R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news
ISSUE HIGHLIGHTS Volume 25 Issue 21 November 8 - 21 , 2013 DelMarVa Ind./Dist. Centers
Gilbert, SIOR reps. tenant, Hofrichter of Tack Development reps. landlord Exton, PA’s KW Commercial inks $75m, 45 year land lease on Long Island, NY
L
by Blair Gilbert, SIOR of KWCommercial , Exton, PA. The landlord was represented by Peter Hofrichter of T ack Development , Farmingdale, NY. “The site was previously home to varied recreational uses however the new project increases the properties eco- nomical value exponentially”, said Gilbert. “Negotiations surrounding the transaction lasted over two years, but the end result was definitely worth the wait. We’re continu- ing to roll out the Restaurant Row project on a national basis and hopefully the re- maining sites won’t be quite as tedious” he continued. ■
ONG ISLAND, NY — RRDHC, LLC has leased 13 acres at 1024
Broadhollow Rd., Farming- dale, Long Island for an initial 45 year period with an aggre- gate lease value in excess of $75 million. RRDHC is developing the assembly as part of their national expansion of Res- taurant Row, a destination location dining concept. This site is the third location in the launch process and it is planned to include a hospi- tality component as well as a mixed-use component pat- terned in part after Celebra- tion, FL. The tenant was represented
9-13A
Co. of the Month Keast & Hood
1024 Broadhollow Rd.
2-3C
Purchaser represented by Kelin, Esq. of Feinstein, Raiss, Kelin & Booker, LLC. Wiener & Friedman of Kislak complete $42.2 million Section 1031 Exchange
Lenders Directory Spotlight
PHILADELPHIA & BRIS- TOL, PA — The Kislak Company, Inc. announced the $42,225,000 sale of two Pennsylvania properties that marked the successful comple- tion of a Section 1031 like-kind exchange. The transactions included the $16,125,000 sale of Ashley Court Apartments, a 254-unit apartment commu- nity located at 10900 Bustleton Ave. in Philadelphia; and the $26,100,000 sale of Levittown Trace Apartment Homes, a 617-unit apartment commu- nity located at 3000 Ford Rd. in Bristol.
Ashley Court Apartments
Levittown Trace Apartment Homes
Section B
Holland, president and co- managing director. “Since last year alone, our eastern Penn- sylvania sales total more than $200 million. This was also the second time that Kislak sold both properties, and the trans- actions highlight our long term relationship with two outstand- ing clients. These sales marked our 26th transaction with the seller of Ashley Court and our 60th transaction with the seller of Levittown Trace.” “The seller of Ashley Court owned the property since 1985 and for tax purposes sought to exchange it into a larger property of greater value,” said Wiener. “Levittown Trace was the perfect fit. These were
excellent deals for all parties involved.” “Given the strong Philadel- phia rental market, the pur- chaser was looking to expand its portfolio and local presence,” said Friedman. Financing was provided by Customers Bank . The seller was represented by Edward Bortz, Esq. and the purchaser was represented by Richard Kelin, Esq. of Feinstein, Raiss, Kelin & Booker, LLC . At the time of closing, the prop- erty was approximately 97% occupied. As part of the sale, the pur- chaser assumed the seller’s first mortgage with Freddie Mac . ■
The properties were market- ed on behalf of long-time clients with co-managing director Jef- frey Wiener leading Kislak’s assignments. Vice president Jacob Friedman represented the purchaser of Ashley Court Apartments and Wiener also represented the purchaser of Levittown Trace Apartment Homes. “Each sale represented an extraordinary opportunity to acquire a large, desirable and established multifamily as- set in the Philadelphia MSA, in which we have a strong presence and successful track record of sales,” said Robert
Directory
DelMarVa ................................................. 7-16A Financial Digest ................................... Section B New Jersey .......................................... Section C Central New Jersey ................................... 7-12C Pennsylvania ....................................... Section C PA Premiere Properties............................. 5-12C
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All CPM Members, CPM Candidates, ACoM, and ARM Members of the Institute of Real Estate Management’s Delaware Valley Chapter No. 3 are cordially invited.
CELEBRATING IREM’S 80 TH ANNIVERSARY! Please join us as we celebrate and honor our accomplishments, Past Presidents of Del Val Chapter No. 3 2013 Chapter Award Recipients Installation of 2014 Chapter Officers
5:30 pm - 6:30 pm Registration & Networking Reception 6:30 pm Dinner followed by program Cost: $75 Members - $85 Non-Members Please return this reservation form with payment no later than Friday, November 15. If you cannot guarantee receipt of payment by the deadline, please call 856-786-9260 or fax 856-786-3894 to confirm your reservation. All confirmed reservations must be paid for whether you attend or not. November 21, 2013 – Dinner Meeting Mail to: IREM Del Val 3, P.O. Box 65, Riverton, NJ 08077 Fax to: 856-786-3894 Name __________________________________________ Company ________________________________________ Mailing Address___________________________________ ________________________________________________ Phone ( ) ____________________________________ E-mail __________________________________________ Please indicate if you are a __ Non-Member ($85) or Member ($75): __CPM __ARM __CPM Candidate __Associate Member __AMO Employee __Friend of IREM __ I am pre-paid Please make check payable to IREM Del Val No. 3 __ I would like to pay by VISA/MasterCard/Discover - NO AMEX Name on Card:____________________________ Signature:________________________________ Street Address on Card:_____________________ _______________________Zip Code: _________ Card #: _________________________________ Exp Date:__________Security Code: _________ __ I would like to pay by check
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COLLECTION NIGHT FOR OUR ANNUAL TOY DRIVE!
