Tuesday, September 30, 2014

Wiley Signs 386,000-SF Office Lease in New Jersey

In what will surely be the largest office lease this quarter in the Northern New Jersey market, John Wiley & Sons, Inc. (NYSE: JWA), a global digital and print publisher, has signed a 15-year lease renewal totaling 386,407 square feet of office space at 111 River St. in Hoboken, NJ.

Waterfront Corporate Center I is a 13-story, 550,000-square-foot, 4-Star office building constructed in 2002 on 2.5 acres in the Hudson Waterfront submarket. Located adjacent to the Hoboken Terminal, the office park is easily accessed by NJ Transit trains and busses, PATH service, Waterway ferries, and the new Bergen-Hudson Light Rapid Rail System.

The new lease, originally set to expire in 2017, now extends the tenant's commitment to the building through March 2033.

"111 River Street is one of New Jersey Waterfront’s most visible and accessible addresses with dramatic views of Lower Manhattan, the Hudson River and the New York Harbor," commented David J. Goldstein, executive vice president of Savills Studley. "This transaction reaffirms the strength of Hoboken’s office market, as well as Wiley’s commitment to the dynamic city of Hoboken and the state of New Jersey."

Founded in 1807, Wiley develops and markets products and solutions to a diverse customer base while publishing scholarly journals, higher education teaching materials and interactive learning tools, books including encyclopedias and the "For Dummies" series, and services and solutions in research, professional development, and education. It employs 5,500 people worldwide in 70 facilities across 28 countries. In 2002, the company relocated its corporate headquarters to the then-burgeoning Hoboken waterfront office market from 605 Third Ave. in New York City.

According to Barlow, Wiley decided to maintain its offices in Hoboken following an extensive search throughout New York and New Jersey, feeling that it would enable the firm to continue providing best-in-class services to its customers and partners.

Monday, September 29, 2014

Outlook for Commercial Real Estate Looks Strong

by FunnelCast
The latest CRE news reports show that the outlook for commercial real estate remains strong as we leave behind Q2 and move toward the conclusion of Q3. Both pricing and volume have shown signs of shifting upward, while risk premiums and cap rates decline.
One of the reasons that the future looks so bright for commercial real estate is the fact that an increasing number of investors are opting to take advantage of low interest rates. This is serving to drive up both pricing and transaction volume in all of the major sectors. Among the major sectors, the office sector is proving to be the leader, which should come as no surprise because it has proven to be historically dominant. Combined, the commercial volume within the five major sectors reached more than $81 billion during the second quarter of this year. This figure represents a 14 percent increase from one year ago. Approximately 55 percent of the total transaction volume was accounted for by the office and apartment sectors. This is a trend that is similar to the situation of one year ago. One element that does differ is that among those two sectors, the apartment sector's volume share has declined. On another note, retail transactions accounted for 16 percent of the total volume.
In terms of pricing, steady gains have also been achieved, with industrial pricing taking the lead in gains. In May, a 15 percent year-over-year gain helped the industrial sector to move into second place among the top five sectors, just behind the hotel sector. Since June of last year, the hotel sector has managed to maintain an average between 15 percent and 20 percent of year-over-year growth.
In the retail sector, significant price surges over last year were seen, not dissimilar to the growth currently being experienced by the industrial sector. That growth has begun to level off in recent months, however, largely due to an increase in online shopping. The shrinking amount of space needs required on a per-customer basis has also contributed to slower growth in the last few months within the retail sector.
As the economy continues to improve, the outlook for the commercial real estate industry will continue to brighten, as well. Nationally, office vacancy rates are expected to change little over the course of the coming year. This is primarily due to new inventory entering the market. Declining vacancy rates are expected in the industrial sector, primarily due to shrinking trade deficits and an increase in exports. Although online shopping is rising, increases in consumer spending and personal income are expected to drive a decline in retail space in the coming months. In recent months, new construction within the multifamily sector has continued to increase at a steady pace. Simultaneously, the demand for rental housing has continued to rise.  

Urban Outfitters Plans Upsized Stores

by Paul Bubny, Globest. com
As part of a drive to double its revenues by the year 2020, Urban Outfitters will introduce a super-sized version of its Anthropologie chain, the locally based retailer said during an investor presentation Thursday. The Philadelphia-based company plans to open 25 to 50 Anthropologie locations of about 20,000 square feet each, about three times the current stores’ average footprint, Bloomberg reported Friday.
The larger-scale Anthropologie stores will offer a broader selection of home goods as well as beauty products and intimate apparel. Urban Outfitters will also test the larger format for its namesake brand as well the Free People chain.
Currently apparel represents about 71% of the product mix, while home goods comprise 17%. The 2020 product mix calls for apparel’s share to be scaled back to 53% and home goods to increase to 22%. 
“They want to turn them more into destination stores than clothing stores,” Howard Tubin, an analyst with RBC Capital Markets, told Bloomberg on Friday. “They truly understand their customers across all their brands. They believe if they offer the right product, the product will sell.”
In its most recently quarterly earnings report, issued last month, Urban Outfitters reported sales of $811.2 million, up from $774 million the year prior. The retailer has reported new sales records in each of the past 10 quarters.

Sunday, September 28, 2014

Bristol-Myers Squibb to Build New 650,000-SF Campus

by John Jordan, GlobeSt.com
Global pharmaceutical firm Bristol-Myers Squibb Co. reports it will be significantly expanding its presence here with the planned development of a new 650,000-square-foot campus on company-owned land at the intersection of Princeton Pike and Interstate 295.

Construction is expected to begin this fall with occupancy projected at the end of 2016. The company’s worldwide headquarters, which opened in 1971, is located at U.S. Route 206 and Province Line Road. The new campus will allow the company to consolidate operations in leased office space at 777 Scudders Mill Road in Plainsboro Township and at Nassau Park Boulevard in West Windsor Township. The company currently employs more than 2,000 people at the Route 206 headquarters campus and more than 6,000 in central New Jersey. Once work is completed, as many as 2,500 people will work at the new Lawrenceville facility.

The Princeton Pike location was purchased by Bristol-Myers Squibb from RCN Corp. in 2001, company officials state.

“We are proud to expand our presence in Lawrenceville, a community that has been home to our company for more than 40 years,” says Bristol-Myers Squibb CEO Lamberto Andreotti. “Our new campus will create a dynamic and modern workplace to advance the important work that our employees are doing to discover, develop and deliver innovative medicines for patients with serious diseases.”

“I'm excited that Bristol-Myers Squibb has decided to increase their investment in Lawrence Township,” says Lawrence Township Mayor Cathleen Lewis. “The company has been a constant partner in making Lawrence Township a great community; this new project will continue that legacy. We appreciate the confidence Bristol-Myers Squibb has shown in our town and it is another sign that Lawrence is a great place for businesses to invest.” The Lawrence Township Planning Board unanimously approved final site plans for the new campus in June.

