4-22-11

the most comprehensive source for commercial real estate news

Real estate JouRnal

Inside:SectionsMid Atlantic .......................................................Section A

DelMarVa ..............................................................................A

Shopping Centers ......................................... Section B

Contractors, Owners & Managers ........ Section C

Spring Preview ............................................... Section D

Spotlights / FeaturesCalendar 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

ColumnistsDave Wood.. ......................................................................2A

Next IssueMay 13, 2011• Mid Atlantic

• NJAA Expo

• New Jersey featuring Central New Jersey

• Pennsylvania featuring

Projects/Building Services

• Green Awareness4 sections, 92 pages

Vol. 23, Issue 7 April 22 - May 12, 2011

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

Spring Preview

Shopping CentersProject of the Month

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

Rebecca Machinga

Arthur Campbell

Jeffrey Walters

Scott Mertz

Mark Warner

Libby Kavoulakis

Jonathan GlickDonna Bartynski

Brian Whitmer

A Inside Cover — April 22 - May 12, 2011 — Mid Atlantic Real Estate Journal ` MAREjournal.com

3RD ANNUAL GREEN BUILDINGS SUMMIT 2011

U.S. GREEN BUILDING COUNCIL - NEW JERSEY

Mid Atlantic Real Estate Journal (MAREJ) in conjunction withUnited States Green Building Council-New Jersey (USGBC-NJ) is pleased to announce

our 3rd ANNUAL GREEN BUILDINGS SUMMIT‘11.

REGISTRATION NOW OPENThe 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 Offi cials 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#1USGBC-NJ WORKSHOP & EXAM PREP: LEED® OVERVIEW AND HOW TO PREP FOR LEED® GREEN ASSOCIATE CREDENTIAL.(4 Hours)( 4 AIA Learning Units)

Workshop#2DESIGNING 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 AvailableCALL LINDA CHRISTMAN 800-584-1062 X 203 or EMAIL [email protected]

REGISTER AT WWW.MAREJOURNAL.COM

Thank you to the following sponsors:

Thursday June 2Trenton Marriott, New JerseyEAL ESTATE JOURNALHosted by

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

Systems, Inc.

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No question about it-Heavy rains, sleet and extreme snow falls have seriously damaged roofing on commercial and residential buildings up and down theEast Coast of our great country. Each severe weather event stresses, and damages, or causes failure of that physical insurance policywe 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 onthe 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 andbusinssses have been greatly affected and the economic losses downtime to both are staggering. The longer you wait the worseit 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 tosomewhere 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 businessall 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 straightand help you with your insurance company. To make it easier for you, we accept insurance payments too.

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2A — April 22 - May 12, 2011 — Mid Atlantic Real Estate Journal MAREjournal.com

Mid AtlanticReal Estate Journal

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 mate-rials and website lead people to conclude that yours is a $20 million company, rather than the $7 million fi rm 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 as-sumption, they in turn consider you for larger and/or more pres-tigious projects, that’s great. If you’re realistically qualifi ed 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 news-letter, Words from Woody, won the fi rst of three Construction Writers Association T. Ran-dolph Russell Awards for News-letters. 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 sud-denly 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 hon-est, the overall response was

W

By Dave Wood “Award-Winning Ideas:

Perception is reality”

Mid Atlantic REAL ESTATE JOURNALPublisher ............................................................................Linda Christman

Co-Publisher .........................................................................Joe Christman

Associate Publisher ...........................................................Dianna Mallozzi

Associate Publisher ............................................................Elaine Fanning

Senior Editor/Graphic Artist ................................................ Karen Vachon

Offi ce Manager ...................................................................Joanne Gavaza

Editorial Consultant ............................................................. Ben Summers

Guest Columnist ...................................................................... Dave Wood

Contributing Columnist .......... Casey H. Kenton, CCIM, Sperry Van Ness

– Miller and Michael Regina, BIG SKY Enterprises

Mid Atlantic REAL ESTATE JOURNAL ~ Published Semi-Monthly

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Periodicals postage paid at Rockland, Massachusetts and additional mailing offi ces

Postmaster send address change to:

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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 Massa-chusetts 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 fi rst class entry.

These two successful con-tractors, though arguably a bit lacking in their planning, recognized the value of awards competition. Though obviously there are no guarantees of win-ning, 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, fi guring you haven’t got the time to get it done.

That’s wonderful for those of us who do enter—less competi-tion! 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 sub-mission 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 fi rm’s marketing effort.

• Submitting an award entry tells the other members of your team (owner, architect, contrac-tor, 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

They wrote the policy.

We make sure they write the check.

M. MILLER & SONPublic Adjusters

Since 1960

1211 Liberty Ave., Hillside, NJ 07205 ● Tel: [email protected] ● www.mmillerson.com

Commercial Real Estate is COMING BACK

& it's COMING BACK

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Green Awareness Sectionof the Mid Atlantic Real Estate Journal.

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Reach thousands of readers with one of our many marketing programs available to you designed

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For more information please call

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Mid Atlantic Real Estate Journal iscelebrating their 9th year of providing

readers with accurate, unbiasednews covering every facet of thecommercial real estate industry.

continued on page 6A


MID ATLANTIC REAL ESTATE JOURNAL

SECAUCUS, NJ — CB Richard Ellis Capital Markets Debt & Equity

Finance group procured an $85 million permanent mort-gage refi nance of a fi ve-asset portfolio within the Harmon Meadow section of the Hudson Meadowlands.

CBRE’s James Gunning, Donna Falzarano and Michael Sherman secured the perma-nent 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 fi nancing to Har-mon 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 Har-mon Meadow section of the Hudson Meadowlands.

100 Plaza Dr., a 264,973 s/f offi ce 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 of-fi ce building, home to Hartz Mountain Industries corporate headquarters.

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

Providing fi nancing to Hartz Mountain entity

CBRE procures $85 million mortgage refi nancing

mixed-use asset comprised of retail stores and restaurants.

300 Plaza Drive

APARTMENT & COMMERCIAL LOANSARE NOW AVAILABLE AT GREAT TERMS

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PHONE (973) 625-7982 FAX (973) 625-7985EMAIL [email protected]

TOTAL LOANS PERSONALLY PLACED EXCEED $1,500,000,000

All loans subject to final lender approval.March. 11

BLUE BELL, PA — George Broseman, principal in the Land Use, Zoning & Develop-ment group of Kaplin Stew-art in Blue Bel l was a presenter at a seminar for the National Business In-stitute.

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

Kaplin Stewart’s Broseman presents at seminar

George Broseman

700 Plaza Dr., a 27,000 s/f data center. ■

Mid Atlantic REAL ESTATE JOURNAL

is published to serve all companies andindividuals in the commercial

real estate industry.

Whether you are a company looking forspace or seeking to dispose of or acquire,

build or design property, look to theMid Atlantic Real Estate Journal first!

Call1-800-584-1062/781-871-5298



DELAWARE — Rockford Capital Partners through its affi liated 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 opportu-nistic / value-add properties in the mid-Atlantic U.S.

Principals named in the fi ling are Doug Motley, Nick Ham-monds, 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 fi rm.

Ellis is a principal at Pat-terson-Woods & Associates, one of the largest commercial real-estate brokerages in Delaware, and specializes in investment and corporate property sales and leasing for offi ce, industrial, and retail properties.

Shepherd is a founder and principal of Monadnock Securi-ties, a FINRA registered broker-dealer with offi ces in Philadel-phia and Wilmington. ■

Rockford Capital Ptrs. closes initial round of funding for $30m RE vehicle

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 man-aging director with Colliers rep-resented the tenant. Landlord, Crown Props., was represented by Bob Ryan of CB Richard Ellis in the transaction. ■

Colliers arranges 8,183 s/f renewal

EW YORK — Cooper-Horolwitz, Inc. recently arranged fi nancing 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 offi ce building. The loan was for $6,000,000.

Richard T. Horowitz repre-sented Cooper-Horowitz, Inc.

Also handles $24.68m loan for The Park Tower Apt.

Cooper-Horowitz arranges $36 million in fi nancingN on the above three transac-

tions.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 build-ing with retail space. The loan was for $4,685,000.

Richard T. Horowitz and Jay-son N. Schwartz represented the firm on the above two transactions. ■

The Park Tower Apartments

ATTENTION:Architects, Engineers, General Contractors& Construction Contractors

Issue Date: May 27thDeadline: May 10thContactElaine Fanning800-584-1062 ext. [email protected]

Promote your company, retail projects and expertise in MAREJ’sannualRetail Architecture, Construction & EngineeringSpotlight


COMMERCIAL REAL ESTATE ORGANIZATIONS’

EVENTS CALENDARAPRIL 25 – IROEBAEvent: 1st Annual IndustrialDeveloper’s & Investors NightTime: 5:00 PMLocation:Renaissance Woodbridge HotelAddress/City: Iselin, NJCost: $90 Members$105 NonmembersEmail: [email protected]

APRIL 26 – The Commercial RealEstate School of TriState REALTORS® Commercial AllianceEvent: Strategic Communication in Client Representation, Negotiations, the Offi ce and Beyond CourseTime: 1:45 PM - 6:30 PMLocation: Two Commerce SquareAddress/City: 2001 Market Street—Conference Center, 2nd FloorPhiladelphia, PARegistration: Connie Lojewski [email protected]: 215-640-8543

APRIL 26 – CIANJEvent: Inaugural Manufacturing Roundtable MeetingTime: 8:00 AM – 9:30 AMLocation: Hilton Hasbrouck HeightsAddress/City: 650 Terrace AveHasbrouck Heights, NJCost: $35 Members $75 NonmembersP: 201-368-2100Email: [email protected]

APRIL 26 – ULI BALTIMOREEvent: Young Leader’s Lunch & Learn: Building the Next BaltimoreLocation: City Arts BuildingAddress/City: 440 E. Oliver St.Baltimore, MDP: 800-321-5011www.baltimore.uli.org

APRIL 26 – ULI PHILADELPHIAEvent: YLG – Social Media & En-gagement-Strategies & Case Studies RoundtableTime: 12:00 PM – 1:30 PMLocation: Langan Engineering & En-vironmental Serv.Address/City: 30 S. 17th St., 13th Fl., Philadelphia, PAP: 800-321-5011www.philadelphia.uli.org

APRIL 27 – CREW LEHIGH VALLEYEvent:Membership & Guest BreakfastTime: 8:00 AM - 9:30 AMLocation: K & H Window TreatmentsAddress/City: 1110 Trexlertown Rd. Trexlertown, PACost: FreeP: 484-951-4081Email: [email protected]

APRIL 27 – AIA PHILADELPHIAEvent: Annual MeetingTime: 4:00 PM – 7:30 PMLocation: Center for ArchitectureAddress/City: 1218 Arch St.Philadelphia, PACost: Members FreeP: 215-569-3186Email: [email protected] APRIL 28 – ABC BALTIMOREEvent: Awards of ExcellenceTime: 6:00 PM – 9:00 PMLocation: Westin – BWI AirportAddress/City: 1110 Old ElkridgeLanding Rd., Linthicum, MDCost: $90Email: [email protected]

APRIL 28 – SMPS DCEvent: Principles Roundtable: The Future of the I-270 Bio-Science & Tech CorridorTime: 8:00 AM – 10:00 AMLocation: North Bethesda Marriott & Conf. CenterAddress/City: 5701 Marinelli Rd.Bethesda, MDCost: $65 Members $85 NonmembersP: 703-349-6001www.smpsdc.org

APRIL 28 – DVGBCEvent: Best of Greenbuild &Sustainable Design CompetitionTime: 4:00 PM – 8:00 PMLocation: Federal Reserve Bank of PhiladelphiaAddress/City: 121 North 7th St.Philadelphia, PAP: 215-399-5792Email: [email protected]

APRIL 28 – USGBC NJEvent: How to Use Federal & State Tax Incentives to Help Sell Your Green ProjectTime: 5:00 PM – 9:00 PMLocation: Princeton TriumphBrewing Co.Address/City: 138 Nassau St.Princeton, NJCost: $40 Members $50 NonmembersP: 973-290-0013Email: [email protected]

MAY 2 – AIA PHILADELPHIAEvent: 2011 Golf OutingTime: 10:30 AMLocation:Huntingdon Valley Country ClubAddress/City: 2295 Country Club Rd.Huntingdon Valley, PAP: 215-569-3186Email: [email protected]

MAY 3 – BOMA PHILADELPHIAEvent:Lessons Learned in an EmergencyTime: 8:30 AM – 10:30 AMLocation: PNC Bank BuildingAddress/City: 1600 Market St., 3rd Fl. Philadelphia, PACost: Members Free$25 NonmembersP: 215-567-7775www.bomaphila.com

MAY 4 – CREW LEHIGH VALLEYEvent: From Brownfi eld to Green Car DealershipTime: 11:30 AM – 1:00 PMLocation: Bennett Toyota DealershipAddress/City: 2121 Lehigh St.Allentown, PACost: $15 Members $25 Guestswww.crewlehighvalley.org

MAY 4 – ICREW NJEvent: 10th Annual Golf ClassicLocation:Fiddler’s Elbow Country ClubAddress/City: Bedminster, PAP: 609-585-6871Email: [email protected]

MAY 4 – SMPS PITTSBURGHEvent: SMPS Luncheon Series with Secretary of Transportation Barry SchochTime: 11:30 AM – 1:30 PMLocation:Engineers Society of Western PAAddress/City: 337 4th Ave.Pittsburgh, PAwww.smpspittsburgh.org

MAY 5 – SMPS CENTRAL PAEvent: Golf “Fore” Business – Golf LessonsTime: 7:00 PM – 8:00 PMLocation: Bumble Bee Hollow-EastAddress/City: 4201 Linglestown Rd.Harrisburg, PACost: $50 Members$100 Nonmemberswww.smpscentralpa.org

MAY 6 – ABC EASTERN PAEvent: Bucks & Montgomery Counties Legislative BreakfastTime: 9:00 AMLocation: Zoto’s DinerAddress/City: 1100 Bethlehem PikeLine Lexington, PACost: Members FreeP: 610-279-6666 Email: [email protected]

MAY 10 – TRISTATEEvent: Green Initiatives: Issues of Sustainability in Commercial Real EstateTime: 9:00 AM – 11:30 AMLocation:Spring Mill Corp. Cntr. AuditoriumAddress/City: 1100 E. Hector St.Conshohocken, PACost: $30 Members $45 NonmembersP: 610-2389950 Email: [email protected]

MAY 11 – CIRC DEEvent: Annual Meeting & LuncheonTime: 11:30 AM – 1:30 PMLocation: Clarion – The BelleAddress/City: 1612 N. DuPont Hwy., New Castle, DECost: $30 Members $40 NonmembersP: 302-633-1705Email: [email protected]

MAY 11 – SMPS PHILADELPHIAEvent: Indispensable Skills for Creating Your Brightest FutureLocation: Wallace Roberts & ToddAddress/City: 1700 Market St., Ste. 28Philadelphia, PACost: $35 Members $65 Nonmemberswww.smpsphiladelphia.org

MAY 12 – NAIOP NJEvent:2011 Commercial Real Estate AwardsLocation: Palace at Somerset ParkAddress/City: 333 Davidson Ave.Somerset, NJCost: $475 Members$525 Nonmemberswww.naiopnj.org

MAY 26 – MBAEvent: Annual Past Presidents’ &Inaugural DinnerTime: 5:30 PM – 8:30 PMLocation: The Union League ofPhiladelphia-Grant RoomAddress/City: 140 S. Broad St.Philadelphia, PACost: $75 Members $85 NonmembersP: 888-739-9991Email: [email protected]

MAY 26 – ABC EASTERN PAEvent: Meet the GeneralsTime: 3:00 PM – 7:00 PMLocation: Holiday Inn Lehigh ValleyAddress/City: 7736 Adrienne Dr., Breinigsville, PACost: $85 MembersP: 610-279-6666 Email [email protected]

JUNE 13 – ABC EASTERN PAEvent: Spring Golf OutingTime: 9:00 AMLocation: Philadelphia Cricket ClubAddress/City: 6025 W. Valley Green Rd.Flourtown, PAP: 610-279-6666Email: [email protected]

JUNE 20 – TRISTATEEvent: 15th Annual Golf OutingTime: 11:30 AMLocation: Green Valley Country ClubAddress/City: 201 West Ridge PikeLafayette Hill, PARegistration:[email protected]: 610-238-9950



EADING, PA — In an effort to attract for-eign investment to the

Greater Reading region, Berks E c o n o m i c Partnership (BEP) has p a r t n e r e d with the York County Eco-nomic De -v e l o p m e n t Corporation, National Ex-port, U.S. Foreign Direct In-vestment, Commonwealth of Pennsylvania, Economic

NEW YORK, NY — FTI Con-sulting, Inc., the global busi-ness advisory fi rm announced that its real estate and construction practices, FTI Schonbraun M c C a n n Group and FTI Brewer, w i l l adopt the FTI Con-sulting brand with immediate effect.

The move follows the fi rm’s recently announced “one brand” strategy, in which FTI Consult-ing will convert substantially all of its acquired fi rms to the FTI Consulting brand.

Established in 1973, FTI Schonbraun McCann Group is

Schonbraun McCann Group adopts FTI Consulting brandone of the largest national real estate and fi nance consulting fi rms 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 seg-ment.

FTI Brewer is one of the lead-ing providers of commercial and dispute resolution services to the construction and engineer-ing sectors and will operate within the global Construction Solutions Team within FTI Consulting. The move unifi es 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 Con-sulting, said: “Our real estate practice has vastly expanded its global reach, and we now have a presence in 50 major busi-ness centers worldwide. Our business has complemented the company’s corporate fi nance/re-structuring business segment well, allowing us to offer our unsurpassed real estate advi-sory 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.” ■

B R I S T O L , P A —Binswanger’s client, Lexing-ton 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 Ritten-house Circle.

Binswanger reps Lexington Bristol L.P. in 241,977 s/f leaseThe property is located in

Keystone Park. The site is designated as a Keystone Op-portunity Improvement Zone allowing for tax relief and a Bucks County Enterprise Zone which provides local businesses with technical, fi nancial, and infrastructure assistance.

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

competition by all lenders for the lower leveraged deals, as previously mentioned. Fan-nie 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 fi nancial 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 go-ing forward, to insure longevity in this next rally. The future is brightening, like a low energy light bulb that turns on dimly at fi rst and then gradually gets brighter, and hopefully lasts a much longer time.

Nancy Ferrell is managing director of the Baltimore Regional Office of North-Marq. ■

continued from page 9AThe future of debt – How quickly . . .

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 ef-fort worthwhile.

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

You’ll also fi nd 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 procras-tinate 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 fi nishes in the money.

David W. Wood is a Deer-ing, NH copywriter, news-letter publisher and mar-keting consultant special-izing in the construction industry. ■

By David W. Wood, Constructive . . .

An effort to attract foreign investment

BEP participates inForeign Trade MissionR

Deb Heffner

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

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

Advanced Manufacturing com-panies, including many poised for global expansion. This partnership presents a unique opportunity to leverage the in-fl uence of the U.S. Department of Commerce.”

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

continued from page 2A

MALVERN, PA — Liberty Property Trust has announced that Microsoft has renewed its commitment to the Great Val-ley Corporate Center (GVCC) with an expansion and renewal of its lease at 45 Liberty Blvd. The agreement incorporates the new Microsoft Technol-

ogy Center that earlier this month.

Microsoft almost doubled its lease (from 27,000 to 49,000 s/f) of class A offi ce space, allocat-ing 22,000 s/f on the building’s fi rst fl oor to the new Microsoft Technology Center. ■

45 Liberty Blvd.

Microsoft renews commitment to GVCC

Liberty Property Trustannounces 49,000 s/f lease

BruceSchonbraun

PHILADELPHIA, PA — Rep-resenting Crown Two Penn Center Associates of New York, PernaFrederick Commercial Real Estate has negotiated one renewal, and the fi naliza-tion of two new space contracts aggregating 13,132 s/f of class A space at Two Penn Center Plaza.

Steve Perna and Matt Fred-erick, principals of PernaFred-erick, the agent for the prop-erty, brokered all the agree-ments that have a combined aggregate value exceeding $1.1 million.

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

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

In an expansion into Center City, the law fi rm of Friedman, Schuman, Applebaum, Nem-eroff & McCaffery, has leased 4,100 s/f on the 10th fl oor.

Les Haggett, a broker with Newmark Knight Frank Smith Mack, cooperated with Per-naFrederick and represented the law fi rm in fi nalizing 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 rep-resented BMS Intermediaries in the lease negotiations. ■

Pernafrederick Commercial brokers three lease agreements


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EW YORK, NY — Shel-don Good and Company will auction 8 land par-

cels and 15 newly constructed residences in Maryland, Dela-ware 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 “Ab-solute,” regardless of price, making this a remarkable in-vestment opportunity. Sug-gested 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 de-velopers in the region who will have the opportunity to name their price and acquire real es-tate with a tremendous amount of potential” said John Cuticelli, CEO of Sheldon Good & Co.

