Wednesday, September 30, 2015

Wells Fargo Leases 33,000 SF in Glen Mills

Wells Fargo signed a 33,321-square-foot lease on the first floor of the office building at 50 Applied Card Way in Glen Mills, PA.

The five-story, 248,975 square foot, Applied Corporate Center office building was constructed in 2002 in the Delaware County submarket.

Kind Snacks Leases 435,000 SF in Kutztown

Kind Snacks, a natural foods company headquartered in New York City, leased 435,218 square feet in the brand new class A industrial building at 9658 W. Hills Ct. in Kutztown, PA.

Building D in the West Hills Business Center is a 435,218-square-foot building that delivered in June 2015. It is located near the Lehigh Valley International Airport in Allentown along with a range of amenities including restaurants and hotels.

Inmar Leases 93,000 SF in Breinigsville

Inmar, a transportation consulting company, signed a lease for 92,500 square feet in the industrial building at 8150 Industrial Blvd. in Breinigsville, PA.

The single-story building totals 305,654 square feet in the Boulder Business Center. Liberty Property Trust developed and manages the property, which is alos home to Carolina Logistics.

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Tuesday, September 29, 2015

Brandywine Purchases 9 Presidential Blvd., Plans to Build New 120,000 Sq Ft Office Building

Taking advantage of the new zoning ordinance in the City Ave District, Brandywine Realty Trust plans to build a new building with 120,000 sq ft of office space and 7,000 sq. ft of retail at 9 Presidential Blvd in Bala Cynwyd.  This is the first commercial property to take advantage of the new zoning, although several residential projects have already been announced.

According to a Main Line Times article, “The building would include a front portion at street level of about 7,000 square feet to house retail uses. The retail structure would have a green roof. Adjoining the retail section slightly to the rear would be an office building of about 120,000 square feet. Extending back from the retail section and wrapping the office building would be a parking garage providing 470 parking spaces, with two levels above grade and possibly two below.”

The new zoning in the City Ave District allows for higher density, transit-oriented, mixed-use development – something that the Brandywine project, although still in its early stages, will take advantage of.

Sunday, September 27, 2015

PernaFrederick Buys Horsham Office Building

by Steve Lubetkin,
A private limited real estate investment partnership led by Steve Perna and Matt Frederick, principals of PernaFrederick Commercial Real Estate, has purchased the 88,045 square foot, two-story office building at 410 Horsham Road, Horsham, PA for $2.45 million.

The building, built in 1990, once housed the local offices of TNS-Intersearch and Morningstar. PernaFrederick bought the property from First Niagara Realty, Buffalo, NY.

Situated on 7.6 landscaped acres with expansive exposure to Horsham Road (Route 463), 410 Horsham Road presents the opportunity for monument tenant signage to the over 31,000 cars daily and has on-site parking in a ratio of five spaces for every 1,000 square feet leased.  It is also accessible from Route 611.

“We believe 410 Horsham Road presents an excellent opportunity to enter a very mature and rebounding office market that has few large blocks of available space,” says Steve Perna. He says the building represents a prime redevelopment opportunity both as a corporate headquarters or multi-tenant building.

The two 44,000 square foot floors may be divided to suites of 22,000 square feet. 410 Horsham is adjacent to the Horsham Athletic Center, and a full service day care provider.

PernaFrederick says it has started major renovations to include a new lobby, restroom upgrades, landscaping, facade, and other building system enhancements with completion of those improvements scheduled for early 2016.

Thursday, September 24, 2015

Liberty Property Trust to construct $1B campus in Camden

Natalie Kostelni
Reporter- Philadelphia Business Journal

Liberty Property Trust plans to construct a $1 billion “iconic skyline” along the Delaware River in Camden, N.J., that aims to become an integral component to the struggling city’s revitalization.
While the Malvern, Pa., real estate investment trust has owned office and industrial buildings in South Jersey, it has never invested in the city of Camden.

Liberty’s decision to make a significant commitment to Camden now is being driven by several demographic and market factors including an increasing desire of a younger workforce to live and work in dynamic urban environments, as well as lucrative tax incentives state officials put in place through its Grow New Jersey Assistance Program. Those combined have created a more attractive environment for private investment and made it less of a gamble.

Camden has been steadily trying to rise out of a decades-long doldrums that saw jobs and companies flee, crime and poverty rise and investment, especially from the private sector, lacking.
But state officials believe that the seeds for change have finally been sewn as a result of their efforts and those of others, who are banking on the city having a bright future.
There have been several high-profile companies that have decided to move there because of the tax breaks, including American Waterworks, Subaru of America Inc. and, more recently, an international metal recycling company.

