This is a company blog used by the New Jersey Jones Lang LaSalle Team to keep track of current events within the real estate sector. All items posted on this website are originally written by other authors from various sources. This is simply used as a searchable tracking system for news we found relevant to our business.
Global Crossing Announces $420 Million Stock, Note Offering Martin C. Daks NJBIZ Staff 5/24/2006
Global Crossing has priced a concurrent public offering of stock and senior convertible notes at up to $420 million. The common stock, which is expected to fetch up to $276 million, consists of 12 million shares at $20.00 apiece and underwriters' options for an additional 1.8 million shares. The Florham Park-based company also expects to raise $125 million from the sale of 5% senior convertible notes that mature in 2011 with a conversion rate of 43.5 shares of common stock per $1,000 principal amount of notes.
Underwriters have been granted an option to purchase up to an additional $19 million of notes. Funds from the offerings, which are expected to close May 30, will be used to acquire assets or businesses, to buy U.S. treasury securities to collateralize the first six interest payments on the notes, to pay fees and expenses related to the offerings, and for other purposes. Goldman, Sachs is the sole bookrunner and Morgan Stanley is joint lead manager for the transactions.
Global Crossing provides telecommunications services over an Internet-based network.
posted by Jones Lang LaSalle NJ News Blog at 3:21 PM
May 25, 2006 -- The major Times Square building at 1540 Broadway is in contract to be sold to a combination of Steve Roth's Vornado Realty Trust and Sam Zell's Equity Office Properties for an estimated $825 million.
Sources at the Macklowe party at the GM Building and Apple store last night said Roth's New York-based Real Estate investment trust will have the bottom retail space, including the currently vacant Bar Code restaurant space.
Zell's Chicago-based REIT will take the office portion above. Eastdil Secured marketed the 44-story, 1.1 million-square-foot property on behalf of Paramount Group.
The building, the construction of which helped usher in the Times Square real estate boom, serves as the American headquarters of German media giant Bertelsmann. The famous Times Square Virgin Megastore is the building's retail tenant and is one of the top-selling and largest music stores in the world. It boasts some 600 listening posts, 100 video viewing posts and plays host to in-store appearance of top artists.
Paramount purchased the building from Bertelsmann for $425 million in June 2004.
posted by Jones Lang LaSalle NJ News Blog at 3:21 PM
CBRE Snags Power Broker By Barbara Jarvie NEW YORK CITY-Paul Amrich has joined the Midtown brokerage team at CB Richard Ellis. He left Cushman & Wakefield to serve as senior vice president.
Amrich brings more than 10 years experience to his new role. At Cushman, he was part of a team that was awarded agency assignments totaling 10 million sf. They were responsible for approximately five million sf of leasing transactions in the city. He worked with owners such as Paramount Group, Macklowe Properties and Normandy Realty, and tenants including AmSouth Capital Corp., Integrated Finance Limited and Bank of New York. When contacted by GlobeSt.com, Cushman officials did not offer a comment on Amrich’s move.
Dean Shapiro, executive managing director of CBRE’s Manhattan brokerage operations, tells GlobeSt.com Amrich fits in with the firm’s culture. While at first, he will work on Midtown deals, Shapiro expects his market reach will expand. "We wish we could clone him. We are always open to an opportunity to add a rising young star to our talented brokerage team."
In just 14 days after the September 11 attacks, Amrich and his team completed 11 lease transactions, totaling 700,000 sf, on behalf of the Bank of New York to relocate the bank’s displaced employees. His team’s efforts were honored with a client commitment award from C&W, where his agency work earned him Strategic Agency of the Year awards in three of the last four years for his representation of 1370 Ave, of the Americas, 2 Grand Central Tower and Grand Central Square.
NKF Gets 1M-SF Industrial Assignment By Sean Ryan Sean Ryan is associate editor of Real Estate New Jersey. (To read more on the industrial market, click here.)
PERTH AMBOY, NJ-The 1.1-million-sf Amboy Corporate Center, currently under construction on spec by the Morris Cos., will be marketed by Newmark Knight Frank. Morris started construction on the first 614,500-sf building on the 70-acre site earlier this spring. Construction on the second 517,000-sf building is scheduled to start in less than 12 months.
The complex is part of the Chevron Asphalt Refinery surplus properties, which Morris bought from Chevron last year. The project is part of the Portfields Initiative. Additionally, all of Perth Amboy has been designated an Urban Enterprise Zone.
"This is one of the first in a generation of major industrial projects on large redevelopment sites north of Exit 11," says William J. Cariste, principal for NKF. He, along with fellow principals Daniel Frankel and Doug Bansbach will be marketing the space to new users. "Our port facilities in Newark and Elizabeth handle some of the country’s largest import shipping volumes, yet less than 5% of the building inventory north of Exit 11 consists of truly modern distribution buildings," Cariste says. "Since port proximity means transportation savings and overseas shipping volumes continue to grow, the timing and location needs have converged to usher in a new round of development."
Sean Ryan is associate editor of Real Estate New Jersey. LAWRENCEVILLE, NJ-The headquarters building vacated by Lenox Corp. is now in Brandywine Realty Trust’s portfolio for $10.5 million. The price works out to more then $116 per sf.
The 90,000-sf class A building owned by Brown-Forman Corp. was initially kept when Brown-Forman sold off its Lenox China business. Milton Charbonneau, vice president of Colliers Houston’s new Princeton office, was tapped for the eventual disposition.
"We were chosen to dispose of the building in a sealed-bid format," Charbonneau says. "The sale was accomplished in short order for the highest market price achievable." He reports that Brandywine will either seek a single tenant for the property, or convert it for multiple tenants.
Lenox signed a $29-million, 12-year lease earlier this year for space in Bristol Borough, PA. The Pennsylvania Governor’s Action Team provided $1.3 million in incentives to get Lenox to make the move across the Delaware.
Delays and Higher Costs Expected for Xanadu By DAVID KOCIENIEWSKI and LAURA MANSNERUS
TRENTON, May 24 — The developer building the sprawling Xanadu shopping and entertainment complex at the Meadowlands has acknowledged that the project will take longer, cost more and earn less money than originally projected, according to documents filed with the Securities and Exchange Commission.
That disclosure — which comes as the developer, the Mills Corporation, is being pressured by lenders who want to force a sale of the company or its most important assets — rekindled fears on Wednesday that New Jersey may be spending hundreds of millions in tax dollars to provide infrastructure improvements for what could turn out to be little more than a shopping mall.
But Mills executives and state officials say that there are no plans to curtail construction of the elaborate assortment of entertainment and extreme sports facilities intended to make the complex as much of a tourist destination as a shopping center.
Mills, based in Arlington, Va., won the right to develop the coveted 104-acre site in East Rutherford by proposing an ambitious complex: retail stores surrounded by a hotel, office space and an assortment of indoor recreational facilities like a trout stream, a surfing wave and a ski slope.
Construction began in 2004, but in recent months Mills has faced an assortment of financial and legal problems, including shareholder lawsuits, an investigation by the S.E.C. and demands from creditors that the company be sold. As the price of the stock dropped — in eight months, Mills fell to below $27 a share from higher than $66 a share, closing on Wednesday at $30.70 — the company fired top executives, slashed its work force and abandoned 10 other projects.
In its filing with the S.E.C., the company said that Xanadu's opening would be delayed six months to a year beyond the recently announced date of the fall of 2007, and its cost would be higher than anticipated.
David Douglass, a spokesman for the company, said Mills remained committed to building the snow dome and other entertainment parts of the project, though the company had previously said that plans for a mile-long roller coaster and go-cart track had been abandoned.
Carl J. Goldberg, chairman of the New Jersey Sports and Exhibition Authority, said he had been assured that Mills has no intention of trying to renege on its commitment to build the more distinctive but less profitable recreational parts of Xanadu.
"There's been no conversation whatsoever that they have any intent to in any way materially change the scope of the project from the approved plan," Mr. Goldberg said.
Mills officials declined to provide an estimate of the expected cost overruns for Xanadu, which was originally projected at $1.2 billion. But Rich Moore, a financial analyst for RBC Capital, said that despite its recent problems, he upgraded his assessment of Mills because the company's record had convinced him that Xanadu would be built as planned.
The Xanadu project dates to the administration of Gov. James E. McGreevey. As part of the deal with Mills, the state promised utilities and road improvements, a new rail spur to the sports complex, tax exemptions, economic development grants and more, at a cost that could reach $1 billion.
