3-27-15

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

Two office buildings located at 1515 Route 10 total 288,742 s/f of office space Colliers International arranges $14.1m sale of Intel Corporate Center in NJ

ISSUE HIGHLIGHTS Volume 27 Issue 6 March 27 -April 9, 2015

ARSIPPANY, NJ – Colliers Internation- al has arranged the $14.1 million sale of Intel Cor- porate Center located at 1515 Rte. 10 in Parsippany. An affiliate of Stanbery Development, LLC and the developer/owner of The Shop- pes at Union Hill in Denville acquired the complex. The three-story buildings, which total 288,742 s/f, are currently triple net leased to the Intel Corporation through December 31, 2015. Intel has vacated the property. The first building is 213,742 s/f and features a dramatic atrium with marble floors, while the second building is 75,000 s/f. Both assets provide a total of 930 feet of frontage on Rte. 10 and feature on-site amenities including a full- service cafeteria, professional gym facility, conference areas, P

executive managing director Richard Madison , executive managing director Jeffrey Oram , and associate Chuck Kohaut represented the seller in the transaction. Chesler added that the above average $49 psf price achieved for 1515 Rte. 10 –– as compared to GAF’s 2013 acqui- sition of a similar office asset located across the street at One Campus Dr. –– is a testa- ment to the growing strength of the market, Morris County’s fundamentals, and the value of the property’s location on Rte.10, bordering the intersec- tion of Rtes. 287 and 80. The Intel Corporate Cen- ter is in close proximity to the Downtown Morristown and Morristown Airports as well as the Morristown and Morris Plains Train Station, which offer direct service to Manhattan. n ues to grow in importance as a distribution hub for the Northeastern U.S. due to its efficient highway networks and talented labor force,” said Peter Schultz , executive vice president for First Industrial. “With limited availability of high quality distribution product in the market, we are excited to develop these facili- ties which can meet the needs of a range of distribution and other customers.” Jeff Thomas , senior re- gional director and market leader for Pennsylvania, and Jim Knopka , senior director of construction, lead First In- dustrial’s team for the devel- opment of First 33 Commerce Center. Mark Chubb , senior vice president/principal, Michael Zerbe , senior vice president/ principal, and Mike Capobi- anco , senior vice president, all of Colliers Internation- al , will work with First In- dustrial on leasing First 33 Commerce Center. n

SPOTLIGHT

Section C

Multifamily Spotlight featuring POA EXPO

and an outdoor terrace with seating. “The new owner acquired a unique, value-add opportunity and has the ability to rebrand and reposition the asset during

Intel Corporation’s remaining term, benefitting from the tenant’s in-place credit cash flow,” said Jacklene Chesler , managing director at Colliers International, who along with

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For speaking and sponsorship information, please contact: Linda Christman at 781-871-3456 or lchristman@marejournal.com Upcoming Conferences 2015 Schedule: April 2, 2015 NJ Land Dev. Summit May 5, 2015 NJ Office Summit June 30, 2015 NJ Commercial RE Forecast Summit

Two buildings totaling 584,760 s/f offers efficient distribution to East Coast First Industrial Realty Trust launches development of 584,760 s/f industrial facility

LEHIGH VALLEY, PA — First Industrial Realty Trust, Inc., an owner, operator and developer of industrial real estate, recently launched its First 33 Commerce Center, a two-building 584,760 s/f devel- opment in the Lehigh Valley in Eastern Pennsylvania. The state-of-the-art devel- opment will be comprised

First 33 Commerce Center

Directory

of a 341,400 s/f facility and a 243,360 s/f building. Both buildings will feature 32-ft clear height, ESFR sprinklers and interior and exterior ener- gy-efficient lighting systems. The buildings are expected to be completed by year-end 2015. Total investment for the project is expected to be approximately $44 million. Located directly off Rte. 33 in Northampton County, First 33 Commerce Center offers ef- ficient access to I-78 and I-80, and access to one-third of the U.S. population and one-half

of the Canadian population within a one day’s drive. First 33 Commerce Center is a proven location as evidenced by its corporate neighbors, in- cluding major freight delivery companies that can provide one and two day delivery op- tions to the majority of the United Stated and Canada. Both buildings are divisible to meet the needs of multiple tenants, with the larger build- ing divisible to 100,000 s/f and the second building divisible to 54,000 s/f. “The Lehigh Valley contin-

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Upcoming Spotlight April 10, 2015 Appraisal

