Thursday, September 21, 2017

Geodis Logistics, Penske Logistics Renew Full Bldg Lease in Chambersburg

Geodis Logistics LLC, a supply chain operator, has renewed its lease for 177,600 square feet in the industrial building at 1440 Sheffler Dr. in Chambersburg, PA.

In a separate transaction, Penske Logistics LLC, another supply chain management and logistics operator, has renewed its 177,600-square-foot lease for the other half of the building.

The distribution warehouse totals 355,200 square feet in the Chambers-5 Business Park. It was built in 1996 and is currently owned by Exeter Property Group. The asset remains fully leased to the two tenants.

Westover Companies Acquires Mt. Laurel Shopping Center

Westover Companies, a property management and ownership company, has purchased the fully-leased Towne Square Shopping Center at 860-892 Union Mill Rd. in Mount Laurel, NJ, from The Hampshire Cos.

The shopping center is anchored by a ShopRite super market and was built in 1996 and measures 88,265 square feet.

“Since acquiring the Towne Square Shopping Center in 2012, our strategy was to fully lease the property and secure a buyer within five years," said Igor Derbaremdiker, director of dispositions for The Hampshire Cos. “High demand for stabilized grocery-anchored retail product, the strong growth trajectory of the ShopRite grocery chain and Mt. Laurel’s favorable demographics made this the perfect time to sell and complete our investment strategy for the property.”

AJH Management Acquires 301-Unit Brandywine Hundred in Wilmington

AJH Management purchased the 301-unit Brandywine Hundred apartment building at 400-402 Foulk Rd. in Wilmington, DE for $52.4 million, or about $174,000 per unit, from a joint-venture partnership of Korman Residential Properties and CenterSquare Investment Management.

The six-story, 385,027-square-foot multifamily property delivered in 1959 in New Castle County.

Monday, September 18, 2017

Philadelphia's Mid-Year Industrial Deliveries, Construction and Inventory

During the second quarter 2017, 14 buildings totaling 5,075,807 square feet were completed in the Philadelphia market area. This compares to 13 buildings totaling 2,848,399 square feet that were completed in the first quarter.

There were 15,226,755 square feet of Industrial space under construction at the end of the second quarter 2017.

Some of the notable 2017 deliveries include: 575 Old Forge Rd, a 1,002,000-square-foot facility that delivered in second quarter 2017 and is now 100% occupied, and Goodman Logistics Center Carlisle Building 2, a 938,828-square-foot building that delivered in second quarter 2017 and is now 0% occupied.

The largest projects underway at the end of second quarter 2017 were FedEx Regional Hub, a 1,200,000-square-foot building with 100% of its space pre-leased, and United Business Park - Lot 6, a 1,200,000-square-foot facility that is not pre-leased.

Total Industrial inventory in the Philadelphia market area amounted to 1,089,388,733 square feet in 21,490 buildings as of the end of the second quarter 2017. The Flex sector consisted of 87,184,348 square feet in 3,444 projects. Within the Industrial market there were 2,723 owner-occupied buildings accounting for 233,021,749 square feet of Industrial space.

This trend is compared to the U.S. National Industrial deliveries, which saw 537 buildings totaling 64.42 million square feet completed in the second quarter, with 272.4 million square feet of industrial space still under construction across the country. Total Industrial inventory in the U.S. market area amounted to almost 22.2 billion square feet across more than 643,700 buildings, including 92,000 flex projects and 72,000 owner-occupied buildings.

Thursday, September 14, 2017

Hanover Ridge Buildings Set to Deliver

NorthPoint Development will complete construction next month on two new industrial buildings within its Hanover Ridge Trade Center at 600 New Commerce Blvd. in Wilkes Barre, PA.

Construction started in 2016, and when completed, Bldg 2 will total 842,880 square feet while Bldg 3 will total 358,498 square feet. Together the properties will offer a total of 120 dock doors, six drive-ins and 119 trailer spaces. NorthPoint expects to break ground on the 311,600-square-foot Bldg 4 in early 2018.

Ollies Bargain Outlet Coming to Mount Pocono

Ollies Bargain Outlet has signed a three-year lease for 29,679 square feet in the Mt. Pocono Plaza shopping center at 3236 Rte 940 in Mount Pocono, PA.

The shopping center totals 207,455 square feet and was built in 1990. It is currently owned by Heidenberg Properties. Other tenants include Weis Markets and Rent- A-Center.

Tuesday, September 12, 2017

Altitude Trampoline Park Jumping Into Carlisle Commerce Center

Altitude Trampoline Park, a growing trampoline facility, has signed a two-year lease for 31,756 square feet in the Carlisle Commerce Center at 2140-2150 White St. in York, PA.

Carlisle Commerce Center is a retail strip totaling 242,720 square feet. It was built in 1988 and is owned and managed by WRDC. Anchor tenants include Big Lots and Planet Fitness.

Monday, September 11, 2017

Monthly Economic Outlook – September 2017 (Video)

Executive Education Academy Purchases Allentown Facility

Executive Education Academy Charter School purchased the buildings at 555 Union Blvd. in Allentown, PA for $32.5 million, or about $110 per square foot, from a private investor.

Built in 1947, the five office buildings total 294,639 square feet. The Executive Education Academy was previously in the beginning years of a 12-year lease at the facility when they decided to purchase the building from the landlord.

PREIT sold the Logan Valley Mall in Altoona, PA

by Steve Lubetkin,

PREIT sold the Logan Valley Mall in Altoona, PA for $33.2 million. Since January 2013, the Company has executed methodically on the sale of 17 lower productivity malls as well as other non-core properties, generating over $750 million in gross proceeds.  Logan Valley Mall is anchored by Macy’s, JC Penney and Sears and generated sales of $324 per square foot compared to PREIT’s portfolio average (excluding this property) of $475 per square foot as of June 30, 2016. Separately, PREIT says three new retailers have opened at Viewmont Mall in Scranton, PA, where the company recast its anchor mix to further diversify and enhance the shopper experience. DICK’S Sporting Goods, Field & Stream and HomeGoods have recently opened within the space formerly occupied by Sears and proactively recaptured by PREIT. Within 14 months of Sears’ closing, the opening of these popular new retailers demonstrates PREIT’s proficiency in identifying and securing quality and high performing replacement anchors.

Friday, September 8, 2017

Five-Building Naaman’s Creek Business Center Trades To SSH For $16M

by Steve Lubetkin,
Philadelphia-based SSH Real Estate has acquired Naaman’s Creek Business Center for $16.22 million from a joint venture between Endurance Real Estate Group and Thackeray Partners. It is a 190,729 square-foot, five-building portfolio.

SSH Real Estate,  a privately held company, is known to have 11 assets worth about $458 million, according to proprietary research database Real Capital Analytics. The company was formed by Jeff Seligsohn, Peter Soens, and Robert Hess, and has been associated with $170 million in acquisitions in the past decade, Real Capital Analytics says.

“We are seeing strong demand for flex properties in good in-fill locations. Naaman’s Creek Business Center is the perfect example of this. In just two years occupancy increased nearly 60 percent, yielding a dramatic rise in value.  Functional and flexible assets, such as these play well in good, suburban locations surrounding by strong populations.”

“We are thrilled with the highly successful execution of this deal,” says Albert J. Corr, senior vice president of Endurance who handled the disposition on behalf of the seller. “The portfolio’s attractive setting and strong location enabled us to quickly stabilize it via multiple long-term leases to major tenants including a national furniture distribution company and multiple life sciences firms. This portfolio is consistent with Endurance’s acquisition strategy of acquiring functional buildings in strong in-fill locations.”

Endurance and Thackeray acquired the asset in February 2015 and executed a successful leasing strategy that increased occupancy from 30 percent to 89 percent. New tenants at the park include Zenith Freight Lines, the logistical arm of Bassett Furniture Industries, which took the entire 25,000 square-foot building at 25 Creek Circle, and Pentec Health, which leases the entire 35,000 square-foot building at 9 Creek Parkway.

The buildings, which range in size from 25,000 square feet to 60,000 square feet, are in a 125-acre business park, Naaman’s Creek Center. The buildings were constructed from the late 1990s through the early 2000s and feature all-masonry facades, 19-foot clear ceiling heights, and multiple configurations to accommodate a diversity of tenant requirements. The portfolio fronts Route 322, providing easy access to Interstate 95 and the Philadelphia International Airport to the east (a 15-minute drive), as well as Interstate 476, which presents a direct connection from Interstate 95 to the Pennsylvania Turnpike.

Wednesday, September 6, 2017

Is Philly's Office Downturn Fast Approaching?

by Matthew Rothstein, Bisnow Philadelphia

Philadelphia’s office market is nearing the end of its cycle. Sale prices are down, most properties likely to change hands already have and some under-construction buildings look to have been mistimed.

Although FMC Tower is all but fully leased and stands as a success story, 2400 Market St. right across the Schuylkill River has yet to land an office tenant besides its anchor, Aramark. Developers Lubert-Adler and PMC Property Group are rumored to be nearing an announcement on that front, but until then, over 200K SF of office space is available as construction continues.

 “From a pre-leasing standpoint, they did a great job [at 2400 Market], but the momentum hasn’t been maintained." 1100 Ludlow, one of two towers rising as part of the East Market development, has signed MOM’s Organic Market as a retail tenant and Bohlin Cywinsky Jackson and the Design Center as office tenants, but has not signed any new leases for months.

One Franklin Tower, also developed by PMC Property Group, was once the home of GlaxoSmithKline before the pharmaceutical firm moved to the Navy Yard, and its redevelopment to a residential/office mixed-use has yet to land an office tenant.

