4-22-11

Real Estate Journal Vol. 23, Issue 7

Inside:

April 22 - May 12, 2011

Sections

the most comprehensive source for commercial real estate news

Spring Preview

Mid Atlantic........................................................Section A DelMarVa...............................................................................A Shopping Centers.......................................... Section B

Donna Bartynski

Arthur Campbell

Jonathan Glick

Libby Kavoulakis

Rebecca Machinga

Scott Mertz

Jeffrey Walters

Mark Warner

Brian Whitmer

Contractors, Owners & Managers......... Section C Spring Preview................................................ Section D

Spotlights / Features Calendar of Events.........................................................5A Auction Pages.............................................................7-9A People on the Move.....................................................10A Business Card Directory..........................................16A Washington, D.C............................................................14A Vegas ReCon ICSC Convention............. Esection B Construction Law and Cost Over Runs..........7-14C

Columnists Dave Wood.........................................................................2A

Industry Leaders give current state of the market ..........Section D

Shopping Centers Project of the Month

Next Issue May 13, 2011 • Mid Atlantic • NJAA Expo • New Jersey featuring Central New Jersey • Pennsylvania featuring Projects/Building Services • Green Awareness 4 sections, 92 pages

The Village at Odenton Station

The Dolben Company develops mixed-use development consisting of 57,000 s/f of retail and 235 apartment homes ....................................... 12-13B

A Inside Cover — April 22 - May 12, 2011 — Mid

Atlantic Real Estate Journal

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3RD ANNUAL GREEN BUILDINGS SUMMIT 2011 Hosted by

EAL

ESTATE JOURNAL

Thursday June 2 Trenton Marriott, New Jersey

U.S. GREEN BUILDING COUNCIL - NEW JERSEY Mid Atlantic Real Estate Journal (MAREJ) in conjunction with United States Green Building Council-New Jersey (USGBC-NJ) is pleased to announce our 3rd ANNUAL GREEN BUILDINGS SUMMIT‘11.

REGISTRATION NOW OPEN The event will provide the perfect platform to meet face-to-face and Network With: Commercial Developers, Property Owners, Redevelopment Experts, Contractors, Architects, Engineers, Attorneys, Consultants, Environmental Professionals, Multi-Family Investors, Urban Planners, Local and State Government Officials and Economic Development Agencies and more!

Thursday, June 02, 2011, 7:30 AM - 5:15 PM at The Trenton Marriott, Trenton NJ CONFERENCE TOPICS TO INCLUDE: • ANALYZING THE CURRENT STATISTICS: A DISCUSSION ON GOING GREEN • BUILDING GREEN: CREATING A “NET-ZERO ENERGY” OR “CARBON-NEUTRAL” STRUCTURE •THE ECONOMIC ADVANTAGES OF GREEN BUILDINGS •NEW JERSEY’S FINANCIAL SUPPORT FOR IMPROVING BUILDING ENERGY. •EMPLOYING RESOURCE-EFFICIENT MATERIALS TO ACHIEVE COMFORTABLE, SAFE AND SUSTAINABLE BUILDINGS •GOVERNMENT LEGISLATION FOR ECO-FRIENDLY BUILDING CONSTRUCTION AFTERNOON WORKSHOPS: Workshop#1 USGBC-NJ WORKSHOP & EXAM PREP: LEED® OVERVIEW AND HOW TO PREP FOR LEED® GREEN ASSOCIATE CREDENTIAL. (4 Hours)( 4 AIA Learning Units) Workshop#2 DESIGNING BUILDINGS FOR ENERGY EFFICIENCY. CORPORATE SUSTAINABILITY- A VIEW FROM THE GREEN OFFICE. (Two - 2 Hour Sessions) (Total of 4 AIA Learning Units) Sponsorship, Speakers & Exhibiting Opportunities Are Still Available CALL LINDA CHRISTMAN 800-584-1062 X 203 or EMAIL lchristman@marejournal.com REGISTER AT WWW.MAREJOURNAL.COM Thank you to the following sponsors: ůĞĂŶƚĞĐŚ >Ăǁ WĂƌƚŶĞƌƐ

͞ ĂƚĞƌŝŶŐ ƚŽ ƚŚĞ ƵŶŝƋƵĞ ůĞŐĂů ŶĞĞĚƐ ŽĨ ƌĞŶĞǁĂďůĞ ĞŶĞƌŐLJ ĂŶĚ ĐůĞĂŶƚĞĐŚ ĐŽŵƉĂŶŝĞƐ͟

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Mid Atlantic Real Estate Journal — April 22 - May 12, 2011 — 1A

Worst Snowfall In 51 Years Crushes & Shreds Roofs Over Entire East Coast!

After the meltdown the demand for roofing will be higher than ever — No question about itHeavy rains, sleet and extreme snow falls have seriously damaged roofing on commercial and residential buildings up and down the East Coast of our great country. Each severe weather event stresses, and damages, or causes failure of that physical insurance policy we all call a roof. Make no mistake this will cause a big mess and long waiting lines to fix or replace all those roofs. Extra heavy on the replacement . . .

Hate waiting in line?

The stress of getting our lives and businesses back to normal is very much dependant on the roof over our heads. Our lives and businssses have been greatly affected and the economic losses downtime to both are staggering. The longer you wait the worse it will get. Act now to secure your place near the frontline before the waiting list gets too long.

How many more times?

In this tough economy, no one wants to have to spend money on roof repair or replacement. We would rather take a vacation to somewhere warmer…Right?

But we know we all have to face the truth sooner or later, don’t we? We all know when the time comes there’s no avoiding it anymore.

Once again the disruption of our lives and businesses are at stake. So the question is: How many more times do you want to do this?

Band-Aids are for finger cuts!

Throwing good money after bad roofing is a sure way guarantee you’ll be going through the hassle, frustration, and loss of business all over again! Very likely sooner than you think. Ask yourself: can you afford to do this? Be sure to weigh the long term costs of “repair only” now, verses “replace it” and be done. It is critically important you work with a company that will tell it to you straight and help you with your insurance company. To make it easier for you, we accept insurance payments too.

Two ways to get going: 1) Contact Weather Tight Systems today by visiting our corporate website at www.weathertightroof.com 2) Call us directly for faster service at 877-893-9200. We will promptly set up the free video evaluation and consultation of up to three commercial roofs at a time. Don’t wait – the snow will melt and the clock is ticking!

4 Layers of Protection NO LEAKS EVER! Highest Wind Uplift System Available at - 495psf

Systems, Inc. 17 Fuller Street Totowa, NJ 07512

Call Mike Anthony - Toll Free www.weathertightroof.com

2A — April 22 - May 12, 2011 — Mid

Atlantic Real Estate Journal

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Mid Atlantic Real Estate Journal

They wrote the policy.

Mid Atlantic REAL ESTATE JOURNAL Publisher ............................................................................Linda Christman Co-Publisher .........................................................................Joe Christman Associate Publisher ...........................................................Dianna Mallozzi

We make sure they write the check.

Associate Publisher ............................................................ Elaine Fanning Senior Editor/Graphic Artist ................................................ Karen Vachon Office Manager ...................................................................Joanne Gavaza Editorial Consultant ............................................................. Ben Summers Guest Columnist ...................................................................... Dave Wood

By Dave Wood

“Award-Winning Ideas: Perception is reality”

Contributing Columnist .......... Casey H. Kenton, CCIM, Sperry Van Ness – Miller and Michael Regina, BIG SKY Enterprises Mid Atlantic REAL ESTATE JOURNAL ~ Published Semi-Monthly P.O. Box 26 Accord, MA 02018 (Mail) 312 Market Street, Rockland, MA 02370 (Overnight)

M. MILLER & SON Public Adjusters

Since 1960 1211 Liberty Ave., Hillside, NJ 07205 ● Tel: 908-355-4800 adjuster@mmillerson.com ● www.mmillerson.com

Commercial Real Estate is COMING BACK & it's COMING BACK

Market your Green Building Products and Services in the Green Awareness Section of the Mid Atlantic Real Estate Journal.

The Green Awareness Section publishes monthly and is devoted 100% to the commercial/industrial green building industry informing the industry’s most powerful professionals with the information they need.

Reach thousands of readers with one of our many marketing programs available to you designed speci¿cally to ¿t your advertising budget.

For more information please call Joe Christman today and let’s talk!

800-584-1062 x 202 If you prefer email: jchristman@marejournal.com

Submit Green News and Press Releases to: greennews@marejournal.com Mid Atlantic Real Estate Journal is celebrating their 9th year of providing readers with accurate, unbiased news covering every facet of the commercial real estate industry.

Periodicals postage paid at Rockland, Massachusetts and additional mailing offices

W

hat other people think of you and your business is often even more important than what you know to be the truth. For example, if the quality of your brochures, other printed materials and website lead people to conclude that yours is a $20 million company, rather than the $7 million firm you really are, so much the better. That’s their assumption; you’ve done nothing to foster it except put your best foot forward.

And if, based on their assumption, they in turn consider you for larger and/or more prestigious projects, that’s great.

If you’re realistically qualified and can do the job, pretty soon you will be at $20 million.

This concept of perception equaling reality really hit home for me in 1993 when my newsletter, Words from Woody, won the first of three Construction Writers Association T. Randolph Russell Awards for Newsletters. Though I knew myself to be the same writer, publicist and consultant the day after the announcement as I was the day before, the rest of the world seemed to think otherwise.

Doors formerly closed suddenly opened, people who never returned my calls before began calling me, and I began picking up new clients from all across the country (who had become aware of me because of the award). I confess to having promoted the heck out of the honor and to being proud of the accomplishment, but to be honest, the overall response was

Postmaster send address change to: Mid Atlantic Real Estate Journal, P.O. Box 26, Accord, MA 02018 USPS #22-358 | Vol. 23 Issue 8 Subscription rates: $99 - one year, $198 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Toll-Free: (800) 584-1062 | MA: (781) 871-5298 | Fax: (781) 871-5299 www.marejournal.com The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal

way out of proportion to what I had achieved. (But far be it from me to complain!)

To take this notion a step further, several months later I received somewhat frantic calls from two contractor clients, each in a tizzy because the deadline for the AGC Massachusetts Builder Awards were five days away and neither had done anything about the submissions for their projects.

Three midnight-oil-burning nights later, each was armed with a first class entry.

These two successful contractors, though arguably a bit lacking in their planning, recognized the value of awards competition. Though obviously there are no guarantees of winning, they clearly understood that by not playing in the game they were assured of not winning.

How many times over the course of a year do you have an announcement of some award competition cross your desk?

At least three or four, I’ll bet.

And, if you’re like most people, you’ll look it over, think to yourself, “Wouldn’t it be great

to win this?” then stick it on one of the piles on your desk for “future follow-up.” By the time it surfaces again, either the deadline’s already passed or you’re so busy with other things you toss it out, figuring you haven’t got the time to get it done.

That’s wonderful for those of us who do enter—less competition! But you’re really missing the boat here. The potential value of participating, even if you don’t win, is enormous.

Here’s why: • Putting together your submission requires organizing the information about a project. In the event you don’t win, you’re still left with all the essential elements of a promotional piece that can be used as part of your firm’s marketing effort.

• Submitting an award entry tells the other members of your team (owner, architect, contractor, engineer, subcontractors, suppliers, developer, broker, banker, etc.) that you’re proud of their contribution, that you think they should be recognized for it, and that the project is one continued on page 6A

MAREjournal.com

Mid Atlantic Real Estate Journal — April 22 - May 12, 2011 — 3A

MID ATLANTIC REAL ESTATE JOURNAL Providing financing to Hartz Mountain entity

CBRE procures $85 million mortgage refinancing

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ECAUCUS, NJ — CB Richard Ellis Capital Markets Debt & Equity Finance group procured an $85 million permanent mortgage refinance of a five-asset portfolio within the Harmon Meadow section of the Hudson Meadowlands.

CBRE’s James Gunning, Donna Falzarano and Michael Sherman secured the permanent mortgage, which has a 7-yr term, 25-yr amortization and low, Libor-based rate.

PB Capital, a subsidiary of German-based Post Bank, provided the financing to Harmon Meadow Plaza, Inc. and 400 Plaza Dr., Inc., entities of Hartz Mountain Industries.

The mortgage loan was secured by 828,000 s/f of mixed-use space located within the Harmon Meadow section of the Hudson Meadowlands.

100 Plaza Dr., a 264,973 s/f office building. The space is equipped with a full-service cafeteria, spacious atrium lobby, multi-zone heating and air-cooling, stand-by generator for elevators and emergency lights.

300 Plaza Dr., a senior ground position for a 161-key Holiday Inn. 400 Plaza Dr., Atrium II, a 255,000 s/f, multi-tenant office building, home to Hartz Mountain Industries corporate headquarters.

600 Plaza Dr., a 140,000 s/f

Whether you are a company looking for space or seeking to dispose of or acquire, build or design property, look to the Mid Atlantic Real Estate Journal first!

Call

1-800-584-1062/781-871-5298 300 Plaza Drive mixed-use asset comprised of 700 Plaza Dr., a 27,000 s/f retail stores and restaurants. data center. ■

APARTMENT & COMMERCIAL LOANS ARE NOW AVAILABLE AT GREAT TERMS ARRANGED BY

FORMAN MORTGAGE CO. APARTMENT & COMMERCIAL FINANCING SPECIALISTS FOR OVER 50 YEARS

Apartments 4.25% - 5% * Commercial 4.50% - 5.25% LOANS TO 75% LTV OR 100+% with COLLATERAL AMORTIZATION TO 30 YEARS * RENEWALS AT NO COST MOST LOANS - NON RECOURSE NO PRE PAYMENT PENALTY PERIODS

Kaplin Stewart’s Broseman presents at seminar BLUE BELL, PA — George Broseman, principal in the Land Use, Zoning & Development group of Kaplin Stewart in Blue Bell was a presenter at a seminar for the National Business Institute.

George Broseman Broseman spoke about “challenging or appealing an administrative zoning decision, adoption and amendment of zoning ordinance and map, and impact fees. In his practice, Broseman represents developers, homebuilders, homeowners, landowners, educational institutions, religious institutions, hospitals, and businesses in land use cases throughout the Commonwealth of PA. ■

Mid Atlantic REAL ESTATE JOURNAL is published to serve all companies and individuals in the commercial real estate industry.

FORMAN MORTGAGE CO. NJ’s LARGEST INDIVIDUALLY OWNED COMMERCIAL MORTGAGE BROKER

HAS ARRANGED FINANCING FOR THESE RECENT LOANS: • $3,900,000 Apartment & Offices - Bergen County - 4.50% • $3,800,000 Apartments - Atlantic County - 4.35% • $500,000 Apartment - Monmouth County - 5.0% • $3,200,000 Apartments - Union County - 4.50% • $4,000,00 Retail - Pennsylvania - 5.25% ( 25% Personal Liability)

FORMAN MORTGAGE CO. THE APARTMENT & COMMERCIAL FINANCING SPECIALISTS

PHONE (973) 625-7982 FAX (973) 625-7985 EMAIL paul@formanmortgage.com TOTAL LOANS PERSONALLY PLACED EXCEED $1,500,000,000 March. 11

All loans subject to final lender approval.

4A — April 22 - May 12, 2011 — Mid

Atlantic Real Estate Journal

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MID ATLANTIC REAL ESTATE JOURNAL Also handles $24.68m loan for The Park Tower Apt.

Cooper-Horowitz arranges $36 million in financing

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EW YORK — CooperHorolwitz, Inc. recently arranged financing on the following deals: 607-609 Hudson Street, NY, NY: Renovation to Luxury Condominiums. The loan was for $36,000,000.

Mayfair Shopping Center, Frankford Ave., Philadelphia, PA: 115,000 s/f shopping center.

The loan was for $15,000,000 690 Oxford Street, Chula Vista, CA: A 77,000 square foot medical office building. The loan was for $6,000,000.

Richard T. Horowitz represented Cooper-Horowitz, Inc.

on the above three transactions.

The Park Tower Apartments, Hammond Drive, Atlanta, GA: 18-story Luxury apartment building. The loan was for $24,680,000.

412-414 East 9th Street, NY, NY: 5-story apartment building with retail space. The loan was for $4,685,000.

Richard T. Horowitz and Jayson N. Schwartz represented the firm on the above two transactions. ■ The Park Tower Apartments

ATTENTION: Architects, Engineers, General Contractors & Construction Contractors

Promote your company, retail projects and expertise in MAREJ’s annual

Retail Architecture, Construction & Engineering Spotlight Issue Date: May 27th Deadline: May 10th Contact Elaine Fanning 800-584-1062 ext. 212 efanning@marejournal.com

Rockford Capital Ptrs. closes initial round of funding for $30m RE vehicle DELAWARE — Rockford Capital Partners through its affiliated fund, Rockford Real Estate Fund I, LP, has closed on its initial round of investment capital.

Rockford Capital Partners is a private investment firm concentrating on the acquisition and management of small- to mid-size commercial real estate assets with a focus on opportunistic / value-add properties in the mid-Atlantic U.S. Principals named in the filing are Doug Motley, Nick Hammonds, Greg Ellis, and David Shepherd.

Motley and Hammonds are founders of Rockford Capital Partners and principals at Broadpoint Consulting Group, a real estate and management consulting firm.

Ellis is a principal at Patterson-Woods & Associates, one of the largest commercial realestate brokerages in Delaware, and specializes in investment and corporate property sales and leasing for office, industrial, and retail properties.

Shepherd is a founder and principal of Monadnock Securities, a FINRA registered brokerdealer with offices in Philadelphia and Wilmington. ■

Colliers arranges 8,183 s/f renewal CLINTON, NJ — Colliers International New Jersey has arranged an 8,183 s/f renewal on behalf of Maser Consulting at 53 Frontage Rd. Michael Tesser, a senior managing director with Colliers represented the tenant. Landlord, Crown Props., was represented

by Bob Ryan of CB Richard Ellis in the transaction. ■

MAREjournal.com

Mid Atlantic Real Estate Journal — April 22 - May 12, 2011 — 5A

COMMERCIAL REAL ESTATE ORGANIZATIONS’

EVENTS CALENDAR APRIL 25 – IROEBA Event: 1st Annual Industrial Developer’s & Investors Night Time: 5:00 PM Location: Renaissance Woodbridge Hotel Address/City: Iselin, NJ Cost: $90 Members $105 Nonmembers Email: annviolette@gmail.com www.ioreba.com APRIL 26 – The Commercial Real Estate School of TriState REALTORS® Commercial Alliance Event: Strategic Communication in Client Representation, Negotiations, the Office and Beyond Course Time: 1:45 PM - 6:30 PM Location: Two Commerce Square Address/City: 2001 Market Street— Conference Center, 2nd Floor Philadelphia, PA Registration: Connie Lojewski at clojewski@thorpreed.com P: 215-640-8543 APRIL 26 – CIANJ Event: Inaugural Manufacturing Roundtable Meeting Time: 8:00 AM – 9:30 AM Location: Hilton Hasbrouck Heights Address/City: 650 Terrace Ave Hasbrouck Heights, NJ Cost: $35 Members $75 Nonmembers P: 201-368-2100 Email: sweiner@cianj.org www.cianj.org APRIL 26 – ULI BALTIMORE Event: Young Leader’s Lunch & Learn: Building the Next Baltimore Location: City Arts Building Address/City: 440 E. Oliver St. Baltimore, MD P: 800-321-5011 www.baltimore.uli.org APRIL 26 – ULI PHILADELPHIA Event: YLG – Social Media & Engagement-Strategies & Case Studies Roundtable Time: 12:00 PM – 1:30 PM Location: Langan Engineering & Environmental Serv.

Address/City: 30 S. 17th St., 13th Fl., Philadelphia, PA P: 800-321-5011 www.philadelphia.uli.org APRIL 27 – CREW LEHIGH VALLEY Event: Membership & Guest Breakfast Time: 8:00 AM - 9:30 AM Location: K & H Window Treatments Address/City: 1110 Trexlertown Rd. Trexlertown, PA Cost: Free P: 484-951-4081 Email: dr.glower@gmail.com www.crewlehighvalley.org

APRIL 27 – AIA PHILADELPHIA Event: Annual Meeting Time: 4:00 PM – 7:30 PM Location: Center for Architecture Address/City: 1218 Arch St. Philadelphia, PA Cost: Members Free P: 215-569-3186 Email: pat@aiaphila.org www.aiaphiladelphia.org

MAY 3 – BOMA PHILADELPHIA Event: Lessons Learned in an Emergency Time: 8:30 AM – 10:30 AM Location: PNC Bank Building Address/City: 1600 Market St., 3rd Fl. Philadelphia, PA Cost: Members Free $25 Nonmembers P: 215-567-7775 www.bomaphila.com

MAY 11 – CIRC DE Event: Annual Meeting & Luncheon Time: 11:30 AM – 1:30 PM Location: Clarion – The Belle Address/City: 1612 N. DuPont Hwy., New Castle, DE Cost: $30 Members $40 Nonmembers P: 302-633-1705 Email: janet@circdelaware.org www.circdelaware.org

APRIL 28 – ABC BALTIMORE Event: Awards of Excellence Time: 6:00 PM – 9:00 PM Location: Westin – BWI Airport Address/City: 1110 Old Elkridge Landing Rd., Linthicum, MD Cost: $90 Email: dhardy@abcbaltimore.org www.abcbaltimore.com

MAY 4 – CREW LEHIGH VALLEY Event: From Brownfield to Green Car Dealership Time: 11:30 AM – 1:00 PM Location: Bennett Toyota Dealership Address/City: 2121 Lehigh St. Allentown, PA Cost: $15 Members $25 Guests www.crewlehighvalley.org

MAY 11 – SMPS PHILADELPHIA Event: Indispensable Skills for Creating Your Brightest Future Location: Wallace Roberts & Todd Address/City: 1700 Market St., Ste. 28 Philadelphia, PA Cost: $35 Members $65 Nonmembers www.smpsphiladelphia.org

MAY 4 – ICREW NJ Event: 10th Annual Golf Classic Location: Fiddler’s Elbow Country Club Address/City: Bedminster, PA P: 609-585-6871 Email: jgerow@icrewnj.org www.icrewnj.org

MAY 12 – NAIOP NJ Event: 2011 Commercial Real Estate Awards Location: Palace at Somerset Park Address/City: 333 Davidson Ave. Somerset, NJ Cost: $475 Members $525 Nonmembers www.naiopnj.org

APRIL 28 – SMPS DC Event: Principles Roundtable: The Future of the I-270 Bio-Science & Tech Corridor Time: 8:00 AM – 10:00 AM Location: North Bethesda Marriott & Conf. Center Address/City: 5701 Marinelli Rd. Bethesda, MD Cost: $65 Members $85 Nonmembers P: 703-349-6001 www.smpsdc.org APRIL 28 – DVGBC Event: Best of Greenbuild & Sustainable Design Competition Time: 4:00 PM – 8:00 PM Location: Federal Reserve Bank of Philadelphia Address/City: 121 North 7th St. Philadelphia, PA P: 215-399-5792 Email: hblakesless@dvgbc.org www.dvgbc.org APRIL 28 – USGBC NJ Event: How to Use Federal & State Tax Incentives to Help Sell Your Green Project Time: 5:00 PM – 9:00 PM Location: Princeton Triumph Brewing Co. Address/City: 138 Nassau St. Princeton, NJ Cost: $40 Members $50 Nonmembers P: 973-290-0013 Email: info@usgbcnj.org www.usgbcnj.org MAY 2 – AIA PHILADELPHIA Event: 2011 Golf Outing Time: 10:30 AM Location: Huntingdon Valley Country Club Address/City: 2295 Country Club Rd. Huntingdon Valley, PA P: 215-569-3186 Email: pat@aiaphila.org www.aiaphiladelphia.org

MAY 4 – SMPS PITTSBURGH Event: SMPS Luncheon Series with Secretary of Transportation Barry Schoch Time: 11:30 AM – 1:30 PM Location: Engineers Society of Western PA Address/City: 337 4th Ave. Pittsburgh, PA www.smpspittsburgh.org MAY 5 – SMPS CENTRAL PA Event: Golf “Fore” Business – Golf Lessons Time: 7:00 PM – 8:00 PM Location: Bumble Bee Hollow-East Address/City: 4201 Linglestown Rd. Harrisburg, PA Cost: $50 Members $100 Nonmembers www.smpscentralpa.org MAY 6 – ABC EASTERN PA Event: Bucks & Montgomery Counties Legislative Breakfast Time: 9:00 AM Location: Zoto’s Diner Address/City: 1100 Bethlehem Pike Line Lexington, PA Cost: Members Free P: 610-279-6666 Email: jpomraning@abceastpa.org www.abceastpa.org MAY 10 – TRISTATE Event: Green Initiatives: Issues of Sustainability in Commercial Real Estate Time: 9:00 AM – 11:30 AM Location: Spring Mill Corp. Cntr. Auditorium Address/City: 1100 E. Hector St. Conshohocken, PA Cost: $30 Members $45 Nonmembers P: 610-2389950 Email: eilliano@tristaterca.com www.tristatecres.com

MAY 26 – MBA Event: Annual Past Presidents’ & Inaugural Dinner Time: 5:30 PM – 8:30 PM Location: The Union League of Philadelphia-Grant Room Address/City: 140 S. Broad St. Philadelphia, PA Cost: $75 Members $85 Nonmembers P: 888-739-9991 Email: mcedeno@mba-pa.org www.mbagp.org MAY 26 – ABC EASTERN PA Event: Meet the Generals Time: 3:00 PM – 7:00 PM Location: Holiday Inn Lehigh Valley Address/City: 7736 Adrienne Dr., Breinigsville, PA Cost: $85 Members P: 610-279-6666 Email jpomraning@ abceastpa.org www.abceastpa.org JUNE 13 – ABC EASTERN PA Event: Spring Golf Outing Time: 9:00 AM Location: Philadelphia Cricket Club Address/City: 6025 W. Valley Green Rd. Flourtown, PA P: 610-279-6666 Email: jpomraning@abceastpa.org www.abceastpa.org JUNE 20 – TRISTATE Event: 15th Annual Golf Outing Time: 11:30 AM Location: Green Valley Country Club Address/City: 201 West Ridge Pike Lafayette Hill, PA Registration: mwinkler@tristaterca.com P: 610-238-9950

6A — April 22 - May 12, 2011 — Mid

Atlantic Real Estate Journal

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MID ATLANTIC REAL ESTATE JOURNAL An effort to attract foreign investment

BEP participates in Foreign Trade Mission

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EADING, PA — In an effort to attract foreign investment to the Greater Reading region, Berks Economic Partnership (BEP) has partnered with the York County Economic Development Corporation, National Ex- Deb Heffner port, U.S. Foreign Direct Investment, Commonwealth of Pennsylvania, Economic

Development Administration, International Trade Administration, and over 23 other United States partners. The group of partners attened HANNOVER MESSE 2011, the world’s largest industrial technology showcase in Hannover, Germany.

Deb Heffner, Economic Development Coordinator, BEP, traveled to Hannover as the Berks Economic Partnership and Greater Reading Representative. Heffner said, “HANNOVER MESSE is a huge draw for the world’s top

Advanced Manufacturing companies, including many poised for global expansion. This partnership presents a unique opportunity to leverage the influence of the U.S. Department of Commerce.”

FTZ 147, which covers the nine county region of the Smart Market. FTZ 147 can benefit companies who wish to defer duties and merchandise processing fees. There are companies within Foreign Trade Zones who realize an annual savings of over $2 million per year. ■

Schonbraun McCann Group adopts FTI Consulting brand NEW YORK, NY — FTI Consulting, Inc., the global business advisory firm announced that its real estate and construction practices, FTI Schonbraun M c C a n n Group and FTI Brewer, will adopt Bruce the FTI ConSchonbraun sulting brand with immediate effect.

The move follows the firm’s recently announced “one brand” strategy, in which FTI Consulting will convert substantially all of its acquired firms to the FTI Consulting brand.

Established in 1973, FTI Schonbraun McCann Group is

one of the largest national real estate and finance consulting firms in the United States.

Since the acquisition of Schonbraun McCann Group

by FTI Consulting in March 2008, the group has operated as the Real Estate Division of FTI Consulting within the company’s Corporate Finance/ Restructuring business segment.

FTI Brewer is one of the leading providers of commercial and dispute resolution services to the construction and engineering sectors and will operate within the global Construction Solutions Team within FTI Consulting. The move unifies FTI Brewer ’s heritage and experience in construction and engineering with the Construc-

tion Solutions Team at FTI Consulting.

Bruce Schonbraun, senior managing director at FTI Consulting, said: “Our real estate practice has vastly expanded its global reach, and we now have a presence in 50 major business centers worldwide. Our business has complemented the company’s corporate finance/restructuring business segment well, allowing us to offer our unsurpassed real estate advisory services to a vast range of clients while collaborating across the various segments of FTI Consulting. The adoption of the FTI Consulting brand allows us to further strengthen our business under a single entity and explore exciting new opportunities.” ■

Binswanger reps Lexington Bristol L.P. in 241,977 s/f lease BRISTOL, PA — Binswanger’s client, Lexington Bristol L.P., an affiliate of Lexington Realty Trust, entered into a 15-year lease with an A-rated tenant for its 241,977 s/f warehouse/office facility located at 250 Rittenhouse Circle.

The property is located in Keystone Park. The site is designated as a Keystone Opportunity Improvement Zone allowing for tax relief and a Bucks County Enterprise Zone which provides local businesses with technical, financial, and infrastructure assistance.

Frank Cullen, president, Realty Group East and Chris Pennington for Binswanger Company, represented Lexington Bristol L.P. and Michael Mullen and Pat Green Executive vice president from CB Richard Ellis represented the tenant. ■

Pernafrederick Commercial brokers three lease agreements PHILADELPHIA, PA — Representing Crown Two Penn Center Associates of New York, PernaFrederick Commercial Real Estate has negotiated one renewal, and the finalization of two new space contracts aggregating 13,132 s/f of class A space at Two Penn Center Plaza.

