R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news
ISSUE HIGHLIGHTS Volume 25 Issue 6 April 26 - May 9, 2013 Services & Suppliers Spotlight
Loan was placed with a CMBS lender on a 10 year term Turley & Proscia of Cronheim secures $10.3 million for King Of Prussia Mob
K
ing of Prussia, PA — David Turley and Janet Proscia
from application signing. The property is a brick-clad Federal-style office building located at the intersection of South Gulph Road and South Henderson Road in southern King of Prussia. It sits at the bottom of the exit ramp from a brand new interchange of the Schuylkill Expressway. The Property was originally built in 1946 as a schoolhouse and converted to medical office use in 2000. It is 82% occupied by nine tenants and anchored by a regional spine/orthopedic practice, a regional hand re- habilitation/therapy practice and private wealth manage- ment firm. n
of Cronheim Mortgage se- cured $10.3 million in financ- ing for a 74,326 s/f medical office building located just off the Schuylkill Expressway in King of Prussia. The loan was placed with a CMBS lender on a 10 year term with a 30 year amortization schedule. The client, a major Philly- based developer, had an up- coming loan maturity that required an expedited closing. In spite of losing a 5,000 s/f tenant during the Application process, Cronheim was able to get the loan closed in 45 days
10-14A Shopping Centers
Marzullo and Marlowe of CBRE’s Phila. Private Capital Group rep. seller Rockford Capital Partners acquires $7.7 million Wyomissing, PA office portfolio
Section B
Spring Preview
Wyomissing, PA — Rock- ford Capital Partners , based in Wilmington, DE announced the acquisition of 1105 Berkshire Blvd and 1150 Berkshire Blvd inWyomissing for $7.7 million, on behalf of its Rockford Real Estate Fund I . The class A suburban office buildings were acquired from Berkshire Office Partners, LP. Steve Marzullo and Jus- tinMarlowe, of CBRE’s Phil- adelphia Private Capital
Mid Atlantic R eal e state J ouRnal S pring p review
MidAtlantic RealEstateJournal—April26-May9,2013—SectionC
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RalphAnderson
ScottButler
ChrisCervelli
MariaDeGennaro
TraceyGoldstein
GaryGordon
BrennerGreen
MarkHasting
DavidHirschman
RobertHolland
EdHutchinson
StephenKarlbelk
CarolKeith
DavidMorrison
MindyLissner
BrendanScanlon
WilliamWaxman
BrianWhitmer
AmyNazdrowicz
DianeSchaefer
InsIde: 1031EXCHANGE DianeSchaefer,exchangeSolutionS..........................................................................ic-c ATTORNEY Scottc.Butler,eSquire,KaplinStewart....................................................................2c AUCTIONEER StephenKarlBelK,cai,aare,ameriBiD............................................................................3c COMMERCIALMORTGAGES Brennergreen,realpropertycapital, inc................................................................5c COMMERCIALREALESTATEATTORNEY garygorDon&traceygolDStein,feinStein,raiSS,Kelin& BooKer,l.l.c......4c DELAWAREBROKER DaviDr.morriSon,naiemoryhill.....................................................................................6c ENGINEERING&SURvEYING Stout&calDwell..................................................................................................................13c ENvIRONMENTALCONSULTING marKhaSting,hillmannconSulting..............................................................................20c FINANCING BrenDanh.Scanlon,northmarqcapital......................................................................7c
LANDSURvEYINGANDENGINEERING amynazDrowicz,lanDmarKScience&engineering..................................................8c LOANSpECIALIST regalBanK................................................................................................................................11c MECHANICALSERvICES eDhutchinSon,hutchinSonmechanicalServiceS....................................................9c MULTIFAMILY roBerthollanD,theKiSlaKcompany, inc...................................................................12c NEW JERSEY INDUSTRIALMARKET williamr.waxmananDminDyliSSner,cBre................................................................14c OFFICEETIQUETTE carola.Keith,puzzle2purpoSe,llc.............................................................................16c pROpERTYMANAGEMENT chriScervelli,michaelcervellirealeState...........................................................15c RENTRECEIvER DaviDhirSchman,DaviDhirSchmanrealtycompany...............................................17c SOUTHERNNEWJERSEYBROKER Brian J.whitmer,ccim,cuShman&waKefielDofnJ,inc........................................18c TAXSERvICES mariaDegennaro&ralphanDerSon,thegreengroup.......................................10c
Section C
Directory
Upcoming Spotlight Industrial/Distribution Centers Owners, Developers & Managers.... 5-16A Green Buildings............................. 17-20A Sales & Leases............................... 24-25A Shopping Centers................... Section B Spring Preview....................... Section C
