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.

St. John Properties will Deliver More Offices to Greater Baltimore

By Adrian Maties, Associate Editor

St. John Properties is working hard to bring Class ”A” offices to the Greater Baltimore area. In recent weeks, the Baltimore-based commercial real estate company has started work on two projects that will deliver over 360,000 square feet of office space.

St. John Properties, Inc. has announced it’s working with Greenebaum Enterprises on the construction of a four-story, 138,000 square foot Class “A” office building at 8135 Maple Lawn Boulevard. The facility is located within Maple Lawn, a 600-acre mixed-use business community located in Howard County, Maryland. Development of this project includes 388,000 square feet of existing office space, as well as the development rights for more than 800,000 additional square feet of office space.

8135 Maple Lawn Boulevard is expected to be finished in November 2013. Designed to achieve LEED certification, the building will feature a brick and glass exterior, high-energy HVAC units, energy-efficient motion sensor light fixtures, double-pane insulated glass, white TPO roofing membrane, dual-flush toilets and waterless urinals, and low-VOC paint and adhesives. A state-of-the-art system that minimizes the effect on local waterways will be used to manage storm water runoff.

”Continued strong leasing momentum at Maple Lawn has provided us with the confidence to move forward with this new speculative office building,” stated Jerry Wit, senior vice president, marketing for St. John Properties.

St. John Properties also announced on January 23 that it started construction on Annapolis Commons, a 28-acre mixed-use business community in Annapolis. The project will deliver two single-story and three two-story Class “A” speculative buildings with a total of 227,000 square feet of space. Annapolis Commons is located directly off Harry S. Truman Parkway near the intersection of Riva Road, and immediately south of MD Route 50 in Anne Arundel County.

“Our research shows an emerging demand for Class ‘A’ office space within the Annapolis marketplace,” said Wit.

The first phase of the project consists of a two-story 63,000 square foot office building and a single-story 32,000 square foot office building, and it is expected to be finished in the first quarter 2014. All five Annapolis Commons buildings are designed to achieve LEED certification and have the same green features as the building St. John Properties is constructing in Maple Lawn.

Charts courtesy of CBRE.

Industrial Properties Sell in the Baltimore Area

By Adrian Maties, Associate Editor

Baltimore’s industrial market has started 2013 strong, with three proprieties recently sold for a total of around $35 million. According to a report released in January by CBRE for last year’s fourth quarter, industrial sales in the Baltimore market in 2012 are on a path to exceed sales from the previous year by 20 percent.

1021 Swan Creek Drive, a Class A industrial property leased by Nissan North America, has been sold for $13.5 million. Hartz Mountain Industries has purchased the property in Baltimore’s Curtis Bay neighborhood from Swan Creek 5R LLC, a subsidiary of the Belt’s Corp. CBRE arranged the sale.

The building is located in the Marley Neck Industrial Park, just minutes from the Port of Baltimore. Both downtown Washington and downtown Baltimore are within easy reach. The 154,400-square-foot warehouse has 29 loading docks.

CBRE First Vice President Jonathan H. Beard and CBRE Senior Vice President Robert T. “Bo” Cashman represented The Belt’s Corporation in the transaction. CBRE Senior Vice President John Wilhide also assisted the sale.

9060 Junction Drive, a 144,571-square-foot distribution warehouse in Annapolis Junction, MD was sold to Boston-based TA Associates Realty for $8.25 million. Emory Properties was the seller. The warehouse 48 percent  leased.

TA Associates Realty also acquired a 205,000 square foot industrial warehouse in Jessup, MD. It paid $13.7 million for the fully leased property at 8125 Stayton Drive to Stayton Associates.

Jonathan M. Carpenter and James S. Wellschlager of Cassidy Turley’s Capital Markets Group represented both Emory Properties and Stayton Associates in the transactions mentioned above.

The Baltimore metro area remains attractive for industrial users and investors due to its low unemployment, close proximity to Washington, D.C. and Philadelphia, and ease of access to the Port of Baltimore. CBRE reports that although the overall vacancy rate in the area increased from 10.3 to 11.1 percent, largely due to move-outs by bulk users, the outlook still remains optimistic because of new leases and expansions by larger warehouse users like Recall Total Information Management, AFP, Sleepy’s and Proctor & Gamble.

Charts courtesy of CBRE.