The auction of Clearview

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

Sheldon Good & Companyto conduct auction of eight subdivisions

Meadow, located in Dover, DE, features 242 remaining lots – 22 fi nished and 200 unfi n-ished lots in a 303-lot Master Planned Development, with single-family, twinhome and townhome confi gurations avail-able. 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 fi elds. The property is an ideal single-family residential develop-ment 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 de-velopment opportunity. There is currently one single-fam-ily 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 fam-ily 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 fi nished and 2 are new townhouses. Located off of Rte. 2 in Price Frederick, this area is attractive to Washing-ton, DC commuters and offers the convenience of shopping,

N dining, and recreation just minutes from the property. The suggested opening bid is $975,000.

Kingston at Wakefi eld Plan-tation in Raleigh, NC includes 2 pad sites totaling 30 lots with townhome configura-tion 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 featur-ing 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 fi nished 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. ■

Oak Tree Landing

�A — April 22 - May 12, 2011 — Mid Atlantic Real Estate Journal MAREjournal.com

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MAREjournal.com Mid Atlantic Real Estate Journal — April 22 - May 12, 2011 — �A

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PeoPle on the Move

ARSIPPANY, NJ — Bryn Cinque, one of Colliers Internation-

al Tri-State’s most success-ful brokers, was ranked as the firm’s top New Jer-sey Producer for 2010.

An execu-tive manag-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

Ranks among Tri-State’s 2010 top producers

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

Bryn Cinque

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, Col-liers International New Jersey. “Bryn is savvy and focused, with terrific business instincts and superior market knowl-edge.

“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 ca-reer, 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 Metropoli-tan Life, Prudential Insurance Company, PSE&G, Buchanan Ingersoll, Fox Rothschild, Ad-vance Realty Group and Ivy Realty. n

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 congrat-ulates Randee Stolar on the completion of a lease on behalf of a medical tenant in Livingston, Suzanne Kiall

Hopkins Sampson & Brown adds Campbell

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

with an uptick in the econ-omy and an extensive list of negotiations on behalf of landlords and tenants, Hop-kins Sampson & Brown Real Estate Advisory Services, LLC is looking forward to a fantas-tic 2011. n

PHILADELPHIA, PA — Grubb & Ellis Company an-nounced that Elaine Batta-glia, Matt Guerrieri and Joe Sklencar Jr. were pro-moted to associate vice presi-dent, 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 promis-ing 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.,

Grubb & Ellis promotes four professionals in Philadelphia

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

Guerrieri joined Grubb & El-lis’ Philadelphia office in 2000 as a research manager before transitioning to brokerage in 2005. He specializes in rep-resenting 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 special-izes in landlord and tenant representation in New Castle County, DE, particularly the wilmington CBD. n

MORRIS PLAINS, NJ — Weichert Real Estate Af-filiates, Inc., (wREA), the franchise division of weichert, Realtors, recently introduced the weichert Relocation Soci-ety 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 out-bound 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 rela-tionships.”

weichert Relocation Society members benefit from ongoing

Weichert RE affiliates launch membership organization for relocation professionals

referral/relocation training webinars and marketing ma-terials. 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 busi-ness,” said Judy Bittner, di-rector of relocation services for wEICHERT, REALTORS - America First Team in Con-cord, 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 so-phisticated tactics for increas-ing their level of relocation business.”

weichert Real Estate Affili-ates launched its first franchised office in January 2002. n

NEw CASTLE, DE — Mi-chele Hartlove Chynoweth has joined NAI Emory Hill as a marketing associate. In her new role, she will assist agents in the marketing of commer-cial property listings.

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

B A LT I M O R E , M D — Reznick Group announced that Karen Harris, senior manager in the firm’s Balti-more 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,

FLEMINGTON, NJ — TD Bank has named Da-vid G. Ma-trisciano (shown) as vice presi-dent – busi-ness devel-opment offi-cer in the SBA Division. He is

Matrisciano joins TD Bank as VP business dev. officer in SBA Division in Flemington, NJ

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 re-gion, 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 Chynowethwide range of creative ser-vices for clients such as direct marketing and advertising. She previously has worked as a copywriter and account executive with H. Galperin As-sociates 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 Asso-ciation of Business Commu-nications 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 BoardMaryland New Directions has helped more than 130,000 cli-ents make constructive career decisions. The organization as-sists unemployed and underem-ployed individuals in Baltimore City, with various barriers to successful employment, find jobs leading to family-sustain-ing wages. Each year, Maryland New Directions offers more than 500 career counseling sessions, 20 computer literacy

courses, and 120 career work-shops.

“I am honored to be a part of Maryland New Directions. I believe in their mission of try-ing 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 op-portunities.” n

PHILADELPHIA, PA — Marc E. Gold, founding partner of of Manko, Gold, Katcher & Fox, LLP par-ticipated in a panel discus-sion entitled “Environmental Issues Affecting Oil and Gas

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

continues to produce valu-able natural gas resources, the environmental require-ments continue to evolve to effectively regulate produc-tion activities throughout the Commonwealth. n

Marc Gold of Manko, Gold, Katcher & Fox serves as PBI panelist

DelMarva Real estate JouRnal

MAREjournal.com Mid Atlantic Real Estate Journal — DelMarVa Real Estate Journal — April 22 - May 12, 2011 — 11A

DelMarva Real estate JouRnal

ILMINGTON, DE — Star Building, LLC announced that

Grant & Eisenhofer, PA, a Del-aware 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 River-front of wilmington.

This lease represents the first principal tenant lease in the +/-150,000 s/f office build-ing completed in late 2010 by Pettinaro Construction Company. Additional space is still available for lease in this building and Pettinaro is currently working on secur-ing 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 & Eisen-hofer,” 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 high-ly regarded, nationally recog-nized 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 dam-aged by corporate fraud, greed and mismanagement.

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

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

Pettinaro brings law firm to the Riverfront Star Bldg.W

recovery by RiskMetrics Group and has earned a place in The National Law Journal’s Plain-tiffs’ Hot List Hall of Fame. The firm is listed as one of America’s Leading Business Lawyers by Chambers and Partners, reporting that G&E “commanded respect for its representation of institutional investors in shareholder and derivative actions, and in federal securities fraud litiga-tion.”

“we chose the Star Build-ing after an extensive search of the marketplace including North wilmington, Down-town, and surrounding areas,” said Nick Pournader, Chief Operating Officer and CFO of Grant & Eisenhofer. “we are pleased with the decision to move to the Riverfront and look forward to making the

Star Building our new home later this year, “said Pourna-der.

The Pettinaro Company, founded in 1964, is a second generation, family-owned and managed real estate hold-ing company led by Gregory Pettinaro. with in-house con-struction, architectural and real estate departments, the company designs, develops, constructs, leases and man-ages all of its properties.

Headquartered in New-port, Delaware, they also control other office buildings on the Riverfront including the Crescent (Barclays) Build-ing, Gates Building and DCM Building.

Pettinaro also announced that The Shipyard, former-ly known as the “Shipyard Shops” will soon be home to Ubon, a new Thai restau-rant owned by the operators of Jeenwong’s Thai Cuisine which is currently (and will continue to be) operating in the Riverfront Market. n

Star Building

TYSONS CORNER, VA AND COCOLUMBIA, MD — Cas-sidy Turley arranged the three building portfolio sale of Cedar Hill I & III, two class A office buildings totaling 102,632 s/f in Tysons Corner, VA, and Columbia Office, a class A, 137,677 s/f office building in Columbia, MD. Paul Collins, Bill Collins, Drew Flood, Jud Ryan and James Cassidy of Cassidy Turley represented PNC Realty Investors, Inc. who sold the portfolio on be-half of a client. First Potomac Realty Trust acquired the properties.

Including Cedar Hill I & III

Cassidy Turley arranges sale of three office buildings

Cedar Hill I, located at 2222 Gallows Road, and Cedar Hill III, located at 2216 Gallows Road, are 100% leased primar-ily to the GSA through 2020 and 2019 respectively. The office buildings also serve as a training center for the US De-partment of the State - Bureau of Diplomatic Security.

Columbia Office is a multi-tenant office building located at 10320 Little Patuxent Park-way. The building is situated adjacent to the Columbia Mall, just west of Interstate 95, between Baltimore, MD and washington, DC. n

Cedar Hill I

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 pro-vider of superior healthcare quality, care management

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

Liberty Property Trust signs tenant to 48,556 s/f lease

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

John Dettleff, vice presi-dent, Industrial Group, Larry FitzGerald, senior vice presi-dent, 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 Reston-Herndon Business Park,” said Dettleff. “In addition to the USGS lease renewal, Grubb & Ellis and kenwood Manage-ment 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

Grubb & Ellis completes 48,000 s/f lease

HERNDON, VA — New-mark knight Frank has represented MicroPact, Inc., in its relocation and expan-sion 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-

Newmark Knight Frank negotiates 20,845 s/f leaseroPact in the 20,845 s/f lease. MicroPact, the leading in-novator in a new generation of data tracking software, is relocating from Herndon’s 2250 Corporate Park Drive, where it now occupies ap-proximately 14,000 s/f.

“MicroPact has quickly be-come 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 em-ployees. 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

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

Limestone Shopping Center

Creekwood Corporate Center

For more information: Phone (302) 323-9300 Fax (302) 323-495129 East Commons Boulevard, Suite 100, New Castle, Delaware 19720

Operating and Managing over 3 MillionSquare Feet of Industrial and Commercial

Real Estate in the Mid Atlantic Region

• 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. 141interchange in New Castle, Delaware

• 5 parking spaces per 1,000 square feet

• Previously a corporate headquarters facility

• Part of pre-planned suburban office campus

91 0 Basin RoadCreekwood Corporate Center

Class A Office Space AvailableFrom 1 ,61 0 Sq. Ft. to 2,278 Sq. Ft.

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

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

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

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

Limestone Shopping Center43,889 Square Feet of Retail Space

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• Phase I of a III Phase Development • 50,266 SF Available – New Construction • Includes 11,747 SF of �nished o�ce 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

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DelMarva real eState JoUrnal

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oday’s buzz-words are “Cash Flow”, “Income in Place”, “Lease roll-

over” . Vir-t u a l l y a l l lenders have returned to the market. Life Insur-ance Compa-nies, Banks, C M B S ( n o longer called Conduits) and many public and private Funds are provid-ing capital to real estate, post recession. This is a clear sign that we bottomed out in 2009-10 and the future is bright. we are no longer focused on fi re sales, double dips or fall-ing prices.

2011 and 2012 will start the momentum of capital flow-ing 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 fl ows 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 inves-tors, all seeking higher returns on their investments. with no-where 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 stan-dards must be adhered to and there should be consideration given to the exit strategy at loan maturity. Life Insurance Companies have tradition-ally lent on lower leveraged, high quality properties, in primary markets, with high quality Borrowers. Although they did not escape the down-turn 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

By Nancy Ferrell, NorthMarq

The future of debt –How quickly we are back!T preferred property type). Rates

from Life Companies are very competitive, and should be at that leverage and underwrit-ten debt coverage.

Banks were in disarray. Thanks to government help, they are re-defi ning their roles and looking for the best Bor-rowers, long relationships and requiring recourse. They are still the preferred lenders when looking for fl exible terms, low rates and conservative un-derwriting, if you can stomach the recourse. They are the only name in town when looking for construction fi nancing.

CMBS will be a player in this recovery. It didn’t take long for these intelligent wall Street investment bankers to fi nd their new niche. They are backed by the largest fi nancial institutions that repeatedly come up with creative ways to compete, therefore garner-ing 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

Nancy Ferrell

continued on page 14A

DelMarVa Real estate JouRnal

Washington, D.C. spotlight

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

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 sell-er, 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, Ex-ecutive Managing Director of Cassidy Turley. “It is cur-rently 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 be-tween 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

Also organizes $172 million for 25 Massachusetts Ave.

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

W

abundant retail and restau-rant options, the International Spy Museum, the Nation-al 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 Far-ragut North (red line) Metro Stations.

on behalf of Republic Proper-ties 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 classi-cal architectural design, ex-pansive views, and close prox-imity to the U.S. Capitol and Union Station, 25 Massachu-setts Avenue has consistently attracted some of the most prominent tenants in wash-ington, DC. Current tenants include the American Medical Association, American College of Physicians, National Cable and Telecommunications As-sociation, 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 leas-ing 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

1331 L Street, NW 25 Massachusetts Avenue

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 set-ting with expansive views of the District. The two-story atrium lobby is designed with Italian marble floors, maple-paneled walls, and stainless steel accents. It also features a rooftop terrace, a first-class fit-ness 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 tro-phy office building centrally located in the Capitol Hill submarket of washington, DC. David webb, John Cam-panella, and Jamie Butler of Cassidy Turley structured the two-tiered debt transaction

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

Under the newest agree-ment, 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 Pro-fessional, as well as CoStar COMPS Professional and Co-Star Tenant, three industry-leading 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 subscrip-tion sites, with full access to CoStar’s complete U.S. data set for CoStar Property and CoStar COMPS. n

Jones Lang LaSalle signsenterprise agreement

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 pos-sible. 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 busi-ness 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 compa-nies. There is no way of know-ing what will happen over the next few years, but there is a good likelihood that the agen-cies will survive in some form, whether privatized or with a form of government guaran-tee. 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 busi-ness.

All lender types prefer mul-tifamily loans due to demo-graphics, economics, and sta-bility. There is tremendous competition by all lenders for the lower leveraged deals, as previously mentioned. Fannie Mae and Freddie Mac are the

continued from page 13A 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 up-graded their student housing programs and senior housing programs in order to expand their market share of rental housing. FHA is an alterna-tive, 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 lon-gevity 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 manag-ing director of the Balti-more Regional Office of NorthMarq. n

The future of debt – How quickly we are back!

MAREjournal.com Mid AtlanticRealEstateJournal—April22-May12,2011—15A

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Back Cover A — April 22 - May 12, 2011 — Mid Atlantic Real Estate Journal MAREjournal.com

www.LandmarkJCM.com Serving clients inHeadquarters Phone

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Section B, 28 pages

LINDENWOLD, NJ — Mar-cus & Millichap Real Estate Investment Services has a n n o u n c e d the sale of Walgreens , a 14,485 s/f single-tenant n e t - l e a s e d p r o p e r t y . T h e a s s e t commanded a sale price o f $ 6 . 8 3 5 million or a 6 . 7 8 % c a p rate.

Brad Na-thanson, a se-nior director

Section B of the Mid Atlantic Real Estate Journal

Shopping CenterSMid Atlantic Real estate JouRnal

ALSO INSIDE:

HI-LIGHTS

MAREjournal.com

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.

Starting in the early sum-mer of 2011, the Pine Brook Plaza will undergo a com-plete exterior renovation and face lift.See page 10-11B.

Stocker of KW Commercial brokers $2.36m shopping ctr.

The Azarian Group improves a well performing asset

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

April 22 - mAy 12, 2011

EANECK, NJ — Bob Horvath, Todd Trem-blay and Mike Lombar-

di 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,”

Located at 665 American Legion Dr. in Teaneck, NJ

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

T

in Marcus & Millichap’s Phila-delphia 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 com-muter line that carries over 38,000 passengers a day and is within two blocks to the Ken-nedy Memorial Hospital, with over 4,000 employees and 900 physicians.

The site offers close prox-imity 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 rein-vesting back into their existing stores.

Given the increased de-mand 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

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

Marcus & Millichap sells 14,485 s/f building totalling $6.835 million

Stop & Shop in Teaneck, NJ

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

The lease contains four five-year renewal options and rental increases every five years. Horvath, Tremblay & Lombardi represented the sellers FW Te-aneck LLC and also procured the buyer H&R LLC. n

Bob Horvath Todd Tremblay Mike Lombardisaid Horvath. “The company recently spent $1 million on

in-store improvements.”The property is located at 665

Brad Nathanson

Michael Fasano

Shoppes at Meadow CreekWestminster, MD

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

SORA Holdings, LLCDowntown Revitalization, College Campus & Hospitality Development

Sewell, NJ 08080 - 856.589.8371 • Towson, MD 21204 - 410.832.0065 Email: Greg Filipek at [email protected] ● www.soraholdings.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

MAREjournal.com Mid AtlanticReal Estate Journal — Shopping Centers — April 22 - May 12, 2011 —1B

Few investment brokers possess the expertise to truly understand a property's operational and fi nancial 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

Superior Service • Unrivaled Exposure Maximum Value • Exceeding Expectations

BRAD NATHANSON | SENIOR DIRECTOR101 West Elm Street Suite 600 | Conshohocken, PA 19428 | (215) 531-7000 ext. 7046

www.nathansonretail.com | [email protected]

Exeter Commons, Reading, PA491,000 square feet

SOLD

Lakeview Shopping CentreRoyersford, PA

190,000 square feetSOLD

Towne Square Plaza Reading, PA


Bensalem CrossingBensalem, PA


Eastgate Shopping CenterMemphis, TN


Germantown Shopping CenterMemphis, TN


Windsor CrossingEast Windsor, NJ


2B — April 22 - May 12, 2011 — Shopping Centers — Mid Atlantic Real Estate Journal MAREjournal.com

Shopping CenterS

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

An inside perspective on the collapse of land values I t has been a wild ride

overthecourseofthepastdecadeasa landand re-

tailbrokerontheDelmarvaPeninsula.Onanationalba-sis, we haveall heard thehorrorstoriesabout placeslike Florida,Arizona, Ne-vada and California but veryrarely do you hear about theruralmarketssuchasSouthernDelaware.TheLasVegas’andSouth Florida’s have alwaysbeen thriving metropolitanmarkets with great climatesandasaresult,willalwaysbeattractiveplacestolocate.Ru-ralmarketssuchasDelawareare commonly referred to as“tertiary”marketsanddonotalwaysfollownationaltrends.

The State of Delaware isseparated into three counties,NewCastle,KentandSussexCounties with a total popula-tion of roughly 900,000. Geo-graphically,Delawareislocatedwithin200milesofnearlytwo-thirds of the U.S. populationandisalsoaNOsalestaxState.Delawareisalsothecorporatehometomorethan50%ofthe

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Fortune 500 companies dueto a favorable corporate taxstructure.SussexCounty,DE,the southern-most county ofthethree,hasoneofthelowestpropertytaxstructuresinthecountryandishometobeauti-fulresortareassuchasLewes,RehobothBeachandBethanyBeach.Asaresultoftheseat-tributes,SouthernDelawareinparticular has developed intoone the fastest growingareasin the country and has beenrecognized as one of the bestplacestoliveandretire.

Prior to the 2008 nationalbankingcollapse,SussexCoun-ty, DE was issuing roughly3,000 new building permitsperyear.In2005&2006,for-tunesweremadeovernightbydeveloperssellingfullyentitledplans which were essentiallyraw land with approvals. Im-proved lot values on averagewere ranging in price from$100K-$200K depending onthe location and it was com-monforbuilderstoexperienceabsorption rates of 3-4 unitspermonthpercommunity.Asdemand continued, everyonebecameadeveloper!Therewasaback-loginthelocalplanningdepartment of 18-24 monthsfor plan approvals due to the

excess supply of applications.This should have been a tell-tale sign of the bubble begin-ningtoburst.

In2010,therewereroughly1,200 new building permitsissued in Sussex County. TheCounty now has an excesssupplyof roughly25,000 lots.In Kent County, we are esti-mating an additional 25,000lots available or recorded. Inthemeantime,manyplansareexpiringwithlocaljurisdictionsdueto“sun-setting”provisions.Rough estimates are that wehaveaminimum15yearpipe-lineofsupplyifnonewlotsareintroducedtothemarket.

