R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news
ISSUE HIGHLIGHTS Volume 25 Issue 5 March 15 - 28, 2013 1031 Exchange www.marejournal.com MidAtlantic RealEstateJournal—1031Exchange—March15-28,2013—15A
A 674 bed student housing complex at Rutgers University McKinney Properties completes Rockoff Hall acquisition in New Brunswick, NJ
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M id A tlAntic R eal e state J ouRnal 1031 E xchangE
ew Brunswick, NJ — McKinney Properties , a na-
Properties acquired Rockoff Hall through an institutional joint venture with Virtus Real Estate Capital, a leading pri- vate equity real estate spon- sor. Investor’s Bank provided a $44.1 million fixed-rate five year mortgage. Rockoff Hall was built in 2006 and is affiliated with Rutgers University. At the time of construction, Rockoff Hall was hailed as introducing luxury student housing to the Rutgers campus and remains one of the premier student housing assets in the State of New Jersey. n
tional student housing owner and operator acquired Rockoff Hall, a 674 bed high-rise stu- dent housing complex which serves Rutgers University, the State University of New Jersey. Located in downtown New Brunswick, Rockoff Hall is walking distance to the Col- legeAvenue and Cook Douglas Campuses and adjacent to the Bloustein School of Public Policy and Planning. In January 2013, McKinney Red Bank, NJ — The New Jersey office of Berkadia Commercial Mortgage LLC (Berkadia) recently closed two deals totaling $89.50 mil- lion in financing for multifam- ily properties located in Rhode Island and New Jersey. High- lights include: Senior vice president Robert Lipson originated $48 million in financing through Fred- die Mac for Regency Plaza, a luxury apartment complex located in downtown Provi- dence, RI. Lipson worked with borrower Chestnut Hill Re- alty to originate the 10-year, fixed-rate loan. The loan was used to help refinance an exist-
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Berkadia arranges $90 million in financing for multifamily properties in RI and NJ
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Regency Plaza
Barclay Square at Princeton Forrestal
Directory
ing mortgage on the 444 unit property, originally provided by Berkadia and Freddie Mac in 2008. “Berkadia has a long-stand- ing relationship with Chest- nut Hill Realty, and with the help of Freddie Mac, we were able to secure historically low interest rates in a short period of time,” said Lipson. “We were pleased to work on this transaction, especially with the recent renovations to the common areas of the property and the continued unit upgrades.”
Lipson also arranged a $41.50 million loan through Freddie Mac for Barclay Square at Princeton Forrestal, an apartment community lo- cated in Princeton Twp., NJ. He worked with Kenneth Pizzo, Sr. , principal of the borrowing entity, to originate the 10-year, fixed-rate loan, which was used to refinance an existing loan on the property originally provided by Berka- dia and Freddie Mac in 2003. The apartment community, which totals 220 units, fea- tures two- and three-bedroom
apartments with up to 3,000 s/f of living space in ranch or townhome style residences. Each residence also includes a one- or two-car private, heated garage and access to the prestigious 1900 Club. The apartments are currently 99 percent occupied. “Mr. Pizzo and his family have built a true, class A prop- erty in the Princeton area,” Lipson said. “We at Berkadia were very happy to work with him again on longer term financing for this wonderful community.” n
Financial. .................................. 11-28A DelMarVa.................................... 7-10A New Jersey............................. Section B Northern NJ Spotlight. ................ 5-12B Pennsylvania.......................... Section C Central PA....................................5-12C
www.marejournal.com Upcoming Spotlight Best of 2012
inside cover a — March 15 - 28, 2013 — Mid Atlantic real estate Journal
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Fox Rothschild Expands Real Estate Practice in New Jersey with Eight-Attorney Team In a move that bolsters our already significant Garden State presence, we are pleased to welcome Robert A. Klausner, Deirdre E. Moore and Christopher M. Rider – all noted by Chambers USA as leading real estate attorneys in New Jersey – as partners, along with Grace J. Shin and Mat D. Carlson also as partners, and as associates, Jennifer L. Solberg, Joshua J. Franklin and Corey D. Kaplan. This team possesses not only an extensive knowledge of the state’s real estate market but also a solid history of assisting leading real estate developers and nationally recognized companies as they cultivate and grow their real estate portfolios. With three offices currently in New Jersey – Roseland, Princeton and Atlantic City – and a new location slated to open this summer in Morristown – along with a bench strength of more than 150 attorneys statewide, we are solidifying our connection with and commitment to our clients in the Garden State.
