Update Spring 2013

C o n t r a c t o r s • C o n s t r u c t i o n M a n a g e r s • D e s i g n B u i l d e r s

Signif icant ROI for Reposit ioning Cl ients

Today’s Norwood Stronger Than Ever

Passion for Sustainable Bui ldings

Entering the Gaming Sector

Corporate Interiors - Creat ing Vibrant Work Spaces

Warehouse / Distr ibution Sector Continues Resurgence

Variety of Healthcare Projects Represent Ful l Continuum of Care

As the recent “Great Recession” made a deep and lasting impact on the commercial and industrial real estate market, a trend toward recycling or “repositioning” older real estate assets for value-add investors gained momentum. A combination of

factors—which included tightening lending standards and lessening demand for large blocks of space—created a difficult market for developers to initiate new investment grade office and industrial projects. Recognizing this need, Norwood is partnering with owners

and developers of older assets to help bring value and insight to their building repositioning projects. “The results speak for themselves, as most of Norwood’s repositioning projects have achieved leasing absorption rates that

“Most all of Norwood’s repositioning clients

have enjoyed a leasing absorption rate that

outpaces competing properties.”

outpace competing properties,” said Tim Kelly, Norwood Vice President. One of our most prominent repositioning projects is the Arborcrest Corporate Campus in Blue Bell, PA. Working on behalf of an out of town real estate investment trust (REIT) that was seeking the insight of a locally-based building partner, the Arborcrest master plan calls for the phased repositioning of a 140-acre corporate campus that dates back to the 1960s. Originally the headquarters of Sperry-Univac Corporation, the site includes several buildings that encompass approximately 800,000 square feet of space. Collaborating with the developer, broker Jones Lang LaSalle and a team of designers and advisors, phase one entailed the repositioning of a 220,000 square foot, four-story building. Known as Lakeside I, this

this issue:

Continued on page 2

In times of economic uncertainty, people strive to do more with less. As a seasoned professional in the construction industry, I personally have weathered several economic downturns, but certainly nothing like the “Great Recession”. For me, the recent challenging times have served as a stark reminder of the need for an organization to embrace its core values while integrating the innovation and adaptability necessary for ongoing success. Because we pride ourselves on taking a true partnering approach with all of our projects, the success of our business is closely tied to the success of Norwood’s long term clientele and similarly, their ability to adapt and change. In an effort to meet the needs of today’s market, many companies have made the choice to reposition their existing real estate, essentially recycling their current facilities, instead of constructing new, out-of-the-ground buildings. Our expertise with renovations and corporate interiors dates as far back as our company’s nearly 40 year history, so it was not a difficult transition to match our talents with the market’s changing needs. This experience coupled

with our focus on sustainable construction enables Norwood to extend the economic and environmental benefits of facility re-use to our clients. Aside from general economic hardship, an industry facing great challenges is healthcare. As providers struggle to adapt to changes being brought forth due to the implementation of The Affordable Healthcare Act, aka “ObamaCare”, the impact – both positive and negative - will undoubtedly be felt in the coming years by many service providers, including the construction industry. Fortunately, as the economy continues to recover and there is a gradual return to normalcy, we are experiencing a significant increase in out-of-the-ground construction due to greater availability of capital and a pent up demand for need-specific facilities across all of the industry sectors that Norwood serves. In this issue of Norwood Update you will read about our efforts to fulfill the needs of our clients through building re-use, sustainability and comprehensive renovation/expansion projects. You can also read of several capital projects in the warehouse/distribution sector, our entry into the casino gaming sector and the ongoing work of our

Message from the President:

Today’s Norwood Stronger Than Ever corporate interiors and healthcare groups. Through the “Great Recession”, many firms in our industry had to compromise their standards, sold out, went out of business, or exist today in a weakened state. We are very fortunate that Norwood has emerged from the recession with a diverse group of professionals that, as a team, make us stronger than ever. While the last few years have been challenging, we have a very healthy backlog to support our efforts and are truly grateful for the ongoing support of our loyal clients as well as the opportunity to serve those that are new to us. Thank you for helping us endure these trying times and we look forward to being an extension of your team for many years to come.

