Ascend Hotel Collection Opens Three Properties In Baltimore

By Adrian Maties, Associate Editor

Ascend Hotel Collection announced last week its debut in Baltimore, with the opening of three boutique hotels in the vibrant waterfront neighborhoods of Inner Harbor and historic Fells Point. Just last month, the company expanded its fast-growing portfolio with the addition of new boutique hotels in Napa Valley, Sedona, Carmel and New Orleans, and it plans to open even more properties in such premier destinations as Las Vegas, Aruba, Miami, Orlando and Cape Cod.

The three hotels are the Inn at Henderson’s Wharf, Pier 5 and Admiral Fell Inn. Meyer Jabara Hotels, an award-winning hospitality company, owns and manages them.

The Inn at Henderson’s Wharf is located on the Fells Point waterfront, close to boutiques, bars and restaurants. It was founded in 1893 and today is one of Baltimore’s top-rated hotels on TripAdvisor. With 38 newly upgraded guestrooms and two meeting rooms, the Inn offers its customers complimentary continental breakfast daily and an on-site 24-hour fitness center.

Pier 5 is also located on a private pier in Baltimore’s Inner Harbor. It has 66 guestrooms and 7,300 square feet of meeting and reception space for exquisite weddings and meetings. The National Aquarium, restaurants, nightlife and shops are all close by.

The Admiral Fell Inn is a European-style boutique hotel located on the Fells Point waterfront near pubs, restaurants and shops. A charter member of the Historic Hotels of America, the hotel is comprised of seven brick buildings dating back to the 1770s. It has 3,500 square feet of meeting and event space and 80 refurbished guestrooms and suites.

“Since its launch just a little more than four years ago, Ascend Hotel Collection has had incredible growth, adding distinctive properties operated by some of the top companies in the industry,” said Michael Murphy , senior vice president of upscale brands at Choice Hotels, in a press statement. “Our latest additions are true to the Ascend DNA. Within walking distance to great restaurants, nightlife and attractions, these exceptional hotels showcase the best of the local culture and go out of their way to help guests feel in the know about all that this city has to offer.”

Ascend Hotel Collection is part of Choice Hotels International, Inc. It currently has 80 hotels open throughout the United States, Canada, Europe, Central America and the Caribbean.

Photo credits: www.harbormagic.com

Baltimore’s Hunt Valley Inn Sold to Laurus Corporation

By Adrian Maties, Associate Editor

Laurus Corporation has completed the acquisition of the Hunt Valley Inn located in Baltimore. The U.S.-based private real estate investment and development firm made the announcement on March 26.

The Hunt Valley Inn is located at 245 Shawan Road, in Hunt Valley, Maryland. It features 393 guestrooms and 30,000 square feet of flexible meetings space as well as a fitness center, indoor/outdoor pool, business center, gift shop and tennis courts.

Hunt Valley Inn also holds the largest ballroom in the market. The Hunt Valley Ballroom has a maximum meeting space of 9,472 square feet and maximum seating capacity of 1,200, making it ideal for conventions and seminars. The hotel offers easy access to the city and is located close to Baltimore’s Inner Harbor, the Hunt Valley Towne Center, Oregon Ridge Park, Baltimore National Aquarium, the Maryland Science Center, Baltimore Maritime Museum, University of Maryland Baltimore, the Maryland Zoo, Camden Yards, the Baltimore Convention Center, and other entertainment and dining venues.

“The combination of the hotel’s strong cash flow, highly desirable location and unencumbered nature of the property makes this an opportunistic acquisition with tremendous upside potential,” said Philip Cyburt, chief executive officer of Laurus Corporation, in a press statement. “This marks our fourth capital allocation from Laurus’ Ethika Fund.”

Laurus Corporation will invest $9.5 million to renovate the property. The project includes a full-scale guest room renovation and the opportunity to develop an additional 4,000 square feet of meeting space to serve as an outdoor pavilion. After the renovation, the hotel will be branded as part of the Wyndham Grand Collection.