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8:00 AM Development Forecasts for the next 10 years • Forecasting the next 10 years of metro development: Modeling for site selection and development planning. • A fast paced overview of the key tools that you will need as you prepare for your next development • A Developers Tool Kit for 2015 • Development Opportunities that will change the face of New Jersey 8:50 AM Residential Builder and Developer Update • Evaluating land prices: Where they were, Where they are at andWhere are they going • What is the market for raw land and what does the deal need to look like today • What are the builders buying and why • How are land deals structured today and how is it different from the boom • What future opportunities exist 9:40 AM Break 9:50 AM How to EffectivelyWorkWith Municipalities • Annexation of parcels into cities • How cities our effectively working with builders to fast track the approval process • How are municipalities effectively working with home builders and commercial developers to spur growth • What are cities doing to attract investment in their communities 10:40 AMMarket Update • Inventory status • Current and future absorption • Land values: Where are they now and where are they headed • How does New Jersey’s Economic Growth+ stack up to the rest of the United States • Interest rates and other economic conditions affecting consumer confidence 11:10 AMWhat are the Opportunities for Commercial Development • What new opportunities for development are happening right now • What types of projects are in consideration for land development? • What needs to happen to get the market moving? Or do we have to wait until after the election • What are the challenges with land development vs. redevelopment? • Who is active in the market place and what is their risk tolerance and expected returns 12:00 PM Adjourn & Networking

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Meet Our Speakers & Moderators

Paul Heilmann, Senior Vice President, Columbia Bank Speaker: 10:40 AM | Market Update Paul Heilmann is Senior Vice President of Commercial Real Estate Lending and Commercial Construction Lending at Columbia Bank, one of New Jersey’s lead- ing community banks with Total Assets of $4.3 Billion and 44 Branches. Heil- mann is a member of the Bank’s Commercial Loan Committee and Senior Loan Committee. His responsibilities include oversight of two lending groups. Prior to joining Columbia in 2004, he was the SVP of Commercial Lending at Penn Federal, a Newark, N.J. based bank for 10 years. Omer Mir Ahmed, Senior VP — Acquisitions, Russo Development Speaker: 8:50 AM | Residential Builder and Developer Update Omer Mir Ahmed is Senior Vice President and Head of Russo Devel- opment’s Acquisitions department. He has led an aggressive campaign to strategically expand the firm’s development pipeline and property holdings spanning industrial, multifamily residential, and mission critical property types. S Meryl Gonchar, Partner, Co-Chair (Redevelopment & Land Use Department), Greenbaum Rowe Smith & Davis Moderator: 10:40 AM | Market Update Meryl A.G. Gonchar is Co-Chair of the Redevelopment and Land Use Department at the New Jersey law firm of Greenbaum, Rowe, Smith and Davis LLP. Her practice encompasses all aspects of land use, zoning and related litigation. Ted Zangari, Member, Sills Cummis & Gross Speaker: 11:10 AM | What are the Opportunities for Commercial Dev. Ted Zangari is a Member of Sills Cummis & Gross, a commercial law firm with New Jersey offices in Newark and Princeton. He is a Chair of the Firm’s Real Estate Department and serves on the Firm’s Management and Executive Committees. Zangari’s law practice is multipronged. Joseph Romano, Co-Founder Accordia Company Speaker: 9:50 AM | How to Effectively Work with Municipalities Joe Romano has over 35 years experience in the real estate industry and is a co-founder of Accordia Realty Ventures. Prior to joining Accordia, Joe was head of Advance Realty Group’s ARG Development Corporation. Joe brings to Accordia a vast background in every facet of commercial real estate including: site acquisition, development, marketing, leasing, planning, construction and value enhancement. Brigette Bogart, principal, Planning & Design Professionals, LLC Speaker: 9:50 AM | How to Effectively Work with Municipalities Brigette Bogart has been engaged in the planning profession with private firms since 1998. For 12 years she was a partner in a small firm in NJ where she represented several municipalities in the review of plans and the preparation of master plans and ordinances. During that time she also won several awards including the 2008 & 2011 NJPO Achievement in Planning awards. In 2010 she received her certification in Grant Writing. Francis Reiner, PP, LLA, Senior Urban Designer/ Urban Planning Consultant, DMR Architects Speaker: 9:50 AM | How to Effectively Work with Municipalities Francis is an accomplished professional planner, urban designer and landscape architect with more than 20 years of experience working for both the public and private sectors. He has been involved with the de- sign and development of mixed use, urban infill, transit-oriented and traditional neighborhood developments as both a design professional Tony is a public affairs professional with experience at the federal, state and local levels. Policy development, legislative strategy development, lobbying and coalition building are Tony’s specialties. Over the last twenty years Tony has practically devoted his entire public affairs pro- fession toward representing the real estate industry. Danielle Brunelli-Albrecht Senior Vice President/Principal, RJ Brunelli & Co. LLC Speaker: 11:10 AM | What are the Opportunities for Commercial Dev. In 2004, Danielle was one of the first graduates of Monmouth Univer- sity’s Real Estate Institute, earning her BS Degree, and is now mid-way to attaining an MBA in real estate. Danielle, who joined R.J. Brunelli & Co. on a full-time basis after graduating, today focuses on the leasing of the company’s “Lifestyle” and “Town Center” developments and also manages four tenant representation accounts. and as a project manager with a development firm. Anthony Pizzutillo, President, Smith Pizzutillo LLC Speaker: 10:40 AM | Market Update