John E. “Jack” FarrellPresident & CEO

BEFOREAFTER

Lakeside I @ Arborcrest Corporate Campus

LourdesCare at Cherry Hill

former single-user building was converted into a multi-tenanted facility that now serves as corporate headquarters for Unisys, a Fortune 1,000 global information technology (IT) services company. In addition to Unisys, Norwood completed interior build-out work for several other tenants, including the regional office for McDonald’s, and achieved 100% occupancy within one year of the completion of its repositioning. Phase two of the Arborcrest

project featured the complete renovation of a 115,000 square foot building now known as Hillcrest I. Norwood completed tenant improvement projects for multiple tenants including Zentek, Mayo Seitz Media, McGladrey, Lockton and OneBeacon Insurance, and the

building is now approximately 65% occupied. Phase three (Hillcrest II) includes 158,000 square feet of complete shell renovation and fit-out of a spectacular 10,000 square foot Amenity Center including a gym, food service component, conference center and a dramatic two-story lobby. Norwood is currently providing interior build-out services

Norwood Helps Bring Significant ROI to Building Repositioning ProjectsDesign/Assist and Design/Build Process Adds Value

for a 45,000 square foot outpatient healthcare and diagnostics center within Hillcrest II, which is now 65% leased. Following our success at Arborcrest, Norwood was chosen by

another developer for the comprehensive redevelopment of “CrossPoint” at 530/580 Swedesford Road in Wayne, PA.

This 265,000 square foot project will include a connector addition that will bridge two office buildings and feature a modernized precast and glass façade. Other features will include a two-story atrium lobby, a fitness center, a café and covered parking. Pre-leasing interest in the renovated facility has been very active and a headquarters tenant has been secured that will occupy approximately 80,000 square feet or about 30% of the newly modernized facility. Other notable repositioning projects include 100 Witmer Road in Horsham, PA which Norwood originally constructed in 1996 on behalf of a locally-based REIT for GMAC Mortgage. After GMAC consolidated multiple facilities into a newly repositioned 460,000 square foot headquarters in 2008, Norwood collaborated with the developer to modernize and convert 100 Witmer Road for multi-tenant use. The 140,000 square foot building achieved 100% occupancy in less than 18 months following the completion of the repositioning. In addition to base building work, Norwood acted as general contractor for interior build-out projects for tenants such as Kreischer Miller, New York Life, Kellogg, Emcare

The Norwood family was saddened by the passing of company co-founder Joseph Reichert, Jr., 81, on December 24, 2012. With partner George Congdon, Mr. Reichert established Norwood in 1975 in North Woodbury, NJ—thus the name “Nor-Wood.”

Working closely with developer Willard Rouse III and the partners of Rouse and Associates, Mr. Reichert guided Norwood through a period of intense growth before retiring in 1995. Among the notable projects built while he led the company are the Great Valley Corporate Center, North

The Norwood Company has a long history of advocating for sustainable design and construction in all projects that we undertake. Completing one of the first “Green” office buildings in the Philadelphia suburbs in 2001, Norwood became known as a local pioneer in the construction of sustainable buildings. Our commitment to environmentally-friendly facilities continued with the construction of Bucks County’s first LEED (Leadership in Energy and Environmental Design) Certified office building in 2006. In 2009, Norwood delivered a 1.1 million square foot LEED Silver certified light industrial facility for Church and Dwight in York County, PA. The facility remains one of the largest LEED industrial buildings in Pennsylvania and is used for the production and distribution of Arm & Hammer® consumer products. In addition to office buildings and light industrial facilities, Norwood’s diverse experience with sustainable buildings includes retail, life science/laboratory, corporate interiors, renovation and institutional projects. In all, Norwood has completed more than 10 LEED certified or LEED pending projects.We currently have three LEED projects under construction that encompass nearly $100

Norwood Bids Farwell to Co-Founder, Joe Reichert

Diverse Building Types Highlight Passion for Sustainable FacilitiesNorwood “Green Team” Spearheads the Effort

million in value, including a new 200,000 square foot build-to-suit office building, a 265,000 square foot office repositioning project and a large renovation/expansion of a beverage production facility, all of which have a goal of attaining LEED Gold certification. Today, Norwood’s advocacy of sustainable facilities is led by our “Green Team”, a group of passionate and dedicated professionals whose mission it is to offer our clients innovative project solutions through a holistic and proactive approach. A significant portion of our preconstruction and operations staff have earned the LEED AP or Green Advantage certification, enabling us to combine our in-depth knowledge of specific building types with that of the insight of experienced and educated personnel. This combination brings great value to our

clients throughout the planning, design and construction process. For example, in our role as Design/Builder on the Church & Dwight distribution facility, Norwood implemented an energy model that represented a 32% savings over conventional systems through the use of high efficiency boilers and a geothermal HVAC system with 20 wells. We also successfully diverted nearly 300 tons of construction waste from landfills through recycling efforts and implemented other programs that represent significant improvements in sustainable building construction and life cycle costs.