Owings Mills Corporate Center I & II Aquired by BECO Management

By Adrian Maties, Associate Editor

Rockville, MD-based BECO Management, Inc. has announced the acquisition of Owings Mills Corporate Center I & II, two properties in Owings Mills, MD that total more than 330,000 square feet of office space. The commercial real estate management company plans to invest significant capital in infrastructure, cosmetic and amenity improvements and it unveiled its 100-day action plan on January 8.

Owings Mills Corporate Center I was built in 1987 while Owings Mills Corporate Center II was built a year later. The campus is home to a variety of corporate tenants such as Aon Corporation, BB&T, the Law Offices of Sheela Murthy, and CareFirst of Maryland. It is adjacent to the Owings Mills Mall and within walking distance of the Owings Mills Metro Station. I-95, I-695 and I-795 are also close by and downtown Baltimore is just 25 minutes away.

“The Owings Mills Corporate Center campus is the perfect addition to our portfolio—like our other buildings, they’re well-constructed, provide an ideal development platform and are centrally located in a growth-rich location,” said Jeffrey Cohen, BECO Management’s co-founder and CEO, in a press statement. Two real estate companies, Colliers International and Cassidy Turley, have recently released market reports for the fourth quarter of 2012, showing that the Baltimore office market continues to improve. BECO Management has a portfolio of 71 buildings comprising more than 5.5 million square feet of office, flex and warehouse space throughout the greater Washington-Baltimore metropolitan area and Charlotte, North Carolina.

BECO has assembled a first-rate team to implement the Owings Mills improvement plan. “Our team is hard at work transitioning the properties, improving the level of service, property maintenance and amenities to BECO standards, and building a perfect work environment for current and future tenants,” according to Cohen.

“If there is one landlord who can return these buildings to their former market prominence, it is BECO. They are renowned for developing longstanding relationships with tenants as well as delivering the highest service levels and best-in-class amenities in the industry,” said Gary Applestein, managing director and principal, Baltimore Region, Colliers International.

Charts courtesy of Cassidy Turley.

Photo credits: Cushman & Wakefield.

Picerne Military Housing to Build $72M Housing Complex at Fort Meade

By Adrian Maties, Associate Editor

Picerne Military Housing, a division of the Corvias Group, a privately owned real estate firm, has closed on a $72 million public-private partnership deal with the U.S. Army to build more than 1,400 garden-style apartments for junior enlisted single service members at Fort Meade, in Maryland. According to Picerne, this is the U.S. Army’s first-ever privately developed, on-post apartment community for unaccompanied junior enlisted soldiers, sailors, airmen, marines and coast guardsmen.

The development is named Reece Crossings. This modern apartment community will be comprised of 432 one- and two-bedroom units with 816 beds. The project will offer 1,126 square foot one-bedroom plus den and 1,186 square foot two-bedroom apartments with large kitchens, a breakfast bar and full-size appliances, spacious living rooms, a laundry room with washer and dryer and free cable, high-speed Internet and utilities.

Each apartment will be pre-furnished with a sofa, media cabinet and coffee table, as well as a queen-sized bed, desk and night stand in each bedroom. Private master suites will also be available to all service members living in the apartment community. They include individual bathrooms, walk-in closets, personal climate controls, and private climate-controlled secure storage for military gear.

The 14-building apartment community will feature such amenities as weight lifting and fitness rooms, a state-of-the-art clubroom with multiple flat-screen TVs, sports ticker and video gaming, a cyber café with charging stations and Internet access, basketball and sand volleyball courts. A 6,233-square-foot community club house with a resort-style lap pool and outdoor grilling and picnic pavilions will be available to help reduce isolation and boost morale.

Reece Crossings has been designed in accordance with U.S. Green Building Council (USGBC) Leadership in Energy and Environmental Design (LEED) Silver, Low-Impact Development (LID) and Energy Star guidelines. It will include advanced storm water management techniques and will use recycled, low-maintenance, regional materials in the construction process, to reduce transportation costs and carbon emissions from delivery vehicles.

Ground will be broken this month. The first apartment building and clubhouse are expected to be completed by December 2013.

Photo credits: Picerne Military Housing

ProMed Pays $22 Million for Part of Baltimore Building

By Adrian Maties, Associate Editor

ProMed Properties LLC, a wholly owned subsidiary of Gazit-Globe, recently purchased four floors of the Johnston Professional Building in North Baltimore. The New York-based company paid $21.75 million to buy a leasehold interest for the third, fourth, fifth and sixth floors of the eight-story building.

