Tuesday, April 30, 2019

Executive Personal Computers Inks Deal at Leigh Valley Industrial Park

Executive Personal Computers, a data security and environmental risks solutions company, leased Gelcor Realty's 85,680-square-foot warehouse at Lehigh Valley Industrial Park in Bethlehem, Pennsylvania.

The single-story structure at 2980 Avenue B comprises 13 loading docks, one drive-in bay and a 20-foot clear ceiling height. Built in 1966, the facility spans 5.7 acres less than a mile from Lehigh Valley International Airport.

REITs View Opportunity Zones as Source of Long-Term Capital for Development (Video)


Monday, April 29, 2019

Office Market Update with Reis (Video)


Misfits Market Inks Deal for New Headquarters in Pennsauken, New Jersey

Misfits Market leased Industrial Investments' 140,800-square-foot distribution building in Pennsauken, New Jersey.

The location will serve as the new headquarters and distribution center for the direct-to-customer produce delivery service company.

The single-story structure at 500 Griffith Morgan Road comprises 29 loading docks with six levelators, three drive-in bays, 40- by 40-foot column spacing and a 24-foot clear ceiling height. Built in 1972 and renovated in 2015, the 4-Star facility spans 7.3 acres less than a mile from the Pennsauken train station.

Arrival of Driverless Vehicles Looming Large Over Lehigh Valley's Shipping Workforce

Experts forecast that automated trucking is expected to begin transforming the shipping industry within the next five years, just one of the many ways shippers are looking to wring costs out of the business and keep consumers happy by offering more 'free' shipping options for online orders.

Driverless commercial vehicles developed by Waymer, Google and Tesla have already completed cross-country trips in tests, and the Department of Transportation recently signaled it plans to review and modify its rules governing vehicle design standards to allow the use of self-driving vehicles while also ensuring road safety.

Overwhelming economic incentives make some form of automation for trucking inevitable. Untethered to labor laws limiting driving hours, shippers are expected to be able to move substantially more produce and products across far greater distances. Delivery speeds will likely increase as vehicles only have to stop for fuel or maintenance.

In some cases, shippers are planning to program trucks to form wind-resistant platoons on the road, potentially saving millions of dollars in fuel. But the most radical transformation will likely be a drastic reduction in labor, which could save shippers billions of dollars annually, according to some projections.

Close to 100,000 Pennsylvanians drive big rigs for a living. And while the expanding use of automation and driverless vehicles will certainly affect the industry nationally, the impact could be especially widespread in central and northeast Pennsylvania.

According to Oxford Economics, close to 40,000 people work in transportation in the Lehigh Valley market, accounting for more than a quarter of the job market. Roughly 70% of jobs added in Scranton, Pennsylvania since 1990 are in the transportation industry, with similar figures in Reading and Lebanon.

And CoStar data shows developers have added more than 63 million square feet of warehouse and distribution space throughout this region since 2010.

Annual salaries for Pennsylvania truckers average around $45,000, according to the Bureau of Labor Statistics, making it one of the region's highest paying positions for those without a college education.

Many secondary markets in Pennsylvania were previously battered in the early 2000’s when outsourcing and automation eliminated several thousand manufacturing jobs. The recession struck just a few years later, eliminating close to 12,500 jobs in Scranton alone, and Costar shows that most of these markets only returned to pre-recession employment levels in 2018.

While widespread job displacement among truckers likely won’t occur overnight, if pilot programs prove successful, its progress will likely become relentless. A 2018 Goldman Sachs report estimates that once fully implemented, automated driving could eliminate 25,000 jobs a month.

And if history is any guide, displaced workers without college degrees will struggle to transition into new careers. Retraining programs have proven troublingly ineffective. A 2016 Department of Labor survey found that 30% of displaced manufacturing workers were unable to find new positions, and opted to drop out of the labor force or go on disability.

2018 Economic Impacts of Commercial Real Estate Development (Video)


Class A Office Asking Rates Hit All-Time High in Greater Philadelphia Region

by Steve Lubetkin, Globest.com
Class A asking rates throughout the region hit an all-time high of $30 per square foot, propped up heavily by the Central Business District and the Philadelphia suburbs, according to first quarter 2019 office market report.
“Landlords typically prefer to see demand before increasing rents and last year was a record year for demand. As a result, landlords responded accordingly and asking rents spiked at the start of 2019. Enhancing this trend is the high level of investment activity in the office sector, with landlords expecting increased returns.”

