This Week's Philadelphia Deal Sheet: Lee & Associates Gets New Market Leader
Lee & Associates has a new regional leader, thanks to the power of love.
Dwight Hotchkiss was named executive managing director and chief operating officer for Lee & Associates of Eastern and Western Pennsylvania, which includes the Philadelphia and Harrisburg markets and a newly opened office in Pittsburgh.
Hotchkiss was president of Lee & Associates of Riverside and Temecula in California for the last five years but led it remotely for the past two. Hotchkiss moved to the Philadelphia suburbs in 2021 when his wife, Laura, was named the head of all-girls Catholic prep school Academy of Notre Dame de Namur in Villanova.
LEASING
YesWay Logistics leased a 252K SF distribution center from a fund advised by Crow Holdings Capital in the master-planned Tac-Pal Logistics Center in Palmyra, New Jersey. Avison Young principals Matthew Marshall and Jim Scott, associate Jack Owens and Cushman & Wakefield Executive Vice Chairman Chuck Fern represented Crow Holdings. Cushman & Wakefield Executive Vice President Jason Barton represented third-party logistics operator YesWay.
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Keystone signed jeweler Paul Morelli to a 10K SF office lease at The Washington, its historic tower at 510 Walnut St. The luxury artisan will move its headquarters and atelier from 1118 Walnut St., where it will maintain a showroom, when the new space is ready, which is estimated to be August 2024.
Like at the nearby Curtis building, Keystone is preparing to convert office space at The Washington to multifamily when major tenant Chubb vacates for its build-to-suit at 20th and Arch streets.
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Rivers Casino has leased a three-floor block of apartments at The Battery, Lubert-Adler Real Estate Funds’ redevelopment of a former power plant in Fishtown, and will operate the block as an all-suite hotel with 62 units for casino guests.
Riversuites, as the offering has been dubbed, will occupy the third, fourth and fifth floors of the south boiler house, where windows overlook Penn Treaty Park and the casino just beyond. Some fifth-floor units are loft-style suites; there is no dedicated sixth floor in that part of the building.
Rivers, owned by Rush Street Gaming, is investing $7M in the project, which includes a first-floor lobby and amenity offerings like an indoor basketball court. Though the property is only an eight-minute walk along the Delaware River Trail from the casino, Rivers will also operate a 24/7 shuttle from door to door.
Riversuites could be open as soon as this fall.
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Colorado-based Real Capital Solutions signed three tenants to more than 39K SF at Rockwood Office Park, a three-building, 210K SF campus in Wilmington, Delaware. The largest of the three leases was to solar energy systems dealer SunnyMac Solar for 23K SF. The Delaware Department of Insurance took nearly 9K SF, and an unnamed global industrial firm leased nearly 8K SF.
CBRE Senior Vice President John Kaczowka represented Real Capital Solutions in all three leases at Rockwood Office Park, which was renovated in 2020.
CONSTRUCTION
One of PREIT's largest new tenants, Tilted 10, opened the second phase of its 103K SF entertainment complex at Willow Grove Park Mall. A full bowling alley, mini-golf course, laser tag and party rooms are now open after second-floor offerings like an arcade and bumper cars opened in March. The final component, a taco bar called Tilted Taco, is scheduled to open later this year.
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Mayor Jim Kenney, City Council President Darrell Clarke and Philadelphia Flyers mascot Gritty on Tuesday celebrated the opening of renovations at Fishtown Recreation Center on Montgomery Avenue, most notably an overhaul of the center's hockey rink. The $2.5M project, funded mostly by the city's Rebuild campaign with a contribution from the Flyers, also included a new pool.
On Thursday, Kenney, Clarke and representatives from the Philadelphia Union will cut the ribbon on $3.9M in improvements at Fotterall Square Park on North 11th Street in North Philadelphia. The park's improvements include basketball courts, a mini soccer field, lighting and walking paths.
FINANCING
DH Property Holdings obtained a $135M loan from investment management firm Barings for the construction of a two-building, 759K SF industrial development at 5000 Richmond St. in Northeast Philadelphia. DHPH began site work on the logistics center in May.
A Walker & Dunlop team advised DHPH on the financing deal after arranging a $40M equity investment from an unnamed life insurance company, which helped finance DHPH's acquisition of the site. Both buildings are being developed speculatively.