Norwood has entered into the casino gaming construction market with the hiring of industry veteran Robert “Bob” Marra and through the completion of our first project in the gaming sector. The multi-million dollar expansion and renovation at The Rivers Casino in Pittsburgh, PA, included improvements to multiple gaming and dining venues that enhance the overall experience for players and guests. Norwood constructed new High Limit Slots and Table Games rooms and renovated the Poker Room, VIP Lounge, restaurant and bar areas. The work was completed during off hours in partially occupied areas and under very tight schedule constraints.

Norwood Enters Casino Gaming Sector, Completes First Project and Hires Experienced

Industry Veteran to Lead Gaming Practice “We are pleased to bring Bob Marra to Norwood and to move forward with work in the casino gaming sector,” said Norwood President & CEO, Jack Farrell. “We are excited by the opportunity to expand our reach into a new industry.” Marra brings more than 25 years of diversified casino gaming construction and facility planning experience, including leadership positions with Tishman Construction, Boyd Gaming and Caesars Entertainment. He has been responsible for the completion of projects as large as $250 million, including work in Las Vegas, Atlantic City and Indiana.

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Building Repositioning ProjectsContinued from page 1

THINK GREEN.THINK NORWOOD GREEN.

America’s first Ikea store and the Lehigh Valley Corporate Center.

Norwood established offices in multiple states under Mr. Reichert’s guidance, including Pennsylvania, New Jersey, Maryland, Florida and Delaware. Over our history, Norwood has completed more than $3 billion in construction projects and remains one of the largest construction management companies based in the Greater Philadelphia Metropolitan area.

That is quite a legacy for Joe Reichert.

Colorcon, Inc. Global Headquarters & Technology Center

Rivers Casino

Hillcrest II @ Arborcrest Corporate Campus

Hillcrest I @ Arborcrest Corporate Campus

Holdings Inc., SAI Marketing, Topaz, Healogix LLC, Interactive Solutions, Bell & Clements LTD, and Aspect. “Perhaps our most dramatic transformation in a repositioning project is at One Brace Road in Cherry Hill, New Jersey,” said Tim Kelly, Norwood Vice President. “Using a Design/Build delivery method, we converted a 1964 vintage supermarket into a state-of-the-art ambulatory care center on behalf of a local real estate developer and their tenant, Lourdes Health System.” The existing structure was stripped down to steel, and the renovated building features a magnificent glass and stone façade with a large canopy in a convenient, attractive and welcoming environment. Norwood’s repositioning projects are not limited to office buildings. 100 Cascade Drive in Allentown, PA was a vacant industrial building that had fallen into receivership until being purchased by a value-add real estate developer. Norwood worked closely with the developer’s team on the building’s repositioning, and today the facility is significantly leased. “Value-add real estate developers are finding that Norwood’s diverse experience and Design/Assist

preconstruction method takes the risk out of the redevelopment process while facilitating the lease-up of their buildings,” said Jack Farrell, Norwood President & CEO. “For return on investment, Norwood’s success on repositioning projects speaks for itself.”

boards in the lobby, a game room, movie room, data room, employee cafe and water-wall. The newly renovated facility is registered for LEED Gold ID&C v3.0 certification.

Avantor Performance Materials HQ Center Valley, PAA 56,000 square foot corporate headquarters build-out included the coordination of all Pennsylvania RACP (Redevelopment Assistance Capital Project) requirements. The project was delivered in only four months.

With its easy access to much of the country, the Interstate 81 corridor through central Pennsylvania and its interconnected highways are fertile ground for companies to locate warehouses and distribution centers. In fact, Norwood has completed seven large scale logistics facilities of one million square feet or more in the Mid-Atlantic region, including a 1.1 million square foot, $60 million design/build production and distribution facility in York County, PA, for Church & Dwight, makers of Arm & Hammer® consumer products. Unfortunately, with the onset of the economic recession, this 2009 project would be the last million square foot distribution facility built in Pennsylvania for nearly four years. More recently, though, as the economy has improved and the glut of vacant distribution space has been leased, national and international investors are showing new interest and there is a resurgence in warehouse/distribution facility development due to increased demand by tenants. At Norwood, we have put our considerable knowledge and experience to work on several recent logistics center projects including build-to-suits, speculative construction, facility expansion, renovations and interior build outs.

