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7-26-13

R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news

ISSUE HIGHLIGHTS Volume 25 Issue 14 July 26 - Aug. 15, 2013 Architects & Engineers Spotlight

Cushman & Wakefield and CBRE ink deals Katz Properties acquires two shopping centers for $52.5 million

R

O S E D A L E , MD AND EAST LONG- MEADOW, MA —

Washington, DC. The company also owns the Deer Park Center in Randallstown, MD, which it acquired in 2010. Kaufthal continued, “We are pleased to strengthen our ties to the Baltimore county com- munity through this acquisition and plan to acquire more shop- ping centers in the region.” Mortgage financing for both deals was arranged by Tim Breda of Goedecke & Co. Heritage Plaza was financed by Sentinel Investments behalf of National Life of Vermont. Fi- nancing for Golden Ring Plaza was provided by AIG Global . For Heritage Plaza, Cush- man & Wakefield’s Capital Markets Group , led by Geoff Millerd, Justin Smith and Rob Griffin represented both Katz Properties and the seller in the transaction. For Golden Ring Plaza, both buyer and seller were repre- sented by the CBRE team of R. William Kent and Gary S. Lawrence . ■

Katz Properties has acquired Heritage Plaza in East Long- meadow, MA and Golden Ring Plaza in Rosedale, MD. The single-day transaction, valued at $52.5 million, continues a consistent growth pattern for the company. Heritage Plaza shopping cen- ter in East Longmeadow, MA is a 116,840 s/f supermarket anchored shopping center. Heritage was purchased for $28,450,000 and is 98% oc- cupied, primarily by a 55,573 s/f Stop & Shop supermarket, a 9,389 s/f Party City, a 7,900 s/f Dollar Tree and a 4,800 s/f Panera Bread. Golden Ring Plaza, located in Rosedale, MD is anchored by a 55,330 s/f Giant supermarket and a 25,195 s/f Marshalls. The site is 13 acres and was purchased for $24 million. Daniel Katz , a principal of Katz Properties said, “One of

9-20B

Golden Ring Plaza in Rosedale, MD

our first grocery anchored deals ever was across the border from East Longmeadow in Enfield, CT and we’ve been looking for more opportunities in this mar- ket ever since. This center and Golden Ring Plaza inMaryland both have market-leading gro- cers and an excellent mix of other retailers.” Daniel Kaufthal , a prin- cipal of Katz Properties, said, “We are glad to be returning to

two markets we know well and have had success in. We con- tinue to look for opportunities to purchase grocery anchored retail and add to our growing portfolio.” In fact, last year Katz Proper- ties acquired three grocery an- chored shopping centers in the Metro DC area: Westgate Shop- ping Center and Festival Shop- ping Center, both in Manassas, VA, and East River Park in

Celebrates 90 Years 14-16B

Three, multi-tenant buildings in the Baltimore-Washington corridor MIM-Hayden Real Estate Funds acquires 705,000+ s/f industrial portfolio

26B

Brokerage Directory Spotlight

CONSHOHOCKEN, PA — Miller Investment Man- agement and Hayden Real Estate Investments, partners in MIM-Hayden Real Estate Funds , have announced the

Section C

Directory

8210 Wellmoor Ct., Jessup, MD

9325 Snowden River Parkway, Columbia, MD Fund’s addition of three indus- trial properties strategically located in the heart of the Inter- state 95 Baltimore-Washington corridor. The properties, located at 8210 Wellmoor Court, Jessup, MD (108,480 s/f), 4615 Hollins Ferry Rd., Halethorpe, MD (121,825 s/f) and 9325 Snowden River Parkway, Columbia, MD (475,074 s/f), total just over 705,000 s/f and are nearly fully leased.

