RealEstate MattersSummer 2019

1High Real Estate Group LLC 800.638.4414

In This IssueLuxury Apartments Are Coming to Kennett Square ............................................ 1President’s Message ......................................... 2Now Open: Lancaster Marriott East Tower and Rooftop Bar ........................... 2New “Front Door” to Be Developed at The Crossings ............................................... 3About Attorney-Client Privilege ..................... 6High Giving Through PA’s EITC Totals $100,000 ................................................. 7Do You Have a Real Estate Strategy? ............. 9

High Real Estate Group’s newest apartment development project will bring a new luxury apartment community to

Chester County. Located on a 14.4-acre tract at 603 Millers Hill Road, The Flats at Kennett will be Kennett Square’s newest apartment community and will open in 2020.

What drew us to this opportunity was a need for high quality rental housing in Kennett Square and this site’s proximity to Route 1, walkable distance to downtown Kennett Square and Anson B Nixon Park. Additionally, the location is central to major employment centers in the Brandywine Valley.

Left to right: Rick Stoudt, President, High Construction Company; Tony Seitz, VP - Development, High Real Estate Group LLC; Rich Aljian, Partner, Merion Partners; Brad Mowbray; Mark Fitzgerald, President and COO, High Real Estate Group LLC; Andrew Soule, Vice President, M&T Bank; Ross Ansel, Project Architect, Greenfield Architects Ltd.; Richard Leff, Vice Chair, Kennett Township Board of Supervisors

continued on page 4

For our latest thinking on what matters to you in real estate, please visit www.highassociates.com.

Luxury Apartments Are Coming to Kennett SquareBy Brad Mowbray, Senior Vice President & Managing Director - Residential Division, High Associates Ltd.

The Flats at Kennett will be Kennett Square’s newest apartment community and will open in 2020.

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RealEstate Matters

In this issue of Real Estate Matters you will see the beginning and end of some significant developments that are shaping not only our business, but more importantly the communities we serve.

The vacant Toys R Us property adjacent to The Crossings at Conestoga Creek has recently been purchased by High for redevelopment worthy of its prominent location at Lancaster city’s western gateway.

The Lancaster Marriott East Tower has opened, adding 110 rooms to downtown Lancaster, which independent studies confirmed are needed to help boost the size and quality of events at the publicly-owned Lancaster County Convention Center.

And The Flats at Kennett Square will bring the same luxury apartments to Chester County that has proven to be so popular in Lancaster at The Reserve at Greenfield and The Crossings at Conestoga Creek.

The key to any successful development is marrying the needs of the market, based on in-depth market research, with a vision of the developer and ownership. As a full-service real estate resource, High Real Estate Group brings together the milieu of team members with in-house expertise in development, design, construction, leasing, and asset management. We harness the passion and commitment of our dedicated co-workers to create attractive projects that enhance our community.

High Real Estate Group is uniquely qualified to serve your real estate needs. We’re committed to doing the right thing, by educating ourselves both individually and in a team environment to meet your needs. If you are considering a development project, we would welcome the opportunity to help you find the best path forward.

President’s Message

Mark FitzgeraldPresident and Chief Operating Officer High Real Estate Group LLC 717.293.4446 mfitzgerald@high.net

Now Open: Lancaster Marriott East Tower and Rooftop Bar

T he $39.4 million expansion of the Lancaster Marriott, the new East Tower has opened adding 110 guest rooms to the hotel. The Exchange, a unique rooftop bar

on the 12th floor of the tower, has also opened. Plough, a new restaurant to redefine Penn Square, will open in August, 2019.continued on page 5

The new East Tower brings a lively streetscape and venue to Downtown Lancaster.

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A vacant retail building on a 6.3-acre site at 1430 Harrisburg Pike, catty-corner from Park City Center and situated at

the interchange of US Route 30 and Harrisburg Pike, will be integrated as another component of the mixed-use Crossings project. The property was previously owned by a Toys R Us affiliate and includes a vacant 47,000-square-foot building. High purchased the property in May 2019.

As everyone in the development business knows, timing is everything when it comes to deals like these. Though we weren’t able to integrate this parcel into our original plans, once redeveloped, it will make an excellent front door for The Crossings.

Anchored by a Wegmans grocery store, The Crossings is a Main Street-oriented, mixed-use project that caters to a contemporary “cool-convenient” lifestyle embodying a live- work-stay-play mentality. The Crossings is strategically positioned at the western gateway to Lancaster city, and this parcel is uniquely positioned to physically extend the visibility of The Crossings project to the interchange. Passers-by will notice that early site preparations have begun to enhance the exposure of

the property to Route 30 and Harrisburg Pike. It’s ideally suited for tenants whose brand and surrounding environment and amenities are crucial to their success.