McKesson Corporation - Clear Brook, VAActing as design/builder on behalf of a third party developer, Norwood is under construction on a 450,000 square foot

build-to-suit for McKesson Corporation, one of the nation’s largest pharmaceutical distributors. Located in Clear Brook, VA, the new facility will feature specialized materials handling equipment complete with pick/pack mezzanine, conveyors and portions of fully automated shipping and packaging. “This is an interesting and challenging project,” said Rob Risnychok, Norwood Vice President “involving conversion of a ‘spec’ designed facility to a complete build-to-suit facility using the design/build delivery method. A tremendous amount of real time collaboration and change management is required, including upgrades to the roof structure, foundations and floor slabs.” The project is scheduled for a mid-year completion.

Pactiv Corporation - Jackson, SCWe work hard at Norwood to bring value and foster long term relationships with all of our clients. One of our most loyal clients is Pactiv Corporation, the manufacturer of Hefty® bags and associated consumer products. Since completing our first distribution center project with Pactiv a decade ago—an 800,000 square foot facility in upstate New York—Norwood has traveled on behalf of Pactiv and its related companies to complete projects in Arkansas, Illinois, California and, most recently, Jackson, SC.

The project in South Carolina involved the renovation and expansion of an existing facility used for the manufacture and distribution of polypropylene products. The 100,000 square foot expansion involved significant site work to add capacity to the parking and docking areas. “We have long trusted Norwood for our projects due to their comprehensive understanding of distribution facilities and

ability to listen and deliver what we want and need,” said Reggie Goldsmith, Director, Operations Integration. “Our projects over the years have presented a variety of challenges, but the Norwood team consistently meets them and develops appropriate solutions.”

2251 Newlins Mill Road - Lehigh Valley, PAAs conditions in the distribution sector continue to improve, speculative development is also returning; and the Lehigh Valley is one of the most active regions. Acting as design/builder on behalf of a privately held developer, Norwood recently completed a 280,000 square foot speculative distribution facility just north of Bethlehem, PA. Known as 2251 Newlins Mill Road, the new facility includes 32 foot clear height, tilt-wall construction, single-sided loading, and multi-tenant capabilities. The facility was significantly leased shortly after construction was completed, showing once again that Norwood brings great value to developers of income producing property.

Warehouse/Distribution Sector Continues ResurgenceNorwood Active in Multi-State Projects

“We have long trusted Norwood for our projects due to

their comprehensive understanding of

distribution facilities and ability to listen and deliver what we want and need.”

When asked to identify their most important resources, companies rightfully point to their employees. It makes sense then, to equip staff with attractive and efficient workspaces—and Norwood’s corporate interiors group helps answer the need. Whether it’s creating a more efficient working environment, shaping the image of the company, attracting and retaining the best talent, lowering operating costs, facilitating collaboration or fostering innovation, the right workspaces can play a huge role in the success of an organization.

Corporate Interiors Division Creates Vibrant Workspaces Norwood has completed more than ten million square feet of corporate interior projects, including recent build out projects that have a combined construction value in excess of $200 million. The following are representative of our recent corporate interiors work:

AWeber Communications HQ Chalfont, PA This very unique 60,000 square foot headquarters for an email marketing solutions provider features dual sliding

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AWeber Communications HeadquartersLEED Gold Certification Pending

2251 Newlins Mill Road

Church & Dwight Manufacturing & Distribution Center

TYCO Fire ProtectionLEED Gold Certification Pending

Shire Pharmaceuticals HQ Chesterbrook, PAMultiple projects at Shire Pharmaceutical’s North American headquarters campus include a 65,000 square foot renovation and fit-out project. New work spaces with executive offices, conference rooms, open plan areas and an employee cafeteria have been completed and additional work is ongoing.

TYCO Fire Protection Divisional HQ Lansdale, PAA 40,000 square foot interior build-out designed to LEED Gold standards was completed. Open ceilings and bold colors accentuate this very vibrant space.

