Wednesday, August 31, 2016

Spying on real estate with CoStar (Video)

Buy real estate stocks, REITs? (Video)

Philadelphia Seventh Among Markets Without Enough Self-Storage

by Steve Lubetkin,
Philadelphia ranks seventh among markets without sufficient self-storage capacity.

“Analysis by major Metro Markets can be useful for comparison from a national perspective but these metrics should not be relied upon for local area analysis. Factors that affect local self-storage product type include zoning regulations, local demographics, household income and density, among others.The best analytics for this sector are by local trade area. From our Investor Surveys and zip code studies of existing facilities, it is clear the trade area for self-storage is relatively small, generally within a three-mile radius for a typical suburban property.”

The report ranks market conditions overlaid with a scoring model based on occupancy, income, and cap rate data in top Metro markets based on REIS data, along with cap rate data.  The result is a ranking of top Metro Markets for self-storage, segmented among top performers and market conditions (under-supply, over-supply, or equilibrium).

Among the markets identified in the report as having too much self-storage supply are: Oklahoma City, Memphis, Columbus, Kansas City, Salt Lake City, Houston, Dallas and Seattle. The top five under-supplied markets are New York, San Jose, Los Angeles, San Diego and Baltimore.

Market conditions are determined by econometric model that compares existing supply per person to four demographic variables: population, percent of renters, average household size and average household income

“In the City of Philadelphia, we are seeing conversions of older industrial loft buildings into self-storage facilities and servicing a smaller radius due to the higher density. In the suburbs, we are seeing a proliferation of modern facilities with primarily climate-controlled units.”

Tuesday, August 30, 2016

Stoltz Real Estate Partners Acquires Armada Drive, Greencastle, PA

by Steve Lubetkin,
Stoltz Real Estate Partners completed $25.61 million of financing to acquire 1378 Armada Drive, Greencastle, PA. The single-tenant building is currently leased to a subsidiary of Armada, a supply chain solutions company, through January 2034. The five-year fixed rate financing was provided by Short Hills, NJ-based Investors Savings Bank.

The state-of-the-art facility was completed as a build-to-suit for Armada in 2013 as part of the consolidation and modernization of Armada’s Northeast logistics services for McDonald’s. The redistribution facility, McDonald’s largest in the US, is used to deliver food, beverages, equipment, and other restaurant products to distribution centers serving McDonald’s restaurants across the Northeast.

“The class A distribution center is a mission-critical location serving over 14,000 McDonald’s locations along the East Coast. Given the superior attributes of the property and the best-in-class sponsorship, we were able to secure the financing from Investors Savings Bank, which provided the best rate and structure.”

Monday, August 29, 2016

Biggest Starbucks Warehouse in the World Opening Next Month in Pennsylvania

When all 1.2 million square feet of its newly expanded distribution center in York County, PA become fully operational next month, Starbucks said the Trade Center 83 complex in central Pennsylvania will become its largest distribution center in the world.

The Seattle-based firm said its York Distribution Center expansion will increase capacity by 35% and will help ensure that baristas in more than 3,000 Starbucks stores throughout the Northeastern U.S. and parts of Canada and Europe remain fully stocked of Pumpkin Spice Latte and the rest of its caffeinated elixirs.

Texas-based Hillwood Investment Properties astutely acquired the 95.3-acre tract adjoining the Starbucks bean roasting plant in East Manchester Township for $12 million in 2014 and immediately announced plans to build the 1.2 million-square-foot speculative warehouse, betting that sooner or later Starbucks would need more space.

Earlier this year, Starbucks agreed to take the entire building located at 1605 Bartlett Dr. under a 10-year lease. The expansion will enable Starbucks to move its distribution operations out of the roasting plant, where its roasted more than 3 million pounds of coffee each week since 1995.

The facility features 36-foot clear-height ceilings, a cross dock configuration and dual driveway for multiple tenants and parking for up to 288 cars and 657 trailers.

"As we looked at our long-term growth plans for the business, and the current demands for distribution at scale, we needed to invest in additional capacity," said Jim Wells, vice president of Starbucks Distribution and Supply Chain Operations. "Since opening our roasting facility here in 1995 with just a handful of people, we now have more than 500 full-time partners with plans to hire 300 more over the next three to five years. There's no better location to continue to grow our business and create jobs and economic development."

Gary Frederick, senior vice president and market leader for Hillwood’s Northeast U.S. industrial business, said he expects the success of the large spec project will attract more distribution development in the area.

"Central Pennsylvania’s continued growth creates an ideal area for logistics operators to expand their presence," Frederick said. "With numerous sites under construction, Hillwood sees continued growth and steady demand for industrial space in the market."

Eight Retail Leases Sign At Lehigh Valley Mall

by Steve Lubetkin,
Eight retail leases we signed at the new Hamilton Crossings shopping center on Krocks Road between the Route 222 Bypass and Hamilton Boulevard in Trexlertown, PA, southwest of Allentown.

Totaled deals signed were approximately 115,000 square-feet of retail space.  The 560,000 square-foot shopping center is a joint venture between The Goldenberg Group and TCH Development.

The new retailers leasing space are Dick’s Sporting Goods, Nordstrom Rack, Ulta Cosmetics, Chipotle, Verizon Wireless, Univest Bank, Kay Jewelers and Core Life Eatery.

For a few of the retailers, such as Nordstrom Rack, the new location will mark their first presence in the Lehigh Valley. Nordstrom Rack held its grand opening last week. Dick’s Sporting Goods is currently open for business, and the balance of the shopping center is expected to open between now and October.

“The project will bring many new-to-market retailers to the Lehigh Valley and provide a first-class shopping experience for years to come."

The $140-million shopping center is benefiting from significant growth in the immediate trade area and a substantial daytime population.

Friday, August 26, 2016

Deal-Tracker: A Roundup Of Sales, Leases And Activities In NJ/PA

by Steve Lubetkin,

Here is a roundup of some of the smaller transactions reported in recent weeks in the New Jersey and Philadelphia markets.


CAMDEN, NJ—CI Architecture, a regional architecture, interior design and land planning firm, has acquired 121 Market Street, Camden, NJ, from RFB Properties, a Republic Bank subsidiary, for $450,000. The buyer plans to fully transform the 9,500 square-foot building interior into a state-of-the-art work workplace

SEA ISLE CITY, NJ— Uncle Mike’s Arcade in Sea Isle City, NJ was successfully sold. The Arcade seller was Michael Dolio . Anthony Shea and Todd DeMott are the new owners.

Leases – New Jersey

SOUTH HACKENSACK, NJ—Lumber Liquidators has renewed 11,000 square feet of industrial/warehouse space at 14 East Wesley Street in South Hackensack, NJ. Located in the Meadowlands submarket, the industrial property is owned and managed by Alfred Sanzari Enterprises of Hackensack, NJ. The transaction was negotiated in-house by Sanzari.

FORT LEE, NJ—PixarBio, a Boston-based biotechnology company specializing in post-operation pain management, is leasing 4,881-square-feet of class A office space at the Fletcher Office Center, 2200 Fletcher Avenue, Fort Lee, NJ.

Leases – Pennsylvania

WEST CHESTER, PA—Optical provider New Vision Family Eye Care has leased 2,300 square feet at Bradford Plaza in West Chester, PA. Located at 700 Downingtown Pike, the 161,000-square-foot grocery-anchored shopping center is exclusively leased and managed by North Plainfield, NJ-based Levin Management.