Cooper Medical School is up and running, and now has an M.D. Anderson Cancer Center affiliated with it, and Brandywine Realty Trust (NYSE: BDN) was named master developer of 13 acres that Campbell Soup Co. owns and is expected to create a new gateway for Camden.
Those additions join some other established venues along the waterfront including Adventure Aquarium, Susquehanna Bank Center, Campbell’s Field and other attractions.
Camden wasn’t really on Liberty’s radar until some business leaders and others approached company executives nearly a year ago and encouraged them to consider taking a closer look and possibly making an investment. The conversations resulted in Liberty signing an agreement to acquire 16 waterfront acres from Steiner + Associates, which had long owned the land and had plans to develop it but never did.
Liberty then enlisted Robert A. M. Stern Architects to come up with a master plan for a mixed-use community that involves constructing up to 1.7 million square feet of office space in four to five buildings, four parking garages, a hotel with 120 to 140 rooms, and 325 apartments.

Dranoff Properties of Philadelphia has been retained to do the multifamily component. Retail and restaurants will also be part of the development as well as enhancing green spaces along the river. As Liberty (NYSE: LPT) has done at the Navy Yard, it will identify a hotel operator but retain design control over the structure so it fits within the overall scheme.
The plans are ambitious, especially in a market untested for something this grand and vast.
“The more we looked at this, we knew we needed a project of scale and we came to the conclusion we could create a real sense of place, a whole new neighborhood or piece of downtown Camden,” said John Gattuso, senior vice president at Liberty.
Construction could begin soon on parts of the plan. Liberty would like to break ground during the third quarter of next year and anticipates build out to take the next four to five years.
Gattuso said he is already in both early and advanced discussions with tenants that would fill the entire 1.7 million square feet of office space that is planned. This comes as companies continue to recognize they need to be located in environments and physical structures that can attract and retain high-caliber talent, especially as Baby Boomers retire and firms need to re-populate their workforce, Gattuso said. This is what Liberty intends to provide in Camden as it has done elsewhere.
There is also money at play. “Without the tax credits, you don’t have these conversations,” Gattuso said.
A likely scenario would have Liberty constructing build-to-suits for tenants, who would then take ownership of the buildings so they can reap the tax benefits awarded under the Grow N.J. program.
Could this be a new beginning for the beleaguered South Jersey city?
“What has been lacking in Camden is momentum and a committed developer to oversee that,” Gattuso said. “It starts with the vision and what would success look like. Success for Camden is having an individual call their spouse to have dinner along the river overlooking the Philadelphia skyline. That would happen because you would have done something there. You would have created an ambiance and created market demand for a nice restaurant."
Full story:

Pembroke Hobson Pays $22.5M for Yardley Office Bldg

Pembroke Hobson LLC purchased the office building at 777 Township Line Rd. in Yardley, PA from GID Investment Funds for $22.5 million, or about $205 per square foot.

The 110,000-square-foot building was constructed in 2006 on 10.9 acres in Bucks County. The asset is home to Velcera Pharmaceuticals and UPenn Health System.

Dermody Properties to Break Ground on LogistiCenter 78-81

Dermody Properties and PCCP LLC will break ground next month on the planned 405,000-square-foot LogistiCenter 78-81 distribution building at 501 Old Forge Rd. in Union Township, PA.

The facility will rise on a 43-acre site at the intersections of I-78 and I-81. The building is expected to deliver in the spring of 2016, and will feature 36-foot clear heights, 81 dock doors, 60-foot loading bay, parking for over 200 cars, and an extra space for trailer storage.

R.S. Mowery & Sons, Inc. is serving as the general contractor for the project.

Wednesday, September 23, 2015

Renting vs. buying (Video)

Indoor Trampoline Park Leases 20,000 SF

Urban Air, an indoor trampoline park, signed a five-year lease for 20,000 square feet at 981 E. Lancaster Ave. in Downingtown, PA.

The free-standing retail building is part of the 57,000-square-foot Ashbridge Commons shopping center in Chester County. Constructed in 1975, the center is home to a Hibachi Steakhouse and Just Children Day Care Center, in addition to a 123-unit senior living complex known as Ashbridge Manor.

Walgreens Backfill Leases 85,000 SF in LogistiCenter at Logan

Walgreens Backfill, a retail merchandise distribution center, has leased 85,085 square feet of industrial space at 1130 Commerce Blvd. in Swedesboro, NJ.

The 386,026-square-foot warehouse was built in 2002 on 28.4 acres in the Gloucester County Industrial submarket of Philadelphia, part of the LogistiCenter at Logan. The property features 96 loading docks and four drive-in bays, 32-foot ceiling clear heights, and 1,600-amp heavy power.

Tuesday, September 22, 2015

Saxbys' new Center City HQ to push expansion

Kenneth Hilario Reporter Philadelphia Business Journal

Saxbys Coffee is in growth mode, and its new digs in Center City could propel it even further.
The coffee company has set up shop in about 7,000 square feet of space at 2300 Chestnut St., a few blocks away from its Rittenhouse Square location on Walnut Street.
It had been headquartered out of Broomall, Pa., sharing 5,000 square feet of space with local company Swiss Farms.

The new headquarters benefits the company in more ways than one, CEO Nick Bayer said.
"We have significantly more cafés in the city limits than outside the city limits, so from an operational perspective, we're much closer and therefore much more involved in our cafés by being in the city," Bayer said.
Secondly, the company is hiring aggressively both at the café level — it's looking to hire at least 100 people in the region — and from a corporate standpoint.
"There is a real desire for young people to want to be in the cities right now," Bayer said. "They're not looking for sprawling yards, sitting in a car and commuting for 45 minutes in each direction. They want to be able to jump on a trolley or ride their bike … and that happens in cities right now."

