Many clients come to Zimmel Associates of Edison, NJ in need of industrial space for manufacturing and/or warehousing.
Recently, David Zimmel, CEO, Zimmel Associates, handled the $10.5 million sale of 25 Linden Ave., East Jersey City, NJ, featuring an industrial building of 105,000 s/f, which included 12,000 s/f of office space, tailboard loading and a tenant with several years left on their lease. The industrial building is in a great location, right off the highway, close
By the end of 2017, it appeared as if the American shopping mall, once an integral part of suburban life, was facing certain demise. With rent rolls suffocated by anchor bankruptcies and closures, the outlook of the once beloved asset class seemed glume. Malls anchored by one of the big four: Sears, J.C. Penney, Macy’s or Kohl’s were sure to realize bankruptcy or closure sooner than those with the foresight and resources to swap out the big box risk for “experience” tenants s
Volatility continues in the retail real estate environment with many traditional retailers using the bankruptcy process to reorganize to right size themselves or in some cases leave the market all together. When space is returned to a landlord it can present opportunities to reinvigorate a shopping center with fresh concepts that are trending up. However, the bankruptcy tenant may leave the landlord with an arrearage for both the pre- and post-bankruptcy amounts owed that it
Property taxes imposed by local governments and school districts can be a serious burden on every type of property, including income-producing properties such as shopping centers, apartment complexes, and office buildings. The burden has become even greater due to the “reverse” assessment appeals that have become a popular income generating strategy for municipalities and school districts. Although the Pennsylvania Supreme Court took a scalpel to the reverse appeal process in
The status of Qualified Improvement Property (QIP) under the Tax Cuts and Jobs Act (TCJA) has been an unresolved issue since the TCJA was passed, and taxpayers have long been hoping for an update. Momentum is beginning to build towards the long-awaited Congressional technical correction.
On 3/14/19, U.S. Senators Pat Toomey (R-Pa.) and Doug Jones (D-Ala.) introduced the Restoring Investments in Improvements Act (RIIA), which would firmly establish the recovery period of QIP
It seems to me that one third of 2016 has slipped by very quickly, but not without quite a bit of news in the world of commercial real estate finance. A few notable observations so far this year, in no particular order, are as follows: 1.Bank consolidation – 2015 saw a flurry of bank acquisitions in the Delaware Valley market, and the pace has only increased in 2016. Off the top of my head Susquehanna Bank, National Penn Bank, Penn Liberty Bank, East River Bank, Continental B
The term “bad boy” guaranty is used in certain circumstances to describe a guaranty to be provided – usually by individuals, not an entity – subject to certain triggers for liability (such as insolvency) in connection with, most often, real estate financing. Traditionally, it was widely believed that a “bad boy” guaranty was a contingent liability that should be disregarded for purposes of determining whether the guarantor bore the economic risk of loss for the underlying deb
So you need cash but selling your business is not an option but the market is at an all-time high for real estate prices. A possible solution is a sale-leaseback. The owner sells the real estate that the company owns to an investor and then leases the space back on an agreed upon price and time period.
The lease would be common to most leases. They can be fixed or have a gradual yearly increases and most are triple-net-lease arrangements. For the seller it gives the busines
Delaware is famously kind to business thanks to benevolent corporate laws and low taxes. In fact there are more businesses registered in Delaware than there are people. More than 50% of all publicly traded firms in America have chosen the state as their legal home. The State of Delaware’s economy is primarily driven by service oriented companies, with 25% of the population employed in finance or business services or a higher proportion than in any other state.
Real estate cycles are a funny thing, hind sight is 20/20 and when looking back at the history of real estate cycles ups and downs we always find a clear and concise cause and effect. Whether we look back just eight years ago to the financial crisis or 15 years ago to 9/11 we can pinpoint the actual cause for a downturn in the market.
So now what? What if we can predict or “forecast” the future recession? What would we guess it to be? Could it be the following:
In a hot apartment sales market where properties continue to sell for premium prices, buyers are increasingly turning to “fixer-uppers” as a means to achieve higher yields.
The robust performance of the apartment sector in recent years has drawn abundant investment capital into the sector from both domestic and foreign buyers. Nationally, vacancies continue to hover at about 4.5%, while national effective rent growth rose a further 4.7% during 2015, according to Reis. The N
With the real estate market still on a rollercoaster ride, prices are still struggling to recover from a crippling recession, and catastrophic events, like Superstorm Sandy, are still wreaking havoc. There is a vital need for a greater understanding of the market and the ramifications of things like overbuilding, regulatory constraints, environmental and economic impacts, and affordable housing. Dr. Donald Moliver, Dean of the Leon Hess Business School, was the founder and th
The Morris County—and Northern New Jersey—office market is in transition, driven by macro economic and demographic trends. While leasing activity has picked up, the impact on net absorption has been minimal. A key factor has been the suburbs vs. urban markets scenario – responding to the desire of many millennials to flee suburban areas for urban, transit oriented communities, a trend known as the new urbanism. Millennial workers are using their influence as the future of the
With an exciting start to 2016 at Hillmann Consulting, we have launched a new service line focused on construction services to compliment the exemplary performance of our engineering and environmental divisions. Hillmann Consulting is pleased to announce the appointment of Stephanie Cesario as the managing director of construction services. Ms. Cesario’s leadership brings 15 years of professional experience in architecture and construction management in the New York Metro are
Who is your tenant? This should be the first question asked by any landlord that is about to commence negotiating a letter of intent for a commercial lease. The value of any lease is dependent on the credit of the tenant and any guarantors, and the tenant’s financial ability to pay the rent that is owed during the entire term of the lease. Many companies operate under numerous entities, some of which are formed only to be the tenant under a specific lease. If a default occurs
So after I cleaned up the coffee I unceremoniously sprayed on my desk during a conversation with a long-time colleague of mine, I decided finally to put pen to paper (so to speak). He had been telling me of an interview he had for a lease administration position where he was informed that they were looking for someone more ‘strategic.’ Strategic? For a lease admin position? Are you kidding me? I had long suspected (and am now quite positive) we’ve beaten this term to death in
Daily 1031Crowdfunding.com hears of tragic stories from clients as we help them find a solution. An all too common story sounds something like this: Jack completed a 1031 exchange in 2006, purchasing a portion of a $20 million multi-family apartment complex in Chicago as one of 35 Tenant in Common (TIC) owners. In 10 years, Jack had nothing but difficulty with the investment. First, he almost missed his exchange deadline because the loan approval process was delayed after one
Imagine being able to replace water lines or even an entire drainage system without causing a major disruption on your property. While most property owners have experienced broken underground pipes and the associated expense and disruption of excavation, few have taken advantage of the techniques of Trenchless Technologies. Trenchless Technology involves the installation, replacement or renewal of underground utilities with minimum excavation and surface disruption. For close
The development of a seniors housing community for Independent Living and Assisted Living with Memory Care is in great demand across the country. Today, nationally, there are 54 million people over the age of 65; eventually, half will require specialized assistance with daily living activities to serious medical management for chronic end of life illnesses. Alzheimer’s or dementia diseases will affect 33% of those seniors needing specialized assistance and will require furthe
For several years now, the accounting standard-setting body in the United States, the Financial Accounting Standards Board (FASB), and the international accounting standard-setting body, the International Accounting Standards Board (IASB), have been working on various convergence projects in an effort to achieve more uniform accounting standards worldwide. Not surprisingly, lease accounting has consistently been among the topics in this initiative. It was – and is – among the