Robert Sommer, a spokesman for the Xanadu project, said that Mills had already invested hundreds of millions of dollars, including $160 million in rent paid to the state, and intends to see it completed as planned.
Copyright 2006 The New York Times Company
posted by Jones Lang LaSalle NJ News Blog at 3:16 PM
New Signs of a Slowing Economy in 2 Federal Reports By JEREMY W. PETERS
New-home sales rose last month, but failed to keep up the robust growth pace of March. The home sales numbers, along with a second government report yesterday that showed a steep decline in orders for durable goods, were seen as pointing to a softening economy.
But the numbers did little to reassure investors hoping that the economic data would encourage the Federal Reserve not to raise interest rates when it meets next month.
The Commerce Department reported yesterday that sales of new homes were up 4.9 percent in April, while orders for durable goods — relatively costly items that are expected to last at least three years, including aircraft and home appliances — fell 4.8 percent.
Since the Fed increased its benchmark short-term interest rate earlier this month to 5 percent, investors have been scrutinizing every economic indicator to determine what it might do at its next meeting in late June. With consumer prices on the rise and fears of inflation growing, many investors worry the Fed may raise rates for the 17th consecutive time in two years.
Investors' attention will now turn to the Commerce Department's announcement today of the revised gross domestic product figure for the first quarter, which is expected to be above the already strong 4.8 percent reported in February.
Because growth was so torrid in the first quarter, most economists expect the economy to slow as the year goes on. But it is unclear whether that will be enough to encourage central bankers that they do not need to worry about inflation.
"We came ripping right out of the box in January," said Brian Jones, an economist with Citigroup. "Going forward it would be very difficult to keep that pace of spending up."
Indeed, investors appeared unsure how to digest yesterday's economic news. After a day in which the major United States stock indexes swung in and out of the red, stocks ended on an up note. The Dow Jones industrial average gained 18.97 points, to close at 11,117.32. The Standard & Poor's 500-stock index climbed 1.99 points, to 1,258.57. The Nasdaq rose 10.41 points, to 2,169.17. [Page C12.]
Gold futures fell nearly 5.4 percent, or $36.20, to $637.50 an ounce.
Typically, new housing sales and durable goods are two highly volatile measures of economic growth. This year, they have been even more volatile than usual. New-home sales were down in the first two months of 2006 but up 12 percent in March.
Durable goods orders plunged in January but were up for the next two months.
Despite all the ups and downs in recent months, Wall Street analysts were still surprised by the numbers released yesterday.
"These are two of the most volatile series that we have," said Dean Maki, chief United States economist at Barclays Capital. "And they displayed volatility in the most recent data."
While much of the drop in the durable goods figure can be attributed to fewer orders for aircraft last month, the home sales numbers are more of a reason for concern. The new housing data appear to confirm what many economists have already said: as real estate speculators bow out of a peaking market and mortgage rates rise, the torrid pace of home sales is cooling. Compared with last April, sales of new homes fell 5.7 percent.
"It does look like things seem to be steadying," said Stephen Stanley, chief economist with RBS Greenwich Capital. "Now, we're more or less just back to the fundamental demand that was there all along of people who actually want to buy and live in a home — the family with two kids and a dog."
Inventories are also rising, yet another sign of weakness in the latest housing data. At the end of April, the number of homes for sale reached a record 565,000.
The median sale price of new homes nationwide rose to $238,500 in April, up from $232,000 in March, but little changed from a year earlier.
Sales of new homes in April were at a seasonally adjusted annual rate of 1.2 million compared with the annual rate for March of 1.1 million homes. The largest gains last month were in the Northeast and the South, which both had increases of about 8 percent.
With mortgage rates climbing, many economists believe home sales will decline this month.
"We did get this quirky increase in April," said Mr. Jones of Citigroup. "But what we will see probably is a nice, gradual, orderly decline in activity."
Copyright 2006 The New York Times Company
posted by Jones Lang LaSalle NJ News Blog at 3:16 PM
Developer, neighbors agree in Montgomery Thursday, May 25, 2006 By LISA CORYELL Staff Writer
MONTGOMERY -- After years of planning, designing and soliciting feedback from the public, developers of the Montgomery Promenade town center announced they will break ground on the project this year.
Madison Marquette, which manages MarketFair in West Windsor and other retail centers nationwide, has submitted a township planning application to build a 325,000-square-foot shopping center along Route 206.
The idea has been in the works for years as residents, township officials and developers hashed out the best use for the 50-acre farm field near the corner of Routes 518 and 206.
"This is a project that a lot of people have spent time looking at," said Mayor Louise Wilson. "Various conceptual plans have been cycled and recycled. I think the plan Madison Marquette has now really captures what so many people in Montgomery are interested in seeing in our community."
The plan, which includes retail and residential components, calls for a supermarket, a super bookstore, dozens of upscale retail stores and four or five high-end restaurants nestled in a pedestrian-friendly commercial center dotted with small parks and bike trails. Sixteen age-restricted duplex units are slated to be built to the rear of existing residential properties on Route 518.
For the past year, residents living along Route 518 have been working with Madison Marquette to hammer out details of the commercial center that will occupy the farmland that served as their back-yard vista for decades.
"Of course I'd like to see it stay the way it is," said resident Nancy Tetz. "It's a beautiful property with beautiful sunsets. But, knowing that that can't be, I think we're comfortable with the way it was developed. We met with the developers along the way and they've worked with us."
J. Kerney Kuser, an attorney who lives on Route 518, said residents had a hand in designing the plan.
"We had a lot of input," he said. "We got things rearranged. We had a say in the height of fences, types of lighting, things like that."
All things considered, Kuser said, the neighbors are happy with the outcome.
"They're putting some big bucks in the ground behind our homes," he said. "It's a shame we're losing our cornfields and our beautiful views. But you have to go with the flow and do the best that you can. I think we got a fair shake. I think when (Madison Marquette) does their thing, it will be something that the town will be happy with."
That's what the Washington, D.C.-based company is counting on. With more than 25 million square feet of retail space under its control nationwide, Madison Marquette prides itself on knowing a prime retail market when it sees one.
"When you look at the disposal income, the density of population, Montgomery is a tremendous market," said John Lanham, senior vice president of development for Madison Marquette. "We're very happy to be able to come into a market like this."
Plans for the Montgomery Promenade will be upscale all the way, Lanham said, throwing out names like L.L. Bean, American Eagle, Kenneth Cole, Barnes & Noble and Coach as examples of the high-end retailers the company attracts.
"The only lease we have signed at this point is the Stop & Shop (supermarket)," he said, referring to the largest food retailer in New England. "But I anticipate really beautiful restaurants and upscale stores. There's been a huge interest in this project."
Lanham said the company expects to break ground by the end of the year and open its retail center by the spring of 2008.
Zoning changes approved Thursday, May 25, 2006 By KRYSTAL KNAPP Staff Writer
EWING -- The township council has approved zoning changes that pave the way for a 235-unit condominium complex on Lower Ferry Road and a 54-unit complex on Parkside Avenue.
After more than two hours of presentations from planning officials, comments from lawyers for the developers and questions from the public Tuesday night, the council voted unanimously to amend the township's land development ordinance, changing the zoning from industrial in one case and office park in the other to make way for the projects. The Parkside Avenue property, the former headquarters of New Jersey Network, has been vacant for more than 10 years. A previous proposal called for the construction of a group home for juvenile offenders at the site. But that proposal faced strong opposition from residents and some township officials.
K. Hovnanian Homes wants to build 54 town houses and garden apartments on the 4-acre site. Six of the units will be affordable housing and the other 48 market-rate and two-bedroom condos will sell for about $300,000 apiece, lawyers said. The Lower Ferry Road project would be the fourth condominium project for the Middlesex County-based American Properties, which is also the developer of the Ewing Courtyard by Marriott hotel on Scotch Road near the Hopewell Township border.
If the Lower Ferry Road project and the developer's other proposal for condominiums off Bear Tavern Road are approved by the planning board and developed as proposed, the combined number of condominiums built by American Properties in the township would be 817 units. The company already has built two condo complexes in the township, Scotch Run on Scotch Road and The Madison on Lower Ferry Road.
