R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news
ISSUE HIGHLIGHTS Volume 24 Issue 13 July 13 - 26, 2012 Binswanger brokers 158,735 s/f NJ sale
IRGINIA BEACH, VA — Skanska USA Civil Southeast announced To complete the 11 th Street Bridge project Skanska USA Civil Southeast, in joint venture, awarded a $90.7m contract V
Light Rail Station near PATH and ferry service to Manhat- tan within the Liberty Harbor Redevelopment District, an 80-acre, 28-block neighborhood that is already home to more than 1,000 new condominium and rental residences, includ- ing 225 Grand, a 348-unit rental building also developed by Ironstate and Kushner Real Estate Group. The partnership expects to complete 18 Park in the fall of 2014. The Boys & Girls Clubs of Hudson County is also expected to open at the same time. “Today’s groundbreaking event is an important milestone for Jersey City as it not only signifies the start of another critical development that will create construction jobs, gener- ate tax ratables and attract new residents to the area, but will also bring us closer to providing a much-needed, modern and safe facility for the Boys &Girls Clubs of Hudson County which will serve the children of Jersey City for generations to come,” said Mayor Healy. ■ change order for the design and construction of all re- maining traffic movements on the 11th Street Corridor to meet the requirements of the Record of Decision and the approved final Environ- mental Impact Statement for the project. Project elements include the removal and replacement of two flyover bridges, the reconstruction of the SE/SW Freeway from an underpass to an at-grade boulevard, and the extension of 12th Street over CSX tracks to connect local streets and improve traffic flow in this area. Work began on June 7 with a scheduled completion in November 2015. ■
that its joint venture with Facchina has been awarded a $90.7 million contract from the D.C. District Department of Transportation to com- plete the 11th Street Bridge Project. When completed, the project will connect the communities along the 11th Street Corridor to each other and the Anacos- tia River and complete the functional and operational re- quirements of the 11th Street Corridor interchange. Skanska’s share of the contract is 70 percent, which amounts to $63.5 million. The project includes a
2B
Camb r i dge - L e e Inds. constructs 200,000 s/f facility
11th Street Bridge Project rendering
And new Boys & Girls Clubs of Hudson County, New Jersey Ironstate Development & KRE Group break ground on 18 Park rental building
8C
Boyle Construction completes 36,000 s/f HQ renovation
JERSEY CITY, NJ—Jersey City, NJ Mayor Jerramiah Healy joined development partners Ironstate Develop- ment Company and Kushner Real Estate Group and of- ficials from the Boys & Girls Clubs of Hudson County to break ground on a new multi- faceted project comprising a 422-unit luxury rental build- ing and a new state-of-the-art facility for The Boys & Girls
10C
Directory
Upcoming Spotlight Brokerage Directory — July 27 th Auction Directory ......................... 4-5A DelMarVa ..................................... 9-14A Financial ................................... 15-21A TriState Organization ................ 22-23A Calendar of Events......................... 28A New Jersey ............................ Section B Pennsylvania ......................... Section C
Shown from left: Gary Greenberg, executive director of the Boys & Girls Clubs of Hudson County; Jeff Persky, executive VP of Kushner Real Estate Group; David Barry, president of Ironstate Development Company; Michael Barry, president of Ironstate Holdings; Jersey City Mayor Jerramiah Healy; Murray Kushner, chairman of Kushner Real Estate Group; and Peter Brennan, Jersey City council president.
