9-23-2011 by Mid Atlantic Real Estate Journal

REAL ESTATE JOURNAL Vol. 23, Issue 16 September 23- October 13, 2011

the most comprehensive source for commercial real estate news

Inside: Sections

Mid Atlantic .........................................................1-20 Shopping Centers......................................... 21-56 Contractors, Owners & Managers ........ 57-76 Fall Preview...................................................... 77-96

ERNEST DESROCHERS NORTHMARQ

ROBERT DILEO NAI DILEO-BRAM & COMPANY

MICHAEL J. FASANO MARCUS & MILLICHAP REAL ESTATE INVESTMENT SERVICES

SIDNEY E. GABLE SIDNEY E. GABLE ASSOCIATES, INC.

DAVID GOLDFISHER THE HENLEY GROUP, INC.

DONNA HEGARTY ADVANTAGE BUILDING & FACILITY SERVICES, LLC

NEIL KILIAN EMORY HILL COMPANIES

REBECCA MACHINGA, CPA WITHUMSMITH+ BROWN, PC

ANDREW MERIN CUSHMAN & WAKEFIELD, INC.

JIM O’HARA, JR. EMORY HILL COMPANIES

Spotlights / Features DelMarVa featuring Delaware......................... 5-12 Auctions...........................................................................13 People on the Move....................................................14 Business Card Directory.........................................15 Calendar of Events......................................................16 BillBoard..................................................................... ....17 Building Services & Suppliers........................63-69

Columnist Mike Mullin.......................................................................2

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BRUNO TEDESCHI MAX SPANN REAL ESTATE AUCTION CO.

STANLEY B. WYRWICZ CALKAIN COMPANIES, INC.

Featuring expert articles on the commercial real estate industry, current market trends and what’s to come for 2011. ............................................................................... 77-96

October 14, 2011 • Mid Atlantic • NJ featuring Southern New Jersey • PA featuring Eastern Pennsylvania • Green Buildings • Appraisal Institute 4 sections, 96 pages

11 - 13 October, 2011 Philadelphia, PA Pennsylvania Convention Center............................................................... .......21-56

A Inside Cover — September 23 - October 13, 2011 — Mid

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Mid Atlantic Real Estate Journal — September 23 - October 13, 2011 — A

2A â&#x20AC;&#x201D; September 23 - October 13, 2011 â&#x20AC;&#x201D; Mid

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Mid Atlantic

They wrote the policy.

Real Estate Journal

Mid Atlantic Real estate JouRnal Publisher ............................................................................Linda Christman Co-Publisher .........................................................................Joe Christman

Section Publisher ..............................................................Michael Campisi

Section Publisher ................................................................ Elaine Fanning

We make sure they write the check.

Associate Publisher ...........................................................Dianna Mallozzi Senior Editor/Graphic Artist ................................................ Karen Vachon Production Assistant ........................................................ Rachel Rugman

OfďŹ ce Manager ...................................................................Joanne Gavaza

By Mike Mullin

Real Estate Owners, Operators Embrace Mobile Technology

M. MILLER & SON Public Adjusters

Since 1960

1211 Liberty Ave., Hillside, NJ 07205 ďż˝ Tel: 908-355-4800 adjuster@mmillerson.com ďż˝ www.mmillerson.com

Relationship Driven. Execution Focused. Only Meridian Capital Groupâ&#x20AC;&#x2122;s powerful financing relationships can consistently achieve the unparalleled results our clients require.

emand and enthusiasm for mobile applications for real estate are generating significant buzz among owners and operators â&#x20AC;&#x201C; and with good reason. As the use of iPads and other tablet computers in the field and in the boardroom gains traction in both the multifamily and commercial sectors, so do efforts to leverage potential for improved access to information. As examples, mobile websites and guest cards provide notable advantage from a marketing perspective, particularly for multifamily. The first enables easy access to property information via a tablet computer â&#x20AC;&#x201C; including unit availability and pricing, and selling features like closet size, and upgrades such as stainless appliances and renovated bathrooms. And, as a salesperson walks a property with a potential tenant, he or she can use an electronic guest card to capture customer information. That information can then be transferred directly to the companyâ&#x20AC;&#x2122;s property management system. On the commercial side, apps can push out documents with property-specific information including rent rolls, lease abstracts and stacking plans. For brokers, this provides incredible convenience over carrying armloads of hardcopy documents with them to meetings with tenants and landlords. At the senior level, executives can read reports delivered to their tablet computers, with real-time financial

Editorial Consultant ............................................................. Ben Summers Guest Columnist ....................................................................... Mike Mullin Mid Atlantic Real estate JouRnal ~ 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 ofďŹ ces Postmaster send address change to: Mid Atlantic Real Estate Journal, P.O. Box 26, Accord, MA 02018 USPS #22-358 | Vol. 23 Issue 14 Subscription rates: $99 - one year, $198 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY

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

and operational data. This level of accessibility and portability really is what people desire from their mobile devices. They want to have access to data that they normally would find on their computer screen or in thick binders behind their desks â&#x20AC;&#x201C; whenever and wherever they are, whether onsite at a property, traveling to a meeting or sitting on a beach. They recognize that the iPad can be much more than an instrument for playing Angry Birds. The good news is that delivering information to a mobile device is relatively easy at the surface level. Companies like Integrated Business Systems (IBS) generally have mechanisms to translate data into a PDF format, and the end user can use a PDF reader to expose the document on their iPad, for example. Documents can be placed on a server and programmed to sync to single or multiple devices daily. However, security can pose a real challenge in this new space. The process of delivering potentially sensitive enterprise data to an iPad is

similar to syncing anything in iTunes on a personal computer. It is critical to design security models around these applications, to ensure that the data is maintained on a secure server and cannot be downloaded to a local PC that can be viewed by unauthorized people. Operating system compatibility can be another sticky spot for software developers. For example, Safari as a browser will not allow you to run many applications â&#x20AC;&#x201C; the IBS system included. However, some workarounds exist, such as employing Citrix or simply pushing data into a format readable on the iPad. Over time, we expect that user interfaces for mobile devices will change to mesh more effectively with Windows-based programs. At the same time, software developers will work to make their products platform independent. The end result is that mobile technology will continue to advance. Real estate professionals increasingly will find themselves able to get out from behind their desks to conduct continued on page 3A

MAREJ Features Meridian Capital Group, LLC

proudly advised on financing for the following transaction:

Hudson Square South 150 Unit Multifamily Property Hoboken, NJ

$33,000,000

Permanent Financing

This transaction was negotiated by:

EXECUTIVE WOMEN IN BUSINESS Mid Atlantic Real Estate Journal will publish our Ninth Annual Executive Women in Real Estate and Alllied Fields Editon. Deadline: September 28, 2011 Publication: October 28, 2011 Executive Women are effecting change and taking leadership roles in a traditionally male dominated industry. Many have reached the top of the commercial real estate field, founding their own firms or establishing themselves in key positions with the industry giants. The October 28, 2011 edition will feature these women! Be a part of this very special issue highlighting your area of expertise; tell us about your background and your unique success stories and how you made it to the top in your field.

Israel Schubert, Managing Director

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REAL ESTATE JOURNAL

Contact Elaine Fanning: Mid Atlantic Real Estate Journal T: 800-584-1062 x212 F: 781-871-5299

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Mid Atlantic Real Estate Journal — September 23 - October 13, 2011 — A

Mid Atlantic Real Estate Journal $51m in direct and indirect economic benefits

DP Partners announces 255,336 s/f corporate headquarters

HILADELPHIA, PA — Dermody Properties/DP Partners has announced the completion of a new corporate headquarters and distribution center for Penn Jersey (PJP). Designed to be LEED Silver Certified, it is the largest project of its category developed in the Philadelphia region. The project in northeast Philadelphia has allowed PJP to keep this strategically located facility within the City of Philadelphia instead of relocating out of the region, retaining 250 existing jobs in the City. The new facility will also allow PJP to expand its operation in the future, creating even more jobs. The new 255,336 s/f facility, located on 30 acres of land at 9355 Blue Grass Rd., is owned by a joint venture comprised of Dermody Properties/DP Partners and Boston-based Great Point Investors LLC. Dermody Properties/DP Partners represented the joint venture in the transaction. PJP signed a 15-year lease for the facility and will begin operations in the new location beginning May 17, 2011. In addition, 230 construction jobs were created since the project began in June 2010, and the project contributed an estimated $51 million in direct and indirect economic benefits to the region. Dermody Properties/DP Partners and PJP worked with the Philadelphia Industrial Development Corporation (PIDC) to identify the land site on which the PJP facility would be built. The Dermody Properties/ DP Partners development team includes Atwell, as well as Matthew Marshall, James Mascaro, LEED AP, and Stephen Bailey of the Dermody Properties/DP Partners Eastern Regional office. PJP was represented in the

By Mike Mullin Real Estate Owners . . .

continued from page 2A business. They will spend more time at their properties and interacting face-to-face with tenants, potential tenants and strategic partners – with a wealth of information always at their fingertips. n

9355 Blue Grass Rd. lease transaction by the Philadelphia-area CB Richard Ellis brokerage team of Steve Marzullo, senior vice president of investments; Patrick Green,

executive vice president; and Michael Mullen, senior associate. Blue Rock Construction was the general contractor for the project. n

4A — September 23 - October 13, 2011 — Mid

Atlantic Real Estate Journal

Commercial real estate Solutions that maximize your

Profitability

Brokerage Tenant Representation Site Acquisition

Mid AtlAntic ReAl estAte JouRnAl Procida ends fi rst half of 2011 with a bang

Over $200 million in closings in NY, NJ and PA

Site Disposition Development Property Management Construction

410-561-5568

www.blueobrecht.com Blue & Obrecht Realty, LLC 9475 Deereco Road, Suite 200, Timonium, MD 21093

n the first half of 2011, Procida Funding & Advisors financed over $200 million as direct lende r, a d v i s o r and investment banker. As Direct Lender: Provided a loan to acquire a Bill Procida $4,400,000 defaulted constrcution loan on the Ocean Walk Condominiums in the Belle Harbor section of Queens, where additional capital for construction was also provided.

YEAR IN REVIEW

It’s that time of year again...

We are inviting industry leaders to be a part of our “yearbook”. We will preview the top Headlines of the year along with photos of your top executives with a special season’s greetings or thank you ad to your clients, brokers, owners, architects, and employees that helped make 2011 a winning year.

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Acquired a $7,700,000 loan on Freehold Commons, a 40,000 s/f office building near the Monmouth County Court House in Freehold, New Jersey. The loan was simultaneously restructured with the borrower to provide additional capital for marketing and tenant improvements. Provided a $4,250,000 bridge loan for inventory at the Gulls Cove Condominiums in Jersey City, NJ. Provided a $3,600,000 acquisition/construction loan for a 28unit partially built rental project on Park Avenue in Union City, NJ. Provided $5,000,000

2011

Please take this opportunity to review your year’s success and congratulate all who helped make it happen!

We are highlighting the “major players” and the “biggest deals” of the year, BE SURE TO SEND A HEAD SHOULDER SHOT OF YOUR TOP EXECUTIVES to be included in this popular issue. Editorial includes the year’s top headlines of 2011.

1-800-584-1062

Deadline: December 1st, 2011

For more information please call 800-584-1062

in short term small balance acquisition/construction loans for 1 to 4 family homes in the “Fixed & Flip’Em” program throughout Northern New Jersey. As Investment Banker and Advisor: Represented a Pennsylvania-based real estate operator in the placement and structuring of $125,000,000 of equity and debt for the acquisition of a 30 building office portfolio. Represented Macquarie Capital on a $50,000,000 loan to acquire the debt on the Setai located at 40 Broad St. in New York City, where Procida also provided development and construction oversight. Continued providing advisory services to Gaetano Development on the Gateway Condominiums, a $30,000,000 project in Manhattan, and Bayonne Medical Center on the development of its new 50,000 s/f medical office building. Procida welcomed back Ali Betts as Controller as well as recent hire Erin DiBlasio and announced that John Mullane and Kyle Funsch have become Partners. Procida will open its new private equity fund “The 100 Mile Fund” in September. n

Binswanger brokers sale of class A industrial building in Langhorne, PA LANGHORNE, PA — On behalf of Domtar Paper Company, Binswanger announced the sale of a 110,180 s/f class A industrial facility on ten acres. The property is located at 1050 Wheeler Way. The buyer, Eastern Warehouse Distributors, Inc. plans to use the facility for the distribution of motor vehicle supplies and new parts. Key features of the facility include clear ceilings heights to 22’; steel columns spaced 40’ x 50’ in the warehouse and 40’ x 40’ in the production area; all utilities; high-efficiency T5 lighting with optical sensors; six tailgate loading docks with levelers; two drive-in doors; CSX rail-served with interior loading; and 7,500 sq. ft. of airconditioned office space. The transaction was handled by Frank Cullen and Chris Pennington from Binswanger’s Philadelphia office and Frank Roddy from Roddy, Inc. n

D el M ar V a DelMarVa RReal E state Journal eal Estate Journal MAREjournal.com

Mid Atlantic Real Estate Journal — DelMarVa Real Estate Journal — September 23 - October 13, 2011 — A

Consisting of five adjacent buildings on 16.8 acres of land

The AFL-CIO Building Investment Trust acquires $138.5m office portfolio in Tyson’s Corner, VA

YSON’S CORNER, VA — The AFL-CIO Building Investment Trust (BIT) recently purchased the $138.5 million Tyson’s East Office Portfolio located in Northern Virginia in the Tyson’s Corner submarket. Consisting of five adjacent buildings on 16.8 acres of land, the portfolio includes two office buildings and three data centers. “We believe Tyson’s East will be a great addition to the BIT portfolio,” said Kevin McCarthy, president of PNC Realty Investors. “The properties are currently 98% leased with no significant lease turnover until 2014.” The site also offers future development

rights for 1.8 million s/f of residential mixed use density and is within walking distance for the future Silver Line’s Tyson’s East Metrorail Station, which is planned for delivery in 2013. The AFL-CIO Building Investment Trust is a $2.1 billion open-end commingled core commercial real estate fund serving qualified pension funds with union member beneficiaries. The BIT is managed by PNC Bank, National Association (PNC Bank), as Trustee. PNC Realty Investors (PRI) provides investment advisory services to the BIT. The AFL-CIO Investment Trust Corporation provides marketing, investor relations, and labor relations. n

Tyson’s East Office Portfolio

By Nancy Fleming, Pettinaro Construction Company

Get to the Point: Build confidence in your local market by leading the way In today’s real estate market, your best bet is to get to the point. Flexibility and a willingness to meet a buyer ’s needs are paramount to success in the new home market in and Nancy Fleming around New Castle County, DE. And taking risks in a soft market sometimes pays off big time. For builders who have the capital and the tolerance for the risk of building new homes or condominiums on speculation, it often shows a willingness to invest in a given market; stimulating confidence in a sluggish economy to the point where a buyer on the fence decides to make the move. As an example, Verino Pettinaro, founder of Pettinaro Construction Co., Inc. and Pettinaro Residential are doing what others said could not be done. With a banner sales pace beginning early summer of this year, this elite condominium community – of just fifty-six homes – located on the beautiful banks of the Brandywine River in Wilmington DE has sold six homes in the third quarter of this year, priced from $750,000 to $1,350,000

in a market where some have not sold six homes in this price range in the past year. Location is still the key in any new home sale; and the location of the Pointe at Brandywine Park places it at the top of the list for coveted neighborhoods in Delaware. However, in order to customize an incentive package to suit an individual homeowner’s needs, Pettinaro has been willing to hold financing for potential owners as well as consideration for the assistance in the sale of their current property. Listening to a potential owner’s personal needs allows a builder to truly overcome any real objection to purchasing the home of their dreams. This does not necessarily mean lowering the price. In fact, as Pettinaro and the sales staff at the Pointe at Brandywine Park have proven in the past year, upholding the value of the neighborhood proves to be a reason that someone may choose to buy a new home. When a builder invests in new models and upgrades continually, the community then has established solid pricing and has upheld values so that the fear of a neighbor or builder undercutting the value of one’s home is no longer a concern. Community relations, a sincere effort to give back to the

local community, also allows owners to understand the integrity and commitment a builder has to a quality way of life. Some builders simply build houses; others provide a home, a place of comfort, a safe haven, a desired location. Marketing events are no exception to setting a builder apart. In fact, the Pettinaro family has a soft place in their hearts for Team Fox, hosting Pancakes for Parkinson’s annually; raising money for research and a cure for Parkinson’s disease. And locally, Pettinaro supports the Friends of Wilmington Parks, the Brandywine Zoo and the Brandywine Festival of the Arts, proving that good business partners remain good partners with the non-profits, particularly when times are tough. In fact, The Pointe at Brandywine Park plans to host an arts benefit this fall in conjunction with the Delaware Art Museum as yet another way to give back to the community. So my projection for 2012 is more of the same. Get to the point. Build confidence in your local market by leading the way. How do you get what you want? By helping others get what they want. Nancy Fleming is general sales manager of Pettinaro Construction Co., Inc. n

Meridian Group sells 368,400 s/f

HFF closes $150.1m sale of 3 Bethesda Metro Center Bethesda, MD — HFF announced that it has closed the sale of 3 Bethesda Metro Center, a 17-story, 368,400 s/f, class A office building. HFF marketed the property on behalf of the seller, Meridian Group. Brookfield Office Properties Inc. purchased 3 Bethesda Metro Center for $150.1 million. 3 Bethesda Metro Center is situated at the southwest corner of Wisconsin Avenue and Old Georgetown Road adjacent to the Bethesda Metrorail Station and one block from Bethesda Row. The property is comprised of a 17-story office building connected to a threestory structure that offers street-level retail space with two levels of office space above. Parking is provided for 1,311 vehicles. 3 Bethesda Metro Center is 93% leased to tenants including Bureau of National Affairs, Bank of America and Merrill Lynch. The site also has excess density for future development. The HFF team representing Meridian Group was led by senior managing directors Jim Meisel, Dek Potts and Andrew Weir, executive managing director Steve Conley and real estate

3 Bethesda Metro Center analyst Jessica Dickinson. Based in Bethesda, The Meridian Group is a real estate investment and development firm with a strategic focus in the metropolitan Washington, D.C. region. Meridian has acquired or developed commercial real estate worth over $2.2 billion, totaling 7 million s/f and 429 acres of development land since it was founded in 1993. n

A — September 23 - October 13, 2011 — DelMarVa Real Estate Journal

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Emory Hill Celebrates 30 Years Experience, integrity, dedication and quality

Emory Hill gives back to local community, wins state chamber award

mory Hill Companies is celebrating its 30th Year Anniversary of doing business in Delaware this year. The company was founded in 1981 by Robert H. Hill and R. Clayton Emory with Carmen J. Facciolo, Jr. becoming a partner in 1983. To celebrate its many successes, the company is once again giving back to the Delaware community by donating to various charitable organizations in lieu of an in-house cel-

Emory Hill wins DE State Chamber Superstars in Business Award New Castle, DE — It was just announced by the Delaware State Chamber of Commerce that Emory Hill Companies won the prestigious “Superstars in Business Award of Excellence” for 2011, which they will receive at an award ceremony November 9 at the Hotel du Pont’s Gold Ballroom. The keynote speaker will be Wawa, Inc. CEO Howard Stoeckel. The Marvin S. Gilman Superstars in Business Award is named for one of Delaware’s leading small business entrepreneurs and honors businesses and non-profit corporations for their outstanding achievements and model approaches to business and management. Emory Hill won in the category for businesses with 64-150 employees. To kick off its 30th year anniversary, Emory Hill began a series of strategy and teambuilding sessions that started this past spring with a motivational session headed up by former Eagles player Kevin Riley, who spoke (through his experience with losing an arm to cancer) about rising to meet challenges. It has already inspired new incentive and marketing programs that are already benefitting Emory Hill’s vast clientele. This constant striving for excellence amidst a difficult economy through new and improved ways of working caught the attention of the Delaware State Chamber award judges who also recognized the company and its employees for their consistent contributions to the Delaware community and multiple awards they have received for various projects and individual performance in both real estate and construction. n

Bob Hill and Carmen Facciolo ebration like it did for its 25th anniversary. From their first office in Newark, Delaware, Emory Hill’s territory has expanded throughout Delaware and into

Maryland, NJ and PA. Their services have expanded as well to include commercial brokerage, construction, property management, maintenance and residential real estate sales, making it the only completely full-service commercial and residential real estate firm in Delaware. Emory Hill Companies is comprised of Emory Hill Residential Real Estate, Emory Hill and Company, which provides commercial construction management and design-build services, and NAI Emory Hill, which handles commercial brokerage, property management and maintenance. Emory

Hill joined as an affiliate partner in 1997 with NAI Global, the world’s largest managed network of real estate service providers. In January 2008, Jim O’Hara Realty joined Emory Hill to manage Emory Hill’s Retail Division, and in April, 2008, Emory Hill Residential Real Estate was formed. Emory Hill has built and developed over 12 million square feet with a value of well over $600 million. This dynamic growth is the direct result of the firm’s philosophy of quality and personal service. Today, NAI Emory Hill manages a portfolio of over five million square feet, as well as commercial and

industrial properties for other investors. Services include asset and property management, leasing, sales, financing, marketing and financial analysis, and maintenance. Experience, integrity, dedication and quality are the cornerstones of Emory Hill’s reputation. With a staff of 85 experienced professionals, the key ingredient of the company’s success is the personal involvement and team approach of its employees, who are encouraged at all levels to provide innovative solutions and create long lasting relationships with clients, subcontractors and suppliers. n

Exhibit Sponsor – Inside Booth/$1,200 (4 available)

• 2 Complimentary Conference registrations • One designated “inside” 10’ x 10’ booth space with 2 skirted 8’ tables and 2 chairs A — September 23 - October 13, 2011 — Mid Atlantic Real Estate Journal

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Exhibit Sponsor – Corner Booth/$1,000 (3 available)

Delaware

• 2 Complimentary Conference registrations • One designated “corner” 10’ x 10’ booth space with 2 skirted 8’ tables and 2 chairs

Associated Builders & Contractors Delaware

Exhibit Sponsor – ABC Member Table/$800 (14 available)

The Power of Green: The of Green • 2 Complimentary ConferenceFuture registrations • One tabletop display space (this is not a booth) with a skirted 8’ table and 2 chairs Building & Economic Development in DE

ssociated Builders & Contractors (ABC) Delaware in partnership with the University of Delaware, Center for Energy and Environmental Policy (CEEP), Delaware Economic Development Office (DEDO), Integrative Graduate Education and research Traineeship at the University of Delaware, Department of Environmental Resources and Natural Control (DNREC), and New Castle County Vocational-Technical School District is hosting the first annual, “The Future of Green Building and Economic Development in Delaware – THE POWER OF GREEN” Conference. Keynote Speaker will be John Byrne, Director of the Center for Energy and Environmental Policy and Distinguished Professor of Energy & Climate Policy; Ph.D., University of Delaware, 1980. Climate change; political economy; technology, environment and society; sustainable development; energy & environmental justice. For his contributions to Working Group III of the Intergovernmental Panel on Climate Change (IPCC) since 1992, he shares the 2007 Nobel Peace Prize. The conference will focus on four major areas of growth in sustainable development and design in Delaware: (1) Funding opportunities for workforce development as well as programs of study available in education, training grant opportunities for incumbent and dislocated workers through Delaware’s vocational training schools, and 2 or 4 year colleges and universities. Representatives from the banking industry will also be in attendance to discuss lowinterest lending opportunities. (2) Sustainable research and development being achieved through the Center for Energy and Environmental Research at the University of Delaware. (3) State-of-the-art manufacturing that is being achieved at companies in Delaware and throughout the region. (4) Department of Natural Resources and Environmental Control will review funding opportunities for redevelopment and up-grades for projects that will improve energy efficiency of public buildings, colleges and universities, schools and housing throughout Delaware.

Conference Speakers: Panel Sessions for: DEDO- Education and potential funding for Green skills and occupations The World is changing. The Market is Changing. The Workforce is Changing. Are Your Skills Evolving? Find out what the Universities, Community College System and Vo-tech schools are doing in terms of Green Education throughout the State of Delaware. We will explore what is happening in both non credit courses (short classes and certifications) and credit courses (Various Degree Programs) to enhance your workforce’s current skill sets. In both the credit and Non credit areas courses will be directed toward the three areas: 1. Green Enhanced Skills Occupations 2. Green Increased Demand Occupations 3. Green New and Emerging Occupations Join the members of Delaware’s higher education as they share with you what they are currently doing and offering to address these three areas. They will discuss the future of these courses and the vision behind the current courses structure and what they see for the future. Find out how all this can change how you do business, and how this can impact your future. What’s important in expanding business and creating or retaining jobs? Learn the impact of exploring the financial opportunities available to your business in Delaware. This session will discuss the varied funding programs available to existing employers or those looking to relocate to the First State. Companies will be able to explore the myriad of options which may offer financial assistance in the form of loans, grants, or other tools to help expand your business. A panel of Financial Professionals will discuss the following programs and you will be able to ask questions at the end of the session: · Delaware Access Program · Delaware Strategic Fund · Renewable Energy Facilities Revolving Loan Fund

Governor Jack Markell, State of Delaware Dr. John Byrne, Director of the Center for Energy and Environmental Policy (CEEP) and Distinguished Professor of Energy & Climate Policy; Ph.D., University of Delaware Honorable Alan Levin, Secretary, Delaware Economic Development Office, State of Delaware Honorable John McMahon, Secretary, Department of Labor, State of Delaware Honorable Colin O’Mara, Secretary, Department of Natural Resource and Environmental Control (DNREC) · Small Business Administration · Blue Collar Training Program Panel Sessions for: Manufacturing and Product Research and Development in Delaware Manufacturing and Production the areas of HVAC, Solar, Lighting and Wind, Hydrogen Fuel Cell Technology in Delaware and what fuel source offers the optimum efficiency in our Region. Representatives from NRG Bluewater Wind, Lutron Electronics (Lighting), and PTM Manufacturing are a few of the manufactures who will be presenting. Panel Sessions for: DNREC/ SEU Funding Opportunities 1. Residential Sector Programs Topics: This session will discuss the variety of energy efficiency programs available for residential energy efficiency. These programs include Delaware’s Home Performance with Energy Star program, Weatherization Assistance Program, Green 4 Green Program for new construction, new building codes, and supported financing options. 2. Commercial & Industrial Sector Programs Topics: This session will discuss the variety of energy efficiency programs available for commercial and industrial green investments. The programs include Delaware’s Efficiency Plus Business Program, financing programs, Brownfield

development, and new building codes. 3. Institutional & Governmental Sector Programs Topics: This session will discuss the variety of energy efficiency programs available for institutional and governmental energy investments. These programs include Delaware’s Efficiency Plus Business Program, Executive Order 18 (“Leading by Example”), the Energy Efficiency Conservation Block Grants, performance contracting and other financing options, and an update on the use of bonds to finance green investments. 4. Renewable Energy Programs Topics: This session will discuss the variety of renewable energy programs present in Delaware. Programs include the Green Energy Fund programs run by Delmarva, Delaware Electric Cooperative, and Delaware Municipal Electric Corporation, as well as the state’s Renewable Portfolio Standard. Power purchase agreements will also be discussed as possible financing options. Panel Sessions for: Integrative Graduate Education and Research Traineeship at the University of Delaware (IGERT) 1. Graduate Education and Research — Robert Opila and his colleagues will provide an overview of their graduate programs of study and the innovative state-of-the art

sustainable research that is being conducted through his department at the University of Delaware. 2. Building Sustainable Research – Keith Goosen will moderate a panel that will explore ways they conduct sustainable research that includes, but is not limited to, investigations into solid state devices, nanoelectronics, electromagnetics and composite materials as well as applications in industrial engineering and solar energy. 3. Hydrogen Fuel Cell – Ajay K. Prasad will review transport processes and water management in hydrogen PEM fuel cells, characterization of fuel cell components, fuel cell vehicle design, development and demonstration, direct methanol fuel cells, wind and ocean current energy, and energy efficiency. 4. Photovoltaics — Bob Birkmire, Institute of Energy Conversion will review with his colleagues their current research effort in the growth and characterization of thin film semiconductors for photovoltaic and optoelectronic devices and the relationship of the growth process to film properties and device performance. He is actively involved in developing effective mechanisms to transfer laboratory results to commercial processes with particular emphasis on implementing model-based process control schemes using advanced sensor technologies. n

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Mid Atlantic Real Estate Journal â&#x20AC;&#x201D; September 23 - October 13, 2011 â&#x20AC;&#x201D; A

Delaware

THE POWER OF GREEN ABC Delaware presents

The Future of Green Building & Economic Development in Delaware Discover the economic opportunities available in green building and design, and the education and economic programs available. March 21 & 22, 2011 Clayton Hall, UD North Campus Newark, DE Presented by:

with partners:

10A — September 23 - October 13, 2011 — Mid

Atlantic Real Estate Journal

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Delaware Two, single-tenant, government-leased buildings

Rockford Capital Partners to sell mixed-use project in Georgetown

eorgetown , D E — Rockford Capital Partners is selling a mixed-use project containing two, single-tenant, government-leased buildings in Georgetown, Delaware. T h e 1 0 0 % Nick Hammonds leased buildings are each 6,500 s/f, on long term leases, and sit on a combined 1.3 acres of land at the corner of Academy and Chestnut Streets. In

addition to the commercial tenants, three fully leased residential apartments will convey with the sale and an additional development parcel owned by Rockford may also be purchased. Georgetown is the County Seat of Sussex County, Delaware and home to numerous government, medical, and law offices. The site is less than one-mile from “The Circle” which houses the Town Hall, State and County buildings, and the courthouse. Rockford Capital Partners, manager of Rockford Real Estate Fund I, LP, is a real estate

investment company focused on acquiring and managing existing commercial assets in the mid-Atlantic region. The firm is actively seeking value-add / opportunistic investments of up to $10 million per asset. Please contact Nick Hammonds with interest in the Academy Street portfolio or if you are looking to sell a building meeting the aforementioned acquisition criteria. n

Downtown Newark partnership wins Great American Main Street Award Newark, DE — Downtown Newark Partnership (DNP) was named one of five winners recognized as leaders in downtown revitalization at the National Trust for Historic Preservation’s 2011 Great American Main Street Awards(GAMSA) in May 2011. The Downtown Newark Partnership was recognized for its exceptional accomplishments in revitalizing downtown Newark by using the proven Main Street Four-Point Approach®. GAMSA winners demonstrate exemplary achievement in the process of strengthening their downtowns and commercial districts based on the following selection criteria: • Active involvement of the public and private sectors; • Broad-based community support for the revitalization effort; • Quality of achievements over time; • Innovative solutions to significant problems; • Commitment to historic preservation; • Evolving track record of successful commercial district revitalization; • Comprehensive revitalization effort: activity in all four points of the Main Street Four-Point Approachto commercial district revitalization; • Economic impact of the revitalization program; and • Successful small business development. The DNP was selected by a national jury composed of former award winners, community development professionals, governmental agency representatives who are active in community economic development and historic preservation. n

MAREjournal.com

Mid Atlantic Real Estate Journal — September 23 - October 13, 2011 — 11A

Delaware By Sally H. Prendergast, Pettinaro

he residential rental market has continued to see positive growth throughout the first half of 2011. This trend towards increased leasing activity began in 2010 and economic Sally H. factors indiPrendergast cate that this trend will continue throughout 2012. According to Ann Bailey of Jackson Cross Partners, both class A and class B properties in the region have experienced increased occupancy. The result is that many local owners have been able to modestly increase rental rates allowing them to make some much needed improvements. The Village at Blue Hen in Dover, Delaware is Pettinaro Residential’s newest apartment community. The first phase of the Village at Blue Hen opened in Spring 2010 and

Residential Rental Market in Delaware 2011/2012 included 66 apartment homes. All of which were immediately leased to full occupancy. There are two more phases planned which combined will total 162 apartment homes by year end 2011. The second phase opened as planned in June 2011 and is already fully leased. “We anticipate a steady pace of absorption thanks to our proximity to the Dover Air Force Base and other state businesses” says Priscilla Williams, Property Manager at Village at Blue Hen. This steady increase in apartment rentals is attrib-

uted to a combination of factors. The “echo-boomers” are choosing renting over buying in terms of a housing solution. This is due in part to the backlash of the economic downturn resulting in fewer jobs available for recent college grads as well as the witnessing of the housing market crash and rate of foreclosure. Many people are understandably gun-shy when it comes to a new home purchase. Barbara Fenimore, property manager with Mid-Atlantic Realty with over 10 years of property management experi-

ence in Delaware, has this to say, “We have seen a significant increase in rentals and are ecstatic that the rental market has made a great comeback company and industry wide! In fact, at Greenville Place over the last year we have decreased our vacancy by over 25%. We have amazing changes going on with renovations to the apartments and the recent clubhouse that was just built greatly contributes to the success of the community and I am so happy to be a part of it all!” At Pettinaro Residential,

Thorp Reed & Armstrong opens office in Wilmington W ilmington , D E — Thorp Reed & Armstrong, LLP (Thorp Reed) has expanded its presence in the Mid-Atlantic region with the opening of a new office in Wilmington. This office allows Thorp Reed to provide its full range of legal services to its clients in Delaware. Additionally, Thorp Reed is now situated to provide local counsel for clients and co-counsel in Delaware matters, a significant role in a state with stringent rules for the practice of law. The Wilmington office further solidifies Thorp Reed’s bankruptcy practice group which over the past several years has represented clients in significant Delaware cases through its partners, Kimberly Wakim, Practice Group Leader, Patrick Carothers, William Price, and Jeffrey Carbino. In conjunction with the opening of the Wilmington office, experienced bankruptcy attorney Karen M. Grivner has joined Thorp Reed. Carbino, who is based out Thorp Reed’s Philadelphia office, and who is also a Delaware licensed attorney, will be part of the Wilmington office. n

The Towers at Greenville offer fully furnished and unfurnished one, two and three bedroom apartment homes with flexible lease terms.