Richard F.X Johnson, Senior Vice President, Development, Partner, Matrix Development Group Speaker: 8:00 AM | Development Forecasts for the next 10 Years Johnson joined Matrix in 1990, and is currently the partner-in-charge the development of office and mixed use projects within the Matrix portfolio, with a particular focus on transit-oriented and urban development/redevel- opment opportunities in New Jersey and Pennsylvania. Brian J. Whitmer, Senior Director, Capital Markets Group, Cushman &Wakefield Moderator: 8:50 AM | Residential Builder and Developer Update Brian Whitmer serves as Senior Director of the Metropolitan Area Capi- tal Markets Group in C&W’s East Rutherford, New Jersey office. Part of a 13-member team, Whitmer is responsible for managing, underwriting, and marketing investment properties for sale and arranging joint ventures in the suburban markets surrounding New York City. While he handles all asset types, his focus is on multifamily transactions. Ronald Ladell, Sr. Vice President, NJ, AvalonBay Communities, Inc. Speaker: 8:50 AM | Residential Builder and Developer Update As Senior Vice President for NJ, Ladell oversees AvalonBay’s development activities throughout NJ. Ladell is based in the company’s Woodbridge, NJ office and focuses on developing premier residential and mixed-use communities in high barrier to entry markets. Currently, AvalonBay is constructing communities in Roseland, Bloomfield, Wharton, Union and Princeton. Andrew Marshall, Executive Vice President, Development, Roseland Speaker: 8:50 AM | Residential Builder and Developer Update Andrew Marshall is responsible for directing and overseeing Roseland’s development portfolio from Boston to Washington D.C. with develop- ments currently in New Jersey, Massachusetts, Pennsylvania and Virgin- ia representing approximately 4,000 new units in process. He began his career with Roseland in 2003 as Vice President of Development. Peter Kasabach, Executive Director, New Jersey Future Speaker: 8:00 AM | Development Forecasts for the next 10 years Peter has been actively engaged in the areas of housing and sustainable development and community revitalization for the past 20 years. Before taking the helm of New Jersey Future in December 2007, he was chief of policy and community development for the NJ Housing & Mortgage Fi- nance Agency, where he guided investment programs and developed a comprehensive state housing policy for use by the Department of Com- munity Affairs. Carol Ann Short, Esq., Chief Executive Officer, NJ Builders Association Moderator: 8:00 AM | Development Forecasts for the next 10 years Carol Ann Short, Esq. is a seasoned government-relations professional with extensive experience in the policy and management of housing related issues in New Jersey. She assumed the position as Chief Execu- tive Officer in 2013 for the New Jersey Builders Association (NJBA), the State’s leading professional trade association dedicated to representing the interests of its members before the Legislature, Courts, Administra- tion and its regulatory agencies. Michael Kasparian, Co-Founder, MDK Development, LLC Speaker: 9:50 AM | How to Effectively Work with Municipalities Co-Founded MDK Development, LLC (MDK) MDK is a commercial/multifamily real estate developer with a long standing portfolio of projects in northern New Jersey. • Specializing in Smart Growth urban infill/mixed-use redevelopment. • Responsible for all phases of these projects including site acquisition, the entitlement process, municipal and state negotiation, financing, and daily development management. Eric N. Witmondt, Chief Executive Officer, Woodmont Properties Speaker: 11:10 AM | What are the Opportunities for Commercial Dev. Witmondt serves as CEO of Woodmont Properties, a privately owned real es- tate investment/development business founded by his father in 1963. Wood- mont aggressively expanded into the multifamily rental business in 2008 and has since constructed numerous communities in both New Jersey and Pennsyl- vania and is currently under construction in Cranford, Red Bank and Mt. Arling- ton and is beginning projects in Lower Macungie, Pennsylvania and a mixed- use “TOD” community in Metuchen, New Jersey in the next two (2) months. Michael MCGuinness, Chief Executive Officer, NAIOP Moderator: 10:40 AM | Market Update Michael G. McGuinness, Chief Executive Officer, oversees the daily op- erations and programs of the association. He works in consultation with the officers and board of trustees to carry out the association’s mission. He is a registered legislative agent, directs the advocacy program and manages the Developers Political Action Committee (DPAC).

For speaking and sponsorship information please contact Linda Christman at Lchristman@marejournal.com or 781-871-3456