Clubs of Hudson County. Designed in collaboration between HWKN Architects andMinno &WaskoArchitects, 18 Park will feature an archi- tecturally-distinctive 11-story building. Occupying the same building but with a separate
entrance and address, the new Boys & Girls Clubs of Hudson County will feature approxi- mately 34,000 s/f of modern classroom and recreational space. The project is rising adjacent to the Liberty Harbor North
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A — July 13 - 26, 2012 — Mid Atlantic Real Estate Journal MAREJ A dvertisers D irectory Advanced Solar Products..............................................BC-B Brahney.............................................................................. 6B Barry Isett & Associates, Inc.......................................... 14C Boyle Construction Management................................... 10C Brasler Properties. ...................................................... IBC-C B.R. Kreider & Son............................................................ 4C Business Card Directory................................................. 27A Bussle Realty Corp............................................................ 1B CBC Bennett Williams.................................................... 25A CBC Bennett Williams...................................................... 2C Cooper Horowitz.............................................................. 19A Cushman & Wakefield....................................................... 3A Deerwood RE Capital........................................................ 6A Elias B. Cohen & Associates........................................... 17A Fitzpatrick Lentz & Bubba............................................. 14C Gerber/Somma Associates..............................................IC-B Greater Reading Economic Partnership.......................... 6C Griffin Land....................................................................... 7C Harvey Hanna & Associates...................................... 11,14A High Associates.................................................................. 7A Hinerfeld Commercial RE............................................... 25A Hutchinson....................................................................... 11B Kaplin | Stewart Attorneys at Law. ................................ 1A Keast & Hood Co............................................................. 13C Landmark Commercial Realty.......................................... 4C Liberty Environmental...................................................... 8C M. Miller & Son................................................................. 3A Marcus & Millicaho RE Investment Svcs.. .................... 10A Mericle Commercial Real Estate Services...................BC-C Meridian Capital Group.................................................. 16A Motley................................................................................. 3A NAI Keystone Commercial & Industrial, LLC. ............... 7C NJ Paving. ......................................................................... 2B NJ SmartStart Buildings............................................ IBC-A Northmarq....................................................................... 11C Penn’s Northeast............................................................... 2C PennCap Properties. ......................................................... 7C Pocono Mountains Economic Development Corp........... 13C Poskanzer Architects......................................................... 5B Providence Engineering Corp........................................... 8C Provident Bank............................................................... IC-A Re/Max of Reading............................................................. 3A Regal Bank.....................................................................BC-A Riker Danzig...................................................................... 2B SEBCO............................................................................... 2B SHAH Electric & Builder.................................................. 7A Sheldon Gross Realty........................................................ 3B Southern New Jersey Appraisal Institute...................... 13B SUBWAY.......................................................................... 25A The Kislak Co.................................................................... 3B Tighe & Cottrell, P.A....................................................... 13A Tranzon Auction................................................................. 5A TriCounty New Jersey....................................................... 9B TriState Realtors Commercial Alliance.......................... 23A Warner RE & Auction Co.................................................. 5A Whitesell............................................................................ 8B Wolf Commercial RE....................................................... 10B
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Mid Atlantic Real Estate Journal
Mid Atlantic R eal E state J ournal Publisher ............................................................................Linda Christman Co-Publisher .........................................................................Joe Christman Section Publisher ..............................................................Michael Campisi Section Publisher ................................................................Elaine Fanning Senior Editor/Graphic Artist ................................................ Karen Vachon Production Assistant ......................................................... Rachel Rugman Office Manager ....................................................................Joanne Gavaza Editorial Consultant .............................................................. Ben Summers Guest Columnist ................................................................... Brian Whitmer 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. 24 Issue 13 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 The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
By Brian Whitmer NJ Multi-Family Development Pipeline Takes Center Stage
T
he development pipe- line has taken center stage in discussions
about theNorthernNewJersey multi-family market heading into mid-year 2012. Cushman & Wakefield’s data indicates that an unprecedented 17,000 units are under construction or have a high probability of seeing a shovel in the ground over the next 36 months. Looking more closely at these projects, more than 8,000 of these units – a full 49 percent of the total – is located along the Hudson River Gold Coast in Hudson and Bergen counties. Within that submar- ket, Jersey City houses two- thirds of this activity. Anecdotally, Gold Coast class A multi-family vacan- cies are in the low single-digit range. The submarket has everything going for it in order to absorb this huge amount of inventory. Provided that Manhattan remains a regional employment powerhouse, the city’s multi-family vacancy rate stays at 1% or less and
rent growth continues, people will either be displaced or choose to live in New Jersey based on its value proposition. The Gold Coast’s proximity and PATH, NJ Transit and ferry connections to New York City make it the most attrac- tive alternative. We may see a short-term impact on class A rent growth in the Garden State as this abundance of new inventory is absorbed. However, we do not anticipate any backtrack- ing. The demand is there, and in the long term, this is a finite market. There are only so many properties that can be built on the waterfront or within a convenient walk to
mass transit. Regarding the non-Gold Coast construction, the ma- jority is occurring near or at train stations. We are seeing an increase of infill develop- ments that are either rehabs of existing structures or involve the reuse of former industrial sites. Even then, the recycling of land in mature markets typically connects to ease of commuting. The logical question circling this sheer amount of develop- ment is “why now?” Today’s momentum can be traced back to mid 2010, when two shifts occurred in lockstep. First, fundamentals began to continued on page 8A
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M id A tlantic R eal E state J ournal Under-performing properties pique investor interest Gebroe-Hammer Associates executes sales totaling $1.48m H JFK Boulevard East and Park Avenue, the township’s busy north-south corridor road- way. the buyer, a long-time client with additional holdings in Hudson County. udson County, NJ—Boasting a high concentration of ex-
They wrote the policy.