Philadelphia's density, affordability and vibrance are major assets for Saxbys.
Third, Bayer said he wants Saxbys to be an active participant in helping Philadelphia, and being headquartered in Center City will make it easier to accomplish.
"One of the ways we can do that is by entrepreneurship and philanthropy, and it’s easier for us to make that impact by being in the city," Bayer said. "By being in the city, it allows us to be really great partners to the city and be able to help add a little bit to the greatness that's already happening here."
The new HQ houses conference rooms, individual office space, an in-house café where new team members learn the ropes in making Saxbys' creations and an area for new team members to learn about hospitality.

All new café team members must go through training at the Center City HQ, which is a boon for the company because it means there will be brand consistency with standardized café and hospitality training.
Bayer said the company will help team members in any way it can when it comes to getting to and from the HQ, particularly those who will be working outside the city limits.

Federal Donuts team inks Center City lease for latest restaurant

Kenneth Hilario Reporter- Philadelphia Business Journal

The team behind Federal Donuts and Zahav has secured a Center City location for its new restaurant concept. Rooster Soup Co., a joint venture between Federal Donuts and Broad Street Ministry, has signed a lease for 1526 Sansom St., located one block away from Federal Donuts' Center City spot at 1632 Sansom St.No opening date has been announced yet.

Rooster Soup Co. will use Federal Donuts' unused chicken parts into stock and broth.
Along with soup, the 1,400-square-foot casual American luncheonette will serve salads and sandwiches, and offer a simple bar selection. All of the restaurant's profits, after operating costs, will be donated to Broad Street Ministry to sustain its work providing meals and services to vulnerable Philadelphians.

Philadelphia has one of the highest rates of poverty — more than 12 percent. Broad Street Ministry helps feed 1,200 people several times per week through its “Breaking Bread” program, which is open to the community, prepared by an executive chef, and served tableside to guests by a volunteer wait staff.
“Our success won’t be measured just in financial terms, but also for how it advances a dialogue about how we take care of our most vulnerable citizens," said Steve Cook, who co-owns Federal Donuts with Michael Solomonov and three others. "Our location, just a few blocks from City Hall, Rittenhouse Square and the central business district, puts us right in the middle of that conversation.”

Formerly the Sansom Street Kabob House, Rooster Soup Co. will occupy space in Boxwood Architects' design, which includes a 18-seat counter and bar, and booths and tables that can accommodate up to 40 people.
The menu will include smoked brisket fat matzo ball, Hungarian goulash, cream of broccoli, borscht and pozole.

Not all soups will be chicken stock-based; dishes also include vegan- and vegetarian-friendly Yemenite-style curry with coconut milk, celery root, hawaij and schug.
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The full bar will include whiskey sours, salty dogs, and bottled and canned beers and house wines.
Federal Donuts and Broad Street Ministry last year launched a Kickstarter campaign which raised $179,380 from 1,587 backers, making Rooster Soup Co. a 119 percent-funded campaign.
Donations can still be made at and are not tax-deductible.
Proposed restaurant hours are 11 a.m. through 11 p.m., seven days a week.

Full story:

South Phila. hospital site to be converted to Townhomes

by Natalie Kostelni Staff Reporter Philadelphia Business Journal

Concordia Group of Bethesda, Md., has partnered with Greg Hill, a developer based in Huntington Valley, Pa., to buy a South Philadelphia property and turn the site into nearly 100 townhouses.
The former Mount Sinai Hospital site at 400 Reed St. in Philadelphia sold to Concordia and Hill for $6 million.

It was sold by Mount Sinai Partners, which involves William Isenberg of Chester Springs. Mount Sinai Partners has owned the property since 2002 when it bought it for $700,000, according to Philadelphia property records. The hospital closed in 1997.

The property has a complex of three buildings totaling 300,000 square feet that takes up a city block. Those structures will be razed to make way for 96 townhouses.
This wasn’t the easiest deal. “I had it under contract five times. Two took it fully through the zoning.”
He had the listing for more than 12 years.

There were plans in 2007 to convert it to condominiums, but the project was shelved when the market turned. Other plans involved turning it into apartments – which was also nixed. Neighborhood opposition thwarted progress and development for years. Finally, a transaction was completed.
“It worked out in the end."

Full story:

Monday, September 21, 2015

Cost Plus World Market, Buybuy Baby Lease in Montco

by Steve Lubetkin,
Two premier retailers, Cost Plus World Market and buybuy BABY, will have a new home this winter in Montgomery County at The Goldenberg Group’s Water Tower Square, where they will be joining a national retail tenant lineup including The Home Depot, Planet Fitness, Office Max and Frank Theaters.

The Cost Plus World Market will lease 17,972 square feet and Buybuy BABY will lease 23,060 square feet.