Older Class-A buildings in the central business district, like Liberty Place and 1735 Market — and even FMC Tower’s sister building, Cira Centre in University City — have large blocks of space available, giving prospective office tenants looking for top-of-the-line space options beyond the newest product. “The cost of construction was something that drove them to consider a previously existing building in the trophy market." As for those prospective tenants, that is a problem in itself. Most are out-of-town or suburban-based businesses looking to establish smaller, satellite office spaces in the city rather than establishing large headquarters. Buoyed by the Gateway Philly incentive program, that pool has become a “great class” of office users.

While it may seem like the issues slowing down leasing at under-construction projects translate to a glut of office space, the type of tenants that they and competitors like Liberty Place are targeting for large blocks have virtually no options beyond the ones mentioned, meaning Class-A office is still in a space crunch with low vacancy rates overall. “There’s always space available, and the trophy market is tight, but that doesn’t mean there aren’t options for tenants to leverage competition to get good deals in the marketplace."

 Even with few options, there do not seem to be enough large tenants shopping around to fill what vacancies there are. If a large company were shopping for space, it would not necessarily be common knowledge, but job growth projections and historical factors do not seem to be in Philly’s favor to add a substantial employer. The slowdown in leasing activity could be the result of a series of upcoming lease expirations, with tenants and landlords waiting to see just how the market shakes out in 2018 and 2019.

Most potential tenants are kept under wraps due to competition among brokers, but multiple sources confirmed that law firm Morgan, Lewis & Bockius’ lease at 1701 Market St. is expiring soon, and it is weighing a renewal against a potential move. In a few years, more space will potentially be available, and not just due to expirations. Once Comcast’s Technology Center is complete, the cable giant will exit certain blocks in nearby buildings to consolidate. That being said, we predict further expansion from the company to offset such exits, and perhaps even increase its overall footprint in Philly. “At some point, Comcast will grow, and they may restack and refurnish their headquarters in 2018. And you would think that would allow for [temporary moves] while the phasing takes place.” Alternatives to Center City could also provide more options for large tenants, further muddying the waters for Class-A landlords. The Navy Yard has copious space, tax incentives and extensive ability to build-to-suit, which is what drew GlaxoSmithKline out of Center City and could potentially do more of the same in the coming years. Camden’s under-construction waterfront project is also meant to entice potential office tenants away from Philly.

“[Camden]’s a little bit more of an outlier, but it’s able to do large projects as a function of the sites and tax incentives available,” Gilchrist said. “Whether it can pull from Center City remains to be seen.” Further into the future, projects like Schuylkill Yards and uCity Square are undoubtedly looking for pre-lease tenants for what promises to be the next wave of flagship and high-tech office buildings in Philly, closer to the talent base that Drexel and the University of Pennsylvania provide. By then, the next cycle will likely have begun. Until then, office sales are telling a similar story about Center City as a softening market. Velocity and average price have both declined sharply this year relative to 2016’s historic highs, but the CBD is losing ground to the suburbs.

Three office properties, two in Malvern and one in Conshohocken, have sold for well over $200 per SF this year, while not one in Center City has cracked the $200 barrier. The gap in price per SF between the city and the suburbs shrank from $41 in 2016 to $26 so far this year, and is projected to narrow further in the next 18 months. Part of the decrease in price can be attributed to a spike in business property taxes, anywhere from 35% to 155% for landlords to take effect next year.

Many could appeal the new assessment handed down by the city (the deadline is in October), but if the tax bill on a property is higher, “it’s going to have a huge impact on pricing. We haven’t seen anything really trade since this assessment went into effect, but it could definitely make investors cautious." If prices are dropping, some might think it would make investors more excited to jump in before they rise again, but the opposite is happening: The market has cooled down after the heat wave of trading in 2015 and 2016. “When you look at this cycle, you begin to realize that a lot of what was available to trade has traded by now. Whoever has wanted to jump in, pretty much has. There’s not much left to buy in the CBD, and subsequent to that, we’ve seen a lot of expensive trades in the suburbs.”

Industrial Real Estate Market Growth (Video)

This is an Atlanta based show but many trends translate to the Philadelphia Market

Tuesday, September 5, 2017

BridgeView at Manayunk trades for $4.9 million

BridgeView at Manayunk trades for $4.9 million. It's a 22-unit, class-A apartment building located at 171 Grape Street in the Manayunk section of Philadelphia, PA. Erected in 1918, the 22,000 square-foot, four-story elevator building was renovated in 2010. The building is fully sprinklered and includes 16 one-bedroom and 6 two-bedroom apartments with 27 onsite parking spaces.

The Harman Group to Design The Aloft Philadelphia Downtown

The Harman Group, a firm specializing in structural engineering and parking planning and design, designed The Aloft Philadelphia Downtown, a 179-room hotel coming to North Broad Street. The hotel, which is part of the Starwood Hotels and Resorts group, is an adaptive-reuse project occupying the historic Liberty Title and Trust building just one block from City Hall. Nearly 90 years old, The Liberty Title and Trust building, designed by the Philadelphia architectural firm Savery & Scheetz, was originally a bank headquarters before its final tenure as an office building for the Philadelphia Water Department. Outside of retail space on the first floor, the building has been vacant for over 20 years.

Friday, September 1, 2017

What's New to Industrial Real Estate (Video)

Office Landlord Strategies (Video)

The Future of Logistics, Ports & Industrial Real Estate Part 1 & 2 (Video)

Part 1 Part 2

Duke Realty Signs 3PL Tenant to 628,000-SF 33 Logistics Park Warehouse Delivered Last Month

Duke Realty Corporation has leased its recently-completed, 628,475-square-foot bulk warehouse in the 33 Logistics Park at 1611 Van Buren Rd. in Easton, PA to a leading third-party logistics company. Having leased up its second building in the park, Duke will now begin construction of a 1.02 million-square-foot speculative industrial building next door at 1620 Van Buren Rd.

33 Logistics Park is located on the east side of the Lehigh Valley, just off Route 33 at the new four-way diamond interchange with Main Street. 33 Logistics Park 1611 delivered in early July, and 33 Logistics Park 1620 will rise between 1611 and an adjacent 1.1 million-square-foot, fully-leased bulk warehouse the company delivered in 2016.

"We are pleased to welcome our new tenant to 33 Logistics Park 1611 and excited to start another building in this dynamic distribution park," said Jeff Palmquist, senior vice president of Duke Realty’s Northeast Region. "With the quick lease-up of both of our bulk warehouses in 33 Logistics Park and ongoing demand for distribution space in the Lehigh Valley, we wanted to be sure that we are well-positioned to offer move-in ready, first-class space to companies with immediate space needs."

33 Logistics Park 1620 is expected to deliver in April 2018. In addition to 36-foot clear heights, the cross-dock building will feature LED lights, 120 fully equipped dock doors, four drive-in doors and parking for 245 trailers and 472 automobiles.

"The Lehigh Valley continues to be one of the nation’s most in-demand distribution hubs because of its unrivaled access to the highly populated New York City metropolitan area," continued Palmquist. "The location of 33 Logistics Park 1620 will provide companies ready access to I-78, I-81 and I-80 and is within a day’s drive of more than 40 percent of the population of the United States and Canada."

Wednesday, August 30, 2017

Lehigh Valley Can’t Get Enough Of Spec Warehouses

by Steve Lubetkin,
It seems the Lehigh Valley still can’t get enough spec warehouses built before someone leases them up.

Duke Realty Corporation, a REIT specializing in the ownership, management and development of bulk industrial facilities, has leased its recently delivered 628,475-square-foot bulk warehouse and started construction of another million square-foot spec industrial building in 33 Logistics Park, an industrial development located in Easton, PA, on the east side of the Lehigh Valley just off Route 33 at the new four-way diamond interchange at Main Street.

A third-party logistics company that Duke did not identify will occupy 33 Logistics Park 1611, which Duke delivered in early July. 33 Logistics Park 1620, the new building Duke Realty is constructing, will be its third in 33 Logistics Park and adjacent to 1611 and a 1.1 million-square-foot, fully leased bulk warehouse the company delivered in 2016.

“We are pleased to welcome our new tenant to 33 Logistics Park 1611 and excited to start another building in this dynamic distribution park,” said Jeff Palmquist, senior vice president of Duke Realty’s Northeast Region. “With the quick lease-up of both of our bulk warehouses in 33 Logistics Park and ongoing demand for distribution space in the Lehigh Valley, we wanted to be sure that we are well-positioned to offer move-in ready, first-class space to companies with immediate space needs.”

“Our tenant’s customer had outgrown their existing space in the Lehigh Valley, but wanted to remain in the market to effectively service their clients throughout the Northeast. 33 Logistics Center 1611 was an ideal building for them because it gave them the additional space they need, plus keeps them in a location that is strategic to their operations.”

Construction on 33 Logistics Park 1620 has begun, with delivery scheduled for April 2018. In addition to 36-foot-clear height, the cross-dock building will feature LED lights, 120 fully equipped dock doors, four drive-in doors and parking for 245 trailers and 472 automobiles.

“The Lehigh Valley continues to be one of the nation’s most in-demand distribution hubs because of its unrivaled access to the highly populated New York City metropolitan area,” says Palmquist. “The location of 33 Logistics Park 1620 will provide companies ready access to I-78, I-81 and I-80 and is within a day’s drive of more than 40 percent of the population of the United States and Canada.”