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2A — November 8 - 21, 2013 — Mid Atlantic Real Estate Journal MAREJ a DvertIsers D IreCtory 1st Mariner Bank........................................ IBC-B Applied Bank .................................................... 1B Arcus Design Group.......................................... 4D Assett Preservation Inc. .................................. 2B Auctioneers Directory ....................................... 4A Bayshore Recycling ........................................... 5C Brasler ............................................................ 12D Brickstone Realty ............................................. 8D Bussell Realty Corp ...................................... IC-C Cambridge Construction Management.......... 15C CBRE .............................................................BC-C CIRC ............................................................... 16A Commercial Mortgage Capital ......................... 4B Conestoga Title Insurance Co ........................ 12B Cooper-Horowitz ........................................... IC-B CREW NJ .......................................................... 1C Cushman & Wakefield ................................... 11C Deerwood ........................................................... 9B Earth Engineering .......................................... 15D Entech ............................................................... 6C Feinberg Real Estate Advisors ........................ 5A Gebroe Hammer Associates.............................. 4C GFCIB................................................................ 6B GREP .............................................................. 13D Griffin Land ...................................................... 8D Hard Money Bankers...................................... 13B Harvey Hanna & Associates, Inc......... 12A & 15A Hawley .............................................................. 6D Heller Industrial Parks .................................. 10C Hinerfeld ......................................................... 11D Investors Real Estate Agency........................... 3A IREM ................................................................. 1A Kaplin Stewart .................................................. 2A Kearny Federal Savings .................................. 5B Keast & Hood ........................................ 3D & 15D Kislak................................................................. 3C Land Dimensions ........................................... 13C Lee & Associates ............................................. 12C Lenders Directory ................................... 14B-17B Lois Latarola .................................................. 13D M. Miller and Son ............................................. 3A Max Spann ........................................................ 4A Mericle Commercial ......................................BC-D Meridian Capital Group ...............................BC-B NAI Dileo-Bram &Co ........................................ 9C NAI Keystone ................................................... 6D NAI Summit ................................................... 13D NorthMarq......................................................... 8A PennCap ............................................................ 9D Poskanzer Skott Architects .............................. 6C Precis Engineering ........................................... 4D Provident Bank .............................................. IC-A Rational Contracting, Inc ................................ 2C Real Property Capital Inc................................. 8B Regal Bank ....................................................... 3B Remax .............................................................. 10A SEBCO............................................................... 2C Security Resources .......................................... 16C Sheldon Gross Realty........................................ 4C Singer Financial ............................................... 3B SmartStart ........................................................ 8C SNJ Appraisal Institute.......................... 18B-19B The Green Group ............................................. 7B Thompson Management, LLC ....................... 15C Tishman Speyer ............................................... 8D Tornetta Realty ................................................ 7D TriState .......................................................... 19A WCRE ................................................................ 5C White Realty Associates ................................ 13A
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Mid Atlantic Real Estate Journal
Mid Atlantic R eal e state J ouRnal Publisher ............................................................................ Linda Christman Publisher ............................................................................... Joe Christman Publisher/Senior Account Executive ................................. Elaine Fanning Section Publisher .................................................................... Steve Kelley Section Publisher ...........................................................Janine Hennessey Senior Editor/Graphic Artist .................................................Karen Vachon Production Assistant ...................................................................Julie King Office Manager ................................................................... Joanne Gavaza Guest Columnists .............................................................. Glenn Ebersole, P.E. Mid Atlantic R eal e state J ouRnal ~ Published Semi-Monthly P.O. Box 26 Accord, MA 02018 (Mail) 312 Market Street, Rockland, MA 02370 (Overnight) Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, P.O. Box 26, Accord, MA 02018 USPS #22-358 | Vol. 25 Issue 21 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
By Glenn Ebersole, P.E. A Strategically Structured Outline for Business Succession Planning For Small & Family Owned Businesses
O
ne of the major chal- lenges and strategic business decisions that
small and family business owners face is: the develop- ment and implementation of a succession plan or exit strat- egy from the business. And that also includes informing employees if a succession plan or exit strategy exists in your company or organization. Let’s look at some numbers to place this challenge in perspective. By 2010, approximately $1.2 trillion in business assets are poised to change hands. For this very reason, faulty suc- cession planning could have a serious effect on productivity and bankruptcy rates, among other concerns. The situation is even more serious when you consider that, according to this study, 60% of entrepreneurs aged 55-64 haven’t yet started discussing their exit plans with their families or business part- ners. Among this group, only about 15% have firm plans to transfer or sell their business
The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
to a family member. Forty per cent plan to sell their busi- nesses to outside interests. Looking at the numbers, there is a significant reality gap between plans and real- ity. For example, younger en- trepreneurs (under the age of 35) are much more optimistic about their chances of retir- ing before they turn 55. They also believe that they will be able to rely on the sale of their businesses for a healthy slice of their retirement income. Succession planning is a critical factor for the long-term success of any business and especially for small and family
continued on page 6A In my opinion, there are seven strategic actions needed to stra- tegically structure a succession planning process. Those seven strategic actions are: #1: Begin the succession plan- ning process early. #2: Clearly determine and owned businesses. Leadership transitions in business affect the entire organization’s con- tinuity, employee retention, client retention and returns on investment. It is essential to create and implement a process that creates visibility, account- ability and greater integration of all facets of the business.