The Towers at Greenville 210 Presidential Drive, Greenville

Contact Sally Prendergast • 302.504.1065 SPrendergast@Pettinaro.com The Pointe at Brandywine Park offers one of a kind luxurious condominiums on the Brandywine, with a low maintenance lifestyle and true peace of mind. From the upper $500’s.

The Pointe at Brandywine Park 1702 North Park Drive, Wilmington Contact Rob Moores • 302.654.9900 RMoores@Pettinaro.com

For more than 40 years, Pettinaro has offered the best addresses in the best locations. From flexible term furnished or unfurnished apartment leases to luxury condominiums on the Brandywine River, Pettinaro provides the perfect settings for very discriminating clients.

Pettinaro 234 North James Street Newport, Delaware 19804 302.999.0708

all seven of our locations have experienced an increase in occupancy in both our corporate short term furnished rentals as well as our traditional unfurnished longer term leases. While New Castle County Delaware occupancy trends are higher than national averages, we do not anticipate this to change in 2012. We are optimistic that the rental market will continue to grow. Sally H. Prendergast is director of sales for Pettinaro Residential, a division of the Pettinaro Companies. n

12A — September 23 - October 13, 2011 — Mid

Atlantic Real Estate Journal

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Operating and Managing over 3 Million Square Feet of Industrial and Commercial Real Estate in the Mid Atlantic Region

Twin Spans Business Park, City of New Castle, DE

Delaware River Industrial Park

• +/– 135 Acre Business Park in the City of New Castle • Minutes away from I-95/I-295, and Routes 9 & 13. • Site offers convenient access to the Delaware Memorial Bridge, Port of Wilmington and the entire northeast corridor. • Perfect for Office, Laboratory or Manufacturing / Distribution • Recently completed new access boulevard with signal controlled intersection on Route 9. • Park tenants include:Winterthur Catalog Operations, Hibbert Group,Tire Rack, Speakman Co., Mattress Giant, Schindler Elevator, Philadelphia Gear,Agilent Technologies

• 45 Acres of industrial zoned land (HI) located ideally near the Port of Wilmington, the Delaware Memorial Bridge, I-95 and I-295; with great access to entire northeast corridor. • High quality constructed buildings with space as small as +/– 14,500 sq. ft. • 24'–31' clear ceiling height • HI (Heavy Industrial) zoning allows for a wide array of uses • Park tenants include: Iron Mountain, National Roll Kote, DHL, Carlyle Cocoa, Harbour Textile,Waste Management, SKW Hardcore, Freeze, RecyClean

• +/- 400,000 Sq. Ft. business park in the town of Newport. • 1/2 mile from I-95/Rt. 141 interchange with immediate access to I-295, I-495 north and south. • Site offers convenient access to the Delaware Memorial Bridge, Port of Wilmington and the entire northeast corridor. • Park tenants include: AIG, Sieck Wholesale Florist, First State Paper, Qwest Communications, C-Cert, Apex Piping and Conectiv.

Newport Industrial Park For more information: Phone (302) 323-9300 Fax (302) 323-4951 29 East Commons Boulevard, Suite 100, New Castle, Delaware 19720

MAREjournal.com

Mid Atlantic Real Estate Journal — September 23 - October 13, 2011 — 13A

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14A — September 23 - October 13, 2011 — Mid

Atlantic Real Estate Journal

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People on the Move As deputy for DEC

Gibbons congratulates McTiernan on his new position

EWARK, NJ — Gibbons is pleased to congratulate Edward F. McTiernan on his new position as Deputy Counsel for the New York State Department o f E n v i o rnmental Edward F. ConservaMcTiernan tion (DEC). For the past 17 years, McTiernan has been a director at Gibbons, leading the firm en-

viornmental team, representing clients before federal and state administrative agencies, and litigating complex enviornmental actions. He was also a memeber of the firm’s executive committee. During his tenture, Gibbons achieved stellar rankings in the enviornmental law category in such publications as the Best Lawyers in America and Chambers USA Guide to America Leading Laywers for Business, and McTiernan himself was listed in both those publications, as well as New Jersey Super Lawyers. Prior

to his career in law, he worked as an enviornmental scientist focused on site remediation. “As leader of the enviornmental team at Gibbons, Ed has earned the trust and respect of Gibbons clients and colleagues with his exceptional skill, commitment, and insight,” said Patrick C. Dunican Jr., the firm chairman and managing director. We are confident Ed will do similarly outstanding work for the DEC, and we wish him all the best. Gibbons is headquartered in Newark. n

Walters Group promotes Adragna & Smith BARNEGAT, NJ — Walters Group, a residential and commercial real estate developer, has announced that it has promoted Carrie Adragna to the community manager of Atlantic Heights at Carrie Adragna Barnegat, a luxury apartment community in Southern Ocean County. “Carrie Adragna is an intergral member of the Atlantic Heights management team,” said Ed Walters, Jr., founder and partner of the Walters Group. “Her experience in real estate and her knowledge of the Ocean Country market will ensure resident satisfaction by adhering to our highquality standards.” Adragna, a licensed Realotr, joined the company in 2004 in the home sales division as a sales assitant to the marketing manager at Ocean Acres at Barnegat. Subsequently, she joined Atlantic Heights as a full-time leasing consultant then later moved to Stafford Park Apartments as a leasing consultant and assitant to the community manager. Adragna said, I am very excited to embark on this new

adventure; my training over the past seven years as a Walters Group employee has prepared me for my new role. The Walters Group is a great place to work and I am truly honored to Rylie R. Smith be a part of the team.” The Walters Group property management teams are dedicated to their communities, said Melissa Giarratano, asset manager. She added that, “We strive daily to continuously enhance our understanding of all aspects of property management to benefit our residents. We want our residents to experience a ‘lifestyle’, not just a place to live. We accomplish this by employing people that are conscientious, hardworking, loyal and honest. As community manager, Adragna will oversee the dialy operations at Attlantic Heights including managing the staff, and maintaining the property. Her primary focus will be on resident retention and customer satisfaction. “Our staff and residents take pride in our community, and I intend to continue this tradition,” added Adragna.

Walters Group has promoted Rylie Ragan Smith to community manager of Staffor Preserve, a new luxury rental community slated for occupancy in the spring of 2012. The project is located in Manahawkin. “It’s exciting to be a part of the Stafford Preserve community as it unfolds and to be involved in development of the property form the ground up,” Smith added. “The Walters Group is an integrity-driven company whoes values drive the management of their properties. Smith, was previously the community manager at Atlantic Heights at Barnegat. She joined the company in 2007 as assistant community manager. In her new position, Smith will oversee the daily operations at Stafford Preserve including managing, coordinating and accomplishing community objectives as set forth by the asset manager and the Walters Group. Her main objective will be maximizing occupancy levels, resident retention and enhancing the value of the property. “As property managers, our teams strives to continously enhance all aspects of property management to benefit the residents,” stated Melissa Giarratano, asset manager. n

The Hampshire Companies adds John Goldsmith, Jr. MORRISTOWN, NJ — The Hamsphire Companies has annoucne the appoinment of John Goldsmith, Jr. as asset manager. In his new role, Goldsmith will be responsible for sourcing and underwritting new acquistions, management and financial analysis for exisiting fund assets, and fundraising

support for the company and its real estate funds. Prior to joining Hampshire, he worked as an internal consultant for Mooring Financial Corporation where he focused on a corporate restructuring and spinoff of its tax lien division. Additionally, Goldsmith brings five years of investment management and real estate

private equity experience from his time at Goldmand Sachs & Co. and Starwood Capital Group. “John’s education, experience, and professionalism in investment management will prove to be a great asset to our firm investors,” said James E. Hanson II, CEO and president of The Hampshire Companies. n

In Edison as senior director

Marc Petrella joins Cushman & Wakefield EDISON, NJ — Commerical real estate industry veteran Marc Petrella has joined Cushman & Wakefield, Inc. as seniore director in the firm’s Central New Jersey industrial practice. He most recently served Marc Petrella as frist vice president/market officer at Prologis, where he was responsible for the overall performance and profitability of te company’s 18.6 million s/f New Jersey industrial real estate portfolio. Petrella’s career of nearly two decads included experience in both development and leasing. Prior to his time with Prologis, Petrella served as vice president of leasing with Keystone Property Trust. He also worked with CBRE as a senior associate. “I am enjoying being back in brokerage, working with my former colleagues on the ownership side while leveraging my experience on the services side of the industry,” he said. “Cushman & Wakefields’s talent and full suite of services - both locallyy and globally - makes this great place to be.

Our industrial platform is well prepared to serve clients as they ramp up operations commensurate with the economic recovery.” With his move to Cushman & Wakefield, Petrella continues his relationship with Prologis as part of the team responsible for leasing Cranbury Business Park, a 2 million s/f warehouse/distrubution campus in Port Reading Business Park, a master-planned development that can support 3.2 million s/f of industrial usage in Woodbridge and Carteret. “Marc’s expertise in all facets of industrial real estate development and operation make him an excellent addition to our Edison-based industrial team, which already is considered among the best in the market,” noted Gualbberto “Gil” Medina, Cushman & Wakefield’s New Jersey executive managing director. “As we work to strengthen our consultative role with clients, his ‘inside’ perspective will be an asset in our ability to present and implement strategic solutions.” Petrella earned a Bachelor’s Degree in economics and business from Lafayette College in Easton, PA. He is a licensed real estate sales person in the State of New Jersy. n

Madison Commercial Real Estate Svcs. hires Goldberg LAKEWOOD, NJ — Madison Commercial Real Estate Services (MCRES), an organization with mulitple companies offering specialty services to the real estate industry nationwide, an- Lainie Goldberg nounced the hiring of Lainie Goldberg as director of education for Madison Learning Center (MLC), its educational arm. “Goldberg’s experience and skills will allow MLC to further expand its professional continuing education programs,” said Joseph Rosenbaum, president of MCRES, in amking the announcement. “She has a very strong track record of developing and marketing high-quality executive seminars and courses. She also has direct real estate experience as a real estate closer. Her appointment reflets our

commitment to extending MCRES’ position as a trusted advisor and thought-leader in the commercial real estate indusry.” Prior to joining MCRES, Goldberg was the director of marketing and business development for Building Blocks Consulting, a company dedicated to educating and coaching sales and business leaders for professional growth and success. She previously worked as an independent title closer associated with Junction Abstract of Brooklyn, NY. Earlier in her career, she was a Training Manager for Northern Light Technology in Cambridge, MA, where she designed and delivered training programs for clients, including planning and directing course development, content, and assessment. She also was a senior training manager for Bose Corp. of Framingham, MA, where she created and conducted training programs for call center representatives to increase sales and customer service satisfaction. n

ENVIRONMENTAL SYSTEMS P.O. Box 1181, Pt. Pleasant, N.J.

MAREjournal.com

Mid Atlantic Real Estate Journal — September 23 - October 13, 2011 — 15A 732-892-8707

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Mid Atlantic Real Estate Journal — June 24 - July 7, 2011 — 23A

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■

# of pages: 1

Proof Fine

■

F Make Changes ElECTRICAl CoNTRACToR A SPHAlT • P AVING • C oNCRETE C oMMERCIAl R EAl E STATE Sect: NJPA Business Card Directory LECTRICAL CONTRACTOR ASPHALT • PAVING • CONCRETE COMMERCIAL REAL ESTATE A NJPA Real EstateEJournal ENGINEERING AERIAL PHOTOGRAPHY Phone # 800-584-1062 Phone: 732.360.9050 X Fax: 732-892-7236 Phone: 732.360.9050 Kevin McAghon, P.E. Fax: 732.360.0469 To: Jim Golden, Environmental Systems

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16A —September 23 - October 13, 2011 — Mid

Atlantic Real Estate Journal

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Commercial Real Estate Organizations’

Events Calendar SEPTEMBER 22 – NNJ AI Event: Capital Markets’ 2011 Life after the Credit Crisis Location: Paris Inn Address/City: 1292 Alps Rd., Wayne, NJ Cost: $50 P: 201-796-1171 www.nnjchapter-ai.org SEPTEMBER 23 – ABC EASTERN PA Events: Wilkes-Barre & Scranton Legislative Breakfast Time: 9:00 AM Location: Mountain Laurel Resort Address/City: Route 940, White Haven, PA P: 610-279-6666 E: rkelsh@abceastpa.org www.abceastpa.org SEPTEMBER 23 – CREW PITTSBURGH Event: Alleghany County Executive Candidates Lunch Program Time: 11:30 AM – 1:30 PM Location: Reed Smith Address/City: 225 Fifth Ave., Pittsburgh, PA Cost: $45 Members $65 Nonmembers E: admin@crewpittsburgh.org www.crewpittsburgh.org SEPTEMBER 24 – WFN Event: Color by Design Location: Eilene Fisher Address/City: 9 Elm St., Westfield, NJ P: 609-393-3752 x-25 www.wfnj.com SEPTEMBER 26 – NAIOP NJ Event: Chapter Meeting – Market Trends Discussion Time: 5:30 PM Location: The Heldrich Address/City: New Brunswick, NJ Cost: Corp. Member firms $110 Colleagues employed with NAIOP NJ member firms $145/Nonmembers $195 P: 732-729-9900 www.naiopnj.org SEPTEMBER 26 – DVGBC Event: Regional Policy Landscape for Energy Efficiency: Research Presentations Time: 9:00 AM – 12:00 PM Location: The Navy Yard Address/City: Building 101, 3rd Fl, Philadelphia, PA P: 215-399-5790 www.dvgbc.org SEPTEMBER 26-27 – CCIM Event: Introduction to Commercial Investment Real Estate Analysis Time: 8:30 AM – 5:30 PM Address/City: Harrisburg, PA P: 312-321-4460 E: membership@ccim.com www.ccim.com SEPTEMBER 27 – CIANJ Event: Moving the Deal Forward: Positioning Your Property for Success Time: 8:00 AM – 9:30 AM Location: Saddle Brook Marriott Address/City: 138 Pehle Ave., Saddle Brook, NJ P: 201-368-2100 E: nharencak@cianj.org www.cianj.org SEPTEMBER 27 – ULI PHILADELPHIA Event: Fall Networking Night at the Modules Time: 5:30 PM – 7:30 PM Location: The Modules Address/City: 1417 N. 15th St., Philadelphia, PA P: 800-321-5011 www.philadelphia.uli.org SEPTEMBER 28 – NAIOP MD Event: Developing Leaders Speaker Dinner Series Time: 5:30 PM – 7:30 PM Location: PAZO Address/City: 1425 Aliceanna St., Baltimore, MD Cost: $80 P: 443-986-9429 x-102 www.naiopmd.org

SEPTEMBER 28 – SMPS PITTSBURGH Event: “Trade Show Secrets” Time: 8:00 AM – 9:30 AM Location: PSI Address/City: 850 Poplar St., Greentree, PA Cost: $10 Members $15 Nonmembers E: Christy-lesnett@urscorp.com www.smpspittsburgh.org SEPTEMBER 29 – ABC BALTIMORE Event: Construction Quality Management Time: 7:30 AM – 6:00 PM Location: Loyola Graduate Center Address/City: 2034 Greenspring Dr., Timonium, MD Cost: $225 P: 410-821-0351 E: bjohnson@abcbaltimore.org www.abcbaltimore.com SEPTEMBER 29 – ABC NJ Event: 2011 First Annual Crab Fest Time: 4:00 PM – 8:00 PM Location: AOH Clubhouse Address/City: Columbia Blvd., National Park, NJ P: 609-989-9110 E: lslomka@njpsi.com www.abcnjc.org SEPTEMBER 30 – CFA PHILADELPHIA Event: 7th Annual FCA Society of Phila. Professional Development Day Time: 9:00 AM – 3:30 PM Location: Pennsylvania Convention Center Address/City: 12th & Arch Sts., Philadelphia, PA Cost: $35 www.cfaphila.org OCTOBER 4 – CREW LEHIGH VALLEY Event: Preview Tour of St. Luke’s Hospital-Anderson Campus Time: 11:00 AM – 1:00 PM Location: Register at Courtyard by Marriott Address/City: 2220 Emrick Blvd., Bethlehem, PA Cost: $20 Members $35 Guests E: pmorris@libertyproperty.com www.crewlehighvalley.org OCTOBER 4 – NJAA Event: 8th Annual NJAA PAC Reception Time: 7:00 PM – 9:00 PM Location: Crestmont Country Club Address/City: West Orange, NJ P: 732-992-0600 E: pac@njaa.com www.njaa.com OCTOBER 4 – NAIOP NJ Event: Social Media for Commercial Real Estate Professionals Time: 7:45 AM – 10:30 AM Location: Eisenhower Corporate Campus Address/City: Livingston, NJ Cost: $85 Members $110 Members’ Colleagues $135 Nonmembers P: 732-729-9900 www.naiopnj.org OCTOBER 5 – ABC NJ Event: National Labor Relations Board’s New Final Rule on Employee’s Rights Time: 9:00 AM – 11:00 AM Location: Moorsetown Community House Address/City: 16 East Main St., Moorsetown, NJ P: 856-235-4079 E: lslomka@njspi.com www.abcnjc.org OCTOBER 5 – SMPS MD Event: 30 Year Celebration Time: 5:30 PM – 8:30 PM Location: Frederick Douglas-Isaac Myers Maritime Park & Museum Address/City: 1417 Thames St., Baltimore, MD Cost: $65 Members $85 Nonmembers E: mmartin@lassociates.net www.smps-maryland.org

OCTOBER 5 – ULI PHILADELPHIA Event: Roundtable: For-Sale Residential Development in the Delaware Valley Time: 12:00 PM – 1:30 PM Location: Saul Ewing LLP Address/City: 1500 Market St., 38th Fl., Philadelphia, PA P: 800-321-5011 www.philadelphia.uli.org OCTOBER 6 – BOMA PITTSBURGH Event: Awards Banquet Location: Rivers Club Cost: $85 P: 412-261-2328 E: bomabarb@aol.com www.bomapittsburgh.org OCTOBER 6 – SIOR NJ Event: “Cocktails & Conversation” Time: 6:00 PM – 8:00 PM Location: Advance at Southgate Address/City: 445 South St., Morris Township, NJ www.siornj.com OCTOBER 6 – ULI BALTIMORE Event: 2011 Annual Wavemaker Awards Program Time: 6:00 PM – 9:00 PM Location: Legg Mason Tower Address/City: 100 Memorial Dr., Baltimore, MD P: 800-321-5011 www.baltimore.uli.org OCTOBER 7 – SMPS PHILADELPHIA Event: Real Estate Trends for Hospital & MOB Development Time: 8:00 AM – 10:30 AM Location: ArtQuest Center Address/City: Bethlehem, PA Cost: $35 Members $45 Nonmembers www.smpsphiladelphia.org OCTOBER 11 – NJAR Event: Realtors® International Summit Time: 10:00 AM – 2:00 PM Location: PNC Bank Arts CenterRobert B. Meyner Reception Center Address/City: 116 Garden State Parkway, Holmdel, NJ Cost: $15 P: 732-494-4705 E: mvarela@njar.com www.njar.com OCTOBER 12 – CIRC DE Event: Commercial Lending/Bankers Panel Time: 11:30 AM – 1:30 PM Location: Clarion Hotel – The Belle Address/City: 1620 N. DuPont Hwy., New Castle, DE Cost: $30 Members $40 Nonmembers P: 302-633-1705 www.circdelaware.org OCTOBER 12 – NJWEA Event: Central Section Meeting Time: 12:00 PM Location: Imperia Address/City: 1714 Easton Ave., Somerset, NJ P: 609-454-4564 E: njoy@omni-env.com www.njwea.com OCTOBER 11-13 – ICSC Event: PA/NJ/DE Idea Exchange Location: Pennsylvania Convention Center Address/City: 1101 Arch St., Philadelphia, PA Cost: $270 Member $485 Nonmember www.icsc.org OCTOBER 20 – SMPS Event: Mid-Atlantic Regional conference Time: 8:00 AM – 5:00 PM Location: Hilton Alexandria Old Town Address/City: 1767 King St., Alexandria, VA P: 703-349-6001 www.smpsdc.org

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Mid Atlantic Real Estate Journal — September 23 - October 13, 2011 — Inside Back Cover A

Mid Atlantic Real estate JouRnal

BILLBOARD

ClassiFieDs • ClassiFieDs • ClassiFieDs • ClassiFieDs • ClassiFieDs • ClassiFieDs • ClassiFieDs • ClassiFieDs • ClassiFieDs

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East Falls Neighborhood

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Back Cover A — September 23 - October 13, 2011 — Mid

Atlantic Real Estate Journal

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SHOPPING CENTERS Mid Atlantic REAL ESTATE JOURNAL

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Mid Atlantic Real Estate Journal — September 23 - October 13, 2011 — Section B

John-david W. Franklin Madison Marquette

Dean S. Zang, Jr. Marcus & Millichap

Mark Johnson RGS Associates

John Birkeland ROCK Commercial

Ward McMasters Earth Engineering

James Balliet KW Commercial

Steven Gartner Metro Commercial

Anthony T. Santora III A&E Construction

John M. Azarian The Azarian Group

James Conley Marcus & Millichap

Buck Collins Bohler Engineering

Liza Rice WRDC

COMMERCIAL REAL ESTATE

SNOW MANAGEMENT & LANDSCAPING

B Inside Cover — September 23 - October 13, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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Mid Atlantic Real Estate Journal — Shopping Centers — September 23 - October 13, 2011 — 1B

Current Availabilities in New Jersey & New York from The Azarian Group, L.L.C.

Allendale Town Center

Lenox Plaza Shopping Center

29-63 W. Allendale Avenue • Allendale, NJ

1750 Route 46 West • West Paterson, NJ

130 Skyline Drive • Ringwood, NJ

• Busy Route 46 highway location with rear access to Route 46 jug handle and McBride Avenue • Daily vehicle count of 120,00 plus • Shadow anchored by new A&P Fresh Shopping Center • Large pylon signs on Route 46 and McBride Avenue • Primarily occupied by National and Franchise tenants • 115,000 people within 3 miles; average annual HH income $82,000 • Existing stores include: Golfsmith, Sleepy’s, Party City, Pizza Hut, TD Bank, Blimpie and more • 1,200-4,000 s.f. available

• Only area shopping center • 27 stores and ofﬁces • 60,000 people in trade area; average annual HH income $92,000 • Numerous anchor and franchise tenants including: Stop and Shop, US Post Ofﬁce, Wachovia Bank, Coldwell Banker, Dunkin’ Donuts, Dairy Queen, The UPS Store and 18 more • 12 acres, 100,000 s.f. GLA Shopping Center, 356 Parking Spaces • No competition, no potential for further development in the area • 1,250-10,000 s.f. available

• Only area shopping center • Complete renovation and expansion completed March, 2010 • 67,000 people within 3 miles; average HH income $153,000 • Numerous anchor and franchise tenants including A&P Fresh Supermarket, Learning Express, TD Bank, Dairy Queen, Great Clips and 14 more • 5 acres; 90,000 s.f. GLA Shopping Center; 360 Parking Spaces • No competition, no potential for further development in the area • 1,700-2,500 s.f. available

Fieldstone Park Shopping Center

BREAKING GROUND SOON!

Raritan Center

Plaza K Shopping Center

Hyde Park Mall

426 Raritan Street • Sayreville, NJ

181 Route 1 South (at Ford Avenue) • Woodbridge, NJ

Route 9 • Hyde Park, NY

• Only area shopping center • Easy on/off Exit 124 Garden State Parkway; Near Routes 35 & 9 • 85,000 people in 3 miles; average annual HH income $71,000 • The Learning Experience to open soon in new 10,000 s.f. building • High density housing, apartments, townhomes, new home developments • Entire shopping center to be renovated and expanded in 2011 • Located at signalized intersection • 14 acres; 70,000 s.f. GLA Shopping Center; 385 parking spaces • Existing tenants include: Walgreens, Family Dollar, Subway, Eye Doctor, The Learning Experience and more • 2,500-13,650 s.f. available

• Busy highway location at trafﬁc signal w/ jughandle • Easy access to the Garden State Parkway, Route 287 and the New Jersey Turnpike • Daily vehicle count of 100,000 • 122,000 people within 3 miles; average HH income of $60,000 • 1,000 apartments within 3 blocks • Large pylon sign • Existing tenants include: The Vitamin Shoppe, Sleepy’s, Jennifer Convertibles, Any Garment Cleaners and more! • 7,802 square feet available

• Only area shopping center • Brand new Super Stop & Shop and Shop Gas coming soon! • 54,000 people trade area; average annual HH income $72,000 • Next to Historic FDR Home and Museum • Nearby Vassar, Marist and Dutchess County Colleges; Culinary Institute • Entire Shopping Center to be renovated and brand new • 15 acre, 130,000 square foot GLA shopping center with 670 parking spaces

The Azarian Group, L.L.C. The Azarian Building 6 Prospect Street, Suite 1B, Midland Park, NJ 07432 www.azariangroup.com Phone: 201-444-7111 | Fax: 201-444-6655 | Email: kpelio@azariangroup.com Shopping Centers and Ofﬁce Buildings Throughout New Jersey & New York: Rochelle Park Shopping Center, Rochelle Park, NJ Mountain Plaza, Rockaway, NJ 1,229-1,500 s.f. available Fieldstone Park Shopping Center, Ringwood, NJ 1,250-10,000 s.f. available Hyde Park Mall, Hyde Park, NY 3,000-33,000 s.f. available Walgreens Shopping Center, Fairﬁeld, NJ 1,500 s.f. available Milton Shopping Center, Oak Ridge, NJ 2,500 s.f. available Pine Brook Plaza, Pine Brook, NJ Allendale Town Center, Allendale, NJ 1,700-2,500 s.f. available NEW

Raritan Center, Sayreville, NJ 2,500-13,650 s.f. available Montvale Shopping Center, Montvale, NJ Town Plaza II, Orangeburg, NY 900-5,200 s.f. available Plaza K Shopping Center, Woodbridge, NJ 7,802 s.f. available Lenox Plaza, West Paterson, NJ 1,200-4,000 s.f. available The Azarian Building, Midland Park, NJ Fair Lawn Medical/Professional Building, Fair Lawn, NJ 571-5,300 s.f. available Neptune Plaza Shopping Center, Neptune, NJ 1,390 s.f. available Hamilton Square Shopping Center, Waldwick, NJ 2,000-5,040 s.f. available

2B — September 23 - October 13, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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SHOPPING CENTERS By Dean S. Zang, Jr., Marcus & Millichap

Retail investors turning to “B” & “C” assets, but pricing slow to rebound

bout a year ago, Marcus & Millichap Research Services astutely forecasted that 2011 would be the year we would see investor demand for “B” and “C” assets improve. Their hypothesis was that Dean Zang, Jr. demand for “A” product would drive cap rates down so far that the yields of “B’ and “C” assets would look appealing especially as investors became less risk adverse. As we enter the fourth quarter

of 2011, this forecast has only proven to be partially correct. Pricing on “B” and “C” product has modestly improved, but has not done so nearly as much as “A” product. Investors are still clearly distinguishing between “A” product and anything perceived as below it. I am frequently asked “what is trading”? My reply is simple. If you have a leading market share grocery-anchored center or a single tenant asset with a long term lease with any investment grade tenant, whether small or big box, they are trading. Not only are they trading, but to no surprise, the pricing on the aforementioned

products is effectively back to the “go go days” of 2004-2007. “A” product is trading in the 5 percent and 6 percent cap rates along the Mid-Atlantic Coast and North East corridor. We have an oversupply of buyers, and a shortage of supply. But where does that leave “B” and “C” product? The supply and demand for “B” and “C” product today is well balanced, but pricing has not rebounded as quickly, or as aggressively as many (including us brokers) would have hoped. For example, examine your typical Food Lion center, a common grocer in Pennsylvania, southwards. There are a handful of Food Lion centers available and the unleveraged yields start in the 8.5 percent range and head easily into the 9 percent range depending on your typical underwriting factors. When the Treasuries recently dipped, we saw a surge in buyer demand on “A” product and literally saw cap rates fall overnight. The same dynamic has not taken place on the lower quality product. Investors appear to be more risk tolerant today, but the secondary locations or smaller markets have not weathered the recession as well. Some speculate that rental rates in some regions will remain flat of the next few years. These and many other factors certainly influence pricing. The same is true of centers continued on page 30B

Shopping Centers Real Estate Journal a section of the

Mid Atlantic Real Estate Journal P.O. Box 26, Accord, MA 02018 781-871-5298 • 800-584-1062 fax 781-871-5299

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Associate Publisher Elaine Fanning efanning@MAREJournal.com

Section Editor Karen Vachon editor@marejournal.com

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Mid Atlantic Real Estate Journal — Shopping Centers — September 23 - October 13, 2011 — 3B

SHOPPING CENTERS

Contact Any One Of Our Attending Agents To Make An Appointment: Agent

Ext.

