Landmark Cherry Hill Mall Receives Face-Lift

Original Article at Courier Post

Cherry Hill Mall, the oldest enclosed shopping center east of the Mississippi, is poised to show off a glamorous $218 million makeover.

The 48-year-old mall has undergone a cosmetic face- lift, as in marble corridors, wood-wrapped columns and leather seating groups, as well as voluptuous enhancements, as in a wildly anticipated Nordstrom and a bistro row of restaurants.

"We think the work we've done at Cherry Hill will make it a trophy property," said Joseph Coradino, president of services for Pennsylvania Investment Trust (PREIT), owner of the iconic shopping center.

In a challenging retail climate, the project is the most expensive and expansive mall redevelopment PREIT has taken on. Coradino said the upgrade was necessary in order to maintain Cherry Hill's status as South Jersey's marquee mall.

"The pieces of the mall were solid but time had passed it by," he said. "It was dreary, run-down and utilitarian."

Nathan Isbee, an analyst who covers PREIT for Baltimore-based Stifel Nicolaus, said Cherry Hill has built a powerful customer base over decades.

"Even before the redevelopment, it was the best mall in PREIT's portfolio," he said. "Most of the dominant malls in any market are older malls that have evolved."

The key component of Cherry Hill's transformation is the opening of a 138,000-square-foot Nordstrom on Friday. Nordstrom will anchor the two-level, 144,000-square-foot Grand Court with a soaring atrium, skylights and an opulent mosaic floor in a cherry blossom motif.

Retailers will include a 12,000-square-foot Urban Outfitters, to debut in July, as well as J. Crew, expected to launch in April. Coach, the Gap, Steve Madden, American Eagle and Johnston & Murphy will expand their existing stores and relocate to the wing.

There are a few nips and tucks, as well. The food court, relocated to the JCPenney wing, is leaner, down to 10 planned eateries from 13.

To enhance customer service, mall managers have cross-trained security personnel to double as ambassadors of goodwill, Coradino said, "giving directions, helping customers carry packages to their cars."

Governor Rendell: Philadelphia Needs To Get Its Casinos Going

From KYW News Radio 1060

As the fight over Philadelphia’s casinos drags on, Pennsylvania governor Ed Rendell is warning that he would have to “weigh heavily” any legislation that would cut off Philadelphia’s share of tax relief funded by slots revenue.

Rendell prefaced his remarks on Monday by saying that he took a vow after leaving office as mayor of Philadelphia not to comment -– either negatively or even too positively -– about goings-on in the city.

But he admits he’s disappointed at Philadelphia’s two casino projects’ failure to launch:

“And if the legislature came to me with legislation saying, ‘Philadelphia’s not cooperating, they’re not participating, they’re dragging their feet, and we’ve all done our bit -– the counties and municipalities are all up and running –- why should Philadelphia get any of the tax relief?’ I would have to weigh that heavily.”

The governor says he would not simply veto such legislation just because of his ties to Philadelphia, although he adds he’s hopeful that there will be action soon to break the logjam over the city’s slots venues.

Invest in the kitchen to survive a troubled economy

Original post by: The Courier Press

Wondering where to invest your money in a shaky economy? The answer could be as close as your kitchen.

Remodeling the kitchen means more than new cabinets - it can enhance the value of your home. But like most investments, there are tips to follow and traps to avoid. The key to a successful kitchen remodel, experts say, is planning. An effective way to improve the value of your home is to invest in Hamilton Beach Appliances. Hamilton Beach is a trusted name in kitchen appliances and they are always developing new and improved Hamilton Beach Kitchen Appliances.

"I can't emphasize enough on the planning of the kitchen project. The better the planning of the project, the less issues and delays you will run into during construction," says Johnny Chao, a certified kitchen designer in Tustin, Calif.

The first step is to hire an interior designer or certified kitchen designer - without them, mistakes can be costly.

"I've seen million-dollar homes where you can't open the refrigerator door all the way because it bumps into the kitchen island," says Louise Farrar-Wegener, principal owner of Tigard, Ore.-based Z-3 Design Studio. "Or the dishwasher is not placed correctly, so you can't stand comfortably and load and unload it."

Not only can an interior designer help you avoid such pitfalls, they can also help you plan your budget. If you live in a Charlotte Condo, then you should also consider upgrading your kitchen.