The company says the new facility represents “the company’s broader strategic initiative to "modernize its facilities through improved technology, more efficient design and workspace that enables collaboration, creativity and innovation.” The working environment will be both wired and wireless to enable employees to access the applications and information they need no matter where they are on the campus.

The new campus buildings are targeted to meet LEED certification standards for energy and environmental design. Most mechanical equipment will be located below ground to reduce noise. A segment of the Lawrence Hopewell Trail on the campus will link to a network of walking paths on the property, and nearly half of the 134-acre tract will remain working farmland. There will be preferred parking areas for hybrid vehicles and indoor bicycle racks. The parking areas will be paved with porous pavement to reduce runoff and promote recharging of groundwater aquifers.

Why the Industrial Market is Getting White Hot

by Jennifer LeClaire Globest.com
The industrial market is turning plenty of heads as the rebound continues and new spec development starts hitting key markets. But where are the true hot spots—and what makes them hot?

GlobeSt.com caught up with Bill Waxman, executive vice president of CBRE's Global Port Logistics Group, to get his thoughts on the state of the market, its evolution over the past year and the hotspots in part one of this three-part exclusive interview. Be sure to return to this afternoon's Miami edition for part two.

GlobeSt.com: What is the overall state of industrial, nationally, in terms of investment, development and leasing demand?

Waxman: The industrial capital markets continue to be on fire. Investors are no longer looking at industrial as a stepchild but, rather, as the white night.

Capitalization rates across the country are declining and, as a result, we’re seeing a huge amount of demand for a less-than-huge amount of supply. There’s great competition among global, national, and local investors for the same rare product.

At the same time, development demand is very healthy. In every major and secondary market, there continues to be new development—there’s currently more than 11 million square feet under development in New Jersey alone—and this is the right amount of development.

Markets won’t see an oversupply but will eventually reach equilibrium. This new development is directly in response to a healthy demand for leasing nationally and the continual activity on both fronts is bound to progress to productivity.

GlobeSt.com: How does that compare to a year ago?

Waxman: The overall state of the industrial market has continually improved since last year, though national asking rents are about the same. There hasn’t been a spike improvement but, rather, slow and steady improvement in leasing demand, development, and investment.

GlobeSt.com: What are the hot spots in industrial real estate—and why?

Waxman: There are a number of key hot spots in all regions across the country. Certainly, Los Angeles is a crucial market because of its ports, as well as the Inland Empire, which is cost competitive with Los Angeles and is ideal for transportation and distribution. As a result, the Inland Empire—along with Eastern Pennsylvania—remains the premier big-box industrial market in the US.

The Atlanta market has completely turned around and is doing very well, providing the southeast region with a key industrial asset. Louisville is also doing well, with help from the UPS hub Eastern Pennsylvania is on fire and can be considered the east coast equivalent to the Inlet Empire on the west coast.

Eastern Pennsylvania is cost competitive with New Jersey and still services the number one consumer zone in the nation. Additional hot regions include Miami—which can attribute its increasing activity to the rapid growth in Latin America—as well as Dallas and Chicago, both of which are major distribution hubs.

PPG Opens Regional Headquarters Building in Cranberry

by John Jordan GlobeSt.com
PPG Industries opened its regional headquarters for its architectural coatings business in the US, Canada and Puerto Rico here on Thursday.

The 118,000-square-foot building will accommodate approximately 550 employees in various management, marketing, information technology, customer support and related service and administration positions, the company states. Nearly 400 employees currently work at the site and PPG anticipates the facility will be close to full capacity by the end of 2015 as it continues to consolidate operations from multiple sites.

The grand opening event was attended by Pennsylvania Gov. Tom Corbett, PPG leadership, along with more than 200 PPG employees.

“As PPG continues to expand its architectural coatings business, establishing a regional headquarters is an important step in aligning our business to meet our customers’ growing needs,” says Charles E. Bunch, PPG chairman and CEO. “The official opening of this facility further strengthens our presence in the state and in the Pittsburgh area, which has been home to our global headquarters for more than 130 years.”

The facility features an open floor plan with collaborative workspaces, an amphitheater for large-scale employee meetings and presentations, a product showcase store, training facilities and areas to pilot retail displays.

Gebroe-Hammer Sells Four PA MF Transactions Worth $23.8M

by Steve Lubetkin, GlobeSt.com
Gebroe-Hammer Associates has completed four separate multi-family property sales in Philadelphia, Chester, and Wilkes-Barre, PA, totaling 486 units that sold for nearly $23.8 million.

The latest transactions cap off Gebroe-Hammer’s active investment brokerage activities throughout the Philadelphia/South Jersey multi-family market during the past 18 months. The firm’s market specialists have completed more than 22 sales with an aggregate value of almost $91 million involving more than 1,829 units throughout the Delaware Valley region.

In the largest of the recent sales, Gebroe-Hammer’s managing directors Joseph Brecher and David Oropeza exclusively represented the seller and identified the buyer of Sherman Hills, a garden-apartment complex in Wilkes-Barre. The 344 units were sold for $15.7 million as part of a Housing Assistance Payment (HAP)/Housing Urban Development (HUD) contract.

Constructed on 22.6 acres in 1979, Sherman Hills consists of eight two-story garden-style buildings and an eight-story high-rise building. There also is a three-unit, fully occupied commercial building anchored by Dollar Store on site.

“Sherman Hills is located near employment centers, the First Union Arena, I-81 and Route 309,” says Brecher. “Grocery stores, banks and elementary schools are all within a convenient walking distance, and Kings College and Wilkes University are within a three-mile radius. The location, along with the complex’s amenities, rendered this investment opportunity quite unique.”

Additional transactions included:

Fairfield Apartments, located at 7900-7922 Fairfield St. in Philadelphia, sold for $3.525 million in a transaction arranged by Brecher and Eli Rosen, senior vice president. The 64-unit, six-building low-rise complex is located in the northeastern part of the city, just off of Route 1 (East Roosevelt Boulevard) and Rhawn Street. In addition to on-site parking, there are laundry facilities on the premises.

Arborwood Duplexes in the Germantown/Mt. Airy section of Philadelphia sold for $2.375 million. Rosen represented the seller and identified the buyer of the 21-duplex community featuring 42 one-bedroom units, which include a garage and storage area. The Northwest Philadelphia property is off of Washington Lane, a major north/south artery in this area of the city.

Liberty Walk Apartments, a 36-unit property, sold for $2.175 million. Located at 500 E. 24th Street in Chester’s Sunnyside section, Liberty Walk is within minutes of Widener University and Swarthmore College, with access to both public transportation and greater Philadelphia’s main arterial highways. The four detached two-story buildings, consisting of eight one-bedroom and 28 two-bedroom units with semi-private entrances, recently underwent extensive interior and exterior renovations.

