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Weis Markets to buy three Genuardi’s stores

2012-02-13T12:28:00.000-05:00

"Weis Markets Inc. on Monday said it was buying three Genuardi's supermarkets from Safeway Inc. - locations on Ridge Pike in Conshohocken, Old Dublin Pike in Doylestown, and West Germantown Pike in Norristown.

No sale price was disclosed.

Weis said the suburban Philadelphia stores would operate under the Genuardi's name until the deal was finalized.

The three stores being acquired by Weis are among eight supermarkets that Safeway, Genuardi's parent company, said it would try to sell.

In January, Safeway announced an agreement to sell 16 of its 27 Genuardi's supermarkters to Giant Food Stores for $106 million.

"We're extremely pleased to be adding these stores to our store base," Weis Markets' president and chief executive David J. Hepfinger said in a news release. "We look forward to serving these communities as the lead local merchant as we have in 33 counties throughout central, eastern and northeastern Pennsylvania. We will also be reaching out to the associates of these stores to discuss employment with our company."

Weis Markets was founded 100 years ago and today operates 161 stores in Pennsylvania, Maryland, New York, New Jersey, and West Virginia."
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Southeast's tallest skyscraper hits the auction block

2012-02-12T16:16:00.002-05:00

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Developers: Boxing might return to the Blue Horizon

2012-02-12T15:59:00.003-05:00

"Plans to convert the famed Blue Horizon on North Broad Street into a hotel with two restaurants are moving forward, its developers say.

But a new notion - spurred by numerous inquiries the developers say they've received over the last month - also would have it housing a venue for boxing - the very thing the original Blue Horizon was known for.

"We are considering it. It is known internationally as a boxing venue," said Scott Orens of Orens Bros. Real Estate Inc., co-owner and co-developer of the property with Mosaic Development Partners of West Philadelphia.

"We have to make it so that the guests in the restaurants and hotel are compatible with the people watching boxing," Orens said. "We have to make sure that all blends together in a functional kind of way."
In early August, plans for converting the Blue Horizon, on the 1300 block of North Broad Street, into a hotel to cater to Temple students and their families were announced. The hotel also would help meet new room demand resulting from the expanded Convention Center.

The 84-room hotel is being rebuilt with the aid of a $6 million state grant from the Corbett administration. Details about the restaurants, one of which will be a catering hall, are still being worked out.

Orens said more than half of the building would be restored, and the rest - including the hotel - would be ground-up development.

The site remains under agreement for a change of ownership for an undisclosed amount, he said.

Orens said Thursday that work on the 146-year-old property likely would start at the end of May, to meet the grant's timeline requirement.

"Construction will begin shortly. . . . We are talking to several different flagship hotels," he said. "It's still very difficult these days to get financing. You can't just walk to a corner bank and fill out an application. [But] I absolutely believe it will happen."

Leslie Lewis, who runs Mosaic Partners with Greg Reaves, said the developers were getting the proper approvals and zoning from the city for the hotel conversion.

"There are a lot of pieces still being put together," Lewis said. "We've garnered a lot of support."

That includes support from Vernoca Michael, Blue Horizon president and CEO, whose vision has been "to preserve the facility and not tear it down." The venue hosted its last fight on June 4, 2010.

"We wanted to have it as a place for entertainment, restaurants, a museum for boxing, and of course, a hotel," Michael said. "Mosaic was the one group that wanted to work with my vision."

The Blue Horizon occupies what once were three mansions, built in 1865 and combined by the Loyal Order of the Moose into one large lodge in 1912.

In 1961, the property became the Blue Horizon, going on to host IBF/USBA super-middleweight championship bouts and IBC and NABC state titles and Hispanic championships. Sugar Ray Leonard, Bernard Hopkins, and Arturo Gatti were among the 50 fighters who fought there and went on to win world titles.

In 2005, Ring magazine called the Blue Horizon "the best place to watch a boxing match." But by summer 2010, the venue had closed because of tax problems.

For the Blue Horizon to stay true to its boxing heritage, Orens said, some issues have to be ironed out.

"There are concerns from the neighborhood about previous events . . . where patrons may have taken their rowdiness outside," he said. "But our venue will be much nicer, and having actual fights is . . . absolutely on the table and being discussed."

Phone calls have been streaming in, Lewis added, from "people that follow the sport that really want to have this facility still host some fights. Because of the authenticity of the experience, they feel it would be a big loss to the boxing community. About a month ago, we started definitely examining it."

But changes would be needed to accommodate today's fights.

"The Blue Horizon, as is, does not compete well with the existing newer and larger venues," Orens said. "It is not up to code. It doesn't have a sprinkler system. When you went there, you sat almost next to the ring.

"The new boxing venue would have to be different, but within the same arena."
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Office-space speculators make a capital killing

2012-02-12T15:53:00.000-05:00

"Money's tight for Pennsylvania. But last month, a state agency went to Wall Street and borrowed $107 million to enrich a California hedge fund, a Wall Street bank, and other speculators in a Harrisburg office building.

Result: Investors who bought bonds tied to the city's Forum Place at deep discounts are being paid full price to turn them in, giving them millions in profit.

But state officials say that's still a good deal for taxpayers - because the new arrangement will allow state workers to park their cars at a discount.

Our story opens in 1998, when the Dauphin County General Authority, one of the many local financing agencies that keep politicians and their bankers, lawyers, and advisers busy, raised $86 million - through bonds sold to Merrill Lynch, PaineWebber, First Union mutual funds, and Wilmington Trust - to buy Forum Place.

But in 2001, Forum's main tenant, PennDot, moved out. As rent stopped, cash for bond payments dried up. (The firm that arranged the financing, Dolphin & Bradbury Inc., was fined $800,000 by the Securities and Exchange Commission for not warning investors.)

As the bonds defaulted, investors cut their losses and sold at discounts approaching 50 percent. Most were bought by an arm of Saybrook Fund Advisors L.L.C., Santa Monica, Calif. Citigroup bought bonds with a face value of $12 million.

Saybrook found the building poorly managed. Comanaging partner Jon P. Schotz told me his firm went straight to work "fixing things the way we wanted, as opposed to the way those chuckleheads did."

Soon, Pennsylvania agencies were moving back to Forum Place. The authority's finances slowly mended, Schotz told me. "It would take them 10 years" to replace the lost bond payments, he said. "Maybe 15."

Investors didn't want to wait. They sued to make the authority pay faster. Commonwealth Court said no.

Saybrook kept recruiting tenants. In 2009, the state signed a 25-year lease to fill Forum Place.

A lease that long "happens very rarely. Generic office space is easily replicated. If you're leasing for 25 years, why don't you just buy it?"

But the Rendell administration tended to sell state office buildings (like the one in Philadelphia, to developer Bart Blatstein, for $25 million, later cut to $21 million), and lease private space instead.

Why lock in so long? "The reason we did the long-term leases, we were trying to consolidate space from a lot of smaller locations, in a more centralized master lease," James Creedon, who headed Gov. Rendell's Department of General Services, told me. Forum Place fit; Saybrook's price was a "long-term relationship."

After Gov. Corbett took over, Saybrook proposed that the state buy out Saybrook's old Dauphin County General Authority bonds, with payments equal to its old rents.

"The state didn't have any obligation to pay on the bonds," Schotz acknowledged. So Saybrook sweetened the deal: It gave the state control over parking, enabling it to avoid a threatened increase in Harrisburg parking costs, said Troy Thompson, spokesman for the state Department of General Services.

The deal also gave the state the right to buy the building for $1 at the end of its long lease if it wants.

The new bonds are issued by the Pennsylvania Economic Development Financing Authority. In a letter to Internal Revenue Service chief counsel William Wilkins, Mark Schwartz, a Haverford lawyer who helped draft the law that set up PEDFA, called the new bond a "perversion" of the agency's old focus on funding "small manufacturing entities."

Schwartz urged the IRS to review the bonds' tax status. He calls the deal "a bailout" for people who don't need one - inappropriate in a state intent on cutting costs."
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Potential buyer found for Divine Lorraine Hotel

2012-02-12T15:49:00.000-05:00

"The owners of the Divine Lorraine Hotel have entered into an agreement with a local developer who would buy and renovate the derelict landmark on North Broad Street, a member of the ownership group said Friday.

Michael Treacy Jr., one of the partners that owns the building, would not identify the company, but said the Philadelphia developer had an option to take over the abandoned hotel and an adjacent three-acre vacant lot.

The potential buyer is examining the specifics of a deal, he said.

"We should know within 30 days of their due diligence if they will proceed or not," Treacy said. "All indications are looking good."

Treacy and his father, Michael Sr., a local builder, were part of an investor group that paid $10 million in 2006 for the 118-year-old building and land. The other partners were Sunergy Housing, a Dutch firm, and Michigan-based NSI Real Estate Group.

The partnership had ambitious plans to restore the hotel and build residential towers on the vacant lot. But the economic downturn derailed the project.

"The financial collapse made it impossible to get funding to do the project," Treacy said.

In recent months, political pressure has been building for the owners to sell the blighted property.

Mayor Nutter last Monday told the Greater Philadelphia Chamber of Commerce that the Divine Lorraine was standing in the way of a rebirth of North Broad Street and that he wanted to see it restored.

The current owners owe the city $702,779.82 in back taxes and defaulted on a construction loan from the union-owned Amalgamated Bank of New York.

Treacy said the option with the Philadelphia developer was "arranged with the bank and us."

This is the fourth potential deal to sell the Divine Lorraine in recent years, Treacy said. He did not know what the plans might be for a new owner."
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Amazon considers N.J. warehouses

2012-02-10T09:29:00.000-05:00

"Amazon.com is considering putting two warehouses in New Jersey, one near Philadelphia and the other near New York, KYW Newsradio reports.

The move would bring 1,500 jobs and give Amazon (NASDAQ:AMZN) a so called “nexus” in the state, meaning it would have to collect state sales taxes on purchases.

Pennsylvania has recently given Amazon and other Internet retailers with physical presences there until Sept. 1 to begin collecting sales tax."
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Kimco Realty CEO on Solid Earnings & 4.1% Yield

2012-02-10T09:28:00.000-05:00

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RedGo buys 32 acres in NJ

2012-02-10T09:16:00.000-05:00

by Natalie Kostelni
RedGo Development is taking a gamble on this Camden County community that sits midway between Philadelphia and Atlantic City. It bought 32 acres on White Horse Pike.

The undeveloped land neighbors the Virtua Berlin Hospital, borders Jackson Road and is across from the Berlin Shopping Center where a Kmart serves as the anchor. The land was bought at an auction.

The property had been owned by an undisclosed local family who held onto it since the 1960s but never developed it.

It’s the first time RedGo, based in West Chester and with multiple projects in Philadelphia’s western suburbs, has ventured into South Jersey. The company was formed in 1998.

“We’re always trying to expand our focus into other areas,” said Fred Goebert, president of RedGo. “South Jersey has always been in our target zone.”

In the last two years, Goebert figured RedGo had made $200 million in bids on at least a dozen South Jersey properties.

“We finally had some luck,” he said.

The parcel has a lot of potential, Goebert said. It has 1,600 feet of frontage on White Horse Pike and its proximity to Virtua Berlin Hospital might lend itself to uses associated with the hospital. However, Goebert hasn’t completed any market studies and is just beginning to evaluate how RedGo might develop it. It’s zoned for retail and office.

It hasn’t been easy for Berlin to attract new businesses to the community or to lure developers to vacant parcels. A 44-acre site that Owens Corning Fiberglas Corp. owns at 160 Jackson Road has sat undeveloped since 1993 when the company decided to close the calcium silicate plant and cut 100 jobs there.

“We have had some improvement along White Horse Pike with some of the older buildings but it’s a slow process especially with the economy now,” said Berlin Borough Mayor John Armano.

“The businesses in town are hanging on by a shoestring. It’s tough. No one wants to spend the company. No one wants to loan money.”

A bank drew up plans not long ago to build a new branch on two acres on White Horse Pike (Route 30) but decided to walk away from the idea, Armano said. The property was priced way too high, he said.

Though it is zoned for office, the demand for new office space is weak in South Jersey.

“We have 18 percent vacancy in good areas,” he said, adding that medical offices might work since the hospital is so close.

Goebert is optimistic. He views the vacant land he bought, the Owens Corning site and other parcels as ripe for new construction.

“From this site all the way to Route 73 there is a lot of vacant land and there will definitely be some big development going on there between now and over the next decade,” Goebert said.
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Sam Zell's Commercial Real Estate Strategy

2012-02-08T13:02:00.000-05:00

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Megger Renews 58,000 SF of Flex Space

2012-02-08T12:44:00.002-05:00

Megger, an electric test equipment company, renewed 57,638 square feet in the flex building at 2621 Van Buren Ave. in Norristown, PA.

The 251,751-square-foot building was constructed in 1969 and features five loading docks, 36-foot clear height, and 14-percent office build-out.
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Retail Real Estate Crunch

2012-02-07T17:16:00.002-05:00

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BASF is selling its 23-building complex, No asking price

2012-02-05T08:17:00.000-05:00

by Natalie Kostelni
"BASF Corp. has put up for sale a 23-building complex here, in which some buildings have been in use for 80 years.

The campus at 300 Brookside Ave. totals 284,080 square feet in a mix of lab, office, warehouse and other space. BASF, a chemical company, inherited the property when it bought Cognis Corp., a specialty chemical company.

The facility has connections to the American Chemical Paint Co., which was formed in Philadelphia in 1914 by James H. Gravell. The company relocated to Ambler in a new plant constructed in 1922. The company’s first product was Deoxidine, a rust inhibitor for metal that was used in the car industry and other areas.

American Chemical later changed its name to AmChem Products Inc. and was bought by Union Carbide Corp. in 1977. Three years later, Henkel bought AmChem. Henkel established in 1999 an independent subsidiary for biotechnologies and environmental technologies under the name Cognis BV. For years, the Ambler campus was referred to as the Cognis site for operations working out of it.

Cognis was sold to a consortium of private equity firms in 2000. In December 2010, BASF bought Cognis, which is a smaller competitor based in Luxembourg.

BASF decided last March that the office and laboratory activities in Ambler would cease by the end of the first quarter of the year, with operations integrated into existing BASF businesses in Florham Park, N.J.; Charlotte, N.C.; Tarrytown, N.Y; and Wyandotte, Mich., said John Schmidt, a BASF spokesman.

All BASF lab employees will be relocated to new locations by March 31. After that, a small team of maintenance workers will remain at the site through the end of this year, Schmidt said. In all, 76 employees worked from the site.

Eight tenants occupy the space. About 54,000 square feet of the office and 44,000 square feet of lab space will soon become vacated.

No asking price has been set for the campus, however, the sale price will be ultimately affected by whether the vacant space gets released. With that space filled, an investor will find more value in the property and maintain it in its current state.

A developer might envision redeveloping a portion of the property and selectively demolishing some buildings while retaining the existing space currently being used by tenants. A master plan of the property was recently designed by KlingStubbins that gives one blueprint for how the campus could be redeveloped.

“It’s not a situation where you knock it all down and start from scratch. Everyone will look at this differently.”
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Drexel starts $97M project

2012-02-05T08:12:00.000-05:00

by Natalie Kostelni
"Drexel University will break ground this month on a $97.6 million mixed-use development that will establish a new gateway to the school on Chestnut Street and be among the first projects that begin to transform its urban campus.

In what is a first for Drexel, the school entered into a private partnership with American Campus Communities of Austin, Texas, to construct three buildings totaling 361,200 square feet on land it owns on Chestnut between 32nd and 33rd streets. Under the agreement, American Campus has a 70-year ground lease with Drexel and will also manage the property.

“If this is successful, this will be the first of several,” said John A. Fry, president of Drexel, in a December interview about the development plans.