“The Goldenberg Group is constantly working to keep our shopping centers vibrant by consistently delivering best-in-class retailers to our communities and the customers we serve,” says Adam Rosenzweig, the company’s senior vice president for leasing & asset management. “We are pleased and excited to bring these marquee retail brands, Cost Plus World Market and buybuy Baby, to the residents of Montgomery Township.”

Cost Plus World Market currently operates more than 270 stores nationwide. The grand opening of the Water Tower Square store will mark the retailer’s first store in Pennsylvania.  Cost Plus World Market offers unique, authentic, affordable items for home décor, home entertainment, and gift giving imported from across the globe.

Buybuy BABY is a specialty retailer for new and expectant parents providing a wide assortment of baby gear, furniture, feeding essentials and other products for pregnancy, parenthood, toddler transitions, and other childhood needs. The company operates more than 100 locations nationwide. Water Tower Square will be its first location in the suburbs of Philadelphia.

Both Cost Plus World Market and Buybuy BABY are wholly owned subsidiaries of Bed Bath & Beyond, with whom TGG has a 20-plus year working history.

Bed Bath & Beyond recognized the Water Tower Square shopping center location and trade area demographics as an ideal match for both of these popular retail brands. Situated at the “5 Points” intersection, the hub of Montgomery Township’s business district, Water Tower Square has 262,788 square feet of gross leasable area and is easily accessible from Route 309, Horsham Road, North Wales Road, and the Route 202 Bypass.

TGG says it will now focus on securing a restaurant for the allowable 5,500 square foot pad on the corner of Horsham and North Wales Roads.

“Now that our existing shopping center is 100% leased, we will work to bring a restaurant to the property that will drive additional traffic while providing a new dining experience for the neighborhood,” says Rosenzweig.

Lee & Associates Leasing 422,400 SF Carlisle Industrial

by Steve Lubtkin,
Lee & Associates will handle leasing for a 422,400-square-foot industrial building now under construction at 192 Kost Road in Carlisle, PA.

192 Kost Road will be a 36' clear, class A industrial building located on 38.73 acres with 66 dock doors, up to 162 trailer spots and 310 auto spots. The property is designed to accommodate multi-tenant leases, with the ability to provide suites as small as 100,000 square feet. With the property’s location at the junction of three primary highways servicing the Harrisburg-West industrial submarket and its close proximity to the Harrisburg FedEx and UPS regional sorting facilities, it presents a unique opportunity for companies to occupy a modern, energy efficient facility located at one of the most desired locations in Central Pennsylvania.  MRP Industrial is acting as the developer for the property.
Construction is expected to be completed in early 2016.

Thursday, September 17, 2015

Hill House Apts Sold for $42M

M.E.L Realty Company sold the Hill House Apartments at 201 W. Evergreen Ave. in Philadelphia, PA for $42 million, or about $223,000 per unit, to a subsidiary of Equus Capital Partners, Ltd.

The 211,765-square-foot, highrise complex consists of 188 units, and boasted an occupancy rate of 95 percent at the time of sale. Residents in a mix of studios, one-, two-, and three-bedroom apartments enjoy a host of amenities including underground parking, outdoor pool, and a fitness center.

The sale marks Equus Investment Partnership X LP's first multifamily acquisition. Equus has retained Madison Apartment Group to manage the asset.

Wednesday, September 16, 2015

Envision Healthcare Leases 24,000 SF in Conshohocken

Envision Healthcare has signed a 24,362-square-foot expansion in the River Park 1 office building at 1000 River Rd. in Conshohocken, PA.

The four-story building totals 170,613 square feet in the River Park office complex. BPG Real Estate Services acquired the asset in 2005. RTI will now be utilizing space on all four floors of the building.

Tractor Supply Leases 30,000 SF in Carlisle, PA

Tractor Supply, a hardware store chain with a wide variety of agriculture and livestock supplies, tools, workwear, and boots, signed a lease for 30,173 square feet in the Carlisle Commons Shopping Center at 100 Noble Blvd. in Carlisle, PA.

The 394,033-square-foot community center is located at the corner of Ridge St. in the Harrisburg Area West submarket of Philadelphia. Within a ten-mile radius of the Walmart-anchored center there are more than 93,000 people with an average household income of $70,280. Other tenants in the center include Chipotle, Metro Bank, Staples, and T.J. Maxx.

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Monday, September 14, 2015

Design Center Leases 48,000SF at East Market Development

by Steve Lubetkin,
The Design Center, Philadelphia’s premier resource for the interior design trade, will lease 48,000 square feet at 34 South 11th Street, a class A, modern office warehouse building within the 4.3-acre East Market development.

As an indication of further confidence in the demand for contemporary office space in Center City, the development team of National Real Estate Development say they have also closed on a $38.5 million construction loan from Wells Fargo to continue the renovation of 34 S. 11th Street.

“East Market and The Design Center are both committed to providing one-of-a-kind products and experiences to the Philadelphia community,” says Daniel Killinger, managing director of National Real Estate Development, one of the project’s partners. “East Market will be a place for the creatives, innovators and young professionals who value design and originality, and want to be in the center of it all. The Design Center showrooms perfectly complement our vision for this historic and transforming section of Philadelphia, and we are delighted to welcome them to East Market.”