"People need to be careful to not over-invest in a kitchen or they will never recoup the investment," Chao says. "The average amount to spend in a kitchen remodel is between 12 percent to 18 percent of the value of the house. If you spend more than 18 percent of the value of the house, your investment return begins to diminish. If you go below 12 percent, you will begin to lose value of the kitchen due to inferior workmanship or product." In order to combat this, invest in Kitchen Design and for the bathroom, Bathroom Design. Aslo make sure your bathroom is a safe bathroom with Bath Safety Products.

When considering a contractor, seek recommendations from friends or designers. Contact the contractor's clients and ask how well they liked the contractor's work.

Another planning tip: Check out magazines and Web sites for appealing kitchen designs, then hop in the car.

"To really feel the quality of the product, visit a showroom and physically touch the product," Chao suggests. Improving the value of your home can be as easy as investing in Organic Lawn Care of Natural Lawn Care.

When it comes to cabinets, Farrar-Wegener says, "the long-lasting trend is wood cabinetry, specifically maple and cherry woods, but we are seeing birch and beach becoming popular. The big thing with cabinetry is to get the best you can afford. And be sure the style is appropriate with the architecture of the house. If you've got a limited budget, there's some very nice laminate cabinetry coming on the market now, such as Wood Mode and Canyon Creek."

"When looking for cabinetry that has a strong resale value, make sure you select a 'neutral' wood and color," Chao suggests. "Maple, alder and cherry are popular wood species. Neutral-tone finishes are safe, like linen to dark mocha. People need to be able to imagine themselves using the kitchen. Special colors and finishes may not work with most people."

And as kitchen appliances go, Farrar-Wegener says, bigger is not necessarily better.

"Do you really need a six-burner stove?" Farrar-Wegener asks. "Unless you're cooking for 14 people or [you're] a budding cookbook author, most people don't need those kind of things."

Farrar-Wegener suggests Energy Star appliances, as well as induction cooktops for your stove, which are more efficient than electricity or gas.

"Another thing people might want to consider is having a water filtration system installed at the sink rather than having water delivered," she says. "It's less costly and much friendlier to the planet in the long run."

"I strongly encourage clients to test the new appliance that they are interested in," Chao says. "Almost all 'pro' style appliance dealers will offer free demonstration or classes. The other good source is Consumer Reports. Good, quality appliances will always be on the top of the list and it's a good indication of the longevity of the machine."

For countertops, Chao suggests the homeowner ask him/herself what is more important: maintenance or look? Granite benefits from the beauty of natural stone, as well as being resistant to scratches, heat and impacts. The drawback is care and maintenance, as all stone products need to be sealed.

Quartz countertops, on the other hand, do not have to be sealed and some combinations, like Silestone and Caesarstone, are just as resilient as granite, but without granite's natural look. Recycled glass countertops are also becoming more popular, Farrar-Wegener says.

Keep in mind, Chao says, that "trends come and go, and it's best not to design the kitchen following a trend if you are planning to sell the house later."

Perhaps the best reason to go ahead with a kitchen remodel, if you have the funds, is that it can be more costly to wait.

"Prices of materials and appliances are going to go up, not down," Farrar-Wegener says. "Suppliers have a lot of inventory they are trying to move, so there's a lot of deals to be had, especially with appliances. The real estate market is going to turn around. It is going to come back. Why not put that money in your home, where you know you are going to get it back? Who knows what the stock market is going to continue to do?"

RIDC plays big part in economic development

As posted by: Pittsburgh Live

Donald F. Smith is joining a regional economic development corporation as president, but that doesn't mean he'll disconnect completely from the two universities where he's been director of economic development since 2002.

Smith is leaving the joint post he held for the University of Pittsburgh and Carnegie Mellon University to become president of the Regional Industrial Development Corp. of Southwestern Pennsylvania sometime in January.

Still, Smith likely will continue to deal with Pitt, CMU and other schools that foster development of spinoff companies.

The RIDC historically has played a key role in development of some of the commercial buildings that served the needs of the universities themselves as well as firms developed by students and faculty, and outside companies looking to move close to the schools.

For example, the corporation partnered with CMU on buildings including the Software Engineering Institute in Oakland and the Collaborative Innovation Center on the school's campus.

Smith played a role in development of the innovation center, the only building in the world with Intel, Apple and Google employees under one roof.

"I believe that the RIDC can still be a resource for the universities," Smith said.

With the universities attracting more than $1 billion a year in research dollars and helping to spawn spinoff companies, officials have estimated that more than 1 million square feet will be needed to house such firms over the next 10 years.

That's one of the reasons why the city's Urban Redevelopment Authority announced plans to develop up to nine buildings at the Pittsburgh Technology Center in South Oakland.