4615 Hollins Ferry Rd., Halethorpe, MD

Owners, Developers & Managers..Section B Green Buildings ............................ 21-26B Shopping Centers ......................13-24C

“This portfolio’s location, the buildings’ highly competitive industrial uses and the limited availability of similar assets in such a highly desirable growth market make these properties ideally suited to the Fund’s investment strategy,” said H. Scott Miller , managing part- ner of Miller Investment Man- agement and a MIM-Hayden Funds Principal. Anthony Hayden , principal of both Hayden Real Estate

Investments and MIM-Hayden Real Estate Funds, added, “This acquisition gives the Fund a significant presence in the Baltimore Washington corridor with one transaction. It continues to strengthen our chosen footprint that extends from the greater Philadelphia area south through the area surrounding Washington DC. We are very pleased to have brought this transaction to a successful close quickly.” ■

Upcoming Spotlight August 16 2013 MULTIFAMILY FINANCING

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Inside Cover A — July 26 - August 15, 2013 — Mid Atlantic Real Estate Journal

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COMMERCIAL LOANS SBA 504 & 7A PROGRAMS

NJ STATE EDA LOANS ASSET BASED LENDING CONSTRUCTION LOANS RECENT CLIENT TRANSACTIONS

$600,000.00 Refinance Industrial Building Cape May, NJ

$1.45 Million Refinance

$1.2 Million Acquisition

$1.1 Million Acquisition

Ocean Front Hotel Point Pleasant, NJ

Office Building Green Brook, NJ

Bar & Restaurant Farmingdale, NJ

OUR AREAS OF EXPERTISE: • Industrial Building • Manufacturing • Medical Offices • Multi Family 6-100 Units • Tenant Build-outs • Bar/Restaurant • Land Development • Strip Malls

$2.4 MILLION Acquisition NJ EDA Loan 44,000 Square Feet 10 Year Fixed Term Manufacturing Company South Amboy, NJ

$160,000 SBA 7A Loan Refinance Fishing Boat Belmar, NJ $1.1 Million

$2.5 Million Refinance Bar/Restaurant Menlo Park, Edison

$6.3 Million Refinance Golf Course/Restaurant Stockton, NJ

Line Of Credit Multi-Family Perth Amboy & New Brunswick, NJ

• Unanchored Retail • Business Consulting

Please contact John Burke with any loan scenarios. 732-297-4700 Ext. 11 1882 Rt. 1 North, North Brunswick, NJ 08902 www.sbacoastal.com

Mid Atlantic Real Estate Journal — July 26 - August 15, 2013 — A

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A — July 26 - August 15, 2013 — Mid Atlantic Real Estate Journal

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Accutech Environmental Services. ......................4B Aegis Energy Services. .......................................23B ALT Realty............................................................9C American Architectural Window & Door.............1B Arrow Steel Inc................................................. IC-B Atlantic RE Services........................................... 11A B.R. Kreider & Son...............................................7B Bayshore Recycling.............................................24B BL Cos.. ...............................................................14B Borrus..................................................................16C Breslin Realty. ....................................................18C Brickstone. ..........................................................13C Brokerage Directory. .................................... 30-36C Buccini Pollin Group...........................................25C Business Card Directory.......................................9A C.S. Davidson, Inc......................................... 15-16B Caniford Group...................................................19C Capital Aerials....................................................25B Cenova...................................................................7A Coastal Commercial Group...............................IC-A Commercial Choice Realty. ................................10C Cushman & Wakefield..........................................3C Earth Engineering................................................9B Energy Works......................................................22B Entech Controls. .................................... IBC-A, 24B First Industrial...................................................26C Fortna Auctioneers & Marketing Grp.. ...............5A Fowler Route Co..................................................27B G&C Electronics..................................................17B Genova Burns Giantomasi Webster.....................6B Gilbeaux Assoc., P.C............................................25B Goal Point Realty.............................................. IC-C Griffin Land.........................................................26C H.T. Lyons............................................................19B Haftek CWS. .........................................................2B Hawley.................................................................28C Hiller Industrial..................................................27C Hinerfeld Commerical RE...................... 11A,IBC-C Hollenbach Construction......................................5B Hurley Auctions....................................................6A Hutchinson..........................................................23B Investors RE........................................................12C IREM............................................................. 22-23B Jewel Electric Supply. ..........................................3A JOTTAN Inc..................................................... BC-A Landcore Engineering Consultants.....................8B Landmark Science & Engineering.....................18B Lew Corp...............................................................1A Liberty Environmental.........................................2B M. Miller & Son.....................................................8B Marcus & Millichap..............................................6C NAI Emory Hill.....................................................2C NAI Keystone........................................................8C NAI Summit........................................................26C P. Cooper Roofing............................................. BC-B PennCap........................................................... BC-C Poskanzer Skott Architects................................13B PWI......................................................................12B RD Mgmt....................................................... 14-15C Real Property Capital...........................................3A Remco Realty.......................................................17C Retail Brokerage Directory. ......................... 22-23C Retail Business Card Directory. ........................24C ROCK...................................................................21C SBS......................................................................11B Security Resources................................................2A Sorce Cos....................................................... 11A1,C Subway................................................................21C The Kislak Co................................................. 11A7C Value Cos.........................................................3, 20B Veraxia.................................................................11C Verrill Dana...........................................................5C WCRE....................................................................4C Whitestone Assoc..................................................6B MAREJ A dvertisers D irectory To advertise, call 1-800-584-1062

