R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news
ISSUE HIGHLIGHTS Volume 25 Issue 6 March 29 - April 11, 2013
For the Air Rights Center in Bethesda, MD Cassidy Turley’s Campanella & Spellman secures $150m in acquisition financing
B
at the intersection of Wisconsin Ave. and Montgomery Avenue one block from the Bethesda Metro (Red Line) station en- trance. Air Rights Center is currently 93% leased to a high- quality and diverse tenant base with staggered lease rollover. “In the DC region, we con- tinue to see aggressive bank pricing for quality, well-lo- cated assets with strong spon- sorship,” Campanella said. “This portion of Bethesda has emerged as a truly urban, 24/7 live-work-play environment with numerous upscale ameni- ties all features that are highly attractive to lenders, investor, tenants and area residents.” ■
ETHESDA,MD — Cas- sidy Turley announces that it has secured fi-
nancing for the Air Rights Center in Bethesda. Cassidy Turley’s John Campanella , executive managing direc- tor, and Paul Spellman , vice president, represented the owner, a joint venture between MRP Realty and Rockpoint Group, L.L.C. , in securing the $150 million loan, which was provided by a commercial bank. The Air Rights Center office development includes three buildings totaling 688,717 s/f in the North, East and West Towers. The property is located PHILADELPHIA, PA — SpectrumPartners LLC , in a joint venture with NewYork based Katz Properties LLC is pleased to announce the acquisition of Red Lion Shop- ping Center in Philadelphia for $31.4 million. “Red Lion Shopping Center is an excellent addition to our growing portfolio of shopping centers. Given today’s real estate market, we are very happy to have purchased this high-quality asset on Roos- evelt Boulevard in a vibrant and densely populated area of Northeast Philadelphia,” said Neil Markus, principal
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The Air Rights Center
JV of Katz Properties LLC & Spectrum Partners LLC acquires Red Lion Shopping Ctr. for $31.4m
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AucƟons ........................................... 3-4A Green Buildings .............................. 5-10A Owners, Developers & Managers.. 11-24A Shopping Centers .................. SecƟon B Retail Experts Spotlight .............. 5ͳ12B Best of 2012 .......................... SecƟon C
The 229,000 s/f retail center includes anchors Best Buy, Staples, Pep Boys andAmeri- can Signature Furniture, alongwith other retailers such as Planet Fitness, Sherwin- Williams, McDonalds, Taco Bell, Pizza Hut and Sleepy’s. Spectrum Partners and Katz Properties specialize in the acquisition and revitalization of grocery anchored shopping centers and underperforming Red Lion Shopping Center in Philadelphia, PA
assets while creating value for its investor clients. SpectrumPartners LLC and Katz Properties represented themselves in the transac- tion that closed on February 28, 2013. Other parties involved in- cluded, Jones Lang LaSalle, Kelley, Drye & Warren, LLP, Metropolis Capital Finance and RBS Citizens, N.A. Bank. ■
of Spectrum Partners LLC.,” “We also appreciate the abil- ity to partner with Katz Prop- erties on this transaction.” Markus added, “Our organi- zations continue to aggres- sively look for acquisitions in densely populated areas in the Northeast Corridor.” Red Lion Shopping Center is located at the intersection of Roosevelt Boulevard & Red Lion Road.
www.marejournal.com Upcoming Spotlight SPRING PREVIEW
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Founded 1946 A Premier Student Housing Investment Company Committed to Excellence
Acquisitions/Investments Property Management
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APRIL 16, 2013
8th Annual NYC Development Finance Conference
MORNING KEYNOTE Robert K. Steel, Deputy Mayor for Economic Development MORNING SESSIONS • Industry Perspectives on NYC Development Finance Programs • Resiliency Strategies after Hurricane Sandy • New York State Development Finance AFTERNOON SESSIONS • Attracting and Accessing Capital • Trends and Innovations: Case Studies in Tax Credit Finance • A Decade of Change: Rebuilding a Burgeoning Lower Manhattan • Finance Forward: A Conversation for a Greater New York • Workshop: Discretionary Incentives • Fresh Food for Thought: Financing Food Retail Programs: Overview from Albany • Navigating Housing Finance Tools • Workshop: Tax Credits Primer
April 16th • Brookfield Place 250 Vesey Street, 29th Floor • New York, NY 10281
The New York City Economic Development Corporation invites developers, not-for-profits, community development entities, investors, and others to the 8th Annual Development Finance Conference. Take advantage of a rare opportunity to meet top professionals in the development industry and learn how to utilize and benefit from key finance tools and incentives. We are excited to offer a full day of thought-provoking and educational programming, followed by an evening of cocktails and networking. With over 20 event speakers and panelists from top public and private institutions in the development industry, key agenda areas will feature Tax Credit Programs, such as New Market Tax Credits and Historic Tax Credits, New York City Industrial Development Agency programs, Build NYC tax exempt financing, New York State Excelsior, and many other informative topics.