Last November the council voted to change the zoning off Bear Tavern Road from industrial to residential to allow American Properties to build high-density housing on a 28-acre tract between Trenton-Mercer Airport and Interstate 95 opposite the Jones Farm Correctional Facility. The company wants to build 270 condominiums on the site.
Thirty-four of the 235 units on Lower Ferry Road would be affordable housing units. The market-rate, two-bedroom units would sell for about $245,000, representatives for American Properties said.
Residents questioned the effect the new homes would have on the school system and taxes and feared an influx of school-age children.
Councilman Bert Steinmann said the township needs more housing like the projects being proposed for young professionals and empty nesters who don't want to mow their lawns. The lawyer for American Properties said that the township would gain revenue from the projects after all costs and services are figured in.
Some residents questioned whether the town would really make money from the development. The lawyer figured that between 33 and 44 school-age children would live in the complex, according to various estimates. He said he believed the number would be 33 or lower and said the Scotch Run condominiums only have one child in the public schools this year.
posted by Jones Lang LaSalle NJ News Blog at 3:15 PM
Corzine tour stops in Singapore SINGAPORE - Gov. Jon Corzine's East Asia trade mission continued today in Singapore, where business leaders already know him from his days as the chief of Goldman Sachs.
Corzine met privately with Prime Minister Lee Hsien Loong, who is the eldest child of former-Prime Minister Lee Kuan Yew. While at Goldman Sachs, Corzine had worked closely with the father, who continues to be influential behind the scenes. The governor also met the country's trade minister and the CEO of Singapore Airlines before touring a stem cell research facility at a local hospital run by one of his old compatriots from Goldman Sachs.
Singapore, one of the most successful free markets in Asia with a per capita Gross Domestic Product on par with Western Europe, has a market driven by exports in electronics and manufacturing and aspirations to be the financial and high-tech center of Southeast Asia. Corzine said he saw similarities between Singapore and New Jersey and possibilities for two-way trade."We're trying to grow business in New Jersey ... We're all interdependent. We want to make sure that New Jersey is participating. We've got a great pharmaceutical business, medical devices, great ports.
A lot of things that look a lot like Singapore," Corzine said.Gary Rose, Corzine's economic czar, said Singapore is an attractive place to do business for New Jersey-based companies such as Johnson & Johnson and Schering Plough because it is more westernized than other countries in the region.
The government is virtually corruption free, according to the U.S. Commerce Department, the workforce is skilled and English is the primary language in the schools.Richard Seow, the chairman of Parkway Hospitals, ran Goldman Sachs' Singapore office when Corzine was CEO.
He said when news spread that Corzine was coming to town, his phone rang off the hook with people lining up to meet with the governor."He's well-known in Singapore. Well-known and well-liked," Seow said of Corzine. "He left such a favorable impression with them last time, everyone wants to see him again."Next and final stop on the Corzine tour: Tokyo. Contributed by Jeff Whelan
posted by Jones Lang LaSalle NJ News Blog at 3:14 PM
Mack-Cali Signs Lease With Omnipoint Communications Approximately 48,900 Square Feet Leased at Parsippany Office Property Cranford, New Jersey—May 24, 2006—Mack-Cali Realty Corporation (NYSE: CLI) today announced that Omnipoint Communications, Inc., has leased 48,875 square feet at 4 Campus Drive at Mack-Cali Business Campus in Parsippany, New Jersey. The lease carries a term of eight years.
Omnipoint Communications, doing business as T-Mobile, is a provider of mobile communications services. The firm also occupies approximately 100,000 square feet at 4 Sylvan Way, a building in the Campus that was recently acquired by Mack-Cali as part of its acquisitions of The Gale Real Estate Services Company and interests in 20 New Jersey properties.
Mitchell E. Hersh, president and chief executive officer of Mack-Cali, stated, "We’re pleased that we were able to accommodate Omnipoint’s wishes to expand its space within Mack-Cali Business Campus." He continued, "Our recent acquisitions have increased our holdings in the Parsippany area and enhanced our ability to meet tenants’ needs as their space requirements evolve."
Richard Rosenhaus of Rosenhaus Realty represented the tenant, and Jane Greenblatt, in-house senior director of leasing and development, represented Mack-Cali in the transaction.
Four Campus Drive is a 147,475 square-foot class A office building that is 95.8 percent leased. Mack-Cali Business Campus is a premier 16-building, class A office complex totaling over 2 million square feet.
Mack-Cali Realty Corporation is a fully-integrated, self-administered, self-managed real estate investment trust (REIT) providing management, leasing, development, construction and other tenant-related services for its class A real estate portfolio. Mack-Cali currently owns or has interests in 297 properties, primarily office and office/flex buildings located in the Northeast, totaling approximately 33.6 million square feet. The properties enable the Company to provide a full complement of real estate opportunities to its diverse base of approximately 2,400 tenants. Additional information on Mack-Cali Realty Corporation is available on the Company’s Web site at www.mack-cali.com.
Statements made in this press release may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by the use of words such as "may," "will," "should," "expect," "plan," "anticipate," "estimate," "continue," or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate, and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the headings "Disclosure Regarding Forward-Looking Statements" and "Risk Factors" in the Company’s Annual Reports on Form 10-K. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise. ### Contact Information: Virginia Sobol Vice President, Marketing & Public Relations Mack-Cali Realty Corporation (908) 272-8000
OR Rick Matthews Executive Vice President Rubenstein Associates (212) 843-8267
posted by Jones Lang LaSalle NJ News Blog at 3:12 PM
Verizon is planning 'significant' job cuts Exec: Not likely to buy Vodafone share of wireless unit soon BY J. KYLE FOSTER BLOOMBERG NEWS
Verizon Communications plans "significant" job cuts in its shrinking local-phone business to put more money into faster-growing areas, chief financial officer Doreen Toben said. The No. 2 U.S. phone-service company also doesn't plan to buy Vodafone Group's 45 percent stake in Bedminster-based Verizon Wireless soon, Toben said Tuesday at a conference in Washington.
Chief executive Ivan Seidenberg has said he wants full ownership of wireless, Verizon's fastest-growing business, and that it's up to Vodafone to start talks.
New York-based Verizon will make job cuts in the local unit as it focuses on more profitable businesses, Toben said, without being specific.
"Significant is obviously is going to be in the thousands," said Daniela Spassova, an analyst at Des Moines, Iowa-based Principal Global Investors, which has about $158 billion in assets, including Verizon debt.
Verizon shares rose 8 cents to close at $30.87 on Tuesday. The shares have gained 2.5 percent this year. Vodafone fell 1.25 pence to 116.75 pence in London.
Verizon won't give details about the cuts, spokesman Peter Thonis said.
Verizon had 252,311 employees at the end of the first quarter, with about 140,000 in the local-phone business, spokesman Robert Varettoni said. The company had 217,000 employees at the end of 2005 before buying MCI.
"You will see reductions on the wire-line side that are significant as we go through the next 18 months," Toben said.
Verizon lost 843,000 local lines in the first quarter to 48 million and has seen the total decline by 24 percent from a peak of 63 million at the end of 2000, when it employed 260,000 people. The local business accounted for 37 percent of Verizon's first-quarter sales of $22.7 billion.
posted by Jones Lang LaSalle NJ News Blog at 3:10 PM
110 N.J. plants at risk Report says toxic chemical release could be 'catastrophic' BY STACIE BABULA BLOOMBERG NEWS
New Jersey, the most densely populated U.S. state, has 110 industrial plants that pose ''catastrophic" safety and health risks for the public in the event of an accidental or intentional toxic chemical release, a report by a coalition of labor and environmental groups found.
An incident at the Kuehne Chemical Co. plant in northern New Jersey would potentially threaten an area of 12 million people that extends into Manhattan, Brooklyn and Staten Island0, according to the New Jersey Work Environment Council.
In southern New Jersey, a release of chlorine from a DuPont Co. plant could endanger any of 2 million people in a 25-mile area that reaches into downtown Philadelphia, the report said. ''In this post 9/11 world, we must recognize the need to safeguard ourselves against those who might attempt to use these facilities as weapons," said Rick Engler, director of the Trenton-based council, whose 70 members include the United Steelworkers, state Sierra Club chapter and New Jersey Public Interest Research Group.
''This has become a real security issue that demands immediate attention," Engler said. The Work Environment Council recommends mandatory, not voluntary, industry safety guidelines; a comprehensive assessment of safety vulnerabilities at all facilities that have the potential to release toxic chemicals; and adequate staffing with enough trained workers to safely run a facility.