Other transactions include arranging the trades of Victoria Gardens, a 92-unit complex in Bristol Township for $4.45 million; the 36-unit Rose Court in Northwest Philadelphia’s West Mt. Airy section; 104 units sold for $4.3 million at Lindley Towers, in the Logan section of North Philadelphia; and Edgely Estates, a $10.35 million acquisition located in Levittown, Bucks County, PA.

"In addition to a historically strong renter pool, particularly in greater Philadelphia, eastern Pennsylvania continues to see an influx of recent college graduates from area universities who have decided to set down roots and become part of the workforce," says Brecher. "This trend, along with attractive pricing for multi-family product, has contributed toward the market’s growth, which is now reaching pre-recession levels."

Friday, September 26, 2014

Barry Sternlicht on U.S. Economy (Video)


Real Estate Fine Print

by Natalie Kostelni, Staff writer for the Philadelphia Business Journal

10,150 s.f.
Learnquest signed a five-year lease on 10,150 square feet at Two Bala Plaza in Bala Cynwyd.

Real Property Capital originated a $27 million first mortgage for Reiser Land Development to buy a parcel at Atwater Corporate Center in Malvern that will eventually be a residential development. The three-year, interest-only loan will have its interest and operating reserves funded from the sale of improved residential building lots. Reiser buys residential building lots and sells them to home builders.

A joint venture between Advance Realty of Bridgewater, N.J., and the Davis Cos. of Boston bought 2750 Morris Road in Worcester for $18.3 million from Equus Capital Partners of Philadelphia. The 675,000-square-foot property consists of 570,000 square feet of tech assembly space and 105,000 square feet of office space. More than 400,000 square feet is vacant.

Scout Ltd. bought the eight-story, 338,000-square-foot Edward W. Bok Technical High School at 1901 S. 9th St. in South Philadelphia and has plans to convert it into a mixed-use complex that caters to the creative community. The School District of Philadelphia, which closed Bok last year, was the seller.

19,691 s.f.
Connect America, a medical alert company, expanded by 19,691 square feet at the GSB building at One Belmont Ave. in Bala Cynwyd. The company already leases 20,000 square feet on the 12th floor of the building. Connect America is headquartered in Broomall.
Full story: http://tinyurl.com/q52so8t

Thursday, September 25, 2014

Can property crowdfunding take off in Asia? (Video)


Vornado Sells Bordentown Shopping Center for $9.8M

Vornado Realty Trust sold the Bordentown Shopping Center at 622 US Hwy 206 in Bordentown, NJ to Saker ShopRites, Inc. for $9.75 million, or about $55 per square foot.

The 178,678-square-foot community center was built in 1957 on 34.7 acres in the South Burlington County submarket of Philadelpia. Anchored by a 57,472-square-foot ShopRite, the center was 63 percent vacant at the time of sale.


Hidden Forest Apts Sell for $21.3M

TGM Associates LP sold the Hidden Forest Apartments at 602 Hidden Forest Ct. in Fairless Hills, PA to Castellan Real Estate Partners for $21.3 million, which equates to more than $89,000 per unit.

The 132,780-square-foot multifamily complex consists of 10 garden-style walk-up buildings and a total of 238 units. The unit mix includes 188 one-bedroom, 48 two-bedroom, and two townhomes.

Gwynedd Valley Tech Ctr Sold

A joint venture between Advance Realty and The Davis Companies acquired the Gwynedd Valley Technology Center at 2750 Morris Rd. in Lansdale, PA from Equus Capital Partners.

The single-story, 675,000-square-foot industrial building was constructed in 1927 in the East Montgomery County Industrial submarket of Philadelphia. The high-tech assembly and warehouse facility features 15 loading docks and two drive-ins, 23-foot clear heights, six-inch floors, and 70,000 square feet of office build-out. Occupancy was 39 percent at time of sale.

Monday, September 22, 2014

King of Prussia Business Park re-zoned for multi-use

The Upper Merion Township Board of Supervisors on Thursday rezoned the King of Prussia Business Park to allow residential construction.
The new zoning district, north of the King of Prussia Mall and east of Valley Forge, will allow multiuse properties such as high-rise condominiums with stores or offices at street level. It also encourages environmentally sustainable buildings and parks as well as pedestrian-friendly corridors linking to the planned extension of the Norristown High Speed Line.

The nonprofit King of Prussia Business District has lobbied for the change for several years, arguing that an update "from the traditional 1960s suburban office park to a dynamic, mixed-use district will trigger significant investment," executive director Eric T. Goldstein said.

The district hopes some of the 20,000 people who work in the business park will choose to live there as well, reducing commuter traffic and boosting weekend business for stores and restaurants in the area.

Township supervisors unanimously approved the rezoning


Hill Intl. moving HQ from S. Jersey to Philly

by The Philadelphia Inquirer

Hill International is moving its headquarters from Marlton to Center City Philadelphia, Gov. Corbett announced today.

Pennsylvania is offering Hill, a construction management and consulting firm, $1.7 million in incentives through three programs to relocate its headquarters and bring 222 jobs to Center City..

The company, with 4,400 employees worldwide already has a Philadelphia office.

The governor's office said the company has leased nearly 60,000 square feet at One Commerce Square, at 2005 Market St., and will spend about $8 million to turn the space into its headquarters.

Hill has accepted the funding proposal, but must still apply for each program to receive the incentives, Corbett's office said.

David L. Richter, Hill's president and chief operating officer, said the company was "excited" to be moving across the river.

"The ability to consolidate our two local offices plus the many benefits of being located in the Center City business district makes this a great move for our company," Hill said in a statement issued by Corbett's officer.


FARO Consolidating Two Pennsylvania Facilities

FARO Technologies Inc. entered into a lease with 290 National Road LP its new facility at that address in Exton, Pennsylvania.

The company plans to relocate from its Kennett Square, Pennsylvania facility at 222 Gale Lane to the new location in a staged process over the next several months.

The lease amends FARO’s for a portion of the Exton building of 68,240 square feet to now lease the entire rentable space of 90,364 square feet. It also extends the initial term of the lease by two years to Aug. 1, 2026.

The company has the option to renew the lease for three additional terms of five years each.