Such arrangements with private developers have become more common for universities. The University of Pennsylvania, where Fry spent part of his career as executive vice president and helped oversee a series of construction projects that reinvigorated the Penn campus and its surrounding neighborhood, was an early convert to the practice and completed several developments under such arrangements.

Drexel anticipates striking at least a couple more of these agreements in the near future, said Jim Tucker, senior vice president of student and administrative services. It was decided the school would engage third-party developers on all non-academic buildings and use debt service and capital funds on academic facilities. This spring it will seek to do an even larger but similar mixed-use complex at 34th Street and Lancaster Avenue that will cost between $125 million and $150 million and will use an outside developer to complete the work.

Ten regional and national developers vied for the Chestnut Street project, Tucker said. American Campus was selected after a thorough vetting, he said. The company is a real estate investment trust that focuses on the construction, ownership and management of student housing properties across the country. It owns University Crossings, a development off Drexel’s campus, and constructed University Village, an off-campus student housing project for Temple University.

American Campus was eager to get another project in Philadelphia and with Drexel.

“We believe Drexel is one of the top private universities in the United States and we became even more enthused when Fry announced his growth vision for the institution,” said William C. Bayless Jr., chief executive officer and president of American in an email. “Additionally, the incredible site that Drexel brought to the table with the vision of it being the gateway to University City is a strong feature of this project. This project is expected to be one of our flagship communities and will be similar to our other urban high-density projects in Portland, Honolulu and Newark.”

Combined with the retail space, the Chestnut Street project will create 869 new beds for Drexel students and create a vibrant anchor for the campus. One of Fry’s goals is to revitalize Drexel’s campus, make it more pedestrian friendly and breath new life into the surrounding community.

The development will stand on an L-shaped site that’s about an acre in size. The parcel is a combination of a setback and a sunken garden that was “kind of pretty but never used,” said Bob Francis, who heads up the facilities department at Drexel. “We’re talking about strips of land that were not put in any productive use especially in an urban setting.”

The project will consist of two, eight-story buildings on Chestnut Street. The structures were designed with an open corridor to the school’s Creese Student Center. They will have retail space on the first two floors and townhouse-style student housing on the remaining six stories. In addition, a 19-story residential hall will be constructed behind the two structures.

In all, 30,000 square feet of retail will be created and already there is interest in the space, Francis said.

“There’s tremendous depth of market for every category who wants to open up and sign leases,” he said. “We expect to be fully leased very soon and before construction is done.”

Robert A.M. Stern Architects designed the project.

Drexel is scheduled to break ground Feb. 21 on the yet unnamed development. It is expected to be completed by September 2013.
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Aramark Tower in Phila., Bishops Gate come on the market

2012-02-05T07:58:00.001-05:00

by Natalie Kostelni

"Two major office properties have come up for sale in what may be a sign the local investment market is gaining traction.

Aramark Tower in Center City and Bishops Gate in Mount Laurel, N.J., are for sale and will test two different office markets appeal to commercial property buyers. They will also offer a glimpse into whether investors are willing to strike big office deals.

Property sales last year rose by 57 percent to $220 billion, according to Real Capital Analytics. Retail and apartment properties led the way, and office buildings struggled across the board. Locally, that was also the case. 1700 Market St. in Center City got sold but other buildings, such as the Curtis Center, Public Ledger and Two Penn Center, hit hurdles.

Aramark Tower is a 32-story, 620,000-square-foot office building at 1101 Market St. Girard Estate bought it in 2002 for more than $80.5 million. The property is fully leased, and its lead tenants are Aramark Corp., which makes its headquarters there and occupies roughly 60 percent of the building. The remainder of the offices are occupied by the city of Philadelphia, a law firm and other companies.

This isn’t the first time Girard has tried to unload Aramark. In 2007, Grasso Holdings tied it up in a deal valued at $101 million but that fell apart months later. The tower was pulled from the market as the credit freeze and recession worsened.

Now, Girard is willing to see if a buyer is interested in the building.

“As a fiduciary for the school, they are looking at this asset and trying to determine what the market will pay for it. At a certain price, they are a seller but like any well-capitalized owner, at a certain price, they are not.”

Since the investment market is still going through the process of being re-stabilized, it’s difficult to gauge how much Aramark might trade for though some have estimated it could command as much as $115 million.

The other property up for sale, Bishops Gate, is owned by iStar Financial, which bought the property in 2003 for $79.8 million. It’s a two-building complex referred to as Bishops Gate I and II and has a combined total 483,896 square feet. It sits within the Bishops Gate Corporate Campus. Both buildings are fully occupied by PHH Mortgage Corp., which uses the space as its headquarters for its 2,900 employees. PHH has more than 10 years left on its lease.

Bishops Gate I is at One Mortgage Way and totals 376,122 square feet. Bishops Gate II at 2001 Bishops Gate Blvd. totals 107,774 square feet. Both facilities were constructed in 1999.

“There are a lot of investors who like to buy properties that are net leased with 10 or more years,” he said. “They specialize in that type of business.”

The predictability of a complex such as this is what attracts them to buy it, he said.

Bishops Gate could sell for more than $90 million."
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Center City dragged down by vacancies

2012-02-03T17:38:00.000-05:00

by Natalie Kostelni

"The Philadelphia office market is beginning to suffer from an emerging real estate trend: tenants who take less space even though the number of employees remains the same or may even grow.

Several companies who signed large leases within the last year, including GlaxoSmithKline, Janney Montgomery Scott, and Reed Smith, shrank the amount of space they leased and others currently in the market are seeking to do the same. Referred to as space utilization, these firms sought to create more open, modern office environments that rely on collaborative space and take into account the actual amount of time an employee spends in the office.

A study by Francis Cauffman, a Philadelphia architectural firm, concluded a majority of offices are occupied just 45 percent of the time and employees conduct 70 percent of their work in group settings. The heyday of the cubicle, where people toil in their own personal space that typically totaled well over 200 square feet, may well be over. How much is now sought? Just over 120 square feet or less. The poster child is when GlaxoSmithKline relocates out of One Franklin Plaza, a 624,000-square-foot building, and moves to the Navy Yard next year.

While this translates into companies needing less office space and savings on their real estate expenses, it also has meant landlords are becoming saddled with unexpected vacancies.

It will catch up with some markets faster than others depending on what sectors are dominante. While accounting, insurance and other firms are ripe for that type of off-site work and office set up, it doesn’t fit for every one.

As a result of the new layout, companies are flipping the traditional ratio between office and open space. Many tenants are coming out of offices they have occupied for the last 15 to 20 years and decided to change their footprint to now have 70 percent open space and 30 percent office space.

“If you had to project into the future, the trend is more and more about reducing the footprint per employee."
Firms are also taking into account improvements in technology and communication that spurs more telecommuting. While space utilization is contributing to the overall vacancy rate of 14.1 percent in Center City, the office buildings with the 10 largest pockets of empty space also show other factors at work. Some of the vacancies, such as what is seen at 10 Penn Center, is a result of tenants moving in to fancier office space on the cheap. There’s also still a hangover from 2008 and 2009 when companies made layoffs during the height of the recession.

“The analogy I use is you’re a size nine in size 12 shoes. Some firms have not right-sized and when they do right-size, you’re going to find every one is taking less space.”

Vacancies in two buildings, 401 Market St. and 801 Market, reflect downsizing that’s happened in banking. At 401 Market, Wells Fargo vacated an 87,000-square-foot gap, and Citizens Bank moved out of 125,000 square feet at 801 Market. The 135,000-square-foot vacancy at 1650 Arch St. is the result of the dissolution of law firm Wolf Block.

Back filling the vacancies will be a challenge and in the meantime it has meant a downward pressure on rents.

“Rents are driven by demand and demand is dropping. The only things that can stabilize Center City rents are two things: job creation, and that hasn’t happened too much, and buildings formerly used as office space coming off line and finding another use.”
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Philly Sale & Lease Trends for Commercial Buildings

2012-02-01T15:32:00.000-05:00

Philadelphia Office Property Ask Price Index - Sale Trends Per SF (click pic to make larger)

Philadelphia Office Property Ask Price Index - Lease Trends Per SF (click pic to make larger)

Philadelphia Industrial Property Ask Price Index - Sale Trends Per SF (click pic to make larger)

Philadelphia Industrial Property Ask Price Index - Lease Trends Per SF (click pic to make larger)

Global Economic Outlook by Goldman Sachs'

2012-02-01T15:12:00.000-05:00

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45,000 SF Pottstown, PA Lease for Service Partners of the Carolinas

2012-02-01T13:01:00.000-05:00

"Service Partners of the Carolinas, a MASCO subsidiary, has signed a lease for 45,000-square-feet at the Tri-County Business Campus, which is located at 1000 Armand Hammer Blvd. in Pottstown, PA.

The lease enables MASCO's insulation division, known as East Coast Insulation, to better serve its customer base along the Eastern seaboard.

MASCO companies include such brands as Kohler, Kraftmaid and Behr Paints. MASCO is based in Taylor, Michigan, and had revenues of approximately $7.6 billion in 2011."
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Tequesta Properties Buys Two NJ Buildings from REIT Brandywine for $22.8M

2012-02-01T12:40:00.002-05:00

"Marlton, NJ-based Tequesta Properties, Inc. has acquired Five Greentree and 30 Lake Center, two Marlton office buildings totaling 206,243 square feet, from Brandywine Realty Trust for $22.8 million.

Five Greentree Centre is a 165,956-square-foot, four-story office building located at 525 West Lincoln Drive in the Greentree Corporate Centre. 30 Lake Center Drive is a 40,287-square-foot, single-story office building located at 30 Lake Center Executive Parkway in the Lake Center Executive Park. Both buildings were developed in 1986 and are situated off route 73.

Tequesta has grown its southern New Jersey office portfolio to six buildings totaling 395,000 square feet. In late 2010, the firm purchased 8000 Lincoln Drive, One Greentree Centre at 9000 Lincoln Drive, Two Greentree Centre at 10,000 Lincoln Drive and 10 Lake Center Drive from Brandywine, all commercial buildings in Marlton.
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'Habitat' opening store at former Acme

2012-02-01T08:27:00.003-05:00

"Habitat for Humanity officials have agreed to terms with Giant Food Stores that will set the stage for the opening of a ReStore at the old Acme building in the New Garden Shopping Center.
Charles ‘Chip” Huston, executive director for Habitat for Humanity of Chester County, said the ReStore should be open by the end of April. It will be Habitat’s 18th ReStore in Pennsylvania.
The store will be similar to Habitat’s ReStore in Caln Township, but in addition to selling furniture, tools, fixtures and appliances, it will also sell bedspreads, sheets, clothing and curtains.
Habitat’s ReStore will occupy about 18,000 square feet of space, or about one-third of the Acme building that has been vacant for the past five years. The remainder of the space will be leased by Giant to two other businesses that plan to open sometime this year."
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World Trade Center Rises, And So Does Its Price Tag

2012-01-31T12:03:00.000-05:00

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Philadelphia's Retail Vacancy Decreases to 6.3%

2012-01-31T09:36:00.002-05:00

"The Philadelphia retail market did not experience much change in market conditions in the fourth quarter 2011.

The vacancy rate went from 6.4% in the previous quarter to 6.3% in the current quarter. Net absorption was positive 725,884 square feet, and vacant sublease space decreased by 366,346 square feet.

Tenants moving into large blocks of space in 2011 include: Target moving into 133,500 square feet at Shoppes at Kissel Village; and Burlington Coat Factory moving into 110,000 square feet at Whitman Plaza.

Quoted rental rates decreased from third quarter 2011 levels, ending at $13.96 per square foot per year.

A total of 12 retail buildings with 453,996 square feet of retail space were delivered to the market in the quarter, with 1,819,784 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. national retail vacancy rate, which decreased to 6.9% from the previous quarter, with net absorption positive 16.3 million square feet in the fourth quarter."
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Action Manufacturing Chooses PA over South Carolina

2012-01-31T08:53:00.000-05:00

"Action Manufacturing purchased a 128,000 sq.ft. former Ferag Inc. printing-automation equpiment plant at 190 Rittenhouse Circle, Keystone Industrial Park, Bristol, PA. Action is a Philadelphia-based company that makes military fuses and detonators maker, for $6.125 million.

Action boss Arthur Mattia has been considering moving the company and 175 jobs from aging buildings on the St. Christopher's Hospital's campus at 2nd and Erie, to North Carolina, which is trying to entice Northern companies South to replace manufacturing jobs that have left for China and other countries.

Their broker said the state and local government officials deserve credit for raising job-training funds to help keep Action in Pennsylvania."
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Construction Begins on the Courts at Spring Mill Station

2012-01-30T12:00:00.001-05:00

A fence went up around the Reilly Foam building at Hector and North Lane recently and some demo work as begun on the back of the property. As we have previously reported, Home Properties is building over 300 apartments and some retail at the location.
Previously Reported: http://tinyurl.com/83hcgb9
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Landlords Poised to Regain Upper Hand In Recovering Office Market

2012-01-27T12:24:00.000-05:00

2011 Sees Office Leasing, Sales and Pricing Improve Amid Growth In Office Jobs and Rising Tenant Demand. Outlook Has Landlords Preparing To Sing: "Our Day Will Come"

"Office space absorption doubled during 2011 as the office-using job base expanded and vacancies declined across nearly two-thirds of U.S. submarkets, CoStar Group reported this week in its Year-End 2011 Office Review & Outlook. The report presented to CoStar clients found that positive momentum in office fundamentals and the continued absence of new construction is expected to result in higher rents for building owners over the next few years.

Office sales increased steadily through 2011 over the previous year as investors sought to get ahead of the curve, with investor interest spreading beyond the safer well-leased investment-grade buildings in top-tier markets and into smaller properties and second-tier markets such as Seattle, Atlanta and Northern New Jersey. Total fourth-quarter 2011 office sales are likely to match or exceed fourth-quarter 2010’s impressive $25 billion once all sales are tallied.

Total CRE sales, which evened out in 2011 across all property types, is estimated at nearly $300 billion, the highest since the peak of the real estate boom in 2007, and well above the historical average of around $220 billion since 2000.

Although office tenants continue to hold the cards in many markets, (see related topic:"Renew or Relocate? Incumbent Landlords Willing To Sweeten the Pot") CoStar reports the outlook appears to increasingly favor building owners in coming years as the cycle continues.

"To sum it up, for the office market, we’re just now getting started. Now is a good time to be an office investor," said Walter Page, director of research for Property and Portfolio Research (PPR), CoStar’s analytics and forecasting division. "We expect vacancy to continue to decline through 2015, and when you have declining vacancy rates, you can raise rents, returns are better, and for an investor, that’s good news."

Economy Shows Positive Signs For CRE

CoStar Group founder and CEO Andrew Florance noted that, although overall employment growth has been anemic, the U.S. posted a solid 1.7% gain in office-using jobs, led by technology and energy markets such as Seattle, Boston, San Francisco and Dallas.

Other positive signs abound, including a leveling off in the loss of manufacturing jobs and a bottoming of the housing market, which should be less of a drag on the economy going forward, and likely to be the source for new jobs as replacement demand for single-family and apartment housing fuels expected construction demand.

Meanwhile, corporate profits are off the charts, from $800 billion in 2000 to $2 trillion in 2011.

"Coupled with low interest rates, companies are in a position to invest aggressively in new facilities and equipment. From a CRE perspective, Corporate America is well positioned to invest in their businesses, plant facilities and equipment," Florance added.

Challenges remain, including relatively weak consumer confidence, continued high unemployment, a record federal budget deficit and economic upheaval in Europe. Occupancy recovery varies widely between metros, with "have" markets such as supply-constrained New York City showing 7.4% vacancy and housing bust "have-nots" like Phoenix lingering at a stubbornly high 20.7%.