PHILADELPHIA, PA—Miller’s Ale House has signed a 15-year lease with The Goldenberg Group for 8,860 square feet of space at the Columbus Commons shopping plaza in South Philadelphia. Miller’s Ale House is the latest addition to the 647,266-square-foot regional retail hub serving Central and South Philadelphia and South Jersey. Columbus Commons is located at Columbus Boulevard and Snyder Avenue in Philadelphia and has direct access and visibility from I-95 and the area’s major bridges including Walt Whitman and Ben Franklin. The shopping center is anchored by the city’s first and only IKEA, as well as Raymour & Flanigan, Lowe’s Home Improvement, Best Buy and Pier 1 Imports.

PHILADELPHIA, PA—Archetype Solutions of Trevose is moving to 2124 Race Street and Strassheim Graphic Design & Press Corporation is relocating its downtown offices to 1500 Spring Garden Street under long-term leases. The leases total approximately 7,300 square feet with an aggregate value exceeding $625,000.  Biomeme and UK US Tax Services also expanded and relocated its respective downtown offices to 1015 Chestnut Street and Two Penn Center.

Exclusive Agencies

PISCATAWAY, NJ—Keystone Property Group is marketing 30 Knightsbridge Road, a 680,000-square-foot, class A office campus in Piscataway. Thirty Knightsbridge Road features four interconnected buildings on an expansive corporate campus. Since acquiring the property, Keystone has invested several million dollars enhancing the amenity package, which now includes a newly renovated cafeteria, several conference/training rooms, a 200-seat auditorium with its own servery and a state-of–the-art fitness center. Tenants also benefit from robust infrastructure including redundant power with an onsite substation, high-end fiber optic infrastructure, an advanced security system with 24/7 card access and a three-bay covered loading dock with a separate freight elevator.

PARAMUS, NJ—Former occupied by defunct national sporting goods chain Sports Authority 50,000-square-foot, big-box retail space is being marketed for lease. Located at 200 Ikea Drive in Paramus, the prominent site is located at the intersection of routes 4 and 17 – in the heart of the highly sought-after Bergen County retail corridor. Situated directly across from the Garden State Plaza and just moments from the Garden State Parkway, 200 Ikea Drive offers exceptional visibility, high traffic counts and strong demographics. The property’s in-place retailers include IKEA, Bed Bath & Beyond and Christmas Tree Shops.

Capital Markets

MORRISTOWN, NJ—G.S. Wilcox & Co. secured $19.5 million in financing for clients, arranged by Gretchen S. Wilcox, president, and Al Raymond, principal. One loan for $13.5 million with a fixed 2.85 percent interest rate for five years with a 30-year amortization was secured by a 202,148 square foot warehouse building at 1000 Secaucus Road, Secaucus, NJ. The second loan of $6 million was placed on a 100,626 square foot warehouse at 118 Algonquin Parkway, Whippany, NJ. This loan has a three percent interest rate fixed for seven years with a 30-year amortization. Both loans were placed with Kansas City Life Insurance Company.

Reading-Based Carpenter Technology Moving Corporate HQ To Center City

by Steve Lubetkin,
In an effort to attract a broader talent pool, Reading, PA-based Carpenter Technology, which manufactures specialty metals, is relocating its corporate offices into Center City with the leasing of 22,000 square feet of class A office space at the BNY Mellon Building, 1735 Market Street, Philadelphia.

Carpenter will relocate in fall 2016. The company’s primary manufacturing plant will continue to operate in Berks County, where 2,300 people are employed. The Reading, PA plant is part of the company’s Specialty Alloys Operations segment.

The new Philadelphia location will bring approximately 100 positions to the city, over time. The move provides better access to transportation, customer markets, world-class universities, and increased visibility with broad talent pools.

The landlord is Equity Commonwealth.

Br-PA Trust Puts Kiddie City Building Up for Sale

Br-PA Trust has put its 365,000-square-foot industrial warehouse at 2951 Grant Ave. in Philadelphia, PA up for sale.

The Kiddie City Building totals 365,000 square feet of industrial space. Broder Brothers will be vacating the building while shuttering its manufacturing operations after being combined with Imprints Wholesale.

Thursday, August 25, 2016

Simon Property Group Completes King of Prussia Mall Expansion, Connecting The Court with The Plaza

Simon Property Group has completed the planned renovations to its King of Prussia Mall, bringing the super regional center's footprint to more than 2.9 million square feet by connecting The Court and The Plaza, creating a top retail attraction that becomes the second largest shopping center in the United States, according to the owner.

The two centers had been separated by a roadway since their initial development in 1963. Construction began in the summer of 2004 on a 155,000-square-foot, multi-level, fully-enclosed expansion project at the mall, connecting the 1.68 million-square-foot Plaza with the 902,000-square-foot Court under one roof.

"The expansion of King of Prussia Mall will further enhance the shopping and dining experience of one of the nation's largest and most compelling retail destinations," said David J. Contis, president of Simon Malls, back in 2004 when the project was still in its planning phases. "Based on the success of luxury retailers like Cartier, Tiffany & Co., Hermes and Louis Vuitton, we're seeing a strong interest from other luxury brands to join the King of Prussia roster of retailers. Interest by national and Philadelphia-area restaurants is also high."

The new addition will see a new collection of luxury retailers and upscale dining options as well as several first-to-market retailers not found elsewhere in the region. The fully-enclosed expansion features floor-to-ceiling windows, an upscale dining pavilion, lounges with seating and device-charging stations, a guest service center, an attached parking garage with valet service, and new store entrances for existing anchors Neiman Marcus, Macy's and Bloomingdale's.

According to Simon, the new stores and restaurants that opened with the expansion include Altar'd State, Calligaris, Cartier, CH Carolina Herrera, Club Monaco, David Yurman, Diane von Furstenberg, Gap, Jimmy Choo, MCM, Robert Graham, Stuart Weitzman, Superdry, Vince, Hai Street Kitchen, Nicoletta and Shake Shack.

Located about 25 miles northwest of Philadelphia, King of Prussia serves the Greater Philadelphia region including Montgomery, Chester and Delaware Counties. At the junction of Routes 202, 76, 422 and the Pennsylvania Turnpike, the mall is easily accessible for shoppers and diners at more than 450 stores, shops and eateries at the mall, now anchored by Neiman Marcus, Bloomingdale's, Nordstrom, Lord & Taylor, Macy's, JCPenney, and Dick's Sporting Goods.

Expansion project at Main Line's Suburban Square set to begin

Alison Burdo Digital Producer Philadelphia Business Journal
A $20 million expansion project planned for outdoor shopping mall Suburban Square in Ardmore is set to add another 4,000 square feet to the Trader Joe's location and add another 400 parking spaces to a nearby lot.

Construction on the supermarket and a new parking garage adjacent to the Urban Outfitters are set to begin next month, according to Main Line Media News.

The Trader Joe's location is currently about 8,000 square feet, and the rear addition will bring it over 12,000, the newspaper said. Construction of a 625-space, 4-level parking garage will cause a nearly year long closure of a surface lot, which accounts for about 200 spaces, Main Line Media News said.

Continuing the timeline, [Kimco Realty's Nina] Rogers said construction of the new retail/office building on Coulter Avenue, to be known as Station Row, will not begin until the parking garage is completed and open for operation. It will include 20,000 square feet of retail space on the first floor, with about 17,000 square feet of offices above.
This is just one of several projects expected to transform the Main Line community. After a years-long battle with neighbors, Dranoff Properties will move forward with construction of a mixed-use project, which will go up in a parking lot on Cricket Avenue that currently serves a strip of Lancaster Avenue businesses.

A YMCA on Montgomery Avenue has already been torn down, making way for a condominium complex.
Full article:

Wednesday, August 24, 2016

Square D Renews 340,000-SF Lease in Mechanicsburg

Square D, a manufacturer of electrical circuit breakers, renewed its full-building lease for 340,000 square feet at 201 Cumberland Pky. in Mechanicsburg, PA.