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M id A tlantic R eal E state J ournal H 20 Garden Apartment-Style Units in Bergen County Gebroe-Hammer Associates announces $2.5m trade A S B R O U C K HEIGHTS, NJ — Demonstrating its
FOR LEASE IN YOUNGWOOD, PA YOUNGWOOD INDUSTRIAL CENTER
continued expertise in Bergen County’s multi-family market- place, Gebroe-Hammer As- sociates recently arranged the $2.5 million sale of Grandview Apartments, a 20-unit garden- style community in Hasbrouck Heights. The Gebroe-Hammer brokerage team, including president Ken Uranowitz , se- nior vice president Greg Pine and assistant vice president Debbie Pomerantz , exclu- sively represented the seller and identified the buyer. Situated eight miles from the George Washington Bridge, Grandview Apartments is located near both NJ Transit train and bus stations. “The combination of low interest rates and aggressive real es- tate pricing is driving demand for multi-family investments. Bergen County continues to be one of the strongest and most desirable markets for these properties, and high occu- pancy rates and well-financed investors are the norm,” said Pomerantz. Grandview Apartments is a three-story brick building fea- turing a mix of spacious studio, one- and two-bedroom apart- ments. The complex includes 12 garages and 12 off-site parking spaces as well as on- site laundry facilities. Tenants enjoy easy access to Routes 80, 17, 46 and the Garden State Parkway. The building is within walking distance of local shopping. “Because of Debbie’s in- depth market knowledge and client-focused approach to each transaction, she was able to educate this buyer about the benefits of suburban apartment-rental investments, which only complement the buyer’s existing urban portfo- lio,” said Uranowitz. Legal counsel for the trade was provided by Joseph Bas- ralian, Esq ., of Winne, Ban- ta, Hetherington, Basralian & Kahn, P.C . of Hackensack N.J., on behalf of the seller, and Robert M. Tzall, Esq ., of The Law Offices of Robert M. Tzall of Passaic , for the buyer. The Grandview Apartments sale comes on the heels of the recent $7.65 million sale of 32 multi-family units in Rochelle Park, N.J. Market specialist Pomerantz identified the buyer in this trade as well. n
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A — November 8 - 21, 2013 — Mid Atlantic Real Estate Journal
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M id A tlantic R eal E state J ournal Named a Tier 1 firm in Philadelphia Kaplin Stewart Meloff Reiter & Stein, P.C. receives recognition B lue Bell, PA — Kaplin Stewart Meloff Reiter & Stein, P.C.,
Spotlight Professional Services Promote your Company, Projects and Expertise contact Linda for more info: lchristman@marejournal.com
its Land Use & Zoning practice by U.S. News – Best Lawyers® “Best Law Firms” in 2014. Best Law Firm rankings are deter- mined by an extensive assess- ment of peer and client reviews. We are proud and honored by
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with offices in Blue Bell and Philadelphia, PA, and Cherry Hill, NJ, has been named a Tier 1 firm in Philadelphia for
NAI Global economic briefing highlights bright spots in commercial real estate
NEWYORK, NY —Despite continuing economic and po- litical uncertainty, US com- mercial real estate markets are reacting favorably, although predictably, with some sectors – notably multifamily and industrial – demonstrating improvement and growth po- tential, according to Dr. Peter Linneman , chief economist of NAI Global. Linneman pre- sented an economic outlook during a recent webcast for NAI Global Members and clients that was led by Jay Olshonsky, President of NAI Global. “As the US economy contin- ues to improve, we are seeing a return to stability, especially with core properties with in- vestors looking for high quality assets,” said Olshonsky. Linneman noted that reno-
vation of existing properties in all sectors rather than new construction is driving growth, and has helped balance supply and demand. There is a strong industrial recovery underway, led by increased demand for online warehousing, resulting in healthy vacancy levels that will continue to fall. Multifam- ily construction is rebounding, but is still below normal levels, and an upswing in renovations is driving capital expenditure. Underproduction from the past several years resulting in a prolonged shortage will keep rents above average, but below maximum. In the office sector, construc- tion and renovation projects are at an all-time low, but renova- tions that were deferred during the recession are back on track, even though jobs have yet to
return to pre-recession levels. As a result, vacancy rates have seen a slower decline, and are expected to continue to fall as the economy improves. Of- fice rents are above average only in cities where jobs have recovered, including Dallas, Houston, Philadelphia, Los Angeles, Chicago, San Fran- cisco, Boston, Washington DC and NewYork City (downtown and midtown). The outlook for the retail sec- tor is slightly less optimistic, with no new net supply and shrinkage of total inventory. Retail rents remain well below average, particularly inAtlan- ta, Houston, Boston, Chicago, Austin, Seattle, San Diego, Washington DC, Los Angeles and San Francisco. Although hotel construction projects fell continued on page 6A
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A — November 8 - 21, 2013 — Mid Atlantic Real Estate Journal
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M id A tlantic R eal E state J ournal
The sale of 300 Main St. in Stamford, CT HFF represents SL Green Realty Corp.