What will 2011 bring? Myexperienceasabrokerhasbeeninteresting over the past 4-6months.Iamnolongerwork-ing with many developers orbuilders inhopesofdisposingof record plans. TheYear of2010seemedtobetheyearoftheforeclosureandIfeelthatit will continue significantlythrough 2011 due to the ma-turity of 3-5 year commercialloansoriginatedin2005-2007.Withinthepast4-6months,Ihavebeenapproachedbysev-eral local and national banksrequesting valuations for un-

continued on page 6B

Casey H. Kenton


SEEKING RETAIL PROPERTIES IN THE NORTHEAST CORRIDOR

Please Contact Daniel Katz 212.710.9362

[email protected]

Burwood Village CenterBurwood Village Center Glen Burnie, MDGlen Burnie, MD

Acquired September 2009Acquired September 2009

Tops PlazaTops Plaza Canandaigua, NYCanandaigua, NY

Acquired March 2010Acquired March 2010

$20.025M ACQUISITION

CLOSED

FEB 11, 2011

Derry Meadows ShoppesDerry Meadows Shoppes Derry, NHDerry, NH

Stop & Shop PlazaStop & Shop Plaza Enfield, CTEnfield, CT

Acquired March 2009Acquired March 2009

Southampton Shopping CenterSouthampton Shopping Center Southampton, PASouthampton, PA

Acquired July 2010Acquired July 2010

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

Shopping CenterS

a section of the

Mid Atlantic Real Estate Journal

P.O. Box 26, Accord, MA 02018781-871-5298 • 800-584-1062

fax 781-871-5299MAREjournal.com

Associate PublisherElaine Fanning

[email protected]

Section EditorKaren Vachon

[email protected]

Shopping CentersReal Estate Journal

GREAT COMMERCIAL PROPERTY OFFERINGS

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i n v e s t o r sshould takestock of twofundamentalpoints: theworstisover,and Capitalmarketshavei m p r o v e dfaster thanexpected. Higher returns re-quiretheappropriatedegreeofrisk-taking, and approaching2011 with the same tenor ofwarinesspresentayearagowilllikelyleadtolostopportunities.Manyinvestorsfailedtopullthe

triggeroverthepast12months,expectinganRTC-style,deeplydiscounted property marketor prolonged deterioration oftheU.S.economy.Theoddsofeitheroccurrencehavefurtherdiminished. The low-hangingfruitmaybegone,butattrac-tive investment opportunitiesexistthatmaynotbeavailableayearfromnow.Thatisnottosayinvestorsshouldthrowoutcaution.Economicandmarketrisks remain and must be as-sessed;however,thisyear’sim-proveddatapointsandlenders’ongoingstrategytopreventfiresalesonqualityassetshighlighttheneed to resetexpectationsandadjuststrategies.

Currentconditionsforretailproperties vary sharply bylocation.Theperformanceandvalueofeveryshoppingcenterliesalongaspectrumandisafunctionof geography inmostcases.Infillshoppingcenters,particularlythoseinsupply-con-strainedareasandproximatetohigh population densities, re-mainaworldapartfromnewlybuilt power centers conceivedjustfootstepsfrombustedhous-ingprojects.Atthesametime,fortress malls continue to outperform, as retailers remainreluctant to vacate space inpremium properties, thoughmanytraditionalregionalmallsnow struggle with significantvacancyissuesduetoclosuresanddepartmentstoreconsolida-tionsinrecentyears.Weexpectamoderatedeclineinvacancytomaterializeinthelatterhalfof2011,withmoresubstantialimprovement anticipated in2012. In the near term, coreneighborhood/community cen-ters and strip centers in infillareaswillretaintheirtop-per-former ranks as measured byoccupancy,rentsand,therefore,values.Specialtycenters,classBmallsandnewlybuiltpowercenterswill continue to sufferfrom cautious retailers and ahesitantconsumer.

Retail investment sales in-creased notably over the pastyear.Thedrop-offandensuingimprovementinsalescanbeat-

By Mark Taylor, Marcus & Millichap

The worst is over, Capital markets have improvedA

Mark Taylor

continued on page 7B

MAREjournal.com Mid AtlanticReal Estate Journal — Shopping Centers — April 22 - May 12, 2011 —�B

New Acquisition!

ALABAMAMidway Plaza - Opelika 205,000

CONNECTICUTMeriden Parkade - Meriden 225,000New Brite Plaza - New Britain 165,000

MAINEAirport Mall - Bangor 230,000Capitol Shopping Center - Augusta 200,000JFK Plaza - Waterville 175,000Wells Plaza - Wells 90,000

MASSACHUSETTS Danvers Crossing - Danvers 175,000Foxborough Plaza - Foxborough 120,000Middleborough Crossing - 130,000Middleborough

Springfield Plaza - Springfield 510,000

NEW HAMPSHIRE Hood Commons - Derry 210,000Hooksett Village Shops - Hooksett 260,000

NEW YORKColonie Plaza - Albany 150,000Columbia Plaza - Rensselaer 135,000Irondequoit Plaza - Rochester 215,000Lake Shore Plaza - 95,000Lake Ronkonkoma

Malone Plaza - Malone 180,000Saranac Lake Plaza - Saranac Lake 70,000St. Lawrence Plaza - Massena 165,000Troy Plaza - Troy 130,000Walden Village - Cheektowaga 210,000

OHIO Boardman Plaza - Youngstown 625,000Fairlawn Town Centre - Fairlawn 450,000Knox Village Square - 210,000 Mount Vernon

PENNSYLVANIABerkshire Square - Wyomissing 235,000Columbia Mall - Bloomsburg 530,000Dauphin Plaza - Harrisburg 220,000Devon Village - Devon 90,000East End Centre - Wilkes-Barre 310,000Festival at Exton - Exton 155,000Franklin Center - Chambersburg 175,000Mayfair Shopping Center - 115,000Philadelphia

Plaza 15 - Lewisburg 120,000Shamokin Plaza - Shamokin 100,000Valmont Plaza - Hazleton 620,000West Side Mall - Edwardsville 460,000

RHODE ISLANDDiamond Hill Plaza - Woonsocket 390,000

TURNING VISION INTO VALUEACQUISITION RENOVATION DEVELOPMENT

AcquisitionsJoseph R. Staugaard, III, [email protected]

LeasingCharter Realty & Development Corp.203-227-2922chartweb.com

Corporate Headquarters940 Haverford RoadBryn Mawr, PA 19010610-552-6000wprealty.com

SF

NEW ACQUISITION!

MAYFAIR SHOPPING CENTER, PHILADELPHIA, PA115,000 square foot community shopping center anchored by

Shop ‘n Bag, Dollar Tree and Fashion Bug

16,000 SF of available retail space


Shopping CenterS

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 [email protected]

CB Richard Ellis | 600 Grant Street | Suite 600 | Pittsburgh, PA 15219

CB RICHARD ELLISPREMIER 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.

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•

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•

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

Retail Centers, Landlords and Developments

Our Real Estate Team Specializes In...

t Apartment Complexest Condominiumst Industrial Buildingst Of ce Buildingst Shopping Centers

ROBERT D. ODELL, [email protected] (direct)866.282.9742 (toll free)www.odellstudner.com

ACKETTSTOWN,NJ—AndrewStew-art and Lisa Mc-

Mahon of David CronheimMortgageCorporationhavesecured financing of $18.9million for Mansfield Com-mons,a271,979s/fshoppingcenter in Warren County.Cronheim acts as servicerand correspondent for the11-yearfinancing.

The subject property isanchored by a 123,519 s/fWal-Mart and a 88,830 s/fKohl’s department store.The property is located onRte.57.n

For 271,979 s/f Mansfield Commons

Cronheim arranges $18.9m financing for retail centerH

derwriting and dispositionstrategies for bank owned(OREO)property.Asabroker,Ihavefinallyconvincedseveralbanksthattheirrecordedplatplan or approved/unimproved“farm” has reverted back tofarmlandprices.Thereissim-ply no value for recorded siteplans without infrastructure.Wearenowsellingfarmsthatwere sold for $40K-$50K peracrefordevelopmentpurposesbacktotheoriginalfarmerfor$5-$6Kperacre.NotbadtobeafarmerinDelaware!

Onapositivenote,Delawarecontinues to be a great placetoresideandnationalandre-gionalhomebuilder’s suchasRyanHomesandNVRarestillcommittedtothearea.Ontheretailfront,wearestillseeingnationalfranchiseesenterthemarket and several nationalbig box users are starting torevisitoldplans.IstillfeelthatthefutureispromisingfortheDelmarvaPeninsula.

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

continued from page 2B

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

Mansfield Commons

RANDALLSTOWN. MD —Centro Properties Group an-nounceda170,000s/fleasehasbeenexecutedwithWalmartatLibertyPlaza.CentroProper-tiesGroupistheownerofLib-ertyPlazaandwasrepresentedby Greg Levine with CentroPropertiesGroup.

Michael Carroll, CEO forCentroPropertiesGroupsaid,“WearepleasedtorenovateLib-ertyPlazaandbringWalmartintothecenter.”n

Centro Properties leases 170,000 s/f to Walmart


Shopping CenterS

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tributedmostlytomulti-tenantdeals,whichremainlimitedbuthavemovedupfromlastyear’sfloor.Throughmostofthedown-turn,financingremainedavail-able for strong single-tenantdeals,andinvestorsfavoredtheassetclassduetoitsperceivedsafety,proppingupsalesinthesegment.Capratesforsingle-tenantpropertieshavedeclinedforcredit-tenantdeals,thoughthey remain 100 basis pointshigher,onaverage,thanatthemarket’speak.

Multi-tenant cap rateshaveundergone more correction,withtheaverageup150basispoints. Sales velocity shouldimprovemodestlythroughthefirst quarter of 2011, with astrong pick-up in momentumemerging in the second halfas financing eases and moredistressed properties come tomarket.Bifurcationbyqualityand location will continue todefine the retail investmentlandscape,with cap rate com-pressionfortop-tierpropertiesandflattorisingcapratesforlower-tierassets.Single-tenantnet-leasepropertieswithrela-tively healthy credit tenantswill continue to top investors’preferenceasasafehaveninalow-yieldenvironment.

Retail property sales in-creased during the first ninemonthsof2010whencomparedtothesameperiodin2009.Dol-larvolumeclimbed50%to$33billion,whiletransactionveloc-ityexhibitedamoremodestriseof15.4%.Todate in2010, theaverage price has declined byslightlymorethan5%to$128psf.Overthesameperiod,theaveragecapratehasincreased20basispointsto8.4%,thoughcapratesrangefromlessthan7percentforbest-in-classprop-erties to 10% or more for dis-tresseddeals.PremiermarketssuchasLosAngeles,NewYorkCity, Chicago and Dallas/FortWorthwerethemostactiveinthe first nine months of thisyear, with Central and SouthFloridaalsoshowingapick-upinretailinvestmentactivity.

Mark Taylor is VP invest-ments at Marcus & Millic-hap. n

continued from page �B

By Mark Taylor, Marcus & Millichap

S:\Salesmkt\Advertising\Generic Ads\MARE Journal 8W x 8.25H.doc

www.ewma.com

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Reduce, Recycle, Reuse

AZARETH,PA—KWC o m m e r c i a l - T h eJames Balliet Com-

mercial Group recently soldthe16,800s/fshoppingcenterknown as Rte. 191 Plaza lo-

catedat822NazarethPike.Melanie Stocker, a 10 year

commercialrealestateveteranrepresented both the buyer,191PlazaRealty,LLCandtheseller,TonyandEmilyRealty,LLC in the transaction. Thesalepricewas$2.6million.

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

Stocker of KW Commercial brokers $2.36m shopping ctr.N

Rte. 191 Plaza191 Plaza is a convenience

strip centeranchoredbyCar-QuestAuto Parts and SnapFitness.Additional tenantsinclude Pino’s II Pizzeria andRestaurant,CurvesforWomen,Red Headz Hair Salon, Per-sonalandmore.n


Shopping CenterS

nacrispFridaymorn-ing in March the in-tersection of Rte. 1 &

Fox St. in Philadelphia sawits usual hustle and bustleof countless cars, trucks andschoolbusesasthedaybegan.Theonlynoticeabledifferencethat morning was the pecu-liar absence of many regularneighborhoodshoppersatthegasstationconveniencestoreswhich straddle the highway.Unfortunatelyforfartoolongtinystoressuchasthesefilledwith candy, soda, cigarettesandtheoccasionalloafofwhitebreadhavebeenoneoftheonlyavailable grocery options to

away though and could befound just one block south atFoxSt.&RobertsAve.astheyjoinedhundredsoftheirneigh-borswhowerepackedunderalargetentforthegroundbreak-ingceremonyofBakersSquare,a new 220,000 s/f communityshoppingcenteranchoredbya71,000s/fShopRite.

AtthepodiumstoodMichaelGrasso,presidentofMetroDe-velopment Co. which recentlycelebratedits30yearanniver-sary as the region’s premierereal estate development firm.Grasso,whospoketothecrowdoverthesoundofbulldozers,isnostrangertohostingground-breakingceremonies.UnderhisdirectionMetrohassuccessfullydevelopedover15millions/fofretail,office,multi-family,hoteland industrial space acrossPhiladelphia and its suburbsand has two other shoppingcenters currently in theplan-ningphase.GrassosharedthestagethatmorningwithseveralotherspeakersincludingMayorMichaelNutter,StateSenatorVincent Hughes, CouncilmanCurtisJones,StateRepJewellWilliams, Gregory Bianchiof US Realty, Jeff Brown ofBrown’s ShopRite, WendallYoungIVofUFCWLocal1776andCindyBass,SeniorPolicyAdvisertoCongressmanChakaFattah.

BakersSquarewillbelocatedonthesitewhichwasoncetheformercorporateheadquartersandmajorproductionfacilityofthefamedTastyBakingCo.Thisprojectwillencompassover30acressituatedalongWestHunt-ingParkAve.aswellasFoxSt.andRobertsAve.whichispartof thePhiladelphiaCityPlan-ning Commissions Redevelop-ment Initiative. This Initia-tivewasdesignedtorevitalizeimpoverishedareaswithinthecitybyredevelopingantiquatedproperties,beautifyingstreets,establishing new businessesandcreatingjobs.n

Joseph Barbato Associates is structural engineer

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

Bakers Squarelocal residentsof thisdenselypopulatedsectionofthecity.

These regulars weren’t far

JOSEPH BARBATO ASSOCIATES, LLC Consulting Structural Engineers

For over 25 years providingcomprehensivestructural engineering services

• Commercial • Municipal • Educational • Recreational • Fall Hazard Solutions • Residential • Industrial • Specialty Systems • Medical • Specialty Investigations

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

Phone: 610-558-6050 www.jbarbato.com

Joseph Barbato Associates, LLC

N

Not Available A

CB

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


Shopping CenterS

FRANCONIA,VA—Regen-cyCentershasleasedrestau-rantspacetotwonewretailersat Festival at ManchesterLakes.

Dunkin’ Donuts has leased1,800s/fof restaurantspace,and Genghis Grill, a build-your-own bowl, fast casual,Asian stir-fry concept, hasleased4,443s/f,bringingthecenter to 95 percent leased.BothrestaurantsplantoopenthisSpring.n

RegencyCenters leases 6,2�3 s/f in VA

Festival at Manchester Lakes

ARAMUS,NJ—WelcoRealty signed a leaserepresenting Jo-Ann

Fabric and Craft Stores for30,000s/fintheformerCompUSA space on Rte. 17. ThisstorewillbeoneofthelargestformatstoresforJo-AnnFabricandCraftStores,itsfirststoreintheParamusmarket.Jo-AnnFabricandCraftStoresisalsoexpectedtodrawfromthemet-ropolitanNewYorkareaaswellas New Jersey because of itscloseproximitytoNewYork.

Welco signed a lease withModell’s Sporting Goods fortheirnewsmallerconceptstore.The first one that they haveopened in New Jersey at theInterstate Shopping Center,Rte.17,Ramsey.Thisstoreisapproximately8,551s/f,whichisapproximatelyhalf thesizeoftheirstandardstore.n

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

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

HARRISBURG, PA — MoMo’sBBQ&Grillewillopena restaurant in 5,586 s/f ofspace it hasleasedat307Market St.,Harrisburg.

J a s o nSourbeer ofNAICIRrep-resentedbothMoMo’sandthelandlord,MSPInvestments,LLC.n

Sourbeer of NAI CIR brokers �,�86 s/f space

Jason Sourbeer

SEEKING SITES IN METRONEW YORK & NEW JERSEY

ONE OF AMERICAS PREMIER THEATER CHAIN IS AGGRESSIVELY SEEKING

LOCATIONS IN THE METRO NEW YORK & NEW JERSEY AREA.

SIZE: 30,000 - 80,000 S.F.CEILING HEIGHT: MINIMUM OF 36 FEET

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2009


the pine Brook plaza

hePineBrookPlazaisan 8,000 s/f highwaystrip shopping center

located on Route 46 West inMontville, New Jersey. ThePineBrookPlazaalsohasrearaccesstoBloomfieldAvenue,amajorlocalthoroughfare,andamajorU-turn,jughandleatNewRoad.

Starting in the early sum-mer of 2011, the Pine BrookPlazawillundergoacompleteexterior renovation and facelift.Workontheshoppingcen-terwillinclude:newlighting,facadere-facingandarchitec-turaltowersontheNorthernand Southern corners of theproperty, new shopping cen-terandtenantsignagewhichwillalsoincludeanewpylonsign.Additionalsiteworkwillinclude:newparkinglotsur-facing,parkinglotrepainting,paverandconcretesidewalks,

Project teamArchitect: .......................................... IS&L Architecture StudioEngineer: ............................................. McGowan Engineering

8,000 s/f highway strip shopping center in Montville, NJ

The Azarian Group improves a well performing asset

TThe Pine Brook Plaza

newcentralizeddumpsteren-closure,andnewlighting.

Muchoftheproposedreno-vation will incorporate andbe part of the Township ofMontville’s new streetscapeand“MasterPlan.”Forexam-ple,newshoppingcenterpolelightingwillmatchtheMasterPlan lighting for BloomfieldAvenue.Anew sidewalk willalsobeinstalledonBloomfieldAvenuetofacilitatepedestriantraffictothePineBrookPlazawhichisalsopartoftheMas-ter Plan for the Township ofMontville.

The Pine Brook Plaza hashistorically been 100% occu-pied,withverylittleturnover,since The Azarian Group,L.L.C. took ownership of theproperty in 1978. Today, thepropertyiscomprisedofsevenretailunitsrangingfrom900s/fto2,115s/f.Thetenantsin-

clude:DonutDugout,Blimpie,Jun’s Studio, Number OneChinese Restaurant, D&DLiquors, Rainbow Nails andLaFogtaMexicanRestaurant.Seeking no financial gainfrom the renovation throughincreased square footage oradditional revenue streams,TheAzarianGroup,ispurelylooking to dramatically im-provetheappearanceandcurbappeal of a well performingasset.

Theproposedproject isbe-ing spearheaded by TheAz-arian Group, which owns /manages 19 shopping cen-ters and commercial proper-ties throughout New Jerseyand NewYork totaling over1,000,000 square feet withmore than 275 tenants. TheAzarianGroupmostrecentlycompleteda$3,000,000reno-vation and expansion of theAllendale Town Center, andplanstobegintwoothermajorrenovationsin2011includingtheRaritanInternationalCen-terinSayreville,NewJerseyand The Hyde Park Mall inHydePark,NewYork.n

FeatureYour

Project~ Developments ~~ Construction ~~ Renovations ~

in theMid Atlantic

Real Estate Journal

10B — April 23 - May 13, 2010 — Project of the Month — Mid Atlantic Real Estate Journal

MAREjournal.comMAREjournal.com

Mid Atlantic Real Estate Journal — Project of the Month — April 23 - May 13, 2010 — 11B

Offering enhanced hospitality services for the visitors of Philadelphia

ARC Properties Inc. announces the planning

of Franklin Place in Center City Philadelphia

D irectly across from the National Constitution Center and the Liberty

Bell at the base of the Ben

Franklin Bridge in Philadel-phia’s Old City neighborhood

stands Franklin Place. The

Project is an adaptive re-use

and redevelopment of 401 Race

St. the former Pincus Broth-ers Maxwell Building. This

mixed-use Project includes a

150 room hotel, 50,000 s/f of

retail and restaurant space,

65 residential homes and a

200-space parking facility.

Franklin Place has been care-fully designed with surround-ing structures in mind while

simultaneously serving as a

landmark entryway into the

City of Philadelphia. Franklin Place comple-ments nearby landmarks

that Philadelphia is famous

for such as the historic sites

of Independence Mall, the

National Constitution Center,

and the neighborhood of Old

City. The mixed-use Project

will strengthen tourism in

the area by offering enhanced

hospitality services to visitors

of Philadelphia, including

hotel rooms, restaurants, en-tertainment venues, and much

needed parking. Franklin

Place’s premium location and

fi ve-star amenities also serve

Philadelphia’s many business

travelers.The Franklin Place rede-velopment centers on the

well-known Pincus Brothers

Maxwell Building and the

adjacent land comprising the

entire north block of 400 Race

St. The higher levels of Frank-lin Place offer breathtaking

views – ranging from the Lib-erty Bell to the Philadelphia

City Skyline to the Delaware

River. The Project is anchored

by a 150 all-suite Hotel built

on top of the existing 3-story

steel structure on the 5th Street

side. The existing building will

house 36,000 s/f of retail on the

fi rst fl oor. The second and third

fl oors include a combination of

parking spaces and approxi-mately 60,000 s/f of offi ce or

live/work space. The existing building is

comprised of two main com-ponents. The 5th street side is

constructed of concrete, and

sits adjacent to the steel build-ing on 4th Street. The existing

3-story steel building once

contained an additional 9-story

candy factory before its con-version to the 3-story Pincus

Brothers Maxwell Building.