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2A — March 15 - 28, 2013 — Mid Atlantic Real Estate Journal MAREJ A DVERTISERS D IRECTORY 1031 Accommodators, LLC ..............................................28A Allied 1031 Exchange ......................................................25A Arcus Design Group........................................................ 14C Asset Preservation Inc.....................................................23A Auction Directory ...............................................................5A Axxcess Capital ................................................................21A B.R. Kreider & Son ......................................................... 10C Barton Partners ............................................................ FC-C Benchmark Construction Co. ........................................... 9C BL Companies ................................................................... 9C Brasler Properties.......................................................... 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IC-B CBRE ................................................................................. 2C Cooper Horowitz...............................................................13A Cooper Pest Solutions ..................................................... 15B Covington Realty Partners ..............................................21A Cushman & Wakefield New Jersey.................................. 7B Cushman & Wakefield .....................................................11C Dietrick Group, LLC ......................................................... 2C Earth Engineering .....................................................3B,10C The Kislak Co.................................................................... 4B Eastern 1031 Starker Exchange .....................................18A Exchange Solutions..........................................................16A Exchange Strategies Corp. ..............................................19A Feinstein•Raiss•Kelin & Booker, LLC............................ 1B Fox Rothchild, LLP ............................................................1A Greater Newark DE...........................................................8A GREP ................................................................................. 3C Hartz Mountain ................................................................ 8B Harvey Hanna & Associates.........................................9,31A Hawley Realty ................................................................. 13C Heller Industrial Parks .................................................... 3B Hinerfeld Commercial RE .................................. 31A, IBC-C HSC Builders & Construction Managers ...................... 14C ICREW NJ....................................................................... 16B Investment Property Exchange Services........................22A Kaplin Stewart ...................................................................2A Keast & Hood Co............................................................. 14C KW Commercial .............................................................. 13C Landcore Engineering Consultants ................................. 4C Landmark Commercial Realty ......................................... 7C Liberty Elevator Corporation ......................................... 15B LMS Commercial RE ..................................................... 8,9C M Miller & Son...................................................................6A Max Spann .........................................................................4A McKinney Properties .........................................................3A McMahon Transportation Engineers & Planners ........... 4C Mericle ........................................................................... BC-C Motleys.com........................................................................5A NAI Geis Realty Group..................................................... 1C NAI Summit ...................................................................... 2C Nicholls Auction Marketing Group ...................................6A NorthMarq......................................................................... 6B Onorati Construction ...................................................... 10B P. Cooper Roofing .............................................................. 9B Penn’s Northeast............................................................... 2C PennCap Properties .......................................................... 3C POA.................................................................................. 13B Poskanzer Skott Architects .............................................11B Precis Engineering.......................................................... 14C Provident Bank .............................................................. IC-A Real Property Capital ......................................................12A Real Time Technology Group.......................................IBC-A Regal Bank ........................................................... BC-A, 12B Riverside 1031..................................................................24A ROCK Commercial RE...................................................... 6C Rose Metal Systems .......................................................... 9C SEBCO............................................................................... 2B Sheldon Gross Realty........................................................ 2B Stafford Smith Realty ......................................................31A Subway .............................................................................31A Target Building Construction......................................... 14C The Bancorp .....................................................................17A The Green Group ...............................................................6A Thompson Management, LLC..................................31A, 2B Tranzon Auction .................................................................5A Warfel Construction .......................................................... 4C Whitesell......................................................................... IB-B www.1031tax.com.............................................................20A
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Mid Atlantic R eal e state J ouRnal Publisher ............................................................................linda christman Section Publisher ................................................................elaine fanning Section Publisher ....................................................................Steve Kelley Senior Editor/Graphic Artist ................................................ Karen Vachon Office Manager ...................................................................Joanne Gavaza Guest Columnist .......................................................... amy Hawley, Sior Mid Atlantic R eal e state J ouRnal ~ Published Semi-Monthly P.O. Box 26 Accord, MA 02018 (Mail) 312 Market Street, Rockland, MA 02370 (Overnight) Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, P.O. Box 26, Accord, MA 02018 USPS #22-358 | Vol. 25 Issue 6 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 Amy Hawley, SIOR Is Your Workplace Relevant in Today’s Business Environment?
