Friday, December 13, 2019

Smead Capital Management Picks West Conshohocken for East Coast hub

Jeff Blumenthal Reporter Philadelphia Business Journal
A Seattle-based investment adviser has selected the Philadelphia region for its East Coast expansion.

Smead Capital Management in January will open an office in West Conshohocken, saying it will serve as an East Coast sales hub to provide better service to clients across the eastern seaboard. By planting a flag in the northeast, Smead said it is also reducing the time needed for travel to serve clients in the region.

With just over $2.2 billion in assets under management, Smead is ranked No. 16 in the Puget Sound Business Journal’s latest List of the largest asset managers. In Philadelphia, that would be good enough for No. 23.

Smead’s decision to open an office in the Philadelphia suburbs is due to its attractive cost of living and housing, tax assessment in the region and accessibility to Smead’s client base via planes, trains and automobiles.

The office will be located at Four Tower Bridge — at 200 Barr Harbor Drive near the intersection of River Road and Matsonford Road. A spokesman for the firm declined to share the size of the office or length of the lease but said they plan to stay in the building "for the long haul."

Scott Herdemian, a 2011 graduate of Villanova University who has led East Coast sales for Smead since 2014, will oversee the office and receive a promotion to senior vice president. He will be joined by two other employees in building an East Coast team.
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Wednesday, December 11, 2019

Geodis Signs Large Industrial Lease in Allentown, Pennsylvania

Transport and logistics company Geodis has leased a 223,507-square-foot distribution building at Prologis Lehigh Valley West in Allentown, Pennsylvania.

The single-tenant facility at 7189 Ambassador Road includes 42 loading docks, two drive-in bays, 52- by 50-foot column spacing and a 32-foot clear ceiling height. Built by the landlord, Prologis, in 2018, the four-star property spans 25.3 acres less than 12 miles from Lehigh Valley International Airport.

Philly Office Tower Secures $388M Refinancing

by John Jordan
The joint venture of Nightingale Properties and Wafra Capital Partners has secured a $388-million in refinancing deal for its 1500 Market St. office tower from JP Morgan.

Sources closed to the deal say the loan includes a large component for leasing costs and other property improvements.
1500 Market St. is a 1,759,410 square-foot, Class A office and retail asset in the Market Street West submarket.

1500 Market is located in the heart of Philadelphia’s CBD, and is the only office complex in Philadelphia CBD that features its own on-site subterranean parking garage, as well as underground access to Philadelphia’s best-in-class transportation network (SEPTA). The complex’s Centre Square offers numerous food options, retail offerings, conference facilities and a fitness center.
1500 Market consists of two towers, rising 36 floors in the East Tower, and 43 floors in the West Tower, which are connected by a three-story atrium and a 450-spot parking garage that offers direct access to Philadelphia’s regional rail and subway lines.

The property also is known for the Claus Oldenburg “Clothespin” sculpture that stands at its front plaza and, as a result, it is often referred to as the Clothespin building.

“The Philadelphia office market has seen immense momentum and rent growth over the past few years and the well capitalized Nightingale and Wafra partnership is in ideal position to capitalize on the favorable market dynamics,’ says Walker & Dunlop’s Rosenberg.

The Nightingale/WCP JV is currently the second-largest office landlord in Philadelphia, the largest privately-owned office landlord in Philadelphia, controlling approximately a quarter of the office inventory in the CBD. Wafra is heavily invested in Philadelphia as Nightingale’s capital partner at 1500 Market, 1635 Market, 1835 Market and 1500 Spring Garden. Outside of their joint venture with Wafra, affiliates of Nightingale hold JV interests in The Bellevue and 1418 Walnut in Philadelphia, where it also serves as the property manager.

Tuesday, December 10, 2019

Real Estate Tax Calculation - How To Calculate Property Taxes For Commercial Real Estate (Video)

$70M Gift Will Lead to New Biomedical Research Facility at Thomas Jefferson University

by John Jordan
Thomas Jefferson University reports it has received a $70-million gift from philanthropists Sidney and Caroline Kimmel that will facilitate the construction of a new biomedical research building on the campus here.