The council urged Gov. Jon S. Corzine to do more to improve chemical safety. ''While New Jersey has taken some useful first steps, additional mandatory safety and security standards are urgently needed," the report said.
Brendan Gilfillan, a spokesman for Corzine, didn't immediately respond to requests for comment.
Before becoming governor, then-U.S. Sen. Corzine sponsored bills to toughen federal chemical security laws.
Under then-Gov. Richard Codey's administration, the state ordered its 140 chemical plants to institute new security measures to protect against potential terrorist attacks.
The Chemistry Council of New Jersey, which represents about 100 manufacturers in the state, said then the measure wasn't necessary because the industry already had been working to improve safety, spending more than $100 million on security measures since Sept. 11, 2001.
Don Nicolai, president of Kuehne, said most of the information in the council's report is old. Since 1999, Kuehne has spent at least $15 million on security, physical plant improvements and technology to reduce the risk of an unintentional or intentional accident or spill, he said. Local and state police tour the plant every few hours, he said.
New Jersey's high population density -- 1,134.4 million residents per square mile -- puts a large number of people at risk from a potential terrorist attack or an explosion, the council said. A total of 15 facilities in the state -- in Essex, Gloucester, Hudson, Middlesex, Salem and Union counties -- could harm any of 100,000 residents or more if there were a chemical release, the report said.
Chlorine, the most hazardous material at the facilities, can burn the eyes and skin and cause throat irritation, chest pain and death, the report said.
The Kuehne plant in South Kearny takes chlorine supplied by other companies and makes bleach, which is used by water and wastewater treatment plants to remove bacteria and pathogens from water, Nicolai said.
DuPont spokesman Cliff Webb didn't immediately return a telephone message for comment. No new federal laws have been enacted since the Sept. 11 attacks to create national safety standards for chemical plants, the council's report said.
The report discloses the names and locations of New Jersey facilities using or storing ''extraordinarily" hazardous chemicals and ranks them according to the population living with the area where a major toxic release could cause harm.
The council said it did so because such data may help improve the safety of such workplaces.
Industry officials said distributing the information publicly might help potential wrongdoers.
''It was probably inadvisable to disclose all this information from all these plants," Nicolai said.
posted by Jones Lang LaSalle NJ News Blog at 3:09 PM
The world's No.1 PC vendor, long known for its policy of selling directly to customers, will open a pair of retail locations in Dallas and New York later this year, according to news reports. The 3,000-square foot stores will not stock any inventory, but rather will showcase about 35 different Dell products and allow customers to customize and order merchandise for later delivery, according to a report in the Austin American-Statesman.
While the stores are only pilot programs, the move marks a significant change of tack for Dell and comes a week after the company announced another major change to its business model. The Round Rock , Texas, company said in its quarterly earnings last week that it would include Advanced Micro Devices (AMD:NYSE) Opteron microprocessors in a limited number of its computer servers.
Dell's growth has stalled recently, as the company has struggled in the face of stiff competition from the likes of Hewlett-Packard (HPQ:NYSE) , Lenovo and Acer.
The fact that Dell only sold computers featuring Intel (INTC:Nasdaq) processors was widely considered a disadvantage, given that many industry insiders believe that AMD's current line of processors are technologically superior and more power-efficient.
In the first quarter, Dell's revenue was up 6% year over year, compared with growth of 16% and 21% in its two previous first quarters.
Dell executives have insisted that they would stick with the direct-sales model that the company pioneered.
Asked whether Dell would consider selling PCs through the retail channel during a conference call with analysts last week, Chairman Michael Dell answered tersely "We're the direct company."
The retail plan has proven particularly successful for Apple Computer (AAPL:Nasdaq) , which sells its iPods and Mac computers through 136 Apple stores worldwide.
By unveiling its own stores, Dell could provide customers with a chance to touch and feel its various products and to receive answers to technical questions from a knowledgeable sales staff. This could allow Dell to reach a broader slice of consumers and small business buyers, according to Moors & Cabot analyst Cindy Shaw.
But the approach to not actually stock merchandise could backfire if customers expect to be able to leave the store carrying a new PC, wrote Shaw in a recent note to investors.
A Dell representative was not immediately available for comment.
The fact that Dell is experimenting with retail concepts also raises questions about the company's confidence in the direct model, wrote Shaw.
"We view Dell's store pilots as either an acknowledgment that retail matters in some segments and/or a signal that management will try anything that might stimulate revenue," wrote Shaw. Shares of Dell the regular session down 1.19%, or 29 cents, at $24.09.
posted by Jones Lang LaSalle NJ News Blog at 3:09 PM
The West Windsor Planning Board is considering an application that would allow the construction of two three-story spec office buildings on Roszel Road totaling 100,500 square feet.
The application, submitted by RBA Associates, calls for the demolition of the current structure at 19 Roszel Road - a 10,500-square-foot, one-story building owned by Core Labs. The board opened its hearing on the application - for preliminary and final major site plan approval - on May 17, and will continue the hearing on Wednesday May 31.
RBA is proposing the construction of a 62,500-square-foot building and a 32,000-square foot building. The site layout would be similar to the Commons at 7 and 9 Roszel Road, home to Tyco and Merrill Lynch.
According to Marvin Gardner, planning board chairman, the plan includes a large detention basin at the front of the 7.77-acre site. The basin will include a sculpture or other architectural feature "that would enhance the look of the area," says Gardner.
The project is located in the township's ROM-2 zone, which allows a maximum of 30 percent of the property to be developed. The site currently features 3.8 acres of wooded land, all but .77 acres of which would be removed.
The application requests six design waivers and two variances, the most significant of which involves the amount of parking on the site.
According to Gardner, township ordinances require a maximum of 335 parking stalls - 3.3 per 1,000 square feet of development. RMA is proposing 67 additional spaces. The spaces would be built in the wooded area on the site.
"We're trying to preserve whatever woodland we can," says Gardner. "We expressed serious concerns (about the additional parking) and raised the issue with the applicant."
The additional parking would put the project of the township's allowed maximum surface area coverage for that zone. Zoning allows for 50 percent of the site to be covered. The additional parking would add an additional 20,000 square feet of coverage, boosting the level to 57.3 percent.
Core Laboratories Refinery Systems (CLB), 19 Roszel Road, Princeton 08540-1224; 609-452-8600; fax, 609-520-1224. Home page: www.corelab.com
posted by Jones Lang LaSalle NJ News Blog at 3:08 PM
WFC NEARLY AT CAPACITY By LOIS WEISS May 24, 2006 -- THE World Financial Center is about to hang out the "No Vacancy" sign. Current pending lease deals for space in the downtown complex total around 600,000 square feet, real estate sources said, effectively taking nearly every available inch off the radar.
Deals in process at One World Financial include insurance giant Willis looking for 200,000 feet through George Martin of Studley, and expansions of 50,000 feet each for Dow Jones and Cadwalader Wickersham & Taft.
Two World Financial has a 40,000- to 50,000-foot expansion pending for Deloitte & Touche. The WFC buildings are all run and owned in part by Brookfield Properties, which did not comment before press time.
Meanwhile, the Royal Bank of Canada plans to relocate and expand from Brookfield's One Liberty to 270,000 feet at its more modern 3 World Financial, in a deal being handled internally by Brookfield.
Brookfield, sources said, has recently kicked up all its downtown rents to the mid-$40s a foot. CoStar Group data still shows some rents in the mid-$30s so if you want in, the time is now.
In another downtown relocation, Reliance Insurance will move from 5 Hanover Square to 50,000 feet on the entire 10th floor and about half the 8th floor at 75 Broad St.
The former telecom center was repositioned with a $35 million investment by owners JEMB Realty.
Mitchell Konsker, Frank Cento and Michael McKenna of Cushman & Wakefield represented JEMB. Wes Rudes of Murray Hill Properties brought over Reliance.
Rents are now in the high-$20s and low-$30s a foot. "It's a very large deal and legitimizes our repositioning," Konsker said.
Trend-setters Aby Rosen and Ian Schrager are collaborating on a brand new SoHo hotel at 350 W. Broadway, a site they bought last week for about $25 million.