Located at 3333 N. Calvert Street, the four floors sit atop MedStar Health’s Union Memorial Hospital, which occupies the lower levels of the building. MedStar Union Memorial is also the largest tenant, occupying almost 51 percent of the total square footage. ProMed, a leading owner and asset manager of medical office and research buildings, purchased 79,360 square feet of medical office space in the Johnston Professional Building. With this acquisition, the building will now be 100 percent occupied. The rest of the space is occupied by a diverse mix of medical practices.

The building is located just one block east of the Homewood campus of the Johns Hopkins University, in an area where the university is investing continuously in development projects for the use of the university as well as retail and multifamily housing. Within a five mile radius of the property, there is a population of almost 610,000, with an average household income of $63,500. It exceeds the national average.

”This acquisition offers ProMed the opportunity to partner with MedStar Health, one of the strongest healthcare systems in the Mid-Atlantic Region. Furthermore, it aligns with ProMed’s investment strategy of selectively acquiring properties, near and integral to top-related medical universities and hospitals, in markets with high barriers to entry. This new acquisition is a great addition to our Northeastern portfolio, which includes properties in major MSAs such as New York, Washington DC, Boston and Philadelphia.”

ProMed financed the acquisition with a new, 10-year, $14.0 million loan at a fixed 3.95 percent interest rate as well as cash on hand.

Photo credits: Google Maps

Modus Hotels Buys Baltimore’s Brookshire Suites

By Adrian Maties, Associate Editor

Modus Hotels, a full service hotel development and management company from Washington, D.C., has purchased Baltimore’s Brookshire Suites last week. It is Modus’ first hotel in downtown Baltimore and its third hotel acquisition of 2012.

The Brookshire Suites is located immediately adjacent to Baltimore’s famous Inner Harbor. It offers its customers 97 spacious suites, averaging 500 square feet. Each suite contains a sleeping area and a separate living room furnished with a sofa, oversized desk, free WiFi, and a mini-refrigerator. Other amenities include a meeting room facing the harbor and a state-of-the-art fitness facility. The hotel is also pet friendly.

Modus’ newest acquisition is located close to such attractions as the National Aquarium, the Baltimore Convention Center, Baltimore Orioles’ Stadium, Camden Yards and the Baltimore Ravens M&T Bank Stadium. Although the fourth quarter is typically slow for hotels in the region, with the New York City and the Washington, D.C. metro as perhaps the only exceptions, occupancy in the northeastern United States is on the rise. The presidential inaugural in January may also help strengthen the market.

“With its ideal location along Baltimore’s Inner Harbor and its distinctive identity, the Brookshire Suites is a perfect fit in our expanding portfolio of Modus Hotels,” noted Aaron Katz, president and CEO of Modus Hotels.

Modus plans to invest several million dollars to fully renovate and re-concept the property and incorporate it into the Modus Hotels Collection, a portfolio of 12 hotels. The renovation project will start in January 2013, in phases so as to minimize guest disruption. It includes a new lobby, new guest suites and a new exterior. Modus expects to complete it in the fourth quarter of 2013.

“Following the completion of the renovation and the implementation of our proprietary marketing and management systems, we believe the hotel will be well positioned as an affordable, lifestyle hotel experience, something not offered by the existing hotels in the Baltimore market,” Aaron Katz said.

Photo credits: www.brookshiresuites.com

Charts courtesy of Marcus & Millichap.

Grand Opening for Groveton Green, the First and Only LEED Gold Apartment Community in Owings Mills

By Adrian Maties, Associate Editor

Groveton Green Apartments held a grand opening ceremony on November 15 in Owings Mills. Baltimore County Executive Kevin Kamenetz, Councilwoman Vicki Almond, Councilman Ken Oliver and Reisterstown-Owings Mills-Glyndon Chamber of Commerce Executive Director Brian Ditto were among those present at the ribbon cutting ceremony.

The $35 million project was developed by the Fore Property Company, a full service, national apartment developer, manager and owner with over 30 years of experience in the multifamily industry. Located at 9401 Groveton Circle, the community includes 226 luxury one-, two- and three-bedroom homes on 16 acres. Apartments feature hardwood style or stained concrete floors, walk-in closets, stainless steel appliances, tile bathroom floors, upgraded stone kitchen countertops, vaulted ceilings and more.

