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Delancey Street Capital Buys Baltimore’s Sail Cloth Factory Apartments for $12.9M

15 Aug 2014, 3:54 pm

By Adrian Maties, Associate Editor

Delancey Street Capital LLC continues its expansion in the Baltimore area. The Philadelphia-based company recently made its fourth acquisition in the region.

Delancey Street Capital has acquired the Sail Cloth Factory Apartments. The property is located at 121 S. Fremont Avenue, adjacent to the University of Maryland Medical Center and University of Maryland. It was constructed between 1888 to 1911, and served as a manufacturing plant for sail cloth used by mariners and machine belts. In 1986, the building was converted into apartments.

In spite of the many changes, the Sail Cloth Factory Apartments still retains its historic charm and unique architectural features. It now offers 107 loft-style apartments.

According to the Baltimore Business Journal, Delancey Street Capital paid $12.9 million to buy the Sail Cloth Factory Apartments from Hutzler’s Historic Associates, another Philadelphia-based company. It is the largest sum paid by Delancey Street Capital for a single property in the Baltimore area so far. The company plans to renovate and upgrade the building. Amenities at the Sail Cloth Factory Apartments include stainless steel appliances, washer/dryers in every unit, valet parking, and a fitness center.

The Baltimore Sun reported that the Sail Cloth Factory Apartments was 95 percent leased at the time of the sale. The high occupancy is a result of the building’s competitive rental rates. Rents for one-bedroom apartments start at $1,110, while two-bedroom units go for just under $1,575.

On its website, Delancey Street Capital says it is interested in acquiring Class B and C multifamily properties in need of rehabilitation or repositioning. Earlier this year, it paid $1.95 million to buy the 29-unit Hampton Court Apartments in Bolton Hill. And last year it purchased the Park Gardens apartments in Reservoir Hill, and the 102-unit Madison, at 817 St. Paul Street. Between July 2013 and July 2014, the company has paid over $35 million for multifamily properties.

Photo credits: Google Maps.

MCR Development Completes Major Renovations at the Residence Inn Baltimore White Marsh

15 Aug 2014, 3:52 pm

By Adrian Maties, Associate Editor

MCR Development LLC, one of the twenty largest hotel owner-operators in the United States, has recently announced it has completed the renovation of the Residence Inn Baltimore White Marsh. The New York-based company did not announce how much it has invested in the project.

The Residence Inn Baltimore White Marsh is located at 4980 Mercantile Road, just 15 minutes from the Port of Baltimore and Downtown Baltimore. Its 131 rooms are about 50 percent larger than standard rooms. The hotel also features 875 square feet of meeting space, an outdoor pool, a fitness center, a sport court and more.

According to MCR Development, the project brought major renovations to all areas of the hotel, but it paid special attention to the lobby, meeting space and guestrooms. The Residence Inn Baltimore White Marsh’s new lobby now offers its guests an elegant open floor plan with plenty of space. The meeting space has been equipped with brand new carpeting and chairs, while the guestrooms now feature brand new stainless steel appliances, as well as a contemporary and stylish décor with refreshing colors.

In its midyear hospitality report for the Mid-Atlantic region, Marcus & Millichap says that the hotel market is recovering from last year’s government shutdown. Hotels in the region have registered stronger results in 2014 and are expected to continue on the same path the rest of the year.

Some locations, the ones less dependent on federal spending, are even flourishing. Baltimore is one of these regions. In fact, much of the turnaround in hotel performance in the state of Maryland comes on the back of the growing Baltimore economy. Occupancy has also recovered and in Maryland it jumped 2.6 percent, to 56.3 percent. The state also posted a 4.8 percent rise in revenue per available room.

Photo credits: www.marriott.com
Charts courtesy of Marcus & Millichap.

COPT Sells Eight White Marsh Properties for $28.75M

15 Aug 2014, 3:50 pm

By Adrian Maties, Associate Editor

Corporate Office Properties Trust announced last week it has completed the sale of eight commercial properties in the Greater Baltimore submarket of White Marsh. The properties were sold in three separate transactions for a total of $28.75 million. According to COPT, the transactions generated net proceeds of $28.0 million.

In a news release, COPT says it sold the properties at 9930 and 9940 Franklin Square Drive to an owner-occupier. The two buildings total 72,000 square feet of space and were 62.5 percent occupied at the time of the sale. According to COPT, they sold for $145 per square foot, or $10.44 million. Real estate website PropertyShark lists the total market value of 9930 and 9940 Franklin Square Drive at $9.65 million.

The two industrial buildings at 4969 and 4979 Mercantile Road offer 97,000 square feet of space and, according to PropertyShark, were both constructed in 1985. The real estate website lists their total market value at $7.99 million. COPT says it sold the two properties to an unnamed local developer, for $61 per square foot or about $5.9 million.

5020, 5022 and 5024 Campbell Boulevard are office buildings, while 5026 Campbell Boulevard offers flex space. The four properties total 134,000 square feet and were 75.4 percent occupied at the time of the sale. They were acquired by a 1031-exchange buyer for $93 per square foot or about $12.4 million. Their total market value is $12.58 million, according to PropertyShark.