The redevelopment plan calls

for the Hotel to be built on top

of the steel building on the 5th

street side where the candy

tower once stood. The Hotel

has the structural capacity for

vertical development, which

will be further separated by a

transition level. The inclusion of a carefully

designed transition fl oor yields

several design and develop-ment options. The transition

fl oor’s design does not require

column lines of the new vertical

component to align with those

of the existing facility. This

feature allows for additional

rooftop views overlooking the

City as well as staggered or

cantilevered structural design

alternatives. The steel building

will house ground fl oor retail

with parking and residential

homes on the 2nd and 3rd fl oors

SHOPPING CENTERS PROJECT OF THE MONTH

and additional parking and

storage on the basement level.

The Project will embody the

spirit of sustainable design

using modern methods for

its design, construction, and

operation.A new residential tower

featuring approximately 55

one-and two-bedroom homes

will be built on the 4th Street

side in Phase II of the Proj-ect. The residential tower

will share several of the key

amenities with the rest of

the Project including, several

roof top gardens around an in

ground pool, green roofs, fi re

pits, running/walking tracks

and a roof top restaurant and

catering facility overlooking

the dynamic views of the City

of Philadelphia.ARC Properties, Inc. was

formed 25 years ago by Robert

J. Ambrosi and Marc Perel and

has been responsible for the

acquisition and development of

more than 200 properties with

an aggregate value in excess of

$2 billion. ■

PROJECT AND LEASING MANAGER

DESIGN ARCHITECT

GENERAL CONTRACTOR

ARCHITECTS OF RECORD

SITE AND CIVIL ENGINEER

PROJECT TEAMOwner/Developer: ........................................................ARC Properties

General Contractor: ................................................... Dale Corporation

Site & Civil Engineer: ...........................................Bohler Engineering

Structural Engineer: ....................................... O’Donnell & Naccarato

Design Architect: .......................................................... DAS Architects

Architect of Record: ............................................... JKR Partners, LLC

Project Manager: ....................................................... FC Development

Leasing Manager: ..................................................... FC Development

Leasing Consultant .......................................................... Andi Pesacov

Civil EngineeringLandscape ArchitectureProject ManagementEnvironmental Consulting

SurveyingB o h l e r E n g i n e e r i n g . c o m

BOHLER ENGINEERING is proud to be a part of the

ARC PROPERTIES team for FRANKLIN PLACE.

Philadelphia PA I Chalfont PA I Center Valley PA I Warren NJ I Bowie MD I Towson MD I Sterling VA

Warrenton VA I Southborough MA I Albany NY I Ronkonkoma NY I Ft. Lauderdale FL I Tampa FL

Entertainment Healthcare HospitalityMixed UseResidentialRetailSenior Living

For the past 26 years, JKR Partners has maintained its commitment of building continuing relationships through quality design and responsive service.

1128 WALNUT STREET SUITE 200PHILADELPHIA PA 19107215.928.9331JKRPARTNERS.COM

A full-service construction management, general

contracting and development/consulting firm,

specifically focused on mixed-use, multi-family

housing, long-term care facilities, hotels and hospitality

facilities, educational facilities and corporate officesthroughout the Mid-Atlantic region.

Find out what DALE can do for you.

Contact Greg Hallquist at 215-690-0171for more information callElaine Fanning

[email protected]

800-584-1062 x 212


The Pine Brook Plaza

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

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

The Village at Odenton Station: Anne ArundelCounty’s fi rst transit-oriented, mixed-use developmentO denton Station, LLC, an

affi liate of The Dolben Company, is developing

The Village at Odenton Station, a mixed-use development consist-ing of 57,000 s/f of retail and 235 apartment homes in Odenton, MD. Founded in 1929, The Dolben Company has extensive experi-ence in the planning, developing, construction and management of large mixed-use projects, and has been investing in real estate in the Baltimore-Washington met-ropolitan area since 1982.

Odenton is a planned urban cen-ter 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 fi rst 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 offi ce, retail, residential and hotel space, connected by the new Town Cen-ter Boulevard that will terminate at the Odenton MARC commuter rail station.

Located opposite the MARC station, and with excellent ac-cessibility 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,

SHOPPING CENTERS PROJECT OF THE MONTHCIVIL ENGINEER

RETAIL LEASING AGENT GENERAL CONTRACTOR

ACQUISITION, DEVELOPMENT & FINANCING ATTORNEY

PROJECT TEAMOwner: ...................................................................Odenton Station, LLCDeveloper: ......................................................The Dolben Company, IncArchitect: ...........................................................Daniel Ball & Associates Civil Engineer: ............................................................Boyd & DowgialloStructural Engineer: ..........................................Skarda & Associates, IncGeotechnical Consulting: .............................. Hillis-Carnes EngineeringExcavator/Demo/Underground Utilities: ....................... CJ Miller, LLCLandscape Architect: ..........................................................Hawk Design Roofi ng/Exterior MetalWork: ...RCS Construction/Royal Gutter ServiceGeneral Contractor: .........................Lend Lease (US) Construction, Inc.Acquisition, Development &Financing Attorney: ...Carney, Kelehan, Bresler, Bennett & Scherr, LLC Retail Leasing Agent: ...................Metropolitan Management Company

retail stores. Each of these build-ings has apartment homes on the upper fl oors 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 fl oor 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 lim-ited access parking is managed in a combination of under ground and above ground garages in ad-dition to the surface parking lots. Retail parking is managed via surface parking, street parking, and parking during the evening

hours at the commuter rail lot across the street.

The retail levels at The Village at Odenton Station have been de-signed for fl exible subdivision into small or large bays, with store sizes from 900 to 9,000 s/f. Sup-ported 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, fi tness facility, pharmacy, business services, deli, banking and other fi nancial ser-vices. 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. ■

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

(BRAC) initiative. Relocating or-ganizations include the Defense Information Systems Agency (DISA), Defense Media Publica-tions, and The Adjudication and Offi ce of Hearing and Appeals Offi ces. Approximately 12,000 BRAC-related positions will be in place by October 2011, with salaries ranging from $70,000 to

$100,000+. Government offi cials and business leaders have stated that the region will undergo a rapid transformation, calling it the Infomatics Corridor, where high-level government and tech fi rms 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-ori-ented 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 cor-ners 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-be-built town home condominiums (currently a Public Works De-partment site), and to the south by the Odenton Station MARC commuter rail. Scheduled im-provements 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 fi rst fl oor

EXCAVATOR/DEMO/UNDERGROUND UTILITIESROOFING/EXTERIOR METALWORK

Serving the acquisition, financingand development community

www.carneykelehan.com

10715 Charter Drive, Suite 200Columbia, MD 21044

410-740-4600

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

888 Bestgate Road, Suite 316Annapolis, MD 21401

410-573-2001Fax: 410-573-1171

212 West Main Street, Suite 102 Salisbury, MD 21801

410-860-1888 Fax: 410-860-1109

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

Congratulations to The Dolben Company andThe Village at Odenton StationforProject of the Month!

www.lendlease.com

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-oriented-development. 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.

FOR MORE INFORMATION CONTACT:Patricia Palumbo

Director of Leasing & Marketing(410) 902-0290

EMAIL:[email protected] Management Company

11299 Owings Mills Boulevard, Suite 200Owings Mills, Maryland 21117

www.BaltimoreShoppingCenters.com

7678 Quarterfield Road, Suite 201Glen Burne, Maryland 21061

P: 410-863-1234 F: 410-863-1235www.bndpa.com

Proud to be Part of the Project Team

Providing the Civil EngineeringAt

The Village of Odenton Station

EnginEErs, survEyors & PlannErs

SNOW REMOVAL

7807 Cessna AvenueGaithersburg, MD 20879

main (301) 947-3950FaX (301) 947-3952

www.royalgutter.comCELL (240) 876-0777

[email protected]

VOSB WBE MHIC49843 LICENSED BONDED INSURED

INC

PrincipalKevin J. King

Providing Roofing, Corniceand Exterior Metalwork

At “The Village of Odenton Station”

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

Proud to be Part of The Village At Odenton Station

Project Team

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

Services:ArchitectureMaster PlanningCommercial InteriorsAdaptive ReuseSustainable DesignHistoric PreservationCompliance& ImplementationConsulting

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

dba-arch.com

Daniel Ball & Associates

ARCHITECT


SHOPPING CENTERS

123 South Broad Street, Suite 1835Philadelphia, PA 19109215-893-0300www.metrocommercial.com

Serving PA, NJ & DE since 1987

Property Marketing – Tenant Representation – Investment SalesManagement – Troubled Assets & Receivership

National Retailer Expansion & Disposition

We’ve always been here.

Now, we’ll have a place to sit.

New office opening this spring in the heart of Philadelphia

Metro Commercial | Center City

110 N. George Street, 4th floorYork, PA 17401 717-843-5555

Contact Any One Of Our Attending AgentsTo Make An Appointment:

Agent Ext. Email Address

Chad Stine 253 [email protected]

Bobby Traynham 245 [email protected]

Gary Russell 259 [email protected]

Bradley Rohrbaugh 251 [email protected]

Jeremiah Hamilton 232 [email protected]

Kevin Potter 256 [email protected]

Gordon Kauffman 284 [email protected]

Adam Hagerman 235 [email protected]

TAKE THE PATH OFLEAST RESISTANCE.

Real estate deals are oftenfull of legal complexities.It’s all too easy to find

yourself stuck in a maze oftwists and turns.

With Meislik & Meislikguiding you through, yourreal estate transactions willbe done right, done fast, anddone without wasted steps.

We are seasoned professionalsin the field of transactionalreal estate law with more than20 years experience.

973 783-3000www.meislik.com

Montclair, New Jersey

maze_quarter.qxd:Layout 1 3/14/11 8:19 PM Page 1

COMMERCIAL REAL ESTATE RETAIL COMMERCIAL REAL ESTATE

COMMERCIAL REAL ESTATE RETAIL REAL ESTATE LAW

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

SHOPPING CENTERS

ASHINGTON, D.C., —According to Capi-tal 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 ex-plosion 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-

Perfect Pita signs lease in NoMa

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

tion, and adjacent to the head-quarters of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The 2,940 s/f space was formerly leased to Heidi’s Brooklyn Deli and Sisters Pizza & Mussels,

which closed last year.“We are proud that we have

been able to lease to local entre-preneurs who are offering in-teresting restaurant concepts,” said leasing agent Robert Tack with Capital Retail Group. ■

Future Perfect Pita space

SHORT PUMP , VA — Bone-fi sh Grill has completed a land lease at West Broad Village in Short Pump.

Bonefi sh 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 pub-lic in early fall this year.

David M. Smith, CCIM of Cushman & Wakefi eld | Thal-himer represented Bonefi sh Grill in the lease negotia-tions. ■

West Broad Village

Thalhimer arranges retail lease in West Broad Village

MONTGOMERYVILLE, PA — Greg Jones of Equity Retail Brokers represented the land-lord 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 cur-rently a tenant in the space (Curves) that needed to be relocated….and quickly.” ■

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

755 Bethlehem Pike.

REGIONAL FOCUS

PHILADELPHIA, PA633 West Germantown Pike, Suite 200

Plymouth Meeting, PA 19462Phone: 610.834.8000

Fax: 610.834.1793

WOODBRIDGE, NJ555 U.S. Highway 1 South, Suite 400

Iselin, NJ 08830Phone: 732.526.9100

Fax: 732.526.9101

www.famecoretail.com

Owner RepresentationOver 20 Million SF in Owner Representation Assignments

Retailer RepresentationOver 75 Retailers Exclusively

Investment SalesOver $1 Billion in Properties Sold

Management ServicesOver 11 Million SF in Property Management Assignments

NATIONAL REACH

ATTENTION:Architects, Engineers, General Contractors& Construction Contractors

Issue Date: May 27thDeadline: May 10thContactElaine Fanning800-584-1062 ext. [email protected]

Promote your company, retail projects and expertise in MAREJ’sannualRetail Architecture, Construction & EngineeringSpotlight


18+ million square feet

Management LLCRD Thomas G. MirandiEmail: [email protected]: 212-459-9133

212-265-6600 Ext. 239

ARIZONAMesaKohl’s

McKellips Road & Recker Road95,279 SF GLA

Part of Falcon View Plaza w/ Fry’s

PhoenixFreestanding Barnes & Noble

1035 N. Metro Pkwy. West & 28th Dr.Adjacent to Metro Center Mall

19,360 SF on 1.48 Acres

TollesonFreestanding Kmart

West McDowell Road & North 86th Drive86,479 SF GLA

FLORIDAGainsville

Mixed Use – Grocery Store & Student HousingNW 13th St & University Avenue

1.74 AcresOver 27,500 SF Ground Floor Retail in

Proposed 171,000 SF 6-Story Residential Bldg

Fern ParkLowe’s Shopping Center

6735 Hwy. 17-92 & Fernwood Blvd. near Hwy. 436129,085 SF GLA

Proposed Retail Strip: 9,000 SF

ILLINOISDowners Grove

Marshall’s at The Grove75th St. & Lemont Rd.

400,000 SF GLAAnchor Space Available 43,264 SF

NilesGolf Glen Mart (Outparcel)

Golf Rd. & Dee Rd.Up to 12,000 SF Outlot, B-T-S

INDIANAEvansville

Evansville Shopping CenterMorgan Ave. & Boeke Rd.Rural King, Dollar General

153,000 SF GLA

IndianapolisPendleton Plaza

Pendleton Pike & Shadeland Ave.Kmart

134,797 SF GLA

South BendSouth Bend Shopping Center

US Hwy. 20 & US Hwy. 31112,900 SF GLA

Anchor Space Available

MICHIGANGrand BlancVacant Land

Holly Rd. & I-7522 Acres For Sale

MuskegonMuskegon Shopping Center

Henry St. & Norton Ave.187,000 SF GLA


Port HuronPort Huron Shopping Center

Howard St. & 24th St.Big Lots, Save-A-Lot, Family Dollar

118,000 SF GLAAnchor Space & Outlot Available

RedfordRedford Plaza

Plymouth Rd. & Inkster Rd.CVS/114,865 SF GLA


SaginawSaginaw Square

Tittabawasse Rd. & Bay Rd.Target, JoAnn Etc., Staples

94,891 SF GLAAnchor Space Available

SanduskyKmart Shopping Center

M-19 & Gates Rd.176,248 SF GLA


SouthgateFort St. & Burns Ave.

60,800 SF GLAFreestanding / Redevelopment Opportunity

MINNESOTASt. Paul

Midway Shopping CenterUniversity Ave. & Snelling Ave.

Rainbow Foods, Office Max, Walgreens280,353 SF GLA

Anchor Space Available 40,262 SF

NEVADALas VegasKmart Plaza

E. Sahara Ave. & McLeod Dr.127,754 SF GLA

10,945 SF Outbldg. Available

NEW JERSEYMarlton (Evesham)

Tri-Towne Plaza Route 70 & Plymouth Dr.

Superfresh/176,519 SF GLAAnchor Space Available/Redevelopment Opportunity


200+ retail projects

Management LLCRD Thomas G. MirandiEmail: [email protected]: 212-459-9133

212-265-6600 Ext. 239

NEW YORKNanuet

Home Depot PlazaRoute 59 & Hutton Ave.Home Depot, Staples

250,000 SF GLA/Pad Available

OrangetownOrangeburg Commons

Route 303 & Palisades ParkwayFuture Retail Development

Anchor Space, In-Line Space & Pads AvailableAdjacent to Lowe’s

Staten IslandLowe’s West Shore Center

Veterans Rd. West (I-440) & Arthur Kill Rd.Pad Building Available

7,000 SF New Retail Bldg. Available166,600 SF GLA

Stony PointStony 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 RetailTower II: 250 Condos & 5,178 SF Specialty Rest.

OHIOAshtabula

Home Depot PlazaRoute 20 (N. Ridge Rd.) & Orchard Rd.

130,000 SF GLA18,440 SF Expansion & Pad

FindlayHobby Lobby Plaza

Tiffin Ave. & Croy Dr.Hobby Lobby


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

OREGONSalem

Kmart Shopping CenterMission Street S. E.

116,866 SF GLA

PENNSYLVANIAAllentown

Home Depot PlazaLehigh St. & Route 78

220,000 SF GLA9.82 Acres Available

CarlisleHanover Street (Route 34) & I-81

Home Depot, Chili’s140,715 SF GLA

10,584 SF Future Expansion/Pad

TrexlertownTrexlertown Marketplace

Hamilton Blvd. (Route 222) & Mill Creek Rd.Walgreens, Panera Bread, Verizon

36,068 SF GLA

TENNESSEEHermitage (Nashville)

Freestanding Bldg. adjacent toJackson’s Courtyard Shopping Center

3445 Lebanon Pike 24,040 sf GLA

36,000 sf GLA Possible Redevelopment

TexasFt. Worth

Westcliff Shopping CenterAlbertson’s Market, Dollar General

Alton Rd. & Biddison St.133,332 sf GLA

VIRGINIARichmond

Food Lion PlazaRoute 1 (Jefferson Davis Hwy.) &

Chippenham Pkwy.Outlots Available

WEST VIRGINIASt. Albans

St. Albans CenterRoute 60 & MacCorkle Ave. SW

Kmart, Super Kroger, Peebles, CVS230,000 SF GLA

PUERTO RICOArecibo

Arecibo Towne CenterRoutes 2 & 22

Future DevelopmentAnchor Position & Outlots Available

PonceReina del Sur; Outlots atPonce Towne Center II

Rtes. #2 & Baramaya Ave. (Rte. 10) @ PR-52Wal-Mart SuperCenter, Home Depot

New Development & Pads525,000 ± SF GLA

NEW JERSEYMt. Olive

Pad Sites AvailableAdjacent to Foreign Trade Zone

Across from Wal-Mart, Sam’s, TJ Maxx

Old BridgeA & P Shopping Center

Route 9 & Ferry Rd.64,920 SF GLA

Up to 4,000 SF Outlot

VinelandVineland Marketplace

Delsea Dr. (Route 47) & College Dr.New Development

273,657 ± SF GLA / Outlots Available

WilliamstownWilliamstown Shopping Center

Black Horse Pike (Route 42) & Main St.CVS, Fashion Bug, Dollar General

85,000 SF GLAAnchor Space Available

NEW YORKDeer Park

Kohl’s PlazaCommack Rd. & Grand Blvd.Kohl’s, Super Stop & Shop

182,875 SF GLAProposed Pad 3,800 SF

Glenville/Scotia (Albany)Freestanding Building

Saratoga Rd. (Route 50) & Glenridge Rd.128,485 SF GLA


HoltsvilleIsland 16 Cinemas Shopping CenterNicholls Rd. & Long Island Expwy.

National Amusements Theater, Chili’s117,342 SF GLA

Pad Bldg. Available with Drive-thru

Latham/Colonie (Albany)Kmart Shopping CenterRoute 7 & Swatling Rd.

118,863 SF GLAUp to 10,000 SF Outlot Available

Monroe/WoodburyHarriman Commons

Routes 17 / 6 & Route 32Wal-Mart, Home Depot, BJ’s,

Target, Home Goods, Best Buy687,716SF GLA

Anchor Space & Outlots AvailableFuture Phase III Office Bldg.


SHOPPING CENTERSLeases 26,930 s/f retail site in Cherry Hill Business Park

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

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 Spring-dale Center, LLC.

Wayne Zerbo and Nick Aspras are the principals of Springdale Center, LLC. Ac-cording 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,

C

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

1900 Greentree Rd.

2080 Springdale Rd.

negotiated the lease between Endurance Real Estate Group, owners of the Business Park, and Offi ce Furniture Outlet.

UNION, NJ — Two new tenants – A Seabra Foods and Koki Japanese Buffet – have opened at Galloping Hill Cen-ter in Union, announced Levin Management Corporation, the retail property’s leasing and managing agent. Levin’s Ethan Goldsmith negotiated both long-term transactions, bringing the 67,973 s/f prop-erty to full occupancy.

A Seabra Foods is a full-ser-vice grocer with an expanded ethnic food component. The company took occupancy this spring in a 30,861 s/f space formerly housed by another supermarket tenant. Pri-vately owned by a Portuguese-American family.

HOWELL, NJ — Kessler Institute for Rehabilitation has leased a 4,200 s/f, pad-site building at Aldrich Plaza in Howell, announced retail

Toth of Jackson Cross brokers 4,200 s/f

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

Seabra Foods ribbon cuttingreal estate services fi rm Levin Management Corporation. Kessler will establish an out-patient rehabilitation center in a former Blockbuster space, bringing a new service to the local community and illus-trating the emerging trend of non-traditional tenants operating at shopping center properties.