“The commitments of Wells Fargo and The Design Center to East Market’s office space illustrate the momentum and explosive growth east of Broad Street. We are seeing a strong demand for East Market’s modern office space, which was designed to cater to the new, collaborative workplace model. This type of space, at this scale, simply doesn’t exist anywhere else in Center City.”

Located in the Marketplace building at 2400 Market Street for 30 years, The Design Center has become a Philadelphia staple for trade professionals. Independent showrooms provide designers with luxury furnishings from highly regarded manufacturers and distinguished brands, with some products available for purchase by consumers.

“The area east of Broad Street has become the vibrant heart of Philadelphia’s design community, with so many designers, architects and furniture stores calling it home,” says Gregory Augustine, a local owner of The Baer Collection showroom at The Design Center. “In moving to East Market, we have the opportunity to make our showrooms even more accessible to the design community and Philadelphia consumers and to create a ‘design hub’ right here in Center City.

The Design Center will include The Baer Collection, Beatrice & Martin, Croce, AK & CO, Harrington Group, Kravet, Pindler & Pindler, Robert Allen and Scalamandre. The showrooms will temporarily move to 15th Street and Juniper Street this month, and will open at East Market in the fall of 2016. The Design Center also has the opportunity to expand into an additional 24,000 square feet as the business grows. And that is their plan.

“In selecting a new location for The Design Center showrooms, we knew it was critical to find a place with an energy and creativity that fit our business,” says Lisa Kravet, vice president of Kravet, one of the showrooms currently in The Design Center. “East Market is already a dynamic urban environment, and with this move, each showroom has the opportunity to be part of a completely new Philadelphia experience. We needed a new space that was highly visible, customizable and offered room for growth, and we are thrilled to have found that within East Market.”

The $500 million East Market development will span an entire city block, blending new-to-market retail and dining experiences with contemporary apartments to create a thriving urban destination for locals and tourists. 34 S. 11th Street, formerly home to Snellenburg’s warehouse, is currently being transformed into collaborative, contemporary office space featuring large open floor plates, high ceilings and full height windows. The building’s tenants, The Design Center and gourmet grocer MOM’s Organic Market, are poised to draw both shoppers and professionals to the East Market corridor, playing a central role in bridging the historic and business districts for the first time.

The $38.5 million construction loan secured from Wells Fargo will fund the continued renovation of the 34 S. 11th Street building. This investment, combined with The Design Center’s leasing agreement, represents an important milestone for East Market and a growing trend in the Philadelphia office market.

“Wells Fargo is excited to finance 34 S. 11th Street, given East Market’s potential as a transformative noted of urban mixed-use development,” says Bill Jordan, senior vice president of Wells Fargo-Commercial Real Estate. “Moreover, the financing deepens our relationship with National Real Estate Advisors, which has a demonstrated track record of activating under-utilized, transit-oriented sites in communities across the nation.”

As the first project to secure financing and begin construction, East Market has become the leading development along Market Street in the East of Broad revitalization.

Phase one of East Market, encompassing 34 S. 11th Street and additional buildings along Market Street, will open in the summer and fall of 2016. East Market is developed by National Real Estate Development and owned by National Real Estate Advisors, JOSS Realty Partners LLC, Young Capital LLC and SSH Real Estate.

Saturday, September 12, 2015

Axalta Will Locate Innovation Center at The Navy Yard in Philadelphia

Axalta Coating Systems announced today that its new Global Innovation Center will be at The Navy Yard in Philadelphia. The 175,000-square-foot facility will be home to Axalta’s global research, product development, and technology initiatives and partner with the company’s other technology centers in the Americas, Europe and Asia-Pacific.

The project is being developed by Liberty Property Trust and Synterra Partners, and Axalta has entered into a long-term lease agreement for the building.

Project construction is expected to be complete in late 2017. Upon reaching full operation in 2018, Axalta will bring at least 190 new jobs to Philadelphia with the possibility of additional positions in the future.

Axalta’s global corporate headquarters is already in Center City Philadelphia, and its North America headquarters is in Glen Mills, Pennsylvania, with a customer training center in Exton, PA.

Friday, September 11, 2015

Procida Kicks In $35M for Divine Lorraine Redevelopment

by Steve Lubetkin,
An array of public and private partners, including Billy Procida’s 100 Mile Fund, says it has finalized about $44 million in financing for the transformation of the city’s historic Divine Lorraine Hotel into a mixed use multi-family and commercial building.

Washington Square Realty Capital arranged for $34.75 million in construction financing, provided by Procida Advisors and its 100 Mile Fund. The Philadelphia Redevelopment Authority, the City of Philadelphia and the Philadelphia Industrial Corporation are also contributing to the project, spearheaded by Eric Blumenfeld Realty Management.

“The collaboration that existed between borrower, lender, City, State and third party professionals for the better part of two years was remarkable and speaks volumes about how important this project is to Eric Blumenfeld, the City of Philadelphia and the Commonwealth.  It’s not every day that a real estate financing assignment makes you proud to be a Philadelphian, this is one of those times, I am so happy for Eric and his team that they finally can make this vision a reality.”