Mid Atlantic R eal E state J ournal Publisher ............................................................................Linda Christman Publisher ...............................................................................Joe Christman Section Publisher ................................................................Elaine Fanning Section Publisher ....................................................................Steve Kelley Senior Editor/Graphic Artist ................................................ Karen Vachon Office Manager ....................................................................Joanne Gavaza Contributing Columnists .................................................. Raymond Brown ................................................................................................& Daniel Flynn Mid Atlantic R eal E state J ournal ~ Published Semi-Monthly P.O. Box 26 Accord, MA 02018 (Mail) 312 Market Street, Rockland, MA 02370 (Overnight) Periodicals postage paid at Rockland, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, P.O. Box 26, Accord, MA 02018 USPS #22-358 | Vol. 24 Issue 14 Subscription rates: $99 - one year, $198 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Toll-Free: (800) 584-1062 | MA: (781) 871-5298 | Fax: (781) 871-5299 www.marejournal.com The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal

Mid Atlantic Real Estate Journal

By Raymond Brown & Daniel Flynn Small/Medium Size Cos. Should Consider a Proactive Approach to Managing Compliance & Ethics Risks

F

Faced with a signifi- cant increase in penal- ties assessed by regu-

latory agencies around the world and the potential for imprisonment of top-ranking officials, the boards of directors and top management of most large international conglomer- ates have realized that an “ef- fective compliance and ethics program,” including a Chief Compliance Officer reporting directly to the boardroom, is no longer just a “smart option” - it is a necessity. The question is: Do small and medium-sized companies with operations primarily lo- cated within the United States share this need? The prudent and proactive response is that regardless of size, all organizations with op- erations subject to regulation enforced by criminal sanctions should strongly consider de-

veloping a formal compliance program appropriate for its size and operation. What is an “Effective Com- pliance and Ethics Program”? The blueprint for an effective compliance and ethics program can be found in the sentencing guidelines for organizations adopted by the U.S. Sentenc- ing Commission in 1991. These guidelines allow lenient treat- ment for organizations that have a program demonstrating

diligence in preventing and de- tecting criminal behavior and promoting an organizational culture of ethical conduct and compliance with law. The guidelines specify sever- al criteria for such a program, including: Establishment of “standards and procedures to prevent and detect criminal conduct,” Dili- gent oversight of the program content and operation by the continued on page 8A

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Mid Atlantic Real Estate Journal — July 26 - August 15, 2013 — A

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M id A tlantic R eal E state J ournal

ow green is green when we are referring to an individual or a com- pany becoming envi- L By Bob Kilroy, Jewel Electric Supply Co. The different shades of Energy Green