The RIDC has considered building an addition to its 2000 Technology Drive building at the Pittsburgh Technology Center, where Cleveland developer Ferchill Group's $46 million Bridgeside Point II is under construction.

And the RIDC is general partner in Almono LP, a nonprofit partnership of four local foundations that teamed in 2002 to buy the 178-acre former LTV Steel site in Hazelwood. A $400 million development that could create 2,400 jobs and include housing, commercial space, community amenities and green space is planned there.

One of Smith's tasks will be to help choose a master developer for that property, which could be a location for companies looking to move close to the Oakland universities.

The Pittsburgh Zoning Board of Adjustment on Thursday will review plans to put nine parking spaces on a lot at 44th and Calvin streets in Lawrenceville for The University of Pittsburgh Medical Center's Children's Hospital. The board will review Atallah Khali's request to put 10 parking stalls at the rear of a three-story, 12-unit apartment at 343 McKee Place, Oakland. Brandy Mangham will seek approval for a child care center for up to 12 children at 52 Grape St., 30th Ward. Pennsylvania American Water wants to use 640 square feet in a one-story building at 317 Knox Ave., Knoxville, for chemical storage abutting its existing pump station.

Construction activity for the year in Pittsburgh reached $891 million through October; 201 permits valued at $102 million were issued, the Bureau of Building Inspection said. The largest permit was $30 million for a six-story parking garage at Bakery Square, 6425 Penn Ave., East Liberty. Although permits for only four single-family houses were issued, they brought the totals for the year to 157, compared to 67 for all of 2007.

The Green Building Alliance and its executive director, Rebecca Flora, will review the latest local and national green building initiatives at the alliance's annual meeting at 7:30 p.m. Wednesday at the Regional Enterprise Tower, 425 Sixth Ave., Downtown.

A Rite Aid pharmacy has opened at 7345 Saltsburg Road, Penn Hills. It has more than 11,000 square feet. The company plans to open about 85 stores nationwide this fiscal year.

A sales center has opened for the 28-unit Residences condominiums at Three PNC Plaza, Downtown. Howard Hanna Real Estate Services operates the center and said three of the units have been sold.

Daniel Friedson, along with artists, law students and volunteers, has opened an arts and entertainment incubator in the former PNC Bank office at 6000 Penn Ave., East Liberty. Friedson, who runs the Community Economic Development Clinic at the University of Pittsburgh School of Law, said most activities are offered on Saturdays. The incubator offers low-cost facilities and space for performing artists.

Urban Homesteaders in Allegheny County will receive a $94,710 agriculture planning grant from Commonwealth Financing Authority for the Blackberry Meadows Farm Commercial Kitchen/Farmers Market in Fawn Township. The Pittsburgh History and Landmarks Foundation will receive an $83,000 agriculture planning grant for the Farmers' Markets in Washington and Westmoreland counties.

One of Bernardo Katz's former properties in Beechview has been sold. S&T Bank foreclosed on, then acquired, in June 1550-54 Beechview Ave. Clement M. Okoye purchased it for $180,000, according to a deed filed in Allegheny County. The property includes a one-story bank building, three-story mercantile apartment building and one-story mercantile building.

A community shopping center at 560 Route 51, Pleasant Hills, has been sold to Progress CL LLC, in care of Superior Realty Group of Brooklyn, N.Y., for $3.75 million, according a deed filed in Allegheny County. Robert I. Glimcher of Glimcher Venture Holdings Inc. was the seller; Goldy Rabinowitz signed for Progress, part of Highfield Two Associates LLC.

Mall Vacancies Grow as Retailers Pack Up Shop

Shopping Venues See Uninhabited Rate Reach 8%, But Not All Is Bad in Commercial Sector as Apartment Rents Rise

Vacancy rates at U.S. malls and shopping centers continued their steep rise in the third quarter as slumping sales forced retailers to close stores.

Malls are seeing their highest vacancy rate since 2001, according to data released by real-estate-research firm Reis Inc. For shopping centers, the rate is the highest since 1994.

In contrast, the apartment market, particularly Philadelphia apartments, remained one of the most healthy real-estate markets in the third quarter, benefiting from the struggling home-sales market. Many would-be buyers, unable to get mortgages or worried about the darkening economy, are renting apartments instead.

In the top 79 U.S. markets, apartments posted a slight increase in the vacancy rate to 6.1%, up from 6% from the previous quarter, and a rise in rents of roughly half a percentage point, according to Reis.