Kyle Funsch and John Mullane, principals at Procida Funding, tell exclusively that Procida took the strategy of  having “the mindset of a developer” in its financing of the project. The firm has extensive experience financing redevelopment of distressed properties, including several in Philadelphia.

They’re preparing for the grand opening later this year of the Mural Arts Lofts, a Blumenfeld project Procida also financed near the Divine Lorraine. The project converted a former school building into upscale loft apartments.

“He is a visionary, and his vision to restore the North Broad Street corridor is spectacular,” Mullane says of Blumenfeld. “I think that we can help him execute on the project and bring his dream to fruition.”

“We’re here for capital and discipline,” says Funsch. “We believe in Philadelphia. Everyone wants to see the Divine Lorraine succeed.”

The project will include affordable housing accessible to Temple University students and young professionals, Mullane says.

Domus Construction has been engaged as the general contractor and construction will begin almost immediately, with initial occupancy slated for the fall of next year according to Robert Malgolis, partner and project manager for Domus.

"The exterior of the historic Divine Lorraine Hotel will be restored to its original grandeur with the interior being renovated into 109 unique and elegant residences with close to 20,000 square feet of restaurant and retail space designed to honor its great history."

Thursday, September 10, 2015

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Nabriva Therapeutics Subleases 15,000 SF in King of Prussia

Nabriva Therapeutics, a biopharmaceutical company, signed an eight-year sublease for 15,044 square feet in the office building at 1000 Continental Dr. in King of Prussia, PA.

The six-story building totals 205,424 square feet in the King of Prussia / Wayne submarket. Equus Capital Partners developed the property in 2007, and sold it in 2014 to KBS Realty Advisors, according to CoStar data.

Nabriva’s lease is an expansion on their currently occupied space on the third floor. Other tenants there include Northwestern Mutual and The Hartford Financial Services.

Wednesday, September 9, 2015

Cedarbrook Plaza in Wyncote, PA

by Steve Lubetkin,
Day care and hair care arecoming to the Cedarbrook Plaza in Wyncote, PA.

North Whales Academy signed a lease for 2,700 square feet, providing child care services convenient for retail center employees and local residents.

E'TAE Natural Hair Products will lease a 6,000 square-foot space. The store will sell a natural hair care line that is made with over 20 high grade natural ingredients. The company has store locations in 13 states.

Nassimi Realty owns and leases the center.

Five Below Opening Largest Store in Philly

by Steve Lubetkin,
Five Below, which describes itself as an “extreme-value retailer for pre-teens, teens and beyond” is opening its largest store in Center City Philadelphia, just steps from the Company's headquarters.

The Philadelphia company says the new store, on Chestnut Street between 15th and 16th Streets, encompasses 13,000 square-feet and is the first two-story store in the firm’s history. The store opens Thursday, September 10th.

"Five Below was established in 2002 and remains based in the heart of Philadelphia and the opening of our largest store on Chestnut Street is a highly anticipated and proud moment for Five Below," says Joel Anderson, CEO of Five Below. " Opening at this busy crossroads signifies the further resurgence of Chestnut Street's redevelopment and renaissance and we look forward to bringing this community the most exciting and vibrant destination for teens, pre-teens and their parents in Center City."

The new store is located at the long-standing Arcadia Theatre. Constructed in 1915, the theater's crown moldings, high ceilings and exposed brick walls blend perfectly with the modern Five Below escalator, lighted ceiling logo and signage.

Five Below products are grouped into one of eight in-store worlds: Style, Room, Sports, Tech, Crafts, Party, Candy and Now. Five Below's unique assortment features leading brands such as Lego, Wilson, Hasbro, Coca Cola and Peeps and hot licenses from Disney and Marvel, like Star Wars, Despicable Me, Avengers and Frozen. Rounding out the assortment is merchandise packed with quality and value made exclusively for Five Below.

Five Below is one of the fastest growing retailers in the country, with over 400 stores in 26 states. So far in 2015, the company has opened 56 stores and expects to end the year with 70 new stores.

Haynes Run Apartments in NJ Sells

by Steve Lubetkin,
The Haynes Run Apartments, a 148-unit apartment complex in Medford, NJ, sold to an unidentified buyer for an undisclosed price.

“The long-term owner took advantage of the current strong demand among investors for multifamily real estate. The local market lacked available properties of this caliber.  Properties of this construction, condition and size are rarely available in southern Burlington County. The buyer plans to improve the property through upgrades including new roofs, siding, landscaping, parking lots and a children’s recreational center. Apartments will also receive new fixtures and finishes.”  

Haynes Run Apartments consists of a combination of one- and two-bedroom apartments situated on 22 acres. Each apartment has an individual entrance with central air conditioning, individual gas heater, rear door or patio door leading to a private patio or balcony, and full-size washers and dryers.

The property is about /20 miles from Philadelphia near the New Jersey Turnpike, I-295, Route 70, Route 73 and Route 206. The location also provides residents with access to golf courses, parks, and other recreation areas.

