Tuesday, December 31, 2019

Dermody Properties Completes Construction on LogistiCenter at Midway South

National private equity firm Dermody Properties has completed construction on LogistiCenter at Midway South, a 304,000-square-foot industrial facility under construction in Bethel Township, Pennsylvania.

The property at 9024 Old Route 22 is suited for manufacturing, warehouse/distribution and e-commerce companies. The facility includes a 36-foot clear ceiling height, 44 dock doors, a 54- by 60-foot loading bay, 89 trailer stalls and 151 parking spaces.

Dermody Properties East Region Partner Gene Preston said in a statement, "This facility offers well-designed, efficient space for manufacturing, warehouse, distribution and ecommerce companies. The property’s proximity to I-78 offers outstanding access to all of eastern Pennsylvania and the greater New York consumer population bases."

Dermody Properties has invested in more than 83 million square feet of industrial space since its launch in 1960, according to its website.

Monday, December 30, 2019

Impulse Dynamics Inks Deal for Headquarters Near Philadelphia

Medical device company Impulse Dynamics has leased 18,000 square feet of office space for its headquarters at Gateway Business Park in Mount Laurel, New Jersey.

The 78,599-square-foot building at 523 Fellowship Road was built in 1986. Spanning 5.8 acres, the single-story facility is less than 12 miles from downtown Philadelphia.

Chewy to Bring 1,000 New Jobs, 1M SF Fulfillment Center to Northeastern PA

by John Jordan Globest.com
State officials announced earlier this week that the growing online pet merchandise company Chewy will be expanding its operations in Lackawanna County that will create at least 1,000 new jobs in the state.

The firm, which is co-headquartered in Dania Beach, FL and Boston, has committed to spend approximately $35 million in its expansion in Lackawanna County with a 1-million-square-foot build to suit location in Archbald Borough.
The new fulfillment center will be Chewy’s third Pennsylvania location. The company maintains customer service centers in Hollywood, FL and Dallas; pharmacy operations in Louisville, KY and nine fulfillment centers across the country

Chewy will be located in a facility in the Valley View Business Park, a mixed-use business park, part of a 1,300-acre development project, developed by The Greater Scranton Chamber of Commerce, using several funding sources, including support from the Commonwealth of Pennsylvania through various loan and grant programs.

Chewy received a funding proposal from the Pennsylvania Department of Community and Economic Development for the project. The proposal includes a $582,000 workforce development grant. In addition to the 1,000 new jobs, the company has committed to retain 2,401 existing jobs throughout the state over the next three years.

“We’re thrilled to continue our growth in Pennsylvania with the opening of Chewy’s third fulfillment center in the state and tenth in the country,” said Pete Krilles, VP, corporate real estate and facilities for Chewy. “The launch of this new location will create 1,000 new, full-time jobs, deepening our economic investment in the northeast Pennsylvania region. In addition, it will further extend our delivery network across the Northeast and Midwest, enhancing the customer experience by providing even faster order delivery times.”

Monday, December 23, 2019

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PA Apartment Complex Trades for $5.7 Million

by John Jordan Globest.com
The 96-unit Meadowbrook Lane Apartments community here has traded for $5.7 million.

The 96-unit development at 881 Meadowbrook Lane was built in 1987 and is situated on 4.25 acres. The complex features 96 one-bedroom units in two-story row apartments. Each unit includes a washer and dryer, individual entrances and a balcony or patio with one parking space.
The buyer of the property was not identified.

“This was an excellent opportunity for the purchaser to acquire a value-add property and enter a new market. The purchaser plans to complete renovations on units as they turn over.”
The property is located in south central Pennsylvania in the Cumberland Valley region. Chambersburg is surrounded by large Amish and Mennonite farm communities. While the cost of living is low in the region, the economy is mainly agriculturally-based with manufacturing being the largest sector in terms of payroll.

Major employers in and near the town include Summit Health Services/Chambersburg Hospital, Chambersburg Area School District, Franklin County government, Ventura Foods, Wilson College and Letter Kenny Army Depot and Camp David nearby.