Steve Perna and Matt Frederick, principals of PernaFrederick, the agent for the property, brokered all the agreements that have a combined aggregate value exceeding $1.1 million.

In the largest renewal, the law offices of Gompers & Nerenberg has extended and relocated its offices to 5,800 s/f at 15th St. and JFK Blvd.

Michael Dolan, a broker with Stockton Real Estate Advisors, cooperated with PernaFrederick and represented the tenant in finalizing the terms of the renewal that has an aggregate rental exceeding $1 million.

In an expansion into Center City, the law firm of Friedman, Schuman, Applebaum, Nemeroff & McCaffery, has leased 4,100 s/f on the 10th floor.

Les Haggett, a broker with Newmark Knight Frank Smith Mack, cooperated with PernaFrederick and represented the law firm in finalizing the new lease agreement.

In the second new lease, BMS Intermediaries, a United Kingdom based re-insurance agency, has established its Mid-Atlantic office in some 3,234 s/f of space.

Tom Weitzel, a broker with Jones Lang LaSalle, cooperated with PernaFrederick and represented BMS Intermediaries in the lease negotiations. ■

Microsoft renews commitment to GVCC

Liberty Property Trust announces 49,000 s/f lease

45 Liberty Blvd.

MALVERN, PA — Liberty ogy Center that earlier this Property Trust has announced month. that Microsoft has renewed its commitment to the Great ValMicrosoft almost doubled its ley Corporate Center (GVCC) lease (from 27,000 to 49,000 s/f) with an expansion and renewal of class A office space, allocatof its lease at 45 Liberty Blvd. ing 22,000 s/f on the building’s The agreement incorporates first floor to the new Microsoft the new Microsoft Technol- Technology Center. ■

By David W. Wood, Constructive . . . continued from page 2A worthy of boasting about. The goodwill that springs from this is invaluable, and increases the desire of these people to want to work with you again on future jobs. That alone makes the effort worthwhile.

• If you should be fortunate enough to win (and somebody will!), you’ve now got the opportunity to generate press releases, query editors about feature articles (which can then be reprinted to use as marketing tools), add taglines to all your written communications (“Winner of the 2008 Best in Show Award”) and a whole host of other promotional strategies.

You’ll also find that you’ve gained added respect within your industry. You’ll be solicited

more often as a speaker, panel member, for quotes in articles, and for other opportunities that broaden the visibility and exposure of both you and your company. Not only may you receive the 15 minutes of fame Andy Warhol promised us all, but more importantly, sales will increase.

So, don’t be lazy or procrastinate indefinitely the next time you’re asked to enter an awards competition. You may not capture the grand prize, but regardless, you’ll emerge a winner—one who finishes in the money.

David W. Wood is a Deering, NH copywriter, newsletter publisher and marketing consultant specializing in the construction industry. ■

The future of debt – How quickly . . . continued from page 9A competition by all lenders for the lower leveraged deals, as previously mentioned. Fannie Mae and Freddie Mac are the best execution, by far, for the full leverage loans – up to 80%, with 1.25 debt coverage.

Each of the agencies has its niche in product types and has upgraded their student housing programs and senior housing programs in order to expand their market share of rental housing. FHA is an alternative, although their resources are stretched to capacity, for max leverage of 83.3% and 1.20 debt coverage, but based on their own underwriting, which can end up at the same place as Freddie and Fannie.

It sure feels better in 2011 than it has for the last several years. We are soon at the point of looking back at the recent recession caused by financial and housing upheavals, as another cycle that could have been avoided. Perhaps the same people that contributed to the last downturn might be more cautious and patient going forward, to insure longevity in this next rally. The future is brightening, like a low energy light bulb that turns on dimly at first and then gradually gets brighter, and hopefully lasts a much longer time.

Nancy Ferrell is managing director of the Baltimore Regional Office of NorthMarq. ■

MAREjournal.com

Mid Atlantic Real Estate Journal — April 22 - May 12, 2011 — 7A

MAREJ AUCTIONS Plus 15 brand new residences in Maryland, Delaware & North Carolina

Sheldon Good & Company to conduct auction of eight subdivisions

N

EW YORK, NY — Sheldon Good and Company will auction 8 land parcels and 15 newly constructed residences in Maryland, Delaware and North Carolina as part of a US Bankruptcy Court authorized sale on May 18th and May 19th, 2011.

Opening suggested bids will start as low as $150,000, with all subdivisions to be sold “Absolute,” regardless of price, making this a remarkable investment opportunity. Suggested Opening Bids on the residences will start as low as $50,000.

“As part of a Chapter 11 bankruptcy liquidation sale, and guaranteed to be sold, these auctions offer incredible savings and value for builders and developers in the region who will have the opportunity to name their price and acquire real estate with a tremendous amount of potential” said John Cuticelli, CEO of Sheldon Good & Co. The auction of Clearview

Oak Tree Landing Meadow, located in Dover, DE, features 242 remaining lots – 22 finished and 200 unfinished lots in a 303-lot Master Planned Development, with single-family, twinhome and townhome configurations available. The suggested opening bid for Clearview Meadow is $2,000,000.

Rose Hill Estates in Rosedale, MD is a 6.73 acre landsite with

both wooded and open fields.

The property is an ideal singlefamily residential development site. There are currently three single-family homes on the property of which two are rentals. The property has easy access to I-695 and I-95 and is located near the Community College of Baltimore Cty. and the Franklin Square Hospital.

The suggested opening bid for

this development is $200,000.

Arbor Ridge in Arbutus, MD is a 34.8 acre landsite and is a single-family residential development opportunity. There is currently one single-family home and three barns on the property. The suggested opening bid for Arbor Ridge is $350,000.

Shadowbrook subdivision in Elkridge, MD is a 23.3 acre landsite and is a single family residential development site. The property is next to Patapsco Valley State Park.

The suggested opening bid for Shadowbrook is $400,000.

The auction of the Oak Tree Landing subdivision in Prince Frederick, MD is a development opportunity that includes the remaining 107 townhome lots of the development, of which 8 are partially finished and 2 are new townhouses. Located off of Rte. 2 in Price Frederick, this area is attractive to Washington, DC commuters and offers the convenience of shopping,

dining, and recreation just minutes from the property.

The suggested opening bid is $975,000.

Kingston at Wakefield Plantation in Raleigh, NC includes 2 pad sites totaling 30 lots with townhome configuration and 6 newly constructed townhouses. Located in the heart of North Raleigh, there is a pool and cabana within the community, as well as a wide range of amenities, including the TPC sports facility featuring 8 tennis courts, 3 pools, a fitness center, a golf/ tennis shop and much more through membership opportunities. The suggested opening bid for this subdivision is $150,000.

Breezewood at Falls River in Raleigh, NC includes 3 finished pad sites totaling 42 townhome lots plus 3 newly constructed townhouses. The subdivision is located near excellent schools and Falls Lake Recreation Park. The suggested opening bid is $250,000. ■

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A — April 22 - May 12, 2011 — Mid

Atlantic Real Estate Journal

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Mid Atlantic Real Estate Journal Auctions

— Land Auction —

Commercial or Residential Opportunities! Once in a Lifetime Investment Red Mill Road Bloomsburg, PA Hemlock Township Columbia County, PA

48 ± Acre Auction

Hemlock Township, Columbia County, PA Locate YOUR Retail Strip Mall or Medical Center Here!

• Endless Possibilities

Turn this vacant land into a prosperous business investment.

Great location for Multi-Story Apartments.

Auction Date: Sat.,

• Located Near Bloomsburg University and Geisinger Medical Center • 3% Realtors Participation Invited

May 21, 2011 • 12:30 pm

Held across the street from property - Wedgetown Rd., Bloomsburg For more information contact: Dustin C. Snyder - 570.441.9357 • www.dustinsnyderauctioneer.com

35 ± Acre Auction

Hemlock Township, Columbia County, PA Locate YOUR Client or Business Here!

Turn this vacant land into a Booming Retail Business or Industrial Park.

• Prime Location - Adjacent to Walmart • Interstate 80 / Rte 42 Exchange - Exit 232 • High Traffic Area • Possible Billboard Locations • Endless Opportunities • Located Near Bloomsburg University and Geisinger Medical Center • 3% Realtors Participation Invited • Excellent Investment Property • Total Exposure From Interstate 80

Saturday May 21, 2011 12 pm held on site (Wedgetown Road, Bloomsburg)

Auction Date:

For more information contact: Dustin C. Snyder - 570.441.9357 • www.dustinsnyderauctioneer.com

License #AU-5484

MAREjournal.com

Mid Atlantic Real Estate Journal — April 22 - May 12, 2011 — A

MAREJ Auctions MAY

24

ABSOLUTE AUCTION US BANKRUPTCY COURT ORDERS IMMEDIATE SALE “CHARLES M. FORMAN, CHAPTER 7 TRUSTEE”

9 MULTI-FAMILY INVESTMENT PROPERTIES TO BE SOLD INDIVIDUALLY, REGARDLESS OF PRICE - PLAINFIELD, NEW JERSEY -

GREAT INCOME PRODUCING PROPERTIES Town & Country (69 Units) Occupancy: 80% Suggested Opening Bid: $1,500,000

Apex Apartments (42 Units) Occupancy: 90% Suggested Opening Bid: $850,000

Joyce Gardens (40 Units) Occupancy: 90% Suggested Opening Bid: $1,000,000

East Front Street Towers (39 Units) Occupancy: 90% Suggested Opening Bid: $900,000

Columbia Apartments (28 Units) Occupancy: 93% Suggested Opening Bid: $650,000

Madison Avenue Apartments (24 Units) Occupancy: 96% Suggested Opening Bid: $800,000

Viola’s Place (19 Units) Occupancy: 95% Suggested Opening Bid: $500,000

Viola’s Place

Franklin Place (16 Units) Occupancy: 100% Suggested Opening Bid: $250,000

The Cleveland (12 Units) Occupancy: 100% Suggested Opening Bid: $325,000 Columbia Apts

Madison Ave Apts

(800) 516.0015

Sale subject to Bankruptcy Court approval

www.PlainfieldAptAuction.com

10A — April 22 - May 12, 2011 — Mid

Atlantic Real Estate Journal

MAREjournal.com

People on the Move Ranks among Tri-State’s 2010 top producers

Colliers Int’l. honors Cinque as top New Jersey broker

P

ARSIPPANY, NJ — Bryn Cinque, one of Colliers International Tri-State’s most successful brokers, was ranked as the firm’s top New Jersey Producer for 2010.

An executive manag- Bryn Cinque ing director in the New Jersey office, Cinque represents both tenants and landlords. Among his notable 2010 achievements, Cinque arranged two leases totaling 181,504 s/f on behalf

of Advanced Health Media in Union County.

“Bryn Cinque is one of New Jersey’s most accomplished and respected brokers, and is revered across the Tri-State market,” said Bob Martie, executive vice president, Colliers International New Jersey.

“Bryn is savvy and focused, with terrific business instincts and superior market knowledge.

“Bryn Cinque is one of the finest real estate professionals in the Tri-State region,” said Joseph Caridi, COO of Colliers International Tri-State. “He is a tremendous asset to the New

Jersey operations. His record of success and accomplishment helps set the bar for the level of excellence we aspire to.”

Throughout his 20-year career, Cinque has arranged more than 400 transactions valued at more than $450 million. He specializes in the disposition and acquisition of commercial properties for law firms, private and institutional clients and has represented such companies as Metropolitan Life, Prudential Insurance Company, PSE&G, Buchanan Ingersoll, Fox Rothschild, Advance Realty Group and Ivy Realty. n

Matrisciano joins TD Bank as VP business dev. officer in SBA Division in Flemington, NJ FLEMINGTON, NJ — TD Bank has named David G. Matrisciano (shown) as vice president – business development officer in the SBA Division. He is

responsible for expanding TD Bank’s SBA loan production, including SBA mortgages and business acquisition loans, for small businesses throughout New Jersey.

Matrisciano has more than 30 years of experience as a commercial real estate lending specialist in the region, providing real estate

financing solutions to small to middle market business owners.

Prior to joining TD Bank, he served in senior business development positions at Community West Bank in NJ, PA andNY, and at GE Capital, Real Estate Division in NJ. n

NAI Emory Hill welcomes Michele Hartlove Chynoweth NEW CASTLE, DE — Michele Hartlove Chynoweth has joined NAI Emory Hill as a marketing associate. In her new role, she will assist agents in the marketing of commercial property listings.

Chynoweth is the owner and president of Dietz Hartlove Advertising, Inc. in North East, MD, which provides a

wide range of creative services for clients such as direct marketing and advertising.

She previously has worked as a copywriter and account executive with H. Galperin Associates in Wilmington and as a news reporter with the News Journal, WMDT-TV, the Daily Times and the Aegis.

She is a recipient of awards

from the International Association of Business Communications for Marketing, the Home Builders Association of Delaware, from which she has received several the Regal Awards for Marketing, and from the Maryland State Bar Association, from which she received the Gavel Award for Journalism. n

Reznick Group’s Harris elected to MD New Directions Board B altimore , M D — Reznick Group announced that Karen Harris, senior manager in the firm’s Baltimore office, has been elected to the Board of Directors for Maryland New Directions.

Maryland New Directions is a nonprofit that provides career counseling and job training skills for single mothers and women trying to re-enter the workplace. Founded in 1973,

Maryland New Directions has helped more than 130,000 clients make constructive career decisions. The organization assists unemployed and underemployed individuals in Baltimore City, with various barriers to successful employment, find jobs leading to family-sustaining wages. Each year, Maryland New Directions offers more than 500 career counseling sessions, 20 computer literacy

courses, and 120 career workshops.

“I am honored to be a part of Maryland New Directions. I believe in their mission of trying to help women reach their full employment potential,” said Harris. “I hope I can use my background in auditing and accounting to help the organization continue to grow and seek out new financial opportunities.” n

Marc Gold of Manko, Gold, Katcher & Fox serves as PBI panelist Philadelphia, PA — Marc E. Gold, founding partner of of Manko, Gold, Katcher & Fox, LLP participated in a panel discussion entitled “Environmental Issues Affecting Oil and Gas

Development” presented by the Philadelphia Bar Institute. The program examined the environmental issues impacting oil and gas development in PA. As the Marcellus Shale region

continues to produce valuable natural gas resources, the environmental requirements continue to evolve to effectively regulate production activities throughout the Commonwealth. n

Hopkins Sampson & Brown adds Campbell Newark, NJ — Hopkins Sampson & Brown Real Estate Advisory Services, LLC announced the addition of their newest sales associate, Kai Campbell, he joins the firm as senior vice president.

The company also congratulates Randee Stolar on the completion of a lease on behalf of a medical tenant in Livingston, Suzanne Kiall

Benedetto on an office lease in Warren and Joe Aratow for an industrial lease in Newark.

With an uptick in the economy and an extensive list of negotiations on behalf of landlords and tenants, Hopkins Sampson & Brown Real Estate Advisory Services, LLC is looking forward to a fantastic 2011. n

Grubb & Ellis promotes four professionals in Philadelphia PHILADELPHIA, PA — Grubb & Ellis Company announced that Elaine Battaglia, Matt Guerrieri and Joe Sklencar Jr. were promoted to associate vice president, office group, and Joe Capodanno was promoted to senior associate, office group.

The promotions recognize their levels of production and contributions to the company.

“Elaine, Matt, Joe and Joe are some of the most promising young professionals in our market,” said Bob Clements, executive vice president and managing director of Grubb & Ellis’ Philadelphia-area offices. “Their dedication to their clients and contributions to our team have been major factors in our success as an office.”

Battaglia joined Grubb & Ellis’ King of Prussia office in 2005 from Marsh USA Inc.,

and specializes in landlord and tenant representation in Delaware, Montgomery and Chester counties.

Guerrieri joined Grubb & Ellis’ Philadelphia office in 2000 as a research manager before transitioning to brokerage in 2005. He specializes in representing tenants throughout the Philadelphia area.

Sklencar Jr., who joined Grubb & Ellis in 2004 from CB Richard Ellis, focuses on providing landlord and tenant representation in southern New Jersey. In his 16 years in the commercial real estate industry, he has completed in excess of 2.5 million square feet of office leases.

Capodanno joined Grubb & Ellis in 2004 and specializes in landlord and tenant representation in New Castle County, DE, particularly the Wilmington CBD. n

Weichert RE affiliates launch membership organization for relocation professionals MORRIS PLAINS, NJ — Weichert Real Estate Affiliates, Inc., (WREA), the franchise division of Weichert, Realtors, recently introduced the Weichert Relocation Society to its franchise network.

Designed to provide specialized training, business development and networking opportunities, the Relocation Society is open to qualified owners, managers and referral/relocation staff members of Weichert franchise offices.

“The Weichert Relocation Society was created to support increased inbound and outbound referrals by and between Weichert offices,” said Martin J. Rueter, president of WREA. “Even more importantly, it provides a way for members to network with their peers, share best practices and develop relationships.”

Weichert Relocation Society members benefit from ongoing

referral/relocation training webinars and marketing materials. The networking aspect of the program is supported by a social media presence, along with mentor and recognition programs.

“Weichert franchise offices will find that the Relocation Society is an effective way to build their relocation business,” said Judy Bittner, director of relocation services for WEICHERT, REALTORS - America First Team in Concord, CA, who helped develop and roll out the program. “It is clear that building bonds between members increases the quality of the leads they receive and allows relocation directors to employ more sophisticated tactics for increasing their level of relocation business.”

Weichert Real Estate Affiliates launched its first franchised office in January 2002. 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 — April 22 - May 12, 2011 — 11A

The +/-150,000 s/f office building in Wilmington

Pettinaro brings law firm to the Riverfront Star Bldg.

Including Cedar Hill I & III

Cassidy Turley arranges sale of three office buildings

W

ilmington, DE — Star Building, LLC announced that Grant & Eisenhofer, PA, a Delaware based national law firm with additional offices in New York City and Washington, DC and clients worldwide—will base it’s new headquarters at the recently constructed Star Building located on the Riverfront of Wilmington.

This lease represents the first principal tenant lease in the +/-150,000 s/f office building completed in late 2010

by Pettinaro Construction Company. Additional space is still available for lease in this building and Pettinaro is currently working on securing additional tenants to join Grant & Eisenhofer. They are scheduled to take possession in December of 2011.

“We are excited to open the building with Grant & Eisenhofer,” said Gregory Pettinaro.

“As lead tenant, G&E will set the tone for other users in the office building. Bringing more professional employees to the Riverfront is a goal that is coming to fruition with a highly regarded, nationally recognized law firm. The overall Riverfront office vacancy rate is 8.33%. The Wilmington CBD is 21%.” Grant & Eisenhofer P.A. is a national litigation boutique that concentrates on corporate governance and securities litigation and other complex class actions. G&E represents public and private institutional investors across the globe who have been damaged by corporate fraud, greed and mismanagement.

G&E has been named as one of the top firms for shareholder

Star Building The Pettinaro Company, recovery by RiskMetrics Group and has earned a place in The founded in 1964, is a second National Law Journal’s Plain- generation, family-owned and tiffs’ Hot List Hall of Fame. managed real estate holdThe firm is listed as one of ing company led by Gregory America’s Leading Business Pettinaro. With in-house conLawyers by Chambers and struction, architectural and Partners, reporting that G&E real estate departments, the “commanded respect for its company designs, develops, representation of institutional constructs, leases and maninvestors in shareholder and ages all of its properties.

Headquartered in Newderivative actions, and in federal securities fraud litiga- port, Delaware, they also control other office buildings tion.”

“We chose the Star Build- on the Riverfront including ing after an extensive search the Crescent (Barclays) Buildof the marketplace including ing, Gates Building and DCM North Wilmington, Down- Building.

Pettinaro also announced town, and surrounding areas,” said Nick Pournader, Chief that The Shipyard, formerOperating Officer and CFO ly known as the “Shipyard of Grant & Eisenhofer. “We Shops” will soon be home to are pleased with the decision Ubon, a new Thai restauto move to the Riverfront and rant owned by the operators of Jeenwong’s Thai Cuisine look forward to making the Star Building our new home which is currently (and will later this year, “said Pourna- continue to be) operating in the Riverfront Market. n der.

Newmark Knight Frank negotiates 20,845 s/f lease Herndon, Va — Newmark Knight Frank has represented MicroPact, Inc., in its relocation and expansion to new offices at 12901 Worldgate Drive, where it will occupy the entire top floor of the class A office property.

Director Brian Wood, with managing principal Bill Zonghetti, represented Mic-

roPact in the 20,845 s/f lease.

MicroPact, the leading innovator in a new generation of data tracking software, is relocating from Herndon’s 2250 Corporate Park Drive, where it now occupies approximately 14,000 s/f.

“MicroPact has quickly become a recognized software solution leader in both the private and public sector,”

says Wood. “The team has represented the company for more than a decade, dating back to when it had five employees. It is very rewarding to see a client achieve such success.”

Terry Reiley of CB Richard Ellis represented the owner, Inland Real Estate Group of Companies, Inc. n

Cedar Hill I Tysons Corner, VA and Cedar Hill I, located at 2222 CoColumbia, MD — Cas- Gallows Road, and Cedar Hill sidy Turley arranged the three III, located at 2216 Gallows building portfolio sale of Cedar Road, are 100% leased primarHill I & III, two class A office ily to the GSA through 2020 buildings totaling 102,632 and 2019 respectively. The s/f in Tysons Corner, VA, and office buildings also serve as a Columbia Office, a class A, training center for the US De137,677 s/f office building in partment of the State - Bureau Columbia, MD. Paul Collins, of Diplomatic Security.

Bill Collins, Drew Flood, Jud Columbia Office is a multiRyan and James Cassidy of tenant office building located Cassidy Turley represented at 10320 Little Patuxent ParkPNC Realty Investors, Inc. way. The building is situated who sold the portfolio on be- adjacent to the Columbia Mall, half of a client. First Potomac just west of Interstate 95, Realty Trust acquired the between Baltimore, MD and properties.

Washington, DC. n

Liberty Property Trust signs tenant to 48,556 s/f lease Annapolis, MD —Liberty Property Trust announced that MedAssurant, Inc. has renewed and expanded to 48,556 s/f at 180 Admiral Cochrane Dr. MedAssurant, Inc. is a provider of superior healthcare quality, care management

and financial performance improvement solutions empowered by advanced data analysis, abstraction, and verification systems. Michael Sullivan of CB Richard Ellis represented the tenant in this transaction. n

Grubb & Ellis completes 48,000 s/f lease TYSONS CORNER, VA — Grubb & Ellis Company announced that Kenwood Management Company has renewed a 48,369 s/f industrial lease with the General Services Administration for the United States Geological Survey at Reston-Herndon Business Park.

John Dettleff, vice president, Industrial Group, Larry FitzGerald, senior vice president, Office Group, and Josh Simon, senior associate, Office Group, all of Grubb & Ellis Company, worked with Phil

Ackley, principal of Kenwood Management Company, in the transaction. The General Services Administration was self-represented.

“This 10-year lease renewal caps a period of excellent leasing activity at RestonHerndon Business Park,” said Dettleff. “In addition to the USGS lease renewal, Grubb & Ellis and Kenwood Management Company have worked together to complete more than 55,000 s/f t of new leases and lease renewals in the last 12 months.” n

12A — April 22 - May 12, 2011 — DelMarVa Real Estate Journal

MAREjournal.com

Operating and Managing over 3 Million Square Feet of Industrial and Commercial Real Estate in the Mid Atlantic Region 91 0 Basin Road Cr eekwood Corporate Center Class A Office Space Available Fr om 1 ,61 0 Sq. Ft. to 2,278 Sq. Ft.

• 66,000 Square Feet of Class A Office Space • 3,888 Square Feet of Class A Office Space Available • Strategically located at the I-95 / Rt. 141 interchange in New Castle, Delaware • 5 parking spaces per 1,000 square feet

Creekwood Corporate Center

• Previously a corporate headquarters facility • Part of pre-planned suburban office campus

Limeston e Sh oppin g Cen ter 43,889 Squar e Feet of Retail Space

Limestone Shopping Center

• +/- 4.7 Acre (43,889 sq. ft.) of retail space in the center of New Castle County.

• Minutes away from I-95/I-295, I-495 and Routes 41 and 141.

• Site offers convenient access from K irkwood Highway (Rt.2) and Limestone Rd. (Rt. 7).

• Perfect for stores, businesses and banks with optimum exposure from Rt 7.

• 198 parking spaces • 2,009 SF available on the second floor.

Available Belle Hill Cecil Coun ty, Mar ylan d

Belle Hill

• Phase I of a III Phase Development • 50,266 SF Available – New Construction • Includes 11,747 SF of finished office and mezzanine space area • 4 Acres of Paved Truck Display & Storage Area • 120 Truck and Trailer Parking Spaces • 15 Ton Bridge Crane • T5 Fluorescent Lights • Geothermal HVAC

For more information: Phone (302) 323-9300 Fax (302) 323-4951 29 East Commons Boulevard, Suite 100, New Castle, Delaware 19720 www.harveyhanna.com

RGI 05-05-08

MAREjournal.com

Mid Atlantic Real Estate Journal — April 22 - May 12, 2011 — 13A

DelMarva real eState JoUrnal

By Nancy Ferrell, NorthMarq

The future of debt – How quickly we are back!

T

oday’s buzz-words are “Cash Flow”, “Income in Place”, “Lease rollo v e r ” . Vi rtually all lenders have returned to the market.

Life Insurance Companies, Banks, CMBS (no longer called Nancy Ferrell Conduits) and many public and private Funds are providing capital to real estate, post recession. This is a clear sign that we bottomed out in 200910 and the future is bright. we are no longer focused on fire sales, double dips or falling prices.

2011 and 2012 will start the momentum of capital flowing into the markets as loan maturities start to ramp up.

The amount of maturing debt doesn’t dramatically increase until 2013-2015, and there is a strong likelihood that by then, property performance and cash flows will have recovered a great deal from where they were the last few years.

Transactions have picked up over the last six months, as many Sellers believe interest rates are going up and this is the time to sell. Cap rates remain low, with a shortage of properties on the market and a lot of money on the sidelines.

There seem to be new “Funds” forming daily and where these funds were previously formed as equity providers looking for investment partners, now they are lenders and direct investors, all seeking higher returns on their investments. with nowhere else to place their money for greater returns, they are lending now too. what we have learned in this last go-around of lending is that true underwriting standards must be adhered to and there should be consideration given to the exit strategy at loan maturity. Life Insurance Companies have traditionally lent on lower leveraged, high quality properties, in primary markets, with high quality Borrowers. Although they did not escape the downturn totally, their losses were minor. Their appetites are still healthy for Class A properties in Class A markets with Class A borrowers. They continue to prefer loan leverage of no more than 70% loan-to-value, 75% on apartments (everyone’s

preferred property type). Rates from Life Companies are very competitive, and should be at that leverage and underwritten debt coverage.

Banks were in disarray.

Thanks to government help, they are re-defining their roles and looking for the best Borrowers, long relationships and requiring recourse. They are still the preferred lenders when looking for flexible terms, low rates and conservative underwriting, if you can stomach the recourse. They are the only name in town when looking for construction financing.

CMBS will be a player in this recovery. It didn’t take long for these intelligent wall Street investment bankers to find their new niche. They are backed by the largest financial institutions that repeatedly come up with creative ways to compete, therefore garnering their share of the market.

This time, at least for awhile, they are underwriting the deals more realistically. They are trying to compete for the larger trophy properties in the largest markets, primarily the coasts and Chicago. These continued on page 14A

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Mid Atlantic Real Estate Journal — April 22 May 12, 2011 — 14A

Also organizes $172 million for 25 Massachusetts Ave.

Cassidy Turley arranges sale of CoStar’s HQ bldg. totaling $101 million in D.C.

W

ASHINGTON, DC — Cassidy Turley arranged the sale of 1331 L Street, NW, a 169,429 s/f trophy office building.

Bill Collins, Paul Collins, Drew Flood, Jud Ryan, and James Cassidy of Cassidy Turley represented the seller, CoStar Group, Inc. The property was acquired by GLL Real Estate Partners for $101,000,000 or $596 per square foot.

“This property couples a state-of-the-art building with long-term, credit cash flow,” commented Bill Collins, Executive Managing Director of Cassidy Turley. “It is currently 100 percent leased, with CoStar Group leasing 88 percent of the building through 2025, and was one of the first LEED Gold Core and Shell office buildings in DC,” he added.

1331 L Street is located between 13th and 14th Streets in Washington, DC’s East End submarket, with quick access to its many amenities including the Verizon Center, the Seventh Street District’s

abundant retail and restaurant options, the International Spy Museum, the National Portrait Gallery, and the American Art Museum. It is also proximate to the Central Business District, Washington Convention Center, Ronald Reagan National Airport, and the McPherson Square (blue and orange lines) and Farragut North (red line) Metro Stations.

The building is one of the few LEED Gold Core and Shell office buildings in the nation and features glass on all four sides, providing a rooftop setting with expansive views of the District. The two-story atrium lobby is designed with Italian marble floors, maplepaneled walls, and stainless steel accents. It also features a rooftop terrace, a first-class fitness center, and a three-level

underground parking garage.

Cassidy Turley has arranged bridge financing totaling $172 million for 25 Massachusetts Ave., also known as Republic Square I – a 385,765 s/f trophy office building centrally located in the Capitol Hill submarket of Washington, DC. David Webb, John Campanella, and Jamie Butler of Cassidy Turley structured the two-tiered debt transaction

on behalf of Republic Properties Corporation (Republic).

The financing was comprised of a senior loan originated by a commercial bank and a mezzanine loan provided by a private equity fund.