As the developer/owner of The Crossings, High was the natural buyer for the parcel. A prominent infill project like this one offers an exciting opportunity to demonstrate smart growth principles that are matched to market demand while ensuring responsible, sustainable growth within the urban growth boundaries that contribute to Lancaster’s vibrancy. As always, our goal is to do it in an innovative way and to everyone’s benefit.

New “Front Door” to Be Developed at The CrossingsBy H. Stephen (Steve) Evans, Senior V.P. and Managing Director - Retail Division, High Real Estate Group LLC

H. Stephen (Steve) Evans Senior V.P. and Managing Director - Retail Division High Real Estate Group LLC 717.209.4069 sevans@high.net

The former Toys R Us (far right) will be integrated into The Crossings at Conestoga Creek.

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Luxury Apartments Are Coming to Kennett Square continued from page 1

KENNETT SQUARE APARTMENTSMILLER'S HILL & WALNUT STREET, KENNETT SQUARE, PENNSYLVANIA 19348

NOVEMBER 09, 2018

The Flats at KennettUpscale Apartment Living

175 UnitsStudio, one-, two-, and three-bedrooms

Four Stories with secure access and elevators

Private Balconies on 90 percent of units

Amenities Pool, fitness center, walking trail, pet spa/dog bath, electric car charging stations and more

Apartments Quartz countertops, Stainless GE® ENERGYSTAR® appliances, under-cabinet lighting, shower stalls

LEASING IN SPRING 2020

• Upscale rental community comprised of three elevatored buildings

• Finishes and amenities that enhance any lifestyle

• Luxury, location and convenience

EXPERIENCE THE FLATS AT KENNETT35 min to

King of Prussia, PA

15 min to Wilmington, DE

KENNETT SQUARE, PA

The project consists of three buildings, with 175 units and elevators. There will be 23 enclosed tucked-under parking spaces in the garage of Building 3. The design calls for upscale amenities

and finishes such as quartz countertops and stainless-steel GE® ENERGYSTAR® appliances, a fitness center with state-of-the-art continued on page 5

High Associates will manage The Flats at Kennett and will begin leasing units in spring 2020

5High Real Estate Group LLC 800.638.4414

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Brad Mowbray Senior Vice President & Managing Director - Residential Division High Associates Ltd. 717.209.4052 bmowbray@high.net

Now Open: Lancaster Marriott East Tower and Rooftop Bar continued from page 2

Luxury Apartments Are Coming to Kennett Square continued from page 4

The upgraded facility and increase in the number of hotel rooms available at the Lancaster Marriott will play a vital role in drawing more meetings, conventions and special events to the adjoining publicly-owned Lancaster County Convention

The Exchange, a new rooftop bar for Lancaster, is located on the 12th floor of the Lancaster Marriott East Tower.

Center. The integrated facility marked its 10-year anniversary this June.

equipment, an outdoor pool with fire pits, a pet spa, a bike storage room and much more.

At four stories, The Flats at Kennett offers an efficient model for land utilization with reduced environmental impact. This type of development—growing up rather than out in appropriately zoned locations—is a form of smart growth that preserves the site’s natural beauty while fostering distinctive, attractive communities with a strong sense of place.

We’re grateful to our co-workers at Greenfield Architects Ltd. and High Construction Company, who partnered with us on this project. The close collaboration between the High companies’

team of professionals helps us design, construct, and operate a superior product that exceeds our residents’ expectations.

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Long recognized as necessary to enable a client to seek—and an attorney to provide—legal advice, attorney-client privilege

allows both parties to proceed without the fear that the legal advice will be used against or to the detriment of the client. The privilege belongs to the client and if found to exist, can only be waived by the client.

All communications to or from an attorney, or the attorney’s subordinates, are not by definition privileged. The communi-cations must satisfy certain criteria to be privileged. Courts are especially careful when determining if communications to or from an in-house counsel are privileged as in-house counsel in addition to their legal role often perform roles or functions that are not legal in nature.

The United States District Court for the Eastern District of Louisiana in the case Texas Brine Company, LLC v. Dow Chemical Company, et al. recently summarized the factors a court will consider in determining if a communication is attorney-client privileged. The Court cited three factors: the communication must be (1) confidential; (2) to a lawyer or someone who reports

to a lawyer; and (3) for the primary purpose of obtaining a legal opinion, legal services or related to a legal proceeding. If all three factors are not met, the communication will not be accorded attorney-client privileged protection.

What does that mean as a practical matter?

