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R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news

ISSUE HIGHLIGHTS Volume 24 Issue 11 June 8 - 21, 2012

Consisting of four properties totaling 1,106 units Beech Street Capital provides $68m to refinance PA & DE apt. portfolio

Development of the Month

oston, MA — Beech Street Capital provided $68 million in Fannie Mae conventional loans to refinance four properties lo- cated in Conshohocken and Philadelphia, Pennsylvania, and Newark and New Castle, Delaware. Brian Sykes, vice president out of Beech Street Capital’s Boston office, origi- nated the transaction. The repeat borrower, the Gal- man Group, approached Beech Street looking to lock in histori- cally low interest rates on four properties in their portfolio that would be maturing over the next year. The properties were encumbered with loans each having a different date on which it could be repaid without penalty, with the payoff dates ranging from a few months to over six months. Beech Street B

rate locking the loans under a standard closing,” said Sykes “This transaction illustrates how well the Fannie Mae for- ward rate lock program can work and confirms that it can be an effective tool to allow borrowers to lock in low rates while at the same time being able to reduce or eliminate prepayment penalties.” The portfolio consists of four properties totaling 1,106 units in the Philadelphia-Cam- den-Willington MSA. North Lane with 101 units is in Conshohocken, Sedgwick Sta- tion with 93 units is located in Philadelphia, Buckingham Place with 278 units is located in Newark, and Castlebrook with 634 units is in New Cas- tle. The fixed-rate loans have a 10-year term with 9.5 years of yield maintenance. n

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worked closely with Fannie Mae and suggested the forward rate lock program, allowing the borrower to take advantage of the current low interest rate environment while reducing the prepayment penalties. “The Beech Street team

exceeded our expectations with their expertise and re- sourcefulness,” said Sam Goldstein, chief financial of- ficer at the Galman Group. “Beech Street was able to give the borrower an “all-in cost,” which was about the same as

Appraisal Institute Spotlight

AvidanManagement announces 304,000 s/f lease transaction at 99 Hook Road in Bayonne, NJ

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MBCEA awards Hance Construction

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99 Hook Road

BAYONNE, NJ — Avidan Management announced a lease transaction at 99 Hook Rd. RPM Warehouse has renewed a lease for 304,000 s/f of space at the premier industrial facility. “We’re extremely pleased that RPM Warehouse has made the decision to remain at our Bayonne facility,” said Avi Avidan, managing mem- ber of Avidan Management. “As one of the most active and well-established warehousing and transportation companies operating in the port area, RPM is exactly the type of high-quality tenant that we

value.” Situated on 20 acres of land, 99 Hook Road is a 500,000 s/f facility that is located on State Rte. 169. The facility features rein- forced concrete floors, gas-fired space heaters, 40-by-40-foot column spacing, 24-foot ceiling heights, 50 exterior doors with dock levelers, three interior doors, 10 rail doors and ample secured parking. Offering dual feed electric power and gas, the facility provides 400 amps of power per section, and fea- tures an early suppression fast response sprinkler system. Avidan will soon embark on

a site upgrade at 99 Hook Rd. that will include the creation of two new access points. (In addition to the current en- trance on New Hook Road, RPM and other tenants will now be able to access the building from Route 440 and Lafante Way.) The lease transaction leaves just two large-scale avail- abilities remaining inAvidan’s portfolio. The company is cur- rently marketing a 242,000 s/f space at 145 Talmadge Road, a distribution facility in Edison that features a 4.24-megawatt solar electric system, among other amenities. n

Directory

Auctions....................................................6-7A DelMarVa.............................................. 11-18A Financial Digest Featuring the Appraisal Institute........... 19-28A New Jersey.........................................Section B Pennsylvania......................................Section C

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