Lighthouse Ventures had a 99-year lease from Sam Abram of Ciba Corp. on the property located between Broome and Grand streets - and smack in the middle of swank hotels, 60 Thompson and the SoHo Grand.
When Rosen called, Lighthouse exercised its $15.5 million purchase option, which was handled through Brian Ezratty and Scott Ellard of Eastern Consolidated Properties. The developers will add an adjoining parcel.
Rosen has teamed up with Hines to build a "very wavy, very soft" glass condo at 122 Greenwich. That building was designed by architect Gene Pedersen from KPF, and plans were just approved by the Landmarks Commission.
Meanwhile, Rosen and Schrager have been collaborating with quirky artist Julian Schnabel on the Gramercy Park Hotel which we've now learned is scheduled to open Aug. 8 with what Schrager describes as a "bohemian" look.
Yesterday, Schrager bumped his longtime president and partner, former Studio 54 busboy Michael Overington, to vice chairman and brought in Spectrum Community's Mitchell Hochberg as new president of Ian Schrager Co.
lois.weiss@nypost.com
posted by Jones Lang LaSalle NJ News Blog at 3:07 PM
Buchanan Ingersoll in Merger Talks With Klett Rooney Gina Passarella and Hank Grezlak The Legal Intelligencer 05-24-2006
Two of the larger law firms in Pennsylvania -- and two giants in the Pittsburgh legal community -- are far along in merger talks with the possibility of an agreement coming "sooner rather than later."
Sources in the Philadelphia, Pittsburgh and Harrisburg legal communities all confirmed Buchanan Ingersoll and Klett Rooney Lieber & Schorling were talking about a merger, with some of them suggesting it was all but a done deal.
If completed -- and barring any major defections or restructuring -- it would make the combined firm the largest in Pennsylvania with an estimated 313 lawyers in the state, according to the last survey conducted by PaLaw. Reed Smith is currently listed as the largest firm in Pennsylvania with 308 attorneys.
The combined firm would have approximately 532 lawyers across all offices, according to PaLaw.
According to one source who did not wish to be identified, there have been a series of meetings between the firms, as well as internal meetings, although nothing has been signed. That source added that attorneys at the firms have been informed about the developments and that an agreement could happen "sooner rather than later."
Another source said that the firms were clearly talking and exchanging proposals, that things had apparently accelerated last week and that as of last Friday, the two firms were "very close." "It seemed to happen quickly," the source said.
Buchanan Ingersoll chairman and CEO Thomas L. VanKirk and Klett Rooney president and managing shareholder John A. Barbour both confirmed that the firms were in talks, but said that nothing has been finalized.
"We have had discussions with Klett Rooney just as we have had discussions with other firms," VanKirk said, adding that the firm is currently speaking with other firms as well. VanKirk said that a final agreement has not been reached and neither firm's shareholders have voted.
Barbour said he and VanKirk have been friends for years, and the merger discussions started out of that friendship. He said a number of firms have approached Klett Rooney, and the discussions with Buchanan Ingersoll have become more involved "recently."
According to Barbour, there is no current time frame for a decision on the deal one way or another.
Pittsburgh legal recruiter Maura McAnney of McAnney Esposito & Kraybill Associates said word of the possible merger officially came on the streets this week, but some in the community have known for months.
"It's definitely not a done deal," she said.
One source, pointing out that both firms are based in Pittsburgh, commented: "I don't know that [the logic behind a merger] works."
However, law firm management consultant Joel Rose was a bit more optimistic in his assessment.
"Based on who their clients are and the fact that these are very sophisticated firms, there have to be definite and good reasons why they would be talking," he said. "Perhaps certain groups at the firms want to acquire groups from the other firm or enhance their areas." Rose said that he assumed the firms had already looked to see if there were any major client conflicts and had not found any.
Consultant Thomas Clay of Altman Weil, which represents both firms, said that while a merger would not put the new firm at the level of other Pittsburgh-based firms like Reed Smith and Kirkpatrick & Lockhart Nicholson Graham, Buchanan Ingersoll and Klett Rooney could be "very complementary of one another."
"It would make them almost the absolute for local business/corporate work," Clay said. Greg Jordan, firmwide managing partner for Reed Smith, said he had a lot of respect for both VanKirk and Barbour as lawyers and businessmen. He said he thought the merger talks were indicative of what's to come in the legal industry, predicting it would follow other industries, such as banking, in terms of consolidation.
"On one level, we're a living, breathing example of how mergers can transform a firm," he said. "Consolidation does generally make sense" when the firms have good reputations and are culturally similar.
Asked if he thought the logic behind the potential merger was curious given that both firms are Pittsburgh-based, Jordan said he didn't think so. He said that any combination that gives a firm 313 lawyers in Pennsylvania, with sizable offices in Pittsburgh, Harrisburg and Philadelphia, would have an upside.
"There is some advantage if you have the right fit to be bigger and stronger in the markets they're in," Jordan said. "We'll have a lot of respect for them" if the merger happens. The merger might have an impact on other firms in Pennsylvania, he said.
"I know some of the larger firms in Philadelphia have talked about in-market mergers," Jordan said.
If a merger goes through, there would be five cities where both firms already have offices. Those include Pittsburgh; Harrisburg; Philadelphia; Wilmington, Del.; and Washington, D.C. Klett Rooney has one other office in Newark, N.J. The firm would gain a presence in New York; Miami; Tampa; Aventura, Fla.; Princeton; San Diego; Silicon Valley; Cleveland; and Alexandria, Va., where Buchanan Ingersoll already has offices.
McAnney said an intracity merger is not something that has happened in the Pittsburgh area for the 20 or so years she has been in the market.
"The Pittsburgh market has changed so much over the years," she said, as firms attempt to establish either a national or regional practice.
McAnney didn't think it was a negative for two firms in Pittsburgh to merge and subsequently have a large number of attorneys there.
"Simply having a lot of lawyers in Pittsburgh is like Jones Day having a lot of lawyers in Cleveland," she said, adding that for firms with national practices, the location is not as important.
McAnney said she views Buchanan Ingersoll as a national firm, while Klett Rooney is more regional.
"This could be an opportunity for Klett lawyers to have a more national platform," she said. Clay said he sees Buchanan Ingersoll as an East Coast firm that may have aspirations of becoming national. He didn't see a problem of overcrowding in Pittsburgh, however, if the two firms merged.
"When you put the two firms together, you don't automatically have anything different in terms of clients," he said.
Over the last year, Buchanan Ingersoll has been aggressive in the market. It has a strategic plan that has called for aggressive acquisitions, which many credited with bolstering its financial indicators for 2005.
The numbers mark the first time in five years that the firm's gross revenue has increased. According to figures provided to The Legal Intelligencer, the firm's profits per equity partner rose nearly 20 percent from $383,000 in 2004 to $457,082 in 2005. The firm managed to increase PPP even though the number of equity partners rose 15 percent, from 85 to 98. The number of non-equity partners rose by 7.5 percent, from 53 in 2004 to 57 in 2005.
Revenue per lawyer increased nearly 11 percent from $454,000 in 2004 to $503,218 in 2005. The gross revenue reached $193.7 million in 2005, a 27 percent increase over 2004's $152.8 million.
As far as Klett Rooney's financials are concerned, McAnney said she has "never heard that they were anything other than stable."
Buchanan Ingersoll kicked off 2005 by picking up New York's Slotnick Shapiro & Crocker, a 10-lawyer criminal defense boutique that now handles white collar defense. In March, the firm took on seven tax and immigration lawyers from Steel Hector & Davis and opened a single-lawyer office in Cleveland to handle banking work. Two months later the firm merged with Alexandria, Va.'s Burns Doane Swecker & Mathis, a 55-lawyer patent boutique.
Then in mid-October, Buchanan Ingersoll acquired Wayne-based lobbying firm Hill Solutions to add to its government relations practice.
Six Saul Ewing partners came to the firm with a few associates toward the end of 2005 to join the litigation and white collar defense practices. McAnney said that Klett Rooney's government relations practice would be a strong addition to Buchanan Ingersoll. Klett Rooney has six consultants and several attorneys who are spread among Pittsburgh, Philadelphia, Harrisburg and Washington, D.C.
She also said that Klett Rooney's well-respected labor and employment practice would help bolster that area for Buchanan Ingersoll which had a group defect from that practice area a few years ago.