Email Address

Chad Stine Bobby Traynham Gary Russell Bradley Rohrbaugh Jeremiah Hamilton

253 245 259 251 232

cstine@bennettwilliams.com btraynham@bennettwilliams.com grussell@bennettwilliams.com brohrbaugh@bennettwilliams.com jhamilton@bennettwilliams.com

Kevin Potter Adam Hagerman Jeffrey Kauffman

256 235 228

kpotter@bennettwilliams.com ahagerman@bennettwilliams.com jkauffman@bennettwilliams.com

SILVER SPRING SQUARE

NEWBERRY POINTE

ROUZERVILLE COMMONS

MECHANICSBURG, PA 17050

NEWBERRYTOWN, PA 17319

WAYNESBORO, PA 17268

1,600 – 3,200 SF

1,440 – 16,440 SF

1,300 – 3,000 SF

SOUTH YORK PLAZA

NITTANY COMMONS

WAYNE PLAZA

STATE COLLEGE, PA 16801

CHAMBERSBURG, PA 17201

1,640 – 5,850 SF

1,620 – 3,705 SF

1,600 – 6,000 SF

HANOVER CROSSINGS

SILVER MOON SC

CAPE HORN SQUARE

HANOVER, PA 17331

LEWISBURG, PA 17837

RED LION, PA 17356

10,000 – 40,000 SF

1,285 – 6,000 SF

1,350 – 9,332 SF

SUPER CENTER PLAZA

DOVER MARKETPLACE

LEWISTOWN, PA 17044

SHIPPENSBURG SC

DOVER, PA 17315

1,200 – 4,400 SF

SHIPPENSBURG, PA 17364

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YORK, PA 17403

110 N. George Street – 4th floor York, PA 17401

717-843-5555 www.bennettwilliams.com

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4B — September 23 - October 13, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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SHOPPING CENTERS Ness Associates

Commercial Real Estate Appraisal & Review Services In today’s uncertain economy, accurate and well supported appraisals are necessary for the protection of your real estate interests. We provide the professional expertise you need to make sound decisions regarding the acquisition, financing, development or sale of real estate. COMMUNICATION...Professional service begins with excellent communication. We keep our clients informed through the entire process. QUALITY...We combine thorough research with in-depth analysis and modern valuation methods, resulting in objective market supported conclusions. TIMING...Assignments are completed in a timely manner to meet the demands of today’s fast paced real estate environment. INTEGRITY...Uncompromised independence is the hallmark of Ness Associates. Our services are completed in accordance with Uniform Standards of Professional Appraisal Practice and the Code of Ethics of the Appraisal Institute. PAUL S. NESS, MAI PA State Certified General Appraiser GA00047L 27 Years of Appraisal Experience

Lancaster: 717-390-7001 York: 717-764-7001 www.nessassociates.net

By Mark Johnson, RGS Associates

New requirements call for new approaches

he EPA’s pressure to improve the water quality of the Chesapeake Bay has pushed the Pennsylvania Department of Environmental Protection to adopt several new infiltration and water qual- Mark Johnson ity requirements that are well beyond previous stormwater management standards. As a result, this has dramatically changed how projects must be designed from the standpoint of

stormwater management and erosion and sedimentation control. In fact, the new requirements are so global and costly that they must be considered much earlier - in the initial site planning process. Otherwise, there may be costly and time consuming redesign or, in the worst case, the project may prove to be unfeasible after it is too late in the process. Today, effective site planning should be done with some understanding of how storm water management will be addressed. From there, the project’s engineering phase will involve greater detail of the

VISIT US AT PHILLY ICSC AT BOOTH # 425

overall design and calculations that are necessary to meet the new requirements. There are also required inspections and certifications of the stormwater facilities after they have been constructed. The new requirements also call for an enhanced level of thoughtfulness and creativity in the approach to the development of commercial real estate throughout the project. The approach to stormwater management should be carefully thought through at the very onset of the project. To the extent that it is possible to do so, a system of green spaces should be set aside for infiltration and stormwater management control. Of course, green space can often be very limited in commercial real estate projects. In those cases it will be especially important to be creative in the design of the stormwater management facilities, which will most likely have to be at least partly underground. There are many new approaches that can be considered for underground stormwater management. However, these should be studied carefully to avoid the problems of concentrated infiltration, especially in Karst Geology where sinkholes can occur. Diffuse approaches to infiltration are much preffered. One of the approaches that is often dismissed by both the private sector and the reviewing agencies is the use of pervious paving because it has been perceived as not working over the long term. However, some of the pervious paving products have improved considerably and where applicable, pervious paving can be one of the better solutions to diffuse infiltration and minimizing the amount of additional green space that may be required. One of the newer solutions is pervious concrete which has the potential to wear well and function well over time. Pervious paving can often be a solution even in Karst geologies that call for a particularly diffuse approach to infiltration. Where infiltration is not possible such as in severe Karst Geologies, it is necessary to focus on water quality. This can be addressed by a series of above ground and below ground natural and structural facilities. The bottom line is that it continued on page 7B

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Mid Atlantic Real Estate Journal — Shopping Centers — September 23 - October 13, 2011 — 5B

SHOPPING CENTERS

TURNING VISION INTO VALUE ACQUISITION

RENOVATION

DEVELOPMENT

206,100

CONNECTICUT Meriden Parkade - Meriden

199,100

MAINE Airport Mall - Bangor Capitol Shopping Center - Augusta JFK Plaza - Waterville Shaw's Plaza - North Windham Shaw's Plaza - Waterville Wells Plaza - Wells

228,100 197,900 174,200 124,300 119,100 132,900

MASSACHUSETTS Cushing Plaza - Cohasset Danvers Crossing - Danvers Foxborough Plaza - Foxborough Hannaford Bros. - Waltham Middleborough Crossing Middleborough Shaw's Plaza - Easton Shaw's Plaza - Hanover Shaw's Plaza - Plymouth Springfield Plaza - Springfield

104,900 57,100 178,100 511,800

NEW HAMPSHIRE Hood Commons - Derry Hooksett Village Shops - Hooksett

209,800 253,700

NEW YORK Colonie Plaza - Albany Columbia Plaza - Rensselaer Irondequoit Plaza - Rochester Lake Shore Plaza Lake Ronkonkoma Malone Plaza - Malone Saranac Lake Plaza - Saranac Lake St. Lawrence Plaza - Massena Troy Plaza - Troy Walden Village - Cheektowaga OHIO Boardman Plaza - Youngstown Fairlawn Town Centre - Fairlawn Knox Village Square Mount Vernon

Please visit us at Booth 321 at the ICSC PA / NJ / DE Idea Exchange October 11 – 13, 2011

Corporate Headquarters 940 Haverford Road Bryn Mawr, PA 19010 610-552-6000 wprealty.com

Acquisitions Joseph R. Staugaard, III, CFA jstaugaard@wprealty.com 610-552-6062

Leasing Charter Realty & Development Corp. 203-227-2922 chartweb.com

ALABAMA Midway Plaza - Opelika

71,200 176,300 120,600 45,800 131,900

168,300 136,200 215,900 94,800 178,600 68,200 166,300 129,300 209,400

625,400 446,800 207,400

PENNSYLVANIA Berkshire Square - Wyomissing Carlisle Crossing - Carlisle, PA Columbia Mall - Bloomsburg Dauphin Plaza - Harrisburg Devon Village - Devon East End Centre - Wilkes-Barre Festival at Exton - Exton Franklin Center - Chambersburg Mayfair Shopping Center Philadelphia Plaza 15 - Lewisburg Shamokin Plaza - Shamokin Valmont Plaza - Hazleton West Side Mall - Edwardsville

117,100 97,900 200,100 422,900

RHODE ISLAND Diamond Hill Plaza - Woonsocket Marketplace Center - Warwick

387,900 194,100

VIRGINIA Chesterfield Marketplace - Richmond

428,500

New Acquisition!

323,100 368,100 351,800 215,300 86,600 306,400 152,100 174,800 115,400

6B — September 23 - October 13, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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SHOPPING CENTERS By John Birkeland, ROCK Commercial

What Is A Cap Rate?

“W

hat is a cap rate?” I hear and see this

question posed quite often. The most common answer is a capitalization (“cap”) rate is defined as the annual John Birkeland net operating income (NOI) divided by the purchase price. While the response given is accurate, it does not fully answer

the question. This answer only addresses how to calculate a cap rate. A cap rate is a basic rate of return that is applied to the net operating income in order to establish the value of a property. It is not a sophisticated tool and it does have some shortcomings. For instance, a cap rate is a single year snapshot of the income and operating expenses and does not look at past or forecasted revenues and expenses. Despite limitations, a cap rate is a good arrow to have in

VISIT OUR BOOTH IN PHILLY #816 Scan this image to view our featured shopping center properties

Ryan Myers, CCIM Larry O’Brien, CCIM Ben Chiaro, CCIM John Birkeland Greg Finkelstein 717.854.5357 www.rockrealestate.net

Licensed in PA/MD/WV

your quiver, and when truly understood, it can assist as a solid metric in the intelligent analysis and comparison of investment properties. To really grasp cap rates, it is paramount to understand where they come from. It is relatively easy to find resources that publish market cap rates, often by geographic region and property type. This is certainly handy information to have in order to understand what the overall market is doing. Also, research of recent transactions of similar investment properties will produce current market cap rates. However if you are working as or for an investor, determining an individual cap rate is much more important. I studied under a real estate investment instructor that would become incredibly irritated when brokers would quote market cap rates. He would exclaim he had little regard for what the general market would pay - he was only concerned with what his cap rate was. At the time I thought he was pretentious. Now I understand that cap rates are subjective and reliant on the situation. Building a cap rate begins with a “safe rate”, or the highest rate of a return from an alternate investment that has no perceived risk. A 10-year US Treasury note is a common start. From there, risk factors are layered on top of that rate, such as liquidity. Turning real estate back into cash is rarely immediate, and that risk and opportunity cost needs to be quantified. Another item that can be added is time commitment. While some investments are completely passive, real estate often requires an investor’s time and energy. From overseeing accounts payable to unclogging sinks, it needs to be incorporated into the cap rate. A final example to take into consideration is possible functional or economic obsolescence. Not too long ago I had an investor inquire what a good cap rate should be for a well located retail property with a long-term lease with a national video rental store. Being aware of the growing market share of Netflix and Red Box, I warned the investor that his potential tenant may soon be obsolete and finding a replacement may not be continued on page 30B

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Mid Atlantic Real Estate Journal — Shopping Centers — September 23 - October 13, 2011 — 7B

SHOPPING CENTERS By Ward McMasters, P.E. Earth Engineering

Some Good News

e have all read articles lately regarding the economy with titles such as, “ H a v e We Turned the Corner?” and “Things Might Just be Looking Up.” With that said, I Ward McMasters have always considered the work that we do to be in some respects, a bellwether to the pace of the development industry. At Earth Engineering Incorporated we conduct due diligence geotechnical investigations for future developments of all kinds as well as the investigations required for project planning and design. That work combined with the due diligence environmental work that we perform represents a look into the pace of the construction and development industry. The current flow indicates that if this is not the beginning of a turn around for our area, I don’t know what is. We actually had a representative of a large national development firm make the statement to us that, “The people at the top of this firm say it’s time to move forward, so full steam ahead.” Even having a client utter those words is an indicator that it is starting to improve. The pace of Earth Engineering Incorporated’s investigations has significantly improved from this time last year. We firmly believe that this is a good sign for the regional markets as a whole. It is not only the overall pace; it is the type of projects. We are experiencing a reappearance of some office and large retail. Everyone involved in the construction and development industry in our entire area knows that By Mark Johnson New requirements call . . . continued from page 4B is key to plan for stormwater management and erosion and sedimentation control from the onset of the project. It is further important to understand the full effect of these new regulations throughout the project. Mark Johnson is a principal with RGS Associates, a multi discipline engineering and landscape architecture design and consulting firm specializing in the land development entitlement process. ■

it has a long way to go and it will take leadership and tough decisions to survive in the

and retaining wall design and evaluation. McMasters provides corporate management

“I have always considered the work that we do to be in some respects, a bellwether to the pace of the development industry,” McMasters said. “new” business atmosphere. But the point is it is always great to see signs of recovery and to be inspired by a little good news. McMasters is currently the president of Earth Engineering Incorporated, a full service geotechnical engineering firm established in 1990. EEI specializes in the field of geotechnical investigation, earthwork quality management, construction inspection and testing, and foundation

at EEI as well as geotechnical engineering oversight and technical review. McMasters holds a Bachelor of Science degree in Civil Engineering and a Master of Science in Engineering Management, both from Drexel University. McMasters is certified as a Professional Engineer in Pennsylvania, New Jersey, Delaware, and Maryland. McMasters is president of Earth Engineering. ■

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8B — September 23 - October 13, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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SHOPPING CENTERS By James Balliet, KW Commercial

Effective Retail Leasing in a Tough Economic Market

et’s take a very short walk down memory lane together. Do you remember when vacancies were low and rents were high and not vice versa? Or a time when retail brokers James Balliet could sometimes lease a vacancy before the sign company installed the For Lease sign in the front lawn? I do and aaaahhhhhh the memories. For those of you who do not remember the “easy” times

trust me those days are long gone. For those of you who remember, wake up because that dream is over. What it takes in this tough economic market is imagination, ingenuity, hard work and even some old-fashioned luck. We teach our group a very simple back to basics approach that we call S-O-L-D that I think will help you achieve higher commission dollars. Strategize. Observe. Lead Generate. Discipline: Strategize-Upon taking a new listing we sit down as a group and discuss all aspects of the property. Who are the logical Tenants that will best suit the space?

The James Balliet Commercial Group “The Lehigh Valley’s Premier Full Service Commercial Real Estate Company” • • • • • • •

Shopping Center Sales & Leasing Retail, Office, Medical & Industrial Properties Tenant Representation Business Brokerage Commercial Land Brokerage Multi Unit Apartments Distressed Property & Asset Management

KW Commercial | 40 S. Cedar Crest Blvd.| Allentown, PA 18104

610-435-4711 www.lehighvalleycommercial.com PA/NJ/DE Idea Exchange Booth #424

Why is our property more attractive than the shopping center across the street? What are the benefits of coming to our site and not the site down the street? How attractive is our Tenant lineup? We then highlight all of the positives and utilize these points in our marketing materials. Observe-Observe what is going on in the particular market the property is situated. Are we pricing the property correctly and at comparable market rents? Are there any new developments which will impact the property either positively or negatively and adjust asking rents accordingly. Will traffic patterns remain constant in the near future or will road construction affect the viability of our site? Lead Generate- This is the most obvious yet time consuming of all the steps and by far the most important. Lead generation is the collective of all OUTGOING marketing telephone calls, canvassing and any initiated effort to bring tenants to your space. Within our group lead generation is mandatory by each agent for a minimum of two hours EVERYDAY. Ask yourself…how much time are you dedicating to lead generation on a daily basis? It is harder than you think to dedicate the time every day but the rewards should be immediate. Discipline- We all spend way too much time running around and putting out day to day fires when a proactive disciplined approach is ALWAYS much more effective. I would suggest time blocking certain activities on a daily planner. For example 8:00 am to 9:00 am return phone calls or respond to voicemails. 9:00 am to 10:00 am return emails. 10:00 am to 12:00-Lead Generation. 12:00 pm to 1:00 pm –Lunch. 1:00 pm to 2:00 pm work on marketing packages. etc, etc…. I hope this helps the newer agents focus on getting more productive results and reminds the surly veterans of the hard work it takes to achieve in this industry. I wish the best to all of you. By the way wake me up when it is 2007 again. James is President of KW Commercial-The James Balliet Commercial Group located in Allentown, PA. Specializing in Shopping Center Sales and Leasing, and a 2010 CoStar Group Power Broker award recipient. ■

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Mid Atlantic Real Estate Journal — Shopping Centers — September 23 - October 13, 2011 — 9B

SHOPPING CENTERS Commercial Real Estate

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10B — September 23 - October 13, 2011 — Shopping Centers — Mid

152 Garrett Road Upper Darby, PA 19082 610-449-3152 201 Haddonfield-Berlin Road Cherry Hill, NJ 08034 856-857-9333

www.aeconstruction.com

Atlantic Real Estate Journal

SHOPPING CENTERS By Anthony T. Santora III, A&E Construction

A&E to Re-tenant vacant spaces in shopping cntrs.

Come see us at the ICSC Idea Exchange Booth 210

Fameco Real Estate is pleased to announce the opening of our newest office in Center City Philadelphia 1425 Walnut Street, Suite 200 Philadelphia, PA 19102 p 215.557.0050 | f 215.557.0053 Fameco Real Estate specializes in retailer representation, owner representation, investment sales and management services Come see us at the ICSC 2011 PA/NJ/DE convention being held Thursday, October 13th at the Philadelphia Convention Center. Our booth is #608. Philadelphia 1425 Walnut St, Ste 200 Philadelphia, PA 19102 p 215.557.0050 | f 215.557.0053 Plymouth Meeting 633 W Germantown Pk, Ste 200 Plymouth Meeting, PA 19462 p 610.834.8000 | f 610.834.1793 Woodbridge 555 US Highway 1 South, Ste 400 Iselin, NJ 08830 p 732.526.9100 | f 732.526.9101

www.famecoretail.com

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oday’s retail industry continues to take a big hit. Nowhere is this more visible than in the rising vacancy rate in shopping malls across the country. Owners, developers Anthony T. Santora and leasing agents are working with contractors to bring new life to once empty retail spaces. A&E Construction Co. has been

working with new and existing clients to repurpose these empty spaces in shopping centers and strip malls. The transformation of Marple Crossroads Shopping Center in Marple Township, Delaware County is almost complete. Now defunct retailers such as Circuit City, Linens-NThings, and Filene’s Basement have disappeared. A&E Construction was contracted by Blank Aschkenasy Properties to relocate and renovate new spaces for existing tenants

Marshall’s and Jo-Ann Fabrics, making room for a new 113,500 s/f Walmart and a new 70,000 s/f Burlington Coat Factory. Other new tenants filling the remaining vacant space include K&G Fashions, Sally Beauty and Dress Barn. Fameco Real Estate has had success in re-tenanting much of the complex. Jonathan M. Rome, General Counsel for Fameco adds, “These days you just have to try and think outside the box. And we do that literally and figuratively. We will not only look for nontraditional uses to fill up vacant space but will keep an open eye toward reconfiguring space, combining space and if necessary building additional space. You can’t afford to miss anything these days.” A&E Construction was also the contractor when Marple Crossroads Shopping Center had its transformation in 2005 with the demolition of the former 40,000 s/f Frank’s Nursery and garden center and the new state of the art addition that once housed Filene’s Basement and still houses DSW Shoe Warehouse. Bottom Dollar Food, a softdiscount grocer, is in the process of opening several stores in the greater Philadelphia market. A&E Construction recently completed a store in northeast Philadelphia at Krewstown Rd. and Welsh Rd., in the Krewstown Shopping Center. The project included demolition of part of the shopping center and construction of a standalone building next to it. There are still parts of the original center remaining. Two more stores under construction are on Lindbergh Avenue in Penrose Park Plaza, and on Roosevelt Blvd. and Borbeck St. in the Rhawnhurst section of Northeast Philadelphia. A&E is renovating vacant space in existing shopping centers in both cases. Anthony T. Santora III is President of A&E Construction Co. With over 30 years of experience in the construction industry, he is responsible for the retail market sector for the firm. ■

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Mid Atlantic Real Estate Journal — Shopping Centers — September 23 - October 13, 2011 — 11B

SHOPPING CENTERS Consulting Engineering

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12B — September 23 - October 13, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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SHOPPING CENTERS By John M. Azarian, The Azarian Group, L.L.C.

Why The Azarian Group, L.L.C renovates when others don’t

s a shopping center owner, it’s easy to fall into the trap of “my shopping center is fully rented, why renovate?” There are many reasons to renovate. Timing may be John M. Azarian one of them. Obsolescence is probably the most important one. So if your center is old and tattered does it really matter if you renovate this year or next (assuming you don’t have excess vacancy)? Let’s first look at the reasons we, as shopping center owners or managers, might consider renovating a property. • Obsolescence • Deferred Maintenance – run down condition and appearance • Old or out of date look • To attract new tenants and eliminate high vacancy • Update site plan and design to comply with current governmental laws and ordinances • To maintain a competitive advantage • Joint renovation program with Anchor Tenant Now let’s look at the benefits of renovating: • Strengthen your property’s market position • Attract new tenants • Tenant retention • Lower maintenance costs • Going “green”, higher efficiency operations (i.e., new, more efficient lighting options) • Extend sidewalk to increase or add outdoor sales areas for tenants, to accommodate outdoor café seating for restaurants; add a drive-thru for an existing end cap • Add additional leasable square footage to increase profit • Increase parking by creating a new, more efficient up to date design • New! And lastly let’s consider the challenges of renovating • Obtaining governmental approvals • Financing • Loss of Business during construction; tenant complaints; customer access

Allendale Town Center, Allendale, NJ Before – 1980s canopy look was worn and tired.

After -- This 95,000 square foot shopping center was expanded by about 5,000 square feet with new, retail space. Note the numerous architectural elements which give a downtown appearance. Also uniform channel letter signage on a raceway for all tenant signs. And a design which is harmonious with A&P’s Fresh store design. • Low demand for retail space And now let’s look at the renovation process – from concept to completion. Pre-Construction: • Concept; Create Branding • Assemble and meet with Expert Team (to include attorneys, architects, engineers, landscape architects, planners, etc.) • Formulate a plan; timetable • Obtain cost budgets from the Expert Team; Consider purchasing materials (such as lighting and poles) directly to save on costs • Review current zoning to determine needed approvals and expert needs • Meet and discuss renovation concept with high ranking town officials; obtain their feedback • Implement town ideas • Advise tenants • Discuss financing needs with lenders; obtain preliminary commitments • Seek governmental approvals • Prepare final, approved construction plans • Bidding; Value Engineering • Select a contractor • Pre-Construction Publicity Construction: • Obtain approvals (considerations such as timing,

weather, tenant interruption, etc.) • Begin construction • Monitor construction; weekly meetings, architect’s cert for payments Post-Construction: • Obtain Final Certificate of Occupancy • Publicity, Grand Opening Our Allendale Town Center, Allendale, New Jersey, is an example of a recent renovation / expansion which, besides updating a dated looking shopping center, also provided additional income by virtue of an expansion of new retail space of about 5,000 square feet, which was ultimately subdivided and leased to 3 new stores. (See photos.) The Allendale Town Center was last renovated in 1984 with state of the art blue canvas canopies with signage on a raceway band. While that look was contemporary at the time, and the renovation was performed in conjunction with A&P updating its store (which was the first Future Store prototype in the country – and where A&P filmed numerous television commercials), the time was right for an updating of this 80’s look. A&P converted its store to a Fresh prototype in 2006, and the Allendale Town Center’s new design and façade were created around A&P’s design. The Walgreens Shopping

Center located on Route 46 West in Fairfield, New Jersey was renovated and updated about 5 years ago. This highway strip center has a daily vehicle count of more than 120,000 and is located at a major jughandle / exit. It also has rear access to the local area. This shopping center was last renovated in 1980 with a California wood look (see pictures). This dated look needed refreshing and a new design, incorporating the existing brick pillars but also including a new façade with eye catching illuminated dormers containing 6 foot color panels with bird photographs (all birds are indigenous to the area) has been something everyone talks about. It is the only shopping center with this type of design, anywhere. The Rochelle Park Shopping Center, Rochelle Park, New Jersey is located at the busiest intersection in Bergen County. This small strip center provides quick food restaurants and services. Its outdated appearance was replaced with a clean, mansard design, heavily incorporating red coloring and uniform tenant signage, also in red, and also includes a large 8 foot three dimensional bird design. It is easier and probably more cost effective to renovate an existing location than develop from the ground up.

With a renovation you already have the benefit of an existing, potentially successful shopping center which has governmental approvals, existing tenants, a customer base, etc. A new development is speculative, may present challenges in obtaining approvals, financing, tenants, etc. And in heavily developed areas securing developable land is becoming increasingly difficult. Now is the time to plan and implement renovation of your existing properties. Construction costs are low, very favorable financing is available for the right properties, and tenants are opening more stores and developing aggressive expansion plans. It may also be the time to approach your anchor tenant about a joint program of renovating. Whatever direction you take, it’s important you formulate a plan for the future and strengthen your investment in your existing shopping centers. And be creative – don’t do what every one else is doing, come up with your own unique design which will update the look of your shopping center but which will also be something people talk about John M. Azarian has been actively involved in commercial real estate since 1980. He is the CEO / President of The Azarian Group, L.L.C., a commercial real estate management and development company which owns / manages / develops commercial properties in Northern New Jersey and New York State. The Azarian Group was formed in 1970. The Azarian Group’s portfolio includes more than 1,000,000 s/f with approximately 300 tenants. John is a Certified Shopping Center Manager (CSM) and licensed real estate broker in the states of NJ and NY. He is the President of the John M. Azarian Memorial Armenian Youth Scholarship Fund, which annually awards scholarships to underprivileged college students of Armenian descent. He has also currently is an active member of St. Leon Armenian Church, Fair Lawn, NJ where he has also served as a Sunday School teacher. He is married with four children. ■

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Mid Atlantic Real Estate Journal — Shopping Centers — September 23 - October 13, 2011 — 13B

SHOPPING CENTERS

Hylant Environmental Risk Management

By James Conley, Marcus & Millichap

Retail Financing is still going strong

vailability of financing for retail deals in the Mid-Atlantic region in primary markets remains competitive for “A” and “B” quality deals. Banks and Life Insurance companies are leading the way with certainty of James Conley execution and the most aggressive terms. In addition there is financing available for “C” quality assets, however it is being done with the proper structure such as lower loan to value ratios, recourse, shorter amortizations, higher debt service coverage ratios and interest rates. From a location standpoint, properties in secondary and tertiary markets are much more difficult to finance, sharing the type of structure that “C” quality assets require in order to satisfy the underwriters. Banks are offering LTV’s of 70-75% with non-recourse being offered for the more attractive deals with credit tenants and little lease roll. Amortizations are ranging from 25 to 30 years with a 1.25 DSCR and interest rates ranging from 4.0-5.50% depending on the length of term and quality of the asset. The large Life Insurance Companies are offering LTV’s of 65-70% with amortizations of 25 years with a DSCR of 1.35% for most deals. Interest rates will range from 3.505.25% depending on the length of term and strength of the deal. Borrowers should keep in mind that the large life companies typically have minimum loan sizes around $10 Million. Smaller life companies are very active in the $1 - $10 Million loan market with welldiversified portfolios of smaller loans to mitigate risk. Rates are in the 5.00% - 6.25% in those markets, depending on quality, location, underwriting and in many cases, strength of the borrower. The Commercial Mortgage Backed Securities lenders are offering LTVs of 70-75%, non-recourse, 1.25 DSC and spreads of 350-400 over the 10 year swap. Even with the current volatility in the CBMS markets they should still be

considered a viable source for financing when looking for higher leverage, 10 year fixed rates, 30 year amortization schedules, and non-recourse. A few of our recently closed deals include a $27,200,000 Walgreen’s portfolio which was financed through a Credit Tenant lender; $7,040,000 neighborhood retail center Shoppe’s at Red Lion with a regional bank; $5,714,000 Walgreen’s with a Credit Tenant lender. The state of retail financing in our market will remain stable along with historically low

rates through the remainder of this year and possibly longer, due to the European debt crisis and struggling US economy. In addition, each property will be underwritten on a case-bycase basis, with the financing terms reflecting the quality and location of the asset. James Conley is a Director at Marcus and Millichap Capital Corporation in Philadelphia and has over 10 years of commercial real estate financing experience. ■

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14B — September 23 - October 13, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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SHOPPING CENTERS

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Mid Atlantic Real Estate Journal — Shopping Centers — September 23 - October 13, 2011 — 15B

SHOPPING CENTERS By Buck Collins, Bohler Engineering

New storm water management rate structure

tarting July 1, 2010, Retail Property Owners, Developers and Tenants got their bills from Philadelphia Water Department (PWD) and their usual costs had doubled, tripled and Buck Collins more! Philadelphia, like many older East Coast cities, has a “Combined System”. Sewer effluent and storm water runoff are connected to PWD’s wastewater treatment plants where the mix is treated and discharged into a nearby watercourse. With the advent of stricter DEP discharge rules and treatment costs continuing to rise, the solution for PWD and the City of Philadelphia is to pass along those costs to the property owners! Previously, charges were based primarily on water usage. For property Owner/ Operators, the costs were modest and understandable – they paid for the water they used in their sinks, toilettes, janitorial and landscaping. For Owner/Landlords, these costs were easily justified and often passed through to their tenants. The new rate structure shifted from one based on a water meter showing consumption to one based on PWD’s calculations of the amount of storm water runoff entering the system. PWD calculates its charges in two ways; IA (Impervious Area) is “any hard surface area…that either prevent or restricts the absorption of water into the soil, thereby causing water to run off the surface.” and is billed at a very high rate (4.169/500 sf. per month) and GA (Gross Area) is the total area of the sites except for sidewalks and other uses in the public “Right-ofWay” that is not IA area, and is billed at a very low rate (0.528/500 sf. per month). Retail operations are among the hardest hit. They feature larger buildings, built to serve patrons on quick buying trips involving cars that need parking. City ordinances require enough parking to handle peak shopping traffic. So a typical retail operation in the city is a larger building with a large parking lot. Land is very valuable in the

city. Shoppers are on-site and in the stores for short periods of time getting little benefit from outdoor green spaces. In turn, retail sites have been developed as efficiently as possible, with a high percentage of IA area and a low percentage of GA area, resulting in very high PWD charges for Storm Water Management, as opposed to a residential site with a lawn that has a low percentage of IA area, a high percentage of GA area and low PWD charges. Retail site Owners, Developers and Tenants have three options to lower costs:

Credits for existing site conditions that PWD is unaware of like direct discharge, porous pavement and others; Appeals of PWD calculations for percentages of impervious and pervious areas or incorrect parcel area; New Storm Water Management Technologies and Best Management Practices (BMP’s) implemented, including green roofs, rain gardens, re-use for irrigation, fire suppression and toilets and custodial uses for new projects or upgrading existing sites.