The industrial building was built in 1992 on 22.3 acres in the Harrisburg Area West Industrial submarket, within the Cumberland Business Park. Square D will remain the sole tenant in the building.

Two Building Deals Close in West Chester PA

Two flex properties sold in West Chester, PA.  1075 Andrew Drive is a 65,200 square foot building which sold to a user who will occupy most of the facility.  901 S. Bolmar Street is an 86,000 foot multi-tenant property which sold to an investor.  The individual prices are undisclosed, but the total value of the two transactions was approximately $15 million.

PAG Investments Acquires Franklin Marketplace In NE Philadelphia

by Steve Lubetkin,
PAG Investments, a North Jersey-based real estate investment, development and management company primarily focused on the acquisition, operation and repositioning of grocery-anchored shopping centers, has acquired Franklin Marketplace, a 223,434-square-foot retail power center near Philadelphia Mills in northeastern Philadelphia, for $25.775 million.

The seller was NY-based Benbrooke Realty Investment Company.  PAG Investments purchased the asset free and clear of existing debt.

Franklin Marketplace is 88.6% leased to a variety of national and regional tenants, including Kaplan, Big Lots, Dollar Tree, Retro Fitness, Harbor Freight Tools and Citizens Bank.  Situated on 18.36 acres at 101-195 Franklin Mills Boulevard, the power center is located adjacent to Philadelphia Mills, the region’s largest outlet shopping center with more than 1.8 million square feet of retail space.  Franklin Marketplace benefits from a dense population in its immediate vicinity with more than 300,000 residents within a five-mile radius.  Positioned at the gateway to the Northeast, the destination retail location benefits from direct connections to Interstate 95, U.S. Route 1 and the Pennsylvania Turnpike.

“Franklin Marketplace generated significant interest from the full capital spectrum due to its investment proposition and the continued institutional interest in Philadelphia. The property benefits from its close proximity to Philadelphia Mills and is surrounded by densely-populated neighborhoods generating high-consumer demand.”

Tuesday, August 23, 2016

East Penn Manufacturing, Verizon to occupy space in Lower Macungie warehouses

By Brian Pedersen Lehigh Valley Business
East Penn Manufacturing and Verizon are among the tenants headed to new warehouse space in Liberty Business Center II, a group of warehouses under construction in Lower Macungie Township near Alburtis.

East Penn will lease space in a warehouse in the Alburtis area, starting this fall, said Joel Brady, spokesman for the Berks County battery manufacturer. This facility will be used as a distribution center to support the company’s existing Topton distribution facility, he said.

The company will transfer existing employees to this facility as well as hire new employees, he said.

He declined to say how many employees would be at the site.

Property owner Liberty Property Trust, which has an office in Bethlehem, also signed two tenants for one of the warehouses, a 1.2 million-square-foot-facility.

Jeanne Leonard, spokeswoman for Liberty Property Trust, confirmed it has leased both warehouses under construction at Spring Creek Properties, but declined to provide additional information.

The 1.2 million-square-foot-warehouse is for Ryder System Inc., a logistics group, which will contract with Verizon, said Sara Pandl, director of planning and community development for Lower Macungie Township.

The facilities are on Congdon Hill Drive off Spring Creek Road, one mile from the Route 222 Bypass.

Liberty Business Center II will have five warehouses once complete, Pandl said. Four have received approval. The next warehouse under construction is 650,000 square feet, Pandl said.

Last month, construction began on the third warehouse/distribution center, a 1.1 million square-foot-facility expected to be finished by April 2017.

The Liberty Business Center II development is the latest example of the township’s considerable growth in industrial and commercial projects.

“From a development perspective, it certainly changes the landscape but it also does bring in new tax revenues,” said Becky Bradley, executive director of the Lehigh Valley Planning Commission. “It does bring in jobs. Lower Macungie does not have very much greenfield [undeveloped] land to be developed; they are very interested in preserving green space.”

She also said the township has many redevelopment opportunities for its properties.

Hamilton Crossings is perhaps the last lifestyle center to open in the Lehigh Valley, she said.

This project, a 570,000-square-foot shopping center, also in Lower Macungie Township near Route 100 and the Route 222 Bypass, opened in July.

Additional distribution growth is also on the way in neighboring Upper Macungie Township with Liberty at Mill Creek. This Liberty Property Trust project, at the southwest corner of Mill Creek Road and the Route 222 Bypass, is where two buildings totaling 1.6 million square feet of distribution space are going up for Uline.

Morrisville, PA, Industrial Trades Hands

by Steve Lubetkin,
MJLS Holdings, an electrical contractor, has acquired a 16,700-square-foot office and industrial building sale at 1380 S. Pennsylvania Avenue in Morrisville, PA from Michael Fardella,

The buyer was looking to expand from its previous facility.

“This transaction created the perfect scenario for the buyer—providing the additional space it required for its growing business in an ideal location to serve their clients."

Located in Falls Township, 1380 S. Pennsylvania Avenue is a two-story fully air-conditioned building with four office suites ranging from 2,300 to 2,625 square feet, including kitchen areas and a conference room. The 6,948-square-foot industrial area is divided into two spaces—one unit includes two office areas and the second unit features a 1,100-square-foot mezzanine area. The building also features a video surveillance system and a 130-KW back-up generator. Located in Bucks County, the building is in close proximity to US Route 1 and I-95 offering easy access to New Jersey.

“We are pleased to have represented both parties in meeting their business goals. Morrisville is a great location offering convenience to major highways, as well as a myriad of housing, retail and entertainment options.”

Monday, August 22, 2016

Trends for Commercial Real Estate (Video)

This about Hudson Yards in NYC but Philly follows much of this trend.

Monthly Economic Outlook – August 2016

Self Storage Capital Acquires Two Central PA Properties

by Steve Lubetkin,
Self Storage Capital Partners has acquired a two-property self storage portfolio totaling 1,106 units in Pennsylvania.

Total financing and joint venture equity totaled $19.2 million for the transactions, and closed the $11.65 million sale of one of the properties.

HFF arranged the $5 million joint venture equity partnership between Self Storage Capital Partners and a private equity firm and, on behalf of the partnership, placed the $14.2 million, fixed-rate acquisition financing with a CMBS lender for Penns Trail Self Storage and Lanco Mini Storage Center.  Additionally, All-Time Self Storage, closed the sale of Penns Trail Self Storage.  Self Storage Capital Partners purchased the asset free and clear of existing debt.

Penns Trail Self Storage is a class A, multi-story facility built in 2010.  The stabilized, 495-unit property was more than 95 percent occupied at the time of sale.  Located at 104 Penns Trail in the eastern part of the Philadelphia suburb of Newtown, Penns Trail Self Storage is situated in an affluent area with more than 127,000 residents with a household income averaging more than $130,000 annually living within a five-mile radius of the property.  The facility has easy access to Interstate 95.

Completed in 2006, the 611-unit Lanco Mini Storage Center is 88 percent leased.  The property is located at 1813 Old Philadelphia Pike (Route 340) in Lancaster, PA.  Situated within a large population center of more than 150,000 residents living within a five-mile radius, Lanco Mini Storage Center has visibility from an average of 15,970 vehicles per day along Route 340 and is just off US 30, which has direct access into Harrisburg.

“The purchase of Penns Trail Self Storage represents a suburban Philadelphia record-setting price per square foot of $234. Pricing on this transaction was driven by limited supply, historically strong sector performance and the execution on the sale.”