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M id A tlantic R eal E state J ournal Publisher .................................................................Linda Christman Publisher ....................................................................Joe Christman Section Publisher .........................................................Steve Kelley Senior Editor/Graphic Artist ..................................... Karen Vachon Production Assistant ........................................................ Julie King Associate Publisher ................................................. Alissa Aronson Associate Publisher .............................................. Barbara Holyoke Office Manager .........................................................Joanne Gavaza Guest Columnist .......................Sean Brady, Cushman & Wakefield 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, 312 Market St. Rockand, MA 02370 USPS #22-358 | Vol. 27 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 Metro New Jersey Chapter of the Appraisal Institute Founded 1932 Proudly Announces 79 th Annual Princeton Conference Friday, April 24, 2015 Register at www.ai-newjersey.org, Marriott Hotel and Conference Center ~ 100 College Road East, Princeton, NJ The Princeton Conference is the longest running annual appraisal conference in the country. Every year since 1936, the Metro New Jersey Chapter of the Appraisal Institute has invited leaders in the real estate industry to offer their insight on the past, present, and future of real estate. Continuing Education Credit Approved for 6.5 CE hours by the Appraisal Institute and submitted to: New Jersey State Board of Real Estate Appraisers, New York State Board of Real Estate Appraisers and Insurance and Banking Board for Broker/Realtor CE for 6.5 hours. Also, submitted to the New Jersey Assessor Continuing Education Board for 3 credit in Property Tax

o own or not to own a data center. If your organization owns its own data center or the build- ing that houses it, now is the time to consider selling. A new breed of specialized investor, one well versed in data center operational needs, is becoming increasingly active in acquiring corporate data centers (several of these players now own doz- ens of these properties) and leasing themback to the selling entity. They are paying top dol- lar, while at the same time the seller retains all the flexibilities they appreciated while owning the site. Why is this a good time to sell? Themarket today contains plenty of pent-up real estate capital. Investors are anxious to invest in data centers, espe- cially in the New York Metro area. We are seeing lower cap rates for this niche – which has proven to be one of the most stable in the entire real estate sector. At the same time, many corporate data centers have been in operation for almost 20 years. These assets are becoming antiquated. It does not make sense as an owner/ operator to wait and sell a data center building at the end of its useful life, when its infrastruc- ture has little remaining value. Additionally, owners/operators of these buildings typically do not upgrade the outside ap- pearance because they do not want to draw attention to the building or risk interrupting its day-to-day operation by knocking out the power or fiber. As such, at the end of a 15- to 20-year occupancy, it may cost more money to return the building back to Class A or B+ office building thanwhat can be gained by selling it at the end of this period. THE UPSIDE TO SELLING For these reasons, corporate data center owners should strongly consider the merits of selling while the time is right. There is no downside to this exercise. The national inves- tors active in the market today understand the data center industry as well as the nuances of data center ownership. They structure specialized leases that give the corporate data T A Paradigm Shift for Data Center Ownership Sean Brady

Administration and 3.5 credits in Property Appraisal and the NJ Board of Continuing Legal Education.

The Pennsylvania Board of Real Estate Appraisers accepts programs approved in New Jersey.

The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal

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center seller maximumflexibil- ity to perform their day-to-day operation as well as necessary construction projects. Improve- ments like installing new fuel tanks, a chiller plant, UPS and/ or generator, or reinforcing the floor to accommodate heavier loads are easily approved pro- vided that the occupant secures all the permits, stays within code and does not allow any liens on the property. And, in most cases, the buyer/lessor will not have the lessee restore the building at the end of the lease. Further, these buyers are paying between 6 and 9 % cap rates, depending on the qual- ity of the tenant’s credit and the quality of the asset. Three sale structures have become common. •Option 1 is a net lease on the real estate in the range of $10 to $30 per s/f, NNN. •Option 2 is a net lease on the real estate and the data center equipment, whichmight create a rent of $50 to $100 per s/f and a sale price of $300 to $400 per s/f. •Option 3 is a net lease on the real estate and equipment plus the buyer will provide the seller capital upfront to up- grade the building or the data center (investing $30 to $60 per s/f in construction allowance, divided by the 10-year term plus interest provides the new net rental rate, and the per s/f price could be higher than the numbers above). The higher the rental rate the seller agrees to, the higher the sale price and potentially the lower the cap rate. The second and third options are available only through a few investors who put a value on the equip- ment and provide the seller with the Cap X to update the asset. They are great vehicles

for using someone else’s money to upgrade the real estate and/ or the data center. A PARADIGM SHIFT Over the past four decades, most large corporations have chosen to own their data cen- ters because they want to have total control of their mission- critical facilities. The corporate data center operates 24/7/365 and stores some of a corpora- tion’s most important asset: its information (trade secrets, pat- ents, client information, etc.). Corporations also like to own their own data center build- ings because they invest a lot of money into them and can write down a good portion of it. This sound thinking for many years was augmented by the fact that landlords did not provide the flexibility data center operators need. Simply put, it was better to own than lease. During the past several years, however, data center- specific investors have come into the market and created a paradigm shift that is quickly gaining momentum. Most im- portantly, they offer extraor- dinary flexibility. Addition- ally, the rapid evolution of data center design, efficiencies, size, capacity and layout means that 10 or 20 years from now, even today’s most modern data center facility will be obsolete. We have seen more technologi- cal advancements in the data center industry during the past five years than we have in the past 20 years. By leasing, cor- porations transition the finan- cial burden – easily reaching millions of dollars – to update/ restore the building to bring it current. Further, history has shown that the “ideal” location for a company’s data center can change. Previously, remote locations were favored. Today, continued on page 3A