“In the case of Aldrich Plaza, this strategy has worked to everyone’s advantage, pro-viding key services for local residents while increasing the occupancy at this well-located property,” added Levin’s Stan-ley Bernstein, who negotiated the Kessler lease. “And the tenant enjoys the great vis-ibility that being in a shopping center provides.”

Patti Toth of Jackson Cross Partners represented the ten-ant. ■

PHILADELPHIA, PA — The Retail Division of Colliers Inter-national | Philadelphia recent-ly 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 fi fth retail lo-cation in the US and its second on the East Coast.

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

Colliers Int’l. concludes 3,800 s/f leaseStreet location will be a perfect fi t 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 fl oor offi ces to create a high-end designer store - not unlike its SoHo, NYC location which opened November.

Michael Barmash and Mi-chael Kahan of Colliers Inter-national facilitated the trans-action, representing both the ownership, Weisberg Trust, and Dr. Martens. ■1710 Walnut Street

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

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

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

Fameco’s Golom & Creed head Sports Clips Phila. expansion

Sports Clips interior

Larken Associates signs 3,480 s/f at Tilghman Square

Tilghman Square

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. ■

ROCK Comm’l. completes 1,066 s/f lease

153 South Beaver Street

SOUTH WHITEHALL, PA – Tilghman Square welcomed Bread Box and Metro PCS at the 230,264 s/f complex of retail and offi ce 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, devel-oper, owner and manager of the complex. ■

HARRISBURG, PA — Dave Stewart has leased 1,100 s/f of commercial retail space lo-cated in at 23 S. 3rd St.

Drew Bobincheck, CCIM of Landmark Commercial Realty, Inc./ONCOR Inter-national represented the

Landmark Commercial Realty, Inc. arranges 1,100 s/f leaselandlord and Charlie Mal-lios of Alpha State Realty represented the tenant in the leasing transaction. ■

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: Aar-ons, 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 – in-spired, nationally recognized brands at low prices every day. The Cato Corporation who owns the store is a specialty retailer of value priced fashion apparel. ■

Sperry Van Ness – Miller Comm’l. negotiates 10,232 s/f lease


SHOPPING CENTERS

2010 WAS ANOTHER AWARDING YEAR FOR LEVIN MANAGEMENT!(AND 2011 ALREADY LOOKS LIKE IT WILL BE, TOO.)

We’re proud to have been named a Top Manager by Mid Atlantic Real Estate Journal.And one of America’s top redevelopers by Chain Store Age.

And one of America’s top 30 real estate companies, by Commercial Property Executive.And one of America’s Top 50 Managers by Retail Traf c.

Thanks to our many clients for entrusting us with their valuable properties.(Maybe it’s because we think like an owner.)

Proudly operating 12,500,000+SF of Retail Real EstateLeasing | Property Operations | Financial Mgmt & Reporting | Lease Administration

| Construction Services & Mgmt | Marketing | Property Disposition | REO ServicesAll 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.

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

HAMILTON PLAZA HAMILTON TWP., NJ

Major renovation and ShopRite expansion underway. New endcap,

bank and restaurant pads.

FAIRLANE VILLAGE MALL POTTSVILLE, PA

Voted Best Shopping Center 2nd year in a row. Lease w. additional department store being negotiated.

POST ROAD PLAZA PELHAM MANOR, NY

Anchor market exceeding plan. Pad site w/ US1 visibility

available.

MAYFAIR SHOPPING CENTERCOMMACK, NY

Waldsbaum’s, Gap,Rite Aid, Talbot’s, Outback,

Jos. A. Bank.

THE SHOPPES AT FLEMINGTONFLEMINGTON, NJ

$144,809 AHI. J. Jill, Coldwater Creek, Talbots, Justice, Lenox,

Massage Envy

THE RETAIL REAL ESTATE EXPERTS

101 West Elm St | Suite 370 | Conshohocken, PA 19428Licensed in PA, NJ, DE

We are proud to be members of the Retail Brokers Network,a retail powerhouse representing the foremost brokerages in the U.S. and Canada


Coldwell Banker CommercialBennett Williams Inc.110 N. George Street • 4th Floor York, PA 17401P: 717-843-5555 F: [email protected] Behler Jr. • Bobby Traynham Dennis Neiman • Chad StineChris Seitz • Bradley Rohrbaugh • David Schad

Colliers International – Philadelphia, PA (HQ)399 Market St. Ste. 350Philadelphia, PA 19106P: 215-925-4600 F: 215-925-1040www.colliers.com/philadelphiaMichael Barmash • Despina BelsemesDavid Dunkelman • Michael KahanTodd Sussman

Colliers International – Conshohocken, PA161 Washington St., Ste. 825Conshohocken, PA 19428P: 610-684-1850 F: 610-684-1857Damon DiPlacido

Colliers International – Allentown, PA7535 Windsor Dr., Ste. 208Allentown, PA 18195P: 610-770-3600 F: 610-770-3100Derek Zerfass

Colliers International – Harrisburg, PA300 N. Second St., Ste. 1203Harrisburg, PA 17101P: 717-730-3752 F: 717-238-3299William Aiello • George Lulos

Colliers International – Mount Laurel, NJ1317 Route 73, Ste. 109Mt. Laurel, NJ 08054P: 856-234-9300 F: 856-222-1115David Dunkelman

Colliers International – Wilmington, DE300 Delaware Ave., Ste. 1018Wilmington, DE 19801P: 302-425-4000 F: 302-425-4700Mark Undorf

Equity Retail Brokers101 West Elm St. • Ste. 370 •Conshohocken, PA 19428P: 610-645-7700 F: [email protected] Conston • Lee Cooper • Bart Del nerEd Ginn • Kathy Haines • Conrad HeckmannKen McEvoy • Rob Samtmann • Rose UrbanBrian Wherty • Rich Zeller • Gregory Jones Chris Lee • David Goodman

Fameco - Woodbridge, NJWoodbridge Towers • 555 U. S. Highway 1Iselin, NJ 08830P: 732-526-9000 F: 732-526-9101www.famecoretail.comTyler Bennett • Carlo Caparruva • Mike Horne Dan Spector • Steven Winters

Fameco - Plymouth Meeting, PA633 West Germantown Pike • Suite 200Plymouth Meeting, PA 19462P: 610-834-8000 F: 610-834-1793www.famecoretail.comCathy Agnew • Jackie Balin • Rod Bell Brian Bruzek • Jeff Cohen • Chris CovelloJim Creed • Scott Dennis • Brandon Famous John Fasciano • Blake Golom • Michael GrayDana Hawkins • Jerry Johnson • Jon Kieserman Adam Kohler • John Krause • Jon KushnerDylan Langley • Gary Leone • Marc MandelMatt Mandel • Jay Miller • Steve O’MalleyDavid Orkin • Dale Peterson • Rick SchuchJulie Tanpitukpongse • Dave VitaliRick Weinberg • George WisnoskiMarissa Visconsi • Fred Younkin

Kay Realty Services, LLC1989 Jumping Brook Rd.Tinton Falls, NJ 07753P:732-918-1148 F:732-918-1628www.kayrealtyholdings.comWilliam Klein, Broker • DeveloperProperty Management • Leasing

Joe R. Deerin, CSM • Donna Deerin Ward120 North Pointe Blvd., Suite 301, Lancaster, PA 17601

P: 717-569-9373 T: 800-864-2633www.LMS-PMA.com

Dave Nicholson, Blaze Cambruzzi,Michael Boden, SCSM, Chad Ward, Blake Gross, Joe Spagnola, CCIM

Ted Hummel, CCIM, e-pro, Wilay Boensch

ARC Properties, Inc.1401 Broad Street• Clifton, NJ 07013Michael R. AmbrosiLeasing and MarketingP: 973-249-1000 x [email protected] MaloyS.V.P. InvestmentsP: 973-249-1000 x [email protected]

Azarian Realty Co.The Azarian Building • 6 Prospect St.Suite 1B • Midland Park, NJ 07432 P: 201-444-9888 F: [email protected] M. Azarian • Donna M. Azarian • Kevin Pelio Nicole Critelli • Matt Scozzari

Capital Retail Group1401 14th St. NW • 3rd Floor Washington, DC 20005P: 202-319-2884www.capitalretailgroup.comRobert 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.

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

RETAIL BROKERAGE DIRECTORY


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

NAI Summit3435 Winchester Rd. • Ste. 300 • Allentown, PA 18104P: 610-264-0200 F: [email protected] Chomik • John L. Crampsie, SIOR Jody King, CCIM • Dwight MusselmanDavid Schumacher

Remco Realty Group525 MIlltown Rd. • Ste. 101 • North Brunswick, NJ 08902P: 732-253-0888 F: [email protected] Gallicchio, Owner / President

R. J. Brunelli & Co.400 Perrine Rd. • Suite 405 • Old Bridge • NJ 08857P: 732-721-5800 F: 732-721-9241www.njretailrealty.comRichard J. Brunelli • William A. Lenaz Carl J. Minue • Martin Yaged • John LenazRon DeLuca • Edward AbaidDanielle Brunelli-Albrecht • Michael MurphyAssunta Spedaliere

Rock Commercial Real Estate LLC221 W. Philadelphia • St. Suite 19 • York, PA 17401www.rockrealestate.netRyan Myers, CCIM, • Larry O’Brien, CCIMBenjamin Chiaro, CCIM • Cami Spiridonoff, CPM David Bode, CCIM, SIOR • Dave Keech, CCIM, SIOR Jason Turnbull, CCIM • Kevin Hodge, CCIMMichael Katz, CCIM • Russ Bardolf, CCIMTed Turnbull, CCIM

Silbert Realty & Management Company, Inc.85A Division Ave. • Millington, NJ 07946P: 908-604-6900 F: 908-604-2030www.silbertrealestate.cominfo@silbertrealestate.comBrian S. Silbert • Joel TomlinsonDominick V. Paragano • Wayne KasbarDavid A. Greenman • William Ray

Soloff Realty & Development, Inc. Eight Tower Bridge • 161 Washington Street

Suite 920 • Conshohocken, PA 19428P: 610-834-0400 F: 484-534-2102

Broker: Richard L. [email protected]

Retail Brokerage * Development * Consulting PA, NJ & DE

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

David S. FeldmanRegional Manager – Washington DC Of ce

Special Assets Services – Regional Director7200 Wisconsin Ave. • Ste. 1101 • Bethesda, MD 20814

P: 202-536-3700 F: 202-536-3710www.marcusmillichap.com

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

Michael J. FasanoMarcus & Millichap

611 River Dr. • 4th Floor • Elmwood Park, NJ 07407P: 201-582-1000 F: 201-582-1010

www.marcusmillichap.com

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

Spencer YablonVice President and Regional Manager

8 Penn Ctr. • 1628 JFK Blvd. • Ste. 1200 Philadelphia, PAP: 215-531-7000F: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, NJ303 Fellowship Rd. • Suite 202 •Mt. Laurel, NJ 08054P: 856-866-1900 F: 856-866-1611Brandon Anapol • Brent Barbehenn • Dan BricknerKurt Rumley • Mark Gerlach • Mary Hughes • Mike Gorman Paul Friedman • Paul Rumley • Pete NicholsonRob Cooper • Tom Londres

Metro Commercial - Conshohocken, PAEight Tower Bridge • 161 Washington Street #375 • Conshohocken, PA 19428P: 610-825-5222 F: 610-826-5156Brian Goodwin • Donna Drew • Glenn MarvinJoe Dougherty • Mike Murray • Randy HopeSteve Gartner • Steve Niggeman

RETAIL BROKERAGE DIRECTORY

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Elaine Fanning, Publisher


PEOPLE ON THE MOVE

LAKEWOOD, NJ — Three executives from Madison Commercial Real Estate S e r v i c e s ( M C R E S ) have been c h o s e n t o l e a d p r o -f e s s i o n a l roundtables at RECon 2 0 11 , t h e world’s larg-est gather-ing of retail real estate profession-als. Daniel K a s t e n , C PA , E l i L o e b e n -berg, CPA, and David Tesler, Esq., are among the industry experts who will be pre-senting at the conven-tion, to be held at the Las Vegas Convention Cen-ter, May 22-25. The roundta-bles 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 infl u-ential retail real estate con-vention in the world, where roughly 50% of all shopping center deals are initiated or fi nalized each year,” said El-liot S. Zaks, MCRES’ Direc-tor of Operations. “We are pleased to have three of our executives included among the top-tier of speakers shap-ing the future of the retail

Kasten, Loebenberg & Tesler present topics

MCRES execs. to leadRECon 2011Roundtables

real estate industry.” Kasten, MCRES’ chief

financial officer, and Loe-benberg, CEO of Madison SPECS, will be leading a roundtable discussion enti-tled “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 fl ow, they will examine the current ben-efi ts of two valuable, yet often overlooked or misunderstood, tax strategies: cost segrega-tion and §1031 Exchanges.

Tesler, founder and CEO of Real Diligence, LLC, will lead a roundtable discus-sion 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 con-sidering distressed assets.

MCRES is a group of in-dependent but related com-panies that offer specialty services for the commercial real estate market nation-wide. Each company excels in a specifi c, highly specialized area of expertise. MCRES companies include: Madi-son Title Agency, a nation-wide title agency; Madison SPECS, offering expert cost segregation studies; Madison Exchange, one of the nation’s leading Qualified Interme-diaries; and Real Diligence, offering accurate and reliable financial due diligence for commercial real estate acqui-sitions as well as distressed asset acquisition support. ■

Daniel Kasten

Eli Loebenberg

David Tesler

HILADELPHIA, PA — Llenrock Group an-nounced the addition

of Michael Wachs as a senior advi-sor to the firm, where he will focus on workouts a n d d i s -tressed debt transactions.

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

Focus on workouts and distressed debt transactions

Llenrock Group welcomes Wachs as senior advisorP developed, managed and

raised equity and debt for more than $500 Million worth of real estate projects span-ning the multifamily, retail, industrial, offi ce, hospitality and land development sec-tors.

Prior to forming Linden Lane, Wachs co-founded Spring Mill Capital Manage-ment, LLC, and was president and chief operating offi cer of AMC Delancey Group, Inc. In addition, Wachs brings a diverse fi nance background in banking, having worked for First Union Bank and its predecessors in various ca-pacities and departments in-cluding, in Real Estate Asset Recovery, Derivatives Group,

specialized lending, as well as a senior credit offi cer.

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 affi liated with ProFunds Group, the largest provider of short and magni-fi ed 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 Universi-ty and a Masters in Business Administration from Drexel University. ■

Michael Wachs

GLEN ALLEN, VA — Brian R. Bock has joined the retail b r o k e r a g e team of Tay-l o r L o n g Properties as commer-cial sales & leasing and investment manager. ■

CLEVELAND, OH — Forest City Commercial Manage-ment, in partnership with PlaceWise Media, announced the launch of the Shoptopia Network. Shoptopia will unite the industry’s small and mid-sized shopping center develop-ers nationwide as the nation’s largest integrated media net-work.

Shoptopia combines on-line, social, mobile and digital screen-based communications into an interactive experience and relationship with consum-ers. 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 shop-ping.

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

Forest City & PlaceWise Media introduce digital network connecting shoppers with malls, retailers and brands

Lisy, Forest City Enterprises VP of marketing for commercial management and chairwoman of the Shoptopia Network Ad-visory Board. “It’s a perfect integration of all the digital and physical shopping experi-ences. 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 in-mall digital experience walls, providing consumers with real digital interactions that are natural extensions of the shop-ping experience.

As PlaceWise’s charter part-ner for the original Shopto-pia 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 chan-nels and their infl uence on both online and bricks and mortar purchasing habits. Finding that frequent online shoppers still highly value the in-mall shop-ping experience, Forest City recognized that the integration of social networking channels with in-mall shopping was nec-essary to engage shoppers and provide them with a complete experience.

“What makes the Shopto-pia Network so interesting and valuable is the targeted communication with shoppers during their entire shopping ex-perience,” said Mort Aaronson, chairman and CEO of Place-Wise 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. ■Brian R. Bock

Bock joins Taylor Long Properties

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 Interna-tional Council of Shopping Centers (ICSC) Mid - Atlantic conference and deal-making session held at the Gaylord Conventional Center. In at-tendance were various shop-ping center owners, brokers, retailers and vendors making their annual appearance to

Sperry Van Ness – Miller attends The 2011 ICSC Mid -Atlantic conference

discuss the current state and expected direction of the Bal-timore-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 appoint-ments with two retail compa-nies 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.” ■

Member of International Council of Shopping Centers

www.icsc.orgMichael KerchevalPresident & CEO

ICSC

Peter SharpeICSC

Chairman

Northern NJ

State Director

Steven H. Gartner

Metro Commercial Real

Estate

Government Relations

Committee Chair

Michael A. Mozzachio

Chancellor Development

Group

Alliance Co-Chair

Edward A. Shriver, Jr.

Strada

Operations Co-Chair

Lynda E. Benedetto,

SCSM

Kravco Simon Co.

Retail Co-Chair

Roy T. Perez-Daple

Lowe’s Companies

Next Generation Chair

Eric S. Penney

Centro Properties Group

Idea Exchange

Program Planning Com-

mittee Co-Chair

Timothy Rubin

PREIT

Idea Exchange

Program Planning Com-

mittee Co-Chair

Brandon Famous

Fameco

State Directors

PA/DE/S.NJ: John-david W. Franklin

Madison Marquette

DC/MD/N.VA: Larry M. Spott, CDP

The Rappaport Companies

S.VA: Susan F. Jones

Grubb & Ellis

Government Relations Committee Chair

PA/DE/S.NJ:Ed Kockman

KochmanConsulting Services

DC/MD/N.VA:Thomas C. Barbuti

Whiteford, Taylor and Preston LLP

S.VA:Roger R. Rodriguez

Timmons Group

Alliance Co-Chair

PA/DE/S.NJ: Edward A. Shriver, Jr

StradaDC/MD/N.VA:

Freddie L. ArcherLewis Real

Estate ServicesS.VA:

Matthew L. Lafl erCommercial Real Estate Services

Next Generation Chair

PA/DE/SNJ:Jordan Claffey

SNJ:Lindsey C. Floyd

Centro Properties GroupThalhimer

DC/MD/N.VA:Jarett L. Parker

Kimco Corporation

Brad HutenskyEastern Division

VP & Trustee

John-david Franklin Director,

PA/DE/S.NJ

Larry M. SpottDirector,

DC/MD/N.VA

Susan JonesDirector,

S.VA

EW YORK — The In-ternational Council of Shopping Centers

(ICSC) has announced that RECon, the world’s largest gath-ering of retail real estate profession-als, will fea-ture methods 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.

May 22-25, Las Vegas Convention Center

Put business in focus at ICSC’s 2011 RECon Conference

N “The shopping center in-dustry was able to show its strength and flexibility to withstand the economic down-turn over the last few years. As we enter a new era for the industry, new challenges and opportunities present themselves and RECon con-tinues to be a vital resource for shopping center profession-als 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 pres-ent themselves,” Kercheval added.

RECon will kick off on Sun-day, May 22, 2011 with a introductory orientation and educational sessions designed specifi cally for fi rst time con-ference 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 specifi cally in the retail fi eld. Special workshops focused on retail initiatives, a luncheon, and Special Industry Groups

(SIGs) on fi fteen 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 exhibi-tors, including products and services as well as developers and retailers, all on one show floor encompassing 1.2 mil-lion 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 indus-try experts and veterans. ■

Many exciting opportunities await!

If you would like to participate in the Shopping Centers Section

Contact Elaine Fanning ~ 1-800-584-1062 ext 212 ~ [email protected]

Michael Kercheval



SHOPPING CENTERS BUSINESS CARD DIRECTORY

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MAREjournal.com Mid AtlanticReal 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 MAREjournal.com

ALSO INSIDE:

HI-LIGHTS

Section C of the Mid Atlantic Real Estate Journal

NJPACONTRACTORS, OWNERS & MANAGERS

MAREjournal.com


Becker Morgan Groupreceives engineering awardThe American Council of En-gineering Companies of DE recently presented Becker Morgan Group with a 2011 Engineering Excellence Con-ceptor Award. See page 18C.

AST SETAUKET, NY — General contractor Stalco Construction,

Inc. and the offi ce 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 en-gineering fi rm of Eipel Barbieri Marschhausen, LLP (EBM).

MICHAEL REGINA, BIG SKY ENTERPRISES ..........................2CPEOPLE ON THE MOVE .........................................................18CCONSTRUCTION LAW & COST OVERRUNS ......................... 5-13CNJAA ORGANIZATION .........................................................15CMULTIFAMILY ................................................................. 15-17CBOMA NJ ORGANIZATION ..................................................19CIREM ORGANIZATION ............................................... 20-IBC-C

Section C, 24 pages

Bed bug-sniffi ng dogs: Thelatest weapons in detectionHeavy 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.