Saturday, September 5, 2015

Company Voice Signs Renewal, Expansion at Harvest Point

Company Voice, a full-service inbound and outbound contact center, has signed a seven-year lease renewal and expansion totalling 34,525 square feet at 930 Harvest Dr. in Blue Bell, PA.

Harvest Point is a 118,706-square-foot office building within the 475,000-square-foot Union Meeting Corporate Center office complex located in Montgomery County. Constructed in 1991, the building was awarded Energy Star labels in 2010 and 2011.

Company Voice renewed its first floor space of 16,473 square feet and expanded into an additional 18,052 square feet on the third floor.  The landlord is Balashine Properties.

New Multifamily High Rise Fetches $51.1M

LaSalle Investment Management has purchased the recently-completed, 110-unit AQ Rittenhouse multifamily highrise at 2021 Chestnut St. in Philadelphia, PA from joint-venture partners Aquinas Realty Partners LLC and MB1 Capital Partners for $51.1 million, or about $465,000 per unit.

The 12-story, 141,000-square-foot, LEED Silver-certified multifamily building was constructed in March 2015 in Philadephia County. It features street-level retail space, concierge service and doorman, business center, fitness center, on-site management, and a rooftop sky terrace for tenants.

The asset was already 60 percent leased at the time

Friday, September 4, 2015

Luxury student dorms (Video) #Iwannagoback

Office Space in Top Tech Cities Commands a Hefty Premium

by Steve Lubetkin,
Businesses looking for office space in the nation’s hottest tech markets should expect to pay a premium – and a hefty one in many of the top tech cities. Among them is Philadelphia’s University City, which at 45 percent had the fourth-highest rent premiums in North America.

The report, which analyzes the top 30 tech cities across the U.S. and Canada, showed an aggregate rent premium of 11 percent across all 30 markets—a number that jumps significantly higher in the hottest tech submarkets.

Vast differences in asking rates are emerging in Philadelphia, both downtown and in the suburbs, as tech tenant preferences and clustering drive demand in a few select submarkets, including the CBD and University City. Average office asking rent grew 3 percent from Q2 2013 to Q2 2015; yet in University City, rent grew 20.4 percent over the same time period, the eighth-most among top tech submarkets included in the study.  

With only 13 blocks of contiguous class A space of 100,000 square feet or more available in the Philadelphia market, new development is becoming more active. The Comcast Innovation and Technology Center and the expanding University City Science Center will add nearly 2.8 million square feet of office and lab space, furthering the tech presence in Philadelphia.

“Philadelphia is uniquely positioned for such strong tech growth because with education and medicine typically being among the strongest drivers for tech growth, Philadelphia has among the best in the world in both. With the continual investment by University of Pennsylvania and Drexel University, as well as the ongoing growth of world-class medical institutions like CHOP and Penn Medicine, along with the private investment from companies such as Comcast, the city will continue to see the tech sector grow and be a driving force in Philly’s strong economy.”

The high-tech software/services industry has created 730,000 new jobs since 2009 and was the leading driver of U.S. office market demand, accounting for 20 percent of major leasing activity, through Q2 2015. In many leading tech markets, the sector is even more dominant: in Silicon Valley, Austin, San Francisco and Seattle, high-tech companies accounted for 88 percent, 63 percent, 62 percent and 60 percent of major leasing activity through Q2 2015, respectively.

“The high-tech industry is directly supported by consumer demand and a growing number of high-tech integrated businesses, which should keep the industry strong in the years ahead and provide further support for office markets in the Tech-Thirty. Commercial real estate investors must be mindful and have realistic expectations about this historically volatile industry underpinning the health of many ‘Tech-Thirty’ office markets.”

Lehigh Valley Getting Another Large Industrial

by Steve Lubetkin,
The Lehigh Valley is getting another industrial development, as Dermody Properties and PCCP will develop a 475,800-square-foot industrial facility at 4200 E. Braden Blvd. in Forks Township, PA.

Dermody Properties will start construction on the facility, known as LogistiCenter at 33, in the fourth quarter of 2015 and expects to complete construction in mid-2016. Upon completion, LogistiCenter at 33 will feature 36 feet of clear height, 226 car parking spaces and 85 trailer parking spaces.

Last month, as reported by, the partners announced the acquisition of a 43-acre site in Jonestown, Lebanon County, PA, where they plan to build LogistiCenter78-81, a class A, 405,000-square-foot distribution center.

“The Lehigh Valley is a highly desirable industrial market,” says Gene Preston, partner, Dermody Properties East Region Office. “We look forward to expanding our presence there with the addition of a state-of-the-art industrial facility at the site in Forks Township.”

LogistiCenter at 33 will be suited for warehouse, distribution and manufacturing operations. The facility is centrally located in the heart of the Lehigh Valley near such corporate neighbors as Weyerhaeuser, Crayola, Victaulic and Mondelez, and is within minutes of Interstate 78 and Route 33 via the new Main Street interchange just west of the site.

Dermody is the industrial developer and operating partner, and PCCP is the financial partner on the project.