ew York, NY — Ac- claimed for presenting hundreds of exciting, Displaying art to millions online and on-site Arts Brookfield is celebrating its 25th Anniversary N
Develop a list of characteristics and skills needed by your suc- cessor Develop a training plan for your successor Develop a coaching/mentoring plan for your successor Establish a timeline for your successor plan X. Contingency plan Develop a contingency plan (based on the “What Ifs?”) Research & identify insurance needs (disability; personal life; critical illness; business; key person; etc.) Select & train a key employee to take over in case of emer- gency or unforeseen event Communicate your plan to stakeholders & advisors XI. Implementation of plan Document the roles, responsi- bilities & expectations concern- ing the transition of owner- ship Identify a facilitator to make sure the process of succession is carried out XII. Timelines Identify your timeline for the management transition Identify your timeline for transition of ownership of your business Future defaults could bring additional opportunities for investors. “We need to look at 2015 – 2018 as the real period of projected defaults as most CMBS loans underwritten in 2005 through early 2008 when underwriting was more lax were 10-year loans,” said Linneman. “We’ll have to see significantly nationwide except for New York City, new own- ers are investing capital into existing properties in deferred renovation projects. Occupancy rates indicate a strong recover is underway. FLORHAM PARK, NJ — HFF announced the sale of 300 Main St., an 80,708 s/f office building in Stamford, CT, which it sold on behalf of the seller, SL Green Realty Corp. Seaboard Proper- ties purchased the asset. Built in 1927, 300 Main Street, also known as the former First Union National Bank building, consists of an eight-story office building with street-level retail and
Identify your timeline for your complete exit from your busi- ness XIII. Communication Plan Document the succession plan Document how to proceed with the succession plan in the event of an unforeseen event (accident, illness, death) Document the transition or exit strategy to inform family, employees, clients, vendors, community & all stakehold- ers Succession planning is too important to put aside and think that you will get to it someday. I would encourage you to initiate your succession planning process NOW, NOT LATER, and to use strategic thinking in the development of your succession plan to help ensure the sustainability of your small or family busi- ness. Glenn Ebersole, P.E. is the strategic vice president, business development/mar- keting and a member of the Strategic Leadership Team at Hollenbach Construc- tion, Inc. headquartered in Boyertown, PA. n Linneman concluded, “The US commercial real estate market today is doing what we expect it do in an era of political and capital market uncertainty where we are seeing very little new construction. However, when we have more clarity than uncertainty, we could see stunning economic growth reminiscent of the 1970s-80s and post-World War II.” n significantly more growth in order for these loans to be refi- nanced, and this could result in more product across all sectors becoming available through defaults in 2016 – 2017.” a 147 space parking garage. Most recently renovated in 2011, the building is 76 per- cent leased to tenants includ- ing Elizabeth Arden. The HFF investment sales team representing the seller was led by senior manag- ing directors Jose Cruz and Andrew Scandalios , managing directors Kevin O’Hearn and Jeffrey Ju- lien and associate director Steve Simonelli. n
I. Goals & Objectives Develop a vision statement for your business Develop a mission statement for your business Develop a list of your core val- ues & guiding principles Develop short & long term goals for your business Identify the stakeholders for your business Develop your personal vision Develop your personal goals Develop your retirement goals Create a team of advisors for your succession planning ef- fort Establish the need for a suc- cession plan II. Exit Strategy Develop options for your exit from your business Review the developed options for your exit from the busi- ness Select your option for your exit strategy III. Business Valuation Obtain professional advice to determine the value of your business Determine the value of your business Determine a current value of your business assets & li- “For 25 yearsArts Brookfield has ‘set art free’ for the public with free concerts, exhibitions, theater and dance perfor- mances, and film screenings at Brookfield’s indoor and out- door public spaces. We think the best way to celebrate our 25th Anniversary is to truly make the world our stage and encourage artists working in all genres around the world to set their own art free,” said Debra Simon, vice president and artistic director of Arts Brookfield at Brookfield Office To participate in Art Set Free, artists should capture their work in a photo, video or audio recording; and then share it on Facebook, Twitter and/or Instagram with the hashtag #artsetfree. Entries are welcome from any genre, including dance/movement, music/sound, painting, sculp- ture, photography and street art. Arts Brookfield will review submissions on a rolling basis and curate the most innovative and thought-provoking pieces for display at select Brookfield buildings around the world and on ArtsBrookfield25.com, potentially reaching an audi- ence of millions.