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side from recent eco- nomic trends, business office and administra-
tive operations that support manufacturing facilities have undergone several significant changes over the past sev- eral years. As corporations have downsized there is an increased focus upon creating a workplace environment that will enhance productivity and foster an environment that enables skilled professionals to cope with the level of stress that has become integral of the demands of a global economy. Asummary of the changes that affect the modern workplace is as follows. • 4 Generations: Most work- places are comprised of a multi-generational workforce comprised of diverse ethnici- ties from various countries. A progressive and relevant workplace must embrace di- versity and accommodate the different needs and expecta- tions of people that have a va- riety of professional expertise
and life experiences. • Working Outside of Tradi- tional Settings: Companies are achieving optimal performance by accommodating skilled pro- fessionals who spend more time collaborating, learning, and gathering in meeting rooms, training rooms, and team spaces to exchange ideas. Dedicated workstations are decreasing in use. Workers tend to now be more mobile within the office setting. The result is a more efficient use of space within the business setting. • Shrinking Work Stations: Over the past 30 years, work- stations have decreased in size
by about 40%. The height of modular office units has gone from 66” to 42”. This height re- duction has encouraged more interaction amongst employ- ees and allowed more natural light to enter the majority of the open office area. Shared space is more cost-efficient and it conforms to the “green” design trend that is so preva- lent today. • Collaboration and admin- istrative functions can happen anywhere: Professionals in- creasingly work in places other than the traditional office setting. Technology enables workers to access the infor- continued on page 16A
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A — March 15 - 28, 2013 — Mid Atlantic Real Estate Journal www.marejournal.com M id A tlantic R eal E state J ournal A uctions
Diverse, statewide property inventory set for March 27 auction Twenty New Jersey properties headed for auction
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LINTON, NJ — Mixed- use properties, farm land, commercial build-
estate markets. “These properties all rep- resent income-producing op- portunities. What’s exciting about this portfolio is that it can appeal to different buyers with different visions,” said Max Spann, Jr. , president and CEO of the firm. “We have something for everyone.” Spann pointed to properties up for auction, including farm- land and open tracts adjacent to major highways that are ripe for development. “There’s some considerable flexibility with these proper- ties,” Spann said. “The right buyer is going to carve out a
vision and transform these sites to their fullest potential.” Properties up for auction are listed by county starting in the Northern part of the state. Morris County : Mount Olive – a 1,649 s/f professional build- ing at 22 Plaza Rd. Roxbury – a 62.18-acre property at intersection of Interstate 80 and Rte. 206 North. Hudson County : West New York – a 7,870 s/f mixed use building at 630-632 61st St. Sussex County : Franklin – a 3,542 s/f office building at 49 Main St. Passaic County : Paterson – a three-bedroom, two-bathroom Colonial at 26 Rose St. Hawthorne – an 8,800 s/f com- mercial building at 17 Passaic Ave. Warren County : Blairstown – a 4,200 s/f professional build- ing on 3.21 acres located at 143 Rte. 94. Great Meadows – a 33.29-acre farm at 20 Hope Rd. (minimum bid $200,000). Great Meadows – a two-bed- roomCape Cod income producer at 19 Hope Rd. Holland – a 49-acre farm with barn and well and the potential for subdivision (minimum bid $150,000) on Rummel Rd. Knowlton – a 9.57-acre farm at 3 Brands Rd. Essex County : Irvington — a 6,000 s/f mixed use building located at 219 Orange Ave. Montclair – a three-bedroomCo- lonial home at 11 Amelia St. Hunterdon County : Beth- lehem – a 2,059 s/f new office building at 1030 Rte. 73. Union County : Kenilworth – a 4,500 s/f industrial building at 745 Lexington Ave. Middlesex County : South Brunswick – a 18.059-acre property just off Rte. 1 at 0 Campus Dr. Monmouth County : Middle- town — a 7,800 s/f former day care center on main artery, 18 Kings Highway (minimum bid $250,000 Camden County : Somerdale – a 4,430 s/f mixed use commer- cial building at 301 N. White Horse Pike. Atlantic County : Hammon- ton – a 26.51-acre property with motel at 734 White Horse Pike. Burlington County : Burling- ton Twp. – a 14.52-acre property with Business Highway Com- mercial Zoning at Rte. 541. Detailed property information package available at maxspann. com. n
ings, residences, and develop- ment land are slated for the auction block. Max Spann Real Estate and Auction Co. will hold the bank-ordered auctions on Wednesday, March 27, 2013 at 2 p.m. at the Marriot Newark Liberty International Airport at 1 Hotel Rd., Newark. The extensive list of proper- ties throughout New Jersey pro- vides an opportunity for inves- tors and prospective developers to tap into several established and emerging New Jersey real
630-632 61st St. , West New York (Hudson County)
WednesdAy, MArch 27 th • 2 pm held at the Marriott hotel, newark Airport, 1 hotel road, newark, nJ A U C T I O N Commercial • Mixed Use/Income Producers • Development Land • Farms
MIDDLETOWN, Monmouth County BANK ORDERED - Minimum bid $250,000 • 7,800+/- Sq. Ft. Residential Office Building LIBERTY TWP, Warren County BANK ORDERED • 33.29+/- Acre Farm w/House WEsT NEW YORk, Hudson County BANK ORDERED • Income Producer- Mixed Use LIBERTY TWP, Warren County BANK ORDERED • 2 Bedroom Cape BLAIRsTOWN, Warren County BANK ORDERED • 4,200+/- Sq. Ft. Commercial Building IRVINGTON, Essex County BANK ORDERED • Former Day Care/Mixed Use Income Producer FRANkLIN, sussex County ABSOLUTE AUCTION - BANK ORDERED • 3,542+/- sq. ft. main street office building Property Previews March 5 & 14 - 11 am to 1 pm
MT. OLIVE, Morris County ABSOLUTE AUCTION - BANK ORDERED • 1,649+/- SF Professional Building BETHLEHEM TWP., Hunterdon County BANK ORDERED • 2,059+/- Sq. Ft. New Office Building Property Previews March 5 & 14 - 2 pm to 4 pm
BOnUs 8 PrOPerties Added See maxspann.com for details.
Property Previews On Your Schedule
ROXBURY, Morris County Minimum Bid $250,000 • 62.18+/- Acres • Site plan approved for 100,000+/- SF Building & Restaurant pad site. • Interchange of I-80 & 206 HOLLAND TWP, Hunterdon County Previous Ask $395,000 - Minimum Bid $150,000 • 49+/- Acre Farm • Ideal for small farm or country home with potential to subdivide.