The merger talks come amid some major governance changes for Buchanan Ingersoll. The firm announced this week that it has streamlined its leadership by reducing the number of attorneys on the board of directors from 20 to 11 and doing away with the executive and operations committee as well as its chief operating officer position.
In their place, the firm created two new executive shareholder positions -- chief strategic officer and chief development officer. Former COO Francis A. Muracca II will take on the role of chief strategic officer and Douglas P. Coopersmith will handle the function of chief development officer.
VanKirk was re-elected to another three-year term as chairman and CEO. He's now scheduled to serve in that post through at least 2009.
posted by Jones Lang LaSalle NJ News Blog at 3:04 PM
Joined Company Looks to Global Markets By Barbara Jarvie
NEW YORK CITY-The newly formed DTZ Rockwood, the combination of locally based Rockwood Realty Associates LLC and London-based DTZ holdings PLC, will focus on the firm’s complementary business lines. "This will chart new business," Rockwood’s co-CEO/co-chairman Daniel McNulty tells GlobeSt.com.
Rockwood sold a 50% interest in the firm to DTZ for an initial consideration of $45 million plus an earn-out component. The further deferred payment is subject to an overall cap of $75 million, in addition to the initial consideration amount. "They approached us because they wanted to increase their coverage in the US and they had no capital market coverage here." He says the pair was a good fit. "Our cultures are very similar and we handle clients in the same way.
According to McNulty, the deal provides DTZ with a position in the North American real estate capital markets. It also enables Rockwood to offer its client base representation on the global front. "For quite some time our clients have been wanting to work outside of North America and we weren’t in the position to offer those services before."
It also provides existing and future clients with better access to direct investment and capital raising opportunities. "It’s all about proximity," McNulty adds. "We can be in front of the clients‘ needs for additional services. DTZ has a great background in raising capital."
Rockwood is a specialist in investment sales, portfolio disposals, note sales, debt and equity finance, asset management and real estate M&A activities. One of the first markets the firm will focus on is Central America through a wholly-owned Mexican subsidiary, Rockwood Associados LLC.
A Tower Goes Up, and a Neighborhood Perks Up By ALISON GREGOR
The Bloomberg Tower at 731 Lexington Avenue, with an upscale residential portion called One Beacon Court, is transforming the commerce of a neighborhood.
The district was once known for its battling department stores, Bloomingdale's and Alexander's. But Alexander's closed in 1992 and the area was dominated for years by the store's gloomy facade until the building was demolished in 1999.
That was followed by years of construction, when shoppers wandered along 59th Street from the Plaza Hotel, at the southeast corner of Central Park, to Bloomingdale's, three blocks to the east, but not much farther.
But with the opening in 2004 of the 1.4-million-square-foot glass skyscraper that houses the headquarters of Bloomberg L.P., the financial news company, and an office for Citigroup, on the full block where Alexander's once stood, a series of new retail outlets, from clothing shops to banks, is rejuvenating a slightly down-at-the-heel neighborhood.
The developer, Vornado Realty Trust, one of the nation's largest owners and managers of commercial real estate, has "changed a neighborhood that was somewhat of a lackluster market to more of an upscale market," said Gary Trock, a senior vice president at CB Richard Ellis and a prominent retail real estate broker. Vornado declined to be quoted for this article.
Vornado handpicked the tower's retail tenants and included the first large national chains to have stores in the neighborhood: Home Depot, the apparel store H&M and the Container Store, which sells storage and organization products.
Vornado also installed two banks, Bank of America and Wachovia, on the Third Avenue side of its skyscraper. The latest incarnation of the renowned restaurant Le Cirque is in a ground-floor location on the tower's motor court, an atrium between two connected towers where pedestrians and automobiles can move between 58th and 59th Streets.
But commercial brokers said Vornado did not stop there. The developer also acquired buildings around the Bloomberg Tower to export its retail flavor to an even larger swath of the neighborhood.
"It was a strategy by Vornado to master plan not only the block that the Bloomberg building sits on, but the neighborhood to some degree," said Josh N. Kuriloff, an executive vice president at Cushman & Wakefield. "They did this with a keen eye toward architecture. They, in my opinion, single-handedly and dramatically increased the value of the neighborhood."
Thus, Vornado built 715 Lexington Avenue, which is architecturally similar to the Bloomberg Tower and has 23,000 square feet of retail space housing the clothing store New York & Company and Zales Jewelers. Just south of that store on Lexington, a space is being renovated for the cosmetics retailer Sephora.
In 2005, Vornado also built the gleaming low building south of the tower at 968 Third Avenue, which houses a pharmacy.
Besides buildings with retail space, Vornado also owns the Architecture and Design Building at 150 East 58th Street, across 58th Street from the Bloomberg Tower. The A & D building is an integral part of a neighborhood long known as a shopping mecca for the interior design trade. "Vornado is a smart landlord and a knowledgeable landlord, and they decided to go on a shopping spree and ended up buying as much as they could within the marketplace," Mr. Trock said.
Other real estate owners and retailers in the neighborhood are also upgrading their properties. The UJA-Federation of New York is doing a $95 million gut renovation of the building that houses its main offices at 130 East 59th Street. The clothing stores Gap and Banana Republic have leased space in the building for many years, and there will be 85,000 square feet of office space to lease. They are part of a row of apparel retailers along Lexington Avenue that includes Levi's, Nine West, Diesel, Zara and Kenneth Cole, among others.
While Lexington Avenue was always a lively shopping strip, perhaps the biggest renaissance in the area attributed to the Bloomberg Tower has been along Third Avenue.
"The true value was added on the Third Avenue corridor, because that was a less active zone originally," said Gene Spiegelman, an executive director at Cushman & Wakefield.
The potential of the avenue has not escaped real estate developers. In recent years, the developer Donald Zucker constructed a residential building at 997 Third Avenue, cater-corner to the northeast of the Bloomberg Tower, and, in December 2004, leased almost 20,000 square feet of retail space to the clothing store Urban Outfitters.
A tattered old building immediately to the south at 59th Street and Third Avenue, which once had a Pax Wholesome Foods, Dunkin' Donuts and newsstand, will soon be torn down and replaced with a glass-encased North Fork Bank, and will have 6,400 square feet of space and a storage basement, brokers said.
The retail renaissance is not confined to the blocks immediately around the tower, said Scott I. Edlitz, managing principal of ZE Realty, who is marketing 2,500 square feet of retail space in the Urban Outfitters building. Mr. Edlitz said he believed that apparel tenants were displacing the more traditional furniture and home décor vendors in the area.
Mr. Edlitz said rents were increasing because big clothing retailers were "entering the market and pushing the furniture tenants, who typically need more space, further south and east." Some business owners, especially those who cater to the interior design industry and have showrooms on the street, said they had picked up a few clients among residents of One Beacon Court in the Bloomberg Tower, which has 105 apartments, ranging in price from just under $2 million to $27.5 million.
"Our problem was all the construction, and that's over," said Jahanshah Nazmiyal, owner of Rug & Kilim, which sells antique and decorative carpets at 204 East 59th Street.
Other retailers east of Third Avenue, an area that has traditionally had more service-oriented retailing, like restaurants, locksmiths, dry cleaners, cocktail lounges and delicatessens, said they were feeling the pinch of the Bloomberg Tower, either in the form of rising retail rents or more competition for the potential customers in the office tower and in One Beacon Court.
"I used to be the only baby store," said Stuart Sherman, president of Go To Baby at 315 East 57th off Second Avenue. "Then three years ago, two more opened. Now there's a total of five. With more traffic comes more competition, so it probably evens out."
posted by Jones Lang LaSalle NJ News Blog at 3:01 PM
In Hong Kong, Corzine touts N.J. as stem cell mecca Wednesday, May 24, 2006 By JEFF WHELAN Newhouse News Service
HONG KONG -- Banking on action by lawmakers in Trenton to approve hundreds of millions in state funding, Gov. Jon Corzine yesterday pitched New Jersey as an international center for stem cell research to a group of Chinese scientists.
After touring the University of Hong Kong medical school -- where scientists have made recent advances in stem cell research -- Corzine called for a strong partnership between New Jersey and China, saying greater collaboration could "advance the course of mankind."
"In the long run we will all live a better life if we are able to pull this research together," Corzine said. "I want you to think New Jersey. We have very smart people who want to work with you all."