During the first quarter, however, the net absorption rate decreased by 19,467 square feet from the previous quarter as a result of corporate downsizing, although this was largely canceled out by positive demand growth in the surrounding suburbs, most notably in Northern Delaware.
“The decrease in occupancy did not come as a surprise, as large tenants continue to reduce their footprints or consolidate their employees within a single location,” says Cauffman.

On the capital markets front, the record sale of 1735 Market Street in Center City, Philadelphia helped keep office sales volume for the first quarter in the metro area in-line with recent quarterly figures. Other notable deals during the first quarter included the sale of Spring Mill Corporate Center in Conshohocken for $131 per square foot and Valley Forge Park Place for $106 per square foot.


Net-Lease Blue Bell CVS Trades Hands at Almost $7M

by Steve Lubetkin, Globest.com
The sale of a CVS store, a 10,125-square-foot triple-net lease property with a new 18-year lease, was arranged at 1799 DeKalb Pike in Blue Bell, PA. The asset sold for $6.8 million at a 5.4% cap rate.
The seller was a private developer that built the store in 1999 and had owned it ever since.

“This transaction shows the strength of the tenant and the location..The buyer was in a 1031 exchange and paid full price for the asset, because they understood the value of the property and this location.”
The CVS is a drive-through location with 47 parking spaces, situated on a major retail corridor running between East Norriton to Montgomeryville.

Friday, April 26, 2019

Camden Tower gets new name

Natalie Kostelni Reporter Philadelphia Business Journal
The owners of the newly developed Camden Tower, a $245 million, 395,000-square-foot office building along Camden’s waterfront, have given the structure a new name: Triad1828 Centre.

Affiliates of NFI Corp., Conner Strong & Buckelew, and the Michaels Organization own the building. Liberty Property Trust sold the partnership the development rights. It will house each of their headquarters and the companies. Their combined 1,000 employees are expected to move in this June. The companies are currently headquartered in nearby South Jersey towns and the development of Triad1828 is part of a series of other buildings that have been constructed in recent years in the city.
Full story: https://tinyurl.com/Camden4-2019

Thursday, April 25, 2019

CRE Capital Markets Update (Video)


Investing in real estate with REIT's (Video)


Two Chestnut Street Redevelopment Sites trade for $21M

by Steve Lubetkin, Globet.com
The sale of two redevelopment sites on the 4200 block of Chestnut Street in the University City neighborhood of Philadelphia we arranged. 4233 Chestnut Street, a 37,627 SF parcel and 4219-4223 Chestnut Street, a 12,441 SF parcel are both zoned CMX-4, which is favorable for multifamily, student housing or mixed-use development.
University City has experienced significant development recently. According to the University City District’s 2019 report: “in the past year, 26 new development projects in University City opened their doors or made significant progress towards completion. Together, this represents 4.5+/- million square feet of office, residential, academic, research, restaurant and medical space that will enhance the neighborhood’s already robust inventory.”

“University City is one of the strongest markets in Philadelphia. We continue to see the growth of the University of Pennsylvania and Drexel University driving the demand for housing in this submarket and driving growth and redevelopment further west.”
The University City submarket has excellent occupancy and is one of the most walkable and bikeable neighborhoods in Philadelphia. Both sites are within walking distance to parks, cafes, and restaurants, as well as to SEPTA’s Market/Frankford train line to Center City, Philadelphia.

“Trends being seen in University City include growing household incomes and a growing job market. There is a rising demand for quality market-rate housing.”

Wednesday, April 24, 2019

Jako Enterprises Leases 4-Star Warehouse in Philadelphia

Jako Enterprises, a local apparel retailer, leased Ricatto Property Management's 4-Star warehouse in Philadelphia.

The 201,456-square-foot facility at 7601 State Road comprises 16 loading docks, one drive-in bay, 60- by 55-foot column spacing and a 26-foot clear ceiling height. Built in 1968 and renovated in 1977, the building spans 8.3 acres less than a mile from the Holmesburg Junction train station.

Commercial Real Estate Design Trends from Perkins+Will (Video)


84-Unit Montgomery County MF Package Sells for $8.56M

by Steve Lubetkin, Globest.com
The $8.56 million sale of 84 multifamily units in the  Applegate Apartments and Applecore Apartments traded in Montgomery County.
Applegate Apartments, 72 units, is located at 434 West Vine Street in Hatfield, PA. Applecore Apartments, with 12 units, is located at 464, 472, and 480 2nd Street in Souderton, PA. Both towns are known for being excellent suburban locations and close to major employment centers.