abilities Determine the goodwill value of your business IV. Business Structure Identify and quantify your business debt Recruit & retain productive employees Structure business to maxi- mize value Document key processes & pro- cedures used in your business V. Tax Considerations Develop financial goals Identify tax implications of your current business Plan & implement tax strategy to minimize your taxes VI. Legal Considerations Retain professional legal coun- sel Develop a buy-sell agreement for your business VII. Estate Plan Retain a professional estate planning advisor Develop an estate plan VIII. Successor selection Develop specific criteria for your successor Recruit & select successor based upon your criteria Communicate selection of suc- cessor to your stakeholders IX. Successor training Images, videos and sound recordings of artwork for Art Set Free may be submitted by individuals or organiza- tions. Submissions should be creative, innovative and inspiring, and all entries must follow the Art Set Free Terms and Conditions available at ArtsBrookfield25.com. n Properties. “We hope our Art Set Free showcase will engage the global art community and provide an opportunity for established, emerging and amateur artists to have work shared internationally with millions.” “Free public art enhances a city’s vitality; and it inspires and educates residents, ten- ants and visitors,” said Mitch Rudin , president & CEO, U.S. Commercial Operations, Brookfield Office Proper- ties . “The outstanding and acclaimed work of Arts Brook- field over the past quarter century embodies Brookfield Office Properties’ vision of cre- ating progressive workplaces and our commitment to devel- oping thriving communities. We look forward to another 25 years of invigorating public spaces with great art.”
world-class cultural experi- ences for free to hundreds of thousands of people each year worldwide, Arts Brookfield is celebrating its 25th Anni- versary by launching Art Set Free, an unprecedented global art showcase that offers the opportunity for established, emerging and amateur artists anywhere to have their work presented to an international audience onArtsBrookfield25. com and at Brookfield’s pre- mier office properties in New York, Los Angeles, Denver, Houston, Toronto, Perth and Sydney. Artists helping to launch the global Art Set Free show- case and raise awareness about the importance of free public art include composer and Pulitzer Prize recipient Caroline Shaw, Broadway star and Tony Award winner Brian Stokes Mitchell; executive artistic director of New York Live Arts and Tony Award winner Bill Jones; Action Ar- chitect Elizabeth Streb ; and acclaimed vocal ensemble The Tenors. communicate the purpose, goals, and extent of the lead- ership succession plan or pro- gram. #3: Clearly define the desired and required qualities of the new leader. #4: Develop a clearly focused leadership development strat- egy. #5: Develop a talent manage- ment process that will incor- porate strategic thinking for specific development opportu- nities for future leaders. #6: Identify future leadership candidates by developing a sys- tem for assessing current and future leadership needs. #7: Identify a system for com- municating information to ensure that the leadership succession and/or development programs are in line with stra- tegic business needs. It is important to develop an overall outline to present the strategically structured succession planning elements after developing the list of strategic actions. That outline includes: Strategically structured succession plan outline
continued from page 5A NAI Global economic briefing highlights . . .
A strategically structured outline for business succession planning for small & family owned . . . continued from page 2A
Mid Atlantic Real Estate Journal — November 8 - 21, 2013 — A
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Addition of Rose Park amenity and boutique hotel and 200,000 s/f of retail space Pike & Rose receives Montgomery County planning board approval for additional development
OCKVILLE , MD — Federal Realty Investment Trust received approval from the Montgomery County Plan- ning Board for additional de- velopment at Pike & Rose, a 3.4million s/f mixed-use Tran- sit-Oriented Development (TOD) currently underway in the White Flint District of Montgomery County. The approval will allow Federal Realty to add approximately 1.6 million s/f of space to the R
170,000 s/f of retail, 80,000 s/f of commercial office and 493 residential units currently underway, which will begin opening in mid-2014. The additional develop- ment approved for Pike & Rose includes: • Six new city blocks within Pike & Rose which enhances the pedestrian-friendly urban neighborhood that includes residential units, shops, en- tertainment amenities and office space.
buildings and uses when appropriate for the market in a way that complements the existing uses and adds to Pike & Rose’s vibrant, urban neighborhood feel,” said Evan Goldman, VP of development, for Federal Re- alty Investment Trust. “Our construction and delivery strategy has been carefully crafted to reflect the expected demand for commercial office, retail and residential product in the suburban Maryland marketplace. Each section of Pike & Rose is intended to satisfy specific real estate needs, as well as encourage audience interaction and en- gagement.” Federal Realty expects to break ground on some of the additional approved buildings in 2014. n
November 8 - 21, 2013
Rose Park
• A 200-300 room boutique hotel. • 200,000 s/f of additional retail space bringing the total approved retail space for Pike & Rose to 350,000 s/f. •More than 460 residential
units. • 1.4 million s/f of class “A” office space. “With these approvals, we have the ability to continue to execute the vision of Pike & Rose by delivering additional
HI-LIGHTS
The Hampshire Companies sell 317,400 s/f VA ind./whse.
