kathy Anderson

to a joint venture between Stellar Management and ImperiumCapital . Formerly known as the Croisic Building, 220 Fifth Ave. was constructed

220 Fifth Ave.

7 AUCTIONS May 10th & 11th

1 | Moorestown, Burlington Co. 3 Lots Totaling 1.71± Acres • Minimum Bid $495,000 • Signalized Intersection • Water, Sewer all Utilities On-site • 85 & 91 Kings Highway 3 | Cherry Hill, Camden Co. 2,304± Professional Building on .26± Acres • Minimum Bid $175,000 • Office with Adjacent Apartment • 816 Kings Highway South 5 | Pine Hill, Camden Co. 7.76± Acres Zoned Commercial • Minimum Bid $125,000 • Water, Sewer all Utilities On-site • 305 & 315West Branch Avenue 6 | Deptford Twp, Gloucester Co.

2 | Medford, Burlington Co. 9,000± SF Mixed Use Development Opportunity • Court Ordered • .77± Acres • 67 North Main Street 4 | Neweld (Franklin Twp.), Gloucester Co. 9,140± SF Commercial Building with Retail Store and Oces • Former Girl Scout Distribution Center • 52± Acres Includes Two 20± Acre Residential Lots • 2944 Victoria Ave

Property Previews for Properties 1 - 5 April 20 & 26 11AM to 2PM

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Robert L. Dann Auctioneer Lic #AU005609

www.marejournal.com Real Estate Journal — DelMarVa — April 14 - 27, 2017 — 5A A portion of the consideration to be received by the seller will consist of OP units Washington Reit to acquire 309,000 s/f Watergate 600 office building for $135 million W a sh i ngton , DC — Washing- ton REIT (Wash- ate value for our shareholders through effective repositioning and leasing.” M id A tlantic

Built in 1972 and reno- vated extensively in 1997, the 12-story, 309,387 s/f Wa- tergate 600 is one of the six buildings that comprise the internationally recognized Watergate complex. Wash- ington REIT’s latest acquisi- tion enjoys a prominent site directly across from the Ken- nedy Center for the Perform- ing Arts, with panoramic river views and instant access to In- terstate 66. Metrorail’s Foggy Bottom station is located just about a quarter mile away. “The acquisition of Water- gate 600 exemplifies Wash- ington REIT’s office strategy of acquiring high-quality, ur- ban, metro-centric assets and further increases our footprint within prime locations in the District,” noted McDermott. “Following the company’s val- ue-add success at 1775 Eye Street, which was acquired and renovated in 2014, 600 Watergate provides Wash- ington REIT with another excellent opportunity to cre- Advisors , represented by Eric Berkman of Cushman & Wakefield . “Washington Property Com- pany was attracted to the deep value opportunity of buying a functional and leasable office building at $28 per s/f,” said WPC’s Andrew Eshelman , Washington, DC — Greysteel , a national com- mercial real estate investment services firm, t o d a y a n - nounced the p r omo t i o n of W. Kyle Tangney to managing di- rector. Tang- ney ’ s mos t recent title was senior director. Tangney’s focus is on mul- W. Kyle Tangney

While the building is cur- rently 97 percent leased, Washington REIT will have the opportunity to lease 90,000 s/f when Blank Rome’s lease expires at the end of the 2018. With the recent $125 mil- lion repositioning and 2016 re-opening of the Watergate Hotel, the Watergate complex is experiencing renewed inter- est from both office and retail tenants. Based on this interest, Washington REIT plans to refine and complete the sig- nificant renovations underway including a lobby expansion and upgrade, major systems upgrades, and expansion of the building’s existing restaurant space to meet demand from Kennedy Center patrons. The new ownership also plans to add a state-of-the-art fitness facility and conference center, while expanding and upgrad- ing the rooftop space. n principal-acquisitions. “The property’s underlying zoning allows for future redevelop- ment as residential or retail space.” Eshelman added that WPC is currently seeking oth- er opportunistic acquisitions across the Washington, DC metropolitan area. n tifamily property transactions, particularly within the greater Washington, D.C. region. Mr. Tangney works with clients across the investment spec- trum, from private clients and middle market companies all the way up to institutional powerhouses. Tangney leads the Washington, D.C. team of investment sales professionals and is responsible for business development, marketing strat- egy, and start-to-finish deal execution. n