The buyer, a limited liability company that was not identified. The buyer plans to begin renovations to upgrade the property and increase rents, so they are more in-line with the market.
“Value-add multifamily is still in high demand. Buyers are willing to accept low current returns for an opportunity to improve a property and generate higher rents.”

The seller was a family trust, also not identified. They had owned the property for decades.

“The seller was the second generation of the original developer of the property, who had owned it for 48 years,” says Townsend.

Monday, April 22, 2019

24-Unit MF Property Changes Hands in Allentown, PA

by Steve Lubetkin Globest.com
Mountain Lane Apartments, a three building, 24-unit apartment property  was sold at 2901 Ithaca Street, Allentown, PA, consisting of three 1-bedroom units, nineteen 2-bedroom units and two 3-bedroom units. The buyer, seller, and financial terms were not disclosed.

The seller was an individual/personal trust, who had owned the property for 21 years. The team also secured and represented the buyer, a private company. The buyer plans to renovate all the units and address the capital improvement needs of the complex in order to increase rents substantially.

“This transaction shows the strength of the Lehigh Valley market and the overall apartment market, given how quickly the property was approached by investors and the speed at which it went under contract. Investors from New York and Philadelphia are starting to look toward the Lehigh Valley as a means to obtain higher yields where demographics continue to improve, and development is picking up.”

Friday, April 19, 2019

Cash on Cash Return - Commercial Real Estate Investing Return Metrics (Video)


The National, Mixed-Use Multifamily, Opens in Former Restaurant Supply Company Site

by Steve Lubetkin, Globest.com
The National, a 220,000 square foot, 192-unit mixed use apartment building, has opened in Philadelphia’s Old City neighborhood, adjacent to Elfreth’s Alley, a historic landmark and one of the most heavily foot-trafficked sites in Philadelphia.
The Harman Group, which specializes in structural engineering and parking planning and design, provided structural engineering services for the six-story project. The project was developed by The Buccini/Pollin Group in partnership with AFL-CIO Building Investment Trust and designed by architect BartonPartners.

“We are honored to be a part of the team who brought this historic location back to life,” say Jason Squitiere, associate and project manager at The Harman Group. “The Harman Group’s extensive mixed use and historic renovation experience allowed us to determine the best structural systems for the building’s different uses, so we could optimize the amenity, retail, and residential spaces for Old City.”
The structural system designed by The Harman Group used structural steel for the first floor and parking garage, supporting cold-formed bearing walls and wood trusses for the upper five floors. THG also provided parking planning consultation to the architect.

The National features 4,000 square feet of retail and amenity spaces on the first floor, sweeping views of the Benjamin Franklin Bridge and the Delaware River and a two-level underground parking garage with space for 60 cars. At the northwest corner of the site, the former parking lot has been transformed into a public park for residents and visitors to Elfreth’s Alley.

The former National Products Company site has a deep history in Philadelphia and is recognized by the Philadelphia Historic Commission for its iconic orange tile façade, which was remarkably replicated in the new facade on the North 2nd Street elevation. The new building pays homage to the site’s former occupant by including the original stainless-steel sign from the restaurant supply building.

Thursday, April 18, 2019

Equity Multiple for Commercial Real Estate Investing (Video)


Strategic 2019 Real Estate Decisions (Video)

Part 1 Part 2 www.omegare.com

Endurance Acquires 243K SF Hazleton, PA Industrial

by Steve Lubetkin, Globest.com
An affiliate of Endurance Real Estate Group and CenterSquare Investment Management have acquired 594 Can Do Expressway, a 242,960 square foot, 32-foot clear warehouse/distribution building located in Hazleton, PA from Quad Graphics, for a price industry sources was probably between $6 and $7 million.
“594 DC is a great value-add/redevelopment lease-up play that fits within Endurance’s long-term sweet spot of re-positioning well-located, functional excess corporate real estate assets."

“As part of the re-branding and kickoff of our planned multi-million dollar renovation project, we are renaming the building the 594 Distribution Center. We will be commencing our planned improvements later this month and expect to have our re-positioning completed by the end of third quarter.”