“The well-considered renovation program will reestablish the hotel’s dominant position in a dramatically improving market,” said Austin Khan, chief investment officer of Laurus Corporation. “The rebranding will drive ADR, boost demand and increase asset value.”

Photo credits: Hunt Valley Inn

St. John Properties Constructing 320,000 Square Feet of Speculative Office Space in MD and VA

By Adrian Maties, Associate Editor

St. John Properties, Inc. has announced it began construction on five new speculative office buildings in the Greater Baltimore and Northern Virginia areas. Even though there has been little speculative office construction in recent years,  the company is confident demand will rise and that it will find tenants to occupy the 320,000 square feet of space.

Three of the buildings are located in the Greater Baltimore area. They include two Class “A” office buildings and a R&D/flex building.

6170 Guardian Gateway is a new single-story, 25,160 square foot Class “A” office building in Harford County. It is part of The Government and Technology Enterprise (The GATE) project, a 416-acre business community located inside Aberdeen Proving Ground, and it is expected to be completed next month.

St. John Properties formed a  joint partnership with Greenebaum Enterprises, Inc. to construct 8135 Maple Lawn Boulevard. The four-story, 140,000 square foot Class “A” office building is located within Maple Lawn, a 600-acre mixed-use business community in Howard County. Construction on 8135 Maple Lawn Boulevard is expected to be completed this fall.

Construction is underway on 809 Pinnacle Drive. It is a 51,240 square foot, single-story,  flex building located near the BWI Airport, at BWI Technology Park II in Anne Arundel County. 809 Pinnacle Drive will be finished in late spring.

The two buildings in Northern Virginia are 44190 Waxpool Road and 44200 Waxpool Road. They are two single-story R&D/flex office buildings, totaling 54,120 square feet and scheduled for completion this May. Both are located within Ashburn Technology Park, a business community near the Washington Dulles International Airport.

Jerry Wit, senior vice Ppesident, marketing for St. John Properties, is optimistic and expects to see economic growth in the region. “Despite persistent reports of economic uncertainty, general business indecision and a perceived slowdown in leasing activity, we see pockets of tremendous opportunity and sustained growth in select submarkets in the Maryland and Northern Virginia marketplace,” he said in a press statement. “Our company is taking full advantage of the retrenched posture of many commercial office developers who have adopted a wait-and-see approach to new construction. We intend to remain several steps ahead of the leasing momentum that we believe will continue throughout the region, in an effort to immediately respond to our customers’ space requirements.”

Photo credits: St. John Properties

Charts courtesy of CBRE.

Vice President Joe Biden, Governor Martin O’Malley and Other Dignitaries to Celebrate Grand Opening of $112M John and Frances Angelos Law Center

By Adrian Maties, Associate Editor

The University of Baltimore has announced that U.S. Vice President Joe Biden and U.S. Supreme Court Associate Justice Elena Kagan will join Maryland Governor Martin O’Malley, Maryland Court of Appeals Chief Judge Robert M. Bell and many other state, local and federal officials for several grand opening events for the new John and Frances Angelos Law Center, throughout the month of April. The John and Frances Angelos Law Center will be the new home of the University of Baltimore School of Law.

Vice President  Biden and Governor O’Malley will speak at a preview celebration on April 16 while a ribbon cutting ceremony and a grand opening celebration are scheduled for April 30. These events will give guests the opportunity to have a first look inside the new $112 million building.

“We are extremely honored that Vice President Biden, Justice Kagan, Governor O’Malley and other special guests will join the UB community in celebrating the opening of the new Angelos Law Center,” University of Baltimore President Robert L. Bogomolny said in a statement to the press.

The new facility is located at the northeast intersection of North Charles Street and Mount Royal Avenue in midtown Baltimore. It was designed by world-renowned architect Stefan Behnisch of Behnisch Architekten in Stuttgart, Germany, and Boston, Mass., in partnership with Baltimore’s Ayers/Saint/Gross. Construction started in August 2010.

With 12 stories and 190,000 square feet of space, the John and Frances Angelos Law Center will feature a central atrium with natural light, greenery, zones for quiet contemplation and group interaction, a 32,000 square-foot library, 29 large- and small-group study spaces, a 300-seat moot courtroom and event space, and 15 classrooms, all with advanced technology. Project construction generated 1,231 jobs and more than $174 million in economic activity.