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Mid Atlantic R eal E state J ournal Publisher ............................................................................Linda Christman Publisher ...............................................................................Joe Christman Section Publisher ................................................................Elaine Fanning Section Publisher ....................................................................Steve Kelley Senior Editor/Graphic Artist ................................................ Karen Vachon Office Manager ....................................................................Joanne Gavaza Contributing Columnists ............................................Tim Snodgrass, J. D. 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 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
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To advertise, call 1-800-584-1062 Aldo Design Group..............................................14A All-Rite Construction............................................9B ALT Realty............................................................2B Ameribid..............................................................30C Auction Directory..................................................4A Azarian Group.....................................................25C Aztec....................................................................20C Bayshore Recycling...............................................9A Bennet Williams..................................................27A Bennett Williams....................................... 3,7B,10C Berger..................................................................18C BL Companies.......................................................8B Bohler Engineering...............................................6B Boyle Construction..............................................24C BR Kreider & Son.................................................3B Business Card Directory.....................................25A Bussel....................................................................6C Capitol Aerials.......................................................6A CBRE-DC. .............................................................4C Colliers...................................................................9C Descipio. ..............................................................21C DMR.....................................................................27C Earth Engineering Inc................................ 12A,11B Eastern Union.....................................................17C Entech....................................................................7A Fameco.................................................................28C Fowler............................................................18, 24A Fox Rothchild......................................................29C Gebroe-Hammer..................................................16C Gilbeaux Associates, PC.......................................6A Haftek CWS. .......................................................12A Harvey Hanna & Associates...............................27A HFF...................................................................... 1-C Hinerfeld. ............................................................27A Hutchinson Mechanical Services.........................8A IREM...................................................................23A JOTTAN Inc..................................................... 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By Tim Snodgrass, J. D. Delaware Statutory Trusts (“DST’s”) . . .” The Future of Fractional Ownership?”
D
e l awa r e S t a t u t o r y Trust’s (DST’s) became relevant to the 1031
fractional ownership market in 2004, with the assistance of some very focused professionals (lawyers and business persons), and the blessing of the Internal Revenue Service (see Revenue Procedure 2004-33). “What did the IRS say, and what does it mean to investors doing 1031 exchanges”? First of all, they said that a beneficial interest in a DST qualifies as a real property inter- est for purposes of IRC Section 1031. That means you can defer capital gain (as of today has gone form 15% to 20%, plus a 3.8% Healthcare tax) via a 1031 exchange, with a replacement property that is a beneficial in- terest in a trust. Prior to this Revenue Proce- dure, most fractional ownership replacement properties were done in Tenant in Common (TIC) structures. This is where the investor owned a fractional ownership in a larger property with other investors, with great pains taken under Revenue Procedure 2002-22 to ensure these ownership interest were NOT partnership interests for purposes of IRC Section 1031 (investors had to hold title, and have the benefits and burdens of real property ownership and control so as not to be construed as a partnership). While many of these structures allowed inves- tors to own a smaller part of a larger property. Under the stress of the downturn in 2008, many of those structures felt the pres- sure of some of the structural requirements mandated by the IRS under the Revenue Proce- dure, Specifically, in certain cir- cumstances it became difficult to handle disagreements between owners if all the investors in a TIC property did not agree with each other on how to proceed, especially when time was of the essence. What are the benefits of DST fractional ownership? There is only one borrower and closing statement, and investors do not have to sign “bad boy” carve outs from lenders, which required the investors and borrowers in previous TIC structures to state they would not act in a manner to cause a default under the
loan, thus the increasing the liability if they were to commit one of these acts. Commercial real estate lenders love this structure as they only have one “borrower” to deal with, and not up to 35 different borrowers (as was allowed under the Revenue Procedure). This is the case no matter how many investors are in a DST investment. There is only one Manager, or specifically, a Trustee for the property. Again, this is both a benefit and a burden. Distin- guished from a TIC investment, DST’s have a set Sponsor con- trolled Trustee, with the inves- tors being completely passive. In situations that require quick ac- tion, there is no logjam with any disagreements between manage- ment and investors. Manage- ment makes the decisions. There can be multiple proper- ties within the DST, thus creat- ing a “portfolio” within the DST. There are several Sponsors of DST investments in the market that take Net Lease or Multi family properties, with different credit profiles, and wrap them into one DST. Under the DST structure, investors can come in with much lower minimums, since the number of investors is not an issue any more. It used to be acceptable practice that lenders would not allow more than 35 investors under a TIC fractional ownership structure. Under a DST, combined with the newly enacted JOBS Act of 2012, there can be up to 2000 investors in a DST. This means lower minimums and the ability for investors to spread risk with their capital. Generally speaking, DST frac- tional ownership investments are structured with two types of commercial real estate, Net Lease properties (Retail) and Multi-Family properties (Apart- ments). Any property that is best