Part of the planned improvements at the building include the installation of a new roof, the addition of thirteen dock doors on the eastern side of the building, installation of an ESFR sprinkler system, new LED lighting throughout the warehouse area and various office, paving and landscaping improvements. At the completion of the Building renovation, the project will provide a total of 24 loading doors, one drive-in door, 20 trailer spots and 185 parking spaces.

594 DC is located just one mile from Exit 143 of I-81. This location offers excellent transportation links to Interstate Highways and is within 250 miles of most major markets in the Northeast and Mid-Atlantic regions. As part of the eastern and central Pennsylvania industrial market, the northeast Pennsylvania industrial market is an established center for national retail distribution and consumer goods companies in the Eastern United States.
While primarily successful as a big-box market in past years, there has been a recent uptick in tenant requirements in the 100-300,000 square-foot range. The Northeast Pennsylvania Industrial Market development pipeline of industrial projects has very little planned to accommodate those requirements in class A buildings. 594 DC will offer tenants a quality option with state-of-the-art design specifications, at a lower cost than its class A competitors.

Tuesday, April 16, 2019

Monthly Economic Outlook — April 2019 (Video)


How Do REITs Work? (Video)


Agree Realty CEO: Don't look at retail in a binary framer (Video) #CNBC


Carlyle/Alterra JV Acquires Commonwealth MF in Philadelphia

by Steve Lubetkin Globest.com
A joint venture partnership of The Carlyle Group and Alterra Property Group has acquired The Commonwealth, a 98-unit, high-rise apartment building at 1201 Chestnut Street, Philadelphia, PA. The dollar amount of the transaction was not disclosed.

“We have seen a significant uptick in interest for core-plus properties in the Philadelphia region. This was a great opportunity for investors to buy a core-plus building at an attractive basis with upside in one of the best locations in Center City Philadelphia. With a lack of velocity of core-plus deals of this size in the area, the property drew significant interest from local, regional and national investors.  We conducted 31 tours of the property, which resulted in offers from 18 different companies.”

The Commonwealth was originally constructed in 1906 and underwent a full restoration in 2012 completed by Alterra Property Group. The property’s Midtown Village location has earned it a Walk Score® of 99.

The 15-story building consists of 98 residential units averaging 711 square feet and 8,247 square feet of ground-floor retail.  Units feature stainless steel appliances, granite countertops, European maple cabinetry, wood plank flooring and full-size washers and dryers.  The residential component is 99% occupied and the retail component is fully leased to 7-Eleven and Mitchell & Ness Nostalgia Co. for the American sports clothing company’s only brick and mortar location.

Monday, April 15, 2019

Ag-Tech and what it means for the Commercial Real Estate Industry (Video)

Alexandria Real Estate CEO breaks down what ag-tech means from CNBC.


Keystone Begins Construction of SORA West in Conshohocken

by Steve Lubetkin, Globest.com
Keystone Property Group has begun construction of SORA West, a mixed-use, transit-oriented development in Conshohocken, PA that will house the new global corporate headquarters of AmerisourceBergen.
The global healthcare solutions company is relocating to an 11-story, 429,122-square foot office tower that will serve as an anchor for the wider SORA West development.

Designed by Gensler Architects, the office tower is the first step in building the multi-faceted, transit-oriented development centered around a vibrant public plaza. The plaza will be framed by the 200-foot tower, a 165-key hotel with rooftop restaurant and  lounge, a 1,500+-space parking structure to support these facilities, and the existing 139-year-old Conshohocken Firehouse, which will be recreated as a gastropub with an indoor/outdoor experience.
“This marks a momentous occasion for both the development of SORA West and the borough of Conshohocken, as we begin to realize the collective vision of borough leaders, the Montgomery County Redevelopment Authority, and Keystone,” says Keystone Property Group CEO Bill Glazer. “The tower that begins to rise today will serve not only as a headquarters for a globally recognized, innovative company like AmerisourceBergen, but a centerpiece for a wider, mixed-use development that can fuel a new sense of vibrancy and economic growth in the borough for decades to come. ”

AmerisourceBergen is among the largest pharmaceutical distributors in the world, providing a critical link between manufacturers and healthcare providers. The company was most recently ranked #12 on the annual Fortune 500 list, with more than $160 billion in annual revenue and employs more than 21,000 workers across 50 countries worldwide.