The building is named after the parents of lawyer and Baltimore Orioles owner Peter G. Angelos. He is an alumnus of the law school and he recently donated $5 million to help the building attain a Leadership in Energy and Environmental Design Platinum rating by the U.S. Green Building Council. In total, Angelos donated $15 million to the project, as part of the university’s successful effort in raising $22 million in private funding.  The state provided the remaining funds.

Photo credits: University of Baltimore

Record of Decision Makes Baltimore Red Line Eligible for Future Federal Funds

By Adrian Maties, Associate Editor

Governor Martin O’Malley announced on March 5 the Baltimore Red Line has received federal environmental approval. The Federal Transit Administration’s approval is called a record of decision. It makes the project eligible for future federal funds.

The Baltimore Red Line project is the first major expansion of the Baltimore region’s transit network since the early 1990’s. The 14.1 mile transit line will connect the areas of Woodlawn, Edmondson Village, West Baltimore, downtown Baltimore, Harbor East, Fell’s Point, Canton and the Johns Hopkins Bayview Medical Center Campus. It will have 19 stations.

The record of decision was issued by the Federal Transit Administration based on information presented in a Final Environmental Impact Statement completed last December. It marks the end of a rigorous and extensive process to identify and avoid, minimize or mitigate possible impacts to communities, historic buildings and natural resources such as parks, wetlands and trees.

“This is a big day for the Red Line and the future of transit in Maryland,” said Governor O’Malley.  “Now we must move to our next challenge which is providing the state funds necessary to keep this project moving.  Without an increase in transportation funding, work on the Red Line will come to a halt later this year as the state dollars simply aren’t there to continue. We can avoid this by passing the transportation package I introduced this week along with Senate President Miller and Speaker Busch.  Under our proposal we can continue to move these projects forward, demonstrate our commitment to the project and remain in a position to compete for federal construction funds. The bill also requires the study of regional transportation authorities that, along with public private partnerships, could be part of a final funding plan for construction of the project.”

On March 4, Governor O’Malley, Senate President Thomas V. Mike Miller, Jr. and House Speaker Michael E. Busch unveiled a plan to increase investment in Maryland’s transportation system, relieve congestion, and create jobs. House Bill 1515 would raise $3.4 billion over five years to support up to 44,000 jobs.

According to its website, the Baltimore Red Line will cost $2.5 billion. It is expected to be constructed between 2015 and 2021 and to create 9,800 direct construction and related jobs during this period. Expected ridership by 2035 is over 50,000 passengers daily.

Photo credits:  www.baltimoreredline.com

Morgan Properties and Dune Buy Glen Burnie’s 796-Unit Chesapeake Glen Apartments

By Adrian Maties, Associate Editor

Morgan Properties of King of Prussia, Pa., and Dune Real Estate Partners LP of New York have teamed up to acquire the Chesapeake Glen Apartments community in Glen Burnie, Md., from Equity Residential. The cost of the transaction has not yet been disclosed. HFF represented the seller.

Chesapeake Glen Apartments is a 796-unit garden-style apartment community. It is located at 8035 Greenleaf Terrace, in Anne Arundel County, in close proximity of I-95, I-97 and the Baltimore-Washington Parkway. Baltimore’s Inner Harbor and the Annapolis Waterfront are just minutes away. The Artery Group constructed Chesapeake Glen in phases, in 1973 and 1977. It underwent two interior renovations from 2006 until 2008 and from 2010 until 2011 by Equity Partners.

The apartment community includes such amenities as a fully renovated resident clubhouse, a state of the art fitness center, a resort-style outdoor swimming pool, tennis courts, playgrounds and picnic areas. It offers residents a mix of one-, two- and three-bedroom apartments with individually-controlled HVAC units, washers and dryers, upgraded kitchens, balconies or patios, high-speed internet and nine spacious floor plans.