“The financing market for this transaction was very competitive, yielding 12 quotes from an array of financing sources,” Conley says.  “The strong lender interest for this assignment helped drive maximum leverage, I/O and pricing for the borrower.”

“We are pleased to acquire these high-quality assets in what was a very smooth transaction,” said Matt Lang, head of operations for Self Storage Capital Partners.  “We look forward to continuing to work with the HFF team as we execute our aggressive growth plan.”

Friday, August 19, 2016

Duke Realty Building Another Bulk Warehouse In Lehigh Valley

by Steve Lubetkin,
Duke Realty Corp. has begun construction of 33 Logistics Park 1611, a new, speculative, 628,475-square-foot bulk warehouse adjacent to Duke Realty’s recently completed and fully leased 1.1 million-square-foot warehouse on Van Buren Road just off Route 33 at the new four-way diamond interchange at Main Street.

“With the quick lease-up of our 1.1 million-square-foot building in 33 Logistics Park and strong ongoing demand for warehouse space in the Lehigh Valley, we wanted to be sure that we are well-positioned to offer move-in ready, first-class space to companies who can’t wait for a build-to-suit facility,” says Jeff Palmquist, senior vice president of Duke Realty’s Northeast Region. “When complete, 33 Logistics Park 1611 will be an attractive solution to distributors looking for a large block of modern space and superior highway access where they can begin operations right away.”

Construction on 33 Logistics Park 1611 will begin in September, with delivery scheduled for June 2017. In addition to 36′ clear height, the building will feature 64 dock doors, two drive-in doors, and parking for 110 trailers and 350 automobiles. Tenants will have the ability to build out their office space to their specifications.

“The Lehigh Valley continues to be one of the nation’s most in-demand distribution hubs because of its proximity to the highly populated New York City metropolitan area,” says Palmquist. “The location of 33 Logistics Park 1611 will provide companies ready access to I-78, I-81 and I-80 and be within a day’s drive of more than 40 percent of the population of the United States and Canada.”

33 Logistics Park 1611 will be Duke Realty’s fourth building in the Lehigh Valley and second in 33 Logistics Park. Duke Realty also owns two buildings in West Hills Business Center on the west side of the valley—a 980,000-square-foot bulk warehouse and a 233,000-square-foot bulk warehouse. These four facilities, along with other bulk warehouse buildings it owns in Pennsylvania, New Jersey, Maryland and Northern Virginia, raise Duke Realty’s Northeast United States industrial portfolio to more than 9.7 million square feet.

Wednesday, August 17, 2016

Michael’s Inks Renewal Deal in Wilmington

Michael’s signed a 24,876-square-foot renewal at 3080 Brandywine Parkway in Wilmington.
The 1-story, 893,571-square-foot, retail building was built in 1997 and is in the Philadelphia - North New Castle submarket.
The landlord is GDC Properties Inc.

Camuto Group Preleases 682,708 SF

Camuto Group, an international fashion company, signed a lease for 682,708 square feet in an industrial building to be built at 32 Springside Road in Westampton, New Jersey.

The one-story building will total 382,708 square feet in the Rancocas Park. It is scheduled to break ground within the next month, with expected completion in early 2017.

It will be owned and developed by Dolan Contractors Inc.

Office Properties Largest Contributor to First Half CMBS Defaults

Cumulative CMBS loan default rates continued to trend down, dropping to 12.9% at half-year 2016 compared to 13.3% at mid-year in 2015. The combination of steady issuance levels and overall improved property fundamentals supported the decline in loan defaults, according to Fitch Ratings.

In the first half of the year, 106 loans, totaling $1.44 billion newly defaulted during their loan term. The average size of the newly defaulted loans was $13.5 million.

About three-fourths of the loans that did default during their terms were for loans made in 2006 and 2007, at the last real estate peak prior to the Great Recession.

Among property type, office properties were the largest contributor to new defaults by loan balance. Not surprisingly, office loans also accounted for the highest portion of CMBS loans made in 2006-’07.

Cumulative Default Rate by Property Type

Type Issuance ($ Bil) Default (%)
Health Care $6.1 23.9%
Hotel $72.1 16.9%
Industrial $39.2 14.7%
Multifamily $120.5 16.1%
Office $204.6 12.7%
Retail $222.9 11.0%

The four largest defaults in the first half were as follows.

--$150 million James Center, Richmond, VA;
--$116.6 million Fair Lakes Office Park, Fairfax, VA;
--$68 million Minneapolis Airport Marriott, Bloomington, MN; and
--$55.9 million DHL Center, Breinigsville, PA.

The James Center, now REO, is a 1 million-square-foot office property in downtown Richmond. The property consists of three high-rise office towers. As of February 2016 the property was approximately 63% occupied, according to Fitch data.

Fair Lakes Office Park is a 1.25 million-square-foot office park consisting of nine buildings ranging in size from 75,000 to 275,000 square feet.

The Minneapolis Airport Marriott is a five-story, 472-room, full-service hotel in Bloomington, MN. According to Fitch’s servicer notes, the property will likely require significant capital investment.

DHL Center is a 490,000-square-foot industrial building in Allentown, PA. The property was built for DHL which vacated in early 2009. DHL's lease expires at year-end 2025 with an early termination option at year-end 2020. DHL is paying an above-market rental rate. The property is currently 100% subleased by 3PL Co. The borrower and the special servicer have agreed to a foreclosure by January 2017.

PREIT Sells Another Underperforming Center, This One In Washington, PA

by Steve Lubetkin,
PREIT says it sold its Washington Crown Center mall in Washington, PA, about 30 miles southwest of Pittsburgh, as part of its continuing divestitures of underperforming properties. The property was sold for $20 million.

“We remain committed to crafting a strong portfolio of assets that are well-positioned for the future,” says Joseph F. Coradino, CEO of PREIT. “This commitment has been evident in our disposition program as well as our remerchandising and redevelopment successes and has resulted in improved operating results including strong renewal spreads, margin improvement and same store NOI growth.”

Washington Crown Center, at 1500 W. Chestnut St., Washington, PA, is anchored by Bon-Ton, Macy’s, Gander Mountain and Sears.  As of June 30, 2016, the property generated sales per square foot of $313 and non-anchor occupancy of 87.4 percent.

In its sales of underperformers, PREIT says it has generated proceeds in excess of $660 million and the elimination of less-successful malls has driven its sales metrics to new levels, reaching $460 per square foot excluding Washington Crown Center.

PREIT is also trying to sell the Beaver Valley Mall, 570 Beaver Valley Mall Blvd., Monaca, PA, as part of its portfolio optimization plan. That property is about 32 miles northwest of Pittsburgh.

Tuesday, August 16, 2016

Benjamin’s Desk Co-Working Space Relocates To 1608 Walnut Street

by Steve Lubetkin,
Co-working space Benjamin’s Desk is leasing 11,693 square feet on the 12th floor of 1608 Walnut Street, which will become the firm’s flagship office for shared office space in Center City.

The PMC Property Group, the limited investment partnership owns 1608 Walnut Street.

Benjamin’s Desk provides shared workspaces, diversified business programming and events, customized growth services and coaching, and access to entrepreneurs-in-residence. Benjamin’s Desk provides the space, community, resources, and expertise to help companies and entrepreneurs innovate, impact, thrive, and grow.

In the second lease of approximately 6,880 square feet was signed on the 6th floor of the 232,000 square foot building to the Philadelphia Utility Emergency Services Fund that is moving from One Penn Center at Suburban Station.

Philadelphia Utility Emergency Services Fund helps pay for expenses such as energy or heating bills, as well as grants and financial aid to cover other housing costs such as rent, security deposits, and mortgage payments. The fund was created to help stabilize housing needs for vulnerable individuals and families. Philadelphia residents who receive aid from it will also receive case management and access to other workshops.