Residents will enjoy an 8,600-square-foot, three-story clubhouse accessible 24/7. It features a state-of-the-art fitness club, yoga studio, billiards, shuffleboard, a poker room, business center, conference room, multiple lounges and a dog wash. Additional outdoor amenities include a resort style pool, the Zen Garden, multiple fire pits, barbecue areas, covered bike parking, and the “Lucky Dog Park for your best friend.” Groveton Green is also ideally located in the heart of Owings Mills. It is close to grocery stores, shopping, dining and entertainment options as well as many employment centers.

Fore Property built the luxury apartment community to LEED Gold standards and is now awaiting certification. Residents will save energy with the help of energy efficient windows, appliances and lights, high efficiency HVAC units and enhanced insulation. Groveton Green is the first and only LEED Gold Designed apartment development in the Owings Mills area.

Fore Property Vice President Jim Sullivan said in September that the company “wanted Groveton Green to stand out for renters and Baltimore County from local existing apartment projects by providing the perfect combination of a high-end lifestyle with environmental sensibility. Residents get the benefit of reduced energy and water costs, a lower carbon and pollution footprint, and healthier living from cleaner air without having to lift a finger.”

Photo credits: www.grovetongreenapts.com/

PMC Acquires 301 North Charles Street for Apartment Conversion

By Adrian Maties, Associate Editor

PMC Property Group Inc. has closed on the acquisition of 301 North Charles Street. Kirby Fowler, President of the Downtown Partnership of Baltimore, announced the acquisition via Twitter. The building will be converted to apartments.

301 North Charles Street is a 92,500-square-foot office building at the northeast corner of Saratoga Avenue. It was constructed in 1930 and served for a long time as the headquarters of the Baltimore Life Insurance Company. The high-rise has 11 floors above ground and one below.

PMC acquired the building from USP Management LLC, a Falls Church, Va. company. The price of the transaction has not yet been disclosed. USP Management purchased 301 North Charles Street in 2006 for $6.89 million. The Maryland Department of Assessments and Taxation values the property at about $6.5 million.

In September, the Baltimore Business Journal reported that PMC plans to invest $15 million to redevelop 301 North Charles Street and convert it into an apartment asset with 92 units. The Philadelphia-based company’s plans call for apartments ranging between 700 square feet for one-bedroom units and 950 square feet for two-bedrooms, as well as about 5,000 square feet of retail space on the first floor. About 80 percent of the apartments will be one-bedroom units.

PMC has completed several projects in Baltimore City, and it is still involved in many projects in Baltimore’s Mount Vernon neighborhood. Known as a company that typically completes residential projects in less than a year, PMC is expected to deliver almost 200 apartments to the Mount Vernon area in the coming months.

Photo credits: Google Maps.

Two Class A Industrial Buildings Sold in Baltimore

By Adrian Maties, Associate Editor

Hillwood Investment Properties, a Perot company, has announced the purchase of two Class A industrial facilities in Baltimore. Hillwood made the acquisition in a joint venture with Brookfield Asset Management.

One of the properties is located at 451 Fletchwood Road, in Elkton, while the other is at 238 Belvidere Road in Perryville. Together the two properties total 1.8 million square feet. They have been built, managed and maintained to meet the highest institutional standards.

The properties are strategically located within Baltimore’s I-95 North corridor industrial submarket. The area consists of Harford and Cecil counties and benefits from a deep labor pool, growing population and the desirable quality of life of the Baltimore/Washington metro area. I-95, the primary highway serving the U.S. Northeast population center, is also easily accessible.

The Elkton facility was built in 2005, on 71 acres in the Broadlands Business Park. The facility in Perryville was also built on 71 acres, in 2003. It has 1,004,000 square feet of space. The buildings feature 28- to 30-ft. clear heights, ample dock high-loading doors, large truck courts with abundant trailer storage and future cross dock functionality. The facility in Perryville also includes active rail access that is served by CSX Railway.

Gary Frederick, Hillwood’s senior vice president and northeast market officer, said, “We are pleased to add these state-of-the-art properties to our expanding presence in the U.S. Northeast industrial sector.” Tom Fishman, Hillwood’s executive vice president of acquisitions, added that “Given the Class A nature of the buildings and high credit quality of the tenants, these properties are a great addition to the Hillwood-Brookfield portfolio.”

CBRE reports that the Baltimore area remains attractive for industrial users and investors due to its low unemployment, close proximity to Washington, D.C. and Philadelphia, and ease of access to the Port of Baltimore. As industrial leasing activity emproves, investors are looking to obtain assets. The overall vacancy rate in the Baltimore industrial market decreased slightly from 10.4% to 10.1%.