Distinguished by its classical architectural design, expansive views, and close proximity to the U.S. Capitol and Union Station, 25 Massachusetts Avenue has consistently attracted some of the most prominent tenants in Washington, DC. Current tenants include the American Medical Association, American College of Physicians, National Cable and Telecommunications Association, General Motors, and the Department of Justice.

The building is currently 60 percent leased and the bridge financing proceeds will serve to refinance the previous loan as well as fund future leasing costs. To further satisfy future demand, an additional 200,000 s/f of office space can be built on the adjacent parcel, known as Republic Square II, located at the corner of North Capitol and G Streets. n

continued from page 13A players seem to be willing to win the business, being very aggressive on the low leverage deals. They are also willing to provide a larger portion of the capital stack in the form of mezzanine, preferred debt or B-pieces, in order to win a deal. It seems that they are using these high profile deals to seed their securitization pools, so that they can be up and running as quickly as possible. As they increase the size of their lending box, liquidity will return to the market.

Last, but not least, we have to stress the importance of the multifamily GSE lenders in returning the liquidity to the markets. Freddie Mac and Fannie Mae were there the whole time, for the duration of the recession. It should be noted that the delinquency rates for the multifamily business for the GSE’s are ex-

tremely low, at levels far below 1%. The GSE’s never stopped underwriting realistically, and are jeopardized by the single family parts of their companies. There is no way of knowing what will happen over the next few years, but there is a good likelihood that the agencies will survive in some form, whether privatized or with a form of government guarantee. They should be the poster child for what SHOULD be the model going forward. There are hundreds of millions of dollars of long term loans on the books of these agencies that are good solid well underwritten business.

All lender types prefer multifamily loans due to demographics, economics, and stability. There is tremendous competition by all lenders for the lower leveraged deals, as previously mentioned. Fannie Mae and Freddie Mac are the

best execution, by far, for the full leverage loans – up to 80%, with 1.25 debt coverage. Each of the agencies has its niche in product types and has upgraded their student housing programs and senior housing programs in order to expand their market share of rental housing. FHA is an alternative, although their resources are stretched to capacity, for max leverage of 83.3% and 1.20 debt coverage, but based on their own underwriting, which can end up at the same place as Freddie and Fannie.

It sure feels better in 2011 than it has for the last several years. We are soon at the point of looking back at the recent recession caused by financial and housing upheavals, as another cycle that could have been avoided. Perhaps the same people that contributed to the last downturn might be more cautious and patient

going forward, to insure longevity in this next rally. The future is brightening, like a low energy light bulb that turns on dimly at first and then gradually gets brighter,

and hopefully lasts a much longer time.

Nancy Ferrell is managing director of the Baltimore Regional Office of NorthMarq. n

WASHINGTON, DC — Jones Lang LaSalle has signed a new enterprise-wide agreement to expand its use of CoStar Group’s comprehensive commercial property, tenant and comparable sales information for the benefit of its domestic client base throughout the United States.

Under the newest agreement, Jones Lang LaSalle has increased its total number of CoStar market subscriptions and provided its U.S.-based professionals with full access to all CoStar market subscription services in their local offices.

These services include CoStar’s flagship property information service, CoStar Property Professional, as well as CoStar COMPS Professional and CoStar Tenant, three industryleading information services that speed transactions, reduce deal-related costs and improve overall efficiency for real estate professionals.

Jones Lang LaSalle also designated several of its U.S. offices as national subscription sites, with full access to CoStar’s complete U.S. data set for CoStar Property and CoStar COMPS. n

1331 L Street, NW

25 Massachusetts Avenue

The future of debt – How quickly we are back!

Jones Lang LaSalle signs enterprise agreement

MAREjournal.com

Mid Atlantic Real Estate Journal — April 22 - May 12, 2011 — 15A

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

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• +/– 135 Acre Business Park in the City of New Castle • Minutes away from I-95/I-295, and Routes 9 & 13.

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• 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

16A — April 22 - May 12, 2011 — Mid

Atlantic Real Estate Journal

Mid Atlantic Appraisal

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MAREjournal.com

Mid Atlantic Real Estate Journal — April 22 - May 12, 2011 — 17A

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tŚĂƚ ŚĂƐ LJŽƵƌ ĐŽŶƐƵůƚĂŶƚ ĚŽŶĞ ĨŽƌ LJŽƵ ůĂƚĞůLJ͍ ƚ >ĂŶĚŵĂƌŬ: D͕ ǁĞ ƌĞƉƌĞƐĞŶƚ ŽƵƌ ĐƵƐƚŽŵĞƌƐ ĂŶĚ ŽƵƌ ŝŶĚƵƐƚƌLJ ĞǀĞƌLJ ĚĂLJ͘ ƚ ƚŚĞ ŶĂƟŽŶĂů ůĞǀĞů ŽƵƌ ĞŶǀŝƌŽŶŵĞŶƚĂů ƐĐŝĞŶƟƐƚƐ ƐĞƌǀĞ ŽŶ ŶǀŝƌŽŶŵĞŶƚĂů /ƐƐƵĞƐ ĂŶĚ 'ƌĞĞŶ ƵŝůĚŝŶŐ ^ƚĂŶĚĂƌĚƐ dĂƐŬ &ŽƌĐĞ ĐŽŵŵŝƩĞĞƐ͕ ĂŶĚ Ăƚ ƚŚĞ ƐƚĂƚĞ ůĞǀĞů͕ ŽƵƌ ĞŶŐŝŶĞĞƌƐ ƐĞƌǀĞ ŽŶ ^ĞĂ >ĞǀĞů ZŝƐĞ ĂŶĚ ŚĞƐĂƉĞĂŬĞ ĂLJ dD > ĐŽŵŵŝƩĞĞƐ͘

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Shopping Centers

Mid Atlantic Real Estate Journal Section B of the Mid Atlantic Real Estate Journal

Located at 665 American Legion Dr. in Teaneck, NJ

Marcus & Millichap’s Horvath, Tremblay & Lombardi sell $10.25 million Stop & Shop

T

EANECK, NJ — Bob Horvath, Todd Tremblay and Mike Lombardi of Marcus & Millichap Real Estate Investment Services has brokered the sale of a 42,047 s/f Stop & Shop. The sale price of $10.25 million represents $244 psf.

“Stop & Shop is the pioneer of the superstore concept in New England and is one of the leading food retailers in the northeastern United States,”

Bob Horvath Todd Tremblay Mike Lombardi said Horvath. “The company in-store improvements.” recently spent $1 million on The property is located at 665

April 22 - may 12, 2011

HI-LIGHTS Stocker of KW Commercial brokers $2.36m shopping ctr.

KW Commercial-The James Balliet Commercial Group has recently sold the 16,800 s/f. Shopping center known as Rte. 191 Plaza located at 822 Nazareth Pike.

See page 7B.

The Azarian Group improves a well performing asset Starting in the early summer of 2011, the Pine Brook Plaza will undergo a complete exterior renovation and face lift.

See page 10-11B.

ALSO INSIDE: Pinebrook Plaza.......................................................... 10-11 Project of the Month: Odenington Station......... 12-13B People on the Move.......................................................22B Retail Business Card Directory..................................24B ICSC Organization Page...............................................23B Section B, 28 pages

MAREjournal.com

Stop & Shop in Teaneck, NJ

American Legion Dr., 11 miles from Manhattan. The population within a five-mile radius is 486,193 and the median household income within a one-mile radius is $108,249.

The lease contains four fiveyear renewal options and rental increases every five years.

Horvath, Tremblay & Lombardi represented the sellers FW Teaneck LLC and also procured the buyer H&R LLC. n

14,485 s/f single-tenant net-leased property

Marcus & Millichap sells 14,485 s/f building totalling $6.835 million LINDENWOLD, NJ — Marcus & Millichap Real Estate Investment Services has announced the sale of Wa l g r e e n s , a 14,485 s/f single-tenant net-leased p r o p e r t y.

Brad Nathanson The asset commanded a sale price of $6.835 million or a 6.78% cap rate.

Brad Nathanson, a senior director Michael Fasano

in Marcus & Millichap’s Philadelphia office, had the listing to market the property on behalf of the seller. The buyer was secured and represented

by Nathanson as well. Michael Fasano, broker, assisted in closing this transaction.

Walgreens is located at 1001 North Berlin Rd. and features a new 25-year, absolute-net lease.

The property lies at the entrance of the Lindenwold Train Station, a major commuter line that carries over 38,000 passengers a day and is within two blocks to the Kennedy Memorial Hospital, with over 4,000 employees and 900 physicians.

Shoppes at Meadow Creek Westminster, MD

The site offers close proximity to White Horse Pike, which is a major commuter route. It should be noted that a limited supply of Walgreens will be built over the next 24 months due to the acquisition of Duane Reade and the reinvesting back into their existing stores.

Given the increased demand of triple-net properties, especially in high density infill metropolitan Northeast locations, properties like the Walgreens have traded 35 to 50 basis points downward because of supply constraints given their lack of building over the last six to twelve months. n

B Inside Cover — April 22 - May 12, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

MAREjournal.com

Infrastructure complete… new student housing drawing raves… first retailer, Barnes & Noble, open and setting records… mixed-use Whitney Center complex under construction… Marriott Courtyard Hotel & Conference Center breaking ground this Spring...

The Quintessential Public/Private Partnership in the MidAtlantic Region Is Building the Quintessential College Town

SORA Holdings, LLC Downtown Revitalization, College Campus & Hospitality Development Sewell, NJ 08080 - 856.589.8371 • Towson, MD 21204 - 410.832.0065 Email: Greg Filipek at gfilipek@soraholdings.com ● www.soraholdings.com

MAREjournal.com

Mid Atlantic Real Estate Journal — Shopping Centers — April 22 - May 12, 2011 — B

Few investment brokers possess the expertise to truly understand a property's operational and financial fundamentals; and the ways to position those fundamentals into the marketplace while assuring maximum value through a sale.

When my clients entrust me with an assignment, I reward them with an exceptional result.

CONTINUING TO LEAD THE INDUSTRY INTO 2011

Exeter Commons, Reading, PA 491,000 square feet

SOLD

Towne Square Plaza

Bensalem Crossing

Reading, PA 128,000 square feet

Bensalem, PA 67,000 square feet

Lakeview Shopping Centre

Eastgate Shopping Center

Royersford, PA 190,000 square feet

Memphis, TN 505,000 square feet

Germantown Shopping Center

Windsor Crossing

Memphis, TN 202,000 square feet

East Windsor, NJ 80,000 square feet

SOLD

SOLD

SOLD

SOLD

SOLD

SOLD

Superior Service • Unrivaled Exposure Maximum Value • Exceeding Expectations

BRAD NATHANSON | SENIOR DIRECTOR 101 West Elm Street Suite 600 | Conshohocken, PA 19428 | (215) 531-7000 ext. 7046 www.nathansonretail.com | brad.nathanson@marcusmillichap.com

B — April 22 - May 12, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

MAREjournal.com

Shopping Centers

Specializing in Retail Brokerage in Pennsylvania, Maryland & West Virginia

By Casey H. Kenton, CCIM, Sperry Van Ness – Miller

Owner Representation Site Selection Investment Analysis Market Research

An inside perspective on the collapse of land values

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

Breaking New Ground

t has been a wild ride over the course of the past decade as a land and retail broker on the Delmarva Peninsula. On a national basis, we have all heard the horror stories about places like Florida, Arizona, Ne- Casey H. Kenton vada and California but very rarely do you hear about the rural markets such as Southern Delaware. The Las Vegas’ and South Florida’s have always been thriving metropolitan markets with great climates and as a result, will always be attractive places to locate. Rural markets such as Delaware are commonly referred to as “tertiary” markets and do not always follow national trends.

The State of Delaware is separated into three counties, New Castle, Kent and Sussex Counties with a total population of roughly 900,000. Geographically, Delaware is located within 200 miles of nearly twothirds of the U.S. population and is also a NO sales tax State.

Delaware is also the corporate home to more than 50% of the

Fortune 500 companies due to a favorable corporate tax structure. Sussex County, DE, the southern-most county of the three, has one of the lowest property tax structures in the country and is home to beautiful resort areas such as Lewes, Rehoboth Beach and Bethany Beach. As a result of these attributes, Southern Delaware in particular has developed into one the fastest growing areas in the country and has been recognized as one of the best places to live and retire.

Prior to the 2008 national banking collapse, Sussex County, DE was issuing roughly 3,000 new building permits per year. In 2005 & 2006, fortunes were made overnight by developers selling fully entitled plans which were essentially raw land with approvals. Improved lot values on average were ranging in price from $100K-$200K depending on the location and it was common for builders to experience absorption rates of 3-4 units per month per community. As demand continued, everyone became a developer! There was a back-log in the local planning department of 18-24 months for plan approvals due to the

excess supply of applications.

This should have been a telltale sign of the bubble beginning to burst.

In 2010, there were roughly 1,200 new building permits issued in Sussex County. The County now has an excess supply of roughly 25,000 lots.

In Kent County, we are estimating an additional 25,000 lots available or recorded. In the meantime, many plans are expiring with local jurisdictions due to “sun-setting” provisions.

Rough estimates are that we have a minimum 15 year pipeline of supply if no new lots are introduced to the market.

What will 2011 bring? My experience as a broker has been interesting over the past 4-6 months. I am no longer working with many developers or builders in hopes of disposing of record plans. The Year of 2010 seemed to be the year of the foreclosure and I feel that it will continue significantly through 2011 due to the maturity of 3-5 year commercial loans originated in 2005-2007.

Within the past 4-6 months, I have been approached by several local and national banks requesting valuations for uncontinued on page 6B

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MAREjournal.com

Mid Atlantic Real Estate Journal — Shopping Centers — April 22 - May 12, 2011 — 3B

SEEKING RETAIL PROPERTIES IN THE NORTHEAST CORRIDOR

$

5 2 0 .

20

M

U Q C A

IO T I IS

N

D E OS 1

C LFEB 11, 201

Derry Meadows Shoppes Derry, NH

Southampton Shopping Center Southampton, PA Acquired July 2010

Tops Plaza Canandaigua, NY Acquired March 2010

Burwood Village Center Glen Burnie, MD Acquired September 2009

Stop & Shop Plaza Enfield, CT Acquired March 2009

Please Contact Daniel Katz 212.710.9362 dkatz@katzproperties.com

B — April 22 - May 12, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

MAREjournal.com

Shopping Centers

By Mark Taylor, Marcus & Millichap

403 W. UNION BLVD., BETHLEHEM, PA Located within a stone’s throw of Rte. 378 Center City Exit, former lighting xture showroom. This 12,000 SF bldg. features on-site parking, great signage visibility, durable concrete block construction, nished showroom area, and loading door in warehouse area.

Lease: $8.00 PSF Net (3) Sale Terms Offered

603 8TH ST., WHITEHALL, PA

11,526 SF building with 3,500 SF suite or an 8,000 SF suite available; single story concrete block, steel frame on 2.65 acre site, gas heat, central air, smoke detectors, sprinklered warehouse area, kitchen/ breakroom, private ofces, small conference room, loading dock can be reinstalled, ADA accessible, ample on site parking.

Lease and Sale Terms Offered

The worst is over, Capital markets have improved

A

fter a strong last quarter of 2010 in investment sales, in 2011, investors should take stock of two fundamental points: the worst is over, and Capital markets have improved faster than Mark Taylor expected. Higher returns require the appropriate degree of risk-taking, and approaching 2011 with the same tenor of wariness present a year ago will likely lead to lost opportunities.

Many investors failed to pull the

trigger over the past 12 months, expecting an RTC-style, deeply discounted property market or prolonged deterioration of the U.S. economy. The odds of either occurrence have further diminished. The low-hanging fruit may be gone, but attractive investment opportunities exist that may not be available a year from now. That is not to say investors should throw out caution. Economic and market risks remain and must be assessed; however, this year’s improved data points and lenders’ ongoing strategy to prevent fire sales on quality assets highlight the need to reset expectations and adjust strategies.

Current conditions for retail properties vary sharply by location. The performance and value of every shopping center lies along a spectrum and is a function of geography in most cases. In fill shopping centers, particularly those in supply-constrained areas and proximate to high population densities, remain a world apart from newly built power centers conceived just footsteps from busted housing projects. At the same time, fortress malls continue to out perform, as retailers remain reluctant to vacate space in premium properties, though many traditional regional malls now struggle with significant vacancy issues due to closures and department store consolidations in recent years. We expect a moderate decline in vacancy to materialize in the latter half of 2011, with more substantial improvement anticipated in 2012. In the near term, core neighborhood/community centers and strip centers in infill areas will retain their top-performer ranks as measured by occupancy, rents and, therefore, values. Specialty centers, class B malls and newly built power centers will continue to suffer from cautious retailers and a hesitant consumer.

Retail investment sales increased notably over the past year. The drop-off and ensuing improvement in sales can be atcontinued on page 7B

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

MAREjournal.com

Associate Publisher Elaine Fanning

efanning@MAREJournal.com

Section Editor

Karen Vachon editor@marejournal.com

MAREjournal.com

Mid Atlantic Real Estate Journal — Shopping Centers — April 22 - May 12, 2011 — B

TURNING VISION INTO VALUE ACQUISITION

RENOVATION

DEVELOPMENT

205,000

CONNECTICUT Meriden Parkade - Meriden New Brite Plaza - New Britain

225,000 165,000

MAINE Airport Mall - Bangor Capitol Shopping Center - Augusta JFK Plaza - Waterville Wells Plaza - Wells

230,000 200,000 175,000 90,000

MASSACHUSETTS Danvers Crossing - Danvers Foxborough Plaza - Foxborough Middleborough Crossing Middleborough Springfield Plaza - Springfield NEW HAMPSHIRE Hood Commons - Derry Hooksett Village Shops - Hooksett 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

NEW ACQUISITION! MAYFAIR SHOPPING CENTER, PHILADELPHIA, PA 115,000 square foot community shopping center anchored by Shop ‘n Bag, Dollar Tree and Fashion Bug 16,000 SF of available retail space

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

SF

ALABAMA Midway Plaza - Opelika

175,000 120,000 130,000 510,000

210,000 260,000

150,000 135,000 215,000 95,000 180,000 70,000 165,000 130,000 210,000

625,000 450,000 210,000

PENNSYLVANIA Berkshire Square - Wyomissing 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

120,000 100,000 620,000 460,000

RHODE ISLAND Diamond Hill Plaza - Woonsocket

390,000

New Acquisition!

235,000 530,000 220,000 90,000 310,000 155,000 175,000 115,000

B — April 22 - May 12, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

MAREjournal.com

Shopping Centers For 271,979 s/f Mansfield Commons

Cronheim arranges $18.9m financing for retail center

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

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

Apartment Complexes Condominiums Industrial Buildings Ofce Buildings Shopping Centers

ackettstown, NJ — Andrew Stewart and Lisa McMahon of David Cronheim Mortgage Corporation have secured financing of $18.9 million for Mansfield Commons, a 271,979 s/f shopping center in Warren County.

Cronheim acts as servicer and correspondent for the 11-year financing.

The subject property is anchored by a 123,519 s/f Wal-Mart and a 88,830 s/f Kohl’s department store.

The property is located on Rte. 57. n

Mansfield Commons

CB RICHARD ELLIS PREMIER RETAIL SERVICES TEAM - PITTSBURGH We are pleased to have partnered with with following retail centers, landlords, developments and tenants in Western Pennsylvania and Pittsburgh areas.

Retail Centers, Landlords and Developments • • • • • • • • • • • •

Allegheny County Bakery Square Bessemer Court/Station Square CBL Chapel Ridge City of Pittsburgh Consol Energy Center Continential Real Estate Faison Forest City Inland L & B Realty

• • • • • • • • • • • •

Market Square Place McKnight Development Millcraft Industries Monroeville Mall Nationwide Realty Northway Mall Piatt Place Pine Tree Shoppes PNC Park RREEF Settler’s Ridge Shadyside Village

• • • • • • • • • • • •

Silk & Stewart Development Shadyside Village The David L. Lawrence Convention Center The First City Company The Galleria The North Shore The Pittsburgh Mills The Pointe at North Fayette The Waterfront Turnberry Associates Union Trust Building Walnut Capital Partners

• • • • • • • • • • • • • • • • • • • •

First Watch Fuddruckers Garbiel Brothers Golden Coral Goodyear Harbor Freight Highmark Huntington Bank Jennifer Convertibles Joe’s Crab Shack Jos. A. Bank Justice/Limited Too K&G Menswear La Strada Liberty Travel Lidia’s Lululemon Athletica Mad Mex Mama Fu’s Men’s Wearhouse

• • • • • • • • • • • • • • • • • • • •

New Balance Panera Bread Patagonia PF Changs Qdoba REI Restaurant Development Group Restoration Hardware Ross Dress for Less Rugged Wearhouse Starbucks The Pottery Barn Toys R Us/Babies R Us Urban Active Urban Outfitters Vallozzi’s Pittsburgh Verizon Wireless Washington Mutual Williams-Sonoma West Elm

Tenants • • • • • • • • • • • • • • • • • • • •

AC Moore Advance Auto Parts Allegheny County American Eagle Anthropologie Bath and Body Works Bed, Bath and Beyond Bravo | Brio Burgerfi Capital Grille Chico’s Chik-fil-A Cititrends Darden Restaurant Group DiBella’s Old Fashion Submarines DSW Shoe Warehouse Dunkin Donuts Eat’n Park FedEx Office Fifth Third Bank

For information about how we can partner with you, please contact: Herky Pollock, Executive Vice Preident and Northeast Director Retailer Services Group at 412.394.9840 or herky.pollock@cbre.com CB Richard Ellis | 600 Grant Street | Suite 600 | Pittsburgh, PA 15219

Centro Properties leases 170,000 s/f to Walmart Randallstown. MD — Centro Properties Group announced a 170,000 s/f lease has been executed with Walmart at Liberty Plaza. Centro Properties Group is the owner of Liberty Plaza and was represented

by Greg Levine with Centro Properties Group.

Michael Carroll, CEO for Centro Properties Group said, “We are pleased to renovate Liberty Plaza and bring Walmart into the center.” n

By Casey Kenton, CCIM, Sperry Van Ness – Miller . . .

continued from page 2B derwriting and disposition strategies for bank owned (OREO) property. As a broker, I have finally convinced several banks that their recorded plat plan or approved/unimproved “farm” has reverted back to farm land prices. There is simply no value for recorded site plans without infrastructure.

We are now selling farms that were sold for $40K-$50K per acre for development purposes back to the original farmer for $5-$6K per acre. Not bad to be a farmer in Delaware!

On a positive note, Delaware continues to be a great place to reside and national and regional home builder’s such as Ryan Homes and NVR are still committed to the area. On the retail front, we are still seeing national franchisees enter the market and several national big box users are starting to revisit old plans. I still feel that the future is promising for the Delmarva Peninsula.

Casey Kenton, CCIM is senior advisor at Sperry Van Ness – Miller Commercial in Lewes, DE. n

MAREjournal.com

Mid Atlantic Real Estate Journal — Shopping Centers — April 22 - May 12, 2011 — 7B

Shopping CenterS Timely Response.

Time-proven Solutions.

16,800 s/f 191 Plaza in Nazareth, PA

Stocker of KW Commercial brokers $2.36m shopping ctr.

www.ewma.com

An Environmental Consulting & Remediation Firm x Guaranteed Fixed-Price Cleanups x Post Remediation Care Liability Assumption

N

AZARETH, PA — KW C o m m e r c i a l - T h e James Balliet Commercial Group recently sold the 16,800 s/f shopping center known as Rte. 191 Plaza lo-

x Brownfields Redevelopment x Green Audit and Carbon Footprint Services x Expert Testimony / Litigation Support x Regulatory Compliance Services x Underground Storage Tank Closures

By Mark Taylor, Marcus & Millichap continued from page B tributed mostly to multi-tenant deals, which remain limited but have moved up from last year’s fl oor. Through most of the downturn, fi nancing remained available for strong single-tenant deals, and investors favored the asset class due to its perceived safety, propping up sales in the segment. Cap rates for singletenant properties have declined for credit-tenant deals, though they remain 100 basis points higher, on average, than at the market’s peak.

Multi-tenant cap rates have undergone more correction, with the average up 150 basis points. Sales velocity should improve modestly through the first quarter of 2011, with a strong pick-up in momentum emerging in the second half as financing eases and more distressed properties come to market. Bifurcation by quality and location will continue to define the retail investment landscape, with cap rate compression for top-tier properties and fl at to rising cap rates for lower-tier assets. Single-tenant net-lease properties with relatively healthy credit tenants will continue to top investors’ preference as a safe haven in a low-yield environment.

Retail property sales increased during the fi rst nine months of 2010 when compared to the same period in 2009. Dollar volume climbed 50% to $33 billion, while transaction velocity exhibited a more modest rise of 15.4%. To date in 2010, the average price has declined by slightly more than 5% to $128 psf. Over the same period, the average cap rate has increased 20 basis points to8.4%, though cap rates range from less than 7percent for best-in-class properties to 10% or more for distressed deals. Premier markets such as Los Angeles, New York City, Chicago and Dallas/Fort Worth were the most active in the first nine months of this year, with Central and South Florida also showing a pick-up in retail investment activity.

Mark Taylor is VP investments at Marcus & Millichap. n

x Indoor Air Quality x Due Diligence Property Transaction Services x Site Assessments

Rte. 191 Plaza cated at 822 Nazareth Pike.

191 Plaza is a convenience Melanie Stocker, a 10 year strip center anchored by Carcommercial real estate veteran Quest Auto Parts and Snap represented both the buyer, Fitness. Additional tenants 191 Plaza Realty, LLC and the include Pino’s II Pizzeria and seller, Tony and Emily Realty, Restaurant, Curves for Women, LLC in the transaction. The Red Headz Hair Salon, Persale price was $2.6 million. sonal and more. n

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8B — April 22 - May 12, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

MAREjournal.com

Shopping CenterS Joseph Barbato Associates is structural engineer N

N/A

B Not Available

Metro Development Co. breaksground on 220,000 s/f

ORCHARD LANE & POTTSVILLE PIKE (RTE 61) LEESPORT, PA 19533

C

O

A

n a crisp Friday morning in March the intersection of Rte. 1 & Fox St. in Philadelphia saw its usual hustle and bustle of countless cars, trucks and school buses as the day began.

The only noticeable difference that morning was the peculiar absence of many regular neighborhood shoppers at the gas station convenience stores which straddle the highway.

Unfortunately for far too long tiny stores such as these fi lled Bakers Square with candy, soda, cigarettes and the occasional loaf of white local residents of this densely away though and could be found just one block south at bread have been one of the only populated section of the city.

These regulars weren’t far Fox St. & Roberts Ave. as they available grocery options to joined hundreds of their neighbors who were packed under a large tent for the groundbreaking ceremony of Bakers Square, a new 220,000 s/f community shopping center anchored by a 71,000 s/f ShopRite.

At the podium stood Michael Grasso, president of Metro Development Co. which recently celebrated its 30 year anniversary as the region’s premiere real estate development fi rm.

Grasso, who spoke to the crowd over the sound of bulldozers, is no stranger to hosting groundbreaking ceremonies. Under his direction Metro has successfully developed over 15 million s/f of retail, offi ce, multi-family, hotel and industrial space across Philadelphia and its suburbs and has two other shopping centers currently in the planning phase. Grasso shared the stage that morning with several other speakers including Mayor Michael Nutter, State Senator Vincent Hughes, Councilman Curtis Jones, State Rep Jewell Williams, Gregory Bianchi of US Realty, Jeff Brown of Brown’s ShopRite, Wendall Young IV of UFCW Local 1776 and Cindy Bass, Senior Policy Adviser to Congressman Chaka Fattah.

Bakers Square will be located on the site which was once the former corporate headquarters and major production facility of the famed Tasty Baking Co. This project will encompass over 30 acres situated along West Hunting Park Ave. as well as Fox St. and Roberts Ave. which is part of the Philadelphia City Planning Commissions Redevelopment Initiative. This Initiative was designed to revitalize impoverished areas within the city by redeveloping antiquated properties, beautifying streets, establishing new businesses and creating jobs. n

JOSEPH BARBATO ASSOCIATES, LLC Consulting Structural Engineers Joseph Barbato Associates, LLC

For over 25 years providing comprehensive structural engineering services • • • • •

Commercial Educational Fall Hazard Solutions Industrial Medical

• • • • •

Municipal Recreational Residential Specialty Systems Specialty Investigations

6 Dickinson Drive, Building 100, Suite 103 Chadds Ford, PA 19317

Phone: 610-558-6050

www.jbarbato.com

MAREjournal.com

Mid Atlantic Real Estate Journal — Shopping Centers — April 22 - May 12, 2011 — 9B

Shopping CenterS Also signs 8, 1 s/f lease with Modell’s Sporting Goods

Welco Realty signs 30,000 s/f retail lease in Paramus, NJ

P

2009

ARAMUS, NJ — Welco Realty signed a lease representing Jo-Ann Fabric and Craft Stores for 30,000 s/f in the former Comp USA space on Rte. 17. This store will be one of the largest format stores for Jo-Ann Fabric and Craft Stores, its fi rst store in the Paramus market. Jo-Ann Fabric and Craft Stores is also expected to draw from the metropolitan New York area as well as New Jersey because of its close proximity to New York.

Welco signed a lease with Modell’s Sporting Goods for their new smaller concept store.

The fi rst one that they have opened in New Jersey at the Table of Contents Interstate Shopping Center, Corporate Logo 2 Rte. 17, Ramsey. This store is approximately 8,551 s/f, which Logo is approximately half the size DOs & DON’Ts 3 of their standard store. n

Regency Centers leases 6,2 3 s/f in VA Corporate Name

4

Festival at Manchester Lakes FRANCONIA, VA — Regency Centers has leased restaurant space to two new retailers at Festival at Manchester Lakes.