The Department of Defense’s Base Realignment and Closure (BRAC) initiative spurred economic growth in the area. It brought almost 22,000 new jobs to Fort Meade and is expected to generate $4 billion in annual economic output.

Mitchell Morgan, founder and CEO of Morgan Properties, said, “Chesapeake Glen is a significant acquisition for our company. We are excited to collaborate with Dune and feel that we have the ability to add value to the asset. It’s a great time to invest in the multifamily sector… the wind is at our back. The fundamentals are stronger than ever brought on by the shift from homeownership towards rental apartments. We feel that Class B is the right place to invest now since we have a captive audience and it generates significant yield.” The two companies plan to execute a repositioning strategy that will address capital needs and complete interior unit renovations to enhance value.

Morgan Properties is one of the largest and fastest-growing multifamily owners in the Maryland-DC Corridor. It oversees a portfolio of 17 apartment communities and 6,400 units in the region.

Photo credits: Morgan Properties

Baltimore Ravens to Invest $35M in Upgrades to the M&T Bank Stadium

By Adrian Maties, Associate Editor

NFL champions the Baltimore Ravens aren’t taking it easy after defeating the San Francisco 49ers in Super Bowl XLVII. The team announced last Thursday it plans to invest $35 million to upgrade M&T Bank Stadium in order to enhance the fan experience.

The project has been in the works for a year now and mainly calls for improvements to video boards, concession stands and all concourses. It will be carried out in two phases, over the next two years.

The first phase will begin in the next week and is expected to be completed by the start of the 2013-2014 preseason. It calls for extensive upgrades to the stadium’s lower concourse and video boards. The second phase of the project will start next year and will focus on the upper concourse. It is scheduled to be complete in time for the 2014-2015 season.

The concourses will be redesigned and will feature a ”Ravenized” theme influenced by the brick and steel look of the stadium’s exterior. The support columns will be wrapped in brick and steel, purple LED lights will be added to each of the pillars, and enhanced directional signage installed throughout each concourse.

All 16 lower concourse concession stands will be upgraded. Work will also be done on specialty areas such as the lower concourse’s Barcardi Bar and Talon Pub. The four retail stores inside the stadium will be slightly increased in size. Renovations to upper concourse concession stands will be made prior to the 2014 NFL season. Beginning in 2014, stadium suites will also be upgraded.

Two high-definition video boards, 8 feet high and 30 feet wide, will be installed at the concourse entrances of gates A and D. The static boards on each side of the RavensVision HD video boards behind each end zone will be replaced with four new LED boards. New LED ribbon boards will also be installed around the entire seating bowl.

The 71,000-seat M&T Bank Stadium is still one of the NFL’s top venues. It is owned by the Maryland Stadium Authority and has been the Ravens’ home for the last 15 years. The team will pay for the upgrades.

Photo credits:  www.baltimoreravens.com

The Howard Hughes Corporation, Kettler and Orchard Development Corporation Break Ground on $100 Million Metropolitan Downtown Columbia

By Adrian Maties, Associate Editor

Shovels broke ground on February 11, as work started on The Metropolitan Downtown Columbia, a $100 million mixed-use project in downtown Columbia’s Warfield neighborhood. Developers and county officials attended the ceremony.

The Metropolitan Downtown Columbia will feature 380 one-, two- and three-bedroom luxury apartments with prices between $1,500 to $2,800, access-controlled garage parking and about 14,000 square feet of ground floor retail.  It includes such amenities as the largest resident clubhouse in Columbia, a fitness center with studio, media and game rooms, a catering kitchen with a dining area, a courtyard with an outdoor screening room, an all-season kitchen with built-in grills and bar, and a pool with submerged seating and cabanas. The project also calls for the construction of a 28,500-square-foot public promenade with a 6,000-square-foot children’s play area.

The Dallas-based Howard Hughes Corporation is working together on the project with Kettler, of McLean, VA, and Orchard Development Corporation of Ellicott City, MD. The Metropolitan Downtown Columbia is the first development to proceed under the 2010 Downtown Columbia Plan. The plan will bring 5,500 residential units, 4.3 million square feet of office, 1.25 million square feet of retail and up to 640 hotel rooms to downtown Columbia. Also included is the construction of a new multi-model transportation system and the redevelopment of Merriweather Post Pavilion concert venue.