We make sure they write the check.
isting class-B and class-C mul t i - fam- ily proper- ties, Hudson County con- tinues to be a steady source o f i n v e s t - ment trading
“As the pipeline of distressed debt and real estate – after- shocks of the Great Recession – continues to flow into the marketplace, investors are weighing the favorable benefits associated with such an acqui- sition,” said Ken Uranowitz, managing director. “In spite of deferred maintenance and other related issues, which of- ten contribute toward an asset’s diminished performance, inves- tors are competing vigorously to purchase these discounted properties with the expectation of adding value over time, and location is always the mantra. And, as rents continue to rise in New York City, tenants who are priced out of Manhattan will continue to seek alterna- tive living options along New Jersey’s Gold Coast.” n room for expansion. The firm will occupy the entire second floor of the six-story property. Frank Lopriore, an execu- tive managing director for Col- liers International New Jersey negotiated the new lease on behalf of ZT Systems. n
The firm’s market specialists also orchestrated a $530,000 short sale of a four-story brick building in Union City. Com- prised of eight two-bedroom units, the property is near Jose Marti Field and St. Michael the Archangel Church and Monastery. “Like many municipalities along the Hudson River shore- line, Weehawken and Union City are commuter hubs where a good majority of the residents rent by choice, a factor that consistently fortifies occupancy levels and attracts investors,” explained Nicholas Nicolaou, sales associate and a member of the brokerage team in the Union City sale. Gebroe-Ham- mer was named the listing bro- ker by the lender and identified ZT Systems outgrew its previous headquarters at 350 Meadowlands Parkway, where it will maintain space for engi- neering, assembly and distri- bution activities, but needed an additional location with
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activity, according to Gebroe- Hammer Associates. The firm recently arranged two sepa- rate transactions, netting a combined $1.48 million for 18 total units, including one ground-floor retail unit. Gebroe-Hammer represent- ed the seller and identified the buyer, a long-time client, in the $950,000 sale of a five- story walk-up in Weehawken. The mid-rise building is stra- tegically situated between
Over $340 Million of Investment Sales to Date in 2012
111 COKESBURY ROAD 729,000 SF JV ADVISORY INDUSTRIAL BUILDING PURCHASE CLINTON, NJ THE LANDINGS AT PINE LAKE 520 UNITS SALE OF GARDEN STYLE APARTMENT COMMUNITY LINDENWOLD, NJ
Secaucus, NJ — Colliers International New Jersey arranged a long-term lease for ZT Group International, Inc. (dba ZT Systems) at 333 Meadowlands Parkway. The new, 23,451 s/f space will serve as the company’s new Colliers International brokers new 23,451 s/f long-term lease headquarters.
100 SCIPARK BLVD. 66,000 SF
RARE DEVELOPMENT OPPORTUNITY $4.5 Million ∙ 33 Acres
SALE OF SINGLE-TENANT OFFICE AND LAB BUILDING EAST WINDSOR, NJ
65 CLYDE ROAD 159,000 SF
75 COMMERCE DRIVE 114,000 SF SALE OF MULTI-TENANT SALE OF MULTI-TENANT WAREHOUSE BUILDING SOMERSET, NJ
1
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60 INDUSTRIAL PARK DRIVE 719,000 SF SALE OF SINGLE-TENANT DISTRIBUTION FACILITY MILTON, PA
The subject property located in Sinking Spring PA (just minutes from Reading, PA) is 33 acres of land and is pre-approved for a three story, 55+, independent living facility with 130 units and 20 more in the future, and 80 townhouse units. Ready to develop. Public Water & sewer.
Eddy Peng, CCIM, CIPS RE/MAX of Reading Office: (610) 670-2770 x3078 Cell: (610) 223-0567 Email: EddyPeng2@verizon.net
A — July 13 - 26, 2012 — Mid Atlantic Real Estate Journal
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M id A tlantic R eal E state J ournal A uctions 4 AUCTIONS REAL ESTATE & EQUIP. DOSWELL, VA XTERIORS CONCRETE PAVERMANUFACTURING FACILITY Located Between Richmond, VA &Washington D.C. – 0.4± Miles o I-95
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1 Auction #1 Consists of 3 O erings (A-C) to be Sold Separately & As An Entirety: TURN-KEY Concrete Paver Manufacturing Facility O I-95 ON SITE SALE: AUG. 2 2 PM 16401 International Street, Doswell, VA 23047 A 27± AC including 15,000± SF Concrete Paver Mfg. Plant, 3,000± SF O ce Building B 2007 AME PFS-1300 “Smart-Line” Stationary Concrete Paver Plant C 2007 Standley Twin-Mixer Batch Plant (1500 & 500 Liter)
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www.marejournal.com M id A tlantic R eal E state J ournal SunTrust Bank leases office space in Glen Allen, VA New Boston Fund and Rer Equities secure 83,414 s/f G len Allen, VA — New Boston Fund, Inc. and RER Equities, Inc.