Dunkin’ Donuts has leased 1,800 s/f of restaurant space, and Genghis Grill, a buildyour-own bowl, fast casual, Asian stir-fry concept, has leased 4,443 s/f, bringing the center to 95 percent leased.

Both restaurants plan to open this Spring. n

Sourbeer of NAI CIR brokers , 86 s/f space

HARRISBURG, PA — Mo Mo’s BBQ & Grille will open a restaurant in 5,586 s/f of space it has leased at 307 Market St., Harrisburg.

J a s o n Sourbeer of NAI CIR represented both Mo Mo’s and the landlord, Jason Sourbeer MSP Investments, LLC. n

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realestate.subway.com www.subway.com

10B — April 22 - May 12, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

MAREjournal.com

The Pine Brook Plaza 8,000 s/f highway strip shopping center in Montville, NJ

Feature Your Project

The Azarian Group improves a well performing asset

~ Developments ~ ~ Construction ~ ~ Renovations ~

The Pine Brook Plaza

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A full-serv ice con structio n man contrac ageme ting and nt, gen develop eral specific ment/co ally focu nsulting sed on firm, housing mixed, long-ter use, mu m care lti-family facilitie facilitie s, hotels s, edu cationa and hos l facilitie pitality s and through corpor out the ate offic Mid-Atl es antic reg ion.

Find ou Contact t what DALE can Greg Ha llquist do for you. at 215-69 0-0171

for more information call Elaine Fanning efanning@marejournal.com

800-584-1062 x 212

.

he Pine Brook Plaza is an 8,000 s/f highway strip shopping center located on Route 46 West in Montville, New Jersey. The Pine Brook Plaza also has rear access to Bloomfield Avenue, a major local thoroughfare, and a major U-turn, jug handle at New Road.

Starting in the early summer of 2011, the Pine Brook Plaza will undergo a complete exterior renovation and face lift. Work on the shopping center will include: new lighting, facade re-facing and architectural towers on the Northern and Southern corners of the property, new shopping center and tenant signage which will also include a new pylon sign. Additional site work will include: new parking lot surfacing, parking lot repainting, paver and concrete sidewalks,

new centralized dumpster enclosure, and new lighting.

Much of the proposed renovation will incorporate and be part of the Township of Montville’s new streetscape and “Master Plan.” For example, new shopping center pole lighting will match the Master Plan lighting for Bloomfield Avenue. A new sidewalk will also be installed on Bloomfield Avenue to facilitate pedestrian traffic to the Pine Brook Plaza which is also part of the Master Plan for the Township of Montville.

The Pine Brook Plaza has historically been 100% occupied, with very little turnover, since The Azarian Group, L.L.C. took ownership of the property in 1978. Today, the property is comprised of seven retail units ranging from 900 s/f to 2,115 s/f. The tenants in-

Project Team

Architect: ........................................... IS&L Architecture Studio Engineer: .............................................. McGowan Engineering

clude: Donut Dugout, Blimpie, Jun’s Studio, Number One Chinese Restaurant, D&D Liquors, Rainbow Nails and LaFogta Mexican Restaurant.

Seeking no financial gain from the renovation through increased square footage or additional revenue streams, The Azarian Group, is purely looking to dramatically improve the appearance and curb appeal of a well performing asset.

The proposed project is being spearheaded by The Azarian Group, which owns / manages 19 shopping centers and commercial properties throughout New Jersey and New York totaling over 1,000,000 square feet with more than 275 tenants. The Azarian Group most recently completed a $3,000,000 renovation and expansion of the Allendale Town Center, and plans to begin two other major renovations in 2011 including the Raritan International Center in Sayreville, New Jersey and The Hyde Park Mall in Hyde Park, New York. n

MAREjournal.com

Mid Atlantic Real Estate Journal — Shopping Centers — April 22 - May 12, 2011 — 11B

The Pine Brook Plaza :lii\ek 8mX`cXY`c`k`\j `e E\n A\ij\p E\n Pfib ]ifd K_\ 8qXi`Xe >iflg# C%C%:

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12C — April 22 - May 12, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

MAREjournal.com

CIVIL ENGINEER

MAREjournal.com

Mid Atlantic Real Estate Journal — Shopping Centers — April 22 - May 12, 2011 — 13C

ACQUISITION, DEVELOPMENT & FINANCING ATTORNEY

SHOPPING CENTERS PROJECT OF THE MONTH The Dolben Company develops mixed-use development consisting of 57,000 s/f of retail and 235 apts. homes

Proud to be Part of the Project Team Providing the Civil Engineering At

O

The Village of Odenton Station

EnginEErs, survEyors & PlannErs 7678 Quarterfield Road, Suite 201 Glen Burne, Maryland 21061 P: 410-863-1234 F: 410-863-1235 www.bndpa.com

RETAIL LEASING AGENT Metropolitan Management Company, a division of Klein Enterprises, is pleased to be a member of the Dolben Company team, providing Retail Leasing services for Anne Arundel County’s first mixed-use, transit-orienteddevelopment.

The Village at Odenton Station will set the standard in Odenton Town Center delivering new, restaurant/retail spaces from 900 sf to 9,000 sf in July 2012.

Call today to reserve your storefront space in this sustainable, BRAC ZONE community, which includes Ft. George G. Meade.

The Village at Odenton Station: Anne Arundel County’s first transit-oriented, mixed-use development

FOR MORE INFORMATION CONTACT: Patricia Palumbo Director of Leasing & Marketing (410) 902-0290 EMAIL:ppalumbo@mmc-mail.com Metropolitan Management Company 11299 Owings Mills Boulevard, Suite 200 Owings Mills, Maryland 21117 www.BaltimoreShoppingCenters.com

ROOFING/EXTERIOR METALWORK

denton Station, LLC, an affiliate of The Dolben Company, is developing The Village at Odenton Station, a mixed-use development consisting of 57,000 s/f of retail and 235 apartment homes in Odenton, MD. Founded in 1929, The Dolben Company has extensive experience in the planning, developing, construction and management of large mixed-use projects, and has been investing in real estate in the Baltimore-Washington metropolitan area since 1982.

Odenton is a planned urban center for west Anne Arundel County, and is located approximately halfway between Baltimore and Washington, DC. The Village at Odenton Station is Anne Arundel County’s first transit-oriented, mixed-use development, and is located in the core of Odenton Town Center. The development plan for Odenton Town Center includes six millions/f of office, retail, residential and hotel space, connected by the new Town Center Boulevard that will terminate at the Odenton MARC commuter rail station.

Located opposite the MARC station, and with excellent accessibility to Interstate Routes 295 and 95 and to State Rtes. 175 and 32, The Village at Odenton Station is less than two miles from Fort George G. Meade, Maryland’s largest employer.

Fort Meade boasts an average daily population of 109,000, including visitors, retirees,

more than 60,000 Department of Defense (DoD) and National Security Agency (NSA) employees, as well as military families residing on base in nearly 3,000 homes. A 1.5 million s/f expansion is underway as thousands of new government jobs relocate to Fort Meade, due to the Base Realignment and Closure

(BRAC) initiative. Relocating organizations include the Defense Information Systems Agency (DISA), Defense Media Publications, and The Adjudication and Office of Hearing and Appeals Offices. Approximately 12,000 BRAC-related positions will be in place by October 2011, with salaries ranging from $70,000 to

EXCAVATOR/DEMO/UNDERGROUND UTILITIES

$100,000+. Government officials and business leaders have stated that the region will undergo a rapid transformation, calling it the Infomatics Corridor, where high-level government and tech firms will merge into a synergetic commercial market.

Andrew K. Dolben, senior vice president of development at The Dolben Company, said, “We are extremely proud that The Village at Odenton Station is leading the way in carrying out Anne Arundel County’s vision for transit-oriented development. Thanks to the BRAC initiative, Odenton is experiencing rapid growth and is one of the few areas in the country where new construction is warranted.”

The property consists of 10.32 acres of land located at the corners of Town Center Boulevard and Duckens Street in Odenton.

The site is abutted to the west by the Odenton Town Center bike path, to the east by Duckens Street, to the north by to-bebuilt town home condominiums (currently a Public Works Department site), and to the south by the Odenton Station MARC commuter rail. Scheduled improvements along this section of Town Center Boulevard include free standing bank branches, a hotel and condominiums.

The project design includes four buildings of four stories each.

Three of the buildings are sited in a “U” shape creating an internal parking court for their first floor

retail stores. Each of these buildings has apartment homes on the upper floors over the retail level.

The fourth building at the rear of the site is solely residential. A central clock tower celebrates the project core and provides a focal point for shoppers and residents alike. A hiker/biker trail will be developed along the rear of the property, eventually connecting to a county-wide trail system.

First floor storefronts will be a combination of glass and stone panel with brick accents, while upper stories are treated with a combination of brick accent and clapboard siding. Residential limited access parking is managed in a combination of under ground and above ground garages in addition to the surface parking lots.

Retail parking is managed via surface parking, street parking, and parking during the evening

PROJECT TEAM

Owner: ...................................................................Odenton Station, LLC Developer: ......................................................The Dolben Company, Inc Architect: ...........................................................Daniel Ball & Associates Civil Engineer: ............................................................ Boyd & Dowgiallo Structural Engineer: ..........................................Skarda & Associates, Inc Geotechnical Consulting: .............................. Hillis-Carnes Engineering Excavator/Demo/Underground Utilities: ....................... CJ Miller, LLC Landscape Architect: ..........................................................Hawk Design Roofing/Exterior MetalWork: ...RCS Construction/Royal Gutter Service General Contractor: .........................Lend Lease (US) Construction, Inc. Acquisition, Development & Financing Attorney: ...Carney, Kelehan, Bresler, Bennett & Scherr, LLC Retail Leasing Agent: ...................Metropolitan Management Company

ARCHITECT

INC

VOSB

s

WBE

s

MHIC49843

s

LICENSED

Kevin J. King

s

BONDED

s

INSURED

7807 Cessna Avenue Gaithersburg, MD 20879 m a i n (301) 947-3950 Fa X (301) 947-3952 www.royalgutter.com

Principal

C E L L (240) 876-0777 Kevin@royalgutter.com

Providing Roofing, Cornice and Exterior Metalwork At “The Village of Odenton Station” 2//&).' s '544%23 s 3(%%4 -%4!, s #!20%.429 s 3)$).'

Proud to be Part of The Village At Odenton Station Project Team

5.$%2'2/5.$ $2!). !.$ $297%,, 3934%-3 2%.%7!",% %.%2'9 3/,54)/.3 s '2%%. 2//&).' !.$ 3/,!2 &!#),)49 -!).4%.!.#% !.$ 2%./6!4)/.

SNOW REMOVAL

3514 Basler Road • Hamptead, MD 12107 • 410-239-4204 www.cjmillerllc.com

hours at the commuter rail lot across the street.

The retail levels at The Village at Odenton Station have been designed for flexible subdivision into small or large bays, with store sizes from 900 to 9,000 s/f. Supported by current commuter rail parking for over 2,000 cars, a poll of Odenton commuters indicated a morning demand for a coffee shop, dry cleaner, fitness facility, pharmacy, business services, deli, banking and other financial services. A village grocer along with restaurants would complement the site. The theme will be “village retail,” providing services to the community’s residents as well as the thousands of commuters who use the Odenton commuter rail station. Residential and retail leasing at The Village at Odenton Station is expected to commence in Summer 2012. ■

Proud to be part of the Project Team as the Architect for The Village at Odenton Station

Services: Architecture Master Planning Commercial Interiors Adaptive Reuse Sustainable Design Historic Preservation Compliance & Implementation Consulting

5513 Twin Knolls Road, Suite 216, Columbia, Maryland 21045 Phone: (410) 715 - 0408 Fax: (410) 715 - 0969 dba-arch.com

Serving the acquisition, financing and development community 10715 Charter Drive, Suite 200 Columbia, MD 21044 410-740-4600

Washington: 301-621-5255 Washington Fax: 301-621-5273 Baltimore Fax: 410-730-7729

888 Bestgate Road, Suite 316 Annapolis, MD 21401 410-573-2001 Fax: 410-573-1171

212 West Main Street, Suite 102 Salisbury, MD 21801 410-860-1888 Fax: 410-860-1109

www.carneykelehan.com

GENERAL CONTRACTOR

Congratulations to The Dolben Company and The Village at Odenton Station for Project of the Month!

Lend Lease (US) Construction Inc. One Preserve Parkway Suite 700 Rockville, MD 20852 T 301 354 3100 F 301 354 3151

www.lendlease.com

14B — April 22 - May 12, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

MAREjournal.com

SHOPPING CENTERS COMMERCIAL REAL ESTATE

RETAIL COMMERCIAL REAL ESTATE

We’ve always been here.

Now, we’ll have a place to sit.

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

Ext.

Email Address

Chad Stine

253

cstine@bennettwilliams.com

Bobby Traynham

245

btraynham@bennettwilliams.com

Gary Russell

259

grussell@bennettwilliams.com

Bradley Rohrbaugh

251

brohrbaugh@bennettwilliams.com

Jeremiah Hamilton

232

jhamilton@bennettwilliams.com

Kevin Potter

256

kpotter@bennettwilliams.com

Gordon Kauffman

284

gkauffman@bennettwilliams.com

Adam Hagerman

235

ahagerman@bennettwilliams.com

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

717-843-5555

COMMERCIAL REAL ESTATE

Metro Commercial | Center City New office opening this spring in the heart of Philadelphia

Serving PA, NJ & DE since 1987 Property Marketing – Tenant Representation – Investment Sales Management – Troubled Assets & Receivership National Retailer Expansion & Disposition

123 South Broad Street, Suite 1835 Philadelphia, PA 19109 215-893-0300 www.metrocommercial.com

PM Page 1 RETAIL3/14/11 REAL8:19ESTATE LAW

maze_quarter.qxd:Layout 1

TAKE THE PATH OF LEAST RESISTANCE.

R

eal estate deals are often full of legal complexities.

It’s all too easy to find yourself stuck in a maze of twists and turns.

With Meislik & Meislik guiding you through, your real estate transactions will be done right, done fast, and done without wasted steps.

973 783-3000 www.meislik.com Montclair, New Jersey

We are seasoned professionals in the field of transactional real estate law with more than 20 years experience.

MAREjournal.com

Mid Atlantic Real Estate Journal — Shopping Centers — April 22 - May 12, 2011 — 15B

SHOPPING CENTERS Perfect Pita signs lease in NoMa

Tack of Capital Retail Group completes 2,940 s/f lease

REGIONAL FOCUS NATIONAL REACH Owner Representation

Over 20 Million SF in Owner Representation Assignments

Retailer Representation Over 75 Retailers Exclusively

Investment Sales

W

ASHINGTON, D.C., —According to Capital Retail Group, The Perfect Pita has signed a lease in NoMa, bringing hummus and a new frozen yogurt concept to this burgeoning neighborhood, which experienced a retail explosion in 2010 with eight new shops and restaurants. The highly visible location at 1300 Second St., NE, sits across from the Courtyard by Marriott and the New York Ave. Metro Sta-

E q u i t y R e t a i l ’s Jones facilitates 2,000 s/f lease

755 Bethlehem Pike.

MONTGOMERYVILLE, PA — Greg Jones of Equity Retail Brokers represented the landlord in leasing 2,000 s/f of space to Anthony & Sylvan Pools at North Wales Plaza, located at 755 Bethlehem Pike.

They will be opening a new prototype store in the center to better serve their customers and community.

“The transaction was unique”, said Jones. “There was currently a tenant in the space (Curves) that needed to be relocated….and quickly.” ■

Thalhimer arranges retail lease in West Broad Village

West Broad Village SHORT PUMP , VA — Bonefish Grill has completed a land lease at West Broad Village in Short Pump.

Bonefish Grill plans to build a free standing restaurant on a main entrance pad site in West Broad Village, fronting on West Broad St. The popular seafood chain plans to open to the public in early fall this year.

David M. Smith, CCIM of Cushman & Wakefield | Thalhimer represented Bonefish Grill in the lease negotiations. ■

Over $1 Billion in Properties Sold

Management Services

Over 11 Million SF in Property Management Assignments

www.famecoretail.com

Future Perfect Pita space tion, and adjacent to the head- which closed last year. quarters of the U.S. Bureau of “We are proud that we have Alcohol, Tobacco, Firearms and been able to lease to local entreExplosives (ATF). preneurs who are offering inThe 2,940 s/f space was formerly teresting restaurant concepts,” leased to Heidi’s Brooklyn Deli said leasing agent Robert Tack and Sisters Pizza & Mussels, with Capital Retail Group. ■

PHILADELPHIA, PA

WOODBRIDGE, NJ

633 West Germantown Pike, Suite 200 Plymouth Meeting, PA 19462 Phone: 610.834.8000 Fax: 610.834.1793

555 U.S. Highway 1 South, Suite 400 Iselin, NJ 08830 Phone: 732.526.9100 Fax: 732.526.9101

ATTENTION: Architects, Engineers, General Contractors & Construction Contractors

Promote your company, retail projects and expertise in MAREJ’s annual

Retail Architecture, Construction & Engineering Spotlight Issue Date: May 27th Deadline: May 10th Contact Elaine Fanning 800-584-1062 ext. 212 efanning@marejournal.com

16B — April 22 - May 12, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

MAREjournal.com

+

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

RD

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

MAREjournal.com

Mid Atlantic Real Estate Journal — Shopping Centers — April 22 - May 12, 2011 — 17B

+

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

RD

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

18B — April 22 - May 12, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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SHOPPING CENTERS Leases 26,930 s/f retail site in Cherry Hill Business Park Toth of Jackson Cross brokers 4,200 s/f

Cutler & Gordon at NAI Mertz negotiate sale of 42,000 s/f

Levin leases 30,861 s/f at Galloping Hill Center

C

HERRY HILL, NJ— NAI Mertz, Realtor, has announced the sale of Springdale Plaza at 1900 Greentree Rd. The seller is Springdale Plaza, LLC and the buyer is Springdale Center, LLC. Wayne Zerbo and Nick Aspras are the principals of Springdale Center, LLC. According to Marc Cutler, retail specialist at Mertz, and Rick Gordon, his team partner, the new owner purchased the Plaza as an investment, and plans to modernize it.

In a separate transaction, NAI Mertz has announced the lease of the 26,930 +/- s/f retail site at 2080 Springdale Rd. Jon Klear, sales associate, and Fred Meyer, SIOR, VP,

1900 Greentree Rd.

2080 Springdale Rd. negotiated the lease between Endurance Real Estate Group, owners of the Business Park, and Office Furniture Outlet.

Scott Mertz, SIOR, VP and Rebecca Ting, SIOR, were also involved in the lease negotiations. ■

Colliers Int’l. concludes 3,800 s/f lease PHILADELPHIA, PA — The Retail Division of Colliers International | Philadelphia recently concluded a long term lease with Dr. Martens for 3,800 s/f of retail space in Center City’s prestigious Rittenhouse Row. 1710 Walnut Street is the UK - based company’s fifth retail location in the US and its second on the East Coast.

“Dr. Martens is proud to be a part of Philadelphia’s strong retail market,” said Mike Vincent, C.O.O. of Dr. Martens. “We firmly believe our new Walnut

Street location will be a perfect fit for the brand!”

Before opening in September, the 3,800 s/f site will undergo a $300,000 – $500,000 rehab of the lower level and second floor offices to create a highend designer store - not unlike its SoHo, NYC location which opened November.

Michael Barmash and Michael Kahan of Colliers International facilitated the transaction, representing both the ownership, Weisberg Trust, and Dr. Martens. ■

Seabra Foods ribbon cutting UNION, NJ — Two new real estate services firm Levin tenants – A Seabra Foods and Management Corporation.

Koki Japanese Buffet – have Kessler will establish an outopened at Galloping Hill Cen- patient rehabilitation center ter in Union, announced Levin in a former Blockbuster space, Management Corporation, bringing a new service to the the retail property’s leasing local community and illusand managing agent. Levin’s trating the emerging trend Ethan Goldsmith negotiated of non-traditional tenants both long-term transactions, operating at shopping center bringing the 67,973 s/f prop- properties. erty to full occupancy.

“In the case of Aldrich Plaza, A Seabra Foods is a full-ser- this strategy has worked to vice grocer with an expanded everyone’s advantage, proethnic food component. The viding key services for local company took occupancy this residents while increasing the spring in a 30,861 s/f space occupancy at this well-located formerly housed by another property,” added Levin’s Stansupermarket tenant. Pri- ley Bernstein, who negotiated vately owned by a Portuguese- the Kessler lease. “And the American family. tenant enjoys the great visHOWELL, NJ — Kessler ibility that being in a shopping Institute for Rehabilitation center provides.” has leased a 4,200 s/f, padPatti Toth of Jackson Cross site building at Aldrich Plaza Partners represented the tenin Howell, announced retail ant. ■

Fameco’s Golom & Creed head Larken Associates signs 3,480 s/f at Tilghman Square Sports Clips Phila. expansion

SOUTH WHITEHALL, PA – Tilghman Square welcomed Bread Box and Metro PCS at the 230,264 s/f complex of retail and office space Bread Box occupies 2,480 s/f of space at Tilghman Square and Metro PCS occupies a 1,000 s/f retail store, according to Larken Associates, developer, owner and manager of the complex. ■

1710 Walnut Street

Tilghman Square

Sperry Van Ness – Miller Comm’l. negotiates 10,232 s/f lease FRUITLAND, MD — Brent Miller, CCIM, CPM, managing director of Sperry Van Ness – Miller Commercial Real Estate announced that It’s Fashion Metro is coming to Fruitland Plaza Shopping Center. They have leased 10,232 s/f of retail space located in the shopping

center anchored by Food Lion on Rte. 13.

Additional tenants in the shopping centers include: Aarons, Curves, Master Tax and Business, LLC, Beauty World, Dollar General, Night Hawk Martial Arts, and an out parcel restaurant, Lucky Star. It’s

Fashion Metro offers the latest trendy fashions for the entire family including urban – inspired, nationally recognized brands at low prices every day. The Cato Corporation who owns the store is a specialty retailer of value priced fashion apparel. ■

Landmark Commercial Realty, Inc. arranges 1,100 s/f lease HARRISBURG, PA — Dave Stewart has leased 1,100 s/f of commercial retail space located in at 23 S. 3rd St.

Drew Bobincheck, CCIM of Landmark Commercial Realty, Inc./ONCOR International represented the

landlord and Charlie Mallios of Alpha State Realty represented the tenant in the leasing transaction. ■

PLYMOUTH MEETING, PA — Sports Clips has signed 5 new leases in the Philadelphia region as part of its aggressive store roll out campaign.

Sports Clips is focusing its efforts on the Philadelphia region and Fameco Real Estate, L.P.’s Blake Golom and Jim Creed are spearheading the expansion in this market.

Fameco is also representing Sports Clips with its entrance into the central and northern New Jersey markets. ■

Sports Clips interior

ROCK Comm’l. completes 1,066 s/f lease YORK, PA — The Cheese Steak Spot leased 1,066 square feet retail space at 153 South Beaver Street in York, PA. ROCK Commercial Real Estate, LLC represented the landlord and Keller Williams Keystone Realty represented the tenant. ■

153 South Beaver Street

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Mid Atlantic Real Estate Journal â&#x20AC;&#x201D; Shopping Centers â&#x20AC;&#x201D; April 22 - May 12, 2011 â&#x20AC;&#x201D; 19B

SHOPPING CENTERS

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2010 WAS ANOTHER AWARDING YEAR FOR LEVIN MANAGEMENT! (AND 2011 ALREADY LOOKS LIKE IT WILL BE, TOO.) Weâ&#x20AC;&#x2122;re proud to have been named a Top Manager by Mid Atlantic Real Estate Journal.

And one of Americaâ&#x20AC;&#x2122;s top redevelopers by Chain Store Age. And one of Americaâ&#x20AC;&#x2122;s top 30 real estate companies, by Commercial Property Executive.

And one of Americaâ&#x20AC;&#x2122;s Top 50 Managers by Retail TrafĂ&#x20AC;c.

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(Maybe itâ&#x20AC;&#x2122;s because we think like an owner.)

HAMILTON PLAZA POST ROAD PLAZA FAIRLANE VILLAGE MALL HAMILTON TWP., NJ PELHAM MANOR, NY POTTSVILLE, PA Major renovation and ShopRite Voted Best Shopping Center 2nd Anchor market exceeding plan. expansion underway. New endcap, year in a row. Lease w. additional Pad site w/ US1 visibility bank and restaurant pads. available. department store being negotiated.

MAYFAIR SHOPPING CENTER COMMACK, NY Waldsbaumâ&#x20AC;&#x2122;s, Gap, Rite Aid, Talbotâ&#x20AC;&#x2122;s, Outback, Jos. A. Bank.

THE SHOPPES AT FLEMINGTON FLEMINGTON, NJ $144,809 AHI. J. Jill, Coldwater Creek, Talbots, Justice, Lenox, Massage Envy

SEE US IN VEGAS AT BOOTH S 550 U 800-488-0768 | www.levinmgt.com

Proudly operating 12,500,000+SF of Retail Real Estate Leasing | Property Operations | Financial Mgmt & Reporting | Lease Administration | Construction Services & Mgmt | Marketing | Property Disposition | REO Services All information is furnished without any warranty, representation or agreement and is subject to errors, omissions, changes or withdrawal without notice.

The reader is responsible for verifying any information. Licensed Real Estate Broker.

THE RETAIL REAL ESTATE EXPERTS

20B — April 22 - May 12, 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 P: 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

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

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

600 Grant Street • Suite 1400 Pittsburgh, PA 15219 P 412.471.9500 F 412.471.0995 www.cbre.com/retail24-7.com Herky Pollock • Jason E. Cannon Steven M. Esposito• Robert E. Gold

Colliers International – Wilmington, DE 300 Delaware Ave., Ste. 1018 Wilmington, DE 19801 P: 302-425-4000 F: 302-425-4700 Mark Undorf

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 DelÀner 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. Highway 1 Iselin, NJ 08830 P: 732-526-9000 F: 732-526-9101 www.famecoretail.com Tyler Bennett • Carlo Caparruva • Mike Horne Dan Spector • Steven Winters 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 • Jackie Balin • Rod Bell Brian Bruzek • Jeff Cohen • Chris Covello Jim Creed • Scott Dennis • Brandon Famous John Fasciano • Blake Golom • Michael Gray Dana Hawkins • Jerry Johnson • Jon Kieserman Adam Kohler • John Krause • Jon Kushner Dylan Langley • Gary Leone • Marc Mandel Matt Mandel • Jay Miller • Steve O’Malley David Orkin • Dale Peterson • Rick Schuch Julie Tanpitukpongse • Dave Vitali Rick Weinberg • George Wisnoski Marissa Visconsi • Fred Younkin

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

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

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Mid Atlantic Real Estate Journal — Shopping Centers — April 22 - May 12, 2011 — 21B

RETAIL BROKERAGE DIRECTORY David S. Feldman Regional Manager – Washington DC OfÀce Special Assets Services – Regional Director 7200 Wisconsin Ave. • Ste. 1101 • Bethesda, MD 20814 P: 202-536-3700 F: 202-536-3710 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

Danny Brooker, Josh Feldman, Brandon Jenkins, Kirk Knight, Ed Laycox, Nathan Pealer, Rudolph Rueda, Peter Snell

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 Summit 3435 Winchester Rd. • Ste. 300 • Allentown, PA 18104 P: 610-264-0200 F: 610-871-1700 summit@naisummitmrc.com www.naisummitmrc.com Tyler Chomik • John L. Crampsie, SIOR Jody King, CCIM • Dwight Musselman David Schumacher

Urszula Zoltek,Seth Pollack, David E. Thurston, Michael Lombardi, Brian SchiÀlliti, Greg Babaian Remco Realty Group 525 MIlltown Rd. • Ste. 101 • North Brunswick, NJ 08902 P: 732-253-0888 F: 732-253-0887 pgallicchio@remcorealty.net www.remcorealty.net Peter Gallicchio, Owner / President Spencer Yablon Vice President and Regional Manager 8 Penn Ctr. • 1628 JFK Blvd. • Ste. 1200 Philadelphia, PA P: 215-531-7000 F:215-531-7010 www.marcusmilllichap.com Derrick Dougherty, Matt Gorman, Tom Gorman, Matt Hardiman, Jordan Muchnick, Chris Munley, Brad Nathanson, Michael Shover, Mark Taylor, Dean Zang

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 Kurt Rumley • Mark Gerlach • Mary Hughes • Mike Gorman Paul Friedman • Paul Rumley • Pete Nicholson Rob Cooper • Tom Londres Metro Commercial - Conshohocken, PA Eight Tower Bridge • 161 Washington Street #375 • Conshohocken, PA 19428 P: 610-825-5222 F: 610-826-5156 Brian Goodwin • Donna Drew • Glenn Marvin Joe Dougherty • Mike Murray • Randy Hope Steve Gartner • Steve Niggeman

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

Silbert Realty & Management Company, Inc. 85A Division Ave. • Millington, NJ 07946 P: 908-604-6900 F: 908-604-2030 www.silbertrealestate.com info@silbertrealestate.com Brian S. Silbert • Joel Tomlinson Dominick V. Paragano • Wayne Kasbar David A. Greenman • William Ray

Soloff Realty & Development, Inc. Eight Tower Bridge • 161 Washington Street Suite 920 • Conshohocken, PA 19428 P: 610-834-0400 F: 484-534-2102 Broker: Richard L. Soloff Richard@soloffdevelopment.com Retail Brokerage * Development * Consulting PA, NJ & DE

Welco Realty, Inc. 2525 Palmer Avenue • New Rochelle, NY 10801 P: 914-576-7500 F: 914-576-7596 www.welcorealty.com Jerry Welkis • David Sternschuss • Allen Cooperman Susan Welkis • Antoinette Calisi • Jason Gerbsman Stephan Miller • Tod Heller • Etan Shalem Bob McCory • Dave Shaloum

If you would like to appear in the Retail Directory, 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

please ¿ll out coupon and fax or email to Elaine Fanning

Check here if you’d like a special listing (includes logo and border) Single Block (2x2) — $50.00 Double Block (2x6) — $100.00 Company Name: _________________________________________________________________ Address:________________________________________________________________________ Telephone/Fax:__________________________________________________________________ E-Mail: _____________________ ___________________________________________________ Website:________________________________________________________________________ Commercial Brokers: ______________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ ______________________________________________________________________________ Elaine Fanning Mid Atlantic Real Estate Journal | 1-800-584-1062 | fax: 781-871-5299 | e-mail: efanning@marejournal.com

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REAL ESTATE JOURNAL The Most Comprehensive Source For Commercial Real Estate News

Elaine Fanning, Publisher Ph: 800-584-1062 x 212 Fax: 781-871-5299 efanning@marejournal.com www.marejournal.com P.O. Box 26 Accord, MA 02018

22B — April 22 - May 12, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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PEOPLE ON THE MOVE Focus on workouts and distressed debt transactions Kasten, Loebenberg & Tesler present topics

Llenrock Group welcomes Wachs as senior advisor

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HILADELPHIA, PA — Llenrock Group announced the addition of Michael Wachs as a senior advisor to the firm, where he will focus on workouts and distressed debt Michael Wachs transactions.