Shopping centers and apartment buildings fall in the category of commercial real estate, which has fared better in the credit crisis than residential. Until recently, most commercial landlords had struggled with the financing drought, but the so-called "fundamentals" of their properties -- vacancy rate, rent and expenses -- remained healthy.

Now that is changing. In the retail sector, vacancy rates have climbed and rent increases have slowed for the past year. The vacancy rate at malls in the top 76 U.S. markets rose to 6.6% in the third quarter, up from 6.3% in the previous quarter, to its highest level since late 2001, according to Reis.

For strip centers and other open-air shopping venues, the vacancy rate climbed to 8.4% in the third quarter from 8.1% in the second quarter. That marks the highest rate since 1994, according to Reis. Meanwhile, retailers' closures outpaced new leases by 2.8 million square feet in U.S. strip centers in the third quarter, the third consecutive quarterly net decline. It is the first nine-month period of so-called negative net absorption since Reis started tracking the data in 1980.

The combined vacancy rate for malls and strip centers in the third quarter was 8%, up from 7.8% in the second quarter. Vacancy tends to be higher in strip centers during economic slowdowns because they have more independent, local tenants, which are more vulnerable to drops in sales than are the national retailers found in malls.

Still, the economic slump has taken its toll on national retailers. Among those that have closed stores in recent months are Starbucks Corp., Dillard's Inc. and Linens 'n Things Inc. More closures likely are on tap, as retailers such as Circuit City Stores Inc. struggle with dwindling sales.

"Almost every retailer has slowed their expansion by 50% to 70% for 2008," said David Brinbrey, chairman and chief executive of the Shopping Center Group, an Atlanta retail brokerage.

Retail landlords are hurt directly by slumping sales because many of them have leases that, in addition to base rent, give them a small portion of payments based on the tenant's sales growth. And retailers feeling the pinch from the shopping slowdown increasingly are asking for rent concessions.

Landlords have little choice but to give breaks to solid tenants. "Chances are, if they're a good merchant, we're going to work with them to get them through this bad time. There's no reason to have an empty space," said Rick Caruso, chief executive of Caruso Affiliated, which owns 10 high-end shopping centers in Southern California.

Sam Chandan, Reis's chief economist, noted that the growing weakness of retailers can be seen in the decline of retail jobs, which have fallen by more than 250,000 nationally in the past year. "Apart from declines in automobile dealers and parts sellers, the last month's declines are broad-based, including department stores, food and beverage retailers, furniture, and electronic and appliance stores," Mr. Chandan said.In the apartment sector, the vacancy increase has been more gradual. But the scarcity of job opportunities for recent college graduates has sapped a primary customer base for apartments, analysts say. And some people who are losing their jobs are moving in with family and friends.

Some foresee rent increases stalling or declining in the coming months as other economic indicators sour. "As unemployment rises, it will be harder for these [apartment] companies to push rent in terms of renewals and new leases," said Michelle Ko, an analyst with UBS Securities LLC.

Analysts report strong apartment occupancy and rent growth in markets including San Francisco, Boston, San Diego and the Pacific Northwest. Rents and occupancy have suffered in boom-bust markets such as Phoenix and Orlando, Fla. But some previously strong apartment markets, namely New York and Charlotte, N.C., might suffer from the loss of financial jobs amid the banking shakeout.

By: Kris Hudson
Wall Street Journal; October 6, 2008

Philadelphia's Commercial and Apartment Rental Markets Red Hot

The Lofts at Logan View pictured to the left. One of Center City Philadelphia's most popular residential addresses.

Philadelphia's commercial real-estate and apartment leasing market is holding steady in the midst of the growing economic carnage. Philadelphia's office market, more than the suburbs', has benefited from a steady growth mixed with very little supply.
Historic Landmarks reports that their Philadelphia Apartments have one of the lowest vacancy rates in years. Apartment, retail and warehouse vacancies are at or below averages for the 54 major metro areas as recently audited and surveyed by Real Capital Analytics, a New York-based research firm.
To be sure, the geographic proximity of the region to the crisis on Wall Street -- with Philadelphia about two hours south of Manhattan, give or take -- is a concern among some Philly area's real-estate professionals. As with most markets globally, sales of retail and apartment buildings have slowed since the credit crunch began in the summer of 2007, however the market for Philadelphia apartments remains red hot.