announced that they have leased 83,414 s/f of class-A of- fice space to SunTrust Bank, Inc. for its mortgage group at WestMark Two in Glen Allen. New Boston Fund and RER Equities own and man- age WestMark Two in the joint-venture partnership, RER/New Boston West Broad Street LLC. WestMark Two is a five-sto- ry, 204,622 s/f office building situated on a 40-acre busi- ness campus. The property features highly-efficient floor
WestMark Two
$3,470,000 Acquisition Monroeville, PA Rite Aid – Retail 13,000 S/F
$5,850,000 Refinance Philadelphia, PA Multifamily 100 Units
$3,900,000 Acquisition Newark, NJ Garden Apartments 90 Units
$2,360,000 Acquisition Newark, NJ Multifamily 45 Units
plates with raised flooring to complement the building’s flexibility, an emergency back- up power system. SunTrust will occupy 41 percent of the building. “SunTrust was drawn to
WestMark Two due to the quality of the building, the convenient location, ease of ac- cess and its many impressive amenities,” said Bruce Levy, CEO of RER Equities. Jeff Cooke, senior vice presi- dent at Thalhimer, handled the assignment on behalf of the RER/New Boston joint venture. Also from Thalhimer, senior vice president N. Dean Meyer represented SunTrust. “WestMark One and Two are excellent assets in our Mid- Atlantic portfolio, said Pat Shooltz, senior vice president and regional director of New Boston Fund’s Mid-Atlantic region. “We are proud to wel- come SunTust to our tenant roster and provide them with first-class property manage- ment services.” n Industrial Investments signs three leases totaling 63,031 s/f Warminster, PA– Indus- trial Investments signed three leases for a total of 63,031 s/f of industrial and warehouse space at several of its Bucks County rental properties. At the NorthAmerican Tech- nology Center in Warmin- ster, Forest Incentives leased 48,366 s/f of warehouse and distribution space. Jim Scott of Colliers International bro- kered the transaction. At the same complex, Bucks County Electric Works leased 8,000 s/f of warehouse space. Terry Quinn, of Quinn & Wilson Realtors brokered the trans- action. The North American Technology Center and Indus- trial Investments were repre- sented by Robert Bown in both of these transactions. At 431 Pike Rd., Hydra- Matic Packaging leased 6,665 s/f of warehouse space. Chris Prajzner of Blough Realty brokered the transaction. Industrial Investments was represented by Bown in this transaction. n
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For additional information on investment opportunities or to submit an acquisition opportunity, please contact Bruce Levy, CEO. Phone (703) 736-3871 E-Mail - Bruce.Levy@rerfin.com
Mid Atlantic Real Estate Journal — July 13 - 26, 2012 — A
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M id A tlantic R eal E state J ournal 100 Franklin Square Drive in Somerset, NJ Jones Lang LaSalle’s Straka facilitates 108,410 s/f sale S
GENERAL CONSTRUCTION
Commercial • industrial • Residential
OMERSET, NJ — Jones Lang LaSalle represented Pacific Controls Inc. in the acquisition of 100 Franklin Square Dr., a 108,410 s/f office building in Somerset. Jones Lang LaSalle senior vice president Shawn Straka represented Pacific Controls in the transaction. They intend to occupy vacant space on the top two floors of the class B property, which is currently 33 percent leased. “It’s extremely encouraging to see a company such as Pa- cific Controls — a global pro- vider of cloud computing ser- vices for energy management — make the decision to invest in New Jersey,” Straka said. “The company, which already occupies space in Somerset, was attracted to 100 Franklin Square Drive due to its prime location and access to a highly educated work force.” 100 Franklin Square Drive is located close to I-287 and Routes 22, 28, 202 and 206. n St. Davids, PA — While most real estate brokers are not willing to share their success with competitors, real estate broker Brett Furman did just that. Furman shared his secrets of success and why his short sales are 85% successful. Fur- man shared his success story to help stabilize the neighborhoods that he works in and help re- duce the local foreclosure rates. “I knew that my lecture would make a huge difference. I am committed to doing anything for my clients and community that will help improve the real estate market,” said Furman. The lecture included the re- sults from a five month short sale study that he conducted with the help of a Villanova intern. The study analyzed troubled real estate in Chester, Montgomery, DE and Philadel- phia County. “I noticed that the suburban Philadelphia market experienced this fragility late in the game,” said Furman. “Suburban Philadelphia may have been the last market in the country to be affected. However, our real estate market is one of the most stable markets in the country. When market values are improving we never get the spikes and when the market softens we don’t experience the rapid declines.” n RE/MAX broker shares success secrets with competitors
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A — July 13 - 26, 2012 — Mid Atlantic Real Estate Journal
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M id A tlantic R eal E state J ournal
continued from page 2A NJ Multi-Family Development Pipeline Takes Center Stage . . .