Friday, September 19, 2014

King of Prussia office building comes up for sale; could trade for $200 per square foot

by Natalie Kostelni, Philadelphia Business Journal
A local real estate fund is looking to sell 150 S. Warner Road in King of Prussia, Pa., two years after it acquired it.
The four-story building totals 155,000 square feet and for years, had gone under the name Walnut Hill Plaza. It is 97 percent leased up and expected to trade in excess $200 per square foot.
A fund comprised of Miller Investment Management and Hayden Real Estate, both locally owned firms, bought 150 S. Warner Road in 2012 for $11 million through an auction process. It had been given back to the lender by its previous owner, Thomas Properties Group, and was 50 percent vacant at the time.
The MIM-Hayden fund plowed $2 million into the building putting in a new lobby, bathrooms and common areas, and upgrading the HVAC and elevator systems.
With the renovations complete and the building leased up, the timing is right to sell the building, said Tony Hayden Jr. of Hayden Real Estate. The King of Prussia area is also seeing a lot of momentum as development activity, from residential to retail to build-to-suits, has been ramping up.
“This is something we’d love to hold forever but our fund has a shelf life,” he said.
There’s also not a lot of competition on the market. One of the last large office buildings to trade was 1000 Continental Drive, a 202,425-square-foot building that sold in February for $63 million.

Full story: http://tinyurl.com/kpzf444

Sale pending for Finnigan's Wake

by Michael Klein, Philadelphia Inquirer
Something is up at Finnigan's Wake, the sprawling Irish pub that for 17 years has been a gateway to Northern Liberties at Third and Spring Garden Streets.

It's been open only infrequently on recent weekends and for private parties and is being prepped for a sale, according to people close to the restaurant.

It had been listed for $3.9 million.

Settlement is expected within six weeks, and the prospective buyer - an investment group - has not disclosed to my sources what the future is.

Finnigan's - whose colorful Spring Garden Street facade resembles a block of shops - has long been a political hangout, given that the managing partner is Mike Driscoll, a candidate for state representative.

Update: Co-owner Chuck Volz confirmed that Finnigan's is closed and under agreement of sale.


Advance Realty, Davis Companies Acquire MontCo, PA High Tech Facility

A joint-venture partnership of Advance Realty and The Davis Companies has acquired 2750 Morris Road, a 675,000-square-foot high-tech assembly and warehouse facility located in Lansdale, Montgomery County, PA.

Located near the northeast extension of the Pennsylvania Turnpike, 2750 Morris Road has convenient access to key arteries, including Routes 202, 309 and 63, and has direct frontage as well as visibility from the Pennsylvania Turnpike.

“2750 Morris Road offers significant in-place infrastructure at below replacement cost rents,” says Peter Cocoziello, president and CEO of Advance Realty. “Both Advance Realty and The Davis Companies have deep experience adding value to properties so they can realize their significant underlying potential, and we look forward to seeing this asset fully-leased to companies looking to take advantage of the property’s inherent value.”

Aerial view of 2750 Morris Rd., Lansdale, PA
 “In addition to a central location in Montgomery County, which boasts one of the state’s most robust economic corridors, 2750 Morris Road represents an ideal venue for companies that are looking for highly improved industrial space at competitive rents to accommodate their growth,” says Richard McCready, president of The Davis Companies.

Originally an electronics plant for the Ford Motor Co., 2750 Morris Road has approximately 570,000 square feet of climate-controlled technology, assembly, warehouse, and production space and 105,000 square feet of two-story office space.

The property has dual substation power feeds, systems for delivery of chilled water and compressed air, and five Diesel generators to provide continuous power backup without interruption.

The temperature- and humidity-controlled environment makes the facility suitable for companies seeking versatile, high-quality warehouse, manufacturing, or assembly space.

The property currently has 350,156 square feet of warehouse/manufacturing space and 70,442 square feet of office space available for lease.  Campus tenants include Vygon Corporation, Metso Corporation and Fox Bindery.

Entrance to 2750 Morris Rd., Lansdale, PA
The new ownership will reposition and re-tenant the property with a comprehensive capital improvement program that includes roofing, flooring and common area upgrades.

Christopher M. Bellapianta represented the JV partnership in the transaction. Bellapianta serves as director of finance and acquisitions for Advance Realty, a leading northeastern US owner and developer of commercial, multi-family, R&D, retail, mixed-use, and flex-space properties.

Managing director Greg Nalbandian of NorthMarq Capital arranged debt financing through Wells Fargo for this acquisition.

Thursday, September 18, 2014

Pilgrim’s Pride Corp Sells Multiple Properties for $4.2M

Pilgrim’s Pride Corporation sold two industrial buildings and a parking lot across Pennsylvania to Bergeys Realty Co. for $4.25 million.

The deal totals 181,488 square feet and includes industrial buildings 471 Harleysville Pike in Franconia, 567 Allentown Rd. in Telford, and a parking lot at 455 Harleysville Pike in Harleysville, PA.

Cloverly Park Apts Sold for $6.4M

Castellan Real Estate Partners and GRJ purchased the Cloverly Park Apartments at 437-445 W. School House Ln. in Philadelphia, PA from Post Brothers Apartments, Inc. for $6.38 million, or about $123,000 per unit. 

The 26,150-square-foot multifamily building was constructed in 1928 and renovated in 2009. The building is located in Germantown submarket. 


Advalurem Group Joint Venture Acquires Yardley PA Office

Advalurem Group has acquired an ownership interest in 1000 Floral Vale, a class A, LEED Gold-certified office building located in Yardley, PA.

1000 Floral Vale is the newest and most sophisticated building in its submarket.  Built in November 2009, the 89,000 square-foot office building meets institutional, energy-efficient and environmentally safe design standards, earning it a LEED Gold certification, among other accolades.

The property is located in Lower Makefield Township, a high-income demographic area of northern Philadelphia, proximate to many employment demand drivers, transportation networks and commercial retail nodes.

“This is an area that grabbed our attention,” says Gabriel Pozo, principal and founder of Advalurem Group. “Lower Makefield Township is one of Philadelphia’s more prominent submarkets. It is ranked the #1 wealthiest area in Pennsylvania and is consistently featured in CNN/Money’s top rankings of ‘Best Places to Live’ in the U.S.”

The property is currently 80% leased; primarily to two ‘investment grade’ tenants on long-term leases with extension options.  All tenants entered into lease agreements post-recession and represent first generation space at market terms.  The business plan calls for the absorption of available space and moderate exterior capital improvements to enhance the user experience and marketability of the Property.

Advalurem Group’s local partner negotiated an attractive going-in yield and $214 per square foot due to the seller’s need for liquidity.  The purchase price represents a significant discount to replacement cost as valuations were much higher during the last real estate cycle.  The re-setting of basis from the developer’s building costs allows Advalurem Group and its local partner, Pembroke Hobson, an opportunity to competitively price the remaining space, leading to stable cash flow and upside pricing potential.

Saturday, September 13, 2014

Lumber Liquidators Leases Space on Columbus Blvd

Lumber Liquidators signed a 10-year lease valued at more than $1.8 million for the 6,235 sq. ft. at 1530 Columbus Boulevard in South Philadelphia. It is projected to open in the fourth quarter of 2014. Based in Toano, Virginia, Lumber Liquidators is North America’s largest specialty retailer of hardwood flooring, operating over 345 stores in 46 states and Canada. They offer a wide selection of prefinished and unfinished wood types, with an emphasis on sustainable practices.  