Attention Real Estate Investors and Developers! • Opportunities Statewide
888.299.1438 / maxspann.com Attention Brokers : Call Us To Co-Venture On Your Listings
Mid Atlantic Real Estate Journal — March 15 - 28, 2013 — A M id A tlantic R eal E state J ournal A uctions Mid Atlantic R eal E state J ournal N e w J e r s e y • P e n n s y lva n i a • D e l awa r e • M a ry l a n d • W a s h i n g t o n D . C . • V i r g i n i a • Auctioneers Directory NJ-PA-DE-NY-MD-VA DE, PA, NJ PA-MD-VA-W.VA
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Richard G. Warner, President NJ & PA Licensed Real Estate Broker Warner Real Estate & Auction Co., Inc. 109 East Grant Street, Suite B Woodstown, NJ 08098 Ph: (856) 769-4111 ext 710 Website: www.WarnerRealtors.com
CALL NOW FOR A FREE CONSULTATION 866.4 BIDDERS HURLEY AUCTIONS www.HURLEYAUCTIONS.com
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auction 21,262± SF CoMMerCial Bldg. on4.16±aC foreclosure north carolina
Lender Ordered | Sealed Bid Auction
174,842± sf Shopping Center on 26.9± Acres Chambersburg, PA | 1320 E. Lincoln Hwy
300 Black Belt World dr., knightdale, nc 27545 UÊ£{]ÇÇÇ´Ê-ÊÊ£ÃÌÊÀÊ>`ÊÈ]{nx´Ê-Ê >ÃÃÀÉ"vwViÊÊ Ê -«>ViÊÊÓ`ÊÀ UÊÊ ÕÌÊÊÓäänÊqÊ<i`Ê ]Ê} Ü>ÞÊ ÕÃiÃà UÊÊ i}Êi} ÌÃÊ,>}iÊvÀÊ£nÊviiÌ UÊÊ ÌV i]Ê >Õ`ÀÞÊ>VÌÞ]Ê*>Ûi`Ê*>À}Ê ÌÊEÊ*>Þ}ÀÕ` UÊÊ*ÌiÌ>ÊÌÊ-ÕL`Û`iÊ Ì
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3/21 @ 2PM SaleS Held: 300 Black Belt World Dr., Knightdale, NC 27545 UÊÊ >ÀÊ,iÌ>Ê ÀÀ`À UÊÊÌiÀÀÊVÕ`iÃÊ- ÜÀ]Ê,iÌ>]Ê"vwVi]Ê>`ÊÊ Ê 7>Ài ÕÃiÊ-«>Vi UÊÊ<i`Ê £]Ê`ÕÃÌÀ> UÊÊÛ>>LiÊ,iÌ>Ê-«>ViÊÜÌ Ê-ÌÀ>}i UÊÊ ÕÀÀiÌÞÊ i>Ãi`ÊÌÊ>Ê ÛiiViÊ-ÌÀi 6010 duraleigh rd., raleigh, nc 27612
#2
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The Mid Atlantic Real Estate Journal, 1/4 pg, March 15
A — March 15 - 28, 2013 — Mid Atlantic Real Estate Journal
www.marejournal.com M id A tlantic R eal E state J ournal McManus and Murray broker 60,000 s/f lease Thomas RealtyPartners inks several significant leases
They wrote the policy.
We make sure they write the check.
P
HILADELPHIA, PA — Thomas Realty Partners LLC (TRP)
announced the completion of several office leases in down- town Philadelphia: • One Commerce Square- 60,000 s/f of leasing completed. Joe McManus and Morgan Murray of TRP represented the landlord. • Leaf Commercial Capital signed a new direct lease for five years totaling 30,000 s/f on the 14th floor. The trans- action was completed in coop- eration with Ken Cohen of Gelcor Realty. • The Jacobs Law Group, P.C. signed a lease for five years totaling 11,700 s/f on the 11th floor. The transaction was completed in cooperation with Chris Dyer of CBRE, Inc . • Gordon & Rees, LLP – has opened its Philadelphia of- fice on the 29th floor, leasing 15,000 s/f. The transactionwas completed in cooperation with Greg Soffian of Studley. Two Commerce Square- 30,000 s/f of leasing com- pleted. McManus and Murray represented the landlord. • The HUB Centers for Meeting & Collaboration ex- panded its Commerce Square
M. MILLER & SON Public Adjusters Since 1960
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location, totaling 30,000 s/f. The long-term transaction was completed in cooperation with Tom Weitzel of Jones Lang LaSalle . 1835 Market- 70,000 s/f of leasing completed. Mike Brown of TRP represented the landlord. • Hagger ty, Go ldberg , Schleifer & Kupersmith ex- panded within the building to occupy 13,430 s/f on the 27th floor. The lease was completed in cooperation with Glen Blumenfeld and Ryan Con- ner of Tactix Real Estate Advisors . • Marks & Sokolov has
signed a three-year renewal for 4,632 s/f on the 28th floor. The transaction was complet- ed in cooperation with Andy Margolis of A. Margolis Realty Co. • PRWT signed a seven-year renewal for 35,274 s/f on the eighth and ninth floors of the building. The transaction was completed in cooperation with Brian Edmonds of Concor- dis Advisors . • Concorde signed a long- termrenewal occupying 15,559 s/f on the 12th floor. The trans- action was completed in coop- eration with Steve Perna of Perna Frederick Realty . n
Prince George's County, MD (Within DC Capital Beltway) Industrial Building on 73 acres +/- are in 4 individual tracts, but will be sold as a whole. Friday, April 19, 2013 at 11:00 am ON SITE • 73.05 acres +/- Zoned I-1 (Industrial) w/360 ft. +/- Major IndustrIal real estate auctIon