suited for properties subject to a long-term lease to a creditworthy tenant on a triple-net basis, and/ or can also successfully be used with a “master lease” structure. Other property types used in DST’s include university and senior housing, hospitality, and self-storage facilities. “What are the burdens of DST structure”? The Trustee cannot commit one of the “seven deadly sins” of DST ownership. They are as follows: A Trustee: (1) cannot receive new capital after an offering is closed; (2) cannot renegotiate or enter into new mortgage debt unless there is a tenant bankruptcy or insolvency; (3) cannot renegotiate any of its property leases or enter into any new leases unless there is a ten- ant bankruptcy or insolvency; (4) cannot reinvest the proceeds from the sale of its property; (5) cannot redevelop property, and in fact is limited to performing only normal maintenance and minor non-structural improvements unless it is required to do more by law; (6) must hold its reserves in short-term debt obligations; and (7) must distribute all cash, other than normal reserves, on a current basis. When issues arise that a DST cannot address due to the “seven deadly sins,” it automatically converts into an LLC. While this conversion inhibits investors’ ability to do future Section 1031 transactions, it allows property emergencies to be dealt with ap- propriately. As the commercial property recovery continues, and more in- vestors utilize IRC Section 1031 to defer capital gains, DST’s may be a viable solution for the future of fractional ownership. Timothy Snodgrass J.D. is president of AXXCESS Capi- tal. Axxcess Capital is a mar- keting Partner for Covington Realty. n
Mid Atlantic Real Estate Journal — March 29 - April 11, 2013 — 3A
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M id A tlAntic R eAl e stAte J ouRnAl Marvin of Metro Commercial Realty represents tenant Summit Realty & Cushman & Wakefield brokers 58,56 s/f lease
They wrote the policy.
We make sure they write the check.
F
LANDERS, NJ —Weis Markets has signed a lease for 58,546 s/f at
Sutton Plaza on Rte. 206. The landlord was represent- ed by Bob Delia of Summit Realty LLC , and Rick Riz- zuto of C ushman & Wake- field . The tenant was represented by Glen Marvin of Metro Commercial Realty . Sutton Plaza is a 163,500 s/f Shopping Center owned by Armstrong Capital. Tenants include Tractor Supply, Dollar Tree, GNC, Dol- lar Tree, PNC and Super Cuts. Weis Markets has leased the space formerly occupied by A&P. n
M. MILLER & SON Public Adjusters Since 1960
1211 Liberty Ave., Hillside, NJ 07205 � Tel: 908-355-4800 adjuster@mmillerson.com � www.mmillerson.com
Sutton Plaza on Rte. 206 in Flanders aerial
Colliers International facilitates sale of four Center City commercial & industrial properties totaling $1.1m
Covington Realty Partners arranges 1031 exchange property ownership through Delaware StatutoryTrusts (DST’s), giving individuals the opportunity to invest in properties that were once available only to institutional investors. Class A net lease retail and multi-family properties positioned in primary markets and premier locations within specific secondary markets throughout the U.S. The Covington team has acquired well over $2.5 billion of commercial, retail, net lease retail and multi-family properties throughout the country. With our team's buy-side experience we have been able to identify opportunities within parameters often overlooked by others. Our capacity to carry out meticulous buy-side property due diligence and financial analysis helps mitigate risk, and increases the likelihood that a property's value will be preserved and/or appreciate. In addition to our in-house activities, we align with highly-regarded third-party organizations that perform market research, investigate legal and tax issues, consider financial metrics and conduct physical evaluations to help ensure the integrity of each transaction and your investment. We are actively seeking quality Net Lease and Multifamily properties to acquire for our investment portfolio. Please call us if you are in the market to sell. · · · · ·
PHILADELPHIA , PA — Colliers International concluded four Center City commercial and industrial real estate transactions: Sold: 446-50 N. 6th St. This is 6,510 s/f one-story building was sold to WXZ Properties, LLC for $480,000. The prop- erty will be occupied by Appolo Glass. Michael Barmash of Colliers International was the sole broker in this transaction; the seller was Philadelphia Sixth St.LP. Sold: 11-13-15 Strawberry
St. The 4,356 s/f four-story plus basement building (in- cluding two parking spots) was sold to 22 Front Street LP for $440,000. The property will be renovated to include office space and apartment units. Barmash was the sole broker in this transaction; the seller was Philadelphia Sixth Street LP. Sold: 1508-14 N. 5th St. This is a 13,200 s/f one-story warehouse was sold to York Snack Food Distribution, Inc. for $415,000. After extensive renovations the facility will
double the size of the buyer’s adjoining building. Barmash was the sole broker in this transaction. The seller was Sherwood Family LP. Sold: 1824-28 Germantown Ave. This is 14,421 s/f two-story industrial building was sold to Visual Infinity for $250,000. After renovations, the building will be used as a video produc- tion facility. Nigel Richards of CBPreferred represented the buyer. Barmash represented the seller, Yang Han Lo & Mui Chu Lo. n
Brian Kennedy -Vice President Covington Realty Partners 135 N. Meramec Ave., Suite 500 St. Louis, MO 63105 Office: 314-727-2424x206 Fax: 314-727-2434 Cell: 314-651-8024 bkennedy@covingtonrealtypartners.com
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A — March 29 - April 11, 2013 — Mid Atlantic Real Estate Journal www.marejournal.com 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
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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Major IndustrIal real estate auctIon 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. +/- 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)
ATTN REALTORS: Pre-registered (by 5 pm 4/18/13) broker participation is encouraged and compensated!!