Thursday, August 11, 2016

What is percentage rent? (Video)

Equus Sells One Meridian In Wyomissing, PA

by Steve Lubetkin,
Philadelphia-based Equus Capital Partners has sold One Meridian at Spring Ridge, a 366,728 square foot office building in Wyomissing, PA.

The property, a class A trophy asset originally developed as a headquarters for the former Meridian Bank, is currently 98% leased and anchored by a variety of national and regional credit tenants including Allstate, CNA Financial Corporation, Godiva and Sunoco.

The suburban location sits at the nexus of several regional roadways providing convenient access to the Philadelphia metropolitan area, as well as many of the major population centers in the Northeast, particularly the New York City metro area. Property amenities include a large modern lobby, conference center, on-site café, fitness center, and expansive exterior spaces. In addition, there are protected, rustic views to the west of the building due to a conservation easement of 50-plus acres of wooded land.

Tuesday, August 9, 2016

This co-working space targets members selectively (Video)

COPT Divests Arborcrest Corporate Campus in Blue Bell

Spear Street Capital has acquired the Arborcrest Corporate Campus comprised of 721-751 Arbor Way, 801 Lakeview Dr. and 785 Jolly Rd. in Blue Bell, PA from Corporate Office Properties Trust (COPT) for $142.7 million, or about $170 per square foot.

The office project consists of four operating office properties totaling 654,000 square feet that are currently fully leased, a 190,000-square-foot redevelopment opportunity that is vacant, and 27 acres of excess land located in the Plymouth Meeting / Blue Bell submarket of Montgomery County, north of Philadelphia.

Airport Industrial Park Property Trades In Pennsauken, NJ

By Steve Lubetkin,
Standard Merchandising, a sock manufacturing company whose former location was sold to make way for the new Subaru headquarters in Camden, has acquired a 115,300-square-foot manufacturing facility at Airport Industrial Park for $4.15 million.

The property, at 7001 North Park Drive, is situated on seven acres and was a former printing facility occupied by Contemporary Graphic Solutions. The building offers views of the Cooper River and is across from the river’s running/biking trail.

Airport Industrial Park has more than two million square feet of industrial buildings and is conveniently located at Routes 130, 70, and 38.

Monday, August 8, 2016

FedEx Breaks Ground For Regional Distribution Center In Allen, PA

by Steve Lubetkin,
FedEx has broken ground for a 1.1 million square-foot distribution facility on a 260 acre site along Willowbrook Road in Allen Township, PA. The Rockefeller Group, which is working with FedEx on roadway improvements in the area to accommodate increased vehicle traffic, helped identify the site for FedEx and sold the land for the facility to the package delivery giant.

“After years of remarkable collaboration between the many public and private parties involved, we’re thrilled to move ahead with this project and look forward to seeing all of our efforts come to fruition,” says Clark Machemer, senior vice president and regional development officer for The Rockefeller Group’s New Jersey/Pennsylvania operations. “FedEx Ground is arguably the largest and most significant player in global logistics, and its presence in the Lehigh Valley will spur substantial job creation and economic development for the region.”

The Rockefeller Group plans to develop a world-class industrial park on the land surrounding the new FedEx Ground facility through three additional projects, and the roadway improvements led by The Rockefeller Group and FedEx Ground will accommodate increased traffic for all future projects. The upgrades will take place between the development site and US Route 22, including the widening of Willowbrook Road, Race Street and Airport Road.

“Following nearly four years of planning and presentations to the elected and appointed officials of Allen Township, we are finally here today to recognize and welcome FedEx Ground to our community,” says Ilene M. Eckhart, Allen Township Manager. “The process, which resulted in the hub project breaking ground today, was pursued with utmost integrity and generous consideration for the improvement of Allen Township infrastructure needs.”

Turf Equipment and Supply Co. Buys West Chester Facility

by Steve Lubetkin,
The sale of a 35,150 square-foot industrial facility situated on 3.18 acres for $2.85 million was published. The site, located in the Birch Run Industrial Park at 16 Hagerty Boulevard in West Chester, PA, was the former home of VF Technologies.

The buyer, Turf Equipment and Supply Co., will occupy about 22,000 square foot of clear-span, crane-served space with contiguous offices. The balance of the building is a two-story office structure fully occupied by professional services’ tenants.

Turf Equipment and Supply is relocatng from Kennett Square, PA in the fall of 2016, and expects to bring new jobs and significant investment to upgrade the previously vacant space.

The buyer selected the property due to its outstanding, highly-desired location at Route 202 and Matlack Street, the compatibility of the space to fit their needs, and as a stable investment opportunity.

The seller was D & L Development Co.

Thursday, August 4, 2016

Ozburn-Hessey Logistics Renews 500,000-SF in Carlisle, PA

Ozburn-Hessey Logistics signed a 500,000-square-foot, full-building lease renewal at 80 S. Middlesex Rd. in Carlisle, PA.

The single-story industrial building was constructed in 2001 on 36.1 acres in the Harrisburg Area West Industrial submarket of Cumberland County. It features ESFR sprinkler, 50 loading docks and one drive-in, 30-foot clear heights, 50-foot column spacing and a 200-foot truck court.

Graphics Firm Taking Space At Reinvented Lansdale Industrial Facility

by Steve Lubetkin,
Great Atlantic Graphics will relocate to 2750 Morris Road, a 650,000-square-foot, reinvented industrial facility in Lansdale, PA.

“Throughout our search for a new space, we’ve been intently focused on identifying a property with world-class manufacturing infrastructure in place, ensuring an optimal work environment for employees and the ideal conditions for print production,” says Fred Duffy, president of Great Atlantic Graphics. “2750 Morris perfectly positions us for future growth, and we look forward to our upcoming move.”

As previously reported by, a joint venture between Advance Realty and the Davis Cos. had acquired and renovated the property, a former Ford Motor Company facility with extensive industrial enhancements.

Great Atlantic Graphics’ new 68,000-square-foot lease follows a series of infrastructure upgrades at the property that include the addition of new building systems, a new roof and exterior wayfinding signage, as well as improvements to common areas, landscaping, and parking.

Relocating to the Lansdale facility from Malvern, PA, Great Atlantic Graphics will house both its manufacturing and office operations at 2750 Morris Road, which features robust in-place infrastructure that satisfies the critical components of the company’s facilities requirements.

“Great Atlantic Graphics’ space needs fit perfectly with our vision for 2750 Morris,” says Barry Quiner, Advance Realty’s director of asset management. “Since acquiring the property in 2014, our partnership has been focused on doing everything necessary to attract tenants like Great Atlantic. Specifically, our goal has been to build on the infrastructure that already existed at the site, ultimately elevating it to its current status as a premier facility for climate-controlled production and manufacturing.”

Originally an electronics plant for Ford Motor Company, 2750 Morris Road features heavy power generation; state-of-the-art HVAC and humidity control systems; dual substation power feeds; chilled-water and compressed-air delivery systems; and five diesel generators. The building’s temperature- and humidity-controlled environment makes it particularly well suited for companies seeking versatile, high-quality warehouse, manufacturing or assembly space.

“Just weeks after announcing the completion of our property upgrades at 2750 Morris, it’s exciting to welcome Great Atlantic Graphics at an ideal time when they can take full advantage of the significant renovations we’ve made in partnership with Advance,” says Mark Bush, a senior vice president of asset management at The Davis Companies. “We’ve applied our repositioning expertise to transform this former electronics plant into a dynamic office and warehouse.”