1105 Berkshire Blvd.
Group , represented the seller and brokered the transaction. The two building portfolio is anchored by Travelers Insur- ance, which occupies more than 80% of 1105 Berkshire. The properties, totaling more than 96,000 s/f, provide a stable existing tenant base
coupled with value-add op- portunity through targeted capital improvements and lease-up of vacant space. Rockford Capital has been actively growing through various acquisitions in the mid-Atlantic over the past two years. This transaction
marks the final investment for Rockford’s current value- added fund. Rockford Capi- tal is a private real estate firm focused on acquiring and managing value-oriented and opportunistic real estate in- vestments in the mid-Atlantic region. n
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Inside Cover A — April 26 - May 9, 2013 — Mid Atlantic Real Estate Journal
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Mid Atlantic Real Estate Journal — April 26 - May 9, 2013 — A
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Getty Realty Corp. Directs Immediate Sale
6 GASOLINE STATIONS
New Jersey (21) Pennsylvania (14)
Delaware (2) Maryland (1) Additional Sites Available In Connecticut (4) Illinois (1) Massachusetts (16) New Hampshire (1) New York (42) North Carolina (3) Rhode Island (4) Vermont (1)
32 COMMERCIAL AND RETAIL PROPERTIES Sites from 9,890 sf to 1.8 ac. Kiosks and buildings up to 5,000 sf. Sites also available for lease.
SEALED BID DEADLINE: JULY 10
Minimum Bids Up to 50% Off the Original Asking Prices
3% Broker Co-op
NRC.com/1304 800.747.3342 x1304 Sale is conducted in conjunction with the following state-licensed brokers: NJ - NRC Realty Advisors of New Jersey, License #0897521, PA - Joseph J. Locke of Rental Max Realty, LLC, License #RM422251, DE - Continental Real Estate Group, Inc., License #RB-0003013, MD - Continental Real Estate Group, Inc., License #611425
A — April 26 - May 9, 2013 — Mid Atlantic Real Estate Journal MAREJ A dvertisers D irectory
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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 .......................................................... Chris Sayre 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 8 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
Mid Atlantic Real Estate Journal
To advertise, call 1-800-584-1062 Aldo Design Group................................................6A All-Rite Construction..........................................20B ALT Realty..........................................................10B AmeriBid...............................................................3C American Boiler Co.............................................12A Asset Preservation................................................4A B.R. Kreider & Son...............................................4B Barton Partners............................................... FC-B Beacon Commercial RE..................................IBC-C Bennett Williams................................................20B Bill Boards Directory...................................... IBC-A BL Companies.....................................................20B Bohler Engineering........................................... IC-B Brasler Properties...............................................19C Breslin Realty. ................................................IBC-B Business Card Directory.....................................27A Capitol Aerials.....................................................18A CBRE...................................................................14C Cervelli Management. ........................................15C CREATE................................................................8B Cushman & Wakefield........................................18C Deerwood Real Estate Capital.............................1C Door & Gate. .......................................................16C Earth Engineering................................................4B Ehrlich, Petriello, Gudin & Plaza......................13A Entech..................................................................18A Exchange Solutions........................................... IC-C FAMECO RE.........................................................3B Fortna Auctioneers. ............................................27A Fowler..................................................................21A FRK Attorneys at Law..........................................4C Gilbeaux Associates, PC.....................................18A Greenberg Gibbons...............................................8B Haftek CWS. .........................................................9A Hillmann Consulting..........................................20C Hirschman Realty Management........................17C Hutchinson Mechanical........................................9C IREM..............................................................22-23A Jewel Electric Supply Co....................................10A Jottan................................................................ BC-A Kaplin | Stewart...................................................2C Katz Properties..........................................6B, BC-B KW Commercial Group.........................................7B Landcore Engineering Consultants, PC..............3B Landmark..............................................................8C LEW Corporation..................................................6A Meridian Capital Group.................................. BC-C Metro Commercial RE..........................................4B ROCK.....................................................................4B NAI Emory Hill.....................................................6C NAI Summit........................................................10B NJAA. ..................................................................16A NorthMarq. ...........................................................7C NRC Realty & Capital Advisors...........................1A NorthMarq. ...........................................................3A P. Cooper Roofing................................................14A PennCap Properties............................................15A Poskanzer Skott Architects..................................7A M. Miller & Son.....................................................8A RD Management........................................... 16-17B Real Property Capital...........................................5C Regal Bank..........................................................11C Retail Brokerage Directory. ...............................18B Retail Business Card Directory. ........................19B Retailer Space Seeking Guide............................15B Rhino Realty Group............................................12B Security Resource. ................................................3A SILBERT.............................................................13B Specialty Building Systems................................ 