The healthcare industry has certainly been getting its fair share of press lately. Advancements in treatment, new technology and impending healthcare reform are driving a demand for new and more convenient delivery methods, faster service, lower costs and fewer medical errors. With these changes comes a need for newer, more advanced facilities that meet the patient care needs of today and the anticipated needs of tomorrow. For nearly 30 years, Norwood has been at the forefront of healthcare facility construction and planning, and we have been privileged to participate in a variety of state-of-the-art facilities that span the full continuum of patient care. Since 1996, Norwood has been partnering with Holy Spirit Hospital in Camp Hill, PA on both inpatient and outpatient

projects. Most recently, the focus has been on the modernization of

Holy Spirit’s existing facilities. Norwood has completed upgrades to Holy

Spirit’s pharmacy, renovated the behavioral health unit, completed five operating room modernizations, delivered numerous imaging projects, renovated several patient care wings, expanded the long term acute care unit, upgraded the PACU, and built a new interventional radiology unit. That’s quite a list. “We rely on Norwood for its capabilities to plan and execute all work with minimal disruption to our ongoing patient care responsibilities,” said Randall Newhouse, Holy Spirit Vice President. “The team at Norwood consistently delivers within our tight budgetary constraints and in compliance with Pennsylvania Department of Health standards.” While renovation projects in occupied hospital environments have been a key part of our work, we are also very experienced in large facility expansions. For example, Norwood’s work as the lead construction manager at Doylestown

Hospital in Doylestown, PA, resulted in one of the most advanced community hospital emergency departments in the nation. The all new ED features 39 private treatment rooms including two trauma-ready rooms, several imaging areas and a specialized chest pain center. Each patient room has its own bathroom and a flat-screen TV to create a convenient and comfortable family environment, which, in turn, allows for longer observation periods and creates greater patient care efficiencies. Norwood built a new inpatient unit with 40 private patient beds on the second floor above the new emergency department, and a new 500-car parking garage provides much needed parking capacity conveniently located near the hospital’s main services. “Norwood partnered with our leadership, facilities design team and many additional stakeholders, providing preconstruction services for nearly three years prior to ground breaking,” explained Ernest Werner, Doylestown Hospital Director of Facilities. “This commitment and attention

to detail helped create a facility that not only meets the needs of our community but also allows for adaptation to the changing nature of healthcare.” Also at Doylestown Hospital, Norwood worked in conjunction with Penn Medicine and a private developer to expand an existing outpatient facility. The centerpiece of the expanded facility is an outpatient oncology treatment center with a linear accelerator, open and private infusion therapy and a CT scanner. The new addition is also home to several other services including rheumatology, urology and a pharmacy. Norwood has also completed several non-clinical projects that support

“For nearly 30 years, Norwood has been at the forefront of healthcare facility

construction and planning... spanning the full continuum of patient care.”

Variety of Healthcare Projects RepresentsFull Continuum of Care

the delivery of services at a variety of other hospitals. At Abington Hospital & Healthcare Network’s Lansdale, PA campus, Norwood recently upgraded the data center to provide a pathway for increased digital recordkeeping. We also completed a major upgrade of the electrical utilities at St. Mary Medical Center’s Langhorne, PA campus, allowing for increased patient care capacity. On the outpatient front, Norwood has recently worked with a variety of independent and specialty providers on projects such as ambulatory surgery centers, diagnostic imaging centers and fully integrated medical office buildings. Acting as design/builder through a private developer, Norwood converted a 55,000 square foot facility for Lourdes Health System in Cherry Hill, NJ. The former grocery store is now a modern, state-of-the-art center equipped to offer residents pre- and post-surgical care, physician specialists, testing and a full radiology center. We have also completed work with Temple Health System, acting as general contractor on its new outpatient

facility in Oaks, PA. Our second project for Abington Health — a 45,000 square foot outpatient healthcare and diagnostics center in Blue Bell, PA, featuring an open MRI, CT scan, x-ray room, mammography room

and nearly 100 patient exam rooms — is now underway. The facility is located in a corporate campus environment to provide convenient access to nearby employees as well as local residents. Norwood’s three decades of healthcare construction and planning expertise span a full spectrum of projects. Our collaborative approach and holistic understanding of the business of healthcare brings insight and value to the construction and planning process. For many healthcare clients, Norwood has proven to be a resource and partner for success — well beyond that of a typical construction manager.

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UpdateSpring 2013

The Norwood CompanyContractors . Construction Managers . Design Builders

375 Technology Drive Malvern, PA 19355phone: 610.240.4400 / fax: 610-240-4499

www.NorwoodCo.comContact: Timothy Kelly, Vice President

LourdesCare at Cherry Hill

Doylestown Hospital