33 Logistics Park 1620 will be Duke Realty’s third building in 33 Logistics Park and its fifth in Lehigh Valley. Duke Realty also owns two buildings in West Hills Business Center on the west side of the valley—a 980,000-square-foot bulk warehouse and a 233,000-square-foot bulk warehouse. The company also owns a 73-acre site along I-78 in Bethel Township in Berks County, 10 miles east of the I-78/I-81 split, for development of an up to 832,000-square-foot building.

On a nationwide basis, Duke Realty owns and operates approximately 138 million rentable square feet of industrial assets in 21 key U.S. logistics markets.

Tuesday, August 29, 2017

Schwan Food Co Building Trades in Pottstown to 1031 Investor

by Steve Lubetkin,
207 and 255 South Street in Pottstown, PA trade for an undisclosed amout. The industrial buildings, which total 124,585 SF, were sold to a 1031 investor in New York. The buildings have a long-term lease with SFC Global Supply Chain, an affiliate of The Schwan Food Company.

CRE Q2 Stats Philadelphia Area

by Steve Lubetkin,

Though the office investment market in Philadelphia cooled off quite a bit compared to Q1 with the total sales volume dropping 46%, Yardi’s Commercial Café website says the pace of investment and number of deals remain steady.

Key highlights:

Q2 office sales volume dipped 46% from Q1 but increased 26% year-over-year, from $211 million in Q2 2016 to $265 million

Average price per square foot dropped below a 5-yearaverage to $137 from $163 in Q1, but is on the uptick year-over-year from $103 in Q2 2016

The office transaction that topped the list in the second quarter was the sale of Valley Creek Corporate Center in Exton for $45.3 million to a joint venture between Pembroke Hobson and Ten Capital Management

A total of 5 office construction projects came online this quarter, Brandywine’s FMC Tower at Cira Center South and CHOP’s Roberts Center for Pediatric Research at 700 Schuylkill Avenue, totaling 1,000,000 square feet were the most anticipated ones in Philadelphia

No. Libs Property Sells for $2.25 million

by Steve Lubetkin,

201-11 E. Allen Street sells for $2.25 million. It is a 17,352-square-foot development site in the highly desired, rapidly developing residential area of Northern Liberties. It is just steps from the Delaware River waterfront, public transit, and I-95 access. The site consists of a 15,300 square-foot industrial property and 17,350 square feet of land. It was sold to a private investment group that plans to redevelop it into residential units. The seller was Exceptional Foods which is relocating to a large, modern industrial facility in Pennsauken NJ to accommodate its expansion and enable it to better serve customers.

Friday, August 25, 2017

dd’s Discounts Leases Space in Wilmington

dd’s Discounts, a retailer specializing in discounted clothing, décor and more, has signed a lease for 22,000 square feet at the Merchant's Square shopping center at 4301-4441 Governor Printz Blvd. in Wilmington, DE.

The tenant is expected to move in January 2018.

The 348,356-square-foot shopping center is managed by Allied Properties. Other tenants include Talbots, Williams-Sonoma and Chico’s

EPR Properties President and CEO Greg Silvers on Lifestyle REIT (Video)

Box office softness barely affects our revenues, says lifestyle REIT CEO from CNBC.

Wednesday, August 23, 2017

Top Five Philadelphia Industrial Leases Signed in Q2 2017

The select top industrial lease signed during the first half of 2017 in the Philadelphia market was at Prologis Carlisle - Bldg. I in the Harrisburg Area West Industrial submarket.

Ace Hardware leased 874,126 square feet in the Lebanon Valley Distribution Center in the Lebanon Industrial submarket.

B&H Photo signed a 577,200-square-foot lease in the second quarter at First Florence Logistics Center in the Burlington Industrial submarket. NAI Mertz represented the landlord.

Herman's Warehousing leased 400,000 square feet at Liberty Business Center II - Lot 5 in the Lehigh Valley Industrial submarket. renewed its 346,188-square-foot lease at Pureland VI in the Gloucester County Industrial submarket during the second quarter.

This trend is compared to the U.S. National Industrial select largest lease signings occurring in 2017, which include the 1 million-square-foot lease signed by Lindt at Lambert Farms Logistics Park - Building B1 in the Atlanta market, the 874,126-square-foot deal signed by Ace Hardware at Lebanon Valley Distribution Center in the Philadelphia market and the 857,379-square-foot lease signed by Amazon at Troutdale Logistics Center in the Portland market.

MetLife Real Estate Acquires The Shoppes at English Village in North Wales

MetLife Real Estate has purchased the Shoppes at English Village at 1460 Bethlehem Pike in North Wales, PA for $57 million, or about $552 per square foot, from Stanberry Development LLC.

The 103,188-square-foot shopping center delivered in 2003. Tenants include Trader Joe’s, Talbots and Jos. A. Bank.

Monday, August 21, 2017

Office Properties in Prime Suburban Districts are Getting a Second Look

Suburban office markets with emerging 'urban-style' live-work environments and good transportation access are gaining increasing cachet among investors and cost-conscious office users, according to a new survey of the nation's 25 largest suburban markets.

As office prices and rental rates rise in the nation's CBDs, certain "urban-suburban" districts may offer investors opportunities at lower prices, noting examples in suburban Silicon Valley's Palo Alto, the New Jersey waterfront and even Philadelphia suburb King of Prussia.

Analysis found that office occupancy rates and asking rents in these urban-suburban districts are typically on par with surrounding suburban markets, but received a disproportionate share of tenant demand and construction activity. In more than half of the cases, rents in these suburban submarkets actually outperformed properties in some rival downtown areas.

"Alternatively, emerging urban-suburban markets offer investors and occupiers with longer-term strategies an opportunity to secure space in up-and-coming areas while there are still options to choose from and purchase prices and rents are more affordable."

CoStar research confirmed that, while urban districts generally outperformed their suburban counterparts in occupancy, rent growth, and pricing earlier in the cycle, prime suburban submarkets now appear to offer higher growth potential.

"These submarkets contain institutional-quality product but have yet to record the same level of rent growth, and subsequently, the pricing levels seen in CBDs and secondary business districts," according to CoStar Portfolio Strategy analysts Paul Leonard and Marcos Pareto in a recent white paper analyzing the performance of CBD and suburban office markets.

Prime suburban districts are better positioned to perform over the long term than other suburban areas due to superior demographics and certain location advantages, such as access to major highway interchanges, Leonard and Pareto said.

"Investors looking for the next opportunity in the office market should consider expanding their investment target zone beyond the urban core and into the suburbs," the CoStar analysts said. "However, it is imperative that the investor first choose the right market."

Avison Young, in its Mid-Year 2017 North America and Europe Office Market Report, also picked up on the trend in both the U.S. and Canada of tenants' distinct preference for transit-oriented development (TOD), the emergence of suburban markets with a sense of place as their own urban centers, and the continued growth of co-working and flexible-office-space operators.

"This year we saw co-working and flexible spaces gain market share and we are tracking their impact on office leasing conditions," said Earl Webb, Avison Young's president, U.S. operations. "Landlords are responding to these trends by retrofitting common areas to include tenant amenities and social-gathering spaces."

Lower Rents, Occupancy Bring Growth Potential

According to a new report, emerging urban-suburban submarkets averaged 15.3% vacancy as of first-quarter 2017, compared with 13.8% for established districts. Rents in these emerging submarkets have yet to surpass the overall suburban average and are significantly lower than rents in more established urban-suburban submarkets.

In just over half the markets, however, the average weighted rent for established submarkets was actually higher than downtown rents, including Philadelphia, where the average established rent exceeded CBD rents by more than 10%.

Such emerging submarkets as the sprawling King of Prussia/Valley Forge area, historically known only for its 2.9 million-square-foot King of Prussia Mall owned by Simon Property Group, are seeing a burst of suburban mixed-use "place making" efforts and build-to-suit office construction.

In an example cited in the report, Brandywine Realty Trust earlier this summer opened a 111,000-square-foot, four-story office building at 933 First St., the first new office delivery in King of Prussia in almost a decade. The built-to-suit project mainly occupied by health insurance program provider Highway to Health complements such projects as the recently delivered King of Prussia Town Center.

A flurry of owner-user purchases were reported in the first half of 2017 and more under contract.

While overall leasing activity has continued to be flat across the market, a few notable tenant moves helped shore up fundamentals in the Philadelphia suburbs. For example, Vertex Pharmaceuticals expanded to 180,000 square feet at 2301 Renaissance in King of Prussia.

"Suburban tenants require well-located, high-quality offices to attract talent," Lavery said. "King of Prussia offers that with its proximity to new residential and retail hotspots."

Silicon Valley Has Suburbs?

On the other side of the country, more than 650,000 square feet of office space is under way in Palo Alto, CA, a tony suburb of San Jose in the Silicon Valley. About half of that is the Innovation Curve Technology Park, a four-building project in the Stanford Research Park under development by Sand Hill Property Co. The buildings, a sweeping series of curves, peaks and valleys designed by Form4 Architecture, are slated to be completed over the next year.

About 70 miles east of Silicon Valley in the Roseville submarket of Sacramento, Adventist Health is building a 242,000-squiare-foot, five-story office building slated for delivery next summer.

In the Minneapolis metro's suburban St. Paul submarket, dairy provider Land O'Lakes is building a 155,000-square-foot expansion of its campus in Arden Hill, MN, a project slated for early 2018 delivery.

In Sacramento, Minneapolis/St. Paul, and other metros such as Kansas City and Austin, urban-suburban submarkets account for virtually all suburban office space under construction. On balance, however, the amount of new office construction under way in urban-suburban submarkets is slightly higher than its share of inventory.