llentown, PA — Alvin H. Butz broke ground on the 50,000 Located at 824 & 830 Hamilton St. in Allentown, PA Alvin H. Butz breaks ground on 50,000 s/f expansion A
A transactions per year. In 2012, we have seen a num- ber of generational sellers put properties on the market. They believe that pricing is peaking and are uncertain about what the capital gains tax is going to look like moving forward. The market also is ripe with REIT and institutional sellers choos- ing to exit non-core properties and those they purchased be- fore the recession and now can sell at a profit. Active buyers include a diverse mix of insti- tutions, private investors and opportunity funds. Equity capital loves mul- tifamily. While the economic recovery may well be under way, investors still see retail, office and industrial p roperty as a relatively more risky asset class. Multifamily is accepted as the “safest” hard asset invest- ment alternative, and, histori- cally, the returns appreciation have been more stable than the other commercial sectors. Additionally, the propensity for successful professionals to rent has increased. Some are transient and do not want to establish roots, while others may not have the 20 percent down payment needed to secure a mortgage. A growing number of qualified would-be buyers have seen home-owning family members and friends struggle during the past few years. So whether due to an aversion or inability to buy, the pool of pro- spective multi-family residents has deepened. These factors all have con- tributed to a greater share of in- vestment capital being shifted into multifamily versus the other real estate asset types. As we head into the heart of 2012, transaction volume is picking up. This, along with Northern New Jersey’s incredible devel- opment pipeline and impressive fundamentals, will keep the regional multifamily market among the most interesting industry discussion topics for foreseeable future. Brian Whitmer is senior director of the Metropoli- tan Area Capital Markets Group of Cushman&Wake- field, Inc. in East Ruther- ford, NJ. n
improve. Since then, vacancy rates have declined to their current rate of 3.9 percent, according to REIS, which mir- rors pre-recession levels. This, in turn, has driven rental rates to the highest point in recorded history, per REIS. The average Class A rent currently is $1,973. The previous peak, of $1,968, oc- curred during the third quar- ter of 2008. Northern New Jersey recorded 2.4 percent rent growth in 2011; this ranks first in the Northeast out of 15 metropolitan areas and fourth in the entire United States. Simply put, New Jersey is in a good place in terms of fun- damentals. Second, debt and equity capital, as well as construction financing, came back into mul- tifamily and quickly picked up pace. Fannie Mae and Freddie Mac are lending on existing assets, with rates that are all-time lows in the 3% range depending on loan term. This is creating a yield arbitrage for buyers coming into multifam- ily. We also have seen local and regional banks become more aggressive to compete with the agencies. This com- bination of available financ- ing at rates that continue to decline has created cap rate compression that is driving up pricing. Since the first quarter of 2010, cap rates for Class A product have largely remained between 4.5% and 5.0%. When owners see this appreciation, it fuels their motivation to sell. The result? Aperfect storm for stepped-up property transac- tion volume. WHY DO INVESTORS LOVE MULTIFAMILY? In 2010, 10 multi-family sales in excess of $10 million in size, totaling $523 million, closed in Northern New Jersey; three involved Class A properties. In 2011, 13 transactions total- ing $825 million closed; nine involved Class A assets. This year, New Jersey seems in line for volume somewhere in be- tween, with one or two Class A trades per half year. Looking back nearly a decade, New Jer- sey sees on average three class
s/f, class-A office and retail expansion located at 824 and 830 Hamilton St. The expan- sion is Phase II of the Butz Corporate Center project. Butz will pursue Leader- ship in Energy and Envi- ronmental Design (LEED) Certification. The building will be de- signed by Roberson Butz Architects and built by Alvin H. Butz Inc. “This day is very significant to our company’s future. We see a great opportunity here for other companies looking to do business in Pennsylvania,” says Greg Butz, president NEW CASTLE, DE — Del- aware’s first Yogen Früz, con- structed by Emory Hill & Company, will be opening in Christiana Mall in the Tar- get courtyard just in time for summer! The innovative new store of- fers patrons a “mix it” yourself frozen yogurt and sorbet bar in which patrons select a low- fat frozen yogurt or fat-free sorbet and then choose from a large variety of fruits (like mango, pineapple, raspberry, kiwi, watermelon and more) or other toppings (including Oreo, Cap’n Crunch, granola and dark and white chocolate shavings) which are then blended to create customized frozen creations. Yogen Früz will also offer self-soft serve. Co-owners Michael Geon- notti of PA and Ron Perruzza of Toronto own several stores in the Tri-State area and plan to open more stores in Delaware once the mall store is underway. “We’re excited to be in the First State and
824 and 830 Hamilton St.