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16B â&#x20AC;&#x201D; September 23 - October 13, 2011 â&#x20AC;&#x201D; Shopping Centers â&#x20AC;&#x201D; Mid

Atlantic Real Estate Journal

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Mid Atlantic Real Estate Journal — Shopping Centers — September 23 - October 13, 2011 — 17B

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18B — September 23 - October 13, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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SHOPPING CENTERS Metro Commercial represented both parties

Katz Properties acquires control of SC for $16.15m

AD-DA-NYC-2011SEP14-P1V1

Stantec is once again one of the top 10 ﬁrms in Commercial Construction Magazine’s Top Commercial Architects and Engineers Reports for 2010. Firms are ranked in the retail, hospitality and restaurant industries. Stantec is a global design ﬁrm providing planning, engineering, architecture, sustainable design, and program management services to retailers across North America. Visit us in Philly at Booth #829 Joseph Viscuso (610) 840-2505 Clifton Quay (856) 234-0800

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HILLINGTON, PA — Katz Properties of New York has acquired control of Kenhorst Plaza shopping center for $16.15 million. The 162,000 s/f supermarket anchored shopping center on 19.2 acres, is located at 1895 New Holland Rd. National retailers located in the center are Dollar Tree, Fashion Bug, General Nutrition Center, H&R Block, Sears Hardware and a US Post Office. The outparcel tenants at the center are Dairy Queen and Susquehanna Bank. Eric Wolf, a managing di-

Kenhorst Plaza rector of Katz Properties, operators that we expect will said “we are very pleased to complement the products and add another quality grocery services already offered by our anchored shopping center existing tenants.” to our growing portfolio. We Daniel Katz, a principal have already begun work on of Katz Properties, said that filling the vacancies and will “Redner’s is a top performcontinue to seek quality retail ing supermarket in this local market, which is a densely populated residential neighborhood with well established traffic patterns.” He also said that “this property has the key characteristics that we seek in a grocery anchored center and that” they will “continue to seek additional acquisition opportunities in the Pennsylvania market and in the northeast corridor.” Mortgage financing was provided by AIG and was arranged by Tim Breda of Goedecke & Co. Paul Rumley of Metro Commercial represented both Katz Properties and the selling partnership. Leasing and property management services will be provided by Winslow Property Management, an affiliate company of Katz Properties. ■

CBRE completes the sale of 10,000 s/f retail property

Our Real Estate Team Specializes In... t t t t t

Apartment Complexes Condominiums Industrial Buildings Office Buildings Shopping Centers

ROBERT D. ODELL, CIC Chairman rodell@odellstudner.com 484-586-3907 (direct) 866.282.9742 (toll free) www.odellstudner.com

Visit us at PA/NJ/DE ICSC Show at Booth # 1020

TRENTON, NJ — CB Richard Ellis announced the recent sale of a 10,000 s/f free-standing retail property located at 1242 Hamilton Ave. CB Richard Ellis’ Charles Berger of the firm’s New Jersey Private Capital Group collaborated with Eli Klapper and David Gross of the firm’s Outer Borough Long Island office to represent the seller and procure the buyer in this net lease sale transaction. “In this transaction, we were able to utilize our firm’s vast array of resources and tools to identify a buyer that was looking for a stable net lease investment in New Jersey, which is in high demand right now. We were able to procure one of the most aggressive cap rates for a Dollar General store in the country, which included a double net 10-year lease in place with two five-year options,” said Berger. ■

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Mid Atlantic Real Estate Journal — Shopping Centers — September 23 - October 13, 2011 — 19B

SHOPPING CENTERS

Glen Eagle Square is pleased to announce the arrival of

Opening March 2012 Visit the Madison Marquette Booth at PA/NJ/DE ICSC Deal Making to discuss joining an amazing line-up of national and local retailers, restaurants and boutiques including: Gap • Gap Kids • Banana Republic • Ann Taylor

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20B — September 23 - October 13, 2011 — Shopping Centers — Mid

Of 501 Beaver St., located in Sewickley

Grant Street Associates’ Geiger and Sell broker $1.225 million sale

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SHOPPING CENTERS

BreakingNew NewGround Ground Breaking

Over 70 years of experience in commercial and industrial site management will put your new project on a solid foundation. Before you break new ground, visit

Atlantic Real Estate Journal

63 Kreider Lane Manheim, PA 17545 (717) 898-7651

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EWICKLEY VILLAGE, PA — Michael Sell, manager of Grant Street Associates Investment Services Group, and Robert Geiger, principal of Grant Street Associates, have brokered the $1.225 million sale of 501 Beaver St., located in Sewickley. The 8,357 s/f retail/office building was purchased by GKK Sewickley, L.P. from BNY Mellon National Association. Citizens Bank is the primary tenant in the building and leases 4,000 s/f. The property is situated in the heart of the business district and is adjacent to the historic Sewickley Hotel. ■

501 Beaver St.

3,793 s/f signed at Regency Centers’ Ashburn Farm Mkt. Center ASHBURN, VA – Regency Centers, a national owner, operator and developer of grocery-anchored and community shopping centers, has signed two new leases at Ashburn Farm Market Center to Mathnasium and Zinga Frozen Yogurt. Specializing as a tutoring and learning center for children grades K-12, Mathnasium has leased 1,529 s/f of space. With self-serve frozen yogurt and toppings, Zinga Frozen Yogurt has leased 2,264 s/f of restaurant space. Both businesses bring the center to 100 percent leased. The 91,900 s/f shopping center is anchored by a 49,000 s/f Giant, alongside national retailers such as Starbucks, Subway, Domino’s Pizza and Supercuts. ■

Our Core Service Areas: • Site Traffic Development • Traffic Engineering York Town Center

• Transportation Planning • Highway / Roadway Design • Traffic Signal Design • Parking Studies • Expert Consultation

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Richardson Comm’l. Realtors’ Guckin brokers 1,140+ s/f sale

Our Retail / Commercial Sectors : • Retail Centers / Big Box • Commercial Office

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EWING, NJ – Richardson Commercial Realtors announced the sale of the property located at 1822 North Olden Avenue to The Gardee Group. The property is 1,140+ s/f of single story retail space. The property is presently an ice cream shop but will be converted into a juice bar / health food store. Tom Guckin, the agent for the property was excited to find a buyer who can make use of a retail property on a major artery in a great location in Ewing’s primary shopping district. The buyer was represented by Richard Weidel Realtors. ■

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Mid Atlantic Real Estate Journal — Shopping Centers — September 23 - October 13, 2011 — 21B

SHOPPING CENTERS Keystone Property Associates, LLC, represents itself

NTH Consultants, Ltd.

Metro Commercial inks 98,450 s/f in PA and NJ

Your consulting partner through all phases of development or redevelopment projects. We provide the following services: • Geotechnical engineering • Environmental services • Construction observation and testing • Roofing evaluations and design

ICKSON CITY, PA — Metro Commercial brokered a 52,450 s/f lease for Hobby Lobby Stores, Inc. at Kohl’s Plaza. Metro Commercial’s Randy Hope and Mark Gerlach, represented Hobby Lobby in the lease transaction. The landlord, Keystone Property Associates, LLC, represented itself in conjunction with The Keith Corporation, Hobby Lobby’s regional real estate advisor. Construction on the space is currently underway and the new location is expected to open in February 2012. The new location, the 5th store to open in Pennsylvania, is expected to do exceptionally well in this highly populated area. “Hobby Lobby offers a convenient and affordable option for crafters in the area,” says Gerlach. “We believe that Hobby Lobby will be a great addition to Kohl’s Plaza.” Kohl’s Plaza is located at Commerce Boulevard, East of US Route 6. “This is the 2nd location that Metro Commercial Real Estate has secured for Hobby Lobby in Pennsylvania,” says Hope. “We are excited to be assisting Hobby Lobby with their Pennsylvania expansion plans.”

EverydayBrilliance Brilliant engineering solutions - delivered daily.

Hobby Lobby location consisting of 5,400 bersburg is scheduled to open s/f opened in St. Petersburg in September 2011. earlier this year. In New York, a 5,820 s/f In Pennsylvania, a 4,321 store opened at Johnson City s/f Lumber Liquidators on Town Center in Johnson City Lincoln Way East in Cham- on September 2011. ■

www.nthconsultants.com (484) 893-1440 i Bethlehem, PA (610) 524-2300 i Exton, PA

Locations Wanted Consistently Ranked #1 Franchise 45+ Year Track Record

We’re looking for sites in PA Lumber Liquidators MOUNT LAUREL, NJ — As part of its national representation of Lumber Liquidators, Metro Commercial brokered 7 leases totaling nearly 46,000 s/f. Metro Commercial’s Brandon Anapol, along with Tom Londres, Dan Brickner, Steve Niggeman and Phil Azarik serve at the leasing team for the national retailer. In Georgia, an 8,468 s/f store in Kennesaw Landing in Kennesaw and a 6,000 s/f store in Newnan opened in July 2011. Now open is a 10,150 s/f store in West Allis, Wisconsin. In January 2011, a 5,200 SF store opened at Palmetto Palms Business Park in Miami, Florida. A second Florida

Flexible Space Requirements End Cap, In-line, Free Standing Non-Traditional Venues - Hospitals/Colleges Universities/B&I/Stadiums/Casinos/Airports Local Contacts: Eastern PA — Philadelphia PA —

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22B — September 23 - October 13, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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18 million square feet ARIZONA Mesa Kohl’s McKellips Road & Recker Road 95,279 SF GLA Part of Falcon View Plaza w/ Fry’s Phoenix Freestanding Barnes & Noble 1035 N. Metro Pkwy. West & 28th Dr. Adjacent to Metro Center Mall 19,360 SF on 1.48 Acres Tolleson Freestanding Kmart West McDowell Road & North 86th Drive 86,479 SF GLA FLORIDA Gainsville Mixed Use – Grocery Store & Student Housing NW 13th St & University Avenue 1.74 Acres Over 27,500 SF Ground Floor Retail in Proposed 171,000 SF 6-Story Residential Bldg Fern Park Lowe’s Shopping Center 6735 Hwy. 17-92 & Fernwood Blvd. near Hwy. 436 129,085 SF GLA Proposed Retail Strip: 9,000 SF ILLINOIS Downers Grove Marshall’s at The Grove 75th St. & Lemont Rd. 400,000 SF GLA Anchor Space Available 43,264 SF Niles Golf Glen Mart (Outparcel) Golf Rd. & Dee Rd. Up to 12,000 SF Outlot, B-T-S INDIANA Evansville Evansville Shopping Center Morgan Ave. & Boeke Rd. Rural King, Dollar General 153,000 SF GLA Indianapolis Pendleton Plaza Pendleton Pike & Shadeland Ave. Kmart 134,797 SF GLA South Bend South Bend Shopping Center US Hwy. 20 & US Hwy. 31 112,900 SF GLA Anchor Space Available

Management LLC

MICHIGAN Grand Blanc Vacant Land Holly Rd. & I-75 22 Acres For Sale Muskegon Muskegon Shopping Center Henry St. & Norton Ave. 187,000 SF GLA Anchor Space Available Port Huron Port Huron Shopping Center Howard St. & 24th St. Big Lots, Save-A-Lot, Family Dollar 118,000 SF GLA Anchor Space & Outlot Available Redford Redford Plaza Plymouth Rd. & Inkster Rd. CVS/114,865 SF GLA Anchor Space Available Saginaw Saginaw Square Tittabawasse Rd. & Bay Rd. Target, JoAnn Etc., Staples 94,891 SF GLA Anchor Space Available Sandusky Kmart Shopping Center M-19 & Gates Rd. 176,248 SF GLA Anchor Space Available Southgate Fort St. & Burns Ave. 60,800 SF GLA Freestanding / Redevelopment Opportunity MINNESOTA St. Paul Midway Shopping Center University Ave. & Snelling Ave. Rainbow Foods, Office Max, Walgreens 280,353 SF GLA Anchor Space Available 40,262 SF NEVADA Las Vegas Kmart Plaza E. Sahara Ave. & McLeod Dr. 127,754 SF GLA 10,945 SF Outbldg. Available NEW JERSEY Marlton (Evesham) Tri-Towne Plaza Route 70 & Plymouth Dr. Superfresh/176,519 SF GLA Anchor Space Available/Redevelopment Opportunity

Thomas G. Mirandi 212-265-6600 Ext. 239 Email: tmirandi@rdmanagement.com Fax: 212-459-9133

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Mid Atlantic Real Estate Journal — Shopping Centers — September 23 - October 13, 2011 — 23B

200 retail projects NEW YORK Nanuet Home Depot Plaza Route 59 & Hutton Ave. Home Depot, Staples 250,000 SF GLA/Pad Available

PENNSYLVANIA Allentown Home Depot Plaza Lehigh St. & Route 78 220,000 SF GLA 9.82 Acres Available

Orangetown Orangeburg Commons Route 303 & Palisades Parkway Future Retail Development Anchor Space, In-Line Space & Pads Available Adjacent to Lowe’s

Carlisle Hanover Street (Route 34) & I-81 Home Depot, Chili’s 140,715 SF GLA 10,584 SF Future Expansion/Pad

NEW JERSEY Mt. Olive Pad Sites Available Adjacent to Foreign Trade Zone Across from Wal-Mart, Sam’s, TJ Maxx Old Bridge A & P Shopping Center Route 9 & Ferry Rd. 64,920 SF GLA Up to 4,000 SF Outlot Vineland Vineland Marketplace Delsea Dr. (Route 47) & College Dr. New Development 273,657 ± SF GLA / Outlots Available Williamstown Williamstown Shopping Center Black Horse Pike (Route 42) & Main St. CVS, Fashion Bug, Dollar General 85,000 SF GLA Anchor Space Available NEW YORK Deer Park Kohl’s Plaza Commack Rd. & Grand Blvd. Kohl’s, Super Stop & Shop 182,875 SF GLA Proposed Pad 3,800 SF Glenville/Scotia (Albany) Freestanding Building Saratoga Rd. (Route 50) & Glenridge Rd. 128,485 SF GLA Anchor Space Available Holtsville Island 16 Cinemas Shopping Center Nicholls Rd. & Long Island Expwy. National Amusements Theater, Chili’s 117,342 SF GLA Pad Bldg. Available with Drive-thru

Staten Island Lowe’s West Shore Center Veterans Rd. West (I-440) & Arthur Kill Rd. Pad Building Available 7,000 SF New Retail Bldg. Available 166,600 SF GLA Stony Point Stony Ridge Plaza Route 9W & Park Rd. US Post Office, Curves For Women 21,212 SF GLA Williamsburg (Brooklyn) North Side Piers Retail 20 North 5th St. & Kent Ave. Tower I: 181 Condos, 113 Apts. & 17,167 SF Retail Tower II: 250 Condos & 5,178 SF Specialty Rest. OHIO Ashtabula Home Depot Plaza Route 20 (N. Ridge Rd.) & Orchard Rd. 130,000 SF GLA 18,440 SF Expansion & Pad Findlay Hobby Lobby Plaza Tiffin Ave. & Croy Dr. Hobby Lobby Anchor Space Available

Latham/Colonie (Albany) Kmart Shopping Center Route 7 & Swatling Rd. 118,863 SF GLA Up to 10,000 SF Outlot Available

Oregon (Toledo) Vacant Land – 4.645 Acres Dustin Rd. & Isaac Street Dr. 1 block south of Navarre Ave. (Rte. 2) & Kmart 116,805 SF GLA

Monroe/Woodbury Harriman Commons Routes 17 / 6 & Route 32 Wal-Mart, Home Depot, BJ’s, Target, Home Goods, Best Buy 687,716SF GLA Anchor Space & Outlots Available Future Phase III Office Bldg.

OREGON Salem Kmart Shopping Center Mission Street S. E. 116,866 SF GLA

Management LLC

Trexlertown Trexlertown Marketplace Hamilton Blvd. (Route 222) & Mill Creek Rd. Walgreens, Panera Bread, Verizon 36,068 SF GLA TENNESSEE Hermitage (Nashville) Freestanding Bldg. adjacent to Jackson’s Courtyard Shopping Center 3445 Lebanon Pike 24,040 sf GLA 36,000 sf GLA Possible Redevelopment Texas Ft. Worth Westcliff Shopping Center Albertson’s Market, Dollar General Alton Rd. & Biddison St. 133,332 sf GLA VIRGINIA Richmond Food Lion Plaza Route 1 (Jefferson Davis Hwy.) & Chippenham Pkwy. Outlots Available WEST VIRGINIA St. Albans St. Albans Center Route 60 & MacCorkle Ave. SW Kmart, Super Kroger, Peebles, CVS 230,000 SF GLA PUERTO RICO Arecibo Arecibo Towne Center Routes 2 & 22 Future Development Anchor Position & Outlots Available Ponce Reina del Sur; Outlots at Ponce Towne Center II Rtes. #2 & Baramaya Ave. (Rte. 10) @ PR-52 Wal-Mart SuperCenter, Home Depot New Development & Pads 525,000 ± SF GLA

Thomas G. Mirandi 212-265-6600 Ext. 239 Email: tmirandi@rdmanagement.com Fax: 212-459-9133

24B — September 23 - October 13, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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PEOPLE ON THE MOVE Combine to effectively meet growing customer needs

Lipinski Outdoor Services & R.E.I.T/M&H Services merge

A R LT O N , N J & GLENMOORE, PA — Lipinski Outdoor Services, a leader in exterior facilities management, and R.E.I.T/M&H Services, an experienced indoor/outdoor construction and exterior management firm, have combined to form a joint enterprise. Facilitated by an experienced private equity team at L2 Capital Partners, the combined entity will better serve its customers through expanded service offerings and industry expertise. “By combining Lipinski and

R.E.I.T/M&H Services, we have created a single service provider to better meet the diverse and growing needs of our customers,” said Vince Willis, Chairman of the joint enterprise. “We’ve made it even easier for customers to do business with us. They will continue to receive the same exemplary customer service they’ve come to know and expect, from one vendor, and they’ll get a competitive price.” The announcement underscores the strategies of both companies to provide superior

exterior facility management and other services to retailers and commercial building properties in the Eastern half of the United States. “We are now more sustainable. We are re-investing in expanding our services and are poised for continued growth over time,” added Doug Cook, the long-time president of Lipinski who will serve as president of the joint enterprise. Each company will retain its current brand name for the immediate future and will remain in its current facilities. ■

Brookwood Consulting Group’s Dodge partners with MSC to form a new division P H I L A D E L P H I A , PA — Brookwood Consulting Group’s Greg Dodge recently partnered with commercial real estate brokerage and advisory firm Michael Salove Company (MSC) Greg Dodge to create a full-service restaurant and hospitality division: MSCBrookwood. Bringing Dodge’s 25 years of industry experience and deep personal connections to top-level restaurant talent and combining them with MSC’s 25 years at the top of the retail, restaurant and hospitality real estate market, MSC-Brookwood will immediately become an invaluable resource to entrepreneurial restaurateurs, hoteliers and developers. MSC-Brookwood, with their industry-leading connections and abilities in Philadelphia, will look to expand their reach nationally, working with existing and new clients to create and maintain mutually beneficial partnerships between hospitality professionals and developers. “This collaboration makes it even easier for our clients to navigate what can be a very tricky path to opening a restaurant,” said Dodge, who founded Brookwood in 2006. “Merging the restaurant and hospitality advisory portion of my business with the talented team at MSC, and specifically with Michael, who I consider a friend and a mentor, means that our

clients will have unmatched access to MSC’s proprietary market information. In an extremely competitive and ever-evolving market, I can ensure our clients’ ability to secure premier opportunities Michael Salove for their ventures.” Over the past five years, Brookwood has fostered relationships with individuals in every aspect of the restaurant and hospitality world. From investors, to construction and design professionals, celebrity chefs and gifted management personnel, Brookwood has created an unmatched network of talent. These relationships, combined with MSC’s established market presence, now afford clients full-service advisory and brokerage services from concept inception through opening and beyond. “We’re thrilled to work with Greg on this exciting new venture,” said Michael Salove, whose MSC was founded in 1989 and today is recognized as the preeminent retail real estate advisory and brokerage firm in Pennsylvania, New Jersey and Delaware. “With his experience and connections in the hospitality industry and our unmatched relationships in the real estate community, MSC-Brookwood is now the top choice for any professional interested in navigating the challenging waters of the restaurant and hospitality world.” Dodge’s advisory services

are further strengthened by his personal experience as a managing partner at Philadelphia’s critically acclaimed Zavino restaurant. Prior to opening Zavino and founding Brookwood, Dodge served as a general manager for Starr Restaurant Organization in Philadelphia, both at Washington Square and, earlier, at Pod restaurant. His career has also included roles in food and beverage across the United States, including in New York City with Larry Forgione’s American Restaurant Group; B.R. Guest restaurants, the Atlantic Grill and Blue Water Grill; and the Metropolitan Museum of Art’s Trustee’s Dining Room, a private dining and event space; Wolfgang Puck in Los Angeles; and in Washington, DC with the Kennedy Center for the Performing Arts. A graduate of the University of Denver, where he earned a BS/BA in Hospitality Management, Dodge apprenticed with some of the best-known hotels and restaurants in New York, including Waldorf- Astoria, Maxim’s du Paris and The Rainbow Room. He spent time after his graduation in the south of France for a stageship at Le Fue Follet in Mougins, and today, that international experience gives depth to his work, as does his impressive resume. Founded in 1989 and based in Center City, Philadelphia, MSC is regarded as the leading retail real estate advisory & brokerage firm serving all of Pennsylvania, New Jersey and Delaware. ■

Into brokerage advisor positions

ROCK Comm’l. promotes Bode & Finkelstein YORK, PA — Benjamin M. Bode and Greg A. Finkelstein, CPA were promoted into brokerage advisor positions with ROCK Commercial Real Estate, LLC. Growing ROCK’s sales team from 12 to 14 brokerage ad- Benjamin Bode visors in total. Bode joined ROCK in 2006 supporting the executive assistants and all brokerage advisors. In 2008 he began working with corporate clients, being responsible for maintaining business relationships and assisting in both sales and leasing. He will be specializing in office sales and leasing. Bode is a member of Chamber, an initiative of The York County Chamber of Commerce. Finkelstein joined ROCK in

2010 assisting brokerage advisors in sale and lease transactions. He will specialize in industrial and retail sales and leasing. Finkelsteinis a licensed CPA and earned a Bachelor degree in BusiGreg Finkelstein ness Administration from The University of Texas. He sits on the board of the York Jewish Community Center and is a member of both the Finance Committee and the Building and Grounds Committee. ROCK believes in a TEAM approach, acknowledging that a group effort accomplishes more than a single individual. Congratulations to Ben and Greg, our newest brokerage advisors! ■

Madison Commercial RE Services’ blog wins Outstanding Achievement Award LAKEWOOD, NJ — Madison Commercial Real Estate Services, an umbrella organization offering financial, tax and transactional services to the real estate industry nationwide, was recently awarded an Outstanding Achievement Award in The Interactive Media Awards’ (IMA) 2011 competition in the category of Blogs. Titled “The Trusted Advisor” MCRES’ blog showcases a rotating roster of the company’s top specialists, each of whom addresses critical issues in their areas of expertise. The company’s blog posts are informative and timely, with frequent updates and hyperlinks that lead readers to relevant content on other company pages. Highlighting MCRES’

expertise, the blog serves as a source of essential industry information and confirms the company’s standing as the trusted advisor on commercial real estate-related matters. “The Outstanding Achievement award is an extremely challenging award to win,” said Aaron Warner of the IMA. “There were over 60 entries for blogs and only 5 were recognized for awards. MCRES’ blog excelled in all areas of our judging criteria and represents a very high standard of planning, execution and overall professionalism.” The Interactive Media Awards recognize the highest standards of excellence in website design and development. ■

Resinski, RPA joins Colliers as senior vice president —management srvcs. PHILADELPHIA, PA — Colliers International in Philadelphia, a leading commercial real estate services provider in the U.S., announced that Stephen G. Resinski, RPA has joined the company as senior vice president – Management Services. In this role, he will be responsible for the overall leadership, strategic focus and profitability of the property management services division in Eastern Pennsylvania, Southern New Jersey

and Delaware. Resinski will be based in the Philadelphia Center City headquarters office. Resinski comes to Colliers from Grubb & Ellis where he acquired more than 17 years of commercial real estate experience, beginning as a building engineer and quickly progressing up the ranks to senior levels in property management. Most recently, he was vice president/director of management services, overseeing the management of more than seven million s/f of commercial real estate. ■

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Mid Atlantic Real Estate Journal — Shopping Centers — September 23 - October 13, 2011 — 25B

SHOPPING CENTERS NEXT GENERATION Philadelphia www.icsc.org/nextgen PA/NJ/DE Next Generation

Technology Options For Retail Real Estate

t this year’s 2011 PA/ NJ/DE Idea Exchange, Next Generation will explore how the retail real estate industry is evolving as a result o f t o d a y ’s technological advanceLiza Rice ments. Today, retailers are taking a more sophisticated approach to site section. For decades demographics defined a retailer’s target market. However demographics can be misleading and only offer basic information. Now with social networks, search engines, and analytics it is significantly easier to define one’s target customer and more importantly, where they are located. This information is being obtained through psychographics, an in-depth approach to profiling people through social, behavioral and lifecycle data.

Retailers are leveraging the trails we leave as consumers, whether it be through our grocery rewards card, online payments, or clicks online to determine the most optimal site for one’s business. Psychographics are an influential tool that offers irreplaceable insight into consumer spending habits. Retailers can better understand who their customers are, where they shop, what they are eating, reading and buying. Like demographics, this information can be obtained through radius and drive time studies. In addition, retailers can analyze existing markets, where their competition is and strategically locate within the market to out-position the competition. But retailers aren’t the only one benefiting from the in-depth information; developers are using psychographics to better understand their assets. Developers can determine which business’s yield

the highest success rate, devise target retailer lists, warrant the worthiness of tenant improvement dollars and develop a solid sales pitch backed by concrete data, all of which mitigates his or her risk and leads to better decision making. Municipalities and Government agencies are jumping on board as well. Psychographics are used to validate government subsidies, devise redevelopment plans and determine the highest and best use for community redevelopment zones. Another technological advancement that is influencing the way we conduct business is Apple’s IPad. Instead of handing out property brochure’s at ICSC conventions, retailers and developers are zooming in on aerials, getting a feel for a shopping center from Google’s street view, and quickly analyzing market saturation and surrounding competition. All facets of the retail real

estate industry are capitalizing on the new ways of doing business today. At this year’s Idea Exchange we discuss which programs are being used, how they can supplement your business and the most affective way to achieve optimal results. Please join us as we discuss the above on Wednesday, October 12th at 4:30 pm at the Philadelphia Convention Center. Liza Rice is the director of operations for WRDC. WRDC and its related companies comprise of shopping centers, office buildings, hotels and apartment complexes in Pennsylvania, New Jersey, New York, Missouri and Florida. Rice is a graduate of Shippensburg University and holds the co chair position for the PA/NJ/DE Next Generation Committee. She’s responsible for WRDC’s leasing endeavors and redevelopment efforts for the company’s retail portfolio. ■

THE PA/NJ/DE ICSC NEXT GENERATION COMMITTEE UPCOMING EVENTS: ICSC Pennsylvania/New Jersey/Delaware Idea Exchange October 11th – 13th Pennsylvania Convention Center ~ Philadelphia, PA General Session in Conjunction with Next Generation – October 12th 4:30-5:30 Moderators Liza A. Rice, WRDC and Matt C. Ryan, Legend Properties www.icsc.org/nextgen

Next Generation Philadelphia State Chair Jordan Claffey Centro Properties Committee Co-chairs Matt Ryan Legend Properties Liza Rice WRDC Planning Committee Rosa Rubler Next Gen Event Planner Lauren Bowman Cedar Shopping Centers Julie Tanpitukpongse Fameco Andrew Levin Next Gen Event Planner Paige Barrow Fameco Jordan Muchnick Marcus & Millichap Doug Green Michael Salove Company Harris Dainoff Fox Rothchild Jason Bock Michael Salove Company Brian Proska Traffic Planning & Design Matt Gorman Marcus & Millichap Tom Gorman Marcus & Millichap Jack Reilly Legend Properties Monica Jindia Commonwealth Land & Title Insurance Co. Drew Inselman Burlington Coat Factory Morgan Hill Retail Sites LLC Jessica Taylor Villanova University Jennifer Danquist Marco Contractors, Inc. Marissa Visconsi Fameco Rhett N. Chiliberti Bohler Engineering Cornelius Brown Bohler Engineering Tawney Finch Federal Realty Haley Samsi Center City District

26B — September 23 - October 13, 2011 — Shopping Centers — Mid

Michael Kercheval President & CEO ICSC

David Henry ICSC Chairman

Northern NJ State Directors PA/DE/S.NJ: State Director John-david W. Franklin Steven Gartner MadisonH.Marquette Metro Commercial Real DC/MD/N.VA: Estate Larry M. Spott, CDP The Rappaport Companies Government Relations Committee Chair S.VA: Michael A. F. Mozzachio Susan Jones GrubbDevelopment & Ellis Chancellor Group Government Relations Committee Chair Alliance Co-Chair PA/DE/S.NJ: Edward A. Shriver, Jr. Ed Kochman Strada Kochman Consulting Services Operations Co-Chair DC/MD/N.VA: Lynda E. Benedetto, Thomas C. Barbuti Whiteford, Taylor and SCSM Preston LLPCo. Kravco Simon S.VA: Roger Rodriguez RetailR.Co-Chair Timmons Group Roy T. Perez-Daple

Atlantic Real Estate Journal

Member of International Council of Shopping Centers John-david Franklin Adam Ifshin Director, Eastern Division www.icsc.org PA/DE/S.NJ

VP & Trustee

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Larry M. Spott Director, DC/MD/N.VA

John-david W. Franklin, SCLS On October 11 - 13, 2011

ICSC PA/DE/Southern NJ holds Idea Exchange & Deal Making

t’s Fall and time again for the annual ICSC PA/ DE/Southern New Jersey Idea Exchange and Deal Making! We are holding the event on October 11–13, 2011 at the Philadelphia Conven- John-david tion Center. W. Franklin Program Co-Chairs are Jordan Claffey, Regional VP for Centro Properties and our regional NextGen Chairperson and G. Sean Sablosky who also serves as our regional Operations Chair. Tuesday, October 11, 2011 starts off with an exciting day of sports! Our first annual Sporting Clay Tournament and “Shoot Out” promises to be a great time of fellowship and “shot-gunning!” Also on the schedule for Tuesday is the MemberHosted Golf Outing at Green Valley Country Club. Please see our program for details.

Wednesday’s show and program is one of the most impressive of all the regional ICSC shows. Our annual Walking Tour of Center City will be led by Steven H. Gartner, Timothy Duffy, and Haley Samsi of the Center City District. Also, Monica Jindia of Commonwealth Land Title Insurance Company will lead a session on Social Media and Technology. Our luncheon session will include comments from me, Jordan, and Sean as well as Ed Kochman, our regional Government Relations Chair. Keynote speaker will be Fran Dunphy, Head Coach of Men’s Basketball at Temple University. He is a great speaker, coach, and inspiration both on and off the court. Sessions include Scott Dare’s program on Stormwater Runoff Fees, SIGs on Public Sector (Co-Chaired by regional Alliance Private Sector head Russell Jenkins of Zamias and Mayor Ed Pawlowski of Allentown, regional Alliance Public Sector.), Leasing,

chaired by Adam Rosenzweig of The Goldenberg Group, Retailers, chaired by Michael J Maier, of IKEA, and regional Retail Chair, and Operations, chaired by Brooke Henningsen of Stonehenge Advisors. The Concurrent Sessions include: Capital Markets (Thomas Gorman, Marcus and Millichap, and Jeffrey Hoffman, Eastern Division Operations Chair, JPH Realty Advisors), Crunch time for Solar (Adam Putter, Solar Roof Development), Retailers-Ready, Set, Grow!!! (David DePetris, Legend Properties). General Sessions include the always popular Retail Speed Dating (Roy Perez-Daple, Metro Commercial, and Brooke Henningsen). This session was a great hit last year and I’m sure you will enjoy the camaraderie and excitement of this fast paced table hopping experience. The General Session in Conjunction with Next Generation will be chaired by Liza A. Rice of WRDC and Matt Ryan of Legend Properties.