Jones Lang LaSalle represents both parties in transaction WeWork to occupy 32,903 s/f of space in two Douglas Development props.
The Hampshire Companies announced the sale of a 317,400 s/f, industrial ware- house located at 5700 Audu- bon Dr. in Richmond, VA. The buyer is Easton &Associates. See page 8A.
Washington, DC — Douglas Development has signed two leases with the NY- based entrepreneurial hub, We- Work, which projects opening its first two Washington, DC loca- tions before the end of the year. WeWork will occupy 32,903 s/f in the historic Wonder Bread Factory, located at 641 South St., NW; and 21,350 s/f at 718 7th St., NW in Chinatown. WeWork scouts cities for premier locations to open con- temporary, custom-designed workspaces where startups, small businesses and creative professionals can interact and collaborate in one space. Douglas Development princi- pal, Norman Jemal said, “We are very excited to welcome WeWork to DC and couldn’t imagine two better buildings for their first Washington, DC locations.” Jemal continues, “DC is becoming increasingly entrepreneurial-driven and we believe WeWork’s new DC office spaces will encourage more people to launch and grow
HyattPlaceDeweyBeachhosts grand opening celebration
More than 400 people came together Thursday October 24 to join in the ribbon-cut- ting and grand opening cel- ebration for the first Hyatt Place hotel brand in the State of DE - Hyatt Place Dewey Beach. See pages 14-15A.
ALSO INSIDE:
Wonder Bread Factory
Greg McCavera and Sean Black represented WeWork. Built in 1913, Douglas De- velopment’s newly redevel- oped Wonder Bread Factory building offers a class A loft- style environment with 82,000 rental s/f. Evan Behr and Doug Mueller of Jones Lang La- Salle represented Douglas Development n
businesses in the District.” WeWork empowers the suc- cess of its members by providing beautiful workspace, accessible services and collaborative com- munity. Members enjoy perks like access to networking events and speakers, office amenities like high speed Internet, confer- ence rooms and more. Jones Lang LaSalle’s Jay Farmer, Steve Burman,
D elmarva ’ s I ndustrial &
D istribution C enter S potlight ........................9-16A
C ommercial -I ndustrial R ealty C ouncil ............. 17A
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8A — November 8 - 21, 2013 — Mid Atlantic Real Estate Journal
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d el M AR v A
CBRE represents the seller The Hampshire Companies sell 317,00 s/f VA ind./whse.
ONETA, VA — Todd Crouse, senior vice president and senior Crouse of the Raleigh regional office handles transaction NorthMarq arranges $.392 million acquisition M
director of NorthMarq’s Ra- leigh regional office, arranged financing of $4,392,000 on Food Lion-anchored Moneta Commons Shopping Center in Moneta, VA. The 47,905 s/f retail prop- erty’s financing was based on a 17-year term and a 17-year amortization schedule. NorthMarq arranged the financing for the borrower through its relationship with a correspondent life company. n
5700 Audubon Dr.
Moneta Commons Shopping Center
BALTIMORE, MD — Cassidy Turley , a commer- cial real estate services pro- vider in the U.S., announced the recent completion of a 32,934 s/f lease with Peerless Specialty Flooring at 9060 Junction Dr. in the Baltimore Washington Corridor. This 144,571 s/f building is now 70% leased with only one unit remaining. n Cassidy Turley completes 32,93 s/f lease “With 317,400 s/f of prime industrial space, the building has the capacity, the location and the logistical clout to pro- vide a dynamic distribution or manufacturing resource for any kind of business,” said Igor Derbaremdiker , senior investment manager for the Hampshire Companies. “With its location in the in the heart of Richmond’s most dominant and dynamic industrial submarket, this was ideal transaction for the buyer.” CBRE represented The Hampshire Companies. n RICHMOND, VA — The Hampshire Companies an- nounced the sale of a 317,400 s/f, industrial warehouse lo- cated at 5700 Audubon Dr. in Richmond, VA. The buyer is Easton & Associates. Spanning nearly 16 acres, the distribution warehouse hosts 26’ ceiling and 15 dock high overhead doors with one grade level door. The facility offers easy access to Interstate 64 and the Richmond International Airport, providing a superior location within Richmond’s transportation infrastructure. The property offers the op- portunity to expand the cur- rent building by an additional 100,000 s/f.
We’ve got the capital connections to deliver the right results.