The company will bring associates from two existing Pennsylvania locations into the downtown Conshohocken office tower, serving as its sole tenant. Occupancy is expected to begin in 2021.
“Today’s groundbreaking brings me great pride because it’s a tangible example of our commitment to our associates and the greater Philadelphia community,” says Steve Collis, chairman, president and CEO of AmerisourceBergen. “I believe that we have the best workforce in the industry, and I cannot wait to see what our future holds, especially as we continue to draw the best and brightest talent from this wonderful region. Through the AmerisourceBergen Foundation’s hyper-local grant program, we will deepen our connections in the community and partner on initiatives that support the health and vibrancy of our region.”

The AmerisourceBergen Foundation, the nonprofit charitable giving arm of AmerisourceBergen, launched a hyper-local grant program that will provide funding to community-based organizations within a five to ten-mile radius of the new headquarters.

Tenants at SORA West will enjoy convenient connections throughout Eastern Pennsylvania, including Philadelphia, from the adjacent Conshohocken SEPTA train station. The property is also located in proximity to Routes 76 and 476.

Keystone was named developer of the site in 2013 after an RFP process administered by the Borough and the Montgomery County Redevelopment Authority (RDA).

SORA West is the latest large-scale mixed-use project developed by Keystone. Its portfolio also includes Washington Square, Philadelphia, PA, which is bounded by three iconic, historic properties developed by Keystone: the Curtis, the Washington, and 100 Independence Mall West.  The Curtis is an historic publishing landmark in Center City Philadelphia reimagined as a dining, shopping, residential and commercial destination, and nearby 100 Independence Mall West, the future home of Macquarie Investments, has been transformed with a dynamic indoor/outdoor experience for pedestrians, with the popular Independence Beer Garden and a La Colombe coffee café.

Additional info: MoreThanTheCurve.com confirmed Friday that the Zavino Hospitality Group will be the operator of an eventual restaurant that will open within the historic firehouse located at SORA West in Conshohocken.

Thursday, April 11, 2019

Global Uncertainty Creates REIT Investment Opportunities (Video)


H&M Expands in Pottstown, PA

by Steve Lubetkin, Globest.com
H & M, Hennes and Mauritz, one of the world’s largest fashion retailers, famous for offering fashion-forward apparel at affordable prices in a sustainable way, will open a new location this summer in Pottstown, PA.
Measuring approximately 23,000 square feet, the new location at Philadelphia Premium Outlets is set to open in the summer of 2019.

The new H&M location will offer Pottstown residents a one-stop shopping destination for quality clothing for the whole family, with collections for ladies, men and teens, as well as separate “store within a store” sections for accessories. The Philadelphia Premium Outlets location will also carry the H&M Kids collection for newborns to 14-year-olds.
H&M will add 20 employees at the new store and will continue a corporate commitment to sustainability. In 2013, H&M launched Garment Collecting, an in-store clothing recycling project and was the first global fashion company to implement such a program.  In 2018, H&M U.S. diverted more than three million pounds of unwanted textiles from landfills.

Wednesday, April 10, 2019

Timing of SOFR Transition Likely to Be Staggered (Video)


The Stoler Report - The Current State of Retail in the Region (Video)


Charter school pays nearly $14M for former Crown Holdings HQ

Natalie Kostelni Reporter Philadelphia Business Journal
Isaac Newton Foundation Inc., an affiliate of MAST Community Charter School, has paid $13.7 million to buy One Crown Way, the former 238,000-square-foot headquarters of Crown Holdings Inc. in Northeast Philadelphia, according to property records.

The building and its 40 acres were sold by One Crown Properties LLC, which is affiliated with Simone Realty Inc. of Lawrenceville, N.J. It had acquired the property at 12345 Roosevelt Blvd. in 2017 for $9 million.

MAST intends to use the property for a third location and what it refers to as MAST III. It will start out this fall as a kindergarten through eighth grade school and over time expand to include a high school as well, according to the school’s website.

This will serve as the charter school’s third location. Its MAST II school will relocate to 6501 New State Road this fall from the former St. Williams Catholic School, MAST’s original location is at 1800 Byberry Road. A representative from MAST wasn’t immediately available for comment.