Recently Closed Loans

a new HVAC upon moving in. With these factors in mind we targeted our efforts on decreas- ing power consumption by turn- ing unnecessary items off using photo controls, timers and pow- er-strips that powered down when not in use additionally use 14 watt LED lamps to re- place the current 75 watt lamps to complete the first phase. Af- ter factoring rebates and state incentives we developed a plan that would completely pay for itself in energy saved within a 12 month period, improve the level of light provided and al- low the corporate headquarters

to boast they are an environ- mentally friendly company. Further that initiative with a better recycling program, a energy management system, programmable thermostats and educating their employees on inexpensive ways to save energy at home, this company knocked it out of the park! Where are you in the GREEN spectrum? Where would you like to be? What kind of Return on Investment (ROI) would you consider a home-run? Consider doing one of the fol- lowing or all 10: continued on page 8A

$870,000 Mixed Use Philadelphia, PA 5 years fixed @ 4.5%

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ronmentally responsible? Somemight argue to be considered a true protector of our planet, a green com- pany or in- dividual, we

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must shop only in stores that specialize in organic and locally grown products, walk instead of drive, collect rain water to use later and use only products made from recycled materials. I on the other hand believe in the old adage, “every little bit helps” and “baby steps will get us there”. Every little bit will make a difference; if you are not pre- pared to go big, start out small “baby steps” after all, every little bit gets us closer to our goal. What is our goal? Reduce our carbon footprint by as much as we can as quickly as we can. We should all be working to pre- serve our planet for the future generations. People sometimes shy away from instituting, energy saving initiatives sometimes because of the start-up cost involved. So why not look to the state and federal government to subsidize your efforts? With the federal government offering tax incen- tives and the state offering rebates on projects, now is the time to take action. People often ask me “where do I begin”, when they want to reduce their energy consump- tion. I answer the question with a question, “what is right for you?” There are many way to re- duce your energy load and be environmentally friendly. Start-up cost range from free to sometimes in the millions. The key to embarking on the right program for you is to work with a energy expert who understands your needs, identi- fies your goals and is capable of providing a solution to fit those needs. Take for an example a re- cent commercial customer who wanted their business to be known as environmentally friendly but only had a lim- ited budget to work with. We worked together, identified that they had a five year lease on the building and were provided

Markets we serve: Commercial Industrial Residential

Electrical Contractors State, Municipal & Government Hospital & Institutions Property Management & Hospitality Products we offer: Wire, Pipe, Fittings & Wiring Devices Switchgear, Panelboards, Motor Controls & Motors Lighting & replacement Lamps LED Retrofits, Fixtures and other Energy Efficient Products Sub-Metering Equipment Meters, Tools & Ladders Safety Devices & Equipment Fire Alarms, Smoke Detectors & Burglar Alarms Generators Services we offer: On time Deliveries to meet customer requirements 24/7 Emergency Response Inventory Management Project quotes Lighting & Energy Audits Customer Training

455 Third Street Jersey City, NJ 07302 Ph: 201-653-1613 Fx: 201-653-5470 Bob Kilroy

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Markets we serve:

A — July 26 - August 15, 2013 — Mid Atlantic Real Estate Journal www.marejournal.com M id A tlantic R eal E state J ournal A uctions P Some of Philadelphia’s most derelict properties bring in more than expected Philadelphia Housing Authority raises more than $2 million at Max Spann property auction up and rent it to a low-income family like the family she grew up in. HILADELPHIA, PA — The Philadelphia HousingAuthority will

