Staying ahead of the curve

Real Estate Weekly, Sept 20, 2000

JEMB Realty unveiled its new office Telecom and Technology division, Tornado Telecom & Technology, with a well-received exhibit at the Telecom Business Conference and Expo held recently at the Jacob Javits Convention Center in Manhattan.

The new division will provide its expanding tenant base with the full range of resources - both in space requirements and engineering requirements - they need to optimize their potential, according to Joseph Jerome and Raymond Chalme, principals of JEMB Realty.

Growing demand from high-tech, telecom and New Media tenants prompted JEMB to form the new Tornado Telecom & Technology division to focus exclusively on the acquisition and redevelopment of suitable facilities for these expanding companies.

The "New" Telecom Business Conference and Expo, which returned to the Jacob K. Javits Convention Center for three exciting days of everything telecom, seemed like the perfect place to unveil JEMB's new Tornado Telecom & Technology division. The annual Telecom Business Conference and Expo is the only event to focus on the "new" converging telecom marketplace of voice, data, networking and Internet services.

JEMB and the New Tornado Telecom & Technology Division

JEMB acquired the New York Telecom Exchange@75 Broad Street in late 1999 and invested in a major capital redevelopment plan to reposition the building into the ultimate home for the technology industry. The property's occupancy rate has since risen to over 90%. The 675,000 square-foot property's impressive roster of existing tenants includes AT&T/TCG, Bell Atlantic, Nextlink, Level 3 Communications LLC, and Adelpha Business Solutions.

Subsequently, JEMB also acquired the former Scottsdale Galleria, a 700,000 square-foot shopping center in Scottsdale, Arizona, currently being converted to a mixed-use technology plus telecom center with a separate retail component. It will be renamed Scottsdale Technology Center.

On Sept. 14, JEMB also acquired the Atlanta Telecom Center at 3000 South Corporate Parkway in Forest Park, Ga., designed and built from the ground up as a telecommunications hub in a 108-acre technology office park just outside Atlanta. This latest acquisition offers over 200,000 square feet of immediately available high-tech space and further expands JEMB's reputation as the preeminent developer for telecommunications tenants.

JEMB Realty's plans involve designating a team of reputable engineers, establishing a detailed master plan. for routing of the power feeders, telecommunications risers and inter-connections, grounding cables, antennas and emergency back-up. Moreover, JEMB Realty also designs and builds generator farms and fuel oil distribution systems to allow tenants to install and manage their own generators.

"The enthusiastic response we've received from the technology and telecommunications tenants prompted our latest venture," said Mr. Chalme "Our newest division strategically aligns our tenants' needs to not only compete, but thrive in this emerging marketplace. Our long term commitment to the industry, and flexibility to move with it, will ensure success for this venture. From answering questions regarding power requirements to planning for growth and expansion, we provide one-stop-shopping for our telecommunications and technology tenants."

Emerging telecom, dot-com and new media companies share unique requirements that are literally changing the face of the real estate industry. In the 21st Century, location is redefined as how close to major underground fiber routes a property is located. Physical infrastructure needs are critical, including large floorplates, wide column spacing, high ceilings, redundant power and multiple broadband telecommunications connections. Opportunity to expand quickly within the same property is also crucial to these high-tech tenants.

JEMB's current business plan calls for the evaluation of other sites throughout the country and in Canada, with plans to develop additional facilities to meet the growing space needs of the exploding telecommunications and technology industry. The firm is currently under contract for several new facilities in the Northeast and Midwest. Target cities include Newark, NJ, Phoenix, AZ and Boston, MA.

JEMB Realty Corp. was founded in 1990 by Joseph Jerome and Raymond Chalme The company's extensive experience has encompassed the management, development and leasing of commercial property in New York, New Jersey, Texas and Canada. The firm's current portfolio includes over 3.5 million square feet of commercial property, 650 hotel rooms, 700 apartment units, 10 climate controlled self-storage facilities throughout the Southwest, several shopping centers and potential new development sites in Manhattan.