Select Top Five Philadelphia Industrial Leases Signed in Q2 2014

The select top industrial lease signed during the second quarter of 2014 in the Philadelphia market was at 40 E. Main St. in the Harrisburg Area West Industrial submarket. Exeter Property Group represented the landlord in a 424,520-square-foot lease there.

KENCO leased 330,000 square feet at 6 Doughten Rd. in the Harrisburg Area West Industrial submarket.

Allen Distribution leased 180,333 square feet at 34 E. Main St. in the Harrisburg Area West Industrial submarket.

FedEx Ground renewed its 151,037-square-foot lease at 1360 Welsh Rd. in the East Montgomery County Industrial submarket.

In the first quarter, Coca-Cola Refreshments renewed its 197,500-square-foot lease at 7533 Industrial Park Way in the Lehigh Valley Industrial submarket.

This trend is compared to the U.S. National Industrial select largest lease signings occurring in Q2 2014, which include the 1.7 million-square-foot lease signed by Michelin at RidgePort Logistics Center in the Chicago market, RosKam Baking Co.'s lease of 885,781 square feet in the Western Michigan market, United Furniture Industries' 800,000-square-foot lease in the Greensboro / Winston-Salem market, CEVA Logistics' 648,758-square-foot renewal in the Memphis market, and the 620,000-square-foot lease by 99 Cents Only in the Los Angeles market. In the first quarter, Exel leased 947,715 square feet in the Charlotte market.

Thursday, September 11, 2014

Liberty Property Trust Lists 3Q Starts and Leasing Activity

by Steve Lubetkin, GlobeSt.com

Liberty Property Trust has begun development of eight industrial projects totaling 2.2 million square feet so far in the third quarter. Liberty says the starts represent a projected total investment of $150 million. Liberty also said it completed two large leases totaling 1.2 million square feet in industrial properties in Pennsylvania.

Third Quarter Industrial Development Starts

11835 Newgate Boulevard, Hagerstown, MD, a 615,600 square foot distribution facility, 100% pre-leased.

140 Caliber Ridge, Greer, SC, a 156,000 square foot distribution building for Bosch Security Systems, which will lease the entire building.

120 Caliber Ridge, Greer, SC. Pilot Freight had signed a lease for 41,600 square feet of this 156,000 square foot multi-tenant industrial building.

10020 South Reinhart Drive, Oak Creek, WI, a 171,114 square foot multi-tenant industrial building.

333 Howard Street, Des Plaines, IL, a 235,781 square foot distribution building.

Miami International Tradeport Building B, Medley, FL, a 147,840 square foot multi-tenant industrial building.

11000 Holly Lane, Dayton, MN, a 247,000 square foot multi-tenant industrial building.

300 North Mitchell Road, North Aurora, IL, a 429,756 square foot distribution building. This project is being developed by a joint venture in which Liberty holds a 25 percent interest.

Online retailer zulily has signed a long-term lease for 10 Emery Street, an 800,000 square foot distribution building in Bethlehem, PA, Construction began during the second quarter. The lease is expected to commence in the first quarter of 2015.
Liberty has leased the remaining 421,200 square feet of space at 40 Logistics Drive, Carlisle PA, to fine chocolate manufacturer, Lindt and Sprungli (USA). The lease is expected to start in the first quarter of 2015.

Nimble Storage Signs 48,000-SF Lease at Newcastle South

John Jordan, GlobeSt.com
Nimble Storage, a Silicon-Valley-based flash storage solutions company, has signed a lease for the majority of the Newcastle South office building, located in the Imperial Center campus here.

The firm inked a 47,986-square-foot lease with building ownership Grubb Properties of Charlotte and real estate fund manager Rubenstein Partners of Philadelphia.

“Our new East Coast home offers the ‘wow factor’ that will help us tap the region’s rich pool of high-tech talent as we expand our East Coast operations,” says Suresh Vasudevan, CEO of San Jose, CA-based Nimble Storage, which opened its first East Coast office in Research Triangle Park in 2013.

The Nimble Storage transaction comes just six months after joint venture partners Grubb and Rubenstein sold Newcastle North, a companion lab and office building, to Virginia real estate investment firm Capital Square Holdings. Grubb and Rubestein leased Newcastle North in 2013 to Reichhold Industries as its world headquarters and technology center. Together, the two buildings—the former GlaxoSmithKline headquarters acquired by the joint venture in 2012—represented the largest contiguous single-story commercial space available in the I-40 corridor of the Raleigh-Durham market.

The final 38,965 square feet of Newcastle South, a doughnut-shaped building surrounding a newly landscaped park-like courtyard, is available for lease.

“We are excited to reposition another headquarters-quality building for another premier tenant in the vibrant Raleigh-Durham market,” says Jonathan Nance, senior vice president of Grubb Properties.

“Nimble Storage represents the kind of high-caliber technology company locating and expanding in this market, one of the nation’s leading research and development hubs. This major lease at Newcastle South is the latest validation of our value-added investment strategy in North Carolina,” adds Dan Doyon, director of acquisitions for Rubenstein Partners.

Investment Will Spur La Colombe’s National Expansion

John Jordan, GlobeSt.com
Locally-based coffee retailer La Colombe has secured $28.5 million worth of private investment, which will help finance plans to open approximately 100 new cafes across the United States over the next five years.

Todd Carmichael, who founded La Colombe in 1993 with friend and business partner JP Iberti, says the deal was signed Aug. 31 following months of discussions with investors, according to the Daily Coffee News. “Thank God I never have to do that again,” Carmichael says.

La Colombe is currently putting the finishing touches on its coffee headquarters, lab, bakery and distillery in the Fishtown section of Philadelphia. The project could be finished by late next week.

Carmichael says seven new leases for retail locations have already been signed, most of which are in Philadelphia, Washington, DC, Chicago and New York where it already has a presence. However, he notes that his firm is also looking at opening locations in Boston, Baltimore, and parts of the West Coast.

“We’ve found some great locations focused in our area but we’re always shopping,” Carmichael says. “I really respect what is going on in California. Having the ability to be involved in New York, Chicago and L.A.—I’d love to be in those communities.”

Wednesday, September 10, 2014

Five Below building new 1 million-square-foot distribution center

by Natalie Kostelni, Writer for Philadelphia Business Journal

Five Below broke ground today on a 1 million-square-foot distribution center at 5 Gateway Blvd. in Oldmans, N.J.

The structure is being constructed by NFI, a Cherry Hill, N.J., freight and logistics company. Five Below will initially occupy 750,000 square feet and have room to grow. The property was designed by Bernardon Haber Halloway.