Charter schools in the city and suburbs are frequent buyers of real estate and may become an even bigger part of the real estate sector if proposed federal educational funding programs are altered under the current administration. The ability for a charter school to buy real estate was granted by Pennsylvania beginning in 2002. Prior to then, a third party or foundation affiliated with the school was required to purchase any real estate the charter would own. The state began issuing charters in 1997.
Full story: https://tinyurl.com/y5s5qth3

9-building Center City portfolio sells

Natalie Kostelni Reporter Philadelphia Business Journal
A portfolio of nine Center City apartment buildings accumulated over the last roughly 50 years has sold for $28 million.

The seller was Stolker Properties and the buyer was PMC Property Group. Both are Philadelphia real estate companies. The properties sold were: 1329 Lombard St.; 415-417 S. 10th St.; 1634-36-38 Lombard St.; and 1825, 1912 and 2011 Spruce St. Combined, the buildings had 100 apartment units, a commercial unit and four dedicated parking spaces.

Portfolios of this nature seldom come up for sale in Center City and, as a result of that, they often garner a tremendous amount of interest. The Stolker portfolio was not an exception. Nearly 200 confidentiality agreements were signed, 75 tours given and more than 20 offers were made. It was put up for sale last fall.
Full story: https://tinyurl.com/y33g9c5y

Monday, April 8, 2019

Life Time Fitness to add 45,000 square feet, co-working in KoP

By Natalie Kostelni  – Reporter, Philadelphia Business Journal
Life Time Fitness Inc. is planning to expand its King of Prussia facility to include its Life Time Work concept.

The Minnesota-based health club chain is proposing to construct a two-story, 45,000-square-foot building that would house co-working space next to its facility on Swedesford Road and Old Eagle School Road. It is also proposing to expand its parking, something that members say is sorely needed at the existing facility.

Earlier this year, Life Time Fitness paid $4.9 million for a 5.38-acre parcel at 750 E. Swedesford Rd. that sits adjacent to its existing King of Prussia property. That is where the company plans to build the addition.

In 2015, Life Time bought 14.5 acres from CertainTeed Corp. and built a $30 million, 150,000-square-foot resort-style Life Time Athletic fitness facility on the site that opened in June 2017. It has attracted hundreds of members and considered a success, according to people familiar with it.
Full story: http://tinyurl.com/y6gldlr9

The Stoler Report - CRE Investment Sales Update (Video)


Apartment complex at former Destination Maternity site to break ground

By Natalie Kostelni  – Reporter, Philadelphia Business Journal
When Alliance HSP breaks ground at the end of this month on an apartment building at Sono, it will be the culmination of a five-year effort to redevelop the Northern Liberties property.

It will also highlight how much has changed at that corner of the city over that time and the property’s redevelopment is both a reflection and cause of that. The development, called Sono, also evolved, underscoring how initial ideas sometimes don't pan out.

When the Bryn Mawr real estate firm bought the 220,000-square-foot building at 5th and Spring Garden streets for $14 million in the fall of 2014, the company had plans to turn it into creative office space. That idea wasn't embraced by the market but may have been ahead of its time. During that same period, Arts and Crafts Holdings, a Philadelphia real estate company, has been gobbling up properties in and around Sono and a few blocks away, creating an emerging office submarket. Nonetheless, the lack of office activity at the property prompted Alliance HSP to shift gears.
Full story: http://tinyurl.com/y2h2obeb

Thursday, April 4, 2019

Cost Segregation Strategies with Bedford (Video)


ReNew REIT Gets $159M From KeyBank to Acquire Senior Housing, Including 3 in PA

by Steve Lubetkin Globest.com
KeyBank Real Estate Capital’s Healthcare Lending platform provided ReNew Investors and affiliated entities more than $159 million in acquisition financing comprised of $85 million in Fannie Mae loans, $16 million in Freddie Mac loans and a $58 million bridge loan, to acquire eight seniors housing communities in a series of four separate transactions.
The acquired properties total 813 units including independent living, assisted living and memory care in Michigan, Pennsylvania and Virginia.

Toledo, OH-based ReNew is a privately held company investing in independent living, assisted living and memory care communities.
KeyBank did not disclose the names and locations of the facilities involved in the transactions, but according to Real Capital Analytics, a proprietary research database that tracks commercial real estate  transactions, ReNew acquired three properties in Pennsylvania in February 2019 using Fannie Mae financing of at least $55 million, the 137-unit Keystone Villa at Ephrata, 100 N State St Ephrata, PA; 125 units at Keystone Village at Fleetwood, 501 Hoch Rd., Blandon, PA; and 247 units of senior housing at Keystone Villa at Douglasville, 1152 Benjamin Franklin Hwy., Douglassville, PA. The three properties were acquired from Capital Health Group, Media, PA.