In addition to Great Atlantic Graphics, 2750 Morris is currently home to a roster of tenants that includes Valmet, Vygon USA, and Fox Bindery.

Located nine miles from Philadelphia, 2750 Morris Road occupies 84 acres with prime access and signage opportunities off the Northeast Extension of the Pennsylvania Turnpike at Exit 31, as well as routes 202, 309 and 63. Situated with convenient access to King of Prussia, Plymouth Meeting, Center City, Philadelphia International Airport, and the Lehigh Valley, the property is proximate to a variety of shops, services entertainment and dining options.

Wednesday, August 3, 2016

GSA Inks 95,000 SF in Leases at 801 Market St

The GSA (WPERC) signed two leases totaling 94,704 square feet at 801 Market St. in Philadelphia, PA.

Health and Human Services (HHS) will occupy the eighth and ninth floors when it relocates from the Public Ledger Building in June 2018 on a 10-year deal valued at roughly $23 million.

The historic former Strawbridge & Clothier department store building totals 942,610 square feet of retail and office space on 2.1 acres in the Market Street East submarket of Philadelphia County. The building features a helipad, large patios, separate marble lobby with directory signage and ten elevators for office users, 12- to 15-foot ceilings, and ornate architectural accents throughout.

The lease marks a huge return to city and the space for the federal government. The space will be fully renovated for HHS, and brings the building's office component to 70 percent leased.

Tuesday, August 2, 2016

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Ashfield moving to bigger offices in Fort Washington

by Jacob Adelman, Staff Writer Philadelphia Inquirer
Outsourcing specialist Ashfield Commercial & Medical Services is moving its headquarters from Ivyland to an 80,000-square-foot space in Fort Washington to accommodate a continuing expansion, the company said in a release on Thursday.

Ashfield, a unit of UDG Healthcare PLC, is moving to the new location following the growth of its workforce to 1500 members from 120 in 2007, the company said. The Fort Washington space is 60 percent larger than the previous location.

The new headquarters will feature an auditorium, a full-service cafeteria and other amenities, Ashfield said. Construction of the new space in an existing office building is expected by February 2017, with the move scheduled for the following month.

Two Suburban Philadelphia Retail Properties Change Hands In $21M Deal

by Steve Lubetkin,
A Verizon Wireless store in King of Prussia, PA and Walgreens Pharmacy in Lansdowne have changed hands for a combined price of $20.615 million.

A joint venture of Pike 705, a private investor, and Florida-based OneCorp sold the 6,000 square-foot Verizon store, located at 715 W. Dekalb Pike to CFC KOP Properties, a locally based 1031 exchange investor affiliated with Clemens Food Group, according to data obtained from Real Capital Analytics, a proprietary research firm. Built in 2015, the Verizon store is directly across from the main entrance to the King of Prussia Mall. It sold for $11.1 million, or $1,850 per square foot.

“The location of the Verizon store in King of Prussia is simply irreplaceable real estate which demands pricing at the highest end of the market,” says Gorman.

The seller was S&P (Simon & Peterson) Lansdowne in the Walgreens sale to C&H Investment Company, according to Real Capital Analytics. The 14,800 square-foot Walgreens, a 2016 redevelopment of a historical bank branch located at 2 W. Baltimore Ave. in Lansdowne, PA, sold for $9.515 million, or $643 per square foot.

“At the time of the sale, the property in Lansdowne was the only new 20-year Walgreens Pharmacy available within the Philadelphia MSA.Through our national marketing process we were able to attract the buyer from the greater Los Angeles, CA area."

Monday, August 1, 2016

Excellence is building the future of Philadelphia

Philadelphia’s increasing construction projects are not only modernizing the city skyline, but are also heralding an era of growth for Philadelphia through the renovation historic buildings throughout the city while also developing an innovation corridor spanning from Old City to University City. The projects are in alignment with the city’s commitment to continue to bring more business and opportunity to the Philadelphia area.

500 Walnut St, Philadelphia, PA 19103
Designed as an “ultra luxury high rise” tower next to Independence Hall, 500 Walnut is slated to open in 2017. The 26-story tower will have 28 condos and a two-level penthouse with exclusive roof access. Units will range from 2,700 to 4300 square feet. A large treetop terrace will be positioned next to a glass wall that leads in to an interior lounge with a direct view of Independence Hall. The building’s amenities planned also include fully automated 80-space parking, a multi-level glass enclosed fitness center, three-lane glass-enclosed lap pool, and an entertainment room for hosting events (complete with catering kitchen).

1919 Market St, Philadelphia, PA 19103
321 upscale apartment units, 215 parking spaces, 108 bike storage spaces, and 24,000 square feet of office and retail space are planned for this 29-story tower on the corner of Market and 20th Streets. Concierge service and various amenities including a rooftop fitness center, demonstration kitchen, game room, and a ledge pool will also be part of the new structure. Independence Blue Cross, CVS, and Naf Naf Grill have already signed on for office and commercial space leases.

2400 Market St, Philadelphia, PA 19103
The former Marketplace Design Center building will be rebuilt into a block-wide 22-story office and residential tower with 450,000 square feet of office space and 350 apartments. The ground floor will accommodate retail tenants such as restaurants, coffee shops, or fitness centers. The building’s layout aims to promote pedestrian traffic through the center of the ground floor plaza by constructing a walkway connecting Market and Chestnut Streets. The building will include six floors of offices which will be rehabbed and outfitted with glass walls and the residential portion of the building to be housed above the office space.

Central Green, Rouse Blvd, Philadelphia, PA 19112
Central Green is a 4.5-acre park at the heart of the Navy Yard surrounded by office buildings. The park’s design relies on circles as the dominant design motif to highlight the park’s different spaces, with different circles to feature different uses such as a fitness station, amphitheater, sun lawn, and a bio basin for storm water. The design plan also includes a track around the rim of the park lined with wood and metal lounge chairs and benches and paths leading to the park’s interior. The park includes mature landscaping housing 304 trees, 42 types of groundcover, 10,105 shrubs, and more than 13,600 bulbs.

CHOP Schuylkill
700 Schuylkill Ave, Philadelphia, PA 19146
The Children’s Hospital of Philadelphia is working on a four-phase development plan encompassing 8.4 acres along the Schuylkill River that includes the construction of a new 22-story office tower for clinical research and administrative programs. Phase one of the project will focus on the tower and accompanying surface parking, several public spaces, and a walkway from the South Street Bridge that connects to the Schuylkill River Trail. The remaining three phases are planned to take place over the next twenty years and include three more buildings along the waterfront.

Comcast Innovation and Technology Center
1701 John F Kennedy Blvd, Philadelphia, PA 19103
Comcast is investing in its mother city by building a skyscraper set to drastically change the Philadelphia skyline. The Comcast Innovation and Technology Center will be a state-of-the-art facility housing Comcast, its NBC affiliates, and incubator companies. Loft-like work spaces and a 12-story hotel on the top stories are planned for the tower. The new Comcast Center will be one of the ten tallest buildings in Philadelphia and promote the city as a strong technological hub.

Curtis Center
699 Walnut St, Philadelphia, PA 19106
Plans for the Curtis Center include converting 90,000 square feet of vacant office space into 55 luxury apartments and outdoor streetscape improvements. Retail will be added on the ground floor, including a corner restaurant with outdoor seating overlooking both Washington Square and Independence National Park, and a coffee shop, spa, gym, and bar. Cosmetic and basic upgrades to the elevators and renovation of the building’s HVAC system, roof, façade and parking garage will also be a part of the initial renovation. The building’s atrium will receive a makeover including the removal of the palm trees and fountain to accommodate a bar and new archways.

