Manufacturing.net - Rimas Properties-Rotem Lease Agreement

Manufacturing.net - October 23, 2007
Hyundai Subsidiary Building Railcars In Philly

PHILADELPHIA (AP) -- A Hyundai Motors Group subsidiary next year will begin manufacturing railcars at a new U.S. headquarters in South Philadelphia.

Rotem USA Corp. has finalized a 20-year lease with Rimas Properties that will allow it to develop the new facility in the city's Pennsport neighborhood. The company plans to invest $10 million into upgrading the property.

The plant will produce railcars for the Southeastern Pennsylvania Transportation Authority and other transit agencies, officials said. The company has said it expects to reach full-scale production, about 200 railcars a year, by the end of next year.

Rotem has a $176 million contract to make 87 cars for the Southern California Regional Rail Authority and a $244 million deal to assemble 104 railcars for SEPTA.

Rotem USA is the American subsidiary of Rotem Co., a division of Hyundai.

Rotem had previously planned to build the cars elsewhere in South Philadelphia, but the new site is bigger and will require less refurbishing, officials said.

Finanz Nachrichten - Railcars to be built in Philadelphia

Finanz Nachrichten - october 10 2007
Railcar maker to build plant in Philly

PHILADELPHIA (AP) - A Hyundai Motors Group subsidiary next year will begin manufacturing railcars at a new U.S. headquarters in South Philadelphia.

Rotem USA Corp. has finalized a 20-year lease with Rimas Properties that will allow it to develop the new facility in the city's Pennsport neighborhood. The company plans to invest $10 million into upgrading the property.

The plant will produce railcars for the Southeastern Pennsylvania Transportation Authority and other transit agencies, officials said. The company has said it expects to reach full-scale production, about 200 railcars a year, by the end of next year.

Rotem has a $176 million contract to make 87 cars for the Southern California Regional Rail Authority and a $244 million deal to assemble 104 railcars for SEPTA.

Rotem USA is the American subsidiary of Rotem Co., a division of Hyundai.
Rotem had previously planned to build the cars elsewhere in South Philadelphia, but the new site is bigger and will require less refurbishing, officials said.

Cirque du Soleil @ Rimas Properties Site, Broad & Washington

Cirque du Soleil - KOOZA
Opens on May 8, 2008 Under the Grand Chapiteau, on Avenue of the Arts for performances from May 8 to June 15, 2008.

For Tickets & Info SEE LINK: http://www.cirquedusoleil.com/CirqueDuSoleil/en/showstickets/kooza/tickets/philadelphia.htm

Urban Job Growth...Rimas Properties

RIMAS Properties
11 - 15 No. 2nd Street, Philadelphia, PA
Contact: Sammy Benakmoume (215)351-9366 sammy@rimasproperties.com

Major New Industrial Lease Helps Reverse Trend of Urban Job Loss

Rotem USA Corp American Subsidiary of a Hyundai Opens Rail Car

Manufacturing Facility In Philadelphia

Owner Rimas Properties Leases 11.5 acre 290,000 sq. ft.

Facility Creating An Influx of 300 Manufacturing Jobs

Philadelphia, PA – Rotem USA Corporation, the American subsidiary of Rotem Company, a division of the Hyundai Motors Group, will create its new U.S. headquarters and approximately 300 new manufacturing jobs in the Pennsport area of South Philadelphia.

Under the recently concluded 20 year lease with owner/developer Rimas Properties, Rotem USA will transform the 290,000-square foot vacant industrial building at 2400 Weccacoe Avenue into a state-of-the-art rail car manufacturing facility. The new plant will produce rail cars for Southeastern Pennsylvania Transportation Authority (SEPTA) and transportation systems in other parts of the country.

The property is adjacent to the Port of Philadelphia and consists of 25,000 square feet of office space and 265,000 square feet of manufacturing space on 11.5 acres. Rotem USA expects to invest approximately $10 million in the property for their specialized manufacturing requirements including upgrading exterior rail lines and creating new interior rail lines.

Patrick Green, Executive Vice President, and Mike Mullen, Associate, of the Philadelphia Office of CB Richard Ellis, Inc. arranged the transaction between Rotem USA and Rimas Properties. The decision to remain in Philadelphia came after many months of evaluating potential industrial sites throughout Southeastern Pennsylvania.