11A St. John Properties.............................................11B Stout & Caldwell.................................................13C SUBWAY................................................................7B Target Building Construction. .............................9B The Azarian Group. ..............................................1B The Green Group................................................10C The Kislak Co......................................................12C TPD......................................................................12B TRG........................................................................2B USGBC NJ..........................................................20A Whitestone Associates........................................13B WP Realty..............................................................5B LMS Commercial RE............................................6B Zamir Equities......................................................2B
By Chris Sayre Net Investment Income Tax 3.8% & 1031 Exchange
T
he Affordable Care Act, which took ef- fect on January 1,
2013, imposed a new 3.8% tax on certain income. First of all the tax only applies to taxpayers with AGI greater than $200,000 for single and $250,000 if married. Next the tax is levied on the LESSER of net investment income or the amount of AGI over the above threshold limits. Net investment income (NIIT) is fairly broad and includes: interest income, dividends, rental income, and capital gains on the sale of property. These rules are contained in I.R.C. section 1411. It is easy to see that the threshold amount can be eas- ily exceeded in those years where real estate transactions occur. I.R.C. Section 1031 allows taxpayer to defer gain on the sale of real property, includ- ing long term capital gains and recaptured depreciation. Does it also defer the new tax on investment income? The I.R.S. has issued pro- posed regulations under I.R.C. section 1411 which contain this language: 5.C.2.ii “the income tax gain and loss recognition rules in chap- ter 1 apply for purposes of determining net gain under section 1411. Thus, for ex-
ample, to the extent gain from a like-kind exchange is not recognized for income tax pur- poses under section 1031, it is not recognized for purposes of determining net investment income under section 1411.” Thus 1031 exchanges are more powerful than ever. The Net Investment Income Tax (NIIT) also will not ap- ply to any amount of gain that is excluded from gross income under I.R.C. section 121. The pre-existing statu- tory exclusion in IRC section 121 exempts the first $250,000 ($500,000 in the case of a mar- ried couple) of gain recognized on the sale of a principal resi- dence from gross income for regular income tax purposes and, thus, from the NIIT. Here is an example of how this all works together: B and C, a married couple filing jointly, sell their princi- pal residence that they have owned and resided in for 2
of the last 5 years for $1 mil- lion. B and C’s cost basis in the home is $400,000. B and C’s realized gain on the sale is $600,000. The recognized gain subject to regular income taxes is $100,000 ($600,000 realized gain less the $500,000 IRC section 121 exclusion). B and C have $125,000 of other Net Investment Income, which brings B and C’s total Net In- vestment Income to $225,000. B and C’s modified adjusted gross income is $300,000 and exceeds the threshold amount of $250,000 by $50,000. B and C are subject to NIIT on the lesser of $225,000 ( Net In- vestment Income) or $50,000 (the amount B and C’s modi- fied adjusted gross income exceeds the $250,000 mar- ried filing jointly threshold). B and C owe Net Investment Income Tax of $1,900 ($50,000 X 3.8%). Chris Sayre, 1031x.com, Inc. in Denver, CO. n
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M id A tlantic R eal E state J ournal Abdy Realty Group represented the purchaser Kislak’sSquireshandles$5.325m sale of mixed-use properties
H
a s b r o u c k Heights and Montclair, NJ
— The Kislak Company, Inc. announced the $5.325 million sale of three commer- cial properties in Hasbrouck Heights and Montclair. In separate transactions, an 8,000 s/f retail center on Rte. 17 in Hasbrouck Heights sold for $1.815 million; a 14,000 s/f retail and office property on Church St. in Montclair sold for $2.225 million; and a mixed-use property with six retail spaces and five resi- dential units on Grove St. in Montclair sold for $1.28 mil- lilon. Vice president Robert Squires represented both parties in the Montclair sales and the seller in the Hasb- rouck Heights sale. Abdy Realty Group represented the purchaser in that sale. “The market for retail and mixed-use properties in desir- able locations is very strong, especially in northern New Jersey” said Squires. “Each of these properties represented an opportunity for investors to acquire a strong and stable property in a very sough-af- ter area. The Rte. 17 retail corridor in Bergen County is among the busiest in the state and Montclair has an ex- tremely vibrant downtown.” “Kislak has closed several other transactions with the seller,” added Squires. Financ- ing was provided by Woori America Bank . “Montclair is an extremely desirable market for all types of commercial and residential properties,” said Squires. “It is thriving community and the downtown includes a mix of local and national retailers. Once we were given an op- portunity to market the prop- erty, we quickly procured a purchaser, a long-time private investor who was eager to add the property to his portfolio of commercial and multifamily properties.” Financing was provided by Somerset Hills Bank . The Grove St. property in Montclair is a two-story build- ing with six retail spaces and five residential units. “Kislak was obtained on an exclusive basis to market and sell the property,” added Squires. “It had been in the same family for more than 60 years and its availability presented an extraordinary opportunity for investors.” n
50 Church Street in Montclair
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A — April 26 - May 9, 2013 — Mid Atlantic Real Estate Journal e Prints Reprint your articles and press releases as they appeared in the Mid Atlantic Real Estate Journal . Introductory rate for an e-print (printable pdf): $50 (one sided, 8.5 x 11 pdf) ; regular rate: $65 For double sided, larger versions, or traditional hard copies, please call for pricing.