950 Pulaski Drive Sells in King of Prussia

 950 Pulaski Drive building sold in King of Prussia, PA, for $8.2 million. The one-story, 40,000 square-foot property, located directly across from the King of Prussia Mall was acquired jointly by Merion PHC Holdings and Moreland Development. The seller was Hemar Realty Co. Currently configured as physicians’ offices, exam rooms and labs, this building most recently housed offices for the Children’s Hospital of Philadelphia and is fully vacant.

CRE Market Weekly Market Wrap - Philadelphia

by Steve Lubetkin,
Suburban office markets that provide an urban-like live-work-play environment are well positioned to capture strong demand from office users. Among the most common attributes of so-called “urban-suburban” submarkets are the presence of abundant retail, office and housing options, as well as employment opportunities, based on a survey in the 25 largest suburban markets. Established urban-suburban submarkets have the added advantage of amenities like entertainment and recreational offerings, restaurants and grocery stores and public transportation access. According to the report, established Philadelphia submarkets include Bala Cynwyd, Conshohocken and the Main Line.

Emerging submarkets in Philadelphia, identified in the report as King of Prussia/Valley Forge, Plymouth Meeting and Exton/West Chester, are more likely to be in transition, with development, construction or renovation – including ongoing or planned public transit projects – shaping dynamics. Notably, emerging submarkets are more likely than established submarkets to have mixed-use projects in the works. Mixed-use projects often serve as a catalyst for additional development in a particular area, spurring interest in the surrounding neighborhood.

The amount of new office construction underway in urban-suburban submarkets is slightly elevated relative to their share of inventory. Emerging submarkets account for 22 percent of total square footage under construction in the top 25 suburban markets (compared to their 20 percent share of total inventory) and established submarkets account for 30 percent (compared to 26 percent of total inventory). Yet in certain metros, these shares are much higher, with urban-suburban submarkets accounting for 100 percent of the suburban office space under construction in Sacramento, Minneapolis/St. Paul, Kansas City and Austin.

Commercial real estate space is starting to see supply: Sam Zell (Video)

Friday, August 18, 2017

Carlisle, PA, Industrial Leading Goodman's $2B US Pipeline

by Steve Lubetkin

Goodman Group has preleased more than one million square feet of logistics space to syncreon at its Goodman Logistics Center in Carlisle, PA.

Goodman has secured a seven-year lease with syncreon, a third party logistics company, on one of two industrial facilities at the Goodman Logistics Center Carlisle. The logistics campus provides direct access to Interstate 81, one of the major transportation networks servicing the Greater Northeast. Syncreon is scheduled to take occupancy of the building in early 2018.

“Goodman Logistics Center Carlisle offers a strategic location and provides access to over 40 percent of the US population, making it highly sought after by customers servicing the New York City, Washington, DC, Baltimore, Philadelphia and Pittsburgh markets,” says Anthony Rozic, CEO of Goodman North America.

“The prelease of this modern logistics center to syncreon is an example of Goodman delivering its Northeast real estate strategy, providing high quality logistics facilities, close to consumers,” says Michael Fahy, syncreon’s head of global accounts for technology. “This facility is a critical part of syncreon’s growth plan in North America. We are very pleased with the speed, level of service and the quality of the build. It’s important that we were able to customize key facility features to optimize our process flow. This facility will be a world-class operation for us and for our technology customers.”

The second logistics facility is currently available for lease and provides an additional 938,236 square feet of available space.

The Goodman Logistics Center Carlisle is one of a number of projects in Goodman’s $2 billion identified US investment pipeline, which will provide 14.9 million square feet of Class A logistics space in the key logistics and industrial markets of Inland Empire, Greater Los Angeles, Northern New Jersey and Central Pennsylvania.

Over the last 12 months, Goodman has completed two million square feet of class A development product in these key logistics markets, with a further 4.3 million square feet currently under construction. This is consistent with Goodman’s ongoing commitment to servicing the needs of its global customer base through the development of modern, well-located properties for long-term ownership.

Monday, August 14, 2017

Monthly Economic Outlook – August 2017 (Video)

Office Leasing Strategies Part I & II (Video)

Part 1
Part 2

Great Valley Commerce Center sells for $73M

Rittenhouse Capital Advisors has successfully arranged the financing for the acquisition of the 356,000 square-foot class-A office building known as the Great Valley Commerce Center. Located in Malvern, PA, the property is fully leased to credit tenants. The property was acquired for $73 million, and Rittenhouse Capital placed the first mortgage financing with a national bank in the amount of $54.25 million, or 74 percent leverage. The loan was structured as a CMBS execution and carries a 10-year term with the interest rate fixed at 4.48 percent. It amortizes over thirty years.

Friday, August 11, 2017

Retail has been under more pressure than any other product type (Video)

from CNBC.

Impact of Abolishing 1031 Exchange - Tell Your Congressman - NAA (Video)

PARQ @ The Square Sells for $39.3M

Capano Residential Properties acquired the 231-unit PARQ @ The Square apartments at 1303 Delaware Ave. in Wilmington, DE from Merion Realty Partners for $39.25 million, or about $170,000 per unit.

The 15-story, 214,411-square-foot multifamily building was built in 1962 and is in the Upper New Castle County submarket.

Thursday, August 10, 2017

5-acre parcel sold at Exton Square Mall

By Brian McCullough, Daily Local News

The owner of the Exton Square Mall announced Wednesday it has agreed to sell five acres of the property to a developer of multi-family dwellings.

PREIT – Pennsylvania Real Estate Investment Trust – announced the agreement as part of its second quarter report.

The sale of the Exton property is one of three the Philadelphia-based mall operator announced that is expected to bring the company about $75 million. The company did not break out the price it is receiving in each sale.

The announced transactions are:
• 801 Market Office condominium in Philadelphia – a purchase and sale agreement has been executed with a significant non-refundable deposit. Closing is anticipated during the third quarter.

• Logan Valley Mall in Altoona – a purchase and sale agreement has been executed with a significant non-refundable deposit and closing anticipated during the third quarter.

• Exton Square – a 4.9 acre land parcel is under agreement of sale with a multi-family developer. Closing is expected to occur once entitlements are obtained by the buyer, PREIT said in a statement Wednesday.

PREIT spokeswoman Heather Crowell did not respond to inquiries about the exact location of the Exton property. A person familiar with the project said the acreage is part of the former Kmart parcel that is located between Route 100 and the mall.

Part of that parcel is being used for a Whole Foods grocery store. After months of inactivity, it appears work is taking place inside the fenced-off property.

Neither PREIT nor Whole Foods responded to a request for an update on the much anticipated upscale grocery store.

“This is another example of our ability to execute in a challenging environment,” said Joseph F. Coradino, CEO of PREIT, of the three transactions. “This is a critical step in the further transformation of PREIT into a top-tier mall company. As the retail industry evolves, there are many opportunities to improve the shopping environment, and raising capital through the sale of non-core properties provides the perfect vehicle for creating value for our shareholders.”

PREIT on Wednesday reported second quarter results. The company said its net operating income increased by 1.6 percent for wholly owned property.

Same store net operating income was reduced by $1.6 million as a result of bankruptcies and $300,000 as a result of co-tenancy claims.

Sales per square foot reached $468, a 2.2 percent increase over the prior year.

Non-anchor leased space for malls was 91.9 percent, 190 basis points over quarter end physical occupancy.

“It is clear that in this constantly evolving and sometimes challenging retail environment, our portfolio of high quality properties located in compelling markets is improving in spite of the headwinds,” Coradino said in the report.

SICOM Leases 92,000 SF at The Pinnacle Lansdale

SICOM, a technology provider to the restaurant industry, has signed an eight-year office lease for 92,104 square feet in The Pinnacle building at 1684 S. Broad St. in Lansdale, PA.

The three-story, 344,280-square-foot office building was constructed in 1999 in the West Montgomery County submarket. SICOM's lease includes a part of the first and third floors in the building, the remainder of which is vacant and available for lease from 43,470 square feet up to 252,176 contiguous square feet in the building.

Greenfield Partners Secures $90.5M Loan on Fort Washington Office Bldg

Greenfield Partners LLC has secured a $90.5 million loan on its Fort Washington Technology Center building located at 1100-1140 Virginia Dr. in Fort Washington, PA.

Square Mile Capital Management LLC originated the loan. The funds will satisfy existing debt as well as future property upgrades and leasing costs.

The 751,143-square-foot office building was constructed in 1964 and was last renovated in 2007. Building amenities include on-site management, fitness center and basketball court.

Tuesday, August 8, 2017

Vanguard sells building in Wayne

by Natalie Kostelni Reporter
Philadelphia Business Journal

Vanguard Group has sold an office building it occupies at 455 Devon Park Drive in Wayne, Pa., for around $15 million.
The mutual fund company bought the 130,000-square-foot building in 1999 and is one of the few properties it owns outside of its main Malvern, Pa., campus where it is headquartered. E. Kahn Development Corp. bought the property. Jim Galbally of JLL arranged the transaction.

Even though Vanguard sold the property, it will remain in the space.

“As part of the agreement, we’ll continue to lease the building while we take some time to assess the right future location for the crew that currently work there,” said Arianna Stefanoni Sherlock, Vanguard spokeswoman.

It’s not totally unusual for Vanguard to occupy space off of its main campus. In 2008, it occupied 151 S. Warner Road, a 90,000-square-foot office building. At the time, the company needed some extra space while a new building called Three Quarry Ridge was being constructed. Vanguard vacated the Warner Road space in 2014.

Now Vanguard is in the early stages of planning new buildings in Malvern to accommodate its continued growth. The company has said it would initially construct one structure that would be between 180,000 and 240,000 square feet.

Full story:

CBRE CEO talks organic growth overseas in the wake of Brexit (Video)

from CNBC.