COPT says the sales represent a ”strategic pruning” of its office portfolio and will help strengthen the overall quality of the company’s core holdings. With these three dispositions, COPT’s White Marsh portfolio was reduced to about 744,000 square feet of space. At June 30, 2014, this portfolio was 90.3 percent leased to institutional quality tenants, such as Johns Hopkins University or Comcast Corporation.

More Industrial Properties Change Hands in the Greater Baltimore Area

10 Aug 2014, 10:26 pm

By Adrian Maties, Associate Editor

The hot Baltimore industrial market continues to attract more and more investors and it seems that hardly a week can go by without at least one important transaction in the metro area.

Cabot Properties, a private equity real estate investment firm based in Boston, has recently acquired the Beltway West Industrial Portfolio for an undisclosed price. First Industrial Realty Trust, Inc. was the seller. It was represented in the transaction by CBRE Senior Vice Presidents Bo Cashman and Jonathan Beard.

The Beltway West Industrial Portfolio totals 369,979 square feet of space. It consists of six industrial/flex properties, located on the west side of Baltimore. The properties are 2700 Lord Baltimore Drive, 7120-7132 Ambassador Road, 7142 Ambassador Road, 7144-7162 Ambassador Road, 7223-7249 Ambassador Road, and 7200 Rutherford Road in Woodlawn, Maryland.

“The opportunity to acquire 370,000 square feet of multi-tenant industrial product in one transaction is rare in the mid-Atlantic,” Jonathan Beard said in a press statement. “We expect Cabot Properties to continue to expand its portfolio in the market and use Beltway West as a cornerstone for growth.”

In another transaction, Shoregate Partners purchased an industrial/flex building in Annapolis, for $4.3 million. Colliers International represented the private seller in the transaction.

The one-story industrial/flex building is located at 1805 Margaret Avenue. It was constructed in 1983 and offers 42,214 square feet of space. According to Colliers International, the property was 88.2 percent leased at the time of the sale, to multiple tenants.

Colliers Vice President Colin Penoyar brokered the transaction. “We’ve worked in this market for many years,” he said in a statement. “As a result, we’ve had tremendous success identifying opportunities for sale as well as matching them up through our longstanding relationships with buyers. This is not the first time in the last few months that Colliers has identified a sale opportunity as well as brought the buyer.”

Several other Greater Baltimore area industrial properties also changed hands in the last month. Hartz Mountain Industries, Inc., one of the largest private real estate owners and developers in the U.S., has purchased a warehouse in Hanover for $18.71 million, while FRP Development Corp. and One Liberty Properties, Inc. have expaneded their portfolios with acquisitions in the hot submarkets located to the north of I-95.

Photo credits: CBRE

$25M ShopRite Supermarket Opens in Baltimore’s Howard Park Neighborhood, Brings 250 New Jobs

10 Aug 2014, 10:22 pm

By Adrian Maties, Associate Editor

A new supermarket is now open in Baltimore. ShopRite of Howard Park is the largest grocery store in the city and the first to be constructed in the Howard Park area since 1999. It is also the first supermarket opened by Klein’s Family Markets in Baltimore City.

ShopRite of Howard Park is located at 4601 Liberty Heights Avenue, between Hillsdale Road and Gwynn Oak Avenue. The 68,000-square-foot full-service supermarket will offer a broad selection of products, from meat and seafood to gluten-free products. It will also house a full-service pharmacy and two community rooms, and, starting this October, it will be the new home of a Q-Care Health Suite, managed by Park West Health Care System, in partnership with nonprofit UpLift Solutions.

Baltimore officials and community leaders have been trying to bring a supermarket to the Howard Park neighborhood since 1999. The area was designated by the USDA as a food desert. Klein’s Family Markets invested $25 million to construct the ShopRite of Howard Park. In a news release, the company said the project will bring 250 new jobs to the community.

UpLift Solutions and the Baltimore Development Corporation also helped with the project. The latter relocated businesses and residents, demolished existing structures, and prepared the site for development. Klein’s Family Markets also worked with the Maryland Transit Administration and the Baltimore City Department of Transportation to design a parking lot that includes a major bus stop at the store’s front entrance to improve food access for the entire community.

Mayor Stephanie Rawlings-Blake, Lt. Governor Anthony Brown, Baltimore Development Corporation President & CEO Brenda McKenzie, representatives of Klein’s Family Markets, and residents of the Howard Park community were present on July 31, at the grand opening of the long-awaited supermarket.

“A key goal of my administration is growing Baltimore City by 10,000 families over the next decade. In order to grow a city, you have to both attract new residents and give those residents already here more reasons to stay. For me that means ensuring that every family, no matter their income or where they live, has access to quality, affordable and nutritious food options,” Mayor Rawlings-Blake said in a press statement. “Right now, too many people in Baltimore lack easy access to groceries. Today has done nothing but strengthen my resolve and deepen my commitment to eliminate the word ‘food desert’ from Baltimore’s vocabulary. This store will be an anchor to community food systems here in Baltimore.”

Photo credits: ShopRite

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