ington Real Estate In- vestment Trust has signed a contract to acquire 600 New Hampshire Ave., NW, a 309,000 s/f class A office building on the Potomac riv- erfront in Washington, DC, for $135 million ($437 per s/f). Watergate 600, as it is known, is being sold by Kath- erine Bradley and David Bradley, who also control Atlantic Media . Atlantic Me- dia occupies close to half of Watergate 600 (140,000 s/f) under a long-term lease. The Bradleys said: “After a dozen years as owners of Watergate 600 and as anchor tenants through Atlantic Media, we are delighted that the build- ing will become part of Wash- ington REIT. Their vision is consistent with ours, both for the iconic building and for the renewal of the surrounding complex. Washington REIT will be an excellent steward Bethesda, MD — Wash- ington Property Company (WPC) of Bethesda has ac- quired two office buildings in the Maryland and Virginia suburbs of Washington, DC for a total of $7.96 million. These acquisitions, one in Montgom- ery County, MD and the other in Fairfax County, VA repre- sent deep-value opportunities from motivated sellers. Computer Science Corpora- tion (CSC) sold WPC a 116,000 s/f office building located at 3160 Fairview Park Blvd. just off I-495 in Fairfax County, VA, for $7.150 million. The build- ing, situated just off I-495 in one of the area’s preeminent office parks, was constructed in 1987 as CSC’s headquarters. James Molloy of JLL repre- sented the seller in the trans- action. “At $62 per s/f, this fully functional office building rep- resents a great opportunity

600 New Hampshire Ave., NW

for a unique and treasured asset.” A portion of the consider- ation to be received by the seller will consist of operating partnership units (OP units). “By partially structuring this acquisition as an OP unit transaction, we were able to execute a transaction that was mutually beneficial to both parties,” said Paul Mc-

Dermott , president and CEO of Washington REIT. “The structure allowed us to create an efficient execution for a private owner of real estate in the Washington metropolitan area. Under a similar struc- ture, we expect to generate opportunities to acquire addi- tional properties and portfolios from longtime private-sector property owners.”

Washington Property Co. acquires two suburban office buildings for $8 million in MD & VA from Cornerstone

Greysteel promotes W. Kyle Tangney to managing director

3160 Fairview Park Blvd.

for repositioning as a head- quarters location,” said WPC’s Andrew Eshelman , princi- pal-acquisitions. “We plan to gut all systems and renovate the building, then re-lease it speculatively to tenants seek- ing renovated class A space at the lowest class A rental rates.” On the other side of the

Potomac, WPC has acquired 12125 Veirs Mill Rd., a 28,000 SF office building located at the highly-trafficked intersec- tion of Randolph Rd. and Veirs Mill Rd. inWheaton/Glenmont. Built in 1978 and currently 50% occupied, the property was acquired for $815,000 from Cornerstone Realty

6A — April 14 - 27, 2017 — Healthcare/Medical Properties — M id A tlantic

Real Estate Journal


D elaware By Tripp Way, DSM Commercial Delaware Market Rebounding Impressively

A s with many North Eastern markets, Delaware has en-

service lease rates remained relatively stagnant. Given that rental rates are not ex- periencing major changes, it is implied that there has not been, nor is there expected to be, an increase in demand for the construction of new office space. However, based on recent trends, it can be surmised that the office mar- ket will experience positive absorption in 2017. Delaware Retail: Great Real Estate = Great Tenants If you have it, they will come. If you don’t have it, but build it, they will come.