Lowe’s Companies Alliance Co-Chair PA/DE/S.NJ: Next Generation Chair Russel Jenkins Eric S. PenneyInc. Zamias Services CentroDC/MD/N.VA: Properties Group Patricia Palumbo Klein Enterprises Idea S.VA: Exchange Matthew L. Lafler Program Planning ComCommercial Real mittee Co-Chair Estate Services Timothy Rubin Next Generation Chair PREIT PA/DE/SNJ: Jordan Claffey Idea Exchange Centro Properties Group Program Planning ComSNJ: LindseyCo-Chair C. Floyd mittee Thalhimer Brandon Famous DC/MD/N.VA: Fameco Jarett L. Parker Kimco Corporation

Susan Jones Director, S.VA

ICSC Philadelphia/ New Jersey/ Delaware

Pennsylvania Convention Center Philadelphia, PA October 11-13, 2011

Wednesday will conclude with a Member-Hosted Reception. Thursday is all about DealMaking. What will this year bring? I would like to encourage all students, and to all members with university and college students, to bring them to the event this year. We strongly believe that mentoring begins on this level and the sooner we introduce our NextGen candidates to ICSC the better our future. I would be remiss if I did not thank the tireless and hard working group of ICSC real estate professionals who are part of our regional Program Committee. As fortunate as I am to be the State Director and honored to serve with this team, our professional organization in the region and tri state area is a much better industry because it is served by the time, talent, and energy of these remarkable and talented industry leaders. My deepest appreciation to them and their companies for their impressive efforts and participation. ■

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Mid Atlantic Real Estate Journal — Shopping Centers — September 23 - October 13, 2011 — 27B

SHOPPING CENTERS Coldwell Banker Commercial Bennett Williams

Firm Brokers 35,528 s/f of leases in PA

Lease marks old town’s transition

Douglas Developement acquires 10,500 s/f

ORK, PA — Coldwell Banker Commercial Bennett Williams — one of the largest third-party, commercial real estate firms in Central Pennsylvania—has arranged the sale/lease of the following transactions: Leases: 8,185 s/f of retail space at 1140 South State Street in Ephrata. Napa Auto Parts leased the space for 10 years from Musselman Lumber Associates, LP.Jeremiah Hamilton of Bennett Williams represented the tenant in the transaction. 2,500 s/f of retail space at 108 North Reading Road in Ephrata. Independence Corporation dba Eyeland Optical leased the space for 5 years from Cloister Associates, LP. Tom Troccoli of Bennett Williams represented the tenant, and Chad Stine, Bradley Rohrbaugh, and Jeremiah Hamilton, also of Bennett Williams, represented the landlord in the transaction. 3,600 s/f of retail space at Supercenter Plaza at 25 Plaza Drive, Suite 103C in Lewistown. Car Quest Auto Parts, LLC leased the space for 5 years from One Oak Grove Holdings, LLC. Chad Stine, Brad Rohrbaugh, and Beau Brown of Bennett Williams represented the both the landlord and the tenant in the transaction. 5,651 s/f of retail space at Nittany Mall at 2901 East College Ave., Suite 572 in State College. United States of America Armed Forces leased the space for 5 years from PR Financing Limited Partnership. Chad Stine and Brad Rohrbaugh of Bennett Williams represented the tenant in the transaction. 2,800 s/f of retail space at Constitution Plaza at 618 Constitution Avenue in Shrewsbury. Snyder’s Vacuum and Sewing Inc. leased the space for 5 years from 6-18 Constitution Ave., LLC. Dave Schad of Bennett Williams represented the tenant in the By Buck Collins New Storm Water . . . continued from page 15B including green roofs, rain gardens, re-use for irrigation, fire suppression and toilets and custodial uses for new projects or upgrading existing sites. The first step is to determine your goals and budget.

Supercenter Plaza, 25 Plaza Dr. 910-912 King St.

Kingston Square, 2594 Eastern Blvd. transaction, and Chad Stine, Bradley Rohrbaugh, and Jeremiah Hamilton, also of Bennett Williams, represented the landlord in the transaction. 3,468 s/f of retail space at Kingston Square at 2594 Eastern Blvd. in York. New Vision Books and Gifts leased the space for 5 years from Kingston Fixed Income Fund, LP. Chad Stine and Brad Rohrbaugh of Bennett Williams represented the landlord in the transaction. 1,363 s/f of retail space at 3200 Trindle Rd. in Camp Hill. Global Solutions, LLC dba The Cellular Connection leased the space for 62 months from Talpier Associates. Chad Stine and Brad Rohrbaugh of Bennett Williams represented the landlord, and Jeremiah Hamilton, also of Bennett Williams, represented the tenant in the transaction. 820 s/f of office space at 4940 Ritter Rd., Suite 106 in

Mechanicsburg. The United States of America Armed Forces leased the space for 5 years from High Properties. Chad Stine and Brad Rohrbaugh of Bennett Williams represented the tenant in the transaction. 1,465 s/f of retail space at State Street Plaza at 829 State Street in Lemoyne. J.M. Correale Enterprises, LP- Plum Bottom Shoes leased the space for 1 year from State Street Plaza Associates. Chad Stine, Brad Rohrbaugh, and Adam Hagerman of Bennett Williams represented both the landlord and the tenant in the transaction. 5,676 s/f of retail space at 5210 Simpson Ferry Rd. in Mechanicsburg. The United States of America Armed Forces leased the space for 5 years from Windsor Park Shopping Centers, LLP. Chad Stine and Brad Rohrbaugh of Bennett Williams represented the tenant in the transaction. ■

Many options have a modest cost that can be recovered quickly. Others carry a higher cost and would be looked at as a long term investment solution. Buck Collins is the Director of Client Services for

Bohler Engineering. Bohler provides Civil, Environmental & Geotechnical Engineering, Surveying and Project Management Services from 13 offices covering the East Coast from New England to Florida. ■

ALEXANDRIA, VA — Douglas Development announced upscale retailer Anthropologie has signed a lease for 10,500 s/ f in the newly-acquired Douglas Development property at 910-912 King St. Anthropologie will move into the former Hallmark store by the end of this year. The popular clothing and home-furnishings store is no stranger to Douglas Development. This signing marks the second deal between the two in less than a year. In October 2010, Jemal leased 10,662 s/f to the retailer at its 950 F St., NW property in Downtown DC, which is slated to open this September. Douglas Development Principal Norman Jemal is confident that Anthropologie will add immediate value to the retail and residential community of Old Town.“We’ve had a presence on that block [910-912

King Street] for about 15 years,” he said. “We’re pleased to bring Anthropologie to the neighborhood; its demographic certainly fits what Old Town has to offer, and we couldn’t be more excited to broaden our presence in the community.” The recently acquired King Street property is one of nine properties that Douglas Development owns in Old Town, totaling over 60,000 s/f of retail space. Current retail tenants include BGR: The Burger Joint, Cosi, Urban Angler, Circe Salon & Day Spa, and now, Anthropologie. Douglas Development’s commitment to improving neighborhoods in the Washington, DC region is unparalleled. Currently the largest private property owner in the area, Douglas Development attracts the most sought after tenants, including luxury retailers and upscale restaurants.

Walters Group welcomes first restaurant to Mixed-use redevelopment STAFFORD TOWNSHIP, NJ — Stafford Park’s newest addition, Olive Garden, opened its doors to the public, making it the first restaurant to join the variety of successful retailers at the large-scale mixed-use redevelopment in southern Ocean County. The 7,600 s/f casual dining eatery was built on a pad site within the retail portion of the complex. The new “green” building features a number of sustainable design elements including recycled building materials and energy-efficient equipment and fixtures. As a result, the building has been awarded certification for Leadership in Energy and Environmental Design by the U.S. Green Building Council. “Stafford Park is an ideal

location in this market for Olive Garden. It’s become an attractive destination for both retailers and local shoppers,” said Ed Walters, Jr., founder and partner of Walters Group. Stafford Park is a LEEDcertified redevelopment with the majority of corporate tenants attaining LEED-Silver certification. Currently, the roster of retailers reaping the savings of green building include Best Buy, Costco, Dick’s Sporting Goods, PetSmart, Target, AT&T and Ulta. The Vitamin Shoppe reached LEED-Gold certification. In addition, atop the Best Buy, PetSmart and Dick’s Sporting Goods there are solar arrays that provide 30 percent of the electrical needs of the stores. ■

28B — September 23 - October 13, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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RETAIL BROKERAGE DIRECTORY ARC Properties, Inc. 1401 Broad Street• Clifton, NJ 07013 Michael R. Ambrosi Leasing and Marketing P: 973-249-1000 x 116 mambrosi@arcproperties.com Steven Maloy S.V.P. Investments P: 973-249-1000 x 114 stevem@arcproperties.com

Azarian Realty Co. The Azarian Building • 6 Prospect St. Suite 1B • Midland Park, NJ 07432 F: 201-444-9888 F: 201-444-6655 www.azariangroup.com info@azariangroup.com John M. Azarian • Donna M. Azarian • Kevin Pelio Nicole Critelli • Matt Scozzari

Calkain Companies, Inc. 11150 Sunset Hills Rd. • Suite 300 Reston, VA 20190 P: 703-787-.4714 F: 703-787-4783 Jeff Bogart • Gerald E. Burg • Jonathan W. Hipp Andrew M. Fallon • W. Douglas Wright Rick Fernandez 4600 West Cypress St. • Suite 110 Tampa, FL 33607 P: 813-282-6000 F: 813.282-6098 David Sobelman • Teal M. Henderson Guenter Manczur, CCIM • Patrick R. Nutt 1521 Concord Pike (US 202) • Suite 301 Wilmington, DE 19803 P: 302-235-3017 F.: 775-667-2874 Bob Browning • Andrew M. Fallon Calkain Asset Management 200 Wheeler Rd. • 2nd Floor • Burlington, MA 01803 P: 781-694-0410 F: 781-694-0415 Richard T. Murphy Calkain Realty Advisors 11150 Sunset Hills Rd. • Suite 300 • Reston, VA 20190 P: 703-787-4714 F: 703-787-4783 Betty Learned Friant • Brian O’Hear

Capital Retail Group 1401 14th St. NW • 3rd Floor • Washington, DC 20005 P: 202-319-2884 www.capitalretailgroup.com Robert E. Tack • Michelle Tack Capital Retail Group is founded on the belief in doing a few things very well. It’s straight forward. We know commercial real estate leasing, sales and property management. We know our business.

Coldwell Banker Commercial Bennett Williams Inc. 110 N. George Street • 4th Floor York, PA 17401 P: 717-843-5555 F: 717-843-5550 info@bennettwilliams.com Robert Behler Jr. • Bobby Traynham Dennis Neiman • Chad Stine Chris Seitz • Bradley Rohrbaugh • David Schad

Coldwell Banker Commercial Pennco Real Estate 1250 North 9th Street • Stroudsburg, PA 18360 P: 570-476-7711 F: 570-476-6130 email: retail@cbcpennco.com www.cbcpennco.com Spiros Bilianis, CCIM • James Fondi Teresa Mickens, CCIM • Susan Mikels Northeast Pennsylvania Experts

Colliers International – Philadelphia, PA (HQ) 399 Market St. Ste. 350 Philadelphia, PA 19106 P: 215-925-4600 F: 215-925-1040 www.colliers.com/philadelphia Michael Barmash • Despina Belsemes David Dunkelman • Michael Kahan Todd Sussman Colliers International – Conshohocken, PA 161 Washington St., Ste. 825 Conshohocken, PA 19428 P: 610-684-1850 F: 610-684-1857 Damon DiPlacido Colliers International – Allentown, PA 7535 Windsor Dr., Ste. 208 Allentown, PA 18195 P: 610-770-3600 F: 610-770-3100 Derek Zerfass Colliers International – Harrisburg, PA 300 N. Second St., Ste. 1203 Harrisburg, PA 17101 P: 717-730-3752 F: 717-238-3299 William Aiello • George Lulos Colliers International – Mount Laurel, NJ 1317 Route 73, Ste. 109 Mt. Laurel, NJ 08054 P: 856-234-9300 F: 856-222-1115 David Dunkelman Colliers International – Wilmington, DE 300 Delaware Ave., Ste. 1018 Wilmington, DE 19801 P: 302-425-4000 F: 302-425-4700 Mark Undorf

Dietrick Group, LLC 5100 W. Tilghman St. • Suite 320 • Allentown, PA 18104 P: 610-391-8888 F: 610-391-8830 www.dietrickgroup.com Kelly L. Berfield kberfield@dietrickgroup.com Ryan C. Dietrick rdietrick@dietrickgroup.com Lucy H. Lennon llennon@dietrickgrouip.com Alfred G. Vasta, Jr avasta@dietrickgroup.com Real Estate Sales, Appraisal & Property Management

Equity Retail Brokers 101 West Elm St. • Ste. 370 • Conshohocken, PA 19428 P: 610-645-7700 F: 610-645-5454 info@equityretailbrokers.com Stuart Conston • Lee Cooper • Bart Delfiner Ed Ginn • Kathy Haines • Conrad Heckmann Ken McEvoy • Rob Samtmann • Rose Urban Brian Wherty • Rich Zeller • Gregory Jones Chris Lee • David Goodman

Fameco - Woodbridge, NJ Woodbridge Towers • 555 U. S. Hwy 1 Iselin, NJ 08830 P: 732-526-9000 F: 732-526-9101 www.famecoretail.com Tyler Bennett • Carlo Caparruva Mike Horne Scott Jennerich • Dan Spector Steven Winters Fameco - Philadelphia, PA 1425 Walnut Street, Suite 200 Philadelphia, PA 19102 P: 215.557.0050 F: 215.557-0053 www.famecoretail.com Jackie Balin • Paige Barrow Michael Gray • Eva Redette Fameco - Plymouth Meeting, PA 633 West Germantown Pike • Suite 200 Plymouth Meeting, PA 19462 P: 610-834-8000 F: 610-834-1793 www.famecoretail.com Cathy Agnew • Brian Bruzek • Jeff Cohen Jim Creed • Scott Dennis • Brandon Famous John Fasciano • Dana Hawkins Jerry Johnson • Jon Kieserman Adam Kohler • John Krause • Jon Kushner Gary Leone • Marc Mandel • Matt Mandel Jay Miller • Steve O’Malley • David Orkin Dale Peterson • Rick Schuch Julie Tanpitukpongse • Dave Vitali Rick Weinberg • Marissa Visconsi Fred Younkin

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Mid Atlantic Real Estate Journal — Shopping Centers — September 23 - October 13, 2011 — 29B

RETAIL BROKERAGE DIRECTORY Kay Realty Services, LLC 1989 Jumping Brook Rd. Tinton Falls, NJ 07753 P:732-918-1148 F:732-918-1628 www.kayrealtyholdings.com William Klein, Broker • Developer Property Management • Leasing

KW Commercial-The James Balliet Commercial Group 40 S. Cedar Crest Blvd. Allentown, PA 18104 P:610-435-4711 Levin Management F:610-435-2800 www.lehighvalleycommercial.com P. O. Box 326 • Plainfield, NJ 07061 P:James 800-755-7194 F: 908-755-7194 Balliet, Robert Thompson, Melanie Stocker www.levinmgt.com Dr. Rex D’Agostino, Cheyenne Reiman Dale Mulartrick Jake Frantzman • Barry Greenberg Pete•Ambrosino, Heather Lynne Pina Hoel • Stan Bernstein • Dennis Larrison Christopher Milotich

Michael J. Fasano Marcus & Millichap 611 River Dr. • 4th Floor • Elmwood Park, NJ 07407 P: 201-582-1000 F: 201-582-1010 www.marcusmillichap.com

NAI Keystone Commercial & Industrial, LLC Exeter Ridge Corporate Center • 3970 Perkiomen Ave. • Ste. 200• Reading, PA 19606 P: 610-779-1400 F: 610-779-1985 John Buccinno • Bryan Cole • Steve Willems

Urszula Zoltek,Seth Pollack, David E. Thurston, Michael Lombardi, Brian Schifilliti, Greg Babaian

Spencer Yablon Vice President and Regional Manager 101 West Elm Street • Suite 600 • Conshohocken, PA 19428 P: 215-531-7000 F:215-531-7010 www.marcusmilllichap.com

Remco Realty Group 525 MIlltown Rd. • Ste. 101 • North Brunswick, NJ 08902 P: 732-253-0888 F: 732-253-0887 www.remcorealty.net Peter Gallicchio, Owner/President Nicole Zeller - Christopher Virgo - Brian Heller Joseph Marino – Mark DiGiovanni

Derrick Dougherty, Matt Gorman, Tom Gorman, Andy Kaplin, Jordan Muchnick, Chris Munley, Brad Nathanson, Michael Shover, Mark Taylor, Dean Zang

Joe R. Deerin, CSM • Donna Deerin Ward 120 North Pointe Blvd., Suite 301, Lancaster, PA 17601 P: 717-569-9373 T: 800-864-2633 www.LMS-PMA.com Dave Nicholson, Blaze Cambruzzi, Michael Boden, SCSM, Chad Ward, Blake Gross, Joe Spagnola, CCIM Ted Hummel, CCIM, e-pro, Wilay Boensch

David S. Feldman Regional Manager – Washington DC Office Special Assets Services – Regional Director 7200 Wisconsin Ave. • Ste. 1101 • Bethesda, MD 20814 P: 202-536-3700 F: 202-536-3710 www.marcusmillichap.com Danny Brooker, Josh Feldman, Brandon Jenkins, Kirk Knight, Ed Laycox, Nathan Pealer, Rudolph Rueda, Peter Snell

Metro Commercial – Mt. Laurel, NJ 303 Fellowship Rd • Suite 202 • Mt. Laurel, NJ 08054 P: 856-866-1900 F: 856-866-1611 Brandon Anapol • Brent Barbehenn • Dan Brickner Rob Cooper • Mark Gerlach • Perry GraBois Tom Londres • Lauren McDermott • Pete Nicholson Kurt Rumley • Paul Rumley • George Wisnoski Metro Commercial - Conshohocken, PA Eight Tower Bridge • 161 Washington St. • Suite 375 Conshohocken, PA 19428 P: 610-825-5222 F: 610-825-5156 Phil Azarik • Joe Dougherty • Donna Drew • Steve Gartner • Brian Goodwin • Randy Hope Glenn Marvin • Mike Murray • Steve Niggeman Roy Perez-Daple • Aaron Repucci Metro Commercial - Center City 123 S. Broad St. • Suite 1835 Philadelphia, PA 19109 Michael Gorman • Steve Gartner

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R. J. Brunelli & Co. 400 Perrine Rd. • Suite 405 • Old Bridge • NJ 08857 P: 732-721-5800 F: 732-721-9241 www.njretailrealty.com Richard J. Brunelli • William A. Lenaz Carl J. Minue • Martin Yaged • John Lenaz Ron DeLuca • Edward Abaid Danielle Brunelli-Albrecht • Michael Murphy Assunta Spedaliere

Rock Commercial Real Estate LLC 221 W. Philadelphia • St. Suite 19 • York, PA 17401 www.rockrealestate.net Ryan Myers, CCIM, • Larry O’Brien, CCIM Benjamin Chiaro, CCIM • Cami Spiridonoff, CPM David Bode, CCIM, SIOR • Dave Keech, CCIM, SIOR Jason Turnbull, CCIM • Kevin Hodge, CCIM Michael Katz, CCIM • Russ Bardolf, CCIM Ted Turnbull, CCIM

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30B — September 23 - October 13, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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SHOPPING CENTERS Equity Retail Brokers represents

1 acre +/- & 2,400 sf lease transactions in NJ & PA

HESTER COUNTY, PA — Brian Wherty of Equity Retail Brokers is pleased to announce that PNC Bank has opened a new branch on a 1± acre pad site at 355 Pottstown Pike in Exton, Chester County. Brian represented PNC in the lease transaction and Ed Ginn, also of Equity Retail Brokers, represented the Landlord. “The transaction went smoothly due to a professional owner that was involved with the day-to-day details of the redevelopment of the site,” said Ed Ginn. With roots in commercial banking that date back to the 1800s, PNC has grown to be one of the leading financial services organizations in the country. PNC offers a wide range of services for all of their customers, from individuals and small businesses, to corporations and government entities. No matter how simple or complicated your needs, PNC is sure to have the products, knowledge and resources necessary for financial success. Also, Rose Urban of Equity Retail Brokers was pleased to represent the Landlord, Broadway Square, LLC, in a lease transaction at Broadway Square, 120 S. White Horse Pike in Hammonton, Atlantic County, NJ. Primo Hoagies leased approximately 2,400 s/f of endcap space previously occupied by Hammonton Bagel. Primo signed a five year lease and will construct a new prototypical Primo Hoagies. They plan to open their new location in September, 2011. When Primo Hoagies opened their original location at 1528 Ritner Street in South Philadelphia, their objective was to establish a family-operated corner deli that made a good hoagie. The rapid growth that ensued of this mom-and-

355 Pottstown Pike

FMS awarded 2 assignments totaling 88,000 s/f PLYMOUTH MEETING, PA.— Fameco Real Estate, L.P., the region’s foremost full service retail real estate firm is announced that its property management division, Fameco Management Services (“FMS”), has been awarded two new assignments from Titanium Real Estate Advisors totaling 88,000 s/f. The two properties are located in New Jersey and New York. Designers Court is a 78,000 s/f shopping center located in Marlton, NJ anchored by Atlas Interior Home Fashions, Kroungold’s Furniture, Mixellaneous, ABC Discount Appliances and Toppers Salon and Health Spa. FMS’ Kathy Blessing will serve as the property manager. Fameco Senior

Director Rick Weinberg and Partner Jay Miller serve as the leasing agents for the property. 2137 Utica Avenue is a 10,000 s/f single tenanted property occupied by a union pension fund. The property will be managed by FMS’ Gordon Frank as part of FMS’ NY/Long Island portfolio. According to Lawrence Zipf, Fameco Management Services President, Titanium chose FMS due to its reputation, significant market presence and synergy of working closely with the Fameco leasing team. FMS has continued its growth trend. For the past six years the group has been named to Chain Store Age’s list of fastest growing third party management companies nationally. ■

JCR Companies helps tenant re-brand

120 S. White Horse Pike

pop deli exceeded their most optimistic expectations. The success of Primo is attributed to an excellent, long-tenured staff that regularly serves up a combination of quality, consistency, and originality. Their large and diverse menu features dozens of specialty hoagies, most of which are their very own original creations. Primo Hoagies are always made fresh to order, using only the finest Thumanns gourmet quality meats and cheeses. The popularity and excellence

of Primo Hoagies has been affirmed by numerous recognitions, which include the Channel 10 News Big Spoon Award, Philadelphia Magazine’s Best of Philly Award, multiple South Philly Review Reader’s Choice Awards, and multiple Courier Post Readers Choice Best of South Jersey. Still available for lease in the center is an up to 20,000 s/f small retail strip. Rose is working with the Landlord to procure tenants for this space. ■

the investment. In addition, if being used, financing must be weighed in. Cash flows and returns are the essence of real estate investment. While understanding real estate value from both recent comparable transactions and cost of replacement are important and have their place, the discernment of what an investment property is worth in relation to the oper-

ating income it generates is fundamental. Even more so if you can build a cap rate that suits the specific property and investor. Some of the wisest professionals I work alongside often answer my questions with, “It depends.” John Birkeland specializes in retail leasing and sales, investment properties, and corporate services at ROCK Commercial. ■

By John Birkeland What is a cap . . . continued from page 6B easy. That risk needed to be reflected in the cap rate for this investment. Some influences can lower a cap rate. Anticipated appreciation or revenue growth can move an investor to shave basis points off a cap rate. Ultimately, the return needs to be commensurate with the risk. These examples are not comprehensive - there are certainly other risks to consider depending on

Fameco Management

WASHINGTON, DC — Artfully Chocolate Bistro, a destination lounge and casual eating establishment has expanded its offerings and reoriented its business to take advantage of the energy and nightlife in the city’s popular 14th Street neighborhood. Artfully Chocolate’s transformation has benefited from the full support of the building’s landlord, The JCR Companies of Washington, DC. “ACKC Cocoa Bar opened in 2007 as the city’s first cocoa bar and preeminent chocolate

shop,” said Joe Reger, JCR Companies’ managing partner. “Not long ago, the owners decided to go beyond chocolate, opening a wine bar, serving a unique Sunday brunch, and launching an entertainment venue with singers, comics, and more. With all of this, the owners re-branded and became Artfully Chocolate Bistro.” Reger added, Artfully Chocolate Bistro has begun offering exotic ice cream creations infused with the same herbs and spices as their crowd-pleasing Diva hot chocolate drinks. ■

By Dean S. Zang, Jr., Retail investors turning . . . continued from page 2B anchored by non-investment grade grocers like Acme, Weiss, and Redner’s, as well as chains not perceived as good operators, like Safeway. Store sales are a critical component of the underwriting of any grocery-anchored asset. In the Northeast and Mid-Atlantic, Wegmans and Giant top the food chain, and generally drive sales down at nearby competition, thereby decreasing that center’s value. On the single tenant side of the marketplace, Rite Aid has generated much buzz lately and most would consider them a “B or C” quality single tenant credit today. The market has been buzzing with rumors of a Walmart deal (which in fact this very rumor has been tossed about for at least 5 years that I can recall). Today, Rite Aid credit is starting to come back into favor. Buyers are actively offering on newer and older stores. The fundamentals of each location are carefully scru-

tinized. Cap rates range from the low 8%t range to over 10%. Interestingly enough, while cap rates on CVS and Walgreens deals have compressed nearly 100 bps from a year ago, Rite Aid cap rates have only moved minimally. A similar dynamic has also been observed on other “B” and “C” quality net lease credits. We believe that the lag on improvement of pricing on “B” and “C” assets will likely continue. While investors are more risk tolerant and certainly yield starved, the lessons of the last few years are fresh in their minds (as are the vacancies in some of their properties). While interest rates may support lower leveraged yields on “B” and “C” product, we continue to hear the saying “I want to sleep at night”. The buying “A” quality product is still on top of many investors lists. Dean S. Zang, Jr. is vice president investments at Marcus & Millichap. ■

31B — September 23 - October 13, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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32B — September 23 - October 13, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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SHOPPING CENTERS Commercial Real Estate

Central New Jersey’s Finest

Commercial Real Estate

Toms River • Whiting

PRIME RETAIL SPACE For Sale: TOMS RIVER, NJ Fully Leased Investment Opportunity, 9,000sf. on 1.75 acres leased to Aamco and Strauss Auto, current NOI of $128,880 with increases, asking $1,600,000, Long term triple net leases. The property is located mid-way between the Brick Mall and the Ocean County Mall, in a regional trade area, where over 38,000 vehicles pass the site daily.

For Lease: OLD BRIDGE, NJ Free standing former Checkers “dual drivethru” restaurant. Available for lease with all equipment, minimal investment turn key with 30 car parking and outside dining. Large two panel pylon sign. Serving Old Bridge, Englishtown, and Matawan trade areas. We are currently seeking the following use categories: Burgers, Chicken, Hot Dogs, Coffee, Pizza, Ice Cream, Bagels, Donuts, Chinese Restaurant, etc.

600 SF - 6,000 SF AVAILABLE START UP BUSINESS PACKAGES

TINTON FALLS, NJ

Engineer Consulting Land Lease Opportunity: OCEAN TOWNSHIP, NJ One or Two Pad Sites, 1.8 acres at signalized intersection, 1 mile south of Waretown Town Center. Serving: Ocean Twp/Barnegat/Waretown. Ideal Uses: Banks, Fast food, Day Care, Automotive, Restaurants, Fitness, Drug Store, Medical & Home Improvement

Vanasse Hangen Brustlin, Inc. Transportation | Land Development | Environmental Services

For Lease: OLD BRIDGE, NJ Cheesequake Commons is a 35,000sf CVS anchored neighborhood strip center. We currently have 2 vacancies ranging from 1,500sf to 2,500sf. Ciro Pizza Café recently leased a 4,755sf end cap, and will open in April 2011. The strip center is located ¼ mile from the Matawan Train Station, exit #120 of the Garden State Pkwy. Seeking Chicken, Burgers, optical, dental, medical, travel, electronics and gift categories.

Sale / Lease: HAZLET, NJ Free standing 15,000sf retail building on 2.57 acres. Large Two Panel Pylon sign. The building is clear span and column free. Serving: Hazlet, Keyport, Aberdeen and Holmdel. Ideal uses: Home Improvement, Fitness, Appliances, Day Care, Electronics, Party & Rentals, Golf, Liquor Store, Pools & Patio, Marine, Produce Market, Pet Supplies, office Supplies, etc.

Contact: Peter Gallicchio • pgallicchio@RemcoRealty.net REMCO REALTY GROUP, LLC 525 Milltown Road, Suite 101 North Brunswick, NJ 08902 (732) 253-0888 x 11 www.RemcoRealty.net

Cost-effective, time-saving retail development solutions. VHB has the experience, local knowledge, and resources you need to create developments that fit within the context of your community and help you open for business sooner. To learn about our integrated services, visit www.vhb.com. Contact: Michael Junghans at mwjunghans@vhb.com or 732.512.0999 David Caruso at dcaruso@vhb.com or 732.512.0999 110 Fieldcrest Avenue | Raritan Plaza I | Edison, NJ 08837 Offices throughout the east coast

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Mid Atlantic Real Estate Journal â&#x20AC;&#x201D; Shopping Centers â&#x20AC;&#x201D; September 23 - October 13, 2011 â&#x20AC;&#x201D; Inside Back Cover B

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B Back Cover — September 23 - October 13, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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M A NJPA

CONTRACTORS, OWNERS & MANAGERS ID

TLANTIC

REAL ESTATE JOURNAL

Section C of the Mid Atlantic Real Estate Journal

Hartz Residential Holdings will utilize services

Hartz Mountain Industries buys stake in Roseland Management

ECAUCUS, NJ — Hartz Mountain Industries, which began acquiring luxury multifamily rental properties in 2010, has purchased a stake in Roseland Management, the property management arm of Rose- Emanuel Stern land Property Co., and has

engaged Roseland for its largest third-party management assignment – more than 1100 units in four New Jersey properties. Roseland is expected to manage other Hartz residential buildings when construction on new buildings is complete and existing management agreements expire. Roseland and Hartz, with partner Garden State Properties, own the Monaco, a 524-unit luxury resi-

SEPTEMBER 23 - OCTOBER 13, 2011

HI-LIGHTS Stalco Construction completes 50,000 s/f conversion General contractor Stalco Construction completed the interior fit-out of the 50,000 s/f executive, administrative, and operations offices. See Page 4C

AMC Fire Protection provides fire extinguisher & fire equip. AMC Fire Protection is committed to providing superior service to our clients and the customers we serve. We are proud of our long-term relationships with our customers. See Page 8C

ALSO INSIDE: ELI S. LOEBENBERG , MADISON SPECS ................................2C BUILDING SERVICES & SUPPLIERS ..................................... 5-12C PEOPLE ON THE MOVE .........................................................14C NJAA ORGANIZATION .........................................................15C IREM ORGANIZATION ............................................... 16-IBC-C Section C, 20 pages

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dence is now more than 75% leased at record rents, spawning the partnership. “We have managed office, industrial, retail and hospitality asset classes for more than 40 years, and if there is one thing we, know, it’s the rewards that expertise brings to operating real estate,” says Emanuel Stern, president and COO of Hartz Mountain Industries. “After observing Roseland in action on Monaco, we knew that if we wanted to maximize the performance of our residential portfolio for our tenants and our bottom line, the fastest route was to affiliate with the best. ” “Roseland Management’s model is to impart the standards for Roseland Property to leading properties from esteemed owners – and Hartz Mountain’s

multi-family strategy aligns with our standards perfectly,” said Carl Goldberg, partner in Roseland Property Company. “The critical audiences in development are municipalities and lenders, and the combination of human, strategic and capital resources that this partnership brings to projects is new to the industry,” said Goldberg. Hartz currently owns more than 1600 residential units in three states, and expects to acquire and build another 3500 units in 3-5 years, depending on market conditions. Roseland owns and manages more than 8000 apartments in five states. Roseland and Hartz are in the preliminary stages of developing luxury towers on three sites. “Roseland introduced me to

the phrase “renter by choice” and that immediately formed for me a new understanding of the high-end rental market and Roseland’s strategy,” said Stern. “We had not articulated our strategy in that same vocabulary – but it fit: we want to attract tenants who have every housing option open to them, and select our properties for their superior attributes.” The initial properties Roseland is managing from the Hartz portfolio are: • Town & Country Apartments, 271 units, Westwood, NJ • Morris Crossing, 116 units, Morris Plains, NJ • Chancery Square, 131 units, Morristown, NJ • Monaco, 581 units, Jersey City, New Jersey ■

First CM-At-Risk project for the state

Nason Construction completes new Kent County Courthouse DOVER, DE — Nason Construction recently celebrated the opening of the new Kent County Courthouse in Dover. The project was the first CMAt-Risk completed by the Office of Management and Budget, Division of Facilities Management. Opening celebrations were attended by Governor Jack Markell, Chief Justice Myron Steele, Superior Court president Judge James Vaughn, Jr., Kent County Resident Judge William Witham, Jr., and the director of the Office of Management and Budget, Ann Visalli. The new, three-story, 148,600 s/f facility features seven courtrooms, including hearing rooms, and an arraignment courtroom. The facility houses the Superior Court, Court of Common Pleas, Dept. of Corrections, Capitol Police, and probation officers. Energy efficient features were incorporated into the design by Nason and the architectural team of Moeckel Carbonell/Ricci Greene Associates. Sustainable features include solar panels, a partial green-roof, water reduc-

Kent County Courthouse in Dover, DE ing bathroom fixtures, lighting tion of an underground parking controls with light harvesting garage to serve the needs of the technology, and energy efficient judicial complex. electric transformers. “The Nason team is very Unique features of the build- proud to have provided this ing include architectural mill- building to support the Delawork finishes in the court- ware Judiciary, the State, and rooms, detention and holding Kent County,” said Nason CEO cells with isolated elevators for Thomas Nason, II. “We are honprisoner transport, and high- ored to have the chance to work tech security systems including with the Office of Management closed circuit television, access and Budget, Division of Facilicontrols, and comprehensive ties Management on their first data and telecommunications CM-At-Risk project, especially systems. when it will serve so many indiWork also includes construc- viduals throughout DE.” ■

C Inside Cover — September 23 - October 13, 2011 — Contractors, Owners & Managers — Mid

Atlantic Real Estate Journal

NEVER COMPROMISE YOUR ENVIRONMENT.