“This gift will have a profound and lasting impact on Jefferson’s ability to further pursue scientific discovery,” said Mark Tykocinski MD, provost and EVP for academic affairs and the Anthony F. and Gertrude M. DePalma dean, Sidney Kimmel Medical College at Thomas Jefferson University. “The Caroline Kimmel Biomedical Research Building will serve as a magnet for scientific talent and will bolster our status as an R2 National Research University.”
The new facility will expand Thomas Jefferson University’s research capacity and, along with the Bluemle Life Sciences Building and Jefferson Alumni Hall, will create a “research corridor” along Locust Street.

Being physically connected with Bluemle will foster connections with researchers in the Sidney Kimmel Cancer Center, where Caroline Kimmel serves as a member of the Advisory Council, and the larger Jefferson research community.
The Kimmels have given more than $200 million over the years including: providing cornerstone funding to establish the Sidney Kimmel Cancer Center in 1995, as well as transformational support for research into the prevention of cardiovascular disease, and Jefferson’s largest-ever gift of $110 million to name the Sidney Kimmel Medical College at Thomas Jefferson University in 2014.

Sidney Kimmel established apparel company Jones New York, and during the 1970s and 1980s became one of the major players in the women’s apparel industry. Jones went public in 1991, adding many notable brands to its line including Anne Klein, Nine West, Gloria Vanderbilt and Stuart Weitzman. Kimmel served as CEO until 2003 and as chairman until 2014, when The Jones Group was sold for $2.2 billion.

Thomas Jefferson University is also home of the Kanbar College of Design, Engineering and Commerce, and delivers 160 undergraduate and graduate programs to 8,400 students in architecture, business, design, engineering, fashion and textiles, health, science andn social science.

Commercial Real Estate Vectors 2020 Part 1 & 2 (Video)

Part 1 Part 2

Friday, December 6, 2019

Black Friday, Thanksgiving Weekend Sales Bolster PREIT’s Strategy

by John Jordan
PREIT reports robust sales at its recently opened redeveloped properties during Black Friday and the Thanksgiving weekend.

The locally-based REIT states that sales during that prime selling period set up their recently opened redevelopments—Fashion District Philadelphia, Woodland Mall and Plymouth Meeting Mall—for a strong holiday season.
In just over two months since opening, Fashion District in Philadelphia has welcomed more than 2 million visitors, an achievement for a property marching toward stabilization. Upcoming openings of key destination tenants, including Round 1, Wonderspaces, Primark and Sephora are likely to bolster these results, PREIT officials state.

The opening of the highly-anticipated Woodland Mall expansion wing has been a success. Traffic for the Black Friday weekend was up 29% at the Grand Rapids, MI complex over the same period last year with many retailers reporting sales in excess of their goals.

Recent openings at the Woodland Mall include high-impact tenants, many of which are exclusive and new-to-market such as Von Maur, Urban Outfitters, The Cheesecake Factory, Tricho Salon and Black Rock Bar & Grill.

As part of its ongoing anchor repositioning effort, PREIT welcomed new retail, dining and experiential concepts for consumers at its Plymouth Meeting Mall. Most recently, Dick’s Sporting Goods, Burlington, Miller’s Ale House and Edge Fitness have opened their doors in the former Macy’s space. Benefitting from a strategic location in the Philadelphia suburbs, traffic was up 24% over last year’s Black Friday weekend at the shopping center in Plymouth Meeting, PA.

“The work we have done in strengthening our portfolio continues to deliver exceptional results,” said Joseph F. Coradino, CEO of PREIT. To experience this notable upswing in traffic at the properties where we’ve made significant investments is a testament to the strength of our strategy and the potential for a sustained, long-term impact on sales productivity and shareholder value.”