Please contact Kelly Strauss for more information: 540.226.1279 Nicholls Auction Marketing Group www.nichollsauction.com
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Mid Atlantic Real Estate Journal — Green Buildings — March 29 - April 11, 2013 — A
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Clarion Partners & Cassidy Turley lead process to achieve highest level of LEED Certification The McPherson Building in Washington, DC receives LEED Platinum EB Certification
W
ASHINGTON, DC — Cassidy Turley announced that the
agement required to achieve the certification. The LEED Platinum certification of the building was based on modi- fications to the operations and maintenance procedures that positively impacted the building itself and the broader community. The focus of the efforts was on improving en- ergy performance through the implementation of various en- ergy conservation strategies, reducing the consumption of potable water, optimizing indoor environmental qual- ity, improving the recycling program, and offsetting the building’s energy consumption with Renewable Energy Cred- its (RECs) generated by wind power. Additional features include: •Achieved an ENERGY STAR score of 92 • Recycled over 60% of the buildings waste stream • Over 75% of building occu- pants use alternatives to sin- gle occupancy vehicles when commuting, helping to reduce the overall carbon footprint of the building. n
McPherson Building, located at 901 15th St. NW and owned by Clarion Partners , has been awarded LEED for Ex- isting Buildings Platinum certification. The McPherson Building is a 12-story, 246,014 s/f office building. LEED is the nation’s preeminent program for the design, construction and operation of high per- formance green buildings, established by the U.S. Green Building Council (USGBC) and verified by the Green Building Certification In- stitute (GBCI) . “We are pleased and grati- fied to achieve LEEDPlatinum certification for theMcPherson Building, in support of Clarion Partners’ goal to create a more sustainable and efficient workplace for the tenants at McPherson Building,” said Nicole Snarski , sustainabil- ity project manager with Cas- sidy Turley. “An engaged and devoted ownership combined with excited and motivated Dayton, NJ — Solis Part- ners , a commercial solar devel- oper, recently completed a 1.82 MW rooftop solar electric sys- tem at Freeze’s manufacturing and distribution facility. Solis Partners designed, engi- neered and constructed the so- lar PV system on the roof of the 320,000 s/f facility. The system operates under a full service PPA allowing Freeze to receive all the benefits of onsite solar electric generation without any capital cost. The solar array consists of 6,994 panels that will generate more than 2.1 million kilowatt hours of clean energy in the first year or about 80% of Freeze’s annual electricity needs. Over the life of the system, this will equate to the reduction of more than 35,000 metric tons of CO2 gas emissions roughly equiva- lent to the impact of taking
tenants allowed us to attain this elite green building sta- tus.” “We are proud that The McPherson Building has achieved LEED Platinum status,” said Marc DeLuca , managing director at Clarion Partners. “As a leading real estate investor in major mar- kets across the United States as well as in Washington, DC, Clarion Partners is committed McPherson Building Lobby
901 15th St. NW
Bennett , property manager with Cassidy Turley. “We kept tenants informed with regular meetings, conducted indoor air quality testing, implemented a green cleaning program, and used MERV 13 filters to filter the Outdoor Air that is brought into the building,” she continued. Cassidy Turley’s Sustain- ability Services team handled the day-to-day project man-
to responsible management practices across our portfolio. The McPherson Building is an outstanding example of how sustainable operations can be achieved with thoughtful programs of capital improve- ment.” “Throughout the certifica- tion process, tenant comfort and satisfaction remained a priority for the property man- agement team,” said Betsy
Solis Partners completes 1.82MW rooftop solar installation at at Freeze’s NJ manufacturing and distribution facility
7,300 cars off the road. “Freeze is setting a strong example of how to develop and incorporate sustainable prac- tices into a business in order to become more efficient and competitive,” said Jamie Hahn, same time meet our sustainabil- ity goals,” said Charlie Tebele, CEO of Freeze. “Our commit- ment to renewable energy solu- tions will help ensure a cleaner environment, while saving our customers money.” n The solar array consists of 6,994 panels that will generate more than 2.1 million kilowatt hours of clean energy in the first year or about 80 percent of Freeze’s annual electricity needs co-founder and managing di- rector of Solis Partners. “They continually look for ways to improve their business and its effect on the environment. In addition to helping the company reduce its carbon footprint, the solar installation will lower operating costs and serve as a hedge against future rate increases.” “The solar panels installed will allow us to increase our net operating income and at the
A — March 29 - April 11, 2013 — Green Buildings — Mid Atlantic Real Estate Journal