East Market
1150 Market St, Philadelphia, PA 19108
Taking up an entire city block, the East Market project will be a combination of pedestrian-oriented retail, new residential apartments, office space, parking, and hospitality uses. The initial phase of the project will include a 17 story tower with retail space in the bottom two levels and apartments through the remainder of the building. Along with the tower, phase one will include the redevelopment of the Family Court Building offices on South 11th Street into a 160,000 square feet of creative style office space for a more millennial workforce. The project will also host the first Center City outpost for Mom’s Organic Market, a popular organic produce and natural food retailer as well as furniture retailer Design Within Reach.

FMC Tower
2930 Walnut St, Philadelphia, PA 19103
The 47-story FMC Tower at Cira South will be the new home of FMC Corporation and one of the tallest buildings in the city. At 730 feet tall, the building will include offices, apartments, and residential amenities along with retail space. Cira Green, a one-acre park atop the parking structure adjacent to the tower will offer access to the tower through a skybridge.The FMC Tower’s location provides unobstructed views of the Schuylkill River as well as the Center City skyline and will further help to connect Center City with University City. The University of Pennsylvania will also be a major tenant.

Hanover North Broad
1422 Callowhill St, Philadelphia, PA 19104
Hanover North Broad will consist of two six-story apartment buildings flanking North Broad Street at its intersection with Callowhill Street. The towers, which will hold 339 apartments and about 17,000 square feet of ground-floor retail space, are planned to replace two surface parking lots owned by the Parkway Corporation. The lot at 322 North Broad Street will house 229 apartments and feature an outdoor pool, while 339 North Broad Street will have 110. Each building will feature its own courtyard, clubhouse, screening room, and business center.

Hyde Hotel
341 S Broad St, Philadelphia, PA 19102
The Hyde Hotel will share a block with its sister brand hotel, the SLS Lux on the intersection of Broad and Pine Streets. The building plans currently include a 22-story tower with a restaurant and bar, a roof deck, underground parking, and 76 hotel room and apartments. The project is still going through approvals and budget negotiations and does not have a definite construction date.

Kimpton Hotel
1801 Vine St, Philadelphia, PA 19103
The 73-year-old former Family Court building will be redeveloped into a hotel now that the Family Court has relocated. The hotel’s interior, including all 37 murals and lighting fixtures, were designated historically significant in 2011 and will remain intact. The project will include 199 rooms, a 3,500-square-foot ballroom, meeting and boardrooms, a spa and fitness center, and a restaurant and bar. The project will honor the physical integrity and history of the building though one notable exterior alteration has been proposed: adding a rooftop lounge.

LOVE Park / JFK Plaza
1599 John F Kennedy Blvd, Philadelphia, PA 19103
Renovations at LOVE Park will temporarily displace the iconic LOVE statue to Dilworth Park but will transform the park into a greener and more welcoming space in Center City. The park’s Welcome Center will receive a facelift and a restaurant, and the fountain will be replaced with a two-part water installation and more green space. Also planned for the renovation is work on the level above the underground parking, which was sold last year to InterPark.

Mellon Independence Center Tower
701 Market St, Philadelphia, PA 19108
The MIC tower will be built atop the rear portion of the Lit Brothers building so as not to distract from the building’s historic facade and to preserve the Market Street view. The 35-floor structure will be set back 180 feet from Market Street and 150 feet from Seventh and Eighth Streets, and primarily consist of white and gray hues. A new basement and lobby will provide the planned residential units with access. The ground floor will also feature new retail space and the first five floors above will be converted for office use.

Mormon Temple
1739 Vine St, Philadelphia, PA 19103
The Mormon Temple is the first temple of the Church of Jesus Christ of the Latter Day Saints in the state. The project features a gold statue of the angel Moroni on the tallest spire of the temple, gracing Philadelphia’s skyline (and William Penn who sits atop City Hall) with a second icon. In addition to the temple, a meeting house and 32-story residential tower are being built adjacent to the site.

Museum of American Revolution
300 Chestnut St, Philadelphia, PA 19103
The Museum of American Revolution is located in the heart of Old City, just two blocks from Independence Hall and a block from Benjamin Franklin’s home. The building will be a total of three stories plus a full basement. Features of the museum will include permanent and temporary exhibit galleries, theaters, education spaces, collection storage, a café, a retail store, offices and a welcoming lobby area. The museum’s exhibits will tell the story of events leading to the Declaration of Independence and the war that led to the creation of the nation.

One Riverside
210-220 South 25th St, Philadelphia, PA 19106
Located at the intersection of 25th and Locust Streets, One Riverside sits by the entrance to the Schuylkill River Park. The highrise will offer views of University City, the Schuylkill River, and the downtown skyline. The new 22-story glass skyscraper will feature 82 condominiums with high-level finishes and balconies, 110 underground parking spaces, fitness center, indoor pool, club room, hospitality suite, and business center. Plans include a private garden with broad lawns, as well as a separate terrace adjoining the lobby with an outdoor kitchen.

One Water Street
230 N Columbus Blvd, PA 19106
Originally proposed as a strictly residential building, PMC Property Group recently modified plans to include ground-floor retail space at One Water Street. The project will consist of separate 13- and 16-story sections and will include two public green spaces, a green roof with LEED certification, 73 parking spaces, and car-share spots. The building will house 250 apartments - ten percent of which will be reserved for lower-income residents. Amenities for residents also include bicycle storage room, gym, and a meeting space for building residents.

Parkway Central Renovation Free Library
1901 Vine St, Philadelphia, PA 19103
Renovations for the Parkway Central Free Library were made possible by a gift from the William Penn Foundation, which will also provide funds for additional renovations to smaller branches. $7 million of the $25 million gift will go to renovating the interior of the Parkway Central Library. The plans are to tear out most of the outdated storage stacks and employ a redesign that will add 40,000 square feet of space to the historic building. A major aspect of this renovation includes repurposing the common area and converting it into the Business Research and Innovation Center, a town square for civic interaction.

Raymond G Perelman Center for Jewish Life
100 N 34th St, Philadelphia, PA 19104
The center is the first in Drexel’s history entirely focused on enhancing the religious, cultural and social experiences of Jewish students at the University. It is expected to serve as the site for Shabbat services and dinners, Jewish Education programs, and programs facilitating opportunities in Israel. At 14,000 square feet and three stories, the building will include an event space for over 100 people, chapel, meeting rooms, student lounges, and offices for Drexel Hillel. Kosher food services and kitchen are also in the plans. The building will provide a designated space for Drexel’s Jewish community to come together and continue to grow.

Reading Viaduct
1398 Noble St, Philadelphia, PA 19123
Starting with a chunk of the viaduct around 12th and Callowhill the Reading Viaduct project is set to add more versatile green spaces to the city. Drawing inspiration from New York City’s Highline project, plans are to create a unique, mixed-use, mixed-income neighborhood in the heart of Center City. Phase one of the project will involve a 26,000-square-foot section of the Viaduct known as the SEPTA Spur. Work will include landscaping and adding stairs that connect the railway to the street level.

Rodin Square
501 N 22nd St, Philadelphia, PA 19130
Rodin Square is one of a growing list of buildings surrounding the Benjamin Franklin Parkway bringing more pedestrian traffic to the area. The mega-complex will house about 300 luxury apartments and the long-awaited 55,000 square foot Whole Foods. Additional retail space has been leased by CVS, Santander Bank and Thomas Jefferson University Hospital. The building will feature a landscaped roof terrace, facing the Parkway, with a swimming pool, green roofs, and spaces for gathering, relaxing, and exercising.