www.marejournal.com M id A tlantic R eal E state J ournal By Pamela A. Michaels, Esq. Asset Preservation, Inc. The importance of fair market rent in a 1031 Exchange 1 up the costs of these repairs out- of-pocket. 031 exchange activity is con- tinuing to pick up along the East Coast for commercial
IRS challenged this exchange and claimed the property was con- sidered a ‘family home’ since the actual rent paid from the son to his father was considered slightly below market rent. However, in Adams, the re- placement property was in poor condition at the time of the taxpayer’s exchange. The tax- payer’s son had experience as a contractor and personally made extensive repairs to the property, and the son paid for the materials needed to perform the repairs. In addition, the taxpayer’s son lived in the property for the next four years and continued to maintain and repair the property, picking
The Tax Court determined that the rent received from the son, plus the value of the im- provements made by the son, constituted fair market rent. Consequently, the Court ruled there was no bargain rent. This case highlights the importance of receiving fair market rent when renting a property to a family member. Revenue Procedure 2008-16 Revenue Procedure 2008-16 addresses a safe harbor for vaca- tion homes held for investment and whether or not a dwelling unit qualifies as property held for productive use in a trade or business or for investment under Section 1031 of the Inter- nal Revenue Code. In Revenue Procedure 2008-16, it is noted that the dwelling unit must be rented “at a fair rental.” Later in this Revenue Procedure, in Sec- tion 4, Fair Rental is specifically defined, “For the purposes of this revenue procedure, whether a dwelling unit is rented at a fair rental is determined based on all the facts and circumstances that exist when the rental agreement is entered into. All rights and obligations of the parties to the rental agreement are taking into account.” The definition in this Revenue Procedure indicates that the IRS will look at all the facts and circumstances of a particular exchange to ascertain whether or not fair market rent was re- ceived. Planning Considerations When Renting To A Family Member 1. Rent at a price that is com- parable to other similar rental properties in the market. 2. The taxpayer should enter into a rental or lease agreement in the same manner they would with any tenant of an investment property. If a longer term rental, make sure the relationship is solely that of a landlord and tenant, the rent received is ap- propriate to the local market, and the terms of the rental agreement strictly construe the rights and responsibilities of the parties as a landlord and tenant. As always, investors should consult with a reputable tax and/or legal advisors about any proposed 1031 exchange and seek input from a knowledgeable Qualified Intermediary. Pamela A. Michaels, Esq. is VP and northeast division manager for Asset Preserva- tion, Inc. n
real estate in- vestors. A re- cent 2013 Tax Court decision, Adams v. Com- missioner, T.C. Memo 2013-7, demonstrates the importance
Pamela Michaels
for more information
of a taxpayer receiving fair mar- ket rent when desiring to obtain the tax deferral benefits of a 1031 exchange. InAdams, the taxpayer exchanged into a replacement property that was rented to the taxpayer’s son and family. The
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O wners , D evelopers & M anagers F eaturing S ervices & S uppliers
Mid Atlantic Real Estate Journal — April 26 - May 9, 2013 — A
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HILADELPHIA, PA — Michael Aylmer , assistant vice president For Lafayette Townes in West Chester, PA NorthMarq Capital arranges $1.187 million mortgage P
Baking Facility in Newark, NJ Hollister completes renovation on 72,000 s/f
NEWARK, NJ — Hollis- ter Construction Services (Hollister) , a full-service construction manager special- izing in corporate, educational, healthcare, industrial, retail, and residential construction, recently completed a com- prehensive renovation for Damascus Bakeries’ 72,000 s/f state-of-the-art baking fa- cility, located within a major distribution hub in Newark’s Urban Enterprise Zone at 60 McClellan St. Hollister gutted and entirely rebuilt the existing facility, which had been an old paper distribution center, demolish- ing warehouse partitions and equipment rooms and building all ancillary rooms to support the baking operations. This in- cluded building a flour silo that is fed by tanker trucks, as well as a mixing and scaling room built out of insulated metal panel. All new utilities were added, to support expansion and future construction of a freezer, along with all new elec- tric, gas and water distribution throughout the building. New offices were built, with an em- ployee locker room, break room and meeting room. “Newark is being revital- East Orange, NJ — The City Hall building in East Or- ange is sporting a new outlook on the world thanks to Crystal Window & Door Systems . Over 500 new energy efficient windows supplied by the na- tional award-winning manu- facturer have recently been installed in the historic build- ing. The window replacement project was a major part of the City Hall façade renovation and a key project in East Orange’s overall energy efficiency and conservation program for mu- nicipal buildings. “Crystal has supplied nu- merous historic and landmark building projects, but this one presented some interest- ing challenges, said Vincent Grieco , Crystal’s New York metro regional sales manager. “Through the concerted efforts of our sales and engineering