Charts courtesy of CBRE.

Baltimore Apartment Community Wins Top Honors at Three Award Ceremonies

By Adrian Maties, Associate Editor

The Arbors at Baltimore Crossroads in Baltimore recently won top honors at three award ceremonies. The luxury rental community was designed by KTGY Group, Inc., Architecture + Planning. It was developed by Somerset Construction Company and is managed by Bozzuto Management.

On October 25, at the Delta Associates 16th Annual Awards for Excellence in the Mid-Atlantic Apartment & Condominium Industries event, the Arbors at Baltimore Crossroads was recognized as the Best Baltimore Apartment Community 2012. The Maryland Multi-Housing Association (MMHA) presented it with a Gold Award in the category of Stellar Elevator Community: $1,200 and up at its 16th Annual Star Awards Gala, on October 10. And, on September 20, the community also received a Grand Award for the Best Design & Architecture, Multi-Family New Construction, 5 Stories and Under in the Great American Living Awards (GALA) program.

Rohit Anand AIA, NCARB, principal of KTGY, said that “In the awards programs, The Arbors at Baltimore Crossroads competed against many excellent projects so the fact that this community was selected as the recipient of these highly coveted awards is all the more meaningful.” He also thanked the judges and his partners at Somerset and Bozzuto.

This 365-unit eco-friendly apartment community is located on White Marsh Boulevard in the 1,000-acre Baltimore Crossroads mixed-use development. It is close to the White Marsh Town Center, numerous popular retailers, restaurants and entertainment centers,  and also ideally positioned in Baltimore’s growth corridor. Downtown Baltimore is just 12 miles away.

Tenants can choose from 23 floor plans available in single, two-, and three-bedroom formats, including homes with dens, lofts, and balconies. The apartment homes are built around a six-story parking garage which allows residents to park and live on the same level. It includes electric car-charging stations and solar panels on the roof.

Residents can enjoy such amenities as a two-story community room with a fitness center, multi-media center, billiards room, business center with conference area, library, child play areas, a pet spa, a swimming pool with sunning decks, multiple grills, garden, a car wash area and more. The community is targeting LEED Gold certification.

                       Photo credits: www.arborsbaltimore.com

Inner Baltimore’s Harborplace Sold to Ashkenazy Acquisition Corporation

By Adrian Maties, Associate Editor

Mayor Stephanie Rawlings-Blake announced on October 23 that the Baltimore waterfront’s iconic Harborplace has been sold to the Ashkenazy Acquisition Corporation. The New York real estate investment firm acquired the Inner Harbor complex from General Growth Properties. The sale price was not disclosed and representatives from both companies declined to comment.

Harborplace’s grand opening was held on July 2, 1980. It was designed by Benjamin C. Thompson and was built by the developer James W. Rouse and The Rouse Company. General Growth purchased the complex in 2004. It is composed of two two-story pavilions, the Pratt Street Pavilion and the Light Street Pavilion. The Gallery at Harborplace, a four-story glass-enclosed building located across Pratt Street from Harborplace, was not included in the sale. It is also owned by General Growth.

The land occupied by Harborplace is owned by the city which leases it to the owner of the mall. According to city records, Harborplace is 93 percent leased this year. Its tenant roster includes the Cheesecake Factory, Ripley’s Believe It or Not, Bubba Gump Shrimp, Johnny Rockets Group Inc., H&M Hennes & Mauritz AB, Pizzeria Uno and the McCormick & Co. Inc. retail store.

Ashkenazy Acquisition Corporation focuses on retail and office assets. It has acquired over 13 million square feet of retail, office and residential properties throughout the United States and Canada. Earlier this year, the company also purchased the Village of Cross Keys, an upscale shopping center in North Baltimore.

“When you look at Ashkenazy properties, such as Faneuil Hall Marketplace in Boston, Union Station in Washington, DC, and Rivercenter in San Antonio, you see a company that could be a great fit for Harborplace. This is a company with a track record of investing in and managing premier destinations, each with its own local character, in cities across America,” said Baltimore Mayor Stephanie Rawlings-Blake. She also added that she is ”absolutely committed to working closely with Ashkenazy to continue making progress and to secure Harborplace’s legacy as a source of great pride for the people of Baltimore for years to come.”

Photo credits: www.harborplace.com