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LEW Corporation. .....................9B M&E Engineers.......................24C M&T Realty Capital Corp.......10A M. Miller & Son.........................6B MAAS Companies......................4A Mack-Cali Realty.....................20C Marcus & Millichap.............. BC-A Meridian Capital Group.....12-13C Metro Commercial...................33C Metro NJ Appraisal Institute...2A NAI Emory Hill. ........................5C NAI James E. Hanson.............15C NAI Mertz................................28C NAI Summit.............................33C NJHMFA..................................14C NorthMarq Capital....................2C P. Cooper Roofing....................15B Patterson-Woods Commercial Properties..............4C Poskanzer Skott Architects.......2B Premier Compaction Systems.26B Progress Capital Advisors.........3C Protect Painters.........................3B RD Management.................14-15A RRA............................................9C Specialty Building Systems...IC-B SUBWAY....................................6A The Kislak Co..........................17C Total Cleaning Assoc. Ltd.........4B Traffic Planning & Design......25C Trammell Crow Company......IC-C Urstadt Biddle Properties.......21C USGBC NJ.........................22, 27B WCRE.........................................3A Whitesell....................................2B Whitesell....................................7C Williams & Williams.................3A Withum Smith + Brown....... BC-B Wolff Samson...........................13C

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M id A tlantic R eal E state J ournal Wisniewski to lead comm’l sales & leasing division The Kislak Co. welcomes Wisniewski, LaGreca & Cust

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most companies are trying to keep the data centers within one hour of the headquarters or regional headquarters to ac- commodate their professional IT staff. Leasing enables com- panies to move with the times, as needed. announced the hiring of Pe- ter Wisniewski , Dorothy LaGreca and Sean Cust for its expanded commercial sales and leasing division. Wisniewski has been ap- pointed an executive vice president and will lead the division, which includes La- Greca, a senior vice president, and Cust, an associate. The colleagues were previously with Coldwell Banker Com- mercial Feist & Feist Realty Corp. “Wisniewski joined Cold- well Banker Commercial

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a lot of attention to this “new” asset class. Most often, corpo- rate data center investors are looking for buildings that are at least 50% dedicated to a mission-critical operation like data center, disaster recovery, call center or business continu- ity space. They are seeking good credit tenants, long-term leas- es, and typically a building that is predominantly controlled by one tenant. These buyers ap- preciate properties that have been well maintained, however Wisniewski’s team has sev- eral specialties including of- fice/industrial sales and leas- ing and retail leasing/tenant Feist & Feist Corp. as its executive vice president in 2008. Since then, he has been the top Coldwell Banker Com- mercial broker in New Jersey four times

it is not uncommon for them to provide the seller with capital to renovate the building com- mensurate with a long-term lease. For corporations with data center properties that fit this profile, testing the water now is worthwhile – and will undoubtedly bring great inter- est. Cushman & Wakefield’s Sean Brady is a senior di- rector and co-founder of the firm’s Global Data Center Advisory Group. n Sean Cust, a broker trainee, has already completed several leasing assignments in his short time with the firm. n representation work on a regional basis. LaGreca had been with Coldwell Banker Commercial Feist & Feist Realty Corp. for more than 30 years.

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continued from page 2A A Paradigm Shift for Data Center Ownership

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M id A tlantic R eal E state J ournal Licht and Lashner of NAI Mertz represent seller NAI Mertz’s completes sale of 11,800 s/f warehouse in PA

HILADELPHIA, PA — NAI Mertz , a full- service commercial real estate firm serving southern New Jersey and greater Phila- delphia, recently completed the sale of an 11,800 s/f indus- trial facility located at 2729 E. Butler St. in Philadelphia. Jeffrey Licht, SIOR , senior vice president, and Adam Lashner , vice president, rep- resented the seller, KTKS LLC, in the transaction. “There is a very high de- mand for USDA-approved food processing facilities in Phila- delphia, and because this fa- P

2729 E. Butler St.

cility is equipped with freezer and cooler storage, it was a very sought after property," said Licht. “We are pleased to have now sold this property twice and wish Crown Poultry

much good luck in their new home.” 2729 E. Butler St. is a single- story industrial building out- fitted for food manufacturing and distribution, complete with refrigerated, cooler and freezer spaces. It features 12’-24’ clear ceiling heights, a small office area, three tailgate truck doors with dock levelers and one drive-in door. The property is located just off I-95 in the Port Richmond section of Philadelphia, offering easy access to U.S. Rte. 1 and the Pennsylvania Turnpike. Crown Poultry, a regional food and paper company, plans to use the building for food man- ufacturing and distribution. n Greystone Bassuk Group promotes Drew Fletcher NEW YORK, NY — The Greystone Bassuk Group , a real estate capital interme- diary and financial advisor to major developers, announced that Drew Fletcher has been promoted to executive vice president. In assuming greater responsibility in lead- ing the business, Fletcher will continue to work in conjunc- tion with Richard Bassuk , the chief executive officer of The Greystone Bassuk Group. In this new role, Fletcher is responsible for the man- agement and growth of a fully-integrated real estate investment banking and capi- tal advisory platform, which specializes in debt placement, equity/joint-venture transac- tions and strategic consulting services across all property types. Fletcher specializes in structuring creative equity and debt solutions for large- scale development transac- tions, with a particular focus on bond-financed multifamily projects and residential con- dominiums. Prior to joining Greystone Bassuk Group, Fletcher served as Chief Financial Officer at Edison Properties. n