Wachs is the founder and principal of Linden Lane Advisors, LLC , which specializes in real estate related investment, development and advisory. Linden Lane focuses on the Mid-Atlantic region with Philadelphia as its base and have acquired,

developed, managed and raised equity and debt for more than $500 Million worth of real estate projects spanning the multifamily, retail, industrial, office, hospitality and land development sectors.

Prior to forming Linden Lane, Wachs co-founded Spring Mill Capital Management, LLC, and was president and chief operating officer of AMC Delancey Group, Inc. In addition, Wachs brings a diverse finance background in banking, having worked for First Union Bank and its predecessors in various capacities and departments including, in Real Estate Asset Recovery, Derivatives Group,

specialized lending, as well as a senior credit officer.

Wachs is actively involved in many real estate industry groups, including ICSC, ULI and NAIOP where he serves on the Philadelphia Board and is a member of the National Board of Trustees. Wachs also serves as a Trustee of certain mutual funds affiliated with ProFunds Group, the largest provider of short and magnified exposure indexed funds with over $30 billion in assets in more than 200 funds.

Wachs earned a Bachelor of Arts in Economics from George Washington University and a Masters in Business Administration from Drexel University. ■

Forest City & PlaceWise Media introduce digital network connecting shoppers with malls, retailers and brands CLEVELAND, OH — Forest City Commercial Management, in partnership with PlaceWise Media, announced the launch of the Shoptopia Network. Shoptopia will unite the industry’s small and midsized shopping center developers nationwide as the nation’s largest integrated media network.

Shoptopia combines online, social, mobile and digital screen-based communications into an interactive experience and relationship with consumers. This expansion of the original Shoptopia service, an online shopping community jointly created by Forest City and PlaceWise Media, is a network designed to enhance the relationship among malls, retailers, brands and shoppers with an interactive experience before, during and after shopping.

“The Shoptopia Network engages our shoppers with insights to all things fashionable, special offers and feedback from their peers,” said Jane

Bock joins Taylor Long Properties GLEN ALLEN, VA — Brian R. Bock has joined the retail brokerage team of Taylor Long Properties as commercial sales & leasing and investment manager. ■ Brian R. Bock

Lisy, Forest City Enterprises VP of marketing for commercial management and chairwoman of the Shoptopia Network Advisory Board. “It’s a perfect integration of all the digital and physical shopping experiences. Shoppers are engaged, informed and rewarded for their participation.”

Shoptopia enables shoppers to gain insider knowledge and receive special offers, rewards and event invitations. Content is syndicated and broadcast through personal computers, mobile devices, tablets, and inmall digital experience walls, providing consumers with real digital interactions that are natural extensions of the shopping experience.

As PlaceWise’s charter partner for the original Shoptopia community, Forest City conducted a two-year study to explore the future of retail center marketing. A key focus of the study was the need to

better understand digital channels and their influence on both online and bricks and mortar purchasing habits. Finding that frequent online shoppers still highly value the in-mall shopping experience, Forest City recognized that the integration of social networking channels with in-mall shopping was necessary to engage shoppers and provide them with a complete experience.

“What makes the Shoptopia Network so interesting and valuable is the targeted communication with shoppers during their entire shopping experience,” said Mort Aaronson, chairman and CEO of PlaceWise Media. “This network delivers timely and relevant content to shoppers via the communications medium of their choosing.”

At launch, Shoptopia is at 16 Forest City retail centers and will reach 12 million monthly shoppers. ■

MCRES execs. to lead RECon 2011Roundtables LAKEWOOD, NJ — Three executives from Madison Commercial Real Estate Services (MCRES) have been chosen to lead professional roundtables at RECon 2 0 11 , t h e world’s larg- Daniel Kasten est gathering of retail real estate professionals. Daniel Kasten, C PA , E l i Loebenberg, CPA, Eli Loebenberg and David Tesler, Esq., are among the industry experts who will be presenting at the convention, to be David Tesler held at the Las Vegas Convention Center, May 22-25. The roundtables will be held on Monday, May 23rd from 7 to 8 a.m. in the North Hall. Sponsored by the International Council of Shopping Centers (ICSC), RECon attracts more than 1,000 exhibitors and 30,000 attendees each year.

“RECon is the most influential retail real estate convention in the world, where roughly 50% of all shopping center deals are initiated or finalized each year,” said Elliot S. Zaks, MCRES’ Director of Operations. “We are pleased to have three of our executives included among the top-tier of speakers shaping the future of the retail

real estate industry.”

Kasten, MCRES’ chief financial officer, and Loebenberg, CEO of Madison SPECS, will be leading a roundtable discussion entitled “Making the Most of the Latest Real Estate Income Tax Regulations.” Focusing on how commercial property owners and investors can lower their tax liability and improve their cash flow, they will examine the current benefits of two valuable, yet often overlooked or misunderstood, tax strategies: cost segregation and §1031 Exchanges.

Tesler, founder and CEO of Real Diligence, LLC, will lead a roundtable discussion entitled “Current Best Practices in Financial Due Diligence for Commercial Real Estate.” Focusing on the need for timely, rigorous and independent financial due diligence, Tesler will discuss best practices and ways to avoid common pitfalls when acquiring commercial real estate, especially when considering distressed assets.

MCRES is a group of independent but related companies that offer specialty services for the commercial real estate market nationwide. Each company excels in a specific, highly specialized area of expertise. MCRES companies include: Madison Title Agency, a nationwide title agency; Madison SPECS, offering expert cost segregation studies; Madison Exchange, one of the nation’s leading Qualified Intermediaries; and Real Diligence, offering accurate and reliable financial due diligence for commercial real estate acquisitions as well as distressed asset acquisition support. ■

Sperry Van Ness – Miller attends The 2011 ICSC Mid -Atlantic conference NATIONAL HARBOR, MD — Brent Miller, CCIM, CPM, Henry Hanna, CCIM, SIOR, Brittany Danahy, CCIM, Wesley Cox, CCIM, and Casey Kenton, CCIM, advisors with Sperry Van Ness – Miller Commercial Real Estate attended the International Council of Shopping Centers (ICSC) Mid - Atlantic conference and deal-making session held at the Gaylord Conventional Center. In attendance were various shopping center owners, brokers, retailers and vendors making their annual appearance to

discuss the current state and expected direction of the Baltimore-Washington-Northern Virginia marketplace. Overall, the outlook was a positive one with attendees optimistic about the year ahead and ready to make deals. Hanna said that “attendance was up for the 2011 conference”. He stated that they “had appointments with two retail companies that have already visited the Eastern Shore to look at sites for new retail locations on Delmarva and they have a much brighter outlook for the economy this year.” ■

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Michael Kercheval President & CEO ICSC

Mid Atlantic Real Estate Journal — Shopping Centers — April 22 - May 12, 2011 — 23B

Peter Sharpe ICSC Chairman

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

VP & Trustee

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

May 22-25, Las Vegas Convention Center

Put business in focus at ICSC’s 2011 RECon Conference

N

EW YORK — The International Council of Shopping Centers (ICSC) has announced that RECon, the world’s largest gathering of retail real estate professionals, will feature methods Michael Kercheval to put business back in focus with a positive outlook for the future. RECon 2011 will take place May 22-25, and all events, Leasing Mall, Trade Exposition, and educational sessions, will now take place exclusively at the Las Vegas Convention Center in Las Vegas, Nev.

“The shopping center industry was able to show its strength and flexibility to withstand the economic downturn over the last few years.

As we enter a new era for the industry, new challenges and opportunities present themselves and RECon continues to be a vital resource for shopping center professionals to stay in the know,” said ICSC’s president and CEO, Michael P. Kercheval. “While RECon is and always will be an invaluable opportunity for retail real estate professionals to network, make deals, and create business partnerships, this year we have focused educational sessions on ways to ensure future success, so that attendees are well pre-

pared to meet the challenges that lie ahead and capitalize on opportunities as they present themselves,” Kercheval added.

RECon will kick off on Sunday, May 22, 2011 with a introductory orientation and educational sessions designed specifically for first time conference attendees. These sessions will navigate the “ins and outs” of the event, acclimating new comers on how to maximize their RECon experience. An exciting new Retailers Program begins at 10:00 a.m., available to any paid attendee who works specifically in the retail field.

Special workshops focused on retail initiatives, a luncheon, and Special Industry Groups

(SIGs) on fifteen topics directly impacting today’s industry will also be offered during this program.

The Leasing Mall, Trade Exposition, and Green Zone will open promptly at 8:00 a.m. on Monday, May 23. RECon’s newly combined Leasing Mall and Trade Show exhibition will consist of about 1,000 exhibitors, including products and services as well as developers and retailers, all on one show floor encompassing 1.2 million square feet of exhibition space. Nearly 50 educational sessions and workshops are featured at RECon 2011 and will take place through out the convention; these sessions are led by shopping center industry experts and veterans. ■

Susan Jones Director, S.VA

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 Kockman 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 Lowe’s Companies Alliance Co-Chair

Many exciting opportunities await!

If you would like to participate in the Shopping Centers Section Contact Elaine Fanning ~ 1-800-584-1062 ext 212 ~ efanning@marejournal.com

PA/DE/S.NJ: Next Generation Chair Edward A. Shriver, Jr Eric Strada S. Penney CentroDC/MD/N.VA: Properties Group Freddie L. Archer Lewis Real Idea Exchange Estate Services S.VA: Program Planning ComMatthew L. Lafler mittee Co-Chair Commercial Real Timothy Rubin Estate Services PREIT Next Generation Chair PA/DE/SNJ: Idea Exchange Jordan Claffey Program Planning ComSNJ: LindseyCo-Chair C. Floyd mittee Centro Properties Group Brandon Famous Thalhimer Fameco DC/MD/N.VA: Jarett L. Parker Kimco Corporation

24B — April 22 - May 12, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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Mid Atlantic Real Estate Journal — Shopping Centers — April 22 - May 12, 2011 — Inside Back Cover B

Back Cover B — April 22 - May 12, 2011 — Shopping Centers — Mid

Atlantic Real Estate Journal

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CONTRACTORS, OWNERS & MANAGERS

NJPA M A ID

TLANTIC

REAL ESTATE JOURNAL

Section C of the Mid Atlantic Real Estate Journal

Additions meet The Collaborative for High Performance Schools guidelines

Stalco and John A. Grillo complete $30 million expansion and renovation

E

AST SETAUKET, NY — General contractor Stalco Construction, Inc. and the office of John A. Grillo, Architect, PC completed the $30 million, 176,000 s/f, multi-phase and multi-site Three Village Central School District’s capital improvement program in Suffolk County on Long Island. The project team also included the structural engineering firm of Eipel Barbieri Marschhausen, LLP (EBM).

APRIL 22 -

Three Village-Ward The Three Village Central ambitious expansion and renoSchool District undertook an vation program aimed at improving the district’s facilities, which encompass three high schools and five elementary MAY 12, 2011 schools with the total enrollment of 7,600 students. The district’s goals included increasing the number of high school classrooms, expanding the performing arts and athletic facilities, and improving

HI-LIGHTS

Bed bug-sniffing dogs: The latest weapons in detection Heavy infestations are easy to verify, but challenging to treat. You want to locate and treat bed bugs early before they become entrenched.

See Page 4C.

Becker Morgan Group receives engineering award The American Council of Engineering Companies of DE recently presented Becker Morgan Group with a 2011 Engineering Excellence Conceptor Award. See page 18C.

ALSO INSIDE: MICHAEL REGINA, BIG SKY ENTERPRISES ..........................2C PEOPLE ON THE MOVE .........................................................18C CONSTRUCTION LAW & COST OVERRUNS ......................... 5-13C NJAA ORGANIZATION .........................................................15C MULTIFAMILY ................................................................. 15-17C BOMA NJ ORGANIZATION ..................................................19C IREM ORGANIZATION ............................................... 20-IBC-C Section C, 24 pages

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the energy efficiency of the buildings. All additions and expansions meet The Collaborative for High Performance Schools (CHPS) guidelines.

Stalco performed the majority of construction work while the schools were occupied. To ensure the safety of students and staff, the construction team erected extensive safety fences, barricades and temporary walls. Noisy activities and demolitions were performed at nights, on weekends, and during school recesses. Truck deliveries took place at dedicated entrances, inaccessible to students.

The program included ground-up additions and renovations at the Ward Melville High School in East Setauket; P.J. Gelinas Junior High School

in Setauket; and R.C. Murphy Junior High School in Stony Brook; as well as renovations to all three high schools and four elementary schools – the Arrowhead Elementary and Nassakeag Elementary in Setauket, Setauket Elementary in East Setauket, and W.S. Mount Elementary in Stony Brook.

The Ward Melville High School additions and expansions encompassed the twostory, 50,000 s/f science wing housing 16 classrooms, 4,000 s/f fitness center, and 6,400s.f. music wing with the 4,000 s/f band and chorus room and 2,400 s/f orchestra room. Renovated areas included the 16,000 s/f auditorium, library, classrooms, hallways, and bathrooms. ■

Of historic Park Avenue Armory

Tishman Construction manages facilities and systems upgrade NEW YORK, NY — Tishman Construction has completed work on key facilities upgrades for Park Avenue Armory—including overhaul of its electrical systems, upgrade of its structural components, and stabilization of its infrastructure—supporting the nonprofit’s transformation into one of NYC’s most dynamic cultural institutions. The Armory, built by the National Guard’s prestigious Seventh Regiment in the 1880s and now a national historic landmark, is one of the city’s most exciting buildings due to its rich military, social, arts and architectural lineage.

The Armory is grand in size as well, filling an entire block between Park and Lexington Avenues and 66th and 67th Streets. Known for successfully managing the complexities of sustainable building, TCC is part of AECOM Technology Corp., a Fortune 500 provider of professional technical and management support services for government and commercial clients around the world.

Park Avenue Armory Tishman overcame several interesting challenges as it managed installation of modern amenities (air conditioning, theatrical production lighting, motorized “black-box” black-out curtains on windows, additional bathrooms) that extend the Armory’s ability to stage high-end events year-round and at any time of day. The work was undertaken to stabi-

lize the deteriorated building in advance of a major restoration and revitalization project, the details of which the Armory will unveil later this year. The entire project, designed by Herzog & de Meuron with Platt Byard Dovell White as executive architect, is being built to LEED Silver standards.

“We are thrilled to have made so much progress in stabilizing this historic treasure as a nontraditional home for the arts,” said Rebecca Robertson, president and CEO of the Armory.

“The Armory is an exceptional building, reflecting the most cutting-edge designers of a previous era, and now providing a home for contemporary, cutting-edge arts productions.

The building and its interiors must be treated with the utmost respect for detail and historic preservation. Our colleagues at Tishman have been terrific partners in this project, injecting an intense level of care into the intricate process of stabilizing and upgrading this extraordinary space.” ■

C Inside Cover — April 22 - May 12, 2011 — Contractors, Owners & Managers — Mid

Atlantic Real Estate Journal

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Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — April 22 - May 12, 2011 — 1C

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2C — April 22 - May 12, 2011 — Contractors, Owners & Managers — Mid

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MAREJ COM

By Michael Regina, BIG SKY Enterprises

Benefits of Building in a Bad Economy

T

here is no doubt these are extraordinary times. Highly volatile market conditions and ongoing uncertainty have made it duly challenging for the commercial construction industry and its Michael Regina trade partners. Amid the current economic downturn, now may not seem like a good time to build – especially in the commercial sector. However, while perspectives may differ, there are many benefits of building in a bad economy, which can present unique opportunities.

The key is knowing what to look for and maintaining a forward-thinking “visionary” mentality.

“In any tumultuous period of change, the ‘doom and gloom’ set will always find reasons to postpone building projects, but those who actively seek the silver lining and closely assess timing-based opportunities can gain significant advantages,” notes Michael Regina, owner of BIG SKY Enterprises.

Here are four favorable reasons to pull the trigger on a commercial construction initiative during an economic downturn: 1. Deeply Discounted Real Estate The U.S. has seen property values for commercial real estate drop 20-45% across the board. In the western states the decrease has been even deeper.

A good example is a recent deal on a piece of land that was under contract in 2007 for $1.5 million. Eventually, that deal fell apart in the development process for the previous buyer.

Now, the current price being paid for that same parcel is $800,000.

The same goes for new office buildings that sold for $2.4 million in 2008 that are now selling for $1.6 million in 2011.

Even landlords are doing everything possible to protect their portfolios -- from giving away free rent for a year to dropping rental rates to 2001 levels.

Owners are looking to reduce their losses. Consequently, this puts more power and control in the hands of the buyer. Additionally, given the fact that real estate owners are cash poor and looking to convert their assets, there is a large supply of land and existing buildings on the market.

2. Rock Bottom Interest Rates It may be difficult to remember the last time commercial interest rates were this low.

It was, in fact, approximately 20 years ago, dating back to the early 1990s. Comparative analysis on new commercial interests in certain markets shows that, today, it is cheaper to own a building than to rent, opting to forego paying someone else’s mortgage when rates are so low. Like owning a house, commercial real estate should also be viewed as a long-term investment where it doesn’t make sense to just throw money at a landlord each month. In today’s market, it’s a great time to buy and build.

3. Streamlined Processes Despite downturns, one thing that is full steam ahead is streamlined processes. Even five years ago, it seemed to take a lifetime to get any new project approved through various local, county and state governing agencies. This is definitely not the case today. Now, it appears

that these same agencies are starving for fees and are desperate for new projects, when one bears in mind that the fees new development brings support many of these agencies.

It’s not uncommon for townships to call construction firms inquiring about new submissions. These agencies need to support the departmental staff who process project paperwork and are eager to know what’s in the minimized pipeline. The combination of technological efficiencies and eager reporting agencies have swung the pendulum back in the favor of construction companies who used to be at the mercy of the paperwork bottleneck. In a slow economy, there is a greater abilcontinued 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 — April 22 - May 12, 2011 — 3C

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4C — April 22 - May 12, 2011 — Contractors, Owners & Managers — Mid

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Bed bug-sniffing dogs: The latest weapons in bed bug detection

L

ooking forward to this summer? According to research entomologist Jeffrey White, so are bed bugs. Bed bug infestations are expected to surge. New Jersey, with its significant daily movement of people and goods in and out of New York City, the unofficial bed bug capital, will also feel the pain. News reports of the rise of bed bug infestations are often disheartening. But finally, there is something new and exciting to report in the fight against these creepy crawlers.

It’s all natural, friendly, and goes by the name of Scout or one of the other highly trained bed bug detection dogs.

Scout These dogs diligently sniff out these repulsive blood-sucking parasitic insects with uncanny accuracy. Said Bill Cowley of Cowleys Termite & Pest Services, “Cost-effectively locating

these elusive insects can be a challenge especially in large multi-room structures. Pest control professionals are realizing the time and cost savings of enlisting bed bug sniffing dogs to help conduct preliminary inspections.”

According to Cowley, “Although bed bugs can wind up anywhere, structures with transient populations such as hotels, hospitals, apartments, university dorms, and other multi-type dwellings are particularly at risk. While scent-detection dogs certainly help in single-family homes to pinpoint bed bug locations, for large square footage structures, these dogs are worth their weight in gold. “ Because of their size – an adult is about the size of a flattened apple seed – bed bugs are able to hide in cracks the width of a playing card. So when locating just a few bed bugs, a canine has a distinct advantage over time-consuming human visual inspections.

Added Cowley, “Heavy infestations are easy to verify, but challenging to treat. You want to locate and treat bed bugs early before they become entrenched. Scent-detection dogs can quickly pinpoint even just one bug. Hotels and other continued on page 18C

Benefits of Building in a Bad . . . continued from page 2C ity to control more parts of the process in relation to agencies, which makes it a great time to build.

4. Reduced Cost of Labor, Materials and Services The law of economics states that when there is an excess supply of any good or service the cost of that good or service will drop. This is the case with the cost of labor, goods and professional services. Various trades are constantly seeking work from any projects that can be generated during this downturn. This was quite different in 2006 when these same companies were turning down work just as fast as they were growing business with the surplus work they already had.

Today, companies are willing to cut their prices in order to keep their employees, resulting in decreased labor and services costs.

Michael Regina is the cofounder and owner of BIG SKY Enterprises. ■

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Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — April 22 - May 12, 2011 — 5C

22nd ANNUAL NJAA CONFERENCE & EXPO MAY 23 – 25, 2011 ATLANTIC CITY

Charting the Path to Success: Tools to Empower Today’s Apartment Professionals The NJAA Annual Conference & Expo is the ultimate industry showcase for New Jersey’s multifamily housing professionals to connect and learn how to navigate today’s rapidly changing marketplace for success. This year’s show will give you access to: - More than 1,300 New Jersey apartment industry professionals ready to learn, network, and build partnerships - A packed show floor loaded with the latest products and services - A conference program filled with the latest information on the topics concerning you and your team—from lead remediation to the newest technologies for prospecting new leads - More networking than ever—from the golf outing to show floor to the Anniversary Reception Don’t miss out on your opportunity to stock your business toolkit with the invaluable opportunities the NJAA Conference & Expo offers

RE G I S TE R TODAY! Visit www.njaaconference.com for upto-date Conference & Expo information including schedule, floor plan, exhibitor list and sponsorship opportunities.

Exhibit Booths are still available, check out the floor plan and choose your booth today.

Convention and Golf Registration are now open. Download registration forms from the conference page.

For additional information contact Jean Maddalon at events@njaa.com or (732) 992-0600.

New Jersey Apartment Association - Headquarters 104 Interchange Plaza, Suite 201, Monroe Township, NJ 08831 Phone: (732) 992-0600 Fax: (609) 860-0060

6C — April 22 - May 12, 2011 — Contractors, Owners & Managers — Mid

Wanted

Authors with a flair We are searching for high-level professionals to write a by-lined article about their area of expertise for upcoming spotlight features.

Suggested topics include, but are not limited to: Development • Industrial Market • Multi-Family Market • Retail Market • Distribution Centers • Mediation • Real Estate Law • Mold • Environmental • Architecture • Engineering Reserve your topic soon, only one writer per topic.

Based on a first to reserve basis.

For more information call

Joe Christman - 800-584-1062/781-871-5298 jchristman@marejournal.com

YOU are invited to PARTICIPATE IN MAREJ’s COM section !!!

CONTRACTORS & SUBCONTRACTORS MAY 27TH ISSUE deadline May 13 & SUBCONTRACTORS MAY 27TH ISSUE deadline May 13 BUILDING FACILITIES MAINTENANCE JUNE 24TH ISSUE deadline June 10 ARCHITECTS & ENGINEERS JULY 22ND ISSUE deadline July 8 If you would like to submit articles or news to appear in the Mid Atlantic Real Estate Journal, please contact:

Joe Christman, Publisher 800-584-1062 x 202 or email Joe at: jchristman@marejournal.com

Atlantic Real Estate Journal

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MAREJ COM To Manage Commercial and Residential Holdings

The Graham Companies select Yardi Voyager

S

ANTA BARBARA, CA — The Graham Companies have selected Yardi Voyager as the new property management and accounting platform for their commercial and residential assets.

D u r i n g a Terri Dowen recent internal performance review, The Graham Companies concluded that managing an increasingly diverse portfolio that includes commercial

and residential properties, golf and spa resorts, hotels and farming operations required a new platform that would provide them more flexibility.

“We have 500 commercial tenants and every lease is different, so Voyager’s ability to accommodate all the various terms is very attractive to us.

Voyager will also handle our accounts payable and general ledger operations efficiently and calculate common area maintenance recoveries quickly and accurately,” said Andre Teixeira, executive vice president and chief financial officer

for The Graham Companies.

“For our residential properties, Voyager will enhance enterprise-wide oversight and allow us to change pricing rules quickly across the portfolio.”

“Along with meeting The Graham Companies’ current needs, Voyager can be easily extended to accommodate their future needs as well.

These include budgeting and forecasting, job costing, online tenant and resident self-services, and other operations,” said Terri Dowen, senior vice president of sales for Yardi. ■

CAI awards Access Property Management FLEMINGTON, NJ — The Community Association Institute recognized three Access Property Management employees at their annual dinner on March 3. Jacquie Dolan Rogers, APM property manager was given the prestigious Candice Bladt Community Manager of the Year award for her commitment to the Hills Highland Master Association.

Ted Judah, APM property manager was awarded the Committee of the Year for his groundbreaking efforts on the Southwyck Golf Committee and Denise Lindsey, APM vice president was recognized as Speaker of the Year.

The Candice Bladt Community Manager of the Year and

Committee of the Year awards are selected by a nominating committee of property management peers. “We’re very proud of Jacquie and Ted, they give 150 percent to their properties and board members,” said Wayde Scheffer, Access Property Management’s CEO. Unlike the other winner categories, CAI’s Speaker of the Year winner is selected based on audience feedback and speaker rating scales.

Recipients must possess a strong proficiency and willingness to share their skills “Denise’s expertise in property management practices and 25 years of hands on experience enable her to share a wealth

of knowledge with our clients,” said Scheffer.

Access Property Management recently hosted a seminar series for their clients and guests regarding rules and regulations for board members. At the seminars, Lindsey presented current scenarios and useful strategies for audience members.

Access Property Management (APM), LLC is a full service management company for common interest community associations and commercial properties throughout New Jersey and eastern Pennsylvania. APM is an accredited Association Management Company and Accredited Management Organization. ■

Tindel Windows and Lawrence Restoration form alliance WHITESTONE, NY — Two of the New York Metro area’s building envelope renovation companies recently announced a strategic alliance.

Tindel Windows and Lawrence Exterior Restoration have joined forces under the same ownership. Their objective

is to offer a full complement of professional services for both window installation and all aspects of façade/roofing restoration to the real estate community. “ Ti n d e l i s w e l l k n o w n throughout the New York Metro Area as the premier

window installation company.

Lawrence Exterior Restoration is an equally outstanding company, which has developed a reputation for excellence in its field over the last 11 years,” said Andrew Sirotkin, one of the principal partners of Tindel and Lawrence. ■

CONTRACTORS, OWNERS & MANAGERS SPOTLIGHT

CONSTRUCTION LAW & COST OVERRUNS MAREjournal.com

Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — April 22 - May 12, 2011 — 7C

Andrew Cohn

Ericson P. Kimbel

Veronica Faust

Don Richardson

Marc Furman

Ann M. Waeger

Robert Watson, Jr.

Andrew Cohn, Kaplin Stewart ........................................................................................................................... 8C Don Richardson, CPG, EWMA .......................................................................................................................... 9C Marc Furman and Ericson P. Kimbel, Cohen Seglias Pallas Greenhall & Furman, PC................................... 10C Veronica O. Faust, Bifferato LLC ......................................................................................................................11C Ann M. Waeger, Farer Fersko ......................................................................................................................... 12C Robert R. Watson, Jr., Eastburn and Gray, PC ............................................................................................... 13C

8C — April 22 - May 12, 2011 — Construction Law & Cost Overruns — Contractors, Owners & Managers — Mid

Atlantic Real Estate Journal

MAREjournal.

CONSTRUCTION LAW & COST OVERRUNS

By Andrew Cohn, Kaplin Stewart

For relief from liability claims, First look to the Statute of Repose

I

n today’s litigious environment, it is not unusual for claims to be asserted for bodily injury or property damage in connection with building construction completed years earlier.

Claimants c a n a s s e r t Andrew Cohn that concealed construction deficiencies, or latent design defects caused a condition which led to an injury to a person or

to property. Such claims can be serious depending on the nature of the injury alleged.

designers, and contractors can allege significant damages resulting from conditions

When faced with a claim for bodily injury or damage to property alleged to arise from deficient construction or design, first look to the applicable statute of repose for relief.

For example, suits brought on behalf of homeowners’ associations against developers,

which are claimed to have been concealed or dormant for many years.

Such claims can be difficult to defend, because of the passage of time between the design and construction activity and the alleged damage. The passing of time can result in relevant records having been destroyed or lost. The personnel involved in the construction may no longer be with the defendant company, or even if they are, the passage of time results in memory loss of potentially key facts.

In recognition of such difficulty, most states have passed laws called statutes of repose.

These laws bar actions for design or construction deficiencies, whether based in contract or tort (negligence), if the claim is asserted beyond a defined time period after constructing or design work was completed.

Statutes of repose differ from statutes of limitations, which typically require that legal claims be filed in court within a time period commencing when a cause of action accrues.