and CEO. “We look forward to filling our expanded building with high quality businesses
that can reap the rewards of being located in downtown Allentown.” n
Emory Hill Builds “Yogen Früz” in Christiana Mall
Yogen Früz interior
of their local knowledge and 30 years of commercial con- struction expertise. “We look forward to a long-standing re- lationship with Emory Hill in years to come,” Geonnotti said. “They have been outstanding to work with every step of the way, giving us the personal- ized attention we needed.” n
know the mall store will be a tremendous success, and we look forward to opening more stores throughout Delaware,” said Geonnotti. He said he and his partner chose Emory Hill & Company as the construction manager and general contractor for the 543 s/f mall store because
TRENTON, NJ—Acompre- hensive study by the Edward J. Bloustein School of Planning and Public Policy at Rutgers, The State University of New Jersey and commissioned by the New JerseyApartmentAs- sociation (NJAA), analyzes the economic contribution of the multi-family apartment indus- try to the New Jersey economy and concludes that the apart- ment industry – comprising over 500,000 rental units in 5+ unit buildings – is a significant NJAA commissions New Jersey multifamily economic study component of the New Jersey economy. The study estimates that in 2010, the industry di- rectly or indirectly supported over 44,000 jobs (1.2% of the state’s total employment), contributed $5.7 billion to the State Gross Domestic Product (GDP), generated over $1 bil- lion in local tax revenues, and $140 million in tax revenue to the State of New Jersey. The NJAAcommissioned the Bloustein School to perform a comprehensive economic analysis of the apartment industry in order to provide officials and the industry with the insights required for future effective long-range housing policy planning. One-third of New Jersey’s working families, young cou- ples and seniors – some three million people – call apart- ment living “home.” The economic impact of the multi-family housing industry in the Garden State goes well beyond that of its employees. n
Baltimore, MD — RMS Omega Technologies Group leased 6,160 s/f at 9635 Phila- delphia Rd. Middleton Smith, Richard Blue, Jr., SIOR and Paul Obrecht, III, SIOR of Blue & Obrecht Realty, LLC represented the tenant, and Beetle Smith and David Lin- Blue & Obrecht Realty handles 7,420 s/f ton of RKS Realty represented the landlord. Hill, Barnes & McInerney, LLC leased 1,260 s/f of office space at 1643 Liberty Rd. in Eldersburg. Patrick Smith of Blue & Obrecht Realty, LLC represented the landlord, Lib- erty, LLC. n
Mid Atlantic Real Estate Journal — July 13 - 26, 2012 — A
www.marejournal.com
anover , MD — Cushman & Wake- field has arranged the 125,000 s/f industrial property on 14.05 acres Cushman & Wakefield arranges $8.25 million sale of industrial building in Hanover, MD H
sale of 7495 Race Road, a 125,000 s/f industrial property on 14.05 acres in Hanover, Maryland. The property was acquired by Exeter Property Group of Plymouth Meeting, Pennsylvania for $8.25 mil- lion. The Cushman & Wakefield team was led by Cristopher Abramson, Brian Kruger and Nicholas Signor of the Capi- tal Markets Group, along with the Industrial Services team of Michael Elardo, SIOR and Jared Ross. Cushman & Wakefield arranged the sale on behalf of the undisclosed seller. At the time of sale, the Rockville, MD — The DonaldsonGroup, LLC (TDG) has completed $6 million in renovations at Heather Hill, a 459-unit rental apartment community that it acquired in December of 2010 with eq- uity partner Angelo, Gordon & Company. Further renova- tions are underway. All Heather Hill residents now benefit from brand-new amenities including a fit- ness center, business center, and youth education/activ- ity room. Refurbished apart- ments have modern kitchens with stylish countertops, updated bathrooms with wa- ter-conserving features, new carpeting, individual washer- dryer units, new windows and sliding doors, and new balcony railings. All of the second-story apartments fea- ture dual wood-burning fire- places and oversized walk-in closets. TDG upgraded the community’s mechanical, electrical, and plumbing sys- tems as well as the buildings’ facades. Heather Hill’s apartment homes comprise a mix of one-, two-, and three-bed- room units ranging from 610 to 1,236 s/f, each one
7495 Race Road
building was 100% vacant. 7495 Race Road was built
in 2008. Located immediately off of 295 in Hanover, the
Mall and the BWI Marshall Airport. n
property offers easy access to Route 100, I-95, Arundel Mills
The Donaldson Group finalizes $6 million in renovations
DRV acquires 120,000 s/f fully occupied office building
7700 Hubble Drive in Greenbelt, MD