E

Additions meet The Collaborative for High Performance Schools guidelines

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

NEW YORK, NY — Tish-man Construction has com-pleted work on key facilities upgrades for Park Avenue Armory—including overhaul of its electrical systems, upgrade of its structural components, and stabilization of its infra-structure—supporting the non-profi t’s transformation into one of NYC’s most dynamic cultural institutions. The Armory, built by the National Guard’s pres-tigious 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, fi lling 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.

Of historic Park Avenue Armory

Tishman Construction managesfacilities and systems upgrade

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 Se-tauket, Setauket Elementary in East Setauket, and W.S. Mount Elementary in Stony Brook.

The Ward Melville High School additions and expan-sions encompassed the two-story, 50,000 s/f science wing housing 16 classrooms, 4,000 s/f fi tness center, and 6,400-s.f. music wing with the 4,000 s/f band and chorus room and 2,400 s/f orchestra room. Ren-ovated areas included the 16,000 s/f auditorium, library, classrooms, hallways, and bathrooms. ■

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, addi-tional 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 en-tire project, designed by Herzog & de Meuron with Platt Byard Dovell White as executive ar-chitect, is being built to LEED Silver standards.

“We are thrilled to have made so much progress in stabilizing this historic treasure as a non-traditional home for the arts,” said Rebecca Robertson, presi-dent and CEO of the Armory. “The Armory is an exceptional building, reflecting the most cutting-edge designers of a previous era, and now provid-ing a home for contemporary, cutting-edge arts productions. The building and its interi-ors must be treated with the utmost respect for detail and historic preservation. Our col-leagues at Tishman have been terrifi c partners in this project, injecting an intense level of care into the intricate process of stabilizing and upgrading this extraordinary space.” ■

Three Village-Ward

APRIL 22 - MAY 12, 2011

The Three Village Central School District undertook an

ambitious expansion and reno-vation program aimed at im-proving the district’s facilities, which encompass three high schools and five elementary schools with the total enroll-ment of 7,600 students. The district’s goals included in-creasing the number of high school classrooms, expanding the performing arts and ath-letic facilities, and improving

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

Stalco performed the major-ity 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 tempo-rary walls. Noisy activities and demolitions were performed at nights, on weekends, and during school recesses. Truck deliveries took place at dedi-cated entrances, inaccessible to students.

The program inc luded ground-up additions and reno-vations at the Ward Melville High School in East Setauket; P.J. Gelinas Junior High School

Park Avenue Armory

C Inside Cover — April 22 - May 12, 2011 — Contractors, Owners & Managers — Mid Atlantic Real Estate Journal MAREjournal.com

MAREjournal.com 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 Atlantic Real Estate Journal MAREjournal.com

MAREJ COM

here is no doubt these are extraord inary times. Highly volatile

market condi-tions and on-going uncer-tainty have made it duly challenging for the com-mercial con-struction in-dustry and its trade partners. Amid the cur-rent economic downturn, now may not seem like a good time to build – especially in the com-mercial sector. However, while perspectives may differ, there are many benefi ts 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 signifi cant advantages,” notes Michael Regina, owner of BIG SKY Enterprises.

Here are four favorable rea-sons 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 es-tate 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.

By Michael Regina, BIG SKY Enterprises

Benefi ts of Buildingin a Bad EconomyT

a section of the

Mid Atlantic Real Estate Journal

P.O. Box 26, Accord, MA 02018781-871-5298 • 800-584-1062

fax 781-871-5299MAREjournal.com

Section PublisherJoe Christman

[email protected]


[email protected]

Contractors, Owners& Managers

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

The same goes for new of-fi ce buildings that sold for $2.4 million in 2008 that are now selling for $1.6 million in 2011. Even landlords are doing every-thing 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. Addi-tionally, 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 diffi cult to remem-ber 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 some-one 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 ProcessesDespite downturns, one thing

that is full steam ahead is streamlined processes. Even fi ve years ago, it seemed to take a lifetime to get any new project approved through various local, county and state governing agencies. This is defi nitely not the case today. Now, it appears

that these same agencies are starving for fees and are des-perate for new projects, when one bears in mind that the fees new development brings sup-port many of these agencies.

It’s not uncommon for town-ships to call construction fi rms inquiring about new submis-sions. 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 effi ciencies and eager report-ing 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 abil-

continued on page 4C

Michael Regina

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restoration services in the Delaware Valley region

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MAREJ COM

ooking forward to this summer? According to re-search entomologist Jef-

frey White, so are bed bugs. Bed bug infestations are expected to surge. New Jersey, with its signifi cant daily movement of people and goods in and out of New York City, the unoffi cial bed bug capital, will also feel the pain. News reports of the rise of bed bug infestations are often disheartening. But fi nal-ly, there is something new and exciting to report in the fi ght 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.

Cowleys Pest Services

Bed bug-sniffi ng dogs: The latest weapons in bed bug detection

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 dif-ferent 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 co- founder and owner of BIG SKY Enterprises. ■

continued from page 2C

Benefi ts of Building in a Bad . . .

L

Scout

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

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

According to Cowley, “Al-though bed bugs can wind up anywhere, structures with transient populations such as hotels, hospitals, apart-ments, 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 fl at-tened 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 in-festations 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


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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

REGISTER TODAY!

Visit www.njaaconference.com for up-to-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 [email protected] or (732) 992-0600.

New Jersey Apartment Association - Headquarters104 Interchange Plaza, Suite 201, Monroe Township, NJ 08831 Phone: (732) 992-0600 Fax: (609) 860-0060

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


MAREJ COM

YOU are invitedto PARTICIPATE IN

MAREJ’s COM section !!!

CONTRACTORS &SUBCONTRACTORSMAY 27TH ISSUEdeadline May 13 &SUBCONTRACTORSMAY 27TH ISSUEdeadline May 13

BUILDING FACILITIESMAINTENANCEJUNE 24TH ISSUEdeadline June 10

ARCHITECTS &ENGINEERSJULY 22ND ISSUEdeadline July 8

If you would like to submit articles or news to appear in the Mid Atlantic

Real Estate Journal, please contact:

Joe Christman, Publisher800-584-1062 x 202 or

email Joe at:[email protected]

ANTA BARBARA, CA — The Graham Companies have selected Yardi Voy-

ager as the new property management and account-ing platform for their com-mercial and residential assets.

During a recent internal performance review, The Graham Compa-nies concluded that managing an increasingly diverse port-folio that includes commercial

To Manage Commercial and Residential Holdings

The Graham Companiesselect Yardi Voyager

S and residential properties, golf and spa resorts, hotels and farming operations required a new platform that would pro-vide them more fl exibility.

“We have 500 commercial tenants and every lease is dif-ferent, 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 effi ciently and calculate common area maintenance recoveries quick-ly and accurately,” said Andre Teixeira, executive vice presi-dent and chief fi nancial offi cer

for The Graham Companies. “For our residential proper-ties, Voyager will enhance enterprise-wide oversight and allow us to change pric-ing rules quickly across the portfolio.”

“Along with meeting The Graham Companies’ current needs, Voyager can be eas-ily extended to accommodate their future needs as well. These include budgeting and forecasting, job costing, online tenant and resident self-ser-vices, and other operations,” said Terri Dowen, senior vice president of sales for Yardi. ■

Terri Dowen

FLEMINGTON, NJ — The Community Association Insti-tute recognized three Access Property Management em-ployees at their annual dinner on March 3. Jacquie Dolan Rogers, APM property man-ager 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 Commu-nity Manager of the Year and

CAI awards Access Property ManagementCommittee of the Year awards are selected by a nominating committee of property man-agement peers. “We’re very proud of Jacquie and Ted, they give 150 percent to their properties and board mem-bers,” said Wayde Scheffer, Ac-cess 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 will-ingness 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 Manage-ment recently hosted a semi-nar series for their clients and guests regarding rules and regulations for board mem-bers. At the seminars, Lindsey presented current scenarios and useful strategies for audi-ence members.

Access Property Manage-ment (APM), LLC is a full ser-vice management company for common interest community associations and commercial properties throughout New Jersey and eastern Pennsylva-nia. APM is an accredited Asso-ciation Management Company and Accredited Management Organization. ■

WHITESTONE, NY — Two of the New York Metro area’s building envelope renova-tion companies recently an-nounced a strategic alliance. Tindel Windows and Lawrence Exterior Restoration have joined forces under the same ownership. Their objective

Tindel Windows and Lawrence Restoration form allianceis to offer a full complement of professional services for both window installation and all aspects of façade/roofi ng restoration to the real estate community.

“Tindel is well known throughout the New York Metro Area as the premier

window installation company. Lawrence Exterior Restora-tion 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. ■

WantedWantedWantedWantedAuthors with a flair

We are searching for high-level professionals towrite a by-lined article about their area ofexpertise for upcoming spotlight features.

Suggested topics include, but are not limited to:Development • Industrial Market • Multi-Family Market •

Retail Market • Distribution Centers • Mediation • Real EstateLaw • Mold • Environmental • Architecture • Engineering

Reserve your topic soon, only one writer per topic.Based on a first to reserve basis.

Joe Christman - 800-584-1062/[email protected]

For more information call


CONTRACTORS, OWNERS & MANAGERS SPOTLIGHT

CONSTRUCTION LAW & COST OVERRUNS

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

Andrew Cohn Marc Furman Veronica Faust

Don RichardsonEricson P. Kimbel Robert Watson, Jr. Ann M. Waeger

8C — April 22 - May 12, 2011 — Construction Law & Cost Overruns — Contractors, Owners & Managers — Mid Atlantic Real Estate Journal MAREjournal.


n today’s litigious envi-ronment, it is not unusual for claims to be asserted

for bodily in-jury or prop-erty damage in connection with building construction c o m p l e t e d years earlier. C l a i m a n t s can assert that concealed construction de-fi ciencies, or latent design de-fects caused a condition which led to an injury to a person or

By Andrew Cohn, Kaplin Stewart

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

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

For example, suits brought on behalf of homeowners’ as-sociations against developers,

designers, and contractors can allege significant dam-ages resulting from conditions

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

Such claims can be diffi cult 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 diffi -culty, most states have passed laws called statutes of repose.

These laws bar actions for design or construction defi cien-cies, whether based in contract or tort (negligence), if the claim is asserted beyond a defi ned time period after constructing or design work was completed. Statutes of repose differ from statutes of limitations, which typically require that legal claims be fi led 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 limita-tions 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 defi ned 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 pow-erful defense to stale claims for bodily injury or property dam-age. Recently, I represented a general contractor which was named as a defendant in a large, complex, multi-defen-dant property damage claim alleged to arise from supposed deficient construction. The claim was filed in New Jer-sey, 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 cover-age 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 defi cient construction or de-sign, fi rst look to the applicable statute of repose for relief.

Andrew Cohn is a prin-cipal in the Construction Law and Mediation and Arbitration groups of Kap-lin Stewart in Blue Bell, Pennsylvania. ■

I

Andrew Cohn

When faced with a claim for bodily injury or

damage to property alleged to arise from defi cient

construction or design, fi rst look to the applicable

statute of repose for relief.

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


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To increase compliance with post remediation care require-ments, the NJDEP recently instituted a remediation ac-tion permit (RAP) program for both soil and groundwater institutional and engineering controls. The new RAP pro-gram’s framework is similar to the existing biennial certi-fi cation program, with some exceptions. One key difference is a new fi nancial assurance requirement for implement-ing engineering controls. Fi-nancial 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 envi-ronmental insurance are listed

By Don Richardson, CPG, EWMA

Controlling post remediationcare cost and liability risks

I

Don Richardson

as the only NJDEP acceptable means to post fi nancial assur-ance for engineering controls.

Self guarantees are not al-lowed as a fi nancial assurance mechanism.

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

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

gram in New Jersey. These needs involve liability, techni-cal and financial assurance obligations. The approach integrates environmental in-surance and structured settle-ments into a guaranteed fi xed price contract. An environmen-tal 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 fi nancial experts to imple-ment a third party liability assumption of the risks inher-ent in implementing a long-term post remediation care program.

Richardson is vice presi-dent for EWMA in the Par-sippany, NJ offi ce and leads this program. ■

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he Pennsylvania Con-struction Workplace Misclassification Act

(CWMA) went into effect on February 10, 2011. Penn-sylvania joins at least fi fteen other states which have simi-lar independent contractor and/or employment laws addressing the issue of po-tential misclassification, including New Jersey whose Construction Industry In-dependent Contractor Act (CIICA) has been in effect since 2007. Like the CIICA, the CWMA carries signifi cant monetary and criminal pen-alties for misclassifi cation of employees as independent contractors in the construc-tion industry.

Pennsylvania’s CWMAThe CWMA includes crimi-

nal penalties for construc-tion companies who misclas-sify their own employees, or others who contract with a construction company while knowing that company’s intent to misclassify its em-ployees as independent con-tractors. Other penalties for violation include fi nes, incar-ceration, stop-work orders and administrative penalties. As stated by the Pennsylva-nia Department of Labor & Industry (DLI), the CWMA’s enforcement agency, “mis-classification 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 nec-essary to review the major defi nitions. Specifi cally, the CWMA defines “construc-tion” to include “erection, reconstruction, demolition, alteration, modifi cation, cus-tom fabrication, building, assembling, site preparation and repair work done on any real property or premises under contract….” 43 P.S. §933.2. This broad defi nition appears to include virtually all aspects of vertical con-struction.

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

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 satisfi ed, the purported independent contractor will be considered an “employee” under the CWMA. In such a case, penalties may be imposed upon the contrac-tor/employer (or an offi cer or agent of the employer) and, as stated above, in certain circumstances, also upon those who contract with the employer.

Further, each misclassifi ed independent contractor is considered a separate viola-tion of the CWMA. There are criminal and civil fi nes up to $1,000 for a fi rst vio-lation and up to $2,500 for each subsequent violation. Criminal penalties include a third degree misdemeanor for a fi rst violation and sec-ond 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 fi rm’s cash fl ow, 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 con-tractor, general contractor or owner. The remedies that

fl ow from such a breach could include, delay damages, liqui-dated damages or being held accountable for the difference in cost, if any, for the project to be completed by a replace-ment contractor.

The back benefi ts and taxes owed under the CWMA may far outweigh the other mon-etary penalties under the Act. Liability for unpaid unemployment and/or work-ers’ compensation benefi ts, federal, state and local taxes, and other remittances, to-gether 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 con-certed action provision under the CWMA. That section provides that a contracting party “which intentionally contracts with an employer knowing the employer in-tends to misclassify employ-ees 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 ex-tends 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 benefi ts and taxes as a fi nd-ing 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 com-pany and themselves by just

“sub-contracting” to another contractor who, in turn, vio-lates the CWMA, are just kidding themselves. Stick-ing 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 qualifi ed 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 obvi-ously attempt to assert this defense. In order to protect yourself from this boot-strap-ping liability, consider having your construction sub-con-tracts reviewed so that the sub-contractor’s obligation to specifi cally 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 misclassifi cation under the CWMA. It is also a viola-tion 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 pro-visions, which seem so obvi-ous, that become the most troublesome and potentially harmful.

New Jersey’s CIICAThe CIICA has been in

effect for almost four years, and, unlike the CWMA, the CIICA presumes that all per-sons 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, re-quires 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 individ-ual is customarily engaged in an independently established trade, occupation, profession

or business. Penalties under the CIICA

include fi nes of up to $1,000 and/or 90 days of jail time for each offense. The CIICA carries more severe penalties for knowing misclassifica-tions including fi nes of up to $150,000 and up to ten years imprisonment. For a second or subsequent violation of the Act, the Commissioner of La-bor and Workforce Develop-ment may issue a stop work order requiring all business operations to cease at every site where the violations oc-curred. The Commissioner may also seek debarment of a fi rm from all public work for three years if there has been a fi nal determination of CII-CA violations or a fi nal con-viction. In any event, when applying for your contractor registration or its renewal, such a violation would have to be disclosed, even if re-solved in a settlement with a non-admissions clause. Also, bids may require the disclo-sure of any CIICA violation, potentially rendering your company “unqualifi ed.”

To avoid possible non-com-pliance under the CWMA and/or the CIICA, all in-dependent contractor and subcontractor relationships should be carefully reviewed. All project sites should also be posted with the relevant CWMA or CIICA require-ments poster.

For further information, please contact Marc Furman or Ericson P. Kimbel at [email protected] or [email protected], respectively.

Marc Furman is a part-ner and Chair of the La-bor & Employment Group at Cohen Seglias Pallas Greenhall & Furman, PC. He focuses his practice on representing and counsel-ing both union and non-union employers through-out 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 concen-tratess his practice in con-struction litigation, arbi-tration and mediation, representing subcontrac-tors, contractors, design-builders and construction managers on public and private projects. ■

By Marc Furman and Ericson P. Kimbel

PA joins NJ in crackdown on Independent Contractor Misclassifi cation in construction

T

Marc Furman Ericson P. Kimbel



n unpublished decision rendered in March of this year by the Su-

perior Court of Delaware in the case of Menkes v. St . Joseph C h u r c h , 2 0 11 D e l . Super. Lexis 141 (Del. Su-per. Mar. 18, 2011) (“Menkes”) serves to remind the contractor and his counsel of the signifi cance of indemnifi cation and standard of performance clauses in con-struction contracts governed by Delaware law. While the legal questions presented in Menkes were answered by Delaware precedent, the decision high-lights the need for well crafted indemnifi cation and standard of performance clauses which heed the instruction of such precedent.

In Menkes, an employee of a subcontractor (the “Sub”) fi led 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 de-fendant. The General fi led a Third Party Complaint against the Sub asserting, among other things, that the Sub had a con-tractual obligation to indemnify, defend and hold harmless the General from the employee’s claim. The owner fi led a Third Party Complaint against the Sub alleging that it was a third party benefi ciary of the contract between the General and the Sub, and therefore, was also entitled to indemnifi cation.

The Menkes decision ad-dressed the Sub’s motion to dismiss the Third Party Com-plaints.

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 indem-nification clause requiring the Sub, in general terms, to indemnify the General for all claims resulting from, “arising from” or “occurring in con-nection 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 indemnifi cation provision was

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 indemnifi cation clause to the extent it required the Sub to indemnify the Gen-eral or the Owner for their own negligence. Id. at *10. However, upon consideration of the par-ties’ arguments concerning the application of prior Superior Court1 and Delaware District Court 2 caselaw, the Court de-termined that the severability clause in the contract allowed the Court to strike the invalid portion of the indemnifi cation

clause and render the remain-der enforceable. Id. at *13. The Court concluded that sever-ability 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 indemnifi cation provision that could be deleted without impacting the lan-guage requiring the Sub to in-demnify for its own negligence. Id. The import of the Court’s decision was that the indemni-fi cation obligations of the Sub mandated by the remainder of the indemnifi cation stayed

intact. The Menkes Court also rejected the Sub’s motion to dismiss the Third Party Com-plaints on the grounds that the complaints were precluded by worker’s compensation exclu-sivity. Worker’s compensation exclusivity pre-empts tort ac-tions by employees against their employers for work re-lated injuries. Id. at *14. The Court determined that the indemnifi cation claims of the General and the Owner were grounded in contract rather than tort theory. Id. at *18. The Court found that the con-tract between the Sub and the

By Veronica O. Faust, Bifferato LLC

The signifi cance of indemnifi cation & standard ofperformance clauses in construction contracts

A General contained the terms required by Delaware law to render a basis for the claims of the General and the Owner for indemnifi cation 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 workman-like manner; and (ii) indemnify the third-party-indemnitee for any claims arising from the em-ployer-indemnitor’s own neg-ligence.” Id. at *15-16 (citing Precision Air, Inc. v. Standard


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he BasicsEnvironmental risks

abound in the world of commercial real estate. The source of such risks in real estate transactions includes the p u r c h a s e , sale or rede-velopment of real property. Risks may also crop up from the realm of day to day operations, global envi-ronmental threats, and a range of other factors.

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

Businesses, property owners, developers, tenants and lenders are increasingly faced with the prospect of fi nding tools to help manage environmental risks. One such tool is a specialized environmental insurance policy designed to cover environmen-tal risks that are not generally covered under traditional gen-eral liability policies.

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

Somewhat akin to a general li-ability policy for environmental claims, PLL policies fi rst gained popularity in the 1990s as a re-sult of sustained interest in the redevelopment of contaminated properties.