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G reen B uildings
Creating the perfect environment
ALVERN, PA — For the second con- secutive year, the In energy costs during the last four years Liberty Property Trust saves tenants $5 million+ M
• MEP Design • Sprinkler Design • Commissioning • Energy Conservation and incentives
savings in partnership with tenants. “Landlords often don’t want to invest in ways by which only tenants receive direct savings, and tenants are often less enthusiastic about investing because they don’t have ownership,” said Marla Thalheimer , director of sustainability for Liberty. “Landlord/tenant partner- ships can result in highly suc- cessful outcomes. ‘LEEP,’ for example, is designed so that we can work with tenants on benchmarking their own energy usage data and then provide them with ongoing reports and ideas on ways to save energy. This results in very real energy savings for tenants and more efficient buildings for Liberty.” According to Bob Percia- sepe , acting administrator, U.S. Environmental Protec- tion Agency, Liberty was selected as an Energy Star Partner of the Year because, “Superior energy manage- ment is our most cost-effec- tive climate strategy and Lib- erty Property Trust continues to exemplify leadership in this category. The company’s innovative practices provide a model for energy manage- ment in the places we work, shop, and play. These strate- gies help the bottom line and support the well-being of families across America by reducing pollution and pro-
tecting the environment.” Liberty also proactively brings energy saving pro- grams and ideas to tenants and the public through the Liberty Green Guide web- site. The site is a source of information and case studies highlighting energy saving ideas and initiatives that are useful to both tenants and others in the wider com- munity. EPA’s annual ENERGY STAR Awards honor orga- nizations that have made outstanding contributions to protecting the environment through superior energy effi- ciency. The awardwinners are selected from about 20,000 partners that participate in the ENERGY STAR program and were recognized at an awards ceremony in Wash- ington, D.C. Over the past 20 years, American families and businesses have saved nearly $230 billion on utility bills and prevented greenhouse gas emissions equal to those from more than 350 million vehicles with help from EN- ERGY STAR. ENERGY STAR was intro- duced by the U.S. Environ- mental Protection Agency in 1992 as a voluntary market- based partnership to reduce greenhouse gas emissions through increased energy efficiency. About 20,000 orga- nizations are ENERGY STAR partners. n
U.S. Envi- ronmental Protection A g e n c y (EPA) has named Lib- erty Prop- erty Trust a 2013 EN- ERGY STAR
PO Box 782, Voorhees, NJ 08043 P: 856-988-1890 Email: info@gilbeauxassociates.com www.gilbeauxassociates.com Contact: Jeff Gilbeaux
Marla Thalheimer
Partner of the Year for strate- gicallymanaging and improv- ing the energy efficiency of its office and industrial building portfolio. Since benchmark- ing its energy use across its portfolio in 2008, the com- pany has saved its tenants more than $5 million in the 130+ buildings in which it controls energy flow. For more than a decade, Liberty Property Trust has led the commercial real es- tate industry in the devel- opment, management and operations of sustainable buildings. The company has certified more than 100 build- ings with Energy Star and de- veloped more than 40 LEED commercial buildings. It has designed and implemented innovative programs such as Building Wide Access Net- work, a proprietary real-time energy management system, and “LEEP” – the Liberty En- ergy Efficiency Partnership program – which creates a “win-win” scenario for energy
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A — March 29 - April 11, 2013 — Green Buildings — Mid Atlantic Real Estate Journal
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G reen B uildings Repurposing 110,000s/f CENTRA at Metropark office bldg. Kohn Pedersen Fox Associates obtain Nat’l. AIA Design Award
I
SELIN, NJ — KohnPed- ersen Fox Associates (KPF) has been awarded a National Honor Award by the American Institute of Ar- chitects (AIA) , the Institute’s highest honor, for its repurpos- ing of the five-story, 110,000 s/f CENTRA at Metropark office building located in Iselin. The AIA is a leading profes- sional membership association for licensed architects, emerg- ing professionals and allied partners. Its Design Awards program recognizes works that exemplify excellence in archi- tecture, interior architecture
and urban design. CENTRA at Metropark was one of 28 re- cipients selected from over 700 total submissions from around the world. The awards will be conferred at the AIA 2013 Na- tional Convention and Design Exposition, which will be held in Denver, Colo., in June. Instead of tearing down the existing structure, which was in bad condition and func- tioning below standards, the architect advised their cli- ent, Hampshire Real Estate Companies , to salvage valu- able components and recycle the structure to work for pro-
