Monday, December 5, 2016

Middle Market CRE Digest Northeast

by Steve Lubetkin,

Urban Land Institute Philadelphia, Mitchell Roschelle of PriceWaterhouseCoopers unveiled his annual industry outlook, with 82 percent of his survey respondents expecting a good or excellent year for profits in 2016, and just over 81 percent feeling that way for next year. Small developers are now facing a beauty pageant as global investors seek access to previously less-well noticed markets, Roschelle says.

 Industrial properties continue to froth and bubble as retailers, e-commerce companies, and others press for close-in access to the New York metroplex and its tens of millions of impatient consumers who want what they want and want it now. The feverish activity in the eight New Jersey Turnpike core submarkets has accounted for 82.8 percent of the state’s leasing velocity thus far in 2016. “We’ve witnessed positive industrial absorption in 22 of the past 24 months, which speaks directly to the sustained demand from tenants and their need to service the vast surrounding consumer base. As consumers increasingly gravitate towards making purchases online, the demand for industrial space in specific New Jersey locations will continue to grow.”

Building Blocks
Wawa has opened its newest Philadelphia store at 1900 Market Street. At approximately 7,000 square-feet, it’s Wawa’s largest street store to date, and its fifth Center City location. It is situated on the ground floor of Brandywine Realty Trust’s recently renovated 456,922 square-foot office building in the booming Market Street West corridor.

ACME Markets and real estate development firm, The Goldenberg Group, have signed a lease to construct a new supermarket in Philadelphia.  The new full-line grocery market will be located in the Snyder Plaza Shopping Center, 29 Snyder Avenue, and will serve the Pennsport and Whitman neighborhoods as well as the greater Center City area.  The new ACME, which opens in Summer 2017, will include Starbucks Coffee and a beer and wine shop.

Money Moves
Holliday Fenoglio Fowler arranged $6.061 million in financing for a 178,600-square-foot, vacant industrial warehouse at 4500 Westport Drive in Mechanicsburg, PA. HFF worked on behalf of the borrower, a joint venture between Foxfield Ventures and Novaya Real Estate Ventures, to secure the floating-rate loan. The financing facilitated both the acquisition and future funding needs to implement a light capital improvement program.

Wednesday, November 30, 2016

Ross Leases 26,000-SF Retail Space at Imperial Plaza

Ross Dress for Less, a discount clothing retailer, has signed a lease for 25,832 square feet in the Imperial Plaza shopping center at 3400 Aramingo Ave. in Philadelphia, PA.

The retail center totals 119,883 square feet. Kode Development Associates developed the property in 1995 on seven acres in the Northeast Philadelphia submarket. Other tenants in the plaza include Ihop, Modell’s Sporting Goods and Rainbow.

Dalian on the Park Goes on the Market

Dalian on the Park, part of the Rodin Square development overlooking the Benjamin Franklin Parkway in Philadelphia, has been placed on the market.

It is the newly-constructed, 293-unit, 5-Star multifamily property at 501 N. 22nd St.

The property, which just opened to renters in recent months, is currently approximately 30 percent leased. The 10-story building, which features a 55,000-square-foot Whole Foods in the ground-floor retail portion, was built by Dalian Development. It is estimated that the property, which sits on three acres behind the Rodin Museum, could go for as much as $180 million.

Connell Foley Leases 71,000 SF at Roseland II

New Jersey law firm Connell Foley has leased 71,000 square feet in the Roseland II office building at 56 Livingston Ave. in Roseland, NJ.

The tenant will relocate its New Jersey headquarters from its nearby location in Roseland after 30 years there, taking space on the first and second floors of the building in spring 2017 when it joins Lowenstein Sandler LLP, Brown & Brown, ME Safris and Magone & Company in the property. Additional space on the second floor and 51,000 square feet on the fourth are still available for lease.

"Our previous location served as the foundation for the growth of our firm," said Philip F. McGovern, Jr., managing partner of Connell Foley. "In continuing to build our platform for the future, we were attracted to 56 at Roseland as it is a tremendous fit from the standpoint of location, building amenities, services and technological capability."

New York-based Gensler will handle Connell Foley's build-out, with 58,000 square feet on the first floor featuring main conference rooms, attorney offices and support operations with its second-floor space housing the firm's working cafe, additional offices for the legal team and administrative workspaces.

Built in 1982, the four-story, 433,945-square-foot, 4-Star office building sits on 55.8 acres in the Suburban Essex / Rt. 280 submarket of Essex County, within the Prudential Business Park. Mountain Development Corp. (MDC) and Square Mile Capital Management paid Merck & Co., Inc. $18.1 million, or about $42 per square foot, for the asset back in December 2011.

MDC and Square Mile have invested nearly $50 million in upgrades and capital improvements to the property, which now features new furniture and flooring, upscale fitness center, cardio/yoga studio, lockers and shower area, a green roof and a professional, 56-acre campus with hiking trails, volleyball, walking paths and an outdoor fire pit and lounge area.

Lowenstein Sandler, another area law firm, recently leased 170,000 square feet in the building and its space is currently undergoing build-out by Manhattan-based Marner & Associates, with a 2017 move-in.

Lowenstein Sandler’s managing partner, Gary Wingens, said, "Our firm is excited to be joined by our colleagues from the Connell Foley firm at 56 Livingston. The building offers first class amenities, such as a new high-end gym and dining and catering facilities designed for professional service firms."

Monday, November 28, 2016

Burlington Leases 42,000 SF in New Castle

Burlington Coat Factory signed a lease for 42,443 square feet in the Brandywine Commons II shopping center at 1000 Rocky Run Pky in Wilmington, DE.

The 165,792-square-foot shopping center was built in 1993. Burlington’s lease includes the anchor space.