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

arising from bodily injury and property damage related to such contamination, and de-fense costs. Insureds may also elect to purchase additional coverage for business interrup-tion, 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

T important to note that the full policy premium for the entire term, which can be signifi cant 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 typi-cal “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 Envi-ronmental Site Assessment, and must complete an ap-plication which calls for the full disclosure of information concerning the environmental status of the property to be in-sured. When purchasing a PLL policy, also be mindful of op-portunities 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 of-fering environmental products has grown signifi cantly, 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 op-portunity side, buyers will fi nd 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 compe-tition, some insurers have been improving and enhancing their policies. Certain carriers now offer coverage for emergency response costs, crisis man-agement 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

Ann M. Waeger



CONSTRUCTION LAW & COST OVERRUNSBy Robert R. Watson, Jr., Eastburn and Gray, PC

Manage Mechanics’ Lien Lawsto limit claims exposure

Mechanics’ lien laws are designed to af-ford a contractor, sub-

contractor or supplier who provided la-bor or mate-rials in the improvement of real estate some level of payment pro-tection when the party who directly owes payment fails to abide by its ob-ligations. While lien laws vary from state-to-state, there are still opportunities under each statute to limit exposure.

Delaware law absolutely pre-vents any waiver of lien rights in advance of construction. Nev-ertheless, owners and develop-ers 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 fi le a lien claim for that same work. If not secured contemporaneously with payment, a subsequently-secured 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 pro-vided within 10 days, that GC or sub may be prevented from fi ling a lien claim.

Virginia does permit waivers of liens in advance of construc-tion, 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 Virgin-ia law, a subcontractor or sup-plier will not be held bound to an advance lien waiver unless it expressly agrees to accept the general contractor’s waiver. Merely incorporating the lan-guage of the prior contract is insufficient. Under Virginia law, an owner will only be liable to subcontractors for amounts not paid to the prime contrac-tor, and the same applies when considering contractor liability to sub-subcontractors.

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

biggest threat of a lien claim to owners, so the fl ow of pay-ments to all who are supplying labor or materials must be monitored.

New Jersey’s construction lien law recently received a dramatic overhaul. The Gar-den State has in recent years adhered to the “lien fund” theory, which affords owners assurances against over- or double-payment for improve-ments to property by calculat-ing 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 rec-ognize a fi nite lien fund, and advance waivers on commercial projects are ineffective. How-ever, a careful review of the statute reveals that a rarely-used 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 writ-ten notice or by recordation in the county where work is

performed, a lien claimant’s re-covery can be limited to its pro-portionate share of the original contract price. It has been sug-gested that simple “fl ow-down” provisions from a general con-tract to a subcontract should satisfy this requirement, and limit owner exposure, but this theory has not been tested by the courts.

The above-referenced provi-sions only scratch the surface of lien law complexities for com-mercial owners and developers. Complex notice, fi ling and tim-ing requirements vary signifi -cantly state-to-state, as do the requirements for residential

and public construction which are not addressed here. Never-theless, 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 con-sult 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 East-burn and Gray, PC, in its Blue Bell, PA offi ce. ■

Robert Watson, Jr.

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The New Jersey Apartment Association

is a statewide organization of

apartment owners, managers, builders and those involved in allied industries,

who are dedicated to maintaining and improving existing properties and

promoting and producing new and affordable apartments throughout New Jersey.

President

Jeff Smith,

Kriegman & Smith

Regional VP North Jersey

Brent Kohere,

Home Properties

Regional VP Central

William Dailey,CPM

CIS Management Inc.

Regional VP South

Joe Spadaccini

The Kamson Corporation

VP Associate Affairs

Ray Fiorica

AFR Furniture Rentals

Legislation VP

Michael C. Haydinger

First Montgomery Group, AMO

Treasurer

Lynne Aber

Bertram Associates

Secretary

Stephen Waters

Morgan Properties

New Jersey Apartment AssociationAdvance & protect the welfare of the apartment industry in NJ

Education MattersBecome a Certifi ed Success with an NAA Designation Program!Education for Maintenance: CAMT Designation

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In June 2010, NAAEI’s CAMT program achieved accreditation by the American National Standards Institute (AN SI),

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for NJAA’s 2011 CAMT will be held at NJAA Headquarters in Monroe Township, unless otherwise noted. CAMT meets

credentials for NAHMA’s NAHMS and NAHMT certifi cations. Fees: CAMT Discounted series fee: $800 Member,

$1000 Non-member; CAMT Module fee: $100 Member, $150 Non-Member

Visit www.njaa.com for complete details.

Plumbing I & II - April 27 & 28 at RestoreCore in EdisonPresented by Mike Goldberg, RestoreCoreHeating, Ventilation and Air Conditioning (HVAC) I & II- May 4 & 5Presented by Stan Szafranski and John Phillips, Morgan PropertiesElectric I & II- June 8 & 9Presented by Mike Goldberg, RestoreCoreInterior & Exterior Maintenance I & II - July TBD Presented by Stan Szafranski and John Phillips, Morgan Properties

2011 UPCOMING EDUCATION SESSIONSAugust 16 & 17 - Fair Housing & Beyond presented by Doug Chasick, CallSource

September 20-22 & October 18-20 - CAM Slam presented by Jackie Ramstedt, Ramstedt Enterprises

November 10 - Interactive Multifamily Marketing - Monroe, NJ

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MULTIFAMILY

ultifamily owners and managers have done just about everything

they can to lower costs, from reduc-ing internal headcounts to renegoti-ating vendor c o n t r a c t s – and almost everything in between. Today, the market is beginning to feel a little bit better, and we are even see-ing 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 us-ing their existing accounting and property management systems.

Competition dictates that owners and operators must distinguish their apartment homes from neighboring prop-erties. 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 inno-vative 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 multi-family property. Conceptually, it takes the market rent for a typical unit and then adds to that pricing for features like

By Mike Mullin, Integrated Business Systems, Inc.

Now is an opportune time toemploy amenities-based pricing

M fireplaces, newly renovated kitchens, upgraded appli-ances, 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 fin-ishes.

Landlords can create these aforementioned “value packag-es” by highlighting the special characteristics in each home they have available for lease. The rent add-on they place on these specifi c features should be based on the price they can draw in the marketplace, not on what they cost to incorpo-rate. 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 specifi c home, rather than a unit type. In some cases, ten-ants are willing to pay more for the extras that matter to them. Again, this is not a new concept. Many multifamily operators already utilize ame-nities-based pricing. Some, however, are not taking full advantage of the ability to facilitate the different levels of pricing through their enter-prise software.

For example, IBS multi-fam-ily 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 indi-vidual features. This allows leasing professionals to easily access the data for marketing purposes. It also enables an easy audit – and potential up-ward adjustment – of current pricing.

Beyond that, the construc-tion 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

Mike Mullin

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 integrat-ed in systems like ours, requir-ing no additional fi nancial in-vestment. 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 fl agged 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 with-out any additional technology investment. Given the current economy and continuing bud-get pressures, the option to positively impact the bottom line is a welcome message. As the economy continues to rebound, renters will be will-ing 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 amenities-based pricing model can help owners and operations maxi-mize the profi tability of indi-vidual apartment homes by generating “value pricing.” The process of increasing revenues by adding value is relatively simple: determine which ame-nities 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 Sys-tems in Totowa, NJ. ■

BENSALEM, PA — The Or-bach Group acquired Hamilton Court East apartments a 192-unit rental property for $15.5 million.

Hamilton Court East con-sists 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 un-dergo the same type of exten-sive 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 port-folio,” said Meyer Orbach, the fi rm’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 South-eastern Pennsylvania.” ■

A 192-unit rental property in Bensalem, PA

Orbach Group acquires $15.5 million apartment

LIVINGSTON, NJ — With cap rates and per-unit pric-ing strengthening for existing class B multi-family product, the Bergen County market has become a favored destina-tion 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 con-siderable 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 com-parable combination of stable returns, with future rental upside and the tax advantages associated with multi-family ownership.”

In Fairview, Oropeza repre-sented the seller and identifi ed the buyer, a long-time Gebroe-Hammer 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 bro-kerage team.

Located near I-80, I-95, and Route 46, just minutes from the George Washington Bridge and Lincoln Tunnel, the horse-shoe-shaped garden apartment building features a landscaped courtyard, on-site parking and on-premises laundry.

This latest transaction fol-lows a strong performance by Gebroe-Hammer last year when the fi rm closed a total of 3,650 residential units in 53 multi-family transactions, of which 23 were distressed properties.

Gebroe-Hammer reports multi-familytenant pool & investments in good shape

While distress is atypical in Bergen County, Gebroe-Ham-mer recently orchestrated the note sale of a mixed-use prop-erty, highlighting this type of opportunity is still selectively available. The note, encum-bered by a 6,000 s/f converted offi ce building located at 570 Main St. in Fort Lee, was sold for $750,000 in an all-cash transaction.

“My client was eagerly look-ing for property in Bergen County and I’ve also been working with a local bank in-terested in selling this particu-lar 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-fl oor retail with mul-tiple tenants, as well as on-site parking.

“Bergen County is one of the most diffi cult markets to penetrate due to its high-bar-rier-to-entry for multi-family investment. As home owner-ship 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 Uranow-itz, managing director. “Offer-ing direct access to New York City, via the George Washing-ton 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 inves-tors as well as REITS, private equity fi rms and other institu-tional investors.” ■

GARFIELD, NJ — CB Rich-ard Ellis recently completed the sale of a multi-family prop-erty 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 de-ferred income and mutually fa-

CB Richard Ellis completes Bergen Cty. sale of multi-familyvorable returns for both parties, indicating an upward trend in multi-family sale activity and an overall healthier market-place within New Jersey,” said Berger. “Because of the quality of this asset, as well as its loca-tion 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 prop-erty 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 high-est ratio seen in the Garfi eld submarket over the past three years,” said Berger. ■


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PEOPLE ON THE MOVE

ILMINGTON, DE — The American Council of Engi-

neering Companies of Del-aware (ACEC-DE) recently presented Becker Morgan Group with a 2011 Engi-neering Excellence Conceptor Award for Milford Central Academy in Milford, Dela-ware. This award recognizes “engineering design innova-tion achievements demon-strating the highest degree of skill and ingenuity, while providing a signifi cant ben-efi t to the public welfare and the practice of consulting engineering.” With Lt. Gov-ernor Matthew Denn, Senator Chris Coons, and Tom Carper, former Secretary of DelDOT, in attendance, the awards were presented at the 2011 Annual Engineers Week Cel-ebration on February 17th at the DuPont Country Club in Wilmington.

As principal engineer and architect for Milford Central Academy, Becker Morgan

For Milford Central Academy in Delaware

Becker Morgan Groupreceives engineering awardW

Milford Central AcademyGroup provided a level of pro-fessional care that produced a state-of-the-art facility. Through an integrated design philosophy, a premier edu-cational institution was cre-

ated, under increasingly tight budget constraints, while multiple sustainable features that will realize ongoing cost savings for the district were implemented. ■

NEW MIDDLETOWN, Delaware — Willow Con-struction, LLC announced the hiring of Robert C. Nibblett (shown) as an estimator at the com-pany’s new Middletown, DE offi ce.

As estimator in Delaware offi ce

Willow Construction hires Robert Nibblett

He will be responsible for estimating work through-out northern Delaware and surrounding counties in the neighboring states of Mary-land and Pennsylvania.

Nibblett has spent his en-tire 30-year career in the construction industry. For the last eight years he was an estimator for Miken Build-ers, Inc. ■

ALLENTOWN, PA — Carol Schleppy has joined Valley-Wide Property Manage-ment, LLC as administrative assistant of building services for ValleyWide Property Man-agement.

Schleppy brings over 18 years of experience in the res-toration business including customer service experience in managing the insurance claims process for home own-ers, mortgage companies, and insurance adjustors.

Brian and Jeremy Eber-hardt have joined the com-pany as program managers for Barclay Contracting, a Division of ValleyWide Prop-erty Management.

Brian Eberhardt has over seven years of project man-agement experience in the

restoration industry and suc-cessfully completed several industry certifi cations. Brian is responsible for the estimat-ing, sales, project manage-ment and marketing of the Barclay Contracting Division of ValleyWide.

Jeremy Eberhardt is re-sponsible for residential and commercial sales, estimat-ing and project management for the Barclay Contracting Division of ValleyWide. He has over 14 years of experi-ence managing the insurance claims process, including 12 years of large loss restora-tion project management. Jeremy has completed several industry certifi cation courses directly relating to the res-toration and remediation processes. ■

ValleyWide PropertyManagement adds three

Carol Schleppy Brian Eberhardt Jeremy Eberhardt

TEANECK, NJ — Cassidy Turley announced that Terry Frassetto has joined its Som-erset offi ce as senior vice presi-dent of property management where he will be responsible for

Frassetto brings 21 years of experience to Cassidy Turleymanaging, leading and devel-oping 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 pro-mote its property management capabilities and platform. ■

ISLAND-I A , N Y — S t a l c o Construc-tion hired J o s e p h S o l l o c h (shown) as project man-ager.

Solloch joins Stalco ConstructionSolloch’s responsibilities en-

compass management of all pre-construction and construc-tion activities, including client relations, estimating, schedul-ing and logistics, bid package development, subcontractor negotiations, quality control, progress reporting, site work, and project turnovers. ■

EAST NORRITON, PA — Associated Builders and Contractors (ABC) recently awarded four Eastern Penn-sylvania Chapter members Pyramid Awards in ABC’s Excellence in Construction Awards.

ABC Eastern Pennsylva-nia Chapter members who received awards during the 21st annual Excellence in Construction Awards cel-ebration at the Waldorf As-toria hotel in Orlando, FL, included:

Allan A. Myers, Worcester – Myers Family Homestead

Four Eastern PA construction companies win awards from Associated Builders & Contractors

Jamie Morrison, senior project manager, accepts a Pyramid Award for two projects from Mike Uremovich, National Chairman of Associated Builders and Con-tractors.

F.A. Rohrbach, Allentown – Bethlehem Skateplaza in the Other Construction, less than $2 million category

Warfel Construction, East Petersburg – St. An-drew’s Church Expansion and Renovations in the His-torical Restorations, less than $2 million category

Wohlsen Construction, Lancaster – Manor East Healthcare Addition in the Healthcare, less than $10 million category, and Campus Square Offi ce Building in the Commercial, $5 to $10 mil-lion category. ■

in the Historical Restoration, $2 to $10 million category

Chlorine of Delaware, Inc., 654 A. 2d 403, 407 (Del. 1995)).

Evaluating and allocating the risk for property dam-age and personal injuries is a fundamental step every contractor should take in con-nection with a project. To the extent a contractor employs

indemnification clauses in its Delaware contracts to manage such risk, Menkes renders guidance to the con-tractor and his counsel to insure that such clauses hold up in Court.

1The General and the Owner relied upon Handler v. State Drywall Co., 2007 Del. Super. Lexis 295. Menkes, 2011 Del. Super. Lexis 141 at *10.

2The 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 prac-tices with Bifferato LLC in Wilmington and Lewes. She represents clients in trans-actional and litigation mat-ters involving real estate, business, commercial and construction law. ■

continued from page 11C

revisions commonly requested by an insured. These are all positive developments for an insured, so if you are consider-ing purchasing a PLL policy to address your risks, now is a good time to explore your

options.

Ann M. Waeger is a part-ner in the Westfi eld, NJ law fi rm Farer Fersko. She is a member of the fi rm’s Real Estate & Redevelopment practice group. ■

By Veronica O. Faust, Bifferato LLC . . .

continued from page 12CBy Ann M. Waeger, Farer Fersko . . .

2011 Offi cers & DirectorsPresident

Lisa KochanGrubb & Ellis

100 Passaic StreetFairfi eld NJ 07004

(973) [email protected]

Vice PresidentRon DeBiasse

Lone Eagle ManagementPO Box 1235

Madison NJ 07940(973) 377-7377

[email protected]

Robin-Ann JuronBergman Real Estate Group

555 Route One SouthIselin NJ 08830(732) 855-8600

[email protected]

Dave Cali, RPAAlfred Sanzari Enterprises

25 Main StreetHackensack NJ 07601

(201) [email protected]

BOMANEW JERSEY

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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: [email protected]

Website: www.bomanj.org

The Building Owners and Managers Association of New Jersey

The Building Owners and Managers Association (BOMA) ofNew Jersey is focused on providing the most comprehensive

member benefits available in any trade association.Why you should be here: BOMA provides excellenteducational programs designed to provide both the

seasoned professional and up and coming assistants withexpert skills in appropriating resources and managingproperties to maximize their value regardless of the

economy, invaluable networking opportunities, monthlymeetings 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 theresources BOMA New Jersey has to offer. Call now to

receive your informational package on how you too canbe on your way to become the real estate industry’s most

desired and indispensible professional.

The Building Owners andManagers Association of New Jersey

Lisa Kochan, President, BOMA New Jersey

KNOWLEDGE IS POWEREveryone 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 specifi c 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. 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 prospec-tive 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 fi elds. 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 pro-viders? 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 fi nancial 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 fi ve years” someone with excellent interpersonal skills — and specifi cally, 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 tak-ing 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 certifi cate agree that they have helped better position their corporation or organiza-tion 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 profes-sional 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 impera-tive for continued career growth that one keeps pace with industry changes. It is also just as important

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: 973-696-5634Email: [email protected] Website: www.bomanj.org

Lisa Kochan



May 12, 2011

ETH800:Ethics for the Real Estate Manager

Ethical decision making, resolution of confl ict of interest, preserving fi duciary

relationships, use of highest standards of integrity and professionalism in business.

Cost: $ 175.00 premier member; $ 200.00 classic member; $ 220.00 non-member.

Location:Interstate Realty Management Offi ces

Marlton, N.J.

Offered by IREM® SOUTHERNNEW JERSEY CHAPTER NO. 101

To register: www.irem101.org

May 11-13; 18-20, 2011

CID201: Common InterestDevelopments: Managing

Condominium Associated Properties

Unique and complex challenges ofmanaging 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


June 15, 2011

Fair Housing & Beyond

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

Location: AAGP Offi ces, Philadelphia, PA

Offered by

IREM® DELAWARE VALLEY CHAPTER NO. 3


Sept. 8 10; 15-17, 2011

RES201 for Affordable PropertiesPath to the Accredited Residential

Manager (ARM) Accreditation.

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: Hotel ML, Mt. Laurel, N.J.Offered by IREM® SOUTHERN

NEW JERSEY CHAPTER NO. 101To register: www.irem101.org

2011 OFFICERSNEW JERSEY CHAPTER NO.1

PRESIDENTSCOTT DALLEY, CPM®

ACCESS PROPERTY MANAGEMENT, AMO®

VICE PRESIDENTLAWRENCE SAUER, CPM®

TAYLOR MANAGEMENT CO., AMO®

SECRETARYMARK PHILLIPS, CPM®

PHILLIPS ASSET MANAGEMENT CO., INC.

TREASURERMICHAEL FRIED, CPM®

BOSTON PROPERTIES

DELAWARE VALLEY CHAPTER NO. 3

PRESIDENTJODY DIMPSEY, CPM®

JLD MANAGEMENT GROUP

PRESIDENT-ELECTMICHAEL CARR, CPM®

WELLS FARGO WEALTH MANAGEMENT

VICE PRESIDENTJERRY NEILL, CPM®

CB RICHARD ELLIS CO., AMO®

VICE PRESIDENTRICH SKOCZYLAS, CPM®

AIMCO

VICE PRESIDENTSTEPHANIE BURG-BROWN, CPM® CANDIDATEBSA MANAGEMENT CORP., LLC

VICE PRESIDENTANNE-MARIE NIKLAUS, CPM®

MADISON APARTMENT GROUP

SECRETARY/TREASURERINGO KRAUS, CPM®

CITIZENS BANK

SOUTHERN NEW JERSEYCHAPTER NO. 101

PRESIDENTSANDRA E. CIPOLLONE, CPMINTERSTATE REALTY MANAGEMENT CO., AMO

VICE PRESIDENTDIANE WERSLER, CPM® CANDIDATEINTERSTATE REALTY MANAGEMENT CO., AMO®

VICE PRESIDENTMARIA AVERY, CPM® CANDIDATEMANHATTAN MANAGEMENT CO.

SECRETARY/TREASURERPATRICIA BALDT, CPM® CANDIDATEWESTGATE MANAGEMENT CO., INC.