Schuylkill Yards
30th and Market Sts, Philadelphia, PA 19104
In partnership with Brandywine Realty Trust, Drexel University unveiled plans in March 2016 for Schuylkill Yards, a 14-acre development surrounding 30th Street Station in University City. Plans for the project include a public park, eight new mixed-use high rises for office, laboratory,and residential space, which will be developed over a span of 20 years. The project will outfit University City with a distinct downtown area and will integrate current residents of nearby neighborhoods into its plan. The project will create a gateway between University City and the Drexel campus.

SLS Lux Philadelphia
309-313 South Broad St, Philadelphia, PA 19102
At 47 stories and 562 feet, the SLS Lux Philadelphia Hotel & Residences will be the tallest tower in Pennsylvania built for residential use. Located across the street from the Kimmel Center, the project will include 90 condominiums and the 152-room boutique SLS Hotel. There will be 160 resident-only parking spaces, as well as ground-floor retail. Amenities for both residents and guests include a full spa, fitness center, all-season 75-foot pool, ballroom and meeting facilities.

Stemmler Hall
3450 Hamilton Walk, Philadelphia, PA 19104
The Stemmler Hall renovation will give new life to the medical and research laboratories housed in the existing building as part of the University’s Century Bond program, which addresses energy savings opportunities and maintenance needs around the campus. Through multiple phases the project will upgrade the mechanical, electrical and plumbing systems to the building along with infrastructure upgrades to the lower floors of the building. The building spaces will be renovated along with the laboratories and will include installing new windows while maintaining the integrity of building’s existing façade. The renovation is on track for completion in late 2017 and will remain open throughout most phases of the project.

The Gallery
901 Market St, Philadelphia, PA 19108
The Gallery is undergoing a major redevelopment in an effort to reposition the space as a high-end outlet mall for tourists and Philadelphians alike. The shift in the quality of stores was most clearly noted with the opening of high-end discount retailer Century 21 as it’s first anchor tenant. The mall’s redevelopment aims to make the retail hub more accessible through a street level plaza on 9th and Market Streets as well as street-level storefronts.

Thomas R Kline Institute
1200 Chestnut St, Philadelphia, PA 19108
The dignified former Beneficial Savings Fund Society building, designed by Horace Trumbauer as the bank’s headquarters in 1916, will get a new life as the Thomas R Kline Institute of Trial Advocacy for Drexel University. The now-vacant building is part of a larger $50 million gift from Thomas R Klein to add to Drexel’s impressive law program. The building will undergo renovations that stay true to the building’s historic elements. The project will provide a dedicated advocacy arm to Drexel’s law program as well as supply the university with a Center City outpost for its law school.

uCity Square
3675 Market St, PA 19104
UCity Square is a massive mixed-use development encompassing the renovation of the University City Science Center. The decade-long project includes the construction of 10 new buildings and renovations of 17 existing buildings, resulting in over 6.5 million square feet of retail, residential, office and lab space that promote the area’s original mission as a business incubator and research hub. Companies such as Avid Radiopharmaceuticals Group, NRG Energy, and Spark Therapeutics are already slated to take residence at UCity Square. The first two projects include 3675 Market, which will bring back access to 37th Street and connect it through the site to Lancaster Avenue, and a low-rise residential building where Lancaster and Powelton Avenues meet at the north end of the development.

W/Element Hotel
1441 Chestnut St, Philadelphia, PA 19102
The 51-story hotel will be 582 feet tall and have 295 rooms under W Hotel and 460 rooms under Element by Westin. Each hotel will have a separate entrance and lobby as well as separate brand specific amenities. The building will have 41,000 square feet of meeting and banquet space, an 8,600-square-foot restaurant, 1,700 square feet of retail, and a 185-space, below-grade parking garage. The facade of the tower will feature an abundance of glass with a “dancing, shimmer” look. Strips of LED lights will be embedded in the tower’s facade and have color-changing/cascading effects at times.
Fully Story:

Philadelphia Area Industrial Performed Strongly In First Half

by Steve Lubetkin,
The regional industrial market performed strongly during the first half of 2016. In a mid-year industrial research and forecast report, vacancy decreased despite the addition of 8.1 million square feet of speculative construction and the shutdown of three larger manufacturing facilities in Chester, Montgomery, and Lehigh counties.

More than half of the new speculative space was leased prior to, or shortly after completion.

Asking rents increased in all submarkets.. Free rent periods have decreased and the gap between asking and signing rents is generally below 10 percent. Warehouse rents range from $3.25 to $5.00, depending on age and specific location. New generation bulk warehouse rents range from $4.75 to $5.25 per square foot.

Submarkets around the region.

Philadelphia County: The vacancy rate decreased to 7.2 percent in the second quarter of 2016. Larger transactions included Ocean Desert Sales’ expansion within the market to Tomlinson Road and Maryland-based Regency Furniture’s purchase of Deb Shops’ former warehouse. Changes to Pennsylvania’s wine and beer system are expected to increase activity by beverage distributors. WuXi AppTec’s new 145,000-square-foot facility at the Navy Yard will be the largest gene manufacturing operation in the country.

Suburban Pennsylvania: The vacancy rate of 7.1 percent was down from the end of 2015 but was up slightly from the first quarter. Occupancy was affected by the shutdown of Quad Graphic’s facilities in Atglen and East Greenville. Aside from these vacancies, leasing activity was strong. There is an additional large deal pending that will take down a major vacancy in Quakertown. New construction has been increasing. In addition to FedEx and smaller spec facilities in Montgomery County, construction will be commencing on a 210,000-square-foot build-to-suit for Turn 14 Distribution in Hatfield. Exeter Property Group has begun site work on the expansion to 8 Lee Boulevard in Malvern.

Southern New Jersey: Industrial demand continues to absorb vacancy and spur new construction. The vacancy rate decreased to 9.5 percent. H&M and AHR moved into new buildings in Burlington County. E-commerce is a growing demand sector with’s lease of a newly completed spec building in Salem County and’s 98,000-square-foot lease in Burlington County. Fieldlink leased space from Dermody Properties in Gloucester County. This building will join the 393,120-square-foot spec building under construction. Liberty’s 613,920-square-foot building in Florence has been preleased by Amazon. First Industrial has 577,200 square feet underway at a neighboring site. VCS Shoes plans a new 683,000-square-foot warehouse in Westampton.

Lehigh Valley, PA: The vacancy rate ticked up during the first quarter but dropped during the second quarter to 3.2 percent. Four spec buildings were completed year-to-date, with two preleased prior to completion by California Cartage and Behr Paints. Only Griffin Land’s 252,000 square feet remain vacant. The six speculative buildings completed in 2015 have all been leased. Five additional spec buildings are under construction, the largest of which is Liberty Property Trust’s 1.2 million square feet. Uline’s two buildings, totaling 1.67 million square feet, will be completed in the third and fourth quarters.

Northeast Pennsylvania: Vacancy was down year-to-date but up during the second quarter to 7.4 percent. Hudson Bay Company leased the 455,000-square-foot building on Keystone Boulevard in Pottsville which had been vacant for three years. ProLogis is expanding this building by 175,000 square feet for HBC. FedEx has 312,356 square feet underway in Grimes Industrial Park. Both FedEx and HBC will be vacating other facilities.

Southern I-81 and I-83 Corridors, PA: The delivery of 3.8 million square feet of spec construction resulted in a jump in vacancy to 7.4 percent. Starbucks leased Hillwood’s 1.2-million- square-foot building in York and UPS leased 355,000 square feet in a 2015 spec building in Carlisle. The I-81/I-78 split in Lebanon County, I-81 Exit 44 in Carlisle, Exit 24 in Shippensburg, and Exit 8 of I-83 have been the most active areas for new development.