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S hopping C enters Highland Development Group and The Glenville Group sell Lawndale Plaza Nathanson and Gorman of CBRE broker $24.5m sale of 93,282 s/f Shoprite anchored center P www.marejournal.com M id A tlantic Real Estate Journal — Shopping Centers — 5A hiladelphia, PA — CBRE, Inc. has bro- kered the sale of Lawn- especially with the number one grocery operator in Phila- delphia,” said Nathanson,

e x e c u t i v e vice president with CBRE’s Greater Phil- adelphia re- gion. “Lawn- dale Plaza is a wonderful addition for Cedar Realty

dal e Plaza, a 93,282 s/f S h o p R i t e - anchored re- tail center in Philadelphia. Highland De- v e l o p m e n t Group and The Glenville

Brad Nathanson

Tom Gorman

Trust to an already strong portfolio of grocery-anchored shopping centers in the city of Philadelphia.” Lawndale Plaza is currently 100 percent occupied and is located at the intersection of Oxford Avenue and Levick Street, a high-traffic location directly across from the Naval Support Base/Naval Supply Depot. n

Group sold the property for approximately $24.5 million to Cedar Realty Trust. Brad Nathanson and Tom Gor-

March 27 - April 9, 2015

Lawndale Plaza

man of CBRE represented both buyer and seller. Developed in 1998, the shop- ping center boosts a stellar lineup anchored by a 63,342

square foot ShopRite, and also includes Advance Auto Parts, T-Mobile, and Dunkin’ Donuts. “With the lineup of major

national tenants as well as its superior positioning at a high-visibility, busy intersec- tion, this center is attractively situated in the marketplace,

HI-LIGHTS

Retail Experts

Jacksonof Cushman&Wakefield|Grant Street introduces Geiger and Iaquinta to NA Center

SPOTLIGHT

Wexford, PA — The Shopping Center located at 10339 Perry Highway inWex-

ford, known as NA Cen- ter, has been p u r c h a s e d by an Invest- ment Group led locally by Pittsburgh- area Moe’s Sou t hwe s t

5-10A

HFF’s Ade & Bigos secures $17.7m

John Jackson

Grill Franchisees Mike Gei- ger and John Iaquinta. This center is strategically located in the Wexford Flats at the entrance of North Allegheny Senior High School. The group plans major renovations to the façade and pylon sign of the nearly 17,000 s/f building, and have announced that Moe’s South- west Grill will anchor the plaza with a new restaurant on the end cap. “We are excited to open Pittsburgh’s 7th Moe’s loca- tion, especially in the year we celebrate our 10th anniversa- ry in the Market. The North Hills, and Wexford specifical- ly, has been on our roadmap for quite some time. At Moe’s

Bennett Williams arranges 54,814 s/f

Cherry Tree Crossing said Geiger. “We liked the Wexford area, but found most of the centers in the area were not up to our standards. When our broker, John Jackson of Cush- man & Wakefield | Grant Street Associates , intro- duced us to this location, we immediately saw the poten- tial and worked very quickly

we always work to establish a great connection in the com- munity and North Allegheny has been considered a huge part of our fan base since we opened in Cranberry in 2005. One of our most consistent guest feedback requests has been to open a spot further on south on 19, so we are proud to be able to make it happen.”

to close on the property. The idea of developing the look and feel of an entire cen- ter around our brand and customer base is a very at- tractive proposition.” said Iaquinta of the development opportunity. Moe’s anticipates opening by the end of summer. The ownership group. n

www.marejournal.com

6A — March 27 - April 9, 2015 — Shopping Centers — M id A tlantic

Real Estate Journal

www.marejournal.com

S hopping C enters

OPPORTUNITY Promote Your Company

In southeastern Pennsylvania HFF’s Ade & Bigos secures $17.7m financing for retail center

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• Brokered Transactions • New Services/Products • Projects Completed or Underway • Expert Articles • Appointments, Promotions, & Honors • Events • Mergers & Acquisitions • Financing Deals The Mid Atlantic Real Estate Journal welcomes all editorial dealing with the commercial/industrial real estate industry. P.O. Box 26 • Accord, MA 02018 (mailing) 312 Market St. • Rockland, MA 02370 (overnight) e-mail: editor@midatlanticjournal.com www.midatlanticjournal.com

eading, PA — HFF secured $17.7 million in financing for Spring

Towne Shopping Center, a 277,860 s/f, Lowe’s- and Gi- ant-anchored retail center in Reading. HFF worked on behalf of the borrower, Brandolini Compa- nies, to secure a long-term, fixed-rate loan with an institu- tional quality insurance com- pany. The loan will be used to refinance an existingmortgage on the property. Located at 2641-2679 Shil- lington Rd., Spring Towne Shopping Center has front- age along Rte. 724 with direct