WWW.IREM.ORG

Institute of Real Estate Management

MAREjournal.com Mid Atlantic Real Estate Journal — Contractors, Owners & Managers — March 25 - April 7, 2011 — Inside Back Cover C

C Back Cover — April 22 - May 12, 2011 — Contractors, Owners & Managers — Mid Atlantic Real Estate Journal MAREjournal.com

















MAREjournal.com Mid Atlantic Real Estate Journal — April 22 - May 12, 2011 — Section D


SPRING PREVIEW

INSIDE:BRASLER PROPERTIES .....................................................IBC-DCAMPBELL CAMPBELL COMMERCIAL REAL ESTATE, INC.Art Campbell ...............................................................................4D

CB RICHARD ELLIS ................................................................ 11DCOHEN SEGLIAS PALLAS GREENHALL & FURMAN, PCAlexander F. Barth ...............................................................IC, 11D

CUSHMAN & WAKEFIELD

Brian Whitmer ...........................................................................13D

FINAL FLAT ROOF ..................................................................14DGERBER SOMMA ...................................................................16DGLOUCESTER COUNTY ..........................................................6D

GREEN BUILDING SUMMIT .....................................................9DJRS ARCHITECT. P.C. ...............................................................3D

MGZA

Mary G. Z. Severino .................................................................10D

Rebecca Machinga

Arthur Campbell

Scott MertzLibby Kavoulakis

Jonathan GlickDonna Bartynski

NAI MERTZ CORPORATIONScott Mertz .................................................................................7DODELL STUDNER .....................................................................1DTHE DEPAUL GROUPDonna Bartynski .........................................................................5DTHE METIS GROUPLibby Kavoulakis................................................................16, BCDWALTERS APPRAISAL SERVICES, INC.Jeffrey L. Walters ........................................................................4DWITHUMSMITH+BROWN PCRebecca Machinga, CPA ............................................................2DYARDI .........................................................................................8DSHELDON GROSS REALTY, INC.Jonathan Glick ..........................................................................12DSUN FARM NETWORK SUN FARM NETWORKMark Warner .............................................................................15D

Jeffrey Walters Mark Warner Brian WhitmerMary Severino

Inside Cover D — April 22 - May 12, 2011 — Spring Preview — Mid Atlantic Real Estate Journal MAREjournal.com

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2D — April 22 - May 12, 2011 — Spring Preview — Mid Atlantic Real Estate Journal MAREjournal.com

ACCOUNTANT

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

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

withum.com

BE IN A POSITION OF STRENGTH SM

s the commercial real estate market strug-gles to stay on its feet,

the arena is ripe with tax incentives for property own-ers to invest, upgrade and go green…

Tax bene-fi ts for green technology…

The great-est motivation for companies to pursue environmentally friendly practices is corporate image, for both customers and

By Rebecca Machinga, CPA, WithumSmith+Brown PC

Tax incentives to invest,upgrade and go green

T

RebeccaMachinga

shareholders. Tax incentives follow in importance and moti-vation. 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 produc-tion 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 Sec-tion 179D, is extended through

2013 and allows a deduction for the cost of ‘energy effi cient 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 benefi ts related to solar projects…

The Solar Tax Credit was designed to benefi t businesses that utilize alternative sources of energy. The credit is 30% of the cost of qualifying energy

property which uses solar ener-gy that: (a) generates electricity for heaters, cooling systems or provides hot water; (b) illumi-nates structures using fi ber op-tics 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 qualifi ed solar proj-ects is available. This benefi t originally expired in 2010, but was extended for 2011. Under the 2010 Tax Relief Act, the extension of these benefi ts will provide additional motivation for investment in solar energy

projects. Solar project equip-ment will also qualify for 100% bonus depreciation, allowing businesses to deduct 100% of the capital expenditures quali-fying as tangible personal prop-erty. Certain property is eligible for this benefi t through 2012; however However, the 100% bonus depreciation is reduced to 50% in 2012 and disappears in 2013.

Tax benefi ts for qualifi ed re-tail and restaurant property…

In an attempt to stimulate the economy, the 2010 Tax Act allows businesses to expense 100% of the cost of qualifi ed property through bonus depre-ciation 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 qualifi ed res-taurant 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 classifi ed as ‘dual character’ property under the qualifi ed leasehold improvement prop-erty class, the restaurant and retail property may qualify for bonus depreciation. Quali-fied leasehold improvement property includes interior improvements to a non-resi-dential building provided the improvement is made pursu-ant 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 fi rst placed in service. Certain costs do not qualify such as elevators, escalators, enlargements and structural common areas. Although history shows Con-gressional 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 im-perative in this area.

Rebecca Machinga, CPA is partner, practice leader - Real Estate Services Group of WithumSmith+Brown PC . ■


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he future values, trans-action volume and a clear identity of who

will be buying commercial of-fi ce buildings i n C e n t r a l Pennsylvania is very hard to predict at this period. With vacancy rates remain-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.

By Arthur D. Campbell & Jeffrey Walters

We are taking more time evaluating building owners than they are evaluating us

T Possibly a bigger question is will values of offi ce properties return to or even approach the prices

paid in 2006 / 2007 and how long will a property be on the mar-ket? There is currently little demand for acquisi-tions except

for users and those sales have most recently been for smaller properties under 10,000 s/f. Sell-ers 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 qualifi ed user/owners.

With little demand to acquire larger offi ce 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 offi ce sales is unem-ployment. With a vacancy rate between 15% and 20%, it will re-quire over 5,000 jobs being cre-ated 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

Arthur Campbell

factor.A recent search of offi ce build-

ings 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 build-ings 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’ reloca-tion 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. Nation-ally, 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 defi nitely are some lenders cleaning up their loan positions and working to bring existing loans in compli-ance 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, offi ce sales and oc-cupancy levels will increase and prices will gradually increase to refl ect 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 des-ignated MAI Member of the Appraisal Institute and pres-ident of Walters Appraisal Services, Inc. ■

CENTRAL PENNSYLVANIA COMMERCIAL OFFICE SALES

Jeffrey Walters


a section of the

MARE JournalP.O. Box 26, Accord, MA 02018

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fax 781-871-5299

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Publisher/CEOLinda Christman

[email protected]

Associate PublisherDianna Mallozzi

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Associate PublisherElaine Fanning

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ProfessionalServices

t’s no secret that the real estate market is constantly changing. It is something

that develop-ers through-out the city are cop ing w i t h a n d adapting to each day. As it does, savvy deve l opers are changing the way they approach prospec-tive 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 Residenc-es at Dockside serves as one of Philadelphia’s most unique condominium properties. There is a certain allure and privacy to our property that draws buy-ers into a completely different luxury condominium living experience.

We have recognized that as the real estate climate contin-ues to change, so should the way in which we interact and com-municate 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

CONDOMINIUM DEVELOPERBy Donna Bartynski, The DePaul Group

Keeping up with the market: Changingthe way your development communicates

I property in real time. We are hearing exactly what our cur-rent 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 infor-mation 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 fi rst move to Dock-side. We are diligently listening to all requests from our prospec-tive buyers and are committed

to providing the conveniences that are essential in suiting buy-ers’ needs in this ever-changing market.

As a result we are seeing traffi c 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 ameni-ties in a more immediate way than ever before.

I am looking forward to intro-ducing more innovative ways to satisfy our buyers’ needs and will continue to work with buy-ers 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 stan-dard in residential real estate of how to accommodate buyers on every level.

As we move through the

Donna Bartynski

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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.

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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 prop-erty management team. We at The Residences at Dockside are doing just that. I look forward to all that is ahead in the com-ing 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 Dock-side. ■


ECONOMIC DEVELOPMENT


GREATER PHILADELPHIA BROKER

s a market charac-terized by its sta-bility, commercial

real estate industry in S o u t h e r n New Jersey avoided the worst of the recent eco-nomic crisis. Given that 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 inter-est is concerned, things have picked up some steam in the fi rst quarter of 2011.

Among the primary com-mercial 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 consecu-tive 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 consecu-tive quarters with positive net absorption, the office market in South Jersey suf-fered a minor setback with a negative net absorption for the fi rst quarter of 2011. This could be due in part to an increase in asking rental rates. The average quoted rate for the fi rst quarter was $17.77, up from $17.20 at the close of 2010.

The retail market in South-ern New Jersey has yet to see a sustained period of recov-ery, 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 ask-ing rate in the fi rst quarter to $13.26.

In its Fourth Quarter South Jersey Business Sur-vey, the Federal Reserve Bank of Philadelphia found that business activity contin-ues to pick up – the activity index has remained posi-tive for a full year – but job growth remains stagnant. The overall outlook of fi rms in the region is considerably more optimistic, with 53%

reporting they expect con-ditions 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 fi rms 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 signifi cant portion of its federal stimulus funds to improvements to Southern New Jersey’s infrastructure will only help to bolster its appeal.

Multiple infrastructure proj-ects are underway across the region to alleviate longstand-ing 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

By Scott Mertz, NAI Mertz Corporation

Outlook for Southern New Jersey:Interest is up, will activity follow?

beachgoers.On the waterways, South-

ern 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 perma-nent jobs.

South Jersey will also ben-efit from the economic de-velopment 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 aggres-sively market the state as a business hub.

It remains to be seen wheth-er 2011 will be the year the Southern New Jersey market truly turns the corner, but with a marked increase in interest and efforts under-way to enhance the area’s infrastructure, the outlook is highly positive.

Scott Mertz, NAI Mertz Corporation. ■

A

Scott Mertz


SOFTWARE SOLUTIONS

ANTA BARBARA, CA — Yardi announced that senior housing

provider Bloomfi eld Senior Living has selected Yardi Voyager Senior Housing to manage its three-state port-folio of communities.

Bloomfi eld Senior Living will perform virtually every business function-including care management, clinical assessments, accounting, billing and marketing-from the fully integrated Yardi Voyager platform.

Senior Housing Platform

Bloomfi eld senior living gains comprehensive portfolio management with Yardi Voyager

“One reason we selected Yardi is its ability to make rent roll analytics available on an executive manage-ment dashboard, avoiding the need to compile data from various sources and spreadsheets. This allows us to receive current, reliable information that can help in-crease occupancy,” said Tony Kantor, director of fi nance for Bloomfield Senior Liv-ing. “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 effi ciently and improve our reporting capability.”

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 Bloomfi eld Se-nior Living from its data cen-ter. By providing this service, Yardi assumes responsibility for all application updates,

network security, hardware, bandwidth and infrastruc-ture, allowing Bloomfield Senior Living to focus on its principal business

“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 met-rics. Bloomfi eld also has the option to add capabilities, including online rent pay-ments and work orders, as

their portfolio expands,” said Eric Kolber, vice president of senior housing for Yardi.

About Bloomfield Senior Living

Family-owned Bloomfi eld Senior Living operates com-munities 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 fi ve senior housing properties in 2010 as it continued to expand its di-versifi ed, growing portfolio of independent living, assisted living and Alzheimer’s and dementia care communities.

The Graham Companies have selected Yardi Voyager as the new property manage-ment and accounting plat-form for their commercial and residential assets.

During a recent internal performance review, The Graham Companies con-cluded that managing an increasingly diverse portfolio that includes commercial and residential properties, golf and spa resorts, hotels and farming operations re-quired a new platform that would provide them more fl exibility.

“We have 500 commercial tenants and every lease is different, so Voyager’s abil-ity to accommodate all the various terms is very attrac-tive to us. Voyager will also handle our accounts payable and general ledger opera-tions effi ciently and calculate common area maintenance recoveries quickly and accu-rately,” said Andre Teixeira, executive vice president and chief financial officer for The Graham Companies. “For our residential proper-ties, Voyager will enhance enterprise-wide oversight and allow us to change pric-ing 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 op-erations,” said Terri Dowen, senior vice president of sales for Yardi. ■

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SPRING PREVIEW

n November of 2010, I wrote a piece for this publication in which I noted the obvi-

ous. “The uni-verse has re-ordered and business ob-jectives could not be clearer: spend as lit-tle money as possible and make money as quickly as possible.”

The message has not real-ly changed in the last three months, but --- something im-portant has: there is a trickle

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 build-ing 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, “value-added” 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 atti-tude of “spend little,” and “make money quickly!”

If we change the premise

slightly from “spend little” to “spend a little,” building own-ers, 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 offi ce sup-ply remains still evident?

The allocation of a small per-centage of funds for property im-provement can be the difference between a closing and a decline as the potential client compares the available properties. My company, among others, has de-veloped cost effective strategies for turning buildings from eye-sores 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 defi ne 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 prop-erty 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 some-thing in 2011. Potential buyers and tenants want a healthy space so consider refreshing your building with materials that can pitch the environmen-tal 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 ‘slapped-on” paint on a building can be identifi ed by layer, or if there are paint cracks combined with the cobwebs, it might be time to evaluate a strategy for refresh-ing the look of the building.

The difference between mak-ing the close on a new lease, retaining a tenant or making a sale could be the fi rst impres-sion your building gives your prospects. Provide power to your pitch by working with a team of appearance strate-gists 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. ■

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t is a great pleasure to present this fourth quar-ter report and the trend, no mat-

ter how mod-est, indicat-ing positive c h a n g e . There has been a gen-eral increase in activity throughout New Jersey. Commercial and industrial users generally feel a need to start the process of seek-ing change. Some need to increase their space while

NEW JERSEY BROKERBy Jonathan Glick, Sheldon Gross Realty, Inc.

New Jersey Market Report -Fourth Quarter 2010

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 over-seas suppliers is not a secure future. This feeling has start-ed to permeate the market place. The improvement in the State’s concern for busi-ness 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 confi dence will soon

be refl ected in the positive in-crease in business real estate here in New Jersey.

CoStar ’s Northern New Jersey Advisory Report cal-culated 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 abun-dant 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 proper-ties reported a vacancy rate of 12.5% a decrease from the 13.0% of the previous quarter, average lease rates remain al-most 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 transac-tions have increased com-pared to the previous year. Of buildings of 15,000 square

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 trans-actions 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 Offi ce 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 offi ce 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 North-ern New Jersey Offi ce prop-erties of 15,000 square feet or larger, total year-to-date transactions were up com-pared 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 offi ce properties have been a bit lower in 2010 aver-aging 7.21% compared to the same period on 2009 which was 7.81%.

While the numbers pre-sented in this report do not represent a “boom” in real estate, the activity has picked up. Among commercial Real-tors, Owners and Developers, they have experienced more inquiries, property inspec-tions and negotiations since the beginning of the year. They must now figure out ways to complete the transac-tions more quickly!

NOTE: Statistical Infor-mation for this article was provided by CoStar

Jonathan Glick is execu-tive vice president of Shel-don Gross Realty, Inc. ■

I

Jonathan Glick

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NEW JERSEY MULTIFAMILY

ptimistic” may be an understate-ment at this point

when it comes to describing the attitude toward the m u l t i - f a m -ily real es-tate climate in Northern New Jersey. As we head 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 fi rst-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 aver-age. In short, renter advantage is fading.

Why? Employment is strength-ening in Manhattan, within fi -nancial 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 – includ-ing Weehawken, Hoboken and Jersey City –absolutely are benefi ting.

The progress is tangible, and the investment market is re-sponding. Our team is in the last stages of transacting a $100 million multi-family asset in Hoboken, where the bid-ding competition was fi erce. At the recent, very well attended National Multifamily Housing Council’s annual meeting, ev-eryone seemed to be looking to make a deal. From the largest pension fund advisors to small private fi rms, investors of all sizes have money they want to spend.

Our main challenge in North-ern New Jersey is a continued lack of institutional quality deals to be had. Looking at the

By Brian Whitmer, Cushman & Wakefi eld

NJ Multifamily market returnsto pre-recession fundamentals

“O numbers historically, in the early 2000s, we saw an average of three or four class A communi-ties trade. In 2006, that number doubled. Core multi-family as-set sales came to a virtual halt in 2008 and 2009, but activity again picked up in 2010. Inves-tors face a delicate balance: If they put something up for sale they know they can get top dol-lar, 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, opportu-nities 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 mil-lion closed in 2010.

Additionally, the development pipeline has slowed signifi-cantly. 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 Har-rison, 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 walk-ing 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 fi nanced in 2007 – before the crash and a total lack of available construction fi nancing 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 fi nancing 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 North-ern New Jersey multi-family investment for the balance of 2011 remains to be seen. Yes, there is incredible demand in the market – the fundamentals

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continued on page 15D


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sult, created an environmen-tally friendly roofi ng product. 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 resis-tance in the coating performs

equivalent to a R-19 insula-tion and protects the build-ing from extreme weather

conditions and guaranteed to keep your building about 10 degrees less than outside temperatures.

Endorsed by the Green Energy Council and EPA Reg-istered, our product is clearly

good for the environment. Our product uses no petroleum but contains high refl ective 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 landfi lls. Besides extending a roof ’s functional life for up to 20 years, it also encapsulates the toxins in both metal and pe-troleum 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 con-scious. 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 addi-tion, 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.

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SOLAR INSTALLATION

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 gen-erating solar electricity de-livers exactly that proposi-tion, in many cases without any investment required. Beyond its obvious environmental and energy independence benefi ts, a solar installation brings strong eco-nomic benefi ts in the form of fi xed-price energy to the build-ing tenants, and hosting-lease payments to the landlord.

Best of all, these solar proj-ects offer a win-win solution for the many parties involved in the transaction. Commercial property managers are eager to fi nd 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 building’s tenants sign up for a fi xed price sup-ply of solar electricity – for 15 years! These generous benefi ts are realized through a Power Purchase Agreement, in which

By Mark Warner, Sun Farm Network

Solar installation bringsstrong economic benefi ts

I 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 com-mercial building’s roof, or on a specialized shade structure over the parking lot. The build-ing tenants agree to buy the solar electricity coming from the array – at a fi xed 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 fi xed price solar supply. Meanwhile, the landlord re-ceives an annual lease payment for putting their commercial building’s roof or parking lot to work – and additional benefi ts from signifi cant PR and differ-entiation for the building. Com-mercial real estate managers can frequently participate in helping to organize the project. Both the building owner and the tenant gain these benefi ts 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 benefi ts can now be realized by more modestly sized, main-stream customers. Almost any commercial building can now serve as a hosting site for clean, renewable solar energy – de-livering new revenues to the building owner, and substantial cost savings to the tenants.

Structuring these projects properly requires considerable expertise – combining demand-ing structural and electrical engineering, construction, fi -nancial problem solving, and long term operational support

of the system. The Sun Farm Network offered the fi rst gen-erally available fi nancing 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 frui-tion, 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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have dramatically improved. However, these positive trends are leading sellers to remain hesitant about marketing their properties until the improve-ment in operations begins to plateau. Coupled with uncer-tainties over interest rates and financing, these factors have kept the New Jersey market quiet so far this year. But look-ing ahead to the near term, an abundance of all-cash buyers should keep cap rates where they were in 2010 – 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 fl urry of deals in the second and third quarters of this year.

Brian Whitmer is director of Cushman & Wakefield, Inc.’s Metropolitan Area Capital Markets Group in East Rutherford, NJ. ■

continued from page 13D

By Brian Whitmer, Cushman &Wakefi eld . . .


By Libby Kavoulakis, The Metis Group

Unlocking valuein public sector assets

T

PUBLIC SECTOR ASSETS

he adverse effects of the economic slowdown have directly impacted

public sector revenues at all levels of government. W h e r e i n -creasing prop-erty values, j ob growth and develop-ment once fu-eled an influx of tax dollars, declining property values, fore-closures, 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 con-siderable holdings, but no liquid-ity 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 eco-nomically 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 vis-ible 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 benefi t a lo-cal jurisdiction, it is not a viable revenue-generator for state and local governments as the large scale asset is not common in their portfolios.

E n h a n c e d - U s e L e a s i n g (“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

assets with strong market de-mand 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 infi ll locations or locations along the paths of growth are natural can-didates. 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 hold-ings. This option was explored in many jurisdictions and is often used as a means to generate one-time capital. For example, the City of Newark recently entered into a sale-leaseback arrange-ment 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 in-heritance and estates. Alumnae donate farms, houses, small commercial buildings and land to their state school alma mater. The portfolio is vast and restric-tions 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 devel-opment programs, the servicing of the loan portfolios is often diffi cult and lax, as many contain repayment, inheritance and as-sumption clauses, thus clouding the payment stream. Regardless, where there is a portfolio, there is a capital market opportunity to bulk sale, securitize or oth-erwise generate funds from the portfolio for redeployment to cur-rent programs and needs.

There are assets under con-trol of the public sector that, if redeployed, are revenue sources for these jurisdictions. The dual benefi t of also reducing operat-ing and holding costs also con-tributes to the benefi ts. As all levels of government seek ways to stretch and reduce budgets, approaching real estate hold-ings from a profit-generating perspective may provide some solutions.

Libby Kavoulakis, The Me-tis Group. ■

Whether you’re a buyer or seller -We can make your dream come true

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MAREjournal.com Mid AtlanticRealEstateJournal—SpringPreview—April22-May12,2011—InsideBackCoverD

Back Cover D — April 22 - May 12, 2011 — Spring Preview — Mid Atlantic Real Estate Journal MAREjournal.com

www.themetisgroup.com www.lewisconsultinggroupllc.com www.themetisgroup.com www.lewisconsultinggroupllc.com

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Together, our firms provide the full spectrum of real estateadvisory and environmental advisory and remediationservices throughout the Mid-Atlantic (and nationwide).

T: 202.822.5080 T: 732.276.2420

4-22-11

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