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Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — September 23 - October 13, 2011 — 1C

Residential • Commercial • Industrial

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2C — September 23 - October 13, 2011 — Contractors, Owners & Managers — Mid

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MAREJ COM By Eli S. Loebenberg , Madison SPECS

Hidden in plain sight: Lease Abstracts & Cost Segregation

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MAREJ Features

EXECUTI EXECUTIVE E TIV VE WOMEN W ME E BUSINESS IN BUS USSINE E ESS Mid Atlantic Real Estate JJournall will publish pubblish our Ninth Annual Executive Women in and in Real Estate E Alllied ied Fields Fiel Fi lds Editon. Editon Deadline: September 28, 2011 P Publication: icatio October 28, 2011 Executive Women are effecting ting cchange chhange and taking leadership roles in a traditionally male dominated nated industry. stry. Many have reached the top of the commercial real estate their own firms or tate field, fi founding fou establishing themselves in key positions pooositions sitions with w the industry giants. The October 28, 2011 edition tion will wiiillll feature these women! Be a part of this very special issue highlighting highlight highlightingg your you area of expertise; tell us about your background and yourr unique success stories and how you made it to the top in your field.

Contact JJoe Christman Mid Atlantic Real Estate Journal J T: 800-584-1062 x202 F: 781-871-5299 REAL ESTATE JOURNAL

he bottom-line value of any commercial real estate asset is typically found in its retail, office or industrial leases. Thus, a thorough understanding of those leases is essential for p r o f i t a b l e Eli S. Loebenberg acquisitions and successful property management. That’s why real estate investors should demand meticulous, exhaustive and up-to-date lease abstracts before making any purchasing decisions. Failure to review all of the complex details contained in a lease portfolio can lead to potentially disastrous financial and legal consequences. When evaluating the data extracted from a property’s leases, investors often focus on cash flow and revenue generating potential. Yet, they all too often fail to analyze leases for cost segregation purposes and overlook the significant tax implications of the Tenant Improvement clauses. The Tenant Improvement clauses determine whether the landlord or the tenant has legal ownership of any Tenant Improvements. The question of legal ownership is important because the owner of the improvements may be able to benefit from an IRS-approved cost segregation study, whereby eligible assets are identified and reclassified for accelerated depreciation. In general, buildings can be depreciated over either a 27.5-year or a 39-year period, but certain categories of fixed assets within a building can be depreciated more quickly, over five, seven or 15 years. Cost

segregation studies identify and reclassify these eligible fixed assets to shorter recovery periods in order to reduce the owner’s tax liability and improve cash flow. A general rule – approximately $150,000 to $200,000 in net present value tax savings can be generated for each $1 million of reclassified assets. Eligible assets generally include fixtures or related elements that are either unnecessary for the operation of the building itself, or are temporary structures. They can include: Redundant HVAC systems Decorative lighting, moldings and millwork Floor coverings, wall coverings and window treatments Sidewalks, parking lots and curbing Landscaping, swimming pools, fencing and outdoor lighting Storm water drainage systems Hospitality fixtures Communication systems, distribution panels and wiring Specialized vents, exhaust systems and specialized air filtration Security access and monitoring systems Computer data and power The list of eligible assets includes many items that commonly fall into the category of Tenant Improvements. Indeed, landlords often offer rent abatements to tenants who add them to the property. The key for cost segregation purposes is to specify who legally owns the improvement (whether it is carpeting and cabinetry or sidewalks). Although lease abstracting is routinely performed before properties are purchased, it’s important for landlords to insist on a thorough review of

the leases during the feasibility phase of a cost segregation study. If the firm doing the cost segregation study fails to separate tenant-owned items from landlord-owned items, the initial evaluation may include assets that do not, in fact, belong to the landlord, resulting in misleading estimates. When the Tenant Improvements clauses are fully and accurately abstracted, landlords may discover that they own improvements that they can include in the study. Or, they may find that they own only the building shell and the land it rests on, along with any common areas that may exist, but that everything else is owned by the tenants. continued on page 4C

Contractors, Owners & Managers a section of the

Mid Atlantic Real Estate Journal P.O. Box 26, Accord, MA 02018 781-871-5298 • 800-584-1062 fax 781-871-5299

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Section Publisher Joe Christman jchristman@marejournal.com

Section Editor Karen Vachon kjoy@marejournal.com

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Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — September 23 - October 13, 2011 — 3C

MAREJ COM Also orchestrates $2.025m sale in Philadelphia

Gebroe-Hammer arranges $27.66 million in NNJ

IVINGSTON, NJ — Gebroe-Hammer Associates reports investors have gained renewed confidence in Northern New Jersey’s multi-family sector in the wake of Wall Street’s latKen Uranowitz est jitters, as demonstrated by the 10 recent trades orchestrated by firm in a 22-day timeframe. The $27.66 million in total sales involved 429 units predominantly located throughout Bergen, Essex, Hudson, Union and Middlesex counties. “This recent flurry of activity further emboldens the new residential way of life in America as we evolve into a ‘renter society,’ thereby creating unprecedented investment demand for this type of asset,” said Ken Uranowitz, managing director. “The dream of owning a home has turned into a nightmare as foreclosures, affordability issues and extremely tight credit standards have driven the population toward apartments. Until home values stabilize and confidence in a jittery economy returns, renting is, and will be well into the foreseeable future, the new normal in residential living.”

The three largest recent transactions involved a 108unit complex in Middlesex Cty. and a total of 208 units in Newark. According to Joseph Brecher, executiveVP, suburban garden-apartment complexes and urban midand high-rise buildings are generating similar levels of investment interest. This level of predictability also has resulted in steady capital flow from lenders to finance multi-family acquisitions at Eisenhower-era interest rates, particularly those involving existing class B and class C properties. In addition to the Middlesex Cty. and Newark transactions, Gebroe-Hammer’s brokerage professionals arranged the sale of 22 apartment-rental units and 3 commercial units in Lodi; 9 units in Nutley; 23 units in Union City; and 16 apartment-rental and 2 commercial units in Jersey City. In addition, the firm handled the note sale on 13 units in Plainfield. Also in New Jersey, The team of Uranowitz and David Jarvis, executive VP, orchestrated the $3.45 million sale of 29 units at 28 Gates Ave. in the commuter hub of Montclair. Uranowitz has been involved in arranging two trades of Gates Avenue during the course of his 36-year

career. The industry veteran orchestrated the first sale of the property after 55 years of ownership. The second transaction involved the sale of a 28-unit apartment building in Union City that traded for $2.225 million. PHILADELPHIA, PA — In a multi-family marketplace that continues to demonstrate stability and a 95-percent occupancy rate, Gebroe-Hammer Associates has orchestrated the $2.025 million sale of a four-building, 85-unit portfolio in Philadelphia. Eli Rosen, senior VP of the firm, represented the seller and buyer, a Gebroe-Hammer client. The portfolio includes Grand Leiper Apartments in Philadelphia’s lower northeast section. A five-unit building adjacent to Grand Leiper, and two additional properties comprised of 28 units nearby, were included in the transaction. Gebroe-Hammer also recently finalized the $750,000 sale of 24 units in the southwest section of Philadelphia, near Philadelphia International Airport. The seller of the three-story garden-apartment complex named Rosen the listing broker after being referred by a fellow property owner. The area market specialist also identified the buyer. ■

Hidden in plain sight: Lease Abstracts & Cost Segregation . . . continued from page 2C To avoid this and gain the most accurate measurement of a property’s true value, Tenant Improvement ownership needs to be included in all lease abstracts, regardless of the purpose or timing of

the review. This permits the owner or potential purchaser to determine whether the considerable benefits of a cost segregation study can be added to the plus side of the property’s balance sheet. Failure to include Tenant Ownership in the

lease abstracts means that the benefits remain unexplored, hidden in plain sight. Eli S. Loebenberg is CEO of Madison SPECS, LLC, an affiliate of Madison Commercial Real Estate Services (MCRES). ■

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4C — September 23 - October 13, 2011 — Contractors, Owners & Managers — Mid

Atlantic Real Estate Journal

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MAREJ COM GENERAL CONSTRUCTION

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Royal Health Care Offices in Islandia, NY

Stalco Construction completes 50,000 s/f conversion

SLANDIA, NY — General contractor Stalco Construction completed the interior fit-out of the 50,000 s/f executive, administrative, and operations offices of Royal Health Care, a health insurance third party administrator (TPA). The new offices are located within CA, Inc.’s 778,000 s/f headquarters campus at One CA Plaza. Stalco converted the area previously occupied by CA into a new tenant space. LB Architects, PC served as the architect for the new facility. “The most unusual aspect of the project was the 400-footlong glass wall along the second floor mezzanine’s perimeter,” said Stalco Principal Kevin GHarney. “The wall consists of 80 tapered glass panels and three sets of doors.” The renovation also encompassed replacement of all ceilings; construction of nine executive offices, four conference rooms, an employee cafeteria, IT and telecommunications room, reception area, and large mail sorting room; relocation of 250 existing workstations organized in an open space environment; and upgrades to the HVAC, electrical, and fire suppression systems. Stalco installed new laminate floors inside the 2,400-square foot mailroom and the cafeteria. According to Stalco Superintendent Joseph Masciello, “The team delivered the project on a very challenging five-week schedule. This required complex logistical planning and detailed coordination of longlead item deliveries, including the fire suppression system and glass wall panels.” The architectural team faced several challenges related to the client’s functional requirements, the size of the space, and the budget. “Due to the limited budget, we focused on minimizing the extent of construction by creatively re-utilizing many of the existing architectural features. We also selected economical, standard materials and systems that still allowed us to develop an inviting and functional space,“ explained LB Architects’ designer Rosanna Russo. From the design point of view, the architects had to address the enormous size of the facility. “When working with such a large space, the environment can easily start to look and feel cold. ■

CONTRACTORS, OWNERS & MANAGERS SPOTLIGHT

BUILDING SERVICES & SUPPLIERS MAREjournal.com

Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — September 23 - October 13, 2011 — 5C

INSIDE: AMC Fire Protection ...............................6, 8C Christmas Décor by Cowleys ......................7C M. Miller & Son ..........................................7C Haftek CWS.................................................8C CDA Commercial & Residential Roofing ...9C Maxwell Systems .......................................9C BOMI International .................................11C

6C — September 23 - October 13, 2011 — Mid

Atlantic Real Estate Journal — Contractors, Owners & Managers

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BUILDING SERVICES & SUPPLIERS

Safety should not cost more! At AMC, we pride ourselves on Quality. Now we want to pass on the savings. *One year free extinguisher inspection and tagging with a 3 year extinguisher inspection contract. AMC specializes in large commercial management accounts!! Bring us your account and let us manage it.

Call Today: 856-608-7878 1530Glen Ave Unit One, Moorestown NJ 08057 *Contract is for three consecutive years. The free inspection is for the third year of the contract.

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Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — September 23 - October 13, 2011 — 7C

BUILDING SERVICES & SUPPLIERS To receive a holiday home decoration

Christmas Décor by Cowleys seeks nominations of local military families

EPTUNE CITY, NJ — Santa’s elves are not the only ones who are getting ready for Christmas. Much closer to home, Christmas Décor by Cowleys is sponsoring Bill Cowley its ninth annual Decorated Family Program to spread some holiday cheer to those who truly deserve it, our local military families who everyday show us all what true sacrifice really means. More than 100,000 American men and women deployed overseas this holiday season leaving their families behind. These families, without their loved one, do their best to prepare for the holidays, trying to make the best of a difficult situation. said Bill Cowley of Cristmas Decor by Cowleys, “Children of military families are under the constant strain of parental separation. Many children are too young to understand why their mommy or daddy is away. When we support our local military families, our goodwill travels across the globe, boosting the morale of our dedicated soldiers.” For almost a decade, Christmas Décor has given something back to the families of these brave men and women, making the Christmas season for our military children just a little bit brighter. The creation of a Decorated Family Program started in 2005 from a simple event that takes place across the globe in millions of households, the holiday dinner party. A Christmas Decor affiliate met a military family with the conspicuous absence of their father. This became a call to action. He started this holiday decoration initiative that is now in its ninth season spreading across the nation through the many Christmas Decor affiliates. “Decorating a home is a heartfelt thank you to our country’s soldiers. More important, it is something real and tangible to the kids. For those few weeks, they can try to enjoy Christmas like every other kid on the block” said Cowley. Today, it has become a tradition for the Cowleys fam-

ily to donate their products, resources and time to this worthy program. Do you know a deserving military family? Just fill out a simple nomination form available on the Christmas Décor page on Facebook. Families are selected based on their unique and particular circumstances as well as their location since they need to be near a local franchise. The company is seeking to attract hundreds of nominations that result in decorating at least 200 homes for the 2011 holiday season. The

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deadline for nominations is November 11th, 2011. For more information about the Decorated Family Program please visit the company’s website, www.christmasdecor.net. Christmas Décor by Cowleys is part of a professional holiday and event decorating franchise. The company offers a complete decorating service program including display design, installation, maintenance, and removal of holiday lighting and decorations. ■

8C — September 23 - October 13, 2011 — Mid

Atlantic Real Estate Journal — Contractors, Owners & Managers

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BUILDING SERVICES & SUPPLIERS Performing inspections on a monthly, quarterly, semi annual or annual basis

AMC Fire Protection provides fire extinguisher and fire equipment

MC Fire Protection is committed to providing superior service to our clients and the customers we serve. We are proud of our long-term relationships with our customers, serving many of them over the past 20 years. We strive to build quality in our workplace, products, and services and recognize it is fundamental to a successful future for our customers, employees, and suppliers. AMC Fire Protection History AMC Fire Protection was

founded in 1987 as an automatic sprinkler contractor in Pennsylvania by the Founder and current President, Mr. Frank Lawson. AMC quickly became one of the largest sprinkler contractors in the Philadelphia Metropolitan area specializing in industrial, warehouse, commercial, and retail construction and tenant fit-outs. In 2002 AMC Fire Protection moved headquarters to Moorestown, NJ We have a dedicated team of highly qualified technicians to inspect and maintain your fire

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protection systems. We perform inspections on a monthly, quarterly, semiannual or annual basis. For all your fire extinguisher and fire equipment needs, AMC Fire Protection offers a complete service at competitive prices. We are proud to offer same day, service, monthly recharging, and always a smile. The Future of AMC Fire Protection Going forward, AMC plans to stay true to its core philosophy of providing superior service at competitive pricing. ■

Schlouch installs roadway, utilities st Commerce Ctr. Boulevard B E T H L E H E M , PA — Schlouch Incorporated has been named Commerce Construction Co. LP to provide 6,500 feet of roadway and utilities on Commerce Center Blvd. Schlouch is providing clearing, grubbing, survey, stakeout, earthwork, sanitary and storm sewers, water line installation, sediment/erosion control, roads, curbs, paving and seeding. Schlouch has been named by Eagleview Commercial Construction to prepare the site for Eagleview Senior Housing in Uwchlan Twp. Schlouch is providing survey, stakeout, earthwork, sanitary and storm sewers, water line installation, sediment/erosion control, building pad, curbs and paving. Jeremy Keener is Schlouch’s site coordinator and Robert Bergen is project coordinator/estimator. Work will be completed by Fall 2011. A major public roadway improvement project completed by Schlouch Incorporated for Muhlenberg Township in Berks County received first prize for roads and bridges in the annual safety program of the Pennsylvania State Association of Township Commissioners (PSATC). The award was presented to the Township Commissioners. The project, designed and engineered by Great Valley Consultants, was carried out at Tuckerton Road and Reading Crest Avenue. Schlouch’s team assigned to the project installed a water main, handicap ramps, concrete curbing and sidewalks. ■

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Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — September 23 - October 13, 2011 — 9C

BUILDING SERVICES & SUPPLIERS All-in-one construction management software solution

Maxwell Systems releases ProContractorMX Version 2.7 construction business mgmt. software

ING OF PRUSSIA, PA — Maxwell Systems, Inc., a provider of complete construction business management software solutions, today released Maxwell Systems Jim Flynn ProContractorMX version 2.7, which offers valuable new capabilities to construction companies of varying size and discipline across the industry. With the 2.7 version, the award-winning construction management software solution delivers a new safety manager module, and new tools to increase takeoff speed and accuracy, comply with OSHA safety regulations, easily manage equipment maintenance, simplify processes, and eliminate redundancies. “Job site safety, project profitability, and simplified workflow are among the top concerns of every construction business owner,” said Jim Flynn, president & CEO of Maxwell Systems. “We continually improve our solutions to help contractors operate more successfully, efficiently,

and in accordance to their changing business needs. The new capabilities of ProContractorMX available in this release further our goal to best satisfy customer demand and anticipate how the software can be the ultimate all-in-one system for construction management.” The notable features and enhancements delivered in ProContractorMX 2.7 include: • New OSHA Safety Manager moduleallows contractors to easily and properly meet specific OSHA requirements,

as well as reduce costs and improve competitive edge with a comprehensive set of jobsite safety tools and consulting services. • New Equipment Maintenance feature allows tracking of work codes and service intervals (miles, hours) transactions to help minimize the costs associated with equipment repairs and to keep equipment active at jobsites. • New AP Workflow feature simplifies invoice tracking and routing for approvals electronically, ensuring proper cost

code and accurate to purchase order or subcontract. • New Shape Recognition feature allows estimators to further automate quantity counts using Digital Takeoff with technology that searches a set of plans and annotates like symbols and shapes. • Mobile Connect enhancement allows entry of Daily Field Report data (time, equipment, comments, and attachments) via iPad and automatically transfer to the main ProContractorMX database in the office, and then to Payroll

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Planned Cos. hires Holmes & Watkins PARSIPPANY, NJ — Planned Companies, a janitorial/maintenance, concierge/doorman and security services company, recently hired two new sales professionals to bolster its growing sales division. Craig Holmes was named regional director of sales for the Washington D.C./ Metro region. Planned also named Michael Watkins regional director of sales for PA and Southern NJ and will be responsible for generating leads, prospecting and enrolling new accounts monthly. “Planned Companies is experiencing tremendous growth and we needed to bring on additional sales professionals to fuel this expansion and give it momentum,” said Jonathan Kessler, VP of business development of Planned Companies. “We believe Michael and Craig will bring their individual and diversified strengths to these positions and we welcome them to the Planned family.” ■

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10C — September 23 - October 13, 2011 — Mid

Atlantic Real Estate Journal — Contractors, Owners & Managers

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BUILDING SERVICES & SUPPLIERS At Kean University in Union, New Jersey

Gruskin Group to design new Gateway Building

NION, NJ — Gruskin Group™, one of the nation’s leading design firms, has been awarded the project to design a new, mixed-use building for Kean University in Union, NJ. The proposed 102,275 Kenneth Gruskin s/f building will serve as a gateway marking the main entrance to Kean’s campus located at the intersection of Morris Avenue and Green Lane. The six-story building, which is intended to provide both a stimulating and metaphorical environment for learning, includes a café and retail space on the first floor, classroom and administration space on floors two through five, and a conference center and rooftop terrace on the sixth floor. The building will serve as the home for Kean’s new Robert Busch School of Design, as well as the University’s expanding business programs. “Our objective for this new building is to make a bold architectural statement and announce to visitors and the general public that they are about to experience something unique upon entering the campus. At the same time, the building design must establish the tone and quality of what can be expected beyond its demarcation as the University’s primary entry portal,” said Kenneth Gruskin, principal and founder of Gruskin Group. Among the building’s most distinctive and modern design elements is its undulating glass building façade which stands in contrast to three opaque towers that not only serve a practical function, but also align with the three local geometries

that define Kean’s campus. For example, Gruskin Group designed the towers to house elevators, fire stairs, and bathrooms. In addition, the tower along Morris Avenue aligns with the grid that defines the primary road systems and the original Kean structures. The second tower defines the academic building’s main entrance and follows the geometry of the main Kean University campus. The third tower’s vertical plane faces the University’s athletic fields and facilities. “By responding to the local framework of the campus and city, the building is able to serve not only as a gateway building, but also as a critical part of the larger whole,” noted Gruskin. Among Gruskin Group’s other planned features for the building are: • As an architectural acknowledgement at the Morris/ Green Lane intersection, the building features an outward slope that leans toward the entrance corner. It is topped by a circular conference center space, which offers dramatic views of the campus and New York City, and is suitable for small conferences and community events. The roof terrace will also be accessible to students and guests to meet and pass time between classes, as well as for events and meetings. A halo-lit Kean University seal floats beneath the canted roof of the conference center space, visible to the street corner below. • The building’s rectangular first floor is finished in brick that acts as a base and provides architectural contrast to the modern metal and glass upper floors. • A repeating series of hori-

Ridge Village Apartments LLC. “Willow Ridge Village is exactly the type of apartment asset that sophisticated buyers have been asking us for these past few years: It’s a good property in a great location,” said MacLaren. “With some upgrades to the units, the new ownership will be able to achieve rents closer to current market levels and realize a strong return on their investment over the next five

Second phase of Whitney Crescent in Glassboro

zontal metal solar shading fins define the outer edge of the façade curtain wall, enhancing the visual impact of the building’s non-orthogonal geometry. • The exterior skin is designed to facilitate a connection between the building occupants inside and the community outside that is afforded a unique glimpse into the academic classrooms from the outside. • A promenade located along Morris Avenue that connects the main campus to the Green Lane academic entrance will feature seasonal planters amidst a series of benches and seating opportunities which will offer people the opportunity to meet and relax. • The promenade leads to a grand exterior stair that sweeps students up to a second story entrance that serves the academic levels of the building. Designed into this grand entrance stair is a bleacher section that offers a southern exposure where students can sit and gather in the sun. • The School of Design will be set in in an open plan environment to foster an atmosphere of collaboration, integration and adaptability. Kean University president Dawood Y. Farahi said: “Kean University is dedicated to the intellectual, cultural and personal growth of its students, faculty and professional staff alike. In particular, we are committed to preparing our students to think critically, creatively and globally. Gruskin Group’s vision for the building’s design is a compelling one that reflects these values.” ■

Marcus & Millichap sells 296 apartment units MARLTON, NJ — Marcus & Millichap Real Estate Investment Services has brokered the sale of Willow Ridge Village, a 296-unit 251,824 s/f multifamily property in Marlton. The property was sold at a 6.25 percent cap rate. Ridge MacLaren, a vice president investments, and multifamily investment specialists Clarke Talone and Andrew Townsend, all in Marcus & Millichap’s Philadelphia office, represented the seller, Willow

Nears completion

to 10 years. Our marketing process generated a tremendous amount of interest among local and regional buyers from the private and public sectors,” adds MacLaren. Willow Ridge Village was delivered free and clear of debt, which enabled the buyer to place new attractive agency financing on the property. The apartments are at 1 Meridian Ct. in Marlton, not far from the intersection of Route 70 and Route 73. ■

Whitney Crescent GLASSBORO, NJ — Community Investment Strategies (CIS), Inc. is nearing completion of the second phase of Whitney Crescent. The affordable housing redevelopment is replacing 80 distressed units at the former Bentley Woods complex with modern apartment-rental homes. Nine buildings were demolished in phases to redevelop the 9.5-acre Whitney Crescent site. When completed, the newly constructed community will include 80 new affordable housing units designed to meet the lifestyle needs of 80 local families. The first 40 units were completed in the spring and are now fully occupied. Two three-story buildings consisting of 20 units are currently under construction and slated for occupancy this fall. The final 20 units are expected to be completed by year-end. “Residents were living in a severely distressed, dated housing complex that had fallen into a state of disrepair,” said Mark Issa, president of CIS Construction LLC, CIS’ affiliate. “Whitney Crescent was an opportunity for us to partner with the local township to build a sustainable, modern community for low-to-moder-

ate income families.” Revitalizing this Gloucester County community posed an unusual challenge for CIS because it involved the physical repositioning of a neighborhood. “We temporarily relocated residents, demolished old buildings, and rebuilt housing in a way that benefited everyone,” said William Dailey, president of CIS’s affiliate CIS Management Inc. “We are not just replacing old buildings, we’re recreating a community for children and their parents.” The project received broad grassroots support from local government officials, residents and neighbors. When approached by Bentley Woods residents, borough officials negotiated with the former owners to acquire the property under the Fair Housing Act, through eminent domain. Since the complex was built prior to 1980, the borough did not receive any Council on Affordable Housing (COAH) credits. However, as a newly developed community, Whitney Crescent will be eligible for COAH credits. In keeping with its “people first” philosophy, CIS worked with each Bentley Woods resi-

Pennrose Management Co. appoints Tannery as regional VP PHILADELPHIA, PA — Pennrose Management Company has recently appointed Kim Tannery as regional vice president of the company. As regional vice president, Tannery’s portfolio consists of more than 4,100 conventional housing, student housing and senior housing properties and 65 communities in Pennsylvania, New Jersey and Ohio. In her new role, she also leads a team of six Regional Property Managers across the three states. “Kim has a strong ability to identify and target critical problem areas and transform them with quick and effective

solutions,” said Robert Lampher, president of Pennrose Management Company. “She has proven track record of exceeding revenue growth goals and occupancy levels. We are also very pleased with her capability of being a role model and mentor to others.” Tannery, a Dallas, Texas native, brings more than 17years of experience creating and conquering business goals at companies including AIMCO, where she served as regional vice president. While there she received the Division Leader of the Year Award and oversaw a portfolio of 9,200 units across nine states. ■

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Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — September 23 - October 13, 2011 — 11C

BUILDING SERVICES & SUPPLIERS Senior property manager with Grubb & Ellis Management Services

BOMI International appoints Dolores Bocian, RPA, FMA Chairman of the Board of Trustees

n June 8, 2011, BOMI International’s Former Chairman of the Board of Tr u s t e e s , Vyetta Sunderland, RPA, CPM, announced the Board elected, Dolores A. Boc i a n , R PA , Dolores Bocian FMA as her successor. Bocian was BOMI’s vice chairman of the Board of Trustees. Her new term as Chairman of the Board of Trustees commenced on July 1, 2011. In addition, four new members of the Board of Trustees were announced effective July 1, 2011: Jacqueline A. Parks, Lesley C. Heieis, Sarah Catherine Wright, and Tyler H. White. Bocian began on the BOMI International Board in June of 1999. She resigned in late 2003 and was re-elected in January of 2005 for a 3-year term (7/05 to 6/08). She served her second 3-year term from July of 2008 until June of 2011. Bocian brings with her a wealth of experience. She chaired the following BOMI Board committees: • Marketing Advisory Committee • BOMA Local Organizations Task Force (BLOTF) • Governance • Executive (became Chairman 7/1/11) Bocian was an instructor for the BOMI courses held by BOMA NJ as well as, has been a member of the following BOMI Board committees: • Executive • Nominating • BLOTF • Governance • Policies & Procedures • Marketing Advisory • Finance/Investment • IDTF • Future Vision • Audit • Business Intelligence Group • Lease Task Force Bocian’s Executive Committee Positions: • January-June 2000 • September 2008 - June 2010 Vice Chair Elect • July 2010 - June 2011: Vice Chairman • July 2011 to present: Chairman On the local BOMA NJ level, Bocian served as president in 1996 and 1997. She was award-

ed the 2000-2001 “BOMA NJ Local Member of the Year” — a prestigious honor bestowed upon a member in recognition for their meritorious contributions to the BOMA association throughout the years. Bocian was also the recipient of the distinguished Middle Atlantic Regional Conference (MAC) “Person of the Year.” She is an individual who is driven by both motivation and determination. Beginning her career in the insurance business, her enthusiasm and the will to succeed led Bocian into a work-study program where

she landed her first job with Sudler. After making her way from file clerk to receptionist, to bookkeeper to secretary, to marketing administrator, a departmental change advanced her to a property management position. Admitting that she had no idea what she was doing at the time, Bocian quickly joined BOMA New Jersey and enrolled in BOMI studies and was soon well on her way to matriculating toward her RPA designation. Now obtaining both her RPA as well as FMA designations, Bocian’s is senior property manager with

Grubb & Ellis Management Services, Inc. She is the Board Liaison & Chair of BOMA NJ’s Marketing and Public Relations Committee. About BOMI International BOMI International is the premier international provider of educational products and services to the property and facility management industries. As the Independent Institute for Property and Facility Management Education, BOMI International is a not-for-profit educational institute dedicated to improving the skills of professionals

with property, facility, and systems responsibilities. BOMI International is known for industry-standard designations — the Real Property Administrator (RPA), the Facilities Management Administrator (FMA), the Systems Maintenance Administrator (SMA), and the Systems Maintenance Technician (SMT). More than 26,000 building professionals hold one or more BOMI International designations, and over 84,000 students have turned to BOMI International for premier education and training. ■

12C — September 23 - October 13, 2011 — Mid

Atlantic Real Estate Journal — Contractors, Owners & Managers

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BUILDING SERVICES & SUPPLIERS

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Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — September 23 - October 13, 2011 — 13C

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The Oct 14th issue will feature our Southern NJ, Eastern PA and the Appraisal Institute Spotlight Are you interested in writing a bi-lined article on your area of expertise ?