The exceptions to a statute of limitations, like allowing a claim to be asserted beyond the applicable period of limitations if the Claimant did not, or could not have recognized that a cause of action exists, do not apply to claims barred by a statute of repose.

Statutes of repose create an absolute bar to claims for bodily injury or damage to property if they are filed beyond the defined statutory time period. The statute of repose time period varies from state to state. In Pennsylvania, the time period is twelve (12) years from the date on which construction was completed or on which the design service was provided. In New Jersey, the repose period is ten years.

In Delaware, it is six years.

These statutes can be a powerful defense to stale claims for bodily injury or property damage. Recently, I represented a general contractor which was named as a defendant in a large, complex, multi-defendant property damage claim alleged to arise from supposed deficient construction. The claim was filed in New Jersey, but more than ten years after the contractor client had substantially completed its work. The defense costs for this claim alone would have been substantial, and there were insurance issues which might have precluded coverage for the claims. However, I was able to secure complete dismissal of the claim based on application of New Jersey’s statute of repose.

When faced with a claim for bodily injury or damage to property alleged to arise from deficient construction or design, first look to the applicable statute of repose for relief.

Andrew Cohn is a principal in the Construction Law and Mediation and Arbitration groups of Kaplin Stewart in Blue Bell, Pennsylvania. ■

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Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — Construction Law & Cost Overruns — April 22 - May 12, 2011 — 9C

CONSTRUCTION LAW & COST OVERRUNS

By Don Richardson, CPG, EWMA

Controlling post remediation care cost and liability risks

I

mplementing institutional and engineering controls is a highly effective means to perform cost effective risk-based cleanups. By using these site controls the responsible (or remediating party) ben- Don Richardson efits by reducing the scope (and cost) of site cleanup and safely leaving a legacy of low levels of contamination that is consistent with future site use. The tradeoff, however, is risks that arise for long-term post remediation care obligations after cleanup completion.

These obligations may have a significant long-term cost and liability implications.

State and federal regulators across the country are developing new policy, generating more ways to collect fees and deploying new technology to monitor post remediation care compliance. While this trend supports the regulators’ goal to enhance protection of human health and environment associated these site controls, the burden and risks to maintain compliance rest with the responsible (or remediating) party. Recent regulatory reform by the New Jersey Department of Environmental Protection (NJDEP) is an example of these trends. EWMA has a solution to meet these risks for managing cost and liability risks.

To increase compliance with post remediation care requirements, the NJDEP recently instituted a remediation action permit (RAP) program for both soil and groundwater institutional and engineering controls. The new RAP program’s framework is similar to the existing biennial certification program, with some exceptions. One key difference is a new financial assurance requirement for implementing engineering controls. Financial assurance obligations are tied to the cost to monitor and maintain the engineering controls. Typical engineering control costs can range from $10s to $100s of thousands over the life of the control (up to 30 years). Remediation trust agreements, bank letters of credit guarantees, and environmental insurance are listed

as the only NJDEP acceptable means to post financial assurance for engineering controls.

EWMA’s new guaranteed cost and liability assumption approach is designed to meet

Implementing institutional and engineering controls is a highly effective means to perform cost effective risk-based cleanups.

Self guarantees are not allowed as a financial assurance mechanism.

the post remediation care needs of responsible parties, especially under the new pro-

gram in New Jersey. These needs involve liability, technical and financial assurance obligations. The approach integrates environmental insurance and structured settlements into a guaranteed fixed price contract. An environmental structured settlement uses a guaranteed annuity funding mechanism for all the known monitoring and maintenance costs and an environmental site liability insurance policy is used to manage liability and risks as a cost effective solution. This program is also

designed to help innocent purchasers of contaminated property maintain defense from state and federal liability.

EWMA has assembled a team of environmental, insurance, and financial experts to implement a third party liability assumption of the risks inherent in implementing a longterm post remediation care program.

Richardson is vice president for EWMA in the Parsippany, NJ office and leads this program. ■

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10C — April 22 - May 12, 2011 — Construction Law & Cost Overruns — Contractors, Owners & Managers — Mid

Atlantic Real Estate Journal MAREjournal.

CONSTRUCTION LAW & COST OVERRUNS

By Marc Furman and Ericson P. Kimbel

PA joins NJ in crackdown on Independent Contractor Misclassification in construction

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he Pennsylvania Construction Workplace Misclassification Act (CWMA) went into effect on February 10, 2011. Pennsylvania joins at least fifteen other states which have similar independent contractor and/or employment laws addressing the issue of potential misclassification, including New Jersey whose Construction Industry Independent Contractor Act (CIICA) has been in effect since 2007. Like the CIICA, the CWMA carries significant monetary and criminal penalties for misclassification of employees as independent contractors in the construction industry.

Pennsylvania’s CWMA The CWMA includes criminal penalties for construction companies who misclassify their own employees, or others who contract with a construction company while knowing that company’s intent to misclassify its employees as independent contractors. Other penalties for violation include fines, incarceration, stop-work orders and administrative penalties.

As stated by the Pennsylvania Department of Labor & Industry (DLI), the CWMA’s enforcement agency, “misclassification of employees as independent contractors is illegal for all commercial and residential construction in Pennsylvania”. The CWMA also applies to all public and private projects.

In order to understand if the CWMA applies to your particular situation, it is necessary to review the major definitions. Specifically, the CWMA defines “construction” to include “erection, reconstruction, demolition, alteration, modification, custom fabrication, building, assembling, site preparation and repair work done on any real property or premises under contract….” 43 P.S. §933.2. This broad definition appears to include virtually all aspects of vertical construction.

To be considered in compliance under the CWMA, an independent contractor must (1) have a written contract, (2) be free of control or direction of the work, and (3) be customarily engaged in an independently established

Marc Furman

Ericson P. Kimbel

trade, business or profession.

The third element is further broken down to include the following criteria: ownership of one’s own tools, realization of profit or loss from that business, prior work as an independent contractor, a separate business location and maintenance of at least $50,000 of liability insurance.

If the above elements are not satisfied, the purported independent contractor will be considered an “employee” under the CWMA. In such a case, penalties may be imposed upon the contractor/employer (or an officer or agent of the employer) and, as stated above, in certain circumstances, also upon those who contract with the employer.

Further, each misclassified independent contractor is considered a separate violation of the CWMA. There are criminal and civil fines up to $1,000 for a first violation and up to $2,500 for each subsequent violation.

Criminal penalties include a third degree misdemeanor for a first violation and second degree misdemeanor for subsequent violations. DLI also has the ability to seek a court-issued, stop work order when an employer does not respond to an investigation.

The impact of a stop work order would be devastating to a firm’s cash flow, current contractual relationships and future contracts. It would also disrupt job progress, most likely cause delays and impact all parties up the contractual chain. Such a contractor would likely be considered in default under the contract of engagement with the higher-tiered contractor, general contractor or owner. The remedies that

flow from such a breach could include, delay damages, liquidated damages or being held accountable for the difference in cost, if any, for the project to be completed by a replacement contractor.

The back benefits and taxes owed under the CWMA may far outweigh the other monetary penalties under the Act. Liability for unpaid unemployment and/or workers’ compensation benefits, federal, state and local taxes, and other remittances, together with penalties and interest, could easily reach into the tens of thousands of dollars. A larger workforce could increase this amount ten-fold.

Just as troubling is the concerted action provision under the CWMA. That section provides that a contracting party “which intentionally contracts with an employer knowing the employer intends to misclassify employees in violation of this act, shall be subject to the same penalties, remedies or other actions as the employer….”

43 P.S. §933.4(e) (emphasis added). Thus, liability extends from the non-compliant employer to the contracting party when the contracting party enters into the contract knowing of this problem.

The language of this section raises several obvious issues concerning intent and proof of intent. Further, it appears that the contracting party could be held liable for back benefits and taxes as a finding of concerted action treats the concerted actor as the employer for purposes of the “penalties, remedies or other actions”. 43 P.S. §933.4(e).

Contractors who believe that they can shield their company and themselves by just

“sub-contracting” to another contractor who, in turn, violates the CWMA, are just kidding themselves. Sticking your head in the sand on this issue will not be a viable defense.

That being said, however, the CWMA does include a good faith defense, which provides “it shall be a defense to an alleged violation of this section if the person for whom the services are performed in good faith believed that the individual who performed the services qualified as an independent contractor at the time the services were performed.” 43 P.S. §933.4(f).

All persons alleged to have violated the CWMA will obviously attempt to assert this defense. In order to protect yourself from this boot-strapping liability, consider having your construction sub-contracts reviewed so that the sub-contractor’s obligation to specifically abide by the provisions of the CWMA is clearly set forth.

The CWMA addresses two other types of violations. A party may not require or demand an agreement or document which results in a misclassification under the CWMA. It is also a violation to retaliate against any person for exercising one’s rights under the CWMA. As in other areas of labor and employment law, sometimes it is the anti-retaliation provisions, which seem so obvious, that become the most troublesome and potentially harmful.

New Jersey’s CIICA The CIICA has been in effect for almost four years, and, unlike the CWMA, the CIICA presumes that all persons working in construction are employees. The burden is placed upon the contractor to prove independent contractor status, which, similar in some respects to the CWMA, requires evidence that: (1) the individual is free from control or direction in performance of the services provided; (2) the services provided are outside the usual course of business for the contracting party, or do not occur at any of the contracting party’s place(s) of business; and (3) the individual is customarily engaged in an independently established trade, occupation, profession

or business.

Penalties under the CIICA include fines of up to $1,000 and/or 90 days of jail time for each offense. The CIICA carries more severe penalties for knowing misclassifications including fines of up to $150,000 and up to ten years imprisonment. For a second or subsequent violation of the Act, the Commissioner of Labor and Workforce Development may issue a stop work order requiring all business operations to cease at every site where the violations occurred. The Commissioner may also seek debarment of a firm from all public work for three years if there has been a final determination of CIICA violations or a final conviction. In any event, when applying for your contractor registration or its renewal, such a violation would have to be disclosed, even if resolved in a settlement with a non-admissions clause. Also, bids may require the disclosure of any CIICA violation, potentially rendering your company “unqualified.”

To avoid possible non-compliance under the CWMA and/or the CIICA, all independent contractor and subcontractor relationships should be carefully reviewed.

All project sites should also be posted with the relevant CWMA or CIICA requirements poster.

For further information, please contact Marc Furman or Ericson P. Kimbel at mfurman@cohenseglias.com or ekimbel@cohenseglias.com, respectively.

Marc Furman is a partner and Chair of the Labor & Employment Group at Cohen Seglias Pallas Greenhall & Furman, PC. He focuses his practice on representing and counseling both union and nonunion employers throughout the United States, in all aspects of labor and employment law.

Ericson P. Kimbel is senior counsel at Cohen Seglias Pallas Greenhall & Furman, PC. He concentratess his practice in construction litigation, arbitration and mediation, representing subcontractors, contractors, designbuilders and construction managers on public and private projects. ■

MAREjournal.com Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — Construction Law & Cost Overruns — April 22 - May 12, 2011 — 11C

CONSTRUCTION LAW & COST OVERRUNS

By Veronica O. Faust, Bifferato LLC

The significance of indemnification & standard of performance clauses in construction contracts n unpublished decision rendered in March of this year by the Superior Court of Delaware in the case of Menkes v.

St. Joseph Church, 2 0 11 D e l .

Super. Lexis 141 (Del. Super. Mar. 18, Veronica Faust 2011) (“Menkes”) serves to remind the contractor and his counsel of the significance of indemnification and standard of performance clauses in construction contracts governed by Delaware law. While the legal questions presented in Menkes were answered by Delaware precedent, the decision highlights the need for well crafted indemnification and standard of performance clauses which heed the instruction of such precedent.

In Menkes, an employee of a subcontractor (the “Sub”) filed a negligence action against the general contractor (the “General”), the owner of the construction site (“the Owner”) and others after the employee was injured while working at the construction site for the Sub. The employee’s Complaint did not name the Sub as a defendant. The General filed a Third Party Complaint against the Sub asserting, among other things, that the Sub had a contractual obligation to indemnify, defend and hold harmless the General from the employee’s claim. The owner filed a Third Party Complaint against the Sub alleging that it was a third party beneficiary of the contract between the General and the Sub, and therefore, was also entitled to indemnification.

The Menkes decision addressed the Sub’s motion to dismiss the Third Party Complaints.

The Court denied the Sub’s motion to dismiss for failure to state a claim. Menkes, 2011 Del. Super. Lexis 141 at *2. The contract between the General and Sub contained an indemnification clause requiring the Sub, in general terms, to indemnify the General for all claims resulting from, “arising from” or “occurring in connection with” the Sub’s work, including claims for injuries caused by the negligent acts of the Contractor. Id. at *5. The Sub argued that the entire indemnification provision was

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void as a matter of public policy.

Id. at *9. The Menkes decision held that Section 2704(a) of Title 6 of the Delaware Code invalidated the indemnification clause to the extent it required the Sub to indemnify the General or the Owner for their own negligence. Id. at *10. However, upon consideration of the parties’ arguments concerning the application of prior Superior Court1 and Delaware District Court 2 caselaw, the Court determined that the severability clause in the contract allowed the Court to strike the invalid portion of the indemnification

clause and render the remainder enforceable. Id. at *13. The Court concluded that severability was possible because the invalid language requiring the Sub to indemnify the General or Owner for their own negligence was a separate and distinct portion of the indemnification provision that could be deleted without impacting the language requiring the Sub to indemnify for its own negligence.

Id. The import of the Court’s decision was that the indemnification obligations of the Sub mandated by the remainder of the indemnification stayed

intact. The Menkes Court also rejected the Sub’s motion to dismiss the Third Party Complaints on the grounds that the complaints were precluded by worker’s compensation exclusivity. Worker’s compensation exclusivity pre-empts tort actions by employees against their employers for work related injuries. Id. at *14. The Court determined that the indemnification claims of the General and the Owner were grounded in contract rather than tort theory. Id. at *18.

The Court found that the contract between the Sub and the

General contained the terms required by Delaware law to render a basis for the claims of the General and the Owner for indemnification by the Sub for injuries to its employee caused by the Sub’s negligence. Id. The key contract terms include provisions requiring the Sub/ employer/indemnitor to: “(1) perform work in a workmanlike manner; and (ii) indemnify the third-party-indemnitee for any claims arising from the employer-indemnitor’s own negligence.” Id. at *15-16 (citing Precision Air, Inc. v. Standard continued on page 18C

At Bifferato LLC our mission is to provide high quality legal services with integrity, professionalism and respect for our clients and the community. In doing this, we strive for a collegial group practice while recognizing that our principal goal is to effectively serve our clients.

Areas of Practice: Alternative Dispute Resolution Commercial Bankruptcy Commercial and Corporate Litigation Real Estate

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12C — April 22 - May 12, 2011 — Construction Law & Cost Overruns — Contractors, Owners & Managers — Mid

Atlantic Real Estate Journal MAREjournal.

CONSTRUCTION LAW & COST OVERRUNS

By Ann M. Waeger, Farer Fersko

Covering your company’s environmental risks: An environmental insurance primer

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he Basics Environmental risks abound in the world of commercial real estate.

The source of such risks in real estate transactions includes the purchase, sale or redevelopment of Ann M. Waeger real property. Risks may also crop up from the realm of day to day operations, global environmental threats, and a range of other factors.

Businesses, property owners, developers, tenants and lenders are increasingly faced with the prospect of finding tools to help manage environmental risks.

One such tool is a specialized environmental insurance policy designed to cover environmental risks that are not generally covered under traditional general liability policies.

The most popular form of environmental insurance available in today’s market is the pollution legal liability (PLL) type policy, marketed under several different names depending upon the insurer.

Somewhat akin to a general liability policy for environmental claims, PLL policies first gained popularity in the 1990s as a result of sustained interest in the redevelopment of contaminated properties.

The basic coverage grants offered under PLL policies address a variety of environmental risks and claims, including those relating to the cost to cleanup unknown (and in certain instances known) pre-existing contamination and new discharges of contamination both on and off an insured property, third party claims

arising from bodily injury and property damage related to such contamination, and defense costs. Insureds may also elect to purchase additional coverage for business interruption, soft costs associated with development projects, and the transportation and disposal of hazardous substances.

Insurance policy limits range from $1,000,000 to a maximum of $50,000,000. Although the minimum deductible can be as low as $5,000-$10,000, insureds usually select deductibles in the $50,000-$250,000 range to control premium costs. It is

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important to note that the full policy premium for the entire term, which can be significant depending on the risks to be insured and other policy terms, must be paid up front. It should also be noted that PLL policies are “claims made” policies, meaning that claims must be made and reported during the policy period (unlike a typical “occurrence” policy). As a result, the available term is generally between 1-10 years and many insureds seek to purchase the longest available term.

Prior to purchasing a PLL policy, the prospective insured must provide a Phase I Environmental Site Assessment, and must complete an application which calls for the full disclosure of information concerning the environmental status of the property to be insured. When purchasing a PLL policy, also be mindful of opportunities that exist to revise and/or negotiate certain policy terms to address risks that are of particular concern.

What’s New? In the past two years, the number of insurance carriers offering environmental products has grown significantly, with as many as 40 carriers in the current global market. This has created a highly competitive environment which presents both opportunities and risks for companies interested in purchasing a policy. On the opportunity side, buyers will find lower premiums and the ability to negotiate favorable terms. A key risk, though, is that new carriers may go out of business because they fail to price risks accurately, or because they take on underwriting risks that a more established company would not accept.

To keep pace with the competition, some insurers have been improving and enhancing their policies. Certain carriers now offer coverage for emergency response costs, crisis management expenses, the illicit abandonment of pollutants by a third party, and indoor air risks such as legionella and microbial matters. Coverage may also be available for the use of “green” technologies or materials when remediating property, as well as risks related to properties outside of the U.S. and Canada.

Some insurance companies have even revised their basic policy forms to include policy continued on page 18C

MAREjournal.com Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — Construction Law & Cost Overruns — April 22 - May 12, 2011 — 13C

CONSTRUCTION LAW & COST OVERRUNS

By Robert R. Watson, Jr., Eastburn and Gray, PC

Manage Mechanics’ Lien Laws to limit claims exposure echanics’ lien laws are designed to afford a contractor, subcontractor or supplier who provided labor or materials in the improvement of real estate some level of payment protection when Robert Watson, Jr. the party who directly owes payment fails to abide by its obligations. While lien laws vary from state-to-state, there are still opportunities under each statute to limit exposure.

Delaware law absolutely prevents any waiver of lien rights in advance of construction. Nevertheless, owners and developers should be vigilant when contracting to be certain that each and every payment is only made in exchange for a written waiver of the right to file a lien claim for that same work. If not secured contemporaneously with payment, a subsequentlysecured waiver will also be valid against claims. Delaware further affords an owner the opportunity to demand that a contractor or subcontractor provide a list of all persons who supplied labor or materials to the job. If the list is not provided within 10 days, that GC or sub may be prevented from filing a lien claim.

Virginia does permit waivers of liens in advance of construction, and for that reason, it is essential for such waivers to be secured prior to work. Proper diligence does not end with the general contract. Under Virginia law, a subcontractor or supplier will not be held bound to an advance lien waiver unless it expressly agrees to accept the general contractor’s waiver.

Merely incorporating the language of the prior contract is insufficient. Under Virginia law, an owner will only be liable to subcontractors for amounts not paid to the prime contractor, and the same applies when considering contractor liability to sub-subcontractors.

On commercial projects in neighboring Maryland, however, there is no cap on owner liability, and a significant risk of being required to pay twice does exist. For this reason, it is essential for an owner to require that formal lien releases be provided in exchange for all payments. It is the lower-tier contractors who present the

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biggest threat of a lien claim to owners, so the flow of payments to all who are supplying labor or materials must be monitored.

New Jersey’s construction lien law recently received a dramatic overhaul. The Garden State has in recent years adhered to the “lien fund” theory, which affords owners assurances against over- or double-payment for improvements to property by calculating the owner’s total liability and then apportioning the “lien fund” among valid claimants.

The new statutory provisions further clarify the boundaries

of what types of deductions may be taken from that lien fund, expressly excluding categories such as liquidated damages and payments not yet earned.

Pennsylvania does not recognize a finite lien fund, and advance waivers on commercial projects are ineffective. However, a careful review of the statute reveals that a rarelyused clause to protect owners has been available for decades.

If the payment terms and base general contract price are made available to subcontractors and suppliers either through written notice or by recordation in the county where work is

performed, a lien claimant’s recovery can be limited to its proportionate share of the original contract price. It has been suggested that simple “flow-down” provisions from a general contract to a subcontract should satisfy this requirement, and limit owner exposure, but this theory has not been tested by the courts.

The above-referenced provisions only scratch the surface of lien law complexities for commercial owners and developers.

Complex notice, filing and timing requirements vary significantly state-to-state, as do the requirements for residential

and public construction which are not addressed here. Nevertheless, be advised that there are protections available for the prudent construction owner which can reduce or eliminate exposure to catastrophic lien claims. It is important to consult with your construction law professional prior to starting a project, so that a defensive game plan can be put into place – and followed.

Robert R. Watson, Jr. has practiced in the field of construction law since 1999.

He is an attorney with Eastburn and Gray, PC, in its Blue Bell, PA office. ■

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14C — April 22 - May 12, 2011 — Contractors, Owners & Managers — Mid

Atlantic Real Estate Journal

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Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — April 22 - May 12, 2011 — 15C

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16C — April 22 - May 12, 2011 — Contractors, Owners & Managers — Mid

Atlantic Real Estate Journal

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MULTIFAMILY

By Mike Mullin, Integrated Business Systems, Inc.

A 192-unit rental property in Bensalem, PA

Now is an opportune time to employ amenities-based pricing

Orbach Group acquires $15.5 million apartment

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ultifamily owners and managers have done just about everything they can to lower costs, from reducing internal headcounts to renegotiating vendor contracts – and almost everything in Mike Mullin between. Today, the market is beginning to feel a little bit better, and we are even seeing a small uptick in rents.

As such, this is an opportune time to reexamine ways to push revenue as a means to increase the bottom line.

While revenue management systems have gained some popularity in recent years, many multifamily operators are hesitant to make the level of investment necessary to implement that technology.

However, another logical way for owners and managers to step-up income is to consider (or rethink) amenities-based pricing – something they may be able to easily employ using their existing accounting and property management systems.

Competition dictates that owners and operators must distinguish their apartment homes from neighboring properties. As always, value is the name of the game for prospective tenants. Typical marketing strategies focus on the traditional factors of price and giveaways. Yet an increasing number of innovative leasing professionals are using an amenity-based “value package” as their main sales strategy to close deals.

At its core, amenities-based pricing is a relatively “old” way of adding value to a multifamily property. Conceptually, it takes the market rent for a typical unit and then adds to that pricing for features like

fireplaces, newly renovated kitchens, upgraded appliances, large closets and other add-ons. At the same time, it might subtract a few dollars if an apartment overlooks a dumpster or has dated finishes.

Landlords can create these aforementioned “value packages” by highlighting the special characteristics in each home they have available for lease.

The rent add-on they place on these specific features should be based on the price they can draw in the marketplace, not on what they cost to incorporate. To determine the value, they must understand current market trends and know their target consumer.

Looking at each apartment and its individual features enables a landlord to market a specific home, rather than a unit type. In some cases, tenants are willing to pay more for the extras that matter to them. Again, this is not a new concept. Many multifamily operators already utilize amenities-based pricing. Some, however, are not taking full advantage of the ability to facilitate the different levels of pricing through their enterprise software.

For example, IBS multi-family users can store amenities and attributes on a unit basis through a built-in function that can in turn be used to help price the units by their individual features. This allows leasing professionals to easily access the data for marketing purposes. It also enables an easy audit – and potential upward adjustment – of current pricing.

Beyond that, the construction management function keeps track of all costs of renovation work, including an inventory of new features like granite countertops, stainless appliances and so on. It also can help to determine ROI on

the capital improvements. An owner may ask, “If I spend $3,600 on updates in this unit, will I be able to get that back with a $100-per-month rent increase?”

These capabilities already are incorporated and integrated in systems like ours, requiring no additional financial investment. And, while doing the initial inventory of each unit in a portfolio takes time, it is not a job that needs to be done all at once. Rather, it can coincide with each unit’s vacancy. Once an apartment’s amenities have been identified and entered into the system, the unit can be flagged to indicate that it has been inventoried.

In short, many multifamily owners and managers utilizing accounting and management software may already have the tools they need to help them increase the bottom line without any additional technology investment. Given the current economy and continuing budget pressures, the option to positively impact the bottom line is a welcome message.

As the economy continues to rebound, renters will be willing to pay more to get more, and amenities-based pricing can help landlords achieve the best rates for apartments with choice features while providing a competitive advantage in the marketplace.

Developing an amenitiesbased pricing model can help owners and operations maximize the profitability of individual apartment homes by generating “value pricing.” The process of increasing revenues by adding value is relatively simple: determine which amenities are important in your market; assign a value to them, and lift your price by adding this to the existing unit base rent. It’s that easy.

Mike Mullin is president of Integrated Business Systems in Totowa, NJ. ■

CB Richard Ellis completes Bergen Cty. sale of multi-family GARFIELD, NJ — CB Richard Ellis recently completed the sale of a multi-family property at 40 Beech St. The New Jersey Private Client Group’s Charles Berger represented the seller in this transaction and procured the 1031 exchange buyer.

“In this unique transaction, both the buyer’s and the seller’s intentions were to utilize 1031 exchange agreements, which created relatively quick tax deferred income and mutually fa-

vorable returns for both parties, indicating an upward trend in multi-family sale activity and an overall healthier marketplace within New Jersey,” said Berger. “Because of the quality of this asset, as well as its location within the coveted Bergen County submarket and its high occupancy rate, we were able to negotiate this sale in a timely manner at agreeable terms for the buyer and the seller. We are thrilled to have been able to complete this transaction on

behalf of our client and we look forward to closing similar deals of this kind in Northern New Jersey in the future.”

“The sale of this 9-unit property was noteworthy, not only because of its location within Bergen County, a high barrier to entry market, but also due to the $106,000 per unit sale price that we were able to arrange for our client, which was the highest ratio seen in the Garfield submarket over the past three years,” said Berger. ■

BENSALEM, PA — The Orbach Group acquired Hamilton Court East apartments a 192unit rental property for $15.5 million.

Hamilton Court East consists of 15 two-story buildings, with one- and two-bedrooms units and rents ranging from $795 to $1,145. Eighty-five percent of the units underwent gut renovations recently. The remaining 25 units, which currently are vacant, will undergo the same type of extensive renovations in the weeks ahead. The 167 units that

have already undergone the gut renovation are completely leased.

“Hamilton Court East is a perfect fit with The Orbach Group’s Pennsylvania’s portfolio,” said Meyer Orbach, the firm’s president. Like our other properties, Hamilton Court East is located and provides a great combination of shared and unit specific amenities that provide a highly desirable and luxurious residence at rental prices that are among the most competitive in Southeastern Pennsylvania.” ■

Gebroe-Hammer reports multi-family tenant pool & investments in good shape LIVINGSTON, NJ — With cap rates and per-unit pricing strengthening for existing class B multi-family product, the Bergen County market has become a favored destination for investment dollars, according to Gebroe-Hammer Associates.

“The strong influence of Bergen County’s residential suburban character, coupled with the growing demand for a multi-family lifestyle in the current economy, offers considerable value for investors,” said David Oropeza, executive vice president. “Sellers realize there is pent-up demand for apartment buildings in this area, which are driving values upwards and compressing cap rates. Meanwhile, investors realize no other alternative investment can offer a comparable combination of stable returns, with future rental upside and the tax advantages associated with multi-family ownership.”

In Fairview, Oropeza represented the seller and identified the buyer, a long-time GebroeHammer client, in the $1.9 million sale of 19 one-bedroom units, averaging $100,000 per unit, at 91 Hamilton Ave. Greg Pine, senior vice president, also was a member of the brokerage team.

Located near I-80, I-95, and Route 46, just minutes from the George Washington Bridge and Lincoln Tunnel, the horseshoe-shaped garden apartment building features a landscaped courtyard, on-site parking and on-premises laundry.

This latest transaction follows a strong performance

by Gebroe-Hammer last year when the firm closed a total of 3,650 residential units in 53 multi-family transactions, of which 23 were distressed properties.

While distress is atypical in Bergen County, Gebroe-Hammer recently orchestrated the note sale of a mixed-use property, highlighting this type of opportunity is still selectively available. The note, encumbered by a 6,000 s/f converted office building located at 570 Main St. in Fort Lee, was sold for $750,000 in an all-cash transaction.

“My client was eagerly looking for property in Bergen County and I’ve also been working with a local bank interested in selling this particular non-performing note. The transaction closed in less than 30 days,” said Pine, a Bergen County specialist.

Built in the 1920s, 570 Main St. is located on a corner lot, off Bergen Boulevard in Fort Lee. The property includes ground-floor retail with multiple tenants, as well as on-site parking.

“Bergen County is one of the most difficult markets to penetrate due to its high-barrier-to-entry for multi-family investment. As home ownership continues to fall out of favor, rental housing becomes that much more desirable in terms of investment dollars.