The Canopy Philadelphia Center City to Open in Spring 2020

by John Jordan Globest.com
National Real Estate Development LLC reports that it will be adding a new 236-room Hilton-branded hotel to its East Market development in Center City here.

The Washington, DC-based firm, which is the development arm of National Real Estate Advisors, has announced the addition of Canopy Philadelphia Center City, which will be part of the Hilton portfolio. The hotel is scheduled to open in the spring of 2020 at 1180 Ludlow St.
Designed by BLT Architects and being developed as an adaptive reuse of the historic Stephen Girard Building, Canopy Philadelphia will feature a signature restaurant and bar program, which will include an American brasserie with French influence. Additionally, amenities and services will include the Canopy Bike Program, a complimentary evening tasting of wine, spirits and beer, and approximately 3,600 square feet of indoor and outdoor meeting space.

“Canopy is thrilled to be joining the East Market neighborhood in Center City Philadelphia,” says Gary Steffen, global head, Canopy by Hilton. “Our hotels are located in the most desirable neighborhoods across the globe, so when it came time to determine a location for our new property here in Philadelphia, the choice was easy. East Market has everything visitors look for, including immediate access to world class shopping, restaurants, popular tourist destinations and public transportation.”
Launched in 2014, there are currently 12 Canopy properties open around the globe and more than 40 under development across 13 countries and territories.

Bounded by Market, Chestnut, and 11th and 12th streets, the East Market project has transformed the city’s primary east-west corridor into a full block of stores, popular restaurants, creative office spaces, including Design Center Philadelphia, MOM’s Organic Market, Wawa, Iron Hill Brewery, City Fitness, District Taco and WeWork. The project also includes two brand new luxury apartment towers—The Ludlow and The Girard.

The East Market project is owned on behalf of a client by National Real Estate Advisors, LLC; Joss Realty Partners, a New York-based private real estate investment firm; Young Capital LLC, a Philadelphia-based real estate investment firm affiliated with Classic Management, Inc.

Thursday, December 19, 2019

Nine Building Medical Office Portfolio in Four States Changes Hands

By John Jordan Globest.com
A nine-building medical office portfolio of properties located in Pennsylvania, Illinois, Minnesota and Virginia was traded.

The portfolio totals approximately 470,000 square feet. The buyer or seller or financial terms of the transaction were not disclosed.  The unidentified buyer purchased the property in a sale that closed Dec. 13.

“This portfolio offered the opportunity to buy a critical mass of medical assets with exposure to some of the top health systems in the country, including Advocate Aurora Health, Einstein Health and INOVA Health System."
The nine-building portfolio included the 95,043-square-foot Advocate Sherman Medical Building in Elgin, IL; the 36,413-square-foot Oak Lawn Medical Building in Oak Lawn, IL; the 60,558-square-foot High Pointe Health Campus in Lake Elmo, MN; the 71,685-square-foot Einstein Medical Building in East Norriton, PA; the 35,405-square-foot Sterling Medical Building in Sterling, VA;, 118,081 square feet across Pavilion I & II in Duluth, MN and 52,105 square feet across CentreMed I & II in Centreville, VA. The portfolio featured more than five years of weighted average lease term.

Solomiany marketed the debt to various life insurance companies, banks and debt funds. The buyer ultimately decided to bifurcate the portfolio into two separate portfolio loans to achieve the best terms.

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TF Cornerstone Enters Philadelphia Market with Macy’s Retail Space Buy

by John Jordan Globest.com
TF Cornerstone of New York City has entered the commercial market here with the purchase of the retail space at the storied Wanamaker Building here.

The retail component of the historic property at 1300 Market St. totals 435,000 square feet across three floors that is occupied by Macy’s.
TF Cornerstone’s acquisition covers the ground, second, and third floors of the 12-story building. The space has ground-floor frontages on all four sides of the building, including Market and Chestnut streets.

“At TF Cornerstone, we are always looking for unique opportunities in key and growing markets to expand our diverse portfolio,” says Jake Elghanayan, principal of TF Cornerstone. “The Wanamaker Building, and in particular its Grand Court, serves as a historic and cultural landmark in the center of Philadelphia and we are excited to be associated with its past and a part of its future.”