of road frontage on well traveled Central Ave. • Property has 2 buildings and one office trailer • The main building is approx. 3,300 sf and features offices, large show room, restrooms, reception area, handicap ramp and parking. • Property features approx. 2.75 acres of lined asphalt • "L" shaped building in the rear of the property features 9 bays, offices on both levels, and restrooms • Property has 687 ft. +/- of road frontage on Ashwood Dr. • Traffic Count on Central Avenue: 36,000-40,000 automobiles in a 13 hour period. • Public Utilities • Only yards from I-495 interchange, minutes from FedEx Field, 3 miles from the Washington, DC line. Property has hotels, Home Depot, fast food & more within walking distance. • Tax Maps: 13-1440890 (61.72 acres); 13-1413038 (6.84 acres); 13-1440965 (2.75 acres); 13-1544121 (1.74 acres)
Please contact Kelly Strauss for more information: 540.226.1279 Nicholls Auction Marketing Group www.nichollsauction.com ATTN REALTORS: Pre-registered (by 5 pm 4/18/13) broker participation is encouraged and compensated!!
VAAF 729
Mid Atlantic Real Estate Journal — March 15 - 28, 2013 — A Dan Rattay – CB Richard Ellis HHA announce 2012 Broker of the Year
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307,000 s/f at 7940 Jones Branch Drive HFF arranges $65m loan for Tysons Corner, VA office dev.
Newport, DE — Harvey, Hanna & Associates, Inc. (HHA) announced that Dan Rattay of CB Richard Ellis (CBRE) has been selected as its “2012 Broker of the Year.” In the midst of a recover- ing but still fragile real estate market, Rattay contributed to HHA’s continued success in 2012. Rattay successfully negotiat- ed the lease for Scope Services Inc. to lease 34,000 s/f of flex warehouse and former truck dealership space at 189 Belle Hill Rd., Elkton, MD. Indeed, this “Elkton West” area of Cecil County has seen substantial economic develop- ment over the past decade, with more investment on the immediate horizon. Both Cecil County and the town of Elk- ton have viewed this area as well-suited to both commercial investment and residential development, in large measure due to the major interchange at
I-95 and Elkton Rd.,, Rte.279, which attracts business inter- est throughout the east coast corridor. As a consequence of this lease, Scope Services currently employs 103 persons at the Belle Hill facility, of which 102 are local hires. “This was an important achievement by Dan, to redirect a relatively new but inactive facility to a value-adding use,” said Thomas Hanna, HHA VP, “and we hope to enjoy a long relationship with Scope Services and CBRE for years to come.” In recognition of Rattay’s achievements, HHAwill donate $3,000 in the name of CB Rich- ard Ellis to The Delaware KIDS (Kids In Distressed Situations) Fund. This charitable fund was established by HHA to support a wide array of causes for local youth, including specialized support for hunger, shelter, and tuition scholarships. n
T
ysonsCorner, VA — HFF has arranged a $65 million non-re-
course revolving construction loan for 7940 Jones Branch Dr., a 307,000 s/f office devel- opment in Tysons Corner. HFF worked on behalf of the borrower, a joint venture between MRP Realty and Rockpoint Group, LLC , to arrange the loan that was agented by EagleBank , with Burke & Herbert Bank act- ing as a participant bank in the transaction. Due for completion in 2014, the development is approxi- mately 50% pre-sold to Lo- gistics Management Institute (LMI), a private non-profit strategic consultancy organi- zation. This to-be-built, 11-story office building is located ad- jacent to the newly-completed Jones Branch connector road, BALTIMORE, MD — Col- liers International in Balti- more, a full-service commercial real estate firm, played an in- strumental role in the planned redevelopment and adaptive reuse of two former office build- ings in downtown Baltimore. The buildings, located at 520 ParkAve. and 114 E. Lexington St., will be converted into a total of 275 apartments which will begin delivering in late 2013. “Downtown Baltimore, ac- cording to one estimate, will see an increased demand for more than 1,000 apartments per year for the next five years,” said Steve Weiss , senior vice presi- dent of Colliers | Baltimore. “Understanding that need, and using our extensive knowledge, resources and relationships, Colliers made possible two of the largest apartment conver- sions in the market.” Colliers | Baltimore repre- sented The Harry and Jeanette Weinberg Foundation, which owns 520 Park Ave., a seven- floor 210,000 s/f office building
7940 Jones Branch Dr.
and offers prime signage op- portunities with frontage on both the Capital Beltway (I-495) and the Dulles Toll Road. The HFF team representing the borrower was led by direc- tor Dan McIntyre .