Rimas Properties played an integral role in Rotem USA’s ability to keep their production line in Philadelphia. Recognizing the need to bring quality jobs to Philadelphia, Rimas Properties accepted below-market rental rates and offered favorable, long-term commitments designed to foster Rotem USA’s growth in the area.

Sammy Benakmoume, President of Rimas Properties said, “As Philadelphia residents ourselves, we felt that it was critically important to secure 300 new jobs here in the city. Protracted negotiations at the expense of the community would not have aligned with our firm’s values.”

Rotem USA was awarded a contract to manufacture 120 new Silverliner V passenger rail cars for the Southeastern Pennsylvania Transportation Authority (SEPTA) regional rail system in 2006. This contract has a “Buy America” provision whereby the final assembly of the rail cars must be performed in the US as well as 60% of the vehicle content must come from US suppliers.

Since the initial SEPTA contract, Rotem USA was also awarded a contract to manufacture 121 bi-level stainless steel rail cars for Southern California Regional Rail Authority’s (SCRRA) Metrolink commuter rail service. Due, in part, to the inefficiencies of operating facilities on both the East and West Coasts and the availability of a skilled manufacturing labor pool, Rotem decided to fulfill both contracts from this Philadelphia location.

Rotem officials expect to begin production of the railcars in 2008 and will continue to pursue additional contracts throughout the United States.

Rimas Properties Acquires Broad & Washington Development Site

RIMAS Properties
11 - 15 No. 2nd Street, Philadelphia, PA
Contact: Sammy Benakmoume (215)351-9366
sammy@rimasproperties.com or http://www.rimasproperties.com/

Rimas Properties Granted C-5 Zoning For 5.5 Acre Broad & Washington Development Parcel Mixed Use Twin Tower Complex Envisioned by Rimas Properties
Hailed As The Gateway to the Avenue of the Arts!

PHILADELPHIA, PA -- The Philadelphia based development firm Rimas Properties has been granted C-5 Zoning for its 5.5 acre Broad Street and Washington Avenue development site in South Philadelphia. This is the next major step toward the development of an iconic large scale mixed use twin tower complex envisioned by Rimas Properties.

The project is being hailed by city officials as the city's most significant development parcel and the new gateway to the Avenue of the Arts and Center City.

According to the Sammy Benakmoume, President of Rimas Properties, the project will include office space, apartments, condominiums, an expansive up-scale retail center, and parking. Plans also call for an innovative open green space that sits six stories high atop the retail mall area.

Rimas Properties has released dramatic new renderings of the Broad & Washington project offering a sense of the dynamic overall design theme of the development. (SEE ATTACHED jpg)

With approvals from the city and financing in place, Rimas Properties is working with community groups address concerns about the scale of the project and its impact on the surrounding residential and commercial neighbors.

Rimas Properties projects that construction will begin on the 5.5 acre site roughly a year from now. The developer has also confirmed that Cirque du Soleil will have one more series of shows on the site, and that early discussions with lead tenants are underway.

Sidewalk Issue At 1352 Lofts Resolved!

RIMAS International - 1352 South LLC
11 - 15 No. 2nd Street, Philadelphia, PA
Samir Benakmoume (215)351-9366 www.1352lofts.com or sammy@rimasproperties.com

Under A Consent Decree The City of Philadelphia and

Rimas Properties, 1352 SOUTH, LLC Have Entered Into an Agreement
To Resolve The Sidewalk Issue At 1352 Lofts, South Street

PHILADELPHIA, PA -- An agreement has been reached between the City and Rimas Properties to remedy the problem of the sidewalk width on South Street in front of the 1352 Lofts. In a Consent Decree issued on Friday, June 13, with no finding of fault, both parties have agreed that the terrace in front of the retail units of the building will be reduced to no more than 5 feet from the current 6.7 feet.

The issue was being negotiated under similar terms when in late June several local media outlets reported that RIMAS Properties had "annexed the sidewalk" and "had been ordered by the City to removed the terrace" in front of its 1352 Lofts condo building.

In fact, the resolution of the sidewalk encroachment which did not conform to code and a permit discrepancy overlooked by the contractor working for Rimas Properties, were already under negotiation with the City and the Hawthorne Empowerment Coalition neighborhood group when the media reports surfaced. The only enforcement action was a stop work order issued on June 29, and no demand had ever been made to remove the entire terrace.