No financial terms of the transaction were disclosed. The Wanamaker Building is owned by Rubenstein Partners and Amerimar Enterprises Inc.

TF Cornerstone’s portfolio throughout the Northeast now totals more than 12 million square feet in New York City, the Washington, D.C. region, and most recently in Philadelphia.

Elsewhere, Globest.com reported that TF Cornerstone and Trinity Place Holdings had  entered a joint venture to acquire 250 North 10th St., a 234-unit apartment building in Williamsburg, Brooklyn.

Monday, December 16, 2019

Washington Prime Group Focused on Tenant Diversification (Video)


Counter Capital Management Buys Apartment Building in Philadelphia’s Old City Neighborhood

Counter Capital Management, an out-of-state joint venture between real estate industry veterans Christian Dalzell and Mukang Cho, has purchased Shirt Corner Apartments in Philadelphia’s Old City neighborhood from local investment shop Alterra Property Group for $22 million, or about $355,000 per unit.

The four-story building at 251-259 Market St. includes 62 apartments and one commercial space leased to Snap Kitchen, a national health food chain. Completed in 2015, the four-star property includes a mix of studio, one- and two-bedroom floorplans ranging from 423 to 1,395 square feet.

Amenities include bicycle storage, a fitness center, a package room and off-street parking.

"Old City has been one of the strongest markets in Philadelphia over the last 18 months in terms of rental growth. We believe this neighborhood will have the most upside in rent growth over the next five years," Wellar said in a statement.

Friday, December 13, 2019

Smead Capital Management Picks West Conshohocken for East Coast hub

Jeff Blumenthal Reporter Philadelphia Business Journal
A Seattle-based investment adviser has selected the Philadelphia region for its East Coast expansion.

Smead Capital Management in January will open an office in West Conshohocken, saying it will serve as an East Coast sales hub to provide better service to clients across the eastern seaboard. By planting a flag in the northeast, Smead said it is also reducing the time needed for travel to serve clients in the region.

With just over $2.2 billion in assets under management, Smead is ranked No. 16 in the Puget Sound Business Journal’s latest List of the largest asset managers. In Philadelphia, that would be good enough for No. 23.

Smead’s decision to open an office in the Philadelphia suburbs is due to its attractive cost of living and housing, tax assessment in the region and accessibility to Smead’s client base via planes, trains and automobiles.

The office will be located at Four Tower Bridge — at 200 Barr Harbor Drive near the intersection of River Road and Matsonford Road. A spokesman for the firm declined to share the size of the office or length of the lease but said they plan to stay in the building "for the long haul."

Scott Herdemian, a 2011 graduate of Villanova University who has led East Coast sales for Smead since 2014, will oversee the office and receive a promotion to senior vice president. He will be joined by two other employees in building an East Coast team.
Full story: https://tinyurl.com/vx9efb6

Wednesday, December 11, 2019

Geodis Signs Large Industrial Lease in Allentown, Pennsylvania

Transport and logistics company Geodis has leased a 223,507-square-foot distribution building at Prologis Lehigh Valley West in Allentown, Pennsylvania.

The single-tenant facility at 7189 Ambassador Road includes 42 loading docks, two drive-in bays, 52- by 50-foot column spacing and a 32-foot clear ceiling height. Built by the landlord, Prologis, in 2018, the four-star property spans 25.3 acres less than 12 miles from Lehigh Valley International Airport.

Philly Office Tower Secures $388M Refinancing

by John Jordan Globest.com
The joint venture of Nightingale Properties and Wafra Capital Partners has secured a $388-million in refinancing deal for its 1500 Market St. office tower from JP Morgan.

Sources closed to the deal say the loan includes a large component for leasing costs and other property improvements.
1500 Market St. is a 1,759,410 square-foot, Class A office and retail asset in the Market Street West submarket.

1500 Market is located in the heart of Philadelphia’s CBD, and is the only office complex in Philadelphia CBD that features its own on-site subterranean parking garage, as well as underground access to Philadelphia’s best-in-class transportation network (SEPTA). The complex’s Centre Square offers numerous food options, retail offerings, conference facilities and a fitness center.
1500 Market consists of two towers, rising 36 floors in the East Tower, and 43 floors in the West Tower, which are connected by a three-story atrium and a 450-spot parking garage that offers direct access to Philadelphia’s regional rail and subway lines.