However, CRE values have recovered to roughly 2000-year levels, and vacancies declined across the country last year. In a strong indicator of an impending office rebound, vacancy rates declined in 63% of the 2,400 office submarkets tracked by CoStar. That’s the strongest number since 2004-05, which roughly marked the beginning of the last CRE up cycle.

In the fourth quarter, CoStar recorded 18 million feet of net absorption, which drives occupancy rates and other leasing fundamentals, and a total of 49 million square feet for the year, doubling 2010’s absorption.

Despite rising concerns about the darkening economic picture that started last spring and continued through the year, absorption rose sharply in the second half of 2011, said Page, noting that companies are leasing space "and smaller tenants, the lifeblood of the office sector, are back."

Jay Spivey, CoStar senior director of research and analytics, said that the office recovery, while not feeling very strong so far for many landlords and investors, is actually much stronger than the recovery in the office market following the collapse of Internet companies and real estate downturn 10 years.

"We have seven quarters of positive growth, and at that same point 10 years ago, we were still seeing negative absorption," Spivey said.

Concessions Starting to Disappear

With improving occupancy and little new supply, concessions like free rent and tenant improvements are burning off in some markets and overall, the long downward slide in average office rents has likely bottomed.

CoStar sees significant upside in office rents, which are currently 11% below their long-term trend, Page said. With office construction at an all-time low, rents will rise and are expected to reach their long-term average between 2015 and 2017.

The analysts singled out "premier" suburban areas located near the urban core in markets such as Bethesda, MD, and West Los Angeles are seeing net absorption recover much more quickly on a rolling annual average compared with CBDs or outer suburban areas. Likewise, a survey of four- and five-star buildings in CoStar’s new Building Rating System, the equivalent of the top Class A properties, shows that the best buildings are absorbing most of the space. One- and two-star buildings, typically Class C, were hammered during the recession and are recovering more slowly.

While national vacancy and availability rates are both trending down, there are vast differences within metros and within the CBD and suburban properties in those markets. In Miami, for example, the CBD vacancy rate is about 22%, while suburban and premier suburban rates are lower. By contrast, Atlanta’s Buckhead premier office suburb, where much new construction came on line as the recession hit, has the highest vacancy at over 20%, more than 6 percentage point higher than the Atlanta CBD.

Investors Explore Secondary, Suburban Markets for Deals

The return of portfolio sales outside the largest markets in 2011 shows that investors, who largely retreated to the safety of well-leased properties in safe core markets like Washington and New York over the last couple of years, are ready to assume risk in certain transactions, with the help of a slowly returning flow of debt financing.

Distressed sales volume as a percentage of total office sale transactions fell during 2011. As distress has abated, prices have begun to rise over the last couple of quarters, spreading from investment-grade properties to smaller general commercial sales, according to the CoStar Commercial Repeat Sale Index (CCRSI).

Pricing has risen in most markets and is approaching replacement cost for some buildings, Spivey noted. Higher occupancy buildings are fetching a higher price premium currently than in 2007, possibly opening a window for investors on opportunities in select vacancy challenged properties.
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Five Tower Bridge in W. Conshohocken sold for $70M

2012-01-27T09:26:00.000-05:00

by Natalie Kostelni

"Five Tower Bridge, one of the crown jewels of the suburban office market, has sold less than two months after coming on the market. It traded for an estimated $70 million to MIM-Hayden Real Estate Fund I, which is a partnership comprised of Hayden Real Estate Investments, Miller Investment Management, both of Conshohocken, and the Davis Cos. of Boston bought the building.

The last time Five Tower sold was in October 2008 when KBS Realty Advisors of Newport Beach, Calif., bought it for $73 million, or around $327 a square foot.

The eight-story, 222,058-square-foot building at 300 Barr Harbor Drive in West Conshohocken is one of the few premier office buildings to trade in recent years as investor appetites have gotten picky about which commercial property buildings, particularly office, they will invest in. When it comes to office structures, many want to buy well-leased, Class A buildings in prime locations.

“It was actively sought after this time as well as previous times for simple reasons, It’s the best of the best. If you’re in the office building investment business, West Conshohocken is undoubtedly the center of the universe.” The building commands $35 a square foot in rent, which is the highest in the suburbs with just a couple of other office properties managing to attain that level.

The MIM-Hayden fund is no different from those selective buyers seeking high-quality office buildings.

“This is a core property in a core market,” said J. Anthony Hayden, chairman of Hayden Real Estate Investments.

The MIM-Hayden fund, which totals a little more than $100 million, had been seeking to buy in the Conshohocken area for the last three years without much success. It decided to take a run at Five Tower in early December and KBS wanted to close by mid-January. The transaction was a “little complicated,” Hayden said.

A mortgage had to be assumed and typically the MIM-Hayden fund doesn’t like to put in more than 10 percent of the fund into a deal; it decided to put in a little more but was still short.

“We had to scramble,” Hayden said.

It sought out extra money from James J. Maguire Sr., founder of Philadelphia Consolidated Holding Corp. who is also an investor of the MIM-Hayden fund, and other undisclosed high-net-worth individuals to help close the funding gap. The transaction was finalized Jan. 23.

“We bought it right,” Hayden said.
The building is fully occupied and many of the tenants are in the space for the long term. Keystone Foods leases 50,000 square feet through 2019, Oracle America Inc. is in 49,000 square feet until 2020 and Hirtle Callaghan & Co. occupies nearly 30,000 square feet through 2021. Those three tenants account for 50 percent of the building’s occupancy.

Five Tower was constructed by Oliver Tyrone Pulver in 2001 as part of the company’s Tower Bridge complex that has developed over the years in West Conshohocken and Conshohocken. It is the 10th property the MIM-Hayden fund has closed on in the past 11 months. Of the $100 million, 45 percent of the fund has been deployed on a range of office, industrial and other property acquisitions."
Full story: http://tinyurl.com/6nal7yg
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Villanova expanding

2012-01-27T09:20:00.000-05:00

by Natalie Kostelni
"Villanova University is proposing a more than $200 million expansion to its campus that would significantly re-shape an area along Lancaster Avenue that is now a series of barren surface parking lots.

Early plans call for constructing four, four- to five-story residence halls, a performing arts center, retail space and an 1,800-vehicle parking garage on the main parking lots. The retail space would be oriented toward the students and mean relocating the school’s bookstore, a bistro and some other uses on the campus.

The main objective of the development would be more on-campus housing and therefore pull the students who live in nearby neighborhoods back to the main campus, according to information about the project on the school’s website. The new residence halls would have 1,160 beds and provide housing for 85 percent of the school’s students. The school doesn’t intend to increase its enrollment.

The development would also help ease town-and-gown tensions that have flared up, particularly when partying students get out of hand or when student vehicles clog up neighborhood streets. It would also create a new gateway for the school on U.S. 30 and provide several “traffic calming” designs that would enhance that area of Lancaster Avenue.

As more students prefer to live on campus, the work will also go a long way in improving a pocket of Route 30. A two-year study of an 11-mile stretch of the corridor starting from its borders in Philadelphia to Old Eagle School Road in Strafford was completed last month by the Delaware Valley Regional Planning Commission.

The study makes a series of recommendations, priorities, plans and strategies that would build on the existing infrastructure but make it more walkable, less congested and connected by bicycling paths. Essentially, the plan makes it more attractive and user-friendly.

“It’s a blueprint for action,” said David Anderson of the regional planning commission. “We found at public meetings that the public in large part were supportive in the recommendations we had. In general, we are all singing from the same hymn books. It’s so obvious what needs to be done but the challenge looking forward is to make it happen in these economic times.”

Villanova is in the early stages of the project and in designing its overall concept, but it has detailed the plans on its website. It hired Robert A.M. Stern Architects of New York and Voith & Mactavish Architects of Philadelphia. The school was set to begin presentations to the community and Radnor officials on Jan. 23 but canceled. No new date has been scheduled, according to the township.

Villanova officials declined comment until it goes before the Radnor Township Board of Commissioners, said Villanova spokesman Jonathan Gust.

The school has held two meetings with neighbors who have some general concerns, said Kathy Bogosian, who sits on the Radnor Planning Commission but hasn’t gotten to see the full proposal yet.

“My personal opinion at this point, since I haven’t reviewed the plans, is the buildings look attractive but a major concern is parking and whether there is enough,” Bogosian said.

The neighbors, especially, the businesses in the nearby Garrett Hill commercial area are worried the new retail will unfairly compete with them and might be able to forego paying some taxes since the university is tax exempt.

A tentative timeline for starting construction of the garage in May 2013 and completing it within a year and then begin building the residence halls between May 2014 and August 2016. The performing arts center could get under way once funding was secured."
Full story: http://tinyurl.com/6qfkcmf
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Global Real Estate Investments in 2012

2012-01-27T09:13:00.002-05:00

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Anro Printing Bldg in Devon Sells for $6.8M

2012-01-26T09:32:00.002-05:00

Anro Printing/Direct Mail sold two adjacent parcels to YBH Sales and Service, Inc. for $6.8 million, or about $87 per square foot.

The properties are located at 222 and 230 W. Lancaster Ave. in Devon, PA. The first is a 75,773-square-foot flex building was previously Anro's corporate headquarters. The adjacent building is a 2,480-square-foot retail bank.
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Save-A-Lot grocery store opens in Delco

2012-01-26T09:06:00.000-05:00

"Save-A-Lot Food Store, a discount grocer with smaller stores, opened Wednesday at the Barclay Square Shopping Center, 1500 Garrett Road.

The 15,500-square-foot store has fresh produce, a meat department and national brands. It creates 40 jobs.

It is operated by Shawn Rinnier of Save Philly Stores LLC, a franchise group that now operates five area Save-A-Lot stores. Last month, the franchise group opened a store in the Germantown section of Philadelphia, at 5834 Pulaski Ave.

Save-A-Lot has 1,280 stores nationwide and is owned by Eden Prairie, Minn.-based SuperValu Inc., which also owns Acme Markets. It has a total of 45 stores in the area."
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Trammell Crow, USAA Break Ground On PA Spec Project

2012-01-24T11:52:00.000-05:00

This is a great sign of the turn around and being under built.

"Trammell Crow Co. and USAA Real Estate Co. have started work on a 700,000-square-foot speculative distribution facility at Mountain Creek Distribution Center in Carlisle, PA.

The two-building industrial project on 113 acres at Exit 44 off Interstate 81 in the Central Pennsylvania industrial market is approved for 1.3 million square feet of warehouse space designed to achieve LEED Core & Shell (CS) certification.

The first building, scheduled for completion next summer, is designed with cross dock loading, 32-foot-clear ceiling heights and onsite trailer storage.

"The I-81 Distribution Corridor continues to be one of the most active markets in the country, with little to no availability for Class A space greater than 500,000 square feet," says Pat Duncan, chairman and CEO of USAA Real Estate.

"The market's comparatively strong performance throughout the economic downturn has further solidified its position as a top tier market," said Andrew Mele, senior vice president, Trammell Crow, which will manage the day-to-day development responsibilities.

USAA manages a multi-billion dollar portfolio including recent acquisitions of $3 billion and development assets of $2 billion. Trammell Crow has developed or acquired over 525 million square feet of buildings with a value exceeding $55 billion. As of June 30, 2011, Trammell Crow had over $3.5 billion of projects in process, $1.4 billion in its pipeline and $1.4 billion in long-term operating assets."
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Lease Renewals and Expansions in Philly

2012-01-24T11:42:00.000-05:00

Berger & Montague renewed 27,260 square feet at 1622 Locust St. in Philadelphia. The Law Offices of Tom Wagner renewed and downsized from 10,500 square feet to 6,243 square feet at 8 Penn Center in Philadelphia. The Pennsylvania Institute of Certified Public Accountants completed its move to its new headquarters at 1801 Market St. in Philadelphia. It had been at 1650 Arch St.

Four Seasons Financial Group Inc. leased a new corporate headquarters in 8,022 square feet at the Marlton Executive Offices, 701 Route 73 in Marlton, N.J. Two Penn Center at 15th Street and John F. Kennedy Boulevard completed a series of four tenant renewals. CDM, an engineering and construction company, extended its lease for roughly 7,200 square feet on the sixth floor of the 20-story building. Sue Ann Eckel, the Philadelphia in-house counsel for Government Employees Insurance Co. expanded from about 4,000 square feet on the eight floor to 6,958 square feet on the 13th floor. McCann, Schaible & Wall, attorneys specializing in personal injury and medical malpractice, re-upped on 5,411 square feet on the 11th floor. Lastly, the Law Firm of John J. Hykel extended the lease on 1,210 square feet on the 13th floor.
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Commercial Real Estate Update with Joe O'Donnell

2012-01-24T08:37:00.000-05:00

http://www.omegare.com/
Thank you to Matt Mittman from Mittman Rehling http://www.mittmanrehling.com/

Exeter Property buys Plymouth Corporate Center

2012-01-23T11:09:00.000-05:00

by Natalie Kostelni
Exeter Property Group has added the Plymouth Corporate Center to its portfolio of properties.

The real estate company snagged the six-building office complex totaling roughly 196,700 square feet at 625 W. Ridge Pike at an auction.

It’s being rebranded as Conshohocken Ridge Corporate Center. The largest building in the complex is a four-story, 91,700-square-foot structure. Four are single-story, 25,000-square-foot buildings and there is a single, 5,000-square-foot structure.

Trinity Capital Advisors bought the office park in December 2005 for $24.5 million in a partnership with GE Capital. A $31.69 million loan that was secured by the property was sent to special servicing in April 2010 and foreclosure proceedings were initiated in April 2011, according to Trepp Inc. and people familiar with the property and transaction. The property at the time of the sale was just 55 percent occupied.
Full story: http://tinyurl.com/6uuwc7v
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Davison & McCarthy, P.C. is the First Tenant Signs at City Center Lehigh Valley

2012-01-23T09:54:00.001-05:00

"Law firm Davison & McCarthy, P.C. has become the first company to sign a lease to become a tenant of One City Center, the $50 million Class A office that's part the mixed-use development being constructed on 7th Street between Hamilton and Walnut Streets in downtown Allentown, PA.

Davison & McCarthy will occupy up to 10,000 square feet of the five-story, 200,000-square-foot office and retail building that will include a 570-space underground parking garage. The firm's 13 employees will be among up to 700-plus workers who could occupy One City Center at its opening near September 2013, around the date Allentown's arena at 7th and Hamilton streets is scheduled to start serving as home to the Phantoms, the Philadelphia Flyers' top minor league affiliate.

Davison & McCarthy currently has nine lawyers and three paralegals.

Preconstruction site work for One City Center, including geotechnical testing and site surveying, began Dec. 10, 2011, with construction scheduled to begin this summer. The building will offer floors of up to approximately 40,000 square feet and will include amenities such as:

- connected parking beneath the building
- security and staffed lobbies
- Retail shops on the first floor and green space over the parking garage

The first phase of City Center Lehigh Valley includes flexible plans for up to 200 luxury apartments, a minimum of 250,000 square feet of Class A office space and 50,000 square feet of upscale retail space.

City Center is a project of City Center Investment Corp., a real estate development and management company based in Allentown and led by developer J.B. Reilly, who has owned the property for the One City Center building since 1999. With plans for future phases, City Center Investment Corp. bought several properties near the arena site in 2011, using a $20 million credit line provided by the Allentown Commercial Industrial Development Authority, which, through Neighborhood Improvement Zone legislation, will be at least partially retired using state and local taxes paid by City Center tenants."
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Two Lease Transactions Totaling 34,000 SF in Montgomery County, PA

2012-01-23T09:49:00.000-05:00

"In the larger of the two, Graduate Plastics, Inc. has expanded from Florida and Illinois to occupy 28,000 square feet of industrial space at 1000 North Cannon Avenue in Lansdale, PA. Graduate Plastics, aka Quantum Storage Systems, offers the largest selection of plastic bins, steel & wire shelving and storage containers.