R E C E N T N O R T H M A R Q T R A N S A C T I O N S
River’s Crossing 66 Units TYPE: MULTIFAMILY CITY: ESSEX, MD LENDER: LIFE COMPANY
Pelican Square 144,000 SF TYPE: RETAIL CITY: REHOBOTH, DE LENDER: LIFE COMPANY
Danville Square 82,000 SF TYPE: RETAIL CITY: DUNDALK, MD LENDER: LIFE COMPANY
Real Estate Capital
northmarq.com
33 OFFICES COAST-TO-COAST
Baltimore Office JOE BURKE NANCY FERRELL BILL LIBERCCI TIM GREISMAN 410.296.6565
Mid Atlantic Real Estate Journal — November 8 - 21, 2013 — A
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DelMarVa I ndustrial / D istribution C enters
I ndustrial R eal E state & D istribution C enters
10A — November 8 - 21, 2013 — Mid Atlantic Real Estate Journal www.marejournal.com D elmarva ’ s I ndustrial & D istribution C enter S potlight Germay Industrial Park 37 Germay Drive, Wilmington, DE 19804 Industrial Building for Sale or Lease
45,070 s/f +/- Showroom/Warehouse Facility
• Ideal location on Germay Dr., just off Maryland Ave. • Outside city limits • Close to I 95, Rt. 141, Riverfront District • Situated on two (2) parcels 2.25 acres • 10,000 s/f +/- of showroom area • 3,000 s/f of office area • 32,070 s/f +/- warehouse • 16’ to 18’ ceiling height • 3 enclosed tailgate dock doors •1 enclosed drive in door •75 plus car parking lot •Ideal for a showroom/distribution with retail/ wholesale component/light manufacturing • Price : $2,000,000.00 • Lease Rate : $3.95 per s/f NNN
For Additional information, Please Contact Anthony Medori 302.658.6681 X 204 (W) 302.218.2053 (M) tmedori@whiterealtyassociates.com
3704 Kennett Pike Suite 200 Greenville, DE 19807 www.WhiteRealtyAssociates.com
www.marejournal.com Mid Atlantic Real Estate Journal — November 8 - 21, 2013 — 11A D elmarva ’ s I ndustrial & D istribution C enter S potlight
12A — November 8 - 21, 2013 — Mid Atlantic Real Estate Journal www.marejournal.com D elmarva ’ s I ndustrial & D istribution C enter S potlight
The Premiere Distribution Campus in the Mid-Atlantic
84,856 SF Warehouse Space Available Flex/Office
Twin Spans Business Park Route 9 New Castle, Delaware 200 Anchor Mill Road
• Sprinklers: ESFR • Power: 480v, 1600A • Water and Sewer: Public - Supplied by City of New Castle
• Size: 84,856 SF • Land Area: 3.9353 Acres • Construction: Built in 2007 • Ceiling Height: 36' • Dock Doors: 7 OH, 5 Dock • Parking: 106 • Roof Type: Rubber • Floor Spec: 6”
• Zoning: Industrial • Major Metro Distances: Phila : 34 Miles Baltimore: 70 Miles, D.C.: 107 Miles NYC: 127 Miles
For more information call: Bert Root (302) 323-9300 Ext.15 broot@harveyhanna.com www.harveyhanna.com
DelMarVa C ommerCial o ffiCe P roPerties s Potlight : D eCember 6, 2013 F eaturing: Commercial Brokerage Firms who are actively involved in marketing Office Space in the Deleware, Maryland, Virginia and Washington, D.C. area are welcome to par ticipate. This exclusive Office Space Spotlight is an excellent way to Reach +25,000 Commercial Real Estate Professionals, Including Owners Developers & Tenants. If you are interested in par ticipating, please call or email us today *Deadline: November 22, 2013* Special adver tising rates to all par ticipating firms. Elaine Fanning, Mid Atlantic Real Estate Journal 1-800-584-1062 x212 Fax: 781-871-5299 Email: efanning@marejournal.com
www.marejournal.com Mid Atlantic Real Estate Journal — November 8 - 21, 2013 — 13A D elmarva ’ s I ndustrial & D istribution C enter S potlight
FOR SALE
10526 Governor Lane Blvd Williamsport, MD 21795
• Sale Price: $1,450,000.00 • 36,000 SF warehouse • 16,000 SF LEASED to Frito Lay
• 24’ ceiling height • 4 tailgate docks • Public water and sewer • Visibility from I-81 • .25 mile to I-81 and 1 mile to I-70 • Within a days reach of 50% of the population
FOR SALE/LEASE
• Located among national companies distribution centers and within reach of 50% of the population in a day drive • Easy access to I-70 and I-81 • Strong labor workforce • Enterprise Zone • Zoned Industrial General • Abuts to 2,700 feet of CSX Rail • Public water and sewer 66+ Acre Industrial Site with CSX Rail Hopewell Road, Williamsport, MD 21795
FOR LEASE
Statton Industrial Park 504 1st Street, Hagerstown, MD 21740 Property Highlights: • GLA: 182,579 • 4 tailgate docks • Stand alone 10,000 s/f modern clear span warehouse • Zoned Industrial General
• Spaces range from 3,000 up to 182,000 s/f • Will divide & built to suit tenants’ needs
FOR SALE/LEASE
Bowman Business Park Governor Lane Blvd. Williamsport, MD •Direct access & high visibility to I-70 and I-81 •Uses include: office, warehouse, light manufacturing •Lots of Parking
•Will finish to suit tenant •Glass front entrances •Rear loading docks •Beautifully landscaped • 30’ X 100’ bays •Two more 48,000 s/f buildings to be constructed
FOR SALE/LEASE
10302 Partnership Court, Williamsport, MD
• 1,000 s/f of office space with a single stall bathroom • 14,000 s/f of open warehouse space with double stall bathroom • Building dimensions are 100X150X16 high. • Two dock doors and one 14X14 on grade door on the west end wall with new T-5 lighting. • Located in Williamsport, MD conveniently off I-81 exit 1 or 2