of NorthMarq ’s Philadelphia regional office, arranged first mortgage refinancing of $1.187 million for Lafayette Townes, an 11-unit, market-rate multi- family property located at 408 West Lafayette Street in West Chester. Financing was based on a 5-year term and a 30-year amortization schedule. NorthMarq arranged this financing for the borrower through its relationship with a local bank. n NEW BRUNSWICK, NJ — Capitalizing on the grow- ing appeal of downtown New Brunswick Pennrose Prop- erties has launched The George, its newest luxury rental building in the heart of New Brunswick’s downtown district. The new 14-story building features 104 upscale one- and two-bedroom rental resi- dences. “New Brunswick epitomizes the very best of downtownurban living, offering a perfect blend of dining, nightlife and cultural and recreational options, as well as the unique charm and flavor of a University town,” notes Tim Henkel , senior vice president of Pennrose Proper- ties. “We witnessed incredible SALISBURY, MD —Becker Morgan Group announced that Adam Jones was honored as the 2013 Surveyor of the Year by the DelawareAssociation of Surveyors. Candidates for Surveyor of the Year are nominated by Del- awareAssociation of Surveyors officers based on educational achievements; professional and technical society activities; civic, political and humanitar- ian activities; competence; and surveying and professional achievements. Jones’ experience includes
ized with the support of fam- ily-owned businesses like Da- mascus Bakery and Hollister is very proud to be a part of this movement,” said Kieran Flanagan , president. “As constructionmanagers, we can provide these companies as- sistance with design value en- gineering skills that respond to their needs for timely and cost efficient construction. We have a great working relation- ship with the City of Newark and this was an example of what we can offer both our clients and the broader com- munity.” n Damascus Bakeries’ interior
408 West Lafayette Street
Pennrose Properties launches The George in New Brunswick’s downtown district
to now introduce The George which will deliver a stimulat- ing live/work/play experience in a professionally-managed building situated along one of the City’s most identifiable shopping, entertainment and cultural centers.” The George was developed in accordance with guidelines set by New Jersey’s Clean Energy Program (NJCEP) Pay For Performance which encour- ages new construction develop- ments to achieve energy costs 15% below the current energy code. As a result, homes at The George are more environ- mentally-sensitive and more efficient than comparable new construction buildings while providing greater comfort and lower energy bills. n a graduate of Virginia Tech with a Masters of Architecture. Rigot’s project experience with Becker Morgan Group includes Red Clay New Elementary School inWilmington, DE; Lau- rel High School / Middle School in Laurel, DE; and Ocean City Convention Center Phase II - Theater in Ocean City, MD. Nadine Brittingham joins the Salisbury office as a graphic designer. She graduated with an Associates of Fine Arts in Graphic Design & Illustration from the Delaware College of Art and Design. n
Crystal Windows provide new outlook for East Orange City Hall
285 George Street
demand andmarket acceptance at The Vue and are excited
Becker Morgan Grp.’s Jones named 2013 Surveyor of the Year setting geodetic control, locat- ing topographic information, performing boundary retrace- ment, ALTA/ACSM surveys, and all aspect of construction stakeout utilizing a variety of equipment including Auto- matic Level, Total Station, Ro- botic Station, and GPS systems (RTK/Static).
personnel, we devised solu- tions for each of the project’s special needs.” Crystal worked closely with the project archi- tect KNTM Architects and a commercial window installa- tion firm, Window City, Inc. to meet the building’s historic and operational requirements related to panning systems, sightline alignment of stacked windows, true divided light replication and accommodation of window A/C units. n East Orange City Hall building
In other BeckerMorgan news, Kelly McCullen joins the firm as an administrative assistant and brings 14 years of office ex- perience. Sarah Rigot, LEED AP is an architectural designer in the Salisbury office. She is
6A — April 26 - May 9, 2013 — Owners, Developers & Managers — Mid Atlantic Real Estate Journal
www.marejournal.com O wners , D evelOpers & M anagers By Lee Wasserman, LEW Corporation My Prediction: Mold - Hurricane Sandy – Changes
I
ama 23 year environmen- tal industry expert and principal of LEW Corpo-