The Salem County building will replace a 421,000-square-foot building the retailer uses in New Castle, Del., as a distribution center. The New Jersey warehouse will be completed next summer and up-and-running during the second half of next year.
Five Below is based in Philadelphia and has more than 350 stores throughout 20 states. Last month, it opened a 7,500-square-foot store in Brooklyn, N.Y.
Full story: http://tinyurl.com/l7em4pd

$1 million parking spot (Video)


Highland Plaza Office Ctr Sold for $4M

US Bank N.A. sold the Highland Plaza Office Center at 95 Highland Ave. in Bethlehem, PA to Equity Office Properties - New York for $4 million, or about $54 per square foot.

The three-story, 74,694-square-foot office building delivered in 1985 on 4.3 acres in Northampton County.

Posh Props Pays $3M for Bethlehem Office

Joseph T. Posh Properties acquired the office building at 3864 Adler Pl. in Bethlehem, PA from the Dietrick Group LLC, a local family-owned business for $3 million, or approximately $108 per square foot.

The 27,822-square-foot property was delivered in 1987 and remodeled in 2003. It sits on 2.3 acres in Northhampton County.

Tuesday, September 9, 2014

PREIT Adds New Anchors, Tenants, to Portfolio

by Steve Lubetkin, GlobeSt.com

Pennsylvania Real Estate Investment Trust is selectively upgrading its properties with new anchors and other sought after tenants.  The Company has executed new leases with retailers that will enhance the quality of its assets while driving sales and valuation.

"We have made tremendous progress in our efforts to improve portfolio quality,” says PREIT CEO Joseph Coradino. In addition to disposing of certain non-core malls, we are improving the mix of tenants at our properties.  As of the end of August, PREIT had executed new leases with tenants for approximately 600,000 square feet of space."

Among the new anchor leases within the PREIT portfolio are the addition of Century 21 at The Gallery in Philadelphia; Dick's Sporting Goods at Valley View and Francis Scott Key Malls; and Burlington Coat Factory at North Hanover Mall.

Property-wide remerchandising efforts are transforming three key properties – Viewmont Mall in Scranton, PA; Washington Crown Center in Washington, PA; and Moorestown Mall in Moorestown, NJ.

At Viewmont Mall, new prototype stores for The Limited, Victoria's Secret, Bath & Body Works and  have been introduced, along with the region's only Forever 21, a new ULTA Cosmetics and Buffalo Wild Wings.

At Washington Crown Center, in the Marcellus Shale region of Pennsylvania, PREIT has introduced category-dominant merchants including Marshalls, Ross Dress for Less, Jo-Ann Fabric and Crafts, Shoe Department's Encore, and has also executed leases with ULTA Cosmetics and Kay Jewelers.

At Moorestown Mall, in the suburbs of Philadelphia, PREIT is redeveloping the facility to differentiate it from the company's nearby trophy asset, Cherry Hill Mall.  After successfully garnering enough votes for a referendum to overturn an alcohol ban that had been in place for more than 100 years, PREIT successfully added fine dining to the mall.  Within the last year, two James Beard Award-winning chefs have opened locations at the property – Osteria by Marc Vetri and Distrito by Jose Garces – along with Firebirds Wood Fired Grill and a coming soon Harvest Seasonal Grill and Wine Bar.  These dining establishments accompany a Regal Premium Experience Theater that opened in December 2013.  A popular beauty salon, Rizzieri Salon & Spa, will open this fall and be the catalyst for the next phase of this project, Boutique Row, a segment of high-end, luxury retailers geared toward the fashion-forward, affluent shopper.  Three tenants are currently signed for this collection – Erdon, Zeyzani and Orangetheory Fitness.

Kairos Attracting Office Tenants to ‘Over-Amenitized’ Conshohocken Property

by Steve Lubetkin, GlobeSt.com
Top quality office tenants are attracted by building with world class amenities in close proximity to transportation hubs, says Stephen J. Gleason, president of Kairos Real Estate Partners.

Those two factors probably played a key role in helping Kairos success lure medical technology company Genomind from its Chalfont, PA, headquarters to occupy 8,700 square feet in Kairos’ 180,000 square foot Triad Building at 2200 Renaissance Blvd. in Conshohocken.

“We made a conscious decision to over-amenitize the property,” says Gleason. “We built a brand new fitness center with all new equipment.”

Kairos is bringing in outside instructors to run fitness classes at the gym, which includes men’s and women’s locker rooms, Gleason says.

Kairos also created a conference center at the property and a café that remains open later in the evening.

The building is located in the Renaissance Corporate Park close to the Gulph Mills/King of Prussia marketplace about 15 miles west of Philadelphia.

Triad Building, 2200 Renaissance Blvd., Conshohocken, PA
Rental rates are starting to rise for the first time since the recession, and concession packages “are definitely becoming more landlord favorable,” says Gleason. “Tenant improvement allowances are shrinking, free rent is either disappearing entirely or becoming less prevalent, and that also applies to South Jersey as well as the western suburbs on the Philadelphia side of the river.”

Genomind, which focuses on research in psychiatry and neurology, was attracted to the growing biotechnology corridor developing in the King of Prussia marketplace. The firm is growing rapidly and wanted to reposition its corporate headquarters.

“That’s part of what attracted them the Conshohocken area and to Triad,” Gleason tells GlobeSt.com exclusively. “It provides great access to Center City Philadelphia, the western suburbs, the airport, and the Pennsylvania Turnpike, so it’s really at the crossroads of transportation. In addition to that, Conshocken has a lot of amenities, including hotels, retail and restaurants.

Rendering of Triad lobby atrium.
In addition to Genomind, Kairos also signed an e-commerce startup, which leased 5,200 square feet, and Spring Mill Partners, which moved into 3,000 square feet from another Conshohocken building. About 65% of the building is still available for lease, says Gleason.

Tenants are using the space in the wi-fi equipped building with team collaboration in mind. Few of the tenants are installing private offices and cubicles, opting instead for configurations that allow teams to work more closely with each other.

“We’re seeing a greater proportion of space being used for what’s called ‘benching’ and other newer configurations that are much more collaborative than having a sea of cubicles,” says Gleason. Benching allows employees to work at high tables along side each other.

The building features a 55 foot high atrium lobby with an accenting centered skylight, finished tenant ceiling heights and scenic views.

The Triad building also has private executive parking underneath the building for 68 vehicles.

Monday, September 8, 2014

SEI Investments finishes new building on its Oaks campus

by Natalie Kostelni, Reporter- Philadelphia Business Journal

SEI Investments Co. has completed construction its tenth building on its Oaks, Pa., campus off Route 422.
The building totals 36,000 square feet and will accommodate 200 employees. How much it cost to build wasn’t disclosed.
The mutual-fund and asset-management company broke ground on the project last year. It had originally sought to construct the building in 2008 but decided to hold off on moving forward on it because of the downturn in the economy.
The new building will bring the total amount of space that SEI has on its campus to 560,000 square feet. It will also max out what can be built on the campus.