Bethesda, MD—Diversi- fied Realty Ventures (DRV) has acquired a 120,000 s/f secure office building in Greenbeltad- jacent to NASAGoddard Space Flight Center. The seller, rep- resented by Transwestern’s Robert Filley, was C-III Asset Management, LLC, as special servicer for the former mort- gage lender. The acquisition is subject to a ground lease that runs through 2075 with pos- sible extensions. Greentec IV, located at 7700 Hubble Dr., is fully occupied by government employees and contractors working on the Joint Polar Satellite System (JPSS). JPSS is the next-generation multi-functional satellite sys- tem intended to replace today’s long-range weather satellites. In addition to weather moni- toring and forecasting, JPSS will have advanced research
and defense capabilities. The first JPSS satellite is expected to be launched in 2017. JPSS is a joint mission of NASA, NOAA, and the Department of Defense. Government contrac- tor TRAX International has leased Greentec IV on behalf of the JPSS program. “We seeGreentec IVas a long- termhold,” said Elliot Liffman, principal, DRV. “JPSS, like any mission-oriented user, is a finite tenant. But even when the JPSS mission is complete, the building is well-positioned to attract new tenants. While the Greenbelt office market as a whole still has a long way to go toward full economic recov- ery, this building’s specialized infrastructure and close prox- imity to Goddard -- which is space-constrained by its mas- ter plan-- provide significant competitive advantages.” n
Heather Hill
featuring a private balcony or patio. Heather Hill is the only property in the area that offers three-bedroom, two- bath apartments, and also is the only one in which all two-bedroom units have two bathrooms. TDG executive vice presi- dent Carlton Einsel said: “We are pleased to offer spa- cious and beautifully reno- vated apartment homes to residents of Prince George’s County, where they can enjoy convenience and amenities at affordable rental rates.” Heather Hill comprises 18 low-rise buildings situated on
21 park-like wooded acres. In addition to the newly reno- vated community building with its fitness, business, and youth activity centers, the property offers an Olympic- size swimming pool and wad- ing pool, basketball court, and an onsite Metrobus stop. Heather Hill is easily acces- sible to I-495 and is located just a short distance from shopping, entertainment, and major employment cen- ters including National Har- bor, Suitland Federal Center, Joint Base Andrews, Joint Base Anacostia-Bolling, the Washington Navy Yard, and many more. n
10A — July 13 - 26, 2012 — Mid Atlantic Real Estate Journal
MARE journal.com
D el M ar V a
ATTENTION: Architects & Engineers
ERNDON, VA—Lib- erty Property Trust has completed a lease Brad Davis of CBRE represents lessee Liberty Property Trust leases 86,873 s/f, class A space to NVCC H
Promote your company, projects and expertise in MAREJ ’ s annual Spotlight
with Northern Virginia Com- munity College for 86,873 s/f of class A office space across three buildings at Pender Business Park. The agreement raises campus occupancy from 44% to 96%. “We are delighted to have Northern Virginia Community College as a new tenant within our portfolio,” saidMike Jones, VP and city manager for Liber- ty in the Greater Washington, DC region. “While the north- ern VA office market remains soft, the college’s decision is recognition of the value and quality that Pender Business Park has to offer.” Middletown, DE – NAI Emory Hill agent Paul Bryant helped to find a location for an indoor sports arena. The new Middletown Sports Complex will be located at 938 Middletown Warwick Dr, the former home of Bob Wagner’s Flooring showroom and ware- house. The complex will house several fields, one of which will be a large multi-purpose field that can house a variety of
Publication July 27, 2012 Deadline July 17, 2012
Contact: Michael Campisi for more information
800-584-1062 x208 mcampisi@marejournal.com
Pender Business Park
The three locations that Northern Virginia Community College will occupy at Pender Business Park include all of Pender III (3924 Pender Dr.; 26,508 s/f) and Pender IV (3922 Pender Dr.; 46,482 s/f)
as well as 13,883 s/f at Pender II (3926 Pender Dr.). Brad Davis of CBRE repre- sented NVCC; Rob Walters, Mike Shuler, Nate Krill of Avison Young represented Liberty. n Laity, COO and Scott Lobdell, president, all have elementary school aged children who play on traveling soccer teams and have had to travel, along with their peers, long distances to play or even practice various sports. Laity hopes the arena will prevent many Middle- town athletes from being lost to other clubs out of the area and strengthen sports teams here. n
Taylor | Zang | Munley | Dougherty of
NAI Emory Hill finds space for new Middletown Sports Complex sports including soccer, base- ball and lacrosse.