The Delaware retail mar- ket has rebounded impres- sively in the wake of the protracted recession from a few years ago. Significant vacancy levels created by the downturn rapidly evapo- rated, even with the construc- tion of a significant amount of new retail space during that time. The rapid recovery can be primarily attributed to landlord willingness to mod- ify earlier leases to provide struggling tenants the time and latitude to reestablish profitability, and secondly,

the readiness and willing- ness of municipal planners to move new projects through approval processes on an ex- pedited basis. National retailers and res- taurants have flocked to the state to join existing centers, as well as several new major projects, including an expan- sion and renovation of the Christiana Mall, and the development of large projects in Middletown and Dover. Both Middletown and Dover, once considered tertiary or middle-markets by retailers, have evolved into substantive

consumer markets and there- fore, preliminary plans point to developable retail space in these areas. Additionally, the migra- tion of retirees to Delaware, particularly Sussex County, continues to feed an already growing population that de- mands commercial goods and services. This expansive re- tail development and growth cycle throughout the state is expected to continue into the foreseeable future. By Tripp Way is manag- ing partner at DSM Com- mercial. n Public-private partnership could take over economic development A working group of business leaders and state officials sub- mitted its recommendations to Gov. Carney for a public-private partnership that would take over many of the economic de- velopment activities currently handled by the public sector. “I think this report is a very good roadmap,” said Carney, who created the working group by executive order. The report outlines a plan to shift economic development programs from public agencies, such as the Delaware Eco- nomic Development Office (DEDO) , the Delaware Eco- nomic Development Author- ity , and the Council on Devel- opment Finance , to a public- private model. The working title for this group is the Delaware Prosperity Partnership . The partnership would take over many of the tasks that now fall under DEDO. These include attracting investment, market- ing the state as a business cen- ter, recruiting fresh talent, and researching economic trends. It would also work with the county governments and other business groups, such as the Delaware Business Roundtable and the Delaware Chamber of Com- merce . Some public programs, such as small business support, work- force development, and neigh- borhood grants, would remain in DEDO’s wheelhouse. The agency would also continue to admin- ister the Delaware Strategic Funds, which offers low-interest loans and grants to businesses for redevelopment, relocation and job creation. “This should not be seen sim- continued on next page

d u r e d i t s s h a r e o f h a r d s h i p o v e r t h e last couple o f y e a r s , c u lmi n a t - ing in the expectation for an im- provement

Tripp Way

in conditions during 2017. In the last six months of 2016, while the average class A vacancy rate dropped, full

Real Estate Journal — Healthcare/Medical Properties — April 14 - 27, 2017 — 7A


M id A tlantic

D elaware Leasing 4,685 s/f of office and 1.5 acres of training space at 618 Lambson Lane HHA welcomes American Driver Training Academy to Delaware River Industrial Park N ew Castle, DE — Harvey, Han- na & Associates,

American Driver Training Academy recently celebrated the opening of their new facil- ity by hosting an open house and ribbon cutting celebra- tion on Friday, February 24th with the New Castle County Chamber of Commerce. Lo- cal businesses, clients and vendors attended the event which also featured truck demonstrations, door prizes, giveaways, food and refresh- ments. “We are excited to welcome American Driver Training Academy to the Delaware River Industrial Park. Their

business concept is an ideal fit with its immediate proximity to the Port of Wilmington, Delaware Memorial Bridge and access to the full inter- state interchanges of I-95, I-295 and I-495,”said Thom- as Hanna , COO / managing director, HHA. American Driver Training Academy recently opened the new training facility by leasing 4,685 s/f of office and 1.5 acres of training space at 618 Lambson Lane located at the Delaware River Indus- trial Park (DRIP) managed by HHA. n

Inc. (HHA) w e l c o m e d Am e r i c a n T r a i n i n g Driver Acad- emy to the D e l a w a r e River Indus- trial Park in New Castle.

Thomas Hanna

B e c k e r Mo r - gan Group hires Johnson, III as a civil designer Dover, DE — William Johnson, III joins the Do- ver office of Becker Morgan

American Driver Training Academy recently opened the new training facility at 618 Lambson Lane located at the Delaware River Industrial Park (DRIP) managed by HHA



Group as a civil design- er. He gradu- ated with an Associate in Civil Engi- neering Tech- nology from D e l a w a r e T e c h n i c a l

Community College and has over 30 years of professional experience. Johnson worked as an Adjunct Professor for Civil Drafting for 5 years at Dela- ware Technical Community College. His project experience with Becker Morgan Group includes MedCore Partners Physical Rehabilitation Hos- pital in Dover, DE; The Cas- cades in Newark, DE; Seashore Crossing in Georgetown, DE; and Saint Anne’s Subdivision in Middletown, DE. n William Johnson, III Pu b l i c - p r i v a t e partnership . . . continued from page 6A ply as an effort to privatize statewide economic development in Delaware,” the report states. “Privatization is not what the working group is recommend- ing.” The report leaves the door open, however, for the partner- ship to take on more tasks if the State determines it would be more effective. The report highlights the need for transparency, metrics, and investment from both the private and public sides of the partnership. The Delaware Prosperity Part- nership would be structured as a nonprofit and led by 15 board members and two co-chairs (one being the governor and the other a prominent business leader). n