14A — November 8 - 21, 2013 — Mid Atlantic Real Estate Journal
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D el M ar V a Part of the recently completed Phase One of the Lighthouse Cove redevelopment project Hyatt Place Dewey Beach hosts grand opening celebration
M
ore than 400 peo- ple came together Thursday October
24 to join in the ribbon-cutting and grand opening celebration for the first Hyatt Place hotel brand in the State of Delaware - Hyatt Place Dewey Beach. Governor Jack Markell made a special appearance at the event, which was hosted by property owner Dewey Beach Enterprises (DBE) and the internationally-recognized hotel management firm, Meyer Jabara Hotels. “This is a project that Dew- ey Beach is worthy of,” said Markell during the ceremonies. “Let’s make it so. Let’s make these people wildly successful in this new venture.” Markell expressed Speaker of the House Pete Schwartzkopf ’s (D-Rehoboth) congratulations and his regret at being out of state and unable to attend. Senator Ernie Lopez (R-Lewes) shared in the festivities, as did other state legislators and representatives of Delaware’s federal legislators. Also present to enjoy the celebration were Dewey Beach Mayor Diane Hanson; Com- missioners Legates, Mauler and Riordan; Town Manager MarcAppelbaum andAssistant Town Manager Jim Dedes. Welcoming those who sup- ported the project, and those who did not, Harvey said he has sometimes found that solid friendships and professional relationships built on mutual trust have begun in contro- versy or worse. “Our philosophy is always to address and resolve con- flict, find a solution, honor our word and, above all, to stay the course,” Harvey said. “This we have attempted to do, and we will continue to do. Just as importantly, we want to fit in, get along with our neighbors and be as positive an influence in Dewey Beach as we can pos- sibly be.” Hyatt Place Dewey Beach is part of the recently completed Phase One of the Lighthouse Cove (formerly Ruddertowne) redevelopment project, which also includes 16 penthouse condominiums above the ho- tel, additional parking and an expanded public bayside beach on Van Dyke Street. During Phase Two, sched- uled to begin next year, the Lighthouse Cove project will expand to include bayside con- dominiums, a 21st century con-
ference center, more interior off-street parking, new retail, dining, and professional space, a public Baywalk, and more. “This project’s been a seven- year journey. It’s a labor of love on the design of Phase One and of Phase Two to come,” said Harvey. The mixed use redevelop- ment project is owned by Dew- ey Beach Enterprises (DBE), whose managing partner is Harvey, Hanna & Associates, Inc. DBE’s vision is helping this summer resort town evolve into a 21st Century destination worthy of its many amenities and consistent with the Town’s comprehensive development plan. As a unique stretch of About The Lighthouse Cove Redevelopment
largest new homes sales and marketing firms in the nation, to assist with the marketing and sales of phase 1 luxury condominiums. The mixed-use resort project is one of the largest private sector construction projects underway in Delaware. Upon completion, the Lighthouse Cove Project will have a positive economic effect on the entire re- gion, year-round employment, expanded family entertain- ment choices for Dewey Beach and neighboring communities throughout the county. By Georgia Leonhart and Ryan Kennedy, director of marketing at Harvey, Hanna & Associates, Inc. n P h o t o C r e d i t s : K a r l Richeson
real estate, Dewey Beach is a barrier island only two blocks wide, one mile long, and sur- rounded by water-the Atlantic Ocean to the east and the Rehoboth Bay to the west. For families who love the water and family-friendly destinations, Dewey Beach marks a “way of life” for all types of recreation and relaxation, located only a short drive fromNewYork City, Philadelphia, Washington, D.C. and Baltimore. Given the scope of the project, DBE is partnering with special- ists who know their respective trades. DBE secured a fran- chise agreement with Hyatt Hotels Corporation in July 2012. The Hyatt Place Hotel marks the first-ever Hyatt brand in Delaware.
Meyer Jabara Hotels, an award winning hospitality company owning and operating premier hotels in 13 states, has been retained by DBE to oper- ate the new Hyatt Place Hotel and adjacent conference center. Meyer Jabara represents the brands of Marriot, Sheraton, Hilton, Hyatt, Holiday Inn and Crowne Plaza as well as inde- pendent boutique hotels. The phase 1 luxury condomin- iums, known as The Residences at Lighthouse Cove, are being built on the 4th floor above the Hyatt Place Hotel and thereby feature unparalleled Oceanside views, with 2 bedroom and 3 bedroommodels offering balco- ny or terrace privacy. DBE has retained McWilliams Ballard of Washington, DC, one of the
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