Friday, May 22, 2015

King of Prussia's Nordstrom Rack to relocate

Natalie Kostelni, Staff Writer for Philadelphia Business Journal

Nordstrom Rack plans to relocate a store that now sits across from the King of Prussia Mall to the King of Prussia Town Center, which is about a mile away and under construction.
The new store will total 35,000-square-feet and is scheduled to open in the fall of 2016. Its current Nordstrom Rack at the Overlook at King of Prussia is slightly bigger at 45,000-square-feet and opened in 2002. It is on the second floor of a structure that houses a Best Buy.

Though not far from its current location, the company expects the move to be an improvement.

“We thought this would be a good opportunity to be part of new center and it will be a better location for our customers,” said a spokeswoman from Nordstrom Inc.
Nordstrom Rack will join Ulta Beauty at the King of Prussia Town Center, which is a 230,000-square-foot retail center off North Gulph Road in King of Prussia, Pa. It is being developed on 20 acres by JBGR Retail of Maryland.

Other tenants in the retail center haven't been disclosed though they are expected to be a mix of restaurants and stores.
Full story:

Firm developing wearable health monitors leaves Philadelphia for New Jersey

by John George Philadelphia Business Journal
Echo Therapeutics’ tumultuous four years in Philadelphia are over.
The formerly Center City-based medical device company has moved its corporate headquarters from its 7,900-square-foot-office at 8 Penn Center to a 2,800-square-foot office in Iselin, N.J.

• Saw its former CEO Patrick Mooney take of “leave of absence” and never return to the company

• Twice cut its workforce, first by 33 percent, or about 12 people, then by another 10, to conserve cash

• Suspended operations temporarily while it sough new funding sources

• Engage in a lengthy battle with largest investor, Platinum Management, that New York-based Plantinum ended up winning — which led to a new management team and a new board of directors being installed,

Earlier this month, Echo signed a lease for a 10,000-square-foot research and development facility in Littleton, Mass. The facility will replace the 37,000-square-foot research center it had in Franklin, Mass.

Echo expects to move into the new facility on or around July 1.
According to documents filed with the Securities and Exchange Commission, Echo ended last year with a staff of seven. It has since grown to 18 full-time employees.
Echo relocated its corporate offices from Franklin to Philadelphia in 2011. At the time, the company said the move was being made to accommodate expansion plans.
The company spent its four years in Philadelphia developing a non-invasive, wireless, continuous glucose monitoring system for hospitalized patients and for use by diabetics. The company’s new management is still working on the glucose monitoring system while also attempting to expand the use of Echo’s technology to the wearable fitness, weight loss and personal lifestyle product market.

In the company’s quarterly report issued last week, Scott W. Hollander, Echo’s president and CEO, stated the company was making progress on its product development efforts. Hollander, who was named CEO of Echo in December, noted the company has “implemented a number of cost reduction measures, including moving our offices to right-sized and less expensive facilities,” that won’t diminish Echo’s ability to execute its short-term and long-term plans.
Full story:

Thursday, May 21, 2015

Delaware Physicians Care Renews 19,000-SF Lease

Delaware Physicians Care, Inc., a healthcare provider, renewed its lease for 19,169 square feet in the Christiana Office Building at 252 Chapman Rd. in Newark, DE.

The two-story building totals 77,000 square feet. It was built in 1985, renovated in 2004, and sits on 3.3 acres in teh South New Castle County submarket.

Delaware Physicians Care occupies a portion of the second floor there. Other tenants include Nemours Health and Prevention Services, and Schaller Anderson, Inc.

Bunzl Philadelphia Signs 185,000-SF Renewal

Bunzl Philadelphia signed a 185,000-square-foot lease renewal to continue occupancy at 10814 Northeast Ave. in Philadelphia, PA.

The single-story, multi-tenant warehouse building was constructed in 1983 and sits on more than 13 acres in the Greater Northeast Industrial submarket. The industrial property totals 217,000 square feet and features 18 loading docks, one drive-in bay, and 22-foot clear heights.

Wednesday, May 20, 2015

Is the mall dead? Au contraire, says mall CEO

Jane M. Von Bergen, Inquirer Staff Writer

But isn't the mall dead, our photographer asked Joseph F. Coradino as we wrapped up his Leadership Agenda interview published in Sunday's Philadelphia Inquirer. It was like waving a red flag at a bull, because Coradino, the chief executive of a company which owns the Cherry Hill Mall, the Gallery, and two dozen other malls and shopping centers, leaped to his feet and ushered, or maybe dragged us, into his office.

There, framed and mounted on the wall in Coradino's sanctum at the Pennsylvania Real Estate Investment Trust, was the cover of a Time Magazine with the headline "Kiss Your Mall Goodbye."

The date?

July 20, 1998.

Not dead yet, evidently, cackled Coradino in triumph.

People think online shopping is killing the mall. If anything, retailers and online selling go together, Coradino said.