Cabot Properties Acquires Five Buildings in Lehigh County

High Street Realty Company LLC sold a five-building industrial portfolio in Allentown and Fogelsville, PA for $21.3 million, or about $79 per square foot, to Cabot Properties, Inc.

Totaling 271,045 square feet of industrial space, the portfolio includes 964, 966 and 999 Postal Rd in Allentown and 7331 and 7350 William Ave. in Fogelsville. Collectively, the properties are 92 percent occupied at the time of sale to multiple tenants including W.B. Mason and Air Products & Chemicals, Inc.

Monday, August 7, 2017

Plans to Rethink America’s Malls (Video)

Self-Storage Cap Rates, Financing & Investment Strategies (Video)

Philadelphia's Industrial Vacancy Increases to 5.9%

The Philadelphia Industrial market ended the second quarter 2017 with a vacancy rate of 5.9%.

The vacancy rate was up over the previous quarter, with net absorption totaling positive 1,782,519 square feet in the second quarter. That compares to positive 9,931,174 square feet in the first quarter 2017. Vacant sublease space increased in the quarter, ending the quarter at 1,193,014 square feet.

The Flex building market recorded net absorption of positive 428,315 square feet while the Warehouse building market recorded net absorption of positive 1,354,204 square feet in the second quarter 2017.

Tenants moving into large blocks of space in 2017 include: Uline moving into 1,070,000 square feet at Liberty Business Center III - Bldg 1, Mattel moving into 1,002,000 square feet at 575 Old Forge Rd, and PepsiCo moving into 502,754 square feet at 545 Oak Hill Rd.

Rental rates ended the second quarter at $4.84, a decrease over the previous quarter.

A total of 14 buildings delivered to the market in the quarter totaling 5,075,807 square feet, with 15,226,755 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. National Industrial vacancy rate, which decreased to 5.1% from the previous quarter, with net absorption positive 71.76 million square feet in the second quarter. Average rental rates increased to $6.22, and 537 industrial buildings delivered this quarter totaling more than 64.4 million square feet, with almost 272.4 million square feet still under construction.

Three Most Active Multifamily Submarkets in Philadelphia

Philadelphia apartment construction continues to be top-heavy in the city’s urban core, but a neighboring submarket’s development burst speaks to the continually emerging competition in Philly’s premier first-ring suburbs.

Center City Outpaces Nearest Suburbs in New Multifamily Development at 3-to-1

CoStar Market Analytics data through the second quarter, 2017 shows that Center City and bordering Art Museum / Northern Liberties submarkets had well over 2,500 units under construction - with Center City hosting more than 2,000 of the new units.

These two submarkets have remained atop the development rankings for most of the last three years, and roughly 30 new apartment communities - totaling more than 3,000 units - have delivered between the two from 2014 through June 2017. The overall average asking rent per square foot on these delivered units is over $2.60, while studios in this group are pushing toward $3.50 per square foot.

Job Rich Suburbs Attracting Renters and Developers Alike

While Center City has long been a stalwart demand base for landlords, and Art Museum/Northern Liberties has emerged over the last decade given the gentrification and development in NoLibs and Fishtown, development has picked up steadily of late in Philadelphia’s job-rich, centrally located suburbs.

Main Line, with heavy residential rental nodes in Ardmore, Bala Cynwyd and Wayne neighborhoods, started getting new stock in 2014 after nearly a decade without major deliveries. Strong leasing and renewal performance has kept developers eager, and as of the second quarter, Main Line had the second most units under construction in the entire metro area. Another 1,300 units are proposed for the submarket, with anticipated delivery dates between 2018-2020.

Housing Prices Make Renting an Attractive Option for Many Area Families

A mid-point destination for renters between the city and employment nodes like Conshohocken, King of Prussia, and Plymouth Meeting, the Main Line is known for its opulent subdivisions and outstanding school systems. It’s also known for high-six and low-seven figure single-family home price tags, and even with many of the new two- and three-bedroom households costing between $2,300-$3,500 per month, those prices are well below what a full PITI payment would be for the majority of the area’s homes. Not surprisingly, studio units are next to non-existent in newer builds found in Main Line.

Radnor Property Group Sells 3737 Chestnut Apts

Korman Residential Properties and The Carlyle Group have acquired the 3737 Chestnut apartment building at 3737 Chestnut St. in Philadelphia, PA for $118 million, or about $428,000 per unit, from Radnor Property Group.

Radnor delivered the 25-story, 216,912-square-foot property in August 2015 at a cost of $92.5 million. Today the 276-unit multifamily asset is fully leased.

Thursday, July 27, 2017

Hersha Hospitality Buys The Westin Hotel in Philadelphia

LaSalle Hotel Properties sold The Westin Hotel at 99 S. 17th St. in Philadelphia, PA for $135 million, or about $459,000 per room, to Hersha Hospitality Trust.

The seller acquired the asset from HEI Hotels & Resorts for $145 million ($493,000 /room) back in September 2010, according to CoStar data.

The 14-story, 240,006-square-foot hospitality building originally opened as the Ritz-Carlton in 1990 and was renovated in 2015. It sits on one acre in the Market Street West submarket, part of the mixed-use Liberty Place development and in close proximity to the new Comcast Innovation Tower, Rittenhouse Square, Pennsylvania Convention Center and University City. The Westin flag is operated under Starwood Hotels & Resorts Worldwide.

The hotel consists of 294 guest rooms including 19 suites, 16,600 square feet of meeting space and a 7,500-square-foot ballroom, on-site restaurant and bar/lounge/nightclub, subterranean parking garage, and boasts an 84-percent average occupancy and RevPAR at $188.73. In a statement, Hersha reported the Westin sale resulted in a 7.8% CAP rate based on LTM, and for fiscal year 2016 the hotel had an average daily rate (ADR) of $225.

The buyer financed the acquisition in-part with proceeds from the sale of three suburban Hyatt extended-stay properties on the West Coast that occurred around the same time and resulted in $130.5 million in net proceeds for the hospitality-focused REIT. Hersha's Philadelphia cluster also includes The Rittenhouse Hotel and the Hampton Inn Convention Center.

"The successful closing of this transaction marks the 24th month of our capital recycling campaign during which we sold approximately $850 million of mature, stabilized hotels and successfully deferred $270 million of taxable gains with $816 million of accretive acquisitions," said Jay H. Shah, CEO of Hersha. "In addition to refining our portfolio’s market mix to urban gateway and coastal destinations, our improved portfolio quality focuses our capabilities on hotels with higher RevPAR and EBITDA growth potential in our core markets. We are pleased to acquire the Westin at an attractive basis, expanding our Philadelphia cluster to include the leading corporate hotel in the market."

Colony NorthStar Picks Up $201 Million Warehouse Portfolio Along I-95 Corridor

Colony Northstar  has finalized a deal to acquire $201 million worth of industrial real estate along the I-95 corridor between Maryland and Delaware from fellow institutional investor TA Realty.

The Los Angeles-based Colony Northstar paid nearly $72 per square foot for the portfolio, which totals 2.8 million square feet over 20 properties with the highest concentration located in the Baltimore MSA.

The Mid-Atlantic portfolio, which includes the seven-building DeSoto Business Park in Baltimore, is 94% leased to 64 tenants headlined by McCormick & Co., Price Modern, Sardo & Sons Warehousing, Gourmet Bakery, MXD Group and Capitol Express. The remaining assets total 434,969 square feet and are located in Newark, DE and Aston, PA.

Loan Servicing Co Leases 72,000 SF at Horsham Office Bldg

Bayview / Lakeview Loan Servicing, a residential and commercial mortgage loan servicer focused on helping homeowners preserve ownership, has leased 72,381 square feet in the office building at 507 Prudential Rd. in Horsham, PA.

The 100,710-square-foot building was constructed in 1988 by Lotz Realty, Inc. and was renovated in 2001. It sits on 6.2 acres in the Horsham/Willow Grove submarket of Montgomery County.

Bayview and Lakeview will be occupying the majority of the single-story building when its lease commences later this year.

Wednesday, July 26, 2017

Investing in commercial real estate with a twist (Video)

Iconic Centre Square Office Complex In Philadelphia Trades For $328M

by Steve Lubetkin,
In the largest office transaction in Philadelphia history, the iconic Centre Square, a two-building, 1.8-million-square-foot, class A, multi-tenant office complex in Philadelphia, traded from Equity Commonwealth REIT to an affiliate of Nightingale Properties, for a reported $328 million.  The building is perhaps best-known for the Claes Oldenburg sculpture of a clothespin on the plaza of the property’s northwest corner facing Market Street at City Hall’s Dilworth Plaza.

“Centre Square is a major part of Philadelphia’s fabric and attracted investor interest and capital commitments from around the globe. The asset sits across from Dilworth Park and City Hall and above the mass transit network. It is the best-located set of office towers in the Philadelphia CBD. We are honored to have been chosen to represent Equity Commonwealth in the sale of this landmark asset.”

Located at 1500 Market Street, in the heart of Philadelphia’s dynamic Central Business District, the office complex is an iconic part of the Philadelphia skyline. Built in 1974, the complex consists of a 36-story East Tower and a 43-story West Tower, which houses market leading tenants including the University of Pennsylvania Health System, Towers Watson, PHMC, Saul Ewing, Dilworth Paxson and the mortgage insurer, Radian.

In addition to a parking garage that can accommodate 450 vehicles, Centre Square also includes a 41,000 square-foot retail component with several shops, stores and restaurants. In 2015, the complex was awarded an Energy Star Label and the BOMA 360 Designation.