“PCCP sees this as a compelling opportunity to develop a class A industrial facility with Dermody Properties, a best-in-class developer,” says John Randall, managing director with PCCP. “Additionally, the local industrial market incorporates all of the key fundamentals that promise to attract large user interest. Our goal is to pre-lease the property prior to completion of construction.”

“Dermody Properties has been developing facilities for lease and build-to-suit in the Pennsylvania markets for many years,” says Douglas A. Kiersey, Jr., president, Dermody Properties. “We are pleased to expand our investment in this market, and specifically in the Lehigh Valley, with the addition of LogistiCenter at 33 to our portfolio.”

Thursday, September 3, 2015

Honeygrow signs on to King of Prussia Town Center

Natalie Kostelni
Reporter- Philadelphia Business

Honeygrow, a popular fast-casual restaurant, has signed a lease at the King of Prussia Town Center.
The Philadelphia restaurant will occupy 2,400 square feet and will add to its other suburban outposts in Radnor, Pa., Bala Cynwyd, Pa., and Cherry Hill, N.J.

“We are excited about honeygrow joining the King of Prussia Town Center because it fits perfectly into our collection of high-quality national and local eateries,” said Tom Sebastian, senior vice president of development at JBGR Retail, which is developing the 260,000-square-foot retail center in King of Prussia, Pa.
More than 70 percent of the Town Center's space has been committed by tenants. Those who have signed on so far include Nordstrom Rack, REI, LA Fitness, Paladar, Old Town Pour House, Road Runner, Fogo De Chao, PNC Bank, Ulta Beauty and Hair Cuttery.

In June, honeygrow disclosed that it had secured $25 million to help fund its growth and add to its management.
It was founded in 2012, and has plans to open eateries in Hoboken, N.J., Wilmington, Del., Newark, Del., and on the University of Pennsylvania campus this year.
Full story:

Wednesday, September 2, 2015

Monthly Economic Outlook – August 2015 - Wells Fargo (Video)

Mitchell Gold + Bob Williams Store Coming to KoP Mall

by Steve Lubetkin,
Luxury home furnishings retailer Mitchell Gold + Bob Williams will lease 15,229 square feet at the King of Prussia Mall in King of Prussia, PA, the retailer’s largest store to date and its first lease with mall owner Simon Property Group.

MGBW will take a two-story space in a newly expanded wing of King of Prussia Mall. The space includes 7,127 square feet on the ground floor and 8,102 square feet on the second floor. Simon began an expansion of this wing of the mall in 2014 to add an additional 155,000 square feet of retail space for 50 new retailers and restaurants as well as a dining pavilion. Other retailers in the expansion wing include Gucci, Louis Vuitton, Hermes and Bloomingdale’s. Mitchell Gold + Bob Williams is scheduled to open in fall of 2016 to coincide with the grand opening of the new expansion.

“I have a long history with this center dating back to attending the opening of Bloomingdale’s when world-class merchant CEO Marvin Traub helicoptered in with Calvin Klein,” says Mitchell Gold. “So opening such a special store here is my nod to Mr. Traub and an expression of how thrilled we are to be in one of Simon’s premier properties.  Bob and I and our whole team are excited to move into our new neighborhood.”

“Simon made a great decision to invest in the expansion and open up new opportunities for world-class retailers,” says Ezra. “This is a premium location and a unique branding opportunity for Mitchell Gold + Bob Williams; the space also fit well with their existing portfolio of stores. Plus, the proximity to Philadelphia, the demographics of the market and the strong co-tenancy with other luxury fashion and home retailers made this a very compelling opportunity.”

Founded more than 25 years ago in rural North Carolina, Mitchell Gold + Bob Williams is an internationally acclaimed manufacturer and retailer of luxury home furnishings, including upholstery, casegoods, lighting, rugs, accessories and a carefully-edited collection of wall art.

Mitchell Gold + Bob Williams has more than 15 locations nationally, including space in Oakbrook, IL; Scottsdale, AZ; Kenwood, OH; and Glendale, CA.

Tuesday, September 1, 2015

PREIT Sells Mattress Warehouse in Lancaster

by Steve Lubetkin,
PREIT has sold the site of theMattress Warehouse property at 1831 Hempstead Roadin Lancaster, PA to a private investor, David Roeberg for an undisclosed amount.
Mattress Warehouse remains as the tenant, with 10 years remaining on its current lease.  Mattress Warehouse is located in a 6,000 square foot building as an outlot in a 1.84 acre shopping center.
“A property like this, with a strong-credit, corporate-owned retailer like Mattress Warehouse with a long-term lease in effect, was bound to attract significant interest. This site is adjacent to other strong national retailers, including Costco, Lowe’s, and Best Buy. Combined with its easy access and high visibility to the US-30 Bypass, the fundamentals for both the property and the region are strong.”
The Mattress Warehouse property is located at the corner of Hempstead Road and Pitney Road just off of Route 30. It is situated along a high-traffic retail corridor in Lancaster County. The company opened its first retail location in 1989 in Frederick, MD, and now has more than 180 stores throughout the east coast. 1831 Hempstead Road is one of the company’s newest locations.