Green Awareness We invite you to send in editorial pertaining to: Green Products • Projects • Law • Green Industrial and Commercial property • Green Building Services • Existing building sustainability challenges

Deadline is Sept 28th

Mid Atlantic Real Estate Journal Mike Campisi, Section Publisher 781-871-5298 x208 fax 781-871-5299 PO Box 26 • Accord, MA 02018 167 Washington St. • Norwell, MA 02061 email: mcampisi@marejournal.com

14C — September 23 - October 13, 2011 — Contractors, Owners & Managers — Mid

Atlantic Real Estate Journal

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PEOPLE ON THE MOVE Virtual construction coordinator and project engineer

Butz Enterprises hires Larry Warner

EHIGH Valley, PA — Butz Enterprises Inc., consisting of Alvin H. Butz, Inc., Alexander Building Construction Co. and Shoemaker Construction Co., has hired Larry Warner as a virtual construction coordinator and project engineer. In his role as Virtu- Larry Warner al Construction Coordinator, Warner will help to train and educate employees of the Butz Enterprise Companies on the emerging trends and manage-

ment techniques associated with Project Level Building Information Modeling (BIM). Warner earned a Bachelor of Architectural Engineering degree with an emphasis in Construction Management from The Pennsylvania State University. He is a LEED Green Associate and Engineer in Training and a member of the Partnership for Achieving Construction Excellence. Warner brings more than 10 years of experience with computer programs such as AutoCad, including 3-D modeling, Revit, Navisworks, Microsoft Project, Primavera, and Constructware. He has worked on multiple

projects in his career, most recently the Department of Defense’s new housing complex in Fairfax, VA. This 2.4 million s/f, 2 billion dollar BRAC funded project sits on a 130 acre site and will house 8,500 employees. In addition to his construction experience, Warner is a registered EMT-Basic and logistics officer for the University Ambulance Service and has earned the position of a Level 3 USA Hockey Referee. Warner will be working out of Alexander’s State College office and will begin his immediate assignment on the Beaver Stadium North Endzone project. ■

Manko of MGKF moderates ULI’s program PHILADELPHIA, PA — Joseph M. Manko, founding partner of Manko, Gold, Katcher & Fox, LLP participated in a recent program entitled “Water, Water…Everywhere? Anywhere? Who’s Going to Pay?” presented by the Urban Land Institute. Held on August 11, 2011, Manko moderated the panel held in Philadelphia, PA, at the Delaware Valley Regional Planning Commission (“DVRPC”). The program focused specifically on learning the true price of water in the context of the region’s aging infrastructure system and in the current economic and political climate—how it’s managed, new regulations impacting development, delivery and distribution systems, and innovative financing and privatization models. Manko led a distinguished panel including Nicholas DeBenedictis, chairman, president and CEO of Aqua America, Brian Johnson, deputy executive director of the Pennsylvania Infrastructure Investment Authority (“PENNVEST”), and Howard

Nicholas DeBenedictis (Chairman, President and CEO of Aqua America), Brian Johnson (Deputy Executive Director of the Pennsylvania Infrastructure Investment Authority) (“PENNVEST”), Howard Neukrug (Commissioner of the Philadelphia Water Department) and Joseph M. Manko (Founding Partner MGKF). Neukrug, Commissioner of the Philadelphia Water Department. Manko has more than 35 years of experience advising clients on environmental issues relating to real estate development, regulatory permitting and compliance, and transactional matters, including mergers and acquisitions,

environmental reporting, and alternative dispute resolution matters. He has served, since 2003, as the Governor’s designee to chair the BOD of PENNVEST. He was appointed by the Montgomery County Board of Commissioners to serve on the County’s Task Force on the Reduction of Greenhouse Gas Emissions. ■

Tishman Construction Corp. appoints Bandini and O’Neill NEW YORK, NY — Tishman Construction Corporation (TCC) announced that Leo Bandini has been named executive vice president, Los Angeles, where he will focus on growing Tishman’s West Coast operations. Additionally, Martin O’Neill has been promoted to first vice president, Tishman Technologies, where he will lead TCC’s technology practice and data center construction arm. Bandini comes to Tishman

Construction Corporation with almost 40 years of construction industry experience in business development and client relations. Prior to joining Tishman, he was recruited by Webcor to open and run its Los Angeles office where he built the business into an operation with $1.4 billion in annual revenues. “It is a very exciting time to be joining Tishman and AECOM as they look to expand their construction services operations on the West Coast,”

said Bandini. “I am eager to be a part of an organization with such a rich history of building the most complex and high profile projects in the world.” O’Neill has been with Tishman for eleven years, during which he has been responsible for some of the largest and most complex data centers in the company’s portfolio, including: Sentinel Data Centers; the Thomson Reuters Data Center Upgrade and Expansion in Hazelton, Missouri.■

As project manager

May joins Hercules Corporation HICKSVILLE, NY — Hercules Corporation announced that Adam May has joined the company as a project m a n a g e r. May represents the third-generation of this 52-year old Adam May family business founded by his grandfather, chairman Al May, and currently led by his father, president and CEO Andrew May. In his new role, Adam

will be focusing on operations, customer service, installations and liaison with the equipment manufacturers. Since graduating this May from the University of Miami with a Bachelor of Business Administration in Business Management, May has been learning the family business for the past five summers. During this time, he served in various corporate departments, from data analysis, inventory and warehouse management, to Accounts Payable/Receivable, customer service and sales. ■

H2M’s Gehringer, AIA elected CSI northeast region president MELVILLE, NY — Ken Gehringer has been elected Northeast Region president of the Construction Specifications Institute (CSI). He was Ken Gehringer elected by the CSI Board and will serve a two-year term. The Northeast Region of CSI, a National organization, whose mission to advance building information management and education of project teams to improve facil-

ity performance, consists of 15 chapters from New Jersey to Maine. As region president, Gehringer will serve as chairman of the Executive Committee and of the Board, he will preside at all region meetings, he will appoint the chairman of standing and ad-hoc committees, he will be an ex-officio member of all committees except the region nominating committee, and sign all agreements and formal instruments on behalf of the region. The president is also responsible for visiting all region chapters within his twoyear term. ■

Pennoni Associates announces regional VPs BALTIMORE, MD, CHANTILLY, VA, AND PHILADELPHIA, PA — Pennoni Associates announced seven new regional VP positions. Pennoni increased its size by 20% with the December 2010 acquisition of Virginiabased Patton Harris Rust & Associates (PHR+A), and these newly created positions are the second step in the integration process. The first major step in the joining of the management of the two firms was the addition of Charles Perry, former president of PHR+A, to the Pennoni executive management team as senior vice president and chief operating officer (COO). Nelson Shaffer, executive VP and previous COO, took on the newly created role of chief administrative officer. The goal of the corporate realignment was to create a management structure that would better utilize the staff and capabilities in the new southern offices, as well as allow for the firm to provide the best possible client services.

The decision was made to put in place a new position, regional vice president, to report directly to the COO. The regional vice president is responsible for the growth and profitability of offices and divisions under his or her supervision and assists the COO in achieving the Annual Business Plan targets and growth in the region. The firm will be divided into five geographic regions, as well as having two separate technology-based segments, allowing for seven regional VPs. The firm is pleased to announce Pennoni’s regional VPs: Andrew Bennett, PE - Pennsylvania North & West Ron Moore - Delaware, Maryland & DC David Pennoni, PE - Philadelphia Metro/Southern New Jersey Susan Wolford, CLA, AICP, LEED Green Associate – Virginia David Lowdermilk, PE – Transportation Andrew Pennoni, PE – Inspection & Testing ■

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Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — September 23 - October 13, 2011 — 15C

MULTIFAMILY New Jersey Apartment Association Advance & protect the welfare of the apartment industry in NJ President

ENERGY POLICY: BPU APPROVES SUB-METERING NJAA PETITION FOR WATER SERVICE IN NEW MULTI-FAMILY CONSTRUCTION

Jeff Smith, Kriegman & Smith

On August 18 the NJ Board of Public Utilities (BPU) approved the NJAA’s petition for approval of sub-metering for water and sewer service in new multi-family rental construc-

Regional VP North Jersey

tion projects, effective immediately. Approval of sub-metering has been an NJAA policy

Brent Kohere,

priority for several years and this Order is the culmination of a decade-long advocacy effort

Home Properties

spanning five gubernatorial administrations. The Board’s Order approves the use of sub-metering technology to measure water consumption on a per unit basis, and charge residents for their actual usage. Copy of final Board Order is expected early next week. Expansion

Regional VP Central

of sub-metering in rental housing was included as a recommendation in the Lt Governor’s

William Dailey,CPM

bi-partisan Red Tape Report (April 2009) and approval of sub-metering is one of the first

CIS Management Inc.

energy policy recommendations from the Red Tape Report to go into effect. Contact Conor Fennessy in the Trenton Office, 609-393-5200, with any questions.

Regional VP South Joe Spadaccini

EDUCATION MATTERS Become a Certified Success with an NAA Designation Program! EDUCATION FOR SEASONED INDUSTRY PROFESSIONALS & EXPERIENCED PROPERTY MANAGERS CAM SLAM - OCT 18-20 Register today for NAA’s Certified Apartment Manager (CAM) designation course taught by

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Legislation VP

your designation in as little as five class periods. Allow us to assist you in enhancing your

Michael C. Haydinger

professional growth in the apartment industry. Specialized training will help you manage

First Montgomery Group, AMO

your apartment community and team more effectively. CAM training covers Fair Housing, management of residential issues, property maintenance and more! This session will be held at NJAA HQ from 9:00am to 5:00pm (continental breakfast at 8:30am). The cost to attend is $995 for NJAA members and $1395 for non-members. Contact Niambi Ivery by e-mail or at 732-992-0606 for more information.

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Treasurer Lynne Aber Bertram Associates

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16C — September 23 - October 13, 2011 — Contractors, Owners & Managers — Mid

WWW.IREM.ORG

Atlantic Real Estate Journal

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Institute of Real Estate Management

2011 OFFICERS NEW JERSEY CHAPTER NO.1 PRESIDENT SCOTT DALLEY, CPM® ACCESS PROPERTY MANAGEMENT, AMO®

ACCREDITED MANAGEMENT ORGANIZATIONS® Choose a local AMO® firm to manage your property

VICE PRESIDENT LAWRENCE SAUER, CPM® TAYLOR MANAGEMENT CO., AMO® SECRETARY MARK PHILLIPS, CPM® PHILLIPS ASSET MANAGEMENT CO., INC. TREASURER MICHAEL FRIED, CPM® BOSTON PROPERTIES

DELAWARE VALLEY CHAPTER NO. 3 PRESIDENT JODY DIMPSEY, CPM® JLD MANAGEMENT GROUP PRESIDENT-ELECT MICHAEL CARR, CPM® WELLS FARGO WEALTH MANAGEMENT

New Jersey Chapter No. 1 Prism Property Service, LLC Bloomfield, NJ 07003

Moderate Income Management Co., Inc. Princeton, NJ 08543

Lutheran Social Ministries of New Jersey Burlington, N. J. 08016

RCP Management Co. Princeton, NJ 08540

Cronheim Management Services, Inc. Chatham, NJ 07928

Rainbow Property Management LLC Roseland, NJ 07068

Wentworth Property Management Corp. Eatontown, NJ 07724

PRC Management Co., Inc. West Long Branch, NJ 07764

Access Property Management Flemington, NJ 08822

Taylor Management Co. Whippany, NJ 07981

Levin Management Corp. North Plainfield, NJ07060

JGT Management Co., LLC Woodbridge, NJ 07095

VICE PRESIDENT JERRY NEILL, CPM® CB RICHARD ELLIS CO., AMO®

Delaware Valley Chapter No. 3

VICE PRESIDENT RICH SKOCZYLAS, CPM® AIMCO VICE PRESIDENT STEPHANIE BURG-BROWN, CPM® CANDIDATE BSA MANAGEMENT CORP., LLC VICE PRESIDENT ANNE-MARIE NIKLAUS, CPM® MADISON APARTMENT GROUP SECRETARY/TREASURER INGO KRAUS, CPM® CITIZENS BANK

SOUTHERN NEW JERSEY CHAPTER NO. 101

Altman Management Co. Ft. Washington, PA 19034

Community Property Management, Inc Philadelphia, PA 19121

Benchmark Corporation Media, PA 19063

Herbert Yentis & Co, Inc. Philadelphia, PA 19151

Berger Rental Communities Southeastern, PA 19399

High Associates. Ltd Lancaster, PA 17605-0008

Boyd/Wilson Property Management Lancaster, PA 17601

Philadelphia Housing Authority Philadelphia, PA 19103

Brite Realty Services Inc. Exton, PA 19341

Property Management Inc. Lemoyne, PA 17043

PRESIDENT SANDRA E. CIPOLLONE, CPM INTERSTATE REALTY MANAGEMENT CO., AMO VICE PRESIDENT DIANE WERSLER, CPM® CANDIDATE INTERSTATE REALTY MANAGEMENT CO., AMO® VICE PRESIDENT MARIA AVERY, CPM® CANDIDATE MANHATTAN MANAGEMENT CO. SECRETARY/TREASURER PATRICIA BALDT, CPM® CANDIDATE WESTGATE MANAGEMENT CO., INC.

Southern New Jersey No. 101 Community Realty Management Inc. Pleasantville, NJ 08232-2767

Friedman Realty Group Inc. Gibbsboro, NJ 08026

First Montgomery Group Marlton, NJ 08053

Interstate Realty Management Co. Marlton, NJ 08053-0994 United Communities Management LLC Marlton, NJ 08053

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Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — September 23 - October 13, 2011 — Inside Back Cover C

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Mid Atlantic REAL ESTATE JOURNAL FALL PREVIEW 2011 MAREjournal.com

Mid Atlantic Real Estate Journal — September 23 - October 13, 2011 — Section D

ERNEST DESROCHERS NORTHMARQ

ROBERT DILEO NAI DILEO-BRAM & COMPANY

MICHAEL J. FASANO MARCUS & MILLICHAP REAL ESTATE INVESTMENT SERVICES

SIDNEY E. GABLE SIDNEY E. GABLE ASSOCIATES, INC.

DAVID GOLDFISHER THE HENLEY GROUP, INC.

DONNA HEGARTY ADVANTAGE BUILDING & FACILITY SERVICES, LLC

NEIL KILIAN EMORY HILL COMPANIES

REBECCA MACHINGA, CPA WITHUMSMITH+ BROWN, PC

ANDREW MERIN CUSHMAN & WAKEFIELD, INC.

JIM O’HARA, JR. EMORY HILL COMPANIES

BRUNO TEDESCHI MAX SPANN REAL ESTATE AUCTION CO.

STANLEY B. WYRWICZ CALKAIN COMPANIES, INC.

INSIDE: AUCTIONEER: Bruno Tedeschi, Max Spann....................................................................... 2D CMBS LOAN WORKOUTS: David Goldfisher, The Henley Group Inc. ..........................................3D DELAWARE BROKER: Jim O’Hara, Jr. and Neil Kilian, Emory Hill Companies ...................4D GREATER PENNSYLVANIA: Sidney E. Gable, Sidney E. Gable Associates .....................................6D INVESTMENT: Michael J. Fasano, Marcus & Millichap Real Estate Investment Services .......8D

LENDING: Ernest DesRochers, NorthMarq.........................................................10D MANAGEMENT: Donna Hegarty, Advantage Building & Facility Services, LLC .......11D NAI BROKER: NAI DiLeo Bram & Co. ....................................................................12D NEW JERSEY BROKER: Andrew Merin, Cushman & Wakefield, Inc. ....................................13D NNN RETAIL PROPERTIES: Stanley B. Wyrwicz, Calkain Companies, Inc...................................14D SBA FINANCING: Rebecca Machinga, CPA, WithumSmith+Brown, PC .....................15D

D Inside Cover — September 23 - October 13, 2011 — Fall Preview — Mid

Atlantic Real Estate Journal

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Mid Atlantic Real Estate Journal — Fall Preview — September 23 - October 13, 2011 — 1D

FALL PREVIEW

FOR

SALE

H o ne y, I’m o u t H e re’s a t a k i n g t h e k id s lis t of t hi ng s w t o s o c c e r prac e ne e d: t ic e . MIDDLESEX COUNTY, NJ

✓

Type Address Size Sale Price

Industrial

✓

Type Address Size Sale Price

71,800 SF $4,500,000

✓

Type Address Size Sale Price

Industrial 5 Lexington Avenue, East Brunswick 55,650 SF $2,975,000

✓

Type Address Size Sale Price

Industrial 1000 King Georges Road, Woodbridge 43,429 SF $2,550,000

172,000 SF $5,950,000 Industrial

MORRIS COUNTY, NJ Type Address Size Sale Price

Oﬃce 96 Route 206, Roxbury 16,000 SF $1,650,000

✓

Type Address Size Sale Price

Investment (Oﬃce/Retail) Cleveland Plaza, 123 North Union Avenue, Cranford 37,847 SF $6,425,000

✓

Type Address Size Sale Price

Industrial 11 Diamond Road, Springﬁeld 42,480 SF $3,350,000

✓

Type Address Size Sale Price

Oﬃce 70 Myrtle Street, Cranford 20,712 SF $2,950,000

✓

Type Address Size Sale Price

Oﬃce 373 Clermont Terrace, Union 24,505 SF $2,400,000

Type Address Size Sale Price

Oﬃce/School/Flex 191 Glen Road, Mountainside 11,685 SF $1,950,000

✓ UNION COUNTY, NJ

✓

And don’t forget the milk!

EXCLUSIVE BROKERS DOUG RICHTER Managing Director doug.richter@svn.com 732.489.2250 cell

IAN GRUSD, CCIM SIOR Managing Director ian.grusd@svn.com 732.763.6330 cell

All Sperry Van Ness® Oﬃces Independently Owned and Operated

33 Wood Avenue South l Suite 600 Iselin l NJ 08830 l svn-rg.com l 732.906.0505 No warranty or representation, express or implied is made as to the accuracy of the information and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice and to any special listing conditions imposed by the principals. Prospective purchasers/tenants are urged to conduct whatever investigation they, their attorneys and advisors deem necessary regarding the properties, including but not limited to the above items.

2D â&#x20AC;&#x201D; September 23 - October 13, 2011 â&#x20AC;&#x201D; Fall Preview â&#x20AC;&#x201D; Mid

Atlantic Real Estate Journal

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AUCTIONEER By Bruno Tedeschi, Max Spann

Itâ&#x20AC;&#x2122;s a Summer to Remember for Max Spann

ith the housing market still struggling to recover, many in the real estate industry have dealt with just a trickle of sales. But that was not the case at Max Spann Real Bruno Tedeschi Estate & Auction Co., nationally recognized as a leading authority in auction marketing. The New Jersey-based companyâ&#x20AC;&#x2122;s auctioneers spent the summer selling hundreds of

properties to eager buyers at dozens of auctions throughout the Mid-Atlantic region. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s been one of the busiest summers weâ&#x20AC;&#x2122;ve had so far,â&#x20AC;? said Max Spann, president & CEO of the firm, with offices in Clinton, N.J., and Manhattan. â&#x20AC;&#x153;With so much excess inventory in the real estate market, an auction is always the most efficient way to connect buyers and sellers and quickly establish the true value of properties.â&#x20AC;? Spann said an auction gives property owners an immediate way to take control of the sale of their properties, while swiftly navigating market

challenges. â&#x20AC;&#x153;Auctions are the most effective method of sale in an uncertain or recovering market,â&#x20AC;? Spann said. â&#x20AC;&#x153;In less certain times, bidders want to be empowered to name their own price for a property. Concurrently, sellers want to be able to move multiple units quickly, efficiently and profitably, all within a single day.â&#x20AC;? Max Spannâ&#x20AC;&#x2122;s comprehensive marketing plan typically includes an intensive, multipronged, four-week campaign that energizes the marketplace and creates excitement about an upcoming auction. â&#x20AC;&#x153;We call it an accelerated auction marketing program

because it creates a sense of urgency in the marketplace,â&#x20AC;? Spann said. â&#x20AC;&#x153;With bidders competing with each other at the same time, auctions such as this one help determine the optimal market value.â&#x20AC;? That was the case this month at Dewey Beach, where Max Spann sold 13 three-bedroom condominiums in the heart of the well-known Delaware family vacation destination. With original asking prices of $450,000, the company set the minimum bids at $85,000, drawing huge crowds to open houses held during the peak vacation season at the end of August. All 13 units sold

AUCTIONS Minimum Bids from $55,000 Previously Asking to $225,000

SUNDAY, OCTOBER 9TH AT 1:00PM

TUESDAY, SEPTEMBER 27TH AT 1:00PM

BEST VALUE ON THE BEACH!

!#2%3 &!2-,!.$ s 2/,,).' &)%,$3 !.$ 6)%73 &/2 -),%3 s "!2.3 !.$ 34/2!'% 3(%$3

The Madrid- A Beach Front Community! 35 Condominiums in Wildwood Crest Swimming Pool 1 Bedroom condominiums with furniture included! All units have views to the beach! 1 Parking spot per unit.

s &ARM HOUSE FEATURES BEDROOMS AND spacious backyard s &ARM HOUSE FEATURES BEDROOM CLASSIC COUNTRY manor with spacious living room, chestnut staircase, hardwood ďŹ&#x201A;oors, and pocket doors. s #OUNTRY BROOK MEANDERS THROUGH THE PROPERTY AND joins the natural spring located directly beside the second farm house.

PROPERTY PREVIEWS :

September 11 th ,17 th ,18 th , 24 th & 25 th â&#x20AC;&#x201C; 11:00AM-2:00PM

September 7 th & 14 th â&#x20AC;&#x201C; 12:00PM-2:00PM

!UCTION BEING HELD AT 3EAVIEW (OTEL 3 .EW 9ORK 2OAD 'ALLOWAY .*

!"3/,54% !5#4)/. !UCTION BEING HELD ON SITE UNIONVILLE 2D 2OUTE 7ANTAGE .* 3USSEX #OUNTY

COMING SOON AUCTIONS s "ANK "RANCHES 4HROUGHOUT .9 .* 0!

s #OMMERCIAL 0ROPERTY 7ILDWOOD .* s #OMMERCIAL 0ROPERTIES "AYONNE .* s Âą 3Q &T 7AREHOUSE /FFICE 3PARTA .*

MAX SPANN

REAL ESTATE & AUCTION CO.

8 8 8 - 2 9 9 - 1 4 3 8 s M A X S PA N N . C O M

s /CEANFRONT ,OT 3EASIDE 0ARK .* s #OMMERCIAL "UILDING (OLMDEL .* s !.$ -/2%

that day at prices ranging from $251,000 to $320,000. For those who missed the opportunity, the company is auctioning beachfront condominiums in Wildwood Crest, N.J., another popular East Coast vacation hot spot. The auction of 35 fully furnished one-bedroom units with $55,000 minimum bids in the Madrid beachfront community at 427 East Miami Ave. is scheduled for 1 p.m. on Sunday, October 9 at the Seaview Hotel, 401 South New York Road in Galloway. It will be the companyâ&#x20AC;&#x2122;s eighth auction in the Wildwoods during the last two years. Earlier this year, an auction at the Borgata Hotel & Casino in Atlantic City attracted bidders from Philadelphia, New York, Long Island, Delaware, Washington, D.C. and, of course, New Jersey.. Within 30 minutes, Max Spann sold $4.9 million worth of real estate, It was the companyâ&#x20AC;&#x2122;s seventh auction in the Wildwoods. Last year, the company earned the distinction of selling half of all the real estate in the Wildwoods. The companyâ&#x20AC;&#x2122;s reach extends well beyond beachfront communities, in which auctioneers work in urban, suburban and rural communities, for a full range of properties. For example, a multi-parcel auction in September featured a variety of New Jersey properties, including a former Charlie Browns restaurant, two former bank branches, an office building, a beach home, one commercial lot and one residential lot. Max Spannâ&#x20AC;&#x2122;s decision earlier this year to open an office at 370 Lexington Ave. in Manhattan in the heart of the banking industry is also paying off. â&#x20AC;&#x153;Being located in the nationâ&#x20AC;&#x2122;s financial, legal and real estate capital has allowed us to better serve our growing national client base,â&#x20AC;? Spann said. â&#x20AC;&#x153;The office has positioned us to take full strategic advantage of a market that demands our services.â&#x20AC;? Spann said banks are eager to work through their portfolio of non-performing loans. â&#x20AC;&#x153;Banks are not in the business of owning real estate,â&#x20AC;? he said. â&#x20AC;&#x153;They need to to get the properties off their books and into the hands of owners who can return these properties to productive use. â&#x20AC;&#x153;That is why they turn to Max Spann.â&#x20AC;? â&#x2013;

MAREjournal.com

Mid Atlantic Real Estate Journal — Fall Preview — September 23 - October 13, 2011 — 3D

CMBS Loan Workouts By David Goldfisher, The Henley Group Inc.

“Keep your Friends close and your Enemies closer”

oan Defaults in fixedrate, commercial mortgage-backed securities (CMBS) continue to grow. According to Fitch Ratings, the default rate hit 12.9% at the end of the second quarter of 2011, David Goldfisher up 228 basis points from Dec. 31, 2010. The sheer volume ($60.86 billion) of problematic CMBS loans in the special servicer’s pipeline has dictated that the servicer develop efficient loan servicing platforms. The servicer has to be vigilant in striking the right balance between upholding its fiduciary responsibility to all bondholders, meeting the financial objectives set forth in the trust’s PSA (Pooling and Service Agreement) and allocating its own resources, namely its TIME. The best way for a borrower to achieve a desired loan resolution is to offer workout proposals that fit within the servicer’s spectrum of acceptability. An advanced understanding of the servicer ’s, controlling class member’s, and bondholder’s tolerance points is important to engaging the servicer in a meaningful dialogue. The special servicer’s chief priority is to fairly represent all the bondholders of the trust; which include AAA investors through the subordinated B piece investors (also referred to as controlling class members). While the special servicer interfaces with the Borrower and is responsible for certain decisions during the loan resolution process, the servicer is hired by and in some respects accountable to the controlling class member for final approval on any restructure proposal. The controlling class member is the most subordinate bondholder within the trust and therefore suffers the first loss when a loan is written down or otherwise disposed of at a loss. A few questions that a borrower needs to consider prior to sending in a loan resolution proposal include: 1) Who is my servicer and controlling class member? 2) What is each bondholder ’s current loss status within the pool?

3) What loan resolutions have my servicer recently executed; am I better off proposing a

ing orders” is tantamount to reaching resolution. Next to meeting the servicer’s eco-

The best way for a borrower to achieve a desired loan resolution is to offer workout proposals that fit within the servicer’s spectrum of acceptability. discounted payoff or an A/B note restructuring? None of these questions can be answered formulaically. The Henley Group has canvassed multiple servicers and controlling class members for this article and offers the opinion that satisfying the servicer’s “internal march-

nomic requirements, this may be the second greatest hurdle to overcome. Certain controlling class members have been notorious for not accepting discounted payoffs for loans of any size. They prefer to move forward with Borrowers who can execute on an A/B modification

and invest capital. The “A” Note loan balance is ascribed a value based upon a servicer’s valuation. The balance of the unpaid principal is converted into a “B” note that may or may not accrue interest and may be paid back on a pre-determined basis upon a recapitalization or property sale. On the other hand, one of the largest special servicers and controlling class members has accepted discounted payoffs and prefers not to do A/B note modifications for loans under $30MM. The Henley Group believes that “this is a resource allocation decision and that

given the cumbersome nature of structuring an A/B note, the controlling class has focused their restructuring efforts on loans having the greatest financial impact on the pool.” A Borrower’s responsibility is to gain a deep appreciation for the positions of the servicer and the trust’s bondholders before crossing “enemy” lines. David Goldfisher is the founder of The Henley Group Inc., a boutique consultancy that provides workout advisory services for performing and nonperforming CMBS loans. ■

CMBS Loan

$12 Million

$16 Million

Specialty Use Portfolio Northeast

Office Massachusetts

DISCOUNTED PAYOFF

CMBS Loan

$7.2 Million

$8.5 Million

Industrial Massachusetts

Anchored Retail Massachusetts

DISCOUNTED PAYOFF

LOAN MODIFICATION

No Default

A/B Note Structure

David Goldﬁsher

The Henley Group, Inc.

O: 508-318-6520 M: 617-320-0284 david@thehenleygroup.com www.thehenleygroup.com

Workout Advisory for CMBS Loans

4D â&#x20AC;&#x201D; September 23 - October 13, 2011 â&#x20AC;&#x201D; Fall Preview â&#x20AC;&#x201D; Mid

Atlantic Real Estate Journal

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DELAWARE BROKER By Jim Oâ&#x20AC;&#x2122;Hara, Jr. and Neil Kilian, Emory Hill Companies

NAI Emory Hill brokers address Delaware officials on real estate market outlook

EW CASTLE, DE - If you have it, they will come. That is, if you have apartment buildings or retail space available near Christiana Mall or on Rt. 202 (or on the corner of any busy Jim Oâ&#x20AC;&#x2122;Hara, Jr. street with a traffic light) in Delaware. Thatâ&#x20AC;&#x2122;s the good news NAI

Emory Hillâ&#x20AC;&#x2122;s Jim Oâ&#x20AC;&#x2122;Hara, Jr. and Neil Kilian offered to those attending a recent New Castle C o u n t y Chamber of Commerce Economic Development Update meeting. Neil Kilian Oâ&#x20AC;&#x2122;Hara and Kilian were invited to give their expert views on the commercial

real estate market outlook for 2011 in regard to the present economic forecasts. The Emory Hill brokers were also

gineering firms and other developers and real estate companies. â&#x20AC;&#x153;National retailers are al-

â&#x20AC;&#x153;National retailers are always asking, is there anything we can buy in Delaware, and in New Castle County in particular,â&#x20AC;? Oâ&#x20AC;&#x2122;Hara said. asked to offer solutions to the gathering which included government and economic development officials as well as executives from Delawareâ&#x20AC;&#x2122;s banks, manufacturers, en-

ways asking, is there anything we can buy in Delaware, and in New Castle County in particular,â&#x20AC;? Oâ&#x20AC;&#x2122;Hara said. â&#x20AC;&#x153;And theyâ&#x20AC;&#x2122;re specific about where they want to

6DlUDĂ&#x2DC;&NSĂ&#x2DC;6G@SĂ&#x2DC;8NTlQDĂ&#x2DC;+NNJHMFĂ&#x2DC;%NQĂ&#x2014; UniverRHSXĂ&#x2DC;.EĂ&#x161;BDĂ&#x2DC;/K@Y@ -DV@QJ Ă&#x2DC;#DK@V@QD 4JY $MBTT # PGĂ&#x2122;DF CMEHT X TVJUFT GPS MFBTF TUBSUJOH BU 4'

-JUUMF 'BMMT 0GĂ&#x2122;DF 1BSL 6HKLHMFSNM Ă&#x2DC;#DK@V@QD 5ISFF UP 4' PGĂ&#x2122;DF TVJUFT BWBJMBCMF GPS MFBTF KVTU PGG *

8IJUF $MBZ .FEJDBM $FOUFS -DV@QJ Ă&#x2DC;#DK@V@QD .FEJDBM DPOEPT GPS TBMF PS MFBTF TUBSUJOH BU 4' )PTQJUBM QSPYJNJUZ

#SBOEZXJOF 1MB[B 6HKLHMFSNM Ă&#x2DC;#DK@V@QD

UPUBM 4' BWBJMBCMF JO UXP $MBTT " PGĂ&#x2122;DF CMEHT Jim Oâ&#x20AC;&#x2122;Hara, Jr. | Neil Kilian | Tripp Way 10 Corporate Circle Suite 100 New Castle DE 19720 phone 302 322 9500 | fax 302 322 9518 jimohara@emoryhill.com | trippway@emoryhill.com www.emoryhill.com

be.â&#x20AC;? The bad news, he said, is the amount of vacancies or available properties are slim. Oâ&#x20AC;&#x2122;Hara called on the Delaware Department of Transportation and the county and state governments to look at ways to increase that availability. Multi-family housing is also a hot commodity given the fact that more people are renting instead of buying due to the recession, Kilian said. He added that brokers will have to work harder and smarter because buyers and tenants are striking tougher deals for all types of space, including office and industrial, and thereâ&#x20AC;&#x2122;s more competition than ever before for less dollars. â&#x20AC;&#x153;Now is a phenomenal time to go buy a building for less than it would cost to build it,â&#x20AC;? he said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a great time to be a tenant or a buyer in this market. So weâ&#x20AC;&#x2122;re sharpening our pencils, looking at the bottom line and adding more value.â&#x20AC;? Some innovative solutions on which Emory Hill is focusing include lease reviews, where skilled accountants review a lease to see if a significant savings can be had in renegotiating it, conducting Energy Audits (through their corporate partner, NAI Global Sustainability Solutions) to determine how property owners can save money or increase profitability through more energy-efficient practices, and addressing the shift in real estate property demands, sometimes â&#x20AC;&#x153;thinking outside the boxâ&#x20AC;?. Examples of these include two of Emory Hillâ&#x20AC;&#x2122;s listings that are being marketed as potential multi-family properties: one is 1320 Clifford Brown Walk in Wilmington, an industrial warehouse for sale near Rodney Square on the Christina River that is zoned special use. Interested investors can convert it to waterfront apartments to meet the increase in multifamily demand, especially since a daycare and park are nearby; Another is 1300 Market Street in downtown Wilmington, a multi-story office building that can also be converted to multi-family units. Jim O'Hara, Jr. and Neil Kilian, Emory Hill Companies. â&#x2013;

MAREjournal.com

Mid Atlantic Real Estate Journal — Fall Preview — September 23 - October 13, 2011 — 5D

ENGINEER

Solving Problems Engineering Solutions . . .