Nightingale Properties—which owns multiple properties throughout Philadelphia and the U.S., including 1635 Market Street, 1500 Spring Garden Street and 1835 Market Street—has plans to do an extensive renovation at Centre Square.

Monday, July 24, 2017

Four Office Buildings in Delaware and Bucks County, PA for $6.8M

The sales of four office buildings in Delaware and Bucks County, Pennsylvania have traded. The four properties sold for a combined sale price of $6.875 million. The seller was Penguin Real Estate Investors. The properties are:
53 West Baltimore Pike, a three-story 35,902 square foot class A office building in Media, PA, acquired by 53 Baltimore Pike LLC;
430-450 Lincoln Highway (Route 1) in Fairless Hills, PA, acquired by Olymbec;
 2050 and 2080 Cabot Boulevard West in Langhorne, PA, also acquired by Olymbec. The three-property portfolio acquired by Olymbec marks the first time the Canadian-based firm has tapped into the Greater Philadelphia office market.

Morgan Properties has acquired Madison Montgomery

Morgan Properties, one of the country’s largest real estate investment and management companies, announced today it has acquired Madison Montgomery, a 264-unit apartment and townhome community located at 2701 Elroy Road in Hatfield, PA. The community was rebranded by Morgan Properties to Montgomery Manor Apartments & Townhomes. The property underwent a $17.5 million transformation by the previous owner in 2008, giving the property a class-A appearance. Morgan plans to enhance the current amenity offerings as well as capitalize on the opportunity to add additional amenities.

Real Estate is Booming in Philadelphia (Video)

Top 10 Issues Affecting Real Estate (Video)

Part 1 Part 2 Part 3

Thursday, July 20, 2017

U.S. real estate purchased by foreign buyers at record pace (Video)

Equinix CEO: Data Center REIT Domination (Video)

Target Leases 48,000 SF at Westmont Plaza

Target has signed a lease for 48,142 square feet in the Westmont Plaza shopping center at 630 - 662 W. Cuthbert Blvd. in Westmont, NJ.

The retail center totals 134,069 square feet in the North Camden County submarket of Philadelphia. Other tenants include Tuesday Morning and Super Fitness.

Concordia Properties Acquires Spring Crossings Apts

Concordia Properties purchased the 358-unit Spring Crossings apartments at 41 Winterhaven Dr. in Newark, DE this summer for $35.5 million, or about $99,000 per unit, from Metropolitan Management Group.

Formerly the Autumn Park Apartments, the 370,620-square-foot multifamily community is comprised of studios, one-, two- and three-bedroom units across 27 buildings on a 16.9-acre site in New Castle County. At the time of sale the asset was 93 percent occupied and offers a 24-hour fitness center, an outdoor swimming pool and walking/biking trails.

The buyer financed the acquisition with a new $26.6 million, Fannie Mae loan.

Gladstone Commercial Buys Philadelphia Industrial Site

Gladstone Commercial Corporation purchased 14700 Townsend Rd. in Philadelphia, PA for $26.4 million from AFL-CIO Building Investment Trust.

The 300,000-square-foot property was built in 2001 and is currently fully leased to tenants.

Wednesday, July 12, 2017

Endeavor Equities Buys Midway Shopping Center

Endeavor Equities has acquired the Midway Shopping Center at 1000-1096 Wyoming Ave. in Wyoming, PA for $17.56 million, or about $80 per square foot, from Kennedy-Wilson Properties Ltd.

The shopping center was built in 1975 and renovated in 1999 and totals 220,787 square feet. Bon Ton, Dollar Tree and Price Chopper are some of the tenants in the center.

Is the U.S. headed for another real estate bubble? (Video)

Tuesday, July 11, 2017

Endurance acquires 456,000 SF in Shiremanstown, PA

n affiliate of Endurance Real Estate Group, LLC (“Endurance”) is pleased to announce its recent off-market acquisition of 485 St. Johns Church Rd. in Shiremanstown, PA. The 712,000 SF former manufacturing/distribution/office facility is being redeveloped into over 456,000 SF of Class A bulk warehouse/distribution space. The property was owned and occupied by the Quaker Oats Company through the early 2000’s. Endurance has partnered with CenterSquare Investment Management in a joint venture to acquire and redevelop the property.

After closing, Endurance commenced demolition of approximately 500,000 SF of manufacturing, office and low-bay warehouse sections of the property.  Subsequent phases will include the renovation and expansion of the existing 28’ clear East Warehouse section, and a slab-up re-construction of the West Warehouse with a new 32’ clear, Class A facility.  Upon completion, the property will offer 456,810 SF of strategically located bulk warehouse/distribution space in an infill section of Harrisburg’s densely populated West Shore area.

The entire facility will be equipped with an ESFR sprinkler system, high efficiency T-5 lighting, a 190’ truck court, 60’ truck dock apron, significant parking for cars and trailers, and an approximately 1 per 6,000 SF loading dock ratio. The property will efficiently demise, with an existing demising wall and multiple gas and electrical service points facilitating division of the building down to 100,000 SF or smaller suites.

The West Warehouse section (210,675 SF) will feature precast wall construction @ 32’ clear, 54’ wide x 48’ deep column spacing, a 60’ deep speed bay, a 2,000 amp electrical service, an ESFR sprinkler system, and 38 loading docks fitted with 9’ x 10’ doors, 45,000 lb. levelers, bumpers, seals, lights and fans.

The East Warehouse (246,135 SF) will consist of an expanded and fully refurbished 28’ clear space improved with a new 2,000 amp electrical service, an ESFR sprinkler system, renovated office space, and supplemental loading dock positions including 9’ x 10’ doors, 45,000 lb. levelers, bumpers, seals, lights and fans.

Demolition is actively underway at the property, with a targeted delivery of July 2018 for the new 210,675 SF West Warehouse and an April 2018 delivery for the renovated and expanded 246,135 SF East Warehouse.

The site benefits from two means of ingress/egress, with frontage on both Railroad Avenue and St. Johns Church Road.  It is located less than a mile from Rt. 581 (Capital Beltway) and one mile from Rt. 15, providing immediate access to Interstates 76, 81 and 83, and enabling shipments to over 40% of the US population in one day. The property is also situated in close proximity to multiple FedEx, UPS hubs, Norfolk Southern and common carrier (OTR) hub facilities.

“We are very excited to be undertaking this unique redevelopment opportunity to deliver Class A warehouse/distribution space in such a densely populated area with terrific labor characteristics,” said David Erlbaum, Vice President of Acquisitions and Development at Endurance. “Opportunities like this are few and far between given the tremendous desirability of the Eastern PA industrial market to investors, and opportunities to acquire a site of this size in such a dense, infill location are extremely rare. We jumped all over this opportunity when it was presented to us.”

Founded in 2002, Endurance is a Bala Cynwyd, Pennsylvania-based real estate owner/developer focused on income and value creation opportunities in the Mid- Atlantic region with a concentration in office and regional and bulk warehouse/distribution assets. Endurance’s current portfolio consists of close to four million square feet of warehouse/distribution, flex, and office assets. Affiliates of Endurance have closed on nine separate transactions over the last 3 years, totaling over 2.5 million square feet of warehouse, distribution, office, and flex space. For additional information on Endurance, please visit

CenterSquare is a global investment manager focused on actively managed real estate and infrastructure strategies. Founded in 1987, it operates as one of the investment boutiques of BNY Mellon Investment Management. CenterSquare manages approximately $8.0 billion of real estate and infrastructure securities through CenterSquare Investment Management, Inc. and approximately $1.2 billion (gross) of debt and private equity real estate investments through CenterSquare Investment Management Holdings, Inc. (together referred to as “CenterSquare”).

Land acquisition in Royersford’s former industrial district first step in revitalization project

By Michael Sneff, The Mercury
The Riverfront at Royersford LLC recently acquired a six-acre section of land in the former industrial district of Royersford, intersecting 1st Avenue and Main Street, on the Schuylkill River. The acquisition is the latest step in ongoing efforts to revitalize the former industrial district along the borough’s waterfront.

“Royersford already has so much to offer and it is our intent to expand business and recreation along the riverfront,” said Richard Lewis, president of The Lewis Group, in a press release. The Lewis Group owns Riverfront at Royersford.

During a recent walkthrough of the property, Lewis stated that the Riverfront at Royersford is a “legacy project,” one that has the future of the borough in mind above all else.

“This end of town historically has been commercial,” Lewis said. “We really think that this can be a game changer in terms of bringing some new businesses and new life to this end of the borough.”

The land formerly belonged to Buckwalter Stove and was the site of factories and other industrial operations, including Continental Stove Works, which at one time, was one of the biggest stove factories in the United States.

There are currently several businesses operating along the waterfront, according to Lewis, ranging from an aerospace engineering company, a foundry and a bowling supply company.

The deal, according to Lewis, took nearly seven years to lock down, as plans have changed and been adjusted. Under a previous contractor, plans called for the development of new apartment complexes on the site.

“For us, residential was really not the most ideal of situations, considering the railroad and crossings,” Lewis said. “A motivating factor in acquiring the site was actually to keep a residential property from being developed.”

Lewis said the property would be much more beneficial as a commercial setting. With a residential complex already being established across Main Street, Lewis said having a place for those people to shop and recreate would be more of a draw.

Anil Dham, president of the Royersford borough council, has been working closely with The Lewis Group as well as other local business owners and citizens to revitalize the borough.

“Only a few years ago on Main Street, there were 13 or so empty store fronts. Now, there’s only one. That says something about this town,” Dham said. “With this, the development will bring in more tax money, as well as create additional recreational opportunities.”