tion is currently occurring and will continue to occur which will likely create a snowball effect for the blame game. To re-coup the economic losses, some will have no choice but to sue someone and numer- ous others will follow suite (file suite). With the increase of mold litigation, the cost of insurance will definitively rise, if insurable at all and the pressure will most likely sway government to create environ- mental mold regulations, in some form. The unfortunate rise in environmental mold liti- gation due to Hurricane Sandy losses and the frustration of the impacted property occupants, coupled with the potentially toxic health hazards associated with mold, will be cause for mold related litigation (prece- dence) and media to migrate into all other mold related environments. Some of these related environments include apartments living, real-estate transaction due diligence, in the office and at a school. After 23 years as a northeast major player and industry expert, I cannot remember an envi- ronmental issue that once the legal system got involved and litigation started occurring it suddenly went away! So what should you con- sider doing to minimize be- ing exposed to unnecessary potentially toxic mold and expensive litigation? It’s called “Environmental MOLD Risk Management”. It might sound like smoke and mirrors, but a simple to follow and achiev- able Environmental Mold Risk Management plan will mini- mize ALL of the negatives as- sociated with my predictions. Whether new construction,
renovation or in light of my prediction, NOW is a great time to institute an “Environ- mental MOLD Risk Manage- ment plan”. If you agree with the rationale for my predictions above, then I would hope you would also agree and trust me when I say, a few minutes of your time today will save you an enormous amount of time and money tomorrow. In the last few years I have seen the number of MOLD prac- titioners exponentially grow. Many of whom have very little or limited industrial hygiene and IAQ related experience. They just want to take your money! Work with a Profes- sional who is properly quali- fied (ACAC certified) and not just understands how to turn on a moisture meter or an air sampling pump, but honestly understand the microbial and moisture intrusion universe and can PROVE IT! An easy to use, reasonable, achievable and clear to understand Environ- mental MOLD Risk Manage- ment program prepared by a professional and complied with your contractor or facility staff will be one of the best invest- ments and returns you can ever imagine. As we know and many will learn over the next few years, not having a mold program in place will become a VERY expensive experience. Begin protecting yourself, your occupants, your residents and the general public today. Call your environmental profes- sional and find out what an Environmental MOLD Risk Management plan includes and how to use it before it is too late. Call today. Lee Wasserman is princi- pal of The LEW Corp. n
ration. One important as- pect of my job involves eval- uating and anticipating how the en- vironmental industry will change and
Lee Wasserman
in the past many would say I have been very successful at that! As I look into the future my first prediction is that Hur- ricane Sandy will change the way Mold will be dealt with in the future in an enormous way. Second, insurance coverage for Mold will become harder to obtain and if obtainable at all it will be sustainably more expensive. Third, toxic mold will be a hot topic on the news and in the media. Finally, mold will become highly litigated in real-estate transactions, rental properties, office environments and all other locations that mold will grow. Mold is a part of nature. It needs only moisture to grow because its spores are, in the- ory, everywhere! Nobody can guarantee, warrantee or assure anyone that mold will not grow back. It’s natural and part of our world! What a Mold con- tractor could say is, “We can restore your property back to a pre-loss condition.” Unfortu- nately, the reality is, too many Hurricane Sandy impacted properties had foreign fly-by- night hurricane chasers, also known as carpetbaggers, do mold remediation and demoli- tion work and now have mold growing back. Mold in the Media and litiga-
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O wners , D evelopers & M anagers From the New Jersey Subcontractors Association Hillcrest Paving & Excavating receives subcontractor award
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ast Brunswick, NJ — Hillcrest Pav- ing was the recipient
capacity. Hillcrest is an active member of many associations including the New Jersey Subcontractors Association (NJSA), Utility & Trans- portation Contractors As- sociation (UTCA) , Land Improvement Contractors of America (LICA), Build- ing Owners and Manag- ers Associations (BOMA), Community Associations Institute (CAI) and many others. This award was accepted by the company president, Ger- ald J. Giordano (Jerry) on behalf of the company and its employees. Hillcrest Paving & Excavat-
ing was also the recipient of one of the NJSA 2012 Safety Awards presented the same evening. This award defines Hillcrest Paving’s commit- ment to a safe work environ- ment for the benefit of its employees and clients. The safety award was ac- cepted by JimGiordano , the company’s vice president, who noted “Hillcrest Paving & Ex- cavating has made it a point to ensure that safety on and off the job site is a number one priority and we are proud to be honored for the company’s accomplishments as well as the accomplishment of our employees.” n
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of the New Jersey Sub- contractors Association (NJSA) 2012 “Subcontrac- t o r o f t he Year Award” at theAnnual Awards Din-
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Jerry Giordano
Mid Atlantic R EAL E STATE J OURNAL