“We are pleased to have represented MRP Realty and Rockpoint in this financing and look forward to construc- tion starting on one of the region?s most anticipated transactions in 2013,” said McIntyre. n
Colliers instrumental in planned conversions of two down- town Baltimore office buildings into apartment buildings
520 Park Ave.
on 3.162 acres, in structuring a joint-venture with Baltimore- based Time Group to redevelop the property. The Weinberg Foundation and The Time Group will convert the build- ing into 171 apartments with street-level retail. “As the real estate consultant for the Weinberg Foundation, it was critical that we provided accurate and current data on apartment development in downtown Baltimore” devel- opment costs, vacancy rates
and operating expenses,” said Robert Manekin , manag- ing director and principal of Colliers | Baltimore. “Our multi-disciplinary team of pro- fessionals were able to do that and, as a result, bring value to our client, who is thrilled with the result.” Likewise, Colliers | Bal- timore represented 114 Lex Corp., a New York City-based family which sold 114 E. Lex- ington St. for $4.76 million to Baybridge Lexington LLC, a
114 E. Lexington St.
developer in Northern Virginia. Built in 1928 for the Federal Reserve, 114 E. Lexington St. is a 135,000 s/f office build- ing that qualifies for Federal Historic Tax Credits. The new owner will convert the build- ing into 104 loft and one-level apartments in addition to retail space.
“At Colliers, we have the experience and perceptiveness to assess client and community needs, the ingenuity and vision to offer creative solutions, and the perseverance and muscle to make them happen,” Manekin said. “It’s no coincidence we were asked to handle both ma- jor redevelopments.” n
8A — January 11 - 2, 2013 — Mid Atlantic Real Estate Journal
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Firm opens 1th office on the East Coast Bohler Engineering’s Volanth announces new office
C
HARLOTTE, NC — Adam Volanth , principal for Bohler
The expansion into the Carolinas was necessary to meet the needs of Bohler’s im-
clients. “What makes Bohler dif- ferent are the genuine rela- tionships we have with our clients,” said Volanth. “We will do whatever it takes to prove to our clients that they truly are our number one pri- ority; including opening a new office. We are more than just civil engineers, we are consul- tants committed to providing innovative solutions for our land development clients.” Heading up the Carolinas office is Andrew Moriarty , the former director of en- gineering for the Timmons Group in North Carolina. Mo- riarty brings an impressive 22 years of experience to the firm, including 12 previous years with Bohler. “I am excited for Bohler’s arrival in the Carolinas,” he said, “the depth of our firm’s experience and resources will make an enormous impact on the development community, especially in Charlotte.” n Sloan Street Advisors arranges 12,288 s/f lease VIENNA, VA — Debra Stracke Anderson CCIM, SIOR , president of Sloan leasing 12,288 s/f of commercial space located at 8500ATyco Rd., Vienna. Anderson represented the tenant in the transaction and the landlord, Tyco Road Limited Partnership II LLP, was rep- resented by Terrell Marsh of Trimark Corporation . “Tysons Corner continues to be an efficient central point for companies that need easy access to their multi-regional clients in the DC area,” said Ander- son. “This proximity, together with the metro-rail expansion to Tysons Corner and beyond, has generated overall renewed interest in the market as a loca- tion of choice for corporations.” Publication Circulation Ful- fillment, Inc. helps publications of all sizes reduce costs, expand or maintain their delivery foot- print. n Debra Stracke Street Advi- sors / ITRA Global , an- nounced that the company represented Pub l i cat i on Ci r cul at i on Fulfillment, Inc. (PCF) in
Engineer- ing ’sMid-At- lantic region, announc e s the opening of the firm’s 14th office on the east coast. Locat- ed on West
pressive list of clients al- ready doing work in the s outheas t . B o h l e r ’ s e x p a n s i o n strategy is unique to its industry.
Check out our NEW digital edition! www.marejournal.com
Adam Volanth Andrew Moriarty,
Hill St. in Charlotte, the new location will serve as a bridge between Bohler’s work in the Mid-Atlantic, and the firm’s two Florida offices.