The Real Capital Analytics database did not list transactions in Michigan and Virginia that could be connected to the KeyBank financing.

KeyBank established a corporate lending relationship with ReNew in 2018 acting as lead arranger and administrative agent for the company’s inaugural $100 million corporate credit facility, which was subsequently increased to $150 million in December 2018. The recent financings are consistent with Key’s approach of tailoring capital solutions to client’s needs and includes balance sheet lending (corporate financing, bridge lending) and permanent commercial mortgage solutions (Fannie Mae, Freddie Mac, Life. Co, FHA). The recent financings were comprised of a mix of attractive fixed- and floating-rate debt all with extended interest-only payments, which allows ReNew to maintain a low cost of capital.
Laura Conway and Brandon Taseff of Key’s Institutional Real Estate Healthcare Group led the financing of the balance sheet lending products and teamed with Charlie Shoop of Key’s Healthcare Banking Commercial Mortgage Group who arranged the permanent financing with Fannie Mae and Freddie Mac.

Tuesday, April 2, 2019

Philadelphia's Lehigh Valley Retail Submarket Maintains Growth and Momentum

Close to 20,000 square feet of retail space in Trexlertown was filled this week, after signing three tenants to move into vacant spaces in the suburban Philadelphia suburb.

The new tenants include the Pittsburgh-based Steel City Gyro, Mavis Tire and Supply and Active Learning Center.

The uptick in leasing interest is partly due to the nearby Hamilton Crossing, a fully occupied shopping center leased to major tenants including Dick’s Sporting Goods, Target and Whole Foods. The center has spurred additional retail interest across the area.

Hamilton Crossing’s success and Trexlertown’s growth are positive signs for the Lehigh Valley market, which continues to maintain growth and momentum. The market’s retail vacancy rate is under 4 percent, and unlike nearby central and northeast Pennsylvania markets, developers haven’t shied away from bringing new space to the market.

Nearly 2 million square feet of new developments has been added to the market since 2010, during a period when new growth was slowed across the country. Further bolstering the region’s forecast are strong economic and population growth tailwinds. The Lehigh Valley market has a high concentration of wealthy suburbs with average annual incomes over $100,000 and strong buying power. The region has added close to 40,000 jobs since 2010, while the nearby Scranton and Reading markets have only added about 30,000 jobs combined.

New residents have flocked to the area due to the increase in jobs, and Lehigh’s population climbed to nearly 20,000 since 2010. Downtown Allentown’s revitalization has attracted national attention, and the area is also building up trendy, modern multifamily communities.

Monday, April 1, 2019

Colony Capital Acquires LogistiCenter at Midway for $79.5 Million in Bethel PA

Global real estate and investment management firm Colony Capital purchased a 4-Star warehouse in Bethel, Pennsylvania, from Dermody Properties. LogistiCenter at Midway sold for $79.58 million, or about $74 per square foot.

The 1.08 million-square-foot facility at 270 Midway Road comprises 222 loading docks and levelators, four drive-in bays, 54- by 50-foot column spacing and a 36-foot clear ceiling height. Developed by the seller in 2018, the single-story structure spans nearly 74 acres adjacent to I-78.

Headquartered in Los Angeles, Colony Capital (NYSE: CLNY) currently has more than $43 billion in assets under management, according to its website.

REIT Sector Performance Update (Video) Pt2


AutoLenders is Launching First PA Dealership in Exton

by Steve Lubetkin Globest.com
AutoLenders will move into Pennsylvania with its first dealership, following the acquisition of 305 W. Lincoln Highway in Exton, PA.

The 33,000 square foot modern auto dealership facility occupies 7.3 acres at a highly trafficked and newly signalized intersection in the growing Exton market of Chester County in Philadelphia’s Western Suburbs. The site was formerly Otto’s BMW and then MINI of Exton, and will continue to operate as an automobile sales and service facility.

AutoLenders opened in 1990 and has grown into New Jersey’s number one volume pre-owned car dealership chain, with 6 locations and a 75,000 square-foot reconditioning and certification center in Central and Southern New Jersey. AutoLenders uses its direct relationships with regional banks to cherry pick the best pre-owned, one-owner vehicles.
Additional sites in the tri-state region are being sought for the firm’s expansion plan.