As a result, demand is far exceeding the availability of for-sale product in all areas of the state,” said Ken Uranowitz, managing director. “Offering direct access to New York City, via the George Washington Bridge, Bergen County’s strong tenant pool is a unique mix of working-class families, commuters and retirees, all of whom contribute toward overall occupancy rates in the high-90 percentile range. This, along with strategic location, appeals to individual investors as well as REITS, private equity firms and other institutional investors.” ■

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Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — April 22 - May 12, 2011 — 17C

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18C — April 22 - May 12, 2011 — Contractors, Owners & Managers — Mid

Atlantic Real Estate Journal

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PEOPLE ON THE MOVE For Milford Central Academy in Delaware

As estimator in Delaware office

Becker Morgan Group receives engineering award

Willow Construction hires Robert Nibblett

W

ILMINGTON, DE — The American Council of Engineering Companies of Delaware (ACEC-DE) recently presented Becker Morgan Group with a 2011 Engineering Excellence Conceptor Award for Milford Central Academy in Milford, Delaware. This award recognizes “engineering design innovation achievements demonstrating the highest degree of skill and ingenuity, while providing a significant benefit to the public welfare and the practice of consulting engineering.” With Lt. Governor Matthew Denn, Senator Chris Coons, and Tom Carper, former Secretary of DelDOT, in attendance, the awards were presented at the 2011 Annual Engineers Week Celebration on February 17th at the DuPont Country Club in Wilmington.

As principal engineer and architect for Milford Central Academy, Becker Morgan

Milford Central Academy Group provided a level of pro- ated, under increasingly tight fessional care that produced budget constraints, while a state-of-the-art facility. multiple sustainable features Through an integrated design that will realize ongoing cost philosophy, a premier edu- savings for the district were cational institution was cre- implemented. ■

Jamie Morrison, senior project manager, accepts a Pyramid Award for two projects from Mike Uremovich, National Chairman of Associated Builders and Contractors. in the Historical Restoration, $2 to $10 million category

F.A. Rohrbach, Allentown – Bethlehem Skateplaza in the Other Construction, less than $2 million category Warfel Construction, East Petersburg – St. Andrew’s Church Expansion and Renovations in the Historical Restorations, less than $2 million category Wohlsen Construction, Lancaster – Manor East Healthcare Addition in the Healthcare, less than $10 million category, and Campus Square Office Building in the Commercial, $5 to $10 million category. ■

Frassetto brings 21 years of experience to Cassidy Turley TEANECK, NJ — Cassidy Turley announced that Terry Frassetto has joined its Somerset office as senior vice president of property management where he will be responsible for

managing, leading and developing the New Jersey property management division. In this expanded role, Frassetto will work with Cassidy Turley’s team of Peter Hennessy, Da-

vid Simon, Eric Mockler and Marla Maloney, to help grow and expand the company’s New Jersey-based portfolio and promote its property management capabilities and platform. ■

By Veronica O. Faust, Bifferato LLC . . . continued from page 11C Chlorine of Delaware, Inc., 654 A. 2d 403, 407 (Del. 1995)).

Evaluating and allocating the risk for property damage and personal injuries is a fundamental step every contractor should take in connection with a project. To the extent a contractor employs

He will be responsible for estimating work throughout northern Delaware and surrounding counties in the neighboring states of Maryland and Pennsylvania.

Nibblett has spent his entire 30-year career in the construction industry. For the last eight years he was an estimator for Miken Builders, Inc. ■

ValleyWide Property Management adds three

Four Eastern PA construction companies win awards from Associated Builders & Contractors EAST NORRITON, PA — Associated Builders and Contractors (ABC) recently awarded four Eastern Pennsylvania Chapter members Pyramid Awards in ABC’s Excellence in Construction Awards.

ABC Eastern Pennsylvania Chapter members who received awards during the 21st annual Excellence in Construction Awards celebration at the Waldorf Astoria hotel in Orlando, FL, included: Allan A. Myers, Worcester – Myers Family Homestead

NEW MIDDLETOWN, Delaware — Willow Construction, LLC announced the hiring of Robert C. Nibblett (shown) as an estimator at the company’s new Middletown, DE office.

indemnification clauses in its Delaware contracts to manage such risk, Menkes renders guidance to the contractor and his counsel to insure that such clauses hold up in Court.

1 The General and the Owner relied upon Handler v. State Drywall Co., 2007 Del. Super. Lexis 295. Menkes, 2011 Del. Super.

Lexis 141 at *10.

2 The Sub relied upon Kempski v. Toll

Bros., Inc., 582 F.Supp.2d 636 (2008).

Menkes, 2011 Del. Super. Lexis 141 at *11-12.

Veronica O. Faust practices with Bifferato LLC in Wilmington and Lewes. She represents clients in transactional and litigation matters involving real estate, business, commercial and construction law. ■

Carol Schleppy Brian Eberhardt Jeremy Eberhardt ALLENTOWN, PA — Carol restoration industry and sucSchleppy has joined Valley- cessfully completed several Wide Property Manage- industry certifications. Brian ment, LLC as administrative is responsible for the estimatassistant of building services ing, sales, project managefor ValleyWide Property Man- ment and marketing of the Barclay Contracting Division agement.

Schleppy brings over 18 of ValleyWide.

Jeremy Eberhardt is reyears of experience in the restoration business including sponsible for residential and customer service experience commercial sales, estimatin managing the insurance ing and project management claims process for home own- for the Barclay Contracting ers, mortgage companies, and Division of ValleyWide. He has over 14 years of experiinsurance adjustors.

Brian and Jeremy Eber- ence managing the insurance hardt have joined the com- claims process, including 12 pany as program managers years of large loss restorafor Barclay Contracting, a tion project management.

Division of ValleyWide Prop- Jeremy has completed several industry certification courses erty Management.

Brian Eberhardt has over directly relating to the resseven years of project man- toration and remediation agement experience in the processes. ■

Solloch joins Stalco Construction ISLANDIA, NY — Stalco Construction hired J o s e p h Solloch (shown) as project manager.

Solloch’s responsibilities encompass management of all pre-construction and construction activities, including client relations, estimating, scheduling and logistics, bid package development, subcontractor negotiations, quality control, progress reporting, site work, and project turnovers. ■

By Ann M. Waeger, Farer Fersko . . . continued from page 12C revisions commonly requested by an insured. These are all positive developments for an insured, so if you are considering purchasing a PLL policy to address your risks, now is a good time to explore your

options.

Ann M. Waeger is a partner in the Westfield, NJ law firm Farer Fersko. She is a member of the firm’s Real Estate & Redevelopment practice group. ■

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Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — April 22 - May 12, 2011 — 19C

The Building Owners and Managers Association of New Jersey Lisa Kochan, President, BOMA New Jersey

2011 Officers & Directors

KNOWLEDGE IS POWER

Upcoming Meeting Dates & Events May 15, 2011 - BOMA Members Race for the Cure Join the BOMA NJ Team in the Susan G. Komen Race for the Cure Wednesday - May 25, 2011 - The Newark Club Building Owners & Managers Association of New Jersey 199 Prospect Avenue, PO Box 7250, North Arlington NJ 07031 Phone: 973-696-2914, Fax: 973-696-5634 Email: bomanj@ix.netcom.com Website: www.bomanj.org

KNOWLEDGE IS POWER

Everyone says that knowledge and education is the key to success, and that you must gain as much knowledge as you can to gain a position of power. The real questions are: What is knowledge? How is it measured? How do you use it to gain power?

According to the American Heritage College dictionary, knowledge is “the state or fact of awareness or understanding gained from experience or study - learning specific information about something.” This means a person has the resourcefulness to obtain and utilize useful and informative information in order to make intelligent decisions based upon their understanding and awareness of everyday situations.

Lisa Kochan Does this make them powerful? Again, according to the American Heritage College dictionary, power is “the ability or capacity to act or perform effectively” therefore, without knowledge, how would this, the ability to perform effectively, be possible? The bottom line is – it isn’t! The real estate industry and especially property management is constantly changing. Therefore, the importance of education and professional development is paramount to the success of you and your company.

One of the purposes of education, as marketed by the education industry, is career advancement, higher pay, and empowering a graduate’s job search. On the other hand, your employer or prospective employer is looking for the creativity, vision, talent, and the skills that you need to manage your properties. Professional designations in the last 40 years have become almost a requirement to be hired into the job areas of Property Management, Facilities Management and Systems Maintenance, as well as various other related fields. It will come as no surprise that in today’s economy property and facility managers will not advance simply by running a building well and working hard. Rather, those with the ambition to move ahead, either within their companies or elsewhere, will need the ability to contribute to solving company wide problems. A lot of people can get repairs made but can you help reduce occupancy costs? Can you avoid problems with regulatory approvals and inspections? Can you reduce the entity’s carbon footprint? Can you get high quality contracts with outside service providers? In addition to the above, demands on property and facility managers looking to advance their careers include having an ability to accept change, to carefully experiment with new methodologies, to understand financial drivers, and to be more of a team player because in today’s world the team on which the property/facility manager is playing is at the executive level. The more experienced you are with a variety of business and property data the better. Someone who can come to the table with ideas, someone who can say, “if we do ‘x’ this year, we will save ‘x’ percent over the next five years” someone with excellent interpersonal skills — and specifically, the ability to manage and interact with diverse clients, customers, employees and stakeholders — are essential for acquiring a new job or obtaining a promotion.

So, where do you gain this knowledge? How do you obtain the required education? Well, being the President of BOMA New Jersey, an organization whose mission is to promote the interests of those engaged in ownership and/or the operation of real property through leadership, research, education, information and professional development, obviously I’m going to tell you to get involved in BOMA. It doesn’t matter if you are in New Jersey, Michigan, Texas or California BOMA offers you the opportunity to participate in monthly meetings, seminars, webinars and ongoing BOMI International RPA, FMA, SMA and SMT designation classes to advance your career.

Starting on March 23rd BOMA New Jersey will be offering BOMA International’s Fundamental of Property Management; in April we are offering four BOMI Courses: Real Estate Investment & Finance; Budget and Accounting; Facility Planning and Project Management and Electrical Systems. After taking BOMI International courses, almost 36% of students said they have seen a decrease in monthly expenses between 1% to over10%; over 77% of students who have acquired a BOMI International designation and/or certificate agree that they have helped better position their corporation or organization for success and over 95% of BOMI’s corporate clients and students recommend BOMI International courses to their co-workers and peers.

These courses are over and above our monthly meetings wherein we have an industry professional guest speaker; our quarterly newsletter with insightful, informative articles, an annual directory with useful information on our members and a product service guide as well as discount on BOMA International’s publications and materials.

Former BOMA New Jersey President and current Vice Chair of BOMI International said “It is imperative for continued career growth that one keeps pace with industry changes. It is also just as important

President Lisa Kochan Grubb & Ellis 100 Passaic Street Fairfield NJ 07004 (973) 486-2545 lisa.kochan@grubb-ellis.com Vice President Ron DeBiasse Lone Eagle Management PO Box 1235 Madison NJ 07940 (973) 377-7377 rond@loneeaglemanagement.com Secretary Robin-Ann Juron Bergman Real Estate Group 555 Route One South Iselin NJ 08830 (732) 855-8600 Robin@bergmanrealty.com Treasurer Dave Cali, RPA Alfred Sanzari Enterprises 25 Main Street Hackensack NJ 07601 (201) 342-2777 davecali@sanzari.com

BOMA NEW JERSEY The Building Owners and Managers Association of New Jersey The Building Owners and Managers Association (BOMA) of New Jersey is focused on providing the most comprehensive member benefits available in any trade association.

Why you should be here: BOMA provides excellent educational programs designed to provide both the seasoned professional and up and coming assistants with expert skills in appropriating resources and managing properties to maximize their value regardless of the economy, invaluable networking opportunities, monthly meetings and events, annual events, advocacy at the state and national levels, and International support.

Since its inception in 1984 more than 450 members have developed and perfected their professions through the resources BOMA New Jersey has to offer. Call now to receive your informational package on how you too can be on your way to become the real estate industry’s most desired and indispensible professional.

Building Owners & Managers Association of New Jersey 199 Prospect Avenue, PO Box 7250, North Arlington NJ 07031 Phone: 973-696-2914, Fax: 973-696-5634 Email: bomanj@ix.netcom.com Website: www.bomanj.org

20C — April 22 - May 12, 2011 — Contractors, Owners & Managers — Mid

WWW.IREM.ORG

Atlantic Real Estate Journal

MAREjournal.com

Institute of Real Estate Management

2011 OFFICERS NEW JERSEY CHAPTER NO.1 PRESIDENT SCOTT DALLEY, CPM® ACCESS PROPERTY MANAGEMENT, AMO® VICE PRESIDENT LAWRENCE SAUER, CPM® TAYLOR MANAGEMENT CO., AMO® SECRETARY MARK PHILLIPS, CPM® PHILLIPS ASSET MANAGEMENT CO., INC. TREASURER MICHAEL FRIED, CPM® BOSTON PROPERTIES

May 12, 2011 ETH800: Ethics for the Real Estate Manager Ethical decision making, resolution of conflict of interest, preserving fiduciary relationships, use of highest standards of integrity and professionalism in business.

Cost: $ 175.00 premier member; $ 200.00 classic member; $ 220.00 non-member.

DELAWARE VALLEY CHAPTER NO. 3 PRESIDENT JODY DIMPSEY, CPM® JLD MANAGEMENT GROUP PRESIDENT-ELECT MICHAEL CARR, CPM® WELLS FARGO WEALTH MANAGEMENT VICE PRESIDENT JERRY NEILL, CPM® CB RICHARD ELLIS CO., AMO®

Location: Interstate Realty Management Offices Marlton, N.J. Offered by IREM® SOUTHERN NEW JERSEY CHAPTER NO. 101 To register: www.irem101.org

May 11-13; 18-20, 2011 CID201: Common Interest Developments: Managing Condominium Associated Properties Unique and complex challenges of managing in the CID market, one of the fastest growing segments in Real estate today.

Cost: $ 575.00 premier member; $ 665.00 classic member; $ 745.00 non-member.

Location: Holiday Inn Somerset Somerset, N.J. Offered by IREM® NEW JERSEY CHAPTER NO. 1 To register: www.irem1.org

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 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.

June 15, 2011

Sept. 8 10; 15-17, 2011

Fair Housing & Beyond

RES201 for Affordable Properties Path to the Accredited Residential Manager (ARM) Accreditation.

Vividly shows the serious consequences of incorrect responses and provides coaching on how to avoid costly mistakes.

Cost: $ 79.00 classic member; $ 109.00 non-member

Enhanced and expanded course content includes needs of affordable housing and student housing.

Cost: $ 575.00 premier member; $ 665.00 classic member; $ 745.00 non-member.

Location: AAGP Offices, Philadelphia, PA Offered by IREM® DELAWARE VALLEY CHAPTER NO. 3 To register: www.irem3.org

Location: Hotel ML, Mt. Laurel, N.J. Offered by IREM® SOUTHERN NEW JERSEY CHAPTER NO. 101 To register: www.irem101.org

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Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — March 25 - April 7, 2011 — Inside Back Cover C

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C Back Cover — April 22 - May 12, 2011 — Contractors, Owners & Managers — Mid

Atlantic Real Estate Journal

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3RD ANNUAL GREEN BUILDINGS SUMMIT 2011 Hosted by

EAL

ESTATE JOURNAL

Thursday June 2 Trenton Marriott, New Jersey

U.S. GREEN BUILDING COUNCIL - NEW JERSEY Mid Atlantic Real Estate Journal (MAREJ) in conjunction with United States Green Building Council-New Jersey (USGBC-NJ) is pleased to announce our 3rd ANNUAL GREEN BUILDINGS SUMMIT‘11.

REGISTRATION NOW OPEN The event will provide the perfect platform to meet face-to-face and Network With: Commercial Developers, Property Owners, Redevelopment Experts, Contractors, Architects, Engineers, Attorneys, Consultants, Environmental Professionals, Multi-Family Investors, Urban Planners, Local and State Government Officials and Economic Development Agencies and more!

Thursday, June 02, 2011, 7:30 AM - 5:15 PM at The Trenton Marriott, Trenton NJ CONFERENCE TOPICS TO INCLUDE: • ANALYZING THE CURRENT STATISTICS: A DISCUSSION ON GOING GREEN • BUILDING GREEN: CREATING A “NET-ZERO ENERGY” OR “CARBON-NEUTRAL” STRUCTURE •THE ECONOMIC ADVANTAGES OF GREEN BUILDINGS •NEW JERSEY’S FINANCIAL SUPPORT FOR IMPROVING BUILDING ENERGY. •EMPLOYING RESOURCE-EFFICIENT MATERIALS TO ACHIEVE COMFORTABLE, SAFE AND SUSTAINABLE BUILDINGS •GOVERNMENT LEGISLATION FOR ECO-FRIENDLY BUILDING CONSTRUCTION AFTERNOON WORKSHOPS: Workshop#1 USGBC-NJ WORKSHOP & EXAM PREP: LEED® OVERVIEW AND HOW TO PREP FOR LEED® GREEN ASSOCIATE CREDENTIAL. (4 Hours)( 4 AIA Learning Units) Workshop#2 DESIGNING BUILDINGS FOR ENERGY EFFICIENCY. CORPORATE SUSTAINABILITY- A VIEW FROM THE GREEN OFFICE. (Two - 2 Hour Sessions) (Total of 4 AIA Learning Units) Sponsorship, Speakers & Exhibiting Opportunities Are Still Available CALL LINDA CHRISTMAN 800-584-1062 X 203 or EMAIL lchristman@marejournal.com REGISTER AT WWW.MAREJOURNAL.COM Thank you to the following sponsors: ůĞĂŶƚĞĐŚ >Ăǁ WĂƌƚŶĞƌƐ

͞ ĂƚĞƌŝŶŐ ƚŽ ƚŚĞ ƵŶŝƋƵĞ ůĞŐĂů ŶĞĞĚƐ ŽĨ ƌĞŶĞǁĂďůĞ ĞŶĞƌŐLJ ĂŶĚ ĐůĞĂŶƚĞĐŚ ĐŽŵƉĂŶŝĞƐ͟

Mid Atlantic REAL ESTATE JOURNAL SPRING PREVIEW MAREjournal.com

Mary Severino

Mid Atlantic Real Estate Journal — April 22 - May 12, 2011 — Section D

Donna Bartynski

Arthur Campbell

Libby Kavoulakis

Rebecca Machinga

Jeffrey Walters

Jonathan Glick

Scott Mertz

Mark Warner

Brian Whitmer

INSIDE: BRASLER PROPERTIES .....................................................IBC-D CAMPBELL CAMPBELL COMMERCIAL REAL ESTATE, INC. Art Campbell ............................................................................... 4D CB RICHARD ELLIS................................................................ 11D COHEN SEGLIAS PALLAS GREENHALL & FURMAN, PC Alexander F. Barth ...............................................................IC, 11D CUSHMAN & WAKEFIELD Brian Whitmer ........................................................................... 13D FINAL FLAT ROOF .................................................................. 14D GERBER SOMMA ................................................................... 16D GLOUCESTER COUNTY .......................................................... 6D GREEN BUILDING SUMMIT ..................................................... 9D JRS ARCHITECT. P.C. ............................................................... 3D MGZA Mary G. Z. Severino ................................................................. 10D

NAI MERTZ CORPORATION Scott Mertz ................................................................................. 7D ODELL STUDNER ..................................................................... 1D THE DEPAUL GROUP Donna Bartynski ......................................................................... 5D THE METIS GROUP Libby Kavoulakis................................................................ 16, BCD WALTERS APPRAISAL SERVICES, INC. Jeffrey L. Walters ........................................................................ 4D WITHUMSMITH+BROWN PC Rebecca Machinga, CPA............................................................ 2D YARDI ......................................................................................... 8D SHELDON GROSS REALTY, INC. Jonathan Glick .......................................................................... 12D SUN FARM NETWORK SUN FARM NETWORK Mark Warner ............................................................................. 15D

Inside Cover D — April 22 - May 12, 2011 — Spring Preview — Mid

Atlantic Real Estate Journal

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Mid Atlantic Real Estate Journal — Spring Preview — April 22 - May 12, 2011 — 1D

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

Apartment Complexes Condominiums Industrial Buildings OfÀce Buildings Shopping Centers

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

2D — April 22 - May 12, 2011 — Spring Preview — Mid

Atlantic Real Estate Journal

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ACCOUNTANT

By Rebecca Machinga, CPA, WithumSmith+Brown PC

Tax incentives to invest, upgrade and go green

T

s the commercial real estate market struggles to stay on its feet, the arena is ripe with tax incentives for property owners to invest, upgrade and go green…

Tax benefits for green Rebecca technology…

Machinga The greatest motivation for companies to pursue environmentally friendly practices is corporate image, for both customers and

shareholders. Tax incentives follow in importance and motivation. Business energy credits for solar property, qualified fuel cell property and micro turbine property are extended through 2016. Small wind property credits are available for property used in a trade or business, or for the production of income, that uses a qualifying small wind turbine to generate electricity of not more than 100 kilowatts. The energy efficient commercial buildings deduction, known as Internal Revenue Code Section 179D, is extended through

2013 and allows a deduction for the cost of ‘energy efficient commercial building property’ placed in service, including qualifying energy reducing lighting, HVAC and building envelope investments. The tax deductions are available based on square footage of up to a maximum of $1.80 per square foot.

Tax benefits related to solar projects…

The Solar Tax Credit was designed to benefit businesses that utilize alternative sources of energy. The credit is 30% of the cost of qualifying energy

property which uses solar energy that: (a) generates electricity for heaters, cooling systems or provides hot water; (b) illuminates structures using fiber optics distributed by sunlight; or (c) relates to small wind energy creation. What tax incentives does 2011 provide? In lieu of the 30% tax credit, a grant equal to 30% of qualified solar projects is available. This benefit originally expired in 2010, but was extended for 2011. Under the 2010 Tax Relief Act, the extension of these benefits will provide additional motivation for investment in solar energy

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.

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projects. Solar project equipment will also qualify for 100% bonus depreciation, allowing businesses to deduct 100% of the capital expenditures qualifying as tangible personal property. Certain property is eligible for this benefit through 2012; however However, the 100% bonus depreciation is reduced to 50% in 2012 and disappears in 2013.

Tax benefits for qualified retail and restaurant property…

In an attempt to stimulate the economy, the 2010 Tax Act allows businesses to expense 100% of the cost of qualified property through bonus depreciation in the year the property is placed in service and is in effect through 2012. Eligible property generally includes MACRS property that has a recovery period of 20 years or less, qualified leasehold improvements and certain computer software. The 2010 Tax Act treats qualified restaurant and retail property as 15-year property through 2011. However, the Internal Revenue Code states that this type of property may not be treated as eligible for bonus depreciation. However, if it is classified as ‘dual character’ property under the qualified leasehold improvement property class, the restaurant and retail property may qualify for bonus depreciation. Qualified leasehold improvement property includes interior improvements to a non-residential building provided the improvement is made pursuant to a lease, is classified as Section 1250 property, the lessee exclusively occupies the space and the improvements are placed in service for more than three years after the date the building was first placed in service. Certain costs do not qualify such as elevators, escalators, enlargements and structural common areas.

Although history shows Congressional intent to allow ‘dual purpose’ property to qualify for bonus, the IRS could assert that, ‘absent Congressional action’, bonus depreciation is not allowed for qualified restaurant property or retail improvement property. Proper planning and analysis are imperative in this area.

Rebecca Machinga, CPA is partner, practice leader Real Estate Services Group of WithumSmith+Brown PC . ■

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Mid Atlantic Real Estate Journal — Spring Preview — April 22 - May 12, 2011 — 3D

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4D — April 22 - May 12, 2011 — Spring Preview — Mid

Atlantic Real Estate Journal

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CENTRAL PENNSYLVANIA COMMERCIAL OFFICE SALES

By Arthur D. Campbell & Jeffrey Walters

We are taking more time evaluating building owners than they are evaluating us

T

he future values, transaction volume and a clear identity of who will be buying commercial office buildings in Central Pennsylvania is very hard to predict at this period.

With vacancy rates remain- Arthur Campbell ing high, increasing operating costs and few sales to use as comparables, owner occupants, potential investors and even appraisers are having a hard time determining what office buildings are currently worth.

Possibly a bigger question is will values of office properties return to or even approach the prices paid in 2006 / 2007 and how long will a property be on the market? There is currently little demand for acquisiJeffrey Walters tions except for users and those sales have most recently been for smaller properties under 10,000 s/f. Sellers have experienced relatively good values with buyers / users taking advantage of low interest rates and fairly aggressive lend-

ing by lending institutions that will compete to loan to qualified user/owners.

With little demand to acquire larger office buildings and with owners having a “wait and see” attitude, the number of sales are at historically low levels. It is our opinion that current sales, or the lack thereof, is less about the price sensitivity than it is the demand. Sellers and buyers are not negotiating over $10.00 or $20.00 psf in value; there is just no negotiating going on.

The predatory buyer that was expected to be making deals two years ago is still circling bad loans trying to find the right time to make acquisitions

at a low price when building performances are starting to improve. The real number that will impact office sales is unemployment. With a vacancy rate between 15% and 20%, it will require over 5,000 jobs being created in the Greater Harrisburg area to bring the vacancy rate to a more acceptable level of 8% to 10%. How those employment numbers will change and the entities that will create those jobs remains to be seen.

A couple of newer or under construction office buildings adding about 100,000 s/f to the market are, for the most part, relocating existing firms and will only increase the vacancy

factor.

A recent search of office buildings for sale in Dauphin and Cumberland counties found 36 properties over 10,000 s/f The price differential is from Class A single tenanted buildings at $160.00 psf to vacant offices with asking prices in the $70.00 psf range. Several smaller buildings from 4,000 to 10,000 s/f that sold within the last year went from $80.00 to $150.00 psf and a recent sale for an over 50,000 s/f building was in the mid $40.00 psf It is, as stated, an unclear market.

A Fortune 50 Company’s Real Estate Director commented recently that “we are taking more time evaluating building owners than they are evaluating us.” The stability of property owners and their ability to fund leasehold and building capital improvements is starting to weigh heavily on tenants’ relocation decisions.

When sales return to the “normal” levels most likely not until 2012 or later, it will, in all probability be local or regional investors buying rather than REITs or out of market investors who have not realized adequate returns to expand their holdings in Central Pennsylvania. There is a lot of money available for acquisitions but the comfort level is just not there. Nationally, acquisitions are mostly limited to 80% to 90% occupied buildings with several years remaining on the lease terms and credit tenants.

There has been a lot made in the media of no money being available for large acquisitions, and while there definitely are some lenders cleaning up their loan positions and working to bring existing loans in compliance to new regulations imposed by the Frank Dodd Bill, it is our belief that it is as much or more about a lack of demand for acquisitions than it is a lack of funding for new acquisitions.

As with all swings of the pendulum, office sales and occupancy levels will increase and prices will gradually increase to reflect a correlation closer to the cost of new construction but it will be a very slow swing of this pendulum.

Art Campbell is president of Campbell Commercial Real Estate, Inc. Jeffrey L. Walters is a designated MAI Member of the Appraisal Institute and president of Walters Appraisal Services, Inc. ■

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Mid Atlantic Real Estate Journal — Spring Preview — April 22 - May 12, 2011 — 5D

CONDOMINIUM DEVELOPER

By Donna Bartynski, The DePaul Group

Keeping up with the market: Changing the way your development communicates

I

t’s no secret that the real estate market is constantly changing. It is something that developers throughout the city are coping with and adapting to each day. As it does, savvy developers are changing Donna Bartynski the way they approach prospective buyers and interact with current residents. In the last three years, my property, The Residences at Dockside has innovatively and successfully adapted to the changing real estate market to directly meet our buyers’ needs.

As a 16 story condominium development, set on a Penn’s Landing pier overlooking the Delaware River, The Residences at Dockside serves as one of Philadelphia’s most unique condominium properties. There is a certain allure and privacy to our property that draws buyers into a completely different luxury condominium living experience.

We have recognized that as the real estate climate continues to change, so should the way in which we interact and communicate with our residents.

As a result, over the last year we have proactively initiated a social media campaign to better communicate with our residents and those interested in our

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property in real time. We are hearing exactly what our current and prospective residents have to say through outlets like Facebook, Twitter, and a variety of other social media platforms. We can now share important and impactful information about The Residences at Dockside faster than ever.

We have also started a new program to offer prospective buyers a substantial value on their initial condominium fees by offsetting condominium fees when they first move to Dockside. We are diligently listening to all requests from our prospective buyers and are committed

to providing the conveniences that are essential in suiting buyers’ needs in this ever-changing market.

As a result we are seeing traffic at Dockside double and triple as prospective buyers take a greater interest in the property, amenities, and views.

Our “Be Our Guest” program continues to be a resounding success as buyers are given the chance to “test drive” their new home, and spend a weekend at Dockside before deciding to buy. We continue to learn more about our prospective buyers by looking at signs in the market, and adapting our

approach to communications about Dockside and its amenities in a more immediate way than ever before.

I am looking forward to introducing more innovative ways to satisfy our buyers’ needs and will continue to work with buyers so they can experience the absolute finest in waterfront living. I strongly believe that through diligent listening and adaptation to the changing needs of today’s buyers, we are paving the way for a new standard in residential real estate of how to accommodate buyers on every level.

As we move through the

spring real estate season, the market will undoubtedly change. While we cannot be sure exactly what it will bring, one thing is certain: buyers want to hear from their property management team. We at The Residences at Dockside are doing just that. I look forward to all that is ahead in the coming spring and summer months for The Residences at Dockside and hope to continue making positive changes in response to this dynamic market.

Donna Bartynski, The DePaul Group, developer of The Residences at Dockside. ■

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editor@marejournal.com We are pledged to the letter & spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage & support an affirmative advertising & marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status or national origin.

6D — April 22 - May 12, 2011 — Spring Preview — Mid

Atlantic Real Estate Journal

ECONOMIC DEVELOPMENT

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Mid Atlantic Real Estate Journal — Spring Preview — April 22 - May 12, 2011 — 7D

GREATER PHILADELPHIA BROKER

By Scott Mertz, NAI Mertz Corporation

Outlook for Southern New Jersey: Interest is up, will activity follow?

A

s a market characterized by its stability, commercial real estate industry in Southern New Jersey avoided the worst of the recent economic crisis.