ner. This prestigious award defines Hillcrest Paving’s com- mitment to quality workman- ship, integrity within the in- dustry and superior service to their clients. The commitment to excellence shown every day from the company’s employees and management has earned Hillcrest Paving the distinc- tion of being recognized as one of New Jersey’s premier asphalt paving and site work construction companies. Hillcrest Paving & Excavat- ing was incorporated in 1979 and is registered as a New Jersey Public Works Contrac- tor and is a qualified SBE. Hillcrest is also prequalified by the New Jersey Schools De- velopment Authority (SDA), the New Jersey Economic Development Authority (NJE- DA) and the New Jersey Divi- sion of Property Management and Construction (DPMC) with a $10,000,00 bonding Eastern Union arranges $21m in NJ multi-family’s New Jersey — Eastern Union Funding announced that it has arranged approxi- mately $21 million in financing for multi-family properties in New Jersey. Select transactions include: • $9.5 million to refinance a 171 unit multi-family property in Somers Point on a 10 year term, at 4.04 percent, and 30 year amortization. Jeffrey Seidenfeld of Eastern Union arranged the transaction. • $3.5 million to refinance a 45 unit multi-family property in Union City on a 3 year term, at 3.50 percent, and 30 year amortization. Michael Muller of Eastern Union arranged the transaction. • $2.2 million to refinance a 73 unit multi-family property in Trenton on a 10 year term, at 3.88 percent, and 30 year amortization. David Eisen of Eastern Union arranged the transaction. n
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A — April 26 - May 9, 2013 — Owners, Developers & Managers — Mid Atlantic Real Estate Journal
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O wners , D evelopers & M anagers
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screening needs of today’s landlords and strive to pro- vide easy-to-use, streamlined solutions that help organiza- tions work smarter. Veritas delivers effective, customer- focused solutions that pro- vide increased efficiency and faster turnaround times. It is important in today’s competitive market to be able to guarantee a level of protection to our clients, es- pecially with the cost of a bad tenant being so significant. We will provide all clients with a number of background screening options to choose
from in order to provide each client with the maximum level of leasing assurance. Also, we will be able to obtain documentation from neces- sary sources upon request. Veritas is offering specific tenant background screen- ings for property owners. A tenant background check provides criminal history and a credit check with a FICO score. This check will include: social security num- ber verifications, address his- tory, the seven year manual check of New Jersey criminal history, and a comprehensive
nationwide check (includes sex offender/terrorist check). Our credit check scores can- didates and lets you know where they fall in terms of your own needs. Should you decline someone outright? Are there conditions you should consider before rent- ing? Are they a potential tenant with some risk fac- tors? Or is this your ideal candidate based on your ac- ceptance criteria? Our main goal is to make sure, through our reliable and timely ser- vices, property owners have the information needed to make intelligent decisions when selecting tenants. n Capital Comm’l. Real Estate Group inks $1.81m sale Folcroft, PA — Capi- tal Commercial Real Es- tate Group announced the sale of 1528 Elmwood Ave. in Folcroft. Donovan Mackey of Capi- tal Commercial Real Estate Group represented the seller in the transaction, 1528 Elm- wood Associates. The buyer was represented by Fishtown Richmond Realty Com- pany . The Property consists of a 34-unit all one-bedroom apartment building, which was 32% occupied. The Property sold for $53,235 per unit. Donovan said, “The market temperature on this Delaware County Multifam- ily asset was extremely high. Inventory continues to be in high demand.” n McLean, VA — Kettler Management , one of the lead- ing property-management com- panies in the mid-Atlantic, announces that its president, Cindy Clare, CPM , has been elected this year’s Secretary at the National Apartment As- sociation (“NAA”). Clare has served on the NAA Board for five years, holding both appointed and elected po- sitions including board member at large, regional vice president for region 1, legislative chair, communications advisory board chair, and conference commit- tee chair. As conference com- mittee chair, she is planning the association’s 2013 educa- tion conference. n NAA elects Kettler Mgmt.’s Clare as 2013 secretary
protect the rights of appli- cant tenants. These laws especially related to privacy protection and FCRA can re- sult in substantial fines and other penalties if violations occur. At Veritas, we work to ensure compliance is main- tained at every level. VeritasBackgroundScreen- ing provides what our name promises: the TRUTH. Very often your tenants can make or break a growing concern. However, many applications
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Mid Atlantic Real Estate Journal — Owners, Developers & Managers — April 26 - May 9, 2013 — 9A
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O wners , D evelOpers & M anagers NAI James E. Hanson to lease portfolio Alfred Sanzari Enterprises upgrades corporate park N ORWOOD, NJ — Alfred Sanzari En- terprises has com-
You Are Invited To Participate In in THE MID ATLANTIC REAL ESTATE JOURNAL !!!