800-584-1062 781-871-5299 fax Mid Atlantic Real Estate Journal

Spring Towne Shopping Center

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access to an exit ramp off the highly-trafficked Route 222. The HFF team representing the seller was led by managing director Ryan Ade and senior real estate analyst Christo- pher Bigos . “We were able to secure a loan for Brandolini that allows them to enjoy a low, fixed rate of interest for a long duration on a high-quality asset,” Ade said. “The availability of an early rate lock was critical to the deal given the historically low-rate environment we are in today.” n Levin’s leasing rep., Korris negotiates Dollar Tree lease WASHINGTON, NJ — Dol- lar Tree has leased 9,300 s/f of space at Warren Plaza in Washington, announced Levin dan Korris negotiated the long- term lease. Danielle Brunelli- Albrecht of R.J. Brunelli & Co. LLC served as tenant’s broker in the transaction. “Warren Plaza is highly ac- cessible from Washington Bor- ough’s two main thoroughfares, fronting directly on Rte.57, near the intersection of Rte.31,” said Korris. “The addition of a strong national tenant such as Dollar Tree is the first step towards revitalizing this shopping center. With many of today’s consumers focused so highly on value, we are confident Dollar Tree will be a welcome addition to the local community.” n Jordan Korris M a n a g e - ment, leasing and manag- ing agent for the 61,000 s/f shopping cen- ter. Levin’s leas- ing represen- tat ive Jor -

We’re looking for sites in PA End Cap, In-line, Free Standing Flexible Space Requirements Retail Opportunities Needed Consistently Ranked #1 Franchise - 45+ Y ear T rack Record

Non-Traditional Venues - Hospitals/Colleges Universities/B&I/Stadiums/Casinos/Airports

Local Contacts:

Eastern PA — 610-366-8120 x 24, Cheryl Green green_c@sdepa.com Philadelphia PA — 610-768-8990, Rawley Shelton rawleyshelton@gmail.com

realestate.subway.com www.subway.com

facebook.com/SDEPA1

M id A tlantic S hopping C enters S potlight R etail E xperts By Steven M. Duffy, Cuhaci & Peterson Architects Grocery has evolved and it’s not the same old center

Real Estate Journal — Shopping Centers — March 27 - April 9, 2015 — 7A

www.marejournal.com

ture of the competitive l ands cape , several sec- tors continue to decrease their need for floor space. One notice- able casualty W

ith the evolving state of retail and the disruptive na-

One example of this type of scenario is visible when examining the closing of sig- nificant numbers of Office Depot and Staples locations; a large amount of 20K+ boxes are now available on the mar- ket. Popular smaller format specialty grocers such as The Fresh Market, Trader Joes and Aldi are starting to be- come some of the beneficiaries of this shifting marketplace. However, implementing a new grocer requires some special infrastructure considerations that fall into a distinct set of operational needs and likely have not been entitled within the centers original approv- als. Issues such as receiving fresh daily deliveries, power

needs, added HVAC loads, exhaust and fresh air control typically drive the planning process. This usually triggers a re-approval process and go- back to the authority having jurisdiction. However, when compared with the process of a ground up project, those is- sues become speed bumps on a fairly smooth road. As well, grocery provides a compelling draw to a center, driving retail synergy and potentially creating an en- ticing opportunity for other complementary tenants. As developers refine their portfo- lios, adding a grocery anchor to an underperforming center may be the answer to improv- ing their tenant mix. While

not a new trend, grocers today increasingly seek to present a fresh and healthy image, ide- ally beginning curb side; this can translate to a new, fresh look for the entire center. Ad- ditionally, as grocers also seek to promote prepared foods, outdoor seating becomes a needed supporting amenity. Both of these elements pres- ent operational benefits and challenges that require again a deft hand during the entitle- ment process. It also behooves the grocer to be engaged ac- tively in the approvals, typi- cally necessitating operational commitments by the authority having jurisdiction and land- lord. Moving forward developers

may, more than ever, consider grocery as an opportunity for adaptive retail uses. It will be interesting to watch the evolu- tion of the many vacant spaces in today’s market, as they are modified to meet the needs of an ever-changing retail land- scape. Steve Duffy is vice presi- dent of grocery at Cuhaci & Peterson Architects. As an architect and design pro- fessional, Steve has over 30 years of national retail focused experience, spanning Big Box to Boutiques. His work has encompassed every facet of grocery and retail design; highlights include store devel- opment programs, prototyp- ing, and brand reinvention. n

Steven M. Duffy

of the competition today has been office supply retailers. With this shrinking market and the influence of multi- channel retailing, less gross leasable area is needed in this sector, providing grocery anchors leasable space not previously available.