Absolute Home Mortgage will occupy 6,361 square feet of office space located at 2600 Philmont Avenue in Huntingdon Valley. The landlord is Toll Management Company. Absolute Home Mortgage merged with United Capital Lenders, LLC in August, 2011."
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The Tile Shop Signs 25,522 SF Lease in King of Prussia, PA

2012-01-23T09:26:00.000-05:00

"The Tile Shop has signed a 25,522-square foot lease to open a tile and floor covering store in King of Prussia, PA. The store will open this summer at 201 Allendale Road adjacent to Costco and will occupy the former Levitz Furniture site.

The Tile Shop is based in Minneapolis-St.Paul and operates 47 stores in 17 states. The retailer has 2 additional locations in Metro Philadelphia located in Moorestown, NJ and Wilmington, DE.
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Kimco takes loss on Phila. office building it bought before crisis

2012-01-21T23:10:00.000-05:00

"Kimco Realty Corp. sold a property on Walnut Street in Center City for half the amount it bought it for five years ago.

Pearl Properties of Philadelphia bought 1701 Walnut St., an eight-story office building that has Juicy Couture as one of its retail tenants, for $6.6 million, according to property records.

Kimco paid $12 million for the roughly 25,000-square-foot building in May 2007 when it was on a buying spree in Philadelphia, particularly in the Rittenhouse Square neighborhood. Among the other buildings Kimco bought around the same time include 1401 Walnut St., where Banana Republic has a store; 1429 Walnut St., home to Armani Exchange; and 1628 Walnut St. Kimco has also sold some of its other buildings to Pearl Properties, including 1401 and 1429 Walnut."
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150 East Swedesford Road in Wayne Sells to Private Investor

2012-01-21T20:58:00.001-05:00

"The Buyer, 1571 North Valley LLC, has already signed a multi-year lease agreement with College Tuition Benefit.com, a company which makes it possible for employers to provide employee's children, grandchildren, nieces and nephews with a guaranteed college scholarship through the company's individual benefits package.

150 East Swedesford Road is a first floor condominium unit with four private offices and a conference room, kitchen, open area and new high energy heat pump. The building is situated on a beautifully landscaped lot and has an abundance of parking available for owners and their clients.

The office condominium totaling 1,527 square feet is situated at the highly visible location known as 150 East Swedesford Road, Suite 102, in Wayne.

Sale price of the condominium was $225,000.
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BPG Properties gets favorable court ruling

2012-01-20T09:41:00.000-05:00

"A Commonwealth Court has ruled in favor of BPG Properties Ltd. in its efforts to develop a project called Ellis Preserve on more than 200 acres here off route 252 and 3.

This is the third time a ruling has supported BPG Properties and its effort to construct a mixed-use development on the property. The case highlights the long but determined route some developers take (and the legal hurdles they must overcome) in order to move forward with constructing major projects.

In 2004, BPG Properties bought about 218 acres and set out to have the township pass a planned residential ordinance on the property that would create an overlay district on the land. The overlay would allow BPG Properties to construct a range of different buildings, including retail, office and residential. In the summer of 2009, the ordinance was passed.

Newtown Square East, which is affiliated with local developer Claude de Botton, challenged the ordinance in August 2009 before the zoning hearing board. De Botton argued, among other things, that the ordinance violated the Pennsylvania Municipalities Planning Code requiring the identification of specific uses of buildings within a designated area.

The zoning hearing board denied de Botton’s challenge in May 2010; he appealed to Delaware County Court of Common Pleas.

A year ago, a Common Pleas Court ruled in favor of BPG, saying the appeal of the zoning ordinance was “frivolous” and was being used to delay BPG Properties from developing the project. That result was appealed to Commonwealth Court.

In a ruling handed down Dec. 29, Commonwealth Court ruled that a developer doesn’t have to specify building use and would be “unreasonable” during planning stages and would “hamstring” a developer by forcing it to repeatedly go before a governing body to get new approvals, according to court documents. A developer needs the flexibility to adjust to market conditions and other forces at work, the court said in an opinion written by Judge P. Kevin Brobson.

“His opinion speaks for itself and we argue the contrary,” said John W. Nilon Jr., an attorney with Petrikin Wellman Damico Brown & Petrosa, who represented de Botton. “We thought the statute said when it came to building use, you had to designate building use. He thinks you can have a generic designation.”

Steve Spaeder, president at BPG Development Co., said BPG is pleased with the ruling.
“We’re eager to get started on the project, which has long been delayed,” he said.
Whether this ruling will get appealed to the state Supreme Court hasn’t been determined though it is under consideration, Nilon said."

Full story: http://tinyurl.com/88n5msm
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Endo Pharmaceuticals HQ to be Deliver By December

2012-01-19T16:04:00.000-05:00

As previously reports 11/1/2011: http://omegacre.blogspot.com/2011/11/endo-to-move-from-chadds-ford-to-east.html

The kickoff construction has officially launched for the development of 1400 Atwater Drive, a build-to-suit project in Malvern, PA, that will be fully leased by and serve as the new headquarters for Endo Pharmaceuticals.

The two five-story office buildings totaling 300,000 square feet located in the Atwater Business Park overlooking a 60-acre lake are scheduled for completion in December 2012. The buildings will be connected by a two-story glass lobby and feature a cafeteria, fitness center and conference center.

The Atwater Corporate Center, located in the 388-acre Atwater Business Park, a mixed-use master development in the Philadelphia suburb that will include office, hotel, and multifamily properties off the Pennsylvania Turnpike at Highway 29. The development will be served by a new interchange now under construction by the Pennsylvania Turnpike Commission.
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Food Lion Latest To Shrink Store Counts In Grocer Shakeout

2012-01-19T15:59:00.000-05:00

"Delhaize Group, the Belgium-based parent of Food Lion chain in the U.S., is the latest grocer to shrink its store count. The latest news on store closings follows on the heels of A&P announcing last week that it plans to close 14 more stores following its emergence from bankruptcy and, more recently, another grocery store chain, Sprouts, said it will close three Austin, TX area stores.

According to analysts, these store closings won't be the last.

"The fact is that further grocery shakeout is inevitable," said Garrick H. Brown, retail research director at Terranomics. "The grocery pie only has so many slices. Mid-size regional chains, particularly those that are unionized, will likely see the greatest challenges ahead. Because of this, expect more mergers and acquisitions in the months ahead."

However, Brown added: "All of these closure announcements fall against the backdrop of a wide variety of new grocery concepts expanding in the marketplace. The good news for landlords is that there are plenty of new concepts looking to expand that could backfill these vacancies. The bad news is that most of the store closures will likely be from the old guard-traditional grocery store users in the 50,000- to 80,000-square-foot range. Most of the chains in growth mode are smaller format concepts."

Delhaize will close 113 underperforming Food Lion stores, most of which are in markets with the lowest store density. It will also close a distribution center and 13 additional Bloom and Bottom Dollar stores.

Also as part of the resizing, the grocer plans to convert 42 Bloom stores back to Food Lion. Seven Bloom stores will be closed and the Bloom brand will be retired. Food Lion divvied up its Food Lion stores in 2004 to differentiate between the higher-end Bloom concept and traditional deep-discount, no frills Food Lion stores.

In the U.S., Food Lion has decided to focus its Bottom Dollar Food brand on markets which provide the greatest opportunity for growth such as Philadelphia, where it has enjoyed considerable success, and in Pittsburgh, where it will open its first stores this quarter.

It will convert or close the Bottom Dollar Food brand stores in North Carolina, Virginia and Maryland. This will result in the conversion of 22 Bottom Dollar Food stores to Food Lion and the closing of six stores in these markets.

The good news is that Delhaize plans to add hundreds of Bottom Dollar Food stores in the next five years. For starters, Delhaize will open 14 Bottom Dollar Food stores in Pittsburgh and Youngstown, OH, by the end of the first quarter, and it expects to open another 10 to 15 stores by year-end in its newer markets.

"While we grew our revenues for the full year, we are disappointed in the fourth quarter revenues in the U.S. and Belgium. Consumers continued to feel pressured in the fourth quarter due to the macro-economic environment and this led to a reduction in spending," said Pierre-Olivier Beckers, president and CEO of Delhaize Group. "We also encountered an increase in competitive activity. We are determined to further improve our price competitiveness in 2012, particularly in the U.S. and Belgium."

"After a thorough review of our store portfolio, we have decided to close or convert a number of stores in the U.S. and in Southeastern Europe during the first quarter of 2012," Beckers said. "This decision is in line with our New Game Plan which is aimed at accelerating profitable growth. For a retailer, it is never an easy decision to close stores as we are fully aware of the impact on our associates, our customers and the communities we serve."

"We are consistently executing our New Game Plan strategy and continue to invest in the many initiatives that are part of it such as the successful brand strategy work at Food Lion, the expansion of Bottom Dollar Food in its newer markets and our growth plans for Southeastern Europe," Beckers added.

Delhaize Group ended 2011 with a sales network of 1.650 supermarkets in the U.S., a net addition of 23 stores over 2010."
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Outlook for Commercial Real Estate in Asia for 2012

2012-01-18T16:41:00.000-05:00

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Endo, turnpike ramp could reinvigorate Malvern office park

2012-01-13T09:03:00.000-05:00

by Natalie Kostelni

"IMC Construction is making headway in the construction of Endo Pharmaceuticals’ new headquarters at the Atwater Corporate Center in Malvern.

Already the construction company has cleared out 80,000 yards of dirt so that the complex will be positioned to overlook an 80-acre body of water created by a former quarry. The Endo (NASDAQ:ENDP) project was designed by L2 Partridge and is being developed by Trammel Crow Co.

It’s the first new construction for Atwater in a decade. Trammel Crow drew up plans for it in late 1999 and told East Whiteland it anticipated a seven to 10-year period to build out the 2.5 million-square-foot office park. The last time a building was constructed there was back in 2002 when Trammel Crow constructed a 151,477-square-foot structure that Allstate Insurance used to consolidate several of its offices. Ever since, the 388 acres that make up the corporate center at Route 29 and Yellow Springs Road has sat fallow.

With the Endo headquarters and finally the construction of a Pennsylvania Turnpike ramp at Route 29, I suspect progress at Atwater will pick up for tenants like Endo that are looking for build-to-suit opportunities. The turnpike interchange will likely have greater implications for other office parks in that area, including the Great Valley Corporate Center, Valley Creek Corporate Center and Uptown Worthington among others. Those commuting to the area no longer have to clog up local roads to get there. The turnpike ramp will also potentially reorient the gateway to Great Valley from Swedesford Road and Route 202 to the side where Atwater is located.

The Endo headquarters, which consists of two, five-story buildings totaling 320,000 square feet and a single-story parking deck for 420 vehicles, will certainly create a solid footprint in Atwater. Aside from having a full-service kitchen, cafeteria, training center and conference center, and an on-site exercise center, the complex will use water from the former quarry to feed a cooling loop for its geo-thermal HVAC system.

Dave Holveck, CEO of Endo, has said the company’s move from Chadds Ford will put Endo closer to the “heart” of the health-care corridor in Pennsylvania, where nearly 100 other health-care and life sciences companies are based. Earlier this week, the company said it has been affected by the Novartis recall because some of its products are made at the affected Novartis plant in Nebraska."
http://www.omegare.com/

Philadelphia region’s top commercial real estate deals of 2011

2012-01-12T21:57:00.002-05:00

by Natalie Kostelni
Commercial real estate sales throughout the Philadelphia region last year were not robust.

While multifamily was the hot property type that traded last year, office, retail and industrial lagged behind. Here’s a look back at some of the top deals (For more information and context on the transactions, click on the links):

• Simon Property Group took control of the 2.4-million-square-foot King of Prussia Mall in a transaction valued at around $1.25 billion, which was the largest transaction from last year in terms of dollars and square feet, making it a difficult one to beat.

• David Werner Real Estate Investments paid $143.5 million for 1700 Market St., an 841,000-square-foot building in Philadelphia.

• An affiliate of the Morris Cos. of Rutherford, N.J., bought Ashbridge Square, a 386,016-square-foot shopping center at 900 E. Lancaster Ave. in Downingtown for $51.75 million.

• Teva Pharmaceuticals paid $40.59 million for 138 acres at One Red Lion Road in Philadelphia.

• An affiliate of Liberty Property Trust paid $40 million for the surface lot at 18th and Arch streets in Philadelphia.

• An affiliate of Post Brothers Apartments bought the old Empirian Luxury Towers at 633 W. Rittenhouse St. in Philadelphia for $27.3 million.

• BPG Properties Ltd. sold Executive Terrace, a four-story, 132,089-square-foot office building at 455 S. Gulph Road in King of Prussia for $26.5 million.

• Home Properties paid $24 million for Waterview Apartments, a 203-unit complex fronting Route 3 at Waterview Road in West Chester from Fairfield Residential Inc.

• Bart Blatstein’s Tower Investments paid $21 million to buy 1400 Spring Garden St., a 19-story building totaling 300,000 square feet that has a 208-space parking garage from the state. Tower also paid $22.65 million to buy the Philadelphia Inquirer and Daily News’ old headquarters at 400 N. Broad St., an 18-story, 470,000-square-foot building.

• SI Organization Inc. bought the 271,000-square-foot building it occupies at 751 Vandenburg Road in King of Prussia for $21.4 million. The building was constructed in 1967. Lockheed Martin sold its Enterprise Integration Group division in November 2010. When Lockheed divested itself of EIG, it was renamed SI Organization, which quietly supports the intelligence community on their missions.

• Federal Realty Trust sold the Feasterville Shopping Center, a 110,362-square square-foot strip at 1045 Bustleton Pike in Feasterville for $20 million.

Full story: http://tinyurl.com/7bk7jnd
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Aetna Renews at 58,000sf in Allentown

2012-01-11T21:24:00.000-05:00

The lease of 58,460 sf of office space at 1550 Pond Road (Winchester Plaza), Allentown, PA was completed.
The transaction is a lease renewal for the current tenant, Aetna. Aetna is a national leader in health-related benefits, including health, dental, pharmacy, group life, and disability insurance.
http://www.omegare.com/

Spike's Trophies Limited Purchases 2701 Grant Avenue, Philadelphia, PA

2012-01-11T21:21:00.001-05:00

"Spike's Trophies Limited acquired the 21,700 square foot modern one story masonry building, situated on approximately 1.79 acres located at 2701 Grant Avenue, Philadelphia, PA."

501 Cetronia Road sells for $6.4M

2012-01-11T21:21:00.000-05:00

The sale of 107,770 sf of retail space at 501 Cetronia Road, Allentown, PA was completed. The selling price was $6,430,000.00.
The owner, First Star Bank, is a community bank headquartered in Bethlehem, PA.

The buyer, St. Luke's Hospital and Health Network, is a multi-hospital system affiliated with over 1,200 doctors in the Lehigh Valley region.
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A&P Closing 14 More NE Stores

2012-01-11T21:04:00.000-05:00

"The Great Atlantic & Pacific Tea Company Inc. (A&P) filed a motion with the U.S. Bankruptcy Court seeking approval to close 14 stores in four states as the company prepares to emerge from Chapter 11. The store closures are expected to be completed in the company's fiscal first quarter, subject to court approval.

"We are continuing to take the steps necessary to position A&P to emerge from Chapter 11 with a strong future and ensure that we remain focused on our top priority - providing great value and service to our customers every day," said Sam Martin, A&P president and CEO. "As part of our preparations to emerge from Chapter 11, we have decided to close these 14 underperforming locations.