spective tenants. Among their many consider- ations was to make CENTRAas sustainable as possible, and for it to fit in with the natural sur- roundings of the 19-acre site. The building was redesigned to meet the U.S. Green Building Council’s Leadership Energy and Environmental Design (LEED) certification and has achieved a LEED Gold level. CENTRA is located near the Garden State Pkwy.,in the heart of MetroPark Station. The station, which straddles the border between Edison, and the Iselin portion of Wood- bridge Twp., is the busiest New Jersey transit train station apart from the city terminals, with over 7,000 daily commut- ers. It also serves Amtrak. “The impact that this build- ing has on the Parkway has resulted in improvements of neighboring structures, proving that design can have a ripple effect in an otherwise mundane context,” said the design jury. The existing building has been made over completely, except for the overall original shape, which has become the structural support for an ex- tended fourth floor. The original floor slabs and steel structure were retained and enclosed within a new tinted class cur- tain wall. The new L-shaped fourth floor projects to create, in effect, an outside lobby that spans an area appearing to ex- ceed the square footage of each of the interior levels. “At center stage, the power- ful iconic column lifts the new addition 35 feet into the air, creating a grand canopy over the entry plaza,” said Hugh Trumbull , a design principal at KPF. “It is in this new urban place, where people meet and greet one another, that nature is most present. The building frames and reframes the land- scape; its skin captures the lush green environment and reflects natural light at every turn.” The jury also recognized the building as “an excellent ex- ample of the value of creatively reusing existing buildings and their embodied energy in lieu of tearing down and building new.” A desire to curb both cost and waste inspired the retrofit, said Trumbull. “It’s a much less expensive option, and it’s also the option that makes the most sense for a client who wants to create an environmentally responsible building.” n
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Mid Atlantic Real Estate Journal — Green Buildings — March 29 - April 11, 2013 — A
www.marejournal.com
R enewable & A lternative E nergy
RENTON, NJ — Highlighting its insti- tutional commitment With the “2013 Land Use Legacy Award” Urban Land Institute honors New Jersey Economic Development Authority T throughout the state.”
Growth (ERG) programs. In total, these programs will help to spur the private investment of nearly $5 bil- lion, and support the creation of an estimated 15,875 new, permanent jobs and 20,180 construction jobs, as well as the retention of 2,935 exist- ing jobs that were “at risk” of leaving New Jersey. The EDA also offers a host of small business lending pro- grams in partnership with New Jersey’s banking com- munity to increase access to capital and drive the growth of local jobs and community investment. n
In accepting the award, EDA President and COO Tim Lizura noted that the “talented and dedicated staff at the EDA” who put these economic tools to use help to make the Authority such an effective organization. Under the Christie Ad- ministration, the EDA has helped to advance significant projects in New Jersey’s urban centers through the enhanced Urban Transit Hub Tax Credit (Hub) and Eco- nomic Redevelopment and
to community-building and the revitalization of New Jersey’s urban core, th e New Jersey Economic Devel- opment Authority (EDA) received the “2013 Land Use Legacy Award” from the Urban Land Institute- Northern New Jersey (ULI-NNJ) at the nonprofit organization’s 75th Anniver- sary Legacy Awards dinner last night. “The EDAhas always been an innovative partner of the private sector, and has played a key role in directing capital to urban communities,” said RobertAntonicello, ULI-NNJ chair and executive director of the Jersey City Redevelop- ment Agency. “This award signifies our appreciation for the EDA’s many contribu- tions to the cities, towns and communities that make New Jersey such a great place to live and work.” Coinciding with its 75th anniversary, the theme of ULI-NNJ’s awards ceremony was “Looking Forward, Look- ing Back.” The ceremony served to honor those who have worked to redevelop and stimulate investment in New Jersey’s cities, and look forward to address future challenges facing the real estate development industry. The awards are intended to recognize and honor the pro- fessional legacies of those in- dividuals and organizations whose contributions to New Jersey’s urban development most closely mirror the mis- sion of ULI-NNJ. “The EDAhas worked with a host of public and private partners to successfully cata- lyze large-scale redevelop- ment projects that are trans- forming neighborhoods, cre- ating jobs for local residents, and stimulating economic activity that benefits all New Jerseyans,” said EDA CEOMichele Brown. “We are honored to accept this award, and we thank the Governor and Legislature for providing us with the economic tools needed to attract significant investment to our urban centers, encourage sustain- able development in our communities, and foster the growth of small businesses
The New Jersey Economic Development Authority developed the Wa- terfront Technology Center at Camden, the first public project in the State of New Jersey to receive LEED Gold certification.