pleted improvements to four of its six-building industrial portfolio. Upgrades to the corporate park – located at 335, 375 and 385 Chestnut St. and 10 Maple St. – include freshly painted warehouse space, new office windows, new front awnings and loading dock improvements. Shrubs and plantings were added to further enhance the proper- ties’ existing landscaping. Space currently is available ranging from18,000 to 52,108 s/f. With almost 167,000 s/f of total space available, the properties are functional for a variety of business purposes including light industrial, warehousing, high-tech or R&D tenants. Ceiling heights range from 16 to 18 feet and buildings offer quality on-site parking. “This portfolio is in first- rate condition and represents some of the best warehouse space in the northeastern part of Bergen County,” said Jerry Barta, vice-president and director, leasing and marketing. “The complex is set in a very attractive area
Industrial/Distribution Centers May 24 issue deadline May 13
375 Chestnut St.
near local amenities and of- fers a good labor pool. The buildings are clean, well maintained, and provide open floor plans for a number of uses.” AndrewSomple,Michael Walters and Nicholas Her- rick of NAI James E. Han- son serve as leasing agents for the property. “These com- pleted improvements are a testament to the hands-on, high-quality property man- agement that Alfred Sanzari Enterprises provides to all its tenants,” said Somple. “They are long-term, financially
solid and highly respected owners. We look forward to marketing the Norwood port- folio, and promoting the prop- erties’ numerous features and benefits.” The Palisades Interstate Parkway, Route 9 West, the New York State Thruway, and George Washington and Tappan Zee bridges all are nearby. Well-known national and international firms with corporate headquarters in the area include Volvo Cars North America, Takasago International and Crestron Electronics. n
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10A — April 26 - May 9, 2013 — Owners, Developers & Managers — Mid Atlantic Real Estate Journal
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S ervices & S uppliers
By Bob Kilroy, Jewel Electric Supply Co. The different shades of Energy Green
ow green is green when we are refer- ring to an individual or a company becoming envi- ronmentally responsible? Some might argue to be considered a true protector of our planet, a green company or individual, we must shop only in stores that specialize in organic and locally grown products, walk instead of drive, collect rain water to use later and use only products made from recycledmaterials. I on the other hand believe in H
from instituting, energy sav- ing initiatives sometimes be- cause of the start-up cost in- volved. So why not look to the state and federal government to subsidize your efforts? With the federal government offering tax incentives and the state offering rebates on projects, now is the time to take action. People often ask me “where do I begin”, when they want to reduce their energy consump- tion. I answer the question with a question, “what is
right for you?” There are many way to reduce your energy load and be environmentally friendly. Start-up cost range from free to sometimes in the millions. The key to embarking on the right program for you is to work with a energy expert who understands your needs, identifies your goals and is capable of providing a solu- tion to fit those needs. Take for an example a recent commercial customer who wanted their business
to be known as environmen- tally friendly but only had a limited budget to work with. We worked together, identi- fied that they had a five year lease on the building and were provided a new HVAC upon moving in. With these factors in mind we targeted our efforts on decreasing power consumption by turn- ing unnecessary items off using photo controls, timers and power-strips that pow- ered down when not in use additionally use 14 watt LED lamps to replace the current 75 watt lamps to complete the first phase. After factoring re- bates and state incentives we developed a plan that would completely pay for itself in en- ergy saved within a 12 month period, improve the level of light provided and allow the corporate headquarters to boast they are an environ- mentally friendly company. Further that initiative with a better recycling program, a energy management system, programmable thermostats and educating their employ- ees on inexpensive ways to save energy at home, this company knocked it out of the park! Where are you in the GREEN spectrum? Where would you like to be? What kind of Return on Investment (ROI) would you consider a home-run? Consider doing one of the following or all 10: • Insulate cracks and open- ings and windows • Use programmable ther- mostats • Reduce water-heater tem- perature by 5 degrees • Replace and clean filters • Turn off lights, automati- cally or manually • Change to a more efficient type of lighting. • Use Smart Power-Strips • Buy Energy Star products • Vent Attics allowing air to flow freely • Educate others Call the energy experts or just visit us in Booth 419 at the Atlantic City NJAA show, we will show you how to find $50.00 in savings in your bathroom. Bob Kilroy, Jewel Elec- tric Supply Co., Jersey City, NJ. n
the old adage, “every little bit helps” and “baby steps will get us there”. Every little bit will make a difference; if you are not prepared to go big, start out small “baby steps” after all, every little bit gets us closer to our goal. What is our goal? Reduce our carbon footprint by as much as we can as quickly as we can. We should all be work- ing to preserve our planet for the future generations. People sometimes shy away
Markets we serve: Commercial Industrial Residential
Electrical Contractors State, Municipal & Government Hospital & Institutions Property Management & Hospitality Products we offer: Wire, Pipe, Fittings & Wiring Devices Switchgear, Panelboards, Motor Controls & Motors Lighting & replacement Lamps LED Retrofits, Fixtures and other Energy Efficient Products Sub-Metering Equipment Meters, Tools & Ladders Safety Devices & Equipment Fire Alarms, Smoke Detectors & Burglar Alarms Generators Services we offer: On time Deliveries to meet customer requirements 24/7 Emergency Response Inventory Management Project quotes Lighting & Energy Audits Customer Training
455 Third Street Jersey City, NJ 07302 Ph: 201-653-1613 Fx: 201-653-5470 Bob Kilroy
bkilroy@Jewelelectric.com www.jewelelectric.com
Markets we serve:
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