Samir Benakmoume, President of Rimas Properties acknowledged the problem and had been working with the City and the Hawthorne Empowerment Coalition neighbors group for over a month to resolve the matter. He also publicly apologized for any inconvenience caused by the sidewalk issue in a letter to the editor in the Philadelphia Weekly (7/4/07).

The agreement requires that plans for the work be submitted by Rimas Properties to the City within 10 days, with the work to be completed within 30 days. The Court imposed a $100,000 conditional fine which could become absolute if the terms of the Consent Decree are not met.

1352 Lofts Condos Sell...Amid Market Downturn...

1352 Lofts
1352 South Street, Philadelphia, PA
RIMAS Properties, 11 - 15 No. 2nd Street, Philadelphia, PA
Contact: Sammy Benakmoume (215)351-9366
http://www.1352lofts.com/ or sammy@rimasproperties.com

Amid Warnings Of A Market Downturn...

1352 Lofts Closes Seven

$500K

Plus Sales in Q1 of 2007!
Exciting New 1352 Lofts Bring Value and Energy
To Vibrant South Broad Street District

PHILADELPHIA, PA -- While headlines are ominous about the real estate market decline, the dramatically designed 1352 Lofts, South Street just east of Broad, are selling briskly in the $500,000 - $1 million range without discounts or special incentives.

"It's a matter of quality and standards," says 1352 Lofts developer Sammy Benakmoume, President of RIMAS Properties, which is also doing several large-scale industrial, commercial and residential ventures in Philadelphia.
"We start from the basic principle that we are asking our clients to make the most important investment of a lifetime, and they deserve nothing but the very best in design, construction, materials, amenities and service."

With this relentless pursuit of excellence RIMAS Properties has helped prime a development surge which savvy buyers seem to sense. "Once people began to see the bold brick and glass facade and interesting profile emerging, they started seeing 1352 Lofts in the context of this ideally situated neighborhood within steps of center city," says Benakmoume explaining the sudden surge.

While confirming that some earlier contracts at 1352 Lofts did not come to settlement, Benakmoume is quick to point out that they were all replaced by other buyers with no adverse financial results for RIMAS Properties and the project.

The new 1352 Lofts located on South Street just east of Broad, is a prime example. This gleaming modern 158,000 sq. ft., six-story building situated next to the Arts Bank offers Class A ground floor retail space and 72 dramatically designed condominiums with unparalleled cityscape views.

The neighborhood has seen a marked resurgence in recent years with the opening of new restaurants and retailers, the energy of the nearby Kimmel Center and developments like the 1352 Lofts.

According to Sammy Benakmoume of RIMAS Properties the challenge of real estate today is making a contribution by creating and rebuilding communities. "Old City, Rittenhouse, Society Hill already have a good supply of quality real estate," says Benakmoume, who has successfully developed residential properties throughout Philadelphia and South Jersey.

"The South Broad Street area offers exceptional quality of life advantages, including easy access to center city, cultural attractions, public transportation, and convenient shopping areas. This is a neighborhood that really needed the infusion of new businesses and high quality residential properties. And now it is beginning prosper."

The 1352 Lofts were designed by the noted Philadelphia architectural firm Granary Associates, and take full advantage of the buildings north facing view of the center city skyline with soaring floor to ceiling glass window-walls.

The units are flats and bi-levels ranging in size from 800 - 2,900 sq. ft. All 1352 Lofts units feature the top quality amenities including high-ceilings, hardwoods floors, terraces, luxury baths and European-style gourmet kitchens.

Most importantly says Benakmoume, "All of the 1352 Lofts are flexible and versatile for young people with growing families as well as suburban empty-nesters making a lifestyle move. Everything that you need is there and the units are ready for owners to express their personal tastes and needs."

The 1352 Lofts also offers comprehensive concierge service, 24-hour security and indoor parking. Floor plans and pre-construction pricing information are available by calling Kathy & Patrick Conway @ Prudential Fox & Roach Society Hill 215-440-8190.

The 1352 Lofts retail space and condominiums will be ready for occupancy by September 2006. These properties qualify for the city 10 year tax abatement and condos fees will be reasonable. With prices ranging from under $400,000 to $1.4 million the 1352 Lofts offer strong value, premium amenities and exceptional location advantages.

The $30 million 1352 Lofts development project is financed by Amalgamated Bank of New York, trustees of the Longview Ultra Construction Pension Fund.