Routine communications are generally not privileged. A communication merely conveying facts is generally not privileged, and if attorney-client privileged, the facts conveyed are discoverable. A communication that simply lists the attorney as a cc will not be privileged. A communication that specifically seeks legal advice will not be privileged if a number of recipients or cc’s are included who are not in a decision-making role with regard to the subject matter of the communication. A communication from the attorney providing legal advice will not be privileged if it is shared with or forwarded to individuals not in a decision-making role with regard to the subject matter of the communication.

About Attorney-Client PrivilegeBy Terry Warco, General Counsel, Treasurer & Secretary, the High companies

continued on page 7

Limit the recipients to other involved decision makers

Request legal advice or assistance

Do not forward or share the response

Confidentiality must be protected

Address communications to the attorney

What steps should you take to be sure a communication will be covered by the attorney-client privilege?

7High Real Estate Group LLC 800.638.4414

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Terry A. WarcoGeneral Counsel, Secretary, and TreasurerThe High companies717.293.4077twarco@high.net

About Attorney-Client Privilege continued from page 6

What steps should you take to be sure a communication will be covered by the attorney-client privilege? Address communications to the attorney, and limit the recipients and cc’s only to other involved decision makers. Specifically request legal advice or assistance. Do not forward or share the response. Confidentiality must be protected.

The above are things for you to think about and do not constitute legal advice. Before you enter a contract, consult with a qualified attorney.

Terry A. Warco is General Counsel, Treasurer, & Secretary, of the High companies.

High Giving Through PA’s EITC Totals $100,000The High Companies and High

Foundation have a long tradition of contributing to Central Pennsylvania and the communities in which we do business. Pennsylvania’s Educational Improvement Tax Credit (EITC) program is a way for us to enrich educational opportunities for students and earn tax credits by donating to an Educational Improvement Organization. Through EITC, businesses may receive a tax credit equal to 90 percent of their contribution to an eligible Scholarship Organization and/or to an Educational Improvement Organization, up to $750,000 per taxable year.

Cocalico Education Foundation

SPARKS Foundation Inc.

continued on page 8

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High Giving Through PA’s EITC Totals $100,000 continued from page 7

In 2019 High contributed to 11 educational organizations. Our leadership, co-workers, and ownership believe that a key role of business is to help solve community challenges. The PA EITC aligns

Thaddeus Stevens Foundation

Pennsylvania College of Technology

with our beliefs, and we are delighted to support the important work of these educators.

RealEstate Matters

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Your Full Service Real Estate Resource

High Real Estate Group LLC

1853 William Penn WayP.O. Box 10008Lancaster, PA 17605-0008Tel: 800.638.4414www.highrealestategroup.com

© 2019 High Real Estate Group LLC

RealEstate Matters

Real Estate Matters: Recognized for Excellence Since 2001

• Industrial / commercial brokerage, leasing, and development• Asset and property management• Strategic planning and consultation• Corporate real estate services• Appraisal services• Construction services• Architectural design• Hotels• Real estate investments

Services:

High Associates Ltd. www.highassociates.com

High Construction Company www.highconstruction.com

Greenfield Architects Ltd. www.greenfieldarchitects.net

High Environmental Health & Safety Consulting Ltd. www.highehs.com

High Hotels Ltd. www.highhotels.com

Affiliates:

Almost all business leaders have participated in some form of strategic planning for

their organizations. But how many of those plans specifically consider the comprehensive real estate issues facing their firms in the years ahead? Our experience at High Real Estate Group is that most businesses’ strategic plans do not fully address this critical issue.

To develop an appropriate real estate strategy for your business, first determine if you have the expertise in your firm to evaluate and link your organizational goals to your use of real estate. If the answer is no, then the support of a full-service real estate consultant capable of managing and championing the process should be engaged. Just as lawyers, accountants, and other professional consultants are utilized to help craft a businesses strategy, the knowledge and guidance of a qualified professional in the field of real estate can yield huge dividends to an organization.

Developing any important business strategy that will influence the future of your business can be tough and complicated work. Organizational goals or strategies must be linked to a real estate strategy that supports the organizational strategy. There also should be measurement tools in place to determine if the real estate strategy is working, just as any good business has systems to monitor progress of other organizational strategies.

With extensive expertise in brokerage, planning, development,

Do You Have a Real Estate Strategy?By Bill Boben, CCIM, SIOR, Senior V.P. - Sales and Leasing, High Associates Ltd.

design, and construction, High is uniquely positioned to advise on these matters. If you’re in need of a consultation, we are available to help you build a strategy that will help you accomplish your goals.

Bill Boben, CCIM, SIORSenior V.P. - Sales and LeasingHigh Associates Ltd.717.209.4012bboben@high.net