Month: November 2020

Practice Group: Land Use, Zoning & Redevelopment

Practice Group Leader: Chris J. Murphy, Esq.

Recent Matters:

• Represented developer in connection with approvals for an 11-story mixed-use building, including 343 apartment units, a 226-space parking garage, and a new performing arts center in Jersey City, NJ. The project will anchor the University Place Performing Arts Center District under New Jersey City University’s West Campus Redevelopment Plan.
• Represented institutional client in connection with approvals for a 120,000 square foot Class A warehouse in Newark, NJ.
• Represented developer in connection with approvals for a 40-unit mixed-use development in Newark’s Central Ward.
• Represented client in connection with approvals for a luxury pet hotel in Hillsborough, NJ.
• Represented client in connection with approvals for a Sky Zone Trampoline Park in Bergenfield, NJ.

COVID-19 Impact and Moving Forward: In April of this year, the New Jersey Department of Community Affairs (DCA), through the Division of Local Government Services (DLGS), issued COVID-19 Operational Guidance for municipal planning and zoning boards for operating and holding public meetings during the COVID-19 crisis. This was a game changer. While a few municipalities have been slow to adjust, most have taken advantage of the guidance and have developed highly successful virtual hearing protocols. We have seen a concerted effort by municipalities to work with developers to navigate these uncertain times.

We do believe that the commercial real estate market is fundamentally strong, and there remains a strong desire to complete new development projects. We expect to see an increase in activity in 2021. As it has been during this past year, the industrial sector will continue to be a source of growth in 2021, and if the newly-announced vaccines and improved treatments for COVID-19 prove to be successful, there will be increased activity in the hard hit sectors of office, retail and hospitality as well.

MSW’s attorneys have the experience to assist developers in navigating the complex entitlement process throughout New Jersey.

Contact Us: For more information about MSW’s Land Use Group, please contact Chris J. Murphy, Esq. at (973) 705-7421 or cmurphy@murphyllp.com

Practice Group: Real Estate Finance

Practice Group Leader: Charles J. Wilkes, Esq.

Recent Matters:

• Represented a New Jersey bank in connection with the $20,000,000 refinance of a portfolio of retail properties in Bergen, Hudson and Union Counties.
• Represented an international bank in connection with $21,000,000+ in revolving and term loan credit facilities to a New Jersey-based distributor, secured by a mortgage on New Jersey industrial property.
• Represented a national bank in connection with the $30,000,000 refinance of a Mercer County apartment complex.
• Represented a New Jersey developer in connection with a $21,650,000 agency refinance of a Gold Coast apartment complex.

COVID-19 Impact and Moving Forward: As most people in our industry are aware, COVID-19 has had a particularly detrimental impact on mortgage loans in the office, retail and hospitality sectors. As a result, lenders have certainly been more conservative in their approach to new loans and new borrowers across the board. However, we continue to see lenders and borrowers working collaboratively together to close deals in this difficult environment.

We do believe that the commercial real estate market is fundamentally strong, and there remains a strong desire to complete new deals. We expect to see an increase in lending transactions in 2021, with low interest rates continuing to prevail. As it has been during this past year, the industrial sector will continue to be a source of growth in 2021, and if the newly-announced vaccines and improved treatments for COVID-19 prove to be successful, there will be increased activity in the hard hit sectors of office, retail and hospitality as well.

MSW’s attorneys have the experience to assist lenders and borrowers alike in navigating through the turbulence of the current market.

Contact Us: For more information about MSW’s Real Estate Finance Group, please contact Charles J. Wilkes, Esq. at (973) 705-7422 or cwilkes@murphyllp.com

Murphy Schiller & Wilkes LLP (MSW) is pleased to announce that Chris Murphy and Matthew Schiller have been named to ROI-NJ’s 2020 Influencers – Real Estate List. The list contains influential “power players” helping to shape New Jersey’s real estate industry. In recognizing the firm, ROI-NJ stated the following:

“We would call them up-and-comers, but they already have arrived. Earlier this year, Schiller (and Charles Wilkes) joined the boutique firm, becoming name partners (along with Kellen Murphy) while adding depth to its services.”