10A — March 29 - April 11, 2013 — Green Buildings — Mid Atlantic Real Estate Journal
www.marejournal.com
Letter from the Executive Director
Dear Friends and Colleagues:
USGBC NJ just held our Annual Retreat, when we review the prior year and set a course for the year ahead. This is a membership organization, with a strong, active board. The events of this past year have presented a renewed perspective on the importance of resiliency – which is arguably synonymous with sustainability. Science, and now experience, tells us that our weather systems are intensifying, and that climate change is not just a theory. Whether or not one buys-into this model, we would all agree that the reconstruction and new construction following Hurricane Sandy requires a new vision and set of best practices, both in commercial and residential scenarios. Many NJ citizens are faced with the daunting task of rebuilding. They recognize the importance of understanding the priorities and practices of sustainability and residency, and they wish to communicate these to their building professionals. The NJ Department of Labor has recognized this issue and has launched an education- al grant program among which is a module on recovery for NJ. USGBC NJ has been awarded one of those modules and we are offering fully-funded informational and training sessions to businesses and private citizens to help navigate the complexities of sustainable reconstruction and new construction.
BOARD OF DIRECTORS CHAIR Ed Seliga Advanced Solar Products, Inc. VICE CHAIR Wayne D. DeFeo, LEED AP DeFeo Associates TREASURER SECRETARY Faith Taylor Wyndham Worldwide PAST CHAIR Anastasia Harrison, AIA, LEED AP Consultant DIRECTORS David Cardella Cardella Waste Services Jeremy Cressman, LEED AP American Standard Brands Zachary Gallagher, PE, LEED AP Alliance Environmental & Natural Systems Utilities Bill Gates, LEED AP Hunt Construction Group Tom Hales Herman Miller, Inc. Tony Marano The Marano Group, Inc. Vance Merolla, P.E. Colgate-Palmolive Company Brad Miller, PE, PP, LEED AP BD+C NJ Meadowlands Commission Attilio Rivetti, LEED AP Turner Construction Company Robert Schmitt The Hampshire Companies Andy Topinka, CPMR Technical Group Services, Inc. Ed Walsh, P.E. Avison Young Gregg Woodruff, PP, AICP, LEED AP Langan Engineering & Environmental Services, Inc. GENERAL COUNSEL Harry E. McLellan, Esq, LEED AP BD+C McLellan & Associates, LLC EXECUTIVE DIRECTOR Florence Block LEED Green Associate CHAPTER COORDINATOR Mary Ellen Garrigus Communications & Membership Coordinator Medea Villere ’ www.usgbcnj.org RJ Donnelly, LEED AP Donnelly Industries, Inc.
FLORENCE BLOCK
Additionally USGBC NJ is partnering with NJ Natural Gas to bring public informational sessions to the counties in the NJ Shore most impacted by the Super Storm. This will include presentations by renowned professionals sharing information on incentives available to help fund sustainable construction. The first of these sessions is tentatively scheduled for April 18th in Bay Head. If you would like additional information or would like for your business to receive fully funded LEED and Green Building Training (including LEED Exam Prep) all of which also offer CEUs, please contact me at executivedirector@usgbcnj.org.
Sincerely,
Florence Block LEED Green Associate Executive Director, USGBC NJ
Chapter Events 4/11/13- LEED 201 Core Concepts and Strategies & LEED Green Associate Exam Preparation. Location: NJ Carpenters Funds Training Facility, Edison, NJ. 4/11/13- USGBC NJ Green Schools Committee presents a Tour of the LEED Platinum Neptune Midtown Community Elementary School. Neptune, NJ. The event is FREE, but registration is requested.
4/19/13- Green Buildings and their Unintended Risks. Special session led by specialists from Chubb’s Group of Insurance Companies. Space is limited. Warren, NJ.
4/19 & 4/ 26/13- LEED for Administrators. NJ Sustainable Schools Consortium in collaboration with NJ Association of School Administrators and USGBC NJ is offering a 2-part series. Trenton, NJ.