Corzine made his remarks to supporters of the China Spinal Cord Injury network, which will send 29 investigators to the W.M. Keck Center for Collaborative Neuroscience at Rutgers University in August to conduct clinical trials. That partnership was brokered by Wise Young, who leads the Rutgers center and helped launch the Chinese organization two years ago. Young hosted the event for Corzine yesterday in Hong Kong.
The governor has been seeking to raise New Jersey's profile as a center for stem cell research -- seen as a key to curing many diseases -- throughout his weeklong trade mission to East Asia. In meetings with government officials and business leaders, Corzine has repeatedly highlighted New Jersey's prowess in the pharmaceutical and biotechnology industries and a "legal framework" that allows for all types of stem cell research, including embryonic stem cell research. He said the state is "pushing the frontiers of stem cell research" and hoped to attract talent from around the world.
Corzine said greater collaboration could advance science and was also "good economics" because it would put people to work chasing cures for diseases such as juvenile diabetes, Alzheimer's and spinal cord injuries. He said there are 400,000 people in the United States and 1 million in China who suffer from spinal cord injuries.
The state Senate last week passed a bill to invest $250 million to build stem cell and biomedical research centers in New Brunswick, Newark and Camden, but it has been stalled in the Assembly. Both houses are controlled by Corzine's fellow Democrats, but they have not yet agreed on how to spend the money.
"There is going to be an agreement at some point but I do not know when," Assemblyman Neil Cohen, D-Roselle, the bill's sponsor, said yesterday in Trenton. "The governor will play an integral part in forming an executive and legislative branch compromise."
Young, the chair of the search committee for the director of the New Jersey Stem Cell Institute, which would be built in New Brunswick, expressed frustration with the delay in the Legislature in an interview yesterday. He said New Jersey is losing ground to other states, especially California.
Young, who also sits on California's scientific advisory board, said he expects court battles over funding for stem cell research in that state to be resolved soon, freeing up $350 million by the end of this year.
Staff writer Tom Hester in Trenton contributed to this report.
The National Association of Realtors' Commercial Leading Indicator for Brokerage Activity rose to 118.9 in the first quarter, up 0.8 percent from 118 in the fourth quarter and up 2.7 from 115.7 in first quarter 2005. The fourth straight quarter of increase, with improvement in 10 of the last 11, led the association to predict further commercial brokerage growth in the next six to nine months, based on continued improvement in industrial and office net absorption, reaching between 135 million and 155 million square feet in fourth quarter 2006. It also predicted further growth in the completion of new retail, office, warehouse and lodging properties, for a total of $284.5 billion worth in the fourth quarter.
posted by Jones Lang LaSalle NJ News Blog at 2:59 PM
Mills Closes Part of $2B-Plus Financing By Erika Morphy
(For more retail coverage, click GlobeSt.com/RETAIL and to read more on the debt and equity markets, click here.)
ARLINGTON, VA-The Mills Corp. has closed on $1.91 billion of the previously announced $2.23-billion financing with Goldman Sachs Mortgage Co. The remainder is expected to close over the next several months.
Mills will continue to seek indications of interest from prospective buyers and investors by June 13. To date, the company has entered into confidentiality agreements with more than 30 potential buyers and investors.
The net proceeds of the financing were used to pay off the company's existing line of credit, two corporate-level term loans, the repayment of one recourse construction loan and the acquisition by GSMC of three recourse construction loans. The remaining funds will be used for working capital and general corporate purposes. Projects in the pipeline for Mills include Meadowlands Xanadu in East Rutherford, NJ and 108 N. State St. in Chicago.
NEW YORK CITY-CB Richard Ellis has promoted its top-producing brokers William Shanahan and Darcy Stacom. Both will serve in the vice chairman role. Last year, team sold $4.5 billion of office buildings--estimated at 40% of the total office investment activity here--and $1.8 billion of multifamily assets.
Stacom was the firm’s top-producing broker nationally in 2005. She heads the firm’s New York City Investment Properties Institutional Group. Since 2003, her advisory and sales transactions have exceeded $11.6 billion, predominantly in New York City. Shanahan was the firm’s top-producing broker here last year.
"No one in New York is better than Darcy at identifying and unlocking the true value of a real estate asset," says Mary Ann Tighe, chief executive officer of the New York Tri-State Region of CB Richard Ellis. Regarding Shanahan, she adds, "Bill consistently delivers to his clients outstanding results."
Shanahan has been involved with assignments including the $335-million joint venture for the Lipstick Building at 885 Third Ave. and the $202-million sale of CIT Realty Corp’s interest in Waterside Plaza. Stacom’s career highlights include the $918-million sale of the 1.2-million-sf historic landmark MetLife Building at One Madison Ave. and the record-breaking sale of the 583-apartment Manhattan House at 200 E. 66th St. for $625 million.
Coldwell Names Davidson President, COO By Erika Morphy
PARSIPPANY, NJ-Coldwell Banker Commercial Affiliates Inc. has named Richard W. Davidson president and chief operating officer of. Davidson, an 18-year veteran of the industry, was most recently the CEO and founding principal of Coldwell Banker Commercial Capitol Realty Services, an independently owned and operated company in the Washington, DC metropolitan market. He is in the process of moving to New Jersey now and will be on board for July 1.
Davidson tells GlobeSt.com he will be focusing on several goals that will either directly or indirectly facilitate growth of the Coldwell brand. The most visible will be its move into new tier one locations as well as secondary and tertiary markets. Much of this growth will be through its franchise operations, but he adds, "acquisitions are possible as well."
Other efforts will be directed at strengthening and promoting the Coldwell brand. "Coldwell Banker has a long and rich history, but we lost of the power of our brand in the 1980s when Sears [sold Coldwell to the Fremont Group]. We were not able to provide commercial services or operate under that brand as part of the non-compete agreement," Davidson says.
Davidson founded Coldwell Banker Commercial Capitol Realty Services in 2003. Prior to that, he spent nine years as managing director of CB Richard Ellis in the Washington, DC metropolitan market and three years with Insignia/ESG as executive vice president.
Gov. touts N.J. pharma in China Corzine urges easing rules on duplicate testing Tuesday, May 23, 2006 BY JEFF WHELAN Star-Ledger Staff
BEIJING -- Going to bat for New Jersey's pharmaceutical and medical technology companies, Gov. Jon Corzine yesterday urged top Chinese government officials to scale back duplicate testing he said keeps important products from Chinese consumers.
Corzine told China's State Food and Drug Administration director and his deputies that while regulations are key to protecting consumers, the government restrictions are "causing serious limitations" on products that could benefit the public's health in China. He said the Chinese government needs to strike a better balance.
The governor made his plea during a meeting with top Chinese regulators and executives from New Jersey-based pharmaceutical and medical technology companies. Corzine yesterday also met with other top Chinese officials and American Chamber of Commerce leaders in Beijing before flying to Hong Kong, where he is set to deliver a speech on stem cell research.
"There is significant opportunity for New Jersey companies and business activities in China," Corzine said shortly before boarding a plane. "But it was obvious from most of the discussions we had that there are challenges, particularly for the pharmaceutical industry."
That was apparent at the meeting with China's Food and Drug Administration.
With 12 New Jersey-based pharmaceutical companies with operations in China, Shao Mingli, director of the agency, noted that "New Jersey is a very important state as far as China is concerned."
But when Corzine said New Jersey companies have complained about the Chinese government requiring duplicate testing for the same medical devices, the commissioner bristled.
"The problem has basically been solved," he said through an interpreter.
Robert Franks, president of the Health Care Institute of New Jersey, a trade association of pharmaceutical and medical technology companies, disagreed with that assessment in an interview after the meeting.
Franks, a former U.S. Representative from New Jersey, said two Chinese agencies have announced they have an agreement to eliminate duplication, but added, "We have not seen the details, nor has the redundancy disappeared." He said his members want to work with the Chinese government toward "aggressive implementation" of a streamlined process.
Executives from Johnson & Johnson, Pfizer, Wyeth, Celgene and Stryker were among the representatives of New Jersey companies with operations in China who attended the meeting. The companies see the Asian nation with 1.3 billion residents as an enormous opportunity for growth, but complain that it takes much longer to bring drugs and medical devices to market than it does in the United States.
"It adds needlessly to the cost," said William Healey, vice president of the HealthCare Institute of New Jersey. "We believe our products will yield great benefits for the future health of the population of China, but there are obviously issues on how to give access to residents."