CFO Brian Ellis, one of the owners, said they hope to have a soft opening at the end of June and hold several grand openings in July or August – one for each of their main sports. “We realize how much sports are needed in town,” El- lis said. “There is nothing like this in 30 miles.” Ellis and partners Brian
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FIRST NIAGARA BANK [Ground Lease] 70,131 GLA North Huntingdon, PA $1,683,000 1HZ WINSLOW PLAZA */$ Sicklerville, NJ $7,125,000 2FFXSLHG*URFHU\6KDGRZ $QFKRUHG&HQWHU +LJK/HYHUDJH,QWHUHVW2QO\/RDQ WEST MARINE CENTER 14,060 GLA Mount Laurel, NJ $2,900,000 2FFXSLHG$OO7HQDQWVRQ11 /HDVHV 0DMRU5HWDLO&RUULGRULQ6RXWKHUQ1HZ -HUVH\ 7UDIÀF&RXQWV([FHHGLQJ */$ Lexington, VA $2,155,000 1HZ EDitoRiAL DEADLinES ARE 14 DAyS PRioR to PuBLiCAtion DAtE Brokerage Directory Spotlight | July 27 Deadline: July 17 Multifamily Financing Spotlight | August 17 Deadline: August 3 Commercial RE Law Spotlight | August 31 Deadline: August 17 Editorial Requirements: Press releases and announcements: 250 words with photo. Expert articles: 460 words with photo. Expert articles (for spotlights): 500 words with photo. Mid Atlantic R eal e state J ouRnal , P.O. Box 26 Accord, MA 02018 312 Market St., Rockland, MA 02370 (overnight) Phone: 800-584-1062 x 202 lchristman@marejournal.com • www.marejournal.com NJ Broker: Michael Fasano (michael.fasano@marcusmillichap.com 201-582-1000) MD Broker: David Feldman (david.feldman@marcusmillichap.com 202-536-3700) VA Broker: David Feldman (david.feldman@marcusmillichap.com 202-536-3700) Mid Atlantic Real Estate Journal — July 13 - 26, 2012 — 11A www.marejournal.com D el M ar V a 12A — July 13 - 26, 2012 — Mid Atlantic Real Estate Journal www.marejournal.com Commercial-Industrial Realty Council www.circdelaware.org OFFICERS President & Legislative Affairs Chair J. Gregory Ellis Patterson-Woods Commercial Properties Vice President & Program Committee Chair John Birmingham Cushman & Wakefield of Delaware, Inc. Treasurer Katherine L. Silicato, CPA Gunnip & Company, LLP Secretary Bayard J. Snyder, Esq. Bayard & Associates DIRECTORS Jeremy Abelson WSFS Bank Amelia Julian Eastern States Group Education Committee Chair Dan Lesher Patterson Woods & Assoc. Membership Committee Chair James Manna BrightFields, Inc. Jim O’Hara Jim O’Hara Realty Assoc. Donald Robitzer The Commonwealth Group Bert Root, V Newmark Knight Frank Smith Mack Marvin Sachs Bellevue Realty Co. EX-OFFICIO (NON-VOTING MEMBERS) Business Manager Janet Sharpless Pippert CIRC Landmark JCM Legislative Lobbyist C. Scott Kidner C. S. Kidner & Associates New Castle County Economic Development Liaison Karl Kalbacher, P.G New Castle County Director of Redevelopment Bob Chadwick, Director New Castle County Economic Development Council State of Delaware Economic Development Liaison Jeff Stone State of Delaware, DEDO City of Wilmington Economic Development Liaison Jeff Flynn City of Wilmington, Office of Economic Development Mid Atlantic Real Estate Journal — July 13 - 26, 2012 — 13A www.marejournal.com Commercial-Industrial Realty Council www.circdelaware.org BOG TURTLE TIME www.LandmarkJCM.com %RJ7XUWOH6WXGLHV3KDVH,,
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