The property also is known for the Claus Oldenburg “Clothespin” sculpture that stands at its front plaza and, as a result, it is often referred to as the Clothespin building.

“The Philadelphia office market has seen immense momentum and rent growth over the past few years and the well capitalized Nightingale and Wafra partnership is in ideal position to capitalize on the favorable market dynamics,’ says Walker & Dunlop’s Rosenberg.

The Nightingale/WCP JV is currently the second-largest office landlord in Philadelphia, the largest privately-owned office landlord in Philadelphia, controlling approximately a quarter of the office inventory in the CBD. Wafra is heavily invested in Philadelphia as Nightingale’s capital partner at 1500 Market, 1635 Market, 1835 Market and 1500 Spring Garden. Outside of their joint venture with Wafra, affiliates of Nightingale hold JV interests in The Bellevue and 1418 Walnut in Philadelphia, where it also serves as the property manager.

Tuesday, December 10, 2019

Real Estate Tax Calculation - How To Calculate Property Taxes For Commercial Real Estate (Video)


$70M Gift Will Lead to New Biomedical Research Facility at Thomas Jefferson University

by John Jordan Globest.com
Thomas Jefferson University reports it has received a $70-million gift from philanthropists Sidney and Caroline Kimmel that will facilitate the construction of a new biomedical research building on the campus here.

“This gift will have a profound and lasting impact on Jefferson’s ability to further pursue scientific discovery,” said Mark Tykocinski MD, provost and EVP for academic affairs and the Anthony F. and Gertrude M. DePalma dean, Sidney Kimmel Medical College at Thomas Jefferson University. “The Caroline Kimmel Biomedical Research Building will serve as a magnet for scientific talent and will bolster our status as an R2 National Research University.”
The new facility will expand Thomas Jefferson University’s research capacity and, along with the Bluemle Life Sciences Building and Jefferson Alumni Hall, will create a “research corridor” along Locust Street.

Being physically connected with Bluemle will foster connections with researchers in the Sidney Kimmel Cancer Center, where Caroline Kimmel serves as a member of the Advisory Council, and the larger Jefferson research community.
The Kimmels have given more than $200 million over the years including: providing cornerstone funding to establish the Sidney Kimmel Cancer Center in 1995, as well as transformational support for research into the prevention of cardiovascular disease, and Jefferson’s largest-ever gift of $110 million to name the Sidney Kimmel Medical College at Thomas Jefferson University in 2014.

Sidney Kimmel established apparel company Jones New York, and during the 1970s and 1980s became one of the major players in the women’s apparel industry. Jones went public in 1991, adding many notable brands to its line including Anne Klein, Nine West, Gloria Vanderbilt and Stuart Weitzman. Kimmel served as CEO until 2003 and as chairman until 2014, when The Jones Group was sold for $2.2 billion.

Thomas Jefferson University is also home of the Kanbar College of Design, Engineering and Commerce, and delivers 160 undergraduate and graduate programs to 8,400 students in architecture, business, design, engineering, fashion and textiles, health, science andn social science.

Commercial Real Estate Vectors 2020 Part 1 & 2 (Video)

Part 1 Part 2 www.omegare.com

Friday, December 6, 2019

Black Friday, Thanksgiving Weekend Sales Bolster PREIT’s Strategy

by John Jordan Globest.com
PREIT reports robust sales at its recently opened redeveloped properties during Black Friday and the Thanksgiving weekend.

The locally-based REIT states that sales during that prime selling period set up their recently opened redevelopments—Fashion District Philadelphia, Woodland Mall and Plymouth Meeting Mall—for a strong holiday season.
In just over two months since opening, Fashion District in Philadelphia has welcomed more than 2 million visitors, an achievement for a property marching toward stabilization. Upcoming openings of key destination tenants, including Round 1, Wonderspaces, Primark and Sephora are likely to bolster these results, PREIT officials state.