The companies are also concerned about the challenges of keeping proprietary information -- such as data from research and development and drug testing -- private in communist China. Corzine and Franks both said the meeting was helpful because it opened a dialogue with the Chinese officials who regulate an industry central to New Jersey's economic health. The industry employs about 60,000 people in the state.
The governor also met with officials from the American Chamber of Commerce, the U.S. Ambassador to China, Charles Randt and the chairmen of the China Association of Enterprises with Foreign Investment and the China Food and Oil, a large state-owned company.
China Food and Oil has a New Jersey office in Edgewater, from which the company monitors financial and commodity markets, the governor said.
Corzine said China does not make large direct investments in American companies or real estate, but that it likely will in the future. When that happens, he said, China Food and Oil will be at the forefront because of its international trading experience.
"If the objective was to be able to have dialogue with senior officials and organizations that will allow me to plug in and help New Jersey companies with individual needs, then I think it was very positive," Corzine said of his Beijing visit.
Corzine said his trip to the communist nation -- which he has criticized in the past over workers' rights concerns -- focused on trade issues. He said he didn't have an opportunity to engage in an expansive discussion on human rights with Chinese government officials.
Staff writer Jeff Whelan is the only reporter accompanying Governor Jon Corzine on his weeklong trade trip to East Asia.
The great land rush continues in Newark Outgoing council weighs more developer offers Tuesday, May 23, 2006 BY JEFFERY C. MAYS Star-Ledger Staff
Even as community groups, Newark's mayor-elect and some city council members call for a moratorium on the sale of city-owned land, the council today will consider proposals from at least 10 developers.
The activity is coming amid concerns that city-owned land is being sold at a breakneck pace and bargain-basement prices weeks before a new administration and up to seven new council members take office.
Politically connected developers and campaign contributors to Mayor Sharpe James are among those to be considered for purchasing land today, including the Rev. Levin West. Also before the council today is a firm representing basketball star Shaquille O'Neal, and a group named Community Urban Renewal Enterprise -- which was just hit with $48,000 in fines for violating state regulations.
"The sitting council people can do what they want until they are out," said Richard Cammarieri, of the nonprofit New Community Corp. He is also part of the Master Plan Working Group, an alliance of community groups that has been trying to get the city to upgrade its central planning document.
"They can make a lot of decisions that can be harmful in the long run. We are over a barrel right now," he said.
Some proposals were voted on but not approved last week when the council considered selling land to at least 15 developers for the city minimum of $4 per square foot. Privately owned vacant land sold for an average of $29.50 per square foot last year.
The controversy has prompted one city council member to call for the cost of city-owned land to be doubled or even tripled.
Mayor-elect Cory Booker asked the nine-member council not to act on the sale of land last week, and once again community planning groups who have long criticized the city for the lack of a master development plan are speaking out.
"I'd like to see them issue a moratorium on development until the new administration comes in and assesses whether we are meeting the requirements on affordable housing and open space," said Robin Dougherty, executive director of the Greater Newark Conservancy.
The city has not drawn a new master plan in at least 27 years and has not updated its zoning ordinance since the 1950s. Newark completed the land use element of a new plan in 2004. The plan delineates which areas should be residential, industrial, open space or reserved for schools. The zoning laws allow the plan to be enforced.
In the meantime, said Dougherty, many of the two- and three-family homes are being placed haphazardly. There have also been complaints about the quality of the new homes.
"They are not creating livable places for children to play. There are no places for people to enjoy a yard or basic amenities people expect in the suburbs. They are not being fought for on a city level, and it's not going to come from developers," Dougherty said.
Councilman Ras Baraka, who abstained on all but three of the proposals voted on last week, was rebuffed by his council colleagues when he called for a moratorium on the sale of city land for two- and three-family homes earlier this year.
Baraka said he voted for the proposals because they involved the sale of land to two nonprofits and a proposal to build office space but still wants the moratorium.
"There's no plan and we are giving out too many pieces of land at a time," he said.
Baraka said he has sensed a new urgency among developers to get their projects completed. "People are fearful that if they don't get it now they won't get it done," he said.
That urgency came through last week as the city council conference room was filled with developers with pending proposals.
One developer, representing Top Quality Builders, was before the council for a hearing that lasted less than five minutes and consisted of him showing a drawing of the home he wanted to develop.
Today, the council is considering the sale of almost 11,000 square feet of land to Top Quality for $43,809. The builder plans to erect three market-rate homes and a commercial building with two apartments above.
There is also confusion over the fate of the old Science High School.
A new Science High is being built, and the company representing O'Neal wants to convert the old building, in a historic district on Rector Street, into condominiums. Superintendent of Schools Marion Bolden wants the district to continue using the building even after a new school opens. Councilman Hector Corchado, who lost his re-election bid and will leave the council on July 1, said he wants the price of land increased from $4 per square foot to $10 to $12.
"I think since the land value is going up we need to look at increasing the price. We can get more value from our land," Corchado said.
But a bigger issue than the price of the land is the council's pace at selling it, said Dougherty. "What are we going to do in next month that will change the city? Why the rush now? What is the point?" Dougherty said.
Jeffery C. Mays covers Newark City Hall. He can be reached at jmays@starledger.com or (973) 392-4149.
Construction-management firm Torcon has completed the relocation of its headquarters and corporate offices to Red Bank. The firm, headquartered in Westfield for over 40 years, will now operate from a facility on the borough’s Newman Springs Road. The move, says Torcon, was made to accommodate growth within the company, which primarily deals in corporate, institutional and pharmaceutical construction. "We are extremely pleased to call Red Bank our new corporate home," said Benedict Torcivia Jr., co-president of Torcon.
"As our continuing growth necessitated that we take a strategic look at our operational and office space needs, we quickly came to the conclusion that the Red Bank area offered a location that is not only central to our operations, but more importantly, provided the quality of life that our executives and employees would appreciate." Torcon completed more than $4 billion of aggregate construction work over the past decade and is among the nation’s 30 largest construction-management firms.
posted by Jones Lang LaSalle NJ News Blog at 2:49 PM
$44 Million Ferry Terminal Is to Open in Weehawken By PATRICK McGEEHAN
New Jersey residents who commute to Manhattan by ferry will have a gleaming new terminal to use in Weehawken, N.J., starting today — just in time to ease the pain of an increase in fares. The terminal, which cost $44 million in public money to build, will be the home base of New York Waterway, a private company that runs ferries between several docks in New Jersey, Midtown and Lower Manhattan. Next week, Waterway plans to raise its fares to and from the new terminal to as much as $9 each way.
New Jersey Transit, which operates trains and buses throughout the state, owns the terminal but will not run it or set fares, said Kris Kolluri, the state's commissioner of transportation and the chairman of the transit agency.
"I see this as a public-private partnership where a private company is willing to provide the type of transportation services that the public is looking for," Mr. Kolluri said.
A company affiliated with Waterway, which is controlled by the family of Arthur Imperatore, has a 32-year lease to operate the new terminal. Last fall, New York City's Economic Development Corporation opened a $56 million terminal on the West Side of Midtown, which is also operated by Waterway. The combined $100 million in spending on ferry docks was a response to the Sept. 11 terrorist attacks, when tens of thousands of panicked people evacuated Manhattan by boat.
Waterway rode to the rescue of many of them and prospered in the months that followed, expanding its operation as a substitute for the PATH train service to Lower Manhattan, while it was shut down. Since then, government officials like Mr. Kolluri have said that regular ferry service is a critical link in the region's transportation network.
But ferries, unlike other forms of mass transit in the area, receive no operating subsidies. Instead, public agencies have chosen to build the infrastructure and hope that the private operators will come.
So far, few have appeared. Waterway ran into such dire financial straits in late 2004 that it had to sell about half of its fleet and routes to a startup company, BillyBey Ferry, which is controlled by a Manhattan lawyer, William B. Wachtel.
On June 1, the Imperatore family's half of the Waterway ferry service will raise prices by 4 percent to more than 16 percent because of the high cost of fuel, said Pat Smith, a Waterway spokesman.
A one-way ticket to ride between the new terminals in Weehawken and Midtown will cost $6, up from $5.75. The one-way fare between Weehawken and the dock at the World Financial Center or at Pier 11 near Wall Street will rise to $9 from $7.75.
posted by Jones Lang LaSalle NJ News Blog at 2:48 PM