Affected Stores
Pathmark, 300 Montauk Hwy, East Islip, NY
Pathmark, 517 Route 72 West, Manahawkin, NJ
A&P, 35 Main St., Danbury, CT
Pathmark, 145 Passaic Avenue, Kearny, NJ
A&P, 59 Outwater Lane, Garfield, NJ
Waldbaums, 725 Sunrise Hwy, West Babylon, NY
Pathmark, 6718 Black Horse Pike, Egg Harbor Twp, NJ
Waldbaums, 399 Ocean Avenue, Rockville Centre, NY
Waldbaums, 601 Portion & Cenacle Road, Lake Ronkonkoma, NY
Waldbaums, 711 E. Jericho Turnpike, Huntington Station, NY
Pathmark, 1 Pathmark Plaza, Mount Vernon, NY
Pathmark, 2100 Country Line, Upper Moreland, PA Waldbaums, 40 Vanderbilt Pkwy, Commack, NY
A&P, 175 Avenue A, Bayonne, NJ
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Susquehanna LP Sells Industrial Building in York

2012-01-11T20:59:00.001-05:00

"N18 Property LP, an affiliate of Endurance Real Estate Group LLC, purchased the industrial facility at 515 N. Zarfoss Dr. in York, PA from Susquehanna Real Estate LP for $8.75 million, or about $26 per square foot.

The 309,900-square-foot industrial building is located in the York County Industrial submarket of Philadelphia. It was built in 1985 on 26.2 acres."

The Property was developed in 1982 and features all the amenities required by contemporary distribution needs including ceiling heights up to 31' clear, 28 loading doors, wet sprinkler system and approximately 6,500 SF of office space. The Property is fully leased, to syncreon.US, Inc., a specialized provider of integrated logistics services to global industries that is providing logistical support and light assembly services to Harley Davidson from this facility.

"This acquisition is indicative of the types of deals we are seeking to acquire; well-located, functional, bulk distribution buildings at an attractive basis significantly below replacement cost at a time when we are seeing a significant improvement in leasing fundamentals in the Pennsylvania I-81/I-78 industrial markets," said Benjamin Cohen, President of Endurance.
Endurance also recently acquired 2834 Schoeneck Road a 270,000 SF bulk distribution in the Lehigh Valley in March of 2011 and 420-440 Drew Court a 146,906 warehouse/flex flex facility in King of Prussia, PA in November of 2011. We continue to seek additional office and industrial assets (both stabilized and value-added) to acquire with our capital partners.
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2012: A Silver Lining for the U.S. Office Market?

2012-01-09T13:07:00.000-05:00

"The U.S. office sector witnessed a spurt in market fundamentals in fourth quarter 2011 with a significant positive absorption and increase in occupancy and rents, although the performance remained relatively dispersed by both geographical location and market types.

Absorption refers to total square feet leased over a specific time period in a specific geographic area, while positive absorption is a measure of the net square feet leased after taking into consideration the space vacated during the period.

In its report titled “Fourth Quarter 2011 United States Office Outlook” that tracks 43 U.S. markets to provide ‘an overview of supply and demand, pricing conditions, a statistical analysis and an outlook on future performance, Jones Lang further predicted that despite a tepid economic recovery in the domestic market and continued uncertainty in the global macroeconomic environment, the U.S. office sector is likely to continue its growth momentum in 2012 at a somewhat similar pace exhibited in 2011.

Key Performance Highlights
The U.S. office sector reported about 10.3 million square feet of positive absorption in fourth quarter 2011 (the seventh such quarterly increase on the trot), bringing the tally for the full year to 34.6 million square feet, compared to 13.4 million square feet in 2010 or approximately thrice reported in the previous year.

Total U.S. vacancy levels in the office sector during fourth quarter 2011 plummeted to 17.6% – the lowest recorded since the second quarter of 2009, and significantly below 18.5% reported in the year-earlier quarter. At year-end 2011, vacancy rate in the Central Business Districts (CBD) was14.2%, while that of the suburban markets was 19.6%.

The office sector is highly correlated to job growth. The U.S. economy ended 2011 on a high note in terms of job growth, with 200,000 jobs added in December – about 50% better than the monthly average of 2010, bringing the official unemployment rate to a three-year low of 8.5%. For full year 2011, approximately 1.64 million jobs were added in the U.S. economy, with office job creation growing at an annualized rate of 1.2%. However, during fourth quarter 2011, office jobs had outpaced the annual growth rate at 1.8%, adding about 475,000 new jobs.

Aberration by Market Types
As evident by a disparity in vacancy rates in CBD and suburban markets, rent increases also varied considerably across both market types throughout 2011. While CBD rents increased 4.8% on a year over year basis, suburban market rents improved by a meager 1.1% or by less than one-fourth of CBD.
The dismal performance in the suburban markets pegged back the overall rent growth for the U.S. office sector at 2.8% for full year 2011, which was largely driven by strong growth in coastal urban markets and areas dominated by the technology and energy firms.

During fourth quarter 2011, overall U.S. office sector rents surged 0.9%, with CBD rents rising 2.7% and suburban rents decreasing 0.2% on a year-over-year basis. Out of the 43 markets in which Jones Lang carried out its survey, the CBD markets that fared well and were recovering at a fast pace were Austin, Texas, Midtown South in Manhattan and San Francisco. The suburban markets on a high-growth curve included Northern California markets of East Bay, the San Francisco Peninsula and Cambridge, Massachusetts.

Aberration by Geographical Location
The performance of the U.S. office sector in 2011 also varied widely by geographical locations, with New York and Washington DC – the two largest office markets in the U.S. accounting for about 20% of the total office space in the country, lagging behind, and California and Texas leading the way. While California accounted for 25.7% of the total occupancy gains in the U.S. in 2011, Texas registered a healthy 15.9%, thus accounting for 41.6% of total positive absorption in the country during the year.

In addition, California witnessed a 20% rent growth and a 2.5% decline in vacancy rate with 1.8 million square feet of net absorption during 2011, driven largely by the proliferation of high-tech industry growth in the region.

Contrarily, the performance of New York and Washington DC faltered due to low investor confidence resulting from the uncertainty in the political environment. 2012 being a presidential election year in the U.S., there is a high probability that the U.S. policymakers would refrain from making any radical change on key issues. With political indecision likely to persist in the country until at least the elections are over and the lack of concrete fiscal planning, most companies are playing a tactical ‘wait and see’ game before committing on expansion opportunities.

Furthermore, a sovereign debt crisis in Europe has resulted in the euro struggling for survival, sending ripple effects across the globe. For most of the latter half of 2011, investors have been the victims of inconsistency in the political process across Europe, ending in market volatility.

Consequently, office leases during the second half of 2011 in both markets declined by approximately 25% to 35%. This in turn led to a modest rise in vacancy rates and a dip in asking rents.

On the other hand, markets that were traditionally considered weak office markets namely Tampa Bay and Orlando fared relatively well in 2011 with a considerable increase in absorption and tenant demand. Tampa Bay witnessed a huge demand for office space by healthcare services and providers, while Orlando reported a surge in office leasing due to a booming tourism sector. The office sector is expected to grow at an annualized rate of over 6.0% in the region.

Moving Forward
Although uncertainty in the domestic political environment and austerity measures among the European countries are expected to impede regional economic growth, buoyant job growth in most of the regions in the latter half of 2011 is expected to provide an encouraging sign to the companies who have paused in terms of expansion initiatives."
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Impact Thrift to open store in Feasterville

2012-01-09T12:08:00.000-05:00

"Impact Thrift Stores announced Thursday it will open a store in Lower Southampton.

The store, in the former Value City at Street Road and Bustleton Pike in Feasterville, will be Impact's fourth thrift store. It also has locations in Hatboro, Montgomery Township and Norristown.

Impact spokeswoman Jo Greenawalt said a date hasn't been set for opening the 66,000-square-foot store, which will be Impact's first in Bucks County. She said the store may be the largest one, in square footage, on the East Coast.

Already Impact has two warehouses full of donations that will go to the new store, but Greenawalt said more donations, particularly of clothing, are needed. They can be dropped off at Impact's existing locations; the Feasterville store cannot accept donations at this time.

"We are blessed right now that we have been inundated with donations over the past year, which is a fabulous thing to happen," Greenawalt said. "We have been blessed with tons of furnishing donations but we really need clothing. But we have no doubt that when we open those doors the store will be packed solid with wonderful things."

Sales from Impact's thrift stores benefit charities that help children and families, the homeless and others in need."
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Philadelphia's Office Vacancy Decreases to 11.6%

2012-01-09T12:00:00.000-05:00

The Philadelphia Office market ended the fourth quarter 2011 with a vacancy rate of 11.6%.

The vacancy rate was down over the previous quarter, with net absorption totaling positive 393,606 square feet in the fourth quarter. Vacant sublease space decreased in the quarter, ending the quarter at 1,544,892 square feet.

Tenants moving into large blocks of space in 2011 include: Quest Diagnostics moving into 136,919 square feet at 1001 Adams Ave; Janney Montgomery Scott LLC moving into 125,418 square feet at Three Logan Square; and AIM moving into 61,483 square feet at River Park 2.

Rental rates ended the fourth quarter at $21.03, an increase over the previous quarter.

A total of seven buildings delivered to the market in the quarter totaling 139,082 square feet, with 1,845,995 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. national office vacancy rate, which decreased to 12.3% from the previous quarter, with net absorption positive 21.73 million square feet in the fourth quarter.
Full Report: http://omegare.com/Costar-4Q2011-Market-Report-Office.pdf
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Investing in Commercial Realty Now!

2012-01-07T13:01:00.002-05:00

http://www.omegare.com/

Real Estate Investment Opportunities

2012-01-07T12:57:00.002-05:00

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Safeway to sell Genuardi’s supermarkets to Giant for $106M

2012-01-05T15:15:00.000-05:00

by Peter Van Allen
"Giant Food Stores said Thursday it will pay $106 million for 16 Genuardi’s stores in the Philadelphia market, while three other Genuardi’s stores will be closed.

Eight other Genuardi’s locations are still for sale, parent Safeway Inc. said separately, and the Genuardi’s name is apparently on its way out.

The 16 stores being acquired by Giant will bear the Giant name. The deal is expected to close by midyear. With the 16 stores, Giant will have 56 locations in the Philadelphia market. Giant recently took over a Genuardi’s site in Feasterville, Pa.

The three Genuardi’s stores that Safeway will close are in Exton, Norristown and Royersford, Pa. Safeway said 145 jobs will be lost at those locations.

Four of the eight supermarkets that are for sale are in New Jersey. (See below for details.)

“We have made the decision to exit the greater Philadelphia market, including four stores in New Jersey, and focus our resources in those operating areas where we have a stronger presence,” said Steve Neibergall, president of Safeway’s (NYSE:SWY) eastern division. “We will be working with the purchasers to ease the transition for our store employees and making efforts to facilitate continued employment for as many of them as possible.”

About 1,800 Genuardi’s employees affected by the Giant acquisition will need to apply for positions at Giant.

All of the stores being acquired are in Pennsylvania. They are at:

• 2395 York Road, Jamison;
• 2890 S. Eagle Road, Newtown;
• 168 N. Flowers Mill Road, Langhorne;
• 4275 County Line Road, Chalfont;
• 1375 Boot Road, West Chester;
• 830 E. Baltimore Pike, East Marlborough;
• 550 E. Lancaster Ave., St. Davids;
• 950 Baltimore Pike, Springfield (Delaware Co.);
• 50 E. Wynnewood Road, Wynnewood;
• 1844 Bethlehem Pike, Flourtown;
• 737 Huntingdon Pike, Huntingdon Valley;
• 1121 Bethlehem Pike, Spring House;
• 310 S. Henderson Road, King of Prussia;
• 1925 Norristown Road, Maple Glen;
• 2350 Susquehanna Road, Roslyn;
• 467 Sumneytown Pike, North Wales.

Giant has 180 stores trading under the names Giant Food Stores and Martin’s Food Markets. Stores are in Pennsylvania,Maryland, Virginia and West Virginia.

A Safeway spokesman said it is still trying to sell locations in Doylestown, Conshohocken, Audubon, East Norriton in Pennsylvania. The New Jersey sites for sale are in Cherry Hill, Marlton, Egg Harbor Township and Barnegat Township.

There has been a shakeout in recent years in the region’s supermarket industry, which is seeing increased competition from giants like Walmart and Costco, and also relative newcomers like Wegman’s, Aldi and Bottom Dollar."
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Green Courte Partners buys the Avenue of the Arts Garage

2012-01-04T18:23:00.000-05:00

"Green Courte Partners, a private equity real estate investment firm in Lake Forest, Ill., bought the Avenue of the Arts Garage at 1501 Spruce St. in Philadelphia. Terms of the transaction weren’t disclosed.
The self-park garage was constructed in 2002 by Parkway Corp. to serve the Kimmel Center on South Broad Street. The property is 10 levels and has 668 parking spaces, and includes 17,272 square feet of retail space occupied by the Buca Di Beppo Italian restaurant and Starbucks Coffee.

Parkway sold it to Next Realty, a Chicago real estate investment company that also owns the Sansom Garage at 1616 Sansom St. in Philadelphia. Next Realty has now sold it to Lake Forest, Ill.-based Green Courte, which targets parking facilities and manufactured housing communities."
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REITs, Time to Buy?

2012-01-03T16:36:00.000-05:00

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With Citizens Bank suit settled, O’Neill moves ahead with Worthington

2012-01-03T16:08:00.000-05:00

by Natalie Kostelni
"O’Neill Properties Group and Citizens Bank of Pennsylvania have settled the lawsuits each brought against each other.

Here’s a statement put out by O’Neill and the bank: “Citizens Bank of Pennsylvania and Brian O’Neill of O’Neill Properties Group jointly announce that they have entered into a settlement agreement resolving all litigation between them. The terms and conditions of the settlement are confidential.”

The litigation centered on O’Neill’s Uptown Worthington project in Malvern and Citizens winning a $61 million judgment against the developer. O’Neill countered with its own lawsuit.

A settlement has long been rumored and it’s nice that it finally arrived. Maybe it’s a harbinger of what’s to come this year with commercial real estate: Lenders cleaning up their books, coming to terms on loans and other issues and allowing the industry to start moving some dirt around. What it means for O’Neill is ramping up development at Worthington again.

“We’re going to do it all,” said Brian O’Neill in an interview this morning about Worthington. “We’re out moving and shaking. Tenacity is a rewarding virtue.”

Eight percent, or 35, of the retail tenants who wanted to lease space at the development before the economy tanked are negotiating to return, O’Neill said. After not opening any or many new stores during the recession, retailers are now under pressure to open up sites in proven locations, he said.

Worthington already has Target and Wegmans, which appear to be busy, and O’Neill said they are ringing in record sales. The development also has its infrastructure in place, making it attractive for retailers who don’t want wait for a site to be ready.

O’Neill plans to soon begin construction on the first phase of an apartment complex that will total 750 units at build-out. The first phase will be comprised of 250 apartments.

The company started construction on a pad for a PNC Bank branch and is negotiating with tenants on four other pads. As for office development, O’Neill is in negotiations with a “major” tenant on a 145,000-square-foot building.

“It’s a $400 million project,” he said. “All told, it will be over 1 million square feet. We’re very happy to be moving forward with this project. It’s a winner.”

The developer is confident it will be able to line up funds to finance the work that is expected to get underway.

“The markets are loosening up and are out doing deals,” he said, noting his company is in discussions with numerous lenders."
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Job Growth a Key Driver of Commercial Real Estate Demand?