"WiFi, we think that's key," as a mall amenity, Coradino said. "When we think about customer amenities, we’re working on delivering merchandise to our customers. We have a mall app where you can download it, go into one of our malls and tell them you’re looking for a pair of blue leggings and they’ll tell you every store in that mall that sells them and what they sell for.

Question: That’s interesting.

Answer: So you, in essence, can replicate the Internet shopping experience.

Q. While you’re in the mall.

A. While you’re in the mall.

Q. Because isn’t that frustrating for retailers when customers go to the store to shop and then to the Internet to buy?

A. Well, that’s actually not the case.

Q. No?

A. First off, I’m going to ask you a question. What percent of retail sales occurred on the Internet last year?

Q. I don’t know.

A. Six percent.

Q. Wow, that’s all?

A. Yeah, that’s all.

Q. How do you know that?

A. It’s my business.

Q. Okay.

A. So people tend to relate to growth, because what you hear after the holidays the Internet growth grew at 20 percent and bricks and mortar sales grew at 4 percent. But the base that we’re growing at compared to what the base that they’re growing is ridiculous. If we’ve got Internet selling for the next hundred years, they won’t catch us. But you know what? That’s even a parochial view, because the real way to look at Internet sales and bricks and mortar sales is what we like to call omni-channel sales. So think about this for a moment. There are really like four pieces to a sale. There’s what’s called product discovery.

Q. Okay.

A. So what’s product discovery? You said today when you came in I decided to wear this today because I knew I was coming to a retail company. Well, what if you said to yourself two weeks ago, `I’ve got a meeting with that Joe Coradino and I want to get something special.'

Q. And my Temple shirt’s in the wash. (I threw that in because both Joe and I graduated from Temple.)

A. Yeah. And I saw something I liked. I want to see if I can find it. You’re going to go on your device there and you’re going to find it. There it’s going to be. You’re going to buy this multicolored dress that you found. That’s discovery. Then there’s some research. Then you say gee, I want to do some research. You say, you know what, touching is important. I want to see what this fabric feels like. So that’s moving into a research phase, a discovery phase where you feel it, touch it, etc.

Q. Now we’ve got to get to the buying phase.

A. So the buying phase can occur in bricks and mortars or online. It doesn’t matter. They’re both together because here’s another important factor: That is that retailers who have bricks and mortars presence do better online than those who don’t. So you’re seeing even Amazon opening stores. So I don’t think we’re in an either, or situation. I think what’s happening today is that we are beginning to cooperate with one another. Renews 483,000-SF Lease in Breinigsville

Amazon, Inc. has renewed its 483,200-square-foot lease at 650 Boulder Dr. in Breinigsville, PA.

Boulder Business Center is a 1 million-square-foot industrial building was constructed in 2002 on 67.9 acres in the Lehigh Valley Industrial submarket. It features an ESFR sprinkler system, 134 loading docks, four drive-in bays, 36-foot clear heights, and 3,000-amp heavy power.

Center City Medical Office Sells for $161M

by Steve Lubetkin,

833 Chestnut Street sold for $160.75 million. It's a 12-story, 705,061 square foot medical office building across from Thomas Jefferson University Hospital in Center City Philadelphia.

The seller was Digital Realty Trust.  HCP, a publicly traded healthcare REIT, purchased the asset.

Originally built in 1928 as an addition to the original Gimbel Brothers retail department store complex, 833 Chestnut was substantially renovated and is currently 92 percent leased.  The property’s major tenants include Thomas Jefferson Hospital, JUP, Thomas Jefferson University, Nemours Children’s Clinic, the US Government and Ballinger Company.  The total GLA includes approximately 60 percent clinical use, which continues to grow year-over-year.

In addition to Thomson, the HFF investment sales team representing the seller was comprised locally of senior managing directors Andrew Scandalios and José Cruz, and nationally by managing directors Michael Bennett and Philip Mahler who are team leaders of the medical office building group within HFF’s national healthcare practice.

“833 Chestnut is an excellent example of the synergies that exist between HFF offices.  Our local team realized it was more than just a general office deal; we enlisted the help of our healthcare group, put the best team on the field, collaborated keeping the client’s best interests in mind, and ultimately secured significant proceeds over and above for what a general office might have traded,” says Scandalios.

“We marketed this asset to all of the typical office buyers in the northeast but the demand for medical office simply priced those groups out of the market,” says Thomson.

“We had significant interest from all the ‘usual suspects’ in the medical office building space, as well as private equity, pension fund advisors, and even some foreign capital.  The size of the property can really move the needle for some of these groups.  Pricing was aggressive, and this transaction is a testament to how accretive the current MOB market is for sellers,” says Bennett.

“TJUH and its affiliates has significantly increased its presence in 833 Chestnut over the last seven years and now is the anchor tenant in the building, leasing over 50 percent of the net rentable area,” says Mahler. “This significant hospital-related tenancy created an opportunity for a medical office investor to develop a strategic relationship with TJUH which tremendously increased competition for this asset.”