Lombardi of Marcus & Millichap arranges the sale of a 11,348 s/f retail property $2.7 millon West Orange, NJ

WEST ORANGE, NJ — Marcus & Millichap, one of the leading commercial

real estate investment services firm with offices throughout the United States and C a n a d a , announced the sale of a

Michael Lombardi

11,348 s/f, retail and office building located at 640-642 Eagle Rock Ave. in West Orange, according to Brian Hosey , regional manager of the firm’s New Jersey office. The asset sold for $2.7 million. Michael Lombardi, vice president investments in Marcus & Millichap’s New Jersey office had the listing to market the property on behalf of the seller, a private

640-642 Eagle Rock Ave.

investor. The buyer, a pri- vate investor, was secured

and represented by Michael Rothstein , a senior associate

in Marcus &Millichap’s Man- hattan office. The buyer was

executing a 1031 exchange and closed all cash. n

Inside Faith Hope Consolo, Douglas Elliman Real Estate �� 8A Bennett Williams Realty, Inc.�� 9A Dan Haer, Retail Store Painting ��10A Jesse Tron, ICSC �� 12A

8A — March 27 - April 9, 2015 — Shopping Centers — M id A tlantic

Real Estate Journal

www.marejournal.com

R etail E xperts

By Faith Hope Consolo, Douglas Elliman Real Estate Retail rebirth in the Nation’s Capital

A city that remakes it- self with every major election, Washing-

taurants are flocking to new projects. In this respect, Washing- ton is following a national trend: urbanization. The U.S. population is moving back to city centers, and retailers are following, first to New York, Chicago, Miami and Los An- geles, and now to Philadelphia, Washington and more. Helping this is the city’s own economic recovery, with a rising population and de- clining office vacancy. While the population still hasn’t hit 1 million (usually considered a minimum touchstone for expanding retailers), it is ris-

ing, from 649,000 in 2013 to 659,000 in 2014, says the U.S. Census Bureau. And those numbers are a significant increase from the 602,000 re- ported in the 2010 census. On the office side, the city is the tightest market in the United States, with vacancy rate of 9.2 percent, according to Reis. Ur- ban retailers and restaurants want both daytime office traf- fic and nighttime visits from residents, so this is a perfect combination. And of course it helps that developers are cre- ating spectacular new projects to house them! An ongoing case in point is

CityCenterDC, which debuted in 2014 and continues to draw new retailers, restaurants and residents. Featuring such high-end retailers as Burberry, Allen Edmonds, Longchamp, Loro Piana, Ferragamo, Tumi, and Zadig & Voltaire. Coming soon are Alexis Bittar, Canali, Vince, CH Carolina Herrera, David Yurman, Louis Vuit- ton and Momofuku. This is a pioneering project in that it is bringing true luxury boutiques into the District for the first time, an acknowledgement that Washington itself, and not just the suburbs, is home to the affluent.

CityCenterDC is not the only District project attracting in- terest. Waterfront Station, also being built in phases by Forest City Washington, Vornado/ Charles E. Smith, and Bresler & Reiner, is well under way with a new residential project and 5,000 square feet of retail now under construction. Also attracting a lot of inter- est is Ivy City, the industrial area in the northwest that is slowly restoring homes and converting factories to residences and restaurants, not unlike New York City’s Meatpacking District. Coming later this year are Big Chief Bar from the owner of Bedrock Bars, and Bicycle Space and dining at Douglas Develop- ment’s Hecht’s Warehouse. Retailers looking to literally get into the ground floor of a re- developing community would be well advised to look here! Elsewhere, other retailers continue to find new space: Dol- lar Tree will replace Murry’s at 3932 Minnesota Avenue. The key to all of these is transportation. All of the de- velopments are mixed-use, with some combination of office, retail and residential space creating a walkable, 24/7 community. Yet they are close to Metro stations that make them accessible to visitors from around the District and to tourists. They not only are neighborhoods, but also desti- nations, perfect for attracting international retailers. It’s been a long time coming, but retailers at all price points are finally recognizing that Washington DC’s retail scene is back and better than ever! Faith Hope Consolo is chairman of The Retail Group, at Douglas Elliman Real Estate. n Campbell Comm’l. inks lease to Girls on the Run in PA Lemoyne, PA — Girls on the Run Capital Area, has leased space at 525 N. 12th St., Lemoyne. Girls on the Run is a 501(3) non-profit organization that inspires girls to be joyful, healthy and confident using an experience-based curriculum that creatively integrates running. Art Campbell and Jessica Gasper of Campbell Com- mercial Real Estate, Inc. represented both parties in the transaction. n

ton DC is in the midst of a significant retail rebirth, with mixed- use projects creating new n e i g h b o r - hoods around the District.

Faith Hope Consolo

From affluent residential ar- eas reminiscent of New York’s Upper East Side to the re- making of grittier industrial areas into something new and trendy, new stores and res-

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