Given that Scott Mertz steadiness, the market hasn’t rebounded as dramatically as some other corners of the country, but the recovery is underway and, at least as far as interest is concerned, things have picked up some steam in the first quarter of 2011.

Among the primary commercial real estate sectors, industrial properties are performing the strongest, albeit still at levels well below the peak in 2007. The industrial vacancy rate has dropped for three consecutive quarters and now stands at 9%. After a few quarters of decline, the average lease rate has inched back up and is in the mid-range of rates in the greater Philadelphia region.

After a run of six consecutive quarters with positive net absorption, the office market in South Jersey suffered a minor setback with a negative net absorption for the first quarter of 2011.

This could be due in part to an increase in asking rental rates. The average quoted rate for the first quarter was $17.77, up from $17.20 at the close of 2010.

The retail market in Southern New Jersey has yet to see a sustained period of recovery, however the vacancy rate dropped below 8% at the end of 2010 and remained there throughout the first quarter of 2011. After a year of declining asking rental rates, there was a slight uptick in the average asking rate in the first quarter to $13.26.

In its Fourth Quarter South Jersey Business Survey, the Federal Reserve Bank of Philadelphia found that business activity continues to pick up – the activity index has remained positive for a full year – but job growth remains stagnant.

The overall outlook of firms in the region is considerably more optimistic, with 53%

reporting they expect conditions to improve over the next six months versus just 13% who believe conditions will deteriorate.

Among the constants in Southern New Jersey’s favor is its ideal location at the center of the Northeast commercial corridor. The ready access to interstates, railways and ports have historically kept the area on the short list of destinations for logistics firms and distributors and that will continue to be the case for the foreseeable future. The deci-

sion on the part of the State to designate a significant portion of its federal stimulus funds to improvements to Southern New Jersey’s infrastructure will only help to bolster its appeal.

Multiple infrastructure projects are underway across the region to alleviate longstanding issues. Most notably the intersection of I-76, Route 42, and Route 55 is set to be completely overhauled. Work is projected to be completed in 2017 and will greatly improve drive-times for commuters and

beachgoers.

On the waterways, Southern New Jersey will soon add another terminal on the Delaware River at the Port of Paulsboro. Scheduled for completion in 2012, the Port of Paulsboro will not only allow for increased cargo activity, but it is expected to generate up to 2,500 permanent jobs.

South Jersey will also benefit from the economic development plan set forth for the state as a whole, which includes tax breaks for tech

startup investors, job creation measures under the Back to Work New Jersey initiative, and a campaign to aggressively market the state as a business hub.

It remains to be seen whether 2011 will be the year the Southern New Jersey market truly turns the corner, but with a marked increase in interest and efforts underway to enhance the area’s infrastructure, the outlook is highly positive.

Scott Mertz, NAI Mertz Corporation. ■

8D — April 22 - May 12, 2011 — Spring Preview — Mid

Atlantic Real Estate Journal

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SOFTWARE SOLUTIONS Senior Housing Platform

Bloomfield senior living gains comprehensive portfolio management with Yardi Voyager

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ANTA BARBARA, CA — Yardi announced that senior housing provider Bloomfield Senior Living has selected Yardi Voyager Senior Housing to manage its three-state portfolio of communities.

Bloomfield Senior Living will perform virtually every business function-including care management, clinical assessments, accounting, billing and marketing-from the fully integrated Yardi Voyager platform.

“One reason we selected Yardi is its ability to make rent roll analytics available on an executive management dashboard, avoiding the need to compile data from various sources and spreadsheets. This allows us to receive current, reliable information that can help increase occupancy,” said Tony Kantor, director of finance for Bloomfield Senior Living. “Also, with accounting centralized in Voyager, we can use one general ledger across our portfolio, rather

than create separate ledgers for each community. This will help us work more efficiently and improve our reporting capability.”

network security, hardware, bandwidth and infrastructure, allowing Bloomfield Senior Living to focus on its principal business

their portfolio expands,” said Eric Kolber, vice president of senior housing for Yardi.

About Bloomfield Senior Living

Yardi Cloud Services will provide hosting services to Bloomfield Senior Living.

With Yardi Cloud Services, Yardi serves and maintains the Voyager application and database for Bloomfield Senior Living from its data center. By providing this service, Yardi assumes responsibility for all application updates,

“We are pleased to help Bloomfield Senior Living meet its occupancy goals with a platform that can track prospect conversion ratios, costs per lead and other key marketing metrics. Bloomfield also has the option to add capabilities, including online rent payments and work orders, as

Family-owned Bloomfield Senior Living operates communities in Indiana, Ohio and South Carolina. It is a unit of Birmingham, Mich.based Kandu Capital LLC, a real estate investment and management company.

Kandu acquired five senior housing properties in 2010 as it continued to expand its diversified, growing portfolio of independent living, assisted living and Alzheimer’s and dementia care communities.

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The Graham Companies have selected Yardi Voyager as the new property management and accounting platform for their commercial and residential assets.

During a recent internal performance review, The Graham Companies concluded that managing an increasingly diverse portfolio that includes commercial and residential properties, golf and spa resorts, hotels and farming operations required a new platform that would provide them more flexibility.

“We have 500 commercial tenants and every lease is different, so Voyager’s ability to accommodate all the various terms is very attractive to us. Voyager will also handle our accounts payable and general ledger operations efficiently and calculate common area maintenance recoveries quickly and accurately,” said Andre Teixeira, executive vice president and chief financial officer for The Graham Companies.

“For our residential properties, Voyager will enhance enterprise-wide oversight and allow us to change pricing rules quickly across the portfolio.”

“Along with meeting The Graham Companies’ current needs, Voyager can be easily extended to accommodate their future needs as well.

These include budgeting and forecasting, job costing, online tenant and resident self-services, and other operations,” said Terri Dowen, senior vice president of sales for Yardi. ■

MAREjournal.com

Mid Atlantic Real Estate Journal — Spring Preview — April 22 - May 12, 2011 — 9D

GREEN BUILDING 3RD ANNUAL GREEN BUILDINGS SUMMIT 2011 Hosted by

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ESTATE JOURNAL

Thursday June 2 Trenton Marriott, New Jersey

U.S. GREEN BUILDING COUNCIL - NEW JERSEY Mid Atlantic Real Estate Journal (MAREJ) in conjunction with United States Green Building Council-New Jersey (USGBC-NJ) is pleased to announce our 3rd ANNUAL GREEN BUILDINGS SUMMIT‘11.

REGISTRATION NOW OPEN The event will provide the perfect platform to meet face-to-face and Network With: Commercial Developers, Property Owners, Redevelopment Experts, Contractors, Architects, Engineers, Attorneys, Consultants, Environmental Professionals, Multi-Family Investors, Urban Planners, Local and State Government Officials and Economic Development Agencies and more!

Thursday, June 02, 2011, 7:30 AM - 5:15 PM at The Trenton Marriott, Trenton NJ CONFERENCE TOPICS TO INCLUDE: • ANALYZING THE CURRENT STATISTICS: A DISCUSSION ON GOING GREEN • BUILDING GREEN: CREATING A “NET-ZERO ENERGY” OR “CARBON-NEUTRAL” STRUCTURE •THE ECONOMIC ADVANTAGES OF GREEN BUILDINGS •NEW JERSEY’S FINANCIAL SUPPORT FOR IMPROVING BUILDING ENERGY. •EMPLOYING RESOURCE-EFFICIENT MATERIALS TO ACHIEVE COMFORTABLE, SAFE AND SUSTAINABLE BUILDINGS •GOVERNMENT LEGISLATION FOR ECO-FRIENDLY BUILDING CONSTRUCTION AFTERNOON WORKSHOPS: Workshop#1 USGBC-NJ WORKSHOP & EXAM PREP: LEED® OVERVIEW AND HOW TO PREP FOR LEED® GREEN ASSOCIATE CREDENTIAL. (4 Hours)( 4 AIA Learning Units) Workshop#2 DESIGNING BUILDINGS FOR ENERGY EFFICIENCY. CORPORATE SUSTAINABILITY- A VIEW FROM THE GREEN OFFICE. (Two - 2 Hour Sessions) (Total of 4 AIA Learning Units) Sponsorship, Speakers & Exhibiting Opportunities Are Still Available CALL LINDA CHRISTMAN 800-584-1062 X 203 or EMAIL lchristman@marejournal.com REGISTER AT WWW.MAREJOURNAL.COM Thank you to the following sponsors: ůĞĂŶƚĞĐŚ >Ăǁ WĂƌƚŶĞƌƐ

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10D — April 22 - May 12, 2011 — Spring Preview — Mid

Atlantic Real Estate Journal

MAREjournal.com

SPRING PREVIEW

By Mary G. Z. Severino, MGZA

Add Power to Your Pitch! n November of 2010, I wrote a piece for this publication in which I noted the obvious. “The universe has reordered and business objectives could not be clearer: spend as little money as possible and make money Mary Severino as quickly as possible.”

The message has not really changed in the last three months, but --- something important has: there is a trickle

I

of action in the market. Some companies are actually looking to make changes for a number of different reasons. Some have downsized and want to dump space. Some companies have disappeared, leaving building owners with excess space and vacant buildings. Some companies see opportunity in the market and want to move to take advantage of the down market. Whatever the reasons, real estate professionals need to take advantage of the shifts if and when they occur.

Competition is very stiff, particularly when vacancy rates

translate into a lot of choices for the savvy consumer looking for the best building for the best price. As a 35-year industry professional, few would argue the fact that differentiators can make or break the close of the ‘sale.’ As I also noted in an earlier editorial piece, “valueadded” services are essential to the long term success of a building, its operations and its worth over the long-term. This contention, however, is a direct contrast to the pervasive attitude of “spend little,” and “make money quickly!”

If we change the premise

slightly from “spend little” to “spend a little,” building owners, managers and brokers can add significant power to the pitch! “Yep, right,” you might say, with a slight bit of sarcasm.

But consider this for a moment.

Walk into a building and look at it, smell it and think about it. If I am a prospective tenant, evaluating multiple properties, do I look twice at the one that smells bad, has peeling paint, and out-dated, sad, or worn carpet? How about the building that has the severely-downsized look, with cubes and office supply remains still evident?

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The allocation of a small percentage of funds for property improvement can be the difference between a closing and a decline as the potential client compares the available properties. My company, among others, has developed cost effective strategies for turning buildings from eyesores into undiscovered gems in the market. That converts into power with the pitch.

A pertinent analogy is the stage set. The audience sees a spectacular show because of thoughtful stage design. The power evolves from the team, including the set designers, the sound team, the musicians, along with the perception of the audience. “Easy,” you say, to use the analogy of a theater, but buildings are different. Are they?? Spend a little and team with an architect to define the state of the building for you -- in advance of showing the property to your prospective buyers or tenants.

Add the power to your pitch by recognizing the key elements that can differentiate your property from the competitors. Does your building send the wrong message? Are you 1980’s --- still?

Here are some fast tips.

• Recognize that “eco-friendly” and “sustainable” means something in 2011. Potential buyers and tenants want a healthy space so consider refreshing your building with materials that can pitch the environmental aspects of your building.

• Check the smell of your building. Does it still retain that lingering tobacco smell? Musty?

Bad mop smell? There are ways of cleaning and freshening a space while also maintaining cost-sensitive strategies.

• If the layers of ‘slappedon” paint on a building can be identified by layer, or if there are paint cracks combined with the cobwebs, it might be time to evaluate a strategy for refreshing the look of the building.

The difference between making the close on a new lease, retaining a tenant or making a sale could be the first impression your building gives your prospects. Provide power to your pitch by working with a team of appearance strategists that can recommend and provide a cost-effective refresh package.

Mary G. Z. Severino is the founder and president of MGZA (Zahn Incorporated) a certified Woman-Owned Business Enterprise. ■

MAREjournal.com

Mid Atlantic Real Estate Journal — Spring Preview — April 22 - May 12, 2011 — 11D

SPRING PREVIEW

FOR LEASE 53 FRONTAGE ROAD, HAMPTON, NJ

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MODERN-GENERATION OFFICE SPACE S E C O ND F L O O R PLAN

F I R S T F L O O R PLAN Available 1,770 RSF

Available 1,032 RSF

Available 1,909 RSF

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Partial 2nd - 35,067 RSF (divisible) 21,970 RSF (divisible) 11,371 RSF (divisible) 6,494 RSF Partial 1st - 16,262 RSF 10,921 RSF (divisible)* 4,005 RSF 3,860 RSF 1,909 RSF 1,770 RSF 1,032 RSF

R E N TA L R AT E :

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Available 4,005 RSF

AVAILABLE 14,632 RSF

Available 10,921 RSF AVAILABLE 7,338 RSF

Available 16,262 RSF AVAILABLE 11,371 RSF

AVAILABLE 35,067 RSF

AVAILABLE 6,494 RSF

Available 3,860 RSF

Leased

Available

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F O R MORE INFORMATION CONTACT:

Robert Ryan

Patricia Riedel

John Goodwin

Vice President

Senior Associate

Senior Associate

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732.509.2826

732.509.2832

robert.ryan@cbre.com

patricia.riedel@cbre.com

john.goodwin@cbre.com

12D — April 22 - May 12, 2011 — Spring Preview — Mid

Atlantic Real Estate Journal

MAREjournal.com

NEW JERSEY BROKER

By Jonathan Glick, Sheldon Gross Realty, Inc.

New Jersey Market Report Fourth Quarter 2010 t is a great pleasure to present this fourth quarter report and the trend, no matter how modest, indicating positive change.

There has been a general increase in activity throughout Jonathan Glick New Jersey.

Commercial and industrial users generally feel a need to start the process of seeking change. Some need to increase their space while

I

others feel a need to decrease their space. Markets relocate, suppliers and customers move around. Change is constant.

In general there is a sense that the dependence on overseas suppliers is not a secure future. This feeling has started to permeate the market place. The improvement in the State’s concern for business in New Jersey has begun to encourage people, in and out of New Jersey, to start the process of looking.

There still seems to be some uncertainty in the future, but the overall direction of consumer confidence will soon

be reflected in the positive increase in business real estate here in New Jersey.

CoStar ’s Northern New Jersey Advisory Report calculated a decreased 9.3% vacancy rate for industrial properties from the previous quarter. Average lease rates declined to $5.63 psf/yr net from $5.68 psf/yr net which equates to a 0.1% decline.

Certain pockets of industrial properties remain much lower than average due to the abundant supply of product. For example, surrounding the exit 8A interchange of the New Jersey Turnpike, large

distribution facilities are averaging $2.75 psf/yr net to $3.00 psf/yr net.

Flex buildings continue to maintain a double digit vacancy rate. These properties reported a vacancy rate of 12.5% a decrease from the 13.0% of the previous quarter, average lease rates remain almost the same at $11.36 in the fourth quarter as compared to $11.38 in the third.

As far as, sales of industrial properties sold during 2010, total year-to-date transactions have increased compared to the previous year.

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feet or larger there were 165 transactions in the Northern New Jersey Market with an average price per square foot of $50.62 psf. In comparison, in 2009 there were 151 transactions with an average price per square foot of $55.37psf resulting in an approximate 8.6% reduction in value.

Cap rates for industrial properties decreased in 2010.

They have averaged 8.34% as compared to 2009 when they averaged 8.45%.

Absorption gains in the Northern New Jersey Office market during the fourth quarter of 2010 increased to 698,140 square feet. The vacancy rate at the end of the fourth quarter was 13.8%.

Within the Class A and C buildings the vacancy rates decreased from 15.9% to 15.7% and 10% to 9.9% respectively.

Class B properties remained the same at 14% for both the 3rd and 4th quarters. The average office rental rate has increased 1.4% for all classes.

Fourth quarter 2010 average rental rates for each sector are as follows; Class-A $26.85 psf/yr, Class-B $21.54 psf/yr and Class-C were $19.72 psf/yr.

Sales transaction of Northern New Jersey Office properties of 15,000 square feet or larger, total year-to-date transactions were up compared to the previous year.

During 2010, there were 79 office sales transactions as compared to 66 sales in 2009.

The average price per square foot dropped to $128.64 from $166.99.

Interestingly enough, cap rates for office properties have been a bit lower in 2010 averaging 7.21% compared to the same period on 2009 which was 7.81%.

While the numbers presented in this report do not represent a “boom” in real estate, the activity has picked up. Among commercial Realtors, Owners and Developers, they have experienced more inquiries, property inspections and negotiations since the beginning of the year.

They must now figure out ways to complete the transactions more quickly!

NOTE: Statistical Information for this article was provided by CoStar Jonathan Glick is executive vice president of Sheldon Gross Realty, Inc. ■

MAREjournal.com

Mid Atlantic Real Estate Journal — Spring Preview — April 22 - May 12, 2011 — 13D

NEW JERSEY MULTIFAMILY

By Brian Whitmer, Cushman & Wakefield

“O

NJ Multifamily market returns to pre-recession fundamentals ptimistic” may be an understatement at this point

when it comes to describing the attitude toward the multi-family real estate climate in Northern New Jersey.

As we head Brian Whitmer into the second quarter of 2011, we are seeing the best Garden State submarkets hitting their stride and returning to strong, pre-recession fundamentals.

The multi-family vacancy rate was just 4.9% in Northern New Jersey at year-end 2010.

Occupancy again has risen to the high 90% range along the Hudson waterfront Gold Coast, with rising demand for best-in-class assets within that first-tier commute of New York City. Concessions have been eliminated almost entirely along the waterfront and for newer construction throughout the state. Rents grew 1.5% in 2010 after decreasing 3.1% in 2009.

Tenants at year-end 2010 paid an average of $1,510 per month across the board, which is 45% higher than the national average. In short, renter advantage is fading.

Why? Employment is strengthening in Manhattan, within financial services and supporting occupations. The rental market in the city has gotten incredibly tight; reports show that in the third quarter occupancy reached 99%. That level of performance immediately pushed up rents, which has priced many tenants out of that market. Waterfront towns in New Jersey – including Weehawken, Hoboken and Jersey City –absolutely are benefiting.

The progress is tangible, and the investment market is responding. Our team is in the last stages of transacting a $100 million multi-family asset in Hoboken, where the bidding competition was fierce. At the recent, very well attended National Multifamily Housing Council’s annual meeting, everyone seemed to be looking to make a deal. From the largest pension fund advisors to small private firms, investors of all sizes have money they want to spend.

Our main challenge in Northern New Jersey is a continued lack of institutional quality deals to be had. Looking at the

numbers historically, in the early 2000s, we saw an average of three or four class A communities trade. In 2006, that number doubled. Core multi-family asset sales came to a virtual halt in 2008 and 2009, but activity again picked up in 2010. Investors face a delicate balance: If they put something up for sale they know they can get top dollar, but they may not be able to redeploy that money with so few properties coming online in the New York metropolitan area.

Even across classes, opportunities remain tight compared to the robust sales levels during 2005 through 2007. Consider-

ing all multi-family investment deals valued at more than $10 million, 15 deals totaling $509 million in volume closed in 2008, six transactions totaling $195 million closed in 2009 and 12 transactions totaling $451 million closed in 2010.

Additionally, the development pipeline has slowed significantly. In 2009 and 2010, 1,478 and 2,205 units, respectively, were delivered in Northern New Jersey. This year, only 894 units will come online in Harrison, Jersey City and Rahway.

As an aside, the supreme focus on communities near mass transit is worth noting. Of the

eight communities completed last year, six were within walking distance to a train, PATH or ferry stop. All three of the communities currently under construction offer immediate rail access.

Looking again at the numbers, the 2010 delivery “surge” mainly consisted of units started in 2008 and likely financed in 2007 – before the crash and a total lack of available construction financing in 2008 and 2009. To date in 2011, our team has been active arranging joint ventures and forward commitments on development sites.

We definitely are noting a

return of construction financing for well-located development sites in fortress markets like the Gold Coast. But until some of these properties begin to come online in 2013 and even later, the undersupply of new Class A product will drive rent growth for the current owners, with existing communities that are much more in demand without notable new competition.

What this all means for Northern New Jersey multi-family investment for the balance of 2011 remains to be seen. Yes, there is incredible demand in the market – the fundamentals continued on page 15D

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14D — April 22 - May 12, 2011 — Spring Preview — Mid

Atlantic Real Estate Journal

MAREjournal.com

NEW YORK & NEW JERSEY GREEN ROOFER Final Flat Roof

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FFR-K1 is the only one part Kevlar infused thermo-set bonding agent in the world.

It is the only roof system that can be installed under water and in subfreezing conditions.

Our moisture & UV cured thermo-set has performed in the harshest conditions for over 15 years. Developed in 1950s’ as a thermo-set roof coating, the thermo-set resistance in the coating performs

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Endorsed by the Green Energy Council and EPA Registered, our product is clearly

What makes Final Flat Roof such a great deal for the building owner is that it is both ecofriendly and budget friendly.

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good for the environment. Our product uses no petroleum but contains high reflective and emissive properties, and its performance reduces both Global Warming and heat island effect. Furthermore, by restoring your roof and extending its life, there is no waste that would generally come from roof tear offs, and thereby, reducing the amount of toxic waste in our landfills.

Besides extending a roof ’s functional life for up to 20 years, it also encapsulates the toxins in both metal and petroleum roofs to help protect our storm water aqueducts.

FFR complies with federal and state executive orders in regards to the environment.

Often, budget-friendly choices are not budget conscious. What makes Final Flat Roof such a great deal for the building owner is that it is both eco-friendly and budget friendly. Recognized as top 81 money-saving products in 2010, our roof system cost about 40 to 60% less than a reroof. Our product is Energy Star Registered because it reduces utility consumption by as much as 40%. In addition, FFR can turn temporary repairs into a permanent roof solution over four years giving customers time to pay for their roof and most importantly, FFR is often tax deductible.

Final Flat Roof has started a roofing revolution with over 150 project consultants and 75 certified installers to service your roofing and water proofing needs. FFR has four regional distribution centers and 36 locations nationwide, and 5 international distributors to assist with projects overseas.

Our goal is to provide our customers with a product and a service that will exceed all of their expectations while helping the environment at the same time. ■

MAREjournal.com

Mid Atlantic Real Estate Journal â&#x20AC;&#x201D; Spring Preview â&#x20AC;&#x201D; April 22 - May 12, 2011 â&#x20AC;&#x201D; 15D

SOLAR INSTALLATION

By Mark Warner, Sun Farm Network

Solar installation brings strong economic benefits n the current economy, new revenues and reduced costs would be a welcome piece of good news. In NJ, putting your roof or parking lot to work generating solar electricity delivers exactly that proposition, in many Mark Warner cases without any investment required. Beyond its obvious environmental and energy independence benefits, a solar installation brings strong economic benefits in the form of fixed-price energy to the building tenants, and hosting-lease payments to the landlord.

Best of all, these solar projects offer a win-win solution for the many parties involved in the transaction. Commercial property managers are eager to find new revenue sources and differentiate their buildings with PR-worthy green energy.

The building owners benefit from payments made to lease the building area to host the array. The buildingâ&#x20AC;&#x2122;s tenants sign up for a fixed price supply of solar electricity â&#x20AC;&#x201C; for 15 years! These generous benefits are realized through a Power Purchase Agreement, in which

I

By Brian Whitmer, Cushman & Wakefield . . . continued from page 13D have dramatically improved.

However, these positive trends are leading sellers to remain hesitant about marketing their properties until the improvement in operations begins to plateau. Coupled with uncertainties over interest rates and financing, these factors have kept the New Jersey market quiet so far this year. But looking ahead to the near term, an abundance of all-cash buyers should keep cap rates where they were in 2010 â&#x20AC;&#x201C; at historic lows that in general mirrored the pre-2008 heady times. Once a few deals have been priced, sellers will be enticed to test the market. We expect that will likely generate a flurry of deals in the second and third quarters of this year.

Brian Whitmer is director of Cushman & Wakefield, Inc.â&#x20AC;&#x2122;s Metropolitan Area Capital Markets Group in East Rutherford, NJ. â&#x2013;

case energy consumers agree to purchase the energy coming from the solar array, rather than the solar system itself.

Here is how it works: third party investors arrange to install a solar system on a commercial buildingâ&#x20AC;&#x2122;s roof, or on a specialized shade structure over the parking lot. The building tenants agree to buy the solar electricity coming from the array â&#x20AC;&#x201C; at a fixed price for 15 years. Our company can frequently offer savings as high as 30 to 50% off the current cost of utility power, and that savings goes up as the utility power rates increase relative

to the fixed price solar supply.

Meanwhile, the landlord receives an annual lease payment for putting their commercial buildingâ&#x20AC;&#x2122;s roof or parking lot to work â&#x20AC;&#x201C; and additional benefits from significant PR and differentiation for the building. Commercial real estate managers can frequently participate in helping to organize the project.

Both the building owner and the tenant gain these benefits without making any up front investments themselves!

Historically, these Power Purchase Agreements were only available for very large projects with extremely credit

worthy consumers. Based on new innovations pioneered by the Sun Farm Network, these benefits can now be realized by more modestly sized, mainstream customers. Almost any commercial building can now serve as a hosting site for clean, renewable solar energy â&#x20AC;&#x201C; delivering new revenues to the building owner, and substantial cost savings to the tenants.

Structuring these projects properly requires considerable expertise â&#x20AC;&#x201C; combining demanding structural and electrical engineering, construction, financial problem solving, and long term operational support

of the system. The Sun Farm Network offered the first generally available financing for solar back in 2002, and proudly supports the largest installed base of financed systems in NJ. Our nine year track record means that not only do we have the experience and expertise to bring your project to real fruition, but that you can count on us to be here years from now.

Let us show you how to put your roof or parking lot to work, bringing both revenue and cost reductions to your commercial buildings for decades.

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16D — April 22 - May 12, 2011 — Spring Preview — Mid

Atlantic Real Estate Journal

MAREjournal.com

PUBLIC SECTOR ASSETS

By Libby Kavoulakis, The Metis Group

Unlocking value in public sector assets

T

he adverse effects of the economic slowdown have directly impacted public sector revenues at all levels of government.

Where increasing property values, job growth and development once fu- Libby Kavoulakis eled an influx of tax dollars, declining property values, foreclosures, construction halts and job losses now drain dollars from public coffers. Jurisdictions are now faced with identifying new sources of revenues to fund the increasing demands for public services.

Many jurisdictions are now looking at real estate holdings as the new-found revenue source.

Governments are often property rich, but cash poor, having considerable holdings, but no liquidity in the holdings. Therein lies the dilemma of unlocking value in public sector assets.

This dilemma is playing itself out on the national level, as President Obama’s unsuccessful plan to dispose of nearly 14,000 federal properties was rescinded.

Revenues and potential savings were over-estimated, many of which are functionally and economically obsolete. However, the basic premise of reallocation of public holdings back to private ownership is sound.

The Federal government suc-

ceeded in transferring excess and surplus properties to the private sector to return to the tax rolls, such as the bases closed under the Base Realignment & Closing (“BRAC”) actions over the past decade. Actions are visible in the Mid-Atlantic region from Fort Monmouth, NJ to Aberdeen Proving Ground, MD. Under BRAC, the bases are no longer under the ownership of the Federal government. While this program may benefit a local jurisdiction, it is not a viable revenue-generator for state and local governments as the large scale asset is not common in their portfolios.

Enhanced-Use Leasing (“EUL”) has a similar outcome, but different structure which is

more applicable to state and local governments. Under EUL, the government retains ownership of the asset, but enters into a long-term ground lease for up to 75 years. The private sector developer may then redevelop the property. In exchange, the government receives cash or in-kind consideration in the form of goods and services.

Transactions are completed or underway at Picatinny Arsenal, NJ, Fort Detrick, Fort Meade, VA Medical Center Perry Point, MD, Aberdeen Proving Ground, MD and Walter Reed Army Medical Center, DC. State and local governments have well-located assets that are no longer in use. The greatest success comes with well located

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assets with strong market demand behind them. Over the past year, both state and local governments throughout the Mid-Atlantic region have issued requests for services to analyze the potential for long-term leases of real estate holdings. For state and local governments, the infill locations or locations along the paths of growth are natural candidates. As these governments own underutilized properties, the types of properties in their control are varied.

Sale/leaseback is commonplace in private sector real estate and is becoming more accepted as an option for public sector holdings. This option was explored in many jurisdictions and is often used as a means to generate onetime capital. For example, the City of Newark recently entered into a sale-leaseback arrangement for 16 properties for $40 million to be leased back. The City of Hoboken previously used this structure on its municipal garage.

But not all state and local properties are existing or former public buildings. Increasingly, ownership of real estate results from donations and from inheritance and estates. Alumnae donate farms, houses, small commercial buildings and land to their state school alma mater.

The portfolio is vast and restrictions are often in place, but there are still opportunities for revenue generation.

Another source is through the capital markets. While many state and local jurisdictions offer loan guarantees or direct loans for housing and economic development programs, the servicing of the loan portfolios is often difficult and lax, as many contain repayment, inheritance and assumption clauses, thus clouding the payment stream. Regardless, where there is a portfolio, there is a capital market opportunity to bulk sale, securitize or otherwise generate funds from the portfolio for redeployment to current programs and needs.

There are assets under control of the public sector that, if redeployed, are revenue sources for these jurisdictions. The dual benefit of also reducing operating and holding costs also contributes to the benefits. As all levels of government seek ways to stretch and reduce budgets, approaching real estate holdings from a profit-generating perspective may provide some solutions.

Libby Kavoulakis, The Metis Group. ■

MAREjournal.com

Mid Atlantic Real Estate Journal — Spring Preview — April 22 - May 12, 2011 — Inside Back Cover D

Back Cover D — April 22 - May 12, 2011 — Spring Preview — Mid

Atlantic Real Estate Journal

MAREjournal.com

New Location Expanded Services The Metis Group and Lewis Consulting Group announce the opening of our combined offices in East Orange, New Jersey.

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