2011-12-30T14:00:00.000-05:00

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Former Majestic Building Sells to Biotech Company

2011-12-30T12:29:00.000-05:00

"The former Majestic Athletics apparel manufacturing building located at 100 Majestic Way, Bangor, PA has been sold to BioSpectra, a manufacturer of biological buffers and laboratory reagents for the biopharm and biotech markets.
The 142,000 square foot facility features office, manufacturing and warehouse space which will allow the new owner to expand its operations. Transaction is valued at $1.5 million.
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All Star Baseball Academy signs new lease in NJ

2011-12-30T12:27:00.000-05:00

"All Star Baseball Academy leased 11,190± SF at 3 Esterbook Lane, Cherry Hill, Camden County, NJ. This marks their 4th location."
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Qualcare Alliance Signs $9.7M Lease in NJ

2011-12-30T12:23:00.000-05:00

"Qualcare Alliance Networks, Inc. signed a lease for 30,492 square feet of office space at 100 Decadon Dr. in Egg Harbor Township, NJ. The 15-year, $9.7 million lease is expected to commence in April 2012.

Columbus 1 at Expressway Center is a 41,600-square-foot, two-story office building constructed in 1987 on 5.5 acres in the Southern New Jersey submarket of Atlantic County. Expressway Corp Ctr is a two-building office park that is now 100 percent occupied with Computer Science Corp., the other tenant.

Qualcare is the largest full service provider-sponsored managed care organization owned and operated in New Jersey with more than 600,000 members enrolled in a full range of self-funded managed care products. It is majority owned by 12 New Jersey hospital systems and physician organizations."
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Philadelphia Media Network Signs 125,000-SF HQ Lease at 801 Market

2011-12-29T11:14:00.000-05:00

"Pennsylvania Real Estate Investment Trust has secured a lease with Philadelphia Media Network, Inc. to occupy 125,000 square feet at 801 Market Street in Philadelphia. PMN, owner and publisher of The Philadelphia Inquirer, Daily News, and Philly.com, is expected to take occupancy of its third-floor headquarters space in summer 2012.

The iconic building delivered in 1868 as Strawbridge & Clothier's flagship store. PREIT redeveloped the 13-story, 927,931-square-foot, class A office and retail property in 2009, focusing on historic preservation and sustainability, leading to recent LEED Gold Certification and a US Green Building Council award for operating efficiency. The building anchors The Gallery at Market East, also owned by PREIT, and located above the city's mass transit system providing employees, shoppers and residents with direct access to the Philadelphia suburbs and southern New Jersey.

"Bringing Philadelphia Media Network to this Center City location reestablishes 801 Market as a premier address and signals the resurgence of Market East and The Gallery," said Joseph F. Coradino, president of PREIT Services LLC and PREIT-RUBIN, Inc.

PMN's move is the latest development in the renaissance of the Market East submarket in Center City. PMN will work with PREIT to incorporate large-format digital advertising and a dynamic digital messaging system on the exterior facade designed to reach thousands of people daily. PMN's 600 employees will join 750 from the Commonwealth of Pennsylvania that have occupied three floors in the building since 2009, in addition to 1,200 employees utilizing office space on the upper floors.
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Iron Hill to Open 9th location, 1st in Philly

2011-12-29T08:02:00.000-05:00

"Delaware-based suburban brewpup chain Iron Hill plans its ninth location and its first inside Philadelphia city limits at 8400 Germantown Ave., former Express store site, in Chestnut Hill, next Wednesday Jan. 4. Owners Kevin Finn, Kevin Davies and Mark Edelson plan to open the restaurant at 4 pm in time for the dinner rush. It's the chain's ninth location, with five others in PA, two in DE, one in NJ.

Iron Hill takes its name from the landmark Appalachian outcrop (complete with state park and Revolutionary War-era mine) that greets northbound drivers on I-95 as the blow through the state line tollbooths at the Maryland border, not far from Iron Hill's original home in University of Delaware student-ridden Newark, Del."
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Mad Money's Cramer goes shopping for REITs

2011-12-26T22:07:00.002-05:00

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Republic First Bancorp sells commercial real estate loans

2011-12-26T22:01:00.000-05:00

"Republic First Bancorp said Wednesday that it has completed the sale of $59 million of commercial real estate loans and foreclosed properties to a single investor.

The company, parent to Republic Bank, said the transaction will dramatically reduce non-performing asset balances and significantly improve credit quality metrics while still leaving it with strong capital ratios.

The loans and foreclosed properties to be sold had a book balance of $45.1 million and included $28.4 million of non-accrual loans and other real estate owned. Net proceeds amounted to $30.6 million and Republic First said it expects to incur a loss of approximately $14.5 million in the fourth quarter as a result of the sale. Excluding the completion of the loan transaction, Republic First said it was projecting an estimated profit of approximately $1.1 million for the quarter.

Republic First of Philadelphia has struggled in recent years with elevated nonperforming loans. The bank has become more retail-friendly in recent years since Commerce Bank founder Vernon W. Hill II came aboard as an investor and adviser a few years ago. It has also attempted restructuring its loan portfolio away from commercial real estate into more commercial and industrial loans.

Republic First and Harrisburg-based Metro Bancorp terminated a 2008 merger agreement in April 2010 after not receiving regulatory approval. Since that time, the bank has turned its attention toward strengthening its balance sheet.

“During that time period we have transformed Republic into a new bank with a new brand, new management team, renovated store locations and a retail model focused on fanatical customer service,” Republic First Chairman and CEO Harry D. Madonna said. “We have strengthened our capital position and brought stabilization to the balance sheet in an incredibly challenging economic environment. We believe this transaction represents the final step in completing the transformation and we anxiously look forward to building out our model to serve the customers in our market.”

Republic First said the loan sale will improve its percentage of non-performing assets to 1.8 percent in the fourth quarter compared to 4.83 percent in the third quarter. The bank also said its capital ratios are strong enough for it to pursue its growth and expansion plans. Republic First currently has 13 branches located in Abington, Ardmore, Bala Cynwyd, Plymouth Meeting, Media, Philadelphia, Voorhees and Haddonfield."
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The top 10 Philadelphia real estate stories of 2011

2011-12-25T08:31:00.000-05:00

by Natalie Kostelni

"It’s that time of year to take a look back at some of the biggest real estate stories that happened throughout the region. I’d like to hear from you to see what you think are some of the top stories or take issue with the ones I selected. Please feel free to email them to me at nkostelni@bizjournals.com.

Here’s my top 10:

• GlaxoSmithKline moving its Philadelphia operations to the Navy Yard.

• Liberty Property Trust Latest affiliate buying the surface parking lot at 18th and Arch streets where the American Commerce Center had been proposed.

• GlaxoSmithKline getting major property reassessments of its Lower Merion and Collegeville facilities. In Upper Merion, the school district, township and county settled the case for $6 million and in Collegeville it was $6.5 million, record amounts.

• The rise in new multifamily construction throughout the region.

• Endo Pharmaceuticals moving its headquarters to Atwater and Shire Pharmaceuticals looking at its options for a possible new home.

• Four Falls in receivership.

• CHOP makes some decisions on its real estate needs. It adds space at Wanamaker and finally decides to build its suburban campus on the old golf course site in King of Prussia, which is still in negotiations.

• Two Penn Center comes on the market, the first downtown office building to do so since 2007.

•Brandywine Realty Trust buys 1919 Market St. in Philadelphia.

•The owner of the Inquirer and Daily News takes $1 million from the state and nearly $3 million in subsidies from the city to help it move to the former Strawbridge & Clothier building on East Market Street."
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Brian O’Neill and Citizens Bank settle litigation

2011-12-25T08:26:00.002-05:00

"Citizens Bank of Pennsylvania and developer Brian O'Neill of O'Neill Properties Group have announced a settlement of all litigation between them.

The terms and conditions of the settlement are confidential.
O'Neill, one of the Philadelphia region's most prolific developers of residential and commercial properties, had filed a lawsuit against Citizens, one of his company's primary lenders, in January 2010, claiming that it breached its financial commitments to him.

That action was part of a deteriorating relationship between bank and developer, with Citizens Bank having secured a $61 million judgment against O'Neill in November 2009 for default on an office-construction loan for his still-largely incomplete Uptown Worthington mixed-use project in East Whiteland Township, Chester County."
http://www.omegare.com/

Optimation Technology Inc. Leases 6092 Square Feet in Exton

2011-12-22T15:26:00.000-05:00

"Optimation Technology, Inc. has leased a 6,092 SF flex suite located in the Pickering Creek Industrial Park, 180 Gordon Drive, Suite 110, Exton, PA.

Aggregate rental of the lease was in excess of $327,000.

According to their website, "Optimation Technology, Inc. is unique in their ability to provide complete engineering, automation, construction and maintenance services, from the conceptual stage, through prototyping, all the way to full production-scale operations. Optimation's engineers, designers and skilled tradespeople work together to successfully deliver thousands of projects each year through the US and the world". They are Headquartered in Rush, NY. They will be moving into their new facility early 2012."
http://www.omegare.com/

Fry Communications Leases 147,000 SF in New Kingstown

2011-12-22T15:10:00.002-05:00

"Fry Communications, a production and advertising company, signed a lease for about 146,500 square feet at 36 E. Main St. in New Kingston, PA.

The single-story, class A industrial building totals 146,590 square feet was constructed in 1981 and is owned by the Seagis Property Group."
http://www.omegare.com/

Oaklands Festival, Exton Sells for $24M

2011-12-22T15:07:00.002-05:00

"WP Realty, Inc. has sold the Oaklands Festival at Exton retail shopping center to Paramount Realty Services, Inc. for $24 million, or roughly $167 per square foot.

The multi-building retail development located at 400 - 470 W. Lincoln Hwy in Exton, PA totals 143,391 square feet. The center was 93 percent leased at the time of sale. It was built in 1991 on approximately 20 acres in Chester County."
http://www.omegare.com/

Philadelphia Commercial Real Estate Review - Year End 2011

2011-12-20T21:15:00.000-05:00

by Eric Stretch
Executive Summary
The commercial real estate market in greater Philadelphia continues to face challenges from a stalled employment market but has enjoyed activity from the manufacturing uptick posted during the end of last year and beginning of this year. As such, the industrial market is well into the recovery phase while the office market waits for the financial activities and professional and business services, the classic demand drivers for office space, to gain an uptick in employment. Rents across the board remain depressed and tenants in the market can still achieve discounted pricing below the market highs posted in 2007. Concession packages have shown signs of shrinking of late, but on a geographic basis where stronger markets have seen free rent written into deals dwindle as of late. Overall, the remainder of 2011 is expected to witness positive demand for all product types, albeit modest in some areas and for some products, and landlords should expect to begin filling vacancies, but at a much slower pace than any recent post-recessionary period given the depth and breadth of the greater economic downturn.s

Greater Philadelphia Regional Office Market
The greater Philadelphia office market may have bottomed out late last year given three consecutive quarters of occupancy gains. Driven by employment, office activity has been slow over the past three quarters while near-term future demand is expected to remain muted over the next year or so. Not surprisingly, the main culprits for the recent downturn in the market have been financial activities and professional services firms which posted nearly 1 million square feet of tenancy losses since the beginning of the recession. Offsetting this to some extent has been the nearly 800,000 square feet of space absorbed from the education and healthcare sector. In fact, this business sector accounts for nearly all the net occupancy gains posted in the greater Philadelphia Region since early 2008.

While the overall market appears to be in a state of flux, performance varies significantly from a geographic perspective. The downtown Philadelphia market certainly follows the greater trend having only just begun to shed some of the vacancy added to the market during the recent past. But a look toward the western suburban submarkets reveals quite a different story. Aggressive pricing by some area REITs drove demand during 2009 and 2010, positioning this area well where vacancy is near pre-recessionary levels. Activity in the northern suburbs is strikingly different where vacancy still hovers well over the 20 percent mark. Large retractions early on in the downturn from the likes of Unisys and GMAC pushed vacancy higher while the general market demand deterioration that followed the greater economic downturn added more and more supply to an already saturated market. In the southern New Jersey market, exposure to the greater financial meltdown was evident as large wholes appeared in the inventory from shuttered IndyMac operations and downsizing from Cendant Mortgage. This market continues to suffer from retracted demand and is not expected to fall into a recovery mode until at least next year, if not later.

Greater Philadelphia Region Industrial Market
Recovery persisted in Philadelphia’s regional industrial market, evidenced by the seventh straight quarter of occupancy gains. The vacancy rate fell to 9.3 percent, while the availability rate trended similarly, falling to 13.5 percent and down 90 basis points since its most recent peak in the first quarter of 2010. On a product-type basis, market measures do not translate universally. Claiming most of the occupancy gains during the past nine quarters is warehouse/distribution space where occupancy grew by over 12 million square feet. Furthermore, almost all of this sector’s gains occurred along the I-81/78 Corridor, outside of Philadelphia’s adjacent counties, proving recovery to be clustered by geography as well. Manufacturing space enjoyed a spike in activity from the middle of 2010 to the first quarter of 2011, but mirrored the sentiment contained in the Philadelphia Federal Reserve Banks Business Outlook Survey from July as manufacturing space posted near-zero occupancy growth in the second quarter. Manufacturing firms are somewhat optimistic about hiring plans over the next six months, but the effects this may have on real estate will be muted with little loss or gain in vacancy expected for the remainder of the year.

Average asking rental rates remain flat. During the recession and the months following, landlords opted to keep asking rents near peak levels in order to maintain leverage during lease renewal negotiations. While this strategy worked, new deals were often signed at 25 to 50 percent below asking rents and included significant amounts of free rent. Currently, asking rents remain artificially high, but to a much lesser extent. Free rent still is written into new leases, but amounts decreased toward the ½ month to 1 month per year of term with longer deals tending toward 1 month per year of term. Until the recovery is broad based across geographies and product types, tenants looking in less active submarkets can still demand lower rents with significant concessions."
http://www.omegare.com/

Keystone Property Group Pays $22M for Citizens Bank Center

2011-12-20T08:00:00.000-05:00

"Pennsylvania-based Keystone Property Group has paid $22 million for Citizens Bank Center, a 221,686-square-foot office tower in Wilmington, Delaware. The firm has purchased the 18-story property located at 919 N. Market St. from the Receivership Estate Over Specific Assets of B&R 919 LLC.

The office tower is 80% occupied. James Wellschlager and Jonathan Carpenter from Cassidy Turley's Capital Markets Group based in Baltimore negotiated the deal on behalf of the seller."
http://www.omegare.com/

PREIT adding Charming Charlie at Plymouth Meeting

2011-12-20T07:56:00.000-05:00

"Pennsylvania Real Estate Investment Trust said Monday it is adding a new tenant at the Plymouth Meeting Mall.

The Philadelphia-based company (NYSE:PEI) said Charming Charlie will open in the spring in 12,000 square feet in the “outdoor lifestyle retail wing” of the suburban Philadelphia shopping center that also includes Whole Foods and Orvis."
http://www.omegare.com/

Comcast Expands in Philadelphia

2011-12-18T12:58:00.000-05:00

by Natalie Kostelni
"Comcast Corp. has taken an additional chunk of office space at Three Logan Square in Center City.

The cable giant leased three more floors at 1717 Arch St. and occupies five floors and roughly 100,000 square feet in the building, which is situated nearly across the street from its headquarters at 1701 John F. Kennedy Blvd.

This is the third time in just over a year that Comcast has expanded. In August 2010, it leased 43,000 square feet at 1717 Arch. Comcast grabbed another 90,000 square feet at Centre Square late last year. In its latest expansion at 1717 Arch, it added roughly 60,000 square feet of space. It now has about 200,000 square feet of space outside of its headquarters.
“They went from 450,000 square feet in Centre Square to 1.3 million square feet. They have more than doubled over the last five years. This is a company that has grown by leaps and bounds.”