“It is exciting to celebrate this pivotal first step in the revitalization of downtown Columbia,” said John E. DeWolf, senior vice president of development for The Howard Hughes Corporation. “This milestone has been highly anticipated by everyone in the community, especially those who have invested significant time and effort in the planning process.”

The Metropolitan Downtown Columbia is expected to be completed by spring 2014.

Photo credits: www.columbiamd.com

Tower Point at the Highlands Sold for $23.7M to Greenfield Partners

By Adrian Maties, Associate Editor

Connecticut-based Greenfield Partners LLC has acquired Tower Point at the Highlands,  a corporate campus situated on 60 acres in Sparks, Maryland. The seller was Equus Capital Partners Ltd. The property sold for $23.7 million or $124 per square foot.

Tower Point is a 162,646-square-foot campus about 20 miles north of Baltimore. It includes two Class A office buildings located at 920 and 930 Ridgebrook Road. 920 Ridgebrook Road is the largest of the two buildings. It has three stories and 94,071 square feet of space. 930 Ridgebrook Road is a three-story building with 72,406 square feet of space. A third three-story, 81,000 square foot Class A office building, 934 Ridgebrook Road, is planned and will be situated adjacent to 920 Ridgebrook Road. It is fully approved for development and available for lease and build-to-suit and expansion opportunities.

The property is at 96% occupied. It is home to the corporate headquarters of Fundamental Long Term Care Holdings LLC, FILA USA Inc. and MobilexUSA.

Christopher Abramson, Brian Kruger and Nicholas Signor of Cushman & Wakefield’s Capital Markets group represented Equus Capital Partners Ltd. Equus Capital Partners was known as BPG Properties Ltd. until February 4, when it announced its name change.

Cushman & Wakefield also served as the exclusive advisor to Greenfield Partners in arranging a $17 million fixed-rate loan for the property. J.P. Morgan provided the five-year financing. Gideon Gil, Alexander Hernandez, and Sridhar Vankayala of Cushman & Wakefield’s Equity, Debt and Structured Finance team represented the sponsor.

“This is a great purchase at a discount to replacement cost, with solid tenancy and no turnover for the next six years,” said Cristopher Abramson, a Cushman & Wakefield executive director.

Photo credits: www.towerpointatthehighlands.com

Charts courtesy of CBRE.

Jefferson Apartment Group Starts Construction on 304-unit Apartment Community in Baltimore

By Adrian Maties, Associate Editor

The Jefferson Apartment Group broke ground last week on Jefferson Square at Washington Hill, a mixed-use development that includes luxury residences and retail space. It’s the company’s first major residential project in the Baltimore area.

Jefferson Square at Washington Hill is located just outside the gates of the Johns Hopkins medical campus, between N. Wolfe Street and N. Washington Street on E. Fayette Street. The five-story mixed-use development will bring 304 residential units to the area, as well as 21,000 square feet of retail. The project will also include two private courtyards, a 405-space parking structure constructed to connect each level of the building to parking, and several green building features.

Residents will enjoy a host of amenities including a theater, pub room with gaming tables and resident business/study lounge. Jefferson at Washington Square is also close to some of Baltimore’s prime neighborhoods such as Harbor East, Canton and Fell Point.

A CVS Caremark pharmacy has already signed on to the project, and 10,800 square feet of retail space are reserved for restaurant users and service retail. CBRE Baltimore’s Jeff Bach is in charge of retail leasing for Jefferson at Washington Square.

”We’re excited about this investment and are proud to be a part of the neighborhood and continue the revitalization that is already well under way,” said JAG vice Ppesident and development partner Drew Chapman. “We look forward to introducing the Baltimore market to our luxury, mixed-use product, starting with this well-located development.”

Jefferson at Washington Square will provide much needed high-end housing for the area’s growing population. The project’s developers hope to attract employees from Johns Hopkins which has 55,700 employees and students in the area.

Rendering courtesy of The Jefferson Apartment Group.