Where most firms use ac- quisitions as a means to en- ter new markets, Bohler’s geographic expansion con- tinues at the request of their
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Mid Atlantic Real Estate Journal — March 15 - 28, 2013 — 9A
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THE NEW STANDARD IN LUXURY LIVING AT DEWEY BEACH
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10A — March 15 - 28, 2013 — Mid Atlantic Real Estate Journal
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Commercial-Industrial Realty Council
www.circdelaware.org
Attend our Next CIRC Member Networking Luncheon: March 13, 2013 (WED) Clarion Hotel-The Belle, 1612 N. Dupont Hwy.,New Castle, DE 19720 Annual Economic Forecast David B. Hanson , CPA, CFA, CTFA Chief Executive Officer, Fulton Financial Advisors
David Hanson comes highly recommended and we think you will find the presen- tation interesting and understandable. David has over 20 years of experience in investments and trust banking, and before he came to Fulton Financial Advisors, he had a career with SunTrust where he served in various positions, including Closely Held Business Analyst, Business Development Officer, Manager of Private Client Services, and Corporate Strategies/Mergers & Acquisitions related roles. Register online at www.circdelaware.org.
Real Estate Continuing Education May 8, 2013 Accredited DE-PA-MD-NJ Foreclosures (Del. CORE Module 7) / Real Estate Investment Fundamentals - (Del. CORE Module 6) (see entire CIRC-sponsored C.E. Program Schedule, posted online with accreditations listed) Cost (each class and/or lunch): $35 Member / $45 Non-Member* (* Non-CIRC members: consider joining CIRC for great benefits and cost savings!) Information & Online Registration: www.circdelaware.org
People at our February 8, 2013 Event: Lighthouse Cove Dewey Beach Redevelopment
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www.marejournal.com Sykes, senior vice president in Boston office, originated the transaction Beech Street closes $70 million Fannie Mae loan to refinance apartments in Jersey City, NJ F inancial D igest featuring 1031 E xchange Mid Atlantic Real Estate Journal — March 15 - 28, 2013 — 11A
J
ERSEY CITY, NJ — Beech Street Capital, LLC announced that it closed a $70 million Fannie Mae conventional loan to refi- nance The Gotham, a 220-unit, 22-story high-rise apartment building in Jersey City. Brian Sykes , senior vice president in Beech Street’s Boston office, originated the transaction. BlueGate Partners , a bou- tique advisory and transac- tional firm based in Manhat- tan, brokered the deal. The borrower sought a cash- out refinance of The Gotham to invest in other develop- ment opportunities and take advantage of historically low rates. The challenge was se- curing a loan that was large enough to compensate for the substantial prepayment penalty on its existing loan. In addition, the property was subject to a payment in lieu of taxes (PILOT) agreement with Jersey City, which expired in 2020. This agreement would make underwriting especially complicated. The Beech Street team was undaunted. Working close- Oyster Bay, NY — Red Mortgage Capital, LLC , the mortgage banking arm of Red Capital Group, LLC , an- nounced that it closed a $19.5 million FHA 232/223(f) refi- nancing for Oyster BayManor/ Harbor House. The project is a 208-bed assisted living and dementia care facility located in Oyster Bay, NY. This financing will have a substantial positive impact on the project for many years to come. The low interest rate achieved through the FHA in- surance program significantly reduces the owner’s debt-ser- vice obligations and provides 30-year fully amortizing, non- Philadelphia, PA — Grosvenor Fund Man- agement (GFM) has ap- pointed Ryan Roberts di- rector, asset management.
ly with Fannie Mae, Beech Street secured approval for a $70 million loan, meeting the borrower’s cash-out re- quirements, and scoured the capital markets for terms that lowered interest payments by approximately 80 bps. Altogether, it closed the loan on the property in less than 45 days. “This was our second trans- action with Beech Street in less than a year,” said Chris Zirrith at Applied Capi- tal , a firm owned by two of the key principals. “We were thoroughly confident that the complexity of the deal wouldn’t slow them down and that they could deliver the terms we needed. They fully met our expectations!” The other principal is Panepinto Properties . Developed by the borrow- Staten Island, NY — Lisa McMahon , Dev Morris , and Andrew Stewart , have arranged permanent financ- ing in the amount of $51.25 million for two retail centers located in the Great Kills and Arden Heights neighborhoods of Staten Island. The fixed-rate loans were structured with a 10 year term and amortize over 30 years for the borrowers, NBM Realty Holding, LLC and Vil- lage Greens Shopping Center, LLC. Evergreen Shopping Center is an 89,330± s/f grocery-an- chored center with excellent access and visibility from both Amboy Rd. andGreavesAvenue in Staten Island. The Subject consists of a 61,750± s/f Path- mark anchor store and 27,580± s/f of inline space surrounding a central parking lot. Hackensack and Bo- gota, NJ — David Turley and Janet Proscia of Cron- heim Mortgage teamed up to arrange permanent mortgage financing for a portfolio of three multi-family properties. The 10-year fixed rate, non- recourse loans were placed at