The company was initially supposed to occupy 534,000 square feet at Comcast Center but later added in 2005 another 338,000 square feet while the building was under construction.

But for pockets here and there, the company occupies most of Comcast Center, a 1.2 million-square-foot building, and doesn’t have room to take additional space in the tower. Though it expanded its downtown footprint before its acquisition of NBCUniversal, it has continued to grow.

Comcast leased the additional space at Three Logan because it is considering having some teams who require contiguous space locate there, said John Demming, spokesman at Comcast. While it has some room at its headquarters, it doesn’t have any contiguous blocks of space that would accommodate those departments.

The company’s growth does not yet translate into new construction.

Comcast owns a small parcel adjacent to Comcast Center and earlier this year an entity affiliated with Liberty Property Trust, which developed Comcast Center, bought a surface lot at 18th and Arch streets that many in the commercial real estate community believe is being eyed for another tower for Comcast.

On the heels of Reed Smith signing a 115,000-square-foot lease (full story: http://tinyurl.com/76mx8m7)

in the building combined with the Comcast lease and other deals, Three Logan continues to attract tenants. In a statement put out last week by Brandywine Realty Trust, which owns Three Logan, the company said it completed five leases in recent months at the building totaling 224,426 square feet and 462,236 square feet through the beginning of the month. All of that activity brought the occupancy of the tower to 88 percent. The company said its “leasing pipeline continues to be very strong with several additional transactions in advanced stages of negotiation” at the building. The firms taking up the most space at the building are Reed Smith with 115,000 square feet, Janney Montgomery Scott with 146,321 square feet (full story: http://tinyurl.com/74ymoht) and Comcast with roughly 100,000 square feet."

Full story: http://tinyurl.com/7aoyg77
http://www.omegare.com/

CHOP begins big dig

2011-12-18T12:42:00.000-05:00

by John George

The biggest excavation project in Philadelphia history is taking place in West Philadelphia.

The Children's Hospital of Philadelphia is spending $150 million preparing part of the old Civic Center site for an outpatient-care center that will sit on top of a five-story underground parking garage. The pediatric medical center’s expansion plans for ambulatory care, however, extend far beyond the city.

In an interview last week, CHOP President and CEO Dr. Steven Altschuler said in order to thrive under health-care reform, through which the government is shifting from a fee-for-service to risk-based model of paying providers, the hospital is planning to significantly enhance where and how it provides outpatient care.

CHOP’s board in September approved a $2 billion spending plan that includes, in addition to the 500,000-square-foot outpatient-care center at its main campus, a new ambulatory-care center in King of Prussia, where two existing care sites will be consolidated, and another in Central Jersey, where CHOP plans to open a facility on the campus of Princeton HealthCare System’s new $450 million hospital in Plainsboro.

The King of Prussia center will be part of the Village at Valley Forge, a new development on Swedesford Road near a new Pennsylvania Turnpike ramp at the Valley Forge exit. The facility will initially be about 100,000 square feet, and have the ability to expand based on demand.

The outpatient center at Princeton HealthCare’s new Plainsboro hospital will start out at 25,000 square feet and have the ability to expand to 100,000 square feet.

CHOP also plans to expand and renovate its existing specialty care and ambulatory surgery centers it operates in Voorhees, N.J., and Chalfont.

In addition, Altschuler said, consideration is being given to building another outpatient-care center along the Route 1 corridor south of Philadelphia or in northern Delaware.

“We are looking to enlarge our outpatient network in general,” he said. “Wherever possible, we want to move care from an inpatient setting to an outpatient setting. It’s socially responsible. It’s fiscally responsible. And it creates a better experience for patients and their families.”

Alan M. Zuckerman, president of Philadelphia health-care consulting firm Health Strategies & Consulting, said CHOP’s investment in ambulatory-care centers make sense.

“We are going to have a big shift from inpatient-oriented care to outpatient care, so you are going to see all children’s hospitals doing this,” Zuckerman said.

He said CHOP’s challenge is, as a specialty hospital, it has to cover a service area much larger than that of a general acute-care hospital. That means a larger investment in satellite campuses.

Altschuler said CHOP never considered any other site for its Philadelphia ambulatory-care center, set to open in phases starting in the spring of 2015, because the expectation is the facility will handle the most complex cases. The institution wanted the outpatient center — which will start with eight floors, but could grow to 16 depending on demand — to be on the main hospital campus where its specialists and researchers work.

“We want to be able to engage with multiple specialists at the same time” when providing care to patients admitted to the hospital and those being treated on an outpatient basis, he said.

CHOP’s other plans for the $2 billion spending package OK’d by its board include the $30 million Nicholas and Athena Karabots Primary Care Center at 48th and Market streets in West Philadelphia. Altschuler said other primary-care centers are under consideration.

The hospital is also allocating about $400 million for information technology expenditures across its network. CHOP entered into a deal last month to establish a joint genome center with BGI of China to conduct large-scale human genome sequencing and bioinformatics analysis in Philadelphia — with a goal of developing genomics-based personalized medicine for patients.

The hospital is also looking to expand partnerships with existing providers, such as the alliance it formed at the start of this year with Virtua, where it can bring its specialists out to other locations.

Altschuler, who came to CHOP in 2000, noted the hospital is able to focus on outpatient care now because the first part of his tenure was spent renovating its inpatient facilities and growing its research capabilities.

The hospital spent more than $2 billion over the past decade on projects that included adding 14 floors to its Abramson Pediatric Research Center, renovating and expand of its south and west patient-care towers, building a new façade for the hospital’s main entrance, and, last year, opening the $500 million Ruth and Tristram Colket Jr. Translational Research Building — a 12-story facility that houses pediatric research labs for cancer, diabetes, epilepsy, blindness and hemophilia.

In October, CHOP sold $270 million in tax-exempt bonds issued by the Hospitals and Higher Education Facilities Authority of Philadelphia to help fund the new ambulatory care center.

Moody’s Investors Services affirmed its Aa2 rating — its second-highest rating — on the hospital debt, totaling $795 million after the financing, that same month.

Lisa Martin, senior vice president for Moody’s public finance group, said the rating is based “on CHOP’s national prominence among children’s hospitals in terms of clinical strengths and research capabilities, leading market position in the greater Philadelphia region, exceptional patient demand with high occupancy levels and volume growth, very good investment position and strong operating margins.”

In fiscal 2011, the report notes, CHOP posted a 4 percent operating margin and 13 percent operating cash-flow margin. Moody’s also noted the hospital’s revenue growth has averaged 8 percent over the past five years. It revenues topped $1.8 billion in fiscal 2011.

Martin said CHOP’s challenges include the ambulatory-care center project that will elevate capital spending, growing its research subsidies and having a concentrated payor mix that is dependent upon Medicaid and large commercial payors (most notably Independence Blue Cross).

Altschuler said coping with spending in Medicaid reduction is a huge issue for all children’s hospitals now that more than half of the patients treated at such facilities are covered by some type of medical assistance program. At CHOP, 37 percent of the patients are coverage by Medicaid. The creation of its network of specialty care centers in the Philadelphia suburbs and South Jersey, he said, has helped CHOP improve its payor mix by bring in more patients covered by private insurance.

CHOP has taken other steps to diversify its revenue base.

It developed an international medical tourism business to attract patients from other countries. That business, Altschuler said, has grown to $60 million a year in revenues from $6 million two years ago.

The hospital also started a management consulting business to work with other children’s hospitals nationally and internationally. “We will not invest our own capital in facilities abroad,” Altschuler said, “But we think through partnerships we can increase our global footprint.”
Full story: http://tinyurl.com/d6m2mfo
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Willow Grove shopping center sold

2011-12-16T11:53:00.001-05:00

"The Real Estate Equity Co. of Englewood, N.J., has acquired the Best Buy shopping center in Upper Moreland for $14.6 million.

The 71,000-square-foot shopping center is also home to Pier 1 Imports. The acquisition was partly financed by The Provident Bank in Iselin, N.J.

The company, also known as TREECO, owns or has interest in 20 properties in New Jersey, Pennsylvania, Florida and New York.

Additional coverage:
"Goodman Properties sold the Best Buy Shopping Center at 1130 - 1134 Easton Rd. in Willow Grove, PA to The Real Estate Equity Company LLC for $14.6 million, or about $200 per square foot.

The 72,934-square-foot retail property sits on about 6.6 acres and boasts a parking ratio of 4.74. In addition to the anchor tenant, Best Buy, the building is also occupied by Pier 1 Imports. The shopping center is located less than one half mile from of the Pennsylvania Turnpike."

http://www.omegare.com/

Multi-Family Housing a Real Estate Hot Spot

2011-12-15T17:14:00.000-05:00

http://www.omegare.com/

Comeback in Commercial Real Estate?

2011-12-15T17:07:00.002-05:00

http://www.omegare.com/

Bond Family Partnership LP acquired two industrial flex for $2,865,000

2011-12-15T16:21:00.000-05:00

"Bond Family Partnership LP acquired two industrial flex assets in Manheim, PA totaling 105,392 square feet for $2,865,000, or about $27 per square foot.

The properties, both located in Lancaster County's Manheim Borough, immediately off Route 72 just 15 miles south of the Lebanon-Lancaster Interchange Exit 266 on the PA Turnpike and six miles north of Route 30 and I-283 in Lancaster, include:

311 W. Stiegel St. - a 76,129-square-foot building on 2.2 acres. Included in the sale was 411 West Stiegel St., a parking lot consisting of 48 surface spaces, and 106 South Penn St. with another 43 parking spaces. These properties were purchased from Arbee Realty Trust for $1,733,325.

102 S. Heintzelman St. - situated on 4.3 acres, it consists of a 29,263-square-foot building. This property was purchased for $1,131,675 from M&H Investors LLC.

Fenner Drives, a leader in reinforced Polymer technology, has long-term leases at both buildings, which sold with a reported capitalization rate of 8.8%."
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Gamesa Tech Corp Moves HQ to Northbrook Corporate Center

2011-12-15T16:17:00.002-05:00

"Gamesa Technology Corporation is moving into 74,297 square feet at 1150 Northbrook Drive in Trevose, PA. Gamesa will be consolidating a few area offices and relocating its US headquarters to this location sometime between April and May 2012.

The four-story building totals 107,500 square feet of class A office space in the Northbrook Corporate Center. The property was developed by Acorn Development Corporation in 2007 and was foreclosed on earlier this year."
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Copley Place Apts Trade for $6.7M

2011-12-15T16:15:00.000-05:00

"While in the final stages of foreclosure, New York Community Bancorp sold Copley Place Apartments to Lindy Property Management Company for $6.7 million, or about $42,000 per unit.

The 184,736 square foot apartment community located at 7400 Haverford Ave. in Philadelphia offers 158 units with a mix of one- and two-bedroom units in two buildings. The units were reported to be very large and the complex includes balconies, central air and a swimming pool. The property was 60 percent occupied at the time of sale."
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Two Sales Totaling Over $14 Million

2011-12-13T21:41:00.000-05:00

"Two prime multi-family buildings were sold. Lofts at Liberty, located at 1600 Chestnut Street in center city Philadelphia, contains 54 units plus street level retail. The second property, located at 3717-3719 Chestnut Street in the heart of the University City district, has 29 units in 24,498 square feet, with some off-street rear parking.
"The sale of these two properties is an illustration of the current strong demand for multi-family properties. Multi-family properties are currently popular commodities because they offer stable investments with growth potential for their buyers. With rental rates rising and the current unstable condition of the single family housing market, the multi-family market is strong. Many private capital investors have become disillusioned with the "bungee cord" stock market and are turning to real estate as a more sensible investment strategy. Investing in multi-family product is a secure and sensible form of capitalizing on current market conditions."

The center city building was owned by Beneficial Partners, LP and sold to Pearl Properties. The property, located in CBD at 1600 Chestnut Street is directly across from Liberty Place. The building was built in 1954 and underwent major renovations in 2002. Situated in a prime center-city location it offers excellent long-term leasing opportunities. At the time of sale, the property was 100% leased.

The University City building was owned by 3719 Chestnut Corporation and sold to the Cathedral Church of the Savior. The property is fully occupied and is a desirable long-term investment for the buyer because of its location adjacent to the University of Pennsylvania and Drexel University and the strong collegiate occupancy that offers."
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West Chester Property is Selected as Pilot Program for Bank of America Merrill Lynch SBA Financing

2011-12-13T21:37:00.000-05:00

"Bank of America Merrill Lynch and SeedCo PA, an arm of the Chester County Economic Development Agency, and the developer, Lincoln Park Partners, L.P., announce the newly formed Preferred Lender Program to streamline the delivery of the Small Business Administration (SBA) 504 Loan Program.

The property, Lincoln Independence Park, is a reclaimed 13-acre Brownfield site in West Goshen Township that has been redeveloped as industrial flex condominiums to provide ownership opportunities for local, small businesses. The SBA 504 program offers up to 90% financing for real estate, property improvements, and business equipment and inventory.

The property was developed in an effort to provide small business owners the opportunity to own their place of business. "Real estate is a precious commodity in West Chester and Chester County. Often times, it is not economically feasible to create ownership opportunities for smaller properties. Units are available in increments of 2,700 SF with loading docks or drive-in access.

The property is also located within the Keystone Innovation Zone (KIZ), which offers tax incentives to hi-tech and bio-tech related businesses. Additionally, each unit is equipped with separate utilities and assigned parking. The flexible (flex) units are designed to be utilized as part office and part warehouse space.

The park is currently over 65% occupied with a variety of companies to include manufacturers' representatives, contractors and tradesmen, medical research, and distributors."
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Pg 26 - Montco Chamber of Commerce Real Estate section

2011-12-13T12:59:00.000-05:00

MCD11 Winter Newsletter 1-52_WEB
http://montconewsmag.com/current.html
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Sly Fox Brewery Acquires Building in Pottstown

2011-12-12T14:05:00.000-05:00

Sly Fox Brewery acquired a 32,000 sq. ft. Class B flex building on 5.2 acres. The property is located at 331 Circle of Progress Drive in Pottstown, Pennsylvania.

The buyer, Sly Fox Brewery will be relocating their brewery from Royersford, Pennsylvania. The property was purchased from Charles Moyer.
http://www.omegare.com/

QPSI Inks 157,500-SF Lease at Lehigh Valley South

2011-12-12T10:22:00.000-05:00

"Quality Packaging Specialist International LLC (QPSI) signed a long-term lease deal for 157,500 square feet of industrial space at the Lehigh Valley South Distribution Center, bringing the building to 100% occupancy when the tenant takes possession in the first quarter of 2012.

QPSI is a leader in packaging and supply chain logistics, specializing in the pharmaceutical, healthcare and consumer goods industries for more than 35 years.

The building was developed in 2008 by Trammell Crow Company and is owned in a joint venture with a Clarion Partners co-mingled fund. Located at 7570 Industrial Park Way in Lower Macungie, PA, near I-78 and the Pennsylvania Turnpike, the building totals 315,000 square feet of class A industrial space and features a 32-foot clear height, 50-foot column spacing, ESFR sprinkler system and trailer storage."
http://www.omegare.com/

Philadelphia's Industrial Vacancy Increases to 9.4%

2011-12-12T10:20:00.000-05:00

"The Philadelphia Industrial market ended the third quarter 2011 with a vacancy rate of 9.4%.

The vacancy rate was up over the previous quarter, with net absorption totaling negative 302,960 square feet in the third quarter. Vacant sublease space increased in the quarter, ending the quarter at 3,621,608 square feet.

Tenants moving out of large blocks of space in 2011 include: RR Donnelley & Sons Company moving out of (686,000) square feet at York Business Center, Borders Distribution Center moving out of (598,474) square feet at 1501 Distribution Dr, and Allen Distribution moving out of (535,000) square feet at 7533 Industrial Park Way.