The opening of the highly-anticipated Woodland Mall expansion wing has been a success. Traffic for the Black Friday weekend was up 29% at the Grand Rapids, MI complex over the same period last year with many retailers reporting sales in excess of their goals.

Recent openings at the Woodland Mall include high-impact tenants, many of which are exclusive and new-to-market such as Von Maur, Urban Outfitters, The Cheesecake Factory, Tricho Salon and Black Rock Bar & Grill.

As part of its ongoing anchor repositioning effort, PREIT welcomed new retail, dining and experiential concepts for consumers at its Plymouth Meeting Mall. Most recently, Dick’s Sporting Goods, Burlington, Miller’s Ale House and Edge Fitness have opened their doors in the former Macy’s space. Benefitting from a strategic location in the Philadelphia suburbs, traffic was up 24% over last year’s Black Friday weekend at the shopping center in Plymouth Meeting, PA.

“The work we have done in strengthening our portfolio continues to deliver exceptional results,” said Joseph F. Coradino, CEO of PREIT. To experience this notable upswing in traffic at the properties where we’ve made significant investments is a testament to the strength of our strategy and the potential for a sustained, long-term impact on sales productivity and shareholder value.”

Wednesday, December 4, 2019

CAPREIT Adds Suburban Philadelphia Apartment Complex to Growing Portfolio

CAPREIT has purchased the 220-unit Vinings at Christiana apartment complex in Newark, Delaware, from Denver-based Alden Torch Financial for $24.7 million, or about $112,000 per unit.

The garden-style complex at 200 Vinings Way includes a mix of one-, two- and three-bedroom units ranging from 717 to 1,097 square feet in 10, three-story buildings. Completed in 2001, the property spans 15.4 acres less than four miles from University of Delaware.

Amenities at the complex include a business center, clubhouse, fitness center, laundry facilities and storage space.

Headquartered in North Bethesda, Maryland, CAPREIT has closed approximately $5 billion in real estate transactions to date, according to its website.

Astoban Investments Buys Freeman's Former Headquarters for $14.3 Million

Local full service development firm Astoban Investments has purchased the former headquarters of Freeman’s auction house in Philadelphia’s Center City from a private family trust for $14.3 million, or about $330 per square foot.

The 43,284-square-foot, six-story building at 1808-1810 Chestnut St. was completed for the auction house in 1924.

Astoban Investments said in a June application to the Philadelphia Historical Commission that it wanted to convert the property into condos.

Freeman's plans to move to an office building anchored by Aramark at 2400 Market St. on the Schuylkill waterfront.

Real Estate Expenses - Above-The-Line vs. Below-The-Line Costs in CRE (Video)


Sunday, December 1, 2019

Vastgood, RW Partnership Spends $127M for Giant Supermarket-Anchored Portfolio in PA

by John Jordan Globest.com
A partnership of Vastgood Properties, LLC of Port Washington, NY and RW Partners, Inc. of Conshohocken, PA has acquired a portfolio of seven Giant supermarket-anchored shopping centers in mid-to-eastern Pennsylvania for $127 million.

The deal was announced by New York City-based Meridian Capital Group, which arranged $97 million in acquisition financing for the new ownership. The 10-year CMBS loan features a rate of 3.87% and five years of interest-only payments with the balance on a 30-year amortization schedule. The transaction was negotiated by Meridian VPs Bryan Kallenberg and Meyer Ovadia, who are both based in the company’s New York City headquarters.
The portfolio consists of Giant supermarket-anchored shopping centers spanning a total of 548,482 square feet. The properties include Aston Center in Aston, PA; AYR Town Center in McConnellsburg, PA; Creekside Marketplace in Hellertown, PA; Parkway Plaza in Mechanicsburg, PA; Scott Town Center in Bloomsburg, PA; Spring Meadow Shopping Center in Wyomismesing, PA and Stonehedge Square in Carlisle, PA.

The Giant stores represent approximately 75% of the portfolio’s total gross leasable area and generate 80% of the portfolio’s revenue. Giant Food Stores, LLC is a wholly-owned affiliate of Ahold Delhaize N.V., the fourth largest retail grocery company in the world. All the properties feature long-term leases for the Giant stores and renewal options extending decades.