In Line Spaces from 1600sf to 15,700sf / 10,000sf Ready Now! 5 Padsites from 1.4ac to 1.9ac / Approved & Improved Call Madison Rogers 302-429-8700 / MRogers@CapanoInc.com

8A — April 14 - 27, 2017 — M id A tlantic

Real Estate Journal


Save the Date


Speakers Include: Benjamin J. Berger, Esquire Berger Harris, LLP Wills Elliman, SIOR, MCR, CCIM Newmark Grubb Knight Frank J. Gregory Ellis, CCIM Patterson-Woods Commercial Properties/CORFAC International

Jamie V. Vari Jones Lang LaSalle Douglas M. Hershman, ESQ. Cooch and Taylor, P.A. Paul W. Chantler, President, Sovereign Property Management, LLC

Early Bird Rates Available www.marejournal.com

www.marejournal.com F inancial D igest F eaturing A ppraisal S potlight 10-year term and 30-year amortization M id A tlantic Real Estate Journal — April 14 - 27, 2017 — 9A

Secured by mixed-use land site in FL Case Real Estate Capital Funds $12mBridge Loan

CHC secures $12.075 million for PA Holiday Inn Express

will experience robust growth over the next year. Steady in-migration, the aging-in- place of existing cohorts and the presence of important service industries will make this MSA an above-average performer versus other U.S. MSA markets over the long term. Case continues to ramp up investment activities Responding to the middle market’s need for smart situ- ational capital, Case provides financing solutions for a range of transitional assets, includ- ing land, multi-family, indus- trial, retail and office assets. The company concentrates on deals in the $2.5 million to $30 million range for proper- ties located in the metro New York area and South Florida. Its funds can be deployed as note purchases, bridge and acquisition loans or rescue and restructure capital. Case continues to steadily ramp up investment activi- ties, and in 2016, it entered into a joint venture agreement with a New York-based real estate credit fund. “This is our fourth transaction with our JV partner,” added Herrick. n



ing of Prussia, PA — CronheimHo- tel Capital (CHC)

LLC (Case) has funded a $12 million- bridge loan secured by a mixed-use land site lo- cated in Bo- nita Springs, Florida. The

has arranged a c q u i s i - tion financ- ing totaling $12.075 mil- lion for the Holiday Inn Expr e s s & S u i t e s i n King of Prus-

Sanford Herrick

commercial real estate invest- ment firm has a $100+ million lending and purchasing plat- form and is active in South Florida. “This loan provides the borrower with the flexibility and time needed to success- fully execute his business strategy,” said Sanford Her- rick , founder and managing principal of Case, which is headquartered in northern NJ. “At Case, we bring de- cades of experience to complex transactions like this and have particular expertise han- dling assets located in South Florida.” Economic and business forecasts predict that the Fort Myers-Marco Island metro- politan statistical area (MSA)

David Turley

sia. The loan was placed with a national lender for a secu- ritized execution and offered a 10-year term and 30-year amortization. The 155-roomHotel benefits from its strategic positioning near the convergence of four major thoroughfares, I-76, I-276 (Philadelphia Turnpike), US 422, and US 202, which provides convenient access to Philadelphia’s central business district, the capital region’s ex- tensive highway network, and a variety of regional demand generators. It has a desirable select service brand (part of In- tercontinental Hotels Group) with strong in-place cash flows and superior RevPAR penetra-

Holiday Inn

tion levels. David Turley , principal of CHC said that this is CHC’s sixth transaction with this cli- ent and went on to say, “The institutional quality, premium branded, select-service hotel in such an excellent location, in an established market were great marketing points when we were speaking with lend- ers. The property was also recently renovated and had a proven track record. These were all extremely appealing when securing financing for the acquisition.” n

Appraisal Spotlight:

DitioAppraisals....................................................................................................................................................................................................16A ARDAppraisal Company. ................................................................................................................................................................................17A RittenhouseAppraisals.....................................................................................................................................................................................18A SNJAppraisal Institute.................................................................................................................................................................................20-21A MetroNJAppraisal Institute........................................................................................................................................................................... 22A

10A — April 14 - 27, 2017 — Financial Digest — M id A tlantic

Real Estate Journal


F inancial D igest Co-developing property with partners at Metrovest Equities

Palladium Management obtains $11.5 million construction loan with lender Lakeland Bank J erseyCity, NJ — Pal- ladium Management has secured an $11.425

“We’ve assembled a great team,” said Roth, “and we are excited to add this property to our growing portfolio of multifamily assets”. n Windels Marx promotes Deyhle to partner NewBrunswick, NJ — Windels Marx LLP recently announced the promotion of Patrick Deyhle to partner in its New Brunswick office. Deyhle joined the firm shortly after graduating from American University Washington School of Law, where his practice has since focused primarily on rep- resenting lenders in com- mercial real estate financ- ing transactions, including acquisition, construction and permanent mortgage financ- ing, as well as representing lenders in commercial and corporate financing matters. Additionally, Deyhle has experience in working out distressed loans, and docu- menting both restructur- ing arrangements and loan modifications. Deyhle’s clients include banks, financial institutions and other non-traditional real estate lenders. Addi- tionally, he has experience representing developers, owners and investors in the areas of real estate financing, development, acquisitions, dispositions, and commercial leasing. In his new role as partner, Deyhle will continue his representation of real estate finance clients, and expand his work in the areas of commercial real estate financing and development. Deyhle is licensed to prac- tice in New Jersey, New York, Maryland, the District of Columbia and the United States District Court for the District of New Jersey. He earned his J.D. from Ameri- can University Washington College of Law (2007) and his B.S. in Applied Econom- ics and Management from Cornell University (2004). Windels represents domes- tic and international clients in banking and finance, en- ergy and environment, gov- ernment and tobacco inter- ests, healthcare, hospitality, insurance, manufacturing, real estate, technology and intellectual property and transportation. n

asset in an up-and-coming neighborhood in Jersey City,” said David Roth , principal of Palladium Management. Palladium will co-develop the property with its part- ners at Metrovest Equities . Pine Builders will be the project’s general contrac- tor. Metrovest Equities has extensive experience in the McGinley Square submar- ket, having developed two adjacent historic properties into condominiums. Pine Builders has over 35 years of construction experience in New York and New Jersey.

million loan with lender Lake l and Ba n k f o r the deve l - opment of a historic 62- unit rental building in Jersey City’s

David Roth

McGinley Square. “We are happy to be working with Lakeland Bank for the de- velopment of a truly unique and historically significant

McGinley Square, Jersey City

PalladiumManagement would like to sincerely thank: And the entire staff of Schumann Hanlon for all their hard work in arranging and closing the construction financing for The Roxy project in Jersey City, NJ . Gene Boffa Jr., Partner Gene Boffa III, Associat e

62 West 45th Street, 8th Floor New York, NY 10036

O: 646-438-9498 | F: 212-302-5316 www.palladiummgt.com

Real Estate Journal — Financial Digest — April 14 - 27, 2017 — 11A


M id A tlantic

F inancial D igest Refinancing of Quality Inn in Manassas, VA

Merkin & Tropp of Eastern Union Funding represent borrower in $4.35 million loan M anassas, VA — Ea s t e rn Un i on Funding arranged

10653 Balls Ford Rd., at the in- tersection of I-66 and Rte. 234, the 120-room hotel is 17 miles from the Washington Dulles International Airport, and proximate to several Northern Virginia and Washington, D.C. attractions and universities. In other news, EasternUnion Funding arranged $2.25 mil- lion in acquisition and renova- tion financing for ZWL Prop- erties’ purchase of 5000 West Bloomingdale Ave., a 138,000 s/f flex office and warehouse property on 5.1 acres in Chi- cago, IL. n

a $4.35 mil- lion loan with Burke &Her- bert Bank to refinance the Quality Inn i n Mana s - sas. Eastern Union's Da- vid Merkin a n d Ma r c Tropp rep- resented the borrower, a local owner/ operator, in the transac- tion. Located at