Prominent locations on Main Street include multiple cafés and restaurants, as well as businesses and offices. The plan, according to Dham, is to add on to the precedent they have there now.

The riverfront site is connected to an abandoned railroad trestle which Lewis is looking to bring back to life as a pedestrian walkway and bike path connecting Royersford to the Schuylkill River Trail system across the river in Chester County, according to a press release.

“We want people to see the Riverfront for the asset that it truly is, and get people back down into this end of town,” Lewis said. “We’ve met a lot of great people here; it’s a great place to live.”

Lewis said that a big inspiration on how to do a revitalization project right, is what he is seeing in Phoenixville and Pottstown, and that Royersford is in a good place to start something similar to what has been done in the other communities.

“We’re trying to temper some excitement from people living around here,” Dham said. “This project’s really got some legs, and we’re very excited to see where it goes.”

A surveying process of the property is currently underway, and the lot will be cleared of debris by Lewis Group crews. Further consideration of the potential development opportunities is ongoing.

Based in Royersford, The Lewis Group also operates Lewis Environmental Inc., Lewis Property Services and works in the remediation, revitalization and repurposing of former industrial sites.

Duck Donuts Expands into King of Prussia Town Center

Deciding to open a Duck Donuts in King of Prussia Town Center was an easy choice for the founder and owner Russ DiGilio, writes Kenneth Hilario for Philadelphia Business Journal.

“King of Prussia is known as the ultimate shopping and dining destination,” said DiGilio in an interview with Philadelphia Business Journal. “We felt the family-friendly, community atmosphere at the King of Prussia Town Center would make a great fit for our franchise brand.”

Another factor is that DiGilio grew up in Rosemont, making this a kind of homecoming.

Now, with the July 8 opening behind him, DiGilio plans to open shops in Chester County, increase the locations in Montgomery County and expand across Pennsylvania.

When it comes to his competitors, DiGilio said he believes that Duck Donuts warm, delicious, and made-to-order product set it apart from other doughnut shops in the area.

“Our famous doughnuts are made the way you like them every time,” he said. “Children can even stand on a step strategically placed in front of our doughnut machines and watch their doughnuts cook and then hand dipped to order.”

Mixed Use Development Planned For Former Nabisco Site In Northeast Philadelphia

by Steve Lubetkin,
The new mixed-use development planned for the site of a former Nabisco bakery on the Roosevelt Boulevard in Northeast Philadelphia will start with construction of a new super Wawa convenience store, according to developers of the former manufacturing site.

The Provco Group began demolition of the former Nabisco facility last month, and hopes to bring a new development that will better serve the neighborhood around the iconic cookie factory.

“We are thrilled to own this iconic, landmark property”, says Michael Cooley, vice president of real estate for The Provco Group. “The goal and commitment to our neighbors of the Somerton Civic Association and district councilman Brian O’Neill, is to create a project not only unique to Roosevelt Boulevard, but to the region.”

For many decades, the Nabisco factory, a 600,000 square-foot facility originally built by the National Biscuit Company in the 1950s, was famous for the aroma of fresh baked cookies that billowed throughout the neighborhoods. The baking operation ceased production in 2015 and the 27-acre property sold a year later to a joint venture led by Provco, Goodman Properties and MCB Real Estate. Shortly thereafter, a portion of the facility was leased to Jako Enterprises, a company that owns and operates over 50 retail sneaker stores under the Kicks USA brand.

When the project went public, Cooley says former Nabisco employees contacted him to express their respect and appreciation for the building, which provided more than 800 jobs at its peak.

“It was great to hear from former Nabisco employees,” Cooley says. “They asked me if I could save some of the bricks and give them away for keepsakes. This is a special place to many people, so I plan to also use some of those old bricks for the new streetscape amenities we’re building, so that a piece of the factory stands forever.”

With demolition underway, the first phase of development will deliver a Wawa convenience store and gas station pad, expected to begin construction this fall for a Summer 2018 opening.

The developers are looking for other retail tenants for the property.

“I am in dialogue with several, unique, retail and family entertainment concepts that don’t currently exist in this region,” Cooley says. “These types of uses would not only generate net-new jobs but also create a destination that draws folks from a distance. Ultimately, we want to provide uses that will better serve the neighborhood and are excited to work towards delivering a quality project that residents of Northeast Philadelphia can be proud of.”

Monday, July 10, 2017

UCPA signed a long-term lease in Harrisburg

 Urology of Central Pennsylvania signed a long-term lease at 815 Sir Thomas Court in Harrisburg, PA, just west of PinnacleHealth Community General Osteopathic Hospital. The company will be relocating from its current location at 4310 Londonderry Road in Harrisburg, but its Camp Hill, PA, office will remain at 100 Corporate Center Drive. UCPA also has patient care locations in Newport and Millersburg, and at Fulton County Medical Center in McConnellsburg, and JC Blair Memorial Hospital in Huntingdon, PA.

Spring Mill Corporate Center Conshohocken will Undergo Multi-Million-dollar Renovation

The Spring Mill Corporate Center, a 635,000 square-foot office park consisting of four major buildings at 1100 East Hector Street in the Philadelphia suburb of Conshohocken, will undergo a major, multi-million-dollar renovation and modernization that will include the creation of a new stand-alone 40,000 square-foot office building, expanded amenities and additional parking. Included in the new renovation and modernization plan designed by Miller Purdy Architects will be the demolition of 120,000 square feet of old warehouse space to create over 320 parking spots.  The remaining 42,000 square-foot single-story building will be refinished as a stand-alone office complex with adjacent parking, open picnic space and high-tech interconnectivity.

Friday, July 7, 2017

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Dermody Acquires Woodmont's Industrial In Middletown, PA For $76M

by Steve Lubetkin
After transforming Capital Logistics Center into one of the most modern logistic and industrial parks in Pennsylvania, Woodmont Industrial Partners and AEW Capital Management have sold the asset to Dermody Properties, which develops and operates industrial properties across the country. Citing Dauphin County, PA, property records, the central Pennsylvania news website reported the sale price was approximately $76.1 million.

Woodmont and AEW finalized the sale following an extensive capital improvement program of the six-building, 1.55-million-square-foot complex in Middletown, PA. The partnership constructed the new industrial facilities to replace the antiquated structures that previously occupied both 200 and 300 Capital Lane.

“Dermody Properties is very pleased to acquire this well-located five-building business park in Central Pennsylvania,” says Eugene Preston, Dermody’s partner for its Eastern Region.  ”The property fits well in our company’s portfolio from both a tenant roster and geographical diversification perspective. Dermody Properties is growing the portfolio with a mix of building acquisitions and development projects.”

“This transaction represents a multitude of asset classes including stabilized core product, vacant value-add product and additional land development. In addition to the highly desirable location, extensive renovations completed by Woodmont/AEW leave the assets well-positioned for the user community, as evidenced by a major food distributor’s recent decision to occupy 400,000 square feet of class A space.”

In 2016, Woodmont and AEW completed nearly 500,000 square feet of positive net absorption including a full-building lease with a multinational food manufacturing company at 200 Capital Lane. The 400,060-square-foot, state-of-the-art facility achieved LEED Silver certification shortly after being constructed in 2014. Additionally, WIP and AEW Capital signed a 77,987-square-foot lease with full-service freight transportation provider Estes Express Lines at 400 Capital Lane, bringing the building to full occupancy.

“Our decision to heavily invest in the renovation of Capital Logistics Center over the past several years was validated with this sale,” says Eric Witmondt, principal of Woodmont Industrial Partners. “We were able to position this property to coincide with a strong demand in the market and attract quality tenants, which ultimately led to the right timing for this sale. We look forward to continuing our successful relationship with AEW and plan to remain active in the Harrisburg market.”

Situated on more than 100 acres in Central Pennsylvania, at the heart of the I-81 Distribution Corridor, Capital Logistics Center fronts the Pennsylvania Turnpike and is less than a mile away from Harrisburg International Airport. The property is also near local FedEx and UPS facilities, as well as routes I-283, I-83 and 322.

“As demand for class A industrial product in the Northeast continues to grow, so too does our portfolio,” Witmondt says. “In 2017, we will continue to capitalize on opportunities to acquire properties that are ripe for revitalization in key submarkets throughout the region.”

Wednesday, July 5, 2017

Kairos buys Blue Bell office building

Natalie Kostelni
Philadelphia Business Journal
Kairos Real Estate Partners has picked up another office building in the Blue Bell, Pa., submarket and bought 980 Jolly Road, a 150,000-square-foot building Aetna Inc. had vacated years ago.

The King of Prussia real estate company bought the two-building complex with Artemis Real Estate Partners from Aetna for an undisclosed amount. Montgomery County property records indicate the property traded for $5.27 million.

This is the second office building Kairos has acquired in the Montgomery County community. Last August, the same partnership involving Kairos paid $3.3 million for 518 Township Line Road, a 124,000-square-foot office building.

“We’re doubling down on Blue Bell,” said Stephen J. Gleason, president of Kairos. “We think Blue Bell is a great alternative to the Main Line.”

In general, Philadelphia's suburban office market is doing fairly well as companies lease up space and expand. Markets such as Radnor, Conshohocken and King of Prussia have experienced robust activity, making large blocks scarce and pushed rents up. But for build-to-suits, there has been no new construction underway, giving tenants limited options when it comes to large blocks of existing space.

The increased tightness has pushed tenants looking for space and more affordable rents further out to areas such as Blue Bell, Fort Washington and Horsham. They are markets that are often the last to recover from economic downturn and 10 years ago, many of the same dynamics — a shortage of big blocks, rising rents in first-ring submarkets— were at also at work when there was renewed attention by investors and tenants to Blue Bell and those other markets.