“Every auction produces a great human interest story. Just seeing how elated Ms. Simms was to buy a property with such sentimental value for her and her desire to create an affordable home for someone else is extremely heartwarm- ing for all of us who worked on the auction,” said Dann. PHA has hundreds of long- term vacant parcels remaining and it is likely they will call on Max Spann to conduct another auction, perhaps as soon as later this year. Max Spann Real Estate and Auction Company is America’s premier real estate auction and advisory company and has been an industry leader in accelerated marketing and consulting services for more than 50 years. The company’s AcceleratedAuctionMarketing Program creates urgency in the marketplace and allows sellers to control the terms and the timing of the sale of their real estate assets. n

soon have another $2 mil- lion, thanks to an auction of 189 scattered site properties hosted by Max Spann Real Estate and Auction Com- pany . Every available property was purchased for prices rang- ing from $1,000 to $170,000 during a fast-paced four-hours- plus event. These were homes and lots that had been vacant and unusable for many years. PHA determined it made the most sense to allow private owners to buy the parcels and put them back into productive use. “Max did an amazing job for us,” said PHA president and CEO Kelvin Jeremiah . “We knew from their performance at our previous two auctions that they have a wonderful ability to generate a crowd and to bring in the highest possible prices for our properties.” The properties auctioned were some of the most derelict in the city of Philadelphia.

Philadelphia Housing Authority CEO Kelvin Jeremiah and Max Spann, Sr. greet before the PHA auction. “We know the key to serv- ing our client is ratcheting up the level of excitement and competition and generating maximum sales prices. It’s es- pecially fulfilling in cases like this one where we are raising money for a public agency that serves struggling families,” said company president Max Spann, Jr. The auction company han- dled every detail of the ef- fort including a substantial marketing campaign, news

Max Spann’s Earle Steeves encourages bidders during the PHA auction.

media outreach, informational sessions, renting a large facil- ity and of course staging the auction and processing buy- ers through the paperwork process. “We love what we do and I think it shows in how we con- duct our business. We execute a precise plan and the results speak for themselves. It’s grati- fying that PHA brought us back for a third auction based

on our results at the previous two,” said Max Spann COO Bob Dann . Among the buyers was one with a special motivation. La- verne Simms had grown up in a PHA scattered site home on North Etting Street in North Philadelphia. When she saw her childhood home on the auction list she decided to come buy it. She won the bidding at $9,000 and now plans to fix it

P lace your B usiness C ard in our A uction D irectory T oday ! C ompanies S pecializing in C ommercial /I ndustrial R eal E state C an P romote T heir C ompany and its S ervices in our T wice monthly D irectory P lease F ill O ut C oupon B elow A nd F ax I t T o 781-871-5299 or E mail lchristman @ marejournal . com

Name: Company: Address: CIty: State:

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Mid Atlantic Real Estate Journal — July 26 - August 15, 2013 — A M id A tlantic R eal E state J ournal A uctions AUCTION Commercial Real Estate 20,000± sf Commercial Building 3041 Freeport Rd, NATRONA HEIGHTS, PA Saturday, August 10 @ 11:00 AM MAIN FLOOR / SHOWROOM: 6,000± SF, 2SHQ)ORRU3ODQZLWK6DOHV2IÀFHV UPPER LEVEL: “6)2IÀFHV&RQI Room & Kitchen

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LOWER LEVEL: 4,000± SF, Showroom, 2IÀFH$UHDV &XVWRPHU:DLWLQJ$UHD &XUUHQWO\/HDVHG SHOP / GARAGE AREA: in the Rear of the %XLOGLQJZLWK:DVK%D\SOXV2IÀFHVDQG 6WRUDJH5RRPV6KRZHUDQG&KDQJLQJ5RRP PARKING WITH OVER 100 SPACES ASSORTED TOOLS & SHOP EQUIPMENT

Tri-level Concrete & Steel Beam Superstructure on 1.17± Acres Located off Rt 28 N. in Western, PA

Visit our website www.FortnaAuctioneers.com for more info & photos of the property!

A — July 26 - August 15, 2013 — Mid Atlantic Real Estate Journal www.marejournal.com M id A tlantic R eal E state J ournal A uctions

110 S. Washington St., Berkeley Springs, WV 25411 On-site Auction: Wednesday August 28, 2013 at 12PM (Noon) EST

Don’t miss the opportunity to acquire The Country Inn, a 65 room historic hotel and spa adjacent to the famous rejuvenating waters of Berkeley Springs State Park and in the midst of many antique stores and fine dining restaurants. Only 90 minutes from Washington, DC area and metropolitan Baltimore.

