The Greater Philadelphia office market is seeing a few exciting development projects and steady interest in investment opportunities. Southern New Jersey The office sector in Southern New Jersey has exhibited overall strong fundamentals, underpinned by increased new investments from outside of the Greater Philadelphia region and economic inflows to support local economic expansion. The U.S. economy continues to grow moderately and add jobs, with the national unemployment rate dropping to a 16-year low. These conditions are helping to generate demand that is reverberating throughout the real estate sector, especially for office space. Office leasing activity has been on an upswing in 2017. The overall tone is positive, and vacancy rates have been stable for the past few quarters, hovering just above 10 percent. The second quarter posted approximately 395,155 square feet of new leases and renewals. This is a 24 percent increase in activity from the first quarter and an incredible 58 percent increase compared to the second quarter a year ago. New leases represented approximately 43.4 percent of all deals for the quarter. Notable deals ranged from 5,000 to 31,000 square feet. The office investment and sales market is also showing increased activity. Buyers continue to take advantage of …
PHILADELPHIA — Houston-based Hanover Co. has opened Hanover North Broad, an apartment building located at the corner of North Broad and Callowhill streets in Philadelphia. The property features 339 studio, one- and two-bedroom apartments, as well as 17,000 square feet of retail space. Units feature designer kitchens with stainless steel appliances, granite countertops and luxury finishes, including frameless cabinetry, expansive windows and nine-foot ceilings. On-site amenities include a residents’ clubhouse with private gym, lounge and media room, as well as landscaped courtyards with fire pit, grilling areas, dining areas and a bocce ball court.
HORSHAM, PA. — The Verrichia Co. has acquired the final three parcels necessary to begin development of Horsham Village Plaza, a retail center located at the intersection of Route 611 and Blair Mill Road in Horsham. The center will feature a 5,585-square-foot Wawa convenience store with six fuel pumps and a 12,900-square-foot CVS/pharmacy, both of which are slated to open in fall 2018. Additionally, the center will feature three pad sites, totaling 17,200 square feet, which are available for lease through Metro Commercial.
PITTSBURGH — Walker & Dunlop has closed a $14.9 million construction loan for EVEN Hotel, located within the historic Kaufmann’s department store building in downtown Pittsburgh. The borrower is Reception Hotels and Resorts, which acquired the fifth and sixth floors for the hotel. The hotel will be part of the Kaufmann’s Grand on Fifth, a master redevelopment the former department store that will feature retail, hospitality, multifamily and office space. The loan closed with Orix USA on behalf of Reception Hotels and Resorts. Jacob Cohen of Walker & Dunlop secured the non-recourse loan that features three years of interest-only payments.
WARRENDALE, PA. — Teen clothing retailer rue21 has completed its financial restructuring and emerged from the Chapter 11 bankruptcy process. The Warrendale-based company began to close approximately 400 underperforming stores in April, and filed for Chapter 11 bankruptcy on May 15. Kirkland & Ellis LLP acted as rue21’s legal advisor, Rothschild Inc. acted as investment banker and financial advisor, and Berkeley Research Group acted as restructuring advisor throughout the process.
WARMINSTER, PA. — J.G. Petrucci Co. has opened Jacksonville Station, a 151-unit apartment community located at 375 Jacksonville Road in Warminster. The eight-building property features 74 one-bedroom and 77 two-bedroom apartment units with high ceilings, stainless steel kitchen appliances, quartz countertops and in-unit washers/dryers. Situated on 10 acres, the multifamily complex features on-site surface parking, a state-of-the-art fitness center, resort-style swimming pool and resident clubhouse with flat-screen televisions, couches and meeting spaces.
HAZLE TOWNSHIP, PA. — Trammell Crow Co. and its partner, Allstate, through real estate investment manager CBRE Global Investors, have broken ground for Humboldt East Trade Center, a speculative warehouse building located within Humboldt Industrial Park in Hazle Township. The 440,504-square-foot building will feature 36-foot clear heights, employee and trailer parking, and a flexible design that can accommodate multiple tenants with separate entrances. Completion is slated for the first quarter of 2018. Sean Bleiler and Bill Wolf of CBRE are handling project leasing and marketing.
SCRANTON, PA. — Millett Real Estate, as owner and manager, has opened Home2 Suites by Hilton Dickson City Scranton, located at 914 Scranton-Carbondale Highway in Scranton. Featuring 70 guest suites, the hotel also offers complimentary internet access, communal spaces, a complimentary breakfast, Home2 MKT for grab-and-go items, and Spin2 Cycle, a combined laundry and fitness area. The pet-friendly hotel also features an indoor pool and whirlpool.
WHITEHALL, PA., AND RUNNEMEDE, N.J. — Gebroe-Hammer Associates has brokered the sale of a two-property multifamily portfolio in Whitehall and Runnemede. Joseph Brecher, David Jarvis and Adam Zweibel of Gebroe-Hammer represented the seller and buyer, a private investor, in the deal. Orchard Drive Associates sold Orchard Drive Apartments, located at 1239 Washington St. in Whitehall, for $18.2 million. The buyer was a private investor. The community features 264 one- and two-bedroom units ranging from 782 square feet to 1,013 square feet. TNJ Properties acquired Presidential Courts from Presidential Associates LP for $15.5 million. Located in Runnemede, Presidential Courts features 268 garden-style apartments in a mix of one- and two-bedroom layouts. The sellers of the properties are part of the same umbrella organization, however each property operated under separate entities. The buyers of the properties are also under the same umbrella organization, but operated under separate entities.
PITTSBURGH — Faros Properties has received $127.5 million in financing for Nova Place and 106 Isabella in Pittsburgh. Gerard Sansosti and Nick Matt of HFF secured the five-year, floating-rate loan through Wells Fargo for the borrower. Nova Place is a former urban mall that was converted into office use in the early 1990s. The complex now offers 1.3 million square feet of office space and is 86 percent occupied by a variety of tenants, including PNC Bank, Microbac, Continental Broadband, Confluence, Union Fitness, United Healthcare and Alloy 26. 106 Isabella features 87,050 square feet is a located adjacent to the Warhol.