For the overall suburbs, the total vacancy rate stood at 16.7 percent at the end of the first quarter and there was an absorption of 372,539 square feet, according to CBRE Inc. data. Blue Bell, which has nearly 4 million square feet of office space, has a total vacancy rate of 22.8 percent and average asking rents of $28.70.
Full story:

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Bluejay Mgmt Buys Town Square Plaza in Pottstown

Bluejay Management acquired the Town Square Plaza shopping center at 1100 Town Square Rd. in Pottstown, PA for $28.6 million, or about $133 per square foot, from Retail Properties of America.

The 215,600-square-foot power center was built in 2004 in the Exton / Whitelands submarket of Montgomery County. The center was 98 percent occupied at the time of the sale.

Orchard Hills Apts Sold for $18.3M

C.J. Lombardo Real Estate acquired the 264-unit Orchard Hills apartments at 1239 Washington St. in Whitehall, PA from Dutchess Consultants for $18.25 million, or about $69,000 per unit.

The 337,144-square-foot property was built in 1972.

Thursday, June 29, 2017

Lower Makefield Shopping Center Sells for $20M

Inland Institutional Capital Partners Corporation, a subsidiary of The Inland Real Estate Group of Companies, acquired the Lower Makefield Shopping Center at 668 - 706 Stony Hill Rd. in Yardley, PA for $20.4 million, or about $272 per square foot, from TriGate Capital LLC.

Built in 1986, the 74,953-square-foot retail strip is 97 percent occupied by multiple tenants including Rite Aid, Giant Food and GNC.

Hyland Levin Renews Lease in Marlton

Hyland Levin LLP, a multi-practice law firm, has renewed its lease for 16,440 square feet in the Sagemore Professional Center office building at 6000 Sagemore Dr. in Marlton, NJ.

The three-story, 50,000-square-foot property was built in the South Burlington County submarket in 2000 by Davis Enterprises, which still owns the property. The law firm's lease is on the third floor of the building, which is also home to the Delaware Valley Institute of Fertility and Genetics and Janney Montgomery Scott LLC.

Gladstone Acquires Three Tower Bridge Office Bldg Conshohocken

Gladstone Commercial Corporation acquired Three Tower Bridge office building at 2 Ash St. in Conshohocken, PA for $15.45 million, or about $257 per square foot, from Oliver Tyrone Pulver.

The 60,000-square-foot property is currently leased for the next 8.5 years to Jacobs Engineering Group, a design and construction contractor that has occupied the building since it delivered in 1996.

UPS Purchases 595,000-SF Distribution Center in Carlisle

United Parcel Service (UPS) purchased its industrial building at 1 Ames Dr. in Carlisle, PA for $55 million, or about $92 per square foot, from Dermody Properties, Inc.

UPS had previously leased more than half of the building from Dermody.

The 595,000-square-foot facility was built in 2015 on 53.9 acres in the Harrisburg Area West Industrial submarket of Cumberland County, within the LogistiCenter at Carlisle business park. It features 59 loading docks and two drive-ins, 36-foot clear heights, a 135-foot truck court, industrial and surface parking, fluorescent lighting, 7-inch floors with a 4,000-lbs/sf load rating, 1,500-amp heavy power and 50x52-foot column spacing.

Wednesday, June 28, 2017

CRE Middle Market Digest–The Northeast

by John Jordan,
PFM Asset Management has signed a 63,133-square-foot long-term lease at 213 Market St. in Harrisburg, PA. The company will be relocating from its current location at 100 Market St., where it has been operating for the past 20 years.

Built in 1989, the property is currently undergoing renovations and once completed, will be one of the most modern office spaces in the city of Harrisburg. PFM Asset Management’s more than 150 employees will occupy floors three through six and floor 14 in the new building. The company is expected to move into its new location by the end of this year.

The sale of three Pennsylvania shopping centers recently traded. The company reports that it successfully arranged for the sale of the Lower Makefield Shopping Center, a 74,953-square-foot property at 700 Stony Hill Road in Yardley, PA.

The seller, TriGate Capital, LLC was and the buyer was Inland Institutional during the transaction.

The sale comes roughly two and a half years after TriGate Capital purchased the Bucks County property from PDSI, an affiliate of Public Service Electric and Gas Co. of Newark, NJ, in a national portfolio of seven properties.

The sale of Town Square Plaza, a 215,610-square-foot power center located at 1100 Town Square Road in Pottstown, PA was also arranged.

The seller was Retail Properties of America. The buyer was Bluejay Management during the transaction. Town Square Plaza was 98% occupied during the time of sale.

Built in 2004, Town Square Plaza is anchored by a 134,574 square-foot Lowe’s Home Improvement warehouse, on a long-term ground lease. Additional national and credit retailers include: PetSmart, Michaels, Rite Aid, BB&T Bank, Mattress Firm, Hair Cuttery, LongHorn Steakhouse, AT&T and H&R Block.

The third shopping center deal was the sale of the 226,894-square-foot Midway Shopping Center at 1026 Wyoming Avenue in Wyoming, PA.

The seller was SIN Ventures, and the buyer was Endeavor Equities. The sale marks the fifth property  SIN Ventures has sold over the past two years to close out its retail fund.

Built in 1970 and renovated in 2000, the community retail center is currently 93% occupied and anchored by a 53,277-square-foot Price Chopper grocery store, a 64,000 square-foot Bon-Ton Department Store, Harbor Freight Tools, CVS Pharmacy and Dollar Tree.

Tuesday, June 27, 2017

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Lidl Grocery Leases Space in Proposed Turnersville Development

Lidl Grocery has leased 34,780 square feet in a proposed retail development at 3950 Black Horse Pike in Turnersville, NJ.

Ground breaking of this development is currently set for December 2017, with estimated completion in Summer 2018. There are still availabilities in the center for a second anchor, inline retail and pad sites.

Friday, June 23, 2017

Burlington Coat Factory Leases 43,091 SF in Red Rose Commons

Burlington Coat Factory signed a lease for 43,091 square feet in the office building at the Red Rose Commons Shopping Center at 1700 Fruitville Pike.

The shopping center in Lancaster, PA, totals 463,042 square feet. Goldenberg Development developed the property in 1998 and now provides leasing and property management for current owner Vereit, Inc. Other notable tenants include Barnes and Noble and Petsmart.

Wednesday, June 21, 2017

5 Cap Realty Planning $1 Billion in Multifamily Acquisitions

A new national investment venture of 5 Cap Realty LLC has acquired two multifamily complexes for $60 million as part of its strategy to launch a multi-year national investment venture that could top $1 billion in assets under management.

Plymouth Meeting, PA-based 5 Cap Realty LLC and its affiliate RREIC Advisors has teamed with a private equity fund vehicle managed by JMP Asset Management LLC, an affiliate of publicly traded JMP Group LLC (NYSE:JMP), to focus on acquiring and operating value-add multifamily assets.

This new partnership has closed on its first two acquisitions: an apartment community in the Philadelphia metro area and another in greater Atlanta, with a total of 446 units, for a total cost of just under $60 million.

“This is a great opportunity at a pivotal time,” said David Reiner, RREIC Advisors’ managing director. “There are a lot of undermanaged assets in the marketplace. Our team has demonstrated throughout its history that we can identify these assets and reposition them with better management, marketing, and capital improvements.”

“Our plan is to build a billion-dollar multifamily investment platform. Over the next five years, we are targeting the acquisition of 10 properties per year, each with 200-300 units, focusing on the nation’s top 50-60 markets,” Reiner said.

The Philadelphia area acquisition, Summer Chase, is about 28 miles from Center City in Limerick, PA. The property has 198 units. The property was acquired for $36.3 million ($183,333 per unit) from Capri Capital Partners, an institutional seller. The new ownership plans to invest $2.5 million in renovations including kitchens, bathroom fixtures, and HVAC systems. Freddie Mac provided the debt financing.

The Georgia acquisition, Grove Mountain Park, is about 18 miles from downtown Atlanta, and was acquired for $21.6 million ($81,000 per unit). The venture plans to invest $3.15 million in renovations to common areas and individual residences. Debt financing was provided by Fannie Mae.

5 Cap affiliate Forty Two LLC (Forty2), a multifamily property management, development, and consulting firm, will manage all of the JV’s acquisitions. Forty2 managed Grove Mountain Park prior to the acquisition and is taking over management of Summer Chase.

RREIC is the founder and sponsor of the Delaware Valley Real Estate Investment Fund and co-sponsor of Develop-DC LP. DVREIF is an open-end commingled fund whose investors include eight of the largest Philadelphia building trades union pension funds. Through DVREIF, RREIC targets major value-added, development and redevelopment and projects with top-tier sponsors located throughout the Philadelphia area.

Develop-DC is a closed-end fund that is jointly sponsored by RREIC and Real Estate Capital Partners of New York City. Develop-DC is focused on new development projects in the greater Washington, DC area.

Capri Capital Partners Sells Summer Chase Apts for $36.3 Million

A partnership between a Pennsylvania-based real estate investment firm and a private-equity fund managed by JMP Group, Inc. announced the purchase of the Summer Chase Apartments in Limerick, PA, for $36.3 million, or about $183,333 per unit.

The partnership of Plymouth Meeting, PA-based RREIC Advisors, LLC and JMP acquired the 198-unit property at 100 Hunsberger Dr. from Capri Capital Partners, LLC.

The community was built in 1999 on about 15 acres and includes 26 buildings totaling 216,254 square feet. The new owners plan to spend $2.5 million on renovations of the kitchens, bathroom fixtures and HVAC systems. Occupancy was 95% at the time of sale.

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