Destination Maternity sells Northern Liberties headquarters for $14M

Natalie Kostelni Reporter- Philadelphia Business Journal

A real estate company that prefers to work quietly behind the scenes has bought Destination Maternity Corp.’s headquarters in the Northern Liberties neighborhood in Philadelphia for roughly $14 million.
Alliance Partners HSP of Bryn Mawr, Pa., closed Friday on the 220,000-square-foot building at 5th and Spring Garden streets.
While Alliance Partners has initially focused on the suburbs, the company is shifting its strategy and will buy urban properties in Philadelphia. The Destination Maternity headquarters and warehouse is its first buy in the city.

The real estate company likes to find problem, in-fill properties and convert them into what Previdi calls Class A-minus office space. It’s space that looks really good without a lot of glitz and at reasonable rents, Previdi said.
The opportunity to buy Destination Maternity’s property came about when the retailer decided to relocate into a new 74,000-square-foot building it leased in Moorestown, N.J. It will move into the building, which is under construction, sometime next year.
Destination Maternity’s building on Spring Garden is a great real estate opportunity, Previdi said.
“What did it for us is the aerial,” he said about getting a bird’s eye view of the property. “It kind of hits you.”

The property is on the outer ring of Center City in a neighborhood that continues to receive investment in residential and retail projects. It’s a large site that is also within walking distance of the center of downtown.

“We’re not clear on what to do with it but we know what ever we do there value will be created,” Previdi said. But that gives Alliance Partners some freedom since its partners self-fund all of its acquisitions and redevelopment work.
The firm will initially talk to prospective tenants to see if the space might work for them. It will also explore whether residential or retail would work there or even a same-day delivery warehouse for a company.
Peter Kelsen, an attorney at Blank Rome representing Alliance Partners, said his client is evaluating opportunities for possibly rezoning the property that would open it up to other uses. It is now zoned industrial, which allows the existing use of warehouse and distribution space. Rezoning it could let the developer consider turning it into residential, commercial, office or even live-work space.
“For us, it is gold,” Previdi said. “For someone else, it’s copper.”
Full story: http://tinyurl.com/oez7kh6

Brown Brothers moves offices to One Logan Square

by Natalie Kosteni staff writer at the Philadelphia Business Journal

Brown Brothers Harriman & Co. has leased space in One Logan Square in Center City for its new offices.
The investment firm took 20,000 square feet and will officially move into the space next Monday.
The company sold its building at 1529 Walnut St. to Pearl Properties, a Philadelphia real estate firm. Brown Brothers had occupied the Walnut Street space for 90 years.

full story: http://tinyurl.com/mj8wg9x

Friday, September 5, 2014

Select Top Five Philadelphia Office Leases Signed in Q2 2014

The select top office lease signed during the second quarter of 2014 in the Philadelphia market was at 2005 Market St. in the Market Street West submarket. Pond Lehocky Stern Giordano LLP leased 51,821 square feet there. Brandywine Realty Trust represented the landlord.

A 50,152-square-foot lease was signed at 1500 Spring Garden St. in the Market Street West submarket.

Spark Therapeutics signed a 28,075-square-foot lease at 3737 Market St. in the West Philadelphia submarket.

Medecision leased 25,169 square feet at 550 E. Swedesford Rd. in the King of Prussia / Wayne submarket.

In the first quarter, PRA International leased 106,835 square feet at 731 Arbor Way in the Plymouth Mtg / Blue Bell submarket.

This trend is compared to the U.S. National Office select largest new lease signings occurring in Q2 2014, which include the 713,727-square-foot deal signed by Salesforce.com in the San Francisco market; AbbVie's 558,859-square-foot office lease in Chicago; Sandoz, Inc. taking 154,101 square feet in the Northern New Jersey market; Boeing's lease of 144,073 square feet in the Seattle/Puget Sound market; and Time Warner, Inc.'s first-quarter deal totaling 943,438 square feet in New York City.

Thursday, September 4, 2014

Carl Dranoff New Development will be Condos Not Apartments

by Alan J. Heavens, Inquirer Real Estate Writer
Armed with evidence of increasing demand for new and larger high-rise condominiums in Center City, Carl Dranoff has shifted gears on plans for his One Riverside development at 25th and Locust Streets.

Instead of 147 luxury rental apartments, the 22-story, $100 million-plus building will have 88 condos, including two penthouses, that he said will be priced at $700,000 to $4 million.

Groundbreaking for One Riverside is scheduled early next year, "depending on permit issuance, which is hard to predict," said Marianne Harris, Dranoff Properties' sales and marketing director.

If that schedule holds, the first buyers will move in by late summer 2016, she said.

One Riverside will be the first from-the-ground-up high-rise condo building started since the financial crisis derailed the 2004-08 construction boom, which produced nearly 2,500 new units, according to Dranoff's calculations.

Tom Scannapieco, developer of 1701 Rittenhouse Square Street, is set to break ground in the spring on a $150 million, 26-story, 40-unit condo tower at Fifth and Walnut Streets scheduled to open in 2017. Pre-sales of that building are in the multimillions of dollars, he said.

Scannapieco was able to sell out 1701 Rittenhouse, albeit more slowly than he anticipated. But many other high-rises, including 10 Rittenhouse - which Dranoff was brought in by lender iStar Financial to finish and sell - navigated troubled waters until the economy began to improve.

In recent years, developers, including Dranoff, had shifted to building high- and mid-rise luxury apartment buildings to take advantage of demographic changes in the real estate market. Apartment development continues in Center City, spurred by demand and continued reluctance by lenders to finance major for-sale projects.

Dranoff announced the change Wednesday at an invitation-only dinner for real estate agents at Sbraga in Symphony House at Broad and Pine Streets, the developer's first ground-up luxury condo high-rise.

Yet Dranoff said his experience at 10 Rittenhouse, where condo prices topped an unprecedented $1,000-plus per square foot as the market was just starting to recover, convinced him that taking One Riverside condo would meet a demand.

"There is a scarcity of this kind of product on the market," he said. "At 10 Rittenhouse, we continue disappointing buyers looking for new and larger condominiums."

Economist Kevin Gillen said market indicators suggest that "now looks like a great time for multifamily development to shift from rentals to owner-occupied condos."

Rents had experienced exceptional growth since the housing downturn and subsequent recession, Gillen said, as house and condo prices fell.

"Now that housing is recovering and rents have peaked out, the cost of owning is practically equivalent to renting, and also offers the additional benefits of home equity and asset appreciation," he said.