The Philadelphia metro area, home to about 5.1 million people, saw continued growth in its education and health-services sector. And so far overall job growth has remained in the positive territory as of July compared with the year-earlier period, albeit just barely at 0.1%, according to the Bureau of Labor Statistics.

For now, the new luxury lofts and urban condo style apartments offered by Historic Landmarks are at or near capacity with many waiting lists forming. Historic Landmarks has medical student apartments and grad student apartments in some of Philadelphia's most in-demand neighborhoods. Historic offers lofts and Center City apartments, Parkway apartments, University City apartments and Old City apartments.


Many Philadelphia apartment brokers have been asking for rents in the Manhattan-esque $40-per-square-foot range which still seems a little too rich for the City of Brotherly Love.
Historic landmarks apartment buildings and historic building renovation and preservation projects remain true to the city's past architectural leanings and Philadelphia's great historical past. Demand is high for urban living in luxury lofts and upscale Philadelphia apartments.


To Tour any of our Philadelphia apartments and historic buildings in downtown Philadelphia call: 877-563-6754.

City's Property Market, at Least, Defies Curse

Some sports fans in Philadelphia feel their teams are victim of a real-estate curse.

That is because none of the city's major professional teams -- the Phillies, Flyers, Eagles and 76ers -- have won a championship since before 1987, when Malvern, Pa.-based Liberty Property Trust's One Liberty Place rose above a statue of William Penn that tops City Hall. Mr. Penn's hat previously set the bar for the city's skyline.

The American Commerce Center, shown in renderings, would change the look of Philadelphia's skyline.

Fortunately, Mr. Penn doesn't seem to have focused his chagrin on the real-estate market.

So far the Philadelphia area's commercial real-estate leasing market has held steady in the midst of the growing economic carnage. The city's office market, more than the suburbs', has benefited from "steady, unspectacular growth married with little supply," says John Gattuso, senior vice president and regional director of Liberty's urban development group.

While the metropolitan area's office vacancies rose to 14.5% in the second quarter (and rents are expected to decline slightly in the second half of the year), they are still below the national average of 15.6%, according to Boston-based Property & Portfolio Research, a real-estate research firm. Apartment, retail and warehouse vacancies rose in the second quarter but held at or below averages for the 54 major metro areas surveyed by PPR, while rents were still rising in all but the retail sector.

To be sure, the geographic proximity of the region to the crisis on Wall Street -- with Philadelphia about two hours south of Manhattan, give or take -- is a concern among the area's real-estate professionals. As with most markets globally, sales of office, retail and apartment buildings have slowed since the credit crunch began in the summer of 2007, although sales of office buildings valued at $5 million or more this year through August fell just 14% compared with last year's period. That is better than a 77% drop nationwide over the period, according to Real Capital Analytics, a New York-based research firm.

The Philadelphia metro area, home to about 5.1 million people, saw continued growth in its education and health-services sector. And so far overall job growth has remained in the positive territory as of July compared with the year-earlier period, albeit just barely at 0.1%, according to the Bureau of Labor Statistics.

For now, the new 975-foot-tall glass-encased Comcast Center tower that officially opened this year seems to reflect the market's strengths. Designed by Robert A.M. Stern Architects, the building has created a buzz with a 25-foot tall high-definition video screen in its lobby.

The building also has leased all of its roughly 1.2 million square feet of office space, much of it as the new headquarters of cable giant Comcast Corp., says Liberty Property's Mr. Gattuso. It has also done so despite skepticism early on from some brokers who said asking rents in the $40-per-square-foot range were too rich for the City of Brotherly Love, Mr. Gattuso said.

That success may be encouraging other developers. One project planned near the Comcast Center is the American Commerce Center. If built, it would rise about 1,500 feet high and include office, hotel and retail space, according to Peter Kelsen, an attorney for Philadelphia-based Hill International Real Estate Partners LP, which is developing the project.

Citing Hill's joint-venture relationship with a large pension fund, Mr. Kelsen said he's confident the group will have the financing. Developers also need some preleasing commitments and for the city to remove a height limit on the property, he says.

The scale is just one of the project's striking elements. New York firm Kohn Pedersen Fox Associates' design includes a glass facade and futuristic-looking cutouts as well as a lower section that abuts a higher tower that together look something like a chair. "It's not going to be very colonial," Mr. Kelsen says, referencing the city's past architectural leanings.

There's even hope that the tall-building curse may soon vanish. The new Comcast Center gave a nod to Mr. Penn by welding a small statue of the city's founder to one of its beams.

By: Maura Webber Sadovi
Wall Street Journal; September 24, 2008