6D — September 23 - October 13, 2011 — Fall Preview — Mid

Atlantic Real Estate Journal

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GREATER PENNSYLVANIA By Sidney E. Gable, Sidney E. Gable Associates

The future looks promising and bright for the Mid-Atlantic Region

he current commercial real estate market in the Greater Philadelphia area is the worst that I have seen it in the fifty years of my professional life as a Commercial Real Estate Broker. Sidney E. Gable However, I believe that there will be a strong positive change in

2012 and 2013. While this region’s business industry has lost many established manufacturing corporations, new companies are coming to our area with new products. The pharmaceutical industry has witnessed great expansion such as Teva, Merck, Almac Group, and Glaxo Smith Kline. There are more than twenty large firms of this type in the area. Iroko from Japan is expanding in the Philadelphia Naval Yard Property. Many large drug

companies have teamed up with local universities and medical centers to conduct research projects. Additionally, tech companies have a bright future and are locating here. Our excellent colleges and universities are educating students who help these companies develop and prosper. Other well known companies are also growing. For example Almac has built a $120,000,000 facility in Montgomery County, and Campbell Soup has new

headquarters in Camden, NJ. The Tasty Baking Company has relocated to new facilities in the Philadelphia Naval Yard. We also have manufacturers that continue to do well in our area because they have received government contracts, such as Boeing, GE Space Division, and Lockheed Martin. I recently completed two transactions in Philadelphia for “Green Operations”. One new business opened up to recycle old household appliances

50,000 SQUARE FEET Immediate Immediate Possession Possession y Newl ted va Reno

Will Will Divide Divide

COREN COREN INDIK INDIK BUILDING BUILDING

915 Pennsylvania Blvd. Lower Southampton Industrial Park Feasterville, PA • On-Site Parking

• Tailgate Loading

Convenient to Delaware Expressway (I-95) and the Pennsylvania Turnpike For inspection or additional information contact:

SIDNEY E. GABLE ASSOCIATES, INC.

Industrial & Commercial Real Estate 411 Feheley Drive • King of Prussia, PA 19406 - 2657

610.272.6400

(refrigerators, washer/dryers and the like) and the other to update and recycle old computers. Both companies are headquartered in Minnesota. Together they will occupy more than 200,000 sq.ft. and employ approximately 180 people. We have sold an old, one story manufacturing and distribution building that the new owners are converting to offices and other community facilities with the help of bank financing of $1,500,000 for improvements. While the past 3 years have shown a significant decline in the number of transactions completed, the use of real estate has changed in a positive way. As the business climate changes, the requirements also change. This should help the real estate market and we look forward to experiencing an increase in transactions. The future looks promising and bright for the Mid-Atlantic Region. According to the SIOR Commercial Real Estate Index Commercial markets in the Northeast continued their steady march towards equilibrium during the first quarter, with an index value that reached 63.9. Markets in the South posted the second highest values for the period at 61.1, followed by the Midwest and West. Meanwhile, construction of new commercial space is still very limited. SIOR respondents indicate that development conditions make it a buyer’s market, where acquisition prices are lower than construction costs. With credit conditions only beginning to thaw, investment activity remained low in the first quarter. Respondents continue to report low levels of transactions in spite of current asset prices. Outlook Weighing the results of the SIOR Index during the first quarter 2011 against those from a year ago, it is evident that commercial markets have made noticeable strides. Office and industrial markets are working through lingering challenges, but the signals are pointing towards steady improvement. Sidney E. Gable, Sidney E. Gable Associates in King of Prussia, PA. ■

MAREjournal.com

Mid Atlantic Real Estate Journal — Fall Preview — September 23 - October 13, 2011 — 7D

MAREJ Features

EXECUTIVE WOMEN IN BUSINESS Mid Atlantic Real Estate Journal will publish our Ninth Annual Executive Women in Business Edition. Deadline: October 7, 2011 Publication: October 28, 2011 change and taking Executive Women are effecting chang ge an nd takin ing leadership roles in a traditionally t dit reached male dominated industry. Many havee reac cched hed the t top of the commercial real estate field, founding their own firms themselves in fi s or establishing e key positions with giants. wi the t industry in The October 28, 2011 edition will feature featuure these se women! Be a part of this very special issue highlighting your area of expertise; expertiise;; tell us u about your background and your unique success stories and how you yoou made mad ade it to the top in your field.

REAL ESTATE JOURNAL

Contact Linda Christman: Mid Atlantic Real Estate Journal T: 800-584-1062 x203 F: 781-871-5299

8D — September 23 - October 13, 2011 — Fall Preview — Mid

Atlantic Real Estate Journal

MAREjournal.com

INVESTMENT By Michael J. Fasano, Marcus & Millichap Real Estate Investment Services

Long-Term investment in New Jersey CRE presents opportunities

long road to recovery lies ahead for the state as tepid job growth and global economic uncertainty persists. Spearheaded by large lease signings, the northern portion of the s t a t e w i l l Michael J. Fasano post positive net absorption this year for the first time since 2008, demonstrating a modest recovery. This trend is most evident

in the Waterfront submarket, where financial companies looking to cut costs shuffle from Manhattan to Jersey City, where rents are nearly 25 percent lower. Fidelity, for example, relocated to 180,000 s/f at the Newport Office Center, helping reduce vacancy in the submarket to a statewide best of 8.7 percent. Furthermore, leasing activity—led by solid gains in the education and health services sector—will pick up in Southern New Jersey this year, allowing the region to absorb the most space in eight years.

Northern New Jersey will report the most transactions through year’s end, while an upswing in activity in Central New Jersey will emerge during the second half. REITs and private-equity firms will expand their portfolios in Northern New Jersey, buying institutional-grade, single-tenant assets leased by a top-rated corporate tenant in Hudson and Morris counties as a hedge against inflation. Best-in-class properties in prime office districts of Jersey City and core suburban markets will provide these risk-averse buyers with initial

returns in the mid-7-percent range. Local investors, meanwhile, will migrate toward Bergen and Union counties to purchase discounted Class B/C assets, where values have decreased over 10 percent in the past year. These investors will target multi-tenant properties trading below replacement cost to achieve higher upside. In Central New Jersey, well-capitalized investors will pay cash for distressed Class C product in good locations of Middlesex and Monmouth counties, including the New Brunswick and North GSP submarkets.

Expertise Locally, Trusted Nationally Making a Market from Wall Street to Main Street BELOW IS A SAMPLING OF OUR CURRENT EXCLUSIVE LISTINGS

North Bergen, NJ Multifamily 10 Units

Englewood, NJ Retail 4,805 SF

Hasbrouck Heights, NJ Retail 13,000 SF

New Brunswick, NJ Multifamily 29 Units

Perth Amboy, NJ Mixed Use 32,349 SF

New Brunswick, NJ Multifamily 65 Units

Lexington Avenue, NY Mixed Use 5,600 SF

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These seasoned investors will address deferred maintenance issues and re-tenant buildings to achieve maximum potential income. The summer’s roller-coaster economic ride and its subsequent rattling of the consumer’s psyche did not generally disrupt commercial property deal pipelines. Some larger transactions that had not gone under contract were pushed back a bit but are moving forward, but unlike various periods in 2008 and 2009, there is no panic on behalf of buyers and lenders. If anything, there is increasing anecdotal evidence that commercial property capital flows and transaction activity will increase in the next two years for three major reasons: 1) Historically low interest rates, locked in before the eventual improvement in property fundamentals, provide a major advantage for investors. 2) The stabilization, and in many cases, rise in values is enabling many owners to sell assets they otherwise could not dispose of in the past 18 months to 24 months. More properties that don’t fit a long-term portfolio strategy or the owners’ situation or needs can now be upgraded through a trade or simply sold. 3) Volatility in the stock market and financial markets in general bodes well for commercial real estate as a hard asset without the threat of over-building any time soon, and an asset class that has clearly reached the bottom in terms of fundamentals. Over the long term, New Jersey commercial real estate presents investors with excellent opportunities, especially when compared to the volatile stock market. The Dow Jones Industrial Average had the most 400point-plus swings in August on record, and September looks like it could be one of the worst months in equities markets globally. Commercial real estate has emerged as a competitive investment alternative with a 4 percent to 6 percent yield range for lower risk, high-quality assets; 6 percent to 7 percent yields on average properties; and 7.5 percent to 8.5 percent yields for lower-grade but not junk assets. Michael J. Fasano is VP and regional manager of the NJ office of Marcus & Millichap RE Investment Services. ■

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Mid Atlantic Real Estate Journal — Fall Preview — September 23 - October 13, 2011 — 9D

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10D — September 23 - October 13, 2011 — Fall Preview — Mid

Atlantic Real Estate Journal

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LENDING By Ernest DesRochers, NorthMarq

Commercial real estate lending and the human species

he English Essayist Charles Lamb once said “The human species, according to the best theory I can form of it, is composed of two distinct races, the men who borrow and the men who lend”! He also said wryly “I always ar- Ernest DesRochers rive late at the office, but I make up for it by leaving early”.

Those quotes made some 200 years ago have never been truer than they have been during 2011. After three years of little or no new lending activity the availability of commercial real estate loans increased in all lending sectors in 2011. According to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, second quarter 2011 commercial and multifamily mortgage loan originations were 107% higher than during the same period last year and 52% higher than the revised

figures for the first quarter of 2011. More importantly overall increase in commercial/multifamily lending activity during the second quarter of 2011 was driven by increases in originations for all property types. Health care, hotel, retail, and multi-family lending were all up over 100%. Office lending was up over 50 percent and industrial lending was up over 30%. Among investor types, loans for CMBS conduits saw an increase of 638 percent compared to the second quarter of 2010. There was also a 150% increase in loans for commercial bank port-

folios, an 87 percent increase in loans for life insurance companies, and a 58 percent increase in loans for Fannie Mae and Freddie Mac. Our own experience at NorthMarq reflects these statistics pretty closely. Our correspondent lending programs for the first half of the year were relatively disciplined as institutions focused on high quality underwriting using market rents and capitalization rates that reflected long term averages. These resulted in quality lower leveraged loans across all property types. Unlike the past three

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years money started to flow to high quality middle market locations like Austin, TX and Minneapolis, MN, and Phoenix, AZ. Core cities like New York, Boston, and Washington D.C. still benefited from lenders desire to be in secure high barrier to entry markets With the fourth quarter about to commence there is a large yellow caution light in the commercial real estate sector. While the first six months of 2011 was all good news, dark clouds began forming in July and August. Economic activity in the United States and globally has ground to a screeching halt exemplified by no new net jobs being added to the economy in August. The CMBS market has pulled back because of volatile conditions in the bond market. CMBS spreads widened out dramatically during August due to investor and rating agency concerns on new issues. In fact the investor pullback over the past 30 days looks like the new-issue market for CMBS is going to end 2011 like 2010, very quietly. In addition, risk taking by lenders is still measured in that they are increasingly worried about downside risk on account of lease rollover as the economy flirts with potentially another recession. For borrowers and lenders, the fourth quarter will provide for some interesting opportunities and challenges. It is very likely that lending volume will be down this in both the third and fourth quarters of 2011 as Lenders react to a slowing economy and become more selective. One may find folks arriving late and leaving early! Lenders have expanded their geographic reach this year especially in the multi-family sector as 80% sub 4.5% loans have been available throughout the year. For the balance of the commercial sector expanded geographic lending is evident. But so is the conservative underwriting reflecting the deleveraging of the economy that began three years ago. This continues to be the norm and will continue to be that way for the foreseeable future. Life companies generally will provide leverage of 70% and less with generic pricing for 5-10 year term mortgages ranging from 4.25% to 5.25% with amortization of 25 years and in some cases 30 years for newer product. Values this year continued on next page

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Mid Atlantic Real Estate Journal — Fall Preview — September 23 - October 13, 2011 — 11D

MANAGEMENT By Donna Hegarty, Advantage Building & Facility Services, LLC

Six steps to keeping your buildings in top condition

ecently, building owners and managers have noticed the convergence of two trends: increasing pressure for financial results coupled with a declining talent pool in building operating Donna Hegarty personnel. This combination makes it tougher for a property manager to keep a building in top shape and to see beyond daily details of operations in order to optimize the value of the physical asset for the owner. At Advantage, we know all about protecting and enhancing our client’s property—and we know some of the best ways to keep a building in tip-top shape. There are two main types of property maintenance: reactive maintenance and planned preventive maintenance. These are pretty self explanatory—and the more preventive maintenance you do, the less reactive maintenance you will likely have to do. These are some of the surefire ways to keep your building in great shape: 1. Inspections. When you begin, set a schedule of preventive maintenance and repairs. Remember, you need to stick to it. If you miss a day, you need to reschedule that event sooner rather than later. Do not let your facility go without muchneeded inspections. 2. Skilled Contractor. Hopefully, when you planned the building or the remodeling of your building, you began with a great foundation. Finding the right contractor and maintaining a good relationship with that contractor are key. If a significant building issue arises, outside of basic maintenance, which needs immediate attention, having that contractor

relationship will be of critical success to the resolution. 3. Janitorial. Next, invest in a stellar janitorial firm – one that has standard operating procedures in place, adheres to best practices, and is employee oriented. This company should be familiar with your property management cleaning philosophy; and also what the expectations are of tenants in order to ensure the cleaning specs are appropriate for the building, and that all parties are satisfied and feel they have good value in the relationship. The schedule should delineate daily, weekly

and monthly tasks, and include a monthly inspection. 4. Climate. Temperature is also critical to the success of your building and tenant base. Interview and verify references of your HVAC company. Composing specs pertaining to your building will certainly aid in reducing, if not eliminating, calls and emails about comfort. Scheduling filter changes, coil cleaning and overall preventive maintenance on your units will extend their life, assist in controlling temperature and comfort of the building, and just as important, control energy

6. Relationship. We all know this one, but it can’t be left unsaid. From the relationships with your tenants to the relationships with your vendors: treat people the way you like to be treated. When you are fair, honest, and straightforward in your partnerships, the dividends are returned a thousand-fold. For property maintenance, management or staffing, please remember Advantage Building & Facility Services, LLC. Donna Hegarty, vice president, Advantage Building & Facility Services, LLC. ■

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Commercial real estate lending continued from page 10D have been generally determined using direct capitalization with capitalization rates of 7% or greater for most non-CBD properties. There is a general sense that even though capitalization rates have compressed below 7% banks and insurance companies are reluctant to value properties beneath that except for core locations such as mid-town continued on page 13D

bills to some degree (!). 5. Bundled Service. Having one vendor for plumbing, one for electrical, a third for flooring, a fourth for…can be a challenge to schedule as well as to hold accountable. That’s why Advantage Building & Facility Services, LLC technicians are well-versed in all facets of building maintenance—from diagnosing problems to repairing them. Make sure your maintenance company provides a FULL range of services, from Electrical and Plumbing to Flag Pole Repair. That way, one call works for all.

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12D — September 23 - October 13, 2011 — Fall Preview — Mid

Atlantic Real Estate Journal

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NAI BROKER Including facility, property & construction management services

NAI DiLeo-Bram & Co. expands services to include property management

ISCATAWAY, NJ — While commercial real estate markets show signs of stabilizing and the hope that the cautious optimism that currently pervades the markets will eventually give way to Robert DiLeo confident optimism, NAI DiLeo-Bram & Co., a full service commercial real estate brokerage firm in Central New Jersey announces the expansion of

office

its corporate services with the formation of NAI DiLeo-Bram & Co. Property Management Services, a full service commercial property management company. According to Robert DiLeo, principal, “In 2010 we determined that an essential part of our strategic vision and business strategy was to be able to provide a full service commercial property management division to complement our brokerage services. As part of the NAI Global network, there is over 260 million s/f of commercial space under man-

industrial

retail

agement around the world. It was essential for us to be able to support NAI Global clients with a full range of services. We began to explore our options which were to either purchase an existing property management company or to hire the right experienced people to start our own. In early 2011, we began discussions with David Violette and Lawrence Arbore, two well-respected veterans in New Jersey’s commercial property management industry. Those discussions ultimately resulted in the formation of the new partnership, with Violette

land

serving as president and Arbore as a principal and leader of construction and property management services.” The new entity, NAI DiLeoBram & Co. Property Management Services provides capabilities that range from facility and property management – including accounting, financial services and project/ construction management services. The unique 25 year partnership that Violette and Arbore bring to the table with a proven track record in the industry gives NAI DiLeo-Bram immediate impact and influ-

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ence in the market. Combining these resources under one roof provides NAI DiLeo-Bram with a great competitive advantage to offer its clients the option of hiring one service provider for marketing and management services. Violette and Arbore have already assembled a Property management team of 16 professionals including administration, property accountants and both field and on-site managers. Violette reported that the new firm currently manages a combined total of over 7 million square feet of industrial, office and retail space in Northern and Central New Jersey. An additional 800,000 square feet of management space consisting of 17 buildings is currently under final negotiations. Violette added, “The current size of our portfolio immediately gives us the ability to negotiate favorable purchasing agreements with contractors and vendors of goods and services.” Arbore reported that the new firm is currently involved in construction management projects in excess of $10 million. DiLeo said, “Given the recent downturn in the economy, I believe that the formation of this new venture could not have come at more opportune time. As vacancy rates rise and rental rates fall, the need for experienced property managers becomes more critical for both owners and tenants alike. The execution of proper budgeting and cost effective approaches for increased efficiencies, asset protection and preservation is crucial. Many property owners today don’t have the internal resources, the wherewith all or the time to deal with the full scope of management services that include dealing with architects, engineers, construction bidding, construction management, permitting and tax appeals to effectively compete in this type of environment. Even empty buildings require attention to make sure that all the systems in place stay in working condition and don’t deteriorate from non-use and lack of attention. Additionally, it’s important that the property appearance is maintained to attract potential tenants.” According to Violette, “Tenants are looking for deals, but they also know that the cheapest deal is not always the best one. They need to know continued on page 15D

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Mid Atlantic Real Estate Journal — Fall Preview — September 23 - October 13, 2011 — 13D

NJ BROKER By Andrew Merin, Cushman & Wakefield, Inc.

Investment RE at Mid Year: Active, with substantial capital but not enough of the “Right Product” he first half of 2011 has seen significant capital allocated to real estate, but the market remains a “tale of two cities.” The absolute right product continues to attract a great deal of interest, but if an Andrew Merin asset is “slightly off,” there is no action for it. That trend spans all four primary property types – retail, office, industrial, and multi-family. Indeed, there continues to be a lack of that “absolute right product” coming to the market in almost every category. In retail, for example, few groceryanchored shopping centers are coming to the market in our region. Those properties that do are, in some instances, commanding capitalization rates below six. One trend we are seeing are owners cleaning their portfolios of non-grocery anchored secondary product. In the office market, class A buildings with long-term credit leases in solid locations are fetching big numbers, with cap rates generally between seven and eight, and in some cases even sub-seven. For value-add opportunities, the lack of activity of a year or two ago has given way to a trend where improving fundamentals are leading some people to look out on the risk curve. We have a major assignment in Stamford for an empty, 560,000 s/f, class A building, a substantial value-add play that is attracting a lot of interest. To date, in New Jersey, our group has done approximately $500 million of office sales so far this year, and the overall marketplace has seen more than $1 billion in total office sales in the state. The industrial sector, mean-

Commercial real estate lending

continued from page 11D Manhattan and Washington D.C. Banks will provide greater leverage though they still often insist on some percentage of recourse. Investors with financing needs will have to meet these challenges head-on in order to achieve desired financing levels. Ernest DesRochers senior vice president and regional manager of NorthMarq Capital, LLC. ■

while, has been very active. Much of that activity is in anticipation of the expansion of the Panama Canal, the raising of the Bayonne Bridge, and the fact that New Jersey is very much a port-oriented industrial state. On the fundamental side, the market is finally seeing the excess space in the New Jersey Turnpike Exit 7A and 8A submarkets, at heavily discounted rental rates, being absorbed. By the end of the year, the industrial sector is projected to be stabilized to the extent that the market may be seeing new speculative development in the second half of 2012.

There is a substantial amount of capital chasing industrial in New Jersey. One surprise has been deal execution that is 1015% higher in value than we anticipated, driven both by the surplus of money and the anticipation of market correction. Our group has done more than $250 million in this product to date this year, with cap rate execution overall in the six- to 7.5-range and one transaction in particular with a sub-six cap rate. Another trend for both office and industrial has been obsolete properties trading for their land value. For example, empty office

buildings have been trading in the $30-40 psf range, and industrial buildings in the $10-20 psf range. Basically, those buildings are tear-downs, typically for an alternative use—office for healthcare, as one example, and industrial for retail re-use because of the typically large fields, or older industrial either for ground-up multi-family or lofts in urban settings. And on the multi-family side, there has been a lot of activity, mostly for class B product with a scarcity of class A coming to market. There appears to be a focus by the institutions on joint ventures or forward sales

with developers, and there also appears to be activity toward future multi-family development to fill the void. Rents are rising, concessions are basically gone, and overall it is a very healthy sector. For our team in general, the first half of 2011 has been very active. We anticipate that our volume will approach $1 billion by the end of the summer, and $1.5 to $1.75 billion for the full year. Andrew Merin is vice chairman of Cushman & Wakefield, Inc. Metropolitan Area Capital Markets Group. ■

Metropolitan Area Capital Markets Group

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14D â&#x20AC;&#x201D; September 23 - October 13, 2011 â&#x20AC;&#x201D; Fall Preview â&#x20AC;&#x201D; Mid

Atlantic Real Estate Journal

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NNN RETAIL PROPERTIES By Stanley B. Wyrwicz, Calkain Companies

Rite Aidâ&#x20AC;&#x2122;s Trading Again

long with most net leased retail properties, the investment sales market for Rite Aids was virtually nonexistent in 2009. Beginning in 2010, numerous Rite Aids were sold, many of Stanley B. Wyrwicz which were originally sold in 2008 by Rite Aid Corporation (NYSE:RAD) as part of their corporate saleleaseback program, generally at cap rates in the 9% range. This

increase in Rite Aid investment sales activity tracks Rite Aidâ&#x20AC;&#x2122;s financial results which have stabilized. Standard & Poorâ&#x20AC;&#x2122;s has rated Rite Aidâ&#x20AC;&#x2122;s debt as a B- which is below investment grade. Rite Aid currently operates approximately 4,700 pharmacies in 31 states and the District of Columbia. In terms of locations, Rite Aid is the largest drugstore chain on the East Coast and the third largest in the country behind CVS Caremark Corporation and Walgreen Co, In 2007, Rite Aid substantially increased its presence in the Northeast by purchasing the Brooks/Eckerd

drugstore chain. Rite Aid leases a majority of these locations. Nationwide, there are several Rite Aid portfolios currently on the market. Calkain posted a blog/ white paper in GlobeSt. com discussing the fact that this is a good time to consider investing in a Rite Aid. We believe that the investor will obtain an above average yield commensurate with the marketâ&#x20AC;&#x2122;s view of Rite Aid. We have had discussions with several portfolio owners who are beginning to explore whether this may be a good time to market some of their properties. We are also starting to see interest in Rite Aid from net

lease investment companies. We recently obtained an exclusive listing for a Rite Aid located in Lynn, MA. This particular property has a relatively short remaining lease term which positions it differently than most of the other Rite Aids on the market but nonetheless is indicative of the fact that many are beginning to hit the street, and at attractive pricing. The utter lack of product on the market right now has no doubt influenced some of that activity however from a pricing perspective the cap rates weâ&#x20AC;&#x2122;re seeing on Rite Aid are about the same as they have been over the last

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few years. The large portfolios out there all tend to be somewhere in the low 9% range caprate wise. Itâ&#x20AC;&#x2122;ll be interesting to see what pricing trends begin to emerge as those deals get gobbled up. Calkain participated in the July ICSC New England Idea Exchange held in Boston. Our observation was that although attendance seemed to be less than in the mid 2000â&#x20AC;&#x2122;s, the discussion levels between owners, tenants, brokers and property managers were numerous. The â&#x20AC;&#x153;Retailers Runwayâ&#x20AC;? segment which features retailers who are expanding in New England included a mixture of established retailers, national retailers entering New England as well as start up retailers. Although no major deals were announced at the meeting, the sentiment that we observed from attendees was that business was slowly coming back. We were very pleased with the level of activity at our booth during the â&#x20AC;&#x153;Deal Makingâ&#x20AC;? session. Many visitors to our booth, consisting of developers and investment firms, were interested in further discussing our assessment of Rite Aid, both from a credit as well as a real estate investment perspective. We will be participating in the September Interface Net Lease Conference as well as the December ICSC National Conference, both to be held in New York City. We anticipate Rite Aid to be a major discussion topic amongst participants at both events. In summary, we believe that Rite Aid represents a unique opportunity. At a time when cap rates have compressed to near record levels and demand outstrips supply, Rite Aid deals offer a healthy return for what we believe to be a manageable risk. Ultimately though, Rite Aid must be viewed as a real estate as opposed to a credit play. Consequently, real estate fundamentals apply. Being able to walk a property and working with a local broker who knows the market a given store is in, is critical. Buying one site-unseen on the other side of the country is probably not advisable. Rite Aid seems to have turned a corner as an enterprise, and seriously looking at Rite Aid now might position investors for significant upside in the not too distant future. Stanley B. Wyrwicz is senior managing director at Calkain Companies, Inc. â&#x2013;

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Mid Atlantic Real Estate Journal — Fall Preview — September 23 - October 13, 2011 — 15D

SBA FINANCING By Rebecca Machinga, CPA, WithumSmith+Brown, PC

SBA financing opportunities for real estate

ome experts say the commercial real estate market is beginning to bounce back. Others say that it will get worse before it gets better. Those in the trenches, depending on their financ i a l s t a - Rebecca Machinga bility and how they managed operations when the market turned, are assessing how they will refinance commercial mortgages that are coming due or take advantage of the market to purchase additional real estate. A new Small Business Administration program for purchasing property, the 504 commercial mortgage program, is available to help foster economic development within communities through Certified Development Companies (CDCs). CDCs are private, nonprofit corporations designed to contribute to community economic development. This long-term financing program provides small businesses with fixed-rate financing to acquire property and equipment for expansion or modernization. Proceeds from 504 loans must be used for property/ equipment projects, including the purchase of land, existing

NAI DiLeo-Bram & Company expands services . . . continued from page 12D that their landlord will be responsive and will properly maintain the property for their comfort and security to effectively and efficiently operate their own businesses. We demand a model building profile for each project that utilizes state of the art management and financial know how to give ownership and tenants the best value.” Violette concluded that, “working hand in hand with the NAI DiLeo-Bram brokerage services team and utilizing the resources of the NAI Global Asset/ Property Management Services Network has provided us with the platform needed to successfully operate a first class firm in New Jersey. ■

buildings or improvements (including grading, street improvements, utilities, parking lots and landscaping), the construction of new facilities or modernizing/renovating/ converting existing facilities, or the purchase of long-term machinery and equipment. Proceeds from 504 loans cannot be used for working capital or inventory, consolidating or repaying debt or refinancing (there are other SBA loans designed for these purposes). To be eligible for this program, a business must be for-profit and

be within the size standards set by the SBA. Loans cannot be made to businesses engaged in speculation or investment in rental real estate - this program is meant for operating businesses who wish to invest in owner-occupied real estate. A typical project will include a private sector loan with a senior lien for up to 50 percent of the project, a CDC loan (backed by a 100 percent SBA-guaranteed loan) with a junior lien for up to 40 percent of the project and a 10 percent equity contribution from the

borrower. The maximum SBA loan is $1.5M if a company meets the job creation criteria or a community development goal. Generally, the business must create or retain one job for every $65K provided by the SBA, except for small manufacturers which have a $100K job creation or retention goal, as noted below. The maximum SBA loan is $2M when meeting a public policy goal. These goals include business district revitalization, export expansion, expansion

of minority business development, rural development, increasing productivity/competitiveness, restructuring due to federally mandated standards/policies, changes necessitated by federal budget cutbacks, expansion of small businesses owned/controlled by veterans (especially service-disabled veterans) and expansion of small businesses owned/controlled by women. Rebecca Machinga, CPA is practice leader of Real Estate Services Group of WithumSmith+Brown, PC. ■

BE IN A POSITION OF STRENGTH Our philosophy is simple. The client relationship means everything. Our commitment to quality is known throughout the industry and is inherent in all that we do. We provide effective guidance and solutions to real estate owners and developers, builders, property managers and investors. We will be with you from inception of the project to the ﬁnal sale, proactively helping you to gain the maximum value from your investment.

Rebecca Machinga, CPA, Partner, Practice Leader Real Estate Services Group 609.520.1188

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16D — September 23 - October 13, 2011 — Fall Preview — Mid

Atlantic Real Estate Journal

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FALL PREVIEW civil engineering land surveying land planning environmental science forest management

IT’S NOT EASY BEING GREEN

www.landdimensions.com

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Phone: 856/307-7800

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Mid Atlantic Real Estate Journal — Fall Preview — September 23 - October 13, 2011 — 17D

FALL PREVIEW

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D Back Cover — September 23 - October 13, 2011 — Fall Preview — Mid

Atlantic Real Estate Journal

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AT THE END OF THE DAY, YOU WANT RESULTS. SO THAT’S HOW WE BEGIN EACH DAY.

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