Many households have shifted from owning to renting, or have just continued to rent, since third-quarter 2007, when the housing bubble burst in the eight-county Philadelphia region, and "current fundamentals indicate that the pendulum has begun to swing the other way," Gillen said.

Demand for larger condos, a trend that started in Manhattan, spurred Dranoff to limit One Riverside to seven one-bedroom units, which he described as either starter homes or "nanny suites" for providers of child care to families in larger units.

The larger units (two-, three-, and four-bedroom) have more square footage to accommodate families with children or visiting grandchildren, he said.

The trend was already noteworthy in the Philadelphia market, though. For example, Weichert Realtors agent Susan Yannessa said today's buyers at Beaver Hill condominiums in Jenkintown included families with two or three children that prefer the units to single-family homes.

The 16 four-bedroom, 41/2-bath units planned for One Riverside range from 1,964 to 2,497 square feet - about the size of typical detached house in both city and suburbs. Dranoff says he expects that his buyers will be a mix of city dwellers and suburbanites.

One Riverside also will have 110 underground parking spaces and a private park to complement adjacent Schuylkill River Park.

"I've learned that people, especially those from the suburbs, want open space," said Dranoff, adding that all units would have terraces and balconies.
Full story: http://tinyurl.com/ldzdbvv

CBRE Global Investors Fund Acquires Retail Asset in Pennsylvania Area

 by Steve Lubetkin, GlobeSt.com
A fund advised by CBRE Global Investors has acquired a single-tenant grocery asset in King of Prussia, near Philadelphia.

Located at 1 Village Drive in King of Prussia, Penn., the trophy-quality grocery property has a 25-year ground lease with Wegmans for a 147,456 sq. ft. store. Constructed in 2012, the store is a prototypical design for the dominant grocer, which has 83 stores across the Northeast and is one of the largest private companies in the United States.

King of Prussia is a premier suburban retail submarket in the Philadelphia MSA and one of the most trafficked retail destinations in the Northeast. Immediately adjacent to the property is a high-volume fortress mall. Located at the confluence of I-76 (PA Turnpike), Route 202 and Route 422, Wegmans has excellent accessibility to the affluent suburban townships in the Philadelphia MSA.

The Wegmans parcel is the initial phase of The Village at Valley Forge, a 101.55-acre mixed-use development that will include lifestyle retail, apartments, and office/medical office properties as well as a children’s hospital. Once the high-profile development is complete, Wegmans will be the anchor.

This is the fund’s second retail acquisition in the Northeast, having acquired Porter Square Galleria, an urban retail center in an irreplaceable location on a subway line in Cambridge, Mass., earlier this year.

Wednesday, September 3, 2014

Hillside Manor Apts Sold for $10.2M

PT Real Estate Capital has sold the Hillside Manor Apartments at 1120 Ward St. in Chester, PA to LP Developers for $10.15 million, or about $47,000 per unit.

The 216-unit multifamily community is comprised of 54 quad-style buildings constructed in 1955 on eight acres in the Lower Delaware County submarket of Philadelphia. The two-bedroom apartments bring in average rents of $750 per month, and feature walk-in closets and renovated kitchens, as well as private yards and driveways for each unit.

The seller, specializing in distressed assets, acquired the property in May 2012 for $3.4 million in an REO sale. At the time the property was just 40 percent occupied.

The `Sexy Six' Commercial Real Estate Markets (Video)


Tuesday, September 2, 2014

Post Brothers Polishes Shoe Factory into LEED Silver MF Property

Post Brothers Apartments has completed a $42 million renovation and rehabilitation of the 106-year old Goldtex shoe factory, covering the original structure at 12th and Vine Streets in an energy-efficient envelope that gives it a modern, sleek appearance. The rebuild also positions the property for pending certification as the city’s first LEED Silver multifamily property with more than 100 units.

“We put an entirely new envelope on the building that made it look modern, but more importantly made it extremely energy efficient,” Michael Pestronk, Post Brothers founder and CEO tells GlobeSt.com exclusively. “We achieved rents there that are equivalent of those on Rittenhouse Square, by having a product that is much better than anything anyone else has to offer.” Rents average $2,500 a month, and apartments are about 800 square feet.

GoldTex Apartments, 12th and Vine Streets, Philadelphia, PA
The Goldtex factory opened in 1908, the same year Henry Ford produced his first Model T and the Chicago Cubs won their last World Series. Philadelphia City Hall – only a half-mile from the factory – was still the tallest building in the world.

One of the most-watched adaptive reuse projects in the city’s recent history, the Goldtex apartments are completely leased. The building, in an area known as the “Loft District,” features 163 class A units with gym, pool and community patio on the roof.

In some places, designers intentionally left exposed graffiti that had been spray painted during the building’s years of disuse, giving the building an urban edge. Hallway signage was designed by Steve Powers, a noted local muralist.

Rooftop amenities at the Goldtex in Philadelphia include gym, pool and community patio.
The units feature 14-foot ceilings, solid quartz counters, induction cooktops, thermostatic showers and sustainably sourced hardwood floors. The entire building and all its ultra-efficient electricity systems are 100 percent powered by renewable energy.

The property has breathtaking views of the Philadelphia skyline from its roof, and the building now stands out among surrounding high-rises in its own right. The new exterior envelope contains four types of glass and solid aluminum, coloring the structure in blues and greens. The façade design obscures the loft column grid visible on similarly rehabilitated buildings. All these elements reflect light differently, creating a scintillating visual effect and an unmistakable appearance.

Monday, September 1, 2014

Apartment bubble or under built? (Video)


Philadelphia Retail Deliveries, Construction and Inventory

During the second quarter 2014, eight retail buildings totaling 66,506 square feet were completed in the Philadelphia market. Over the past four quarters, a total of 1,197,460 square feet of retail space has been built in Philadelphia.

There was 203,783 square feet of retail space under construction at the end of the second quarter 2014.

Some of the notable 2014 deliveries include: 332 S Broad St, a 45,000-square-foot facility that delivered in first quarter 2014 and is now 100% occupied, and 1900 N 9th St, a 30,000-square-foot building that delivered in first quarter 2014 and is now 93% occupied.

Total retail inventory in the Philadelphia market area amounted to 498,222,528 square feet in 40,822 buildings and 2,549 centers as of the end of the second quarter 2014.

This trend is compared to U.S. National Retail deliveries and construction, which saw 522 buildings totaling 10.83 million square feet complete construction, with an additional 50 million square feet of retail space still under construction at the end of the second quarter. A 152,000-square-foot Wal-Mart delivered in the second quarter in the Minneapolis market, and a 155,361-square-foot building delivered in the San Antonio market back in the first quarter. Total retail inventory in the U.S. market totaled more than 1.38 million buildings at the end of the second quarter 2014.