For details on all USGBC NJ events, visit www.usgbcnj.org
Number of New Jersey chapter members:
1229
Number of USGBC member Companies in NJ:
275
Number of LEED Accredited Professionals in NJ:
3173
Number of LEED registered projects in NJ:
424
Number of LEED certified projects in NJ:
192
www.marejournal.com O WNERS , D EVELOPERS & M ANAGERS F EATURING M ULTIFAMILY -POA Roseland to manage the $262.5 million property in the Crystal City section of Arlington, VA Mack-Cali enters DC multi-family market through joint venture acquisition of 828-unit property A RLINGTON, VA — Mack-Cali Realty Corporat ion an- Mid Atlantic Real Estate Journal — March 29 - April 11, 2013 — 11A
Hackensack’s “Hill” section in 1972, The Ivanhoe, which is still considered by many to be the premier apartment building in the county. The Sanzari’s commitment to Hackensack’s transformation continued with development of the Court Plaza complex, and they also transformed an aging block of buildings on Essex St. into the spectacular 85,000 s/f, four-story Alfred N. Sanzari Medical Arts Building. Alfred Sanzari was described as a man with integrity who displayed confidence and sincer- ity when he dealt with people. Even after all of his success, Sanzari was never one to rest on his laurels according to real estate professionals who knew him, and he continued to work long hours every day of his 55- year career. “It is appropriate that we recognize Alfred and Mary Sanzari’s contributions to the local community by creating this garden in their honor,” said Andrew Gerleit , Alfred San- zari Enterprises’ vice-president of construction. ■ studios, one, two, and three bedrooms and boast large, well laid out floor plans. The prop- erty, which is 95.7% leased, was acquired from Avalon Bay. Mack-Cal i ’s Roseland subsidiary will manage the property and will oversee the renovation of the unrented units to “designer” standards, repositioning the asset to bring it in line with the best- in-class standards Roseland is known for. Mitchell Hersh , presi- dent and CEO of Mack-Cali, said, “The Mack-Cali/Roseland team is thrilled to be entering the Metro D.C. market, one that offers enormous poten- tial. When we’ve completed the renovation project, we are confident that we’ll be able to command rents at the highest end of the market.” ■
nounced that in a joint venture with a fund advised by UBS Global Asset Management it has acquired the 828-unit multi-family property known as Crystal House in the Crys- tal City section of Arlington, Virginia, for $262.5 million. The acquisition includes land to accommodate the develop- ment of 295 additional units, 252 of which are currently approved. The venture has obtained a $165 million mort- gage loan fromWalker & Dun- lop, LLC under the Delegated Underwriting and Servicing program of Fannie Mae. The luxury multi-family property currently consists of two twelve-story towers with garage and surface parking. The units are comprised of HACKENSACK, NJ — Al- fred Sanzari Enterprises has developed a new public garden adjacent to its Court Plaza of- fice complex in Hackensack, to honor the legacy of Alfred and Mary Sanzari, co-founders of the real estate development firm. Located on the corner of Main and Essex streets, the 10,000 s/f site will open this winter and be dedicated to the city as “The Alfred and Mary Sanzari Garden.” The area was designed as a place to relax and enjoy nature for members of the community as well as Court Plaza’s ten- ants and area professionals. It is situated in a hub of cor- porate activity across from the courthouse, andAlfred Sanzari Enterprises is headquartered in the complex. The garden features a foun- tain, brick and stone pathways and walls, benches and decora- tive lighting, all surrounded by lush plantings. Oversized stone steps and a bronze plaque inscribed with “Because of You” mark the garden’s entrance. Ev- ergreen varieties provide inter-
Crystal House in the Crystal City
Meumann Associates designs public garden developed by Alfred Sanzari Enterprises located in Hackensack, NJ
LoIacono said. “The Garden is developing into something that is absolutely stunning, and it will be a wonderful gateway to Hackensack’s downtown area. We are extremely grateful for this gift from Alfred Sanzari Enterprises.” A key ingredient in the suc- cess of Alfred Sanzari Enter- prises always is its ongoing commitment to enhance the quality of life for residents in areas in which it is active. For David Sanzari, who conceived the idea of creating a garden, this addition to the city’s land- scape is a fitting tribute to his parents and the principles on which the company was founded. The Legacy of Alfred and Mary Sanzari Alfred Sanzari was a lifelong resident of Hackensack, and he and Mary lived in the City for 70 years. They founded Alfred Sanzari Enterprises in 1945. The company was instru- mental in the revitalization of Hackensack, and Sanzari was one of the first to build a luxury apartment complex on
New Public Garden in Hackensack in honor of company founders Alfred and Mary Sanzari
est during the winter months, and in the summer, seasonal flowers, perennials, shrubs and other foliage will enhance the garden’s aesthetic. “We purchased this site from Bank of America and, after giv- ing it some thought, I decided to have a beautiful landscaped area designed to honor my parents, hence the Alfred and Mary Sanzari Garden was built,” said president and CEO David Sanzari . Designed by landscape archi-
tect Brad Meumann of Meu- mannAssociates , the Garden is consistent with Hackensack’s Main St. Rehabilitation Plan, whichwas adopted by the Coun- cil in June, 2012. According to Stephen LoIacono, city man- ager, the plan was intended to transform the city’s downtown into a walkable, livable and sustainable community. “We are thrilled about the garden, and the council has supported this project from the moment we heard about it,”
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