ers in 2000, The Gotham was the first luxury apartment in Jersey City since the 1950s not located on waterfront. In addition to the 220 apartment units, the Gotham includes six occupied commercial spaces covering over 20,000 s/f on the ground floor and a 340-space, four-story parking garage. The units on the upper level floors are notable for panoramic views that encompass the Hud- son River, the Manhattan sky- line, and the Statue of Liberty. The Gotham is three blocks west of the Exchange Place PATH station and six blocks northwest of the Paulus Hook Ferry, providing convenient access to Manhattan. Addition- ally, it is near Interstate 78. The fixed-rate loan has a 10-year term, 9.5 years yield maintenance, and a 30-year amortizing schedule. n 3.75%. The mix of garden and mid- rise properties had been in the owner ’s portfolio since acquisition in two separate transactions in 2007 and 2008 with a total of 87 units. The aggregation of the assets into a portfolio created a more ef- ficient financing execution. “We help clients take advan- tage of market inefficiencies and opportunities. In this case, one of our close lender friends contacted us with an allocation of attractively-priced, 10-year money that needed to be placed immediately. We quickly iden- tified a client with a matching financing need and married the parties to create a win-win scenario,” said Turley. Proscia elaborated, “One of our clients had financed these Bergen County properties sev- eral years ago upon acquisition. That financing was coming to the last years of the loan term with an above-market interest rate and modest prepay cost. It was a great candidate for a strategic refinance. This was a beneficial transaction for both the borrower and lender.” n
Cronheim Mortgage arranges $57.5 million
The Gotham
Red Mortgage Capital provides $19.5 million assisted living/dementia care refinancing loan
recourse debt. In addition, the financing includes over $1.2 million in funding for capital renovations and upgrades to common areas throughout the building, including the cre- ation of a resident solarium. Overall, the financing pro- vided an important way for the owner to accomplish several strategic capital initiatives in an effort to meet or exceed service level demands in its assisted living market. Rachel Dombrowsky, owner/ president of Oyster Bay Manor/ Harbor House, said, “We are thankful to have completed this important transaction with Red Mortgage Capital. We are Roberts joins GFM fromGIC Real Estate in NYC, where he managed a portfolio com- prising direct investments, real estate fund investments,
looking forward to completing many important projects with the additional loan proceeds. The whole team was so help- ful in bringing us through the HUD process.” Red’s lead banker on the transaction, James Scrib- ner , managing director of Red Mortgage Capital, LLC said, “The ability to provide over $1.2 million for several important capital initiatives while reduc- ing total debt service with long- term, non-recourse financing provides a tremendous value to the owner. Oyster Bay Manor and Harbor House will be well positioned for many years to come.” n
corporate investments, and mezzanine debt. He also worked for Prudential Real Estate Investors of Parsip- pany, NJ. n Grosvenor Fund Management appoints Roberts director
12A — March 15 - 28, 2013 — Mid Atlantic Real Estate Journal
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wice now in the last six months, our firm has put together some real- By Brenner Green, Real Property Capital, Inc. The market is ready, are you ready for it? T (pegging the actual loan-to- cost somewhere around 95%). This structure was offered on a straight coupon basis with no equity participation by the mezzanine lender.
Recent Closings Multifamily - Philadelphia, PA
with a mezzanine loan at up to 88% of total project cost and at around 107% of the purchase price (there was a significant capex program as part of the acquisition). The overall rate was to be sub 6.5%. As would be expected, both loans were non-recourse. What is really interesting is that in both instances, after engaging us to arrange what might seem like a nearly im- possible structure, and after sourcing exactly what the client requested, they decided not to proceed. All of this financing was arranged through capital sources that are long term trusted relationships with which we have closed numer- ous transactions in the past, so from our perspective there was no reason to question the ability to deliver. However, when the time came, the clients could not get comfortable with pulling the trigger on what they had asked for. Why would this be? We brought the client exactly what they asked for and they decided not to proceed. In both cases, they opted for a less attrac- tive deal from a more familiar lender. As you might imagine I have thought long and hard over that one. The answer is, simply, a matter of trust. While there is some degree of greed returning (rather quickly) to the market, fear still prevails. However, the type of fear isn’t the “oh my god we may not make it through this cycle” type of fear that the vast majority of us experienced around 2009, but rather a mistrust of Wall Street and high finance in gen- eral. Many real estate investors are going with the simple bank- type structures that are safe and familiar. And while that is understandable given what we have all been through over the last five or six years, I am here to tell you that you are missing out. There are many legitimate well-funded capital sources out there ready to offer something a little bit less conventional and perhaps a little more aggressive than what we have all become accustomed to in the “new nor- mal.” For better or worse, Wall Street is back into real estate and with Wall Street comes leverage. Leverage is back, the deals are real and the time is now. Are you ready? R. Brenner Green is presi- dent of Real Property Capi- tal, Inc. based in the Phila- delphia suburbs. n
ly innovative and aggres- sive financ- i n g s t r u c - tures that are reminiscent of the pre-re- cession, dare I say “bubble e r a ” d a y s .
The second deal was probably more significant in that it was for the acquisition of 728 lower quality apartments in a ter- tiary location (Tulsa, OK) for a client whose current portfolio is comprised of around 500 units. The client has a good track record but a limited balance sheet and limited experience. In this instance we were able to secure bridge financing joined
Brenner Green
75 East Butler Avenue • Ambler, PA 19002 610-456-9644 • bgreen@realpropertycapital.com www.realpropertycapital.com
The first was a mezzanine loan for a student housing development in Georgia that of- fered up to 92% of total project cost, including developer fees
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