Rental rates ended the third quarter at $4.44, a decrease over the previous quarter.

A total of three buildings delivered to the market in the quarter totaling 768,577 square feet, with 145,770 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 9.6% from the previous quarter, with net absorption positive 43.11 million square feet in the third quarter."
http://www.omegare.com/

New theater stage coming to Norristown

2011-12-10T22:57:00.002-05:00

"A new theater is coming to downtown Norristown next fall. The professional stage company Theatre Horizon plans to open a 120-seat house of its own, a $900,000 project being funded by private donors and audience members, plus Norristown and Montgomery County.

The company's cofounders and artistic directors, Erin Reilly and Matthew Decker, will officially announce the new theater, to be housed in the former Bell Telephone building next to the county courthouse at DeKalb and Penn Streets, at the opening Friday of Voices of Christmas. The show is running at the Centre Theater, a general-arts facility in Norristown.

Horizon has rented the top floor of that building for about half its seven-year existence; the company has staged shows in seven venues since its first production, The Laramie Project, in the auditorium of Upper Merion High School. Theatre Horizon is one of the region's fast-growing professional suburban companies, and this year it won four Barrymore Awards - its first ever in the region's professional theater awards - for its 25th Annual Putnam County Spelling Bee.

Horizon has never had its own theater. "We really need a year-round home for our educational programs and a place where we can expand our productions," Reilly said. "The new theater will allow us new possibilities."

To help pay for the theater, Horizon was awarded a $200,000 grant from Norristown and Montgomery County revitalization funds. The company believes dining, parking, and other costs to audience members and the theater will return more than $65,000 a year to the borough.

The 1920s-vintage Bell building had been a line-switching station until about 15 years ago, then sat empty. Four years ago, two developers, Bob Kaufman and Mount Airy restaurateur Ken Weinstein, bought it, decided it would be appropriate in the arts district Norristown was trying to create along four blocks of DeKalb Street, and looked for an interested arts group. "Theater Horizon responded with enthusiasm," Kaufman said Thursday.

The stage company serves 600 students in education outreach in schools, and runs a program for autistic children. "Our energy will continue to grow with a new space," Decker said in a separate phone interview, "and we'll help to rejuvenate Norristown."
http://www.omegare.com/

Toll Bros. buys New Market property for $5 million

2011-12-09T07:52:00.000-05:00

by Natalie Kostelni
Toll Brothers Inc. paid $5 million to buy the former New Market Pavilion site in Society Hill and plans to move forward with a new condominium project there.

The derelict property at 410 Front St. has been an eyesore for two decades even though it sits in one of the fanciest neighborhoods in Philadelphia. Attempts to develop it over the years have failed. Toll continues to work with the Society Hill Civic Association and other city agencies to complete the approval process.
...
The company is going through the approval process to construct a multiphased residential complex on a deteriorating parking garage at 24th and South streets that it bought five years ago. The estimated $60 million development would have 127 units in a mix of condos and townhouses, Emmons said. If all goes according to plan, it will demolish the garage and break ground this January or February on the first phase. The project is expected to take three years to complete depening on market conditions.
Full story: http://tinyurl.com/7jbmex7
http://www.omegare.com/

Reed Smith moving to Three Logan tower

2011-12-09T07:44:00.000-05:00

by Natalie Kostelni

"Reed Smith is relocating its Center City offices to Three Logan after spending more than 20 years at One Liberty Place.

The law firm signed a long-term lease on 115,000 square feet on floors 28 through 33 at the signature office building owned by Brandywine Realty Trust. Terms of the deal weren’t disclosed and Brandywine declined comment.

The lease means one of the big tenants fishing around Center City for office space has landed, leaving fewer large blocks of contiguous trophy space for them to consider even though it does open up a large chunk in One Liberty.

At the beginning of the year, nearly a dozen big downtown office tenants totaling more than 1.5 million square feet — enough to fill Comcast Center and then some — began to have early conversations about their office prospects and begun to assess what space is or, what they fear, isn’t available. Since then, three of these tenants have secured leases and the others continue to mill about.

The Reed Smith lease, added with some other deals, also means Brandywine has made significant inroads to chip away at the empty office space that had plagued Three Logan. At the end of September, the 53-story, 1 million-square-foot building was 67.2 percent leased, according to Brandywine’s quarterly report. When Janney Montgomery Scott moves in to 146,321 square feet at the building, it will be 82.1 percent occupied, and this deal will mean the building will be more than 90 percent leased.

Reed Smith started its search in earnest a year ago and considered seven buildings, said Patricia A. Hiltibidal, chief of office services at the firm, in a statement. It then narrowed the list based on some of its requirements.

“Office moves of this magnitude are long and challenging,” Hiltibidal said in the statement. “We needed a turnkey solution with little disruption to our busy attorneys and Three Logan accomplished that.”

The firm will move in early 2014.

Reed Smith occupies floors 23 through 28 and portion of the 22nd floor of One Liberty. It had been in the 58-story skyscraper at 1650 Market St. since it opened in 1987. “There are a lot of moving parts in the Double A market. I think certainly the Double A market continues to get a lot tighter and vacancies Double A market is single digits.”

Though space in the fanciest office buildings is diminishing, most believe it’s not enough to kick off new construction since lack of rental growth doesn’t support it.

“New construction happens when rates get well north $40 a square foot,” Cauffman said.

Though, Reed Smith lease punches a 150,000-square-foot vacant hole in the 1.2-million-square-foot building, downtown office brokers believe it will have a good opportunity to get leased up. One Liberty has about 88,213 square feet already vacant, which is about 7.4 percent of the total building’s square footage.

“I think Liberty will be fine. It’s a Class A building with Class A management and a Class A location. It won’t take long to backfill that space. There are lots of big guys looking and not a lot of big blocks of space, so you have to nail down your opportunities. That’s always been the case in Philadelphia with trophy space.”

One Liberty has faced defections before. For example, Duane Morris moved out of 215,000 square feet in 2004. “We wish we could have kept Reed Smith but we’re not concerned that we can’t fill that hole. We’re already talking to three different people about the space.”
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WeiserMazars to 27,000 SF Lease in Fort Washington, PA

2011-12-08T16:54:00.000-05:00

WeiserMazars LLP, one of the nation's 25 largest accounting and advisory firms, will open a new 27,000 square foot office in Fort Washington, PA.

The new office, located at 501 Office Center Drive in Fort Washington, will officially open in the spring of 2012, and will initially house approximately 100 employees who are relocating from the firm's current office in Horsham, Pa.

501 Office Center Drive in Fort Washington is a 114,000 square foot, Class A, four-story, multi-tenant office building with on-site management and a deli.

The new office will expand WeiserMazars' footprint in Pennsylvania as the firm grows its auditing and advisory services in the real estate, private equity, insurance, manufacturing and non-profit sectors.

Fishbein & Co. joined the firm in January 2010, and several LECG Corp. practice groups also became part of WeiserMazars in early 2011.

"Our new regional office will support our growth as we continue to hire new professionals to build out our practice areas," said Kathryn A. Byrne, partner-in-charge of the Pennsylvania office. "We are particularly excited that our new office will be completely paper-free."
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SunOpta Food Signs 101,250 SF Lease

2011-12-08T16:49:00.000-05:00

SunOpta Food Inc. has agreed to a long term lease of the entire facility at 7108 Daniels Drive in Upper Macungie Twp., Lehigh Co., PA.
The building owner is J.G. Petrucci Co., Inc. (JGPCO).

Built in 2001, 7108 Daniels Drive is a single story building on 9.05 acres. It features a 4,806 sq. ft. office and 24' to 26' clear ceiling heights.

SunOpta will utilize the 101,250 SF facility to produce a range of natural and organic fruit-based consumer packaged products utilizing innovative packaging formats.

SunOpta Food Inc. specializes in sourcing, processing and packaging of natural and organic food products, integrated from seed through packaged products; with a focus on strategically significant vertically integrated business models.

"The collaborative effort from all parties involved was paramount to completing the deal - 20 days from first inspection to lease execution," said Peter Polt of JGPCO.
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BJ's For Sale in Oaks, PA

2011-12-08T14:50:00.000-05:00

Marcus & Millichap Real Estate Investment Services has been awarded the exclusive BJ's Wholesale Club located at The Marketplace at Oaks in Oaks, PA, is being listed for sale. It is a 119,689-square-foot, absolute net-leased. The asking price is $27,620,538 or $230/sf.

BJ's has almost 13 years remaining on a triple-net lease with an impressive 8 percent rent increase every five years according to the brokers, with the next increase set to occur in November 2014.

While BJs doesn't report individual sales for this location at this time, it is believed the store is well performing due to the demographics in the area. It is located just off the expanding Route 422 corridor and was constructed in 2008 as a build-to-suit for the tenant. The 2 million-square-foot Marketplace at Oaks shopping center is co-anchored by a Lowe's Home Improvement, Target, and Regal Cinemas.
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Bottom Dollar Coming to Ambler

2011-12-07T15:26:00.000-05:00

Thomas Celona
"A grocery store is coming to Ambler Borough.

Nearly three years since the Acme on Butler Avenue closed its doors, the borough has announced a Bottom Dollar Food will be built in 2012. Borough officials delivered the good news during borough council's committee meeting on Tuesday.

"It's just something we've desperately needed and missed, and we're just excited to have another store investing in our community and opening up," Borough Manager Mary Aversa said Wednesday.

Moreland Development has struck a deal to build the grocery store at the former Knopf Motors property at 219 E. Butler Ave., according to Aversa.

The agreement on the property just occurred within the past couple weeks, and plans for the store will now move to the review stages.

"We've gotten plans within the last week," Aversa said. "They're preliminary plans. We're still working through a lot of things."

The proposed grocery store would be approximately 17,000 to 18,000 square feet, according to Aversa.

The plans will have to go before both the planning commission and zoning hearing board, according to Aversa. The zoning hearing board will hear the application from Bottom Dollar Food at its Dec. 15 meeting.

The developers are looking to get through the process quickly and bring the store to the borough.

"They're very anxious to get started," Aversa said.If all goes to plan, the developers have said the store could be completed by as early as this spring, according to Aversa.

The borough has been without a grocery store since Acme, formerly located at the present-day spot of CVS Pharmacy at 272 E. Butler Ave., closed Jan. 29, 2009.

Since Acme's closing, many residents have voiced their concern about the lack of a walkable grocery store — a concern borough council heard loud and clear.

"This has been a priority of borough council, and they've given me the direction to do what we need to do to facilitate this to make it happen," Aversa said.

Aversa said the new grocery store will be an important piece of life in the borough and be a major plus for many residents who are elderly or like to walk to the store.

"I think it's critical," she said. "It really gives us back our walkable community."
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Legendary Deal Makers Richard LeFrak and Wil Ross on Economy

2011-12-05T08:11:00.000-05:00

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New Apartment Complex, with 385 Units, Coming to Conshy

2011-12-05T07:59:00.000-05:00

A new apartment community is coming to Conshohocken in 2012. The community, the Courts at Spring Mill Station, will be at the corner of 1101 E. Hector Street and North Lane in what has been Reilly Foam. Home Properties, which already owns Sherry Lake Apartments in Conshohocken, states on its website:

Home Propertie has two land parcels under contract. Courts at Spring Mill Station is located in Conshohocken, PA, a suburb of Philadelphia. The project is on land that the Company holds a purchase option on and is in the middle stages of the entitlement process for approximately 385 apartment units, with all approvals expected by the end of 2011. Construction is expected to begin in the first half of 2012 and total estimated costs are approximately $79 million.
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Chester County Pediatrics lease 4,000sf in Exton

2011-12-02T09:04:00.000-05:00

"Chester County Pediatrics, P.C., led by Dr. David Cooper and Brenda Souder, R.N., recently leased 4,000 SF at the Commons at Oaklands, 690 West Lincoln Highway, Exton, PA , a new office condominium development in West Whiteland Township. The Practice has served Chester County families for over 30 years and has locations in Exton, Avondale, and Parkesburg.

"We are extremely excited about our new office space. The space will allow us to serve our clients into the future in a more efficient and improved manner" commented Dr. Cooper. "Chester County Pediatrics will complement the well-established medical community within the complex" stated Souder.
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Brisk sales for industrial buildings

2011-12-02T08:40:00.000-05:00

by Natalie Kostelni

"Drew Court, King of Prussia is a 146,906-square-foot industrial complex here, has sold after being on the market for about six months.

Though the property lingered, it wasn’t for lack of interest. More than 20 groups took a look at it; 11 different offers were made.

Endurance Real Estate Group of Bala Cynwyd paid $9.25 million for Drew Court at 420 and 440-480 Drew Court. Ajax Partners of Lexington, Mass., was the seller. The property has eight tenants and is fully occupied.
“It’s stabilized and we thought we were getting a great asset at a great price,” said William A. White, CEO of Endurance.

Though not a tremendous amount of commercial real estate is trading these days, industrial is one property type that has seen steady activity. Investors view industrial buildings as stable, attractive commercial real estate that can provide steady long-term returns. One transaction had Industrial Income Trust buying a portfolio from TA Associates that included 13 buildings in Montgomery and Bucks counties for more than $36 million.

While real estate investors have driven the bulk of transactions, we have seen companies seize on some industrial properties for their own use.

“Interest rates are good, their business is good and they thought it was a good time to buy,” he said. “Prices are also down 10 to 15 percent from 2006 and 2007.”

For example, NCC Automated Systems, after renting for a number of years, bought a 27,900-square-foot building on 10 acres at 255 School Road in Souderton, moving out of 20,000 square feet it had been leasing. Volpe Enterprises was another firm that decided to buy. The home remodeling and roofing company bought a 40,000-square-foot property at 217 Church Road in North Wales for $1.8 million.
KSG Industrial is another example. The company had been leasing 8,000 square feet when a 12,500-square-foot building a block away at 837 W. Third St. in Lansdale came up for sale. KSG bought it for $650,000.

Investors, though, are scouring the market for good deals such as Drew Court, which marks Endurance’s third acquisition in the last 16 months.

“It’s highly functional real estate,” Hines said. “Even in the downturn, this property always leased.”

For a company that needs easy and quick access to major arteries, Drew Court’s location is highly desirable by tenants. It’s only a mile to two miles from any of the interchanges of Route 202, the Pennsylvania Turnpike and the Schuylkill Expressway. Because of this, occupancy has always been high at the property and rents strong.

None of the tenants’ leases expire until 2013, which was another feature that attracted Endurance to acquire the property. Some of the larger firms occupying space in the complex include Pinnacle Textile, OBO Bettermann and Shingle Belting. Rents have gone as high as $7.50 a square foot compared to an average of $5.06 a square foot for the suburbs.

Leasing activity for industrial space in the western suburbs has also picked up and that is also helping to propel the market.

The vacancy rate has dipped to 8.5 percent at the end of the third quarter from 9.2 percent at the end of last year and more than 1 million square feet has been absorbed. The tightest market is Chester County with 5.9 percent and that’s slightly up from the beginning of the year when it stood at 5.6 percent.
Companies have been “trading up” to better quality or better located buildings. For example, Reilly Foam subleased 145,000 square feet at 1001 Trooper Road in Lower Providence and is moving from Conshohocken. Lyon Conklin & Co. took 82,750 square feet at 550 S. Henderson Road in King of Prussia and is moving and expanding from 61,200 square feet in Montgomeryville. Centurion Medical Products leased 97,200 square feet at Gehman Road in Harleysville.

In South Jersey, more than 1.5 million square feet of lease deals have been sewn up, including 290,000 square feet at the Barrington Business Center by Computer Sciences.

“It has been a good six months and overall it has been a pretty good year across the region. It isn’t quite 2006 all over, but certainly an improvement over the last three years.”

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