• 65 Rooms & 2 Single Family Homes (The Treehouse Cottage & The Barker Executive Retreat Center) in Downtown • Full Service Spa Facility with multiple treatment rooms

• Full Service Restaurant • Banquet Space, Bar, Lounges, Large Commercial Kitchen • Possibilities Abound - SELLING ABSOLUTE!

2% Broker Participation

Directions: From I-70, take I-522 south into Berkeley Springs. The property is conveniently located in the center of town, on the right side adjacent to the Berkeley Springs State Park. Inspections: August 6, 15, 20 from 10:00am to 1:00pm & August 28 from 10:00am to Noon. Given the size of the property, each inspection will be a guided tour with each tour starting on the hour.

Matthew Hurley 866-424-3337 Stephen Karbelk 571-481-1037 For Property Information Package visit: www.HurleyAuctions.com or www.AmeriBid.com

Mid Atlantic Real Estate Journal — July 26 - August 15, 2013 — 7A

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M id A tlantic R eal E state J ournal

ont. from page 2A board of directors or other governing author- By Raymond Brown & Daniel Flynn, Greenbaum, Rowe, Smith & Davis LLP Small and medium size companies should consider a proactive approach to managing compliance. . . C

programs, such as environ- mental protection, as well as the laws of other countries impacting U.S. companies, such as the United Kingdom’s Anti-Bribery Act. Does One Size Fit All? In a word, no. Although the same degree of commitment to ethical conduct and compliance is required of companies of all sizes, the official commentary to the guidelines acknowledges that smaller organizations may meet that requirement with “less formality and fewer re- sources than would be ex- pected of large organizations.” Even for a small organization, however, the program must be consciously designed. The small organization must re- alistically assess its risk of criminal and civil violations and confirm that its custom- ized program addresses all program elements identified by the guidelines. The organiza- tion must also ensure that its program can be implemented effectively, sustained over time and proven to regulators in the event of enforcement. There needs to be vigilance for new regulatory and other requirements as they emerge so that adjustments in the com- pliance program can be made, There must be a genuine, ac- tive commitment originating from the top. Some tasks can be delegated, but if top leader- ship does not show an interest, the program’s significance is seriously undermined. Are the Benefits Tangible? An effective compliance and ethics program helps recognize

and manage civil and criminal compliance risks that could devastate the organization’s bottom line, if not the organi- zation itself. Even the best compliance program may be unable to as- sure compliance by all employ- ees all the time. Misconduct by one individual can trigger civil or criminal enforcement against the entire organiza- tion. The existence and effec- tiveness of an organization’s compliance and ethics pro- gram, even if it fails to prevent a particular violation of law, is a major consideration taken into account by prosecutors and agencies when deciding whether to: • take enforcement action against the organization, • pursue criminal sanctions instead of non-criminal ones, or • bring charges against the organization’s high-level of- ficers or directors. An effective compliance and ethics program is becoming the standard of care expected of an organization’s top officers and directors. Providing such a program puts the organiza- tion, its officers and directors in a better position to defend shareholder and other litiga- tion arising out of a significant enforcement matter. Of critical importance: Com- pliance after enforcement has been triggered is almost always more costly and with fewer options than when it has been addressed proactively. What Types of Compliance Risks Can Be Managed by an Effective Compliance and Eth- son-Bergen Light Rail and NY Waterway Ferries. The space will serve as the administra- tive offices for Bayonne Medical Center who has relocated. The transaction was orches- trated by Jaime Weiss and Matthew Weiss of Weiss Re- alty Inc. of Moonachie. “Bayonne Medical Center, which manages the medical staff and top notch medical fa- cilities of three Hudson County hospitals including Christ Hos- pital, Bayonne Medical Center and Hoboken University Medi- cal Center was drawn to this building due to the attractive

ics Program? According to >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90

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