David Merkin

Quality Inn

Marc Tropp

HFF arranges $290m financing for mixed-use development NEW YORK, NY — Hol- liday Fenoglio Fowler, L.P. (HFF) has arranged $290 million in financing for the development of 151 East 86th St., a luxury mixed-use resi- dential and retail project in Manhattan’s Upper East Side neighborhood. HFF worked on behalf of the developer, a joint venture between Ceruzzi Holdings LLC (Ceruzzi) and Kuafu Properties (Kuafu), to secure the construc- tion loan with a foreign capital source. HFF previously sourced financing on Ceruzzi’s behalf for its acquisition of the site in 2014. 151 East 86th St. is situated at the corner of 86th St. and Lexington Ave. The project will include a combination of luxury residential totaling 151,500 s/f and two stories of ground-floor retail totaling 30,600 rentable s/f. Complementing the retail base will be 61 luxury condo- minium units averaging 2,485 s/f with top-of-the-line finishes and floor-to-ceiling windows offering sweeping views of the Manhattan skyline and the East River. Resident amenities will include concierge service and 6,500 s/f of amenity space, including a state-of-the-art fitness facility, lounge, rooftop terrace and children’s play- room. Due for completion in first quarter 2019, the build- ing has been designed by HOK Architects with interiors by the renowned design firm Shelton, Mindel & Associates. n

12A — April 14 - 27, 2017 — Financial Digest — M id A tlantic

Real Estate Journal


F inancial D igest

loomf i eld , NJ — Meridian Capital Group negotiated $24 Gilbert &DePasquale of the Iselin, NJ office negotiate $7.7m in ground-up construction financing Meridian arranges $24 million in financing for the acquisition of the Broadacres Office Park B proposed two-year transition period.”

sion options. This transaction was negotiated by Meridian senior managing director, Abe Hirsch , managing director, Matthew Texler and analyst, Paul Kim , who are all based in the company’s New York City headquarters. “The loan structure will allow for this conveniently located asset to achieve its full leas- ing potential through a more focused rebranding program, and more aggressive leasing strategy,” explained Texler. “Additionally, the interest-only structure reduces near term debt service costs during the

Broadacres Office Park, lo- cated at 200, 300, 400 Broad- acres Dr. and 1455 Broad St., totals 396,488 s/f of office space and houses diverse tenants such as Bechtel, Randa Lug- gage, Dewberry and Munzing LLC.

million in fi- nancing for the acquisi- t i on of the Broadacres Office Park p r o p e r t y , l o c a t e d i n Bloomfield. The three-

Abe Hirsch

year loan, provided by a na- tional balance sheet lender, features a floating rate with full-term interest-only pay- ments and two one-year exten-

Broadacres Office Park


62-68 69th St.

In Guttenberg, NJ — Meridian Capital Group ar- ranged $7.7 million in ground- up construction financing for the development of a luxury apartment building. The 18-month construction loan, provided by a balance sheet lender, features full- term interest-only payments and two six-month options to extend the loan. This financing was negotiated by Meridian vice presidents, Paul Gilbert and Emil DePasquale , who are both based in the com- pany’s Iselin office. The future multifamily prop- erty, located at 62-68 69th St. in Guttenberg, is planned to be a six-story, 39-unit luxury apartment building. The prop- erty is one of a kind that will offer state-of-the-art smart home technology, high-end ap- pliances, exceptional interior designs, a fitness center and a vegetated rooftop terrace with outdoor gas fire pits. 62-68 69th Street will be the first property in Guttenberg to offer below- grade onsite secured parking that utilizes car elevators. “The loan was already com- mitted in early 2016, but the borrower decided to enter into contract to sell the property,” said DePasquale. “Nearly a year later, after the sale was not completed, Meridian uti- lized their relationship with the original lender and was able to achieve favorable terms with full-term interest-only payments, despite the change in the lenders underwriting guidelines.” n

“With CPC’s lending expertise I’m not just buying a building, I’m revitalizing the block.”

UNCOMMON EXPERTISE. UNMATCHED IMPACT. communityp.com I 646.822.9356

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