The full list can be found here: https://www.roi-nj.com/2020/11/18/roi-influencers/real-estate/2020-real_estate/roi-influencers-real-estate-2020-service-providers/

Property owners in New Jersey that have engaged in recent improvements or expansions of their property or purchased tax exempt property this year may be at risk for an unexpected tax increase by way of an added or omitted assessment. Taxpayers are typically surprised to receive these tax notices seeking additional property taxes going back two years in some cases.

In October of each year, tax assessors send out notices of added or omitted assessments that allow them to assess new construction or physical alterations to properties that have been completed in that calendar year. The added assessment is the amount of the difference between the property assessment before the improvement and the value of the entire property after the improvement. The improvement is valued as of the first day of the month following substantial completion and is prorated for the number of full months remaining in the tax year.

In the case of previously exempt property, the added amount is the tax due on the property without the exemption, prorated from the date the property became non-exempt. A property may lose its exemption for various reasons, including purchase by a for profit entity or a change in the use.

The added assessment and the omitted assessment taxes are due on November 1, 2020. The strict deadline for filing an appeal of the added or omitted assessment is December 1, 2020.

If you received an added or added omitted notice or are otherwise considering whether to file a property tax appeal for the upcoming year, the experienced team at Murphy Schiller & Wilkes LLP is ready to provide a complimentary evaluation of your property. If we determine that an appeal will be beneficial, we will recommend a strategy to reduce your tax burden and can file and pursue your appeal.

As a boutique law firm specializing in commercial real estate, our team has invaluable insight into the real estate market and has successfully litigated the value of virtually all property types. Our team also has considerable experience advising on tax exemptions, or other tax incentive programs, that may be available to reduce your property tax burden outside of the appeal process. Our experience and deep broad-based knowledge allow us to consider all options that may be available to potentially reduce your tax burden.

For additional information concerning our property tax appeal services, or to request an evaluation of your property, please feel free to reach out to Thomas Dolan at (973) 705-7412 or tdolan@murphyllp.com.

Practice Group: Acquisitions & Sales

Practice Group Leader: Kellen F. Murphy, Esq.

Recent Matters:

• Represented developer in connection with acquisition of land for the development and construction of a 500,000 square foot industrial building in Phillipsburg, New Jersey. Negotiated limited partnership agreement and development management agreement with institutional equity partner for the project.
• Represented design/build developer in connection with sale of 200,000 square foot build-to-suit industrial building in Somerset County, New Jersey.
• Represented private equity firm in connection with $35,000,000 sale of multi-tenant office building in Florham Park.
• Represented defense contractor in connection with sale of headquarters and manufacturing facility in Barrington, New Jersey.

COVID-19 Impact and Moving Forward: The impact of COVID-19 on the commercial real estate industry has been widespread. As most people in our industry are aware, the virus has had a particularly detrimental impact on the office, retail, hospitality, and multifamily sectors. The economic challenges created by the virus have resulted in numerous tenant defaults, often materially impacting the ability of purchasers to finance acquisitions.

Nevertheless, we believe that things are beginning to turn a corner, and we expect to see an increase in transactions in 2021. As it has this past year, the industrial market will likely lead the way. The industrial market has stayed strong through the first eight months of the COVID-19 pandemic, and we anticipate that it will continue to do the same in 2021. If a vaccine for COVID-19 is rolled out early next year, we are hopeful that we will also see increased activity in the retail, multifamily, and office sectors, which have been the hardest hit by the virus.

MSW’s attorneys have the experience to assist purchasers and sellers alike navigate through the many unprecedented challenges that COVID-19 has contributed to the real estate market.

Contact Us: For more information about MSW’s Acquisitions & Sales Practice Group, please contract Kellen F. Murphy, Esq. at (973) 705-7420 or kmurphy@murphyllp.com.